Edgar Filing: BBVA BANCO FRANCES SA

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

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 May 2011

Commission File Number: 001-12568

BBVA French Bank S.A.

(Translation of registrant’s name into English)

Reconquista 199, 1006

Buenos Aires, Argentina

(Address of principal executive offices)

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

Form 20-F x Form 40-F ¨

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

Yes ¨ No x

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

Yes ¨ No x

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

Yes ¨ No x

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

BBVA Banco Francés S.A.

TABLE OF CONTENTS


Item

1.		Press release entitled “BBVA Banco Francés” reports consolidated first quarter earnings for fiscal year 2011”.

LOGO

Buenos Aires, May 10, 2011 - BBVA Frances (NYSE: BFR.N; BCBA: FRA.BA; LATIBEX: BFR.LA) reports consolidated first quarter earnings for fiscal year 2011

Highlights

•

BBVA Francés’ earnings continued to grow, in annual terms, registering an increase of 22.4%, and totaling AR$ 195.5 million.

•

Recurring net interest income grew 29.4% in the last twelve months and 12.5% compared with the previous quarter; this increase was based on the improvement of private net interest margin, mainly due to increases in the most profitable segments of the private sector loan portfolio.

•

In line with the expansion of consumption and with a significant pace of growth, the private sector loan portfolio totaled AR$ 16.4 billion, by the end of March 31, 2011, an increase of 57.3% and 7.6% compared with the same quarter of 2010 and with the previous quarter, respectively.

•

BBVA Francés remains the leading bank in the financial system regarding asset quality: as of March 31, 2011, the non-performing loan ratio reached 0.51% with a coverage ratio of 482.6%.

•

In terms of liabilities, total deposits increased 29.8% compared with the same quarter in the previous year and 7.0% compared with the previous quarter. Both sight accounts as well as time deposits showed important growth during these periods.

•

BBVA Francés maintained adequate levels of liquidity and solvency. As of March 31, 2011, liquid assets (cash and due from banks plus central bank instruments) represented 40.7% of bank’s deposits. The capital ratio reached 14.0% of the weighted risk assets.

•

On February 10, 2011, the Boards of Directors of BBVA Banco Francés S.A and of Consolidar Comercializadora S.A signed a Preliminary Merger Commitment, through

which Consolidar Comercializadora S.A. will be merged into BBVA Banco Francés S.A. based on the balance sheet of both companies as of December 31, 2010. The shareholders of both companies approved such agreement at Shareholder’s Meetings. Furthermore, at BBVA Banco Francés Shareholder’s Meeting, held on March 30, 2011, they approved a capital increase as a result of the merger, issuing 516,544 ordinary shares, with par value AR$ 1 and 1 vote per share.

•

At BBVA Banco Francés’ Ordinary and Special Shareholders Meeting, the shareholders approved the distribution of cash dividends totaling AR$ 804 million. The approved dividends were distributed on April 26, 2011, pro-rata to shares held at face value by each shareholder, equivalent to AR$ 1.498999 by share.

•

On March 31, 2011, BBVA Banco Francés, and Banco Bilbao Viscaya Argentaria S.A., owned of 66.21% and 33.79% of the shares of Consolidar Compañia de Seguros de Retiro S.A., respectively, entered into a Share Purchase Agreement to sell 100% of the shares to Grupo Dolphin Holding S.A . This transaction will close upon receiving the applicable authorization from the Argentine Insurance Superintendence, and the completion of all other terms and conditions of the transfer.

Economic Environment

The Argentine economy continued to grow during January and February 2011, although at a slightly slower pace than in 2010. The Monthly Estimator of Economic Activity (EMAE) grew 9.1 % compared with the same period during the previous year.

- 3 -

The primary fiscal surplus of the national public sector was AR $ 4,846 million during the quarter, an increase of 39.6 % compared with the same period of 2010. Total public sector revenues grew 31.7% in the period while fiscal expenditures grew at a slightly lower rate of 31.3 %. The most important taxes, such as VAT and Income tax, were the main contributors to higher fiscal results.

Inflation, as measured by the Consumer Price Index (which is used to calculate the CER adjustment for some sovereign assets) accumulated an increase of 2.3 % during the first quarter of 2011(9.7 % yoy in March).

The Argentine Central Bank (BCRA) intervention in the FX market was a net purchase of US$ 3,143 million during the quarter, an increase of 158% compared with the same quarter of 2010. The exchange rate (BCRA reference rate) closed at AR$ 4,052 per U.S. dollar, an increase of 1.9 % compared with December 30, 2010.

The accumulated trade balance for January and February ended with a surplus of US$ 1.121 billion, 38.4 % lower than the same period of last year due to growth in imports.

The stock of international reserves was US$ 51.29 billion at the end of March, decreasing by US$ 891 million during the quarter. In spite of strong Central Bank intervention in the FX market, the Government had to face significant debt payments which prevented a further increase in international reserves.

The Badlar rate at private banks averaged 11.14 % average during the last month of the quarter, an increase of only 6 bp compared with the average during December 2010. The financial system’s liquidity continued to be relatively high during the quarter and, consequently, the Badlar rate volatility remained low.

Total deposits in the financial system increased 7.0 % on average in the first quarter of 2011, while private sector deposits grew 6.0 %. Private sector loans increased 8.1 % during the same period. Both variables reflected a slowdown in the rhythm of growth compared with their performance during the fourth quarter of 2010.

The Bank

BBVA Francés continued to develop and implement a Client Relationship Model, based on creating and offering valuable products to our customers at each stage of their lives and especially on maintaining excellent customer service relationships with them.

In line with that strategy, during the first months of the year, the Bank maintained the commercial actions that were implemented in 2010, both, in the retail segment as well as in the middle market segment.

The agreement with Lan was a success. Similarly, the agreement signed with Time for Fun, was also a success and 35% of the tickets sold for shows produced by the company were bought with BBVA Francés credit cards.

During the summer months, BBVA Francés and Lan offered interesting promotions, such as ticket sales to different Argentine cities offered in 18 installments at 0% interest rate. In addition, the Bank provided its clients with the best benefits and promotions through the Francés Go. The Bank also launched to the market the new credit card “BBVA Francés Lan Xeneixe Mastercard”, which added advantages for sports fans in addition to the traditional features offered by credit cards.

Continuing its support for the development of agriculture in the country, BBVA Francés was present in the most important fair of the sector, “Expoagro”, offering a wide range of products specifically for the agricultural segment. During such exposition, BBVA Francés and BICE (Banco de Inversión y Comercio Exterior) signed an agreement in order to offer special credit lines to finance the purchase of machinery, at competitive interest rates and market conditions. In addition, it launched the Visa Agro-Lanpass credit card, an innovative product for the industry.

Presentation of Financial Information

•

Foreign currency balances as of March 31, 2011 have been translated into pesos at the reference exchange rate of AR$ 4.0520 per U.S. dollar, published by the BCRA.

•

This press release contains unaudited information that consolidates all of the banking activities of BBVA Banco Francés and its subsidiaries on a line-by-line basis. The Bank’s share interest in the Consolidar Group is shown as Investments in other companies (booked by the equity method) and the corresponding results are included in Income from equity investments.

•

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

- 4 -

Financial Information


Condensed Income Statement (1)	Quarter ended									% Change Qtr ended 12/31/10 vs. Qtr ended
in thousands of pesos except income per share, income per ADS and percentages	03/31/11			12/31/10			03/31/10			12/31/10			03/31/10
Net Financial Income		503,113			739,037			476,619			-31.9	%		5.6	%
Provision for loan losses		(41,576	)		(64,287	)		(30,706	)		-35.3	%		35.4	%
Net income from services		303,827			290,356			263,480			4.6	%		15.3	%
Administrative expenses		(531,176	)		(505,310	)		(460,088	)		5.1	%		15.5	%
Operating income		234,188			459,796			249,305			-49.1	%		-6.1	%
Income (Loss) from equity investments		38,820			16,187			5,665			139.8	%		585.3	%
Income (Loss) from Minority interest		(3,776	)		(4,997	)		(4,486	)		-24.4	%		-15.8	%
Other Income/Expenses		8,203			7,634			(5,270	)		7.5	%		-255.7	%
Income tax and Minimum Presumed Tax		(81,953	)		(80,748	)		(85,540	)		1.5	%		-4.2	%
Net income for the period		195,482			397,872			159,674			-50.9	%		22.4	%
Net income per share (2)		0.36			0.74			0.30			-50.9	%		22.4	%
Net income per ADS (3)		1.09			2.23			0.89			-50.9	%		22.4	%

(1)	Exchange rate: 4.0520 Ps. = 1 US$

(2)	Assumes 536,361,306 ordinary shares outstanding

(3)	Each ADS represents three ordinary shares.

Net income for the first quarter of 2011 reached AR$ 195.5 million, which represents a decrease compared with the previous quarter, however compared with the same quarter in 2010, net income grew 22.4%.

It is important to mention that the fourth quarter 2010 earnings included non-recurring effects generated by the increase in the public assets valuations, while during the first quarter of 2011; the non-recurring effects recorded a loss. Consequently, during the first quarter of 2011 recurring income increased 19.4% compared with the previous quarter.

Such performance was mainly due to net financial income.

Provisions for loan losses for the first quarter of 2011 decreased compared with the previous quarter, and increased compared with the same quarter in 2010, mainly as a consequence of the significant expansion in the private sector loan portfolio.

During the first quarter of 2011, net income from services grew 4.6% mainly due to lower service charge expenses and higher revenues related to deposits. Compared with the same quarter in 2010, the increase was 15.3% principally due to higher revenues related to credit cards and deposits services.

Total administrative expenses increased 5.1% and 15.4% compared with the fourth quarter of 2010 and with the same quarter of 2010, respectively, driven by increases in general expenses and, to a lesser extent, in personnel expenses.


	Quarter ended									% Change Qtr ended 12/31/10 vs. Qtr ended
in thousands of pesos except percentages	03/31/11			12/31/10			03/31/10			12/31/10			03/31/10
Return on Average Assets (1)		2.54	%		5.28	%		2.70	%		-51.9	%		-6.1	%
Return on Average Shareholders’ Equity		23.0	%		45.2	%		21.3	%		-49.1	%		8.2	%
Net fee Income as a % of Recurrent Operating Income		37.7	%		28.2	%		35.6	%		33.5	%		5.8	%
Net fee Income as a % of Administrative Expenses		57.2	%		57.5	%		57.3	%		-0.5	%		-0.1	%
Adm. Expenses as a % of Recurrent Operating Income (2)		65.8	%		49.1	%		62.2	%		34.1	%		5.9	%

(1)	Annualized.

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

- 5 -

Net Financial Income

Net financial income decreased 31.9% with respect to the previous quarter, however compared with the same quarter in 2010, it grew 5.6%.

Recurring income grew 12.5% in the first three months of the year, whereas compared with the same quarter of 2010, the increase was 29.4%. Such

growth is based on the private sector financial margin growth due to higher incomes, consequence of the increase in the loan portfolio, mainly in the most dynamic sectors.

Income related to foreign currency exchange showed an improvement over the previous quarter and a decrease compared with the first quarter of 2010.


	Quarter ended							% Change Qtr ended 12/31/10 vs. Qtr ended
in thousands of pesos except percentages	03/31/11		12/31/10			03/31/10		12/31/10			03/31/10

Net financial income		503,113		739,037			476,619		-31.9	%		5.6	%
Net income from financial intermediation		269,578		260,363			197,759		3.5	%		36.3	%
CER adjustment		8,825		(278	)		205		-3274.5	%		4204.9	%
Income from securities and short term investments		121,366		389,240			180,426		-68.8	%		-32.7	%
Interest on Government guaranteed loans		12,211		16,910			21,692		-27.8	%		-43.7	%
Foreign exchange difference		45,952		38,719			41,910		18.7	%		9.6	%
Others		45,181		34,083			34,627		32.6	%		30.5	%

Income from Public and Private

Securities

Income from public and private securities decreased 66.4% compared with the previous quarter, due to the loss generated by public bonds valuations during this quarter. .

Recurring incomes increased 19.2% and 67.8% compared with the previous quarter and to the same quarter of 2010, respectively.

It is important to note that beginning on March 1, 2011, according to Central Bank Communication A 5180, the presentation criteria on which public assets were registered changed, rendering the “available for sale” category no longer valid, consequently, the unrealized valuation difference generated by such portfolio was recorded in the income statement.


	Quarter ended							% Change Qtr ended 12/31/10 vs. Qtr ended
in thousands of pesos except percentages	03/31/11			12/31/10		03/31/10		12/31/10			03/31/10
Income from securities and short-term investments		121,366			361,066		144,563		-66.4	%		-16.0	%

Holdings booked at fair value		29,606
Holdings booked at amortized cost		—
Trading account		—			136,980		7,505		-100.0	%		-100.0	%
Available for sale		—			24,292		19,984		-100.0	%		-100.0	%
Bills and Notes from the Central Bank		92,640			59,148		91,764		56.6	%		1.0	%
Other fixed income securities		(880	)		140,645		25,310		-100.6	%		-96.5	%

CER adjustment		—			28,174		35,863		-100.0	%		-100.0	%

CER adjustment - Trading account		—			—		—		—			—
CER adjustment - Investment account		—			—		—		—			—
CER adjustment - Other fixed securities		—			28,174		35,863		-100.0	%		-100.0	%

- 6 -

Net Income from Services

Net Income from services in the first quarter of 2011 increased 4.5% compared with the previous quarter and 15.3% compared with the same quarter of 2010.

The growth over the previous quarter is the result of lower services charge expenses related to promotions for debit and credit card purchases,

together with higher income from deposits services, partially offset by lower fees for advisor and capital markets services and for credit cards.

The increase compared with the first quarter of 2010, is mainly due to higher income related to credit cards, sight accounts and insurance operations partially offset by higher credit card service charge expenses.


	Quarter ended									% Change Qtr ended 12/31/10 vs. Qtr ended
in thousands of pesos except percentages	03/31/11			12/31/10			03/31/10			12/31/10			03/31/10
Net income from services		303,827			290,356			263,480			4.6	%		15.3	%

Service charge income		412,234			417,549			336,747			-1.3	%		22.4	%
Service charges on deposits accounts		107,478			101,279			94,878			6.1	%		13.3	%
Credit cards and operations		138,245			141,790			108,738			-2.5	%		27.1	%
Insurance		37,736			38,951			30,858			-3.1	%		22.3	%
Capital markets and securities activities		2,479			10,149			5,742			-75.6	%		-56.8	%
Fees related to foreign trade		17,334			19,571			13,856			-11.4	%		25.1	%
Other fees		108,962			105,810			82,676			3.0	%		31.8	%

Services Charge expense		(108,407	)		(127,194	)		(73,267	)		-14.8	%		48.0	%

Administrative Expenses

Administrative expenses increased 5.1% during the first quarter of 2011, while annual growth was 15.4%.

Both, personnel expenses and general expenses increased during these periods.

Personnel expenses grew 6.5% in the first quarter, and 8.8% during the last twelve months.

The increase in general expenses, compared with the previous quarter, was due to higher tax charges, organization expenses and other expenses. Such increases were partially offset by lower advertising and promotional expenses and fees.

The increase in general expenses compared with the same quarter of 2010, is due to higher advertising and promotional expenses for more active advertising campaigns, organization expenses and amortizations, mainly related to a higher activity volume and investments associated with changing the branch offices image.

As of March 31, 2011, the Bank and its subsidiaries (except the Consolidar Group) had 4,629 employees. The branch office network totaled 267 offices, including 240 consumer branch offices and 27 branch offices specializing in the middle-market segment. Corporate Banking has 7 business units grouped by industry. In addition, the Bank has 15 in-company branches, 4 branch offices for large corporate and institutional clients and 2 points of sale.

- 7 -


	Quarter ended									% Change Qtr ended 12/31/10 vs. Qtr ended
in thousands of pesos except percentages	03/31/11			12/31/10			03/31/10			12/31/10			03/31/10
Administrative expenses		(531,176	)		(505,310	)		(460,088	)		5.1	%		15.5	%

Personnel expenses		(318,247	)		(298,849	)		(292,396	)		6.5	%		8.8	%
Electricity and Communications		(10,131	)		(10,700	)		(8,585	)		-5.3	%		18.0	%
Advertising and Promotion		(24,295	)		(27,028	)		(17,730	)		-10.1	%		37.0	%
Honoraries		(8,399	)		(10,655	)		(8,507	)		-21.2	%		-1.3	%
Taxes		(36,891	)		(33,662	)		(28,674	)		9.6	%		28.7	%
Organization and development		(6,593	)		(5,756	)		(5,185	)		14.5	%		27.2	%
Amortizations		(15,024	)		(15,334	)		(13,280	)		-2.0	%		13.1	%
Other		(111,596	)		(103,326	)		(85,731	)		8.0	%		30.2	%

Other Income / Expenses

Other income/expenses totaled a gain of AR$ 8.2 million during the first quarter of 2011, mainly due to recovered credits, partially offset by provisions for other contingencies.

Income from Equity Investments

Income from equity investments sets forth net income from related companies that are not consolidated. During the first quarter of 2011, a gain of AR$ 38.8 million was recorded, mainly due to BBVA Frances’ stake in the Consolidar Group.

Balance and Activity

Total Public Sector Exposure

As previously mentioned, according to Central Bank Communication “A 5180”, dated March 1, 2011 the presentation criteria for public bonds and Central Bank’s instruments was modified.

In line with the new regulation, holdings recorded in the available for sale category were reclassified in holdings booked at fair value and in central bank instruments line items.

Total exposure to public sector national treasury debt decreased during the first quarter of 2011, mainly due to the sale of part of the portfolio.

The Bank’s portfolio of Central Bank bills and notes, increased by 4.8% during the first quarter of 2011, mainly as a consequence of liquidity management.

As of March 31, 2011, public sector national treasure assets, net of holdings linked to reverse repo transactions, represented 8.4% of the Bank’s total assets. Total exposure to BCRA bills and notes represented 9.9% of the Bank’s total assets.

Total exposure to the public sector includes public debt of the national treasury through public securities, guaranteed loans and trustees, and also, the BCRA bills and notes.

- 8 -


	Quarter ended									% Change Qtr ended 12/31/10 vs. Qtr ended
in thousands of pesos except percentages	03/31/11			12/31/10			03/31/10			12/31/10			03/31/10

Holdings		6,231,949			5,616,603			5,240,423			11.0	%		18.9	%
Holdings booked at fair value		2,319,927			—			—			0			0
Holdings booked at amortized cost		181			—			—			0			0
Central Bank instruments		3,811,397			2,236,026			2,801,109			70.5	%		36.1	%
Trading		—			4,813			48,274			-100.0	%		-100.0	%
Unlisted Goverment Securities		—			2,055,451			1,917,096			-100.0	%		-100.0	%
Available for Sale		—			1,228,297			746,908			-100.0	%		-100.0	%
Other fixed income securities		100,634			92,205			135,754			9.1	%		-25.9	%
Allowances		(190	)		(189	)		(408,718	)		0.5	%		-100.0	%
Repurchase Agreements		910,591			—			—			—			—
Trading (Reverse repo)		(910,591	)		—			—			—			—
Trading (Reverse repo)		—			—			—			0.0	%		0.0	%
Net Position		5,321,358			5,616,603			5,240,423			-5.3	%		1.5	%
Holdings at fair value through profit or loss		2,319,927			—			—			-100.0	%		-100.0	%
Holdings at amortized cost		181			—			—			-100.0	%		-100.0	%
Central Bank instruments		2,900,806			2,236,026			2,801,109			29.7	%		3.6	%
Trading		0			4,813			48,274			-100.0	%		-100.0	%
Unlisted Goverment Securities		0			2,055,451			1,917,096			-100.0	%		-100.0	%
Available for Sale		0			1,228,297			746,908			-100.0	%		-100.0	%
Other fixed income securities		100,634			92,205			135,754			9.1	%		-25.9	%
Allowances		(190	)		(189	)		(408,718	)		0.5	%		-100.0	%

Loan Portfolio

The private sector loan portfolio totaled AR$ 16.4 billion by the end of March 31, 2011, increasing 7.6%, compared with the previous quarter, and 57.3% compared with the same quarter in 2010.

During the first quarter of 2011, all segments showed excellent performance, particularly the Retail and Corporate segments, which increased 7.4% and 10.0%, respectively. The increase in consumption was driven by growth in personal loans, car loans and credit cards, while the mortgage portfolio showed a slight decrease. The corporate segment increase was led by financial loans and advances. On the other

hand, the growth in the middle market segment was produced by the increase in discounted and purchased notes as well as loans that finance foreign trade operations.

Compared with the same quarter of 2010, the significant economic growth was reflected in the expansion recorded by the private loan portfolio, mainly as a consequence of the excellent performance of loans to individuals and to businesses. The retail segment increased 49.6% (AR$ 2.4 billion), the middle market segment 75.6% (AR$ 1.7 billion) and the corporate segment 54.5% (AR$ 1.9 billion).

- 9 -


	Quarter ended									% Change Qtr ended 12/31/10 vs. Qtr ended
in thousands of pesos except percentages	03/31/11			12/31/10			03/31/10			12/31/10			03/31/10
Private & Financial sector loans		16,350,242			15,191,356			10,393,802			7.6	%		57.3	%
Advances		2,478,445			2,366,957			1,648,420			4.7	%		50.4	%
Discounted and purchased notes		2,143,170			2,086,979			1,205,363			2.7	%		77.8	%
Consumer Mortgages		838,860			840,841			821,273			-0.2	%		2.1	%
Car secured loans		992,688			831,981			521,091			19.3	%		90.5	%
Personal loans		2,678,376			2,473,299			1,885,749			8.3	%		42.0	%
Credit cards		2,582,693			2,457,922			1,512,034			5.1	%		70.8	%
Loans to financial sector		556,446			517,193			346,627			7.6	%		60.5	%
Other loans		4,306,045			3,817,382			2,623,303			12.8	%		64.1	%
Unaccrued interest		(29,886	)		(28,292	)		(17,425	)		5.6	%		71.5	%
Adjustment and accrued interest & exchange differences receivable		223,319			223,321			183,924			0.0	%		21.4	%
Less: Allowance for loan losses		(419,914	)		(396,227	)		(336,557	)		6.0	%		24.8	%
Loans to public sector		207,587			197,778			333,869			5.0	%		-37.8	%
Loans to public sector		72,004			67,317			120,520			7.0	%		-40.3	%
Adjustment and accrued interest & exchange differences receivable		135,583			130,461			213,349			3.9	%		-36.5	%
Net total loans		16,557,829			15,389,134			10,727,671			7.6	%		54.3	%

Asset Quality

During the first quarter of 2011, BBVA Frances continued to exhibit solid asset quality and coverage ratios, which continued to be the best of the Argentine Financial System.

As of March 31, 2011, the Bank’ asset quality ratio (non- performing loans over total loans) was 0.51%, while its coverage ratio (provisions over of non-performing loans) reached 482.6%.

Asset quality continued in the same levels as in previous quarter and improved compared with the same quarter of 2010, reflecting the efficient risk policy implemented by the Bank.


	Quarter ended									% Change Qtr ended 12/31/10 vs. Qtr ended
in thousands of pesos except percentages	03/31/11			12/31/10			03/31/10			12/31/10			03/31/10
Non-performing loans (1)		87,006			80,377			115,147			8.2	%		-24.4	%
Allowance for loan losses		(419,914	)		(396,227	)		(336,557	)		6.0	%		24.8	%
Non-performing loans/net total loans		0.51	%		0.51	%		1.04	%		0.6	%		-50.8	%
Non-performing private loans/net private loans		0.52	%		0.52	%		1.07	%		0.6	%		-51.7	%
Allowance for loan losses/non-performing loans		482.63	%		492.96	%		292.28	%		-2.1	%		65.1	%
Allowance for loan losses/net total loans		2.47	%		2.51	%		3.04	%		-1.5	%		-18.7	%

(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.

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

- 10 -


	Quarter ended									% Change Qtr ended 12/31/10 vs. Qtr ended
in thousands of pesos except percentages	03/31/11			12/31/10			03/31/10			12/31/10			03/31/10
Balance at the beginning of the quarter		401,202			354,238			342,902			13.3	%		17.0	%
Increase / decrease		41,576			64,287			30,706			-35.3	%		35.4	%
Provision increase / decrease - Exchange rate difference		727			115			531			532.2	%		-36.9	%
Decrease		(18,428	)		(17,438	)		(32,059	)		5.7	%		-42.5	%
Balance at the end of the quarter		425,077			401,202			342,080			6.0	%		24.3	%

Deposits

As of March 31, 2010, total deposits reached AR$ 24.1 billion, an increase of 7.2% and 29.8% compared with the previous quarter and to the first quarter of 2010, respectively.

During the first quarter of the year, both, sight deposits and time deposits registered an increase growing 7.3% and 6.3%, respectively.

Compared with the same quarter in 2010, sight and time deposits grew 27.4% and 33.6%, respectively.

In terms of currency, deposits denominated in pesos, grew 7.1% in the first quarter of 2011 and 34.5% in the last twelve months. On the other hand, recurring deposits in foreign currency increased 6.7% during the first quarter of the year, and 15.2% in the last twelve months.

By the end of March 31, 2011, deposits in foreign currency reached AR$ 5,209 million (equivalent to US$ 1,285.6 million), representing 21.4% of the Bank’s total deposits.


	Quarter ended						% Change Qtr ended 12/31/10 vs. Qtr ended
in thousands of pesos except percentages	03/31/11		12/31/10		03/31/10		12/31/10			03/31/10
Total deposits		24,057,124		22,474,802		18,506,652		7.0	%		30.0	%
Current accounts		5,915,584		5,184,414		4,730,698		14.1	%		25.0	%
Peso denominated		5,824,017		5,180,672		4,269,667		12.4	%		36.4	%
Foreign currency		91,567		3,742		461,031		2347.0	%		-80.1	%
Saving accounts		7,729,326		7,533,437		5,976,811		2.6	%		29.3	%
Peso denominated		4,620,858		4,690,687		3,782,024		-1.5	%		22.2	%
Foreign currency		3,108,468		2,842,750		2,194,787		9.3	%		41.6	%
Time deposits		9,917,304		9,333,132		7,422,924		6.3	%		33.6	%
Peso denominated		8,117,657		7,443,061		5,720,563		9.1	%		41.9	%
CER adjusted time deposits		642		697		1,040		-7.9	%		-38.3	%
Foreign currency		1,799,005		1,889,374		1,701,321		-4.8	%		5.7	%
Investment Accounts		65,504		80,904		41,017		-19.0	%		59.7	%
Peso denominated		65,504		80,904		41,017		-19.0	%		59.7	%
Other		429,406		342,915		335,202		25.2	%		28.1	%
Peso denominated		219,340		198,539		169,765		10.5	%		29.2	%
Foreign currency		210,066		144,376		165,437		45.5	%		27.0	%
*Rescheduled deposits + CEDROS ()**		46,742		48,351		62,362		-3.3	%		-25.0	%
Peso denominated		46,742		48,351		62,362		-3.3	%		-25.0	%

Total deposits + Rescheduled deposits & CEDROS		24,103,866		22,523,153		18,569,014		7.0	%		29.8	%

(*)	The payment of Rescheduled Deposits concluded in August 2005, in accordance with its original schedule, except those deposits that have a pending legal injunction.

- 11 -

Other Funding Sources

As of March 31, 2011, other funding sources totaled AR$ 338.9 million, growing 61.7% compared with the previous quarter, mostly due to the increase in dollar funding lines, intended to finance foreign trade operations.

By the end of the first quarter of 2011, 42.4% of the balances shown in the table below were denominated in foreign-currency.


	Quarter ended						% Change Qtr ended 12/31/10 vs. Qtr ended
in thousands of pesos except percentages	03/31/11		12/31/10		03/31/10		12/31/10			03/31/10
Lines from other banks		338,884		209,609		72,148		61.7	%		369.7	%
Senior Bonds		—		—		—		—			—
Other banking liabilities		338,884		209,609		72,148		61.7	%		369.7	%
Subordinated Debt		—		—		—		—			—

Total other funding sources		338,884		209,609		72,148		61.7	%		369.7	%

Capitalization

The Bank’s total shareholder’s equity totaled AR$ 3.1 billion as of March 31, 2011; whereas the excess of capital over the BCRA requirements was AR$ 869.3 million. On the same date, the capital ratio reached 14.0% of the assets adjusted to risk.

The unrealized valuation difference was reclassified in the Income Statement, as consequence of the modifications establishes by the Central Bank Communication “A 5180”, as previously mentioned.

During the first quarter, the shareholders at the Annual Ordinary and Extraordinary Shareholder’s meeting approved a cash dividend payment in the amount of AR$ 804 million, which was paid on April 26, 2011.


	Quarter ended							% Change Qtr ended 12/31/10 vs. Qtr ended
in thousands of pesos except percentages	03/31/11		12/31/10		03/31/10			12/31/10			03/31/10
Capital Stock		536,361		536,361		536,361			0.0	%		0.0	%
Issuance premiums		175,132		175,132		175,132			0.0	%		0.0	%
Adjustments to stockholders equity		312,979		312,979		312,979			0.0	%		0.0	%
Subtotal		1,024,472		1,024,472		1,024,472			0.0	%		0.0	%
Reserves on Profits		1,042,021		802,385		658,693			29.9	%		58.2	%
Unappropriated retained earnings		983,773		1,831,928		1,417,114			-46.3	%		-30.6	%
Unrealized valuation difference		—		88,130		(21,774	)		-100.0	%		-100.0	%
Total stockholders’ equity		3,050,266		3,746,915		3,078,505			-18.6	%		-0.9	%

The variations in the minimum capital required by the Central Bank during the last twelve months are mainly explained by a higher balance of assets at risk.

By the end of March 31, 2011 the excess of capital over Central Bank requirements represented 28.5% of total shareholders’ equity, demonstrating an adequate solvency level.

- 12 -


	Quarter ended									% Change Qtr ended 12/31/10 vs. Qtr ended
in thousands of pesos except percentages	03/31/11			12/31/10			03/31/10			12/31/10			03/31/10
Central Bank Minimum Capital Requirements		2,363,378			2,144,846			2,136,105			10.2	%		10.6	%
Central Bank Minimum Capital Requirements (a, b)		2,132,719			1,924,898			1,934,794			10.8	%		10.2	%
Market Risk		137,420			127,025			104,571			8.2	%		31.4	%
Increase in capital requirements related to custody		93,239			92,923			96,740			0.3	%		-3.6	%

a) Central Bank Minimum Capital Requirements		2,132,719			1,924,898			1,534,719			10.8	%		39.0	%
Allocated to Asset at Risk		1,477,894			1,307,406			1,002,248			13.0	%		47.5	%
Allocated to Immobilized Assets		104,103			103,164			87,337			0.9	%		19.2	%
Interest Rate Risk		259,882			227,840			183,159			14.1	%		41.9	%
Loans to Public Sector and Securities in Investment		290,840			286,488			261,975			1.5	%		11.0	%
Non Compliance of Other Credit Regulations		—			—			—			—			—

b) Minimum capital required for Pension Funds (AFJPs) to act as securities custodian and registrar of mortgage notes		400,000			1,858,458			1,934,794			-78.5	%		-79.3	%
5% of the securities in custody and book-entry notes		400,000			1,858,458			1,934,794			-78.5	%		-79.3	%

Bank Capital Calculated under Central Bank Rules		3,232,706			3,811,371			3,272,643			-15.2	%		-1.2	%
Core Capital		2,854,784			2,460,605			2,940,605			16.0	%		-2.9	%
Minority Interest		270,151			251,096			289,665			7.6	%		-6.7	%
Supplemental Capital		191,556			1,173,652			116,639			-83.7	%		64.2	%
Deductions		(83,785	)		(73,982	)		(74,266	)		13.3	%		12.8	%

Excess over Required Capital		869,328			1,666,525			1,136,538			-47.8	%		-23.5	%

Capital Ratio (Central Bank rules)		14.0	%		18.4	%		19.6	%		-23.9	%		-28.8	%
Excess over Required Capital as a % of Shareholders’ Equity		28.5	%		44.5	%		36.9	%		-35.9	%		-22.8	%

Additional Information


	Quarter ended									% Change Qtr ended 12/31/10 vs. Qtr ended
in pesos except percentages	03/31/11			12/31/10			03/31/10			12/31/10			03/31/10
- Exchange rate		4.0520			3.9758			3.8763			1.9	%		4.5	%
- Quarterly CER adjustment		2.32	%		2.31	%		3.16	%		0.4	%		-26.5	%

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

- 13 -

Conference call

A conference call to discuss first quarter earnings will be held on Wednesday, May 11th, 2011, at 12:00 PM New York time – 13.00 PM Buenos Aires time. If you are interested in participating, please dial (888) 708 5705 within the U.S. or +1 (913) 312 1456 outside the U.S. at least 5 minutes prior to our conference. Confirmation code: 2818696

Internet

This press release is also available www.bbvafrances.com.ar

CONTACTS

Cecilia Acuña

Investor Relations

(5411) 4341-5036

cecilia.acuna@bbvafrances.com.ar

Paula Bennati

Investor Relations

(5411) 4348-0000 ext. 25917

paula.bennati@bbvafrances.com.ar

- 14 -

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

BALANCE SHEET


(in thousands of pesos)	03/31/11			12/31/10			09/30/10			03/31/10
ASSETS:
Cash and due from banks		5,995,772			5,690,995			6,229,957			5,419,543
Government and Private Securities		6,150,033			5,537,796			5,490,599			5,110,007
- Holdings booked at fair value		2,319,927			—			—			—
- Holdings booked at amortized cost		181			—			—			—
- Trading account (listed securities)		—			4,813			69,915			48,274
- Available for sale		—			1,228,297			950,737			746,908
- Reverse repo w/Central Bank		—			—			593,962			—
- Unlisted		—			2,055,451			1,976,055			1,917,096
- Listed Private Securities		18,718			13,398			3,331			5,338
- Bills and Notes from the Central Bank		3,811,397			2,236,026			2,028,659			2,801,109
Less: Allowances		(190	)		(189	)		(132,060	)		(408,718	)
Loans		16,557,829			15,389,134			13,415,387			10,727,671
- Loans to the private & financial sector		16,350,242			15,191,356			13,138,109			10,393,802
- Advances		2,478,445			2,366,957			2,348,828			1,648,420
- Discounted and purchased notes		2,143,170			2,086,979			1,674,905			1,205,363
- Secured with mortgages		838,860			840,841			824,883			821,273
- Car secured loans		992,688			831,981			707,216			521,091
- Personal loans		2,678,376			2,473,299			2,189,892			1,885,749
- Credit cards		2,582,693			2,457,922			1,949,629			1,512,034
- Loans to financial sector		556,446			517,193			372,048			346,627
- Other loans		4,306,045			3,817,382			3,251,749			2,623,303
Less: Unaccrued interest		(29,886	)		(28,292	)		(22,371	)		(17,425	)
Plus: Interest & FX differences receivable		223,319			223,321			190,768			183,924
Less: Allowance for loan losses		(419,914	)		(396,227	)		(349,438	)		(336,557	)
- Public Sector loans		207,587			197,778			277,278			333,869
Principal		72,004			67,317			97,192			120,520
Plus: Interest & FX differences receivable		135,583			130,461			180,086			213,349
Other banking receivables		1,597,922			997,607			4,051,782			1,076,975
- Compensatory Bond
- Repurchase agreements		820,451			—			598,169			99,874
- Unlisted private securities		81,797			78,688			94,249			89,957
- Unlisted Private securities: Trustees		119			119			119			40,459
- Other banking receivables		700,718			923,775			3,364,045			852,208
- Less: provisions		(5,163	)		(4,975	)		(4,800	)		(5,523	)
Investments in other companies		347,700			311,089			424,223			404,610
Intangible assets		74,255			63,700			64,331			65,030
- Organization and development charges		74,255			63,700			64,331			65,030
Other assets		1,491,719			1,407,938			1,254,234			1,070,108

TOTAL ASSETS		32,215,230			29,398,259			30,930,513			23,873,944


	03/31/11			12/31/10			09/30/10			03/31/10
LIABILITIES:
Deposits		24,103,866			22,523,153			21,703,846			18,569,014
- Current accounts		5,915,584			5,184,414			5,991,280			4,730,698
- Saving accounts		7,729,326			7,533,437			6,784,149			5,976,811
- Time deposits		9,917,304			9,333,132			8,431,339			7,422,924
- Investment Accounts		65,504			80,904			80,651			41,017
- Rescheduled deposits - CEDROS		46,742			48,351			53,019			62,362
- Other deposits		429,406			342,915			363,408			335,202
Other banking Liabilities		3,103,492			1,989,427			4,874,725			1,377,212
Other provisions		324,534			325,932			326,685			328,308
- Other contingencies		324,103			325,494			326,248			327,879
- Guarantees		431			438			437			429
Other liabilities		1,560,280			743,816			666,195			464,023
Minority interest		72,792			69,016			63,935			56,882

TOTAL LIABILITIES		29,164,964			25,651,344			27,635,386			20,795,439

TOTAL STOCKHOLDERS’ EQUITY		3,050,266			3,746,915			3,295,127			3,078,505

Total liabilities + stockholders’ equity		32,215,230			29,398,259			30,930,513			23,873,944

- 15 -

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

INCOME STATEMENT


(in thousands of pesos)	03/31/11			12/31/10			09/30/10			03/31/10
Financial income		756,372			975,221			1,054,863			657,877
- Interest on Cash and Due from Banks		—			—			—			—
- Interest on Loans Granted to the Financial Sector		21,016			17,988			15,258			15,739
- Interest on Overdraft		83,936			85,450			78,680			65,703
- Interest on Discounted and purchased notes		55,995			51,437			42,432			36,327
- Interest on Mortgages		29,817			29,080			27,882			27,465
- Interest on Car Secured Loans		34,708			30,910			26,483			23,291
- Interest on Credit Card Loans		76,178			66,096			64,428			48,697
- Interest on Other Loans		215,701			203,277			186,711			157,398
- From Other Banking receivables		5,165			4,528			7,974			302
- Interest on Government Guaranteed Loans Decree 1387/01		12,211			16,910			18,255			21,692
- Income from Securities and Short Term Investments		121,366			389,240			505,790			180,426
- Net Income from options		639			2,271			2,618			—
- CER		8,872			(231	)		8,807			285
- Foreign exchange difference		45,952			38,719			39,307			41,910
- Other		44,816			39,546			30,238			38,642
Financial expenses		(253,259	)		(236,184	)		(220,233	)		(181,258	)
- Interest on Current Account Deposits		—			(6	)		(3	)		(3,960	)
- Interest on Saving Account Deposits		(1,902	)		(1,758	)		(1,570	)		(1,813	)
- Interest on Time Deposits		(196,183	)		(172,867	)		(160,324	)		(137,594	)
- Interest on Other Banking Liabilities		(8,938	)		(7,276	)		(3,640	)		(2,171	)
- Other interests (includes Central Bank)		(1,592	)		(3,726	)		(6,071	)		(602	)
- CER		(47	)		(47	)		(47	)		(80	)
- Bank Deposit Guarantee Insurance system mandatory contributions		(9,878	)		(9,778	)		(8,882	)		(8,079	)
- Mandatory contributions and taxes on interest income		(34,445	)		(32,992	)		(28,172	)		(22,944	)
- Other		(274	)		(7,734	)		(11,524	)		(4,015	)
Net financial income		503,113			739,037			834,630			476,619
Provision for loan losses		(41,576	)		(64,287	)		(45,347	)		(30,706	)
Income from services, net of other operating expenses		303,827			290,356			275,910			263,480
Administrative expenses		(531,176	)		(505,310	)		(559,391	)		(460,088	)
Income (loss) from equity investments		38,820			16,187			18,477			5,665
Net Other income		8,203			7,634			31,718			(5,270	)
Income (loss) from minority interest		(3,776	)		(4,997	)		(3,509	)		(4,486	)
Income before tax		277,435			478,620			552,488			245,214
Income tax		(81,953	)		(80,748	)		(115,228	)		(85,540	)

Net income		195,482			397,872			437,260			159,674

- 16 -

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


	03/31/11			12/31/10			09/30/10			03/31/10
ASSETS
Cash and due from banks		6,011,204			5,691,806			6,231,889			5,432,205
Government Securities		8,168,268			7,495,382			7,519,515			7,157,067
Loans		17,881,171			16,699,852			14,786,836			11,935,352
Other Banking Receivables		1,660,234			1,043,859			4,078,700			1,114,226
Assets Subject to Financial Leasing		603,029			534,457			423,317			296,331
Investments in other companies		114,448			110,138			110,215			106,606
Other assets		1,029,785			1,004,752			970,992			875,148

TOTAL ASSETS		35,468,139			32,580,246			34,121,464			26,916,935


	03/31/11			12/31/10			09/30/10			03/31/10
LIABILITIES
Deposits		24,036,159			22,461,307			21,653,704			18,557,557
Other banking liabilities		3,129,587			1,992,801			4,879,470			1,383,564
Minority interest		197,250			179,192			232,053			216,657
Other liabilities		5,054,877			4,200,031			4,061,110			3,680,652

TOTAL LIABILITIES		32,417,873			28,833,331			30,826,337			23,838,430


TOTAL STOCKHOLDERS’ EQUITY		3,050,266			3,746,915			3,295,127			3,078,505


STOCKHOLDERS’ EQUITY + LIABILITIES		35,468,139			32,580,246			34,121,464			26,916,935


	03/31/11			12/31/10			09/30/10			03/31/10
NET INCOME
Net Financial Income		653,263			889,587			973,715			604,925
Provision for loan losses		(41,576	)		(64,287	)		(45,347	)		(30,706	)
Net Income from Services		303,762			289,922			275,814			263,415
Administrative expenses		(551,165	)		(514,440	)		(573,177	)		(486,443	)
Net Other Income		(68,523	)		(80,768	)		(63,549	)		(100,082	)

Income Before Tax		295,761			520,014			567,456			251,109

Income Tax		(82,222	)		(109,859	)		(125,133	)		(87,960	)

Net income		213,539			410,155			442,323			163,149

Minoritary Interest		(18,057	)		(12,283	)		(5,063	)		(3,475	)

Net income for Quarter		195,482			397,872			437,260			159,674

- 17 -

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: May 10, 2011

/s/ José Carlos López Álvarez

José Carlos López Álvarez

Chief Financial Officer