What happened

For the week, shares of Banco BBVA Argentina (BBAR 2.84%), a subsidiary of the Spanish bank Banco Bilbao Vizcaya Argentaria (BBVA -0.83%), traded more than 14% higher after market close on Thursday, according to data provided by S&P Global Market Intelligence. Banco BBVA Argentina reported earnings results for the second quarter of the year earlier this week.

So what

Banco BBVA Argentina reported earnings per American depositary share of $0.57 on total revenue of close to $472 million; both numbers beat analyst estimates. Earnings jumped 226% from the first quarter and 35% year over year.

"With COVID-19 pandemic situation under control, Argentina has been able to continue with its economic recovery, although within a context of persistent great challenges with a sustained high inflation and a capped foreign exchange rate," chief financial officer Ines Lanusse said on the company's earnings call.

She added, "Quarterly operating results are mainly explained by one, greater interest income, two, a better net fee income, three, lower operating expense."

In the quarter, Banco BBVA Argentina generated a return on equity of 28% and a return on assets of 4.6%, both of which are extremely high as far as the industry goes.

Now what

Banco BBVA Argentina is an interesting stock. The bank just put up some stellar returns, but it could improve its deposit base. It's also in a country with incredibly high inflation, which can be difficult for banks to operate in.

This makes the stock a bit riskier, but considering it only trades at 38% of its tangible book value (or net worth), the valuation is likely taking economic issues into account, making this a reasonable buy. But make sure to do your homework on the economy first.