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FORM 6-K

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

For the month of November 2016

Commission File Number: 001-12568

 

 

BBVA French Bank S.A.

(Translation of registrant’s name into English)

 

 

Reconquista 199, 1006

Buenos Aires, Argentina

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F   x             Form 40-F   ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes   ¨             No    x

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes   ¨             No    x

Indicate by check mark whether by furnishing the information contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

Yes   ¨             No    x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A

 

 

 


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BBVA Banco Francés S.A.

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Item

   

1.

 

BBVA Francés reports consolidated third quarter earnings for fiscal year 2016.


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LOGO

Buenos Aires, November 10, 2016 – BBVA Banco Frances S.A. (BBVA Francés) (NYSE: BFR.N; BCBA: FRAN.BA;

LATIBEX: BFR.LA) reports consolidated third quarter earnings for fiscal year 2016.

 

 

Highlights

 

 

    BBVA Francés reached a cumulative net income of AR$ 3.1 billion as of September 30, 2016, registering a return on equity of 27.6% and a return on assets of 3.4%. Net income for the third quarter was a gain of AR$ 933.9 million, showing a slight decrease, both, compared to the same quarter of 2015 and to the previous quarter.

 

    Net financial income increased by 21.9% compared to the second quarter of 2015, mainly due to a greater intermediation with the private sector, whereas it registered a decrease of 15.2% during the quarter as a consequence of lower gains resulting from the public bonds portfolio.

 

    In terms of activity, the private sector loan portfolio, net of allowance for loan losses, totaled AR$ 71.1 billion, increasing by 42.4% compared with the third quarter of 2015 and by 8% during the quarter.

 

    BBVA Francés continues to maintain outstanding risk indicators in the Argentine financial system. The non-performing loan ratio (non-performing loans/total loans) reached 0.83% as of September 30, 2016, while the coverage ratio (provisions/non-performing loans) reached 251.62%.

 

    Total deposits reached AR$ 91.9 billion as of September 30, 2016, increasing by 45.4% in the last twelve months. Total deposits remained at a similar level compared to the previous quarter. It is important to mention that the second quarter of 2016 included temporary deposits from the public sector. Without considering the impact of such balances, during the quarter deposits would have registered an increase of 3.5%.

 

    BBVA Francés maintains adequate levels of liquidity and solvency. As of September 30, 2016 liquid assets (cash and due from banks plus Argentine Central Bank (BCRA) bills and notes) represented 43.6% of the Bank’s total deposits. The capital ratio reached 14.8% of weighted risk assets; with an excess of capital of AR$ 7.3 billon, which is 77.5% higher than the minimum regulatory requirements. Considering the additional buffer (3.5%), the excess of capital would amount to AR$ 3.3 billion.

 

    During July, 2016 the Bank paid cash dividends totaling AR$ 900 million, equivalent to AR$ 1.673587 per share, corresponding to the 2015 period.

 

    On July 22, 2016 the BCRA through Communication “A” 6022 determined the creation of special accounts in order to implement the Tax Amnesty Regulation (Law 27.260).

 

    On August 8, 2016, the Bank issued series 19 and 20 of its bonds (Obligaciones Negociables), which were fully subscribed and paid for a total amount of AR$ 207.5 million due in 18 months, with a variable interest rate equivalent to the Badlar rate plus 2.40%, and for AR$ 292.5 million due in 36 months, with a variable interest rate of 3.23%, respectively.


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    On September 20, 2016, the Board of Directors approved the issuance of series 21 and 22 of its bonds (Obligaciones Negociables) under the program, for a total amount that can’t not exceed AR$ 750 million, due to in 18 and 36 months, respectively, with a variable interest rate equivalent to the Badlar rate plus a spread.

 

    On September 26, 2016 the Bank completed the purchase of 51% of Volkswagen Credit Compañia Financiera S.A‘ capital stock, representing 23,970,000 common, registered, non-endorsable shares, entitled to one vote each, of AR$ 1 per value per share, for a total amount of AR$ 53 million. Furthermore, on October 27, 2016 BBVA Francés disbursed AR$ 229.5 million as a capital increase in accordance to the resolution of the Volkswagen Credit Compañia Financiera Ordinary and Special Shareholders meeting.

 

 

Other Events

 

 

    On October 21, 2016, the BCRA issued Communication “A” 6084 related to “Line of financing for production and financial inclusion”, making some adjustments to the conditions for the quota corresponding to the second half of 2016, and determined the guidelines for the quota for the first half of 2017. For 20717, it is expected that financial institutions will have to maintain from January 1, 2017 until June 30, 2017, minimum balances equivalent to 18% (15.5% during the second half of 2016) of total private deposits in AR$, with a fixed annual interest rate which will decline from 22% to 17%.

 

 

Economic Environment

 

During the second quarter of 2016, the real GDP published by the Statistics National Agency (Instituto Nacional de Estadistica y Censos (INDEC)) fell 3.4% annually, and decreased 2.1% with respect to the first quarter of 2016 in seasonally adjusted terms.

The Monthly Estimator of Economic Activity (known by its acronym in Spanish as EMAE) registered a decrease of 2.6% in August 2016 with respect to the same month of 2015, and an increase of 0.2% compared to July 2016. As a result, the EMAE decreased 1.1% in the July-August period with respect to the second quarter of 2016.

In the industrial sector, the Monthly Industrial Estimator decreased 7.3% in September with respect to September 2015, falling 4.6% during the year. Following the same trend, the Synthetic Index of Construction Activity plunged 13.1% in September compared to the same month of the previous year, accumulating a drop of 12.8% from the end of 2015.

In June 2016, the INDEC resumed the publication of the inflation index (CPI). The geographical coverage of the index includes the Autonomous City of Buenos Aires and part of the metropolitan area. The INDEC published monthly inflation in its reports but it not include the historical series. During the third quarter, the CPI index grew 3.3% compared to the previous quarter.

To compensate for the lack of CPI information until new figures are released by INDEC, we used as a reference the price index calculated by the Department of Statistics and Census, an agency under the Ministry of Finance of The Autonomous City of Buenos Aires (IPCABA). Such index

increased by 2.7% during the third quarter of 2016 and by 43.1% year-over-year.

The national public sector fiscal balance recorded a primary deficit of AR$ 101.9 billion during the third quarter of 2016, increasing 96.1% compared with the deficit of AR$ 51.9 billion recorded during the same period of the previous year. These numbers do not include income from BCRA and the Argentine Institute of Social Security (ANSES) revenues.

Primary public sector spending increased by 35.1% and public sector revenues showed an increase of 25.2% during the period.

Public debt interest payments increased by 85.1% during the period and considering income from BCRA and ANSES revenues, the total deficit reached AR$ 50.7 billion, representing a 56.5% increase compared with the same period of 2015.

In the third quarter of 2016, tax revenues increased by 26% year-over-year. Income tax grew at a rate of 9.8% and Value Added Tax increased 33.6% during the same period. Export duties fell by 22% during the quarter due to a reduction of such tax rates beginning this year.

In the external sector, the accumulated trade surplus reached USD 975 million during the period July-August 2016, as a result of total exports of USD 10.7 billion and total imports of USD 9.7 billion. The same period in 2015 had registered a deficit of USD 405 million.

In third quarter of 2016 the BCRA’s stock of international reserves decreased by USD 606 million, reaching a total balance of USD 29.9 billion. During the quarter, the BCRA bought USD 725 million in the foreign exchange market.

 

 

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As of September 30, 2016, the BCRA maintains the bilateral currency swap agreement entered into with the People’s Bank of China. Further, since February 2016, the BCRA has added USD 5.0 billion from a repo transaction with private banks, of which only USD 1.0 billion were renewed to date.

The Badlar interest rate for private banks decreased by 555 b.p. in the third quarter of 2016, averaging 24.6% compared to the 30.2% average rate in the second quarter of 2016.

The stock of private sector loans in pesos increased by 3.2% during the quarter and 19.5% compared to the third quarter of 2015, whereas private sector loans in dollars grew by 28.7% and 110.6% during the same periods, respectively.

Total deposits in the financial system increased by 2.7% in the third quarter of 2016 and 32.8% in annual terms. During the same periods, private sector deposits denominated in pesos increased by 1.6% and 20.9% and those denominated in dollars increased by 10.5% and 62.8%, respectively.

 

 

The Bank

 

BBVA Francés continues to focus on improving customers’ experience in each contact with the Bank . In this sense, the Bank continued the implementation of the NPS (Net Promoter Score) 2.0, finishing the expansion to its whole distribution network. The purpose is to deepen the differentiation in the market, through the recommendation of clients with respect to their experience in the Bank’s branches.

Moreover, the branches now have the “voice of the client”, available online, which allows a quick response on those aspects that require improvement as well as actions on certain cases that are considered priority and/or strategic for the business.

Furthermore, understanding the importance of training and development of its team, the Bank’s Systems Management launched the “SINNOVA” sessions, a cycle of conferences given by the main market referents in software and digital development for Systems and Operations specialists. The sessions were focused on synergy and innovation, with the objective of “understanding the future”.

In commercial terms, the Bank continued to offer a high range of benefits and experiences to its clients, by sponsoring important shows and events.

Maintaining its Alliance with LATAM, the Bank continued promoting the benefits of exchanging LATAM Pass Kilometers for domestic and international flights, as well as for a broad catalogue of products.

In line with its strategy of being recognized as the soccer Bank, BBVA Francés continued as the sponsor of important soccer teams and continued offering experiences to its clients, especially through the #futbolnonstop campaign and the “Azul y Oro” experience, which was aimed clients’ children, aged from 10 to 18 years old, offering them the opportunity to live an experience as if they were soccer players .

In the Agro segment, with the aim of consolidating its presence in this sector, BBVA Francés participated in Maizar 2016, the most important event for corn and sorghum producers and distributors. This event was celebrated to promote growth and generate a greater volume of supply to the industries that have capacity to provide added value. The bank was present with the products, services and benefits that offer to its clients through the Agro segment: the Agro LATAM Pass program, insurance, car loans and zero-interest-rate loans in specific operations with the BBVA Francés Agro credit card.

Regarding the development of Social Responsibility actions, the Bank continued working on the first edition of the “My First Enterprise” program and awarded prizes to the four winning teams, with the aim of providing financial knowledge to students who are in the last two levels of secondary school, through a project where they design their own business.

Moreover, in the third quarter of the year, 141 students were benefited through the “BBVA Francés Financial Education” program, in the cities of Ciudad Autónoma de Buenos Aires, Santiago del Estero and Tucumán.

For the sixth consecutive year, BBVA Francés is the sponsor of the “Del Colón al País”, a lyrical music program that is part of the “Artists for the Education” program, whose main purpose is to extend the BBVA Francés Financial Education Program of Integration Scholarships.

On September 30 th 2016, it was celebrated the Superior Art Institute of the Colón Theatre celebrated a lyrical music concert at the auditorium of Bariloche Musical Camping, with an important audience, including clients and the main entrepreneurs of the area.

Lastly, the call period for the 27 th edition of the BBVA Francés Agricultural Entrepreneur Award 2016. The award ceremony will be held on December 13 th .

 

 

Presentation of Financial Information

 

 

    Foreign currency balances as of September 30, 2016 have been translated into pesos at the reference exchange rate published by the BCRA at such date (AR$ 15.2633/ US$).
 

 

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    This press release contains unaudited financial information that consolidates all of the banking activities of BBVA Francés and its subsidiaries on a line-by-line basis. The Bank’s interest in the Consolidar Group – BBVA Consolidar Seguros S. A. and Consolidar AFJP (in liquidation)-, is shown as “Investments in other companies” (recorded under the equity method) and the corresponding results are included in “Income from Equity Investments”.

 

    Information contained in this press release may differ from the information published by the BBVA Group for Argentina, which is prepared according to Spanish accounting standards for all BBVA Group affiliates.
 

 

Financial Information

 

 

                       D % quarter ended 09-30-16  
Condensed Income Statement (1)    Quarter ended     vs quarter ended  

(in thousands of pesos except income per share, ADS and percentages)

   09-30-16     06-30-16     09-30-15     06-30-16     09-30-15  

Net Financial Income

     2,836,361        3,342,802        2,326,603        -15.2     21.9

Provision for loan losses

     (226,335     (336,129     (115,201     -32.7     96.5

Net income from services

     1,300,901        1,014,393        953,272        28.2     36.5

Administrative expenses

     (2,373,439     (2,211,679     (1,645,376     7.3     44.2

Operating income

     1,537,488        1,809,387        1,519,298        -15.0     1.2

Income (Loss) from equity investments

     20,132        102,183        69,341        -80.3     -71.0

Income (Loss) from Minority interest

     (24,753     (34,113     (30,439     -27.4     -18.7

Other Income/Expenses

     (4,163     (27,480     (10,472     -84.9     -60.2

Income tax and Minimum Presumed Tax

     (595,779     (886,719     (549,658     -32.8     8.4

Net income for the period

     932,925        963,258        998,070        -3.1     -6.5

Net income per share (2)

     1.74        1.79        1.86        -3.1     -6.5

Net income per ADS (3)

     5.21        5.38        5.58        -3.1     -6.5

 

(1) Exchange rate: AR$ 15.2633 Ps = 1 USD
(2) Assumes 536,877,850 ordinary shares
(3) Each ADS represents three ordinary shares

 

BBVA Francés reached a cumulative net income of AR$ 3.1 billion as of September 30, 2016. During the third quarter, the Bank registered a gain of AR$ 933.9 million, showing a slight decrease compared with the same quarter of 2015 and with the previous quarter.

Net financial income grew by 21.9% compared with the third quarter of 2015, mainly due to higher gains derived from the intermediation with the private sector and foreign exchange difference, which was partially offset by lower incomes originated by the public bond portfolio and higher financial expenses. Compared with the previous quarter, it registered a decline of 15.2% mainly due to the impact of the minimum cash requirement and lower income originated by the public bond portfolio, mainly by the Bogar 20 bond.

Provisions for loan losses increased compared to the third quarter of 2015 due to the higher volume of lending and the deterioration of the loan portfolio, whereas it decreased compared to the previous quarter, mainly due to an improvement in collection efforts and a lower deterioration in the loan portfolio.

Net income from services registered increases of 36.5% and 28.2% compared to the same quarter of 2015 and to the previous quarter, respectively.

Administrative expenses also increased 44.2% and 7.3%, respectively, in the periods under analysis.

Finally, it is important to mention that the previous quarter reflected a higher rate of income tax, mainly due to the fiscal adjustment of provisions and the fiscal revaluation of the Bogar 20 bond. During the third quarter of 2016 a new fiscal adjustment on the Bogar 20 was registered.

 

 

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Main figures    Quarter ended     D % quarter ended 09-30-16 vs
quarter ended
 

(in thousands of pesos except percentages)

   09-30-16     06-30-16     09-30-15     06-30-16     09-30-15  

Return on Average Assets (1)

     2.8     3.1     4.4     -8.9     -36.0

Return on Average Shareholders’ Equity (1)

     24.2     25.8     33.2     -6.3     -27.0

Net interest assets

     13.4     16.5     14.6     -18.7     -7.9

Net fee Income as a % of Operating Income

     31.4     23.3     29.1     35.1     8.2

Net fee Income as a % of Administrative Expenses

     54.8     45.9     57.9     19.5     -5.4

Adm. Expenses as a % of Recurrent Income (2)

     57.4     50.8     50.2     13.0     14.4

 

(1) Annualized.
(2) Adm.Expenses / (Net financial income + Net income from services)
(3) Net interest Margin: Financial Income-Financial Expenses / Average Interest-Earning Assets

 

     Quarter ended  
Interest-Earning Assets & Interest-Bearing Liabilities    09-30-16     06-30-16     09-30-15  

(Averege in thouhand of AR$, except %)

   Capital      Rate     Capital      Rate     Capital      Rate  

Interest-Earning Assets

     84,570,686         24.2     80,845,501         28.6     63,832,362         24.3

Public Bonds

     15,277,974         24.8     17,196,567         38.5     14,213,154         26.2

Loans

     69,292,712         24.1     63,648,934         26.0     49,619,208         23.8

Public Sector

     79,681         53.6     71,240         55.4     56,770         28.5

Private Sector

     66,295,711         24.5     60,846,516         26.5     47,699,329         24.0

Other interest-earning assets

     2,917,320         23.1     2,731,178         24.8     1,863,109         27.9

Interest-Bearing Liabilities

     66,302,940         13.0     60,442,821         15.6     43,299,157         13.2

Saving Accounts

     26,789,613         0.1     22,581,015         0.2     15,599,263         0.2

Time Deposits

     36,635,896         22.0     35,212,103         25.0     25,061,073         20.9

Debt Securities

     1,663,467         29.2     1,430,120         34.3     1,567,050         24.6

Other interest-bearing liabilities

     1,213,964         14.1     1,219,583         20.0     1,071,771         15.7

 

 

Net Financial Income

             
Net financial income    Quarter ended      D % quarter ended 09-30-16 vs
quarter ended
 

(in thousands of pesos except percentages)

   09-30-16      06-30-16      09-30-15      06-30-16     09-30-15  

Financial Income

     5,472,394         6,159,658         4,160,006         -11.2     31.5

Income from financial intermediation

     4,130,077         4,086,635         2,983,379         1.1     38.4

CER adjustment

     168,496         148,734         50,113         13.3     236.2

Income from securities and short term investments

     805,340         1,516,966         895,994         -46.9     -10.1

Foreign exchange difference

     240,758         333,214         122,243         -27.7     97.0

Others

     127,723         74,109         108,277         72.3     18.0

Financial Expenses

     -2,636,033         -2,816,856         -1,833,403         -6.4     43.8

Net Financial Income

     2,836,361         3,342,802         2,326,603         -15.2     21.9

 

Net financial income increased by 21.9% compared with the third quarter of 2015, whereas it decreased 15.2% compared with the previous quarter.

Financial income arising from the intermediation with the private sector increased by 38.4% compared with the third quarter of 2015, mainly due to both a higher volume of lending as well as higher interest rates. In addition, income from the CER adjustment and the foreign exchange difference also registered growth, these were partially offset by 10.1% decrease in the gains derived from the public bond portfolio.

The quarter variation reflected, in the private sector, a decline in assets’ interest rates, moreover it also registered the impact of the increase in the cash minimum requirement and lower gains coming from the public bond portfolio, mainly the Bogar 20 bond.

Financial expenses grew 43.8% compared with the same quarter of 2015 and decreased 6.4% compared to the previous quarter, mainly due to a decline in the interest rates.

 

 

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Income from Public and Private Securities

 

    

 

 

Income from securities and short-term investments    Quarter ended     

D % quarter ended 09-30-16

vs quarter ended

 

(in thousands of pesos except percentages)

   09-30-16     06-30-16      09-30-15      06-30-16     09-30-15  

Income from securities and short-term investments

     794,614        1,507,146         891,912         -47.3     -10.9

Income Interest Margin

     871,502        1,073,706         749,156         -18.8     16.3

Holdings booked at fair value

     91,519        173,834         82,755         -47.4     10.6

Bills and Notes from the Central Bank

     779,982        899,872         666,401         -13.3     17.0

Income Financial Operations

     -105,021        406,697         134,035         -125.8     -178.4

Holdings booked at fair value

     (104,859     307,933         125,961         -134.1     -183.2

Bills and Notes from the Central Bank

     (162     98,764         8,074         -100.2     -102.0

Other fixed income securities

     28,133        26,743         8,721         5.2     222.6

CER adjustment

     168,496        148,734         50,112         13.3     236.2

 

The public bond portfolio is valued at mark-to-market its total public bonds portfolio; consequently such income includes the unrealized losses/gains from variations in the valuations of the portfolio, or at amortized cost, accordingly.

The Central Bank bills and notes portfolio is also valued at mark-to-market or at amortized cost.

On the other hand, other fixed income securities are valued at cost plus the internal rate of returns (IRR).

It is important to mention that the results are classified as (i) those recorded as interest margin, which correspond to the accrual of each bond at the internal rate of returns and (ii) those recorded in financial operations, this line item includes the variation in

market prices as well as the result originated by sales in the period.

The resulting income interest margin registered an increase of 16.3% compared to the same quarter of 2015, whereas it declined 18.8% compared to the previous quarter, such variations are mainly related to the portfolio’ volume.

The bills and notes issued by the Central Bank showed lower income due to both, the impact of a lower rate as well as a lower portfolio volume as a result of an increase in the loan portfolio and the impact of a higher cash minimum requirement.

The result of financial operations registered negative variations compared with the same quarter of 2015 and with the previous quarter, mainly due to the Bogar 20 bond.

 

 

 

Net Income from Services

 

    

 

 

Net income from services    Quarter ended     D % quarter ended 09-30-16 vs
quarter ended
 

(in thousands of pesos except percentages)

   09-30-16     06-30-16     09-30-15     06-30-16     09-30-15  

Net income from services

     1,300,901        1,014,393        953,272        28.2     36.5

Service charge income

     2,234,079        1,838,242        1,400,268        21.5     59.5

Service charges on deposits accounts

     392,719        316,011        313,209        24.3     25.4

Credit cards and operations

     1,089,346        863,112        522,140        26.2     108.6

Insurance

     162,817        152,951        143,734        6.5     13.3

Capital markets and securities activities

     25,547        15,091        6,900        69.3     270.2

Fees related to foreign trade

     64,812        59,085        42,867        9.7     51.2

Safety deposit box

     65,730        52,497        51,066        25.2     28.7

Services of collection

     35,549        32,785        28,633        8.4     24.2

Generated by subsidiaries

     83,774        77,478        77,766        8.1     7.7

Other fees

     313,785        269,231        213,953        16.5     46.7

Services Charge expense

     (933,178     (823,849     (446,997     13.3     108.8

 

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Net income from services increased by 36.5% and 28.2% compared with the same quarter of 2015 and with the previous quarter, respectively.

In the year-to-year comparison, growth was based on higher fees for credit cards, fees associated with deposits accounts and foreign trade operations as well as fees generated by capital markets advisory work.

Such growth was partially offset by an increase in service charge expenses related to promotions associated with the LATAM Pass kilometers program.

During the third quarter, the impact of the price was reflected, mainly in fees related to deposit accounts, credit cards and safety boxes.

As of September 1, 2016, financial entities may not charge fees for insurance related to the retail lending activity.

 

 

 

Administrative Expenses

 

    

 

 

Administrative expenses    Quarter ended     D % quarter ended 09-30-16 vs
quarter ended
 

(in thousands of pesos except percentages)

   09-30-16     06-30-16     09-30-15     06-30-16     09-30-15  

Administrative expenses

     (2,373,439     (2,211,679     (1,645,376     7.3     44.2

Personnel expenses

     (1,335,778     (1,304,321     (910,558     2.4     46.7

Electricity and Communications

     (59,459     (45,586     (31,828     30.4     86.8

Advertising and Promotion

     (102,929     (100,810     (63,749     2.1     61.5

Fees and external administrative services

     (45,089     (33,306     (28,244     35.4     59.6

Taxes

     (237,145     (211,650     (172,458     12.0     37.5

Organization and development expenses

     (19,448     (19,486     (17,214     -0.2     13.0

Amortizations

     (62,980     (55,658     (47,969     13.2     31.3

Rents

     (93,700     (95,365     (70,312     -1.7     33.3

Expenses of maintainance, conservation and repairs

     (85,485     (60,417     (68,707     41.5     24.4

Security Service

     (68,533     (56,649     (53,276     21.0     28.6

Carriage of valuable

     (118,129     (85,672     (61,839     37.9     91.0

Other

     (144,764     (142,759     (119,222     1.4     21.4

 

Administrative expenses grew 44.2% and 7.3% compared to the same quarter of 2015 and the previous quarter, respectively.

Personnel expenses increased in both, the annual and quarterly comparison, mainly reflecting salary increases and a higher number of employees.

General expenses, increased by 41.2% annually and by 14.4% during the quarter. The annual increase was mainly due to higher expenditures in: carriage of valuables, advertising and promotion, electricity and communications and taxes. It is important to mention that general expenses grew due to a higher volume of activity, the general increase in prices, the depreciation of the currency and the increase in tariffs.

During the quarter, higher expenses in carriage of valuables, electricity and communications, taxes and maintenance, conservation and repair expenses, explained the growth.

As of September 30, 2016, the Bank had 6,114 employees, representing an increase of 7.9% compared with the third quarter of 2015. In addition, the branch office network totaled 301 offices, including 251 consumer branch offices and 34 branch offices specializing in SMEs and institutions. Corporate banking is divided by industries: consumption, heavy industries and oil and gas, providing personalized attention to large corporations. Complementing its distribution network, the Bank had 15 in-company branches, 1 point of sale outlet and 1 express point, 691 ATM’s and 776 self-service terminals (ATS).

 

 

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Table of Contents

 

Other Income / Expenses

 

Other income/expenses totaled a loss of AR$ 4.2 million during the third quarter of 2016. The improvement during the quarter is due to higher recovery loans.

 

Income from Equity Investments

 

Income from equity investments sets forth net income from related companies that are not consolidated. During the third quarter of 2016, a gain of AR$ 20.1 million was recorded, mainly due to the stake held by BBVA Francés in BBVA Insurance. It is important to mention that the previous quarter recorded gains originated in the valuation of the stake held in Interbanking S.A. and Prisma S.A (strategic alliance between VISA Argentina and Banelco S.A).

 

 

 

Balance and activity

 

 

 

Total Public Sector Exposure

 

    

 

 

Public and Private Sector Exposure    Quarter ended     D % quarter ended 09-30-16 vs
quarter ended
 

(in thousands of pesos except percentages)

   09-30-16     06-30-16     09-30-15     06-30-16     09-30-15  

Public Sector - National Government

     3,385,701        4,363,302        2,647,343        -22.4     27.9

Public Sector Loans

     93,336        83,654        63,597        11.6     46.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total bond portfolio

     3,292,580        4,279,865        2,583,946        -23.1     27.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Holdings book at fair value

     3,291,490        4,241,363        2,583,782        -22.4     27.4

Holdings book at amortized cost

     1,090        38,502        164        -97.2     n/a   

Allowances

     (215     (217     (200     -0.9     7.5

Bills and Notes from Central Bank

     9,437,491        11,557,767        11,076,052        -18.3     -14.8

Total exposure to the Public

     12,823,192        15,921,069        13,723,395        -19.5     -6.6

Private Debt

     391,349        268,938        176,127        45.5     122.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total exposure to the Public and Private Sector

     13,214,541        16,190,007        13,899,522        -18.4     -4.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio Received for Repo Transaccions

     304,706        5,376,422        1,903,863        -94.3     n/a   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Public Bonds

     —          —          —          n/a        n/a   

BCRA Instruments

     304,706        5,376,422        1,903,863        -94.3     n/a   

 

Exposure to the public sector’s National Government increased by 27.9% compared with the third quarter of 2015 whereas it decreased 22.4% compared with the previous quarter, mainly due to the sale of national government bonds.

The Bank’s portfolio of BCRA bills and notes showed a decrease, both during the period under analysis and in the last twelve months, as a consequence of the liquidity policy implemented by the Bank, reflecting a higher demand of credits and the higher minimum cash requirements.

As of September 30, 2016, the public sector’s National Government assets represented 2.6% of the Bank’s total assets. Total exposure to the BCRA’s bills and notes net of holdings linked to reverse repo transactions, represented 7.2% of the Bank’s total assets.

Total exposure to the public sector includes public debt of the National Government through public securities (bonds and bills from the treasury) and guaranteed loans, as well as the BCRA’s bills and notes.

 

 

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Table of Contents

 

Loan Portfolio

 

 

    

 

 

Net loans    Quarter ended     D % quarter ended 09-30-16 vs quarter
ended
 

(in thousands of pesos except percentages)

   09-30-16     06-30-16     09-30-15     06-30-16     09-30-15  

Private & Financial sector loans in $

     60,724,382        57,421,059        47,030,383        5.8     29.1

Advances

     10,783,767        10,090,439        7,775,396        6.9     38.7

Discounted and purchased notes

     9,267,218        7,924,229        6,971,427        16.9     32.9

Consumer Mortgages

     1,866,569        1,992,813        1,806,419        -6.3     3.3

Car secured loans

     5,087,540        4,563,281        4,127,086        11.5     23.3

Personal loans

     8,172,953        7,582,330        6,805,408        7.8     20.1

Credit cards

     18,675,353        18,307,405        13,977,683        2.0     33.6

Loans to financial sector

     1,697,297        1,749,174        1,246,637        -3.0     36.2

Other loans

     5,605,681        5,450,379        4,560,819        2.8     22.9

Unaccrued interest

     (299,131     (207,673     (161,426     44.0     85.3

Adjustment and accrued interest & exchange differences receivable

     1,270,412        1,293,985        908,499        -1.8     39.8

Less: Allowance for loan losses

     (1,403,277     (1,325,303     (987,565     5.9     42.1

Private & Financial sector loans in FX

     10,378,884        8,425,260        2,887,695        23.2     259.4

Advances

     6,137        7,981        37,722        -23.1     -83.7

Discounted and purchased notes

     1,206,288        672,635        736,573        79.3     63.8

Credit cards

     1,023,339        1,113,350        694,723        -8.1     47.3

Loans to financial sector

     151,183        73        37        n/a        n/a   

Other loans

     8,098,739        6,719,772        1,449,965        20.5     458.5

Unaccrued interest

     —          (42     —          -100.0     n/a   

Less: Allowance for loan losses

     (106,802     (88,509     (31,325     20.7     240.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Private Loans

     71,103,266        65,846,319        49,918,078        8.0     42.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loans to public sector in $

     93,336        83,654        63,597        11.6     46.8

Loans to public sector

     8,895        8,772        8,822        1.4     0.8

Adjustment and accrued interest & exchange differences receivable

     84,441        74,882        54,775        12.8     54.2

Loans to non-financial public sector in foreign currency

     —          17        —          -100.0     n/a   

Loans to public sector

     —          17        —          -100.0     n/a   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total loans to public sector

     10,378,884        8,425,277        2,887,695        23.2     259.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Total Loans

     71,196,602        74,271,596        52,805,773        -4.1     34.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The private sector loan portfolio, net of allowance for loan losses, totaled AR$ 71.1 billion as of September 30, 2016, representing an increase of 42.4% and 8% compared to the third quarter of 2015 and to the previous quarter, respectively.

During the year, loans denominated in pesos increased 29.1% whereas those denominated in foreign currency grew at a faster pace, representing 14.6% of total loans at the end of the third quarter.

In the last twelve months, consumer loans increased by 27%. Such increase was led by credit cards, which registered an increase of 34.3% during the period,

while car loans and personal loans also registered increases of approximately 20%.

Commercial loans increased by 62.4% in the same period, mainly due to a higher portfolio of foreign trade operations and discounted documents.

During the quarter, consumer loans grew 3.8%, whereas the commercial loan portfolio increased by 13.3% mainly due to higher loans to small-and-medium- sized companies.

 

 

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Table of Contents

 

Asset Quality

 

 

    

 

 

Asset quality ratios    Quarter ended     D % quarter ended 09-30-16 vs quarter
ended
 

(in thousands of pesos except percentages)

   09-30-16     06-30-16     09-30-15     06-30-16     09-30-15  

Non-performing loans (1)

     600,139        570,472        377,806        5.2     58.8

Allowance for loan losses

     (1,510,079     (1,413,812     (1,018,890     6.8     48.2

Non-performing loans/net total loans

     0.83     0.85     0.74     -2.6     11.4

Non-performing private loans/net private loans

     0.83     0.85     0.74     -2.6     11.4

Allowance for loan losses/non-performing loans

     251.62     247.83     269.69     1.5     -6.7

Allowance for loan losses/net total loans

     2.08     2.10     2.00     -1.1     4.0

 

(1) Non-performing loans include: all loans to borrowers classified as “Problem”, “Deficient Servicing”, “High Insolvency Risk”, “Difficult Recovery”, “Irrecoverable” and “Irrecoverable for Technical Decision” according to the new Central Bank debtor classification system.

 

As of September 30, 2016, the asset quality ratio (non-performing loans/total loans) was 0.83%, while the coverage ratio (provisions/non-performing loans) reached 251.62%.

The NPL ratio increased compared with the same quarter of 2015 mainly due to higher non-performing loans as well as an

increase in the performing portfolio, whereas during the quarter it declined mainly due to lower non-performing loans.

The following table shows the evolution of provisions for loan losses, including charges relating to transactions recorded under “Other receivables” from financial intermediation.

 

 

Evolution of provisions    Quarter ended     D % quarter ended 09-30-16 vs
quarter ended
 

(in thousands of pesos except percentages)

   09-30-16     06-30-16     09-30-15     06-30-16     09-30-15  

Balance at the beginning of the quarter

     1,421,720        1,188,758        1,013,407        19.6     40.3

Increase / decrease

     226,335        336,129        115,201        -32.7     96.5

Provision increase / decrease - Exchange rate difference

     2,374        2,363        1,138        0.5     -108.6

Aplications / Reversals

     (131,586     (105,530     (104,949     24.7     25.4

Balance at the end of the quarter

     1,518,843        1,421,720        1,024,797        6.8     48.2

 

 

Deposits

 

    

 

 

Total deposits    Quarter ended      D % quarter ended 09-30-16 vs
quarter ended
 

(in thousands of pesos except percentages)

   09-30-16      06-30-16      09-30-15      06-30-16     09-30-15  

Deposits $ denominated

     70,139,742         73,740,949         56,442,365         -4.9     24.3
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Current accounts

     19,132,845         22,753,131         17,262,101         -15.9     10.8

Saving accounts

     17,365,933         17,453,110         13,256,478         -0.5     31.0

Time deposits

     31,865,941         31,944,736         24,666,686         -0.2     29.2

Peso denominated

     31,863,676         31,943,528         24,666,063         -0.2     29.2

CER adjusted time deposits

     2,265         1,208         623         87.5     263.6

Investment Accounts

     85,091         85,591         88,774         n/a        -4.1

Other

     1,689,932         1,504,381         1,168,326         12.3     44.6

Deposits FX denominated

     21,765,448         19,086,318         6,774,089         14.0     221.3

Current accounts

     848,591         1,578,285         441,526         -46.2     92.2

Saving accounts

     14,956,855         12,146,478         4,046,361         23.1     269.6

Time deposits

     5,200,667         4,962,250         2,095,682         4.8     148.2

Other

     759,335         399,305         190,520         90.2     298.6
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total deposits

     91,905,190         92,827,267         63,216,454         -1.0     45.4
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

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Table of Contents

Total deposits reached AR$ 91.9 billion as of September 30, 2016, representing an increase of 45.4% in the last twelve months and registering a slight decrease during the third quarter. It is important to mention that the previous quarter included temporary deposits from the public sector, net of these balances the increase during the quarter would be 3.5%.

During the last year, both sight accounts and time deposits registered significant growth, increasing 49.4%, and 38.5%, respectively.

Total peso-denominated deposits increased by 24.3% in the last twelve months.

Foreign currency denominated deposits increased significantly compared with both the same quarter of 2015 and with the previous quarter. Foreign currency denominated deposits totaled AR$ 21.8 billion (equivalent to US$ 1.4 billion) as of September 30, 2016, representing 23.7% of the Bank’s total deposits.

 

 

 

Other Funding Sources

 

    

 

 

Other funding sources    Quarter ended      D % quarter ended 09-30-16 vs
quarter ended
 

(in thousands of pesos except percentages)

   09-30-16      06-30-16      09-30-15      06-30-16     09-30-15  

Lines from other banks

     1,875,463         1,076,653         1,165,292         74.2     60.9

Senior Bonds

     2,093,095         1,583,253         1,707,212         32.2     22.6
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total other funding sources

     3,968,558         2,659,906         2,872,504         49.2     38.2
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

Other funding sources totaled AR$ 3.9 billion as of September 30, 2016, registering an increase of 38.2% in the last twelve months, and 49.2% compared to the previous quarter in 2016.

In the last twelve months, negotiable obligations were issued by the Bank and by PSA Finance and certain series of bonds matured during the period.

Additionally, dollar funding increased during the period, mainly through funding lines aimed at financing imports.

Of the total senior bonds outstanding, AR$ 1.9 million corresponded to those issued by BBVA Francés and AR$ 155.9 million to PSA Finance.

 

 

 

Capitalization

 

    

 

 

Capitalization    Quarter ended      D % quarter ended 09-30-16 vs
quarter ended
 

(in thousands of pesos except percentages)

   09-30-16      06-30-16      09-30-15      06-30-16     09-30-15  

Capital Stock

     536,878         536,878         536,878         0.0     0.0

Issuance premiums

     182,511         182,511         182,511         0.0     0.0

Adjustments to stockholders equity

     312,979         312,979         312,979         0.0     0.0
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Subtotal

     1,032,368         1,032,368         1,032,368         0.0     0.0
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Reserves on Profits

     11,783,995         11,783,995         8,899,508         0.0     32.4

Unappropriated retained earnings

     3,061,267         2,128,342         2,596,226         43.8     17.9
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total stockholders´equity

     15,877,630         14,944,705         12,528,102         6.2     26.7
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

- 11 -


Table of Contents
Central Bank Requirements    Quarter ended    

D % quarter ended 09-30-16 vs

quarter ended

 

(in thousands of pesos except percentages)

   09-30-16     06-30-16     09-30-15     06-30-16     09-30-15  

Central Bank Minimum Capital Requirements

     9,406,443        8,408,006        6,258,341        11.9     50.3

Central Bank Minimum Capital Requirements (a, b)

     9,225,447        8,231,916        6,202,914        12.1     48.7

Increase in capital requirements related to custody

     180,996        176,090        55,427        2.8     226.5

a) Central Bank Minimum Capital Requirements

     9,225,447        8,231,916        6,202,914        12.1     48.7

Allocated to Asset at Risk

     7,017,244        6,066,448        4,469,057        15.7     57.0

DCR (derivative conterparter risk)

     —          —          13,971          -100.0

Market Risk

     211,525        297,602        218,381        -28.9     -3.1

Operational Risk

     1,996,678        1,867,866        1,501,505        6.9     33.0

b) Minimum capital required for the Guarantee Fund for the Sustainability of the Pas-as-you-go System maneged by the Argentine Republic and registrar of mortgage notes

     723,985        704,360        400,000        2.8     81.0

5% of the securities in custody and book-entry notes

     723,985        704,360        400,000        2.8     81.0

Bank Capital Calculated under Central Bank Rules

     16,694,008        15,669,000        12,559,878        6.5     32.9

Ordinary Capital Level 1

     16,056,616        15,086,805        12,102,146        6.4     32.7

Dedusctions Ordinary Capital Level 1

     (360,327     (337,279     (220,219     6.8     63.6

Capital Level 2

     997,719        919,474        677,951        8.5     47.2

Excess over Required Capital

     7,287,565        7,260,994        6,301,537        0.4     15.6

Capital Ratio (Central Bank rules)

     14.8     15.6     16.2     -4.9     -8.6

Excess over Required Capital as a % of Shareholders´Equity

     45.9     48.6     66.2     -5.5     -30.7

Risk weighted assets

     112,763,265        100,690,295        77,536,420        12.0     45.4

 

As of September 30, 2016, the Bank’s total shareholders’ equity totaled AR$ 15.9 billion, while the excess over the BCRA minimum capital requirements was AR$ 7.3 billion or 77.5%, considering the additional buffer (3.5%), the excess of capital would be AR$ 3.3

billion. On the same date, the capital ratio reached 14.8% of assets adjusted to risk.

 

 

 

Additional Information

 

    

 

 

     Quarter ended    

D % quarter ended 09-30-16 vs

quarter ended

 

(in thousands of pesos except percentages)

   09-30-16     06-30-16     09-30-15     06-30-16     09-30-15  

Exchange rate

     15.26        14.92        9.42        2.3     62.0

Quarterly CER adjustment

     7.4     9.5     3.5     -22.8     111.4

This press release contains or may contain certain forward-looking statements within the meaning of the United States Securities Litigation Reform Act of 1995, including, among other things, concerning the prospects of the Argentine economy, BBVA Francés’ earnings, business plans, cost-reduction plans, and capitalization plan, and trends affecting BBVA Francés’ financial condition or results of operations. Any forward-looking statements included in this press release are based on current expectations and estimates, but actual results and events may differ materially from anticipated future results and events. Certain factors which could cause the actual results and events to differ materially from the expected results or events include: (1) changes in domestic or international stock market prices, exchange rates or interest rates; (2) macroeconomic, regulatory, political or governmental changes; (3) changes in the markets for BBVA Francés’ products and services; (4) increased competition; (5) changes in technology; or (6) changes in the financial condition, creditworthiness or solvency of the customers, debtors or counterparties of BBVA Francés. Additional factors that could cause the actual results or events to differ materially from the expected results or events are described in the reports filed by BBVA Francés with the United States Securities and Exchange Commission (“SEC”), including, but not limited to, BBVA Francés’ annual report on Form 20-F and exhibits thereto. BBVA Francés does not undertake to revise or update any of the information contained herein under any circumstances, including if at any moment following dissemination of such information it is no longer accurate or complete.

 

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Table of Contents

 

Conference Call

 

A conference call to discuss third quarter earnings will be held on Friday, November 11, 2016, at 9:00 am New York time – 11:00 am Buenos Aires time. If you are interested in participating, please dial:

0800 444 2930 (within Argentina)

+ 1 877 317 6776 (within U.S.)

+ 1 412 317 6776 (within the rest of the countries)

At least 5 minutes prior to our scheduled conference time.

Conference ID: BBVA.

This conference will be recorded. To ask for a digital replay, please dial:

+ 1 877 344 7529 (within U.S.)

+ 1 412 317 0088 (within the rest of the countries)

Access code: 10095359

To access the webcast:

http://webcast.neo1.net/Cover.aspx?PlatformId=zlVzheM%2FX5yf5Ht3Xrd5Ug%3D%3D

Link to view Q&A:

http://cw4.services.choruscall.com/contexweb/ViewQA/loginSortQA.html

Access code: 10095359

 

 

Internet

 

This press release is also available at BBVA Francés web site: www.bbvafrances.com.ar

 

 

Contacts

 

Cecilia Acuña

Investor Relations

(5411) 4341-5036

ceciliaviviana.acuna@bbva.com

Diego Cesarini

Financial Management and Investor Relations

dcesarini@bbva.com

 

 

- 13 -


Table of Contents

BBVA Banco Francés S.A. and subsidiaries (Grupo Consolidar: by the equity method)

BALANCE SHEET (in thousands of pesos)

 

     09-30-16     06-30-16     03-31-16     09-30-15  

Cash and due from banks

     30,296,084        26,524,315        23,414,132        13,937,749   

Government and Private Securities

     13,128,861        21,279,564        17,448,966        15,652,920   

Holdings booked at fair value

     3,291,490        4,241,363        4,015,178        2,583,782   

Holdings booked at amortized cost

     —          —          —          —     

Reverse repo

     1,090        38,502        164        164   

Listed Private Securities

     94,299        65,726        130,884        89,259   

Bills and Notes from the Central Bank

     9,742,197        16,934,190        13,302,958        12,979,915   

Less: Allowances

     (215     (217     (218     (200

Loans

     71,196,602        65,929,973        59,209,420        49,981,675   

Loans to the private & financial sector

     71,103,266        65,846,319        59,134,567        49,918,078   

Advances

     10,789,904        10,098,420        8,195,034        7,813,118   

Discounted and purchased notes

     10,473,506        8,596,864        8,979,534        7,708,000   

Secured with mortgages

     1,866,569        1,992,813        1,988,051        1,806,419   

Car secured loans

     5,087,540        4,563,281        4,493,535        4,127,086   

Personal loans

     8,172,953        7,582,330        7,428,791        6,805,408   

Credit cards

     19,698,692        19,420,755        18,176,278        14,672,406   

Loans to financial sector

     1,848,480        1,749,247        1,367,594        1,246,674   

Other loans

     13,704,420        12,170,151        8,658,592        6,010,784   

Less: Unaccrued interest

     (299,131     (207,715     (212,823     (161,426

Plus: Interest & FX differences receivable

     1,270,412        1,293,985        1,241,172        908,499   

Less: Allowance for loan losses

     (1,510,079     (1,413,812     (1,181,191     (1,018,890

Public Sector loans

     93,336        83,654        74,853        63,597   

Principal

     8,895        8,772        8,734        8,822   

Plus: Interest & FX differences receivable

     84,441        74,882        66,119        54,775   

Other banking receivables

     7,890,155        9,659,883        6,753,374        5,559,493   

Repurchase agreements

     305,269        5,084,968        982,677        1,910,161   

Unlisted private securities

     297,050        203,212        212,856        86,868   

Other banking receivables

     7,296,600        4,379,611        5,565,408        3,568,371   

Less: provisions

     (8,764     (7,908     (7,567     (5,907

Investments in other companies

     499,226        473,517        426,278        336,070   

Intangible assets

     286,330        272,423        259,976        211,624   

Organization and development charges

     282,764        272,423        259,976        211,624   

Other assets

     7,592,656        7,405,309        7,762,404        6,453,052   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Assets

     130,889,914        131,544,984        115,274,550        92,132,583   
  

 

 

   

 

 

   

 

 

   

 

 

 

Deposits

     91,905,190        92,827,267        80,101,415        63,216,454   

Current accounts

     19,981,436        24,331,416        19,361,280        17,703,627   

Saving accounts

     32,322,788        29,599,588        25,737,565        17,302,839   

Time deposits

     37,066,608        36,906,986        33,155,157        26,762,368   

Investment Accounts

     85,091        85,591        5,586        88,774   

Rescheduled deposits CEDROS

     2,224        2,224        2,234        2,234   

Other deposits

     2,447,043        1,901,462        1,839,593        1,356,612   

Other banking Liabilities

     17,131,159        17,439,924        15,015,019        11,618,140   

Other provisions

     1,169,099        1,113,625        1,021,902        961,630   

Other contingencies

     1,168,415        1,112,968        1,021,206        960,988   

Guarantees

     684        657        696        642   

Other liabilities

     4,423,620        4,908,410        3,888,356        3,513,683   

Minority interest

     383,216        311,053        366,411        294,574   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Liabilities

     115,012,284        116,600,279        100,393,103        79,604,481   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Stockholders’ equity

     15,877,630        14,944,705        14,881,447        12,528,102   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities + stockholders’ equity

     130,889,914        131,544,984        115,274,550        92,132,583   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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Table of Contents

BBVA Banco Francés S.A. and subsidiaries (Grupo Consolidar: by the equity method)

INCOME STATEMENT (in thousands of pesos)

 

     09-30-16     06-30-16     03-31-16     09-30-15  

Financial income

     5,472,394        6,159,658        5,495,068        4,160,006   

Interest on Cash and Due from Banks

     —          —          —          —     

Interest on Loans Granted to the Financial Sector

     125,081        136,181        112,598        76,198   

Interest on Overdraft

     954,753        927,369        691,193        614,867   

Interest on Discounted and purchased notes

     519,273        519,982        522,801        350,163   

Interest on Mortgages

     100,347        100,306        101,694        83,853   

Interest on Car Secured Loans

     277,860        276,984        270,463        238,125   

Interest on Credit Card Loans

     982,507        1,005,398        984,737        679,705   

Interest on Financial Leases

     109,609        114,964        116,114        103,447   

Interest on Other Loans

     1,060,249        1,005,356        919,114        836,913   

From Other Banking receivables

     398        95        152        108   

Interest on Government Guaranteed Loans Decree 1387/01

     10,728        9,820        9,072        4,082   

Income from Securities and Short Term Investments

     794,612        1,507,146        980,137        891,912   

CER

     168,496        148,734        161,520        50,113   

Foreign exchange difference

     240,758        333,214        369,257        122,243   

Other

     127,723        74,109        256,216        108,277   

Financial expenses

     (2,636,033     (2,816,856     (2,515,025     (1,833,403

Interest on Current Account Deposits

     —          —          —          —     

Interest on Saving Account Deposits

     (8,710     (9,019     (7,957     (5,987

Interest on Time Deposits

     (2,031,231     (2,195,456     (1,842,388     (1,321,401

Interest on Other Banking Liabilities

     (193,998     (191,555     (181,920     (149,052

Other interests (includes Central Bank)

     (881     (1,128     (1,234     (1,469

CER

     (86     (105     (127     (19

Bank Deposit Guarantee Insurance system mandatory contributions

     (37,514     (34,600     (128,161     (102,137

Mandatory contributions and taxes on interest income

     (340,249     (338,278     (327,833     (231,747

Other

     (23,364     (46,715     (25,405     (21,591

Net financial income

     2,836,361        3,342,802        2,980,043        2,326,603   

Provision for loan losses

     (226,335     (336,129     (161,351     (115,201

Income from services, net of other operating expenses

     1,300,901        1,014,393        931,083        953,272   

Administrative expenses

     (2,373,439     (2,211,679     (2,095,807     (1,645,376

Income (loss) from equity investments

     20,132        102,183        44,802        69,341   

Net Other income

     (4,163     (27,480     56,471        (10,472

Income (loss) from minority interest

     (24,753     (34,113     (39,994     (30,439

Income before tax

     1,528,704        1,849,977        1,715,247        1,547,728   

Income tax

     (595,779     (886,719     (550,163     (549,658

Net income

     932,925        963,258        1,165,084        998,070   

 

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Table of Contents

BBVA Banco Francés S.A. and subsidiaries (Grupo Consolidar consolidated on a line by line basis)

 

     09-30-16      06-30-16      03-31-16      09-30-15  

Cash and due from banks

     30,296,084         26,524,319         23,414,261         13,937,826   

Government Securities

     13,166,151         21,319,864         17,489,778         15,658,390   

Loans

     71,196,602         65,929,973         59,209,420         49,981,675   

Other Banking Receivables

     7,891,047         9,660,033         6,753,374         5,559,493   

Assets Subject to Financial Leasing

     2,110,038         2,247,058         2,346,370         2,339,833   

Investments in other companies

     493,463         465,736         416,473         331,131   

Other assets

     5,779,511         5,442,251         5,689,131         4,368,786   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Assets

     130,932,896         131,589,234         115,318,807         92,177,134   
  

 

 

    

 

 

    

 

 

    

 

 

 

Deposits

     91,904,217         92,827,261         80,101,011         63,214,992   

Other banking liabilities

     17,135,935         17,440,527         15,015,019         11,618,166   

Minority interest

     388,147         317,712         374,801         298,800   

Other liabilities

     5,626,967         6,059,029         4,946,529         4,517,074   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Liabilities

     115,055,266         116,644,529         100,437,360         79,649,032   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Stockholders´Equity

     15,877,630         14,944,705         14,881,447         12,528,102   
  

 

 

    

 

 

    

 

 

    

 

 

 

Stockholders´Equity + Liabilities

     130,932,896         131,589,234         115,318,807         92,177,134   

Net Income

 

     09-30-16     06-30-16     03-31-16     09-30-15  

Net Financial Income

     2,838,936        3,347,768        2,983,692        2,328,398   

Provision for loan losses

     (226,335     (336,129     (161,351     (115,201

Net Income from Services

     1,300,901        1,014,393        931,083        953,272   

Administrative expenses

     (2,379,655     (2,220,410     (2,101,298     (1,646,213

Net Other Income

     18,012        77,506        101,996        58,164   

Income Before Tax

     1,551,859        1,883,128        1,754,122        1,578,420   

Income Tax

     (595,909     (886,809     (550,303     (549,809

Net income

     955,950        996,319        1,203,819        1,028,611   

Minoritary Interest

     (23,025     (33,061     (38,735     (30,541

Net income for Quarter

     932,925        963,258        1,165,084        998,070   

 

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Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

    BBVA Banco Francés S.A.
Date: November 10, 2016     By:  

/s/ Ignacio Sanz y Arcelus

      Name:   Ignacio Sanz y Arcelus
      Title:   Chief Financial Officer
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