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 August 2018
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
BBVA Banco Francés S.A.
TABLE OF CONTENTS
Item 1
Buenos Aires, August 23, 2018 - BBVA Francés (NYSE: BFR.N; BCBA: FRA.BA;
LATIBEX: BFR.LA) reports consolidated second quarter results for the
January-December 2018 fiscal year.
The consolidated financial statements as of June 30, 2018 and as of March 31, 2018 are presented in accordance with Communication
“A” 6114 of the Central Bank of Argentina (BCRA) (“financial statements under IFRS regulations”). For comparative purposes, the figures of the second quarter of 2017 are presented in accordance with IFRS.
Highlights of the Quarter
|
|
•
|
|
BBVA Francés reached a net income of AR$ 2,123.9 million in the second quarter of 2018, 37.4% higher
than the net income registered in the previous quarter and 112.9% compared to the second quarter of 2017, restated for comparative purposes.
|
|
|
•
|
|
The return on average assets (ROA) reached 3.5% and the return on average equity (ROE) was 26.4% compared to 2.9%
and 20.3%, respectively in the previous quarter.
|
|
|
•
|
|
Net operating income reached AR$ 8,111.7 million, increasing 16.1% compared to the previous quarter, and
52.6% compared to the second quarter of 2017.
|
|
|
•
|
|
Operating expenses reached AR$ 5,212.9 million, showing an increase of 8.7% and 31.2% compared to same
periods, respectively.
|
|
|
•
|
|
Private sector loan portfolio grew 16.3% in the second quarter, and 82.6% in the last twelve months.
|
|
|
•
|
|
BBVA Francés maintains good asset quality indicators in an environment that shows certain signs of
deterioration. As of June 30, 2018, the asset quality ratio
(Non-Performing
Loans/Total loans) stood at 0.86%, compared to 0.72% in the previous quarter, with a coverage of 223.4% (Total allowances/NPL).
|
|
|
•
|
|
Total deposits grew 20.6% during the quarter and 53.6% yearly.
|
|
|
•
|
|
As of June 30, 2018, BBVA Francés had a total capital ratio of 14.6% (Tier I 13.4%), which represents
an excess of AR$ 15,003.7 million or 78.1% over the minimum required.
|
|
|
•
|
|
As of June 30, 2018, liquid assets accounted for 42.6% of the Bank’s total deposits.
|
|
|
•
|
|
The bank continued to increase its client base, reaching a total of 2.8 million clients
|
|
|
•
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|
The Annual Ordinary and Extraordinary Shareholders Meeting, held on April 10, 2018 approved a cash dividend
payment for a total amount of AR$ 970 million; such payment was effective on May 9, 2018.
|
|
|
•
|
|
As of May 17, 2018 the “Comisión Nacional de Valores” (CNV) authorized the extension for
five years of the Global Program of Negotiable Bonds and the increase of the maximum amount up to USD 1,500 million or the equivalent in other currency, and the modification of the terms and conditions of the program to allow the emission of
bonds in UVAs.
|
Other events
|
|
•
|
|
On July 5, 2018 BBVA Francés sold to REPAR S.A the properties located at Reconquista 40, Bolivar 502,
Maipu 356 (unit 16), Perón 362 and México 628 (unit 10) and Reconquista 281, all of them located in the City of Buenos Aires.
|
Regulatory Changes
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|
•
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|
In May 2018, the Central Bank of Argentina (BCRA) established, through its Communication “A” 6501, that
as of May 7, 2018 the Net Global FX position when converted to pesos at the applicable exchange rate on a daily basis cannot be greater than 10% of the previous month integrated capital (RPC) or the Bank’s own liquid assets, whichever is
less. In addition, on June 21, 2018, the limit was decreased to 5%.
|
|
|
•
|
|
The BCRA also established that, for the period
May-July
2018, compliance
with the minimum cash requirement would be made on a quarterly basis. For the month of May, compliance with the minimum daily requirement was eliminated.
|
|
|
•
|
|
On June 18, 2018 the BCRA through its Communication ”A” 6526 increased the minimum cash
requirement in two tranches, 3% from 21 June 2018 and 2% from 18 July 2018, such requirement could be integrated with Treasury bonds, which will mature on November 2020 at a rate of 26%. Subsequently, it increased the requirement in other
two occasions, by 3% on July 23, 2018 through its Communication “A” 6533, and by another 3% on August 16, 2018, through Communication “A” 6550. In both cases, integration with Treasury bonds is not allowed to comply
with the requirement.
|
Economic Environment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Quarter ended
|
|
|
Main Macroeconomic figures
|
|
06.30.18
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
GDP
|
|
var % y/y
|
|
|
n/d
|
|
|
|
3.6
|
%
|
|
|
2.9
|
%
|
|
Inflation (1) End of period
|
|
var % y/y
|
|
|
29.5
|
%
|
|
|
25.3
|
%
|
|
|
21.8
|
%
|
|
|
|
var % q/q
|
|
|
8.8
|
%
|
|
|
6.6
|
%
|
|
|
5.4
|
%
|
|
CER
|
|
Quarterly adjustment
|
|
|
7.4
|
%
|
|
|
7.0
|
%
|
|
|
7.0
|
%
|
|
Exchange Rate
|
|
Pesos x US$
|
|
|
28.86
|
|
|
|
20.14
|
|
|
|
16.60
|
|
|
Reserves
|
|
US$
|
|
|
61,881
|
|
|
|
61,726
|
|
|
|
47,995
|
|
|
Fiscal Balance
|
|
Primary - billion of $
|
|
|
(74,824
|
)
|
|
|
(31,001
|
)
|
|
|
(102,942
|
)
|
|
Trade Balance
|
|
US$ (billion)
|
|
|
(2,620
|
)
|
|
|
(2,481
|
)
|
|
|
(1,438
|
)
|
|
Total Private Loans
|
|
var % q/q
|
|
|
15.1
|
%
|
|
|
8.8
|
%
|
|
|
11.7
|
%
|
|
|
|
var % y/y
|
|
|
60.9
|
%
|
|
|
56.2
|
%
|
|
|
40.4
|
%
|
|
Total Private Deposits
|
|
var % q/q
|
|
|
18.8
|
%
|
|
|
3.5
|
%
|
|
|
7.1
|
%
|
|
|
|
var % y/y
|
|
|
45.6
|
%
|
|
|
31.4
|
%
|
|
|
38.7
|
%
|
|
Interest rate
|
|
Monetary policy (eop)
|
|
|
40.0
|
%
|
|
|
27.3
|
%
|
|
|
26.3
|
%
|
|
|
|
Badlar (weighted avg. quarterly)
|
|
|
27.1
|
%
|
|
|
22.8
|
%
|
|
|
19.5
|
%
|
|
(1)
|
IPC National since 1Q17
|
The international economy remains subject to the tensions of disparate forces, including good economic performance, as well as potentially negative factors
such as protectionist measures and the impact of the increase in the price of oil over inflation. In an environment with higher risk aversion, financial tensions in emerging countries have increased generally, due to the depreciation of currencies
and the widening of risk premiums, although countries with higher external financing needs, such as Argentina, have been affected negatively.
This
context of closed capital markets resulted in financial tensions in the local currency market since May.
With the aim of achieving an orderly adjustment
process, in June 2018, the Government signed a
stand-by
arrangement with the International Monetary Fund (IMF) for USD 50 billion, subject to compliance with stricter fiscal targets; increased net
international reserves and the commitment to reinforce the independence of the BCRA.
Nevertheless, the volatility in the exchange market has continued,
with an accumulated depreciation of the peso of 45.6% since December 2017, leading the BCRA to raise the interest rate up to 45% and to deepen monetary astringency through interventions in the secondary market of short-term securities known as
Lebacs and the increase of cash reserves.
- 2 -
As a result of the drought during the first moths of the year and of contractionary fiscal and monetary policies,
the economy suffered a contraction beginning in the second quarter of 2018.
In addition, the depreciation of the peso caused an acceleration of the
inflation that averaged almost 3% monthly in the second quarter of the year.
Regarding the financial system, this new scenario resulted in an abrupt
increase in interest rates in time deposits as well as in credit lines and fixed income instruments.
Such increase in rates, added to the higher
financial uncertainty and the increase in the cash reserve requirements implemented by the BCRA (1,100 bp) has contributed to a slowdown in the pace of growth of the financial intermediation activity with the private sector in real terms.
It should be noted that in this environment, banking deposits maintained a good performance although slowing the pace of growth, and that the financial system
continued with solid levels of liquidity and solvency.
Presentation of the Information
|
|
•
|
|
The consolidated financial statements as of June 30, 2018 are presented in accordance with Communication
“A” 6114 of the Central Bank of Argentina (BCRA) (financial statements under IFRS regulations). For comparative purposes, the amounts for previous quarters included in the text are presented in accordance with IFRS.
|
|
|
•
|
|
The information in this press release contains unaudited financial information that consolidates, line item by
line item, all of the banking activities of BBVA Francés (Volkswagen Financial Services, Francés Valores and Francés Administradora de Inversiones). As of the first quarter of 2018, the Bank’s share interest in PSA Finance
is no longer disclosed on a consolidated basis but is shown as “Investments in associates” (recorded under the equity method), and the corresponding results are included in “Income from associates”, as Rombo Compañia
Financiera.
|
|
|
•
|
|
The balances in foreign currency as of June 30, 2018 were converted into pesos at the reference exchange
rate published by the BCRA for that date (AR$ 28.8617/USD).
|
|
|
•
|
|
The information in this press release may differ from the information published by the BBVA Group for Argentina,
which is prepared according to IFRS for all BBVA Group affiliates.
|
- 3 -
Quarterly Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
D
% Quarter ended 06-30-18
|
|
|
Condensed Income Statement (1)
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
vs Quarter ended
|
|
|
In thousands of pesos except EPS. ADS
|
|
06-30-18
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
Net interest income
|
|
|
6,018,130
|
|
|
|
5,084,027
|
|
|
|
3,312,411
|
|
|
|
18.4
|
%
|
|
|
81.7
|
%
|
|
Net fee income
|
|
|
756,103
|
|
|
|
679,719
|
|
|
|
618,335
|
|
|
|
11.2
|
%
|
|
|
22.3
|
%
|
|
Net income of financial instruments
|
|
|
(559,281
|
)
|
|
|
330,347
|
|
|
|
716,167
|
|
|
|
-269.3
|
%
|
|
|
-178.1
|
%
|
|
Result from assets at amortised cost
|
|
|
(68,298
|
)
|
|
|
1,367
|
|
|
|
(496
|
)
|
|
|
n/a
|
|
|
|
n/a
|
|
|
Foreign exchange difference
|
|
|
2,009,608
|
|
|
|
695,250
|
|
|
|
432,105
|
|
|
|
189.0
|
%
|
|
|
365.1
|
%
|
|
Other operating income
|
|
|
759,728
|
|
|
|
1,742,608
|
|
|
|
662,035
|
|
|
|
-56.4
|
%
|
|
|
14.8
|
%
|
|
Provision for loan losses
|
|
|
(804,248
|
)
|
|
|
(526,194
|
)
|
|
|
(418,545
|
)
|
|
|
52.8
|
%
|
|
|
92.2
|
%
|
|
Net operating income
|
|
|
8,111,742
|
|
|
|
8,007,124
|
|
|
|
5,322,012
|
|
|
|
1.3
|
%
|
|
|
52.4
|
%
|
|
Personnel expenses
|
|
|
(1,929,968
|
)
|
|
|
(1,957,189
|
)
|
|
|
(1,634,027
|
)
|
|
|
-1.4
|
%
|
|
|
18.1
|
%
|
|
Administrative expenses
|
|
|
(1,646,632
|
)
|
|
|
(1,508,192
|
)
|
|
|
(1,275,036
|
)
|
|
|
9.2
|
%
|
|
|
29.1
|
%
|
|
Depreciation and amortization of assets
|
|
|
(207,860
|
)
|
|
|
(199,042
|
)
|
|
|
(180,054
|
)
|
|
|
4.4
|
%
|
|
|
15.4
|
%
|
|
Other operating expenses
|
|
|
(1,428,480
|
)
|
|
|
(2,153,710
|
)
|
|
|
(885,543
|
)
|
|
|
-33.7
|
%
|
|
|
61.3
|
%
|
|
Operating Expenses
|
|
|
(5,212,940
|
)
|
|
|
(5,818,133
|
)
|
|
|
(3,974,660
|
)
|
|
|
-10.4
|
%
|
|
|
31.2
|
%
|
|
Operating income
|
|
|
2,898,802
|
|
|
|
2,188,991
|
|
|
|
1,347,352
|
|
|
|
32.4
|
%
|
|
|
115.1
|
%
|
|
Income from associates and joint ventures
|
|
|
121,443
|
|
|
|
39,877
|
|
|
|
174,566
|
|
|
|
204.5
|
%
|
|
|
-30.4
|
%
|
|
Net income before income tax
|
|
|
3,020,245
|
|
|
|
2,228,868
|
|
|
|
1,521,918
|
|
|
|
35.5
|
%
|
|
|
98.4
|
%
|
|
Income tax from continuing operations
|
|
|
(866,387
|
)
|
|
|
(662,724
|
)
|
|
|
(516,842
|
)
|
|
|
30.7
|
%
|
|
|
67.6
|
%
|
|
Net income including non-controlling shareholders
|
|
|
2,153,858
|
|
|
|
1,566,144
|
|
|
|
1,005,076
|
|
|
|
37.5
|
%
|
|
|
114.3
|
%
|
|
Net income attributable to non-controlling shareholders
|
|
|
29,938
|
|
|
|
20,846
|
|
|
|
7,658
|
|
|
|
43.6
|
%
|
|
|
290.9
|
%
|
|
Net Income
|
|
|
2,123,920
|
|
|
|
1,545,298
|
|
|
|
997,418
|
|
|
|
37.4
|
%
|
|
|
112.9
|
%
|
|
Other comprehensive income
|
|
|
64,125
|
|
|
|
(19,189
|
)
|
|
|
(78,302
|
)
|
|
|
-434.2
|
%
|
|
|
-181.9
|
%
|
|
Total net income
|
|
|
2,188,045
|
|
|
|
1526,109
|
|
|
|
919,116
|
|
|
|
43.4
|
%
|
|
|
138.1
|
%
|
|
Earnings per share (2)
|
|
|
3.47
|
|
|
|
2.52
|
|
|
|
1.63
|
|
|
|
37.4
|
%
|
|
|
112.9
|
%
|
|
Earnings per ADS (3)
|
|
|
10.40
|
|
|
|
7.57
|
|
|
|
4.88
|
|
|
|
37.4
|
%
|
|
|
112.9
|
%
|
|
(1)
|
Exchange Rate: $ 28,8617 = u$s 1
|
|
(2)
|
Assumes 612,659,638 ordinary shares for the third
|
|
(3)
|
Each ADS represents three ordinary shares
|
In the second quarter of 2018, BBVA Francés reached a net income of AR$ 2,123.9 million, registering an increase of 37.4% compared to the previous
quarter and of 112.9% compared to the second quarter of 2017. The accumulated net income for the first six months of the year reached AR$ 3,669.2 million, 138.4% over the accumulated result of the first half of 2017.
Restated net income for the second quarter of 2017 reached AR$ 997.4 million compared to the loss of AR$ 283 million recorded twelve months before,
the difference is mainly due to the transfer, from the second quarter to the first quarter of 2017, of the provision of AR$ 1,186 million related to the result originated by the application of the inflation adjustment on the 2016 income tax
calculation, as was reported in the previous earnings release.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
D
bp Quarter ended 06/30/18
|
|
|
Main figures
|
|
Quarter ended
|
|
|
vs quarter ended
|
|
|
|
|
06-30-18
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
ROA (Average Assets) (1)
|
|
|
3.5
|
%
|
|
|
2.9
|
%
|
|
|
2.4
|
%
|
|
|
62
|
|
|
|
117
|
|
|
Accumulated ROA
|
|
|
3.0
|
%
|
|
|
|
|
|
|
1.8
|
%
|
|
|
|
|
|
|
125
|
|
|
ROE (Average Shareholders’ Equity) (1)
|
|
|
26.4
|
%
|
|
|
20.3
|
%
|
|
|
20.0
|
%
|
|
|
611
|
|
|
|
644
|
|
|
Accumulated ROE
|
|
|
22.9
|
%
|
|
|
|
|
|
|
12.7
|
%
|
|
|
|
|
|
|
1,020
|
|
|
NIM (1)(2)
|
|
|
11.6
|
%
|
|
|
12.2
|
%
|
|
|
13.7
|
%
|
|
|
(66
|
)
|
|
|
(213
|
)
|
|
NIM with foreign exchange difference (1)(2)
|
|
|
15.0
|
%
|
|
|
14.1
|
%
|
|
|
15.3
|
%
|
|
|
90
|
|
|
|
(33
|
)
|
|
Efficiency ratio (3)
|
|
|
49.4
|
%
|
|
|
56.7
|
%
|
|
|
62.7
|
%
|
|
|
(729
|
)
|
|
|
(1,323
|
)
|
|
Accumulated Efficiency ratio
|
|
|
52.8
|
%
|
|
|
|
|
|
|
64.5
|
%
|
|
|
|
|
|
|
(1,173
|
)
|
|
(2)
|
NIM: ((Net interest income + Gross income tax NII+ Cost of deposits insurance) + (Net income of financial
instruments + Results from assets at amortised cost - Non deliverable forward )) / Interest Earning Assets
|
|
(3)
|
(Personnel and administrative expenses + Depreciations and amortizations) / ((Net interest income + Gross
Income Tax + Cost of the deposits insurance) + (Fee income + Net income of financial instruments + Results from assets at amortised cost + FX Difference + Fees included in other operating income))
|
- 4 -
The annualized return on assets (ROA) of the second quarter of 2018 reached 3.5% compared to 2.9% published in
the previous quarter, while return on equity (ROE) was 26.4% compared to 20.3% published in the previous quarter.
Net Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
D
% Quarter ended 06/30/18 vs
|
|
|
Net operating Income
|
|
Quarter ended
|
|
|
Quarter ended
|
|
|
in thousands of pesos
|
|
06-30-18
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
Net interest Income
|
|
|
6,018,130
|
|
|
|
5,084,027
|
|
|
|
3,312,411
|
|
|
|
18.4
|
%
|
|
|
81.7
|
%
|
|
Net fee income
|
|
|
756,103
|
|
|
|
679,719
|
|
|
|
618,335
|
|
|
|
11.2
|
%
|
|
|
22.3
|
%
|
|
Net income of financial instruments
|
|
|
(559,281
|
)
|
|
|
330,347
|
|
|
|
716,167
|
|
|
|
-269.3
|
%
|
|
|
-178.1
|
%
|
|
Result from assets at amortised cost
|
|
|
(68,298
|
)
|
|
|
1,367
|
|
|
|
(496
|
)
|
|
|
n/a
|
|
|
|
n/a
|
|
|
Foreign exchange difference
|
|
|
2,009,608
|
|
|
|
695,250
|
|
|
|
432,105
|
|
|
|
189.0
|
%
|
|
|
365.1
|
%
|
|
Other operating income
|
|
|
759,728
|
|
|
|
1,742,608
|
|
|
|
662,035
|
|
|
|
-56.4
|
%
|
|
|
14.8
|
%
|
|
Provision for loan losses
|
|
|
(804,248
|
)
|
|
|
(526,194
|
)
|
|
|
(418,545
|
)
|
|
|
52.8
|
%
|
|
|
92.2
|
%
|
|
Net operating income
|
|
|
8,111,742
|
|
|
|
8,007,124
|
|
|
|
5,322,012
|
|
|
|
1.3
|
%
|
|
|
52.4
|
%
|
Net operating income reached AR$ 8,111.7 million, increasing 16.1% compared to the previous quarter and 52.6% compared to
the second quarter of 2017.
For the purpose of the calculation of the quarterly variation AR$ 1,021.5 million registered in the previous quarter in
the line “Other operating income” were deducted, as a consequence of calculating the income tax for the 2017 fiscal year considering the effects of inflation, which are provisioned by the same amount in “Other operating
expenses”.
The items that make up net operating income are disclosed in more detail below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
D
% Quarter ended
|
|
|
Net Interest Income
|
|
Quarter Ended
|
|
|
06/30/18 vs Quarter ended
|
|
|
(in thousands of pesos)
|
|
06-30-18
|
|
|
03-31-18
|
|
|
06-30-18
|
|
|
03-31-18
|
|
|
06-30-18
|
|
|
Interest Income
|
|
|
9,525,300
|
|
|
|
7,892,864
|
|
|
|
5,000,705
|
|
|
|
20.7
|
%
|
|
|
90.5
|
%
|
|
Loan interest income
|
|
|
7,402,591
|
|
|
|
6,294,049
|
|
|
|
4,541,473
|
|
|
|
17.6
|
%
|
|
|
63.0
|
%
|
|
Income from adjustments (CER/UVA)
|
|
|
513,337
|
|
|
|
332,413
|
|
|
|
155,399
|
|
|
|
54.4
|
%
|
|
|
230.3
|
%
|
|
Income from Public Securities
|
|
|
1,187,403
|
|
|
|
952,624
|
|
|
|
118,405
|
|
|
|
24.6
|
%
|
|
|
n/a
|
|
|
Others
|
|
|
421,969
|
|
|
|
313,778
|
|
|
|
185,428
|
|
|
|
34.5
|
%
|
|
|
127.6
|
%
|
|
Interest Expenses
|
|
|
-3,507,170
|
|
|
|
-2,808,837
|
|
|
|
-1,688,294
|
|
|
|
24.9
|
%
|
|
|
107.7
|
%
|
|
Interest Expenses
|
|
|
-3,250,544
|
|
|
|
-2,650,433
|
|
|
|
-1,672,884
|
|
|
|
22.6
|
%
|
|
|
94.3
|
%
|
|
Expenses from adjustments (CER/UVA)
|
|
|
-256,626
|
|
|
|
-158,404
|
|
|
|
-15,410
|
|
|
|
62.0
|
%
|
|
|
n/a
|
|
|
Net Income Interest
|
|
|
6,018,130
|
|
|
|
5,084,027
|
|
|
|
3,312,411
|
|
|
|
18.4
|
%
|
|
|
81.7
|
%
|
Net interest income grew by 18.4% compared to the previous quarter and 81.7% compared to the second quarter of 2017.
Compared to the previous quarter, interest income increased 20.7% whereas interest expenses grew 24.9% mainly due to an abrupt rise in the interest rate that
occurred starting in May.
Net interest income recorded a positive performance despite the shorter average term of time deposits, mainly due to the short
duration of the fix income portfolio and a large part of the commercial loan portfolio.
NIM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Earning Assets & Interest-Bearing
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
|
|
|
Liabilities $ + USD
|
|
06-30-18
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
(Averege in thouhand of AR$)
|
|
Capital
|
|
|
Rate
|
|
|
Capital
|
|
|
Rate
|
|
|
|
|
|
|
|
|
Interest-Earning Assets
|
|
|
175,925,115
|
|
|
|
20.9
|
%
|
|
|
158,676,684
|
|
|
|
19.2
|
%
|
|
|
106,177,951
|
|
|
|
19.6
|
%
|
|
Interest-Bearing Liabilities
|
|
|
138,721,270
|
|
|
|
10.0
|
%
|
|
|
124,753,037
|
|
|
|
8.9
|
%
|
|
|
85,211,913
|
|
|
|
8.0
|
%
|
|
NIM without foreign exchange differences
|
|
|
11.56
|
%
|
|
|
|
|
|
|
12.22
|
%
|
|
|
|
|
|
|
13.69
|
%
|
|
|
|
|
|
NIM including foreign exchange differences
|
|
|
14.99
|
%
|
|
|
|
|
|
|
14.09
|
%
|
|
|
|
|
|
|
15.32
|
%
|
|
|
|
|
|
NIM $ without foreign exchange differences
|
|
|
14.64
|
%
|
|
|
|
|
|
|
15.65
|
%
|
|
|
|
|
|
|
16.46
|
%
|
|
|
|
|
|
NIM USD without foreign exchange differences
|
|
|
3.85
|
%
|
|
|
|
|
|
|
2.83
|
%
|
|
|
|
|
|
|
1.87
|
%
|
|
|
|
|
- 5 -
The net interest margin (NIM) including the results for foreign exchange differences increased 90 bp in the
quarter, up to 14.99%, while net of this effect, it registered a decrease of 66 bp to 11.56%, of which 20 bp corresponds to the change of currency mix, consequence of the greater weight of assets in dollars as a result of the devaluation of the
peso.
The NIM in local currency (without FX differences) was 14.7%, decreasing by 101 bp, mainly due to the higher pace of increase in the rate for
liabilities and the negative result of the interest rate swaps.
The NIM in foreign currency increased 102 bp, up to 3.85% mainly on higher loans rates.
The following table shows return on assets and cost of liabilities by currency: in pesos and dollars.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Earning Assets & Interest-Bearing
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
|
|
|
Liabilities $
|
|
06-30-18
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
(Averege in thouhand of AR$)
|
|
Capital
|
|
|
Rate
|
|
|
Capital
|
|
|
Rate
|
|
|
Capital
|
|
|
Rate
|
|
|
Interest-Earning Assets
|
|
|
125,671,511
|
|
|
|
28.1
|
%
|
|
|
116,214,892
|
|
|
|
25.3
|
%
|
|
|
85,899,552
|
|
|
|
23.6
|
%
|
|
Public sector instruments
|
|
|
16,097,421
|
|
|
|
31.6
|
%
|
|
|
17,074,738
|
|
|
|
27.1
|
%
|
|
|
15,203,478
|
|
|
|
22.4
|
%
|
|
Loans
|
|
|
108,949,580
|
|
|
|
27.6
|
%
|
|
|
98,088,733
|
|
|
|
25.1
|
%
|
|
|
64,125,816
|
|
|
|
23.9
|
%
|
|
Other interest-earning assets
|
|
|
624,511
|
|
|
|
29.3
|
%
|
|
|
1,051,420
|
|
|
|
21.5
|
%
|
|
|
6,570,258
|
|
|
|
23.6
|
%
|
|
Interest-Bearing Liabilities
|
|
|
80,458593
|
|
|
|
17.2
|
%
|
|
|
76,900,411
|
|
|
|
0.0
|
%
|
|
|
56,758,527
|
|
|
|
10.8
|
%
|
|
Saving Accounts
|
|
|
2 5,537,725
|
|
|
|
0.2
|
%
|
|
|
26,907,592
|
|
|
|
0.2
|
%
|
|
|
20,146,700
|
|
|
|
0.1
|
%
|
|
Time Deposits
|
|
|
44,114,S43
|
|
|
|
24.4
|
%
|
|
|
40,548,320
|
|
|
|
21.5
|
%
|
|
|
32,333,089
|
|
|
|
16.3
|
%
|
|
Current accounts with interest
|
|
|
5,670,911
|
|
|
|
28.2
|
%
|
|
|
5,420,745
|
|
|
|
21.7
|
%
|
|
|
2,226,348
|
|
|
|
18.4
|
%
|
|
Debt Securities
|
|
|
1,772,129
|
|
|
|
30.2
|
%
|
|
|
1,902,136
|
|
|
|
26.2
|
%
|
|
|
1,594,000
|
|
|
|
22.9
|
%
|
|
Other interest-bearing liabilities
|
|
|
3,062,885
|
|
|
|
29.2
|
%
|
|
|
2,121,619
|
|
|
|
25.5
|
%
|
|
|
458,390
|
|
|
|
19.5
|
%
|
|
|
|
|
|
|
Interest-Earning Assets & Interest-Bearing
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
|
|
|
Liabilities USD
|
|
06-30-18
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
(Averege in thouhand of AR$)
|
|
Capital
|
|
|
Rate
|
|
|
Capital
|
|
|
Rate
|
|
|
Capital
|
|
|
Rate
|
|
|
Interest-Earning Assets
|
|
|
50,253,604
|
|
|
|
4.4
|
%
|
|
|
42,461,611
|
|
|
|
3.3
|
%
|
|
|
20,278,398
|
|
|
|
2.6
|
%
|
|
Public sector instruments
|
|
|
10,489,064
|
|
|
|
5.3
|
%
|
|
|
10,059,974
|
|
|
|
3.5
|
%
|
|
|
4,334,166
|
|
|
|
3.2
|
%
|
|
Loans
|
|
|
38,466,819
|
|
|
|
4.3
|
%
|
|
|
31,427,615
|
|
|
|
3.2
|
%
|
|
|
14,564,480
|
|
|
|
2.5
|
%
|
|
Other interest-earning assets
|
|
|
1,257,721
|
|
|
|
1.1
|
%
|
|
|
974,023
|
|
|
|
1.2
|
%
|
|
|
1,379,752
|
|
|
|
0.8
|
%
|
|
Interest-Bearing Liabilities
|
|
|
58,262,678
|
|
|
|
0.2
|
%
|
|
|
47,852,625
|
|
|
|
0.2
|
%
|
|
|
28,452,920
|
|
|
|
0.1
|
%
|
|
Saving Accounts
|
|
|
46,406,985
|
|
|
|
0.0
|
%
|
|
|
38,552,881
|
|
|
|
0.0
|
%
|
|
|
22,221,119
|
|
|
|
0.0
|
%
|
|
Time Deposits
|
|
|
9,831,850
|
|
|
|
0.5
|
%
|
|
|
8,279,777
|
|
|
|
0.8
|
%
|
|
|
5,939,973
|
|
|
|
0.3
|
%
|
|
Current accounts with interest
|
|
|
132,734
|
|
|
|
0.0
|
%
|
|
|
642,250
|
|
|
|
0.0
|
%
|
|
|
0
|
|
|
|
n/a
|
|
|
Other interest-bearing liabilities
|
|
|
1,891,108
|
|
|
|
3.7
|
%
|
|
|
377,717
|
|
|
|
2.8
|
%
|
|
|
291,828
|
|
|
|
4.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net fee Income
|
|
Quarter ended
|
|
|
D
%
Quarter ended 06-30-18
vs
quarter ended
|
|
|
(In thousands of pesos)
|
|
06-30-18
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
12-31-17
|
|
|
03-31-17
|
|
|
Net fee income
|
|
|
756,103
|
|
|
|
679,719
|
|
|
|
618,335
|
|
|
|
11.2
|
%
|
|
|
22.3
|
%
|
|
Fee income
|
|
|
2,278,267
|
|
|
|
2,034,541
|
|
|
|
1,576,453
|
|
|
|
12.0
|
%
|
|
|
44.5
|
%
|
|
Fee charges on deposits accounts
|
|
|
886,958
|
|
|
|
313,236
|
|
|
|
582,860
|
|
|
|
9.1
|
%
|
|
|
52.2
|
%
|
|
Credit cards and operations
|
|
|
563,183
|
|
|
|
477,967
|
|
|
|
427,5 64
|
|
|
|
17.3
|
%
|
|
|
31.7
|
%
|
|
Checks
|
|
|
221,466
|
|
|
|
204,363
|
|
|
|
162,799
|
|
|
|
8.1
|
%
|
|
|
36.0
|
%
|
|
Capital markets and securities activities
|
|
|
27,307
|
|
|
|
52,756
|
|
|
|
61,735
|
|
|
|
-48.2
|
%
|
|
|
-55.8
|
%
|
|
Fees related to foreign trade
|
|
|
108,711
|
|
|
|
77,623
|
|
|
|
64,470
|
|
|
|
40.0
|
%
|
|
|
68.6
|
%
|
|
Services of collection
|
|
|
317,097
|
|
|
|
256,335
|
|
|
|
166,992
|
|
|
|
23.5
|
%
|
|
|
39.9
|
%
|
|
Generated by subsidiaries
|
|
|
111,828
|
|
|
|
113,351
|
|
|
|
82,352
|
|
|
|
-1.3
|
%
|
|
|
35.8
|
%
|
|
Other fees
|
|
|
41,717
|
|
|
|
37,902
|
|
|
|
27,631
|
|
|
|
10.1
|
%
|
|
|
51.0
|
%
|
|
Fee Expenses
|
|
|
(1,522,164
|
)
|
|
|
(1,354,322
|
)
|
|
|
(958,118
|
)
|
|
|
12.4
|
%
|
|
|
58.9
|
%
|
Net fee income grew 11.2% compared to the previous quarter and 22.3% compared to the second quarter of 2017.
Fee Income increased 12% in the second quarter and 44.5% compared to the same quarter of 2017, driven by the higher consumption with credit cards, fees
generated by collection services and fees on deposits accounts, which reflects the higher volume of activity and the rise in prices.
- 6 -
BBVA Frances continues to gain market share in credit card consumption, during the quarter it grew 10 bp,
reaching 13.2% of the market.
Fee expenses grew 12.4% over the quarter and 58.9% compared to the second quarter of 2017, mainly due to fees related to
the loyalty program and higher credit card processing charges.
In the new disclosure format applied beginning with this quarter, certain fee items are
accounted for in “Other operating income”.
|
|
•
|
|
Net income from measurement of financial instruments at fair value through profit or loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from measurement of financial instruments
|
|
Quarter ended
|
|
|
D
%
Quarter ended 06-30-18
vs quarter ended
|
|
|
at fail value through profit or loss (In thousands of pesos)
|
|
06-30-18
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
12-31-17
|
|
|
06-30-17
|
|
|
Net income of financial instruments at fail value
|
|
|
-559,281
|
|
|
|
330,347
|
|
|
|
716,167
|
|
|
|
-269.3
|
%
|
|
|
-178.1
|
%
|
|
Income from public securities
|
|
|
248,089
|
|
|
|
187,893
|
|
|
|
646,760
|
|
|
|
32.0
|
%
|
|
|
-61.6
|
%
|
|
Income from private securities
|
|
|
118,936
|
|
|
|
93,362
|
|
|
|
43,929
|
|
|
|
27.4
|
%
|
|
|
170.7
|
%
|
|
Income from interest rate swaps
|
|
|
(433,324
|
)
|
|
|
1,649
|
|
|
|
11,002
|
|
|
|
n/a
|
|
|
|
n/a
|
|
|
Non deliverable forward
|
|
|
(502,779
|
)
|
|
|
39,614
|
|
|
|
(1,645
|
)
|
|
|
n/a
|
|
|
|
n/a
|
|
|
Income from corporate bonds
|
|
|
9,797
|
|
|
|
7,829
|
|
|
|
16,122
|
|
|
|
25.1
|
%
|
|
|
-39.2
|
%
|
Net income from measurement of financial instruments at fair value recorded a loss in the second quarter of 2018 due to
interest rate swap transactions and foreign currency forward transactions (NDFs), which was partially offset by the positive result generated by the USD/AR$ spot position of AR$ 1,045.5 million illustrated in the following table.
|
|
•
|
|
Foreign Exchange Difference
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign Exchange Diffrerence
|
|
Quarter ended
|
|
|
D
%
Quarter ended
|
|
|
(In thousands of pesos)
|
|
06-30-18
|
|
|
03-31-18
|
|
|
06-30-18
|
|
|
03-31-18
|
|
|
06-30-18
|
|
|
Foreign Exchange Difference
|
|
|
2,009,608
|
|
|
|
695,250
|
|
|
|
432,105
|
|
|
|
189.0
|
%
|
|
|
365.1
|
%
|
|
Buy/Sell
|
|
|
964,124
|
|
|
|
532,290
|
|
|
|
397,214
|
|
|
|
81.1
|
%
|
|
|
142.7
|
%
|
|
Spot
|
|
|
1,045,484
|
|
|
|
162,960
|
|
|
|
34,891
|
|
|
|
n/a
|
|
|
|
n/a
|
|
Foreign Exchange difference shows a higher result due to both the devaluation of the peso during the quarter as well as
greater buying and selling activity.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Operating Income
|
|
Quarter ended
|
|
|
D
%
Quarter ended
|
|
|
(In thousands of $)
|
|
06-30-18
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
Operating Income
|
|
|
759,728
|
|
|
|
1,742,608
|
|
|
|
662,035
|
|
|
|
-56.4
|
%
|
|
|
14.8
|
%
|
|
Safe deposits
|
|
|
111,121
|
|
|
|
100,082
|
|
|
|
82,432
|
|
|
|
11.0
|
%
|
|
|
34.7
|
%
|
|
Insurance
|
|
|
170,286
|
|
|
|
167,575
|
|
|
|
151,393
|
|
|
|
1.6
|
%
|
|
|
12.5
|
%
|
|
Fees on USD credit cards consumption
|
|
|
52,388
|
|
|
|
56,526
|
|
|
|
72,336
|
|
|
|
-7.3
|
%
|
|
|
-27.5
|
%
|
|
Interest on loans and fees related
|
|
|
128,314
|
|
|
|
81,319
|
|
|
|
70,821
|
|
|
|
57.8
|
%
|
|
|
81.2
|
%
|
|
Other fees
|
|
|
57,670
|
|
|
|
55,900
|
|
|
|
47,223
|
|
|
|
21.1
|
%
|
|
|
43.3
|
%
|
|
Total other fees
|
|
|
529,779
|
|
|
|
461,402
|
|
|
|
424,255
|
|
|
|
14.8
|
%
|
|
|
24.9
|
%
|
|
Reverse income tax provision
|
|
|
—
|
|
|
|
1,021,500
|
|
|
|
—
|
|
|
|
n/a
|
|
|
|
|
|
|
Other operating income
|
|
|
229,949
|
|
|
|
259,706
|
|
|
|
237,780
|
|
|
|
-11.5
|
%
|
|
|
-3.3
|
%
|
Deducting the provision of the result for fiscal tax adjustment of AR$ 1.021,5 million as previously mentioned, other
operating income reflects an increase of 5.4% due to higher fees, which grew 14.8% during the period.
- 7 -
Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses
|
|
Quarter ended
|
|
|
D
% Quarter ended 06/30/18 vs
|
|
|
In thousands of pesos
|
|
06-30-18
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
Personnel expenses
|
|
|
(1,929,968
|
)
|
|
|
(1,957,189
|
)
|
|
|
(1,634,027
|
)
|
|
|
-1.4
|
%
|
|
|
18.1
|
%
|
|
Administrative expenses
|
|
|
(1,646,632
|
)
|
|
|
(1,508,192
|
)
|
|
|
(1,634,027
|
)
|
|
|
9.2
|
%
|
|
|
29.1
|
%
|
|
Depreciation and amortization of assets
|
|
|
(207,860
|
)
|
|
|
(199,042
|
)
|
|
|
(1,275,036
|
)
|
|
|
4.4
|
%
|
|
|
15.4
|
%
|
|
Other operating expenses
|
|
|
(1,428,480
|
)
|
|
|
(2,153,710
|
)
|
|
|
(180,054
|
)
|
|
|
-33.7
|
%
|
|
|
61.3
|
%
|
|
Operating Expenses
|
|
|
(5,212,940
|
)
|
|
|
(5,818,133
|
)
|
|
|
(3,974,660
|
)
|
|
|
-10.4
|
%
|
|
|
31.2
|
%
|
Operating expenses reached AR$ 5,212.9 million, an increase of 8.7% and 31.2% compared to the previous quarter and to the
second quarter of 2017, respectively.
As mentioned, the quarterly variation was calculated without considering AR$ 1,021.5 million recorded in the
first quarter of 2018 in other operating expenses, corresponding to the provision generated by calculating the income tax for the 2017 fiscal year considering the effects of inflation.
The items that make up net operating expenses are analyzed in more detail below.
|
|
•
|
|
Personnel expenses and Administrative expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Administrative and personnel expenses
|
|
Quarter ended
|
|
|
D
% Quarter ended 30/06/18
vs quarter ended
|
|
|
(In thousands of
pesos)
|
|
06-30-18
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
Personnel expenses
|
|
|
(1,929,968
|
)
|
|
|
(1,957,189
|
)
|
|
|
(1,634,027
|
)
|
|
|
-1.4
|
%
|
|
|
18.1
|
%
|
|
Administrative expenses
|
|
|
(1,646,632
|
)
|
|
|
(1,508,192
|
)
|
|
|
(1,275,036
|
)
|
|
|
9.2
|
%
|
|
|
29.1
|
%
|
|
Electricity and Communications
|
|
|
(68,331
|
)
|
|
|
(64,192
|
)
|
|
|
(56,143
|
)
|
|
|
6.4
|
%
|
|
|
21.7
|
%
|
|
Advertising and Promotion
|
|
|
(124,392
|
)
|
|
|
(112,503
|
)
|
|
|
(102,945
|
)
|
|
|
10.6
|
%
|
|
|
20.8
|
%
|
|
Fees and external administrative services
|
|
|
(76,380
|
)
|
|
|
(60,036
|
)
|
|
|
(52,689
|
)
|
|
|
27.2
|
%
|
|
|
45.0
|
%
|
|
Taxes
|
|
|
(349,683
|
)
|
|
|
(380,433
|
)
|
|
|
(280,111
|
)
|
|
|
-8.1
|
%
|
|
|
24.8
|
%
|
|
Rente
|
|
|
(165,446
|
)
|
|
|
(151,107
|
)
|
|
|
(105,525
|
)
|
|
|
9.5
|
%
|
|
|
56.8
|
%
|
|
Maintainance, conservation and repairs
|
|
|
(175,265
|
)
|
|
|
(159,145
|
)
|
|
|
(130,407
|
)
|
|
|
10.1
|
%
|
|
|
34.4
|
%
|
|
Security Service
|
|
|
(66,631
|
)
|
|
|
(77,006
|
)
|
|
|
(71,328
|
)
|
|
|
-13.5
|
%
|
|
|
-6.6
|
%
|
|
Carriage of valuables
|
|
|
(237,258
|
)
|
|
|
(163,315
|
)
|
|
|
(179,109
|
)
|
|
|
45.3
|
%
|
|
|
32.5
|
%
|
|
Other
|
|
|
(383,246
|
)
|
|
|
(340,455
|
)
|
|
|
(296,779
|
)
|
|
|
12.6
|
%
|
|
|
29.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Employees
|
|
|
6,084
|
|
|
|
6,075
|
|
|
|
6,190
|
|
|
|
0.1
|
%
|
|
|
-1.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Branches
|
|
|
251
|
|
|
|
251
|
|
|
|
252
|
|
|
|
0.0
|
%
|
|
|
-0.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel expenses decreased by 1.4% compared to the first quarter and increased 18.1% compared to the second quarter of 2017,
whereas administrative expenses increased 9.2% and 29.1% in the same periods, respectively.
Administrative expenses grew during the quarter as a result
of the rise of transportation of cash (45.3%), consequence of the higher exchange rate volatility in May and June and the need to provide banknotes in foreign currency to the branches due to the increase in the demand.
In addition, maintenance, conservation and repairs line item includes a small impact in technology expenses due to the increase in the foreign exchange rate.
The efficiency ratio in the quarter reached 49.4%, showing an improvement of 729 bp compared to the previous quarter.
- 8 -
|
|
•
|
|
Other operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
D
% Quarter ended 06/30/18 vs
|
|
|
Other Operating expenses
|
|
Quarter ended
|
|
|
Quarter ended
|
|
|
(In thousands of $)
|
|
06-30-18
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
Operating expenses
|
|
|
(1,428,480
|
)
|
|
|
(2,153,710
|
)
|
|
|
(885,543
|
)
|
|
|
-33.7
|
%
|
|
|
61.3
|
%
|
|
Gross income tax
|
|
|
(957,432
|
)
|
|
|
(725,069
|
)
|
|
|
(520,006
|
)
|
|
|
32.0
|
%
|
|
|
84.1
|
%
|
|
Gross income tax NIl
|
|
|
(827,697
|
)
|
|
|
(601,957
|
)
|
|
|
(353,213
|
)
|
|
|
37.5
|
%
|
|
|
134.3
|
%
|
|
Gross income tax fees
|
|
|
(204,072
|
)
|
|
|
(194,440
|
)
|
|
|
(166,793
|
)
|
|
|
5.0
|
%
|
|
|
22.4
|
%
|
|
Cost of deposits insurence
|
|
|
(71,851
|
)
|
|
|
(65,805
|
)
|
|
|
(52,577
|
)
|
|
|
9.2
|
%
|
|
|
36.7
|
%
|
|
Income tax provision
|
|
|
—
|
|
|
|
1,021,500
|
|
|
|
—
|
|
|
|
n/a
|
|
|
|
|
|
|
Other operating expenses
|
|
|
(399,197
|
)
|
|
|
(341,336
|
)
|
|
|
(312,960
|
)
|
|
|
17.0
|
%
|
|
|
27.6
|
%
|
Other operating expenses reflects mainly a higher charge by gross income tax, due to the rise in interest rates, fees and the
income by foreign exchange difference, during the period.
Income from associates
Income from associates and joint ventures shows the result of
non-consolidated
companies. Over the second quarter it
showed an income of AR$ 121.4 million, mainly due to the equity investment in Interbanking, PSA Finance, Rombo Compañia Financiera and Consolidar Seguros.
Balance and activity
Loan portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
D
% Quarter ended 06/30/18 vs
|
|
|
Net loans
|
|
Quarter ended
|
|
|
quarter ended
|
|
|
(In thousands of pesos)
|
|
06-30-18
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
Private & Financial sector loans in $
|
|
|
114,137,426
|
|
|
|
105,205,377
|
|
|
|
71,027,151
|
|
|
|
8.5
|
%
|
|
|
60.7
|
%
|
|
Advances
|
|
|
14,190,618
|
|
|
|
13,597,142
|
|
|
|
9,698,771
|
|
|
|
4.4
|
%
|
|
|
46.3
|
%
|
|
Discounted and purchased notes
|
|
|
17,676,837
|
|
|
|
16,630,962
|
|
|
|
9,367,944
|
|
|
|
6.3
|
%
|
|
|
88.7
|
%
|
|
Consumer Mortgages
|
|
|
7,357,341
|
|
|
|
5,881,749
|
|
|
|
2,117,319
|
|
|
|
25.1
|
%
|
|
|
247.5
|
%
|
|
Car secured loans
|
|
|
5,348,745
|
|
|
|
4,844,257
|
|
|
|
3,591,838
|
|
|
|
10.4
|
%
|
|
|
48.9
|
%
|
|
Personal loans
|
|
|
20,666,082
|
|
|
|
19,376,800
|
|
|
|
11,869,020
|
|
|
|
6.7
|
%
|
|
|
74.1
|
%
|
|
Credit cards
|
|
|
33,282,575
|
|
|
|
30,062,625
|
|
|
|
22,587,011
|
|
|
|
10.7
|
%
|
|
|
47.4
|
%
|
|
Loans to financial sector
|
|
|
6,094,169
|
|
|
|
4,846,056
|
|
|
|
3,142,645
|
|
|
|
25.8
|
%
|
|
|
93.9
|
%
|
|
Other loans
|
|
|
9,688,354
|
|
|
|
9,191,722
|
|
|
|
8,265,451
|
|
|
|
5.4
|
%
|
|
|
17.2
|
%
|
|
Other receivables
|
|
|
3,423,950
|
|
|
|
3,627,055
|
|
|
|
2,409,235
|
|
|
|
-5.6
|
%
|
|
|
42.1
|
%
|
|
Unaccrued interest
|
|
|
(919,522
|
)
|
|
|
(658,285
|
)
|
|
|
(312,421
|
)
|
|
|
39.7
|
%
|
|
|
194.3
|
%
|
|
Less: Allowance for loan losses
|
|
|
(2,671,723
|
)
|
|
|
(2,194,706
|
)
|
|
|
(1,709,662
|
)
|
|
|
21.7
|
%
|
|
|
56.3
|
%
|
|
Private & Financial sector loans in FX
|
|
|
47,985,806
|
|
|
|
34,231,309
|
|
|
|
17,778,669
|
|
|
|
40.2
|
%
|
|
|
169.9
|
%
|
|
Commercial Loans
|
|
|
46,390,897
|
|
|
|
32,669,243
|
|
|
|
16,323,731
|
|
|
|
42.0
|
%
|
|
|
184.2
|
%
|
|
Credit cards
|
|
|
2,007,866
|
|
|
|
1,812,303
|
|
|
|
1,526,035
|
|
|
|
10.8
|
%
|
|
|
31.6
|
%
|
|
Loans to financial sector
|
|
|
96,539
|
|
|
|
103,379
|
|
|
|
110,994
|
|
|
|
-6.6
|
%
|
|
|
-13.0
|
%
|
|
Less: Allowance for loan losses
|
|
|
(509,496
|
)
|
|
|
(353,616
|
)
|
|
|
(182,091
|
)
|
|
|
44.1
|
%
|
|
|
179.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Private Loans
|
|
|
162,123,232
|
|
|
|
139,436,686
|
|
|
|
88,805,820
|
|
|
|
16.3
|
%
|
|
|
82.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans to public sector
|
|
|
142
|
|
|
|
142
|
|
|
|
239
|
|
|
|
0.0
|
%
|
|
|
-40.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Total Loans net of other non resident loans
|
|
|
162,123,374
|
|
|
|
139,436,828
|
|
|
|
88,806,059
|
|
|
|
16.3
|
%
|
|
|
82.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30, 2018, the private sector loan portfolio totaled AR$ 162.1 billion, increasing 16.3% during the
quarter and 82.6% in the last twelve months.
Loans market share reached 8.24%, including loans from associated companies (VW Financial Services, PSA
Finance and Rombo Compañia Financiera), showing an increase of 68 bp in the last 12 months.
Credit growth was affected during the second quarter
by the devaluation of the peso and higher interest rates, resulting in a strong increase of loans in dollars (40.2%) mainly due to the
re-expression
of the new value of the currency and a mild growth in pesos
of 8.5%.
With regard to loans to individuals, credit card loans recorded a positive performance, offsetting the slowdown in the demand for mortgages and
personal loans.
- 9 -
Commercial loans tended to moderate growth and were focused on shorter terms, although, as a result of the
temporary closure of capital markets, it was possible to see more interest from certain companies, especially larger financial companies, over longer terms.
|
|
|
|
|
|
|
|
|
|
|
% Loans distribution by Industry
|
|
%
Commercial
|
|
|
% Total loans
|
|
|
Consumer
|
|
|
36.9
|
%
|
|
|
19.0
|
%
|
|
Basic Materials
|
|
|
13.2
|
%
|
|
|
6.8
|
%
|
|
Energy
|
|
|
15.7
|
%
|
|
|
8.1
|
%
|
|
Retailers
|
|
|
12.6
|
%
|
|
|
6.5
|
%
|
|
Durable Goods
|
|
|
9.3
|
%
|
|
|
4.8
|
%
|
|
Capital Goods
|
|
|
4.4
|
%
|
|
|
2.3
|
%
|
|
Construction and infraestructure
|
|
|
3.1
|
%
|
|
|
1.6
|
%
|
|
Others
|
|
|
4.8
|
%
|
|
|
2.5
|
%
|
Asset quality ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset quality ratios
|
|
Quarter ended
|
|
|
D
% Quarter ended 06/30/18
vs quarter ended
|
|
|
(In thousands of pesos)
|
|
06-30-18
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
Non-performing loans (1)
|
|
|
1,423,719
|
|
|
|
1,017,379
|
|
|
|
753,731
|
|
|
|
39.9
|
%
|
|
|
88.9
|
%
|
|
Allowance for loan losses
|
|
|
(3,181,219
|
)
|
|
|
(2,548,322
|
)
|
|
|
(1,891,753
|
)
|
|
|
24.8
|
%
|
|
|
68.2
|
%
|
|
Non-performing loans/net total loans
|
|
|
0.86
|
%
|
|
|
0.72
|
%
|
|
|
0.83
|
%
|
|
|
20.2
|
%
|
|
|
3.6
|
%
|
|
Non-performing priv. loans/net priv. loans
|
|
|
0.86
|
%
|
|
|
0.72
|
%
|
|
|
0.83
|
%
|
|
|
20.2
|
%
|
|
|
3.6
|
%
|
|
Allowance for loan losses/non-performing loans
|
|
|
223.44
|
%
|
|
|
250.48
|
%
|
|
|
250.99
|
%
|
|
|
-10.8
|
%
|
|
|
-11.0
|
%
|
|
Allowance for loan losses/net total loans
|
|
|
1.92
|
%
|
|
|
1.79
|
%
|
|
|
2.09
|
%
|
|
|
7.2
|
%
|
|
|
-7.7
|
%
|
|
(i)
|
Non-performing loans include: all loans to borrowers classified as “Problem”, “Deficient
Servicing”, “High insolvency Risk”, “Difficult Recovery”, “Irrecoverable” and “Irrecoverable for Technical Decsion” according to the new Center Bank debtor classification system.
|
As of June 30, 2018, the asset quality ratio
(non-performing
loans/total loans) was 0.86% with a coverage ratio
(allowances
non-performing
loans) of 223.44%.
This ratio increased 15 bp compared to the previous quarter due to
some deterioration of the portfolio, while compared to the second quarter of 2017 it showed an increase of only 3 bp.
The drought that affected the
country during the first months of the year did not have a significant impact on the affected portfolio.
The cost of risk reached 1.49% registering a 17
bp increase in the quarter.
The following table shows the evolution of provisions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Evolution of provisions
|
|
Quarter ended
|
|
|
D
% Quarter ended 06/30/18
vs quarter ended
|
|
|
(In thousands of pesos)
|
|
06-30-18
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
Balance at the beginning of the quarter
|
|
|
2,548,322
|
|
|
|
2,292,035
|
|
|
|
1,751,093
|
|
|
|
11.2
|
%
|
|
|
45.5
|
%
|
|
Increase/decrease
|
|
|
801,330
|
|
|
|
526,034
|
|
|
|
354,006
|
|
|
|
52.3
|
%
|
|
|
126.4
|
%
|
|
Increase/decrease-Foreign exchange diff.
|
|
|
154,646
|
|
|
|
22,159
|
|
|
|
13,410
|
|
|
|
n/a
|
|
|
|
n/a
|
|
|
Aplications / Reversals
|
|
|
(323,079
|
)
|
|
|
(291,906
|
)
|
|
|
(226,756
|
)
|
|
|
10.7
|
%
|
|
|
42.5
|
%
|
|
Balance at the end of the quarter
|
|
|
3,181,219
|
|
|
|
2,548,322
|
|
|
|
1,891,753
|
|
|
|
24.8
|
%
|
|
|
68.2
|
%
|
- 10 -
Public sector exposure
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Public Sector Exposure
|
|
Quarter Ended
|
|
|
D
% Quarter ended 03-31-18 vs
quarter ended
|
|
|
(In thousands of pesos)
|
|
|
|
|
31-03-18
|
|
|
30-06-17
|
|
|
31-12-17
|
|
|
31-03-17
|
|
|
Bills and Notes from Central Bank
|
|
|
14,291,916
|
|
|
|
12,316,169
|
|
|
|
14,502,391
|
|
|
|
16.0
|
%
|
|
|
-1.5
|
%
|
|
National Government and provinces debt
|
|
|
14,776,891
|
|
|
|
9,929,971
|
|
|
|
7,270,094
|
|
|
|
48.8
|
%
|
|
|
103.3
|
%
|
|
Treasury and national government
|
|
|
14,776,891
|
|
|
|
9,929,971
|
|
|
|
7,270,094
|
|
|
|
48.8
|
%
|
|
|
103.3
|
%
|
|
National Treasury Public Debt $
|
|
|
2,995,774
|
|
|
|
221,490
|
|
|
|
2,339,622
|
|
|
|
1252.6
|
%
|
|
|
28.0
|
%
|
|
National Treasury Public Debt USD
|
|
|
5,651,068
|
|
|
|
5,051,412
|
|
|
|
4,930,472
|
|
|
|
11.9
|
%
|
|
|
14.6
|
%
|
|
Treasury Repos USD
|
|
|
6,130,049
|
|
|
|
4,657,069
|
|
|
|
—
|
|
|
|
31.6
|
%
|
|
|
|
|
|
Provinces
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.0
|
%
|
|
|
0.0
|
%
|
|
Pesos subtotal
|
|
|
17,287,691
|
|
|
|
12,537,659
|
|
|
|
16,842,013
|
|
|
|
37.9
|
%
|
|
|
2.6
|
%
|
|
Dollars subtotal
|
|
|
11,781,117
|
|
|
|
9,708,481
|
|
|
|
4,930,472
|
|
|
|
21.3
|
%
|
|
|
138.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Public Sector exposure
|
|
|
29,068,808
|
|
|
|
22,246,140
|
|
|
|
21,772,485
|
|
|
|
30.7
|
%
|
|
|
33.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% National Government debt /Assets
|
|
|
5.5
|
%
|
|
|
4.4
|
%
|
|
|
4.3
|
%
|
|
|
|
|
|
|
|
|
Total exposure to the public sector totaled AR$ 29.1 billion, increasing 30.7% in the quarter.
Short-term liquidity was allocated in BCRA bills, which increased AR$ 1.9 billion during the quarter. The national government debt represents 5.5% of
total assets, and increased AR$ 4.8 billion in the quarter.
The increase in local currency debt comes from the acquisition of a
2-year
bond that will be used to comply with the increase of 500 basis points in the minimum cash requirement, disposed by the BCRA in two stages, June and July.
Foreign currency debt has an average term of 6 months and is composed of a Repo with the National Treasury for USD 212 million and short term Letes for
USD 195 million. During the quarter these positions decreased by USD 70 million, however, due to the depreciation of the peso, their peso value increased approximately AR$ 2 billion during the period under analysis.
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits
|
|
Quarter ended
|
|
|
D
% Quarter ended 06/30/18 vs
quarter ended
|
|
|
(In thousands of pesos)
|
|
06-30-18
|
|
|
03-31-18
|
|
|
03-30-17
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
Deposits $ denominated
|
|
|
110,782,951
|
|
|
|
102,338,422
|
|
|
|
83,930,617
|
|
|
|
8.3
|
%
|
|
|
32.0
|
%
|
|
Current accounts
|
|
|
24,855,245
|
|
|
|
24,518,461
|
|
|
|
22,684,250
|
|
|
|
1.4
|
%
|
|
|
9.6
|
%
|
|
Saving accounts
|
|
|
36,962,990
|
|
|
|
31,971,917
|
|
|
|
27,232,686
|
|
|
|
15.6
|
%
|
|
|
35.7
|
%
|
|
Time deposits
|
|
|
46,739,438
|
|
|
|
43,659,792
|
|
|
|
32,102,594
|
|
|
|
7.1
|
%
|
|
|
45.6
|
%
|
|
Peso denominated
|
|
|
42,908,415
|
|
|
|
40,646,698
|
|
|
|
31,856,573
|
|
|
|
5.6
|
%
|
|
|
34.7
|
%
|
|
CER adjusted time deposits
|
|
|
3,831,023
|
|
|
|
3,013,094
|
|
|
|
246,021
|
|
|
|
27.1
|
%
|
|
|
n/a
|
|
|
Other
|
|
|
2,225,278
|
|
|
|
2,188,252
|
|
|
|
1,911,087
|
|
|
|
1.7
|
%
|
|
|
16.4
|
%
|
|
Deposits FX denominated
|
|
|
82,074,322
|
|
|
|
57,614,261
|
|
|
|
41,638,489
|
|
|
|
42.5
|
%
|
|
|
97.1
|
%
|
|
Current accounts
|
|
|
189,557
|
|
|
|
145,994
|
|
|
|
126,632
|
|
|
|
29.8
|
%
|
|
|
49.7
|
%
|
|
Saving accounts
|
|
|
67,209,837
|
|
|
|
46,680,073
|
|
|
|
30,552,506
|
|
|
|
44.0
|
%
|
|
|
120.0
|
%
|
|
Time deposits
|
|
|
12,315,734
|
|
|
|
8,658,520
|
|
|
|
6,270,117
|
|
|
|
42.2
|
%
|
|
|
96.4
|
%
|
|
Other
|
|
|
2,359,194
|
|
|
|
2,129,674
|
|
|
|
4,689,234
|
|
|
|
10.8
|
%
|
|
|
-49.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits
|
|
|
192,857,273
|
|
|
|
159,952,683
|
|
|
|
125,569,106
|
|
|
|
20.6
|
%
|
|
|
53.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits reached AR$ 192.9 billion as of June 30, 2018, increasing 20.6% compared to the previous quarter and
53.6% compared with the second quarter of 2017.
Foreign currency deposits remained stable during the quarter, but their balance reflects the depreciation
of the peso.
- 11 -
Local currency deposits increased 8.3% mainly due to increases in savings accounts and current accounts with
interest.
Other funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other funding sources
|
|
Quarter ended
|
|
|
D
% Quarter ended 06/30/18
vs quarter ended
|
|
|
(In thousands of pesos)
|
|
06-30-18
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
Lines from other banks
|
|
|
5,732,921
|
|
|
|
829,574
|
|
|
|
341,534
|
|
|
|
n/a
|
|
|
|
n/a
|
|
|
Senior Bonds
|
|
|
1,751,596
|
|
|
|
1,839,184
|
|
|
|
1,419,905
|
|
|
|
-4.8
|
%
|
|
|
23.4
|
%
|
|
Total other funding sources
|
|
|
7,484,517
|
|
|
|
2,668,758
|
|
|
|
1,761,439
|
|
|
|
180.4
|
%
|
|
|
324.9
|
%
|
The increase in the lines from other banks corresponds mainly to funds to finance foreign trade operations.
CER/UVA Mismatch
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
D
% Trim. finalizado 30/06/18 vs
Trim. finalizados
|
|
|
(In thousands of pesos except percentages)
|
|
06-30-18
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
CER adjusted assets
|
|
|
8,636,945
|
|
|
|
6,034,055
|
|
|
|
2,218,667
|
|
|
|
43.1
|
%
|
|
|
289.3
|
%
|
|
- Public bond portfolio
|
|
|
404,976
|
|
|
|
446,478
|
|
|
|
1,656,898
|
|
|
|
-9.3
|
%
|
|
|
-75.6
|
%
|
|
- Private sector loans
|
|
|
7,445,968
|
|
|
|
4,957,098
|
|
|
|
448,609
|
|
|
|
50.2
|
%
|
|
|
1559.8
|
%
|
|
- Other credits
|
|
|
786,001
|
|
|
|
630,479
|
|
|
|
113,160
|
|
|
|
24.7
|
%
|
|
|
594.6
|
%
|
|
CER adjusted deposits
|
|
|
3,831,023
|
|
|
|
3,013,094
|
|
|
|
246,021
|
|
|
|
27.1
|
%
|
|
|
1457.2
|
%
|
|
CER mismatch
|
|
|
4,805,922
|
|
|
|
3,020,961
|
|
|
|
1,972,646
|
|
|
|
59.1
|
%
|
|
|
143.6
|
%
|
The mismatch between assets and liabilities adjustable by inflation increased AR$ 1.8 billion or 59.1% in the quarter, as
a result of higher adjustable loans, offset by the increase in UVA deposits.
This mismatch is relatively lower than that of the financial system as a
whole.
The bank will continue to promote and develop the instruments it deems necessary to limit this mismatch.
Solvency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Central Bank Requirements
|
|
Quarter ended
|
|
|
D
% Quarter ended 06/30/18 vs
quarter ended
|
|
|
(In thousands of pesos)
|
|
06-30-18
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
CB Minimum Capital Requirements
|
|
|
19,213,740
|
|
|
|
17,026,890
|
|
|
|
11,608,879
|
|
|
|
12.8
|
%
|
|
|
65.5
|
%
|
|
Allocated to Asset at Risk
|
|
|
16,092,833
|
|
|
|
14,042,621
|
|
|
|
9,046,865
|
|
|
|
14.6
|
%
|
|
|
77.9
|
%
|
|
Market Risk
|
|
|
154,790
|
|
|
|
241,847
|
|
|
|
287,776
|
|
|
|
-36.0
|
%
|
|
|
-46.2
|
%
|
|
Operational Risk
|
|
|
2,966,117
|
|
|
|
2,742,422
|
|
|
|
2,274,238
|
|
|
|
8.2
|
%
|
|
|
30.4
|
%
|
|
Bank Capital
|
|
|
34,217,408
|
|
|
|
32,595,907
|
|
|
|
18,632,561
|
|
|
|
5.0
|
%
|
|
|
83.6
|
%
|
|
Ordinary Capital Level 1 (*)
|
|
|
33,516,442
|
|
|
|
32,323,764
|
|
|
|
17,451,690
|
|
|
|
3.7
|
%
|
|
|
92.1
|
%
|
|
Dedusctions Ordinary Capital Level 1
|
|
|
(2,165,117
|
)
|
|
|
(2,203,850
|
)
|
|
|
(525,144
|
)
|
|
|
-1.8
|
%
|
|
|
312.3
|
%
|
|
Capital Level 2
|
|
|
1,959,093
|
|
|
|
1,700,390
|
|
|
|
1,260,472
|
|
|
|
15.2
|
%
|
|
|
55.4
|
%
|
|
Aditional Capital Level 1
|
|
|
906,990
|
|
|
|
775,603
|
|
|
|
445,543
|
|
|
|
16.9
|
%
|
|
|
103.6
|
%
|
|
Excess over Required Capital
|
|
|
15,003,668
|
|
|
|
15,569,017
|
|
|
|
7,023,682
|
|
|
|
-3.6
|
%
|
|
|
113.6
|
%
|
|
Excess as % of the capital required
|
|
|
78.1
|
%
|
|
|
91.4
|
%
|
|
|
60.5
|
%
|
|
|
-14.6
|
%
|
|
|
29.1
|
%
|
|
Risk weighted assets
|
|
|
234,312,709
|
|
|
|
207,723,520
|
|
|
|
141,817,226
|
|
|
|
12.8
|
%
|
|
|
65.2
|
%
|
|
Capital Ratio (Central Bank rules) (*) (**)
|
|
|
14.6
|
%
|
|
|
15.7
|
%
|
|
|
13.1
|
%
|
|
|
-6.9
|
%
|
|
|
11.1
|
%
|
|
TIER I (***)
|
|
|
13.4
|
%
|
|
|
14.5
|
%
|
|
|
11.9
|
%
|
|
|
-7.7
|
%
|
|
|
12.1
|
%
|
|
(*)
|
Bank capital / Risk weighted assets
|
|
(**)
|
Includes the 100% of the quarterly result
|
|
(***)
|
Ordinary capital level 1 / Risk weighted assets
|
The figures expressed in the previous quarters were not adjusted by IFRS
BBVA Frances continues to show adequate solvency ratios. As of June 30, 2018 the capital ratio reached 14.6%, 110 basis points lower than the ratio of
March 31, 2018, mainly due to higher risk weighted assets, mainly those denominated in foreign currency as a consequence of the devaluation of the peso.
- 12 -
The Tier 1 ratio was 13.4% and the excess over required capital was AR$ 15,003.7 million.
Additional information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
D
% Quarter ended 06/30/18
vs Quarter ended
|
|
|
|
|
06-30-18
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
Exchange rate $/USD
|
|
|
28.86
|
|
|
|
20.14
|
|
|
|
16.60
|
|
|
|
43.3
|
%
|
|
|
73.9
|
%
|
|
Quarterly CER adjustment
|
|
|
7.4
|
%
|
|
|
7.0
|
%
|
|
|
7.0
|
%
|
|
|
5.0
|
%
|
|
|
5.3
|
%
|
Disclaimer
This press release contains or may
contain forward-looking statements, including but not limited to estimates of the 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 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) macroeconomic, regulatory or political changes; (2) changes
in domestic or international stock market prices, exchange rates or interest rates; (3) changes in the markets for BBVA Francés’ products and services; (4) increasing competition; (5) changes in technology; or
(6) changes in the financial condition, creditworthiness or solvency of the customers, debtors or counterparts of BBVA Francés. These forward-looking statements on future events referring only to the date of the document should be taken
cautiously. It is advisable to consult the Bank’s Financial Statements and all the documents filed from time to time with the Argentine Securities and Exchange Commission (“CNV”) and the Buenos Aires Stock Exchange
- 13 -
Conference Call
On Friday August 24, 2018 at 12:30 p.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 United States)
+
1412-902-6509
(from other countries)
Conference ID: BBVA
.
To access the webcast:
http://webcastlite.mziq.com/cover.html?webcastId=cfea5ee6-13f9-4230-8513-eaba5c3b7228
To request the Replay, please call
+1-877-344-7529
(from United States)
+1-412-317-0088
(from other countries)
The replay will be available until August 31, 2018.
Replay
Access code: 10123256
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
- 14 -
BBVA Banco Francés S,A, and subsidiaries (Grupo Consolidar by the equity method)
BALANCE SHEET (in thousands of pesos)
Communication “A” 6114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
06-30-18
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
Cash and due from banks
|
|
|
54,530,632
|
|
|
|
36,917,931
|
|
|
|
37,196,151
|
|
|
Debt securities at fair value through other comprehensive income
|
|
|
2,735,529
|
|
|
|
1,162,994
|
|
|
|
4,345,912
|
|
|
Derivatives
|
|
|
104,250
|
|
|
|
168,314
|
|
|
|
68,045
|
|
|
Repurchase agreements
|
|
|
6,367,328
|
|
|
|
7,144,101
|
|
|
|
3,035,678
|
|
|
Other financial assets
|
|
|
5,897,674
|
|
|
|
7,142,873
|
|
|
|
2,996,512
|
|
|
Loans and other financial intermediation
|
|
|
162,123,310
|
|
|
|
139,436,828
|
|
|
|
88,806,059
|
|
|
Loans to the private & financial sector
|
|
|
162,123,232
|
|
|
|
139,436,686
|
|
|
|
88,805,820
|
|
|
Public Sector loans
|
|
|
78
|
|
|
|
142
|
|
|
|
239
|
|
|
Other debt securities
|
|
|
18,544,550
|
|
|
|
15,578,336
|
|
|
|
17,595,929
|
|
|
Financial assets pledged as collateral
|
|
|
5,155,840
|
|
|
|
3,925,255
|
|
|
|
2,267,527
|
|
|
Current income tax assets
|
|
|
1,056
|
|
|
|
1,375
|
|
|
|
278,744
|
|
|
Investments in equity instruments
|
|
|
120,978
|
|
|
|
145,256
|
|
|
|
63,696
|
|
|
Investments in associates and joint ventures
|
|
|
1,087,893
|
|
|
|
921,199
|
|
|
|
971,108
|
|
|
Property, plant and equipment
|
|
|
9,136,878
|
|
|
|
9,024,411
|
|
|
|
8,888,324
|
|
|
Intangible assets
|
|
|
542,054
|
|
|
|
448,944
|
|
|
|
354,578
|
|
|
Deferred income tax asset
|
|
|
22,311
|
|
|
|
57,407
|
|
|
|
10,091
|
|
|
Other non financial assets
|
|
|
1,350,209
|
|
|
|
1,457,379
|
|
|
|
992,093
|
|
|
Non-current assets held for sale
|
|
|
507,630
|
|
|
|
741,840
|
|
|
|
—
|
|
|
Total Assets
|
|
|
268,228,122
|
|
|
|
224,274,443
|
|
|
|
167,870,447
|
|
|
Deposits
|
|
|
192,857,273
|
|
|
|
159,952,683
|
|
|
|
125,569,106
|
|
|
Current accounts
|
|
|
25,044,802
|
|
|
|
24,664,455
|
|
|
|
22,810,882
|
|
|
Saving accounts
|
|
|
104,172,827
|
|
|
|
78,651,990
|
|
|
|
57,785,192
|
|
|
Time deposits
|
|
|
59,055,172
|
|
|
|
52,318,312
|
|
|
|
38,372,711
|
|
|
Rescheduled deposits CEDROS
|
|
|
1,951
|
|
|
|
1,951
|
|
|
|
1,951
|
|
|
Other deposits
|
|
|
4,582,521
|
|
|
|
4,315,975
|
|
|
|
6,598,370
|
|
|
Liabilities at fair value trhough other comprehensive income
|
|
|
143,495
|
|
|
|
—
|
|
|
|
—
|
|
|
Derivatives
|
|
|
2,277,241
|
|
|
|
245,444
|
|
|
|
72,425
|
|
|
Repurchase agreements
|
|
|
936,751
|
|
|
|
579,184
|
|
|
|
26,514
|
|
|
Other financial liabilities
|
|
|
17,727,818
|
|
|
|
16,497,979
|
|
|
|
9,224,236
|
|
|
Financing received the BCRA and other financial insitutions
|
|
|
5,732,921
|
|
|
|
829,574
|
|
|
|
341534
|
|
|
Corporate bonds issued
|
|
|
1,751,596
|
|
|
|
1,839,184
|
|
|
|
1,419,905
|
|
|
Current income tax liabilities
|
|
|
1,409,535
|
|
|
|
884,250
|
|
|
|
502,365
|
|
|
Provisions
|
|
|
3,374,177
|
|
|
|
3,268,894
|
|
|
|
2,043,341
|
|
|
Other provisions
|
|
|
3,372,628
|
|
|
|
3,267,758
|
|
|
|
2,042,741
|
|
|
For eventual compromises
|
|
|
1,549
|
|
|
|
1,136
|
|
|
|
600
|
|
|
Deferred income tax liabilites
|
|
|
343,100
|
|
|
|
514,787
|
|
|
|
944,155
|
|
|
Other non-financial liabilities
|
|
|
8,258,653
|
|
|
|
7,492,249
|
|
|
|
6,911,172
|
|
|
Total Liabilities
|
|
|
234,812,560
|
|
|
|
192,104,228
|
|
|
|
147,054,953
|
|
|
Total Stockholders’ equity
|
|
|
32,861,689
|
|
|
|
31,645,338
|
|
|
|
20,528,602
|
|
|
Equity investments
|
|
|
553,873
|
|
|
|
524,877
|
|
|
|
286,892
|
|
|
Total liabilities + stockholders’ equity
|
|
|
268,228,122
|
|
|
|
224,274,443
|
|
|
|
167,870,447
|
|
- 15 -
BBVA Banco Francés S.A. and subsidiaries (Grupo Consolidar: by the equity method)
INCOME STATEMENT (in thousands of pesos)
Communication
“A” 6114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
06-30-18
|
|
|
03-31-18
|
|
|
06-30-17
|
|
|
Interest Income
|
|
|
9,525,300
|
|
|
|
7,892,864
|
|
|
|
5,000,705
|
|
|
Interest on loans to the financial sector
|
|
|
351,772
|
|
|
|
246,176
|
|
|
|
149,444
|
|
|
Interest on overdraft
|
|
|
1,177,920
|
|
|
|
917,500
|
|
|
|
679,137
|
|
|
Interest on documents
|
|
|
1,090,927
|
|
|
|
865,226
|
|
|
|
453,878
|
|
|
Interest on mortgages loans
|
|
|
169,956
|
|
|
|
142,561
|
|
|
|
85,660
|
|
|
Interest on car secured loans
|
|
|
337,965
|
|
|
|
316,562
|
|
|
|
211,286
|
|
|
Interest on credit card loans
|
|
|
1,885,704
|
|
|
|
1,671,465
|
|
|
|
1,508,214
|
|
|
Interest on financial leases
|
|
|
129,239
|
|
|
|
124,947
|
|
|
|
99,501
|
|
|
Interest on personal loans
|
|
|
1,532,737
|
|
|
|
1,355,898
|
|
|
|
919,366
|
|
|
Interest on other loans
|
|
|
724,107
|
|
|
|
651,892
|
|
|
|
434,135
|
|
|
From other banking receivables from financial intermediation
|
|
|
2,264
|
|
|
|
1,822
|
|
|
|
852
|
|
|
Income from Public Securities
|
|
|
1,187,403
|
|
|
|
952,624
|
|
|
|
118,405
|
|
|
CER adjustment
|
|
|
6,705
|
|
|
|
44,416
|
|
|
|
138,281
|
|
|
UVA adjustment
|
|
|
506,632
|
|
|
|
287,997
|
|
|
|
17,118
|
|
|
Other
|
|
|
421,969
|
|
|
|
313,778
|
|
|
|
185,428
|
|
|
Interest Expenses
|
|
|
(3,507,170
|
)
|
|
|
(2,808,837
|
)
|
|
|
(1,688,294
|
)
|
|
Interest on Current Account Deposits
|
|
|
(417,615
|
)
|
|
|
(288,583
|
)
|
|
|
(95,547
|
)
|
|
Interest on Saving Account Deposits
|
|
|
(26,894
|
)
|
|
|
(10,820
|
)
|
|
|
(7,962
|
)
|
|
Interest on Time Deposits
|
|
|
(2,438,015
|
)
|
|
|
(2,074,916
|
)
|
|
|
(1,452,261
|
)
|
|
Interest on interfinancing received loans
|
|
|
(18,567
|
)
|
|
|
(6,892
|
)
|
|
|
(1,971
|
)
|
|
Interest on other financing from the financial institutions
|
|
|
(49,652
|
)
|
|
|
(10,001
|
)
|
|
|
(100
|
)
|
|
Interest on other liabilites from financial intermediation
|
|
|
(256,177
|
)
|
|
|
(233,765
|
)
|
|
|
(113,024
|
)
|
|
Other interest
|
|
|
(50
|
)
|
|
|
(40
|
)
|
|
|
(290
|
)
|
|
UVA adjustment
|
|
|
(256,626
|
)
|
|
|
(158,404
|
)
|
|
|
(15,410
|
)
|
|
Other
|
|
|
(43,574
|
)
|
|
|
(25,416
|
)
|
|
|
(1,729
|
)
|
|
Net interest income
|
|
|
6,018,130
|
|
|
|
5,084,027
|
|
|
|
3,312,411
|
|
|
Net fee income
|
|
|
756,103
|
|
|
|
679,719
|
|
|
|
618,335
|
|
|
Net income of financial instruments
|
|
|
(559,281
|
)
|
|
|
330,347
|
|
|
|
716,167
|
|
|
Result from assets at amortised cost
|
|
|
(68,298
|
)
|
|
|
1,367
|
|
|
|
(496
|
)
|
|
Foreign exchange difference
|
|
|
2,009,608
|
|
|
|
695,250
|
|
|
|
432,105
|
|
|
Other operating income
|
|
|
759,728
|
|
|
|
1,742,608
|
|
|
|
662,035
|
|
|
Provision for loan losses
|
|
|
(804,248
|
)
|
|
|
(526,194
|
)
|
|
|
(418,545
|
)
|
|
Net operating income
|
|
|
8,111,742
|
|
|
|
8,007,124
|
|
|
|
5,322,012
|
|
|
Personnel expenses
|
|
|
(1,929,968
|
)
|
|
|
(1,957,189
|
)
|
|
|
(1,634,027
|
)
|
|
Administrative expenses
|
|
|
(1,646,632
|
)
|
|
|
(1,508,192
|
)
|
|
|
(1,275,036
|
)
|
|
Depreciations and amortizations
|
|
|
(176,747
|
)
|
|
|
(168,821
|
)
|
|
|
(151,534
|
)
|
|
Depreciation on Intangible assets
|
|
|
(31,113
|
)
|
|
|
(30,221
|
)
|
|
|
(28,520
|
)
|
|
Other operating expenses
|
|
|
(1,428,480
|
)
|
|
|
(2,153,710
|
)
|
|
|
(885,543
|
)
|
|
Operating income
|
|
|
2,898,802
|
|
|
|
2,188,991
|
|
|
|
1,347,352
|
|
|
Income from associates and joint ventures
|
|
|
121,443
|
|
|
|
39,877
|
|
|
|
174,566
|
|
|
Net income before income tax from continuing operations
|
|
|
3,020,245
|
|
|
|
2,228,868
|
|
|
|
1,521,918
|
|
|
Income tax from continuing operations
|
|
|
(866,387
|
)
|
|
|
(662,724
|
)
|
|
|
(516,842
|
)
|
|
Net income Including non-controlling shareholders
|
|
|
2,153,858
|
|
|
|
1,566,144
|
|
|
|
1,005,076
|
|
|
Net income attributable to non-controlling shareholders
|
|
|
29,938
|
|
|
|
20,846
|
|
|
|
7,658
|
|
|
Net income
|
|
|
2,123,920
|
|
|
|
1,545,298
|
|
|
|
997,418
|
|
|
Other comprehensive income
|
|
|
64,125
|
|
|
|
(19,189
|
)
|
|
|
(78,302
|
)
|
|
Total income attributable to controlling shareholders
|
|
|
2,188,045
|
|
|
|
1,526,109
|
|
|
|
919,116
|
|
- 16 -
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: August 23, 2018
|
|
|
|
By:
|
|
/s/ Ernesto Gallardo Jimenez
|
|
|
|
|
|
|
|
Name: Ernesto Gallardo Jimenez
|
|
|
|
|
|
|
|
Title: Chief Financial Officer
|
Bbva Banco Frances (NYSE:BFR)
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Bbva Banco Frances (NYSE:BFR)
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