BUENOS AIRES--Argentine bank BBVA Banco Frances SA (BFR,
FRAN.BA) said Monday its third-quarter net profit surged 263% on
the year due to a jump in the value of its bond portfolio.
Net profit rose to 417.3 million pesos ($87.4 million), or
ARS2.33 per local share, from ARS114.7 million, or ARS0.64 per
share, in the second quarter last year, the bank said in a filing
with the Buenos Aires Stock Exchange.
If the one-time jump in the performance of the company's bond
portfolio is removed from the equation, net income totals ARS365
million, up about 25% on the year.
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 about 117% to ARS982.7 million due to
an increase in lending and higher margins on loans. Net fee income
rose 22% to ARS474 million.
The bank's operating result swelled 185% on the year to ARS607.8
million. The operating result dropped to ARS552.7 million when not
calculating the one-time surge in bonds.
Banco Frances said its deposit base rose about 9% on the year,
to ARS31 billion at the end of September.
Loans to the private sector, which represent the bulk of the
bank's overall credit portfolio, increased 23.4% on the year, to
ARS25.54 billion at the end of September, led by gains in
commercial, auto and consumer loans.
Asset quality as measured by "irregular" or non-performing loans
as a percentage of total loans was 0.71% in the quarter, up from
0.44% a year ago.
The bank said it has acted in accordance with new central bank
rules and offered three-year loans at a fixed rate of 15%, "which
have been very well received."
Spain's Banco Bilbao Vizcaya Argentaria SA (BBVA, BBVA.MC) owns
a controlling interest in Banco Frances.
Shares of Banco Frances closed 0.79% lower at ARS8.70 in Buenos
Aires on Monday.
-Write to Taos Turner at taos.turner@dowjones.com
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