Q4 2023 Banco BBVA Argentina SA Earnings Call
Operator: Good morning, ladies and gentlemen, and thank you for waiting. At this time, we would like to welcome everyone to BBVA Argentina's fourth quarter and fiscal year 2023 results conference call. 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. After the company's prepared remarks are completed, there will be a question and answer section. At that time, further instructions will be given. Should any participant need assistance, please, during this call, please press star zero to reach the operator.
Good morning, ladies and gentlemen, and thank you for waiting at this time, we would like to welcome everyone to BBVA, Argentina's fourth quarter and fiscal year 2023 results conference call. We would like to inform you that this event is being recorded and I'll pass.
<unk> will be in listen only mode. During the Companys presentation. After the company's prepared remarks are completed there will be a question and answer section at that time further instructions will be given should any participant need assistance. Please.
During this call. Please press star zero to reach the operator 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 27, a of the Securities Act of 1933.
Unnamed Speaker: 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 1933 under U.S. Federal Securities Law. 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. Additionally, information concerning these factors is contained in BBVA Argentina's annual report on Form 20-F for the fiscal year 2022, filed with the U.S. Securities and Exchange Commission. Today, with us, we have Ms. Carmen Morea Arroyo.
Under U S Federal Securities Law.
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. Additionally.
Information concerning these factors is contained in D. B V. A Argentina's annual report on form 20-F for the fiscal year 2022 filed with the U S Securities and Exchange Commission.
Today with US we have Mrs. Carmen Maria Araujo CFO Mrs Ines.
Mara Beln Fourcade: CFO, Ms. Ines Lanusse, IRO, and Ms. Belen Fourcade, Investor Relations. Ms. Fourcade, you may begin your conference. Good morning and welcome to BBVA Argentina's fourth quarter and fiscal year 2023 results conference call. Today's webinar will be supported by a slide presentation available on our investor relations website in the financial information section. Speaking during today's call will be Ines Lanusse, our Investor Relations Officer, and Carmen Mauricio Arroyo, our Chief Financial Officer, who will be available for a Q&A session.
New Se I R O N E.
Berlin for cadre Investor Relations Ms for Carter you May begin your conference.
Good morning, and welcome to the air Genting as well that he's been here 2023.
Thanks Scott.
Let me now will be supported by a slide presentation.
Our relations website.
Information section.
Speaking during today's call will be Mr. I don't say, Oh, Investor Relations Officer, and camera launch our Chief Financial Officer.
It will be available for Q&A session.
Ines Lanusse: Please note that starting January 1st, 2020, as per central bank regulation, we have begun reporting results applying hyperinflation accounting pursuant to IFRS rule IAF 29. For ease of comparability, 2022 and 2023 figures have been restated to reflect the accumulated effect of inflation adjustment for each period through December 31st, 2023. Now, let me turn the call over to Ines. Thank you, Belén, and thank you all for joining us today.
Please note that starting Gerry Fay 20, Sandy have question cards on regulation you have beyond reporting we started applying hyperinflationary accounting.
Alright, well thank.
Thank you.
Thank you Debbie.
E E readers have been restated to reflect the acuity if that's okay.
Inflation adjustment for each period.
But you'll have a chance in D C.
Now, let me turn the Codell like Dominion.
Thank you Renee and thank you all for joining us today.
Ines Lanusse: 2023 ends with a new elected governing party, which has announced an adjustment plan to start correcting the strong macroeconomic distortions, which, among others, include a significant reduction of fiscal deficits and a diversification of the local currency to ease FX restrictions. In a context where uncertainty remains high, BBVA Research estimates annual inflation near 175% by the end of 2024 and expects GDP to fall 4% this year as of the date of this report. It is expected that the most intense recession and inflationary acceleration should happen in the first semester, while expectations improve in the second part of the year. In spite of its impact in the short term and the high associated risks, these adjustments could provide the basis for a sustained reduction in inflation and a recovery in potential growth for the economy from the second half of 2024 onwards.
And then in 'twenty three and today you elected governing body, which is I know it was an adjustment plan to start correcting the strong macroeconomic distortion, which among others include a significant reduction of fiscal deficits and the depreciation of the local currency three FX.
In a context, where uncertainty remains high.
He said he may turn around inflation Mir, 175% by the end of 2024 and expect GDP to four 4% this year I've everyday to visit.
It is expected that the most intense research on an inflationary acceleration should happen in the first semester, what expectations in groups or the second part of the year.
Insightful and things that in the short term and high associated risks. He said jetson mask was stayed the basis for a sustained reduction in inflation and a recovery in our potential growth pardon me accordingly from the second half of 2000 and plenty for them.
Ines Lanusse: Now, moving into business dynamics, as you can see on slide three of our webcast presentation, our service offering has evolved in such a way that, by the end of December 2023, retail digital client penetration reached 62%, while retail mobile clients reached 57%. The response from customers has been satisfactory, and we are convinced this is a path to pursue in the aim of sustaining and expanding our competitive position in the financial system.
Now moving to business dynamics as you can see on Slide me Oh Boy a webcast presentation. Our service offering has evolved in such a way that by the end of December <unk>.
And the duration reached 62% why do we take more with clients.
So the response on the side of the cost and what I've seen at the factory and here and this is a basketball shoe in the a lot of sustaining and expanding.
A good position in the financial system.
Ines Lanusse: Retail digital sales measured in units reached 93.2% in the fourth quarter of 2023 and represent 69.8% of the bank's total sales measured in monetary value. New customer acquisition through digital channels reached 75% in the fourth quarter of 2023, from 72% in the fourth quarter of 2022. The Bank actively monitors its business, financial conditions, and operating results in the aim of keeping a competitive position to face contextual challenges. Moving to slide four, we now comment on the bank's fourth quarter 2023 and fiscal year 2023 financial results. BBVA Argentina's inflation-adjusted net income in the fourth quarter of 2023 was 48.6 billion pesos, 220.8% higher than the net income in the third quarter of 2023, which implied a quarterly ROE of 15.3% and a quarterly ROA of 3.2%. BBVA Argentina's inflation-adjusted net income for the twelfth month of 2023 totaled 164.9 billion In 2023, BBVA Argentina posted an inflation-adjusted ROE of 2.7% and an inflation-adjusted ROE of 13%.
We then did you say measured in units reached 92% in the fourth quarter of 2023 and represents 69, 8% on the same measures in monetary value.
New customer acquisition through digital channels.
75% in the fourth quarter of 2920 P M, 72% in the fourth quarter of 2022.
The bank activity monitors and it's not my mentioned condition and operating results.
Aim of keeping a competitive decision just based contextual challenge.
Moving to slide four I will now comment on the banks fourth quarter 2023, I'm, just telling you that 2000, and then give me I can answer with that.
Xena inflation adjusted net income in the fourth quarter of 2000, and forgive me well 48, 6 billion pesos, 228% higher and the net income in the third quarter of 2023.
Implied a poorly arrowy, all 15, 3% on a quarterly or a way at any 0.2%.
Argentina inflation adjusted net income for the 12 months of 2020, $364 9 billion faithful eight 6% lower than the 12 months of 2022.
In 2000, Twenty's me BBVA, Argentina posted an inflation adjusted our away of two 7% on an inflation adjusted ROE of 13%.
Ines Lanusse: Operating income in the fourth quarter of 2023 was 477.9 billion pesos, 86.4% higher than in the third quarter of 2023. During the year, the accumulated operating income reached 1.19 trillion pesos, 86.4% above the one recorded in 2022. Quarterly operating results are mainly explained by, one, better foreign exchange income, especially due to a greater position in dual national treasury bonds. Two, better net interest income results. Three, better net income from write-down of assets at a mortified cost and at fair value through OCI, mainly due to the sale of inflation-linked bonds. And four, lower administrative expenses.
Breaking even gotten in the fourth quarter of 2023, one 477.9 billion pesos 86, 4% higher than in the third quarter of 2020 P. Why do we say here yeah accumulated operating income.
One point 19, Chilean peso 86, 4% drop in a warm recorded in 2022.
What are the operating results are mainly explained by one that's a foreign exchange income that's shown as you relate to the patient in dual national Treasury bonds to that interest income result.
Our net income from write down a bucket that I'm working in high school and at fair value through OCI, mainly due to the sale of inflation linked bonds and for no other administrative expenses.
Ines Lanusse: Net income for the period was highly impacted by income from net monetary position as inflation in the third quarter of 2023 was lower than in the fourth quarter of 2023, reaching 53.9 percent in the fourth quarter of 2023 compared to 34.8 percent in the third quarter of 2023. On an annual basis, the 86.4% increment in real terms of the bank's operating income is mainly explained by an increase in interest income, mostly due to an increase in the position and yield of central bank instruments and fair bonds, as well as interest from loans. In 2023, what also stands out is the increase in foreign exchange income due to the higher position in dollarized assets and net income from the write-down of assets at fair value through OCI, mainly due to the sale of corporate bonds in the third quarter of 2023 and the exodus of production on inflation-linked bonds in the fourth quarter of 2023. Another factor to consider in the annual comparison is the income tax line, which represented only 1.2 million pesos lost in 2022, explained by the implication of fiscal inflation adjustments in the determination of payable taxes and tax deferrals.
Net income for the period was highly impacted by income from net monetary position inflation in the third quarter of 2023, well no. One in the fourth quarter of 2023, reaching 53, 9% in the fourth quarter 2023, compared to 34, 8% in the third quarter.
1020.
On an annual basis, the 86.4% increment in real time are the banks operating income mainly explained by an increase in interest income mostly due to an increase in the precision and the central bank instruments, I'm, sorry, I've gone as well as interest from them in 2000, and frankly pretty well also.
So is the increase in the foreign exchange gains due to the higher precision in dollar and passes and that income from write downs of lots of fair value through OCI, mainly due to the state corporate bonds in the third quarter Cabela's hunting for me and the exercise of the put option on inflation linked bonds.
Fourth quarter was a thousand attendees.
Another factor to consider in Yangon comparison is the income tax line, we've represented only one or two meaning they still snow in 2022.
I mean utilization is basically an inflation adjustment in the determination of payable taxes and taxes paid.
Ines Lanusse: Last but not least, net income in 2023 is affected by income from the net monetary position in a context of higher inflation, which reached 211.4% in 2023 versus 94.8% in 2022. Turning into the P&L lines in slides 5, 6, and 7, net interest income for the fourth quarter of 2023 was $495.7 million pesos, increasing 19.7% quarter over quarter. In the fourth quarter of 2023, interest income in monetary terms decreased more than interest expenses, mainly due to lower income from government securities. In the fourth quarter of 2023, the decrease in interest income was mainly driven by the fall in income from government securities, especially leaks, issuance of which was terminated by the central bank in December 2023, reducing its volume on year-end. This was partially observed by better income from repo premiums and more income from inflation-linked bonds and loans.
Last but not least net income in 2023 is affected by income from net monetary position in a context of higher inflation, which reached 211, 4% in 2023 94, 8% sell in in 'twenty two.
Turning to the P&L lines in slides five six and seven net interest income for the fourth quarter of 2000, Twenty's me was 495.7 million pesos, increasing 19, 7% quarter over quarter.
Fourth quarter of 2023.
With income and monetary done decreased more than interest expenses, mainly due to lower income from government securities in.
In the fourth quarter of 2023, the decrease in interest income is mainly driven by the fall in income from government.
Especially I need which insurance was terminated by the Central Bank in December 2020 to me, where do you think is falling on your end.
This was partially upset by that or even come from Rick will bring online come from inflation linked bonds and loans.
Ines Lanusse: Interest expenses totaled $383.9 billion pesos, denoting a 20.9% decrease quarter over quarter. Quarterly decline is described by global time deposits and checking account expenses, in particular interest-bearing checking accounts. Interest on time deposits, including investment accounts, explained 71.2% of interest expenses versus 70.5% in the previous quarter.
Interest expenses totaled 880, <unk> 90 on Batesville, you know being at 29% decrease quarter over quarter.
While the decline in display.
I know, we're 10 deposits in checking accounts extended in particular any interest bearing checking accounts.
So some time deposits, including investment account explains 71, 2% of interest expenses.
75% in the previous quarter.
Ines Lanusse: Net fee income as of the fourth quarter of 2023 totaled 35.6 billion pesos, increasing 36.9 percent. In the fourth quarter of 2023, the income totaled $70.7 billion pesos, increasing 18.8% quarter over quarter. The quarterly increase is mainly explained by a 41.9% growth in fees from credit cards due to lower expenses related to the Punta de Uribe LLC program and higher activity, combined with an increase in prices. Regarding fee expenses, these totaled 35.2 billion pesos, increasing 4.7% quarter over quarter. Greater expenses are explained by fees paid in foreign exchange related to royalties affected by the devaluation of the local currency and payroll marketing campaigns. In the fourth quarter of 2023, loan loss allowances increased 74.9%.
Net fee income, although the fourth quarter of developments like the three totaled $35 6 billion pesos, increasing 36, 9%.
In the fourth Cologuard 1030 P M.
It was down 71, 7 billion pesos, increasing 18, 8% quarter over quarter.
Quarterly increase is mainly explained by a 41.9 well being.
Credit cards due to lower expenses related to blue belt lately.
Yeah.
So one on higher activity combined with an increasing prices regarding fee expenses. These totaled $35 2 billion pesos, increasing four 7% quarter over quarter.
Great expenses are explained by E mailing foreign exchange related to royalties are affected by the devaluation of the local currency and payroll marketing campaign.
Whereas a thousand and talking to me no real allowances increased 74, 9%.
Ines Lanusse: The increase is explained by the accounting re-expression of loan loss allowances in the foreign currency portfolio. During Q4 of 2023, total operating expenses were $211.7 billion pesos, increasing 0.6% quarter over quarter, of which 32% were personal benefits costs. Personal benefits increased 2.6% quarter over quarter. The quarterly change is mainly explained by the inflation adjustment of vacation stock provisions and variable compensation. This adjustment is applied retroactively to the last 12 months. As of the fourth quarter of 2023, administrative expenses increased 29.5% quarter over quarter.
Increase in display media counting expression Oh, no loss allowances in the foreign currency portfolio.
So we're in fall of 2023 total operating expenses were $211 7 million pesos in breathing, 0.6% quarter over quarter of which 32% where personal benefits.
Personal benefits increased two 6% quarter over quarter. The quarterly change is mainly explained by the inflation adjustment of the patients self provision and very little compensation.
Our judgment is applied retroactively to the last 12 months.
Although the fourth quarter of 2000 and from Disney administrative expenses fell 29, 5% quarter over quarter, who are explained by an increase in the amount of services contract with the parent company offset by the uptake of the probation all visa expenses in line with the FX rate depreciation.
Ines Lanusse: These were explained by an increase in the amount of services contracted with the parent company, offset by the update of the provision of these expenses in line with the FX rate depreciation estimated at the quarter end. Having this said, the quarterly efficiency ratio as of the fourth quarter of 2023 was 46.4%, improving compared to the 82.4% reported in the third quarter of 2023. The quarterly decrease is explained by a decrease in expenses and an increase in net income, especially due to an increase in results from income from foreign exchange, as well as income from write-down of assets at a mortgage-like cost, and OCI. The accumulated efficiency ratio as of the fourth quarter of 2023 was 58.6%, improving compared to the 63.8% reported in the third quarter of 2023. The improvement in this ratio is due to a lower increase in expenses versus net income.
At quarter end.
Sad the horn in the efficiency ratio I was on the fourth quarter of 2023.
Six 4% improving compared to the 82, 4% reported in the third quarter of 2020 to me.
Quarterly degrees is explained by a decrease in expenses and an increase in net income, especially are you planning. We can result from income from foreign exchange as well as it can come home write down of assets, what does that cause I don't yeah.
The accumulated efficiency ratio as one of 2020 was 58, 6% in cooling compared to 63, 8% reported in the third quarter of 2000, and some degree improvement.
The improvement in this ratio in Q2 are nowhere inquiries inexpensive for instance, netting.
Ines Lanusse: This positive variation in the ratio is also due mainly to better income from write-down of assets and mortgages at cost and OCI and income from foreign exchange. In terms of activity on slide eight, private sector loans as of the fourth quarter of 2023 totaled 2 trillion pesos, decreasing 5.7% quarter over quarter and 12.3% year over year. However, loans to the private sector in pesos spent 9% in the fourth quarter of 2023. During the quarter, the decrease was especially driven by a general decline in loans.
These positive variation in that ratio in cells are you mainly to better income from write downs of assets unorthodox and OCI I mean somehow pardon me okay.
In terms of like Crazy on Friday, private sector loans as of the fourth quarter of 2020, but he told US who premium baseball decreasing five 7% quarter over quarter, and plus 3% year over year.
No to the private sector in Brazil, and 9% in the fourth quarter of 2000 and from Disney.
Florida that decrease was especially driven by a general decline here now.
Ines Lanusse: The discrete was partially offset by a 1.6% increase in overdraft driven by greater activity. Loans to the private sector denominated in foreign currency increased 41.1% quarter over quarter. The quarterly increase is mainly explained by a 54.7% growth in financial and pre-financing effects. However, loans to the private sector in foreign currency measured in U.S. dollars decreased 6.1 percent quarter over quarter. During the quarter, the retail portfolio fell 11.7%, and the commercial portfolio increased 0.9%.
Douglas Creek was partially offset by a one 6% increase in all of her drop driven by greater activity.
No the private acceptable denominated in foreign currency increased 41, 1% quarter over quarter.
The increase is mainly explained by a 54, 7% growth in financial and Green financing impactful.
No to the private sector and foreign car is measured in U S dollars.
Equally six 1% quarter over quarter.
During the quarter the retail portfolio fell 11, 7% nickel harsha portfolio increased one 9%.
Ines Lanusse: As observed in the previous quarters, non-portfolio assets were impacted by the effect of inflation during the fourth quarter of 2023, which reached 53.3%. In nominal terms, BBVA Argentina managed to increase the retail, commercial, and total loan portfolio by 35.3%, 54.7%, and 45.2%, respectively, only surpassing quarterly inflation levels in the case of commercial loans. The consolidated market share of private sector loans reached 9.85 percent as of the fourth quarter of 2023, improving from 9.10 percent a year ago. As of the fourth quarter of 2023, the asset quality ratio maintained a very good performance at 1.29 percent, in line with the good behavior of both retail and commercial portfolios. The lower decrease in the total loan portfolio versus that in the non-performing portfolio is explained by a growth in commercial loans driven by a devaluation of the FX rate without significantly affecting client credit behavior.
As observed in the opinions ward Nye portfolio were impacted by the effect of inflation during the fourth quarter of 2000, and some D C suite.
Any points need with them now.
Hum.
Argentina managed to increase the reach commercial until how long portfolio by 35%.
54, 7% and 45.
And 2%, respectively, only surpassing quarterly inflation levels in the case of commercial loans.
Maybe Argentina consolidated market share of private sector loans reached nine point, 85%, although the fourth quarter of 2012 D E improving from 910% a year ago I thought the fourth quarter of 2000 and since he's any asset quality ratio keeps a very good performance.
At one point 29 points and in line with the book behavior, Oh, well we.
Our commercial portfolio.
The decrease of the total loan portfolio versus that of a nonperforming portfolio is explained by our growth in commercial loans driven by a revaluation of the FX rate without significantly affecting client behavior.
Ines Lanusse: On the funding side, as seen on slide nine, private non-financial sector deposits in the fourth quarter of 2023 totaled 3.1 trillion pesos, decreasing 8.6 percent quarter over quarter. The bank's consolidated market share of private deposits reached 6.79 percent as of the fourth quarter of 2023. Private non-financial sector deposits in pesos decreased 26.1 percent compared to the third quarter of 2023.
On the funding side Ive seen on slide nine private nonfinancial sector deposits in the fourth quarter of 2023 total sneak one one trillion pesos decreasing eight 6% quarter over quarter.
Consolidated market Chill private deposits reached $6, 79% as of the fourth quarter of 2023 private nonfinancial sector deposits in pesos decreased 26, 1% compared to the third quarter of 2000 and I'm supposed to be.
Ines Lanusse: The quarterly change is mainly affected by a 40.9 percent decline in bank deposits, a 37.1 percent fall in investment accounts, and a 22 percent fall in checking accounts, the latter driven by the bank's strategy of reducing interest there in checking accounts. Private non-financial sector deposits in foreign currency expressed in pesos increased 63.4% quarter over quarter. This is mainly explained by seasonal tax.
The quarterly change is mainly affected by a 49% decline in incentive both at a 37, 41% fall in investment income and a 22% and checking how come the later Cleveland on the bank's strategy of reducing interest bearing checking accounts.
Private nonfinancial sector deposits in foreign currency expressed in pesos increased 63, 4% quarter over quarter. This is mainly explained by seasonal factors in.
Ines Lanusse: In terms of capitalization, BBVA Argentina continues to show strong solvency indicators in the fourth quarter of 2023. The capital ratio reached 32.8%. Growth in the ratio was mainly driven by an increase in capital, mainly due to better OCI results in the fourth quarter of 2023. Exposure to the public sector in the fourth quarter of 2023, excluding central bank instruments, represented 15.9% of total assets, above the 12.7% in the third quarter of 2023 and below the 22.4% reported by the system as of December 2023.
In terms of capitalization be Argentina continues to show strong positive indicators on the fourth quarter 2017 capital ratio reached 32, 8% growth in the ratio was mainly driven by an increase in fact, mainly due to better results in the fourth quarter of 2023.
Exposure to the public sector in the fourth quarter of 2023, excluding central Bank instruments represented 59% of total assets.
The 12, plus 10% in the South, Florida, because oftentimes in D C and below the 22, 4% reported by the system as of December 22nd please.
Operator: The bank's total liquidity ratio remained healthy at 91.2% of total deposits as of December 31st, 2023. This concludes our prepared remarks. We will now take your questions. Operator, please open the line for questions. We will now begin the question and answer session. To ask a question, you may press star, then one on your telephone. If you are using a speakerphone, please pick up your handset before pressing the button.
Total liquidity ratio remains healthy at 91, 2% of don't have the buckets as of December 31st 2020.
This concludes our prepared remarks, we will now take your questions. Operator, Please open the line for questions.
We will now begin the question and answer session to ask a question you May Press Star then one on your telephone keypad, if youre using a speakerphone. Please pick up your handset before pressing the keys to withdraw your question. Please press Star then two.
Operator: To ask your question, please press star, then 2. Our first question comes from Walter. Hi Berzio, with Santander.
Yes.
Our first question comes from Walter.
Hi.
<unk>.
With Santander. Please go ahead.
Walter Berzio: Hi, good morning. Thank you for taking my question. I would like to...
Hi, good morning.
Thank you for taking my question.
I would like to.
Ines Lanusse: I'm starting with your envisioning for the dynamic in the next... 12 months. I'm probably beyond that. Still, a large part of the profitability of the banks in Argentina comes from this position; the public sector, particularly those working on the, But if the economic plan is successful, probably we'll see low inflation rates towards the second part of the year. And banks will start to shift their portfolio from the public sector, the head, How do you think that, what is your strategy, what is the role of the central bank with this put that you have to sell the bond? to the central bank in order to shift the portfolio to private sector loans. What is the dynamic that you anticipate for the rest of the year?
I'm sure you are envisioning.
Hey, Thanks, Jordan launch.
Hum.
Beyond that.
It's still a large part of the profitability of the banks in Argentina controlling disposition.
Okay.
Thanks Lee.
No.
But if the economics.
His succession, probably what we see.
Lower inflation rates towards part of the year amongst when you start to.
The portfolio from the partnership.
Okay.
Thanks Olivia.
Hum.
Yeah.
How do you see.
What are you sort of struck me she wanted to ROI centric lens.
This launch.
So the central bank in order to shift the portfolio.
She gets ready to take the law.
What is the dynamic that you.
The original year.
Thank you.
Ines Lanusse: Thank you, highlights from the results we presented for 2023 that despite the scenario you have been describing, no high inflation around 211 and still being high although a little bit smaller for lower for 2024 we're projecting 175 inflation ERN with the what happened with a monetary policy rate that went up and then went down with the devaluation and as you mentioned with banks mainly lending acquiring bonds because of the lack of demand BBVA in particular has been able to keep lending and increasing our market share our market share during 2023 increased 75 basic points and that is something that I would like to highlight because we believe that what the bank needs to do is despite the context keep lending. Going forward, we still see or we still project a contraction in real terms of the loan growth. For the system, we are projecting a 24% decrease in real terms, but the bank should be decreasing less, around 11%.
How are you doing okay. Let me start by the first part of your question and I don't know.
Highlights from the results we presented.
'twenty three that despite that and now you have seen it's Brian.
Inflation of around 211.
<unk> hi, although while it can be 10 is more like four nowhere for 2024, and we're projecting 175 inflation.
We are in.
Wade that what happened with that monetary policy rate that went up and then went down.
The devaluation and as you mentioned with banks may mandate acquiring bonds because of the lack of demand D. D. D aimed by tequila hadn't been able to keep managing and increasing our market share our market share.
<unk> increased 75 basis points and that is something that I would like to highlight because we believe that the bank needs to do always despite the context keep lending.
Going forward.
You see always feed project a contraction in real time.
Don.
Young growth Oh.
The kids can walk we are projecting a 24% decrease in real time, but the banks should be.
Decreasing less around 11% so we.
Ines Lanusse: So we still are aiming to keep increasing our market share and also, in parallel, increase our active clients, which, as you've seen in our presentation, have increased 10% from the figures of last year. So moving forward, we believe there are still a lot of moving parts to be able to define when this pickup and lending will start. But the bank is committed to keep lending and increasing market share and start switching our positions in bonds and central bank instruments that we have in our assets on loans. That is the commitment and where we are aiming for the next years, but we need the macroeconomic scenario to start changing.
Our aim is to keep increasing.
Our market share and also in parallel to increase our active clients that have you seen in our presentation I think we stand boyfriend from the figures of last year. So.
Moving forward, we believe there are still I know don't need parts.
Be able to define when they keep cutting and mandating will start that.
The bank is committed.
Keith and lending and increasing market share and start switching I play station in bonds and Central Bank instruments that we have in our interactive by loan that is a commitment on where we are aiming for the next few years, but we need that macroeconomic scenario.
Yeah.
Yeah.
Ines Lanusse: Okay, perfect. Thank you very much, Ines. Again, if you have a question, please press star and then 1. This concludes our question and answer session. At this time, I would like to turn the floor back to Ms. Lanusse for any closing remarks. Okay, thank you very much for your time, and let us know if you have further questions. Have a good day. Thank you. This concludes today's presentation. You may now disconnect your line at this time and have a nice day.
Okay perfect. Thank you very much.
Again, if you have a question. Please press star and then one.
This concludes our question and answer session. At this time I would like to turn the floor back to Ms. Lucia for any closing remarks.
Okay. Thank you very very much for your time and let US know if you have further questions have a good day.
Thank you. This concludes today's presentation you may now disconnect. Your line at this time and have a nice day.