Report of Foreign Issuer (6-k)

BFR Bbva Banco Frances S.A.

Latest BFR Messages

Bbva Banco Frances Sa News

Your Recent History

Loading Messages....

Loading Messages....

Boards:

Quotes:

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Boards

News

Market Data

Markets

Discover

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 August 2019

Commission File Number: 001-12568

BBVA French Bank S.A.

(Translation of registrant’s name into English)

111 Córdoba Av, C1054AAA

Buenos Aires, Argentina

(Address of principal executive offices)

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

Form 20-F ☒ Form 40-F ☐

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

Yes ☐ No ☒

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

Yes ☐ No ☒

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

Yes ☐ No ☒

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

BBVA Banco Francés S.A.

TABLE OF CONTENTS


Item

1.		BBVA Argentina reports consolidated second quarter earnings for fiscal year 2019.

LOGO

BBVA Banco Frances S.A. announces results for

the second quarter of 2019

Buenos Aires, August 12, 2019 - BBVA Banco Francés S.A (NYSE; BYMA; MAE: BBAR; LATIBEX: XBBAR) (“ BBVA Argentina” or “ BBVA” or “ the Bank ”) announced today its results for the second quarter ended June 30, 2019

Highlights

•

BBVA Argentina’s net income reached AR$ 6.8 billion for the second quarter of 2019, a 16.9% increase compared to the previous quarter. Net income during the first quarter 2019 included the impact of the sale of 51% of the Bank’s stake in Prisma Medios de Pago S.A. (“Prisma”) and the market valuation of the remaining 49%, excluding such impact the growth in the quarter would have been 74.1%.

•

During the second quarter of 2019, BBVA reached an average return on assets (ROA) of 7% and an average return on equity (ROE) of 58.4%.

•

In terms of activity, the private sector loan portfolio totaled AR$ 186.6 billion, remaining at a similar level compare to the previous quarter while increasing 15.1% in the last twelve months. Including the VW Financial Services portfolio growth would have reached 1.1% and 19.9%, respectively. The consolidated market share with related companies was 8.5% as of June 30, 2019, earning 27 basis points (bp) compared to the June 2018 quota.

•

As of June 30, 2019, the asset quality ratio (Non-Performing Loans/Total loans) reached 2.66%, with a coverage ratio of 112.87% (Total allowances/NPL). It is important to note that although asset quality indicators show some deterioration, they remain within the lowest levels in the financial system.

•

Total deposits grew at a faster pace than loans, both during the quarter and annually, increasing 2.3% and 47.9%, respectively.

•

The efficiency ratio for the second quarter of 2019 was 34.2%, showing an improvement of 268 bp during the quarter and of 1,582 compared to the ratio of the same period of 2018.

•

As of June 30, 2019, BBVA had a total consolidated capital ratio of 16.7%, which represents an excess of AR$ 24.2 billion or 103.6% over the minimum required. The Tier I ratio reached 16%. Liquid assets accounted for 60.7% of the Bank’s deposits.

LOGO

Presentation of the information

This earnings release has been prepared in accordance with the accounting framework established by the Central Bank of Argentina (“BCRA”), based on International Financial Reporting Standards (“I.F.R.S.”) and the resolutions adopted by the International Accounting Standards Board (“I.A.S.B”) and by the Federación Argentina de Consejos Profesionales de Ciencias Económicas (“F.A.C.P.E.”) with the temporary exception of (i) Expected losses of IFRS 9 “Financial Instruments”, which will be applicable for the fiscal year beginning on or after January 1st, 2020 (ii) IAS 29 “Financial Reporting in Hyperinflationary Economies”, which will be applicable for the fiscal year beginning on or after January 1st, 2020, (iii) the recording of a contingency provision relating to the uncertainty of certain tax positions required by the BCRA, and (iv) the valuation adjustment established by the BCRA applied to the valuation of the remaining stake maintained by the Bank in Prisma. Data and figures shown in this Earnings Release may differ from the ones shown in the Bank’s annual report on Form 20-F.

The information in this press release contains unaudited financial information that consolidates, line item by line item, all of the banking activities of BBVA Francés (Francés Valores, Francés Asset Management and Consolidar AFJP). As of the first quarter of 2018, the Bank’s share interest in PSA Finance is no longer disclosed on a consolidated basis but is recorded as Investments in associates (recorded under the proportional equity method), and the corresponding results are recorded as “Income from associates”, as with Rombo Compañia Financiera. As of September 25, 2018, the Bank’s share interest in Volkswagen Financial Services is no longer disclosed on a consolidated basis.

All the figures in this press release are expressed in pesos (AR$). The balances in foreign currency as of June 30, 2019 were converted into pesos at the reference exchange rate published by the BCRA for such date (AR$ 42.4483/USD).

The information published by the BBVA Group for Argentina is prepared according to IFRS, non- considering the temporary exceptions established by BCRA

- 2 -

LOGO

Quarterly Results


Condensed Income Statement (1)	Quarter ended									D % Quarter ended 6/30/19 vs Quarter ended
In thousands of pesos except EPS, ADS	06/30/19			03/31/19			06/30/18			03/31/19			06/30/18
Net interest income		13,036,118			9,751,251			5,970,921			33.7	%		118.3	%
Net fee income		1,943,656			1,494,815			919,141			30.0	%		111.5	%
Net income of financial instruments		2,115,028			2,464,277			(647,534	)		(14.2	%)		(426.6	%)
Result from assets at amortised cost		(36,380	)		(4,183	)		(68,298	)		769.7	%		(46.7	%)
Foreign exchange difference		1,321,560			1,174,542			2,009,608			12.5	%		(34.2	%)
Other operating income		4,389,805			3,390,923			622,728			29.5	%		604.9	%
Provision for loan losses		(1,864,924	)		(2,358,139	)		(804,248	)		(20.9	%)		131.9	%
Net operating income		20,904,863			15,913,486			8,002,318			31.4	%		161.2	%
Personnel expenses		(3,242,029	)		(2,712,587	)		(1,929,968	)		19.5	%		68.0	%
Administrative expenses		(2,421,106	)		(2,044,423	)		(1,646,632	)		18.4	%		47.0	%
Depreciation and amortization of assets		(393,926	)		(358,361	)		(207,860	)		9.9	%		89.5	%
Other operating expenses		(6,074,392	)		(2,538,043	)		(1,428,480	)		139.3	%		325.2	%
Operating Expenses		(12,131,453	)		(7,653,414	)		(5,212,940	)		58.5	%		132.7	%
Operating income		8,773,410			8,260,072			2,789,378			6.2	%		214.5	%
Income from associates and joint ventures		312,483			117,003			230,867			167.1	%		35.4	%
Net income before income tax		9,085,893			8,377,075			3,020,245			8.5	%		200.8	%
Income tax from continuing operations		(2,305,571	)		(2,366,004	)		(866,387	)		(2.6	%)		166.1	%
Net income including non-controlling shareholders		6,780,322			6,011,071			2,153,858			12.8	%		214.8	%
Net income attributable to non-controlling shareholders		199			3,452			29,938			(94.2	%)		(99.3	%)
Net income		6,780,123			6,007,619			2,123,920			12.9	%		219.2	%
Other comprehensive income		27,259			(184,020	)		68,085			(114.8	%)		(60.0	%)
Total net income		6,807,382			5,823,599			2,192,005			16.9	%		210.6	%
Earnings per share (2)		11.1			9.8			3.5			12.9	%		219.2	%
Earnings per ADS (3)		33.2			29.4			10.4			12.9	%		219.2	%

(1)	Exchange Rate: $ 43.3533 = u$s 1

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

(3)	Each ADS represents three ordinary shares

BBVA’s net income amounted to AR$ 6.8 billion as of June 30, 2019, growing 12.9% compared to the previous quarter and 219.2% compared to the previous quarter of 2018.

It is important to mention that the first quarter of 2019 included both the result of the sale of Prisma and the market valuation of the remaining stake. Excluding such impact growth in the quarter would have been 74.1%

Accumulated net income for the first six months of the year reached AR$ 12.8 billion, representing ROE of 59.1% and ROA of 6.9%. Excluding Prisma’s impact these ratios would have reached 5.7% and 50.3%, respectively.

- 3 -

LOGO


Main Figures	Quarter ended									D bp Quarter ended 06/30/2019 vs quarter ended
	06/30/19			03/31/19			06/30/18			03/31/19			06/30/18
ROA (Average Assets) (1)		7.0	%		6.6	%		3.5	%		40			351
Accumulated ROA		6.9	%					3.1	%					382
ROE (Average Shareholders’ Equity) (1)		58.4	%		58.8	%		26.4	%		(37	)		3,198
Accumulated ROE		59.1	%					23.5	%					3,555
NIM (1)(2)		20.0	%		18.2	%		11.2	%		178			872
NIM with foreign exchange difference (1)(2)		23.1	%		20.3	%		14.7	%		278			844
Efficiency ratio (3)		34.2	%		36.9	%		50.0	%		(268	)		(1,582	)
Accumulated Efficiency ratio		35.4	%					47.5	%					(1,209	)

(1)	Annualized.

(2)	NIM: ((Net interest income + Gross income tax NII+ Cost of deposits insurance) + (Net income of financial instruments + Results from assets at amortised cost—Non deliverable forward )) / Interest Earning Assets

(3)

(Personnel and administrative expenses + Depreciations and amortizations) / ((Net interest income + Gross Income Tax + Cost of the deposits insurance) + (Fee income + Net income of financial instruments + Results from assets at amortised cost + FX Difference + Fees included in other operating income))

Net operating income


Net Operating Income	Quarter ended									D % Quarter ended 6/30/19 vs Quarter ended
In thousands of pesos	06/30/19			03/31/19			06/30/18			03/31/19			06/30/18
Net interest income		13,036,118			9,751,251			5,970,921			33.7	%		118.3	%
Net fee income		1,943,656			1,494,815			919,141			30.0	%		111.5	%
Net income of financial instruments		2,115,028			2,464,277			(647,534	)		(14.2	%)		(426.6	%)
Result from assets at amortised cost		(36,380	)		(4,183	)		(68,298	)		769.7	%		(46.7	%)
Foreign exchange difference		1,321,560			1,174,542			2,009,608			12.5	%		(34.2	%)
Other operating income		4,389,805			3,390,923			622,728			29.5	%		604.9	%
Provision for loan losses		(1,864,924	)		(2,358,139	)		(804,248	)		(20.9	%)		131.9	%
Net operating income		20,904,863			15,913,486			8,002,318			31.4	%		161.2	%

Net operating income amounted to AR$ 20.9 billion, including AR$ 3.2 billion accounted for as Other operating income, which is related to the results from the application of the inflation adjustment to the 2018 income tax calculation. At the same time a provision for the same amount is accounted for in Other operative expenses line item.

In addition, as was mention, the first quarter of 2019 includes the impact of the sale and the market valuation of Prisma, excluding both impacts, net operating income should grew 62.2% during the quarter and 161.2% compared with the same period of 2018.

During the third quarter of 2018 a reclassification was performed due to the change in criteria regarding the deferral of credit card emission fees, which were previously recorded as Net interest income and are now recorded as Net fee income and other operating income.

Moreover, since the first quarter of 2018, insurance fees previously recorded in other operative income are now recorded as Net fee income.

- 4 -

LOGO

•

Net interest income


Net Interest Income	Quarter ended									D % Quarter ended 06/30/19 vs Quarter ended
(in thousands of pesos)	06/30/19			03/31/19			06/30/18			03/31/19			06/30/18
Interest Income		23,018,132			18,375,643			9,478,091			25.3	%		142.9	%
Loan interest income		11,354,948			11,030,023			7,355,382			2.9	%		54.4	%
Income from adjustments (CER/ UVA)		2,275,214			1,585,079			513,337			43.5	%		343.2	%
Income from Public Securities		8,505,653			4,725,693			1,187,403			80.0	%		616.3	%
Others		882,317			1,034,848			421,969			(14.7	%)		109.1	%
Interest Expenses		(9,982,014	)		(8,624,392	)		(3,507,170	)		15.7	%		184.6	%
Interest Expenses		(9,551,464	)		(8,328,960	)		(3,250,544	)		14.7	%		193.8	%
Expenses from adjustments (CER/ UVA)		(430,550	)		(295,432	)		(256,626	)		45.7	%		67.8	%
Net Income Interest		13,036,118			9,751,251			5,970,921			33.7	%		118.3	%

Net interest income increase by 33.7% compared to the previous quarter and 118.3% compared to the second quarter of 2018.

Compared to the first quarter of 2019, interest income increased by 25.3% whereas interest expenses grew at a slower pace, 15.7% quarter over quarter.

Net interest income continue continued to register a positive performance. During the quarter, average interest rate increased for both, loans and public bonds. At the same time, the efficient management of prices put in place by BBVA attenuated the increase of liability interest rates.

NIM


Interest-Earning Assets & Interest-Bearing Liabilities $ +	06/30/19						Quarter ended 03/31/19						06/30/18
(Average in thousands of pesos)	Capital			Rate			Capital			Rate			Capital			Rate
Interest-Earning Assets		263,862,749			35.9	%		242,964,225			31.2	%		175,925,115			26.5	%
Interest-Bearing Liabilities		233,844,452			17.1	%		214,652,486			16.2	%		138,721,270			15.3	%
NIM without foreign exchange differences		20.0	%					18.2	%					11.2	%
NIM including foreign exchange differences		23.1	%					20.3	%					14.7	%
NIM $ without foreign exchange differences		27.6	%					24.4	%					14.7	%
NIM USD without foreign exchange differences		4.5	%					5.7	%					3.6	%

The net interest margin (NIM) including the results for foreign currency exchange differences amounted to 23.1%, increasing 280 basis point (bp) compared to the previous quarter, which included the impact of Prisma. Excluding that impact NIM would have reached 17.7%, so the variation would have been 535 bp.

The ratio net of foreign exchange difference also registered an increase, from 18.2% to 20%.

The NIM in local currency (excluding FX differences) amounted to 27.6%. The increase in the ratio in pesos reflected higher asset interest rates, added to the efficient management of liability rates

The NIM in foreign currency registered a decrease of 113 bp, from 5.7% to 4.5%, mainly due to lower rates of public securities.

- 5 -

LOGO


Interest-Earning Assets & Interest-Bearing Liabilities $	06/30/19					Quarter ended 03/31/19					06/30/18
(Average in thousands of pesos)	Capital		Rate			Capital		Rate			Capital		Rate
Interest-Earning Assets		176,149,210		51.2	%		162,369,052		43.9	%		125,671,511		35.3	%
Public sector instruments		57,827,444		64.3	%		44,712,518		49.6	%		16,097,421		33.3	%
Loans		117,806,541		44.7	%		116,879,331		41.8	%		108,949,580		27.6	%
Other interest-earning assets		515,226		53.6	%		777,204		46.1	%		624,511		29.3	%
Interest-Bearing Liabilities		115,855,523		34.1	%		111,221,798		31.0	%		87,973,460		24.0	%
Saving Accounts		30,133,170		0.2	%		29,334,491		0.2	%		25,837,725		0.2	%
Time Deposits		72,629,412		45.8	%		69,547,645		42.3	%		44,114,943		24.4	%
Current accounts with interest		7,264,622		43.8	%		7,350,478		36.2	%		13,185,778		28.2	%
Corporate Bonds Issued		4,079,504		53.9	%		3,007,409		46.2	%		1,772,129		30.2	%
Other interest-bearing liabilities		1,748,816		44.1	%		1,981,775		47.3	%		3,062,885		29.2	%

Interest-Earning Assets & Interest-Bearing Liabilities USD	06/30/19					Quarter ended 03/31/19					06/30/18
(Average in thousands of pesos)	Capital		Rate			Capital		Rate			Capital		Rate
Interest-Earning Assets		87,713,539		5.3	%		80,595,172		5.6	%		50,253,604		4.4	%
Public sector instruments		14,739,938		7.5	%		15,510,718		8.8	%		10,489,064		5.3	%
Loans		70,105,466		5.0	%		62,771,546		5.0	%		38,466,819		4.3	%
Other interest-earning assets		2,868,135		1.5	%		2,312,908		1.7	%		1,297,721		1.1	%
Interest-Bearing Liabilities		117,988,929		0.4	%		103,430,688		0.4	%		58,262,678		0.2	%
Saving Accounts		91,810,301		0.0	%		80,600,054		0.0	%		46,406,985		0.0	%
Time Deposits		17,823,578		0.6	%		17,334,943		0.6	%		9,831,850		0.5	%
Current accounts with interest		3,062,139		0.0	%		401,194		0.0	%		132,734		0.0	%
Other interest-bearing liabilities		5,292,911		5.8	%		5,094,497		5.5	%		1,891,108		3.7	%

•

Net fee income


Net Fee Income				Quarter ended						D % Quarter ended 06/30/19 vs quarter ended
(in thousands of pesos)	06/30/19			03/31/19			06/30/18			03/31/19			06/30/18
Net fee income		1,943,656			1,494,815			1,744,892			30.0	%		11.4	%
Fee income		4,366,538			3,814,183			3,267,056			14.5	%		33.7	%
Fee charges on deposits accounts		1,290,913			1,109,927			886,958			16.3	%		45.5	%
Credit cards and operations		1,493,053			1,250,022			1,769,710			19.4	%		(15.6	%)
Checks		458,230			326,004			221,466			40.6	%		106.9	%
Capital markets and securities activities		48,591			51,074			27,307			(4.9	%)		77.9	%
Fees related to foreign trade		202,121			181,020			108,711			11.7	%		85.9	%
Services of collection		503,600			521,129			317,097			(3.4	%)		58.8	%
Generated by subsidiaries		95,632			97,114			111,828			(1.5	%)		(14.5	%)
Other fees		274,398			277,894			(176,022	)		(1.3	%)		(255.9	%)
Fee Expenses		(2,422,882	)		(2,319,368	)		(1,522,164	)		4.5	%		59.2	%

Net fee income grew 30% compared to the previous quarter and 11.4% compared to the second quarter of 2018, partly as a result of the accounting reclassification due to the change in criteria regarding the deferral of credit card emission fees implemented during the third quarter of 2018.

In addition, during the first quarter of 2019, insurance fees were reclassified, from other operative income to other fees.

Fee income increased by 14.5% compared to the previous quarter, mainly due to higher fees for credit cards and ATMs, which includes recurrent annual income, realized during the quarter, due higher fees on deposits accounts, which were partially offset by lower fees for collection and transfer services. In comparison with the second quarter of 2018, fee income grew 33.7%

BBVA, once again gained credit card consumption market share, 118 bp in the first six months of the year, reaching 15.2% of the market.

Fee expenses grew at a slower pace of 4.5% during the quarter and 59.2% compared to the second quarter of 2018, mainly due to fee expenses related to the loyalty program and campaigns to acquire new clients which were partially offset by lower credit card processing charges.

- 6 -

LOGO

In the new disclosure format applied beginning with the first quarter of 2018, certain fee items are accounted for in other operating income.

•

Net income from measurement of financial instruments at fair value through profit or loss


Net income from measurement of financial instruments				Quarter ended						D % Quarter ended 03/31/19 vs Quarter ended
at fail value through profit or loss (in thousands of pesos)	06/30/19			03/31/19			06/30/18			03/31/19			06/30/18
Net income of financial instruments at fail value		2,115,028			2,464,277			(647,534	)		(14.2	%)		(426.6	%)
Income from public securities		763,084			864,288			269,260			(11.7	%)		183.4	%
Income from private securities		795,689			1,591,884			9,512			(50.0	%)		8,265.1	%
Income from interest rate swaps		(207,759	)		(126,485	)		(433,324	)		64.3	%		(52.1	%)
Non deliverable forward		751,443			112,613			(502,779	)		567.3	%		(249.5	%)
Income from corporate bonds		12,571			21,977			9,797			(42.8	%)		28.3	%

Net income from measurement of financial instruments at fair value recorded a gain of AR$ 2.1 million in the second quarter of 2019. It is important to mention that the previous quarter included the market valuation of the 49% stake in Prisma for a total amount or AR$ 1.6 billion.

The income for the quarter was based on higher income from private securities, which included the dividend received for the Bank’s stake in Prisma for AR$ 716 million and higher results originated by foreign currency forward transactions by AR$ 795.7, which is partially offset by the loss originated by the devaluation of the peso over the foreign currency position of the Bank by AR$ 322.1, reflected in the following chart.

Additionally, lower gains arising from the public securities portfolio and a loss registered in connection with interest rate swaps were accounted.

•

Foreign exchange difference


Foreign Exchange Difference				Quarter ended					D % Quarter ended 06/30/19 vs Quarter ended
(in thousands of pesos)	06/30/19			03/31/19			06/30/18		03/31/19			06/30/18
Foreign Exchange Difference		1,321,560			1,174,542			2,009,608		12.5	%		(34.2	%)
FX trading		1,643,710			1,345,238			964,124		22.2	%		70.5	%
long/Short FX net balance		(322,150	)		(170,696	)		1,045,484		88.7	%		(130.8	%)

Foreign exchange difference registered the gain generated by foreign currency buying and selling activity, whereas the result by foreign currency position is explained in the previous paragraph.

- 7 -

LOGO

•

Other operating income


Other Operating Income			Quarter ended					D % Quarter ended 06/30/19 vs Quarter ended
(in thousands of pesos)	06/30/19		03/31/19		06/30/18			03/31/19			06/30/18
Operating Income		4,389,805		3,390,923		622,728			29.5	%		604.9	%
Safe deposits		143,324		122,349		111,029			17.1	%		29.1	%
Insurance		—		—		(818	)		—			—
Fees on USD credit cards consumption		290,950		1,939		106,806			n/a			n/a
Interest on loans and fees related		317,685		239,738		118,979			32.5	%		167.0	%
Other fees		129,279		97,269		71,782			32.9	%		80.1	%
Total other fees		881,238		461,295		407,778			91.0	%		116.1	%
Prisma Sale		—		2,695,720		—			—			—
Other operating income		3,508,567		233,908		214,950			1,400.0	%		1,532.3	%

Other operating income totaled AR$ 4.4 billion during the second quarter of 2019, growing 29.5% compared to the previous quarter.

During the quarter, it was registered in other operating income an adjustment as consequence of calculating the income tax for the 2018 fiscal year considering the effects of inflation, which are provisioned by the same amount in Other operating expense”.

Operating Expenses


Operating Expenses				Quarter ended						D % Quarter ended 6/30/19 vs Quarter ended
In thousands of pesos	06/30/19			03/31/19			06/30/18			03/31/19			06/30/18
Personnel expenses		(3,242,029	)		(2,712,587	)		(1,929,968	)		19.5	%		68.0	%
Administrative expenses		(2,421,106	)		(2,044,423	)		(1,646,632	)		18.4	%		47.0	%
Depreciation and amortization of assets		(393,926	)		(358,361	)		(207,860	)		9.9	%		89.5	%
Other operating expenses		(6,074,392	)		(2,538,043	)		(1,428,480	)		139.3	%		325.2	%
Operating Expenses		(12,131,453	)		(7,653,414	)		(5,212,940	)		58.5	%		132.7	%

(1)	Exchange Rate: $ 43.3533 = u$s 1

Operating expenses totaled AR$ 12.1 billion, this result includes the above-mentioned provision.

•

Personnel expenses and Administrative expenses


Administrative and Personnel Expenses										D % Quarter ended 06/30/19 vs quarter ended
(in thousands of pesos)	30/06/19			03/31/19			06/30/18			03/31/19			06/30/18
Personnel expenses		(3,242,029	)		(2,712,587	)		(1,929,968	)		19.5	%		68.0	%
Administrative expenses		(2,421,106	)		(2,044,423	)		(1,646,632	)		18.4	%		47.0	%
Electricity and Communications		(133,341	)		(110,161	)		(68,331	)		21.0	%		95.1	%
Advertising and Promotion		(109,829	)		(121,581	)		(124,392	)		(9.7	%)		(11.7	%)
Fees and external administrative services		(154,309	)		(92,737	)		(76,380	)		66.4	%		102.0	%
Taxes		(635,447	)		(559,847	)		(349,683	)		13.5	%		81.7	%
Rents		(160,293	)		(170,833	)		(165,446	)		(6.2	%)		(3.1	%)
Maintainance, conservation and repairs		(256,237	)		(278,866	)		(175,265	)		(8.1	%)		46.2	%
Security Service		(87,495	)		(85,565	)		(66,631	)		2.3	%		31.3	%
Carriage of valuables		(328,363	)		(165,578	)		(237,258	)		98.3	%		38.4	%
Other		(555,792	)		(459,255	)		(383,246	)		21.0	%		45.0	%
Total Employees		6,242			6,153			6,084			89			158
Total Branches		252			252			251			0			—

- 8 -

LOGO

Personnel expenses increased by 19.5% compared to the previous quarter and 68% compared to the second quarter of 2018, whereas administrative expenses grew 18.4% and 47% in the same periods, respectively.

The increase in personnel expenses is mainly due to the update in salaries arising from the agreements signed with the labor union and its compensation schemes.

Administrative expenses increased 18.4% during the quarter and 47% compared to the second quarter of 2018. This quarterly and inter-annual increases are mainly explained by higher charges in carriage of valuables due to both, an increase in the amounts transported and the increase in prices, by higher taxes, as a result of higher activity levels and inflation and by higher charges for fees and external administrative services.

Efficiency ratio for the quarter reached 34.2%, registering an improvement compared to the ratios of the previous quarter and the second quarter of 2018 (36.9% and 50%, respectively).

•

Other operating expenses


Other Operating Expenses				Quarter ended						D % Quarter ended 06/30/19 vs Quarter ended
(in thousands of pesos)	06/30/19			03/31/19			06/30/18			03/31/19			06/30/18
Operating expenses		(6,074,392	)		(2,538,043	)		(1,428,480	)		139.3	%		325.2	%
Gross income tax		(1,440,775	)		(1,372,502	)		(957,432	)		5.0	%		50.5	%
Gross income tax NII		(1,103,900	)		(1,090,700	)		(753,360	)		1.2	%		46.5	%
Gross income tax fees		(336,875	)		(281,802	)		(204,072	)		19.5	%		65.1	%
Cost of deposits insurence		(122,690	)		(109,667	)		(71,851	)		11.9	%		70.8	%
Other operating expenses		(4,510,927	)		(1,055,874	)		(399,197	)		327.2	%		1,030.0	%

Other operating expenses mainly reflected an increase in gross income tax, due to the income in net interest income, fees and income from foreign currency exchange difference, during the period. In addition, beginning in the fourth quarter of 2018, the rate differential between the applied rate and the market rate in credit card financing operations has been recorded under Other operating expenses.

Finally, as was above previously mention, during the second quarter of 2019 a provision was created for any contingency which may arise from the decision adopted regarding the Income Tax for the fiscal year 2018.

Income from associates

Income from associates shows the result of non-consolidated companies. During the second quarter of 2019 a gain of AR$ 312.5 million was recorded, mainly due to the equity investment in BBVA Seguros, Volkswagen Financial Services, PSA Finance and Rombo Compañia Financiera.

- 9 -

LOGO

Balance and activity

Loan portfolio


Net Loans				Quarter ended						D % Quarter ended 06/30/19 vs quarter ended
(in thousands of pesos)	06/30/19			03/31/19			06/30/18			03/31/19			06/30/18
Private & Financial sector loans in $		119,311,171			114,404,420			114,137,222			4.3	%		4.5	%
Advances		9,579,380			8,007,919			14,190,618			19.6	%		(32.5	%)
Discounted and purchased notes		15,546,359			15,814,293			17,676,632			(1.7	%)		(12.1	%)
Consumer Mortgages		12,045,949			11,045,297			7,357,341			9.1	%		63.7	%
Car secured loans		1,562,480			1,650,656			5,348,745			(5.3	%)		(70.8	%)
Personal loans		24,412,264			24,421,230			20,666,082			(0.0	%)		18.1	%
Credit cards		45,348,160			42,662,066			33,282,575			6.3	%		36.3	%
Loans to financial sector		7,095,898			6,068,159			6,094,170			16.9	%		16.4	%
Other loans		5,238,392			5,887,122			9,688,354			(11.0	%)		(45.9	%)
Other receivables		3,817,112			3,609,237			3,423,950			5.8	%		11.5	%
Unaccrued interest		(1,212,317	)		(1,234,203	)		(919,522	)		(1.8	%)		31.8	%
Less: Allowance for loan losses		(4,122,506	)		(3,527,356	)		(2,671,723	)		16.9	%		54.3	%
Private & Financial sector loans in FX		67,304,344			70,901,075			47,986,010			(5.1	%)		40.3	%
Advances		10,125			11,327			11,018			(10.6	%)		(8.1	%)
Discounted and purchased notes		4,446,844			7,267,682			5,372,185			(38.8	%)		(17.2	%)
Credit cards		2,789,073			2,923,037			2,007,866			(4.6	%)		38.9	%
Loans to financial sector		552,890			293,892			96,538			88.1	%		472.7	%
Other loans		60,722,826			61,356,511			40,821,518			(1.0	%)		48.8	%
Other receivables		429,203			339,239			186,381			26.5	%		130.3	%
Less: Allowance for loan losses		(1,646,617	)		(1,290,613	)		(509,496	)		27.6	%		223.2	%
Total Private Loans		186,615,515			185,305,495			162,123,232			0.7	%		15.1	%
Total loans to public sector		336			439			78			(23.5	%)		330.8	%
Net Total Loans net of other non resident loans		186,615,851			185,305,934			162,123,310			0.7	%		15.1	%

As of the third quarter of 2018, Volkswagen Financial Services Compañia Financiera is no longer recorded on a consolidated basis. Such figures were recorded under Car secured loans.

The private sector loan portfolio amounted to AR$ 186.6 billion, remaining stable compared to the previous quarter and increasing 15.1% in the last twelve months. Including VW Financial Services, the private sector loan portfolio would have increased 1.1% and 19.9% respectively.

The market share of loans reached 8.51% by the end of June 2019, including loans from associated companies (VW Financial Services, PSA Finance and Rombo Compañia Financiera), showing an increase of 27 bp in the last twelve months.

Argentine peso denominated loans grew 4.3% during the quarter and 4.5% annually (4.7% and 11.3%, respectively, including VW). U.S. dollar denominated loans expressed in AR$ fell by 5.1% during the quarter and increased 40.3% compared to June 30, 2018, mainly due to the re-expression of the new value of the currency, while loans measured in U.S. dollar fell in both periods, by 3% and 4.6%, respectively.

Regarding retail loans, credit card financings grew 5.6% during the quarter and 36.4% annually, while mortgages loans reflected the impact of inflation, personal loans remained stable during the quarter and increased 18.1% in the last twelve months.

- 10 -

LOGO

Commercial loans fell 2.4% compared to the previous quarter mainly due to the decrease in the foreign currency denominated portfolio. Compared to the second quarter of 2018, commercial loans grew 9.2%

Asset quality ratios


Asset Quality Ratios				Quarter ended						D % Quarter ended 06/30/19 vs quarter ended
(in thousands of pesos)	06/30/19			03/31/19			06/30/18			03/31/19			06/30/18
Non-performing loans (1)		5,111,322			4,210,743			1,423,719			21.4	%		259.0	%
Allowance for loan losses		(5,769,123	)		(4,817,969	)		(3,181,219	)		19.7	%		81.3	%
Non-performing loans/net total loans		2.66	%		2.21	%		0.86	%		44			180
Non-performing priv. loans/net priv. loans		2.66	%		2.21	%		0.86	%		44			180
Allowance for loan losses/non-performing loans		112.87	%		114.42	%		223.44	%		(155	)		(11,057	)
Allowance for loan losses/net total loans		3.00	%		2.53	%		1.92	%		46			107

(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 asset quality ratio (non-performing loans/total loans) was 2.66% with a coverage ratio (allowances/non-performing loans) of 112.87% as of June 30, 2019.

The indicators show some deterioration in the loan portfolio, mainly due to specific cases in the commercial portfolio.

The cost of risk reached 2.5% recording an increase of 41bp during the quarter.


Provisions Evolution				Quarter ended						D % Quarter ended 06/30/19 vs quarter ended
(in thousands of pesos)	06/30/19			03/31/19			06/30/18			03/31/19			06/30/18
Balance at the beginning of the quarter		4,817,969			4,258,239			2,548,322			13.1	%		89.1	%
Increase/decrease		1,788,799			1,090,116			801,330			64.1	%		123.2	%
Increase/decrease-Foreign exchange diff.		(46,350	)		164,105			154,646			(128.2	%)		n/a
Aplications /Reversals		(791,295	)		(694,491	)		(323,079	)		13.9	%		144.9	%
Balance at the end of the quarter		5,769,123			4,817,969			3,181,219			19.7	%		81.3	%

Public sector exposure


Public Sector Exposure				Quarter ended						D % Quarter ended 06/30/19 vs quarter ended
(in thousands of pesos)	06/30/19			03/31/19			06/30/18			03/31/19			06/30/18
Bills and Notes from Central Bank		57,005,448			29,726,124			14,291,916			91.8	%		298.9	%
Treasury and national government		24,040,636			24,580,395			14,776,891			(2.2	%)		62.7	%
National Treasury Public Debt $		6,934,349			7,912,149			2,995,774			(12.4	%)		131.5	%
National Treasury Public Debt USD		11,525,130			3,662,256			5,651,068			214.7	%		103.9	%
Treasury Repos USD		5,581,157			13,005,990			6,130,049			(57.1	%)		(9.0	%)
Pesos subtotal		63,939,798			37,638,272			17,287,691			69.9	%		269.9	%
Dollars subtotal		17,106,287			16,668,246			11,781,117			2.6	%		45.2	%
Total Public Sector exposure		81,046,084			54,306,518			29,068,808			49.2	%		178.8	%
% National Government debt /Assets		6.1	%		6.3	%		5.5	%

Total exposure to the public sector amounted to AR$ 81.1 million, increasing 49.2% during the quarter and 178.8% in the last twelve months.

Short-term liquidity was allocated in BCRA instruments, which grew in both periods.

- 11 -

LOGO

National Government Debt, which represents 6.1% of assets decreased by AR$ 539.8 million during the quarter, as a consequence of the partial expiration of the repo with the National Treasury and to the decrease of the debt denominated in AR$, which was partially offset by the purchase of instruments dollar-denominated.

Deposits


Deposits by Currency			Quarter ended				D % Quarter ended 06/30/19 vs quarter ended
(in thousands of pesos)	06/30/19		03/31/19		06/30/18		03/31/19			06/30/18
Deposits $ denominated		149,210,483		145,348,077		110,904,657		2.7	%		34.5	%
Current accounts		34,213,508		29,664,346		24,855,245		15.3	%		37.7	%
Saving accounts		36,506,676		38,433,328		36,941,390		(5.0	%)		(1.2	%)
Time deposits		75,857,067		75,070,308		46,882,744		1.0	%		61.8	%
Peso denominated		72,592,302		71,381,291		43,051,721		1.7	%		68.6	%
CER adjusted time deposits		3,264,765		3,689,017		3,831,023		(11.5	%)		(14.8	%)
Other		2,633,232		2,180,095		2,225,278		20.8	%		18.3	%
Deposits FX denominated		135,991,383		133,358,950		81,952,616		2.0	%		65.9	%
Current accounts		108,185		130,130		189,557		(16.9	%)		(42.9	%)
Saving accounts		116,754,041		111,988,699		67,231,437		4.3	%		73.7	%
Time deposits		16,967,487		18,832,038		12,172,428		(9.9	%)		39.4	%
Other		2,161,670		2,408,083		2,359,194		(10.2	%)		(8.4	%)
Total deposits		285,201,866		278,707,027		192,857,273		2.3	%		47.9	%

Total deposits amounted to AR$ 285.2 billion as of June 30, 201, increasing 2.3% and 47.9% compared to the previous quarter and the second quarter of 2018, respectively.

Deposits in local currency grew by 2.7% and 34.5% compared to the quarters ended as of J 31, 2018 and June 30, 2018, respectively.

Foreign currency denominated deposits expressed in pesos grew 2% during the quarter and 65.9% in the last twelve months. Measured in the currency of origin, they increased 4.1% and 12.8%, in the same periods, respectively.

Other sources of funds


Other Souces of Funds			Quarter ended				D % Quarter ended 06/30/19 vs quarter ended
(in thousands of pesos)	06/30/19		03/31/19		06/30/18		03/31/19			06/30/18
Lines from other banks		3,291,860		5,999,754		5,732,921		(45.1	%)		(42.6	%)
Senior Bonds		4,329,078		4,228,208		1,751,596		2.4	%		147.2	%
Total other funding sources		7,620,938		10,227,962		7,484,517		(25.5	%)		1.8	%

Lines from other Banks corresponds mainly to funds to finance foreign trade operations, which registered a decrease compared to the previous quarter and to the second quarter of 2018 (45.1% and 42.6%, respectively).

- 12 -

LOGO

Capitalization


Capitalization				Quarter ended					D % Quarter ended 06/30/19 vs quarter ended
(in thousands of pesos)	06/30/19			03/31/19			06/30/18		03/31/19			06/30/18
Capital Stock		612,660			612,660			612,660		—			—
Issuance premiums		6,735,977			6,735,977			6,735,977		—			—
Adjustments to stockholders equity		312,979			312,979			312,979		—			—
Subtotal		7,661,616			7,661,616			7,661,616		—			—
Reserves on Profits		28,488,024			17,424,932			17,424,932		63.5	%		63.5	%
Unrealized valuation difference		12,787,742			19,477,711			7,744,300		(34.3	%)		65.1	%
Otros resultados integrables acumulados		(161,736	)		(188,995	)		30,841		(14.4	%)		(624.4	%)
Partcipación de terceros		33,763			33,564			553,873		0.6	%		(93.9	%)
Total stockholders´ equity		48,809,409			44,408,828			33,415,562		9.9	%		46.1	%

The Shareholders’ Meeting held on April 24, 2019 approved the treatment of the non-classified results as of December 31, 2018, allocating a total of AR$ 7.2 billion to both legal and voluntary reserves and to the payment cash dividends of AR$ 2.4 billion. These dividends were paid on May 16, 2019.

Solvency


Central Bank Requirements				Quarter ended						D % Quarter ended 06/30/19 vs quarter ended
(in thousands of pesos)	06/30/19			03/31/19			06/30/18			03/31/19			06/30/18
CB Minimum Capital Requirements		23,390,545			23,241,773			19,213,740			0.6	%		21.7	%
Allocated to Asset at Risk		18,398,338			18,903,979			16,092,833			(2.7	%)		14.3	%
Market Risk		174,965			234,278			154,790			(25.3	%)		13.0	%
Operational Risk		4,817,242			4,103,516			2,966,117			17.4	%		62.4	%
Bank Capital		47,627,629			43,365,989			34,217,408			9.8	%		39.2	%
Ordinary Capital Level 1 (* )		49,418,410			45,024,464			33,516,442			9.8	%		47.4	%
Dedusctions Ordinary Capital Level 1		(3,776,760	)		(3,649,725	)		(2,165,117	)		3.5	%		74.4	%
Capital Level 2		1,985,979			1,991,250			1,959,093			(0.3	%)		1.4	%
Aditional Capital Level 1		—			—			906,990			—			(100.0	%)
Excess over Required Capital		24,237,084			20,124,216			15,003,668			20.4	%		61.5	%
Excess as % of the capital required		103.6	%		86.6	%		78.1	%		19.7	%		32.7	%
Risk weighted assets		285,683,388			283,639,646			234,312,709			0.7	%		21.9	%
*Capital Ratio (Central Bank rules) () ()		16.7	%		15.3	%		14.6	%		9.0	%		14.2	%
TIER I ()*		16.0	%		14.6	%		13.8	%		9.5	%		16.0	%

(*)	Bank capital /Risk weighted assets

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

(***)

Ordinary capital level 1 /Risk weighted assets

BBVA continues to show adequate solvency ratios. As of June 30, 2019 the capital ratio reached 16.7%. The Tier 1 ratio was 16% and the excess over required capital was AR$ 24.2 million.

- 13 -

LOGO

Liquidity


				Quarter ended						D bps Quarter ended 06/30/19 vs quarter ended
(in thousands of pesos except percentages)	06/30/19			03/31/19			06/30/18			03/31/19			06/30/18
Liquid Assets to Total Deposits (1)		60.7	%		60.3	%		42.6	%		4.6			181.3
Loans to Total Assets		47.5	%		47.8	%		60.4	%		(0.0	)		(0.1	)

(1)	“Liquid assets” include “Cash & due from banks”, “Liquidity requirements” and “Central Bank Bills & Notes”

Liquid assets represented 60.7% of total Bank’s deposits as of June 30, 2019.

Additional information


				Quarter ended						D % Quarter ended 06/30/19 vs quarter ended
	06/30/19			03/31/19			06/30/18			03/31/19			06/30/18
Exchange rate $/USD		42.45			43.35			28.86			(2.1	%)		47.1	%
Quarterly CER adjustment		11.9	%		9.3	%		7.4	%		2.6	%		4.5	%

- 14 -

LOGO

Other events

•

On April 24, 2019 the Shareholders’ Meeting approved the merger by absorption of BBVA Francés Valores S.A, by BBVA Francés S.A. with the objective of optimizing operating costs by unifying resources and processes.

•

Additionally, on April 24, 2019 the Shareholders’ Meeting also approved the payment of dividends in cash for a total amount of AR$ 2,407 million, representing a payout ratio of 25%. The payment of such dividends was made effective on May 16, 2019.

•

On May 13, 2019, BBVA decided to file its income tax affidavit and paid the corresponding tax to the Internal Revenue Service for the 2018 fiscal year, taking into account inflation adjustment proceedings. The Bank also filed a declarative judgment requesting the unconstitutionality the above mentioned rules, because of the confiscatory effect of the particular case. In addition, BBVA established a provision for any contingency which may arise from the decision regarding fiscal year 2018 income tax.

•

On June 10, 2019, the BBVA group globally adopted a single unique brand, BBVA; as well as a logo more in line with the digital world. This new identity is a reflection of the values of the BBVA Group, particularly the “ We are a single team ” value, which emphasizes the importance of the people who working in the Group, as well as their commitment to the project that is BBVA. In Argentina, BBVA Francés is now BBVA. The corporate name is also changed to Banco BBVA Argentina S.A, which has been approved by the BCRA, and will begin to be used once registered in the Public Registry of Commerce.

•

In line with this new identity, the Bank’s ticker symbol on the NYSE, BYMA and MAE was change to “BBAR” and in Latibex the new ticker symbol is “XBBAR”.

•

On July 22, 2019, the calculation process for determining the final sale price of Prisma Medios de Pago S.A. shares, representing 51% of the capital and votes of said company, was completed. The final price corresponding to the shares transferred by the Bank is USD 76.9 million. The difference between the final price and the estimated price at closing has been deducted from the price balance. The remaining payment terms have not been modified and continue as previously stipulated.

•

On July 29, 2019, the BCRA authorized the appointment of Ms. María Isabel Goiri Lartitegui and Mr. Gabriel Alberto Chaufán as Directors of the Bank.

- 15 -

LOGO

Regulatory changes

•

On April 5, 2019, through its Communication “A” 6667, the BCRA published a regulation allowing users (whether customers or non-customers) to make fixed term deposits in pesos at any bank through digital, web and mobile channels, with a debit to a sight account in pesos in another entity.

•

Further, on April 17, 2019, the BCRA issued Communication “A” 6680, which sets the maximum term for entities to credit the vendor or affiliated merchant account for the amount of each sale paid in a payment through the use of credit cards and / or purchase issued by them, at 10 business days from the date of purchase, and prohibits charging interest or commission for that settlement period.

•

Additionally, on the same date, the BCRA issued Communication “A” 6691 prohibiting the collection of commissions for cash deposits in pesos to accounts whose holders are individuals or legal entities who have the status of micro-, small- and medium-size companies (MiPyMEs).

•

On May 14, 2019, the BCRA, through Communication “A” 6699, extended the maximum limit of the net positive global currency position from 5% to 30% of the regulatory capital (referred to as “Responsabilidad Patrimonial Computable or RPC), or of own liquid assets, whichever is less, provided that the difference is applied in Treasury Bills linked to the US dollar above the position recorded on May 13, 2019.

•

Further, the BCRA, through Communication “A” 6706, redefined, as of June 1, 2019, the structure of minimum cash requirements, establishing a minimum requirement of 45% for sight deposits, integrated 5% in BOTE 2020 bonds, 10% in Leliq and 30% in cash. For time deposits up to 30 days, these percentages are set at 14%, 5% and 13% respectively. These requirements are reduced as the term of the deposits increases, reaching 0% reserve requirement for deposits longer than 90 days. Subsequently, on June 30, 2019 through Communication “A” 6728, the minimum cash requirement rates for time deposits in the different tranches decreases by 3 percentage points for all financial entities. Finally, on July 22, 2019, through Communication “A” 6738, the BCRA established that for time deposits up to 30 days, up to 3 more percentage points may be integrated into Leliq.

•

On June 14, 2019, the BCRA established, through Communication “A” 6715 the possibility of offering UVA loan applicants the option that the amount of the fee does not exceed 10% of the amount that would result from applying to the loan a capital adjustment by the CVS (Coeficiente de variación de salarios), without implying extending the number of installments originally planned.

•

On June 19, 2019, the BCRA, through Communication “A” 6719, modified the minimum cash rules, in order to exclude all obligations with merchants for purchases and/or sales made through the use of credit cards; extending the provisions of Communication “A” 6706 that only excluded payments in installments. Additionally, it established that the minimum cash requirement will be determined with the average daily balances of the obligations of the previous period and the unified calculation of minimum cash for the bonus payment periods (July / August and December / January).

- 16 -

LOGO

Earnings Conference Call


When:		1:30 pm Argentine time, August 12, 2019 – (12:30 pm EST)

Dial-in:
		+ 54-11-3984-5677 (Argentina)
		+ 1-844-450-3851 (USA Toll-free)
		+ 1 412-317-6373 (International)

Conference ID: BBVA

Webcast:		CLICK HERE

Replay:
		+1-877-344-7529 (USA Toll-free)
		+1-412-317-0088 (International)

Replay access code: 10133523

The replay will be available until August 22nd, 2019

About BBVA Argentina

BBVA Argentina (NYSE; BYMA; MAE: BBAR; Latibex: XBBAR) is a subsidiary of the BBVA Group, the principal shareholder since 1996. In Argentina, is one of the leading private financial institutions since 1886. Nationwide, BBVA in Argentina, offers retail and corporate banking, to a broad customer base, including: individuals, SME’s, and large-sized companies.

BBVA Argentina’s purpose, is to bring the age of opportunities to everyone, based on our customers’ real needs, providing the best solutions, and helping them make the best financial decisions, through an easy and convenient experience. The institution rests in solid values: “ Customer comes first, we think big and we are one team” . At the same time, its responsible banking model, aspires to achieve a more inclusive and sustainable society.

Investor relations contact:

investorelations-arg@bbva.com

- 17 -

LOGO

Disclaimer

This press release contains certain forward-looking statements that reflect the current views and/or expectations of Banco BBVA Argentina and its management with respect to its performance, business and future events. We use words such as “believe,” “anticipate,” “plan,” “expect,” “intend,” “target,” “estimate,” “project,” “predict,” “forecast,” “guideline,” “seek,” “future,” “should” and other similar expressions to identify forward-looking statements, but they are not the only way we identify such statements. Such statements are subject to a number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this release. Actual results, performance or events may differ materially from those in such statements due to, without limitation, (i) changes in general economic, financial, business, political, legal, social or other conditions in Argentina or elsewhere in Latin America or changes in either developed or emerging markets, (ii) changes in regional, national and international business and economic conditions, including inflation, (iii) changes in interest rates and the cost of deposits, which may, among other things, affect margins, (iv) unanticipated increases in financing or other costs or the inability to obtain additional debt or equity financing on attractive terms, which may limit our ability to fund existing operations and to finance new activities, (v) changes in government regulation, including tax and banking regulations, (vi) changes in the policies of Argentine authorities, (vii) adverse legal or regulatory disputes or proceedings, (viii) competition in banking and financial services, (ix) changes in the financial condition, creditworthiness or solvency of the customers, debtors or counterparties of Banco BBVA Argentina, (x) increase in the allowances for loan losses, (xi) technological changes or an inability to implement new technologies, (xii) changes in consumer spending and saving habits, (xiii) the ability to implement our business strategy and (xiv) fluctuations in the exchange rate of the Peso. The matters discussed herein may also be affected by risks and uncertainties described from time to time in Banco BBVA Argentina’s filings with the U.S. Securities and Exchange Commission (SEC) and Comision Nacional de Valores (CNV). Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as the date of this document. Banco BBVA Argentina is under no obligation and expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

- 18 -

LOGO

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

BALANCE SHEET (in thousands of pesos)

06/30/19

31/03/19

06-30-18

Cash and due from banks

90,955,170

103,990,452

54,530,632

Debt securities at fair value through other comprehensive income

6,590,932

2,049,715

2,735,529

Derivatives

1,838,020

820,604

104,250

Repurchase agreements

5,924,379

21,425,035

6,367,328

Other financial assets

5,957,221

9,888,314

5,897,674

Loans and other financial intermediation

186,615,851

185,305,934

162,123,310

Loans to the private & financial sector

186,615,515

185,305,495

162,123,232

Advances

9,589,505

8,019,246

14,201,636

Discounted and purchased notes

19,993,203

23,081,975

23,048,817

Secured with mortgages

12,045,949

11,045,297

7,357,341

Car secured loans

1,562,480

1,650,656

5,348,745

Personal loans

24,412,264

24,421,230

20,666,082

Credit cards

48,137,233

45,585,103

35,290,441

Loans to financial sector

7,648,788

6,362,051

6,190,708

Other (*)

65,961,218

67,243,633

50,509,872

Other receivables

4,246,315

3,948,476

3,610,331

Less: Unaccrued interest

(1,212,317

)

(1,234,203

)

(919,522

)

Less: Allowance for loan losses

(5,769,123

)

(4,817,969

)

(3,181,219

)

Public Sector loans

336

439

Other debt securities

69,763,641

40,541,600

18,544,550

Financial assets pledged as collateral

6,352,207

5,278,301

5,155,840

Current income tax assets

385

1,056

Investments in equity instruments

1,914,766

1,893,207

120,978

Investments in associates and joint ventures

2,075,103

1,859,414

1,087,893

Property, plant and equipment

11,866,623

11,609,063

9,136,878

Intangible assets

590,357

542,565

542,054

Deferred income tax asset

526,504

274,386

22,311

Other non financial assets

1,860,690

2,203,245

1,350,209

Non-current assets held for sale

59,776

507,630

Total Assets

392,891,625

387,741,996

268,228,122

Deposits

285,201,866

278,707,027

192,857,273

Current accounts

34,321,693

29,794,476

25,044,802

Saving accounts

153,260,717

150,422,027

104,172,827

Time deposits

92,824,554

93,902,346

59,055,172

Rescheduled deposits CEDROS

1,951

Other deposits

4,792,951

4,586,227

4,582,521

Liabilities at fair value trhough other comprehensive income

1,156,152

1,969,005

143,495

Derivatives

2,288,638

1,611,843

2,277,241

Repurchase agreements

—

936,751

Other financial liabilities

23,067,544

29,306,624

17,727,818

Financing received the BCRA and other financial insitutions

3,291,860

5,999,754

5,732,921

Corporate bonds issued

4,329,078

4,228,208

1,751,596

Current income tax liabilities

4,609,342

5,792,030

1,409,535

Provisions

7,050,001

3,861,057

3,374,177

Other provisions

7,048,350

3,859,458

3,372,628

For eventual compromises

1,651

1,599

1,549

Deferred income tax liabilites

65,175

65,808

343,100

Other non-financial liabilities

13,022,560

11,791,812

8,258,653

Total Liabilities

344,082,216

343,333,168

234,812,560

Total Stockholders´ equity

48,775,646

44,375,264

32,861,689

Equity investments

33,763

33,564

553,873

Total liabilities + stockholders’ equity

392,891,625

387,741,996

268,228,122

- 19 -

LOGO

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

INCOME STATEMENT (in thousands of pesos)


	06/30/19			03/31/19			06/30/18
Interest Income		23,018,132			18,375,643			9,478,091
Interest on loans to the financial sector		599,081			681,141			351,772
Interest on overdraft		1,532,848			1,528,558			1,177,920
Interest on documents		2,053,529			1,990,751			1,090,927
Interest on mortgages loans		281,436			261,244			169,956
Interest on car secured loans		93,852			97,747			337,965
Interest on credit card loans		4,236,048			3,892,306			1,838,495
Interest on financial leases		114,878			122,815			129,239
Interest on personal loans		1,830,440			1,755,947			1,532,737
Interest on other loans		607,469			693,658			724,107
From other banking receivables from financial intermediation		5,367			5,856			2,264
CER adjustment		24,637			17,857			6,705
UVA adjustment		2,250,577			1,567,222			506,632
Income from Public Securities		8,505,653			4,725,693			1,187,403
Other		882,317			1,034,848			421,969
Interest Expenses		(9,982,014	)		(8,624,392	)		(3,507,170	)
Interest on Current Account Deposits		(794,995	)		(669,369	)		(417,615	)
Interest on Saving Account Deposits		(20,214	)		(11,506	)		(26,894	)
Interest on Time Deposits		(7,920,038	)		(7,002,509	)		(2,438,015	)
Interest on interfinancing received loans		(3,376	)		(15,255	)		(18,567	)
Interest on other financing from the financial institutions		(462	)		(571	)		(49,652	)
Interest on other liabilites from financial intermediation		(801,089	)		(625,516	)		(256,177	)
Other interest		(7	)		(7	)		(50	)
UVA adjustment		(430,550	)		(295,432	)		(256,626	)
Other		(11,283	)		(4,227	)		(43,574	)
Net interest income		13,036,118			9,751,251			5,970,921
Net fee income		1,943,656			1,494,815			919,141
Net income of financial instruments		2,115,028			2,464,277			(647,534	)
Result from assets at amortised cost		(36,380	)		(4,183	)		(68,298	)
Foreign exchange difference		1,321,560			1,174,542			2,009,608
Other operating income		4,389,805			3,390,923			622,728
Provision for loan losses		(1,864,924	)		(2,358,139	)		(804,248	)
Net operating income		20,904,863			15,913,486			8,002,318
Personnel expenses		(3,242,029	)		(2,712,587	)		(1,929,968	)
Administrative expenses		(2,421,106	)		(2,044,423	)		(1,646,632	)
Depreciations and amortizations		(371,193	)		(336,698	)		(176,910	)
Depreciation on Intangible assets		(22,733	)		(21,663	)		(30,950	)
Other operating expenses		(6,074,392	)		(2,538,043	)		(1,428,480	)
Operating income		8,773,410			8,260,072			2,789,378
Income from associates and joint ventures		312,483			117,003			230,867
Net income before income tax from continuing operations		9,085,893			8,377,075			3,020,245
Income tax from continuing operations		(2,305,571	)		(2,366,004	)		(866,387	)
Net income Including non-controlling shareholders		6,780,322			6,011,071			2,153,858
Net income attributable to non-controlling shareholders		199			3,452			29,938
Net income		6,780,123			6,007,619			2,123,920
Other comprehensive income		27,259			(184,020	)		68,085
Total income attributable to controlling shareholders		6,807,382			5,823,599			2,192,005

- 20 -

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 Frances (NYSE:BFR)
Historical Stock Chart
From Apr 2024 to May 2024

Click Here for more Bbva Banco Frances Charts.

Bbva Banco Frances (NYSE:BFR)
Historical Stock Chart
From May 2023 to May 2024

BBVA Banco Francés S.A.

Date: August 12, 2019

/s/ Ernesto Gallardo Jimenez

Name: Ernesto Gallardo Jimenez

Title: Chief Financial Officer