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 November 2013

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 Francés” reports consolidated third quarter earnings for fiscal year 2013”.

LOGO

Buenos Aires, November 8, 2013 - BBVA Frances (NYSE: BFR.N; BCBA: FRA.BA;

LATIBEX: BFR.LA) reports consolidated third quarter earnings for fiscal year 2013.

 

 

Highlights

 

 

  •   During the third quarter of 2013, BBVA Francés reached net income of AR$ 560.7 million. Such result includes an increase due to the variation in valuation of public bonds partially offset by a higher tax charge as a consequence of the sale of bonds. In recurring terms, net income for the period was AR$ 507.7 million, increasing 39.1% and 22.1% compared to the same quarter of 2012 and the previous quarter, respectively.

 

  •   In terms of activity, the private sector loan portfolio totaled AR$ 33.5 billion, growing 31.1% compared to the same quarter of the previous year. Considering only volumes in pesos, the increase was 39%. Such growth was driven mainly by the expansion in consumer loans as well as the increase of loans to small-and-medium-sized companies.

 

  •   AR$ 659 million was disbursed in loans for Productive Investment during the third quarter, accumulating a total amount of $ 2.9 billion, including loans made given during 2012 and in the two first quarters of 2013.

 

  •   The Bank continuous to maintain a leader position in terms of asset quality. As of September 30, 2013, the non-performing loan ratio reached 0.74%, with a coverage level of 258.08%.

 

  •   As of September 30, 2013, the Bank’s total deposits grew 27.3% in annual terms, totaling AR$ 39.6 billion at the end of the third quarter of 2013, considering only peso-denominated deposits, growth reached 30.1% in the same period.

 

  •   On July 31, 2013, BBVA Francés issued its fourth series of Negotiable Obligations for a total amount of AR$ 250 million, with demand far exceeding the issued amount.

 

  •   BBVA Francés maintained high levels of liquidity and solvency. As of June 30, 2013 liquid assets (Cash and due from banks plus Argentine Central Bank (BCRA) bills and notes represented 30.7% of the Bank’s total deposits. The capital ratio reached 18.6% of weighted risk assets; with an excess of capital over the BCRA minimum regulatory requirements of AR$ 2.5 billion.

 

  •   On July 10, 2013, BBVA Francés and Consultatio S.A signed a sale and purchase agreement, through which the Bank will acquire 23 of the 33 floors of the building under construction by Consultatio S.A., which will became the “BBVA Tower”. Construction has begun on the project and is proceeding is progressing according to the schedule.

 

  •   On July 19, 2103, the BCRA issued Communication “A” 5460, which grants broad protection to consumers of financial services and includes among other aspects, the regulations of fees and commissions charged by financial institutions for services provided. Consequently, fees and charges must represent a real, direct and demonstrable cost and should have technical and economic justification. Such regulation became effective on October 1, 2013.

 

  •   On September 17, 2013, Buenos Aires Securities and Exchange Commission Resolution 622/13 took effect. Such resolution regulates the new Capital Market Law 26,831.

 

Other Events

 

 

  •   On November 8, 2013, the Bank issued the series 6 and 7 of negotiable obligations with terms of 18 and 36 months, respectively. The total amount was of AR$ 121 million and AR$ 250 million, respectively.

 

 

Economic Environment

 

After a good second quarter, economic activity receded somewhat in the third quarter of 2013, as the Monthly Estimator of Economic Activity (or EMAE), which is a monthly proxy for quarterly GDP, decreased in 1.0% in July and August (seasonally adjusted) compared to the second quarter of 2013 and 4.6% (in the original series) compared with the same two months of 2012.

Similarly, the Monthly Industrial Estimator fell 1.1% with respect to the second quarter (seasonally adjusted), and grew only 0.7% in comparison with the third quarter of 2012, below the 3.5% yearly growth of the second quarter of 2013.

The construction sector continued to recover during the third quarter of 2013, as the Synthetic Index of Construction Activity grew in July-August 0.2% (seasonally adjusted) with respect to the second quarter of 2013, and 8.6% in comparison to the same two months of 2012.

Inflation, as measured by the official Consumer Price Index for Greater Buenos Aires (which is used to calculate the CER adjustment for some sovereign bonds) increased by 2.6% in the second quarter of 2013, slightly above the 2.3% growth in the previous quarter, and 10.5% in the last twelve months.

The primary surplus of the national public sector was AR$ 1.7 billion during July and August, a 31.4% increase compared to the same two months of 2012. The increase on both, primary public sector spending and public sector revenues was 34.9% in annual terms.

Tax revenues increased by 26% reinforcing total revenues with the results from both the BCRA and Anses (Administración Nacional de la Seguridad Social or the Argentine National Social Security Administration), which were transferred to the National Treasury.

Interest payments increased by 24.4% annually and the total deficit reached AR$ 3.5 billion, increase of 21.2% compared to the same

months of 2012. The items that contributed most to the increase in primary spending in the period were public works and transfers to private sector, which grew 49.5% and 34.1%, respectively.

In the external sector, the accumulated trade surplus in the third quarter of 2013 reached USD 2.2 billion, 38.5% lower than that recorded in the third quarter of 2012. The performance of the trade balance is the result of total exports in the third quarter of 2013 of USD 22.558 million (1.9%) and total imports of USD 20.371 million (9.6%).

In the FX market, the exchange rate (BCRA reference rate) closed at AR$ 5.7915 per U.S. dollar on September 30, 2013, increasing 9.61% in comparison with the rate of AR$ 5.3850 registered on June 28, 2013.

In the third quarter of 2013, the BCRA´s stock of international reserves decreased by USD 2.3 billion to USD 34.7 billion on September 30, 2013. During the quarter, the Central Bank sold USD 1.6 billion in the FX market, in opposition to the previous quarter when it bought USD 1.5 billion.

The Badlar interest rate for private banks increased 179 b.p. on the third quarter of 2013, averaging 17.7% compared to the 15.9% average for the second quarter of 2013.

Private sector loans in pesos increased 8.2% in the third quarter of 2013 with respect to the second quarter of 2013, while private sector loans in dollars dropped by 15.2%, during the same period.

Total deposits in pesos in the financial system increased by 7.7% in the same period, and private sector deposits in pesos grew 5.4%. In contrast, private sector deposits in dollars decreased by 1.9%.

 

 

- 2 -

 

The Bank

 

During the third quarter of 2013 BBVA Francés continued to develop its strategic plan, taking actions that strengthen the Bank’s relationship with clients and society.

For the VIP and Premium segments, within the loyalty program for these clients, the Bank carried out a “gourmet experience”, with two of the most prestigious chefs in Argentina, where the clients had the opportunity to attend a cooking workshop and then taste the dishes together with the Bank’s VIP executives.

In addition, reinforcing the value of its credit cards, the Bank launched a new promotion in July providing a 30% discount in the most important brands, triplicate Lanpass kilometers and the opportunity to participate in a trip to fashion week in New York. In September it introduced a new promotion “Renovate yourself on Tuesday”, providing significant discounts for major clothing brands and with no interest installments all over the country.

It is also important to highlight the work carried out by BBVA Francés to become “the soccer Bank”, providing clients not only with the benefits offered by the River and Xeneise cards but also other exclusive offers such as, invitations to the stadiums, photo opportunities on the field, premium stalls matches and a raffle for the opportunity to attend and live the unforgettable experience of the “super clásico” derby.

In addition, under the premise of elevating its distribution network to the most competitive standards, BBVA Francés inaugurated the “Puerto Madero Este” branch, with an excellent location and a differential lay out model that is being developed in the network. The project revitalizes the branch and adds value to the strategic positioning pursued by the Bank in the segment of high-value customers, both for growth and for the loyalty of the current portfolio. This branch was opened with renovated facilities providing better services for clients, such as safe deposit boxes and room for VIP clients. This is the seventh space opened this year, out of a total of 40 expected to open in the expansion plan for 2015.

To consolidate the successful alliance with LAN, a new in-company branch was opened in LAN’s corporate building.

Regarding the development of services, the Bank implemented BBVA Francés Mobil for Blackberry, iPhone and Android, a tool that allows users to access bank services easily, quickly and safely throughout their Smartphones.

In August 2013, the “Estás Dulce” simple loans campaign the “Lápiz de Plata” prize. Such prize is given by Dossier, a specialized editorial; which chooses among the three best advertisements of each month.

In addition, continuing with the incentive to the agro-business sector, the Bank attended the XX National Congress of 2013, held on September 4th -6th at the Orfeo Stadium in Cordoba. The event was organized by the Regional Agricultural Experimental Committees (Consorcios Regionales de Experimentación Agrícola or CREA). The BBVA Francés Agro-Business team had a stand and the opportunity to interact with most of the 5,000 participants that attended the event as well as giving numerous interviews to the national and international media, presenting the different financial alternatives offered by the Bank.

BBVA Francés continues with its activities in the field of social responsibility. Jointly with the San Miguel de Tucumán City Council and the Economic Federation of Tucumán, it granted new scholarships, with the aim of helping students to finish high school, and at the same time strengthening essential values and providing financial education.

 

 

Presentation of Financial Information

 

 

  •   Foreign currency balances as of September 30, 2013 have been translated into pesos at the reference exchange rate published by the BCRA at such date ($ 5.7915/ US$).

 

  •   This press release contains unaudited information that consolidates all of the banking activities of BBVA Francés and its subsidiaries on a line-by-line basis. The Bank’s share interest in the Consolidar Group – BBVA Consolidar Seguros S.A. and Consolidar AFJP (in liquidation)-, is shown as Investments in other companies (recorded 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 the BBVA Group for Argentina, which is prepared according to Spanish accounting standards for all BBVA Group affiliates.
 

 

- 3 -

 

Financial Information

 

 

Condensed Income Statement (1)   

Quarter ended

     r% quarter ended 09-30-13
vs quarter ended		  

(in thousands of pesos except income per share, ADS and percentages)

    09-30-13     06-30-13     09-30-12     06-30-13     09-30-12  

Net Financial Income

      1,320,781        960,412        982,776        37.5 %      34.4 % 

Provision for loan losses

      (102,888 )      (114,533 )      (78,718 )      -10.2 %      30.7 % 

Net income from services

      678,628        607,768        474,675        11.7 %      43.0 % 

Administrative expenses

      (1,037,719 )      (938,454 )      (770,844 )      10.6 %      34.6 % 

Operating income

      858,802        515,193        607,889        66.7 %      41.3 % 

Income (Loss) from equity investments

      38,857        25,396        28,992        53.0 %      34.0 % 

Income (Loss) from Minority interest

      (13,551 )      (13,725 )      (9,521 )      -1.3 %      42.3 % 

Other Income/Expenses

      (23,830 )      (4,062 )      (6,338 )      486.7 %      276.0 % 

Income tax and Minimum Presumed Tax

      (299,580 )      (267,339 )      (203,648 )      12.1 %      47.1 % 

Net income for the period

      560,698        255,463        417,374        119.5 %      34.3 % 

Net income per share (2)

      1.04        0.48        0.78        119.5 %      34.3 % 

Net income per ADS (3)

      3.13        1.43        2.33        119.5 %      34.3 % 

 

(1) Exchange rate: AR$ 5,7915 Ps = 1USD
(2) Assumes 536,877,850 ordinary shares
(3) Each ADS represents three ordinary shares

 

BBVA Francés reached net income in the third quarter of 2013 of AR$ 560.7 million, accumulating AR$ 1,160 million in the first nine months of the year.

The result for the quarter includes a gain for the variation in public bonds valuations partially offset by

a higher effective income tax rate due to the sale of part of the Bonar XIV portfolio.

In recurring terms, net income for the period was AR$ 507.7 million

The following “pro forma” table presents the non-recurring earnings.

 

 

Condensed Income Statement PROFORMA

09-30-13

                   

in thousands of pesos

    Recurring results     Non recurring
Income		     Total results  

Net Financial Income

      1,241,038        79,743        1,320,781   

Provision for loan losses

      (102,888 )      —          (102,888 ) 

Net income from services

      678,628        —          678,628   

Administrative expenses

      (1,037,719 )      —          (1,037,719 ) 

Operating income

      779,059        79,743        858,802   

Income (loss) from equity investments

      38,857        —          38,857   

Income (Loss) from Minority interest

      (13,551 )      —          (13,551 ) 

Other Income/Expenses

      (23,830 )      —          (23,830 ) 

Income tax and Minimum Presumed Tax

      (272,794 )      (26,786 )      (299,580 ) 

Net income for the period

      507,742        52,956        560,698   

 

- 4 -

In order to standardize the comparison with previous quarters, the analysis of the variations is made in terms of recurring results.

 

    

 

 

Condensed Income Statement PROFORMA   

Quarter ended

     r% quarter ended 09-30-13
vs quarter ended		  

in thousands of pesos

    09-30-13     06-30-13     09-30-12     06-30-13     09-30-12  

Net Financial Income

      1,241,038        1,100,175        927,636        12.8 %      33.8 % 

Provision for loan losses

      (102,888 )      (114,533 )      (78,718 )      -10.2 %      30.7 % 

Net income from services

      678,628        607,768        474,675        11.7 %      43.0 % 

Administrative expenses

      (1,037,719 )      (938,454 )      (770,844 )      10.6 %      34.6 % 

Operating income

      779,059        654,956        552,749        18.9 %      40.9 % 

Income (Loss) from equity investments

      38,857        25,396        28,992        53.0 %      34.0 % 

Income (Loss) from Minority interest

      (13,551 )      (13,725 )      (9,521 )      -1.3 %      42.3 % 

Other Income/Expenses

      (23,830 )      (4,062 )      (6,338 )      486.7 %      276.0 % 

Income tax and Minimum Presumed Tax

      (272,794 )      (246,694 )      (200,739 )      10.6 %      35.9 % 

Net income for the period

      507,742        415,871        365,143        22.1 %      39.1 % 

 

During the third quarter of 2013, BBVA Francés reached a recurring gain of AR$ 507.7 million, exceeding by 39.1% and 22.1% the net income for the quarters ended on September 30, 2012 and June 30, 2013, respectively.

The growth in net financial income was 33.8% compared to the same quarter of 2012 and 12.8% compared to the previous quarter, supported by a higher volume of intermediation with the private sector and an increase in the gain for foreign exchange difference.

Provisions for loan losses grew during the third quarter of 2013 compared to the same quarter of 2012, and decline by 10.2% compared to the previous quarter.

Net income from services increased 43.0% and 11.7% compared to the quarters ended September 30, 2012 and June 30, 2013, respectively. It is important to mention that the quarter under analysis includes extraordinary income in the credit card line item.

Administrative expenses grew 34.6% compared to the same quarter of 2012, and 10.6% compared to the previous quarter of 2013.

Other/income expenses registered a loss of AR$ 23.8 million during the quarter, showing growth compared to both quarters analyzed.

 

 

Main figures   

Quarter ended

     r% quarter ended 09-30-13
vs quarter ended		  

(in thousands of pesos except percentages)

    09-30-13     06-30-13     09-30-12     06-30-13     09-30-12  

Return on Average Assets (1)

      4.3 %      2.1 %      4.1 %      100.9 %      4.5 % 

Return on Average Shareholders’ Equity

      37.3 %      18.2 %      35.9 %      104.6 %      3.9 % 

Net fee Income as a % of Recurrent Operating Income

      35.4 %      35.6 %      33.8 %      -0.7 %      4.4 % 

Net fee Income as a % of Administrative Expenses

      65.4 %      64.8 %      61.6 %      1.0 %      6.2 % 

Adm. Expenses as a % of Recurrent Operating Income (2)

      54.1 %      54.9 %      55.0 %      -1.6 %      -1.7 % 

 

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

The book value version of the income statement is considered in the line item analysis.

 

 

Net Financial Income

 

Net income for financial intermediation with the private sector grew 34.2% compared to the third quarter of 2012 and 4.4% compared to the previous quarter in 2013. The higher volume of activity, efficient price management and a good mix of liabilities explain the stable increase in the private net interest margin.

Income from securities and short term investments includes non-recurring income originated by variations in the valuation of public securities. Both, the quarter under analysis and the same quarter of 2012 registered gains of AR$ 73.9 million and AR$ 55.1 million, respectively, whereas the previous quarter recorded a loss of AR$ 139.8 million.

In addition, the foreign exchange difference line item registered a significant gain during the period.

 

 

- 5 -

 

Income from Public and Private Securities

 

The Bank has the discretion to mark-to-market its total public bonds portfolio; because of that, such income includes the

unrealized losses/gains from variations in the valuations of the portfolio.

 

 

Income from securities and short-term investments    Quarter ended      r% quarter ended 09-30-13 vs
quarter ended		  

(in thousands of pesos except percentages)

    09-30-13      06-30-13     09-30-12      06-30-13     09-30-12  

Income from securities and short-term investments

      172,667         -28,307        202,599         -710 .0 %      -14.8 % 

Holdings booked at fair value

      94,520         (116,603 )      103,290         -181.1 %      -8.5 % 

Bills and Notes from the Central Bank

      77,697         92,888        97,981         -16.4 %      -20.7 % 

Other fixed income securities

      450         (4,593 )      1,328         -109.8 %      -66.1 % 

CER adjustment

      33,194         28,127        29,635         18.0 %      12.0 % 

 

 

Net Income from Services

 

Net income from services increased 43.0% compared to the same quarter of 2012 and 11.7% compared to the previous quarter in 2013. As was previously mentioned the service change income line item includes extraordinary income in credit cards.

The increase compared to the same quarter of the previous year is mainly due to higher consumption with credit cards plus higher fees originated by PSA Finance, fee charges on deposits accounts and those from insurance, which was, partially offset by the higher fees paid for promotions, especially those related to the LANpass program.

The performance compared to the previous quarter of 2013 was similar.

 

 

Net income from services   

Quarter ended

     r% quarter ended 09-30-13 vs
quarter ended		  

(in thousands of pesos except percentages)

    09-30-13     06-30-13     09-30-12     06-30-13     09-30-12  

Net income from services

      678,628        607,768        474,675        11.7 %      43.0 % 

Service charge income

      904,016        816,289        635,549        10.7 %      42.2 % 

Service charges on deposits accounts

      186,103        168,936        149,344        10.2 %      24.6 % 

Credit cards and operations

      353,736        307,562        234,010        15.0 %      51.2 % 

Insurance

      90,346        79,554        62,425        13.6 %      44.7 % 

Capital markets and securities activities

      7,105        15,126        3,307        -53.0 %      114.8 % 

Fees related to foreign trade

      23,671        21,022        20,316        12.6 %      16.5 % 

Other fees

      243,054        224,089        166,147        8.5 %      46.3 % 

Services Charge expense

      (225,387 )      (208,520 )      (160,874 )      8.1 %      40.1 % 

 

 

Administrative Expenses

 

Administrative expenses reflected increases of 34.6% and 10.6% compared to both, the third quarter of 2012 and the previous quarter, respectively.

Compared to the same quarter of 2012 personnel expenses grew 31.4%, mainly reflecting salary increases due to the labor agreement and a higher number of employees.

 

 

- 6 -

General expenses grew 38.7% in the same period, mainly due to higher taxes as a consequence of the impact of the purchase of the new building, an increase in the activity volume and a change in proportional tax rates, in addition to the effects of price increases.

In the last three months, personnel expenses grew 2.9%, and general expenses 21.3%; such increase is mainly explained by the impact of the purchase of the new building, as was mentioned previously and higher advertisement expenses due to the launch of the new “Estás dulce”, simple loans campaign, the opening of new VIP spaces and the re-localization of the Puerto Madero Este branch.

As of September 30, 2013, the Bank and its subsidiaries had 5,200 employees. The branch office network totaled 273 offices, including 244 consumer branch offices and 29 branch offices specializing in the middle-market segment.

Corporate banking included 7 business units grouped by industry. Complementing its distribution network, the Bank has 12 in-company branches and 2 point of sale outlets, 654 ATM’s and 726 quick deposit boxes (“QDBs”).

 

 

Administrative expenses   

Quarter ended

     r% quarter ended 09-30-13 vs
quarter ended		  

(in thousands of pesos except percentages)

    09-30-13     06-30-13     09-30-12     06-30-13     09-30-12  

Administrative expenses

      (1,037,719 )      (938,454 )      (770,844 )      10.6 %      34.6 % 

Personnel expenses

      (563,370 )      (547,346 )      (428,817 )      2.9 %      31.4 % 

Electricity and Communications

      (15,111 )      (17,857 )      (15,176 )      -15.4 %      -0.4 % 

Advertising and Promotion

      (52,526 )      (36,859 )      (50,401 )      42.5 %      4.2 % 

Honoraries

      (16,722 )      (14,069 )      (10,936 )      18.9 %      52.9 % 

Taxes

      (98,206 )      (69,794 )      (58,741 )      40.7 %      67.2 % 

Organization and development expenses

      (12,560 )      (11,989 )      (10,533 )      4.8 %      19.2 % 

Amortizations

      (25,973 )      (24,213 )      (23,402 )      7.3 %      11.0 % 

Other

      (253,251 )      (216,327 )      (172,838 )      17.1 %      46.5 % 

 

 

Other Income / Expenses

 

Other income/expenses totaled a loss of AR$ 23.9 million during the third quarter of 2013; an increase compared to the same quarter of 2012 due to higher charges for other contingencies and for labor and commercial trials, which was partially offset by higher recovered loans.

Compared to the previous quarter, the variation is explained by higher provisions accounted for by joint venture companies, and the AR$ 9.4 million dividend from Interbanking received and accounted by the Bank in the previous quarter.

 

 

Income from Equity Investments

 

Income from equity investments sets forth net income from related companies that are not consolidated. During the third quarter of 2013, a gain of AR$ 38.9 million was recorded, mainly due to the sale of Consolidar ART and BBVA Francés’ stake in Rombo Compañía Financiera.and the annual valuation for the stake in Visa.

 

 

 

Balance and activity

 

 

 

Total Public Sector Exposure

 

Exposure to the public sector’s National treasury net of holdings linked to reverse repo transactions decreased by 23.8&% compared to the same quarter of 2012, mainly due to the sale of Bonar XIV portfolio, partially offset by purchases of foreign currency denominated bonds.

The Bank’s portfolio of BCRA bills and notes also registered variations during the period under analysis, mainly due to the liquidity management implemented.

 

 

- 7 -

As of September 30, 2013, public sector National treasure assets represented 2.9% of the Bank’s total assets. Total exposure to BCRA’s bills and notes net of holdings linked to reverse repo transactions, represented 3.7% 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 trust, as well as the BCRA’s bills and notes.

 

 

Exposure to the Public Sector    Quarter ended     D% quarter ended 09-30-13 vs
quarter ended		  

(in thousands of pesos except percentages)

    09-30-13     06-30-13     09-30-12     06-30-13     09-30-12  

Public Sector - National Government

      1,765,845        1,496,825        2,070,080        18.0 %      -14.7 % 

Public Sector Loans

      79,588        74,850        33,293        6.3 %      139.1 % 

Total bond portfolio

      1,322,214        1,248,874        1,861,296        5.9 %      -29.0 % 

Holdings book at fair value

      1,290,040        1,208,677        1,834,263        6.7 %      -29.7 % 

Holdings book at amortized cost

      164        164        164        0.0 %      0.0 % 

Unlisted

      32,010        40,033        26,869        -20.0 %      19.1 % 

Trustees

      174,804        173,292        175,678        0.9 %      -0.5 % 

Allowances

      (192 )      (191 )      (187 )      0.5 %      2.7 % 

Reverse repo

      (189,431 )         

Public Sector - National Government own portfolio

      1,576,414        1,496,825        2,070,080        5.3 %      -23.8 % 

Bills and Notes from Central Bank

      4,391,487        3,149,269        3,343,434        39.4 %      31.3 % 

Own portfolio

      2,039,764        2,242,356        2,743,120        -9.0 %      -25.6 % 

Reverse repo w/Central Bank

      (2,351,723 )      (906,913 )      (600,314 )      159.3 %      291.7 % 

Total exposure to the Public Sector

      6,157,332        4,646,094        5,413,514        32.5 %      13.7 % 

Total exposure to the Public Sector without repos

      3,616,178        3,739,181        4,813,199        -3.3 %      -24.9 % 

 

 

Loan Portfolio

 

The private sector loan portfolio totaled AR$ 33.5 billion as of September 30, 2013, growing 31.1% in the last twelve months and 6.4% during the quarter.

Compared to the same quarter of 2012, the growth was driven by higher finances for consumption and for small and medium size companies, which grew 41.8% and 31.1%, respectively, whereas financings to large corporations increased 27.3%

In the retail segment, the increase in credit cards, personal loans and car loans had an outstanding performance during the period.

In the commercial segment, the small and medium size companies portfolio increased mainly due to the growth in discounted documents, leasing and commercial loans, whereas financings to large corporations were supported by the increase in advances and other loans.

Compared to the previous quarter, the retail segment portfolio registered a similar behavior to the previous quarter, while commercial loans also registered an increase except on finances for foreign trade operations.

 

 

Net loans    Quarter ended    

D% quarter ended 09-30-13 vs

quarter ended

  

(in thousands of pesos except percentages)

    09-30-13     06-30-13     09-30-12     06-30-13     09-30-12  

Private & Financial sector loans

      33,521,195        31,507,786        25,566,368        6.4 %      31.1 % 

Advances

      6,633,490        6,126,895        4,511,651        8.3 %      47.0 % 

Discounted and purchased notes

      4,613,774        4,249,685        3,971,924        8.6 %      16.2 % 

Consumer Mortgages

      1,080,961        1,008,506        757,937        7.2 %      42.6 % 

Car secured loans

      3,328,779        3,027,994        2,185,459        9.9 %      52.3 % 

Personal loans

      5,661,807        5,380,992        4,451,673        5.2 %      27.2 % 

Credit cards

      5,974,677        5,459,976        3,921,214        9.4 %      52.4 % 

Loans to financial sector

      1,372,086        1,299,317        1,191,622        5.6 %      15.1 % 

Other loans

      4,898,638        4,984,929        4,568,756        -1.7 %      7.2 % 

Unaccrued interest

      (100,124 )      (76,992 )      (63,665 )      30.0 %      57.3 % 

Adjustment and accrued interest & exchange differences receivable

      713,054        665,375        554,827        7.2 %      28.5 % 

Less: Allowance for loan losses

      (655,947 )      (618,891 )      (485,030 )      6.0 %      35.2 % 

Loans to public sector

      79,588        74,850        33,293        6.3 %      139.1 % 

Loans to public sector

      49,015        45,692        8,587        7.3 %      470.8 % 

Adjustment and accrued interest & exchange differences receivable

      30,573        29,158        24,706        4.9 %      23.7 % 

Net total loans

      33,600,783        31,582,636        25,599,661        6.4 %      31.3 % 

 

- 8 -

 

Asset Quality

 

BBVA Francés maintains a leader position in terms of risk taken, as consequence of the effective risk policy implemented by the Bank.

As of September 30, 2013, the asset quality ratio (non-performing loans/total loans) was 0.74%, while the coverage ratio (provisions/non-performing loans) reached 258.08%.

Compared to the same quarter of 2012 the higher ratio is due to a rise of non-performing loans as well as an increase in the performing portfolio.

In contrast, compared to the previous quarter of 2013, the ratio improved, mainly due to lower charges on specific previsions and higher collects of the non-performing portfolio.

 

 

Asset quality ratios   

Quarter ended

     r% quarter ended 09-30-13
vs quarter ended		  

(in thousands of pesos except percentages)

    09-30-13     06-30-13     09-30-12     06-30-13     09-30-12  

Non-performing loans (1)

      254,161        257,698        184,103        -1.4 %      38.1 % 

Allowance for loan losses

      (655,947 )      (618,891 )      (485,030 )      6.0 %      35.2 % 

Non-performing loans/net total loans

      0.74 %      0.80 %      0.71 %      -7.3 %      5.1 % 

Non-performing private loans/net private loans

      0.74 %      0.80 %      0.71 %      -7.3 %      5.2 % 

Allowance for loan losses/non-performing loans

      258.08 %      240.16 %      263.46 %      7.5 %      -2.0 % 

Allowance for loan losses/net total loans

      1.91 %      1.92 %      1.86 %      -0.4 %      3.0 % 

 

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

 

The following table shows the evolution of provisions for loan losses, including charges relating

to transactions recorded under “Other receivables” from financial intermediation.

 

 

Evolution of provisions   

Quarter ended

     r% quarter ended 09-30-13
vs quarter ended		  

(in thousands of pesos except percentages)

    09-30-13     06-30-13     09-30-12     06-30-13     09-30-12  

Balance at the beginning of the quarter

      623,042        574,476        466,523        8.5 %      33.6 % 

Increase / decrease

      102,888        114,533        78,718        -10.2 %      30.7 % 

Provision increase / decrease - Exchange rate difference

      1,892        1,185        1,174        59.7 %      -61.2 % 

Decrease

      (67,535 )      (67,152 )      (57,748 )      0.6 %      16.9 % 

Balance at the end of the quarter

      660,287        623,042        488,667        6.0 %      35.1 % 

 

 

Deposits

 

Total deposits reached AR$ 39.5 billion, an increase of 27.3% and 7.2% compared to the same quarter of 2012 and to the previous quarter, respectively.

In annual terms, both time deposits as well as sight accounts registered an important growth, increasing 31.9% and 24.8%, respectively. Similar behavior was registered during the quarter when the increases were 9.8% and 5.0%, respectively.

 

It is noteworthy to highlight that in the last twelve months; peso-denominated deposits grew 30.1%; whereas during the quarter the growth was 7.3%

Deposits denominated in foreign currency reversed the trend and recorded a slight increase, compared to the same quarter of 2012 and to the previous quarter of 2013. As of September 30, 2013 deposits denominated in foreign currency reached AR$ 3.5billion (equivalent to US$ 0.6 billion), representing 8.7% of the Bank’s total deposits.

 

 

- 9 -

Total deposits    Quarter ended     

r% quarter ended 09-30-13 vs

quarter ended

  

(in thousands of pesos except percentages)

    09-30-13      06-30-13      09-30-12      06-30-13     06-30-11  

Total deposits

      39,544,867         36,900,771         31,053,809         7.2 %      27.3 % 

Current accounts

      11,081,263         9,768,880         8,449,245         13.4 %      31.2 % 

Peso denominated

      11,065,211         9,763,908         8,446,068         13.3 %      31.0 % 

Foreign currency

      16,052         4,972         3,177         222.8 %      405.3 % 

Saving accounts

      10,617,959         10,900,303         8,939,251         -2.6 %      18.8 % 

Peso denominated

      8,449,237         8,887,041         6,905,299         -4.9 %      22.4 % 

Foreign currency

      2,168,722         2,013,262         2,033,952         7.7 %      6.6 % 

Time deposits

      17,028,514         15,507,405         12,914,882         9.8 %      31.9 % 

Peso denominated

      15,914,251         14,405,877         11,822,639         10.5 %      34.6 % 

CER adjusted time deposits

      938         907         826         3.4 %      13.6 % 

Foreign currency

      1,113,325         1,100,621         1,091,417         1.2 %      2.0 % 

Investment Accounts

      5,422         5,420         141,063         0.0 %      -96.2 % 

Peso denominated

      5,422         5,420         141,063         0.0 %      -96.2 % 

Other

      811,709         718,763         609,368         12.9 %      33.2 % 

Peso denominated

      640,326         569,896         410,675         12.4 %      55.9 % 

Foreign currency

      171,383         148,867         198,693         15.1 %      -13.7 % 

Rescheduled deposits + CEDROS (*)

      16,971         20,341         30,186         -16.6 %      -43.8 % 

Peso denominated

      16,971         20,341         30,186         -16.6 %      -43.8 % 

Total deposits + Rescheduled deposits & CEDROS

      39,561,838         36,921,112         31,083,995         7.2 %      27.3 % 

 

(*) In August 2005, the payments of rescheduled deposits were finalized, only those deposits that have a pending court case remain outstanding.

 

 

Other Funding Sources

 

As of September 30, 2013, other funding sources totaled AR$ 1.4 billion, decreasing 19.7% maintaining similar levels to others quarters under analysis.

During the third quarter of 2013, the Bank issued the fourth series of its negotiable obligations for a total amount of AR$ 250 million, with a demand that exceeded the issued amount. PSA Finance issued its series No XV for a total of AR$ 110 million. At the end of the quarter the capital plus interest totaled

AR$ 0.8 million, of which 70% corresponded to PSA Finance issueances and the rest to BBVA Francés.

Financing lines from other banks decreased compared to the same quarter of 2012 and to the previous one in 2013.

Total balances shown in the table below were denominated in pesos at the end of the third quarter of 2013.

 

 

Other funding sources    Quarter ended     

r% quarter ended 09-30-13 vs

quarter ended

  

(in thousands of pesos except percentages)

    09-30-13      06-30-13      09-30-12      06-30-13     09-30-12  

Lines from other banks

      532,297         664,020         721,085         -19.8 %      -26.2 % 

Senior Bonds

      833,167         653,071         614,093         27.6 %      35.7 % 

Total other funding sources

      1,365,464         1,317,091         1,335,178         3.7 %      2.3 % 

 

 

Capitalization

 

As of September30, 2013, the Bank’s total shareholder’s equity totaled AR$ 6.3 billion, while

the excess over BCRA Minimum Capital Requirements was AR$ 2.5 billon. On the same date, the capital ratio reached 18.6% of assets adjusted to risk.

 

 

- 10 -

Capitalization   

Quarter ended

     

r% quarter ended 09-30-13 vs

quarter ended

  

(in thousands of pesos except percentages)

    09-30-13      06-30-13      09-30-12      06-30-13     09-30-12  

Capital Stock

      536,878         536,878         536,878         0.0 %      0.0 % 

Issuance premiums

      182,511         182,511         182,511         0.0 %      0.0 % 

Adjustments to stockholders equity

      312,979         312,979         312,979         0.0 %      0.0 % 

Subtotal

      1,032,368         1,032,368         1,032,368         0.0 %      0.0 % 

Reserves on Profits

      4,099,568         4,099,568         2,835,889         0.0 %      44.6 % 

Unappropriated retained earnings

      1,160,313         599,615         988,745         93.5 %      17.4 % 

Total stockholders’ equity

      6,292,249         5,731,551         4,857,002         9.8 %      29.6 % 

 

Central Bank Requirements   

Quarter ended

    

r% quarter ended 09-30-13 vs

quarter ended

  

(in thousands of pesos except percentages)

    09-30-13     06-30-13     09-30-12     06-30-13     09-30-12  

Central Bank Minimum Capital Requirements

      3,799,674        3,765,368        3,228,016        0.9 %      17.7 % 

Central Bank Minimum Capital Requirements (a, b)

      3,655,086        3,655,086        3,130,773        0.0 %      16.7 % 

Increase in capital requirements related to custody

      144,588        110,282        97,243        31.1 %      48.7 % 

a) Central Bank Minimum Capital Requirements

      3,653,666        3,350,519        3,130,773        9.0 %      16.7 % 

Allocated to Asset at Risk

      2,804,618        2,553,222        1,975,783        9.8 %      41.9 % 

DCR (derivative conterparter risk)

      7,275        9,131        —          -20.3 %      —     

Allocated to Immobilized Assets

      —          —          159,669        —          -100.0 % 

Interest Rate Risk

      —          —          386,342        —          -100.0 % 

Loans to Public Sector and Securities in Investment

      —          —          72,406        —          -100.0 % 

Market Risk

      38,893        26,073        48,801        49.2 %      -20.3 % 

Operational Risk

      802,880        762,093        487,772        5.4 %      64.6 % 
b) Minimum capital required for the Guarantee Fund for the Sustainability of the Pas-as-you-go System managed by the Argentine Republic and registrar of mortgage notes      578,354        441,128        400,000        31.1 %      44.6 % 

5% of the securities in custody and book-entry notes

      578,354        441,128        400,000        31.1 %      44.6 % 

Bank Capital Calculated under Central Bank Rules

      6,327,630        5,895,100        4,911,507        7.3 %      28.8 % 

Ordinary Capital Level 1

      6,070,362        5,658,932        —          7.3 %      —     

Deductions Ordinary Capital Level 1

      (129,621 )      (124,578 )      —          4.0 %      —     

Capital Level 2

      386,889        360,746        —          7.2 %      —     

Core Capital

      —          —          3,868,256        —          -100.0 % 

Minority Interest

      —          —          228,866        —          -100.0 % 

Supplemental Capital

      —          —          927,485        —          -100.0 % 

Deductions

      —          —          (113,100 )      —          -100.0 % 

Excess over Required Capital

      2,527,956        2,129,732        1,683,491        18.7 %      50.2 % 

Capital Ratio (Central Bank rules)

      18.6 %      19.0 %      18.1 %      -2.3 %      3.0 % 

Excess over Required Capital as a % of Shareholders’ Equity

      40.2 %      37.2 %      34.7 %      8.1 %      15.9 % 

 

 

Additional Information

 

    

 
    

Quarter ended

    

r% quarter ended 09-30 -13

vs quarter ended

  

(in thousands of pesos except percentages)

    09-30-13     06-30-13     09-30-12     06-30-13     09-30 -12  

Exchange rate

      5.79        5.39        4.69        7.5 %      23.5 % 

Quarterly CER adjustment

      2.59 %      2.12 %      2.41 %      22.4 %      7.6 % 

 

- 11 -

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, BBVA Francés’ earnings, business plans, cost-reduction plans, and capitalization plan, and trends affecting BBVA 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 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 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 Francés with the United States Securities and Exchange Commission (“SEC”), including, but not limited to, BBVA Francés’ annual report on Form 20-F and exhibits thereto. BBVA 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.

 

 

Conference Call

      

 

Contacts

A conference call to discuss third quarter earnings will be held on Tuesday, November 12, 2013, at 12:00 AM New York time – 2:00 PM Buenos Aires time. If you are interested in participating, please dial 888-329-8877 within the U.S. or +1 719-325-2215 outside the U.S. at least 5 minutes prior to our conference. Confirmation code: 6292995.

 

      

Vanesa Bories

Investor Relations

(5411) 4346-4000 int. 11622

vbories@bbva.com

 

Cecilia Acuña

Investor Relations

(5411) 4341-5036

ceciliaviviana.acuna@bbva.com

 

Internet

      

 

This press release is also available at BBVA Francés web site:

www.bbvafrances.com.ar

      

 

- 12 -

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

BALANCE SHEET (in thousands of pesos)

 

     09-30-13     06-30-13     03-31-13     09-30-12  

Cash and due from banks

      7.769.098        8.092.656        7.575.577        6.429 .900   

Government and Private Securities

      5.900.514        4.415.878        4.317.366        5.198.845   

Holdings booked at fair value

      1.290.040        1.229.597        1.647.321        1.834.263   

Holdings booked at amortized cost

      164        164        164        164   

Reverse repo

      (189.431 )        —          —     

Listed Private Securities

      29.584        37.039        28.912        21.171   

Bills and Notes from the Central Bank

      4.391.487        3.149.269        2.641.160        3.343.434   

Less: Allowances

      (192 )      (191 )      (191 )      (187 ) 

Loans

      33.600.783        31.582.636        29.915.951        25.599.661   

Loans to the private & financial sector

      33.521.195        31.507.786        29.876.637        25.566.368   

Advances

      6.633.490        6.126.895        6.402.371        4.511.651   

Discounted and purchased notes

      4.613.774        4.249.685        4.041.005        3.971.924   

Secured with mortgages

      1.080 .961        1.008.506        908.456        757.937   

Car secured loans

      3.328.779        3.027.994        2.710.364        2.185.459   

Personal loans

      5.661.807        5.380 .992        5.019.563        4.451.673   

Credit cards

      5.974.677        5.459.976        4.888.590        3.921.214   

Loans to financial sector

      1.372.086        1.299.317        1.183.685        1.191.622   

Other loans

      4.898.638        4.984.929        4.689.035        4.568.756   

Less: Unaccrued interest

      (100.124 )      (76.992 )      (76.318 )      (63.665 ) 

Plus: Interest & FX differences receivable

      713.054        665.375        680.557        554.827   

Less: Allowance for loan losses

      (655.947 )      (618.891 )      (570.671 )      (485.030 ) 

Public Sector loans

      79.588        74.850        39.314        33.293   

Principal

      49.015        45.692        11.556        8.587   

Plus: Interest & FX differences receivable

      30.573        29.158        27.758        24.706   

Other banking receivables

      3.618.734        1.880.738        1.241.745        1.702.090   

Repurchase agreements

      2.519.628        954.628        371.392        600.758   

Unlisted private securities

      2.426        2.994        2.732        5.698   

Unlisted Private securities :Trustees

      —          —          —          —     

Other banking receivables

      1.099.106        927.267        871.426        1.099.271   

Less: provisions

      (2.426 )      (4.151 )      (3.805 )      (3.637 ) 

Investments in other companies

      201.728        184.971        168 .887        148 .962   

Intangible assets

      117.961        113.708        112.033        103.021   

Organization and development charges

      117.961        113.708        112.033        103.021   

Other assets

      3.673.442        2.985.422        2.710 .394        2.320.028   

Total Assets

      54.882.260        49.256.009        46.041.953        41.502.507   

Deposits

      39.561.838        36.921.112        34.972.966        31.083.995   

Current accounts

      11.081.263        9.768.880        9.809.736        8.449.245   

Saving accounts

      10.617.959        10.900.303        9.732.679        8.939.251   

Time deposits

      17.028.514        15.507.405        14.779.514        12.914.882   

Investment Accounts

      5.422        5.420        6.454        141.063   

Rescheduled deposits CEDROS

      16.971        20.341        23.384        30.186   

Other deposits

      811.709        718.763        621.199        609.368   

Other banking Liabilities

      6.628.194        4.516.463        3.275.616        3.863.242   

Other provisions

      628.044        604.264        577.224        511.491   

Other contingencies

      627.341        603.606        576.739        511.022   

Guarantees

      703        658        485        469   

Other liabilities

      1.621.879        1.346.114        1.617.280        1.086.165   

Minority interest

      150.056        136.505        122.779        100.612   

Total Liabilities

      48.590.011        43.524.458        40.565.865        36.645.505   

Total Stockholders’ equity

      6.292.249        5.731.551        5.476 .088        4.857.002   

Total liabilities + stockholders’ equity

      54.882.260        49.256.009        46.041.953        41.502.507   

 

- 13 -

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

INCOME STATEMENT (in thousands of pesos)

 

    09-30-13     06-30-13     03-31-13     09-30-12  

Financial income

     2,186,542        1,663,920        1,739,415        1,503,507   

Interest on Cash and Due from Banks

     —          —          54        —     

Interest on Loans Granted to the Financial Sector

     80,684        72,097        69,421        66,725   

Interest on Overdraft

     339,139        282,638        260,372        197,454   

Interest on Discounted and purchased notes

     203,134        169,667        164,617        134,708   

Interest on Mortgages

     42,486        37,215        35,731        28,487   

Interest on Car Secured Loans

     155,533        140,853        129,754        106,333   

Interest on Credit Card Loans

     242,826        232,856        198,617        150,475   

Interest on Financial Leases

     62,548        56,477        49,812        40,354   

Interest on Other Loans

     583,205        519,844        474,708        424,315   

From Other Banking receivables

     10,493        9,644        9,288        8,835   

Interest on Government Guaranteed Loans Decree 1387/01

     3,921        432        2,200        1,807   

Income from Securities and Short Term Investments

     172,667        (28,307 )      175,669        202,599   

Net Income from options

     —          —          —          —     

CER

     33,194        28,127        38,809        29,635   

Foreign exchange difference

     135,046        82,857        55,674        52,371   

Other

     121,666        59,520        74,689        59,409   

Financial expenses

     (865,761 )      (703,508 )      (638,169 )      (520,731 ) 

Interest on Current Account Deposits

     —          —          —          —     

Interest on Saving Account Deposits

     (3,937 )      (3,445 )      (3,154 )      (2,602 ) 

Interest on Time Deposits

     (637,315 )      (510,314 )      (461,108 )      (383,913 ) 

Interest on Other Banking Liabilities

     (71,747 )      (56,917 )      (52,900 )      (43,384 ) 

Other interests (includes Central Bank)

     (1,899 )      (1,563 )      (1,415 )      (884 ) 

CER

     (23 )      (21 )      (35 )      (33 ) 

Bank Deposit Guarantee Insurance system mandatory contributions

     (15,843 )      (15,279 )      (14,661 )      (13,197 ) 

Mandatory contributions and taxes on interest income

     (133,858 )      (114,499 )      (103,978 )      (76,268 ) 

Other

     (1,139 )      (1,470 )      (918 )      (450 ) 

Net financial income

     1,320,781        960,412        1,101,246        982,776   

Provision for loan losses

     (102,888 )      (114,533 )      (94,100 )      (78,718 ) 

Income from services, net of other operating expenses

     678,628        607,768        544,674        474,675   

Administrative expenses

     (1,037,719 )      (938,454 )      (912,529 )      (770,844 ) 

Income (loss) from equity investments

     38,857        25,396        13,891        28,992   

Net Other income

     (23,830 )      (4,062 )      (15,989 )      (6,338 ) 

Income (loss) from minority interest

     (13,551 )      (13,725 )      (12,476 )      (9,521 ) 

Income before tax

     860,278        522,802        624,717        621,022   

Income tax

     (299,580 )      (267,339 )      (280,565 )      (203,648 ) 

Net income

     560,698        255,463        344,152        417,374   

 

- 14 -

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

 

     09-30-13      06-30-13      03-31-13      09-30-12  

Cash and due from banks

      7,769,169         8,092,724         7,576,492         6,429,982   

Government Securities

      5,913,866         4,426,562         4,350,836         5,204,688   

Loans

      33,646,501         31,590,757         29,948,613         25,651,259   

Other Banking Receivables

      3,618,734         1,880,738         1,241,745         1,702,139   

Assets Subject to Financial Leasing

      1,556,241         1,360,471         1,211,138         954,365   

Investments in other companies

      194,402         177,267         160,825         138,355   

Other assets

      2,279,586         1,780,109         1,650,922         1,503,384   

Total Assets

      54,978,499         49,308,628         46,140,571         41,584,172   

Deposits

      39,560,719         36,875,963         34,972,873         31,067,405   

Other banking liabilities

      6,628,194         4,516,463         3,276,442         3,863,348   

Minority interest

      156,324         143,097         129,677         109,689   

Other liabilities

      2,341,013         2,041,554         2,285,491         1,686,728   

Total Liabilities

      48,686,250         43,577,077         40,664,483         36,727,170   

Total Stockholders’ Equity

      6,292,249         5,731,551         5,476,088         4,857,002   

Stockholders’ Equity + Liabilities

      54,978,499         49,308,628         46,140,571         41,584,172   

Net Income

 

     30-09-13     06-30-13     03-31-13     09-30-12  

Net Financial Income

      1,323,999        962,793        1,104,045        985,726   

Provision for loan losses

      (102,888 )      (114,533 )      (94,100 )      (78,718 ) 

Net Income from Services

      678,628        607,768        544,674        474,675   

Administrative expenses

      (1,042,833 )      (941,719 )      (920,158 )      (775,263 ) 

Net Other Income

      16,870        22,186        2,213        24,323   

Income Before Tax

      873,776        536,495        636,674        630,743   

Income Tax

      (299,851 )      (267,613 )      (280,825 )      (203,648 ) 

Net income

      573,925        268,882        355,849        427,095   

Minoritary Interest

      (13,227 )      (13,419 )      (11,697 )      (9,721 ) 

Net income for Quarter

      560,698        255,463        344,152        417,374   

 

- 15 -

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

    BBVA Banco Francés S.A.
Date: November 8, 2013     By:  

/s/ Ignacio Sanz y Arcelus

    Name:   Ignacio Sanz y Arcelus
    Title:   Chief Financial Officer