Aug 20, 2026 earnings call — Profit rebound and bank transformation
Net income rose 39% quarter on quarter to 206.8 billion.
Revenue $0.9B (est $0.9B) · EPS $2.17 (est $1.59)
Key quotes
"First, we reversed our double digit net income growth with net income up 39% quarter on quarter to 206.8 billion."
"It is important to mention that coverage on Stage 3 loans reached 148.8% in the second quarter."
"Finally, on digital plus human, another breakthrough of the quarter is that we launched the first conversational banking WhatsApp channel."
Analyst Q&A 12
Asset quality and loan growth outlook
Q (Yuri Fernandes · JPMorgan): Analyst asked about the outlook for asset quality: cost of risk, NPLs, and the coverage ratio. He also asked whether the recent central bank change on dollar lending will boost loan growth and how growth looks for the rest of the year.
A: Management said NPLs worsened in Q2 but at a slower pace than Q1, and stressed the difference between their own-risk portfolio and contagion effects. They expect cost of risk of between 6.5-7% by the end of 26, total NPLs between 5.5-6%, stage 3 well below 4%, and do not expect total coverage to fall below 90%. They see the new rule allowing banks to lend up to 15% of U.S. dollar deposits as positive for growth but unlikely to cause a boom in the near term; it may have more impact in 2027.
"Between the 4.1 in our own risk and the 6.3 with the contagious effect." — Jorge Francisco Scarinci (CFO)
Write-offs, recoveries, and 2027 loan growth
Q (Giuliano · Goldman Sachs): Analyst asked how write-offs and recoveries are trending and how they expect recoveries to evolve. He also asked for any view on loan growth for 2027.
A: Management said their write-off policy is to write off when a borrower reaches category 5 and provision 100%. Recoveries are small now but they expect recoveries to be slightly bigger in 2027. They said it is too early to give a 2027 loan growth guidance and asked to wait at least one more quarter.
"write off policy is what the debtor, the client reach category 5, and it is a provision 100%." — Jorge Francisco Scarinci (CFO)
Election impact and ROE guidance
Q (Ernesto · BofA): Analyst asked how business sentiment and consumer confidence look ahead of the election. He also asked how adjusted ROE should evolve for the rest of the year and full year.
A: Management avoided political predictions but said this is a pre-electoral year that can increase volatility; the central bank and government are preparing and U.S. dollar deposits remain at record highs. They raised adjusted ROE guidance for 2026 from about 8% to the area of 12% after a strong first half and better-than-expected margins.
"Yes, we are increasing our ROE guidance for 2026." — Jorge Francisco Scarinci (CFO)
2030 plan: how to reach target ROE
Q (Brian Flores · Citi): Analyst asked which levers will drive ROE to the midterm target and what sustainable ROE level the bank expects by 2030. He also asked why valuations have fallen despite improving unit economics.
A: Management said the long-term levers are growing volumes and market share, increasing primary customers, raising fee income (insurance, wealth), and improving efficiency while funding investments by reducing nonproductive costs. They view current valuation weakness as partly global turmoil and the pre-electoral year, not only local factors. They expect reported ROE in 2030 to be around 20% in nominal terms.
"So we are it is expecting to be in the area of about 20% ROE by 2030." — Jorge Francisco Scarinci (CFO)
Cost savings vs tech investment
Q (Pedro Leduc · Itau BBA): Analyst asked how to balance cost savings from branch and staff reductions with higher tech and software investments. He wanted to know how expenses will evolve in real terms.
A: Management said they expect about 370 branches and below 8 thousand employees by year end while continuing investments in technology. Nominal expenses may be similar, with lower employee remuneration but higher software costs, and the plan is to dilute these expenses across higher net interest and fee income.
"But, of course, going forward, the idea is to dilute this nominal level of expenses within a higher volume of net interest and fee income." — Jorge Francisco Scarinci (CFO)
Margin risk for rest of year
Q (Mario · Itau): Analyst asked whether margin could be challenged for the rest of the year if funding costs rise again while asset yields stay under pressure. He also tried to confirm loan growth guidance.
A: Management said first-half margins were slightly wider than expected and they expect to maintain margins in the next couple of quarters. They now expect net interest margin to be above the prior 20% guidance. They also confirmed loan growth guidance was revised to between 2 and 5 in real terms.
"Now after the first half, I will have to say that we should be above the 20% net interest margin guidance." — Jorge Francisco Scarinci (CFO)
Recent loan demand by sector and retail demand
Q (Camila Villaça Azevedo · UBS): Analyst asked about recent loan performance starting August, sector or customer segment drivers of growth, and how retail demand is responding to higher spreads.
A: Management said commercial lending should outpace consumer lending over the next two quarters, with consumer growth slightly below inflation and commercial lending tracking monthly inflation levels. Demand is strongest in mining, oil, gas and agribusiness, with some pickup expected in construction and weaker demand in mass consumption and autos. They also said intermediation spreads may narrow but bond and FX income can compensate, supporting stable net interest margin.
"In terms of growth, what we are seeing or what we will be seeing in the 2 coming quarters is that commercial lending should be outpacing consumer lending." — Jorge Francisco Scarinci (CFO)
Interior vs Buenos Aires credit trends
Q (Pedro Offenhenden · Latin): Analyst asked whether credit behavior or delinquency differs between the interior of the country and Buenos Aires in demand or delinquency trends.
A: Management said their footprint is more concentrated in the interior and less exposed in Buenos Aires, so trends at banks with more BA presence should be watched. They said their Stage 3 (own risk) is behaving much better than what they see for Buenos Aires clients and that their stricter credit policy also helps.
"Well, I mean, because our footprint is more in the interior and less exposure in Buenos Aires, I think that is important to look at those banks with more presence in BA to see the trend." — Jorge Francisco Scarinci (CFO)
Restructuring costs and ROE impact
Q (Federico · EdCap): Analyst asked if restructuring expenses will continue in H2 and 2027 and how these charges affect ROE, and requested the reported ROE guidance.
A: Management said restructuring will continue in 2026 with additional branch closures and FTE reductions, causing layoff costs in 2026 and savings in 2027. Their adjusted ROE forecast is about 12% for the year, and reported ROE should be in the area of between 9% and 10% for the full year. They prefer adjusted ROE to show results excluding one-time charges.
"I would say that the reported ROE should be ranging in the area of between 9% and 10% for the full year." — Jorge Francisco Scarinci (CFO)
Consumer repayment ability and loan growth
Q (Guido · Goldman Sachs): Analyst asked about the health of consumers: their ability to repay, whether loans are being written off or renegotiated, and how this affects potential consumer loan growth next year.
A: Management said consumption sentiment is currently sluggish and that cooling inflation would be the main driver for wage recovery and a likely consumption recovery in 2027. For the rest of 2026 they expect consumer loans to grow roughly in line with inflation and they are not seeing a pickup this year.
"The rest of the year, again, we are seeing these loans maybe grow in similar levels than inflation." — Jorge Francisco Scarinci (CFO)
Deposit growth guidance
Q (Lisandro · 1.62 thousand): Analyst noted a 1% decrease in deposits and a lower loan guidance, and asked for an updated deposit growth guidance for the full year.
A: Management said they are reducing deposit growth guidance to about 10% in real terms for the year. They expect peso deposits to grow at similar levels to inflation while dollar deposits may rise slightly faster than peso deposits.
"I think we are an also reducing a little bit the deposit growth for the year to put it in the 10% real area." — Jorge Francisco Scarinci (CFO)
Stage 3 comparison and M&A plans
Q (Ignacio · Invertir en Bolsa): Analyst asked if there are system-wide figures to compare the bank's 4.1 stage 3 level. He also asked whether excess capital makes acquisitions likely now or soon.
A: Management said they do not have many system comparisons for stage 3 and while they assume they are among the top banks on that ratio they lack a market comparison. On excess capital, they said it will be used for M&A and organic growth, they constantly look for opportunities, and they believe consolidation in Argentina is not finished so they remain alert.
"We do not have many comparisons on the state 3 in the system." — Jorge Francisco Scarinci (CFO)