Mateus Raffaelli

Mateus Raffaelli questioned the bank's coverage ratios and cost of risk, noting the downward trend in coverage (99%) amidst rising NPLs and significant portfolio growth. He sought clarity on whether current coverage levels are considered core or if improvement is expected, especially given the portfolio mix, and asked for an outlook on retail NPL stabilization.

Answer

Carmen Morillo Arroyo, CFO, explained that past coverage ratios were exceptionally high due to low NPLs. She stated that current levels of 98%-100% are comfortable for 2025, with no significant decrease expected, and projected higher levels for 2026. She reiterated that retail NPLs are expected to see their worst by the end of 2025 or early 2026 before normalizing.

Mateus Raffaelli inquired about BBVA Argentina's coverage ratios and cost of risk, noting the downward trend in coverage (99%) amidst rising NPLs and significant portfolio growth. He asked for insight into the bank's comfort level with current coverage ratios, whether they represent a core level, and the outlook for retail NPL stabilization.

Answer

CFO Carmen Morillo Arroyo explained that historically high coverage ratios were due to low NPLs in previous years, and a reduction is normal in a more complex environment. She stated that the bank is comfortable with coverage levels of 98%-100% for 2025 and projects higher levels for 2026, indicating that current levels are expected to be the minimum. She did not provide a specific timeline for retail NPL stabilization beyond expecting the worst by year-end 2025 or early 2026.