Financial Instruments Risks (Tables)

12 Months Ended

Dec. 31, 2023

Disclosure of nature and extent of risks arising from financial instruments [abstract]

Summary of Credit Risk Exposure of Loans and Advances

The Group’s credit risk exposure of financial assets, loan commitments and financial guarantees under IFRS 9 with stage allocation by asset classification as of December 31, 2023 and 2022 is provided below:

Credit risk exposure	December 31, 2023		Stage 1		Stage 2		Stage 3
Cash and cash equivalents		415,678,677		415,678,677		—		—
Financial assets at amortized cost		3,492,654,055		3,154,006,364		303,440,509		35,207,182
Debt securities		96,681,440		—		96,681,440		—
Wholesale		1,221,331,138		1,129,949,339		85,843,115		5,538,684
- Business		528,849,835		504,743,775		19,918,423		4,187,637
- Corporate and Investment Banking		362,392,695		311,601,170		50,791,308		217
- Institutional and international		10,319		3,685		1,537		5,097
- MSMEs		159,206,280		142,728,700		15,131,847		1,345,733
- Others		170,872,009		170,872,009		—		—
Retail		972,219,682		821,635,230		120,915,954		29,668,498
- Advances		1,909,410		1,166,156		377,016		366,238
- Credit cards		674,523,874		582,116,623		78,202,893		14,204,358
- Personal loans		153,475,842		131,013,331		11,302,243		11,160,268
- Pledge loans		47,968,181		46,532,007		653,277		782,897
- Mortgages		90,404,966		58,129,217		29,121,012		3,154,737
- Receivables from financial leases		2,177,565		2,163,236		14,329		—
- Others		1,759,844		514,660		1,245,184		—
Reverse repurchase agreements		1,202,421,795		1,202,421,795		—		—
- BCRA repos		1,202,421,795		1,202,421,795		—		—
Financial assets at fair value through other comprehensive income		841,884,579		192,781,776		649,102,803		—
Debt securities		841,884,579		192,781,776		649,102,803		—
Total financial assets risk		4,750,217,311		3,762,466,817		952,543,312		35,207,182
Loan commitments and financial guarantees		647,025,344		585,414,818		61,403,032		207,494
Wholesale		241,347,117		217,735,177		23,589,353		22,587
- Business		96,632,508		83,741,932		12,885,097		5,479
- Corporate and Investment Banking		95,868,758		92,737,597		3,131,153		8
- Institutional and international		35,404,046		31,588,932		3,815,114		—
- MSMEs		13,441,805		9,666,716		3,757,989		17,100

Credit risk exposure	December 31, 2023		Stage 1		Stage 2		Stage 3
Retail		405,678,227		367,679,641		37,813,679		184,907
- Advances		13,284,965		12,787,853		494,004		3,108
- Credit cards		390,703,870		353,899,032		36,679,554		125,284
- Mortgages		1,598,766		913,866		628,385		56,515
- Others		90,626		78,890		11,736		—
Total loan commitments and financial guarantees		647,025,344		585,414,818		61,403,032		207,494
Total credit risk exposure		5,397,242,655		4,347,881,635		1,013,946,344		35,414,676
Credit risk exposure	December 31, 2022		Stage 1		Stage 2		Stage 3
Cash and cash equivalents		556,906,904		556,906,904		—		—
Financial assets at amortized cost		2,783,507,847		2,401,123,764		343,206,765		39,177,318
Debt securities		138,659,964		—		138,659,964		—
Wholesale		1,214,785,498		1,155,211,671		53,184,583		6,389,244
- Business		524,857,823		489,222,837		30,582,887		5,052,099
- Corporate and Investment Banking		352,986,681		334,163,826		18,822,815		40
- Institutional and international		188,578		8,729		178,046		1,803
- MSMEs		153,825,763		148,889,626		3,600,835		1,335,302
- Others		182,926,653		182,926,653		—		—
Retail		1,266,372,541		1,082,222,249		151,362,218		32,788,074
- Advances		3,354,887		1,837,008		987,944		529,935
- Credit cards		822,762,185		707,207,058		102,601,449		12,953,678
- Personal loans		220,915,565		194,713,429		13,703,503		12,498,633
- Pledge loans		84,573,077		79,746,567		2,299,056		2,527,454
- Mortgages		131,979,055		95,975,191		31,729,028		4,274,836
- Receivables from financial leases		2,688,360		2,643,692		41,130		3,538
- Others		99,412		99,304		108		—
Reverse repurchase agreements		163,689,844		163,689,844		—		—
- BCRA repos		163,689,844		163,689,844		—		—
Financial assets at fair value through other comprehensive income		1,922,232,186		1,478,379,540		443,852,646		—
Debt securities		1,922,232,186		1,478,379,540		443,852,646		—
Total financial assets risk		5,262,646,937		4,436,410,208		787,059,411		39,177,318

Credit risk exposure	December 31, 2022		Stage 1		Stage 2		Stage 3
Loan commitments and financial guarantees		664,472,529		606,937,314		57,326,255		208,960
Wholesale		124,191,534		109,972,663		14,184,466		34,405
- Business		46,597,993		38,071,627		8,513,906		12,460
- Corporate and Investment Banking		54,373,985		51,837,248		2,536,737		—
- Institutional and international		11,467,755		9,147,894		2,319,861		—
- MSMEs		11,751,801		10,915,894		813,962		21,945
Retail		540,280,995		496,964,651		43,141,789		174,555
- Advances		30,487,566		29,181,844		1,301,474		4,248
- Credit cards		507,464,932		466,048,328		41,291,086		125,518
- Mortgages		2,108,796		1,528,230		535,777		44,789
- Others		219,701		206,249		13,452		—
Total loan commitments and financial guarantees		664,472,529		606,937,314		57,326,255		208,960
Total credit risk exposure		5,927,119,466		5,043,347,522		844,385,666		39,386,278

Summary of Credit Quality Analysis of Loans and Advances

The Group’s credit quality analysis of financial assets under IFRS 9 with risk allocation as of December 31, 2023 and 2022 is provided below:

Credit quality analysis	December 31, 2023		December 31, 2022
Cash and cash equivalents
- Low risk (PD < 2.3%)		415,678,677		556,906,904
Total cash and cash equivalents		415,678,677		556,906,904
Wholesale
- Low risk (PD < 4%)		1,254,676,711		1,167,991,905
- Medium risk (PD ≥ 4% to < 24%)		166,178,544		112,799,574
- High risk (PD ≥ 24% to < 100% or Individually Stage 2)		36,261,729		51,761,904
- Non performing (PD = 100% or Individually Stage 3)		5,561,271		6,423,649
Total wholesale		1,462,678,255		1,338,977,032
Retail
- Low risk (PD < 2.3%)		1,075,897,337		1,379,787,080
- Medium risk (PD ≥ 2.3% to < 29%)		266,128,432		375,330,757
- High risk (PD ≥ 29% to < 100% or Individually Stage 2)		6,018,735		18,573,070
- Non performing (PD = 100% or Individually Stage 3)		29,853,405		32,962,629
Total retail		1,377,897,909		1,806,653,536
Reverse repurchase agreement
- BCRA repos (CCC+)		1,202,421,795		163,689,844
Total reverse repurchase agreement		1,202,421,795		163,689,844
Debt securities
- BCRA Liquidity Bills (CCC+)		174,330,520		1,466,786,104
- Government securities (CCC-)		752,062,939		582,512,610
- Corporate bonds (B)		12,085,356		11,593,436
- Corporate bonds (B-)		87,204		—
Total debt securities		938,566,019		2,060,892,150
Total credit risk exposure		5,397,242,655		5,927,119,466

Table of Net Credit Risk Exposure Explanatory

the following table shows the net credit risk exposure as of December 31, 2023 and 2022:

	December 31, 2023			December 31, 2022
Maximum exposure to credit risk		5,397,242,655			5,927,119,466
Collateral held or other credit enhancements		(2,164,506,418	)		(1,089,537,232	)
Total net credit risk exposure		3,232,736,237			4,837,582,234

Table of Evolution of Total VaR

VaR (in millions of pesos)

	Year ended December 31, 2023		Year ended December 31, 2022
Average		303.54		141.13
Minimum		24.49		48.71
Maximum		1,586.80		263.07
Closing		296.22		112.22

VaR per risk factors – (in millions of pesos)

VaR interest rate	Year ended December 31, 2023		Year ended December 31, 2022
Average		336.97		157.79
Minimum		29.58		49.32
Maximum		2,163.96		298.07
Closing		298.78		121.29

VaR foreign exchange rate	Year ended December 31, 2023		Year ended December 31, 2022
Average		7.24		1.05
Minimum		0.29		-0.47
Maximum		190.63		65.11
Closing		12.28		0.15

Table of Position in Foreign Currency

The position in foreign currency is shown below:

	Total as of December 31, 2023		As of December 31, 2023 (per currency)									Total as of December 31, 2022
			US Dollar		Euro			Real		Other
ASSETS
Cash and cash equivalents		1,076,719,793		1,041,165,789		32,597,593			494,680		2,461,731		773,572,820
Financial assets at fair value through profit or loss - Debt securities		225,199,948		225,199,948		—			—		—		10,961,484
Other financial assets		80,696,615		80,681,827		14,788			—		—		59,884,911
Loans and advances		196,957,836		196,589,749		368,087			—		—		119,996,346
Financial assets at fair value through other comprehensive income - Debt securities		74,070,243		74,070,243		—			—		—		17,022,612
Financial assets at fair value through other comprehensive income - Equity instruments		432,216		404,468		27,748			—		—		187,625
TOTAL ASSETS		1,654,076,651		1,618,112,024		33,008,216			494,680		2,461,731		981,625,798
LIABILITIES
Deposits		1,281,848,662		1,263,551,944		18,296,718			—		—		890,641,779
Other financial liabilities		79,930,161		73,958,024		5,400,352			—		571,785		68,186,188
Bank loans		3,119,096		2,800,253		318,843			—		—		3,455,761
Other liabilities		61,891,994		38,792,328		23,099,666			—		—		36,704,866
TOTAL LIABILITIES		1,426,789,913		1,379,102,549		47,115,579			—		571,785		998,988,594
NET ASSETS / (LIABILITIES)		227,286,738		239,009,475		(14,107,363	)		494,680		1,889,946		(17,362,796	)

Table of Sensitivity of the Economic Value SEV

SEV +100 bps

	December 31, 2023			December 31, 2022
Closing		1.09	%		0.62	%
Minimum		0.67	%		0.62	%
Maximum		1.09	%		1.42	%
Average		0.79	%		1.00	%

Table of Sensitivity of the Financial Margin SFM

SFM -100 bps

	December 31, 2023			December 31, 2022
Closing		0.30	%		0.47	%
Minimum		0.11	%		0.43	%
Maximum		0.35	%		1.01	%
Average		0.24	%		0.75	%

Table of the Progress of LtSCD Ratios

	December 31, 2023			December 31, 2022
LtSCD Closing		59.7	%		58.0	%
Max		80.3	%		62.8	%
Min		58.2	%		54.6	%
Avg		62.7	%		58.6	%

Table of the Progress of LCR Ratios

	December, 2023			December, 2022
LCR Closing		271	%		348	%
Max		433	%		348	%
Min		151	%		223	%
Avg		246	%		278	%

Table of Concentration of Deposits

	December 31, 2023					December 31, 2022
Number of customers	Debt balance		% over total portfolio			Debt balance		% over total portfolio
10 largest customers		550,858,950		15.14	%		304,614,921		7.45	%
50 following largest customers		392,517,039		10.79	%		439,358,749		10.74	%
100 following largest customers		186,621,640		5.13	%		166,445,085		4.07	%
Rest of customers		2,509,309,031		68.94	%		3,180,893,681		77.74	%
TOTAL		3,639,306,660		100.00	%		4,091,312,436		100.00	%

Table of Breakdown by Contractual Maturity of Financial Liabilities

	Assets (1)				Liabilities (1)
	December 31, 2023		December 31, 2022		December 31, 2023		December 31, 2022
Up to 1 month (2)		948,027,726		1,156,925,565		3,870,639,601		3,924,202,723
From more than 1 month to 3 month		372,964,126		378,153,999		288,142,094		333,552,210
From more than 3 month to 6 month		351,924,061		284,396,797		100,401,517		342,760,271
From more than 6 month to 12 month		311,728,457		236,503,073		33,725,396		13,392,406
From more than 12 month to 24 month		210,364,472		250,085,084		11,714,874		10,388,584
More than 24 months		349,270,361		433,127,189		18,691,790		15,713,621
TOTAL		2,544,279,203		2,739,191,707		4,323,315,272		4,640,009,815

(1)  These figures includes expected interest amounts. For floating rate instruments such interest amounts were calculated using interest rate prevailing at the end of each period.

(2)  The Bank has liquid assets such as cash and cash equivalents (Note 4), reverse repurchase agreements (Note 6.3) and BCRA liquidity bills (Note 10.1), among others, to settle its liabilities.

Additionally, the Bank has issued financial guarantees and loan commitments which may require outflows on demand.

Financial guarantees and loan commitments	December 31, 2023		December 31, 2022
Up to 1 month		1,889,829,494		2,607,674,595
From more than 1 month to 3 month		22,031,136		20,057,032
From more than 3 month to 6 month		13,917,028		14,712,799
From more than 6 month to 12 month		23,063,990		7,609,973
From more than 12 month to 24 month		22,742,910		1,576,585
More than 24 months		5,176,587		2,847,496
TOTAL		1,976,761,145		2,654,478,480

Table of Financial Assets and Liabilities Expected to be Collected or Paid Twelve Months After the End of the Reporting Period

	December 31, 2023		December 31, 2022
Financial assets
Loans and advances		559,634,833		683,212,273
Debt securities		134,719,555		5,242,340,911
Other financial assets		34,420,575		23,594,306
Total		728,774,963		5,949,147,490
Financial liabilities
Other financial liabilities		22,099,882		18,421,874
Bank loans		8,017,438		7,438,454
Deposits		289,344		241,877
Total		30,406,664		26,102,205