Key Points – BBVA Banco Frances posted Q1 2026 inflation-adjusted net income of ARS 85.2 billion, up 31.2% sequentially, with return on equity improving to 8.3% as funding costs fell and margins widened. – Management cut its 2026 loan growth forecast to 15%–20% from 25%–30%,…
ting weak peso loan demand and a slow recovery in private credit, though it expects conditions to improve in the second half of the year. – Asset quality remains pressured, with the NPL ratio rising to 5.60%, but executives said they expect stabilization soon and see coverage levels and profitability beginning to recover. BBVA Banco Frances (NYSE:BBAR) reported higher first-quarter 2026 profit as management pointed to resilient revenue, lower funding costs and tight expense control, while cautioning that Argentina’s private credit recovery remains gradual
On the company’s earnings call, Investor Relations Manager Belén Fourcade said BBVA Argentina posted inflation-adjusted net income of ARS 85.2 billion for the quarter, up 31.2% from the prior quarter. The result lifted quarterly return on equity to 8.3%. Fourcade said the quarter unfolded in a macroeconomic environment marked by “a gradual transition and the normalization of key financial variables,” including lower interest-rate volatility and continued adjustments in monetary and regulatory policy.
She said the bank remains cautious about “the pace, timing, and evolution of a broader private credit recovery” in coming quarters. Margins Improve as Funding Costs Fall Net interest income rose 5.9% sequentially to ARS 879.9 billion, according to Fourcade. She said funding costs declined faster than asset yields because the bank’s liabilities have a shorter average life, expanding total net interest margin to 18.6%.