Edgar Filing: BBVA BANCO FRANCES SA

Form 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

For the month of August 2017

Commission File Number: 001-12568

BBVA French Bank S.A.

(Translation of registrant’s name into English)

Reconquista 199, 1006

Buenos Aires, Argentina

(Address of principal executive offices)

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

Form 20-F ☒ Form 40-F ☐

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

Yes ☐ No ☒

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

Yes ☐ No ☒

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

Yes ☐ No ☒

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

BBVA Banco Francés S.A.

TABLE OF CONTENTS

Item

BBVA Francés reports consolidated second quarter results for fiscal year 2017

LOGO

Buenos Aires, August 10, 2017 - BBVA Francés (NYSE: BFR.N; BCBA: FRA.BA; LATIBEX:

BFR.LA) reports consolidated second quarter results for the January-December 2017

financial year.

Highlights of the quarter

•

BBVA Francés reached net income of AR$ 1,322.8 million in the first six months of 2017, while the result for the quarter registered a loss of AR$ 282.9 million.

•

It is important to mention that the first quarter of 2017 includes a net profit of AR$ 1,185.8 million due to the reduction in the provision for income tax, resulting in the application of the inflation adjustment in the calculation of such tax for the fiscal year 2016. Subsequent, in May 2017, the Central Bank of Argentina (BCRA) requested to record a provision for possible contingencies for the same amount, without issuing a judgment on the fiscal position adopted by the Bank, which remains unchanged.

•

Therefore, without taking this effect into consideration for both periods, the net income for the second quarter of 2017 reached AR$ 902.8, compared to AR$ 419.9 million for the first quarter.

•

Net financial income showed a good performance, increasing 12% compared to the previous quarter, mainly due to the growth of activity and the improvement of the funding mix, in addition to lower average balances of physical bills in local currency.

•

Although income from commissions continued to show positive development, the negative variation of 3.5% compared to the previous quarter and the year-over-year growth of 17.4% are affected by the impact of the reduction in merchant discount rate implemented in April 2017, situation that will begin to regularize in the next quarter through renegotiation of alliances.

•

Administrative expenses grew 4.5% and 36.9% compared to the first quarter of 2017 and to the second quarter of 2016, respectively.

•

In terms of activity, the private sector loan portfolio reached a total of AR$ 89,517.9 million, growing 8.0% in the quarter and 35.9% in the last twelve months.

•

Total non-performing loan ratio remains at 0.85%, similar to the previous quarter and to the same quarter of 2016, while coverage was 243.3% as of June 30, 2017. BBVA Francés maintains a leading position in the Argentine financial system in terms of asset quality.

•

Total deposits reached AR$ 125,674.2 million, growing at a slower rate this quarter (2.3%), mainly by the allocation of foreign exchange deposits to mutual funds, while they increased 35.4% compared to June 2016. As of June 30, 2017, sight deposits represented 62% of the total deposits in pesos compared to 57% in the previous quarter.

•

BBVA Francés maintains high levels of liquidity; as of June 30, 2017, liquid assets (cash and due from banks plus Central Bank bills and notes) represented 43.4% of the Bank’s deposits, compared to 47.4% the previous quarter.

•

The capital ratio reached 13.1%, 63 and 242 basis points less compared to March 2017 and to the second quarter of 2016, respectively.

Other events

•

In July 2017, BBVA Francés carried out a primary follow-on equity offering in Argentina and abroad, issuing 75,781,788 new ordinary shares.

•

Following the offering, BBVA Francés’ share capital reached AR$ 612,659,638. The BBVA Group maintains control of the entity with 66.55% of the shares, with a remaining 33.45% free float.

•

The objective of the issuance is to sustain the ambitious growth plan that BBVA Francés is implementing, taking advantage of the opportunities that exist in both the retail and commercial business lines.

•

On August 4, BBVA Francés carried out a Repurchase Agreement (Repo) transaction with the Argentine Republic in the amount of USD 200 million, with maturity in December 2018.

•

On July 18, 2017, the BCRA approved the cash dividend payment for the fiscal year 2016. On August 10, 2017, BBVA Francés paid out AR$ 911 million, equal to 148.69% of the share capital or $ 1.4869 per share.

Regulatory changes

•

On June 23, 2017, the BCRA issued communication “A” 6259, which renews the quotas for “credit line for production financing and financial inclusion” under the same framework as during the first half of the year. Thus, financial entities must maintain, as of July 1, 2017, a financing balance equal to, at minimum, 18% of the non-financial private sector deposits in pesos, calculated as a function of the monthly average of daily balances of May 2017.

Economic environment


		Quarter ended
Main Macroeconomic figures		06-30-17			03-31-17			12-31-16			09-30-16			06-30-16
GDP	var % y/y		—			0.3	%		-1.9	%		-3.7	%		-3.7	%
Inflation (1)	var % y/y		23.4	%		35.0	%		41.0	%		43.1	%		47.1	%
End of period	var % q/q		5.6	%		7.1	%		6.2	%		2.7	%		15.5	%
CER	Quarterly adjustment		7.0	%		4.6	%		4.5	%		7.4	%		9.5	%
Exchange Rate	Pesos x US$		16.60			15.38			15.85			15.26			14.92
Reserves	US$		47,995			50,522			39,308			29,902			30,507
Total Private Loans	var % q/q		11.6	%		5.6	%		12.0	%		6.3	%		7.9	%
	var % y/y		40.3	%		35.6	%		31.5	%		30.6	%		32.2	%
Total Private Deposits	var % q/q		7.0	%		1.8	%		20.7	%		5.3	%		7.0	%
	var % y/y		38.5	%		38.5	%		43.4	%		37.2	%		36.7	%
Badlar interest rate	Weighted avg. quarterly		19.5	%		19.8	%		21.1	%		24.6	%		30.2	%

(1)

CPI-CABA

The first quarter of the year showed growth of 0.3% in real GDP, compared to the same quarter of 2016.

Inflation in the second quarter of the year was 5.6% according to the Buenos Aires CPI. The variation in comparison to the same period of 2016 was 23.4%.

In July 2017, the INDEC (Instituto Nacional de Estadlstica y Censos de la Republica) published the National CPI, which covers the entire Argentine territory. The first report included information since January 2017 and showed monthly inflation of 1.2% in June, with accumulated inflation of 11.8% in the first half of 2017. The BCRA will use this index as the reference stabilization coefficient (CER; acronym in Spanish) and as a reference to set monetary policy within the inflation target framework.

In the second quarter of the year, the fiscal target was exceeded and the primary deficit reached AR$ 102.9 billion, growing 53.9% compared to the deficit recorded during the same period of 2016.

- 2 -

The trade balance registered a deficit of USD 1.5 billion in the second quarter of the year compared to a surplus of USD 1.0 billion recorded in the same period of 2016. This result is mainly the consequence of a strong increase in imports.

In the foreign exchange market, the peso depreciated 7.9%, from an exchange rate of $ 15.38 per USD in March 2017 to $ 16.60 at the end of June.

International reserves totaled USD 47.9 billion as of June 30, 2017, a decrease of USD 2.5 billion compared to the March 2017 balance.

Total private loans in the financial system grew 11.6% compared to the previous quarter and 40.3% year-over-year. The stock of private loans in pesos increased 7.9% and 30.1%, while loans denominated in dollars increased 24.0% and 104.8% in the same periods, respectively.

Private total deposits increased by 7.0% in the second quarter and 38.5% compared to June 2016. Private sector deposits in pesos increased 7.7% and 25.6% in the same periods, while those denominated in dollars fell 2.9% in the quarter and grew 89.7% in the last twelve months.

Presentation of the information

•

The balances in foreign currency as of June 30, 2017 were converted into pesos at the exchange rate of reference published by the BCRA for that date (AR$ 16.60 / USD).

•

The information in this press release contains unaudited financial information that consolidates, line item by line item, all of the banking activities of the BBVA Francés Group. The Bank’s share interest in Grupo Consolidar - BBVA Consolidar Seguros S.A. and Consolidar AFJP (in liquidation) is shown as “Investments in Other Companies” (recorded under the equity method), and the corresponding results are included in “Income from Equity Investments”.

•

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

Disclaimer

This press release contains or may contain forward-looking statements within the meaning of the United States Securities Litigation Reform Act of 1995, including but not limited to estimates of the prospects for the Argentine economy, BBVA Francés’ earnings, business plans, expense and operational structure adjustments, capitalization plan, and trends affecting BBVA Francés’ financial condition and results of operations. Any forward-looking statements included in this press release are based on current expectations and estimates, but actual results and events may differ materially from anticipated future results and events. Certain factors which could cause the actual results and events to differ materially from the expected results or events include: (1) 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.

- 3 -

Results for the Quarter

BBVA Francés has set the goal of reaffirming its leadership position in the Argentine market. To this end, it has defined an ambitious growth plan.

In this regard, the Bank has added 400,000 new clients in the last two years, 68,000 in the last quarter.

This strategy has been developed through both traditional and digital channels, with the latter already representing 50% of new incorporations.

In order to promote such growth, BBVA Francés is strengthening its capabilities in the digital world, in the value of its business alliances, which make it possible to offer products that are very attractive to clients and in the excellent risk management, which translates into greater flexibility to act decisively within this process.

This strategy has made it possible to win customers quickly and at a lower long-term cost, since it avoids generating a permanent physical structure of fixed costs in an environment where customers will increasingly demand digital solutions.

On the other hand, the acquisition costs have a full and immediate impact on the income statement, while the incomes coming from these new accounts is gradual, affecting the potential for generating results in the short term.


Condensed Income Statement (1)				Quarter ended												D% quarter ended 06-30-17 vs quarter ended
In thousands of $ except income per share,
ADS	06-30-17			03-31-17			12-31-16			09-30-16			06-30-16			03-31-17			06-30-16
Net Financial Income		3,432,939			3,063,776			3,252,260			2,836,361			3,342,802			12.0	%		2.7	%
Provision for loan losses		(356,386	)		(323,969	)		(331,013	)		(226,335	)		(336,129	)		10.0	%		6.0	%
Net income from services		1,191,061			1,234,102			1,076,422			1,300,901			1,014,393			-3.5	%		17.4	%
Administrative expenses		(3,027,058	)		(2,897,619	)		(2,860,570	)		(2,373,439	)		(2,211,679	)		4.5	%		36.9	%
Operating income		1,240,556			1,076,290			1,137,099			1,537,488			1,809,387			15.3	%		-31.4	%
Income (Loss) from equity investments		155,131			19,491			17,083			20,132			102,183			695.9	%		51.8	%
Income (Loss) from Minority interest		(29,601	)		(27,853	)		(13,547	)		(24,753	)		(34,113	)		6.3	%		-13.2	%
Other Income/Expenses		(1,168,459	)		855,111			(141,517	)		(4,163	)		(27,480	)		236.6	%		n/a
Income Tax / Minimum Presumed Tax		(480,622	)		(317,269	)		(416,713	)		(595,779	)		(886,719	)		51.5	%		-45.8	%
Net income for the period		(282,995	)		1,605,770			582,405			932,925			963,258			-117.6	%		-129.4	%
Net income per share (2)		(0.53	)		2.99			1.08			1.74			1.79			-117.6	%		-129.4	%
Net income per ADS (3)		(1.58	)		8.97			3.25			5.21			5.38			-117.6	%		-129.4	%
Net Income not considerig fiscal provision		902,805			419,970			582,405			932,925			963,258			115.0	%		-6.3	%

(1)	Exchange rate: AR$ 16.60 Ps = 1 USD

(2)	Assumes 536,877,850 ordinary shares

(3)	Each ADS represents three ordinary shares


Main figures				Quarter ended												D% quarter ended 06-30-17 vs quarter ended
(in thousands of pesos)	06-30-17			03-31-17			12-31-16			09-30-16			06-30-16			03-31-17			06-30-16
ROA (Average Assets) (1)		-0.6	%		3.9	%		1.6	%		2.8	%		3.1	%		-116.4	%		-120.3	%
ROE (Average Shareholders’ Equity) (1)		-6.7	%		38.7	%		14.3	%		24.0	%		25.9	%		-117.2	%		-125.8	%
NIM (1)(2)		11.4	%		11.7	%		11.6	%		14.2	%		12.5	%		-2.4	%		-8.5	%
Net fee income / Net operating Income (3)		25.8	%		28.7	%		24.9	%		31.4	%		23.3	%		-10.3	%		10.6	%
Coverage ratio (4)		39.3	%		42.6	%		37.6	%		54.8	%		45.9	%		-7.6	%		-14.2	%
Efficiency ratio (5)		65.5	%		67.4	%		66.1	%		57.4	%		50.8	%		-2.9	%		29.0	%

(1)	Annualized.

(2)	Net interest Margin: Financial Income-Financial Expenses (include Gross Income Tax and SEDESA) / Average Interest-Earning Assets (net of foreign exchange difference)

(3)	Operative income: Net financial income + Net income from services

(4)	Net income from services / Adm.Expenses

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

- 4 -

Net Financial Income


Net financial income			Quarter ended								D% quarter ended 06-30-17 vs quarter ended
(in thousands of pesos)	06-30-17		03-31-17		12-31-16		09-30-16		06-30-16		03-31-17			06-30-16
Financial Income		5,637,429		5,280,611		5,540,183		5,472,394		6,159,658		6.8	%		-8.5	%
Income from financial intermediation		4,039,850		4,060,877		4,096,831		4,130,077		4,086,635		-0.5	%		-1.1	%
CER adjustment		155,398		100,285		97,613		168,496		148,734		55.0	%		4.5	%
Income Securities and short term inv.		778,964		593,345		807,994		805,340		1,516,966		31.3	%		-48.6	%
Foreign exchange difference		431,991		306,004		458,312		240,758		333,214		41.2	%		29.6	%
Others		231,226		220,100		79,433		127,723		74,109		5.1	%		212.0	%
Financial Expenses		-2,204,490		-2,216,835		-2,287,923		-2,636,033		-2,816,856		-0.6	%		-21.7	%
Net Financial Income		3,432,939		3,063,776		3,252,260		2,836,361		3,342,802		12.0	%		2.7	%

Net financial income grew 12% in comparison with the previous quarter, sustained by the positive performance of the intermediation with the private sector. Although the lending rates continue to experience downward pressure, the improvement in the financing structure and lower time deposits rates partially offset this effect.

Other factors that contributed to this improvement are a lower stock of physical bills, as a consequence of actions implemented to regularize this situation, which will continue in the coming months, and the higher income from foreign exchange difference due to the devaluation of the peso.

The NIM fell 31 basis points mainly due to the greater weight of activity in dollars, which has a smaller margin, while the NIM by currency remain stable compared to the previous quarter.

Interest-Earning Assets & Interest-Bearing

Quarter ended

Liabilities $ + USD

06-30-17

03-31-17

06-30-16

(Averege in thouhand of AR$)

Capital

Rate

Capital

Rate

Interest-Earning Assets

106,177,951

19.6

96,291,026

21.1

80,967,369

29.0

Interest-Bearing Liabilities

85,211,913

8.0

80,036,663

8.7

60,442,821

15.84

NIM

11.4

11.7

12.5

A table of return on assets and cost of liabilities is included by currency: pesos and dollars.


Interest-Earning Assets & Interest-Bearing Liabilities $	30-06-16						Quarter ended 03-31-17						30-06-16
(Average in thouhand of AR$)	Capital			Rate			Capital			Rate			Capital			Rate
Interest-Earning Assets		85,899,553			23.6	%		79,754,949			24.9	%		71,733,385			29.0	%
Public Bonds		15,203,478			22.4	%		10,195,793			25.7	%		14,813,119			38.5	%
Loans		64,125,816			23.9	%		63,688,772			24.8	%		54,807,125			26.5	%
Public Sector		—			—			28,260			35.6	%		71,240			55.4	%
Private Sector		64,125,816			23.9	%		63,660,512			24.8	%		54,735,885			26.5	%
Other interest-earning assets		6,570,258			23.6	%		5,870,383			24.6	%		2,113,141			24.8	%
Interest-Bearing Liabilities		54,708,191			11.6	%		54,803,079			12.6	%		60,442,821			15.84	%
Saving Accounts		20,146,700			0.1	%		19,404,565			0.2	%		22,581,015			0.16	%
Time Deposits		32,333,089			18.4	%		32,364,738			19.2	%		35,212,103			25.0	%
Current accounts with interest		2,226,348			16.3	%		389,255			15.4	%		—			—
Debt Securities		1,594			22.9	%		1,670,383			23.4	%		1,430,120			34.3	%
Other interest-bearing liabilities		458			19.9	%		974,137			21.8	%		1,219,583			20.0	%
NIM $		14.4	%					14.5	%					17.6	%

- 5 -


Interest-Earning Assets & Interest-Bearing										Quarter ended
Liabilities USD	06-30-17						03-31-17						06-30-16
(Averege in thouhand of AR$)	Capital			Rate			Capital			Rate			Capital			Rate
Interest-Earning Assets		20,278,398			2.5	%		16,536,078			2.6	%		9,233,983			2.9	%
Public Bonds		4,334,166			3.2	%		2,882,160			3.0	%		2,383,448			1.1	%
Loans		14,564,480			2.5	%		11,992,220			2.8	%		6,110,631			3.9	%
Other interest-earning assets		1,379,752			0.8	%		1,661,698			0.5	%		739,904			0.1	%
Interest-Bearing Liabilities		28,452,920			0.1	%		25,233,584			0.2	%		16,686,595			0.5	%
Saving Accounts		22,221,119			0.0	%		18,699,704			0.0	%		22,581,015			0.2	%
Time Deposits		5,939,973			0.3	%		6,151,515			0.4	%		35,212,103			25.0	%
Other interest-bearing liabilities		291,828			4.4	%		382,365			4.6	%		1,219,583			20.0	%
NIM USD		1.9	%					1.8	%					1.3	%

Results for Public and Private Securities


Income from securities and short-term investments						Quarter ended							D% quarter ended 06-30-17 vs quarter ended
(in thousands of pesos)	06-30-17			03-31-17		12-31-16		09-30-16			06-30-16		03-31-17			06-30-16
Income Securities and short term inv.		778,964			592,264		801,184		794,614			1,507,146		31.5	%		-48.3	%
Income Interest Margin		777,079			445,641		659,167		871,502			1,073,706		74.4	%		-27.6	%
Bills and Notes from the Central Bank		716,362			368,754		574,204		779,982			899,872		94.3	%		-20.4	%
Other bonds		60,718			76,887		84,963		91,519			173,834		-21.0	%		-65.1	%
Income Financial Operations		(45,905	)		114,066		87,426		(105,021	)		406,697		-140.2	%		-111.3	%
Bills and Notes from the Central Bank		12,579			18,608		11,132		(162	)		98,764		-32.4	%		-87.3	%
Other bonds		(58,484	)		95,458		76,294		(104,859	)		307,933		-161.3	%		-119.0	%
Other fixed income securities		47,789			32,557		54,590		28,133			26,743		46.8	%		78.7	%
CER adjustment		155,398			100,285		97,614		168,495			148,734		55.0	%		4.5	%

Financial income coming from public sector assets grew 31.5% in the quarter, mainly due to greater gross income generated by the BCRA bills portfolio. During the quarter, it was decided to allocate a higher percentage of liquidity to such instruments, reducing the portfolio of repo transactions.

The quarter also registered a negative impact originating in the valuation of the BOGAR 20 bond, as a result of the widening of spreads on the curve of government bonds adjusted by CER.

Net Income from Services


Net income from services							Quarter ended									D% quarter ended 06-30-17 vs quarter ended
(in thousands of pesos)	06-30-17			03-31-17			12-31-16			09-30-16			06-30-16			03-31-17			06-30-16
Net income from services		1,191,061			1,234,102			1,076,422			1,300,901			1,014,393			-3.5	%		17.4	%
Service charge income		2,485,825			2,481,746			2,398,519			2,241,382			1,838,242			0.2	%		35.2	%
Service charges on deposits accounts		568,815			498,412			430,468			392,719			316,011			14.1	%		80.0	%
Credit cards and operations		883,586			987,996			1,000,246			998,318			863,112			-10.6	%		2.4	%
Insurance		151,393			168,532			170,554			162,817			152,951			-10.2	%		-1.0	%
Capital markets and securities activities		31,306			16,936			16,533			25,547			15,091			84.9	%		107.4	%
Fees related to foreign trade		77,239			67,389			70,283			64,812			59,085			14.6	%		30.7	%
Safety deposit box		82,482			74,202			74,569			65,730			52,497			11.2	%		57.1	%
Services of collection		48,661			42,022			39,283			35,549			32,785			15.8	%		48.4	%
Generated by subsidiaries		324,080			298,607			205,153			129,140			108,929			8.5	%		197.5	%
Other fees		318,263			327,651			391,430			366,750			237,780			-2.9	%		33.8	%
Services Charge expense		(1,294,764	)		(1,247,644	)		(1,322,097	)		(940,481	)		(823,849	)		3.8	%		57.2	%

Net income from services fell 3.5% in comparison to the first quarter of 2017 and increased 17.4% compared to the second quarter of 2016.

- 6 -

Commissions maintained a good performance in the second quarter, principally those associated with deposit accounts both due to price increases and a larger volume of activity. Commissions generated by credit cards reflect an increase in consumption volumes of 6%, greater than the market, compensated by the negative impact of the decrease in the merchant discount rate, situation that will be regularized starting in the next quarter, both due to renegotiation of benefits and higher incomes that will be accounting in the line “Income from other investments”.

Expenditures increased 3.8% compared to the previous quarter and 57.2% compared to the second quarter of 2016. The year-over-year variation is explained by greater commissions paid for the LATAM Pass program, which included the client attraction campaign and promotions for purchases with credit cards and for insurance.

Administrative Expenses


Administrative expenses	Quarter ended															D% quarter ended 06-30-17 vs quarter ended
(in thousands of pesos)	06-30-17			03-31-17			12-31-16			09-30-16			06-30-16			03-31-17			06-30-16
Administrative expenses		(3,027,058	)		(2,897,619	)		(2,860,570	)		(2,373,439	)		(2,211,679	)		4.5	%		36.9	%
Personnel expenses		(1,706,425	)		(1,635,877	)		(1,694,758	)		(1,335,778	)		(1,304,321	)		4.3	%		30.8	%
General expenses		(1,320,633	)		(1,261,742	)		(1,165,812	)		(1,037,661	)		(907,358	)		4.7	%		45.5	%
Electricity and Communications		(56,482	)		(52,036	)		(59,685	)		(59,459	)		(45,586	)		8.5	%		23.9	%
Advertising and Promotion		(104,197	)		(82,525	)		(106,078	)		(102,929	)		(100,810	)		26.3	%		3.4	%
Fees and external administrative services		(56,993	)		(49,289	)		(45,649	)		(45,089	)		(33,306	)		15.6	%		71.1	%
Taxes		(282,287	)		(279,474	)		(265,956	)		(237,145	)		(211,650	)		1.0	%		33.4	%
Organization and development expenses		(28,539	)		(24,846	)		(20,555	)		(19,448	)		(19,486	)		14.9	%		46.5	%
Amortizations		(112,281	)		(87,628	)		(73,633	)		(62,980	)		(55,658	)		28.1	%		101.7	%
Rents		(106,084	)		(112,106	)		(108,211	)		(93,700	)		(95,365	)		-5.4	%		11.2	%
Maintainance, conservation and repairs		(130,637	)		(134,038	)		(104,528	)		(85,485	)		(60,417	)		-2.5	%		116.2	%
Security Service		(71,328	)		(71,101	)		(66,610	)		(68,533	)		(56,649	)		0.3	%		25.9	%
Carriage of valuables		(179,109	)		(164,900	)		(145,398	)		(118,129	)		(85,672	)		8.6	%		109.1	%
Other		(192,696	)		(203,799	)		(169,509	)		(144,764	)		(142,759	)		-5.4	%		35.0	%

Total Employees		6,190			6,219			6,265			6,114			5,985			-0.5	%		3.4	%

Total Branches		252			252			251			251			251			0.0	%		0.4	%

Administrative expenses increased 4.5% in the last three months and 36.9% in comparison with the same quarter of 2016.

Personnel expenses grew 4.3% and 30.8% compared to the previous quarter and to the second quarter of 2016, respectively.

General expenses increased 4.7% over the previous quarter and 45.5% year-over-year. Although expenses for carriage of cash show above-average variations, the improvement in monthly evolution reflects the actions implemented by the bank.

Finally, amortizations growths mainly due to the investments in technology and, starting this quarter, also due to the inclusion of the new corporate headquarters.

The efficiency ratio reached 65.5% for the quarter, falling 190 basis points in comparison to the preceding quarter. Although these ratios are above historical levels, due in large part to the aggressive client growth strategy mentioned earlier, BBVA Francés has the goal of normalizing these ratios in the coming quarters both by generating greater incomes and by implementing specific expenses reduction plans.

Other Income / Expenditures

The Other Income / Expenditures line item registered a loss of AR$ 1,168.5 million in the second quarter of 2017, which includes a provision of AR$ 1,185.8 million related to the application of the adjustment for inflation in the calculation of the income tax for the 2016 financial year.

- 7 -

Income from Equity Investments

Income from equity investments sets forth net income from related companies that are not consolidated. During the second quarter of 2017, a profit of AR$ 155.1 million was registered, mainly due to the participation in BBVA Seguros, in addition to income from the valuation of the participation in Interbanking S.A. and in Prisma S.A. (a strategic alliance between VISA Argentina and Banelco S.A.).

Balance and activity

Loan portfolio


Net loans	Quarter ended															D% quarter ended 06-30-17 vs quarter ended
(in thousands of pesos)	06-30-17			03-31-17			12-31-16			09-30-16			06-30-16			03-31-17			06-30-16
Private & Financial sector loans in $		71,820,037			68,429,094			66,472,453			60,724,382			57,421,059			5.0	%		25.1	%
Advances		9,495,624			9,463,160			9,540,668			10,783,767			10,090,439			0.3	%		-5.9	%
Discounted and purchased notes		9,128,070			9,227,187			9,810,847			9,267,218			7,924,229			-1.1	%		15.2	%
Consumer Mortgages		2,071,739			1,892,840			1,889,443			1,866,569			1,992,813			9.5	%		4.0	%
Car secured loans		6,986,809			6,368,608			5,628,320			5,087,540			4,563,281			9.7	%		53.1	%
Personal loans		11,646,873			10,522,971			9,368,939			8,172,953			7,582,330			10.7	%		53.6	%
Credit cards		22,516,560			21,775,867			21,539,673			18,675,353			18,307,405			3.4	%		23.0	%
Loans to financial sector		2,217,403			1,739,275			1,715,873			1,697,297			1,749,174			27.5	%		26.8	%
Other loans		8,621,253			8,200,489			7,512,590			5,605,681			5,450,379			5.1	%		58.2	%
Unaccrued interest		(312,439	)		(315,649	)		(329,346	)		(299,131	)		(207,673	)		-1.0	%		50.4	%
Adj. & accrued int. & exchange diff. receivable		1,166,756			1,164,083			1,286,851			1,270,412			1,293,985			0.2	%		-9.8	%
Less: Allowance for loan losses		(1,718,611	)		(1,609,737	)		(1,491,405	)		(1,403,277	)		(1,325,303	)		6.8	%		29.7	%
Private & Financial sector loans in FX		17,697,870			14,482,355			12,318,649			10,378,884			8,425,260			22.2	%		110.1	%
Advances		7,952			7,233			5,897			6,137			7,981			9.9	%		-0.4	%
Discounted and purchased notes		941,959			858,646			1,085,875			1,206,288			672,635			9.7	%		40.0	%
Credit cards		1,463,325			1,301,292			981,170			1,023,339			1,113,350			12.5	%		31.4	%
Loans to financial sector		109,892			127,133			130,914			151,183			73			n/a			n/a
Other loans		15,355,731			12,336,206			10,241,540			8,098,739			6,719,772			24.5	%		128.5	%
Less: Allowance for loan losses		(180,989	)		(148,155	)		(126,747	)		(106,802	)		(88,509	)		22.2	%		104.5	%

Total Private Loans		89,517,907			82,911,449			78,791,102			71,103,266			65,846,319			8.0	%		35.9	%

Loans to public sector in $		140			156			98,819			93,336			83,654			-10.3	%		-99.8	%

Loans to public sector		138			155			8,786			8,895			8,772			-11.0	%		-98.4	%
Adjustment and accrued interest & exchange differences receivable		2			1			90,033			84,441			74,882			100.0	%		-100.0	%
Loans to non-financial public sector in foreign currency		99			—			—			—			—			n/a			n/a
Loans to public sector		99			—			—			—			—			n/a			n/a

Total loans to public sector		239			156			98,819			93,336			83,654			53.2	%		-99.7	%

Net Total Loans		89,518,146			82,911,605			78,889,921			71,196,602			65,929,973			8.0	%		35.8	%

The private sector loan portfolio totaled AR$ 89.5 billion, growing 8.0% in the quarter and 35.9% in comparison to the June 2016 balance.

In the last twelve months, loans in pesos increased 25.1%, while the figure in dollars did so at a faster rate (110.1%), with a larger volume of placements in foreign trade operations.

During the year, consumer loans registered a growth of 33.2%, with performance highlighted in both personal loans and car loans, which grew 53%, while credit cards did so at a slower pace of 23.5%, similar to the behavior seen in the last quarter. BBVA Francés is working to be a leader in the mortgage loans market, which presents positive prospects for the coming years. In this regard, monthly sales showed a growing dynamic.

Commercial loans grew 8.6% in the quarter and 41.1% in the last twelve months, with important dynamism in loans in dollars.

- 8 -

Total Public Sector Exposure


Public and Private Sector Exposure	Quarter ended															D% quarter ended 06-30-17 vs quarter ended
(in thousands of pesos)	06-30-17			03-31-17			12-31-16			09-30-16			06-30-16			03-31-17			06-30-16
Public Sector - National Government		7,920,788			6,889,933			5,276,924			3,385,701			4,363,302			15.0	%		81.5	%

Public Sector Loans		239			156			98,819			93,336			83,654			53.2	%		-99.7	%
Total bond portfolio		7,920,772			6,889,994			5,178,318			3,292,580			4,279,865			15.0	%		85.1	%
Allowances		(223	)		(217	)		(213	)		(215	)		(217	)		2.8	%		2.8	%
Bills and Notes from Central Bank		14,393,353			7,200,514			7,310,231			9,437,491			11,557,767			99.9	%		24.5	%

Total exposure to the Public		22,314,142			14,090,447			12,587,155			12,823,192			15,921,069			58.4	%		40.2	%

Private Debt		576,714			471,796			479,106			391,349			268,938			22.2	%		114.4	%

Total exposure to the Pub and Priv Sector		22,890,856			14,562,243			13,066,261			13,214,541			16,190,007			57.2	%		41.4	%

Portfolio Received for Repos		3,199,988			9,893,778			64,872			304,706			5,376,422			-67.7	%		-40.5	%
Public Bonds		37,061			—			—			—			—			n/a			n/a
BCRA Instruments		3,162,927			9,893,778			64,872			304,706			5,376,422			-68.0	%		-41.2	%

Exposure to the public sector National Government registered a 58.4% increase compared to the preceding quarter and 40.2% in the last twelve months.

The portfolio of public securities grew 15.0% over the previous quarter and 81.5% in the last twelve months, mainly due to a larger placement in Treasury Bills denominated in dollars, reducing the holdings of public securities in pesos.

The Bank’s portfolio of BCRA bills grew both compared to the preceding quarter and to the second quarter of 2016. During the first quarter of 2017, a major allocation of liquidity to repos was carried out, while in the quarter under analysis a greater proportion was allocated to bills.

On June 30, 2017, the public debt of the National Government represented 4.6% of the Bank’s assets, while Central Bank Bills reached 8.3%.

Portfolio Quality


Asset quality ratios	Quarter ended															D% quarter ended 06-30-17 vs quarter ended
(in thousands of pesos)	06-30-17			03-31-17			12-31-16			09-30-16			06-30-16			03-31-17			06-30-16
Non-performing loans (1)		780,886			707,907			616,075			600,139			570,472			10.3	%		36.9	%
Allowance for loan losses		(1,899,600	)		(1,757,892	)		(1,618,152	)		(1,510,079	)		(1,413,812	)		8.1	%		34.4	%
Non-performing loans/net total loans		0.85	%		0.84	%		0.77	%		0.83	%		0.85	%		2.2	%		0.8	%
Non-performing priv. loans/net priv. loans		0.85	%		0.84	%		0.77	%		0.83	%		0.85	%		2.2	%		0.7	%
Allowance for loan losses/non-performing		243.26	%		248.32	%		262.66	%		251.62	%		247.83	%		-2.0	%		-1.8	%
Allowance for loan losses/net total loans		2.08	%		2.08	%		2.01	%		2.08	%		2.10	%		0.1	%		-1.0	%

(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.

BBVA Francés maintains its leadership position in terms of risk management. The asset quality ratio (non-performing loans/total loans) was 0.85% as of June 30, 2017, with a coverage ratio (provisions/non-performing loans) of 243.26%.

The delinquency ratio remained at a similar level both in comparison to the previous quarter and to the same quarter of 2016, respectively.

- 9 -

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


Evolution of provisions	Quarter ended															D% quarter ended 06-30-17 vs quarter ended
(in thousands of pesos)	06-30-17			03-31-16			12-31-16			09-30-16			06-30-16			03-31-17			06-30-16
Balance at the beginning of the quarter		1,765,131			1,626,924			1,518,843			1,421,720			1,188,758			8.5	%		48.5	%

Increase/decrease		356,386			323,969			331,013			226,335			336,129			10.0	%		6.0	%
Increase/decrease-Foreign exchange diff.		13,410			(4,188	)		4,630			2,374			2,363			-420.2	%		-467.5	%
Applications / Reversals		(226,904	)		(181,574	)		(227,562	)		(131,586	)		(105,530	)		25.0	%		115.0	%

Balance at the end of the quarter		1,908,023			1,765,131			1,626,924			1,518,843			1,421,720			8.1	%		34.2	%

Deposits


Total deposits	Quarter ended										D% quarter ended 06-30-17 vs quarter ended
(in thousands of pesos)	06-30-17		03-31-17		12-31-16		09-30-16		06-30-16		03-31-17			06-30-16
Deposits $ denominated		84,035,746		82,248,799		74,902,584		70,139,742		73,740,949		2.2	%		14.0	%

Current accounts		22,693,886		21,484,467		21,419,738		19,132,845		22,753,131		5.6	%		-0.3	%
Saving accounts		27,221,181		23,190,831		21,273,125		17,365,933		17,453,110		17.4	%		56.0	%
Time deposits		32,209,592		35,197,959		30,079,381		31,865,941		31,944,736		-8.5	%		0.8	%
Peso denominated		31,963,572		35,001,533		30,076,548		31,863,676		31,943,528		-8.7	%		0.1	%
CER adjusted time deposits		246,020		196,426		2,833		2,265		1,208		n/a			n/a
Investment Accounts		213		85,194		85,194		85,091		85,591		-99.7	%		n/a
Other		1,910,874		2,290,348		2,045,146		1,689,932		1,504,381		-16.6	%		27.0	%

Deposits FX denominated		41,638,489		40,573,257		39,719,184		21,765,448		19,086,318		2.6	%		118.2	%

Current accounts		126,632		89,817		782,954		848,591		1,578,285		41.0	%		-92.0	%
Saving accounts		30,552,506		23,779,226		21,318,030		14,956,855		12,146,478		28.5	%		151.5	%
Time deposits		6,270,117		5,961,593		6,220,811		5,200,667		4,962,250		5.2	%		26.4	%
Other		4,689,234		10,742,621		11,397,389		759,335		399,305		-56.3	%		n/a

Total deposits		125,674,235		122,822,056		114,621,768		91,905,190		92,827,267		2.3	%		35.4	%

Total deposits reached AR$ 125.7 billion, with increases of 2.3% during the second quarter of 2017 and 35.4% in the last twelve months.

In terms of currency, deposits in pesos went up 2.2% compared to the previous quarter and 14.0% annually, with transactional deposits growing 11.7% and 24.1% in the same periods. Time deposits decreased 8.5% in the quarter while it grew only 1% year-over-year, the Bank followed a strategy of lower portfolio in the corporate segment as a result of an excess of liquidity.

In relation of deposits denominated in foreign currency, it registered an important increase of 118.2% in comparison to the same quarter of the previous year, in part as a result of the application of the tax amnesty regime. During the last quarter, the established time of compulsory permanence established by such regime finished, so part of such deposits were transferred to mutual funds, resulting in a lower growth of 2.6%

At the close of June 2017, deposits in foreign currency reached AR$ 41.6 billion (equal to USD 2.5 billion), representing 33.1% of the Bank’s total deposits.

Other Sources of Funds


Other funding sources	Quarter ended										D% quarter ended 06-30-17 vs quarter ended
(in thousands of pesos)	06-30-17		03-31-17		12-31-16		09-30-16		06-30-16		03-31-17			06-30-16
Lines from other banks		1,382,049		1,435,605		1,502,786		1,875,463		1,076,653		-3.7	%		28.4	%
Senior Bonds		2,115,473		2,056,274		2,211,078		2,093,095		1,583,253		2.9	%		33.6	%

Total other funding sources		3,497,522		3,491,879		3,713,864		3,968,558		2,659,906		0.2	%		31.5	%

- 10 -

Capitalization


Capitalization	Quarter ended										D% quarter ended 06-30-17 vs quarter ended
(in thousands of pesos)	06-30-17		03-31-17		12-31-16		09-30-16		06-30-16		03-31-17			06-30-16
Capital Stock		536,878		536,878		536,878		536,878		536,878		0.0	%		0.0	%
Issuance premiums		182,511		182,511		182,511		182,511		182,511		0.0	%		0.0	%
Adjustments to stockholders equity		312,979		312,979		312,979		312,979		312,979		0.0	%		0.0	%
Subtotal		1,032,368		1,032,368		1,032,368		1,032,368		1,032,368		0.0	%		0.0	%
Reserves on Profits		14,516,667		14,516,667		11,783,995		11,783,995		11,783,995		0.0	%		23.2	%
Unrealized valuation difference		1,322,775		1,605,770		3,643,672		3,061,267		2,128,342		-17.6	%		-37.8	%
Total stockholders’equity		16,871,810		17,154,805		16,460,035		15,877,630		14,944,705		-1.6	%		12.9	%

Total shareholders’ equity totaled AR$ 16.9 billion as of June 30, 2017. The capital ratio for the same period was 13.1% (accounted paid-in capital/risk-weighted assets), registering a decline of 63 and 242 basis points during the quarter and the year, respectively.


Central Bank Requirements	Quarter ended															D% quarter ended 06-30-17 vs quarter ended
(in thousands of pesos)	06-30-17			03-31-16			12-31-16			09-30-16			06-30-16			03-31-17			06-30-16
CB Minimum Capital Requirements		11,608,879			11,206,375			10,577,441			9,406,443			8,408,006			3.6	%		38.1	%
CB Minimum Capital Requirements(a,b)		11,608,879			11,206,375			10,321,905			9,225,447			8,231,916			3.6	%		41.0	%
Increase in capital req. related to custody		—			—			255,536			180,996			176,090			n/a			-100.0	%
a) CB Minimum Capital Requirements		11,608,879			11,206,375			10,321,905			9,225,447			8,231,916			3.6	%		41.0	%
Allocated to Asset at Risk		9,046,865			8,785,277			7,926,163			7,017,244			6,066,448			3.0	%		49.1	%
Market Risk		287,776			270,773			291,744			211,525			297,602			6.3	%		-3.3	%
Operational Risk		2,274,238			2,150,325			2,103,998			1,996,678			1,867,866			5.8	%		21.8	%
b) Min. Cap. required for the G.F.S. of the Pas-as-you-go System managed by the Arqentine Republic		—			—			1,022,144			723,985			704,360			n/a			-100.0	%
1% of the securities in custody and book-entry notes		—			—			1,022,144			723,985			704,360			n/a			-100.0	%
Bank Capital		18,632,561			18,843,971			17,420,859			16,694,008			15,669,000			-1.1	%		18.9	%
Ordinary Capital Level 1		17,451,690			17,674,906			16,698,101			16,056,616			15,086,805			-1.3	%		15.7	%
Dedusctions Ordinary Capital Level 1		(525,144	)		(465,878	)		(390,238	)		(360,327	)		(337,279	)		12.7	%		55.7	%
Capital Level 2		1,260,472			1,169,850			1,112,996			997,719			919,474			7.7	%		37.1	%
Aditional Capital Level 1		445,543			465,093			—			—			—			-4.2	%		n/a
Excess over Required Capital		7,023,682			7,637,596			6,843,418			7,287,565			7,260,994			-8.0	%		-3.3	%
Capital Ratio (Central Bank rules)		13.1	%		13.8	%		13.8	%		14.8	%		15.6	%		-4.6	%		-15.6	%
Excess over Required Capital as a % of Shareholders’Equity		41.6	%		45.3	%		39.9	%		44.3	%		45.7	%		-8.0	%		-9.0	%

- 11 -

Conference Call

On Monday, August 14, 2017, at 1:00 p.m. (Argentina time) a conference call will be held to comment on the results of the quarter.

Those who wish to participate should contact the following numbers:

0800-444-2930 (from Argentina)

+ 1 877-317-6776 (from the United States)

+ 1 412 317 6776 (from other countries)

Conference ID: BBVA

To access the webcast:

http://webcast.engage-x.com/Cover.aspx?Platformld=rPBRIOk5y7IBkoZ9SV7jvg%3D%3D

To request the Replay, contact:

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

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

The replay will be available until August 21, 2017

Replay access code: 10110863

Internet

This press release is available on the web page of BBVA Francés. www.bbvafrances.com.ar

Contacts

Cecilia Acuña

Investor relations

(5411) 4341-5036

ceciliaviviana.acuna@bbva.com

Diego Cesarini

Financial Management and Investor Relations

dcesarini@bbva.com

- 12 -

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

BALANCE SHEET (in thousands of pesos)


	06-30-17			03-31-17			12-31-16			09-30-16			06-30-16
Cash and due from banks		37,048,209			41,149,362			48,226,105			30,296,084			26,524,315
Government and Private Securities		25,749,754			24,205,939			12,706,389			13,128,861			21,279,564
Holdings booked at fair value		6,992,766			5,646,590			4,274,229			3,291,490			4,241,363
Holdings booked at amortized cost		965,068			1,243,404			904,089			1,090			38,502
Listed Private Securities		235,863			221,870			153,181			94,299			65,726
Bills and Notes from the Central Bank		17,556,280			17,094,292			7,375,103			9,742,197			16,934,190
Less: Allowances		(223	)		(217	)		(213	)		(215	)		(217	)
Loans		89,518,146			82,911,605			78,889,921			71,196,602			65,929,973
Loans to the private & financial sector		89,517,907			82,911,449			78,791,102			71,103,266			65,846,319
Advances		9,503,576			9,470,393			9,546,565			10,789,904			10,098,420
Discounted and purchased notes		10,070,029			10,085,833			10,896,722			10,473,506			8,596,864
Secured with mortgages		2,071,739			1,892,840			1,889,443			1,866,569			1,992,813
Car secured loans		6,986,809			6,368,608			5,628,320			5,087,540			4,563,281
Personal loans		11,646,873			10,522,971			9,368,939			8,172,953			7,582,330
Credit cards		23,979,885			23,077,159			22,520,843			19,698,692			19,420,755
Loans to financial sector		2,327,295			1,866,408			1,846,787			1,848,480			1,749,247
Other loans		23,976,984			20,536,695			17,754,130			13,704,420			12,170,151
Less: Unaccrued interest		(312,439	)		(315,649	)		(329,346	)		(299,131	)		(207,715	)
Plus: Interest & FX differences receivable		1,166,756			1,164,083			1,286,851			1,270,412			1,293,985
Less: Allowance for loan losses		(1,899,600	)		(1,757,892	)		(1,618,152	)		(1,510,079	)		(1,413,812	)
Public Sector loans		239			156			98,819			93,336			83,654
Principal		237			155			8,786			8,895			8,772
Plus: Interest & FX differences receivable		2			1			90,033			84,441			74,882
Other banking receivables		9,771,087			26,190,719			2,427,906			7,890,155			9,659,883
Repurchase agreements		3,039,700			9,784,973			—			305,269			5,084,968
Unlisted private securities		340,851			249,926			325,925			297,050			203,212
Other banking receivables		6,398,959			16,163,059			2,110,753			7,296,600			4,379,611
Less: provisions		(8,423	)		(7,239	)		(8,772	)		(8,764	)		(7,908	)
Investments in other companies		514,077			539,825			510,878			499,226			473,517
Intangible assets		354,534			331,419			315,811			286,330			272,423
Goodwill		3,296			3,386			3,476			3,566			—
Organization and development charges		351,238			328,033			312,335			282,764			272,423
Other assets		9,459,638			8,999,121			8,638,393			7,592,656			7,405,309

Total Assets		172,415,445			184,327,990			151,715,403			130,889,914			131,544,984

Deposits		125,674,235			122,822,056			114,621,768			91,905,190			92,827,267
Current accounts		22,820,518			21,574,284			22,202,692			19,981,436			24,331,416
Saving accounts		57,773,687			46,970,057			42,591,155			32,322,788			29,599,588
Time deposits		38,479,709			41,159,552			36,300,192			37,066,608			36,906,986
Investment Accounts		213			85,194			85,194			85,091			85,591
Rescheduled deposits CEDROS		1,951			1,951			1,959			2,224			2,224
Other deposits		6,598,157			13,031,018			13,440,576			2,447,043			1,901,462
Other banking Liabilities		21,152,694			37,891,164			13,785,069			17,131,159			17,439,924
Other provisions		2,587,759			1,317,224			1,375,154			1,169,099			1,113,625
Other contingencies		2,587,159			1,316,606			1,374,573			1,168,415			1,112,968
Guarantees		600			618			581			684			657
Other liabilities		5,564,345			4,607,529			4,856,020			4,423,620			4,908,410
Minority interest		564,602			535,212			617,357			383,216			311,053

Total Liabilities		155,543,635			167,173,185			135,255,368			115,012,284			116,600,279

Total Stockholders’ equity		16,871,810			17,154,805			16,460,035			15,877,630			14,944,705

Total liabilities + stockholders’ equity		172,415,445			184,327,990			151,715,403			130,889,914			131,544,984

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

INCOME STATEMENT (in thousands of pesos)


	06-30-17			03-31-17			12-31-16			09-30-16			06-30-16
Financial income		5,637,429			5,280,611			5,540,183			5,472,394			6,159,658

Interest on Cash and Due from Banks		—			—			—			—			—
Interest on Loans Granted to the Financial Sector		109,189			90,605			113,359			125,081			136,181
Interest on Overdraft		679,137			769,018			843,578			954,753			927,369
Interest on Discounted and purchased notes		453,878			463,665			503,617			519,273			519,982
Interest on Mortgages		86,063			88,634			92,677			100,347			100,306
Interest on Car Secured Loans		296,662			298,138			280,469			277,860			276,984
Interest on Credit Card Loans		1,029,208			1,064,647			1,048,804			982,507			1,005,398
Interest on Financial Leases		110,471			107,085			108,107			109,609			114,964
Interest on Other Loans		1,274,390			1,178,537			1,106,035			1,060,249			1,005,356
From Other Banking receivables		852			548			185			398			95
Interest on Government Guaranteed Loans Decree 1387/01		—			1,081			6,810			10,728			9,820
Income from Securities and Short Term Investments		778,964			592,264			801,184			794,612			1,507,146
CER		155,398			100,285			97,613			168,496			148,734
Foreign exchange difference		431,991			306,004			458,312			240,758			333,214
Other		231,226			220,100			79,433			127,723			74,109

Financial expenses		(2,204,490	)		(2,216,835	)		-2,287,923			-2,636,033			-2,816,856

Interest on Current Account Deposits		(95,546	)		(14,811	)		—			—			—
Interest on Saving Account Deposits		(7,962	)		(7,760	)		(7,817	)		(8,710	)		(9,019	)
Interest on Time Deposits		(1,457,271	)		(1,534,706	)		(1,618,512	)		(2,031,231	)		(2,195,456	)
Interest on Other Banking Liabilities		(207,362	)		(215,259	)		(222,302	)		(193,998	)		(191,555	)
Other interests (includes Central Bank)		(312	)		(629	)		(674	)		(881	)		(1,128	)
CER		(15,410	)		(1,915	)		(126	)		(86	)		(105	)
Bank Deposit Guarantee Insurance system mandatory contributions		(52,593	)		(48,777	)		(40,376	)		(37,514	)		(34,600	)
Mandatory contributions and taxes on interest income		(358,932	)		(355,405	)		(352,205	)		(340,249	)		(338,278	)
Other		(9,102	)		(37,573	)		(45,911	)		(23,364	)		(46,715	)

Net financial income		3,432,939			3,063,776			3,252,260			2,836,361			3,342,802

Provision for loan losses		(356,386	)		(323,969	)		(331,013	)		(226,335	)		(336,129	)
Income from services, net of other operating expenses		1,191,061			1,234,102			1,076,422			1,300,901			1,014,393
Administrative expenses		(3,027,058	)		(2,897,619	)		(2,860,570	)		(2,373,439	)		(2,211,679	)
Income (loss) from equity investments		155,131			19,491			17,083			20,132			102,183
Net Other income		(1,168,459	)		855,111			(141,517	)		(4,163	)		(27,480	)
Income (loss) from minority interest		(29,601	)		(27,853	)		(13,547	)		(24,753	)		(34,113	)

Income before tax		197,627			1,923,039			999,118			1,528,704			1,849,977

Income tax		(480,622	)		(317,269	)		(416,713	)		(595,779	)		(886,719	)

Net income		(282,995	)		1,605,770			582,405			932,925			963,258

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


	06-30-17			03-31-17			12-31-16			09-30-16			06-30-16
Cash and due from banks		37,048,209			41,149,363			48,226,107			30,296,084			26,524,319
Government Securities		25,780,524			24,238,431			12,738,809			13,166,151			21,319,864
Loans		89,518,146			82,911,605			78,889,921			71,196,602			65,929,973
Other Banking Receivables		9,771,087			26,190,719			2,427,906			7,891,047			9,660,033
Assets Subject to Financial Leasing		2,177,021			2,088,865			2,046,971			2,110,038			2,247,058
Investments in other companies		509,594			535,221			507,625			493,463			465,736
Other assets		7,643,197			7,250,043			6,915,372			5,779,511			5,442,251

Total Assets		172,447,778			184,364,247			151,752,711			130,932,896			131,589,234

Deposits		125,674,032			122,822,030			114,621,753			91,904,217			92,827,261
Other banking liabilities		21,152,694			37,891,313			13,785,682			17,135,935			17,440,527
Minority interest		568,437			539,151			620,141			388,147			317,712
Other liabilities		8,180,805			5,956,948			6,265,100			5,626,967			6,059,029

Total Liabilities		155,575,968			167,209,442			135,292,676			115,055,266			116,644,529

Total Stockholders’ Equity		16,871,810			17,154,805			16,460,035			15,877,630			14,944,705

Stockholders’ Equity + Liabilities		172,447,778			184,364,247			151,752,711			130,932,896			131,589,234


Net Income

	06-30-17			03-31-17			12-31-16			09-30-16			06-30-16
Net Financial Income		3,433,241			3,066,449			3,253,700			2,838,936			3,347,768
Provision for loan losses		(356,386	)		(323,969	)		(331,013	)		(226,335	)		(336,129	)
Net Income from Services		1,191,061			1,234,102			1,076,422			1,300,901			1,014,393
Administrative expenses		(3,029,516	)		(2,899,037	)		(2,856,270	)		(2,379,655	)		(2,220,410	)
Net Other Income		(1,011,209	)		874,626			(132,186	)		18,012			77,506

Income Before Tax		227,191			1,952,171			1,010,653			1,551,859			1,883,128

Income Tax		(480,689	)		(317,392	)		(416,849	)		(595,909	)		(886,809	)

Net income		(253,498	)		1,634,779			593,804			955,950			996,319

Minoritary Interest		(29,497	)		(29,009	)		(11,399	)		(23,025	)		(33,061	)

Net income for Quarter		(282,995	)		1,605,770			582,405			932,925			963,258

- 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: August 10, 2017	By:	/s/ Ignacio Sanz y Arcelus
		Name:	Ignacio Sanz y Arcelus
		Title:	Chief Financial Officer