Edgar Filing: BBVA BANCO FRANCES SA

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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 March 2019

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 2018.

LOGO

Buenos Aires, March 11, 2019—BBVA Francés (NYSE: BFR.N; BCBA: FRA.BA;

LATIBEX: BFR.LA) reports consolidated fourth quarter results for the

January-December 2018 fiscal year.

The quarterly and annual consolidated financial statements are presented according to Communication “A” 6114 of the Central Bank of Argentina (BCRA) (“financial statements under IFRS regulations”) which was implemented on January 1, 2018. For comparative purposes, 2017 figures are also presented in accordance with IFRS.

Highlights of the year

•

BBVA Francés’ recorded a net income of AR$ 9,613.7 million as of December 31, 2018, registering a 114.6% increase over the result of 2017, 28.5% average return on equity and 3.4% average return on assets.

•

Net operating income amounted to AR$ 37,618.2 million, increasing 56.5% compared to the previous year, while operating expenses amounted to AR$ 24,666.2 million, showing an increase of 34.5% during the period.

•

Revenues were supported by the growth in net interest income, which increased 79.9% during the year, mainly due to the rise in interest rates, by net fee income results, which grew at a similar pace and by the result generated by foreign exchange difference, which includes both, the impact of the devaluation and of foreign exchange transactions, all partially offset by the increase of provisions for loan losses.

•

Regarding expenses, personnel expenses grew 30.3% in the year, below inflation, mainly as a result of the staggered payment of the salary increase, while administrative expenses grew 39.1% in the same period.

•

Accumulated efficiency ratio was 49.6% at the end of 2018 registering a decrease compared to 60.6% during the last quarter of 2017.

•

In terms of activity, it is important to mention that the balances as of December 2017 included the Bank’s stake in Volkswagen Financial Services Compañia Financiera, presented on a consolidated basis. The private sector loan portfolio increased by 42.2% in the last twelve months, although including the aforementioned portfolio, growth would have reached 47.9%. The consolidated market share with related companies was 8.71% at the end of the year, earning 40 basis points (bp) compared to the December 2017 quota.

•

As of December 31, 2018, the asset quality ratio (Non-Performing Loans/Total loans) reached 1.92%, with a coverage of 119.19% (Total allowances/NPL). It is important to note that although asset quality indicators show some deterioration, they remain at the lowest levels in the financial system.

•

Total deposits rose 68.6% during the year, growing at a faster pace than loans, basically driven by the interest rate hike and the disbanding of the Lebac portfolio implemented during the year by the Central Bank of Argentina (BCRA).

•

On November 8, 2018, BBVA Francés issued its Series 25 UVAs bond for AR$ 784.3 million, with 24 months maturity and 9.5% fixed interest rate payable quarterly.

•

As of December 31, 2018, BBVA Francés had a total consolidated capital ratio of 14.3%, which represents an excess of AR$ 16,155.7 million or 74.1% over the minimum required. The Tier I ratio reached 13.5%.

•

Liquid assets accounted for 55.2% of the bank’s total deposits as of December 31, 2018.

•

The bank continued to increase its client base, reaching a total of 2.9 total clients.

•

On October 30, 2018, BBVA Francés recorded the deed to its headquarters offices, Torre BBVA, located at Av. Leandro N. Alem 815, Buenos Aires. As a consequence of such notarized recording, USD 4.8 million was paid.


Condensed Income Statement (1) In thousands of pesos except income per share, income per ADS	FY 2018			FY 2017			D%
Net interest income		26,129,314			14,523,074			79.9	%
Net fee income		4,795,923			2,566,013			86.9	%
Net income of financial instruments		106,620			2,639,026			-96.0	%
Result from assets at amortised cost		(121,400	)		6,723			n/a
Foreign exchange difference		5,306,709			2,099,742			152.7	%
Other operating income		4,862,125			3,906,097			24.5	%
Provision for loan losses		(3,461,077	)		(1,704,000	)		103.1	%
Net operating incomc		37,618,214			24,036,675			56.5	%
Personnel expenses		(8,961,174	)		(6,875,018	)		30.3	%
Administrative expenses		(7,177,071	)		(5,160,421	)		39.1	%
Depreciation and amortization of assets		(876,371	)		(650,873	)		34.6	%
Other operating expenses		(7,651,564	)		(5,659,371	)		35.2	%
Operating Expenses		(24,666,180	)		(18,345,683	)		34.5	%
Operating income		12,952,034			5,690,992			127.6	%
Income from associates and joint ventures		780,554			433,939			79.9	%
Net incomc before incomc tax		13,732,588			6,124,931			124.2	%
Income tax from continuing operations		(4,027,412	)		(1,607,976	)		150.5	%
Net income including non-controlling shareholders		9,705,176			4,516,955			114.9	%
Net income attributable to non-controlling shareholders		91,489			37,161			146.2	%
Net income		9,613,687			4,479,793			114.6	%
Other comprehensive income		(21,058	)		(87,427	)		-75.9	%
Total net income		9,592,629			4,392,366			118.4	%
Earnings per share (2)		15.69			7.86			99.6	%
Earnings per ADS (3)		47.08			23.58			99.6	%

(1)	Exchange Rate: $ 37.8083 = u$s 1

(2)	Assumes 612,659,638 ordinary shares.

(3)	Each ADS represents three ordinary shares

Other events

•

On February 1, 2019 within the framework of the Divestment Commitment assumed by Prisma Medios de Pago S.A. and its shareholders to the antitrust regulatory authority (Comisión Nacional de Defensa de la Competencia), 2,344,064 common book-entry shares with a par value of $ 1 each and one vote per share, owned by the Bank in Prisma Medios de Pago S.A. were transfer to AI ZENITH (Netherlands) B.V. (company associated with Advent International Global Private Equity), equivalent to 51% of the Bank’s shareholding in said company.

The estimated total price adjusted at the closing date is USD 78.3 million, of which the Bank received USD 46.5 million. Payment of the USD 31.8 million difference will be deferred over the next five years. 30% of said amount will be paid in AR pesos adjusted by the CER at 15% nominal annual rate and 70% will be paid in USD at a nominal annual rate of 10%.

- 2 -

•

On February 28, 2019, BBVA Francés issued its Series 26 bond for AR$ 529.4 million, with 9 month maturity and a fixed 43% interest rate payable at maturity, and its Series 27 bond for AR$ 1,090 million, with 18 months maturity at Badlar + 6.25% with quarterly payments.

•

On March 8, 2019, the Board of BBVA Francés decided to submit to the Shareholders’ Meeting the proposed merger by absorption of BBVA Francés Valores S.A, with the objective of optimizing operating costs by unifying resources and processes.

•

The Board of BBVA Francés, based on the results for the year ended December 31, 2018, has resolved to propose to the Shareholder’s Meeting, the payment of dividends in cash for the total amount of $ 2,407 million, under the new BCRA regulations, prior authorization is not required.

Regulatory Changes

•

The BCRA, through its Communication “A” 6641 dated February 1, 2019, redefined the structure of minimum cash requirements, establishing for sight deposits a minimum requirement of 30% integrated in cash, 5% integrated in BOTES 2020 and 10% integrated in Leliq. For time deposits up to 29 days, these percentages are 17%, 5% and 13% respectively. These requirements are reduced as the term of the deposits increases, reaching 0% reserve requirement for deposits longer than 90 days.

•

On February 7, 2019, the BCRA established that the net daily position that financial entities hold in Leliqs and repo transactions in local currency against the BCRA could not exceed the highest between the regulatory capital (referred to as “Responsabilidad Patrimonial Computable” or RPC) or the 65% of the daily average of total deposits in pesos, excluding the ones from the financial sector, both from the previous month. For entities that are above these limits at the date of publication of this communication, they will be allowed to gradually decrease their position from 100% to the limit of 65% with deadline April 30, 2019.

•

As a result of the increase in inflation in the last years, the Argentine economy is considered hyperinflationary. Therefore, IAS 29 should be applied in connection with annual financial statements or interim financial statements ending after July 1, 2018.

The application of the guidelines established by the IAS 29 are exempt, and its validity will be effective from January 1, 2020, as established by the BCRA through its Communication “A” 6651 issued on February 22, 2019. Therefore BBVA Frances has not applied such requirements and will not restate its financial statements until such date.

Economic Environment


		Quarter ended
Main Macroeconomic figures		12-31-18			09-30-18			12-31-17
GDP	var % y/y		n/d			-3.5	%		3.9	%
Inflation (1) End of period	var % y/y		47.6	%		40.5	%		24.8	%
	var % q/q		11.5	%		14.1	%		6.1	%
CER	Quarterly adjustment		16.3	%		10.1	%		5.0	%
Exchange Rate	Pesos x US$		37.81			40.90			18.77
Reserves	US$		65,806			49,003			55,055
Fiscal Balance	Primary - billion of $		(185,672	)		(47,490	)		(181,763	)
Trade Balance	US$ (billion)		2,631			(1,589	)		(3,311	)
Total Private Loans	var % q/q		-4.2	%		11.0	%		14.2	%
	var % y/y		33.0	%		58.6	%		51.7	%
Total Private Deposits	var % q/q		11.0	%		18.6	%		14.2	%
	var % y/y		61.5	%		66.2	%		29.2	%
Interest rate	Monetary policy (eop)		59.3	%		65.0	%		28.8	%
	Badlar (weighted avg. quarterly)		50.2	%		37.1	%		22.4	%

From August 8, 2018, the reference rate of the monetary policy is the one of the Leliq rate. From October 1, 2018, the reference rate is defined as the average rate resulting from daily operations of Leliq with financial institutions.

- 3 -

In 2018, economic activity was affected by the poor harvest due to the severe drought that occurred at the beginning of the year, and then due to the FX crisis. In the third quarter of 2018, the GDP showed a yearly decrease of 3.5%. The Monthly Economic Activity Indicator (EMAE) with data as of December, decreased 7% over the year, but increased 0.7% seasonally adjusted, compared to November.

In 2018, the fiscal balance reached a primary deficit of 2.4% of GDP, which implied the over-fulfillment of the 2.7% fiscal target agreed with the IMF.

The public sector fiscal balance accumulated a primary deficit of AR$ 339 billion, a 16% decrease compared to the AR$ 404 billion deficit from 2017. Taking into account the interest payments over the public debt, the deficit accumulated AR$389 billion, increasing 72.9% over the year.

The inflation rate accelerated from the end of the first quarter mainly due to the pass-through of the currency devaluation to prices, and hit the record of 14.1% in the third quarter, decelerating slightly in the last quarter, reaching 11.5% and accumulating 47.6% in the year.

The labor market also began to show the effects of the recession, with an increase in the unemployment rate in September 2018 (latest available data) to 9.6% from 7.2% at the end of 2017.

In the fourth quarter of 2018, the trade balance reached a surplus of USD 2.6 billion in contrast with the USD 3.3 billion deficit recorded in the same period of last year.

Due to the deceleration in the activity level demand for credit declined sharply. Thus, during the fourth quarter of 2018, the stock of loans to the private sector decreased by 4.2% compared to the 11% increase in the previous quarter. In annual terms, the stock of loans to the private sector increased 33%, considerably less than the 52.6% recorded in the third quarter of the year.

Private sector deposits increased 11% in the quarter and 61.5% in the last twelve months, mainly boosted by local currency deposits, which grew 18.7% and 41.1%, respectively. It’s important to highlight the stability of deposits, which evidences the scarce transmission of the FX crisis to the financial sector.

Presentation of the Information

•

The consolidated financial statements as of December 30, 2018 and as of September 30, 2018 are presented in accordance with Communication “A” 6114 of the Central Bank of Argentina (BCRA) (financial statements under IFRS regulations). For a better comparison the exposed figures for the fourth quarter of 2017 were adequate according to the current accounting framework.

•

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 (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 recorded as “Investments in associates” (recorded under the proportional equity method), and the corresponding results are recorded as “Income from associates”, as with Rombo Compañia Financiera. As of September 25, 2018, the Bank’s share interest in Volkswagen Financial Services is no longer disclosed on a consolidated basis.

•

The balances in foreign currency as of December 31, 2018 were converted into pesos at the reference exchange rate published by the BCRA for such date (AR$ 37.8083/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 9 and the impact of inflation adjustment according to IAS 29.

- 4 -

Quarterly Results


Condensed Income Statement (1)				Quarter ended						D% Quarter ended 12/31/18 vs Quarter ended
In thousands of pesos except EPS, ADS	12-31-18			09-30-18			12-31-17			09-30-18			12-31-17
Net interest income		8,462,827			6,564,330			4,111,895			28.9	%		105.8	%
Net fee income		1,504,195			1,855,906			638,005			-19.0	%		135.8	%
Net income of financial Instruments		197,044			138,510			783,930			42.3	%		-74.9	%
Result from assets at amortised cost		(67,243	)		12,774			—			-626.4	%		n/a
Foreign exchange difference		977,628			1,624,223			727,560			-39.8	%		344	%
Other operating income		1,206,843			1,152,946			652,281			4.7	%		85.0	%
Provision for loan losses		(1,097,883	)		(1,032,752	)		(308,991	)		6.3	%		255.3	%
Net operating income		11,183,411			10,315,937			6,604,680			8.4	%		69.3	%
Personnel expenses		(2,570,310	)		(2,503,707	)		(2,005,951	)		2.7	%		28.1	%
Administrative expenses		(2,196,156	)		(1,826,091	)		(1,369,329	)		20.3	%		60.4	%
Depreciation and amortization of assets		(249,685	)		(219,784	)		(181,933	)		13.6	%		37.2	%
Other operating expenses		(2,433,597	)		(1,635,777	)		(1,388,180	)		48.8	%		75.3	%
Operating Expenses		(7,449,748	)		(6,185,359	)		(4,945,393	)		20.4	%		50.6	%
Operating income		3,733,663			4,130,578			1,659,287			-9.6	%		125.0	%
Income from associates and joint ventures		570,342			48,892			47,278			1066.5	%		1106.4	%
Net income before incomc tax		4,304,005			4,179,470			1,706,565			3.0	%		152.2	%
Income tax from continuing operations		(1,366,363	)		(1,131,938	)		(357,150	)		20.7	%		282.6	%
Net income including non-controlling shareholders		2,937,642			3,047,532			1,349,415			-3.6	%		117.7	%
Net income attributable to non-controlling shareholders		1,014			39,691			9,958			—			—
Net income		2,936,628			3,007,841			1,339,457			-2.4	%		119.2	%
Other comprehensive income		51,475			(117,469	)		17,720			n/a			190.5	%
Total net income		2,988,103			2,890,372			1,357,177			3.4	%		120.2	%
Earnings per share (2)		4.79			4.91			2.19			-2.4	%		119.2	%
Earnings per ADS (3)		14.38			14.73			6.56			-2.4	%		119.2	%

(1)	Exchange Rate: $37.8083 = u$s 1

(2)	Assumes 612,659,638 ordinary shares.

BBVA Francés’ net income amounted to AR$ 2,937.6 million for the fourth quarter of 2018, registering an increase of 119.2% compared to the fourth quarter of 2017, and decreasing 2.4% compared to the third quarter of 2018.


Main figures				Quarter ended						Dbp Quarter ended 12/31/18 vs Quarter ended
	12-31-18			09-30-18			12-31-17			09-30-18			12-31-17
ROA (Average Assets) (1)		3.4	%		4.0	%		2.7	%		(58	)		71
Accumulated ROA		3.4	%		3.4	%		2.4	%		1			101
ROE (Average Shareholders’ Equity) (1)		31.38	%		34.8	%		18.2	%		(343	)		1,321
Accumulated ROE		28.5	%		27.4	%		18.2	%		106			1,032
NIM (1)(2)		13.22	%		11.6	%		11.7	%		160			150
NIM with foreign exchange difference (1)(2)		15.47	%		15.0	%		13.9	%		51			156
Efficiency ratio (3)		48.0	%		46.6	%		58.8	%		142			(1,079	)
Accumulated Efficiency ratio		49.6	%		50.3	%		60.0	%		(68	)		(1,041	)

(1)	Annualized.

(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))

- 5 -

Net Operating Income


Net operating income				Quarter ended						D% Quarter ended 12/31/18 vs Quarter ended
In thousands of pesos	12-31-18			09-30-18			12-31-17			09-30-18			12-31-17
Net interest income		8,462,827			6,564,330			4,111,895			28.9	%		105.8	%
Net fee income		1,504,195			1,855,906			638,005			-19.0	%		135.8	%
Net income of financial instruments		197,044			138,510			783,930			42.3	%		-74.9	%
Result from assets at amortised cost		(67,243	)		12,774			—			-626.4	%		n/a
Foreign exchange difference		977,628			1,624,223			727,560			-39.8	%		34.4	%
Other operating income		1,206,843			1,152,946			652,281			4.7	%		85.0	%
Provision for loan losses		(1,097,883	)		(1,032,752	)		(308,991	)		6.3	%		255.3	%
Net operating income		11,183,411			10,315,937			6,604,680			8.4	%		69.3	%

Net operating income amounted to AR$ 11,183.4 million, increasing by 8.4% compared to the third quarter of 2018 and by 69.3% compared to the last quarter of 2017.

As a clarification, a reclassification was performed during the third quarter due to the change in criteria regarding the deferral of credit card emission fees, which were previously recorded as net interest income and are now recorded as net fee income and other operating income.

The items that make up net operating income are disclosed in more detail below.

•

Net interest income


Net Interest Income	Quarter Ended						D% Quarter ended 12/31/18 vs Quarter ended
(In thousands of pesos)	12-31-18		09-30-18		12-31-17		09-30-18			12-31-17
Interest Income		17,731,588		12,299,911		6,246,089		44.2	%		183.9	%
Loan interest income		10,591,572		8,535,228		5,637,629		24.1	%		87.9	%
Income from adjustments (CER/UVA)		2,095,561		977,884		188,447		114.3	%		1012.0	%
Income from Public Securities		4,401,601		2,092,036		58,433		110.4	%		n/a
Others		642,854		694,763		361,580		-7.5	%		77.8	%
Interest Expenses		-9,268,761		-5,735,581		-2,134,194		61.6	%		334.3	%
Interest Expenses		-8,819,963		-5,513,716		-2,122,132		60.0	%		315.6	%
Expenses from adjustments (CER/UVA)		-448,798		-221,865		-12,062		102.3	%		n/a
Net Income Interest		8,462,827		6,564,330		4,111,895		28.9	%		105.8	%

Net interest income increased by 28.9% compared to the previous quarter and by 105.8% compared to the third quarter of 2017.

Compared to the third quarter of 2018, interest income increased by 44.2% whereas interest expenses increased by 61.6% mainly due to an abrupt rise in interest rates that occurred during the quarter and certain deterioration in the funding mix.

Net interest income registered a positive performance, sustained by the increasing rates of loans and government securities and the increase in inflation, jointly with an effective price management in the different products, both in assets and in liabilities, in a volatile environment.

NIM


Interest-Earning Assets & Interest-Bearing Liabilities $ + USD	12-31-2018						Quarter ended 09-30-18						12-31-17
(Average in thousands of pesos)	Capital			Rate			Capital			Rate			Capital			Rate
Interest-Earning Assets		217,129,504			33.0	%		195,017,912			26.4	%		145,446,734			19.1	%
Interest-Bearing Liabilities		200,277,049			18.26	%		175,167,474			12.96	%		106,789,199			8.2	%
NIM without foreign exchange differences		13.22	%					11.62	%					11.71	%
NIM including foreign exchange differences		15.47	%					14.96	%					13.91	%
NIM $ without foreign exchange differences		17.38	%					14.37	%					14.66	%
NIM USD without foreign exchange differences		4.02	%					5.14	%					2.35	%

- 6 -

The net interest margin (NIM) including the results for foreign currency exchange differences amounted to 15.47%, registering an increase in comparison to the 14.96% showed in the previous quarter; while net of this effect, it registered an increase from 11.62% to 13.22%

The NIM in local currency (excluding FX differences) amounted to 17.38%, reflecting a significant increase compared to 14.37% in the previous quarter, mainly due to the strong increase in lending rates, for both loans and public sector instruments which were compensated with higher liability rates

The NIM in foreign currency decreased 112 bps, amounting 4.02%, mainly as a result of the decrease in loan rates.

The following table shows return on assets and cost of liabilities by currency: in pesos and in US dollars.


Interest-Earning Assets & Interest-Bearing						Quarter ended
Liabilities $	12-31-18					09-30-18					12-31-17
(Average in thousands of pesos)	Capital		Rate			Capital		Rate			Capital		Rate
Interest-Earning Assets		149,500,133		45.9	%		136,862,249		35.3	%		109,039,974		24.4	%
Public sector instruments		33,205,496		55.4	%		20,441,917		43.1	%		14,249,479		26.8	%
Loans		115,744,267		43.1	%		115,681,170		33.9	%		93,767,215		24.0	%
Other interest-earning assets		550,371		50.0	%		739,163		40.8	%		1,023,280		23.7	%
Interest-Bearing Liabilities		107,301,171		33.8	%		93,028,375		24.0	%		66,586,750		13.1	%
Saving Accounts		25,939,217		0.2	%		25,874,014		0.2	%		24,317,876		0.2	%
Time Deposits		59,059,496		44.9	%		48,467,831		32.5	%		34,088,782		19.9	%
Current accounts with interest		18,001,228		41.5	%		13,185,778		34.2	%		4,025,590		22.5	%
Debt Securities		2,169,727		57.7	%		1,714,760		39.7	%		1,032,839		25.7	%
Other interest-bearing liabilities		2,131,504		45.6	%		3,785,992		36.3	%		3,121,663		24.1	%
NIM$		17.38%					14.37%					14.66%

Interest-Earning Assets & Interest-Bearing						Quarter ended
Liabilities USD	12-31-18					09-30-18					12-31-17
(Average In thousands of pesos)	Capital		Rate			Capital		Rate			Capital		Rate
Interest-Earning Assets		67,629,371		4.7	%		58,155,663		5.5	%		36,406,760		3.2	%
Public sector instruments		7,613,872		5.3	%		6,606,976		7.4	%		8,547,216		3.8
Loans		58,412,232		4.7	%		50,268,084		5.4	%		25,735,735		3.3	%
Other interest-earning assets		1,603,267		1.3	%		1,280,602		1.2	%		2,123,808		0.7	%
Interest-Bearing Liabilities		92,975,878		0.4	%		82,139,099		0.4	%		40,202,449		0.1	%
Saving Accounts		71,129,594		0.0	%		62,958,906		0.0	%		31,739,478		0.0	%
Time Deposits		16,177,943		0.6	%		14,323,872		0.8	%		1,122,036		0.2	%
Current accounts with interest		448,104		0.0	%		109,912		0.0	%		7,066,901		0.6	%
Other interest-bearing liabilities		5,220,237		4.4	%		4,746,409		5.1	%		274,034		2.7	%
NIM USD		4.02%					5.14%					2.35%

•

Net fee income


Net fee Income	Quarter ended						D% Quarter ended 12/31/18 vs quarter ended
(in thousands of pesos)	12-31-18		09-30-18		12-31-17		09-30-18			12-31-17
Net fee income		1,504,195		1,855,906		638,005		-19.0	%		135.8	%
Fee income		3,562,964		3,847,287		1,935,777		-7.4	%		84.1	%
Fee charges on deposits accounts		1,069,235		934,307		726,162		14.4	%		47.2	%
Credit cards and operations		1,440,625		1,991,447		505,236		-27.7	%		185.1	%
Checks		301,939		256,400		225,396		17.8	%		34.0	%
Capital markets and securities activities		40,156		35,673		47,010		12.6	%		-14.6	%
Fees related to foreign trade		165,003		136,280		78,725		21.1	%		109.6	%
Services of collection		446,457		373,897		218,137		19.4	%		104.7	%
Generated by subsidiaries		72,603		74,784		98,850		-2.9	%		-26.6	%
Other fees		26,945		44,499		36,261		-39.4	%		-25.7	%
Fee Expenses		-2,058,769		-1,991,381		-1,297,772		3.4	%		58.6	%

Net fee income decreased 19% compared to the previous quarter, and increased 135.8% compared to the fourth quarter of 2017, partially as a consequence of the aforementioned reclassification.

Fee income decreased by 7.4% compared to the third quarter of 2018, mainly due to lower fees on credit cards and operations. In addition, recurrent annual income, accounted for during the previous quarter was included in this line item. This was partially offset with the increase in fees charged on deposits accounts and fees on collection services. Compared to the last quarter of 2017, fee income increased 84.1%.

- 7 -

It’s important to clarify that, despite the lower fees on credit cards and operations, BBVA Francés continued to gain market share in credit card consumption (it increased by 40 bp during the quarter) reaching 13.97% of the market.

Fee expenses increased by 3.4% over the quarter and by 58.6% compared to the last quarter of 2017, mainly due to fees related to the loyalty program and customer acquisition campaigns, offset by lower costs on card processing.

In the new disclosure format applied beginning 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 12/31/18 vs quarter ended
at fail value through profit or loss (in thousands of pesos)	12-31-18			09-30-18			12-31-17			09-30-18			12-31-17
Net income of financial instruments at fail value		197,044			138,510			783,930			42.3	%		-74.9	%
Income from public securities		338,665			212,634			765,493			59.3	%		-55.8	%
Income from private securities		(264,903	)		163,077			(43,893	)		-262.4	%		503.5	%
Income from interest rate swaps		(154,737	)		(251,232	)		(20,527	)		-38.4	%		424.1	%
Non deliverable forward		255,661			20,431			77,124			1151.3	%		231.5	%
Income from corporate bonds		22,358			(6,400	)		14,733			-449.3	%		51.8	%

Net income from measurement of financial instruments at fair value recorded a gain in the last quarter of AR$ 197 million compared to a gain of AR$ 138.5 million registered in the third quarter of 2018.

The increase is mainly due to higher income from public securities and to the growth in the non-deliverable forward, which was partially offset by the loss registered in income from interest rate swaps.

•

Foreign exchange difference


Foreign Exchange Difference	Quarter Ended						D % Quarter ended 12/31/18
(in thousands of pesos)	12-31-18		09-30-18		12-31-17		09-30-18			12-31-17
Foreign Exchange Difference		977,628		1,624,223		727,560		-39.8	%		34.4	%
FX trading		1,392,557		1,268,577		525,440		9.8	%		165.0	%
long/Short FX net balance		-414,929		355,646		202,120		-216.7	%		-305.3	%

Foreign exchange difference registered the income generated by foreign currency buying and selling activity, which was partially offset by a loss resulting from the appreciation of the local currency.

•

Other operating income


Other Operating Income	Quarter ended						D % Quarter ended 12/31/18
(in thousands of pesos)	12-31-18		09-30-18		12-31-17		09-30-18			12-31-17
Operating Income		1,206,843		1,152,946		652,281		4.7	%		85.0	%
Safe deposits		113,798		112,481		94,965		1.2	%		19.8	%
Insurance		196,278		172,985		161,270		13.5	%		21.7	%
Fees on USD credit cards consumption		132,134		220,917		86,185		-40.2	%		53.3	%
Interest on loans and fees related		178,668		214,465		120,730		-16.7	%		48.0	%
Other fees		130,737		122,358		62,537		6.8	%		109.1	%
Total other fees		751,615		843,206		525,687		-10.9	%		43.0	%
Other operating income		455,228		309,740		126,594		47.0	%		259.6	%

- 8 -

Other operating income registered an increase of 4.7% in the quarter and 85% over the year. Total other fees decrease 10.9% in the quarter mainly due to lower credit card consumption in foreign currency.

Operating Expenses


Operating Expenses	Quarter ended									D% Quarter ended 12/31/18 vs
In thousands of pesos	12-31-18			09-30-18			12-31-17			09-30-18			12-31-17
Personnel expenses		(2,570,310	)		(2,503,707	)		(2,005,951	)		2.7	%		28.1	%
Administrative expenses		(2,196,156	)		(1,826,091	)		(1,369,329	)		20.3	%		60.4	%
Depreciation and amortization of assets		(249,685	)		(219,784	)		(181,933	)		13.6	%		37.2	%
Other operating expenses		(2,433,597	)		(1,635,777	)		(1,388,180	)		48.8	%		75.3	%
Operating Expenses		(7,449,748	)		(6,185,359	)		(4,945,393	)		20.4	%		50.6	%

Operating expenses amounted to AR$ 7,449.7 million, registering an increase of 20.4% and 50.6% compared to the previous quarter and to the third quarter of 2017, respectively.

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 12/31/18 vs quarter ended
(in thousands of pesos)	12-31-18			09-30-18			12-31-17			09-30-18			12-31-17
Personnel expenses		(2,570,310	)		(2,503,707	)		(2,005,951	)		2.7	%		28.1	%
Administrative expenses		(2,196,156	)		(1,826,091	)		(1,369,329	)		20.3	%		60.4	%
Electricity and Communications		(119,859	)		(76,620	)		(46,873	)		56.4	%		155.7	%
Advertising and Promotion		(66,638	)		(88,421	)		(113,582	)		-24.6	%		-41.3	%
Fees and external administrative services		(106,908	)		(81,433	)		(64,423	)		31.3	%		65.9	%
Taxes		(500,439	)		(431,360	)		(311,467	)		16.0	%		60.7	%
Rents		(241,748	)		(222,143	)		(130,098	)		8.8	%		85.8	%
Maintainance, conservation and repairs		(224,436	)		(201,822	)		(145,242	)		11.2	%		54.5	%
Security Service		(71,750	)		(78,428	)		(78,239	)		-8.5	%		-8.3	%
Carriage of valuables		(417,277	)		(249,620	)		(178,757	)		67.2	%		133.4	%
Other		(447,101	)		(396,244	)		(300,648	)		12.8	%		48.7	%

Total Employees		6,107			6,095			6,082			12			25

Total Branches		252			251			251			0			0

Personnel expenses increased by 2.7% compared to the third quarter of 2018 and 28.1% compared to the last quarter of 2017, whereas administrative expenses increased by 20.3% and by 60.4% in such periods, respectively.

The variation in personnel expenses is mainly due to the update in salaries arising from the agreements signed with the labor union and its compensation schemes, and to higher training costs due to the implementation of the new organizational methodology: Agile.

Administrative expenses increased during the quarter mainly due to an increase in taxes, as a result of higher activity levels, the increase in foreign currency exchange rates and higher charges on carriage of valuables and electricity and communications due to the increase in tariffs.

The efficiency ratio in the quarter amounted 48%, showing a decrease of 1,079 bps compared to the fourth quarter of 2017.

- 9 -

•

Other operating expenses


										D% Quarter ended 12/31/18 vs
Other Operating expenses				Quarter ended						Quarter ended
(In thousands of pesos)	12-31-18			09-30-18			12-31-17			06-30-18			09-30-17
Operating expenses		(2,433,597	)		(1,635,777	)		(1,388,180	)		48.8	%		75.3	%
Gross income tax		(1,278,288	)		(1,190,211	)		(681,458	)		7.4	%		87.6	%
Gross Income tax NII		(1,000,700	)		(899,410	)		(466,808	)		11.3	%		114.4	%
Gross income tax fees		(277,588	)		(290,801	)		(214,650	)		-4.5	%		29.3	%
Cost of deposits insurence		(102,795	)		(86,186	)		(57,314	)		19.3	%		79.4	%
Other operating expenses		(1,052,514	)		(359,380	)		(649,408	)		192.9	%		62.1	%

Other operating expenses registered an increase in gross income tax, as a result of the increase in interest rates, fees and income from foreign currency exchange difference. In addition, an adjustment was recorded in other operating expenses, to reflect the rate differential between the applied rate and the market rate in credit card financing operations.

Income from associates

Income from associates shows the result of non-consolidated companies. During the fourth quarter a gain of AR$ 570.3 million was recorded, mainly due to the equity investment in BBVA Seguros, Volkswagen Financial Services, PSA Finance and Rombo Compañía Financiera.

Balance and activity

Loan portfolio


										D% Quarter ended 12/31/18 vs
Net loans				Quarter ended						quarter ended
(In thousands of pesos)	12-31-18			09-30-18			12-31-17			09-30-18			12-31-17
Private & Financial sector loans, in $		120,781,796			116,528,630			98,790,429			3.6	%		22.3	%
Advances		11,781,284			16,396,066			11,693,061			-28.1	%		0.8	%
Discounted and purchased notes		18,382,585			16,482,797			17,160,711			11.5	%		7.1	%
Consumer Mortgages		10,110,286			8,718,885			4,457,821			16.0	%		126.8	%
Car secured loans		1,660,242			1,774,642			4,539,300			-6.4	%		-63.4	%
Personal loans		23,586,938			21,923,282			16,638,201			7.6	%		41.8	%
Credit cards		40,622,378			35,449,792			28,544,070			14.6	%		42.3	%
Loans to financial sector		9,417,009			9,587,944			4,555,025			-1.8	%		106.7	%
Other loans		6,340,846			6,263,657			11,125,057			1.2	%		-43.0	%
Other receivables		3,593,650			4,092,402			2,659,552			-12.2	%		35.1	%
Unaccrued interest		(1,560,431	)		(1,151,897	)		(593,526	)		35.5	%		162.9	%
Less: Allowance for loan losses		(3,152,991	)		(3,008,940	)		(1,988,843	)		4.8	%		58.5	%
Private & Financial sector loans in FX		60,640,344			62,109,756			28,806,643			-2.4	%		110.5	%
Commercial Loans		59,606,255			60,993,431			27,413,387			-2.3	%		117.4	%
Advances		8,029			9,541			14,203			-15.8	%		-43.5	%
Discounted and purchased notes		7,492,197			7,213,658			1,660,291			3.9	%		351.3	%
Credit cards		1,886,633			1,971,601			1,600,754			-4.3	%		17.9	%
Loans to financial sector		252,704			136,702			94,089			84.9	%		168.6	%
Other loans		51,803,409			53,447,923			25,615,848			-3.1	%		102.2	%
Other receivables		302,620			322,309			123,045			-6.1	%		145.9	%
Less: Allowance for loan losses		(1,105,248	)		(991,978	)		(301,587	)		11.4	%		266.5	%

Total Private Loans		181,422,140			178,638,386			127,597,072			1.6	%		42.2	%

Total loans to public sector		207			177			218			16.9	%		-5.0	%

Net Total Loans net of other non resident loans		181,422,347			178,638,563			127,597,290			1.6	%		42.2	%

As of the third quarter, Volkswagen Financial Services Compañia Financiera is no longer recorded on a consolidated basis. Such figures were recorded under car secured loans.

- 10 -

As of December 31, 2018, the private sector loan portfolio amounted to AR$ 181.4 billion, maintaining similar levels to those of the previous quarter, and increasing by 42.2% in the last twelve months. Including Volkswagen Financial Services, the private sector loan portfolio would have increased by 47.9% in the year.

As of December 31, 2018 the market share of loans reached 8.71%, including loans from associated companies (VW Financial Services, PSA Finance and Rombo Compañia Financiera), showing an increase of 40 bp in the last 12 months.

Credit growth was affected due to the devaluation of the peso and higher interest rates.

Loans in AR$ increased 3.6% in the quarter and 22.3% in the last twelve months (4.3% and 29.7% respectively including VW), while U.S dollar denominated loans decreased 2.4% in the quarter and increased 110.5% in the last twelve months, mainly due to the re-expression to the new value of the currency, meanwhile, measured in U.S dollars they increased around 6% in both periods.

In retail banking, positive growth was recorded in connection with credit card and personal loans, while mortgages loans reflected the impact of the increasing inflation.

The increase shown by commercial loans compared to the previous quarter was mainly due to the depreciation of the peso.

Asset quality ratios


Asset quality ratios	Quarter ended									D% Quarter ended 12/31/18 vs quarter ended
(In thousands of pesos)	12-31-18			09-30-18			12-31-17			09-30-18			12-31-17
Non-performing loans (1)		3,572,782			1,814,467			873,007			96.9	%		309.3	%
Allowance for loan losses		(4,258,239	)		(4,000,918	)		(2,290,430	)		6.4	%		85.9	%
Non-performing loans/net total loans		1.92	%		0.99	%		0.67	%		0.9	%		1.3	%
Non-performing priv. loans/net priv. loans		1.92	%		0.99	%		0.67	%		0.9	%		1.3	%
Allowance for loan losses/non-performing loans		119.19	%		220.50	%		262.36	%		-101.3	%		-143.2	%
Allowance for loan losses/net total loans		2.29	%		2.19	%		1.76	%		0.1	%		0.5	%

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

As of December 30, 2018, the asset quality ratio (non-performing loans/total loans) was 1.92% with a coverage ratio (allowances/non-performing loans) of 119.2%. This indicators show some deterioration in the loan portfolio, mainly due to specific cases in the commercial portfolio.

The cost of risk reached 1.88% recording an increase of 17 bps during the quarter.

The following table shows the evolution of provisions:


Evolution of provisions	Quarter ended									D% Quarter ended 12/31/18 vs quarter ended
(In thousands of pesos)	12-31-18			09-30-18			12-31-17			09-30-18			12-31-17
Balance at the beginning of the quarter		4,000,918			3,181,219			2,141,957			25.8	%		86.8	%
Increase/decrease		1,047,424			1,006,313			383,121			4.1	%		173.4	%
Increase/decrease-Foreign exchange diff.		(73,127	)		213,237			24,445			-134.3	%		n/a
Aplications / Reversals		(716,976	)		(399,851	)		(259,093	)		79.3	%		176.7	%
Balance at the end of the quarter		4,258,239			4,000,918			2,290,430			6.4	%		85.9	%

- 11 -

Public sector exposure


Public Sector Exposure	Quarter Ended									D% Quarter ended 12/31/18 vs quarter ended
(In thousands of pesos)	12-31-18			09-30-18			12-31-17			09-30-18			12-31-17
Bills and Notes from Central Bank		13,815,040			17,519,092			15,576,034			-21.1	%		-11.3	%
Treasury and national government		23,822,802			22,599,243			11,428,426			5.4	%		108.5	%
National Treasury Public Debt $		7,952,858			5,842,776			2,344,722			36.1	%		239.2	%
National Treasury Public Debt USD		3,198,818			8,703,110			4,743,166			-63.2	%		-32.6	%
Treasury Repos USD		12,671,125			8,053,358			4,340,538			57.3	%		191.9	%
Pesos subtotal		21,767,898			23,361,868			17,920,756			-6.8	%		21.5	%
Dollars subtotal		15,869,944			16,756,467			9,083,704			-5.3	%		74.7	%

Total Public Sector exposure		37,637,842			40,118,336			27,004,460			-6.2	%		39.4	%

% National Government debt / Assets		6.7	%		6.8	%		5.4	%

Total exposure to the public sector amounted to AR$ 37.6 billion, decreasing by 6.2% during the quarter.

Short-term liquidity was allocated in BCRA instruments, which decreased by AR$ 3.7 billion or 21.1% during the quarter and 11.3% in the year.

National Government Debt, which represents 6.7% of assets increased by AR$ 1.223.6 million during the quarter, as a consequence of the increase in the local currency debt and the renovation and extension of the repo with the National Treasury for USD 355 million, which was offset by the USD 128 million decrease in the short-term Letes during the quarter to a total USD 84.6 million.

Deposits


Total deposits	Quarter ended						D% Quarter ended 12/31/18 vs quarter ended
(In thousands pesos)	12-31-18		09-30-18		12-31-17		09-30-18			12-31-17
Deposits $ denominated		164,320,011		151,692,489		99,585,301		8.3	%		65.0	%
Current accounts		29,559,030		25,968,449		24,815,717		13.8	%		19.1	%
Saving accounts		46,487,308		49,039,885		35,134,581		-5.2	%		32.3	%
Time deposits		84,087,508		72,175,509		37,297,680		16.5	%		125.4	%
Peso denominated		81,019,308		69,800,136		36,818,485		16.1	%		120.1	%
CER adjusted time deposits		3,068,200		2,375,373		479,195		29.2	%		540.3	%
Other		4,186,165		4,508,646		2,337,323		-7.2	%		79.1	%
Deposits FX denominated		95,189,050		95,535,479		54,349,370		-0.4	%		75.1	%
Current accounts		375,546		407,811		163,881		-7.9	%		129.2	%
Saving accounts		94,468,865		94,788,504		43,913,177		-0.3	%		115.1	%
Time deposits		196,201		177,296		8,032,972		10.7	%		-97.6	%
Other		148,438		161,868		2,239,340		-8.3	%		-93.4	%

Total deposits		259,509,061		247,227,968		153,934,671		5.0	%		68.6	%

Total deposits amounted to AR$ 259.1 billion as of December 31, 2018, increasing by 5% compared to the previous quarter and by 68.6% compared to the same quarter of 2017.

Foreign currency deposits denominated in pesos remained stable during the quarter and increased 75.1% in the last twelve months. Deposits denominated in foreign currency increased 7.8% in the quarter and decreased 13% compared to last quarter of 2017.

Deposits in local currency increased by 8.3% in the quarter and 65% in the year.

- 12 -

Other funding sources


Other funding sources	Quarter ended						D% Quarter ended 12/31/18 vs quarter ended
(In thousands of pesos)	12-31-18		09-30-18		12-31-17		09-30-18			12-31-17
Lines from other banks		5,527,525		5,757,714		691,295		-4.0	%		n/a
Senior Bonds		2,473,690		1,735,343		2,052,490		42.5	%		20.5	%
Total other funding sources		8,001,215		7,493,057		2,743,785		6.8	%		191.6	%

The increase in lines from other banks corresponds mainly to funds to finance foreign trade operations.

On November 8, 2018, the Bank issued series 25 of its bonds (Obligaciones Negociables) in UVAs (Unidades de Valor Adquisitivo), which were fully subscripted for a total amount of AR$ 784.3 million with 24 months maturity, a 9.5% fixed interest rate and quarterly interest payments.

Solvency


Central Bank Requirements	Quarter ended									D% Quarter ended 12/31/18 vs quarter ended
(In thousands of pesos)	12-31-18			09-30-18			12-31-17			09-30-18			12-31-17
CB Minimum Capital Requirements		21,791,415			21,388,509			15,653,816			1.9	%		39.2	%
Allocated to Asset at Risk		18,103,885			17,914,664			12,726,716			1.1	%		42.3	%
Market Risk		92,786			192,083			369,204			-51.7	%		-74.9	%
Operational Risk		3,594,744			3,256,660			2,557,896			10.4	%		40.5	%
Non compliance with others cautios regulations		—			25,102			—			n/a			n/a
Bank Capital		37,947,122			36,683,596			28,020,200			3.4	%		35.4	%
Ordinary Capital Level 1 (*)		39,194,657			36,292,382			26,817,835			8.0	%		46.2	%
Dedusctions Ordinary Capital Level 1		(3,188,440	)		(2,774,583	)		(705,074	)		14.9	%		352.2	%
Capital Level 2		1,940,905			2,143,744			1,578,420			-9.5	%		23.0	%
Aditional Capital Level 1		—			1,022,053			329,019			-100.0	%		-100.0	%
Excess over Required Capital		16,155,707			15,295,087			12,366,384			5.6	%		30.6	%
Excess as % of the capital required		74.1	%		71.5	%		79.0	%		3.7	%		-6.2	%
Risk weighted assets		265,801,467			260,520,258			191,039,187			2.0	%		39.1	%
*Capital Ratio (Central Bank rules) ()()		14.3	%		14.1	%		14.7	%		1.4	%		-2.7	%
TIER l ()*		13.5	%		13.3	%		13.8	%		2.2	%		-2.1	%

(*)	Bank capital / Risk weighted assets

(**)	Includes the 100% of the quarterly result

(***)

Ordinary capital level 1 / Risk weighted assets

BBVA Francés continues to show adequate solvency ratios. As of December 31, 2018 the capital ratio reached 14.3%, similar to the ratio as of September 30, 2018.

The Tier 1 ratio was 13.5% and the excess capital over the regulatory required capital was AR$ 16,155.7 million.

Additional information


	Quarter ended									D% Quarter ended 12/31/18 vs quarter ended
	12-31-18			09-30-18			12-31-17			09-30-18			12-31-17
Exchange rate $/USD		37.81			40.90			18.77			-7.6	%		101.4	%
Quarterly CER adjustment		16.3	%		10.1	%		5.0	%		6.2	%		11.3	%

- 13 -

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

Conference Call

On Monday March 11, 2019 at 12:30 hs (Argentine time) a conference call will be held to comment on the quarter’s results.

Those who wish to participate should use the following dial-in numbers:

+ 54-11-39845677 (from Argentina)

+ 1-844-450-3851 (from the United States)

+ 1-412-317-6373 (from other countries)

Conference ID: BBVA.

To access the webcast:

https://webcastlite.mziq.com/cover.html?webcastId=da8b26e9-873d-400b-a286-795c4167784a

To request the Replay, please dial -in

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

+855-669-9658 (from Canada)

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

The replay will be available until March 20, 2019.

Replay Access code: 10128206

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

- 14 -

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

BALANCE SHEET (in thousands of pesos)

Communication “A” 6114

12-31-18

09-30-18

12-31-17

Cash and due from banks

99,105,461

87,821,856

38,235,942

Debt securities at fair value through other comprehensive income

7,508,099

475,431

5,795,638

Derivatives

591,418

63,881

142,745

Repurchase agreements

12,861,116

9,582,646

6,329,939

Other financial assets

9,647,525

6,707,106

2,664,139

Loans and other financial intermediation

181,422,347

178,638,563

127,597,290

Loans to the private & financial sector

181,422,140

178,638,386

127,597,072

Advances

11,789,313

16,405,607

11,707,264

Discounted and purchased notes

25,874,782

23,696,455

18,821,002

Secured with mortgages

10,110,286

8,718,885

4,457,821

Car secured loans

1,660,242

1,774,642

4,539,300

Personal loans

23,586,938

21,923,282

16,638,201

Credit cards

42,509,011

37,421,393

30,144,824

Loans to financial sector

9,669,713

9,724,646

4,649,114

Other (*)

58,144,255

59,711,580

36,740,905

Other receivables

3,896,270

4,414,711

2,782,597

Less: Unaccrued interest

(1,560,431

)

(1,151,897

)

(593,526

)

Less: Allowance for loan losses

(4,258,239

)

(4,000,918

)

(2,290,430

)

Public Sector loans

207

177

218

Principal

200

176

146

Interests and adjustments

Other debt securities

23,742,631

30,982,187

16,298,834

Financial assets pledged as collateral

4,703,064

6,301,957

3,250,464

Current income tax assets

385

9,340

Investments in equity instruments

129,538

129,234

127,287

Investments in associates and joint ventures

1,752,322

1,781,225

889,433

Property, plant and equipment

9,816,117

9,172,910

9,511,535

Intangible assets

510,912

596,310

344,447

Deferred income tax asset

194,036

100,826

21,053

Other non financial assets

2,135,859

1,375,031

1,530,269

Non-current assets held for sale

493,373

252,805

196,379

Total Assets

354,614,203

333,982,353

212,944,734

Deposits

259,509,061

247,227,968

153,934,671

Current accounts

29,934,576

26,376,260

24,979,598

Saving accounts

140,956,173

143,828,389

79,047,758

Time deposits

84,283,709

72,352,805

45,330,652

Investment Accounts

—

Rescheduled deposits CEDROS

1,951

Other deposits

4,332,652

4,668,563

4,574,712

Liabilities at fair value through other comprehensive income

692,270

1,345,749

—

Derivatives

1,377,259

4,431,577

229,775

Repurchase agreements

14,321

—

285,410

Other financial liabilities

28,189,392

21,934,634

14,002,353

Financing received the BCRA and other financial institutions

5,527,525

5,757,714

691,295

Corporate bonds issued

2,473,690

1,735,343

2,052,490

Current income tax liabilities

3,676,444

2,548,311

1,469,886

Provisions

3,620,723

3,448,015

2,127,857

Other provisions

3,619,240

3,446,583

2,126,740

For eventual compromises

1,483

1,432

1,117

Deferred income tax liabilities

57,725

48,074

455,851

Other non-financial liabilities

10,894,016

9,776,753

7,458,086

Total Liabilities

316,032,426

298,254,138

182,707,674

Total Stockholders’ equity

38,551,665

35,699,118

29,929,036

Equity investments

30,112

29,097

308,024

Total liabilities + stockholders’ equity

354,614,203

333,982,353

212,944,734

- 15 -

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

INCOME STATEMENT (in thousands of pesos)

Communication “A” 6114


	12-31-18			09-30-18			12-31-17
Interest Income		17,731,588			12,299,911			6,246,089
Interest on loans to the financial sector		926,199			451,780			227,911
Interest on overdraft		2,100,546			1,861,503			896,504
Interest on documents		2,022,162			1,513,877			749,754
Interest on mortgages loans		240,762			207,595			113,303
Interest on car secured loans		103,982			360,215			267,971
Interest on credit card loans		2,690,676			1,395,515			1,510,119
Interest on financial leases		134,513			134,487			102,154
Interest on personal loans		1,703,271			1,624,393			1,203,078
Interest on other loans		665,768			983,350			564,288
From other banking receivables from financial intermediation		3,693			2,513			2,547
CER adjustment		24,386			12,124			96,200
UVA adjustment		2,071,175			965,760			92,247
Income from Public Securities		4,401,601			2,092,036			—
Other		642,854			694,763			361,580
Interest Expenses		(9,268,761	)		(5,735,581	)		(2,134,194	)
Interest on Current Account Deposits		(1,904,843	)		(1,139,396	)		(227,419	)
Interest on Saving Account Deposits		(51,867	)		(26,624	)		(10,310	)
Interest on Time Deposits		(6,267,054	)		(3,768,514	)		(1,697,659	)
Interest on interfinancing received loans		(5,074	)		(26,756	)		(4,319	)
Interest on other financing from the financial institutions		20,225			(117,761	)		(2,285	)
Interest on other liabilites from financial intermediation		(605,343	)		(416,389	)		(130,112	)
Other interest		(8	)		(45	)		(67	)
UVA adjustment		(448,798	)		(221,865	)		(12,062	)
Other		(5,999	)		(18,231	)		(49,961	)
Net interest income		8,462,827			6,564,330			4,111,895
Net fee income		1,504,195			1,855,906			638,005
Net income of financial instruments		197,044			138,510			783,930
Result from assets at amortised cost		(67,243	)		12,774			—
Foreign exchange difference		977,628			1,624,223			727,560
Other operating income		1,206,843			1,152,946			652,281
Provision for loan losses		(1,097,883	)		(1,032,752	)		(308,991	)
Net operating income		11,183,411			10,315,937			6,604,680
Personnel expenses		(2,570,310	)		(2,503,707	)		(2,005,951	)
Administrative expenses		(2,196,156	)		(1,826,091	)		(1,369,329	)
Depreciation on Intangible assets		30,646			(32,088	)		31,149
Other operating expenses		(2,433,597	)		(1,635,777	)		(1,388,180	)
Operating income		3,733,663			4,130,578			1,659,287
Income from associates and joint ventures		570,342			48,892			47,278
Net income before income tax from continuing operations		4,304,005			4,179,470			1,706,565
Income tax from continuing operations		(1,366,363	)		(1,131,938	)		(357,150	)
Net income Including non-controlling shareholders		2,937,642			3,047,532			1,349,415
Net income attributable to non-controlling shareholders		—			39,691			9,958
Net income		2,936,628			3,007,841			1,339,457
Other comprehensive income		51,475			(117,469	)		17,720
Total income attributable to controlling shareholders		2,988,103			2,890,372			1,357,177

- 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: March 11, 2019

/s/ Ernesto Gallardo Jimenez

Name: Ernesto Gallardo Jimenez

Title: Chief Financial Officer