INSTITUTIONAL INFORMATION SEPTEMBER 2017 · 01 argentine economy 02 province of buenos aires 03...

INSTITUTIONAL INFORMATIONSEPTEMBER 2017

01 ARGENTINE ECONOMY

PROVINCE OF BUENOS AIRES02ARGENTINE FINANCIAL SYSTEM03BANCO PROVINCIA04

2010 - 2017 MAIN ACHIEVEMENTS062017 - 2018 TARGETS07TERMS AND CONDITIONS OF THE NOTES08

FINANCIAL STATEMENTS05

03

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

ARGENTINE ECONOMYInternational Reserves (in millions of US$)

Financial Business - International Division. Source: Economic Research Management.

19,646

28,07625,563

30,599 31,44332,037

46,166 46,386 46,37643,290

47,967

52,145

Jul-2017

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 6m-2017

38,772

47,014

0

10,000

20,000

30,000

40,000

50,000

60,000

GDP Real Growth (%)

-10.0

-5.0

0.0

5.0

10.0

15.0

9.0 8.9

10.4

8.1

6.1

-1.1-2.6

2.3 2.4

9.0

4.1

-6.0

1.6

-2.2

7m-2017*2001

85

105

125

145

165

185

205

225

245

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

100

242

219

233228

239231

210207

188

175

150144

152

119 125

135

04

ARGENTINE ECONOMYNominal Exchange Rate ($/US$)


Multilateral Real Exchange Rate Index

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 7m-2017*

3.01

1.00

2.95 2.94 2.923.07 3.12 3.16 3.73 3.91 4.13

4.555.48

8.12

9.27

14.78

15.91

Base: 2001=100

05

ARGENTINE ECONOMYCurrent Account Balance / BoP (GDP %)


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 IQ-2017

Total Public Debt (GDP %)

1.91.5

2.5 2.7

2.0 2.1

-0.5 -0.4

-1.1

-2.1

-1.6

-2.7 -2.8-3.0

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0% 118.8%

80.5%

70.6%

62.1%

53.8%55.4%

43.5%38.9%

40.4% 43.5% 44.7%53.5% 54.2%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 IQ-2017

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Jul-2017

06

ARGENTINE ECONOMYForeign Direct Investment (in millions of US$)


Total Loans - FS (GDP %)

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

5,5376,473

9,726

4,017

11,33310,840

15,324

9,822

5,065

11,759

4,229

2,710

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

12.3%11.7% 11.9%

12.4%12.3% 12.7% 12.5%

13.9%12.9%

14.7% 14.8% 14.3%

13.1% 12.7%





Importance of the Province to the country / Variables

Product

08

PROVINCE OF BUENOS AIRES


It is the largest Argentine province. It covers an area of over 307,000 km2 and accounts for 11% of the country’s total surface.

33%

48%

38%

36%

Industrial product Population Employment Exports

32%

09

PROVINCE OF BUENOS AIRESPRODUCTIVE STRUCTURE


PBA productive structure / 2015 Figures Comparison with Argentine structure / 2015 Figures

Buenos Aires is mainly focused on the production of goods.

This activity accounts for 34% and 17% of the provincial and national products, respectively.

Goods Industry Agricultural sector

50%

34%

17%

8% 6%

34%

Goods

Services

Argentina

PBA50% 50%

2007 2008 2009 2010 2011 2012 2013 2014* 2015* 2016 (f)

10

PROVINCE OF BUENOS AIRESEVOLUTION OF THE PROVINCIAL ECONOMY (2016)


GGP percentage variation rate at 1993 constant values Evolution by sector

Gross Global Product (GGP) at current values > US$ 151,000 million.

PBA’s activity increased almost 1.5% over 2015.

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

10.2% 10.1%

3.5% 3.5%

6.3%

13.6%

0.4%1.1%

Sector

TOTAL -1.5% -1.5%

2016 % Var. Share

Total goods

Agricultural sector

Industry

Construction

Other goods

Total services

Trade

Transport, storage and communications

Financial brokerage

Real state, business andrenting activities

Public administration

Other services

Other sectors

-4.7%

5.5%

-5.5%

-10.7%

-0.4%

0.4%

-5.4%

3.1%

9.1%

-1.4%

6.5%

1.2%

-1.8%

-1.6%

0.2%

-1.3%

-0.5%

0.0%

0.3%

-0.6%

0.5%

0.2%

-0.2%

0.2%

0.1%

-0.2%-3.3%

-1.5%

2009 2010 2011 2012 2013 2014 2015 2016

11

PROVINCE OF BUENOS AIRESEVOLUTION OF EXPORTS


Evolution of exports by major items / In millions of US$ (FOB)

2016: Accumulated exports totaled US$ 18,522 million (-2.4% against 2015).

0

5,000

10,000

15,000

20,000

25,000

30,000

Manufactures of industrial origin (MIO)

Manufactures of agricultural origin (MAO)

Primary products (PP)

Fuels and energy (FE)

Total

12,515.1

4,642.8

3,905.2

14,714.4

5,777.9

5,794.3

14,273.3

5,578.1

6,133.9

14,208.7

4,992.4

5,116.6

12,813.5

5,500.2

3,493.0

9,596.7

5,297.5

3,514.8

8,402.5

5,299.3

4,282.5

10,123.4

4,394.7

2,081.8

18,367.3

22,855.3

27,974.9 27,367.6

25,373.7

22,791.2

18,974.218,522.1

PP

MAO

MIO

FE

12

PROVINCE OF BUENOS AIRESCOMPOSITION OF EXPORTS


Exports of goods by jurisdiction and item (2016)

Industrial goods account for 45% of exports.

23%

29%

29%

46%

45%

21%

3%

4%

Other provinces

PBA

Item / Subitem Millions of US$ Share

Cereals

Oilseeds

PP

Food waste

Fat and oils

Meat

Grain mill prod.

Hides and leathers

Vegetables

MAO

Automobiles

Chemicals

Plastics

Electrical supplies

Base metals

MIO

Fuels

Gas

FE

2,539.8

1,179.6

4,282.5

1,662.7

1,035.3

734.7

526.2

409.6

193.2

5,299.3

3,780.4

2,245.1

802.8

469.2

459.8

8,402.5

240.1

213.7

537.8

59%

28%

87%

31%

20%

14%

10%

8%

4%

86%

45%

27%

10%

6%

5%

92%

45%

40%

84%

PROVINCIAL EXPORTS - 2016 FIGURES

2010 2011 2012 2013 2014 2015 2016Brazil China USA Chile India Egypt SpainVietnam

13

PROVINCE OF BUENOS AIRES


Exports by jurisdiction and destination (2016) Brazil’s share in total exports from PBAand the significant role of MIO

PBA exports to more than 170 countries.

Brazil is the main trade partner with total sales for US$ 5,488 million (2016).

MIO and Automobiles accounted for almost US$3,928 million and US$3,159 million, respectively.

Rest of the countryPBA Other itemsMIO exports to Brazil Exports to Brazil

26%

11%

36.5%

29%

11%

39.5%

27%

10%

37.0%

31%

7%

38.6%

32%

8%

39.4%

26%

8%

34.4%

21%

8%

29.6%

30%

9% 9%7% 8%

5%3%

5%

3%4%

3% 2%4% 4%

6%

1%

2011 2012 2013 2014 2015

14

PROVINCE OF BUENOS AIRESPUBLIC DEBT / EVOLUTION


Debt stock / GGP Debt stock / total revenue

0%

20%

40%

60%

80%

9%

8%

7%

6%

5%

100%

5%

6%

67.4%65.1%

54.6%

44.5% 44.5%49.8%

7.8%7.5%

6.8%

5.5%

5.8%

7%

2016

2011 2012 2013 2014 2015 2016

15

PROVINCE OF BUENOS AIRESTAX REVENUE / EVOLUTION


Primary result Financial result

-2.0%

-1.5%

-1.0%

-0.5%

0.0%

0.5%

1.0%

-0.91%

-1.32%

-1.11%

-0.66%

-0.11%

0.34%

0.59%

0.06%

-0.71%

-1.31%

-0.74%

-1.53%

GGP %





17

ARGENTINE FINANCIAL SYSTEMTOTAL DEPOSITS

Financial Business - International Division. Source: BCRA. Information on Institutions processed by Financial Policy and Projections.

Banco Nación 40,530.3 27.5%

Banco Provincia 12,976.6 8.9%

Santander Río 10,933.4 8.2%

Galicia 10,202.8 7.4%

BBVA Francés 7,985.0 5.7%

Macro 6,777.0 5.0%

Credicoop Coop. 5,154.9 4.0%

Banco Ciudad 4,873.4 3.3%

HSBC 4,266.3 3.7%

Patagonia 3,291.7 3.1%

Top ten banks 106,991.4 76.7%

29.0%

9.9%

8.2%

7.5%

5.6%

5.0%

3.7%

3.2%

3.0%

2.4%

77.6%

29.7%

9.5%

8.0%

7.5%

5.8%

5.0%

3.8%

3.6%

3.1%

2.4%

1

2

3

4

5

6

7

9

8

10

1

2

3

4

5

6

7

8

9

10

1

2

3

4

5

6

7

8

9

10

1

2

3

4

5

6

7

8

9

10

78.4%

28.8%

9.1%

8.2%

7.7%

5.8%

5.2%

3.9%

3.3%

3.2%

2.6%

77.8%

SYSTEM 136,553.4

Balance in millions of US$

Mar-17 Dec-15 Dec-16 Feb-17 Mar-17 Dec-15 Dec-16 Feb-17 Mar-17

Market share Ranking

18

ARGENTINE FINANCIAL SYSTEMDEPOSITS / NON FINANCIAL PRIVATE SECTOR




Galicia 10,106.6 9.3%



Macro 6,219.0 5.8%


HSBC 4,233.7 4.7%


ICBC 3,180.5 3.4%

76,520.0 75.7%

16.7%

11.1%

10.2%

9.0%

7.5%

6.2%

4.9%

4.1%

3.2%

3.2%

76.3%

16.9%

10.9%

10.2%

9.1%

7.9%

6.3%

5.1%

4.3%

3.2%

3.2%

1

2

4

3

5

6

7

8

12

10

1

2

3

4

5

6

7

8

11

9

1

2

3

4

5

6

7

8

10

9

1

2

3

4

5

6

7

8

9

10

77.1%

18.5%

10.6%

9.8%

8.6%

7.3%

6.3%

4.9%

4.1%

3.2%

2.3%

76.7%

99,191.2

Top ten banks

SYSTEM




19

ARGENTINE FINANCIAL SYSTEMTIME DEPOSITS AND TERM INVESTMENTS




Galicia 3,962.7 10.0%


Macro 2,920.7 6.6%



HSBC 1,606.8 4.5%



31,349.7 77.8%

19.7%

9.8%

9.9%

8.2%

7.1%

6.2%

6.2%

3.7%

3.1%

2.8%

76.8%

20.0%

10.2%

9.7%

7.3%

7.2%

6.3%

6.3%

3.9%

3.2%

2.8%

1

2

4

3

5

6

7

8

10

9

1

2

3

5

4

7

6

8

9

10

1

3

2

4

5

7

6

8

9

10

1

2

3

4

5

6

7

8

9

10

76.8%

20.2%

10.0%

8.5%

6.9%

7.7%

6.0%

6.3%

3.9%

3.3%

3.2%

75.9%

40,805.1

Top ten banks

SYSTEM




20

ARGENTINE FINANCIAL SYSTEMDEPOSITS / PUBLIC SECTOR





Córdoba 1,031.5 1.5%

San Juan 718.7 3.9%

Santa Fé 633.0 0.4%

Macro 554.7 2.2%

Supervielle 251.1 0.4%

Patagonia 229.7 1.0%

Hipotecario 202.4 2.3%

32,733.5 87.6%

63.0%

12.2%

3.0%

2.5%

2.0%

1.2%

1.7%

0.6%

0.7%

0.7%

87.5%

64.0%

10.5%

4.1%

2.8%

1.9%

1.7%

1.5%

0.7%

0.6%

0.5%

1

2

4

7

3

12

6

11

9

5

1

2

3

4

5

7

6

10

8

11

1

2

3

4

5

7

6

10

8

9

1

2

3

4

5

6

7

8

9

10

88.4%

64.6%

10.7%

3.2%

2.6%

2.1%

1.0%

1.3%

0.6%

0.7%

0.6%

87.4%

37,022.9

Top ten banks

SYSTEM




21

ARGENTINE FINANCIAL SYSTEMTOTAL LOANS




Galicia 7,440.9 8.4%


Macro 5,610.1 6.4%


HSBC 2,971.9 3.7%


ICBC 2,788.8 3.3%


54,392.2 72.0%

13.6%

9.8%

9.4%

8.9%

7.2%

6.7%

3.9%

3.9%

3.6%

3.5%

70.6%

13.6%

9.8%

9.7%

9.1%

7.3%

6.7%

3.9%

3.8%

3.6%

3.4%

1

3

4

2

5

6

8

7

10

9

1

2

3

4

5

6

7

8

10

9

1

2

3

4

5

6

8

7

9

10

1

2

3

4

5

6

7

8

9

10

71.0%

13.4%

10.1%

9.3%

9.0%

7.1%

6.7%

3.9%

3.9%

3.5%

3.6%

70.4%

76,607.5

Top ten banks

SYSTEM




22

ARGENTINE FINANCIAL SYSTEMLOANS / PRIVATE SECTOR




Galicia 7,373.5 9.2%


Macro 5,577.9 6.9%


HSBC 2,974.7 4.1%


ICBC 2,774.5 3.6%


51,622.6 69.8%

11.5%

10.3%

9.7%

8.7%

7.4%

6.8%

4.1%

3.9%

3.7%

3.6%

69.7%

11.5%

10.3%

10.0%

9.0%

7.6%

6.8%

4.0%

3.8%

3.8%

3.4%

1

2

3

4

5

6

7

8

10

9

1

2

3

4

5

6

7

8

9

10

1

2

3

4

5

6

7

8

9

10

1

2

3

4

5

6

7

8

9

10

70.1%

11.0%

10.6%

9.6%

8.8%

7.3%

6.8%

4.1%

3.8%

3.7%

3.6%

69.4%

73,666.8

Top ten banks

SYSTEM




23

ARGENTINE FINANCIAL SYSTEMCONSUMER LOANS



Macro 1,804.7 12.3%



Galicia 773.1 4.0%

BBVA Francés 684.1 4.6%

Banco Ciudad 619.8 4.5%

Córdoba 561.2 3.4%

Supervielle 523.1 2.9%

Santa Fé 494.9 3.2%

10,141.8 65.3%

13.8%

11.4%

8.0%

7.6%

4.8%

4.3%

4.0%

3.6%

3.3%

3.1%

63.9%

14.2%

11.6%

8.1%

7.7%

5.0%

4.4%

4.0%

3.6%

3.4%

3.2%

1

2

3

4

7

5

6

8

10

9

1

2

3

4

5

6

7

8

9

10

1

2

3

4

5

6

7

8

9

10

1

2

3

4

5

6

7

8

9

10

65.0%

14.0%

11.5%

8.1%

7.3%

4.7%

4.3%

4.0%

3.6%

3.3%

3.2%

64.1%

15,590.9

Top ten banks

SYSTEM








25

The Bank is now approaching its two centuries of existence in the country.

It was the first financial institution to operate in Argentina and Spanish America.

It printed the first bank note and struck the first coin inArgentina.

It established the first Accounting School providing training on banking transactions.

The Bank granted the first mortgage loan in the country.

It launched the first loan facility for the agricultural sector.

BANCO PROVINCIA

Financial Business - International Division.

Banco Provincia is the largest bank of the largest Argentine Province. It comes close to people through branches located in each of the 135 provincial municipalities.

In April 2017, the Bank was assigned ‘B’ long term counterparty credit (stable Outlook) and raA (domestic deposits) ratings by Standard & Poor's Ratings Services.

26Financial Business - International Division. (1) Source: Banco Provincia - Human Resources. Data at July 2017.

BANCO PROVINCIA

The Bank acts as the financial agent of the Province of Buenos Aires.

Its Head O�ce is in the City of Buenos Aires and its Home O�ce in the City of La Plata.

426 branches and o�ces and the largest ATM network.

10,424 employees locally.(1)

2 branches abroad in Sao Paulo and Montevideo.

1 representative o�ce in Madrid.

27

High degree of loyalty from the people and the productive sector.

Key role in the financial system.

Grupo Banco Provincia with diversified and supplementary services and products.

Integrating role and social function.

Leader in technological innovation and product development.

In 2009, a Strategic Plan was submitted to the BCRA destined to the Bank’s capitalization and repositioning.

Its financial statements are audited by KPMG.

Juan Curutchet holds o�ce as President since December 2015.

The Board of Directors has been appointed by the Executive Branch with the approval of the Provincial Senate.

BANCO PROVINCIA


28

BANCO PROVINCIA AUTHORITIES


PresidentJuan Curutchet

General ManagerDaniel Alonso

Vice PresidentCarlos Pérez

Board ofDirectors

GeneralManagement

DirectorDaniel Arroyo

Director SecretaryDiego Rodrigo

DirectorMario Meoni

DirectorEduardo Di Rocco

DirectorFelipe Hughes

DirectorMario Biondi

DirectorAndrea García

Deputy General Manager - Processes and TechnologyMarcelo Ávila

Deputy General Manager - FinanceNéstor Francescangeli

Deputy General Manager - Services and Operating ControlMariano Darduin

Deputy General Manager - Marketing and LoansJuan Lasala

Deputy General Manager -RisksSilvia Callegari de Carusso

Deputy General Manager - AdministrationMarcelo Casanovas

Deputy General Manager - Business DevelopmentGonzalo Diz

29

BANCO PROVINCIA INTERNATIONAL AREA


Sao Paulo Branch - BrazilGuillermo LemmoRua Libero Badaro 425 Piso 26, Sao Paulo, Brasil+55 (11) 3188-4777 / [email protected]

Madrid Representative O�ce - SpainPablo Esteban SanchezPaseo de la Castellana 91 Piso 4 – 1 – 28046, Madrid, España +34 (91) 700-0776 / [email protected]

International DivisionClaudia PerezSan Martín 108 Piso 22º (C1004AAD), CABA – Argentina +54-11 4347-0238 / [email protected]

Provincia Financial House - UruguayAugusto MaglianoAv. Luis Alberto de Herrera 1248, Torre 2 – 1º Piso, Of. 111 y 114, Montevideo, República Oriental del Uruguay+59 (82) 628-9892 / [email protected]

Financial BusinessOscar Mario VidelaSan Martín 108 Piso 21º (C1004AAD) CABA – Argentina

Capital MarketsEduardo Nicolás GiambruniSan Martín 108 Piso 15º (C1004AAD) CABA – Argentina

30

BANCO PROVINCIA


PresidentJorge Macri

Ejecutive Vice PresidentGuillermo Romero

General ManagerLuis Rodríguez

Finance

Insurance

Brokerage





32

FINANCIAL STATEMENTSBALANCE SHEET

Financial Business - International Division. (*) It includes figures from Grupo Banco Provincia and other long-term investments.

Cash and Due from Banks + Gov. Securities

Loans

Other Assets

Total Assets

Deposits

Liabilities from Financial Brokerage

Other Liabilities

Total Liabilities

Net Worth

Net Income for the Year (*)

2,848.25

6,584.10

1,209.75

10,642.10

9,384.52

432.43

125.11

9,942.06

700.04

94.49

5,006.03

6,454.93

1,722.62

13,183.58

11,376.85

926.14

114.12

12,417.10

766.48

200.03

In millions of US$ Dec-15 Dec-16

6,179.26

7,384.60

3,102.11

16,665.97

12,628.74

2,884.31

233.51

15,746.56

919.41

187.49

Jun-17

Balances at

33

FINANCIAL STATEMENTSBALANCE SHEET

Financial Business - International Division. (*) It includes figures from Grupo Banco Provincia and other long-term investments.

Financial Income

Financial Expenditure

Provision for Loan Losses

Income from Services

Expenditure for Services

Administrative Expenses

Other Income / Loss

Net Income for the Year (*)

1,612.19

-953.77

-54.72

452.52

-127.64

-833.81

-0.28

94.49

1,965.34

-1,032.65

-83.29

476.35

-127.09

-917.40

-81.23

200.03

In millions of US$ Dec-15 Dec-16

1,033.17

-414.23

-65.02

257.51

-100.66

-528.76

5.48

187.49

Jun-17

Balances at

34

FINANCIAL STATEMENTSINDICATORS


PROFITABILITY

OTHER

EFFICIENCY

ASSETSLoans / Deposits

NPL / Financing & Guarantees granted

%

%

64.9%

1.6%

55.5%

2.3%

Dec-15 Dec-16

53.9%

2.4%

Jun-17

Income from Services / Admin. Expenses

Operating Profit Margin / Admin. Expenses

%

%

52.2%

29.6%

Liquidity % 20.8%

Interest on Loans / Financial Income % 69.2%

54.9%

10.8%

16.7%

76.8%

51.6%

34.9%

22.7%

69.7%

ROE

ROA

%

%

14.8%

1.0%

39.4%

2.2%

30.8%

1.8%

Private Sector Loans / Sta�

Private Sector Deposits / Sta�

in millions of $

in millions of $

in millions of $

7,092

9,355

Turnover / Sta� 16,439

11,109

14,682

27,680

9,162

12,650

23,607

Dec-15 Dec-16 Jun-17







36

2010 - 2017 MAIN ACHIEVEMENTS


Bank’s historic issuance of Debt Securities in the local market for an amount of US$27 million, with the lowest rates recorded in the last quarter of 2016.

Arranger and Manager of debt securities of Los Grobo Agropecuaria, Albanesi S.A. and IRSA Inversiones y Representaciones S.A. for US$10 million, US$15 million and US$210 million, respectively, in 2016.

Placement in the local market of Treasury Bills issued by the Province of Buenos Aires for US$9,036 million (in 2016, it amounted to US$1,186 million).

Collaboration with the Province of Buenos Aires on local issuances of debt for US$313 million in 2015 and US$236 million in December 2016.

Collaboration with the Province of Buenos Aires on international issuances for US$1,250 million, US$1,000 million and US$750 million in March, June and October 2016, respectively.

37



Arranger and Manager of debt securities of Central Loma de la Lata and Electroingeniería S.A., for US$30 million and US$41 million, respectively, in 2015.

The Bank acted as Manager in the YPF Sociedad Anónima Global Issuance Program of Medium Term Debt Securities, arranging six placements of simple Negotiable Obligations for US$19 million.

It also acted as Arranger and lead Manager of Debt Securities issued by the Province of Mendoza under the Program of Provincial Debt Issuance for the year 2015. The Bank arranged a placement for US$17 million and a placement in the local market of Treasury Bills issued by the Province of Mendoza for US$72 million.

Creation of a debt issuance program through a financial trust of consumer loans for US$68.9 million, the first of its kind in the Bank’s history.

38



Diversification of financing sources, medium and long term fund raising, risk reduction and Banco Provincia brand positioning in capital markets.

Regularization of the Exposure to the Public Sector and the Immobilized Assets ratio, within the limits set by the Argentine Central Bank.

Consolidation of the Bank in the micro-undertaking segment through Prome S.A. with 148,070 loans granted from its creation to December 2016 for $2,891.63 million.

Credit Facility Framework Agreement between the Bank and Corporación Andina de Fomento: Financing to Suppliers Program.

Mutual Cooperation Agreement with Banco de la República Oriental del Uruguay (BROU): Coordinated plans aimed at rendering better customer services and promoting credit facilities to finance bilateral foreign trade.

Agreement with Banco Nacional de Desenvolvimento Econômico e Social (Brazil): Loan facility to finance the purchase of capital goods and machineries for SMEs of the Province of Buenos Aires.

39



Short-term facilities through the Bank’s branches and o�ces abroad for funding the Argentine foreign trade.

Medium and long-term facilities for local investments projects.

Incorporation of state-of-the-art technology.

Consolidation of the Banca Internet Provincia (BIP) platform.

Conversion of branches into points of sale (POS).

Creation of new (lending and borrowing) financial products directed to the retail segment.

Creation of Espacio Provincia: a new financial channel exclusively designed to meet the needs of SMEs located in small and medium industrial clusters and operating in market niches with no banking presence.





41

2017 - 2018 TARGETS


To ensure self-capitalization and sustainability.

To increase financial brokerage levels.

Cross-selling.

To continue leading the SME segment.

To improve customer service.

To enlarge the o�ering of electronic channels.

Technological advances for the internet banking platform.

Alternative channels to market and manage products.

International financial market.

To encourage microcredit development.

To actively participate in Capital Markets.





43

TERMS AND CONDITIONS - NOTE 2019 “CLASS VI”

Issuer

Placement Agents

Term

Currency

Subscription Price

Auction Date

Issue and Settlement Date

Maturity Date

Principal Amount

Amortization

Payment of Interest

Form of the Notes

Interest Rate

Subscription currency

Listing and Trading

Governing Law / Jurisdiction

Risk Ratings

Banco de la Provincia de Buenos Aires

Banco de Galicia y Buenos Aires SA, Banco de Crédito y Securitizacion SA, Banco Macro SA, Banco de la Provincia de Buenos Aires, Macro Securities SA y Industrial and Commercial Bank of China (Argentina) SA.

2 years

Pesos (ARS)

100% of their Principal Amount (at par)

October 26, 2017

November 1, 2017

November 1, 2019

ARS 500,000,000 extendable to ARS 2,500,000,000 in conjunction with Note 2020 Class VII

Single bullet payment upon maturity

Interest will be payable every three months in arrears

The Notes will be represented by a permanent global certificate to be deposited with CVSA. Any holder may opt to hold all or of any portion of its interest in the Notes by depositing it in Euroclear Bank accounts through CVSA. The Notes will be assigned a designation in Euroclear Bank.

The interest rate will be the simple arithmetic average of the TM20 Rate for Private Banks (for amounts higher than ARS 20,000,000 and for 30 to 35 day terms) or such other rate as replaces it in future, calculated considering the average rates daily published by the Central Bank for a term beginning 8 banking days before the start of each interest period and ending 8 banking days before the maturity of each interest payment, plus the Applicable Spread to be determined at the auction process. During the first quarter, the Notes will guarantee a Minimum Interest Rate.

Pesos or US Dollars, using the applicable exchange rate as of October 26, 2017

Bolsas y Mercados Argentinos S.A. / Mercado Abierto Electrónico S.A.

Republic of Argentina

“A+” (local scale) assigned by Fix SCR S.

44

TERMS AND CONDITIONS - NOTE 2020 “CLASS VII”

Issuer

Placement Agents

Term

Currency

Subscription Price

Auction Date

Issue and Settlement Date

Maturity Date

Principal Amount

Amortization

Payment of Interest

Form of the Notes

Interest Rate

Subscription currency

Listing and Trading

Governing Law / Jurisdiction

Risk Ratings

Banco de la Provincia de Buenos Aires

Banco de Galicia y Buenos Aires SA, Banco de Crédito y Securitizacion SA, Banco Macro SA, Banco de la Provincia de Buenos Aires, Macro Securities SA y Industrial and Commercial Bank of China (Argentina) SA.

3 years

Pesos (ARS)

To be determined through the auction process

October 26, 2017

November 1, 2017

November 1, 2020

ARS 500,000,000 extendable to ARS 2,500,000,000 in conjunction with Note 2019 Class VI

Single bullet payment upon maturity

Interest will be payable every three months in arrears

The Notes will be represented by a permanent global certificate to be deposited with CVSA. Any holder may opt to hold all or of any portion of its interest in the Notes by depositing it in Euroclear Bank accounts through CVSA. The Notes will be assigned a designation in Euroclear Bank.

The interest rate will be the simple arithmetic average of the Monetary Policy Rate determined by the BCRA or such other rate as replaces it in future, calculated considering the average rates daily published by the Central Bank for a term beginning 10 banking days before the start of each interest period and ending 10 banking days before the maturity of each interest payment. During the first quarter, the Notes will guarantee a Minimum Interest Rate.

Pesos or US Dollars, using the applicable exchange rate as of October 26, 2017

Bolsas y Mercados Argentinos S.A. / Mercado Abierto Electrónico S.A.

Republic of Argentina

“A+” (local scale) assigned by Fix SCR S.A.

THANK YOU

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