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spk_0: good morning ladies and gentlemen and thank you for waiting at this time we would like to welcome everyone to be the a argentina's fourth quarter and twenty twenty two fiscal year results conference call we would like to inform you that this event is being recorded and all participants will be in listen only mode during the company presentation after the company's remarks are completed there will be a question and answer session at that time further instructions will be given should any participant need assistance during this call please press star zero to reach the operator first of all let me point out that some of the statements made during this conference call may be forward looking statements within the meeting of the safe harbor provisions found in section twenty seven a of the securities act of nineteen thirty three under us federal securities law these forward looking statements are subject to risks and and certainties that could cause actual results to differ materially from those expressed in the forward looking statements additional information concerning these factors is contained in bb the a argentina's annual report on form twenty f for the fiscal year twenty twenty one filed with the us securities and exchange commission today with us we have mrs carmen mario earlier and cfl mrs in essen answer iraq and miss miss billion for card investor relations miss for card you may begin your conference
spk_1: good morning and welcome to be the arrogant enough for water and two thousand and is that the a result companies are he days web in r will be supported by a slide presentation available on our investor relations website on the financial information sexual speaking during today's go will be enough then you'll say our investor relations officer and carmen money so arrows are our chief financial officer who will be available for like una a session please note that starting january first two thousand and twenty as their central bank regulation we have begun reporting results are playing hyper inflation accounting pursuant to i i wrestle a as twenty nine recent comparability two thousand and twenty one and two thousand and the did your feeders have been restated to reflect the accumulated a threat of inflation adjustment for each period it was december thirty first two thousand and twenty two now let me turn nicole alerting us i'm cuban then and thank you all of you for joining us today as we are all aware in spite of are less vibrant melbourne context and a local environment defined by the difficulty of correcting current macroeconomic distortions and meeting the establish objectives in the loan agreement reached with the i met economic activity has shown denim isn't in two thousand and twenty two according to be a research evidence suggests that gdp will increase five percent in twenty twenty two nonetheless the global context hi local inflation financial volatility uncertainty about economic policy and the limited leeway to add up new stimulus measures legit legitimate his break patients have a contraction of gdp in twenty twenty three referring to be da's argentina performance a better operate in incoming twenty twenty two was the product of an improvement in in prison camp and interest from ground securities pvv i didn't tina has a corporate responsibility with society characteristic of the bands business model would you encourages inclusion financial education and support scientific research and culture the bank works with a high of integrity know the term vision and best practices and is present to the be the a group in the main sustainability in texas moving into business dynamics as you can see on slight three on the web or class immigration or service offering has evolved in such a way that by be end of december twenty twenty two we can be just don't find penetration reach sixty two percent remaining stable from a year back while that of me to move my clients reach fifty five percent from fifty three percent of the same period of the last year the response on the side of customers has been satisfactory and we are convinced this is the back to you in the aim or sustaining and expanding at a competitive position in the financial system we can vigital sales have increased from eighty percent in the fort ord out two thousand and twenty two two eighty three point nine percent of units and represent fifty six point nine percent of the bank total sales measured in mandatory value vs fifty two point nine percent in the fourth quarter the thousand and twenty one new customer up with session of digital channels reach seventy two percent in the fourth quarter of two thousand and twenty two from sixty six percent in the fourth quarter of two thousand and twenty one the bank the really monitors it's business financial conditions an operating without the aim of keeping a competitive position to face context what changes going to slight for i will now command on the banks fourth quarter twenty twenty two and twenty twenty two fiscally your financial resign be argentina fourth quarter twenty twenty two net income was seventeen point one billion pesos increasing fifty point nine percent or elbow quarter is implied a portal yarrow we have nineteen point four percent on a quarterly garraway of three point six percent operating income in fourth quarter twenty twenty two was sixty one point seven billion pesos eight point six percent above the fifty six point eight billion pesos recorded in about quarter twenty twenty two this is mainly explained by greater interest income driven by a higher monetary policy rate compared to the previous quarter which allowed net operating income to increase more than operating expense because back was partially offset by an increase increasing one other a break in income to low lowest allowances and three or four in foreign exchange and gold gates it is worth mentioning that import what twenty twenty two income from net monitored a decision he greece twelve percent giving that law quarterly inflation which change from twenty two percent in the third quarter of twenty twenty two to seventeen point three percent in the fourth quarter pv aired and tina twenty twenty two net income was fifty seven point nine billion pesos forty point five percent higher than the forty one point two billion pesos reporting in twenty twenty one is implied and accumulate analyze iran we have seventeen point five percent and an arrow the way of three percent in twenty twenty two compared to an accumulated analyze our a we have thirteen point five percent on an hour away of two percent in twenty twenty one the increment in the band operating income is mainly explained by one an increase in interest income mostly you to an increase in that position and yield of central bank instruments and to better than income from a financial instruments a fair value could be an m explained by an increase in the decision of my league and inflation live national treasury bonds and by the sale of there remain in participation of the bank employees my to in the first quarter of twenty twenty two turning into the piano lines in slight five and six net countries income for the court order twenty twenty two was a hundred and six point one billion pesos increasing eighteen point one percent whatever the quarter in fourth quarter twenty twenty two interesting come in monetary terms increased more than entries expenses mainly due to one rape for and come from government securities to an increase in income from interest from blows in particular credit cards and discounted instruments and three the increase in income from rebel day comes mentioned take place in that context of increasing interest rate resulting from an increase in the monetary policy right by the central bank as well as an increase in inflation rate in fourth quarter twenty twenty two increasing can tell that two hundred and one point seven billion pesos increasing nineteen point to compared to the third quarter twenty twenty to what early increase it's mainly driven by one higher income from government securities bulk from an increase in the nominate right and the volume in the position of leak to an increase in interest problems mainly credit cards and discounted instruments especially due to the incriminated interest rate and higher activity and be an increase in the nipple premiums interest expenses total ninety five point six billion pesos denoting and twenty point four percent increase or know about water quarterly increase is that's why i hired time deposit expenses while though slightly offset by a fall in said oh well i just and expenses the latter connected to say link time deposits in one time to pass it including investment accounts explain seventy nine point nine percent of as dress expensive for it's a seventy point nine percent in the previous quarter in twenty twenty two net increase income told that the hundred thirty nine point four billion pesos led by increasing come from high a decision on higher yields from public and central bank securities net income as on the fourth quarter twenty twenty two total ten point two billion pesos increasing four point nine percent or over quarter in the fourth quarter twenty twenty two he can total nineteen point eight billion pesos increasing two point one percent and what over quarter the quarterly increase it's mainly explain by fees from credit cards growing four point two percent mostly due to more activity on consumption and is linked to lungs regarding fee expenses nice total nine point six billion pesos increasing ten point eight percent auto about quarter higher expenses in the quarter or partially explained by expenditures linked to credit and debit cards you to a higher apply that with says your cause processing fee based on higher expenditures in season on commercial promotions net been gone in twenty twenty two remain stable with an increase of one point four percent as a result of a six point four percent drop in income on a fifteen point two percent drop in expenses their behavior in fees was mainly explain why the change of the credit card loyalty program on let them to go does it in fourth quarter twenty twenty two loneliness less allowances increased fifty two point seven percent mainly due to the update in the eye for us nine environment last model parameters these also explains the here to increase to import or twenty twenty two top ten operate the next day and this was fifty seven point five billion pesos increasing twelve percent quarter over quarter of which thirty two percent were and of benefits cause remaining stable versus how quarter twenty twenty two personal benefit increase twelve point seven percent a quarterly increase is partially explained by the effect of collective agreement the wages with the unions on the fourth quarter twenty twenty two an increment in person and compensation and bonuses and an increase in employee training expenditures administrative expenses increased one percent while before the quarterly increase is partially explained by one on increase in taxes to rates are expenses in advisors and costs and the be an increase in outsource administrative expenses the negative effect of the for a mansion items was offset by a decrease in red and software the quarterly efficiency ratio as of the fourth quarter twenty twenty two was fifty three percent improvement compared to the sixty four point eight percent reported in the third quarter twenty twenty two the quarterly improvement is explain why a law where increase in expensive than income especially due to a significant improvement it interesting got a lower quarterly results from that that monetary procession he accumulated efficiency racial as of twenty twenty two was sixty three point nine percent improve when compared to the sixty nine per one percent reporting in twenty twenty one the yearly improvement is also explained by a significant improvement in in prison in terms of activity was like seven total consolidated financing to the private sector in the fourth quarter twenty twenty two told to seven hundred thirty four billion pesos increasing seven point five percent or well quarter i'm gone prepping the point one percent year over year young's to the private sector in pesos increase seven point eight percent in the fourth ward twenty twenty two years the border the increase was especially driven by a thirty four point one percent growth in discounted instruments a four point three percent increase in credit cards you to the grow old activity followed by a twelve point one increase in overdrive on a fight from one percent in other loves the latter are affected by great of floor plan in activities that a week be outdoor market consolidated financial companies are featured good or sheet network gets it's financing for me cause thoughts spare parts are now the goods no to the private sector denominated in foreign currency slightly increased one percent quarter of a quarter i remain practically stable falling zero point five percent year over year quarterly increase is mainly explained by a thirty eight point six percent increment in other loans on board you know said via thirty six point one percent wall and credit cards known for the private sector and foreign car seat measured in us dollars fell one point five percent or a quarter an increased twelve point four percent year over year you're in the quarter well the retail and commercial portfolio fairly real terms number for your were highly and that by the effect of inflation been the first quarter of twenty twenty two which which seventeen point three percent and nominal terms meeting he ate origin tina managed to increase the tell a loan portfolio by twenty five point six percent during the quarter dvd or containers consolidated market share of private sector allows reach nine boy ten percent as of the fourth quarter twenty twenty two improving from eight point zero five percent a year ago in north korea twenty twenty two at quality ratio was one point thirteen percent compared to at one point zero seven percent recording the bell quarter twenty twenty two the mine increase is mainly explained by adding creating their read that nonperforming board for you the advent of the i offer as nine impairment last model parameters had an impact on the corporate rate ratio which reach two hundred forty two point twenty percent above the two hundred thirty six point eighty nine percent recorded the purported twenty thirty two and on the cost of brief which reach for point zero nine percent of what born at twenty twenty two above the third quarter twenty twenty two two point sixty five percent on the funding side at seen on slight a private non financial sector deposits in import order twenty twenty two thought done one point three premium sauce falling twelve percent quarter of a quarter and three point seven percent year over year quarterly degrees was made me explain why thank the bosses the band's consolidate the market share of private the boss it reach six point sixty four percent as or the fourth quarter twenty twenty two private non financial sector deposits in pesos increase two point nine percent compared to the felt at twenty twenty two the quarterly change is mainly affected by a fifteen point seven percent increase inside deposit photo the bike time they posted by a point four percent these was partially upset by your degrees in investment accounts by seventeen point nine percent private non financial sector deposits and foreign currency expressed in pesos woo sixteen percent cordoba quarter mainly due to a seasonal effect in terms of capitalization be videos and tina continues to show strong shoulders indicators in fourth quarter twenty two capital ratio to reach twenty six point one percent exposure to the public sector in the fourth quarter twenty twenty two excluding central bank instruments represent ten point one percent of total awkward slightly above the nine point eight percent in the third for a twenty twenty two away be no the sixteen point four percent reported by the system as of december twenty twenty two it is worth mentioning that does the date of this report bb edge and tina has distributed dividends by thirteen point two billion pesos installment one for twelve according to the fabulous schedule village on june sixteen twenty twenty two the banks tell can liquidity race shot remain healthy at seventy eight percent of total the boss it as of december thirty first one to twenty two this concludes i prepared remarks were with now take your question operator please open the line for questions
spk_0: we will now begin the question and answer session to ask a question you repress star than one on your telephone keypad if you're using a speakerphone please pick up your handset for pressure the keys to draw your question please press star than two at this time we will pause momentarily to assemble a roster our first question is from rodrigo new store with lead securities please go ahead
spk_1: hi in one thousand people you put your p i have a peak waiting for what you out before europe them we can be a know the exchange sewing incredibly doing a posted on or oh you don't think we're by person be really let alone rookie though you do
spk_2: in the long run
spk_1: and then if you could provide some insight into the oh the for they currently are specifically where your explanation for low on the post go
spk_3: thank you
spk_1: okay yeah and with thirty nine hundred people like with them you believe this area we is a thing of they basically because week he ah the money hundred know what money will if the rig increasing by people in the second have two thousand and twenty feet according to a week aired from the and seventy five with and equal week eighty five with and by the age of twenty twenty three now the extract fang shall in march and could help sustain the arrow we i've yet to level ah iron number of and i'm a projection to give you an idea i mainly for gdp your theme be twenty twenty two ending around five point two percent growl bought for two thousand and twenty three when he has enough one fraction of one point then ah i'm inflation why that which you know when did around ninety five revenge ended up with let we are projecting for the thousand and twenty three hundred and five with that ah and the official ah epic we have rejected by the end of the did when be thirty three hundred and fifty five bit of that think of a benefit i'm regarding long growth ah we had we ended the your out we that negative growth of only minor three percent ah loi a degree in your real them less than the system that is completely twenty nine griffin how we will the at were able to gain market share
spk_4: add in the and then the look on point two thousand and twenty three we are projecting long road and you could be no when place on iran minor to britain similar levels the what was the fear we are a growing are known book in the up by dublin the commercial in the commercial line not i
spk_1: with have been me for developed it ah we ended ah two thousand and twenty two would mind that would with and it would more than the than the been that fit them and didn't mind is to put them on floor ah two thousand and twenty three we operate get they ah i also negative a real world of but in line with lung also mine had to britain the pendulum bella a quick follow up on with regards to the rhythm of you know that exchange for for progression one what is your invention going to participate though how do you how do you think or of the exchange and you yeah so basically we haven't it felt her all grown up hundred and ninety five billion based off of a treasury oh yeah that exclusionary ah from that more let forty five four and with forty five be on our every five requirement so we have on that hundred and fifty video matt from that ah number one that favor left that will would go into the voluntary accent with less than fifty billion ah and that a blue on law does that shit that with the of on that much we are between today and i'm doing the third you ah yes to be you are reference ah basically yep you think that that a hundred and ninety five a be a bit as i mentioned record and more let fifty percent a wack bp and at compared that to that fits them ah that for the hit them in record and eighty percent on for the private only fix it with and and adapting fact both it's only ah seven percent a a through to the he'd be and that the or how only seven percent of the have been faithful a eighth a handful private holder so a that it's basically are you know i got a bottle with with less than fifty billion into the bullet
spk_2: very exchange
spk_0: those were open question again if you have a question please press star than one please stand by as we pull for questions chile no further questions this concludes the question and answer session
spk_1: at this time i would lead to the for better mrs one who suffer any closing remarks
spk_0: okay thank you for a time and i know he that hath that a question have a good day
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