50
Cambiar logo! BBVA Francés 3° Quarter 2017 Corporate Presentation
BBVA FrancésCorporate Presentation
1°QUARTER 2017
Cambiar logo!
BBVA Francés
3° Quarter 2017
Corporate Presentation
Disclaimer: This presentation 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.
2
01
02
04
05
06
Macroeconomic environment
Financial System
Strategy
Annex
BBVA Francés03
Financial performance
07 BBVA Group
01Macroeconomic environment
Economy growing since 3Q16
GDP Growth (% yoy) Quarterly GDP (% yoy)
-2,5%
2,6%
-2,2%
2,8% 3,0% 3,0%
2014 2015 2016 2017e 2018e 2019e
Source: BCRA, INDEC and own estimations
Base 2004
-3,7%
-1,9%
0,4%
2,7%
3,8%
2Q16 3Q16 4Q16 1Q17 2Q17 3Q17e
5
Decreasing trend in inflation, but higher than the
target expected by the Central Bank.
Inflation (% yoy)End of period
CPI monthly variation (%)
Source: INDEC CPI GBA: Jun-16 to Dec-16/ CPI National Jan-17 to Jul-17Source: CPI CABA (Jan-13 to Mar-16) – INDEC: CPI GBA (Apr-16 to Dec-16) – IPC
Nacional INDEC (Jan-17 to Jul-17)
6
38,0%
26,9%
39,4%
22,2%
15,6%
10,3%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
2014 2015 2016 2017 2018 2019
Inflation BCRA Target
1,7%
1,4%
1,9%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0%
1%
1%
2%
2%
3%
3%
m/m (left) y/y (right)
1,9%
1,3%0,8%
0,5%
0,5%
0,5%
0,2%
0,2%
0,2%
0%
1%
1%
2%
2%
3%
3%
Jan-Aug 2015 Jan-Aug 2016 Jan-Aug 2017
Energy Transport State owned companies Others
Fiscal Performance: lower subsidies will help to meet targetsPrimary fiscal result
Source: Ministry of Economy / 2017-2019 Targets
Subsidies to economic sectors
Source: ASAP, Indec and BBVA Research
Public debt per creditor (% GDP)
Source: Ministry of Finance
Figures in billion AR$
Primary result observed and targets
Source: Ministry of Economy
% of GDP
7
-3,4%
-4,0%-4,3% -4,2%
-3,2%
-2,2%
-5%
-4%
-3%
-2%
-1%
0%
2014 2015 2016 Target17 Target18 Target19
-500
-400
-300
-200
-100
0
1Q17 2Q17 3Q17 4Q17
Quarterly target accumulated Observed
30,6 27,5 26,1
6,45,5 5,0
12,4 19,4 19,6
0
10
20
30
40
50
60
2015 2016 1Q17
Debt still in default Private Sector
International Organizations Public Agencies
External sector: imports, mainly in capital goods and energy,
growing as the economy recovers
International reserves
Source: Central Bank
Current Account
Source: Indec
Exports and Imports
Source: Indec
FX rate and REM forecast
Source: Central Bank
% of GDP% change yoy
Figures in million USD AR$/USD
8
-40%
-20%
00%
20%
40%
Exports Imports
-1,5%
-2,7% -2,7%
-4,4%-5%
-4%
-3%
-2%
-1%
0%
1%
2014 2015 2016 2017e
Trade Balance Real services Interest & Dividends Current account
27.748
50.237
Jan-1
4
Apr-
14
Jul-1
4
Oct-
14
Jan-1
5
Apr-
15
Jul-1
5
Oct-
15
Jan-1
6
Apr-
16
Jul-1
6
Oct-
16
Jan-1
7
Apr-
17
Jul-1
7
Oct-
17
18,120,6
0
5
10
15
20
25
De
c-1
4
Ma
r-1
5
Jun-1
5
Sep-1
5
De
c-1
5
Ma
r-1
6
Jun-1
6
Sep-1
6
De
c-1
6
Ma
r-1
7
Jun-1
7
Sep-1
7
De
c-1
7
Ma
r-1
8
Jun-1
8
Sep-1
8
De
c-1
8
REM forecast FX rate
02Financial System
A system with strong ratios of liquidity, solvency…
14,7%13,3%
16,7%
2014 2015 2016
16,1%
16,5%16,7%
16,8%
16,5%16,6%
2Q16 3Q16 4Q16 1Q17 2Q17 Aug17
45,4%
46,7%
49,0%
2014 2015 2016
47,2% 47,1% 49,0%52,3%
46,0% 44,5%
2Q16 3Q16 4Q16 1Q17 2Q17 Aug17
Cash + net repos with BCRA+BCRA bills / Total DepositsCapital Integration / RWA according to BCRA regulation
Source: BCRA – Financial System Report
Quarterly evolution
Capital Liquidity
10
…and healthy asset quality indicators
2,0%
1,7%1,8%
2014 2015 2016
NPL
1,9% 1,9%1,8% 1,9%
2,0%1,9%
2Q16 3Q16 4Q16 1Q17 2Q17 Aug17
Cost of risk
1,2% 1,2% 1,3% 1,3%1,5% 1,5%
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17
1,4%
1,2%
1,3%
2014 2015 2016
Quarterly evolution
11Source: BCRA – Financial System Report Source: own estimations
Profitability, though recovering, still low in real terms
29,5% 32,7% 32,4% 29,6%27,2%
26,6%
38,0%
26,9%
39,4%
23,9%
2013 2014 2015 2016 Aug-17 (*)
ROE Inflation
ROE and InflationInflation: end of period
Quarterly figures
34,5%29,5%
27,4%23,3%
26,4% 24,7%
0%
10%
20%
30%
40%
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17
ROE Inflation
ROE: quarterly net income / quarterly average equity, annualized
Quarterly inflation: quarterly average inflation, annualized
ROE: accumulated net income / monthly average equity, annualized
(*) Inflation accumulated as of August 2017, annualized
Source: BCRA and IPC CABA (from January 2013 to April 2016) – IPC GBA INDEC (from
May 2016 to May 2017) – IPC Nacional INDEC (from June 2017) 12
A small financial system, but with a good infrastructure to face
growth
Latam Private Loans and Total
Deposits in terms of GDP
12,9%
23,6%
84,1%78,5%
45,2%48,9%
39,4%
33,1%
Loans to the PrivateSector
Deposits
Argentina Chile Colombia Perú
Branches and ATMs / 100,000
adult population
(*) Figures as of December 2012
14,0
51,4
17,0
68,2
15,0
35,8
70,0
36,2
Branches ATMs
Argentina Chile Colombia Perú
(*) Figures as of December 2016 13
17%32% 21% 19% 30% 19%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Argentina Uruguay Colombia Chile Perú BrazilCR1 CR2 CR3 CR5
The Argentine
Financial System
has 80 entities.
That compares
with 47 in Mexico,
25 in Colombia
and 16 in Peru.
Argentina has the less concentrated financial system in
the region
Total loans
Source: Central Banks 14
Private loans trend
Total Private Loans growth Retail and Commercial Loans (ARS + USD)
15
0%
50%
100%
150%
200%
0
10.000
20.000
30.000
40.000
50.000
60.000
70.000
Total Nom Var Total % Var YoY
ARS % YoY USD % Var YoY
20%
25%
30%
35%
40%
45%
50%
55%
60%
Retail % Var YoY Commercial % Var YoY
Total % Var YoY
Private deposits trend
Total Private Deposits growth Sight Deposits and Time Deposits (ARS + USD)
16
0%
20%
40%
60%
80%
100%
120%
140%
Total % Var YoY ARS % Var YoY
USD % Var YoY
0%
10%
20%
30%
40%
50%
60%
70%
80%
SD % Var YoY TD % Var YoY Total % Var YoY
Interest rates and NIM
Interest rates and inflation Financial System NIM
9,7%
9,2%
10,5%
11,3%
12,9%13,4%
13,0%
11,8%
2010 2011 2012 2013 2014 2015 2016 2017
17
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0%
5%
10%
15%
20%
25%
30%
Private Badlar Lebac<35d Inflation
03BBVA Francés
A universal bank with a countrywide presence
Arial negrita
12pt, blanco
# Clients
ATMs 776
ATSs 820
Employees 6,142
C&IB
838
Middle Market
41,063
Retail
2,514,757
2,559,923
Branches 251
Key Financial metrics
Assets
Total deposits
Net loans
Shareholders’
equity
11.6
6.5
7.5
1.4
3Q-17 • Figures in billion USD
• Exchange rate $17,3/USD
19(*) Variations (%) in comparison with the previous quarter
-0.4%
+3%
+0.1%
-0.7%
+8%
+4%
+1%
-1%
+40%
+18%
+12%
11,3
9,9
8,1
8,1
4,2
3,5
3,2
2,9
1,5
1,9
SANTANDER
GALICIA
MACRO
BBVA FRANCES
HSBC
ICBC
PATAGONIA
SUPERVIELLE
ITAU
CITI
12,4
9,3
7,4
6,8
4,4
3,1
3,1
2,3
1,5
1,4
SANTANDER
GALICIA
BBVA FRANCES
MACRO
HSBC
ICBC
PATAGONIA
SUP
CITI
ITAU
BBVA Francés, 3rd largest private bank by deposits and
4th by loans
Peer Group market share s of August 2017, except BBVA Francés as of September 2017.
Private DepositsPrivate loans
53,1%
of total
Mutual Funds: 6.4%
Branches Market share as of June 2017
Branches: 5.6%
20
Mutual Funds market share as of September, 2017
BBVA Francés private loans market share includes JVs.
+47 bp-10 bp
-10 bp -10 bp
Basis points variations in comparision with the previous quarter
6,7%
6,9%
19,7%
ByMA ANSES NYSE
Equity Ownership
Ownership structure
BBVA Frances has been listed on the BCBA since 1888. Its shares have been also listed on the New
York Stock Exchange, since 1993, and Latibex, since 1999.
NYSE US$ 4.1 MM
BCBA $ 15.6 MM
# Shares
612,659,638
Free Float
33,45%
Grupo
BBVA
66,55%
Market Cap
As of September 30, 2017
4,185MM U$S
04Strategy
Plenty of growth opportunities in the Argentine banking
sector
Mortgages
SMEs
Energy and Infrastructure
Saving and Investments
Just to mention some key drivers…
Undeveloped market
Fiscal amnesty and currency
stabilization
Engine of Argentina’s growth
…with potential room to grow
Potential for rapid banking penetration given low credit to GDP rations and improving
economic outlook
15 years without investment
23
New macro environment results in need for growth
and transformation
DECREASING INFLATION
Imperative for growth
Margin compression
COMMODITIZED PRODUCTS
Need for Differenciation:Need for Differenciation
Customer experience
Transformation
Multichannel Strategy
Digital approach
Efficiency improvements stemming from scale and new customer
experience
Our strategy will be focused on:
Continuing with our digital and partner based client adquisition strategy
Increasing market share in a growth environment, mainly through our
organic strategy, but analyzing any M&A opportunity that could add value
Fostering the multichannel and digital capacity over physical presence.
Creating Opportunities
25
Streghtening our presence in the retail and the SMEs segments.
Transforming Customer Experience and Processes
Diversified business model, based on multichannel
platform and exclusive partnerships…
ATMs/
ATSs
Branches
Call
Center
Web
MobileSponsors
JVs
Alliances
Exclusive
partnerships
Physical
Infrastructure
Digital
Channels
% Digital clients
20,9%
26,8%31,4%
40,7%37,0%
2015 2016 1Q17 2Q17 3Q17
Clients evolution
2,20
2,292,35
2,42
2,51
3Q16 4Q16 1Q17 2Q17 3Q17
New retail clients
253
270280
300
2015 2016 2017e 2018e
% Digital Sales
27,7%
33,8% 34,4%35,4% 36,2%
2015 2016 1Q17 2Q17 3Q17
Digital clients / Total retail clientsDigital sales / Total sales
Figures in million
Total retail clientsFigures in thousand
27
QoQ
+4%
QoQ
-370bp QoQ
+82bp
2Q 17 reflected a specific campaign to attract clients, which resulted in higher digital sales
W
• Organic growth strategy
• Solid risk ratios
• Multichannel strategy:• Countrywide presence
• Digital Channels
• Car Loans JVs
• Commercial Alliances
• Transformation as
key to Efficiency
• Less expensive and fast
client acquisition
• Low cost funding base
• Brand Image
• Recent Capital Raising
Strengths
SWeaknesses
• Low market share in
personal loans.
• Improving cross sell but
still low.
• Room to improve service
quality
• Presence in lower
tier SMEs
OOpportunities
• Perspectives of
Economic Growth
• Low banking penetration
• Mortgages and SMEs.
• Increase in concentration
• Increase activity with
Public Agencies.
• Solid Risk Management
TThreats
• Peers with aggresive
advertising campaigns
• Increase competition
from new players and
FinTechs
• Lack of long-term funding
28
05Financial performance
Activity 3Q 2017
Strong balance sheet.
Balance Sheet (billion $ and QoQ)
Loans (*) Deposits
AR$ 108.1 +20.8% AR$ 129.9 +3.4%
Leverage Loan to Deposits
NPL Coverage
Liquidity and Solvency QoQTier ICapital ratioLiquidity(**)
34.7%
-870bp
14.8%
+167bp13.7%
+180bp
Adequate leverage, with a growing
Private loan to Deposits ratio, which
increased 1470bp during the quarter
Maintaining the best asset quality
ratios in the Argentine financial
system
Adequate levels of liquidity and
solvency
(*) Loans does not include balances related with overnight operations 30
QoQ
0.70% -16 bp
85.9% +1470 bp7.1 x -2280 bp
271.1% +2780 bp
QoQ
(**) Includes bills issued by the Central Bank
Loans
The private sector loan portfolio grew 20.8% q/q and 52.1% y/y. As a result of the growth strategy implemented, BBVA Francés market share of private loans increased 47 bp during the quarter, reaching 8.1%.
Private LoansWithout considering overnight operations
balances
Figures in million AR$
Private Loans structure
Credit
Cards
51%
Personal
Loans
27%
Mortgages 6%
Car Loans 16%
71.069 77.115 81.33089.445
108.088
3Q16 4Q16 1Q17 2Q17 3Q17
YoY
+52.1%
7.7 7.6 7.6 7.6 8.1
Market Share %
47%53%
Retail
Commercial
75%
25%
Pesos
USD
Private Loans by currency
Basis points variations in comparison with the previous quarter
Market share includes loans of affiliated companies consolidated within the financial statements, PSA Finance and Volkswagen
-367bp
+367bp
-500bp
+500bp
(*) Commercial loans does not include overnight operations celebrated with foreign
correspondent banks
Retail Banking: showing an important evolution in
terms of personal and car loans
Personal Loans(Figures in million AR$)
(*) Car Loans contain joint ventures activity: PSA Finance, VW Finance and Rombo Compañía Financiera (Rombo figures are not included into BBVA Francés Balance Sheet)
Car Loans (*)(Figures in million AR$)
8.1739.369
10.52311.647
13.787
3Q16 4Q16 1Q17 2Q17 3Q17
8.82310.323
12.02913.307
15.679
3Q16 4Q16 1Q17 2Q17 3Q17
4.12 4.23 4.21 4.20 4.42 18.50 18.65 19.29 18.39 18.75
Market Share
%
(*) In August,2017, there was a reclasification in certain types of financing that had been previously incorporated in the car loans. For this reason the
total amount for car loans and, consequently, the car loans market share were modified in each period.
YoY
+68.7%YoY
+77.7%
Retail Banking: highlighting participation in the Credit Cards
market and growing position in Mortgages loans
Credit Cards(Loans in million AR$ and credit card stock)
19.699
22.521 23.077 23.980 25.439
2.839 2.882 2.890 2.951 3.037
3Q16 4Q16 1Q17 2Q17 3Q17
Loans Card Stock
11.97 11.76 12.20 12.32 12.47
QoQ + 6.1%
Card Stock QoQ + 2.9%
Market Share
Consumption
%
n
YoY
+29.1%
30 4359 75
122
206
273
350
442
Jan-17 feb-17 mar-17 apr-17 may-17 jun-17 jul-17 aug-17 sep-17
Bank is currently holding around
6% share of sales (target: 10%)
zone)
Mortgages (Monthly sales)
(Figures in million AR$)
YoY
+7.0%
Loans
QoQ
+164.5%
Commercial Banking
37,4%
18,6%
13,8%
12,0%
6,7%
4,4%
3,3%1,5%2,4%
Consumer RetailersBasic Materials EnergyDurable goods Capital goodsInfrastructure TransportationOthers
Distribution by
industry
Commercial loans increased significantly both in quarterly and yearly comparison, with animportant participation of discounted and purchased notes in pesos, increasing 43,1% y/y,
and foreign trade dollar loans, which grew 205,6% y/y.
Figures in million AR$
Commercial (*)
34.934 36.522 38.512 43.48856.619
Sep.16 Dec.16 Mar.17 Jun.17 Sep.17
Market
Share
9.8%
YoY
62.1%
Market share as of September 2017
60%
40%Pesos
USD
Commercial Loans by currency (*)
8.15 7.66 7.85 7.68 8.70 Market share
(*) Commercial loans does not include overnight operations celebrated with foreign
correspondent banks
q/q
-234bp
q/q
+234bp
Risk Manangement: maintaining an outstanding
asset quality
Coverage - NPL ratio – Cost
of Risk
NPL peer group and
Financial System
1,86
0,70
1,23
1,66
2,24
System
BBVA
Peer 1
Peer 2
Peer 3
Opportunity
Retail Middle Market Corporate1.56% 0.31% 0.0%
NPL by segment Sep-17
Figures as of June-17, except BBVA Francés (NPL as of
September 17)
251,6% 262,7% 248,3% 243,3%271,1%
0,83% 0,77% 0,84% 0,85% 0,70%
1,15% 1,22% 1,31% 1,30% 1,43%
0%
1%
2%
3%
4%
5%
3Q16 4Q16 1Q17 2Q17 3Q17
Coverage NPL Cost of Risk
Basis points variations in comparison with the previous quarter
-18%
+10%
+11%
-4 bp -19 bp
q/q
-
Public bonds and Central Bank bills portfolio
3.386 5.277 6.890 7.921 7.465
9.437 7.3107.201
14.39314.489
Private Portfolio
BCRA Bills & Notes (ownportfolio)
Public Bonds and loans
Total exposure to the Public
Sector without repos13,215 13,066 14,562 22,891 22,569
Public Sector National
Government / Total Assets2.6% 3.5% 3.7% 4.6% 3.7%
BCRA Bills / Total Assets 7.2% 4.8% 3.9% 8.3% 7.2%
Sep.16 Dec.16 Mar.17 Jun.17 Sep.17
Figures in million AR$
36
Stable and diversified funding structure, based on
retail and SMEs customers
This mix provides a cheaper funding structure than most of our competitors.
Total DepositsFigures in million AR$ Deposits structure
YoY
+41.4%
7.11 7.32 7.81 7.51 7.43
Market Share %
91.905
114.622122.823 125.674 129.948
Current accounts
17%
Saving accounts
48%
Time deposits
31%
Others4%
22%
78%
Sight
accounts
65%
TD>1MM
TD<1MM
Basis points variations in comparison with the previous quarter
-65bp
-130bp
+23bp+171bp
Capital: adequate leves of solvency
14,8%13,8% 13,8%
13,1%
17,3%
14,8%
3Q16 4Q16 1Q17 2Q17 Post-capital raised 3Q17
The decrease in the capital ratio during the last two months is mainly due to a significantgrowth in the loans portfolio size.
8%
11.5%
Minimum Capital
Requirement
+3.5%
Additional
Buffer
(*) Capital ratio according to the Central Bank regulation
Capital ratio(*)3Q2017
Tier I
13.7%
Good performance of the net financial income, driven by a decrease in local
currency bills in branches and growth in activity.
Income from commissions continued to show positive development, the
quarter was affected by the impact of the reduction in merchant discount rate
implemented in April 2017, which will begin to regularize in the next quarter
through renegotiation of alliances.
Efficiency Ratio improved slightly, but stills remains well above historical
levels and the Bank targets. Coming quarters should bring further
improvement.
Results 3Q 2017
Net Financial
Income
AR$ 3,433 MM+12.0%
Main Figures $ and q/q
Adm. Expenses
AR$ 3,027MM+4.5%
Net Income *
AR$ 902,8 MM+115%
Ratios21.3%
ROE*
2.0%
ROA*
65.5%
EFFICIENCY
11.4%
NIM COVERAGE
39.3%
Net Income from
Services
AR$ 1,191 MM- 3.5% (**) Ratios as of 3Q 2017 annualized. Quarterly comparison considers net
income for 2Q 2017 without fiscal provison effect
(*) Quarterly comparison without considering the fiscal provision effect
+40 bp +39 bp +1013 bp-842 bp-66 bpq/q
Net financial income showed a positive performance during the quarter,
increasing 25.7% and 40.0% compared with the previous quarter and 3Q16,
respectively.
Net income from services showed a positive evolution, growing 31.1%
compared with the previous quarter. The period includes recurrent annual
income, realized during the quarter analyzed.
Efficiency Ratio improved significantly, as the result of both, higher income
and higher expenditure restraint.
Net Financial
Income
AR$ 3,970 MM+15.7%
Main Figures $ and q/q
Adm. Expenses
AR$ 3,156 MM+4.3%
Net Income *
AR$ 1,135 MM+25.7%
Ratios21.7%
ROE**
2.4%
ROA**
57.0%
EFFICIENCY
10.7%
NIM COVERAGE
49.5%
Net Income from
Services
AR$ 1,562 MM+31.1%
q/q
Although successful client acquisition strategy through digital channels is still adding short term pressure on results, as costs are registered upfront, third quarter has shown improvements and
benefits will be seen in coming quarters.
Net Interest Margin and NIM
Financial margin has shown a positive performance, mainly due to a higher volume of
intermediation with the private sector and the increase of own funds. Total NIM fell 66 b.p. in the
quarter due to the change in the mix, since dollar assets grew at a faster pace than pesos assets.
Net Financial
Income
241
458306
432
634
2.836
3.252 3.064
3.433
3.970
3Q16 4Q16 1Q17 2Q17 3Q17
Foreign exchange differences
Figures in million AR$
12,5% 11,7%11,4% 10,7%
14,5%12,9% 13,0% 12,7%
4Q16 1Q17 2Q17 3Q17
Total NIM without FX Total NIM with FX
Total NIM (AR$+USD)
Total NIM AR$
15,1%
14,5%14,2% 14,2%
4Q16 1Q17 2Q17 3Q17
Total NIM USD
2,0%1,8%
1,9%
2,2%
4Q16 1Q17 2Q17 3Q17
YoY
40%
Fees and ExpensesFigures in million AR$
2.241 2.399 2.482 2.486 2.938
941 1.322 1.248 1.295 1.376
3Q16 4Q16 1Q17 2Q17 3Q17
ServicesChargeexpense
Servicechargeincome
2.3732.861 2.898 3.027 3.156
3Q16 4Q16 1Q17 2Q17 3Q17
Net Income from
Services
Administrative
Expenses
Net income from services grew 31,1% q/q and 20,0% y/y. The quarter
includes recurrent annual income realized during the period. Disregarding
such effect, the variation amounts to 20.5%
Fees increased 18.2% q/q, whereas expenditures did so by 6.3%.
During the quarter, the income from services growth is mainly due to
higher commissions from credit cards, with consumptions increasing 8.7%
and gaining market share, and fees from deposit accounts, which also
showed a good performance.
Administrative expenses grew 4.3% q/q and 33,0% compared to
3Q16. As a result, the efficiency ratio reached a better performance,
improving 12.9% during last quarter.
Personnel expenses grew 2.5% q/q and 31.0% compared with 3Q16.
The period includes $80 mm provision corresponding to personnel
compensation commitments, which in 2016 impacted on the 4Q.
Without such provision, expenses would have fallen during the quarter
and increased 25% compared to 3Q16.
General expenses increased 6.5% q/q and 35.6% in comparison with
the third quarter of 2016, mainly due to a higher charges derived from
amortizations, taxes, advertising and promotions and rents.
YoY
20.0%YoY
33.0%
41
1.5621.1921.2341.0761.301
Main indicators
ROE * ROA *
Efficiency Coverage
36,6%31,5%
24,1%
10,1%
21,3% 21,7%
2014 2015 2016 1Q17 2Q17 3Q17
4,8%4,1%
2,8%
1,0%
2,0%2,5%
2014 2015 2016 1Q17 2Q17 3Q17
51,1% 50,2%57,0%
67,4% 65,5%
57,0%
2014 2015 2016 1Q 17 2Q 17 3Q17
59,9% 58,8%
45,3% 42,6% 39,3%49,5%
2014 2015 2016 1Q 17 2Q 17 3Q17
Administrative expenses/Net Financial Income + Net Income from
Services
Net Income from Services/Administrative Expenses
(*) 2Q17: ratios accumulated and annualized – without
considering income tax provision effect
42
06Annex
Figures in million $ 3Q-16 4Q-16 1Q-17* 2Q- 17* 3Q-17 ∆ Q/Q ∆ Y/Y
Net Financial Income 2,836 3,252 3,064 3,433 3,970 15.7% 40.0%
Provision for Loan Loses (226) (331) (324) (356) (503) 41.1% 122.2%
Net Income from Services 1,301 1,076 1,234 1,191 1,562 31.1% 20.0%
Administrative Expenses (2,373) (2,861) (2,898) (3,027) (3,156) 4.3% 33.0%
Operating Income 1,538 1,137 1,076 1,241 1,873 51.0% 21.8%
Income (Loss) from equity
investments20 17 20 155 118 -23.8% 487.2%
Income (Loss) from
Minority interest(24) (14) (28) (30) (18) -37.8% -25.6%
Other Income/Expenses (4) (142) (331) 17 (122) 89.6% n/a
Income Tax (596) (417) (317) (481) (717) 49.1% 20.3%
Net Income 933 582 420 903 1,135 25.5% 21.6%
BBVA Francés P&L Breakdown
(*) 1Q-17 and 2Q-17 non considering lncome tax provision effect44
BBVA Francés balance sheet structure
Figures in million $ 3Q-16 4Q-16 1Q-17 2Q-17 3Q-17 ∆ Q/Q ∆ Y/Y
Cash and Banks 30,296 48,226 41,149 37,048 27,947 -24.6% -7.8%
BCRA Bills & Notes 9,742 7,375 17,094 17,556 13,696 -22.0% 40.6%
Public sector assets 3.387 5,331 7,112 8,193 16,650 +103.2% +391.6%
Private Loans 71,103 78,791 82,912 89,518 111,676 +24.8% +56.9%
Others 16,362 11,992 36,061 20,100 30,053 +49.5% +83.7%
TOTAL ASSETS (*) 130,890 151,715 184,328 172,415 200,023 +16.0% +52.8%
Deposits 91,905 114,622 122,822 125,674 129,948 +3.4% +41.4%
Others 23,107 20,634 44,351 29,870 45,436 +52.1% +96.6%
TOTAL LIABILITIES 115,012 135,255 167,163 155,544 175,384 +12.8% +52.5%
TOTAL NET WORTH 15,878 16,460 17,155 16,872 24,639 +46.0% +55.2%
TOTAL LIABILITIES +
NET WORTH130,890 151,715 184,328 172,415 200,023 +16.0% +52.8%
45(*) Total Assets contain certain repo operations that are duplicated
oct-16 nov-16 dic-16 ene-17 feb-17 mar-17 abr-17 may-17 jun-17 jul-17 ago-17 sep-17 oct-17
FRAN GGAL BMA SUPV
ADR performance 100 points base as of September 1, 2016
(*) Market Cap as of October 31, 2017.
Average volume of the last three months (Aug-Oct 2017) – Source: Bloomberg
Mkt Cap (MM u$s)
Avg ADR volume (MM u$s)
Floating (*)
FRAN GGAL BMA
26.6% 36.1% 30%
4,501 7,833 8,427
9.4 25.4 24.3
Market Data (*)
46
SUPV
2,449
11.3
46.2%
(*) Without considering Anses ´s participation
Ratings
Rating Agency Instrument Rating Outlook
Fix SCR* Shares 1 Neutral
Negotiable Obligations Global Program
(U$S 750 million)AAA (Arg)
Subordinated Senior Debt AA+ (Arg)
Senior Debt Short Term A1+ (Arg)
Senior Debt Long Term AAA (Arg)
S&P Institutional Rating Long Term raAA Neutral
Institutional Rating Long Term raA-1+
Negotiable Obligations Global Program
(U$S 750 million)raAA Neutral
*In November 2013, Fitch Argentina sold 70% of its capital stock to a local investor group and changed its name to Fix Scr. This new group will be
responsible for the local credit rating. 47
07BBVA Group
BBVA in the world
€ 691billion in total assets
72millon customers
>30countries
8,374branches
31,214ATMs
132,019employees
South America
Argentina
Bolivia
Brazil
Chile
Colombia
Paraguay
Perú
Uruguay
Venezuela
North America
United States
México
Europe
Germany
Belgium
Spain
France
Holland
Italy
Luxembourg
Malta
Portugal
U.K.
Romanía
Russia
Switzerland
Turkey
Asia-Pacífic
Australia
China
EAU
Hong Kong
India
Indonesia
Japan
South Corea
Singapore
Taiwán
Data at the end of September 2017 49
39%
19%10%
14%
15%
3%
Mexico Spain USATurkey South America Resto Eurasia
19M 2017An important
contribution from
emerging markets
Leading franchises in all markets
Net atributtable profit – Breakdown€ million
Note: Spain includes the áreas Banking activity in Spain and Non Core Real Estate.
Figures excludes Corporate Center
€3,449 Mm
50
