BBVA Argentina Stock Plunges: 62% Earnings Collapse Despite Surging Loans & Deposits

BBAR shares tank as traditional banking model shows cracks—profits nosedive while digital assets continue eating their lunch.

Loan books expand, deposits climb, yet earnings get slaughtered. The old guard's math just doesn't add up anymore.

62% annual profit vaporization screams institutional decay. Meanwhile, crypto-native banks stack gains without the legacy baggage.

Another brick-and-mortar dinosaur learning that balance sheet growth means nothing when your business model's on life support.

TLDR:

• BBVA Argentina’s earnings plunge 62% YoY despite stable margins.

• After-hours drop follows weak Q2 results for BBVA Argentina.

• Loan growth shines, but BBVA profits tumble under inflation stress.

• BBAR hit by falling returns even as deposits and loans surge.

• BBVA Argentina holds strong liquidity amid profit slide.

Banco BBVA Argentina S.A. (BBAR) closed marginally lower at $14.93 on August 20, slipping 0.07% during the trading session. However, the stock faced a steeper decline of 2.34% in after-hours trading, closing at $14.58.

Banco BBVA Argentina S.A. (BBAR)

Earnings Slump Despite Inflation Adjustments

BBVA Argentina reported a sharp 62.1% drop in inflation-adjusted net income year-over-year for Q2 2025. The bank posted ARS 59.6 billion in net income, down from ARS 157.4 billion in Q2 2024. This also reflected a 31.1% drop compared to the ARS 86.5 billion earned in Q1 2025.

BBVA Argentina, $BBAR, 2Q25. Results:

📊 Adj. EPS (FXC): ~$0.23 USD ($271 ARS) 🔴
💰 Revenue: ~$570M USD ($679.9B ARS) 🔴
📈 Net Income: ~$50M USD ($59.6B ARS)
🔎 Private sector lending ROSE 15.7% QoQ, led by export financing and credit cards. Deposits increased 12%. pic.twitter.com/V8jUgnd8cc

— EarningsTime (@Earnings_Time) August 20, 2025

The six-month accumulated net income in 2025 totaled ARS 146.1 billion, declining 31.7% from ARS 213.8 billion a year ago. Average return on assets fell to 1.2% in Q2 2025, compared to 2.0% in Q1 2025. Similarly, return on equity slipped to 7.6%, down from 11.4% in the previous quarter.

Margins and Profitability Show Mixed Trends

Net interest margin (NIM) in Q2 2025 stood at 19.1%, remaining stable versus 19.2% in Q1 2025. The local currency NIM held steady at 21.7%, while NIM in U.S. dollars improved to 5.4% from 3.9%. This improvement in USD margins partially offset the decline in overall earnings.

The bank’s efficiency ratio was 56.5%, barely changed from 56.3% in the previous quarter. Despite weaker profits, the bank kept its cost-to-income ratio in check. BBVA maintained profitability through operational controls, though falling returns continued to pressure its performance.

Regulatory capital remained strong, with a total capital ratio of 18.4%, and Tier 1 capital also at 18.4%. This represented a 123.9% surplus over the minimum requirement. Additionally, total liquid assets accounted for 48.7% of total deposits, indicating solid liquidity.

Loan and Deposit Growth Strengthens Market Share

In Q2 2025, total financing to the private sector rose 15.7% quarter-over-quarter in real terms to ARS 11.3 trillion. This reflected a significant 109.6% increase year-over-year, with all credit lines showing growth. Export financing, overdrafts, and other loans saw notable expansions of 23.5%, 34.6%, and 25.2%, respectively.

The bank’s private sector loan market share reached 11.61%, up 35 basis points from the previous quarter. Year-over-year, this increased by 107 basis points, reflecting consistent credit activity. BBVA demonstrated effective loan growth even as earnings declined.

Total consolidated deposits reached ARS 13.0 trillion, up 12.0% in real terms from Q1 2025. Time deposits grew by 36.3%, while savings accounts rose 11.6%, particularly in foreign currency. BBVA’s deposit market share rose to 9.64%, adding 49 basis points QoQ and 214 basis points YoY.

Non-performing loans (NPL) held steady with a ratio of 2.28%, supported by a coverage ratio of 115.5%. The quality of the loan book remained sound, with risk indicators within controlled levels. BBVA continued to manage credit risk effectively while navigating a tougher earnings landscape.