Good Morning, ladies and gentlemen and thank you for waiting. At this time, we would like to welcome everyone to BBVA Argentina’s 3Q '19 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 both companies presentation. After the companies remarks are completed, there will be a question-and-answer section. At that time further instructions will be given. [Operator Instructions] First of all, let me stress 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’ Annual report on Form 20-F for the Fiscal Year 2018, filed with the US Securities and Exchange Commission. Today with us we have Mr. Ernesto Gallardo, CFO; Ms. Ines Lanusse, IRO; and Mr. Javier Kelly, Investor Relations Manager. Ms. Lanusse, you may begin your conference.

Good morning, everyone, and thank for joining us today for the discussion of our third quarter 2019 results. Before we begin our formal remarks, allow me to remind you that certain statements made during the course of the discussion may constitute forward-looking statements, which are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to materially differ, including factors that may be beyond the company's control. For a description of these risks, please refer to our filings with the SEC and our earnings release, which are available at our new investor relations website ir.bbva.com.ar. Before I start commenting on the bank’s financial results, let me also remind you that as of July 1st 2019, BBVA Argentina has started to consolidate its balance sheet line by line with the activity of PSA Finance, Rombo Compañía Financiera and Volkswagen Financial services. Prior to this change, the activities of these joint ventures were reflected under income from associates, under the proportional consolidation method. This change is attributed to the modification of the shareholders agreements, by which the bank acquires the power to run the activities of the three joint ventures. Based on the above, the bank result should be considered on a consolidated basis. Now I will comment on the bank's third quarter 2019 financial results. BBVA Argentina´s third quarter 2019 net income totaled ARS11.1 billion, 63.9% higher than the ARS6.8 billion posted in the second quarter 2019 and 264.8% higher than the ARS3 billion posted a year ago, mainly based on the increase in net interest income and foreign exchange results. The accumulated net income for the nine months ended as of September 30, 2019 was ARS23.9 billion, 253.3% higher than the same period of last year. The bank…

Thank you. The floor is now open for questions. [Operator Instructions] The first question will come from Gabriel Nóbrega with Citibank. Please go ahead. Gabriel Nóbrega: Hi, everyone. Good afternoon. And thank you for taking my questions. It's already been two weeks since the administration one I know it's still a long shot until December, but maybe could you tell us what you are seeing and in practical terms what are you expecting in terms of this new administration? And if you are already seeing any impacts there directly to the banking sector? And I'll make a second question afterwards. Thank you.

Hi, Gabriel. Thank you for your question and joining the call. As you said at the beginning, it's early to say the administration yet has not disclosed that much information or how he's going to address the country going forward. Regarding the bank, we have seen some extra deposits out flowing, the system in line with a system much more and more than that. And going forward what we are projecting regarding loan growth for the quarter, probably some decrease routine for the fourth quarter of 2019, but the deposit growing in the fourth quarter of 2019. Gabriel Nóbrega: Alright and just again a follow up here, sorry, we have heard that maybe an SME directed lending could come back. Have you heard anything about this as well?

Nothing official, obviously, if you base in the past that you had some momentum in orientation and that happened in 12 years of administration. It's something that could happen. But we have no official information to confirm that that is going to happen. Gabriel Nóbrega: Alright, perfect. And as for my second question, it's actually on the impacts from the depth, re-profiling, we saw another one of your peers passing this impact through it some P&L specifically on the NII front. However, when we looked at your results, I understood you actually pass this to the other comprehensive income, which ended up affecting your equity and not your P&L and your bottom line. So here could you maybe just elaborate how you booked these results, and how we should maybe look at these results and the impact from the depth re-profiling going forward, please.

Yeah, okay. I've you mentioned the returns from those securities basically is the administration of the excess liquidity that the bank has, which is done by the asset and liability committee. So that's why the effect you feed under other impressive income. From the total amount that was re-profiled, basically, you have ARS731 million in LECAP. You have ARS245 million in LETEs, that was the only amount that if you wouldn't have had a re-profile, you would have been able to recognize that interest in the quarter and you have ARS9 million of LELINK. Since these securities are administered – are dealt by the asset and liability committee these securities are hold to maturity. So what you're reflecting in the balance sheets in other compressing or is that decreasing the price, but since you hold the security till maturity once you are able to get the interest, you're going to see that effect on the P&L. Gabriel Nóbrega: Alight, so on the P&L it's to come on the NII front right?

Exactly, on NII, once the security matures and we're able to collect the interest rate of those activities, obviously, there's no default on those securities, no. Gabriel Nóbrega: Perfect, thank you.

[Operator Instructions] The next question comes from Alonso Garcia with Credit Suisse. Please go ahead.

Good morning, everyone. Thank you for taking my question. My first question is regarding the exposure to Central Bank Instruments. Given some comments made by the President on – or by the elected President [indiscernible] and/or by his applied source regarding the LELINK, I mean, there is some uncertainty surrounding this instrument. So I don't know if you have any sort of strategy here to reduce your exposure to these sort of instruments. If that is the case, with which instruments you would replace the LELINK and what would be the sort of impact on profitability from switching out of the LELINK. And my second question would be quality. I would like to hear you, if you can share, what would be the – what would have been the pro forma NPL ratio considering the consolidation of the auto loan portfolios. And what is the outlook ahead considering the current outlook for GDP, inflation and interest rates? Thank you.

Okay, so regarding LELINK again, it's all comments that you're seeing in the press and it's difficult to say what's going to happen with that. Our position in LELINK has decreased in the quarter. As you can see in our press release, also after the last word lamentation where you can't use LELINK as minimum cash requirements, that also makes our position in LELINK somehow reduce and you're going to try to defend your margin by reducing the cost of funds. So basically, that's a strategy. It's early to say what the government is going to do with LELINK. There's a lot of rumors that nothing really official and what's going to happen with that. The truth is LELINK is the instrument the banks use to put the money we get from clients that are in time deposits. So basically – it's basically we get the money from our clients and we put them in LELINK. So it's a decision on the government what they want to do with that. Regarding NPLs, the consolidation is and the NPL ratio. The joint venture effect is only representing 4 to 5% of that NPL amount probably is more important to give you the NPL excluding Molinos Cañuelas. Molinos Cañuelas was – as we mentioned in the remarks, it's a US dollar debt. So you have an effect of that in the increase in NPLs plus you provisioned the debt from 50% to 75%. So basically, that's what happened and why NPLs increase so much, but if you would take off the effect of Molinos Cañuelas, NPL would have been 2.25. And your third question was more regarding the macro scenario correct?

No, it was just on the outlook on profit quality, considering the outlook, inflation and interest rates, what do you expect for NPLs and provisions going forward based on that?

Probably you will take provision of Molinos Cañuelas up to 100% by the end of the year, that's a possibility and nothing rather than the number operate and that's the main case that makes our NPL growth on particular because it's a US dollar denominated loan.

Understood, thank you very much.

The next question comes from Carlos Gomez with HSBC. Please go ahead.

Hello, nice. Good morning. First of all, thank you for giving us the information about inflation adjustment and how it affects your earnings and your equity that's quite useful. [indiscernible] you have given us the results for the year could you possibly give us the results in inflation adjusted terms for each quarter so that we start to build our series into to be prepared for implementation next year. Second, in terms of Molinos Cañuelas, so can you confirm that you classify it as non-performing this quarter, but now before or was it in the second quarter you started classifying? And finally, what other bib NPLs do you think you might be seeing and in what sectors and where do you think the NPLs could pick? Thank you.

Hi, Carlos, nice to hear from you. Regarding inflation adjustment we are providing the accumulated inflation adjustments as of the nine months. Inflation adjustment should be applied as of January of next year. So you probably are going to see that disclosed quarter-by-quarter once we start presenting the quarter results of 2020 where you will have to disclose the comparable for 2019. Regarding – your next question was more regarding NPLs. We had it as NPL already as of the third quarter of last year, we went gradually provisioning more, but the main effect you have on NPLs of Molinos Cañuelas has to do with – that is dollar denominated debt. So that makes increasing NPLs go higher. Going forward again the main effect you have in NPLs was Molinos Cañuelas and you had some instance of a company from the white line that had a peso – had a dollar loan and it was specified. It's around ARS500 million. So it had this refinance and moved into pesos. And then there's no other particular case that should be worried about. You had also some NPLs increasing because there are companies that have debts in other financial institutions. So based on Central Bank's regulation despite the company has no debt with us. We are obliged to provision the pesos also, so that also makes our provisions increase. And there was a third question Carlos.

Yeah, whether you think the NPLs will be peak?

We didn't have right now a number, we thought. Sorry, it's something that we are now elaborating a little bit more careful because all the ratings for Argentina due to these countries ceiling and then the rating that was changed by the different rating agencies is something that we are now elaborating. But given the case that we are calculating or providing the IFRS 9 provisioning for the holding company, we are – right now we know that we are not going to have any problem in that sense because we have enough provisions right now, assuming the change to IFRS 9. And on the other hand, we think that she's going to be the first implementation here in Argentina then the first impact will be in capital and not in results.

Could you give an idea about the order of magnitude of IFRS 9?

Excuse me.

Could you give us an idea about how much we are talking about this 100 or 200 basis points in your Tier 1 capital or three or four?

No, we are not talking about nothing relevant, really.

Okay and it will be applied in January 2020?

Excuse me.

It will be applied in January of 2020. Is that what you expect?

That will be the first moment, but again due to the uncertainties that we have right now in front of us with a new government, we are not – we don't know if finally the central bank will apply these because we are waiting for some layouts that they have to provide the different – all the banks in order to be able to calculate and properly the provisioning by IFRS 9. So we expecting the IFRS 9 in place in January this year or next year.

Yeah, very clear, thank you so much.

[Operator Instructions] This concludes our question-and-answer section. At this time I would like to turn the floor back over to Ms. Lanusse for any closing remarks.

Thank you, operator and thank you all for joining us today. We appreciate your interest in our company. We look forward to meeting more of you over the upcoming months and providing financial and business update next quarter. As usual, if you have any further questions, please do not hesitate to reach us and we'll be happy to follow up. Thank you and enjoy the rest of your day.

And thank you. This does conclude today's presentation. You may disconnect your line at this time and have a nice day.