BFR Bbva Banco Frances S.A.

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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 2017

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  ☒            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  ☒

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  ☒

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  ☒

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.

TABLE OF CONTENTS

 

Item

1. BBVA Francés reports consolidated third quarter earnings for fiscal year 2017.

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Buenos Aires, November 10, 2017 - BBVA Francés (NYSE: BFR.N; BCBA: FRA.BA; LATIBEX:

BFR.LA) reports consolidated third quarter results for the January-December 2017

financial year.

 

 

Highlights of the quarter

 

 

•

BBVA Francés earned a net profit of $ 1,134.6 million in the third quarter of 2017, thus generating an accumulated result of $ 2,457.4 million in the first nine months of the year. The quarter’s result showed a 25.7% increase in relation to the previous quarter, net of the effect of the income tax recorded in said period, and a 21.6% rise compared to the same quarter of 2016.

 

•

The quarterly annualized return on average equity was 21.7%, and the return on average assets amounted to 2.5%.

 

•

In July 2017, BBVA Francés carried out a primary follow-on equity offering in Argentina and abroad, issuing 75,781,788 new ordinary shares, equivalent to USD 400 million, which will allow the Bank to develop its growth plan.

 

•

Net financial income showed a 15.7% rise in relation to the previous quarter, and a 40% increase compared to the same quarter of 2016. Such increases are mainly the result of the credit activity growth in the private sector, due to foreign exchange differences and a higher volume of the Bank’s own funds.

 

•

Net commissions grew 31.1% during the quarter, and 20% as compared to the same quarter of 2016, whereas administrative expenses increased 4.3% and 33% in the same periods.

 

•

In terms of activity, the private sector loan portfolio evolved positively, growing 20.8% in the quarter and 52.1% in the last twelve months.

 

•

Total non-performing loan ratio fell to 0.70%, whereas coverage amounts to 271.1%. Both effects are mainly explained by the growth of the loan portfolio. The higher generic provisions result in a 41% rise of charges of non-performing loans.

 

•

Total deposits reached $ 129.9 billion, showing a moderate growth of 3.4% during the quarter, aligned with the industry and of 41.4% during the year. As of September 30, 2017, sight deposits represented 65% of the Bank’s total deposits, thus remaining at a level similar to the previous quarter.

 

•

The Bank’s liquidity level amounts to 34.7%, thus showing a 700 bp decrease with respect to the previous quarter, as a result of the higher loan volume. The capital ratio at the end of the quarter was 14.8%.

 

•

On August 10, 2017, BBVA Francés paid out AR$ 911 million cash dividends corresponding to the 2016 fiscal year, which amounts to 148.69% of the share capital or $ 1.4869 per share.

 

•

During the quarter, BBVA Francés executed repos with the Republic of Argentina for a total USD 250 million.

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Other events

 

On October 31, 2017, the government announced the fiscal reform bill aimed at increasing investment, generating employment, and eliminating distortions. The bill proposes reforms on several of the main federal taxes, among which there is Income, VAT, Bank debits and credits, Fuels, and Social Security taxes.

 

 

Regulatory changes

 

On November 3, 2017, the Argentina Central Bank (BCRA) determined that the credit lines for productive financing and financial inclusion will be applied until December 2018.

The quote for 2018 will be a percentage of monthly non-financial private deposits in pesos as of November 30, 2017, according to the following schedule: January 2018: 16.5%, decreasing 1.5% monthly until reaching 0% in December 2018.

Economic environment

 

								Quarter ended
Main Macroeconomic figures				09-30-17				30-06-17				31-03-17				12-31-16				09-30-16
GDP		var % y/y			—				2.7	%			0.4	%			-1.9	%			-3.7	%
Inflation (1)		var % y/y			23.8	%			21.8	%			32.2	%			39.4	%			42.7	%
End of period		var % q/q			5.1	%			5.4	%			6.1	%			5.3	%			3.4	%
CER		Quarterly adjustment			4.3	%			7.0	%			4.6	%			4.5	%			7.4	%
Exchange Rate		Pesos x US$			17.31				16.60				15.38				15.85				15.26
Reserves		US$			50,237				47,995				50,522				39,308				29,902
Total Private Loans		var % q/q			12.5	%			11.7	%			5.7	%			12.0	%			6.3	%
		var % y/y			48.6	%			40.4	%			35.6	%			31.5	%			30.6	%
Total Private Deposits		var % q/q			3.7	%			7.1	%			1.8	%			20.7	%			5.3	%
		var % y/y			36.5	%			38.6	%			38.5	%			43.4	%			37.2	%
Badlar interest rate		Weighted avg. quarterly			20.7	%			19.5	%			19.8	%			21.1	%			24.6	%

 

(1)	IPC National since 1Q 17 / IPC CABA 4Q 16 - 3Q 16

Argentina has commenced the fourth consecutive quarter of economic recovery, with a 0.7% growth in the second quarter 2017 (deseasonalized), whereas, measured by the Gross Domestic Product (GDP), the economy grew 2.7% in the second quarter compared to the same period of 2016. The activity was mainly driven by investment, which increased 7.7% year-over-year, and by consumption performance, which hiked 4.3% in the same period.

Such recovery is validated by other higher frequency estimators. Thus, the August figure, the last available issue of the Monthly Economic Activity Estimator (EMAE in Spanish), shows economic activity gaining momentum by increasing 0.3% (deseasonalized series) and 4.3% year-over-year.

Similarly, the industrial activity grew 5.1% in August, as compared to the same period of the previous year, accumulating 1.4% in the first eight months of the year, according to the Monthly Industrial Estimator (EMI in Spanish) that shows signs of recovery in most sectors surveyed.

In the third quarter, inflation was 5.1%, thus the CPI accumulates a 17.6% variation during the year. Whereas core inflation grew 4.9% in the same period, regulated prices increased 4.6% driven by public services rates adjustments.

 

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The BCRA continued with its astringent monetary policy profile, keeping the reference rate at 26.25% until October. Then, reaffirming its commitment, the Central Bank carried out two monetary policy rate raises: the rate increased by 150 bp and 100 bp in the meeting held October 25 and November 7, respectively, reaching 28.75%.

In the third quarter 2017, the peso depreciated by 4.3%, from AR$ 16.60 /USD at the end of June to AR$ 17.32 at the close of September, evidencing thus a devaluation of 14.2% in the last 12 months.

As of September 30, 2017, international reserves amounted to USD 50,237 million, a growth of USD 2,242 million since the closing of June 2017.

The same as in the first two quarters of the year, the fiscal deficit easily met the goal, set at 3.2% of GDP. In the third quarter of the year, primary deficit totaled $ 78,093 million, which represents 2.2% of GDP, and a 19.3% reduction in relation to the result shown in the same period of 2016. Economic subsidies, which basically comprise energy and transport, and account for 66% of the primary fiscal deficit of the period July-September, fell 33.9% compared to the same period of the previous year, in which they accounted for 80.9% of the primary fiscal result.

Presentation of the information

 

•

The balances in foreign currency as of September 30, 2017 were converted into pesos at the exchange rate published by the Argentina Central Bank (BCRA in Spanish) for that date (AR$ 17.32 / USD).

 

•

The information in this press release contains unaudited financial information that consolidates, line item by line item, all of the banking activities of the BBVA Francés Group. The Bank’s share interest in Grupo Consolidar, 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”.

 

•

It is worth highlighting that the information 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.

Disclaimer

This press release contains or may contain forward-looking statements, including, but not limited to, estimates of prospects for the Argentine economy, BBVA Francés’ earnings, business plans, expense and operational structure adjustments, capitalization plan, and trends affecting BBVA Francés’ financial condition and results of operations. Any forward-looking statement included in this press release is based on current expectations and estimates, but actual results and events may differ materially from the anticipated results and events. Such factors that could cause actual results and events to differ materially from the expected results or events include: (1) changes in the economic, regulatory and/or political environment, (2) changes in domestic or international stock market prices, exchange rates or interest rates; (3) changes in the markets of the Bank’s products and services; (4) increased competition; (5) changes in technology; or (6) changes in the financial condition, creditworthiness or solvency of the Bank’s customers, debtors or counterparties. It is recommended that these forward-looking statements be taken with caution, since they are only applicable to the date of the present document. We advise you to consult the Bank’s Accounting Statements, as well as all the presentations that are periodically filed before the “Comisión Nacional de Valores” (Argentine equivalent to the US SEC) and the Buenos Aires Stock Exchange.

 

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Third Quarter Results

 

Within an economic environment showing signs of reactivation, and given the growth opportunities in the financial system, BBVA Francés is focused on increasing its market share.

In this respect, the Bank has continued with its customer acquisition strategy, by means of digital campaigns and strategic partners’ alliances, and by reinforcing its presence not only in the retail banking segment, but also in the small and medium-size companies segment.

During the year, approximately 229,000 consumer customers and 1,500 new companies were added.

 

Condensed Income Statement (1)						Quarter ended																% quarter ended 09-30-17 vs quarter ended
In thousands of $ except income per share,
ADS		09-30-17				06-30-17				03-31-17				12-31-16				09-30-16				06-30-17				09-30-16
Net Financial Income			3,970,483				3,432,939				3,063,776				3,252,260				2,836,361				15.7	%			40.0	%
Provision for loan losses			(503,013	)			(356,386	)			(323,969	)			(331,013	)			(226,335	)			41.1	%			122.2	%
Net income from services			1,561,617				1,191,061				1,234,102				1,076,422				1,300,901				31.1	%			20.0	%
Administrative expenses			(3,155,954	)			(3,027,058	)			(2,897,619	)			(2,860,570	)			(2,373,439	)			4.3	%			33.0	%
Operating income			1,873,133				1,240,556				1,076,290				1,137,099				1,537,488				51.0	%			21.8	%
Income (Loss) from equity investments			118,217				155,131				19,491				17,083				20,132				-23.8	%			487.2	%
Income (Loss) from Minority interest			(18,425	)			(29,601	)			(27,853	)			(13,547	)			(24,753	)			-37.8	%			-25.6	%
Other Income/Expenses			(121,621	)			(1,168,459	)			855,111				(141,517	)			(4,163	)			89.6	%			n/a
Income Tax / Minimum Presumed Tax			(716,724	)			(480,622	)			(317,269	)			(416,713	)			(595,779	)			49.1	%			20.3	%
Net income for the period			1,134,580				(282,995	)			1,605,770				582,405				932,925				-500.9	%			21.6	%
Net income per share (2)			1.85				(0.53	)			2.99				1.08				1.74				-451.3	%			6.6	%
Net income per ADS (3)			5.56				(1.58	)			8.97				3.25				5.21				-451.3	%			6.6	%
Net Income not considerig fiscal provision			1,134,580				902,805				419,970				582,405				932,925				25.7	%			21.6	%

 

(1)	Exchange rate: AR$ 17.32 Ps = 1USD

(2)	Assumes 612,659,638 ordinary shares

(3)	Each ADS represents three ordinary shares

 

						Quarter ended																% Quarter ended 09/30/17 vs quarter ended
Main figures		09-30-17				06-30-17				03-31-17				12-31-16				09-30-16				06-30-17				09-30-16
ROA (Average Assets) (1)			2.5	%			2.1	%			1.0	%			1.6	%			2.9	%			18.7	%			-13.1	%
ROE (Average Shareholders’ Equity) (1)			21.7	%			21.3	%			10.1	%			14.3	%			24.0	%			1.9	%			-9.7	%
NIM (1)(2)			10.7	%			11.4	%			0.0	%			12.5	%			12.3	%			-5.8	%			-12.9	%
Net fee income / Net operating Income (3)			28.2	%			25.8	%			28.7	%			24.9	%			31.4	%			9.6	%			-10.2	%
Coverage ratio (4)			49.5	%			39.3	%			42.6	%			37.6	%			54.8	%			25.8	%			-9.7	%
Efficiency ratio (5)			57.0	%			65.5	%			67.4	%			66.1	%			57.4	%			-12.9	%			-0.6	%

 

(1)	Annualized.

(2)	Net interest Margin: Financial Income-Financial Expenses (include Gross Income Tax and SEDESA) / Average Interest-Earning Assets (net of foreign exchange difference)

(3)	Operative income: Net financial income + Net income from services

(4)	Net income from services / Adm.Expenses

(5)	Adm.Expenses / (Net financial income + Net income from services)

 

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Net Financial Income

 

Net financial income						Quarter ended																% quarter ended 09-30-17 vs quarter ended
(in thousands of pesos)		09-30-17				06-30-17				03-31-17				12-31-16				09-30-16				06-30-17				09-30-16
Financial Income			6,322,099				5,637,429				5,280,611				5,540,183				5,472,394				12.1	%			15.5	%
Income from financial intermediation			4,368,178				4,039,850				4,060,877				4,096,831				4,130,077				8.1	%			5.8	%
CER adjustment			112,942				155,398				100,285				97,613				168,496				-27.3	%			-33.0	%
Income Securities and short term inv.			1,032,478				778,964				593,345				807,994				805,340				32.5	%			28.2	%
Foreign exchange difference			634,046				431,991				306,004				458,312				240,758				46.8	%			163.4	%
Others			174,455				231,226				220,100				79,433				127,723				-24.6	%			36.6	%
Financial Expenses			-2,351,616				-2,204,490				-2,216,835				-2,287,923				-2,636,033				6.7	%			-10.8	%
Net Financial Income			3,970,483				3,432,939				3,063,776				3,252,260				2,836,361				15.7	%			40.0	%

Net financial income grew 15.7% in the third quarter of the year, and 40% compared to the same quarter of 2016, mainly due to a higher volume of intermediation with the private sector, and to the increase of own funds.

On the other hand, income from assets adjusted by inflation fell as the result of the lower increase of the CER index in relation to the second quarter. Deposits average rate showed a slight increase, as a consequence of the policy implemented by the Central Bank.

The result for foreign exchange difference showed a positive evolution, both in trading income, which grew $ 129.1 million, and in results from holdings that rose $ 72.9 million during the quarter.

The Bank continued working on the reduction of local currency physical bills balance held at branches. During the quarter, said balances fell 12% versus the previous one, which represents an average 5% of deposits.

The NIM in local currency is the same compared to the previous quarter. Although there is a fall in lending rates, it is offset with a better funding mix. The NIM in foreign currency increased 30 basis points, driven by the improvement seen on the loan portfolio return.

Although the NIM by currency showed a positive evolution, total NIM fell 30 basis points due to the change in the mix, since dollar denominated assets grew 44% in the quarter, as the result of the placement of liquidity surpluses, whereas the peso denominated ones grew 10%. Total NIM deducting foreign exchange results fell 70 basis points in the quarter.

 

Interest-Earning Assets & Interest-Bearing										Quarter ended
Liabilities $ + USD		09-30-17								06-30-17								09-30-16
(Averege in thouhand of AR$)																		Capital				Rate
Interest-Earning Assets			123,936,863				18.2	%			106,177,951				19.6	%			84,666,147				25.0	%
Interest-Bearing Liabilities			95,703,384				7.4	%			85,389,256				8.2	%			66,302,940				13.2	%
NIM without foreign exchange differences			10 .7	%							11.4	%							12.3	%
NIM including foreign exchange differences			12.7	%							13.0	%							13.3	%

A table of return on assets and cost of liabilities is included by currency: pesos and dollars.

 

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Interest-Earning Assets & Interest-Bearing Liabilities $		09-30-17								Quarter ended 06-30-17								30-09-16
(Average in thouhand of AR$)		Capital				Rate				Capital				Rate				Capital				Rate
Interest-Earning Assets			94,737,428				23.3	%			85,899,553				23.6	%			74,700,728				25.1	%
Public Bonds			18,610,366				22.6	%			15,203,478				22.4	%			15,018,840				27.5	%
Loans			69,905,567				23.5	%			64,125,816				23.9	%			57,542,208				24.6	%
Other interest-earning assets			6,221,495				23.4	%			6,570,258				23.6	%			2,139,679				22.4	%
Interest-Bearing Liabilities			60,295,707				11.8	%			56,936,337				11.8	%			49,752,645				15.1	%
Saving Accounts			22,684,140				0.1	%			20,146,700				0.1	%			15,874,736				0.1	%
Time Deposits			31,547,072				18.2	%			32,333,089				18.1	%			31,562,546				22.0	%
Current accounts with interest			3,686,389				20.6	%			2,403,691				15.9	%			—				—
Debt Securities			1,128,352				23.8	%			1,594,466				22.9	%			1,663,467				29.2	%
Other interest-bearing liabilities			1,249,754				23.4	%			458,390				19.9	%			651,896				14.1	%
NIM $			14.2	%							14.2	%							14.1	%

 

Interest-Earning Assets & Interest-Bearing Liabilities USD		09-30-17								06-30-17								Quarter ended 09-30-16
(Averege in thouhand of AR$)		Capital				Rate				Capital				Rate				Capital				Rate
Interest-Earning Assets			29,199,435				2.7	%			20,278,398				2.5	%			9,965,419				5.5	%
Public Bonds			4,081,066				2.9	%			4,334,166				3.2	%			259,137				2.6	%
Loans			20,810,951				2.7	%			14,564,480				2.5	%			8,683,734				3.7	%
Other interest-earning assets			4,307,418				2.7	%			1,379,752				0.8	%			1,022,549				22.4	%
Interest-Bearing Liabilities			35,407,677				0.1	%			28,452,920				0.1	%			16,550,295				0.5	%
Saving Accounts			28,491,001				0.0	%			22,221,119				0.0	%			10,914,877				0.1	%
Time Deposits			6,698,506				0.3	%			5,939,973				0.3	%			5,073,350				0.9	%
Other interest-bearing liabilities			218,170				3.9	%			291,828				4.4	%			562,067				3.6	%
NIM USD			2.2	%							1.9	%							1.9	%

Results for Public and Private Securities

 

Income from securities and short-term investments										Quarter ended												D % Quarter ended 09/30/17 vs quarter ended
(in thousands of pesos)		09-30-17				06-30-17				03-31-17				12-31-16				09-30-16				06-30-17				09-30-16
Income Securities and short term inv.			1,032,478				778,964				592,264				801,184				794,614				32.5	%			29.9	%
Income Interest Margin			1,071,955				777,079				445,641				659,167				871,502				37.9	%			23.0	%
Bills and Notes from the Central Bank			1,012,485				716,362				368,754				574,204				779,982				41.3	%			29.8	%
Other bonds			59,470				60,718				76,887				84,963				91,519				-2.1	%			-35.0	%
Holdings booked at fair value			46,915				56,036				68,489				83,217				91,067				-16.3	%			-48.5	%
Holdings booked at amortized cost			12,555				4,682				8,397				1,746				453				168.1	%			n/a
Income Financial Operations			(69,542	)			(45,905	)			114,066				87,426				(105,021	)			51.5	%			-33.8	%
Bills and Notes from the Central Bank			(53,786	)			12,579				18,608				11,132				(162	)			-527.6	%			n/a
Other bonds			(15,756	)			(58,484	)			95,458				76,294				(104,859	)			-73.1	%			-85.0	%
Holdings booked at fair value			(15,758	)			(58,539	)			95,343				76,517				(105,005	)			-73.1	%			-85.0	%
Holdings booked at amortized cost			2				55				115				(223	)			147				-96.4	%			-98.6	%
Other fixed income securities			30,064				47,789				32,557				54,590				28,133				-37.1	%			6.9	%
CER adjustment			112,942				155,398				100,285				97,614				168,495				-27.3	%			-33.0	%

Financial income generated by public sector assets grew 32.5% in the quarter, mainly due to a higher return of the BCRA bills portfolio, as the result of higher average holdings during the quarter generated by the issue of shares.

 

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Net Income from Services

 

Net income from services										Quarter ended												% quarter ended 09-30-17 vs quarter ended
(in thousands of pesos)		09-30-17				06-30-17				03-31-17				12-31-16				09-30-16				06-30-17				09-30-16
Net income from services			1,561,617				1,191,061				1,234,102				1,076,422				1,300,901				31.1	%			20.0	%
Service charge income			2,937,973				2,485,825				2,481,746				2,398,519				2,241,382				18.2	%			31.1	%
Service charges on deposits accounts			636,398				568,815				498,412				430,468				392,719				11.9	%			62.0	%
Credit cards and operations			1,106,882				883,586				987,996				1,000,246				998,318				25.3	%			10.9	%
Insurance			173,382				151,393				168,532				170,554				162,817				14.5	%			6.5	%
Capital markets and securities activities			31,823				31,306				16,936				16,533				25,547				1.7	%			24.6	%
Fees related to foreign trade			90,866				77,239				67,389				70,283				64,812				17.6	%			40.2	%
Safety deposit box			89,290				82,482				74,202				74,569				65,730				8.3	%			35.8	%
Services of collection			58,567				48,661				42,022				39,283				35,549				20.4	%			64.7	%
Generated by subsidiaries			365,836				324,080				298,607				205,153				129,140				12.9	%			183.3	%
Other fees			384,929				318,263				327,651				391,430				366,750				20.9	%			5.0	%
Services Charge expense			(1,376,356	)			(1,294,764	)			(1,247,644	)			(1,322,097	)			(940,481	)			6.3	%			46.3	%

Net income from services grew 31.1% compared to the previous quarter, thus showing a positive evolution for all items. The quarter includes recurrent annual income, realized during the quarter analyzed. Disregarding such effect, the variation amounts to 20.5%.

Income grew 18.2% in the quarter, whereas expenditures did so by 6.3%.

Higher commissions from credit cards stand out, with consumptions increasing 8.7% and gaining market share. Other items that showed a good performance were fees from deposit accounts, which grew due to both the increase of activity and prices, and income from collection services.

 

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Administrative Expenses

 

Administrative expenses		Quarter ended																				% quarter ended 09-30-17 vs quarter ended
(in thousands of pesos)		09-30-17				06-30-17				03-31-17				12-31-16				09-30-16				06-30-17				09-30-16
Administrative expenses			(3,155,954	)			(3,027,058	)			(2,897,619	)			(2,860,570	)			(2,373,439	)			4.3	%			33.0	%
Personnel expenses			(1,749,326	)			(1,706,425	)			(1,635,877	)			(1,694,758	)			(1,335,778	)			2.5	%			31.0	%
General expenses			(1,406,628	)			(1,320,633	)			(1,261,742	)			(1,165,812	)			(1,037,661	)			6.5	%			35.6	%
Electricity and Communications			(43,911	)			(56,482	)			(52,036	)			(59,685	)			(59,459	)			-22.3	%			-26.1	%
Advertising and Promotion			(112,517	)			(104,197	)			(82,525	)			(106,078	)			(102,929	)			8.0	%			9.3	%
Fees and external administrative services			(66,939	)			(56,993	)			(49,289	)			(45,649	)			(45,089	)			17.5	%			48.5	%
Taxes			(317,367	)			(282,287	)			(279,474	)			(265,956	)			(237,145	)			12.4	%			33.8	%
Organization and development expenses			(32,414	)			(28,539	)			(24,846	)			(20,555	)			(19,448	)			13.6	%			66.7	%
Amortizations			(131,348	)			(112,281	)			(87,628	)			(73,633	)			(62,980	)			17.0	%			108.6	%
Rents			(126,231	)			(106,084	)			(112,106	)			(108,211	)			(93,700	)			19.0	%			34.7	%
Maintainance, conservation and repairs			(132,731	)			(130,637	)			(134,038	)			(104,528	)			(85,485	)			1.6	%			55.3	%
Security Service			(85,253	)			(71,328	)			(71,101	)			(66,610	)			(68,533	)			19.5	%			24.4	%
Carriage of valuables			(160,235	)			(179,109	)			(164,900	)			(145,398	)			(118,129	)			-10.5	%			35.6	%
Other			(197,682	)			(192,696	)			(203,799	)			(169,509	)			(144,764	)			2.6	%			36.6	%
Total Employees			6,142				6,190				6,219				6,265				6,114				-0.8	%			0.5	%
Total Branches			251				252				252				251				251				-0.4	%			0.0	%

Administrative expenses increased 4.3% in the last three months and 33.0% in comparison with the same quarter of 2016.

General personnel expenses grew 2.5% over the previous quarter and 31% year-over-year. The period includes an $ 80 million provision corresponding to personnel compensation commitments included in the banking collective agreement, which in 2016 impacted on the fourth quarter. Without such provision, expenditures would have fallen slightly during the quarter, and increased 25% compared to the same period of 2016.

General expenses rose 6.5% over the previous quarter and 35.6% year-over-year.

During the period, higher tax charges and amortizations were recorded due to higher activity, investments in technology and the addition of the corporate office. Price of branch rents also went up. These effects were partially offset by a reduction of the transport of valuables item, which evidences the actions taken by the Bank to control this expenditure.

The efficiency ratio improves by 850 bp during the quarter, to 57%, as the result of both higher income, and higher expenditure restraint.

Within the frame of the transformation strategy, it is worth highlighting that, during the year, cashier transactions in branches decreased 20%, thus allowing for a reallocation of resources to more productive tasks, while hard copy account statements continued to be reduced, as a result of a strong campaign to lure customers to choose the digital format.

Other Income / Expenditures

The Other Income/Expenditure item showed a loss of $ 121.6 million in the third quarter of 2017, as the result of the fact that it includes higher provisions for other contingencies, mainly commercial.

Income from Equity Investments

Income from equity investments sets forth net income from related companies that are not consolidated. During the third quarter of 2017, the profit amounted to $ 118.2 million.

 

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Balance and activity

 

Loan portfolio

 

Net loans		Quarter ended																				% quarter ended 09-30-17 vs quarter ended
(in thousands of pesos)		09-30-17				06-30-17				03-31-17				12-31-16				09-30-16				06-30-17				09-30-16
Private & Financial sector loans in $			84,226,386				71,820,037				68,429,094				66,472,453				60,724,382				17.3	%			38.7	%
Advances			10,533,948				9,495,624				9,463,160				9,540,668				10,783,767				10.9	%			-2.3	%
Discounted and purchased notes			13,261,590				9,128,070				9,227,187				9,810,847				9,267,218				45.3	%			43.1	%
Consumer Mortgages			2,937,234				2,071,739				1,892,840				1,889,443				1,866,569				41.8	%			57.4	%
Car secured loans			8,062,140				6,986,809				6,368,608				5,628,320				5,087,540				15.4	%			58.5	%
Personal loans			13,786,796				11,646,873				10,522,971				9,368,939				8,172,953				18.4	%			68.7	%
Credit cards			23,889,556				22,516,560				21,775,867				21,539,673				18,675,353				6.1	%			27.9	%
Loans to financial sector			2,204,909				2,217,403				1,739,275				1,715,873				1,697,297				-0.6	%			29.9	%
Other loans			10,345,952				8,621,253				8,200,489				7,512,590				5,605,681				20.0	%			84.6	%
Unaccrued interest			(410,090	)			(312,439	)			(315,649	)			(329,346	)			(299,131	)			31.3	%			37.1	%
Adj. & accrued int. & exchange diff. receivable			1,484,684				1,166,756				1,164,083				1,286,851				1,270,412				27.2	%			16.9	%
Less: Allowance for loan losses			(1,870,333	)			(1,718,611	)			(1,609,737	)			(1,491,405	)			(1,403,277	)			8.8	%			33.3	%
Private & Financial sector loans in FX			23,861,543				17,635,160				12,901,265				10,642,999				10,344,820				35.3	%			130.7	%
Advances			8,534				7,952				7,233				5,897				6,137				7.3	%			39.1	%
Discounted and purchased notes			1,306,379				941,959				858,646				1,085,875				1,206,288				38.7	%			8.3	%
Credit cards			1,549,060				1,463,325				1,301,292				981,170				1,023,339				5.9	%			51.4	%
Loans to financial sector			114,563				109,892				127,133				130,914				151,183				n/a				n/a
Other loans			21,162,903				15,293,021				10,755,116				8,565,890				8,064,675				38.4	%			162.4	%
Less: Allowance for loan losses			(279,896	)			(180,989	)			(148,155	)			(126,747	)			(106,802	)			54.6	%			162.1	%
Total Private Loans			108,087,929				89,455,197				81,330,359				77,115,452				71,069,202				20.8	%			52.1	%
Total loans to public sector			267				239				156				98,819				93,336				11.7	%			-99.7	%
Net Total Loans net of other non resident loans			108,088,196				89,455,436				81,330,515				77,214,271				71,162,538				20.8	%			51.9	%
Other non resident loans (*)			3,588,006				62,710				1,581,090				1,675,650				34,064				n/a				n/a
Net total loans			111,676,202				89,518,146				82,911,605				78,889,921				71,196,602				24.8	%			56.9	%

 

(*)	Correspond to balances related to overnight operations celebrated with foreign correspondent banks

The private sector loan portfolio totaled AR$ 108.1 billion, growing 20.8% in the quarter and 52.1% year-over-year.

 

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As a result of the growth strategy implemented, the BBVA Francés market share of private loans grew 47 basis points during the quarter. The share reaches 8.1% as of September 30, 2017, and includes loans of affiliated companies consolidated within the financial statements, PSA Finance and Volkswagen.

In the last twelve months, loans in pesos increased 38.7%, while dollar loans rose 130.7%.

During the quarter, there stands out the dynamics of companies’ financing, both in local and foreign currency, and of consumption loans, mainly mortgage loans, unsecured and secured car loans.

Total Public Sector Exposure

 

Public and Private Sector Exposure		Quarter ended																				% quarter ended 09-30-17 vs quarter ended
(in thousands of pesos)		09-30-17				06-30-17				03-31-17				12-31-16				09-30-16				06-30-17				09-30-16
Public Sector - National Government			7,464,832				7,920,788				6,889,933				5,276,924				3,385,701				-5.8	%			120.5	%
Public Sector Loans			267				239				156				98,819				93,336				11.7	%			-99.7	%
Total bond portfolio			7,464,790				7,920,772				6,889,994				5,178,318				3,292,580				-5.8	%			126.7	%
Holdings book at fair value			5,746,588				6,955,704				5,646,590				4,274,229				3,291,490				-17.4	%			74.6	%
Holdings book at amortized cost			1,718,202				965,068				1,243,404				904,089				1,090				78.0	%			n/a
Allowances			(225	)			(223	)			(217	)			(213	)			(215	)			0.9	%			4.7	%
Bills and Notes from Central Bank			14,488,774				14,393,353				7,200,514				7,310,231				9,437,491				0 .7	%			53.5	%
Total exposure to the Public			21,953,606				22,314,142				14,090,447				12,587,155				12,823,192				-1.6	%			71.2	%
Private Debt			615,570				576,714				471,796				479,106				391,349				6.7	%			57.3	%
Total exposure to the Pub and Priv Sector			22,569,176				22,890,856				14,562,243				13,066,261				13,214,541				-1.4	%			70.8	%
Portfolio Received for Repos			8,079,583				3,199,988				9,893,778				64,872				304,706				152.5	%			n/a
Public Bonds			8,872,119				37,061				—				—				—				n/a				n/a
BCRA Instruments			(792,536	)			3,162,927				9,893,778				64,872				304,706				-125.1	%			-360.1	%

Exposure to the Public Sector registered a 1.6% reduction compared to the previous quarter, and a 71.2% increase in the last twelve months.

The portfolio of public securities fell 5.8% over the previous quarter and increased 120.5% in the last twelve months, mainly due to a larger placement in dollar denominated Treasury Bills.

During the quarter, repos were executed with the Argentine Republic for USD 250 million, maturing in December 2018 and March 2019.

As of September 30, 2017, the Federal Government public debt represented 3.7% of the Bank’s assets, while Central Bank Bills totaled 7.2% thereof.

 

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Portfolio Quality

 

Asset quality ratios		Quarter ended																				% quarter ended 09-30-17 vs quarter ended
(in thousands of pesos)		09-30-17				06-30-17				03-31-17				12-31-16				09-30-16				06-30-17				09-30-16
Non-performing loans (1)			793,264				780,886				707,907				616,075				600,139				1.6	%			32.2	%
Allowance for loan losses			(2,150,229	)			(1,899,600	)			(1,757,892	)			(1,618,152	)			(1,510,079	)			13.2	%			42.4	%
Non-performing loans/net total loans			0.70	%			0.85	%			0.84	%			0.77	%			0.83	%			-18.4	%			-15.6	%
Non-performing priv. loans/net priv. loans			0.70	%			0.85	%			0.84	%			0.77	%			0.83	%			-18.4	%			-15.7	%
Allowance for loan losses/non-performing loans			271.06	%			243.26	%			248.32	%			262.66	%			251.62	%			11.4	%			7.7	%
Allowance for loan losses/net total loans			1.89	%			2.08	%			2.08	%			2.01	%			2.08	%			-9.1	%			-9.0	%

 

(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, 2017, the asset quality ratio (non-performing loans/total loans) was 0.7%, with a coverage ratio (provisions/non-performing loans) of 271.06%.

The non-performing ratio showed an improvement in relation to both the previous quarter, and the same quarter of 2016, evidencing a fall of 15 and 13 basis points, respectively, mainly due to the important growth of the loans portfolio.

On the other hand, the risk cost was 1.43%. The increase is explained by the higher generic provisions recorded during the quarter.

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

 

Evolution of provisions		Quarter ended																				% quarter ended 09-30-17 vs quarter ended
(in thousands of pesos)		09-30-17				06-30-17				03-31-17				12-31-16				09-30-16				06-30-17				09-30-16
Balance at the beginning of the quarter			1,908,023				1,765,131				1,626,924				1,518,843				1,421,720				8.1	%			34.2	%
Increase/decrease			503,013				356,386				323,969				331,013				226,335				41.1	%			122.2	%
Increase/decrease-Foreign exchange diff.			7,461				13,410				(4,188	)			4,630				2,374				-44.4	%			-214.3	%
Aplications / Reversals			(260,397	)			(226,904	)			(181,574	)			(227,562	)			(131,586	)			14.8	%			97.9	%
Balance at the end of the quarter			2,158,100				1,908,023				1,765,131				1,626,924				1,518,843				13.1	%			42.1	%

 

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Deposits

 

Total deposits		Quarter ended																				% quarter ended 09-30-17 vs quarter ended
(in thousands of pesos)		09-30-17				06-30-17				03-31-17				12-31-16				09-30-16				06-30-17				09-30-16
Deposits $ denominated			84,005,882				84,035,746				82,248,799				74,902,584				70,139,742				0.0	%			19.8	%
Current accounts			22,306,350				22,693,886				21,484,467				21,419,738				19,132,845				-1.7	%			16.6	%
Saving accounts			26,517,781				27,221,181				23,190,831				21,273,125				17,365,933				-2.6	%			52.7	%
Time deposits			33,114,593				32,209,592				35,197,959				30,079,381				31,865,941				2.8	%			3.9	%
Peso denominated			32,954,999				31,964,459				35,001,533				30,076,548				31,863,676				3.1	%			3.4	%
CER adjusted time deposits			159,594				245,133				196,426				2,833				2,265				-34.9	%			n/a
Investment Accounts			1,112				213				85,194				85,194				85,091				422.1	%			-98.7	%
Other			2,066,046				1,910,874				2,290,348				2,045,146				1,689,932				8.1	%			22.3	%
Deposits FX denominated			45,942,472				41,638,489				40,573,257				39,719,184				21,765,448				10.3	%			111.1	%
Current accounts			451,457				126,632				89,817				782,954				848,591				256.5	%			-46.8	%
Saving accounts			35,441,394				30,552,506				23,779,226				21,318,030				14,956,855				16.0	%			137.0	%
Time deposits			6,976,320				6,270,117				5,961,593				6,220,811				5,200,667				11.3	%			34.1	%
Other			3,073,301				4,689,234				10,742,621				11,397,389				759,335				-34.5	%			304.7	%
Total deposits			129,948,354				125,674,235				122,822,056				114,621,768				91,905,190				3.4	%			41.4	%

As of September 30, 2017, total deposits reached AR$ 129.9 billion, a rise of 3.4% during the quarter, and of 41.4% in the last twelve months.

Peso deposits remained stable in relation to the previous quarter, showing a growth of 19.8% in the last twelve months. Sight deposits fell 2.2% during the quarter, but grew 33.8 % year-over-year, whereas time deposits grew 2.8% during the quarter and 3.9% year-over-year. Sight deposits performance is affected by higher foreign exchange purchases from customers during the pre-elections period.

At the end of September 2017, deposits in foreign currency reached AR$ 45.9 billion (equivalent to USD 2.7 billion), representing 35.1% of the Bank’s total deposits.

Other Sources of Funds

 

Other funding sources		Quarter ended																				% quarter ended 09-30-17 vs quarter ended
(in thousands of pesos)		09-30-17				06-30-17				03-31-17				12-31-16				09-30-16				06-30-17				09-30-16
Lines from other banks			1,863,146				1,382,049				1,435,605				1,502,786				1,875,463				34.8	%			-0.7	%
Senior Bonds			1,680,030				2,115,473				2,056,274				2,211,078				2,093,095				-20.6	%			-19.7	%
Total other funding sources			3,543,176				3,497,522				3,491,879				3,713,864				3,968,558				1.3	%			-10.7	%

 

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CER (UVA) Mismatch

 

		Quarter ended																				D % Quarter ended 09/30/17 vs quarter ended
(in thousands of pesos except percentages)		09-30-17				06-30-17				03-3117				12-3116				09-30-16				06-30-16				09-30-16
CER adjusted assets			3,275,440				2,218,667				2,616,315				2,818,625				2,773,722				47.6	%			18.1	%
- Public bond portfolio			1,761,986				1,656,898				2,418,040				2,643,768				2,677,683				6.3	%			-34.2	%
- Private sector loans			1,265,246				448,609				146,371				47,525				2,901				182.0	%			43514.1	%
- Public sector loans			0				0				0				99,356				93,138				n/a				-100.0	%
- Other credits			248,208				113,160				51,904				27,976				0				119.3	%			n/a
CER adjusted deposits			159,594				245,133				196,426				2,833				2,265				-34.9	%			n/a
CER mismatch			3,115,846				1,973,534				2,419,889				2,815,792				2,771,457				57.9	%			12.4	%

Capitalization

 

Capitalization		Quarter ended																				% quarter ended 09-30-17 vs quarter ended
(in thousands of pesos)		09-30-17				06-30-17				03-31-17				12-31-16				09-30-16				06-30-17				09-30-16
Capital Stock			612,660				536,878				536,878				536,878				536,878				14.1	%			14.1	%
Issuance premiums			6,739,151				182,511				182,511				182,511				182,511				3592.5	%			3592.5	%
Adjustments to stockholders equity			312,979				312,979				312,979				312,979				312,979				0.0	%			0.0	%
Subtotal			7,664,790				1,032,368				1,032,368				1,032,368				1,032,368				642.4	%			642.4	%
Reserves on Profits			14,516,667				14,516,667				14,516,667				11,783,995				11,783,995				0.0	%			23.2	%
Unrealized valuation difference			2,457,355				1,322,775				1,605,770				3,643,672				3,061,267				85.8	%			-19.7	%
Total stockholders’ equity			24,638,812				16,871,810				17,154,805				16,460,035				15,877,630				46.0	%			55.2	%

In July 2017, BBVA Francés carried out a primary follow-on equity offering in Argentina and abroad, issuing 75,781,788 new ordinary shares. This resulted in an increase of approximately 400 basis points of the total capital ratio.

As of September 30, 2017 such ratio was 14.8%. The stockholders equity upon the close of the period totaled $ 24.6 billion.

 

Central Bank Requirements		Quarter ended																				% quarter ended 09-30-17 vs quarter ended
(in thousands of pesos)		09-30-17				06-30-17				03-31-17				12-31-16				09-30-16				06-30-17				09-30-16
CB Minimum Capital Requirements			14,393,076				11,608,879				11,206,375				10,577,441				9,406,443				24.0	%			53.0	%
CB Minimum Capital Requirements(a,b)			14,393,076				11,608,879				11,206,375				10,321,905				9,225,447				24.0	%			56.0	%
Increase in capital req. related to custody			—				—				—				255,536				180,996				n/a				-100.0	%
a) CB Minimum Capital Requirements			14,393,076				11,608,879				11,206,375				10,321,905				9,225,447				24.0	%			56.0	%
Allocated to Asset at Risk			11,661,200				9,046,865				8,785,277				7,926,163				7,017,244				28.9	%			66.2	%
Market Risk			317,338				287,776				270,773				291,744				211,525				10.3	%			50.0	%
Operational Risk			2,414,538				2,274,238				2,150,325				2,103,998				1,996,678				6.2	%			20.9	%
b) Min. Cap. required for the G.F.S. of the Pas-as-you-go System managed by the Argentine Republic			—				—				—				1,022,144				723,985				n/a				-100.0	%
1% of the securities in custody and book-entry notes			—				—				—				1,022,144				723,985				n/a				-100.0	%
Bank Capital			26,009,378				18,632,561				18,843,971				17,420,859				16,694,008				39.6	%			55.8	%
Ordinary Capital Level 1			24,767,163				17,451,690				17,674,906				16,698,101				16,056,616				41.9	%			54.2	%
Dedusctions Ordinary Capital Level 1			(634,085	)			(525,144	)			(465,878	)			(390,238	)			(360,327	)			20.7	%			76.0	%
Capital Level 2			1,522,575				1,260,472				1,169,850				1,112,996				997,719				20.8	%			52.6	%
Aditional Capital Level 1			353,725				445,543				465,093				—				—				-20.6	%			n/a
Excess over Required Capital			11,616,302				7,023,682				7,637,596				6,843,418				7,287,565				65.4	%			59.4	%
Capital Ratio (Central Bank rules)			14.8	%			13.1	%			13.8	%			13.8	%			14.8	%			12.7	%			0.0	%
Excess over Required Capital as a % of Shareholders’ Equity			47.1	%			28.5	%			31.0	%			40.6	%			42.5	%			65.4	%			11.0	%

 

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Conference Call

On Monday November 13, 2017 at 11:30 a.m. (Argentine time) a conference call will be held to comment on the quarter’s results.

Those who wish to participate should contact the following numbers:

0800-444-2930 (from Argentina)

+ 1 844-413-3973 (from the United States)

+ 1 412 902 6509 (from other countries)

Conference ID: BBVA

To access the webcast:

http://webcast.engage-x.com/Cover.aspx?PlatformId=FEX%2BWeXOT%2FCpl1KCiaH%2BmA%3D%3D

To request the Replay, please call

1-877-344-7529 (from United States)

1-412-317-0088 (from other countries)

 

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The replay will be available until Friday, November 24, 2017

Replay access code: 10113167

Internet

This press release is available on the web page of BBVA Francés.

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

 

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

BALANCE SHEET (in thousands of pesos)

 

		09-30-17				06-30-17				03-31-17				12-31-16				09-30-16
Cash and due from banks			27,947,327				37,048,209				41,149,362				48,226,105				30,296,084
Government and Private Securities			30,346,401				25,749,754				24,205,939				12,706,389				13,128,861
Holdings booked at fair value			14,618,707				6,992,766				5,646,590				4,274,229				3,291,490
Holdings booked at amortized cost			1,718,202				965,068				1,243,404				904,089				1,090
Listed Private Securities			313,479				235,863				221,870				153,181				94,299
Bills and Notes from the Central Bank			13,696,238				17,556,280				17,094,292				7,375,103				9,742,197
Less: Allowances			(225	)			(223	)			(217	)			(213	)			(215	)
Loans			111,676,202				89,518,146				82,911,605				78,889,921				71,196,602
Loans to the private & financial sector			111,675,935				89,517,907				82,911,449				78,791,102				71,103,266
Advances			10,542,482				9,503,576				9,470,393				9,546,565				10,789,904
Discounted and purchased notes			14,567,969				10,070,029				10,085,833				10,896,722				10,473,506
Secured with mortgages			2,937,234				2,071,739				1,892,840				1,889,443				1,866,569
Car secured loans			8,062,140				6,986,809				6,368,608				5,628,320				5,087,540
Personal loans			13,786,796				11,646,873				10,522,971				9,368,939				8,172,953
Credit cards			25,438,616				23,979,885				23,077,159				22,520,843				19,698,692
Loans to financial sector			2,319,472				2,327,295				1,866,408				1,846,787				1,848,480
Other loans (*)			35,096,861				23,976,984				20,536,695				17,754,130				13,704,420
Less: Unaccrued interest			(410,090	)			(312,439	)			(315,649	)			(329,346	)			(299,131	)
Plus: Interest & FX differences receivable			1,484,684				1,166,756				1,164,083				1,286,851				1,270,412
Less: Allowance for loan losses			(2,150,229	)			(1,899,600	)			(1,757,892	)			(1,618,152	)			(1,510,079	)
Public Sector loans			267				239				156				98,819				93,336
Principal			266				237				155				8,786				8,895
Plus: Interest & FX differences receivable			1				2				1				90,033				84,441
Other banking receivables			19,387,164				9,771,087				26,190,719				2,427,906				7,890,155
Repurchase agreements			5,135,311				3,039,700				9,784,973				—				305,269
Unlisted private securities			302,091				340,851				249,926				325,925				297,050
Other banking receivables			13,957,633				6,398,959				16,163,059				2,110,753				7,296,600
Less: provisions			(7,871	)			(8,423	)			(7,239	)			(8,772	)			(8,764	)
Investments in other companies			606,150				514,077				539,825				510,878				499,226
Intangible assets			407,765				354,534				331,419				315,811				286,330
Goodwill			3,206				3,296				3,386				3,476				3,566
Organization and development charges			404,559				351,238				328,033				312,335				282,764
Other assets			9,651,880				9,459,638				8,999,121				8,638,393				7,592,656
Total Assets			200,022,889				172,415,445				184,327,990				151,715,403				130,889,914
Deposits			129,948,354				125,674,235				122,822,056				114,621,768				91,905,190
Current accounts			22,757,807				22,820,518				21,574,284				22,202,692				19,981,436
Saving accounts			61,959,175				57,773,687				46,970,057				42,591,155				32,322,788
Time deposits			40,090,913				38,479,709				41,159,552				36,300,192				37,066,608
Investment Accounts			1,112				213				85,194				85,194				85,091
Rescheduled deposits CEDROS			1,951				1,951				1,951				1,959				2,224
Other deposits			5,137,396				6,598,157				13,031,018				13,440,576				2,447,043
Other banking Liabilities			36,514,676				21,152,694				37,891,164				13,785,069				17,131,159
Other provisions			2,775,198				2,587,759				1,317,224				1,375,154				1,169,099
Other contingencies			2,774,094				2,587,159				1,316,606				1,374,573				1,168,415
Guarantees			1,104				600				618				581				684
Other liabilities			5,562,823				5,564,345				4,607,529				4,856,020				4,423,620
Minority interest			583,026				564,602				535,212				617,357				383,216
Total Liabilities			175,384,077				155,543,635				167,173,185				135,255,368				115,012,284
Total Stockholders´ equity			24,638,812				16,871,810				17,154,805				16,460,035				15,877,630
Total liabilities + stockholders’ equity			200,022,889				172,415,445				184,327,990				151,715,403				130,889,914

 

(*)	Includes balances related to overnight operations celebrated with foreign correspondent banks

 

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

INCOME STATEMENT (in thousands of pesos)

 

		09-30-17				06-30-17				03-31-17				12-31-16				09-30-16
Financial income			6,322,099				5,637,429				5,280,611				5,540,183				5,472,394
Interest on Loans Granted to the Financial Sector			124,005				109,189				90,605				113,359				125,081
Interest on Overdraft			737,188				679,137				769,018				843,578				954,753
Interest on Discounted and purchased notes			530,848				453,878				463,665				503,617				519,273
Interest on Mortgages			93,877				86,063				88,634				92,677				100,347
Interest on Car Secured Loans			292,115				296,662				298,138				280,469				277,860
Interest on Credit Card Loans			1,020,160				1,029,208				1,064,647				1,048,804				982,507
Interest on Financial Leases			110,867				110,471				107,085				108,107				109,609
Interest on Other Loans			1,457,403				1,274,390				1,178,537				1,106,035				1,060,249
From Other Banking receivables			1,715				852				548				185				398
Interest on Government Guaranteed Loans Decree 1387/01			—				—				1,081				6,810				10,728
Income from Securities and Short Term Investments			1,032,478				778,964				592,264				801,184				794,612
CER			112,942				155,398				100,285				97,613				168,496
Foreign exchange difference			634,046				431,991				306,004				458,312				240,758
Other			174,455				231,226				220,100				79,433				127,723
Financial expenses			(2,351,616	)			(2,204,490	)			(2,216,835	)			-2,287,923				-2,636,033
Interest on Current Account Deposits			(191,736	)			(95,546	)			(14,811	)			—				—
Interest on Saving Account Deposits			(8,785	)			(7,962	)			(7,760	)			(7,817	)			(8,710	)
Interest on Time Deposits			(1,443,836	)			(1,457,271	)			(1,534,706	)			(1,618,512	)			(2,031,231	)
Interest on Other Banking Liabilities			(193,608	)			(207,362	)			(215,259	)			(222,302	)			(193,998	)
Other interests (includes Central Bank)			(231	)			(312	)			(629	)			(674	)			(881	)
CER			(11,463	)			(15,410	)			(1,915	)			(126	)			(86	)
Bank Deposit Guarantee Insurance system mandatory contributions			(55,066	)			(52,593	)			(48,777	)			(40,376	)			(37,514	)
Mandatory contributions and taxes on interest income			(400,531	)			(358,932	)			(355,405	)			(352,205	)			(340,249	)
Other			(46,360	)			(9,102	)			(37,573	)			(45,911	)			(23,364	)
Net financial income			3,970,483				3,432,939				3,063,776				3,252,260				2,836,361
Provision for loan losses			(503,013	)			(356,386	)			(323,969	)			(331,013	)			(226,335	)
Income from services, net of other operating expenses			1,561,617				1,191,061				1,234,102				1,076,422				1,300,901
Administrative expenses			(3,155,954	)			(3,027,058	)			(2,897,619	)			(2,860,570	)			(2,373,439	)
Income (loss) from equity investments			118,217				155,131				19,491				17,083				20,132
Net Other income			(121,621	)			(1,168,459	)			855,111				(141,517	)			(4,163	)
Income (loss) from minority interest			(18,425	)			(29,601	)			(27,853	)			(13,547	)			(24,753	)
Income before tax			1,851,304				197,627				1,923,039				999,118				1,528,704
Income tax			(716,724	)			(480,622	)			(317,269	)			(416,713	)			(595,779	)
Net income			1,134,580				(282,995	)			1,605,770				582,405				932,925

 

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

 

		09-30-2017				06-30-17				03-31-17				12-31-16				09-30-16
Cash and due from banks			27,947,332				37,048,209				41,149,363				48,226,107				30,296,084
Government Securities			30,376,295				25,780,524				24,238,431				12,738,809				13,166,151
Loans			111,676,199				89,518,146				82,911,605				78,889,921				71,196,602
Other Banking Receivables			19,387,164				9,771,087				26,190,719				2,427,906				7,891,047
Assets Subject to Financial Leasing			2,213,865				2,177,021				2,088,865				2,046,971				2,110,038
Investments in other companies			600,609				509,594				535,221				507,625				493,463
Other assets			7,855,448				7,643,197				7,250,043				6,915,372				5,779,511
Total Assets			200,056,912				172,447,778				184,364,247				151,752,711				130,932,896
Deposits			129,947,789				125,674,032				122,822,030				114,621,753				91,904,217
Other banking liabilities			36,514,712				21,152,694				37,891,313				13,785,682				17,135,935
Minority interest			587,767				568,437				539,151				620,141				388,147
Other liabilities			8,367,832				8,180,805				5,956,948				6,265,100				5,626,967
Total Liabilities			175,418,100				155,575,968				167,209,442				135,292,676				115,055,266
Total Stockholders´ Equity			24,638,812				16,871,810				17,154,805				16,460,035				15,877,630
Stockholders´ Equity + Liabilities			200,056,912				172,447,778				184,364,247				151,752,711				130,932,896
Net Income
		09-30-17				06-30-17				03-31-17				12-31-16				09-30-16
Net Financial Income			3,972,703				3,433,241				3,066,449				3,253,700				2,838,936
Provision for loan losses			(503,013	)			(356,386	)			(323,969	)			(331,013	)			(226,335	)
Net Income from Services			1,561,617				1,191,061				1,234,102				1,076,422				1,300,901
Administrative expenses			(3,157,604	)			(3,029,516	)			(2,899,037	)			(2,856,270	)			(2,379,655	)
Net Other Income			(3,069	)			(1,011,209	)			874,626				(132,186	)			18,012
Income Before Tax			1,870,634				227,191				1,952,171				1,010,653				1,551,859
Income Tax			(716,724	)			(480,689	)			(317,392	)			(416,849	)			(595,909	)
Net income			1,153,910				(253,498	)			1,634,779				593,804				955,950
Minoritary Interest			(19,330	)			(29,497	)			(29,009	)			(11,399	)			(23,025	)
Net income for Quarter			1,134,580				(282,995	)			1,605,770				582,405				932,925

 

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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, 2017				By:		/s/ Ignacio Sanz y Arcelus
						Name:		Ignacio Sanz y Arcelus
						Title:		Chief Financial Officer