0000933267-26-000043
SEC filingBanco Hipotecario's unaudited 2025 revenue fell 54% YoY to ARS 450.4B as lower gains and higher impairments drove net income down 75% to ARS 26.0B.
Banco Hipotecario’s consolidated revenue (as defined in the income statement line “Revenue”) fell 54% year-over-year to ARS 450.4 billion for the year ended December 31, 2025 (unaudited), compared to ARS 976.5 billion in 2024. The decline was driven by a steep drop in gains on financial assets at fair value through profit or loss (from ARS 837.2 billion to ARS 277.1 billion) and lower net interest income (ARS 28.3 billion vs ARS 64.9 billion). Net income attributable to shareholders plunged 73% to ARS 26.5 billion (basic EPS of ARS 17.9) from ARS 97.4 billion (EPS ARS 65.9). The deterioration was amplified by a more than doubling of impairment on financial assets to ARS 100.7 billion (from ARS 41.9 billion) and a still-large loss on net monetary position of ARS 72.7 billion (improved from ARS 266.7 billion due to lower inflation). Operating income (total net operating income per segment reporting) declined 49% to ARS 517.9 billion.
Total assets decreased slightly to ARS 3,724.3 billion from ARS 3,769.1 billion at December 31, 2024. Cash and cash equivalents rose 30% to ARS 475.2 billion. Loans and other financing arrangements (net) increased 42% to ARS 1,278.7 billion, driven by growth in consumer loans, credit cards, and corporate lending. Deposits remained stable at ARS 2,300.1 billion. Debt securities issued more than doubled to ARS 210.1 billion. The Bank’s regulatory capital stood at ARS 538.9 billion, with a surplus of ARS 360.3 billion above the minimum requirement of ARS 178.7 billion. The liquidity coverage ratio averaged 112% during 2025, down from 121% in 2024 but still above the minimum.
Cash flow from operations generated ARS 166.4 billion, compared to net income of ARS 26.0 billion, reflecting significant non-cash items (impairment, monetary loss, depreciation). Capital expenditures (purchase of property, equipment, and intangibles) totaled ARS 7.2 billion, resulting in free cash flow of ARS 159.2 billion. Financing activities used ARS 3.0 billion net, including ARS 57.4 billion in dividends paid and ARS 128.5 billion in debt repayments, partially offset by ARS 196.5 billion in new debt issuance. The Bank maintained ample liquidity with cash and cash equivalents covering 20% of total assets.
The Bank operates in a hyperinflationary environment and applies IAS 29. Management noted a transition toward disinflation, supported by fiscal and monetary tightening. The Argentine government launched voluntary debt exchanges affecting the Bank’s public sector holdings. The Bank’s risk management framework emphasizes credit risk, with retail and wholesale banking credit policies updated annually. The Central Bank’s Communications allowed dividend distributions up to 60% of eligible profits in 2025 and 2026, and the Bank paid ARS 57.4 billion in dividends in 2025 and approved additional payments in 2026. No forward guidance was provided.
Segment results show Retail Banking as the largest profit contributor (ARS 216.8 billion segment income), followed by Insurance (ARS 50.1 billion) and Wholesale Banking (ARS 40.4 billion). The Finance segment posted a loss of ARS 43.3 billion due to negative net interest and trading losses. Impairment losses were concentrated in the consumer portfolio (ARS 78.0 billion) and corporate portfolio (ARS 3.6 billion). The Bank’s investment in the EDP Trust (joint venture) was valued at ARS 91.7 billion, with a reversal of impairment of ARS 10.2 billion recognized in other operating income. Off-balance sheet commitments include ARS 541.8 billion in unused credit card lines. Related-party transactions with parent IRSA included loans of ARS 1.8 billion and interest income of ARS 0.5 billion.