Edgar Filing: BBVA BANCO FRANCES SA

BBVA Banco Francés S.A.

Date: February 14, 2018

/s/ Ernesto Gallardo Jimenez

Ernesto Gallardo Jimenez

Chief Financial Officer

Form 6-K

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 February 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.		BBVA Francés reports consolidated fourth quarter earnings for fiscal year 2017.

LOGO

Buenos Aires, February 14, 2018 - BBVA Francés (NYSE: BFR.N; BCBA:

FRA.BA; LATIBEX: BFR.LA) reports consolidated fourth quarter results for

the January-December 2017 fiscal year.

Highlights of the Quarter

•

BBVA Francés ended 2017 achieving the targets set in terms of growth. It increased its customer base, both in the case of individuals and legal persons, and it also gained market share in loans.

•

As of December 31, 2017, the Bank recorded an AR$ 3,878.3 million accumulated profit, reaching an average 18.2% return on equity and an average 2.1% return on assets.

•

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

•

Net financial income grew 21.2% year on year, mainly driven by the increase in the credit activity with the private sector, by better results generated by the foreign exchange difference and by higher volume of the Bank’s own funds, in addition to lower interests paid due to a fall in rates on average year on year. This was partially offset by lower revenues coming from the public securities portfolio.

•

A differential factor that affected BBVA Francés compared to the average banking system was the excess in the stock of physical bills during the first months of the year, with the financial cost that this implies. This situation returned to normal as from the second semester.

•

Net Income from Services grew 30% in 2017. Services charge expenses rose at a higher pace, 41.2%, mainly due to charges paid for promotions for purchases made with credit cards and to campaigns to attract new customers. Income from services grew 35.3% as a result of higher fees generated by deposit accounts, which grew due to a higher volume of activity and to an increase in prices, of fees generated by credit cards, with a rise in the use of the Bank’s cards compared to rest of the banking system, which offset the regulatory fall of 50 basis points of the charge and, finally, by the charges for collection services, which increased 65.2% during the year as a consequence of the actions taken by the Bank with the purpose of making the product more profitable.

•

During the year, the administrative expenses grew 32.1%, mainly reflecting the rise in personnel expenses, as a consequence of a salary increase agreed with the union and the application of a legal provision to compensate the difference between the real inflation of 24.8% and the highest inflation estimated in the bargaining agreement, 19.5%, in addition to other compensations paid and costs associated to the restructuring plan implemented in the year. The general expenses reflect a higher increase in amortizations, which went up due to technological investment and to the incorporation of the new headquarters. The rest of the expenses grew as a result of a higher volume of activities, a general price rise, the peso depreciation and the rise in utilities tariffs.

•

The Bank is implementing a series of plans under the transformation strategy. It should be highlighted that during the year, transactions through personal tellers in the branches went down, thus making it possible to reallocate resources to commercial tasks. The mailing of bank statements in paper also decreased as a result of a customer digitalization campaign.

•

In terms of activity, the private loan portfolio totaled AR$ 128.3 billion, which means an increase of 66.4% compared to the balances as of December 2016, implying a rise of 71 basis points of

consolidated market share, which stood at 8.3% at the year close. Such increase is mainly caused by the rise in financing to companies, which grew 74.4%, whereas the retail business grew 50.9%, mainly caused by an outstanding performance of both mortgages, with a 126.2% increase and personal loans, with a 74.2% increase, while the credit cards and car loans business continued strengthening.

•

The asset quality ratio (NPL/Total loans) stood at 0.69% with a coverage (Total allowances/NPL) of 253.07% as of December 31, 2017, representing the best indicators of the Argentine financial system.

•

As to liabilities, total deposits amounted to AR$ 154.1 billion, increasing 34.4% over the past twelve months, over which period, sights accounts grew 60.6%, whereas time deposits rose 25.1%. In currency terms, the deposits in pesos rose 33.1% and in dollars, 36.8%, over the past twelve months.

•

BBVA Francés maintained adequate liquidity and solvency levels. As of December 31, liquid assets (cash plus Central Bank bills and notes) accounted for 35.3% of the Bank’s deposits. On the other hand, the capital ratio reached 14.7%, with a capital excess of AR$ 12.4 billion, 79% over the minimum amount required. Considering the conservation buffer (3.5%), the capital excess would amount to AR$ 5.7 billion.


Condensed Income Statement (1) in thousands of pesos except income per share, income per ADS and percentages	FY 2017			FY 2016			D%
Net Financial Income		15,039,960			12,411,466			21.2	%
Provision for loan losses		(1,560,720	)		(1,054,828	)		48.0	%
Net income from services		5,618,318			4,322,799			30.0	%
Administrative expenses		(12,604,460	)		(9,541,495	)		32.1	%
Operating income		6,493,098			6,137,942			5.8	%
Income (loss) from equity investments		399,409			184,200			116.8	%
Income (Loss) from Minority interest		(103,375	)		(112,407	)		-8.0	%
Other Income/Expenses		(646,428	)		(116,689	)		454.0	%
Income tax		(2,264,439	)		(2,449,374	)		-7.6	%
Net income for the period		3,878,265			3,643,672			6.4	%
Net income per share (2)		6.3			6.8			-6.7	%
Net income per ADS (3)		19.0			20.4			-6.7	%

(1)	Exchange rate:AR$ 15,8502 Ps =1USD

(2)	Assumes 612,659,638 ordinary shares as of December 31,2017 and 536,877,850 ordinary shares as of December 31,2016.

(3)	Each ADSrepresents three ordinary shares

Regulatory Changes

After October elections, the Government proposed a structural reform agenda with effects in the mid term. These reforms include the fiscal compact with the provinces and the changes in taxation, social security and labor laws, the last one still pending discussion and enactment by Congress.

•

Fiscal Compact with the Provinces: A commitment to reduce expenses and taxes to assure the solvency of the provinces’ public accounts in the mid term. It was also agreed that the provinces would withdraw cross claims with the Nation. The Province of Buenos Aires withdrew its legal claims for the so-called Greater Buenos Aires Fund in exchange for 10% of the the income tax proceeds.

•

Tax Reform: It includes amendments to several taxes, mainly the income tax, the bank debits and credits tax, the turnover tax and a decrease in employer’s taxes. A new tax will be levied on financial income. The reform would imply a gradual fall in the tax burden with the purpose of fostering investment, increasing competitiveness, boosting employment and heading towards a more equitable, less distorted tax system.

•

Social Security Reform: It includes the change in the movement ratio formula for the adjustment of pensions, the beneficiaries of the so-called Universal Allocation per Child subsidy, the subsidy for families, etc. The minimum pension is set at 82% of the adjustable minimum living wage for beneficiaries who have reached 30 years’ payments and are not included in any late payment plan. Private sector workers who are not self-employed may opt to retire at the age of 70.

- 2 -

Additionally, by the end of December, the government announced a change in the inflation target scheme and postponed the 5% target to the year 2020. As a consequence, the new inflation target for 2018 will be 15%, 10% in 2019 and 5% in 2020.

Economic Environment


		Quarter ended
Main Macroeconomic figures		12-31-17			09-30-17			30-06-17			31-03-17			12-31-16
GDP	var % y/y		—			4.2	%		2.9	%		0.4	%		-1.9	%
Inflation (1)	var % y/y		24.8	%		23.8	%		21.8	%		32.2	%		39.4	%
End of period	var % q/q		6.1	%		5.1	%		5.4	%		6.1	%		5.3	%
CER	Quarterly adjustment		5.0	%		4.3	%		7.0	%		4.6	%		4.5	%
Exchange Rate	Pesos x US$		18.77			17.31			16.60			15.38			15.85
Reserves	US$		55,055			50,237			47,995			50,522			39,308
Fiscal Balance	Primary - billion of $		(181,763	)		(78,093	)		(102,942	)		(41,344	)		(133,937	)
Trade Balance	US$ (billion)		(3,311	)		(2,544	)		(1,438	)		(1,179	)		104
Total Private Loans	var % q/q		14.3	%		12.5	%		11.7	%		5.7	%		12.0	%
	var % y/y		51.8	%		48.6	%		40.4	%		35.6	%		31.5	%
Total Private Deposits	var % q/q		14.3	%		3.8	%		7.1	%		1.8	%		20.7	%
	var % y/y		29.3	%		36.6	%		38.7	%		38.5	%		43.4	%
Badlar interest rate	Weighted avg. quarterly		22.4	%		20.7	%		19.5	%		19.8	%		21.1	%

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

The Argentina’s economy kept momentum over the third quarter of 2017, growing 0.9% quarter on quarter (in deseasonalized terms). The actual Gross Domestic Product (GDP) had a 4.2% variation compared to the third quarter of 2016, driven by private investment and consumption, which grew 13.9% and 4.2% in that period, respectively.

The activity growth is consistent with the information provided by other more frequent estimators, thus, the November data, which is the last available publication of the Monthly Economic Activity Estimator (EMAE, Spanish acronym), showed a 0.4% increase month on month (deseasonalized series) and 3.9% year on year. Following the same trend, the industry grew 3.5% in November y.o.y., with an accumulated 1.9% in eleven months, according to the Monthly Industry Estimator (EMI, Spanish acronym).

Inflation for the fourth quarter was 6.1%, and thus, the CPI accumulated a 24.8% variation in the year. Whereas the core inflation slightly slowed down to 4.3% from 4.9% of the third quarter, regulated prices rallied, standing at 12.6%, driven by the adjustments in utilities fares.

From the end of September to the end of December of 2017, the Central Bank increased the monetary policy rate from 26.25% to 28.75%. Additionally, over the last week, the monetary authority announced a change in the inflation target scheme, as mentioned above.

The peso depreciated 8.4% in the fourth quarter, driving the dollar from AR$ 17.32 by the end of September to AR$ 18.77 by the end of December, which means a devaluation of 18.4% in 2017.

By the end of the year, international reserves reached USD 55.1 billion, which implies a rise of USD 4.8 billion as from the balances at the end of September 2017.

The balance of trade in the fourth quarter of 2017 had a deficit of USD 3.3 billion, which highlights the difference with the USD 104 million surplus reached over a year ago. This difference resulted from a strong rise in imports and almost stagnant exports. The sales to the rest of the world amounted to USD 14.4 billion in that quarter in relation to the last quarter of 2016 (1.4%), whereas imports amounted to USD 17.7 billion that is a 25.6% rise for the same period.

- 3 -

Like the first three quarters of the year, the 4.2% fiscal target was largely reached in relation to the GDP. In the fourth quarter, the primary deficit added AR$ 181.8 billion, which accounts for 3.9% of the GDP. This means a 35.7% rise over a year ago. Economic subsidies, which basically include energy and transportation, and which amount to 45% of the primary fiscal deficit for October-December, fell 29.3% compared to the same period the previous year, in which period, they accounted for 86.4% of the primary fiscal deficit.

Presentation of the Information

•

The balances in foreign currency as of December 31, 2017 were converted into pesos at the exchange rate of reference published by the Central Bank for that date (AR$ 18.77/USD).

•

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. The Bank’s share interest in BBVA Consolidar Seguros and Consolidar AFJP (in liquidation) is shown as “Investments in Other Companies” (recorded under the equity method), and the corresponding results are included in “Income from Equity Investments”.

•

Information 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 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.

- 4 -

Quarterly Results


																% quarter ended 12-31-17 vs
Condensed Income Statement (1)	Quarter ended															quarter ended
In thousands of $ except income per share, ADS	12-31-17			09-30-17			06-30-17			03-31-17			12-31-16			09-30-17			12-31-16
Net Financial Income		4,572,762			3,970,483			3,432,939			3,063,776			3,252,260			15.2	%		40.6	%
Provision for loan losses		(377,352	)		(503,013	)		(356,386	)		(323,969	)		(331,013	)		-25.0	%		14.0	%
Net income from services		1,631,538			1,561,617			1,191,061			1,234,102			1,076,422			4.5	%		51.6	%
Administrative expenses		(3,523,829	)		(3,155,954	)		(3,027,058	)		(2,897,619	)		(2,860,570	)		11.7	%		23.2	%
Operating income		2,30 3,119			1,873,133			1,240 ,556			1,0 76,290			1,137,0 99			23.0	%		102.5	%
Income (Loss) from equity investments		106,570			118,217			155,131			19,491			17,083			-9.9	%		523.8	%
Income (Loss) from Minority interest		(27,496	)		(18,425	)		(29,601	)		(27,853	)		(13,547	)		49.2	%		103.0	%
Other Income/Expenses		(211,459	)		(121,621	)		(1,168,459	)		855,111			(141,517	)		-73.9	%		n/a
Income Tax / Minimum Presumed Tax		(749,824	)		(716,724	)		(480,622	)		(317,269	)		(416,713	)		4.6	%		79.9	%
Net income for the period		1,420 ,910			1,134,580			-282,995			1,60 5,770			582,40 5			25.2	%		144.0	%
Net income per share (2)		2.32			1.85			(0.53	)		2.99			1.08			25.2	%		113.8	%
Net income per ADS (3)		6.96			5.56			(1.58	)		8.97			3.25			25.2	%		113.8	%

Net Income not considerig fiscal provision		1,420 ,910			1,134,580			90 2,80 5			419,970			582,40 5			25.2	%		144.0	%

(1)	Exchange rate: AR$ 18.77 Ps = 1USD

(2)	Assumes 612,659,638 ordinary shares

(3)	Each ADS represents three ordinary shares

In the fourth quarter of 2017, BBVA Francés reached a net income of AR$ 1,420.9 million, which means a 25.2% increase quarter on quarter and a 144% increase compared to the same quarter of 2016.


																% Quarter ended 12/31/17
Main figures	Quarter ended															vs quarter ended
	12-31-17			09-30-17			06-30-17			03-31-17			12-31-16			09-30-17			12-31-16
ROA (Average Assets) (1)		2.8	%		2.5	%		2.1	%		1.0	%		3.0	%		11.3	%		-8.6	%
ROE (Average Shareholders’ Equity) (1)		22.2	%		21.7	%		22.1	%		10.5	%		14.3	%		2.5	%		55.6	%
NIM (1)(2)		10.6	%		10.7	%		11.4	%		-1.2	%		12.4	%		-0.3	%		-13.9	%
Net fee income / Net operating Income (3)		26.3	%		28.2	%		25.8	%		28.7	%		24.9	%		-6.8	%		5.7	%
Coverage ratio (4)		46.3	%		49.5	%		39.3	%		42.6	%		37.6	%		-6.4	%		23.0	%
Efficiency ratio (5)		56.8	%		57.0	%		65.5	%		67.4	%		66.1	%		-0.4	%		-14.1	%

(1)	Annualized, without considering the extraordinary results corresponding to 1st and 2nd quarter 2017.

(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)

Net Financial Income


											% quarter ended 12-31-17 vs
Net financial income (in thousands of pesos)	Quarter ended										quarter ended
Net financial income (in thousands of pesos)	12-31-17		09-30-17		06-30-17		03-31-17		12-31-16		09-30-17			12-31-16
Financial Income		7,352,134		6,322,0 99		5,637,429		5,280 ,611		5,540 ,183		16.3	%		32.7	%
Income from financial intermediation		5,167,344		4,368,178		4,039,850		4,060,877		4,096,831		18.3	%		26.1	%
CER adjustment		188,447		112,942		155,398		100,285		97,613		66.9	%		93.1	%
Income Securities and short term inv.		988,022		1,032,478		778,964		593,345		807,994		-4.3	%		22.3	%
Foreign exchange difference		727,555		634,046		431,991		306,004		458,312		14.7	%		58.7	%
Others		280,766		174,455		231,226		220,100		79,433		60.9	%		253.5	%
Financial Expenses		-2,779,372		-2,351,616		-2,204,490		-2,216,835		-2,287,923		18.2	%		21.5	%
Net Financial Income		4,572,762		3,970 ,483		3,432,939		3,0 63,776		3,252,260		15.2	%		40 .6	%

Net financial income increased by 15.2% in the last quarter and 40.6% compared to the same quarter of 2016. The quarterly variation is mainly due to a higher volume of intermediation with the private sector and to a higher volume of the Bank’s own funds, which was partially offset by higher financial expenses caused by an increase in the average rate of deposits arising from the monetary policy implemented by the Central Bank.

- 5 -

On the other hand, the income from inflation-adjusted assets grew in the quarter as a result of a higher rise in the index, compared to the previous quarter.

The results derived from foreign exchange difference showed a positive evolution. The results for holdings increased AR$ 94.5 million in the quarter reaching AR$ 202.3 million, whereas the trading results totaled AR$ 525.3 million, which reflected a slight fall of AR$ 1 million.

The net interest margin (NIM) excluding the results for foreign exchange difference decreased 3 basis points in the quarter, from 10.67% to 10.64% as a consequence of the higher pace of growth in the dollar activity. Whereas the NIM with foreign exchange difference results grew 18 basis points to 12.89%.

The NIM in pesos increased 20 basis points quarter on quarter. Even thought there was an increase in the liabilities rate, it was partially offset by a better funding mix, with higher weight of sight accounts; in addition to the increase in the assets rates.

The NIM in foreign currency went up 52 basis points, mainly driven by a rise in the performance of the loan portfolio.

Interest-Earning Assets & Interest-Bearing

Quarter ended

Liabilities $ + USD

12-31-17

09-30-17

12-31-16

(Averege in thouhand of AR$)

Capital

Rate

Interest-Earning Assets

140 ,720 ,279

18.7

123,936,863

18.2

89,256,623

22.9

Interest-Bearing Liabilities

10 5,396,185

8.0

95,819,752

7.4

71,140 ,219

10.2

NIM without foreign exchange differences

10 .6

10 .7

12.4

NIM including foreign exchange differences

12.9

12.7

14.5

A table of return on assets and cost of liabilities is included by currency: pesos and dollars. Such ratios are calculated non-considering the results for foreign exchange difference.


Interest-Earning Assets & Interest-Bearing						Quarter ended
Liabilities $	12-31-17					09-30-17						12-31-16
(Average in thouhand of AR$)						Capital			Rate			Capital			Rate
Interest-Earning Assets		10 4,30 6,132		24.2	%		94,737,428			23.3	%		76,60 7,0 74			26.1	%
Public Bonds		14,254,745		26.8	%		18,610,366			22.6	%		13,417,210			26.0	%
Loans		82,344,943		23.7	%		69,90 5,567			23.5	%		60 ,686,387			26.1	%
Other interest-earning assets		7,706,444		24.5	%		6,221,495			23.4	%		2,503,477			28.5	%
Interest-Bearing Liabilities		65,213,962		12.9	%		60 ,295,70 7			11.8	%		50 ,827,0 45			14.1	%
Saving Accounts		24,329,949		0.2	%		22,684,140			0.1	%		17,566,687			0.2	%
Time Deposits		33,970,213		19.9	%		31,547,072			18.2	%		30,312,244			21.1	%
Current accounts with interest		4,027,291		22.4	%		3,686,389			20.6	%		0			0.0	%
Debt Securities		1,033,559		25.7	%		1,128,352			23.8	%		1,777,296			0
Other interest-bearing liabilities		1,852,950		24.8	%		1,249,754			23.4	%		1,170,818			24.1	%
NIM $		14.5	%				14.3	%					15.1	%


Interest-Earning Assets & Interest-Bearing						Quarter ended
Liabilities USD	12-31-17					09-30-17						12-31-16
(Averege in thouhand of AR$)						Capital			Rate			Capital			Rate
Interest-Earning Assets		36,414,148		2.8	%		29,199,435			2.7	%		12,725,323			3.2	%
Public Bonds		4,358,378		3.0	%		4,081,066			2.9	%		439,619			2.6	%
Loans		25,623,737		2.7	%		20,810,951			2.7	%		10,608,212			3.6	%
Other interest-earning assets		6,432,032		3.3	%		4,307,418			2.7	%		1,677,492			0.5	%
Interest-Bearing Liabilities		39,085,565		0 .1	%		35,407,677			0 .1	%		20,313,174			0 .3	%
Saving Accounts		31,743,308		0.0	%		28,491,001			0.0	%		14,127,948			0.0	%
Time Deposits		7,067,956		0.4	%		6,698,506			0.3	%		5,393,842			0.6	%
Other interest-bearing liabilities		274,301		2.7	%		218,170			3.9	%		791,384			4.2	%
NIM USD		2.3	%				1.8	%					2.0	%

- 6 -

Result for Public and Private

Securities


Income from securities and short-term investments	Quarter ended														D% Quarter ended 12/31/17 vs quarter ended
(in thousands of pesos)	12-31-17			09-30-17			06-30-17			03-31-17		12-31-16			09-30-17			12-31-16
Income Securities and short term inv.		988,022			1,032,478			778,964			592,264		801,184			-4.3	%		23.3	%
Income Interest Margin		772,793			1,071,955			777,079			445,641		659,167			-27.9	%		17.2	%
Bills and Notes from the Central Bank		762,721			1,012,485			716,362			368,754		574,204			-24.7	%		32.8	%
Other bonds		10,072			59,470			60,718			76,887		84,963			-83.1	%		-88.1	%
Holdings booked at fair value		(1,730	)		46,915			56,036			68,489		83,217			-103.7	%		-102.1	%
Holdings booked at amortized cost		11,802			12,555			4,682			8,397		1,746			-6.0	%		n/a
Income Financial Operations		126,916			(69,542	)		(45,905	)		114,066		87,426			-282.5	%		45.2	%
Bills and Notes from the Central Bank		34,043			(53,786	)		12,579			18,608		11,132			-163.3	%		n/a
Other bonds		92,873			(15,756	)		(58,484	)		95,458		76,294			-689.4	%		21.7	%
Holdings booked at fair value		94,284			(15,758	)		(58,539	)		95,343		76,517			-698.3	%		23.2	%
Holdings booked at amortized cost		(1,411	)		2			55			115		(223	)		-70150.6	%		533.2	%
Other fixed income securities		88,314			30,064			47,789			32,557		54,590			193.7	%		61.8	%
CER adjustment		188,447			112,942			155,398			100,285		97,614			66.9	%		93.1	%

The financial margin generated by assets of the public sector fell 27.9% in the quarter, mainly as a consequence of lower results generated by the Central Bank’s bills portfolio, basically due to a lower holding of these assets on average.

However, the results for financial operations are mainly caused by a higher result generated by the Bogar 20 portfolio, which had a better performance in the quarter.

Net Income from Services


Net income from services	Quarter ended															% quarter ended 12-31-17 vs quarter ended
(in thousands of pesos)	12-31-17			09-30-17			06-30-17			03-31-17			12-31-16			09-30-17			12-31-16
Net income from services		1,631,538			1,561,617			1,191,061			1,234,102			1,076,422			4.5	%		51.6	%
Service charge income		3,171,500			2,937,973			2,485,825			2,481,746			2,398,519			7.9	%		32.2	%
Service charges on deposits accounts		691,093			636,398			568,815			498,412			430,468			8.6	%		60.5	%
Credit cards and operations		1,126,879			1,106,882			883,586			987,996			1,000,246			1.8	%		12.7	%
Insurance		161,271			173,382			151,393			168,532			170,554			-7.0	%		-5.4	%
Capital markets and securities activities		25,131			31,823			31,306			16,936			16,533			-21.0	%		52.0	%
Fees related to foreign trade		94,424			90,866			77,239			67,389			70,283			3.9	%		34.3	%
Safety deposit box		94,965			89,290			82,482			74,202			74,569			6.4	%		27.4	%
Services of collection		75,555			58,567			48,661			42,022			39,283			29.0	%		92.3	%
Generated by subsidiaries		455,783			365,836			324,080			298,607			205,153			24.6	%		122.2	%
Other fees		446,400			384,929			318,263			327,651			391,430			16.0	%		14.0	%
Services Charge expense		(1,539,962	)		(1,376,356	)		(1,294,764	)		(1,247,644	)		(1,322,097	)		11.9	%		16.5	%

Net income from services rose 4.5% compared to the previous quarter and 51.6% compared to the same quarter of 2016. The previous quarter includes recurring annual income registered over that quarter. Without considering this effect, the variation amounts to 14.8%.

Service charge income grew 7.9% and 32.2% during the same periods, with a remarkable increase in the charges generated by deposit accounts which grew both due to a higher activity and to the price increase, as well as the charges generated by credit cards where the consumption volume rose 6% gaining market share, in addition to the increase in charges for collection services which went up 29% and 92.3% quarter on quarter and over a year ago, respectively.

On the other hand, the service charge expenses grew 11.9% in the quarter and 16.5% compared to the same quarter of 2016. Such increase is mainly due to higher charges paid for the LATAM Pass program.

- 7 -

Administrative Expenses


																% quarter ended 12-31-17 vs
Administrative expenses	Quarter ended															quarter ended
(in thousands of pesos)	12-31-17			09-30-17			06-30-17			03-31-17			12-31-16			09-30-17			12-31-16
Administrative expenses		(3,523,829	)		(3,155,954	)		(3,027,058	)		(2,897,619	)		(2,860,570	)		11.7	%		23.2	%
Personnel expenses		(2,060,607	)		(1,749,326	)		(1,706,425	)		(1,635,877	)		(1,694,758	)		17.8	%		21.6	%
General expenses		(1,463,222	)		(1,406,628	)		(1,320,633	)		(1,261,742	)		(1,165,812	)		4.0	%		25.5	%
Electricity and Communications		(47,285	)		(43,911	)		(56,482	)		(52,036	)		(59,685	)		7.7	%		-20.8	%
Advertising and Promotion		(118,293	)		(112,517	)		(104,197	)		(82,525	)		(106,078	)		5.1	%		11.5	%
Fees and external administrative services		(71,582	)		(66,939	)		(56,993	)		(49,289	)		(45,649	)		6.9	%		56.8	%
Taxes		(316,281	)		(317,367	)		(282,287	)		(279,474	)		(265,956	)		-0.3	%		18.9	%
Organization and development expenses		(31,290	)		(32,414	)		(28,539	)		(24,846	)		(20,555	)		-3.5	%		52.2	%
Amortizations		(141,558	)		(131,348	)		(112,281	)		(87,628	)		(73,633	)		7.8	%		92.2	%
Rents		(130,705	)		(126,231	)		(106,084	)		(112,106	)		(108,211	)		3.5	%		20.8	%
Maintainance, conservation and repairs		(145,473	)		(132,731	)		(130,637	)		(134,038	)		(104,528	)		9.6	%		39.2	%
Security Service		(78,239	)		(85,253	)		(71,328	)		(71,101	)		(66,610	)		-8.2	%		17.5	%
Carriage of valuables		(178,757	)		(160,235	)		(179,109	)		(164,900	)		(145,398	)		11.6	%		22.9	%
Other		(203,759	)		(197,682	)		(192,696	)		(203,799	)		(169,509	)		3.1	%		20.2	%

Total Employees		6,082			6,142			6,190			6,219			6,265			-1.0	%		-2.9	%

Total Branches		251			251			252			252			251			0.0	%		0.0	%

Administrative expenses increased 11.7% in the last three months and 23.2% compared to the same quarter of 2016

Regarding personnel expenses, they increased 17.8% during the quarter, including higher charges as a result of applying a provision to raise the value for the difference between the current inflation 24.8% and the highest inflation estimated in the labor agreement of 19.5% and other compensations paid. Without considering that effect, the personnel expenses would have registered an increase of 4.7% in the period. Additionally, costs related to the reorganization of some business lines were incurred in the quarter.

On the other hand, general expenses increased 4% over the previous quarter and 25.5% compared to the same quarter of 2016.

During the period, there were higher charges, mainly in amortizations, including technological investment and the incorporation of the corporate headquarters, as well as in taxes due to a rise in the activity.

The efficiency ratio in the quarter reached 56.8%, showing a slight improvement compared to the previous quarter, driven by both higher income as well as higher restriction in expenses.

Under the transformation strategy, it should be highlighted that, during the year, transactions through tellers in the branches went down 20%, thus making it possible to reallocate resources to more profitable tasks. The mailing of bank statements in paper also decreased as a result of a customer digitalization campaign.

Other Income / Expenditures

Other Income / Expenditures recorded an AR$ 211.5 million loss in the last quarter of 2017 driven by fewer credits recovered and higher allowances for other contingencies.

Income from Equity Investments

Income from equity investments shows net income from related companies that are not consolidated. Over the fourth quarter of 2017, there was an AR$ 106.5 million profit, mainly due to the equity investment in Francés Administradora de Inversores and in Francés Valores.

- 8 -

Balance and Activity

Loan portfolio


																% quarter ended 12-31-17 vs
Net loans	Quarter ended															quarter ended
(in thousands of pesos)	12-31-17			09-30-17			06-31-17			03-31-17			12-31-16			09-30-17			12-31-16
Private & Financial sector loans in $		99.674.815			84.226.386			71.820.037			68.429.094			66.472.453			18,3	%		49,9	%
Advances		11.394.582			10.533.948			9.495.624			9.463.160			9.540.668			8,2	%		19,4	%
Discounted and purchased notes		16.762.454			13.261.590			9.128.070			9.227.187			9.810.847			26,4	%		70,9	%
Consumer Mortgages		4.274.738			2.937.234			2.071.739			1.892.840			1.889.443			45,5	%		126,2	%
Car secured loans		8.867.373			8.062.140			6.986.809			6.368.608			5.628.320			10,0	%		57,5	%
Personal loans		16.318.544			13.786.796			11.646.873			10.522.971			9.368.939			18,4	%		74,2	%
Credit cards		28.405.180			23.889.556			22.516.560			21.775.867			21.539.673			18,9	%		31,9	%
Loans to financial sector		3.211.622			2.204.909			2.217.403			1.739.275			1.715.873			45,7	%		87,2	%
Other loans		11.186.647			10.345.952			8.621.253			8.200.489			7.512.590			8,1	%		48,9	%
Unaccrued interest		(593.669	)		(410.090	)		(312.439	)		(315.649	)		(329.346	)		44,8	%		80,3	%
Adj. & accrued int. & exchange diff. receivable		1.842.056			1.484.684			1.166.756			1.164.083			1.286.851			24,1	%		43,1	%
Less: Allowance for loan losses		(1.994.712	)		(1.870.333	)		(1.718.611	)		(1.609.737	)		(1.491.405	)		6,7	%		33,7	%
Private & Financial sector loans in FX		28.627.775			23.861.543			17.635.160			12.901.265			10.642.999			20,0	%		169,0	%
Advances		14.203			8.534			7.952			7.233			5.897			66,4	%		140,9	%
Discounted and purchased notes		1.660.291			1.306.379			941.959			858.646			1.085.875			27,1	%		52,9	%
Credit cards		1.600.754			1.549.060			1.463.325			1.301.292			981.170			3,3	%		63,1	%
Loans to financial sector		93.156			114.563			109.892			127.133			130.914			n/a			n/a
Other loans		25.552.454			21.162.903			15.293.021			10.755.116			8.565.890			20,7	%		198,3	%
Less: Allowance for loan losses		(293.083	)		(279.896	)		(180.989	)		(148.155	)		(126.747	)		4,7	%		131,2	%
Total Private Loans		128.302.590			108.087.929			89.455.197			81.330 .359			77.115.452			18,7	%		66,4	%
Total loans to public sector		218			267			239			156			98.819			-18,4	%		-99,8	%
Net Total Loans net of other non resident loans		128.302.808			108.088.196			89.455.436			81.330 .515			77.214.271			18,7	%		66,2	%
Other non resident loans (*)		3.588.006			3.588.006			62.710			1.581.090			34.064			n/a			n/a
Net total loans		128.366.202			111.676.202			89.518.146			82.911.605			78.889.921			14,9	%		62,7	%

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

The private sector loan portfolio amounted to AR$ 128.3 billion, which means a rise both in the quarter and over the last twelve months, with variations reaching 18.7% and 66.4%, respectively.

As a result of the implemented growth strategy, the private loans market share of BBVA Francés grew 51 basis points over the year. Such market share reached 7.2% as of December 31, 2017, whereas the private loans market share that includes the associated companies which are part of the consolidated balance sheet, PSA Finance and Volkswagen, reached 8.3%, implying a growth of 71 basis points.

In the quarter, both peso and dollar loans rose at a similar pace, 18.3% and 20%, respectively.

Dynamism in financing companies both in local and foreign currency should be highlighted. Foreign trade operations, advances and discounted and purchases notes were the lines with the highest increase, but lease options and collateral lines also regained momentum.

In consumer loans, an increase in mortgages stands out, 45.5% in the quarter, as well as personal loans and car loans, which rose 18.4% and 10%, respectively.

- 9 -

Public Sector Exposure


																% quarter ended 12-31-17 vs
Public Sector Exposure	Quarter ended															quarter ended
(in thousands of pesos)	12-31-17			09-30-17			06-30-17			03-31-17			12-31-16			09-30-17			12-31-16
Public Sector - National Government		7,024,971			7,464,832			7,920,788			6,889,933			5,276,924			-5.9	%		33.1	%
Public Sector Loans		218			267			239			156			98,819			-18.4	%		-99.8	%

Total bond portfolio		7,024,978			7,464,790			7,920,772			6,889,994			5,178,318			-5.9	%		35.7	%

Holdings book at fair value		5,431,774			5,746,588			6,955,704			5,646,590			4,274,229			-5.5	%		27.1	%
Holdings book at amortized cost		1,593,204			1,718,202			965,068			1,243,404			904,089			-7.3	%		n/a
Allowances		(225	)		(225	)		(223	)		(217	)		(213	)		0.0	%		5.6	%
Bills and Notes from Central Bank		14,856,313			14,488,774			14,393,353			7,200,514			7,310,231			2.5	%		103.2	%

Total exposure to the Public		21,881,284			21,953,606			22,314,142			14,090,447			12,587,155			-0.3	%		73.8	%

Portfolio Received for Repos		11,671,395			8,079,583			3,199,988			9,893,778			64,872			n/a			n/a
Public Bonds		9,864,568			8,872,119			37,061			—			—			n/a			n/a
BCRA Instruments		1,806,827			(792,536	)		3,162,927			9,893,778			64,872			n/a			n/a

Exposure to the National Government Public Sector in bonds and loans, including Central Bank bills totaled AR$ 21.9 billion by the end of the year, showing a slight decrease of 0.3%% quarter on quarter and rose 73.8% over the last twelve months.

Over the year, the Bank celebrated repo transactions with the Argentine Republic of USD 250 million, due in December 2018 and March 2019, which are accounted in the “Repurchase Agreement” line in Other Banking Receivables.

As of December 31, 2017, the National Government’s public debt accounted for 5% of the Bank’s total assets. The exposure of the Central Bank bills and notes portfolio, net of repo transactions, amounted to 6.6% over total assets.

Portfolio Quality


Asset quality ratios	Quarter ended															% quarter ended 12-31-17 vs quarter ended
(in thousands of pesos)	12-31-17			09-30-17			06-30-17			03-31-17			12-31-16			09-30-17			12-31-16
Non-performing loans (1)		904,012			793,264			780,886			707,907			616,075			14.0	%		46.7	%
Allowance for loan losses		(2,287,795	)		(2,150,229	)		(1,899,600	)		(1,757,892	)		(1,618,152	)		6.4	%		41.4	%
Non-performing loans/net total loans		0.69	%		0.70	%		0.85	%		0.84	%		0.77	%		-0.7	%		-9.6	%
Non-performing priv. loans/net priv. loans		0.69	%		0.70	%		0.85	%		0.84	%		0.77	%		-0.7	%		-9.7	%
Allowance for loan losses/non-performing lo		253.07	%		271.06	%		243.26	%		248.32	%		262.66	%		-6.6	%		-3.6	%
Allowance for loan losses/net total loans		1.75	%		1.89	%		2.08	%		2.08	%		2.01	%		-7.3	%		-12.9	%

As of December 31, 2017, the asset quality ratio (non-performing loans/total loans) stood at 0.69%, with a coverage ratio (allowances/non-performing loans) of 253.07%.

The non-performing loan ratio improved compared to the quarters under analysis, mainly due to the important growth in the loan portfolio.

On the other hand, the cost of risk reached 1.3%. This decrease was caused by lower generic allowances recorded over the period.

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

- 10 -

Deposits


Total deposits	Quarter ended										% quarter ended 12-31-17 vs quarter ended
(in thousands of pesos)	12-31-17		09-30-17		06-30-17		03-31-17		12-31-16		09-30-17			12-31-16
Deposits $ denominated		99,701,266		84,005,882		84,035,746		82,248,799		74,902,584		18.7	%		33.1	%
Current accounts		24,845,591		22,306,350		22,693,886		21,484,467		21,419,738		11.4	%		16.0	%
Saving accounts		35,129,036		26,517,781		27,221,181		23,190,831		21,273,125		32.5	%		65.1	%
Time deposits		37,389,316		33,114,593		32,209,592		35,197,959		30,079,381		12.9	%		24.3	%
Peso denominated		36,910,121		32,954,999		31,964,459		35,001,533		30,076,548		12.0	%		22.7	%
CER adjusted time deposits		479,195		159,594		245,133		196,426		2,833		200.3	%		n/a
Investment Accounts		—		1,112		213		85,194		85,194		-100.0	%		-100.0	%
Other		2,337,323		2,066,046		1,910,874		2,290,348		2,045,146		13.1	%		14.3	%
Deposits FX denominated		54,349,163		45,942,472		41,638,489		40,573,257		39,719,184		18.3	%		36.8	%
Current accounts		163,674		451,457		126,632		89,817		782,954		-63.7	%		-79.1	%
Saving accounts		43,913,177		35,441,394		30,552,506		23,779,226		21,318,030		23.9	%		106.0	%
Time deposits		8,032,972		6,976,320		6,270,117		5,961,593		6,220,811		15.1	%		29.1	%
Other		2,239,340		3,073,301		4,689,234		10,742,621		11,397,389		-27.1	%		-80.4	%

Total deposits		154,050,429		129,948,354		125,674,235		122,822,056		114,621,768		18.5	%		34.4	%

Total deposits amounted to AR$ 154.1 billion, growing 18.5% and 34.4% during the quarter and in the last twelve months, respectively.

Over the year, sights accounts rose 60.6% and time deposits rose 25.1%.

Deposits in pesos grew 18.7% in the quarter and 33.1% in the year. Transactional deposits in pesos went up 22.8% quarter on quarter and 40.5% annually, with time deposits growing 12.9% and 24.3% in the same periods.

At the end of December 2017, deposits in foreign currency reached AR$ 54.3 billion (equal to USD 2.9 billion), accounting for 35.3% of the Bank’s total deposits.

Other Sources of Funds


Other funding sources	Quarter ended										% quarter ended 12-31-17 vs quarter ended
(in thousands of pesos)	12-31-17		09-30-17		06-30-17		03-31-17		12-31-16		30-09-17			31-12-16
Lines from other banks		1,955,611		1,863,146		1,382,049		1,435,605		1,502,786		5.0	%		30.1	%
Senior Bonds		2,881,947		1,680,030		2,115,473		2,056,274		2,211,078		71.5	%		30.3	%
Total other funding sources		4,837,558		3,543,176		3,497,522		3,491,879		3,713,864		36.5	%		30 .3	%

Mismatch of Reference Stabilization

Coefficient (CER)


	Quarter ended										D% Quarter ended 12/31/17 vs quarter ended
(in thousands of pesos except percentages)	12-31-17		09-30-17		06-30-17		03-31-17		12-31-16		09-30-17			12-31-16
CER adjusted assets		4,956,165		3,275,440		2,218,667		2,616,315		2,818,625		51.3	%		75.8	%
- Public bond portfolio		1,589,929		1,761,986		1,656,898		2,418,040		2,643,768		-9.8	%		-39.9	%
- Private sector loans		2,883,960		1,265,246		448,609		146,371		47,525		127.9	%		5968.3	%
- Public sector loans		0		0		0		0		99,356		n/a			-100.0	%
- Other credits		482,276		248,208		113,160		51,904		27,976		94.3	%		n/a
CER adjusted deposits		479,195		159,594		245,133		196,426		2,833		200.3	%		n/a
CER mismatch		4,476,970		3,115,846		1,973,534		2,419,889		2,815,792		43.7	%		59.0	%

- 11 -

Capitalization

The Shareholders’ Equity amounted to AR$ 26.1 billion as of December 31, 2017, with an excess of capital over the minimum required by the Central Banks of AR$ 12.4 billion. The capital ratio for the period was 14.7%.


Central Bank Requirements	Quarter ended															% quarter ended 12-31-17 vs quarter ended
(in thousands of pesos)	12-31-17			09-30-17			06-30-17			03-31-17			12-31-16			09-30-17			12-31-16
CB Minimum Capital Requirements		15,653,816			14,393,076			11,608,879			11,206,375			10,577,441			8.8	%		48.0	%
CB Minimum Capital Requirements(a,b)		15,653,816			14,393,076			11,608,879			11,206,375			10,321,905			8.8	%		51.7	%
Increase in capital req. related to custody		—			—			—			—			255,536			n/a			-100.0	%
a) CB Minimum Capital Requirements		15,653,816			14,393,076			11,608,879			11,206,375			10,321,905			8.8	%		51.7	%
Allocated to Asset at Risk		12,726,716			11,661,200			9,046,865			8,785,277			7,926,163			9.1	%		60.6	%
Market Risk		369,204			317,338			287,776			270,773			291,744			16.3	%		26.6	%
Operational Risk		2,557,896			2,414,538			2,274,238			2,150,325			2,103,998			5.9	%		21.6	%
b) Min. Cap. required for the G.F.S. of the Pas-as-you-go System managed by the Argentine Republic and registrar of mortgage notes		—			—			—			—			1,022,144			n/a			-100.0	%
1% of the securities in custody and book-entry notes		—			—			—			—			1,022,144			n/a			-100.0	%
Bank Capital		28,020,200			26,576,668			18,632,561			18,843,971			17,420,859			5.4	%		60.8	%
Ordinary Capital Level 1		26,817,835			25,334,453			17,451,690			17,674,906			16,698,101			5.9	%		60.6	%
Dedusctions Ordinary Capital Level 1		(705,074	)		(634,085	)		(525,144	)		(465,878	)		(390,238	)		11.2	%		80.7	%
Capital Level 2		1,578,420			1,522,575			1,260,472			1,169,850			1,112,996			3.7	%		41.8	%
Aditional Capital Level 1		329,019			353,725			445,543			465,093			—			-7.0	%		n/a
Excess over Required Capital		12,366,384			12,183,592			7,023,682			7,637,596			6,843,418			1.5	%		80.7	%
Capital Ratio (Central Bank rules)		14.7	%		15.1	%		13.1	%		13.8	%		13.8	%		-3.1	%		6.2	%
Excess over Required Capital as a % of Shareholders´Equity		47.5	%		49.4	%		41.6	%		44.5	%		41.6	%		-4.0	%		14.2	%

Additional Information


	Quarter ended															% quarter ended 12-31-17 vs quarter ended
	12-31-17			09-30-17			06-30-17			03-31-17			12-31-16			09-30-17			12-31-16
Exchange rate $/USD		18.77			17.32			16.60			15.38			15.85			8.4	%		18.4	%
Quarterly CER adjustment		5.0	%		4.3	%		7.0	%		4.6	%		4.5	%		16.0	%		10.7	%

- 12 -

LOGO

Conference Call

On Thursday February 15, 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://webcast.engage-x.com/Cover.aspx?PlatformId=prWb5Dn7%2BBGIbBVGiJskWQ%3D%3D

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 Thursday, February 22, 2018.

Replay Access code: 10116495

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

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

BALANCE SHEET (in thousands of pesos)


	12-31-17			09-30-17			06-30-17			03-31-17			12-31-16
Cash and due from banks		37,664,273			27,947,327			37,048,209			41,149,362			48,226,105
Government and Private Securities		34,019,578			30,346,401			25,749,754			24,205,939			12,706,389
Holdings booked at fair value		15,296,342			14,618,707			6,992,766			5,646,590			4,274,229
Holdings booked at amortized cost		1,593,204			1,718,202			965,068			1,243,404			904,089
Listed Private Securities		467,117			313,479			235,863			221,870			153,181
Bills and Notes from the Central Bank		16,663,140			13,696,238			17,556,280			17,094,292			7,375,103
Less: Allowances		(225	)		(225	)		(223	)		(217	)		(213	)
Loans		128,366,202			111,676,202			89,518,146			82,911,605			78,889,921
Loans to the private & financial sector		128,365,984			111,675,935			89,517,907			82,911,449			78,791,102
Advances		11,408,785			10,542,482			9,503,576			9,470,393			9,546,565
Discounted and purchased notes		18,422,745			14,567,969			10,070,029			10,085,833			10,896,722
Secured with mortgages		4,274,738			2,937,234			2,071,739			1,892,840			1,889,443
Car secured loans		8,867,373			8,062,140			6,986,809			6,368,608			5,628,320
Personal loans		16,318,544			13,786,796			11,646,873			10,522,971			9,368,939
Credit cards		30,005,934			25,438,616			23,979,885			23,077,159			22,520,843
Loans to financial sector		3,304,778			2,319,472			2,327,295			1,866,408			1,846,787
Other loans (*)		36,802,495			35,096,861			23,976,984			20,536,695			17,754,130
Less: Unaccrued interest		(593,669	)		(410,090	)		(312,439	)		(315,649	)		(329,346	)
Plus: Interest & FX differences receivable		1,842,056			1,484,684			1,166,756			1,164,083			1,286,851
Less: Allowance for loan losses		(2,287,795	)		(2,150,229	)		(1,899,600	)		(1,757,892	)		(1,618,152	)
Public Sector loans		218			267			239			156			98,819
Principal		146			266			237			155			8,786
Plus: Interest & FX differences receivable		72			1			2			1			90,033
Other banking receivables		13,255,165			19,387,164			9,771,087			26,190,719			2,427,906
Repurchase agreements		6,396,424			5,135,311			3,039,700			9,784,973			—
Unlisted private securities		292,352			302,091			340,851			249,926			325,925
Other banking receivables		6,574,335			13,957,633			6,398,959			16,163,059			2,110,753
Less: provisions		(7,946	)		(7,871	)		(8,423	)		(7,239	)		(8,772	)
Investments in other companies		664,084			606,150			514,077			539,825			510,878
Intangible assets		435,863			407,765			354,534			331,419			315,811
Goodwill		3,117			3,206			3,296			3,386			3,476
Organization and development charges		432,746			404,559			351,238			328,033			312,335
Other assets		11205119			9651880			9,459,638			8,999,121			8,638,393

Total Assets		225,610,284			200,022,889			172,415,445			184,327,990			151,715,403

Deposits		154,050,429			129,948,354			125,674,235			122,822,056			114,621,768
Current accounts		25,009,265			22,757,807			22,820,518			21,574,284			22,202,692
Saving accounts		79,042,213			61,959,175			57,773,687			46,970,057			42,591,155
Time deposits		45,422,288			40,090,913			38,479,709			41,159,552			36,300,192
Investment Accounts		—			1,112			213			85,194			85,194
Rescheduled deposits CEDROS		1,951			1,951			1,951			1,951			1,959
Other deposits		4,574,712			5,137,396			6,598,157			13,031,018			13,440,576
Other banking Liabilities		35,117,533			36,514,676			21,152,694			37,891,164			13,785,069
Other provisions		2,776,104			2,775,198			2,587,759			1,317,224			1,375,154
Other contingencies		2,774,987			2,774,094			2,587,159			1,316,606			1,374,573
Guarantees		1,117			1,104			600			618			581
Other liabilities		6,999,147			5,562,823			5,564,345			4,607,529			4,856,020
Minority interest		610,523			583,026			564,602			535,212			617,357

Total Liabilities		199,553,736			175,384,077			155,543,635			167,173,185			135,255,368

Total Stockholders´ equity		26,056,548			24,638,812			16,871,810			17,154,805			16,460,035

Total liabilities + stockholders’ equity		225,610,284			200,022,889			172,415,445			184,327,990			151,715,403

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

- 14 -

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

INCOME STATEMENT (in thousands of pesos)


	12-31-17			09-30-17			06-30-17			03-31-17			12-31-16
Financial income		7,352,134			6,322,099			5,637,429			5,280,611			5,540,183
Interest on Loans Granted to the Financial Sector		168,982			124,005			109,189			90,605			113,359
Interest on Overdraft		896,503			737,188			679,137			769,018			843,578
Interest on Discounted and purchased notes		749,762			530,848			453,878			463,665			503,617
Interest on Mortgages		116,239			93,877			86,063			88,634			92,677
Interest on Car Secured Loans		300,039			292,115			296,662			298,138			280,469
Interest on Credit Card Loans		1,146,324			1,020,160			1,029,208			1,064,647			1,048,804
Interest on Financial Leases		116,764			110,867			110,471			107,085			108,107
Interest on Other Loans		1,670,184			1,457,403			1,274,390			1,178,537			1,106,035
From Other Banking receivables		2,547			1,715			852			548			185
Interest on Government Guaranteed Loans Decree 1387/01		—			—			—			1,081			6,810
Income from Securities and Short Term Investments		988,022			1,032,478			778,964			592,264			801,184
CER		188,447			112,942			155,398			100,285			97,613
Foreign exchange difference		727,555			634,046			431,991			306,004			458,312
Other		280,766			174,455			231,226			220,100			79,433
Financial expenses		(2,779,372	)		(2,351,616	)		(2,204,490	)		(2,216,835	)		-2,287,923
Interest on Current Account Deposits		(227,419	)		(191,736	)		(95,546	)		(14,811	)		—
Interest on Saving Account Deposits		(10,310	)		(8,785	)		(7,962	)		(7,760	)		(7,817	)
Interest on Time Deposits		(1,704,065	)		(1,443,836	)		(1,457,271	)		(1,534,706	)		(1,618,512	)
Interest on Other Banking Liabilities		(263,472	)		(193,608	)		(207,362	)		(215,259	)		(222,302	)
Other interests (includes Central Bank)		(68	)		(231	)		(312	)		(629	)		(674	)
CER		(12,062	)		(11,463	)		(15,410	)		(1,915	)		(126	)
Bank Deposit Guarantee Insurance system mandatory contributions		(57,365	)		(55,066	)		(52,593	)		(48,777	)		(40,376	)
Mandatory contributions and taxes on interest income		(471,193	)		(400,531	)		(358,932	)		(355,405	)		(352,205	)
Other		(33,418	)		(46,360	)		(9,102	)		(37,573	)		(45,911	)
Net financial income		4,572,762			3,970,483			3,432,939			3,063,776			3,252,260
Provision for loan losses		(377,352	)		(503,013	)		(356,386	)		(323,969	)		(331,013	)
Income from services, net of other operating expenses		1,631,538			1,561,617			1,191,061			1,234,102			1,076,422
Administrative expenses		(3,523,829	)		(3,155,954	)		(3,027,058	)		(2,897,619	)		(2,860,570	)
Income (loss) from equity investments		106,570			118,217			155,131			19,491			17,083
Net Other income		(211,459	)		(121,621	)		(1,168,459	)		855,111			(141,517	)
Income (loss) from minority interest		(27,496	)		(18,425	)		(29,601	)		(27,853	)		(13,547	)
Income before tax		2,170,734			1,851,304			197,627			1,923,039			999,118
Income tax		(749,824	)		(716,724	)		(480,622	)		(317,269	)		(416,713	)
Net income		1,420,910			1,134,580			(282,995	)		1,605,770			582,405

- 15 -

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


	12-31-17		09-30-17		06-30-17		03-31-17		12-31-16
Cash and due from banks		37,664,382		27,947,332		37,048,209		41,149,363		48,226,107
Government Securities		34,048,445		30,376,295		25,780,524		24,238,431		12,738,809
Loans		128,366,202		111,676,199		89,518,146		82,911,605		78,889,921
Other Banking Receivables		13,255,165		19,387,164		9,771,087		26,190,719		2,427,906
Assets Subject to Financial Leasing		2,366,434		2,213,865		2,177,021		2,088,865		2,046,971
Investments in other companies		658,594		600,609		509,594		535,221		507,625
Other assets		9,283,380		7,855,448		7,643,197		7,250,043		6,915,372

Total Assets		225,642,602		200,056,912		172,447,778		184,364,247		151,752,711

Deposits		154,050,302		129,947,789		125,674,032		122,822,030		114,621,753
Other banking liabilities		35,117,665		36,514,712		21,152,694		37,891,313		13,785,682
Minority interest		615,220		587,767		568,437		539,151		620,141
Other liabilities		9,802,867		8,367,832		8,180,805		5,956,948		6,265,100

Total Liabilities		199,586,054		175,418,100		155,575,968		167,209,442		135,292,676

Total Stockholders´Equity		26,056,548		24,638,812		16,871,810		17,154,805		16,460,035

Stockholders´Equity + Liabilities		225,642,602		200,056,912		172,447,778		184,364,247		151,752,711

NET INCOME


	12-31-17			09-30-17			06-30-17			03-31-17			12-31-16
Net Financial Income		4,574,615			3,972,703			3,433,241			3,066,449			3,253,700
Provision for loan losses		(377,352	)		(503,013	)		(356,386	)		(323,969	)		(331,013	)
Net Income from Services		1,631,538			1,561,617			1,191,061			1,234,102			1,076,422
Administrative expenses		(3,527,314	)		(3,157,604	)		(3,029,516	)		(2,899,037	)		(2,856,270	)
Net Other Income		(103,300	)		(3,069	)		(1,011,209	)		874,626			(132,186	)
Income Before Tax		2,198,187			1,870,634			227,191			1,952,171			1,010,653
Income Tax		(749,824	)		(716,724	)		(480,689	)		(317,392	)		(416,849	)
Net income		1,448,363			1,153,910			(253,498	)		1,634,779			593,804
Minoritary Interest		(27,453	)		(19,330	)		(29,497	)		(29,009	)		(11,399	)
Net income for Quarter		1,420,910			1,134,580			(282,995	)		1,605,770			582,405

- 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.