Q3 2023 Banco BBVA Argentina SA Earnings Call
Speaker 1: Good morning, ladies and gentlemen, and thank you for waiting. At this time, we would like to welcome everyone to BBVA Argentina's third quarter, 2023 Financial Year Results Conference.
Good morning, ladies and gentlemen, and thank you for waiting at this time, we would like to welcome everyone to BBVA, Argentina third quarter 2023 financial year results Conference call.
Speaker 1: We would like to inform you that this event is being recorded and all participants will be in listen only mode during the company presentation.
We would like to inform you that this event is being recorded and all participants will be in listen only mode. During the company's presentation.
Speaker 1: After company remarks are completed, there will be a question and answer section. At that time,
After company remarks are completed there will be a question and answer section.
At that time further instructions will be given.
Speaker 1: Should any participant need assistance during this call, please press star then zero to reach the operator.
But any participant need assistance during the call. Please press Star then zero to reach the operator.
Speaker 1: First of all, let me point out that some of the statements made during this conference call may be forward-looking statements within the meaning of the safe harbor provisions found in section 27A of the Securities Act of 1993 under US federal securities law.
First of all let me point out that some of the statements made during this conference call may be forward looking statements.
And the meaning of the Safe Harbor provisions found in section 27, a of the Securities Act of 1993 under U S Federal Securities Law.
Speaker 1: These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statement.
These forward looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward looking statements.
Speaker 1: Additional information concerning these factors is contained in BBVA Argentina's annual report on Form 20F for the fiscal year of 2022 filed with the U.S. Securities and Exchange Commission.
Additional information concerning these factors is contained in BBVA Argentina's annual report on form 20-F for the fiscal year of 2022.
Filed with the U S Securities and Exchange Commission.
Speaker 1: Today with us we have Ms. Carmen Murillo Arroyo, CFO , Ms. Ines Lanouce, IRO, and Ms. Belen Forcarde, Industrial Relations. Ms. Forcarde?
Today with US we have Ms Carman Barilla Royal CFO, Ms. Eva Let me say I R. L.
And the Berlin more car day investor relation.
And it's for Carty you may begin your conference.
Speaker 2: Good morning and welcome to VED Argentina's third quarter 2026 fiscal year results conference call. Today's webinar will be supported by a slide presentation available on our investor relations website on the financial information section.
Good morning, and welcome to the Yadkin peanut butter Sunday may be see fiscal year results conference call.
Today's webinar will be supported by a slide presentation. Although you never know on our Investor Relations website on the financial information section.
Speaker 2: Speaking during today's call will be Ines Lanusse, our Investor Relations Officer, and Carmen Mauricio Orozo, our Chief Financial Officer who will be available for the Q&A session.
Speaking during today's call it will be missed and I know that our Investor Relations officer, and kind of a muddy soccer with Shaw, our Chief Financial Officer, who is yeah. They know for Q&A session.
Speaker 2: Please note that starting January 1st, 2020, as per central bank regulation, we have begun reporting results applying hyperinflation accounting pursuant to IFRS rule IAS 29. For ease of comparability, 2022 and 2023 figures have been restated to reflect the accumulated effects of inflation adjustments for each period through September 30, 2023. Now, let me turn the call over to Ines.
Please note that starting January one 'twenty 'twenty, especially inside of bank regulation, we have begun reporting without applying hyperinflation accounting, but it's one day, if a restaurant Ias 19 I'm sorry.
Well, we have combined really be 2022 'twenty three figures have been restated to reflect the accumulated effect of inflation adjustment for HBV at.
September 32020.
Now, let me turn the call over to doing it.
Speaker 3: Thank you, Belén, and thank you all for joining us today. As we are all aware, Argentina has ended its presidential election process, which started on August 13 with the Basel elections, continued with the general elections on October 22, and ended with a second round of velotage on November 19, where Javier Millais from La Libertad and Sephardi was elected president, changing the current ruling party.
Thank you Brandon and thank you all for joining us today.
We are all aware Argentina has ended its presidential election process, which started in almost 13 was the parcel election continued or the general elections in October 22, and ended with a second round or validation on November 19, where have you had I mean, a lot of you at about one sub part D was elected.
Rather than changing the par enjoying quite the presidential inauguration ceremony will take place on December 10.
Speaker 3: The Presidential Integration Ceremony will take place on December 10.
Speaker 3: The unfavorable macroeconomic conditions have continued to deteriorate, increasing the risk of economic and financial turbulence in the high uncertainty context of the electoral scenario. DDA research expects GDP to fall by around 3% this year, 50 basic points less than previously forecasted, mainly due to better unexpected activity depth.
The unfavorable macroeconomic conditions have continued to be January increasing their risk of economic and financial turbulence in the high uncertainty context or he left Tonight.
He a research expect GDP to fall by around 3%. This year 50 basis points less than previously forecasted mainly you two bets or unexpected activity.
Speaker 3: for the first month of 2024, strong correction and increasing inflation in its sector.
Well the first months of 2000 and plentiful strong correction and include an inflation is Texas.
Speaker 3: In this context, GDP could contract 4% in 2024. 150 basic points, more than what was previously expected.
In this context GDP contract, 4% in 2020 450 basis points more than what was previously expected.
Speaker 3: Referring to BDA Argentina's performance in the first nine months of 2023, a better operating income was the product of an improvement in interest income due to an increase in the precision and yield of central bank instruments and inflation-linked funds. At the same time, the effect of interest rates on loans mainly leveraged on commercial loans served the operating income growth.
We ferring to BBVA Argentina's performance in the first nine months after 1023, and that's where operating income was the product of one improvement in interest income due to an increase in the proceeding.
Central Bank instruments and inflation linked bonds.
Same time, yes, that's of interest right now mainly leverage on commercial loan or the operating income growth.
Speaker 3: Now, moving into business dynamics, as you can see on slide 3 of the Webcast presentation, our service offering has evolved in such a way that by the end of September 23, retail digital clients penetration reached 61%, while retail mobile clients reached 56%.
Now moving into business dynamics as you can see are slightly on the webcast presentation or service offering has evolved in such a way that by the end of September 28, We just you know why it's fenestration reached 61%, while we have more of a client reach.
There's this extra the response on the side of customer hasn't been satisfactory and we are convinced this is the path to Bristol, Indiana, all sustaining and expanding our competitive position in the financial system.
Speaker 3: The response on the side of customers has been satisfactory and we are convinced this is the path to pursue in the aim of sustaining and expanding our competitive position in the financial system.
Speaker 3: Retail digital sales measured in units reached 93.8% in the third quarter of 2023 and represent 72.7% of the bank's total sales measured in monetary value. New customers' acquisitions to digital channels reached 66% in the third quarter of 2023 from 72% in the third quarter of 2022.
We don't need you don't say measured in units reached 19, 8% in the third quarter of 2023.
With 72.7% all the bad snow tool sales measured in monetary value.
Customer acquisition digital channels right.
6% in the third.
2009 countries need from 72% in the third quarter of 2022.
Speaker 3: The bank actively monitors its business, financial conditions and operating results in the aim of keeping a competitive position to face contextual challenges.
The bank actively monitors its business financial condition and operating results in the aim of keeping a competitive decision to faithfully technical challenge.
Speaker 3: Moving to slide four, I will now comment on the bank's third quarter 2073 financial results.
Moving to slide four I would now comment on the bad third quarter 2020 financial we thought.
Speaker 3: In Argentina, third quarter 2023, net income was 9.9 billion pesos, decreasing 75.9% quarter over quarter. This implied a quarterly ROE of 5.1% and a quarterly ROA of 0.9%.
E V. Argentina third quarter 2022, net income was $9 9 billion pesos, increasing 17, 549% quarter over quarter. This implied a water yeah rohit.
Five, 1% and our quarterly Iowa, 0.9%.
Speaker 3: Operating income in the third quarter of 2023 was 167.3 billion pesos, decreasing 1% from the 169 billion pesos reported in the second quarter of 2023.
Operating income in the third quarter of 2000, and that's when we'd be well, it's 167.3 million faithful decreasing 1% from the hung around 69 million pesos reported in the second quarter of 2023.
Speaker 3: Quarterly operating results are mainly explained by one, better interest income results through public securities and liquidity instruments and two, an improvement in low loss allowances. These effects were negatively upset by one, lower net-fee income and two, higher administrative expense.
Quarterly operating results are mainly explained by one better interest income recovered so public securities liquidity instruments, I'm too and even pools I know no allowance.
These effects were net I believe that by one nowhere net income and to higher administrative expenses.
Speaker 3: It is worth noting a higher income from write down of assets at a more decisive cost and at fair value through other compressive income of 4 billion pesos, mainly due to the sale of corporate bonds.
It is worth noting a higher income from write downs of assets more device and at fair value through other comprehensive income of 4 million pesos, mainly due to the sale of corporate bonds.
Speaker 3: In the quarter, there is a positive effect in the income tax line considering the final judgment dictated by the Supreme Court concerning fiscal years 2014 and 2013, applying the accounting information framework established by the central bank. The bank has recorded a positive result of 7.4 billion pesos as of September 30, 2023.
In the quarter there is a multitude of fat in the income tax line considering the final yachtsman dictated by the Supreme Court or basically your 2014 and 2013.
Apply yeah housekeeping information framework established by the Central Bank.
I was recorded across it.
We saw seven 4 billion pesos.
32020.
Speaker 3: Net income for the period was highly impacted by income from net monetary position as inflation increased from 23.8% in the second quarter of 2023 to 34.8% in the third quarter of 2023.
Net income for the P. Weird was highly impacted by income from net monetary position I think inflation increased from 23, 8% in the second quarter of 2000, and I believe me you 34, 8% in the third quarter of 2020.
Speaker 3: Turning into the P&L lines in slides 5 and 6, net interest income for the third quarter of 2023 was 270.2 billion pesos increasing 8.1% quarter over quarter.
Turning into the P&L line in slides five and six net interest income for the third quarter of 2023, or 217.2 billion pesos, increasing eight 1% quarter over quarter.
Speaker 3: In the third quarter of 2023, interest incomes in monetary terms increased more than interest expenses, mainly due to one, an increase from REPO, two, a higher position and yield of public securities, in particular of LELIC, and three, the positive effect of income from loans, especially from discounted instruments, mainly due to productive investment credit lines for SMEs.
In the third quarter of 2023 interesting gun and monetize them.
Increased more than interest expenses, mainly due to one I mean green from grapples Shaw.
I hope the station I mean public securities in particular oblique I see the positive effects of income from loans, especially from discounted instruments, mainly do you want to protect an investment credit lines for it they need.
Speaker 3: This was offset by the negative effect of interest expenses from checking accounts and time deposit.
This was offset by the negative effect of interest expenses from checking accounts and time deposits.
Speaker 3: In the third quarter of 2023, interest income totaled 586.9 billion pesos, increasing 17.3% compared to the second quarter of 2023. This is partially due to the higher average position in LELIC added to a gradual increase in the monetary policy rate from 97% at the beginning of the quarter up to 118% at quarter end.
[laughter] waterfalls that I'm gonna be three interest income totaled 586, 9 billion pesos, increasing 17, 3% compared to the second quarter of 2020.
This is partially due to the higher average precision Lilly added to a gradual increase in the monetary policy rate from 95% at the beginning of the port up to 100 at 19% at quarter end.
Speaker 3: Interest expenses totaled 316.6 billion pesos, denoting a 26.5% increase quarter over quarter. Orderly increase is described by higher checking accounts, in particular interest-bearing checking accounts and 10 deposit expense.
Interest expenses totalled 316.6 beat them basically did no think I took a six 5% increase on a record quarterly increase it describe my higher checking account.
Collect interest bearing checking accounts and kind of get bonus expense.
Speaker 3: Interest on time deposits, including investment accounts, is slaying 70.5% of interest expenses versus 77.7% the previous quarter.
Mhm trucks long time, the buckets, including investment accounts explained 17, 5% of interest expenses, but I just decided on points travel defend the previous quarter.
Speaker 3: net income as of the third quarter of 2023, total 17.6 billion pesos, decreasing 44.9% quarter over quarter.
Net fee income.
So core talked about non 23 totaled $17 6 million pesos decreasing 44.9 boyfriend porno before.
Speaker 3: In the third quarter of 2023, the income totaled 39.5 billion pesos, falling 12.1%. The quarterly decrease is mainly explained by a 21% fall in fees from credit cards, considering that this line includes a royalty program and that there was a greater use of this program.
Quarter of 2023.
Income totaled $39 5 billion pesos balling totaling 1%.
Quarterly degrees is mainly explained by a 21% board in fees from credit cards, considering that these line.
Oh yeah.
Yeah.
T program and that there was a greater use of this growth.
Speaker 3: Additionally, an increase in prices was implemented during September , not getting to upset the negative effects of inflation and denoting a 5.1% fall in fees, income, links to liability.
Fishing Ali and increase in prices was implemented doing something but no nothing to offset the negative effect of inflation and then noting a 5.1% fall in easing some.
Liabilities.
Speaker 3: Regarding fee expenses, these total 22 billion pesos increasing 68.9% quarter over quarter. Greater expenses are explained by fee saved in foreign exchange transactions related to royalty affected by the devaluation of the local currency. And client acquisition costs would translate into a 4% increase in active clients in the third quarter of 2023.
Regarding fee expenses these totaled 22 billion pesos increasing.
68, 9% quarter over quarter Greater expenses are explained by these days in foreign exchange transactions related to royalty affected by the devaluation of the local card.
And client acquisition costs would translate into a 4% increase not to fly in the sub.
Part of 2020.
Speaker 3: In the third quarter of 2023 loan loss allowances decreased 48.4% due to the release of provisions related to credit cards, derivate from the stability in the NPL ratio of the retail portfolio.
In the third quarter of 2023.
Allowances decreased 48, 4% due to a release of provisions related to credit card, yeah rebate from the stability in the NPL ratio, although retail portfolio.
Speaker 3: During the third quarter of 2023, total operating expenses were 137.2 billion pesos, increasing 9.7% quarter over quarter, of which 31% were personal benefits costs.
In the third quarter of 2023 total operating expenses were 137 going to medium pesos, increasing nine seven boyfriend born out of a quarter of which 31 boyfriend, where personal benefits call.
Speaker 3: Personal benefits increased 8.5% quarter over quarter. The quarterly increase is mainly explained by the projected inflation adjustment of vacation stock provisions and variable compensation. This adjustment is applied with...
Personnel benefits increased eight 5% quarter over quarter. The quarterly increase is mainly explained by the projected inflation adjustment of vacation stopped permission.
You're a little compensation, you said Jasmine is applied retroactively.
Speaker 3: Quarterly increases were also affected by the 32% collective agreement increase on wages, which implied a 97% accumulated increase out of the third quarter of 2023.
Increases were also affected by the 32% collective agreement increased wages, which implied a 97 boyfriend accumulating increased.
Third quarter 2020.
Speaker 3: As of the third quarter of 2023, administrative expenses increased 12.7% quarter over quarter. The quarterly increase is mainly explained by, one, outsourced administrative expenses, two, greater rent expenses, three, taxes, and four, an increase in software services.
Although the port after building I'm 'twenty be Administrated expenses increased 12.7 boyfriend quarter over quarter. The quarterly increase is mainly explained by one outsource administrative expenses to raise our rent expenses.
Taxes and for an increase in software and service.
Speaker 3: All of these were related to an increase in the amount of services contracted and an increase in expenses of service contracted with the parent company.
All of these were related to an increase in the amount of services from trusted and an increase in expenses I'm service contract with the parent company.
Speaker 3: Being this said, the quarterly efficiency ratio as of the third quarter of 2023 was 82.4% increasing compared to the 52% reported in the second quarter of 2023. The quarterly increase is explained by a higher increase in expenses than income which considers the negative effects of inflation.
Being deferred.
The efficiency ratio, although the third quarter of 2023 was 82, 4% increasing compared to about 52% reported in the second quarter of 2000 and some D C.
The quarterly increase is explained by a higher increase in expenses and income, which considering the negative effect of inflation.
Speaker 3: the accumulated efficiency ratio as of the third quarter of 2023 reached 63.8% compared to the 56.6% reported in the second quarter of 2023 and improving versus the 69% reported in the third quarter of 2022.
He accumulated efficiency ratio, although the board of 2020 reached 63, 8% compared to the 56, 6% reported in the second quarter 2000.
I mean cooling, but 69% reported in the third quarter and then in 'twenty.
Speaker 3: In terms of activity on slide seven, private sector loans as of the third quarter of 2023 totaled 1.4 trillion pesos, decreasing 4.8 percent and 0.1 percent year over year. Loans to the private sector in pesos fell 5.3 percent in the third quarter of 2023.
Sure.
In terms of activity on slide seven private sector loans, although the third quarter of 2023 one.
One four trillion pesos queasy popcorn papers.
And do you have a 0.1.
Year over ear nose to the private sector is based on 10 five points before saying you know.
Quarter of 2020, you'll end up for the decrease was especially driven by a nine 4% decline in credit card by 11th going to enforce and partly in consumer loan and a 7.5% Paul you know now would.
Speaker 3: During the quarter, the decrease was especially driven by a 9.4 percent decline in credit cards, followed by an 11.7 percent fall in consumer loans and a 7.5 percent fall in other loans.
Speaker 3: which include commercial loans related to productive investment, credit lines for SMEs.
Which includes commercial loans related to protecting them investment credit lines for SME.
Speaker 3: The poll was partially upset by a 7.6% increase in discounted instruments driven by the new productive investment credit line quote.
Paul was partially upset by a seven 6% increase in discounted instrument with them by then you burned up good investment credit lines.
Speaker 3: Loans to the private sector denominated in foreign currency increased 2.6%. Quarterly increase is mainly explained by a 4% growth in financing and pre-financing of exports and a 9.4% growth in credit cards. Loans to the private sector in foreign currency measured in U.S. dollars increased 1.5% quarter over quarter.
Now onto the private sector are denominated in foreign currency increased two 6%.
The increase is mainly explained by a 4% growth in financing and refinancing of exports and a nine 4% growth in credit card.
Yeah to the private sector in foreign currency measurement being U S dollar.
Increased one 5% quarter over quarter.
Speaker 3: During the quarter, the retail portfolio fell 9.9% and the commercial portfolio increased 1.5%.
You were in the water the retail portfolio is 99% and our commercial portfolio increased one 5%.
Speaker 3: As observed in previous quarters, loan portfolios were impacted by the effect of inflation during the third quarter of 2023, which reached 34.8%.
Observed in previous quarters, no portfolios were impacted by the effect of inflation.
In the third quarter of 2000, Unquote, Disney which reached 34, 8%.
Speaker 3: In nominal terms, BBVA Argentina managed to increase the retail, commercial, and telco loan portfolio by 21.5%, 36.8%, and 28% respectively during the quarter, only surpassing quarterly inflation levels in the case of commercial loans.
Todd BBVA, Argentina manage to increase the retail commercial and total loan portfolio by 21, 5% 36, 8% and 28% respectively. During the war only surpassing quarterly inflation levels in the case of commercial loans.
Speaker 3: BBA Argentina's consolidated market share of private sector loans reached 9.35% as of the third quarter of 2023, improving from the 8.47% a year ago.
BBVA, Argentina consolidated market share private sector alone.
Nice growing 35% I thought the third quarter of 2023, improving from 847% a year ago.
Speaker 3: In the third quarter of 2023, asset quality ratio was 1.42% compared to the 1.38% recorded in the second quarter of 2023. The increase is mainly explained by a slight increase in the commercial non-performing portfolio linked to increment in the foreign currency exchange rate.
In the third quarter of 2000, and I spend beauty asset quality ratio was 142% compared to the one point, 38% reported in the second quarter of 2000 attendees me.
The increase is mainly explained by a slight increase in the commercial nonperforming portfolio.
The incremental in the foreign currency exchange rates.
Speaker 3: On the funding side, as seen on slide 8, private non-financial sector deposit in the third quarter of 2023 totaled 2.3 trillion pesos, decreasing 5.5% quarter over quarter.
On the funding side I've seen on slide eight private nonfinancial sector deposits in the third quarter of 2020 totaled two.
To your point see premium increase.
Decreasing five 5% quarter over quarter.
Speaker 3: The bank's consolidated market share of private deposits reached 7.13% as of the third quarter of 2023.
The banks consolidated market share private deposit reached seven point, 13% as of the third quarter of 2000 and said he'd be.
Speaker 3: Private non-financial sector deposits decreased 5.7% compared to the second quarter of 2023. The quarterly change is mainly affected by a 17.9% decline in time deposits and a 22.3% fall in saving accounts.
Private nonfinancial sector deposits decreased five 7% compared to the second quarter of 2020. The quarterly change is mainly affected by a 17, 9% decline in time deposits and a 22.8% fall in saving accounts, partially upset by a 23.
Speaker 3: partially offset by a 23.9% increase in checking accounts, especially interest-bearing checking accounts.
9% increase in checking accounts, especially interest bearing checking accounts.
Speaker 3: private non-financial sector deposits in foreign currency expressed in pesos increased 1% quarter quarter
Private nonfinancial sector deposits in foreign currency expressed in pesos increased 1% quarter over quarter.
Speaker 3: In terms of capitalization, BBVA Argentina continues to show strong solvency indicators in the third quarter of 2023. Capital ratio reached 27.1%. The decline in the ratio was mainly driven by the impact of devaluation of the foreign exchange rate on risk-weighted assets, combined with a nominal increment of loans.
Total capitalization BBVA, Argentina continues to show strong solvency indicators in the third quarter of 2020.
The ratio reached 27, 1%.
Flying in the ratio was mainly driven by name, but some devaluation of the foreign exchange rate on risk weighted assets combined with a nominal increments of no.
Speaker 3: Exposure to the public sector in the third quarter of 2023 excluding central bank instruments represents 12.7 percent of total assets above the 11 percent in the second quarter of 2023 and below the 16.8 percent reported by the system as of August 2023.
Exposure to the public sector in the third quarter of the bolt ons wouldn't be me, excluding central Bank instruments represents 12, 7% of he'll tell us at all.
The 11% in the second quarter of 2000 times in B C and D.
Below the 16.8% reported by the system, although well God bless.
I know you don't give me.
Speaker 3: It is worth mentioning that as of the date of this report, DBA Argentina has distributed the six installments scheduled on dividend payments from the 50.4 billion pesos total to be paid according to the plan published on June 7, 2023, and based on the terms agreed with the central bank.
It is worth mentioning that as of the date of this report me Argentina has distributed the snake Samsung and scheduled on dividend payments from the 54 billion pesos. So tend to be paid according to the plan published on June seven 2023, and based on the terms.
With the Central Bank.
Total liquidity ratio remained healthy at 76, 6% of total deposits as of September 30, 2010 Disney.
This concludes our prepared remarks, we will now take your question.
Operator, please open the line for questions.
We will now begin the question and answer session.
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At this time, we will pause momentarily to assemble our roster.
Speaker 1: And our first question will come from Carlos Gomez of HSBC. Please go ahead.
And our first question will come from Carlos Gomez of HSBC. Please go ahead.
Speaker 4: Hello, and good morning, and thank you for the results and for the presentation prepared for this call.
Hello, and good morning, and thank you for the results.
They shall prepare for today's call.
Speaker 4: The first obvious question I have, and I need not quite understand it, is...
First of all these questions my husband and I did not quite.
Sure.
Speaker 4: the impact of inflation in the quarter we understand it has been higher but you know when we compare to
The impact of inflation during the quarter, we understand the Hudson.
When we compare it to two the other publishers.
Speaker 4: to the other public resources, it is particularly large, as reported by you. We know it is complicated, we know there are many moving pieces that come into that, but perhaps give us some definitions as to why it is higher for you, and whether it is sustainable, whether in the coming quarter, we should expect you to be more affected by inflation if it continues to go up. The second refers to your loan portfolio, which was ironically, a REIT in the 40s' FEtold
Particularly.
We know it gets complicated.
Moving pieces, that's coming to us.
Give us one to 10 minutes as to why it.
It is clear for you.
It's kind of like without coming quarter, we should expect you to be more affected by inflation. If it continues to go up.
Difficulty first how would your loan.
Loan portfolio, which was fluffy question like I said, but actually that means nothing.
Speaker 4: flat in inflation adjusted terms, but actually that means that you have increased your market share quite considerably from 8.5% to 9.4% as you published here.
You have increasing marketshare quite considerably from my point.
For perspective atmosphere.
Speaker 4: Is that a squealing strategy on the part of the bank, something that you are trying to do, you are trying to be perhaps a bit more aggressive than the others, or just a result of how the quota came out?
You started this we really.
Chuck did you want to pick up a bunch of things that youre trying to be trying to be perhaps more of a Christmas I'll be honest.
Or or just herself.
Speaker 4: And finally, I saw a 40% increase in checking accounts. Is there any particular special reason for the increase in checking accounts?
Okay.
And finally I saw it.
From Christian checking accounts.
In particular.
Sure.
Reshuffle them. Thank you so much thank you.
Yeah.
Speaker 3: Hi, Carlos, nice to talk to you again. Okay, let me go through the first question. As you mentioned, yes, we had more inflation, quite higher in the third quarter compared to the second quarter. We are at something about levels of 35% compared to 24%.
Hi, Carlos Nice to talk to you again, Okay. Let me go through the first question.
And as you mentioned and yet we had more inflation quite higher in the third quarter compared to the second quarter.
Talking about levels of 35% compared to 24%.
Speaker 3: in the second quarter, a year-to-date accumulated inflation of 103 as of the third quarter. Probably this comparative effect compared to the other banks I have already reported has to do with the picture as of the third quarter of 2023 that we had less of our equity protected by inflation.
In the second quarter, our year to date and accumulated inflation of 100, Anthony and South Florida.
Let me Oh.
And in fact compared to the other vendor that has already reported it has to do with pictures of the third quarter of 2023, and we have less of our equity protected out of inflation.
Speaker 3: If you see our report, you can see that we started to have a position of dual bonds.
Do you see are our report you can see that we are.
I started to have application of waterborne that are tied more to our exchange rates or inflation adjustment at the end of September we didn't even see that affect that.
Speaker 3: that are tied both to exchange rate or inflation adjustment. At the end of September , we didn't see that effect.
Speaker 3: That's clear in the third quarter. But going forward, out of the fourth quarter this year, our protection of the equity is around 100% more or less if we combine third bonds, dual bonds, and real estate.
We are in the South Florida back going forward out of the fourth quarter or the E. R. R. A protection of the equity is around 100% more or less if we combine as terrible as wallboard and and real estate, so that could be reverted.
Speaker 3: So that could be reverted as of the fourth quarter of this year. Also, yes, we had the inflation also affecting our costs, and that also is reflected in our response.
As of the fourth quarter all of.
This year or so and yes, we had a inflation ultra long acting hard costs and that also is reflected in our results. So yes. It was.
Speaker 4: So, yes, it was a tough quarter, but we believe that can be reverted in the fourth quarter. The second question, I heard about the market share, but could you repeat the second part of the question? Yeah. I mean, when I look at your...
Tap water.
But and when do you think that can be reflected in the fourth quarter.
The second question I know I heard about the marketshare, but could you repeat the second part of the question.
So.
When I look at your.
Speaker 4: from I think the private market share in private loans went from 8.5 to 9.4. I mean, that's a significant change. The result of the banks are shrinking, you are not. So again, I wonder if it was just a coincidence that's how the quarter ended or a conscious policy to expand more than the others when some of the players are retracting or leaving the bank.
From what I've seen the perfect.
Perfect.
Okay.
The.
Marketing private loans went from eight five to $9 four to six.
It's going to change.
The banks have a shrinking.
So I wonder if it was just a coincidence that helped the quarter order or a conscious policy to expand to more than the others. One some of the players retracting or leaving the market.
Speaker 3: Okay, yes. No, actually that is a key driver of our strategy. You can see that our commissions probably fell compared also to the other player. And that has to do with the intent of increasing franchise in the country. We are systematically growing our market share since year over year, as you mentioned, both in loans and deposits.
No actually that is a key driver of our strategy.
You can see that our clinicians are already fairly comparable to the other player and that has to do with the intent of English and franchise in the country. Now we are sustainably growing our market share gains year over year as you mentioned, both in loans and deposits and we're investing both too.
Speaker 3: and we're investing both to market share if you go product by product we are being very aggressive in personal loans.
And in market share you go outside of that are part of we are being very aggressive in personal loans. We are gaining a lot of market share there, but I mean, the strategy of the bank, it's a game franchise.
Speaker 3: We are gaining a lot of market share there. But again, the strategy of the bank is to gain franchise and gain market share. And that is our driver.
Like a chair and that is a driver towards the year end up 2023, and now again also for 2020 for a driver it to grow more than the system or decide that probably inflation.
Speaker 3: towards the year end of 2023 and again also for 2024. Our driver is to grow more than the city.
Speaker 3: Now despite that probably inflation sometimes doesn't, the growth doesn't end being in real terms. But our aim is to gain market share. That answers your question.
It doesn't and that the growth definitely.
And.
We had a sound start our aim is to gain market share.
Is that answered your question.
Yeah.
Yep.
Thank you.
Okay.
Speaker 3: Okay, so that was the second question. And the third question you were asking about checking accounts, correct? The increase.
Okay. So that that was the second question and the third question you were asking about checking accounts for the increase.
Correct.
Okay that has to do with that you'd have to say you have to see.
The balance sheet that then in no way the the Central Bank asks you to presenting formation in taking in house. We also have those checking accounts that are remunerated that have that cost and that out of the south Florida.
We were increasing our wholesale deposit to play styles.
Opportunistically in a leak and anti bank instrument. So that's why that language site that forest city, particularly checking about is increasing as of the fourth quarter that will start to shrink change we are starting to reduce balance sheet by reducing those type of wholesale.
Yes.
Could you, let us know the size of that.
Non Christians.
Checking accounts.
And I don't have the figures I can send you the figures later.
Are there specific figures, we don't disclose that.
Absolutely.
Okay.
The other thing in total so I went to the mill.
Hundreds of them.
On today's call.
I can check that information for you understand it is that okay. I don't have it in front of me, but it's.
Any number that you have now.
Checking accounts.
But let me check.
Yeah.
Let me if it's okay with you like and find information.
And that's really that's okay alright.
We have some information.
And more or less than non Briton unit rate.
Checking accounts.
Right.
396 medium pizza.
And their remuneration at around 260, but let me check those figures and send it back to you if that's okay.
Thank you so much.
Okay.
The next question comes from Josephine Mendez of Churning Global Please go ahead.
Thank you for this opportunity to ask a question. We're curious how my dollar appreciation effect. The bank's financial results are it would be very helpful. If you gave us some guidance about that according to at least from what we can glean your NAV monetary.
Uh huh.
At the end of <unk> amounted to approximately one 2 million households.
<unk> dot net monetary position led to.
And a loss from income from net monetary position of 48 billion persons in in <unk>. So if dollar recession.
Into attack how are what might we expect should be type of loss from net monetary position be erased. When dollar station has been place because there will be no more indication.
We would appreciate your comments that'd be great. Thank you.
Hello, Nice to hear from you about today, Okay regarding direct patient and you know really just a it was a.
It's not a 10 day honestly, we're not seemed around irritation bullish possibility at not this year and how the following year and there is still a lot of information to be disclosed when the bracket and that she wants.
Let's see what he can do what he can do so we're not seeing the legislation.
On the C D T V.
That said as I mentioned before the way in which we protect our equity to reduce the effects of inflation is by two.
Two factors.
No real estate.
Sorry, our Irish whiskey, and desirable and kind of do I longs that have increased.
I cannot actually detour around 100% of the equity as of the fourth quarter of this year. So that's the way we have all the financial system to protect the equity over that time.
Thank God I V station, it's not something that we see I have possibility.
In 2024.
Yeah.
And if I may have a follow up question could you share with us the banks.
Outlook.
Or inflation Huron without let's say at dollarization.
That's not occur in 'twenty to 'twenty, four but sort of.
Inflation.
Uh huh.
Okay.
Yeah, that's a great start our research department.
Today, No you know that Argentina changes practically every day, but we are projecting a year and inflation.
Around 200% for 2023 and for 2020 for around 150 855, sorry in this sad you have to think that what our research Department is seeing as is that in the first month.
<unk> thousand and 24, probably I'm going to have a much higher inflation. So the average inflation should be higher than 2023.
The all of 2024 back here and it should be less it would be 155 compared to 200 E. R. M.
Our 2020, yeah that vary a lot that are researching for 10 months.
<unk> is projecting is the monetary policy rate that is projecting.
And 2023 around 144 is a bit higher than the 100, I'm sorry to see that we have today.
Moving towards the end of 2024 odd around 56%.
Can you tell if it's negative but we got to start with what we're seeing for next year.
Yeah.
Could you repeat that last point you lost me on the negative.
Oh, sorry.
Sorry, Paul Yes, you're right that we are projecting to end 2023, I round I wrote down, 44%, which is a little bit higher than the 100, and so do you see that react today and ending 202024 with 56.
Hence these degrees you should see more towards the end of the first quarter or beginning of the second one that harvest takes place and that we have with returns.
Negative interest rate.
Yeah, we I'm sorry.
Yeah.
So how would that affect down Europe did not show results that would be a significant level of negative rate right.
In 'twenty.
We were.
Despite this we're still projecting a yes, you did see a decrease in Idaho, Louisiana raised for 2024, five and positive.
Well see positives in real time.
With inflation that goes from 202.
Hungry out 55 spot and average in 2024 is gonna be higher than the 200.
We are still seeing a positive are always and I realize you weren't backed off again.
Once again, if you would like to ask a question. Please press Star then one.
This will conclude the question and answer section at this time I would like to turn the floor back to Ms. Mooney for any closing remarks.
Okay. Thank you for your time Atlanta. So now we have tied up questions have a good day.
Yeah.
Thank you that concludes today's presentation you may disconnect. Your lines at this time and have a nice day.
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