By Ken Parks
BUENOS AIRES--Argentine bank BBVA Banco Frances SA (BFR,
FRAN.BA) said Friday that its second-quarter net profit rose 68% on
the year due to a big increase in lending revenue.
Net profit rose to 330.9 million pesos ($71.9 million), or
ARS0.62 per local share, from ARS197 million, or ARS0.37 per share,
in the second quarter last year, the bank said in a filing with the
Buenos Aires Stock Exchange.
Banco Frances's net financial margin--the difference between
what the bank pays on its deposits and earns on its loans and
securities holdings--soared 75% to ARS916.7 million due to an
increase in lending and higher margins on loans. Net fee income
rose 28% to ARS438 million.
The bank's operating result swelled 82% on the year to ARS616
million.
Banco Frances said its deposit base rose 15% on the year, to
ARS30 billion at the end of June.
Loans to the private sector, which represent the bulk of the
bank's overall credit portfolio, increased 29% on the year, to
ARS23.7 billion at the end of June, led by gains in commercial,
auto and consumer loans.
Asset quality as measured by non-performing loans as a
percentage of total loans was 0.7% in the quarter, up from 0.5% a
year ago.
Spain's Banco Bilbao Vizcaya Argentaria SA (BBVA, BBVA.MC) owns
a controlling interest in Banco Frances, which operates a network
of 270 branches and 656 ATMs.
Shares of Banco Frances were recently trading 2.1% lower at
ARS11.55 in Buenos Aires
-Write to Ken Parks at ken.parks@dowjones.com
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