Banco BBVA Argentina S.A. (NYSE:BBAR) Q1 2024 Results Conference Call May 23, 2024 11:00 AM ET

Company Participants

Belén Fourcade - Investor Relations
Ines Lanusse - IRO
Carmen Morillo Arroyo - Chief Financial Officer

Conference Call Participants

Carlos Gomez - HSBC

Operator

Good morning, ladies and gentlemen, and thank you for waiting. At this time, we would like to welcome everyone to BBVA Argentina's First Quarter 2024 Results Conference Call. We would like to inform you that this event is being recorded, and all participants will in listen-only mode during the company presentation. After the company remarks are completed, there will be a question-and-answer section [Operator Instructions].

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 US 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. Additional information concerning these factors is contained in BBVA Argentina's Annual Report on Form 20F for the fiscal year 2023, filed with the US Securities and Exchange Commission. Today, with us we have Ms. [Ines Lanusse], IRO. Ms. [Lanusse], you may begin your conference.

Belén Fourcade

Good morning. And welcome to BBVA Argentina's first quarter 2024 results conference call. Today's webinar will be supported by a slide presentation available on our Investor Relations Web site on the Financial Information section. Speaking during today's call will be Ines Lanusse, our Investor Relations Officer; and Carmen Morillo Arroyo, our Chief Financial Officer, who will be available for the Q&A session. Please note that starting January 1, 2020, as per Central Bank regulation, we have begun reporting results applying hyperinflation accounting pursuant to IFRS rule IAS-29. For ease of comparability, 2023 and 2024 figures have been restated to reflect the accumulated effect of inflation adjustment for each period through March 31, 2024. Now let me turn the call over to Ines.

Ines Lanusse

Thank you, Belen. And thank you all for joining us today. 2024 starts with the new elected government substantially modifying the economic policy framework and focusing its efforts on a strong fiscal and monetary adjustment to reduce inflation. The reduction of fiscal deficit in the first months of the year, the relative currency stability observed after the significant depreciation of the Argentine peso in December 2023, the accumulation of international reserves and the contraction of economic activity have allowed a recent moderation of the monthly inflation, which, however, still remains high. In spite of the uncertainty and related risks according to BBVA Research, it is likely that these factors could set the basis for an inflation slowdown in the following months. These would eventually be completed by additional measures in the context of the release of a more integral stabilization program. BBVA Research estimates annual inflation will end close to a 155% and that GDP will drop around 4% this year. It is important to mention that interest rates have fallen quicker than expected, and it is expected that these should drop further as inflation continues to decline.