Form 6-K

6-K 1 d393446d6k.htm FORM 6-K Form 6-K

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Issuer

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

of the Securities Exchange Act of 1934

For the month of May 2017

Commission File Number: 001-12568

BBVA French Bank S.A.

(Translation of registrant’s name into English)

Reconquista 199, 1006

Buenos Aires, Argentina

(Address of principal executive offices)

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

Form 20-F ☒ Form 40-F ☐

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

Yes ☐ No ☒

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

Yes ☐ No ☒

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

Yes ☐ No ☒

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

BBVA Banco Francés S.A.

TABLE OF CONTENTS


Item

1.		BBVA Francés reports consolidated first quarter earnings for fiscal year 2017.

LOGO

Buenos Aires, May 11, 2017 – BBVA Banco Francés S.A. (BBVA Francés) (NYSE: BFR.N; BCBA:

FRAN.BA; LATIBEX: BFR.LA) reports consolidated first quarter earnings for fiscal year 2017.

Highlights

•

BBVA Francés reached a net income of AR$ 1,605.8 million as of March 31, 2017, 175% above the previous quarter and up 37.8% compared to the same quarter of 2016. This result includes effects considered non-recurring, both, with positive and negative sign.

•

Net of these impacts, profit was 10.8% above last quarter and similar to the first quarter of 2016, reaching an average return on equity of 24.4% and an average return on assets of 2.5%,

•

The first quarter of the year shows a net positive result of AR$ 1,185.8 million due to the application of the inflation adjustment in calculating the 2016 income tax and a charge of AR$ 393.6 million corresponding to the regularization of the social security contributions rate used from December 2013 to March 2017.

•

The average balances of physical bills increased 60% compared to the previous quarter, representing more than twice the amount necessary for normal operations and generating a negative impact estimated at about AR$ 191 million.

•

The nominal appreciation of the peso generated AR$ 91 million loss due to revaluation of net foreign currency assets, while the service charge expenses reflected an additional charge of AR$ 61 million at the close of the campaign to attract new clients that began in the last quarter of 2016, which resulted in 28,000 new clients.

•

The effective rate for income tax for the first quarter of 2017 reached 43%, generating an impact of AR$ 59.2 million, consequence of fewer fiscal deductions for insolvency provisions.

•

Net financial income registered a negative variation of 5.8%, compared to the previous quarter while it grew 2.8% in comparison to the first quarter of 2016. If the physical bills and exchange rate effects mentioned are deducted, it grew 3.5% and 19.4%, respectively. The private business net interest margin grew 29.8% compared to one year ago.

•

Recurring net income from services increased 6.1% and 39.2% in comparison to the previous quarter and to the first quarter of 2016, respectively, while administrative expenses grew 1.3% and 38.3% in those periods.

•

Activity showed positive behavior considering the low seasonality of the first quarter. The private sector loan portfolio totaled AR$ 82.9 billion, growing 5.2% in the quarter and 40.2% in the last twelve months.

•

Total non-performing loan ratio (non-performing loans/total loans) was 0.84%, while the coverage ratio (provisions/non-performing loans) was 248.3% as of March 31, 2017. BBVA Francés maintains a leading position in the Argentine financial system in terms of asset quality.

•

Total deposits reached AR$ 122.8 billion, growing 7.2% in the quarter and 53.3% compared to March 2016, driven mainly by deposits in foreign currency, including those of the Tax Amnesty regime. Sight deposits represent 66% of the total deposits of the Bank and 57% of the deposits in pesos.

•

BBVA Francés maintains high levels of liquidity, as of March 31, 2017, liquid assets (Cash and due from banks plus Argentine Central Bank (BCRA) bills represented 47.4% of the Bank’s total deposits, this ratio is above 75% for the dollar balance.

•

The capital ratio reached 13.8% of weighted risk assets; with an excess of capital of AR$ 7.6 billion, which is 44.5% higher than the minimum regulatory requirements. Considering the additional buffer (3.5%), the excess of capital would amount to AR$ 2.8 billion.

•

At the Shareholders Meeting held on March 30, 2016, a cash dividends distribution of AR$ 911 million was approved. Such payment is now subject to authorization from the BCRA.

Other Events

•

In April, BBVA Francés official inaugurated the BBVA Tower, which represented an investment of approximately USD 250 million, demonstrating the Bank’s commitment to the country and its development. The new headquarters houses almost 2,000 employees, providing the necessary amenities in order to encourage more dynamic interaction. The building has 33 floors, of which 23 belong to BBVA, and it has the highest sustainability standards and LEED Gold (Leadership in Energy & Environmental Design) certification, one of the most demanding international sustainable construction certificates.

Regulatory Changes

•

On March 2, 2017 the BCRA through its Communication “A” 6195 reduced by two percentage points those coefficients higher than 2% in order to determine the minimum cash requirement in pesos.

•

Through a private agreement between the Chambers of Commerce, Banks and acquiring companies, fees on credit and debit cards were voluntary reduced since April 1. The fee for credit cards was reduced from 3% to 2.5% for 2017, and will gradually decrease each year to 2.35%, 2.15%, 2%, reaching 1.8% in 2021. Fees on debit card transactions were reduced from 1.5% to 1.2% for 2017, and then they decreased to 1.1%, 1.0%, 0.9%, reaching 0.8% in 2021. Simultaneously, the BCRA, through its Communication “A” 6212, established, as of April 1, a cap at the interchange fee of 2% and 1% for credit and debit cards, respectively, with a gradual decrease schedule for the next years.

- 2 -

Economic Environment


Main Macroeconomic figures		Quarter ended
Main Macroeconomic figures		03-31-17			12-31-16			09-30-16			06-30-16			03-31-16
GDP	var % y/y		—			-2.1	%		-3.7	%		-3.7	%		0.6	%
Inflation (1)	var % y/y		35.0	%		41.0	%		43.1	%		47.1	%		35.0	%
End of period	var % q/q		7.1	%		6.2	%		2.7	%		15.5	%		11.9	%
CER	Quarterly adjustment		7.2	%		4.5	%		7.4	%		9.5	%		10.5	%
Exchange Rate	Pesos x US$		15.38			15.85			15.26			14.92			14.58
Reserves	US$		50,522			38,772			29,902			30,507			29,572
Fiscal Balance	Primary - billion of $		(41,344	)		(133,937	)		(96,799	)		(66,876	)		(45,914	)
Trade Balance	US$ (billion)		(1,087	)		48			1,378			1,030			(342	)
Private Loans	Pesos		958,104			914,229			821,904			795,839			765,717
Private Loans	US$ (in US$)		10,325			9,069			8,147			6,333			4,002
Private Deposits	Pesos		1,168,047			1,148,144			1,044,610			1,004,369			932,705
Private Deposits	US$ (in US$)		23,355			22,458			13,206			11,962			11,834
Badlar interest rate	Weighted avg. quarterly		19.8	%		21.1	%		24.6	%		30.2	%		27.4	%

(1)

CPI-CABA

Economic activity, measured by the variation in real GDP, suffered a contraction of 2.3% in 2016, processing the relative price changes resulting from regularizing the economy.

In the first three months of the year, inflation, measured by the IPC-CABA [Buenos Aires Consumer Price Index) was 7.1%, with increases in Housing (15.5%) and Education (15.0%). The variation in comparison to the same period of last year was 35%.

The government made changes in the domestic public sector balance records. The Minister of the Treasury, Nicolás Dujovne, announced quarterly fiscal deficit goals for 2017 and also annual income, expenses, and debt goals through 2019.

A new methodology was also implemented designed to more accurately reflect the measurement of the deficit that completely excludes the calculation of BCRA rental income and public intra-sector debt interest. A greater income and expenses openness is also promoted along the same lines.

In line with what has been stipulated by the Government, there was a primary fiscal deficit of AR$ 41.3 billion in the first quarter of the year, 10% lower than the deficit for the same period of the previous year; the financial income, including interest, reached AR$ 70.6 billion, a deterioration of 9.4% from the first quarter of 2016.

In regards to foreign trade, the trade balance in the first quarter of 2017 was a deficit of USD 1.1 billion, greater than the also negative trade balance of USD 342 million recorded in the same period of 2016. This is the result, on the one hand, of exports that totaled USD 12.7 billion in the first quarter of 2017, 1.7% higher than the same period of the previous year and, on the other hand, the value of imports was recorded at USD 13.7 billion a 7.5% increase over the first quarter of 2016.

In the foreign exchange market, the peso appreciated by 3.0% since the end of 2016, from an exchange rate of AR$ 15.85 /USD to AR$ 15.38 /USD at the end of March, 2017.

International reserves as of March 31, 2017 totaled USD 50.5 billion, an increase of USD 11.8 billion compared to the 2016 year-end balance.

- 3 -

Presentation of Financial Information

•

Foreign currency balances as of March 31, 2017 have been translated into pesos at the reference exchange rate published by the BCRA at such date (AR$ 15.3818/ US$).

•

This press release contains unaudited financial information that consolidates all of the banking activities of BBVA Francés and its subsidiaries on a line-by-line basis. The Bank’s interest in the Consolidar Group – BBVA Consolidar Seguros S. A. and Consolidar AFJP (in liquidation)-, is shown as “Investments in other companies” (recorded under the equity method) and the corresponding results are included in “Income from Equity Investments”.

•

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

Disclaimer

This press release contains or may contain certain forward-looking statements within the meaning of the United States Securities Litigation Reform Act of 1995, including, among other things, concerning the prospects of the Argentine economy, BBVA Francés’ earnings, business plans, cost-reduction plans, and capitalization plan, and trends affecting BBVA Francés’ financial condition or results of operations. Any forward-looking statements included in this press release are based on current expectations and estimates, but actual results and events may differ materially from anticipated future results and events. Certain factors which could cause the actual results and events to differ materially from the expected results or events include: (1) changes in domestic or international stock market prices, exchange rates or interest rates; (2) macroeconomic, regulatory, political or governmental changes; (3) changes in the markets for BBVA Francés’ products and services; (4) increased competition; (5) changes in technology; or (6) changes in the financial condition, creditworthiness or solvency of the customers, debtors or counterparties of BBVA Francés. Additional factors that could cause the actual results or events to differ materially from the expected results or events are described in the reports filed by BBVA Francés with the United States Securities and Exchange Commission (“SEC”), including, but not limited to, BBVA Francés’ annual report on Form 20-F and exhibits thereto. BBVA Francés does not undertake to revise or update any of the information contained herein under any circumstances, including if at any moment following dissemination of such information it is no longer accurate or complete.

Financial Information


Condensed Income Statement (1)				Quarter ended												D% quarter ended 03-31-17 vs quarter ended
In thousands of $ except income per share, ADS	03-31-17			12-31-16			09-30-16			06-30-16			03-31-16			12-31-16			03-31-16
Net Financial Income		3,063,776			3,252,260			2,836,361			3,342,802			2,980,043			-5.8	%		2.8	%
Provision for loan losses		(323,969	)		(331,013	)		(226,335	)		(336,129	)		(161,351	)		-2.1	%		100.8	%
Net income from services		1,234,102			1,076,422			1,300,901			1,014,393			931,083			14.6	%		32.5	%
Administrative expenses		(2,897,619	)		(2,860,570	)		(2,373,439	)		(2,211,679	)		(2,095,807	)		1.3	%		38.3	%
Operating income		1,076,290			1,137,099			1,537,488			1,809,387			1,653,968			-5.3	%		-34.9	%
Income (Loss) from equity investments		19,491			17,083			20,132			102,183			44,802			14.1	%		-56.5	%
Income (Loss) from Minority interest		(27,853	)		(13,547	)		(24,753	)		(34,113	)		(39,994	)		105.6	%		-30.4	%
Other Income/Expenses		855,111			(141,517	)		(4,163	)		(27,480	)		56,471			704.2	%		1414.2	%
Income Tax / Minimum Presumed Tax		(317,269	)		(416,713	)		(595,779	)		(886,719	)		(550,163	)		-23.9	%		-42.3	%
Net income for the period		1,605,770			582,405			932,925			963,258			1,165,084			175.7	%		37.8	%
Net income per share (2)		2.99			1.08			1.74			1.79			2.17			175.7	%		37.8	%
Net income per ADS (3)		8.97			3.25			5.21			5.38			6.51			175.7	%		37.8	%

(1)	Exchange rate: AR$ 15.3818 Ps = 1 USD

(2)	Assumes 536,877,850 ordinary shares

(3)	Each ADS represents three ordinary shares

- 4 -


Main figures	Quarter ended															D% quarter ended 03-31-17 vs quarter ended
(in thousands of pesos)	03-31-17			12-31-16			09-30-16			06-30-16			03-31-16			12-31-16			03-31-16
ROA (Average Assets) (1)		3.9	%		1.6	%		2.8	%		3.1	%		4.1	%		137.0	%		-6.3	%
ROE (Average Shareholders’ Equity) (1)		38.7	%		14.3	%		24.0	%		25.9	%		32.7	%		171.1	%		18.6	%
NIM (1)(2)		11.7	%		12.5	%		12.3	%		14.9	%		12.4	%		-6.2	%		-5.6	%
Net fee income / Net operating Income (3)		28.7	%		24.9	%		31.4	%		23.3	%		23.8	%		15.5	%		20.6	%
Coverage ratio (4)		42.6	%		37.6	%		54.8	%		45.9	%		44.4	%		13.2	%		-4.1	%
Efficiency ratio (5)		67.4	%		66.1	%		57.4	%		50.8	%		53.6	%		2.0	%		25.8	%

(1)	Annualized.

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

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

(4)	Net income from services / Adm.Expenses

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

Net financial income


Net financial income	Quarter ended										D% quarter ended 03-31-17 vs quarter ended
(in thousands of pesos)	03-31-17		12-31-16		09-30-16		06-30-16		03-31-16		12-31-16			03-31-16
Financial Income		5,280,991		5,540,183		5,472,394		6,159,658		5,495,068		-4.7	%		-3.9	%
Income from financial intermediation		4,060,877		4,096,831		4,130,077		4,086,635		3,718,866		-0.9	%		9.2	%
CER adjustment		100,285		97,613		168,496		148,734		161,520		2.7	%		-37.9	%
Income Securities and short term inv.		593,345		807,994		805,340		1,516,966		989,209		-26.6	%		-40.0	%
Foreign exchange difference		306,384		458,312		240,758		333,214		369,257		-33.1	%		-17.0	%
Others		220,100		79,433		127,723		74,109		256,216		177.1	%		-14.1	%
Financial Expenses		-2,217,215		-2,287,923		-2,636,033		-2,816,856		-2,515,025		-3.1	%		-11.8	%
Net Financial Income		3,063,776		3,252,260		2,836,361		3,342,802		2,980,043		-5.8	%		2.8	%

Net financial income registered a 5.8% decrease in comparison to the previous quarter, while it grew 2.8% compared to the first quarter of 2016.

As previously mentioned, net financial income was affected by the negative impact generated by the increase in the stock of cash and the appreciation of the peso. Without considering these effects, the variations would be 3.5% and 19.4% for the periods mentioned, sustained mainly by the intermediation with the private sector which grew 29.8% compared to the same quarter of 2016, as a result of the significant share of demand accounts over total deposits.

- 5 -


Interest-Earning Assets & Interest-Bearing	Quarter ended
Liabilities $ + USD	03-31-17						12-31-16						03-31-16
(Average in thousand of AR$)	Capital			Rate			Capital			Rate			Capital			Rate
Interest-Earning Assets		96,037,742			21.1	%		89,256,623			22.9	%		78,627,368			25.2	%
Public Bonds		13,077,398			20.7	%		13,856,830			25.3	%		17,970,943			24.5	%
Loans		75,428,264			21.3	%		71,294,599			22.7	%		57,445,092			25.5	%
Public Sector		28,260			35.6	%		84,345			32.1	%		63,256			57.8	%
Private Sector		75,400,003			21.3	%		71,210,254			22.7	%		57,381,836			25.5	%
Other interest-earning assets		7,532,081			19.3	%		4,105,194			17.6	%		3,211,333			22.5	%
Interest-Bearing Liabilities		80,036,663			8.7	%		71,140,219			10.2	%		57,141,347			14.2	%
Saving Accounts		38,104,269			0.1	%		31,694,635			0.1	%		21,037,948			0.2	%
Time Deposits		38,516,253			16.2	%		35,706,086			18.0	%		32,672,302			22.6	%
Current accounts with interest		389,255			15.4	%		—			—			—			—
Debt Securities		1,670,383			23.4	%		1,777,296			0			1,543,942			0
Other interest-bearing liabilities		1,356,503			16.9	%		1,962,202			16.1	%		1,887,155			11.7	%
NIM		11.7	%					12.5	%					12.4	%

The NIM ratio as of March 31, 2017, was 11.7%, reflecting a decline of 77 basis points in the quarter, which is explained by two factors: the increase in activity in dollars and the decline of the indicator in pesos, caused exclusively by the greater stock of cash.

It is important to emphasize that the private spread continues to show good behavior, although there is a fall in the yields on credits in pesos, in line with lower inflation, the average liabilities interest rate declining at a faster pace.

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


Interest-Earning Assets & Interest-Bearing	Quarter ended
Liabilities $	03-31-17						12-31-16						03-31-16
(Average in thousand of AR$)	Capital			Rate			Capital			Rate			Capital			Rate
Interest-Earning Assets		79,501,664			24.9	%		76,607,074			26.1	%		70,835,437			27.5	%
Public Bonds		10,195,238			25.7	%		13,417,210			26.0	%		15,951,062			27.4	%
Loans		63,436,043			24.8	%		60,686,387			26.1	%		52,337,622			27.5	%
Public Sector		28,260			35.6	%		84,345			32.1	%		63,256			57.8	%
Private Sector		63,407,783			24.8	%		60,602,042			26.1	%		52,274,366			27.5	%
Other interest-earning assets		5,870,383			24.6	%		2,503,477			28.5	%		2,546,753			28.5	%
Interest-Bearing Liabilities		54,803,078			12.6	%		50,827,045			14.1	%		43,064,848			18.4	%
Saving Accounts		19,404,565			0.2	%		17,566,687			0.2	%		13,536,007			0.2	%
Time Deposits		32,364,738			19.2	%		30,312,244			21.1	%		27,468,933			26.5	%
Current accounts with interest		389,255			15.4	%		0			0.0	%		0			0.0	%
Debt Securities		1,670,383			23.4	%		1,777,296			0			1,543,942			0
Other interest-bearing liabilities		974,137			21.8	%		1,170,818			24.1	%		515,966			28.0	%
NIM $		14.5	%					15.1	%					14.3	%

Interest-Earning Assets & Interest-Bearing							Quarter ended
Liabilities USD	03-31-17						12-31-16						03-31-16
(Average in thousand of AR$)	Capital			Rate			Capital			Rate			Capital			Rate
Interest-Earning Assets		16,612,559			2.6	%		12,725,323			3.2	%		7,863,966			3.3	%
Public Bonds		2,882,160			3.0	%		439,619			2.6	%		2,019,881			1.5	%
Loans		11,992,220			2.8	%		10,608,212			3.6	%		5,107,470			4.4	%
Other interest-earning assets		1,738,179			0.5	%		1,677,492			0.5	%		736,615			0.1	%
Interest-Bearing Liabilities		25,233,584			0.2	%		20,313,174			0.3	%		14,076,499			1.4	%
NIM USD		1.8	%					2.0	%					-0.8	%

- 6 -

Income from Public and Private Securities


Income from securities and short-term investments	Quarter ended													D% quarter ended 03-31-17 vs quarter ended
(in thousands of pesos)	03-31-17		12-31-16			09-30-16			06-30-16		03-31-16			12-31-16			03-31-16
Income Securities and short term inv.		592,264		802,707			794,614			1,507,146		980,137			-26.2	%		-39.6	%
Income Interest Margin		445,641		660,913			871,502			1,073,706		1,059,001			-32.6	%		-57.9	%
Holdings booked at fair value		68,489		84,963			91,067			173,678		137,815			-19.4	%		-50.3	%
Holdings booked at amortized cost		8,397		1,746			453			156		—			380.9	%		n/a
Bills and Notes from the Central Bank		368,754		574,204			779,982			899,872		921,186			-35.8	%		-60.0	%
Income Financial Operations		114,066		87,204			-105,021			406,697		-96,872			30.8	%		-217.7	%
Holdings booked at fair value		95,343		76,294			(105,005	)		307,891		(157,343	)		25.0	%		-160.6	%
Holdings booked at amortized cost		115		(223	)		147			41		37,774			-151.5	%		n/a
Bills and Notes from the Central Bank		18,608		11,132			(162	)		98,764		22,696			67.2	%		-18.0	%
Other fixed income securities		32,557		54,590			28,133			26,743		18,008			-40.4	%		80.8	%
CER adjustment		100,285		97,614			168,496			148,734		161,520			2.7	%		-37.9	%

The financial income generated by public sector assets fell 26.1% in the quarter and 39.6% compared to the previous year, mainly due to the smaller average portfolio in pesos: 24% and 36%, respectively.

Net Income from Services


Net income from services	Quarter ended															D% quarter ended 03-31-17 vs quarter ended
(in thousands of pesos)	03-31-17			12-31-16			09-30-16			06-30-16			03-31-16			12-31-16			03-31-16
Net income from services		1,234,102			1,076,422			1,300,901			1,014,393			931,083			14.6	%		32.5	%
Service charge income		2,481,746			2,398,519			2,241,382			1,838,242			1,709,313			3.5	%		45.2	%
Service charges on deposits accounts		498,412			430,468			392,719			316,011			338,874			15.8	%		47.1	%
Credit cards and operations		987,996			1,000,246			998,318			863,112			699,059			-1.2	%		41.3	%
Insurance		168,532			170,554			162,817			152,951			146,228			-1.2	%		15.3	%
Capital markets and securities activities		16,936			16,533			25,547			15,091			6,695			2.4	%		153.0	%
Fees related to foreign trade		67,389			70,283			64,812			59,085			58,033			-4.1	%		16.1	%
Safety deposit box		74,202			74,569			65,730			52,497			52,529			-0.5	%		41.3	%
Services of collection		42,022			39,283			35,549			32,785			28,480			7.0	%		47.5	%
Generated by subsidiaries		298,607			205,153			129,140			108,929			99,606			45.6	%		199.8	%
Other fees		327,651			391,430			366,750			237,780			279,809			-16.3	%		17.1	%
Services Charge expense		(1,247,644	)		(1,322,097	)		(940,481	)		(823,849	)		(778,230	)		-5.6	%		60.3	%

In the first quarter of 2017, net income from services grew 14.6% in comparison to the previous quarter and 32.5% compared to the first quarter of 2016, while in recurring terms they increased 6.1% and 39.2%, respectively.

Income from services increased 3.5% compared to the previous quarter and 45.2% in comparison to the same quarter of 2016, driven mainly by income originating in greater credit card consumption, higher activity and the increased prices for deposit accounts and higher commissions generated by subsidiaries.

Service charge expenses fell 5.6% in comparison to the previous quarter, while they increased 60.3% compared to the first quarter of 2016. The annual increase is explained by higher commissions paid for the LATAM Pass kilometers program, which includes the campaign for attracting clients and promotions for credit card purchases and by insurances, while the quarterly variation also registers lower charges mainly related to the campaign mentioned, which had its full impact in the preceding quarter and ended in this first quarter. It generated an increase of more than 28,000 new clients.

- 7 -

Administrative Expenses


Administrative expenses	Quarter ended															D% quarter ended 03-31-17 vs quarter ended
(in thousands of pesos)	03-31-17			12-31-16			09-30-16			06-30-16			03-31-16			12-31-16			03-31-16
Administrative expenses		(2,897,619	)		(2,860,570	)		(2,373,439	)		(2,211,679	)		(2,095,807	)		1.3	%		38.3	%
Personnel expenses		(1,635,877	)		(1,694,758	)		(1,335,778	)		(1,304,321	)		(1,219,519	)		-3.5	%		34.1	%
Electricity and Communications		(52,036	)		(59,685	)		(59,459	)		(45,586	)		(38,972	)		-12.8	%		33.5	%
Advertising and Promotion		(82,525	)		(106,078	)		(102,929	)		(100,810	)		(67,952	)		-22.2	%		21.4	%
Fees and external administrative services		(49,289	)		(45,649	)		(45,089	)		(33,306	)		(33,323	)		8.0	%		47.9	%
Taxes		(279,474	)		(265,956	)		(237,145	)		(211,650	)		(198,595	)		5.1	%		40.7	%
Organization and development expenses		(24,846	)		(20,555	)		(19,448	)		(19,486	)		(18,926	)		20.9	%		31.3	%
Amortizations		(87,628	)		(73,633	)		(62,980	)		(55,658	)		(54,142	)		19.0	%		61.8	%
Rents		(112,106	)		(108,211	)		(93,700	)		(95,365	)		(94,632	)		3.6	%		18.5	%
Maintainance, conservation and repairs		(134,038	)		(104,528	)		(85,485	)		(60,417	)		(98,556	)		28.2	%		36.0	%
Security Service		(71,101	)		(66,610	)		(68,533	)		(56,649	)		(53,817	)		6.7	%		32.1	%
Carriage of valuables		(164,900	)		(145,398	)		(118,129	)		(85,672	)		(81,693	)		13.4	%		101.9	%
Other		(203,799	)		(169,509	)		(144,764	)		(142,759	)		(135,680	)		20.2	%		50.2	%


Total Employees		6,219			6,265			6,114			5,985			5,884			-0.7	%		5.7	%

Total Branches		252			251			251			251			251			0.4	%		0.4	%

Administrative expenses increased 1.3% in the last three months and 38.3% in comparison with the same quarter of 2016.

In the quarterly comparison, personnel expenses registered a decline of 3.5%, since the payment of the fixed amount, according to the agreement and year-end compensation, included in the previous quarter, compensate for the salary increase applied starting in 2017. Meanwhile, such expenses showed an increase of 34.1% compared to the same quarter of 2016, mainly due to the salary increase, as well as 6% increase in the number of employees.

General expenses increased 8.2% over the previous quarter and 44% year over year.

Expenses for carriage of cash showed variations above the average, both during the quarter and compared to the first quarter of 2016. Meanwhile, amortizations grew due to a greater investment in technology and maintenance costs due to the move to a new corporate headquarters.

Other Income / Expenses

The Other Income / Expenses line item registered a gain of AR$ 885.1 million in the first quarter of 2017, including a net income of AR$ 1,185.8 million due to the application of the inflation adjustment in calculating the 2016 income tax and a charge of AR$ 393.6 million corresponding to the regularization of the social security charges rate used from December 2013 to March 2017.

•

Income tax

As has already been mentioned, BBVA Francés decided to determine the income tax for the 2016 fiscal year, ending in May 2017, considering the effects of inflation. At the same time, a declarative action of certainty will be presented for the purposes mentioned. There are judicial precedents that support the position taken by the Bank.

•

Social Security Contributions

In December 2013, BBVA Francés informed the Federal Administration of Public Revenues (AFIP) that, under Article 2 of point b) of Decree No. (PEN) 814/01 and Article 1 of Law 22,016, the Bank would change to applying the rate of 17% instead of 21% for payment of social security contributions.

- 8 -

The standard establishes this rate for corporations with simple government share participation by Law No. 19,550. The Argentinean government has held shares in BBVA Francés through the Sustainability Guarantee Fund (Fondo de Garantía de Sustentabilidad) since the nationalization of AFJP in 2008.

Having become aware of certain precedents where the AFIP has argued for rejecting the 17% rate, the Bank has decided to regularize the situation up to March 2017, adhering, for the period from December 2013 to May 2016 to the facility established by RG 3920/2016, under Law 27,260.

Income from Equity Investments

Income from equity investments sets forth net income from related companies that are not consolidated. During the first quarter of 2017, a profit of AR$ 19.5 million was recorded, principally due to the stake held in BBVA Seguros.

Balance and activity

Loan Portfolio


Net loans	Quarter ended															D% quarter ended 03-31-17 vs quarter ended
(in thousands of pesos)	03-31-17			12-31-16			09-30-16			06-30-16			03-31-16			12-31-16			03-31-16
Private & Financial sector loans in $		68,429,094			66,472,453			60,724,382			57,421,059			55,248,841			2.9	%		23.9	%
Advances		9,463,160			9,540,668			10,783,767			10,090,439			8,173,758			-0.8	%		15.8	%
Discounted and purchased notes		9,227,187			9,810,847			9,267,218			7,924,229			7,539,725			-5.9	%		22.4	%
Consumer Mortgages		1,892,840			1,889,443			1,866,569			1,992,813			1,988,051			0.2	%		-4.8	%
Car secured loans		6,368,608			5,628,320			5,087,540			4,563,281			4,493,535			13.2	%		41.7	%
Personal loans		10,522,971			9,368,939			8,172,953			7,582,330			7,428,791			12.3	%		41.7	%
Credit cards		21,775,867			21,539,673			18,675,353			18,307,405			17,362,387			1.1	%		25.4	%
Loans to financial sector		1,739,275			1,715,873			1,697,297			1,749,174			1,367,563			1.4	%		27.2	%
Other loans		8,200,489			7,512,590			5,605,681			5,450,379			7,005,698			9.2	%		17.1	%
Unaccrued interest		(315,649	)		(329,346	)		(299,131	)		(207,673	)		(212,823	)		-4.2	%		48.3	%
Adj. & accrued int. & exchange diff. receivable		1,164,083			1,286,851			1,270,412			1,293,985			1,241,172			-9.5	%		-6.2	%
Less: Allowance for loan losses		(1,609,737	)		(1,491,405	)		(1,403,277	)		(1,325,303	)		(1,139,016	)		7.9	%		41.3	%
Private & Financial sector loans in FX		14,482,355			12,318,649			10,378,884			8,425,260			3,885,726			17.6	%		272.7	%
Advances		7,233			5,897			6,137			7,981			21,276			22.7	%		-66.0	%
Discounted and purchased notes		858,646			1,085,875			1,206,288			672,635			1,439,809			-20.9	%		-40.4	%
Credit cards		1,301,292			981,170			1,023,339			1,113,350			813,891			32.6	%		59.9	%
Loans to financial sector		127,133			130,914			151,183			73			31			n/a			n/a
Other loans		12,336,206			10,241,540			8,098,739			6,719,772			1,652,894			20.5	%		646.3	%
Less: Allowance for loan losses		(148,155	)		(126,747	)		(106,802	)		(88,509	)		(42,175	)		16.9	%		251.3	%
Total Private Loans		82,911,449			78,791,102			71,103,266			65,846,319			59,134,567			5.2	%		40.2	%
Loans to public sector in $		156			98,819			93,336			83,654			74,853			-99.8	%		-99.8	%
Net Total Loans		82,911,605			78,889,938			71,196,620			65,929,992			59,209,440			5.1	%		40.0	%

The private sector loan portfolio totaled AR$ 82.9 billion, growing 5.1% in the quarter and 40% compared to the first quarter of 2016.

In the last twelve months, loans denominated in pesos increased 23.9%, while those denominated in foreign currency did so at a faster rate (272.7%), with a larger volume of placements in foreign trade operations as a consequence of the release of the restrictions on the purchase of foreign currency and the elimination of the import restrictions.

During the year, consumer loans registered a growth of 30.5%, both personal loans and car loans grew 41.7%, and credit cards did at a slower pace, similar to the behavior seen in the last quarter. Commercial loans grew 5% in the quarter and 55.2% in the last twelve months.

- 9 -

Total Public Sector Exposure


Public and Private Sector Exposure	Quarter ended															D% quarter ended 03-31-17 vs quarter ended
(in thousands of pesos)	03-31-17			12-31-16			09-30-16			06-30-16			03-31-16			12-31-16			03-31-16
Public Sector - National Government		6,889,933			5,276,924			3,385,701			4,363,302			4,089,977			30.6	%		68.5	%
Public Sector Loans		156			98,819			93,336			83,654			74,853			-99.8	%		-99.8	%

Total bond portfolio		6,889,994			5,178,318			3,292,580			4,279,865			4,015,342			33.1	%		71.6	%

Holdings book at fair value		5,646,590			4,274,229			3,291,490			4,241,363			4,015,178			32.1	%		40.6	%
Holdings book at amortized cost		1,243,404			904,089			1,090			38,502			164			37.5	%		n/a
Allowances		(217	)		(213	)		(215	)		(217	)		(218	)		1.9	%		-0.5	%
Bills and Notes from Central Bank		7,200,514			7,310,231			9,437,491			11,557,767			12,321,088			-1.5	%		-41.6	%

Total exposure to the Public		14,090,447			12,587,155			12,823,192			15,921,069			16,411,065			11.9	%		-14.1	%

Private Debt		471,796			479,106			391,349			268,938			343,740			-1.5	%		37.3	%

Total exposure to the Pub and Priv Sector		14,562,243			13,066,261			13,214,541			16,190,007			16,754,805			11.4	%		-13.1	%

Portfolio Received for Repos		9,893,778			64,872			304,706			5,376,422			981,870			n/a			n/a
Public Bonds		—			—			—			—			—			n/a			n/a
BCRA Instruments		9,893,778			64,872			304,706			5,376,422			981,870			n/a			n/a

Exposure to the public sector’s National Government registered an increase of 11.9% compared to the previous quarter, but decreased 14.1% in the last twelve months.

The portfolio of public securities grew 33.1% over the previous quarter and 71.6% in the last twelve months, mainly due to a larger placement in Treasury Bills denominated in dollars, reducing the holdings of public securities in pesos.

The Bank’s portfolio of BCRA Bills declined both in comparison to the preceding quarter and the first quarter of 2016. The changes in the implementation of monetary policy resulted in a greater allocation of liquidity in repo-transactions instead of bills.

On March 31, 2017, the public sector National Government debt represented 3.7% of the Bank’s assets, while BCRA’s Bills reached 3.9%.

Asset Quality


Asset quality ratios	Quarter ended															D% quarter ended 03-31-17 vs quarter ended
(in thousands of pesos)	03-31-17			12-31-16			09-30-16			06-30-16			03-31-16			12-31-16			03-31-16
Non-performing loans (1)		707,907			616,075			600,139			570,472			416,402			14.9	%		70.0	%
Allowance for loan losses		(1,757,892	)		(1,618,152	)		(1,510,079	)		(1,413,812	)		(1,181,191	)		8.6	%		48.8	%
Non-performing loans/net total loans		0.84	%		0.77	%		0.83	%		0.85	%		0.69	%		9.3	%		21.3	%
Non-performing priv. loans/net priv. loans		0.84	%		0.77	%		0.83	%		0.85	%		0.69	%		9.1	%		21.1	%
Allowance for loan losses/non-performing		248.32	%		262.66	%		251.62	%		247.83	%		283.67	%		-5.5	%		-12.5	%
Allowance for loan losses/net total loans		2.08	%		2.01	%		2.08	%		2.10	%		1.96	%		3.3	%		6.1	%

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

BBVA Francés maintains its leading position in terms of risks management. The asset quality ratio (Non-performing loans/Total loans) was 0.84% as of March 31, 2017, with a coverage ratio (provisions/non-performing loans) of 248.32%.

- 10 -

The NPL ratio registered an increase over both the previous quarter and the same quarter of 2016 of 7 and 15 basis points, respectively, as a consequence of higher non-performing loans as well as an increase in the performing portfolio.

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


																D% quarter ended 03-31-17 vs
Evolution of provisions	Quarter ended															quarter ended
(in thousands of pesos)	03-31-17			12-31-16			09-30-16			06-30-16			03-31-16			12-31-16			03-31-16
Balance at the beginning of the quarter		1,626,924			1,518,843			1,421,720			1,188,758			1,119,687			7.1	%		45.3	%
Increase/decrease		323,969			331,013			226,335			336,129			161,351			-2.1	%		100.8	%
Increase/decrease-Foreign exchange diff.		(4,188	)		4,630			2,374			2,363			5,318			-190.5	%		178.8	%
Applications / Reversals		(181,574	)		(227,562	)		(131,586	)		(105,530	)		(97,598	)		-20.2	%		86.0	%
Balance at the end of the quarter		1,765,131			1,626,924			1,518,843			1,421,720			1,188,758			8.5	%		48.5	%

Deposits


Total deposits	Quarter ended										D% quarter ended 03-31-17 vs quarter ended
(in thousands of pesos)	03-31-17		12-31-16		09-30-16		06-30-16		03-31-16		12-31-16			03-31-16
Deposits $ denominated		82,248,799		74,902,584		70,139,742		73,740,949		67,539,838		9.8	%		21.8	%
Current accounts		21,484,467		21,419,738		19,132,845		22,753,131		18,753,066		0.3	%		14.6	%
Saving accounts		23,190,831		21,273,125		17,365,933		17,453,110		18,257,425		9.0	%		27.0	%
Time deposits		35,197,959		30,079,381		31,865,941		31,944,736		28,965,398		17.0	%		21.5	%
Peso denominated		35,001,533		30,076,548		31,863,676		31,943,528		28,964,272		16.4	%		20.8	%
CER adjusted time deposits		196,426		2,833		2,265		1,208		1,126		n/a			n/a
Investment Accounts		85,194		85,194		85,091		85,591		5,586		0.0	%		n/a
Other		2,290,348		2,045,146		1,689,932		1,504,381		1,558,363		12.0	%		47.0	%
Deposits FX denominated		40,573,257		39,719,184		21,765,448		19,086,318		12,561,577		2.2	%		223.0	%
Current accounts		89,817		782,954		848,591		1,578,285		608,214		-88.5	%		-85.2	%
Saving accounts		23,779,226		21,318,030		14,956,855		12,146,478		7,480,140		11.5	%		217.9	%
Time deposits		5,961,593		6,220,811		5,200,667		4,962,250		4,189,759		-4.2	%		42.3	%
Other		10,742,621		11,397,389		759,335		399,305		283,464		-5.7	%		n/a

Total deposits		122,822,056		114,621,768		91,905,190		92,827,267		80,101,415		7.2	%		53.3	%

Total deposits reached AR$ 122.8 billion, recording increases of 7.2% and 53.3% compared to the previous quarter and the first quarter of 2016, respectively.

During the year, sight accounts increased 52% while time deposits grew 24.1%.

In terms of currency, deposits in pesos grew 21.8% in the last twelve months, with transactional deposits increasing 20% and time deposits 21.5%, while those denominated in foreign currency increased significantly in comparison to the two quarters under analysis, mainly as a result of the implementation of the Tax Amnesty regime.

At the end of March 2017, deposits in foreign currency reached AR$ 40.6 billion (equivalent to USD R$ 2.6 billion), representing 33% of the Bank’s total deposits.

- 11 -

Other funding sources


Other funding sources	Quarter ended										D% quarter ended 03-31-17 vs quarter ended
(in thousands of pesos)	03-31-17		12-31-16		09-30-16		06-30-16		03-31-16		12-31-16			03-31-16
Lines from other banks		1,435,605		1,502,786		1,875,463		1,076,653		1,485,135		-4.5	%		-3.3	%
Senior Bonds		2,056,274		2,211,078		2,093,095		1,583,253		1,608,592		-7.0	%		27.8	%

Total other funding sources		3,491,879		3,713,864		3,968,558		2,659,906		3,093,727		-6.0	%		12.9	%

Capitalization


Capitalization	Quarter ended										D% quarter ended 03-31-17 vs quarter ended
(in thousands of pesos)	03-31-17		12-31-16		09-30-16		06-30-16		03-31-16		12-31-16			03-31-16
Capital Stock		536,878		536,878		536,878		536,878		536,878		0.0	%		0.0	%
Issuance premiums		182,511		182,511		182,511		182,511		182,511		0.0	%		0.0	%
Adjustments to stockholders equity		312,979		312,979		312,979		312,979		312,979		0.0	%		0.0	%
Subtotal		1,032,368		1,032,368		1,032,368		1,032,368		1,032,368		0.0	%		0.0	%
Reserves on Profits		14,516,667		11,783,995		11,783,995		11,783,995		8,899,508		23.2	%		63.1	%
Unrealized valuation difference		1,605,770		3,643,672		3,061,267		2,128,342		4,949,571		-55.9	%		-67.6	%

Total stockholders’ equity		17,154,805		16,460,035		15,877,630		14,944,705		14,881,447		4.2	%		15.3	%

Total Shareholders’ Equity totaled AR$ 17.2 billion as of March 31, 2017, while the excess over the BCRA minimum capital requirements was AR$ 7.6 billion. Considering the conservation buffer (3.5%), excess capital would amount to AR$ 2.8 billion. The capital ratio for the same period was 13.8% of assets adjusted to risk.

- 12 -


Central Bank Requirements	Quarter ended															D% quarter ended 03-31-17 vs quarter ended
(in thousands of pesos)	03-31-17			12-31-16			09-30-16			06-30-16			03-31-16			12-31-16			03-31-16
CB Minimum Capital Requirements		11,206,375			10,577,441			9,406,443			8,408,006			7,813,073			5.9	%		43.4	%
CB Minimum Capital Requirements(a,b)		11,206,375			10,321,905			9,225,447			8,231,916			7,682,943			8.6	%		45.9	%
Increase in capital req. related to custody		—			255,536			180,996			176,090			130,130			-100.0	%		-100.0	%
a) CB Minimum Capital Requirements					10,321,905			9,225,447			8,231,916			7,682,943			-100.0	%		-100.0	%
Allocated to Asset at Risk		8,785,277			7,926,163			7,017,244			6,066,448			5,769,780			10.8	%		52.3	%
Market Risk		270,773			291,744			211,525			297,602			162,912			-7.2	%		66.2	%
Operational Risk		2,150,325			2,103,998			1,996,678			1,867,866			1,750,251			2.2	%		22.9	%

b) Min. Cap. required for the G.F.S. of the Pas-as-you-go System managed by the Argentine Republic		—			1,022,144			723,985			704,360			520,520			-100.0	%		-100.0	%
1% of the securities in custody and book-entry notes		—			1,022,144			723,985			704,360			520,520			-100.0	%		-100.0	%
Bank Capital		18,378,878			17,420,859			16,694,008			15,669,000			15,516,734			5.5	%		18.4	%
Ordinary Capital Level 1		17,674,906			16,698,101			16,056,616			15,086,805			14,984,490			5.8	%		18.0	%
Deductions Ordinary Capital Level 1		(465,878	)		(390,238	)		(360,327	)		(337,279	)		(311,162	)		19.4	%		49.7	%
Capital Level 2		1,169,850			1,112,996			997,719			919,474			843,406			5.1	%		38.7	%
Excess over Required Capital		7,172,503			6,843,418			7,287,565			7,260,994			7,703,661			4.8	%		-6.9	%
Capital Ratio (Central Bank rules)		13.8	%		13.8	%		14.8	%		15.6	%		16.5	%		-0.3	%		-16.7	%
Excess over Required Capital as a % of Shareholders’ Equity		44.5	%		41.6	%		45.9	%		48.6	%		51.8	%		7.1	%		-14.0	%

- 13 -

Conference Call

A conference call to discuss quarter earnings will be held on Friday, May 12, 2017, at 11:00 am New York time – 12:00 pm Buenos Aires time. If you are interested in participating, please dial

0800-444-2930 (within Argentina)

+ 1-877-317-6776 (within US)

+ 1 412 317 6776 (within rest of the countries)

Conference ID: BBVA.

To access the webcast:

http://webcast.engage-x.com/Cover.aspx?Platformld=pjr19VuegC4AAtUCa0U1nQ%3D%3D

Link to view Q&A:

http://cw4.services.choruscall.com/contexweb/ViewQA/loginSortQA.html

Access code: 10106327

This conference will be recorded. To ask for a digital replay, please dial:

+ 1 877 344 7529 (within U.S.)

+ 1 412 317 0088 (within the rest of the countries)

The replay will be available until May 24, 2017.

Access code: 10106327

Internet

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

www.bbvafrances.com.ar

Contacts

Cecilia Acuña

Investor Relations

(5411) 4341-5036

ceciliaviviana.acuna@bbva.com

Diego Cesarini

Financial Management and Investor Relations

dcesarini@bbva.com

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

BALANCE SHEET (in thousands of pesos)


	03-31-17			12-31-16			09-30-16			06-30-16			03-31-16
Cash and due from banks		41,149,362			48,226,105			30,296,084			26,524,315			23,414,132
Government and Private Securities		24,205,939			12,706,389			13,128,861			21,279,564			17,448,966
Holdings booked at fair value		5,646,590			4,274,229			3,291,490			4,241,363			4,015,178
Holdings booked at amortized cost		—			—			—			—			—
Reverse repo		1,243,404			904,089			1,090			38,502			164
Listed Private Securities		221,870			153,181			94,299			65,726			130,884
Bills and Notes from the Central Bank		17,094,292			7,375,103			9,742,197			16,934,190			13,302,958
Less: Allowances		(217	)		(213	)		(215	)		(217	)		(218	)
Loans		82,911,605			78,889,921			71,196,602			65,929,973			59,209,420
Loans to the private & financial sector		82,911,449			78,791,102			71,103,266			65,846,319			59,134,567
Advances		9,470,393			9,546,565			10,789,904			10,098,420			8,195,034
Discounted and purchased notes		10,085,833			10,896,722			10,473,506			8,596,864			8,979,534
Secured with mortgages		1,892,840			1,889,443			1,866,569			1,992,813			1,988,051
Car secured loans		6,368,608			5,628,320			5,087,540			4,563,281			4,493,535
Personal loans		10,522,971			9,368,939			8,172,953			7,582,330			7,428,791
Credit cards		23,077,159			22,520,843			19,698,692			19,420,755			18,176,278
Loans to financial sector		1,866,408			1,846,787			1,848,480			1,749,247			1,367,594
Other loans		20,536,695			17,754,130			13,704,420			12,170,151			8,658,592
Less: Unaccrued interest		(315,649	)		(329,346	)		(299,131	)		(207,715	)		(212,823	)
Plus: Interest & FX differences receivable		1,164,083			1,286,851			1,270,412			1,293,985			1,241,172
Less: Allowance for loan losses		(1,757,892	)		(1,618,152	)		(1,510,079	)		(1,413,812	)		(1,181,191	)
Public Sector loans		156			98,819			93,336			83,654			74,853
Principal		155			8,786			8,895			8,772			8,734
Plus: Interest & FX differences receivable		1			90,033			84,441			74,882			66,119
Other banking receivables		26,190,719			2,427,906			7,890,155			9,659,883			6,753,374
Repurchase agreements		9,784,973			—			305,269			5,084,968			982,677
Unlisted private securities		249,926			325,925			297,050			203,212			212,856
Other banking receivables		16,163,059			2,110,753			7,296,600			4,379,611			5,565,408
Less: provisions		(7,239	)		(8,772	)		(8,764	)		(7,908	)		(7,567	)
Investments in other companies		539,825			510,878			499,226			473,517			426,278
Intangible assets		331,419			315,811			286,330			272,423			259,976
Goodwill		3,386			3,476			3,566			—			—
Organization and development charges		328,033			312,335			282,764			272,423			259,976
Other assets		8,999,121			8,638,393			7,592,656			7,405,309			7,762,404

Total Assets		184,327,990			151,715,403			130,889,914			131,544,984			115,274,550

Deposits		122,822,056			114,621,768			91,905,190			92,827,267			80,101,415
Current accounts		21,574,284			22,202,692			19,981,436			24,331,416			19,361,280
Saving accounts		46,970,057			42,591,155			32,322,788			29,599,588			25,737,565
Time deposits		41,159,552			36,300,192			37,066,608			36,906,986			33,155,157
Investment Accounts		85,194			85,194			85,091			85,591			5,586
Rescheduled deposits CEDROS		1,951			1,959			2,224			2,224			2,234
Other deposits		13,031,018			13,440,576			2,447,043			1,901,462			1,839,593
Other banking Liabilities		37,891,164			13,785,069			17,131,159			17,439,924			15,015,019
Other provisions		1,317,224			1,375,154			1,169,099			1,113,625			1,021,902
Other contingencies		1,316,606			1,374,573			1,168,415			1,112,968			1,021,206
Guarantees		618			581			684			657			696
Other liabilities		4,607,529			4,856,020			4,423,620			4,908,410			3,888,356
Minority interest		535,212			617,357			383,216			311,053			366,411

Total Liabilities		167,173,185			135,255,368			115,012,284			116,600,279			100,393,103

Total Stockholders’ equity		17,154,805			16,460,035			15,877,630			14,944,705			14,881,447

Total liabilities + stockholders’ equity		184,327,990			151,715,403			130,889,914			131,544,984			115,274,550

- 15 -

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

INCOME STATEMENT (in thousands of pesos)


	03-31-17			12-31-16			09-30-16			06-30-16			03-31-16
Financial income		5,280,991			5,540,183			5,472,394			6,159,658			5,495,068
Interest on Cash and Due from Banks					—			—			—			—
Interest on Loans Granted to the Financial Sector		90,605			113,359			125,081			136,181			112,598
Interest on Overdraft		769,018			843,578			954,753			927,369			691,193
Interest on Discounted and purchased notes		463,665			503,617			519,273			519,982			522,801
Interest on Mortgages		88,634			92,677			100,347			100,306			101,694
Interest on Car Secured Loans		298,138			280,469			277,860			276,984			270,463
Interest on Credit Card Loans		1,064,647			1,048,804			982,507			1,005,398			984,737
Interest on Financial Leases		107,085			108,107			109,609			114,964			116,114
Interest on Other Loans		1,178,537			1,106,035			1,060,249			1,005,356			919,114
From Other Banking receivables		548			185			398			95			152
Interest on Government Guaranteed Loans Decree 1387/01		1,081			6,810			10,728			9,820			9,072
Income from Securities and Short Term Investments		592,264			801,184			794,612			1,507,146			980,137
CER		100,285			97,613			168,496			148,734			161,520
Foreign exchange difference		306,384			458,312			240,758			333,214			369,257
Other		220,100			79,433			127,723			74,109			256,216
Financial expenses		(2,217,215	)		0			-2,636,033			-2,816,856			-2,515,025
Interest on Current Account Deposits		(14,811	)		(1,618,512	)		—			—			—
Interest on Saving Account Deposits		(7,760	)		(222,302	)		(8,710	)		(9,019	)		(7,957	)
Interest on Time Deposits		(1,534,706	)		(674	)		(2,031,231	)		(2,195,456	)		(1,842,388	)
Interest on Other Banking Liabilities		(215,259	)		(126	)		(193,998	)		(191,555	)		(181,920	)
Other interests (includes Central Bank)		(629	)		(40,376	)		(881	)		(1,128	)		(1,234	)
CER		(1,915	)		—			(86	)		(105	)		(127	)
Bank Deposit Guarantee Insurance system mandatory contributions		(48,777	)		(352,205	)		(37,514	)		(34,600	)		(128,161	)
Mandatory contributions and taxes on interest income		(355,405	)		3,252,260			(340,249	)		(338,278	)		(327,833	)
Other		(37,573	)		(331,013	)		(23,364	)		(46,715	)		(25,405	)
Net financial income		3,063,776			1,076,422			2,836,361			3,342,802			2,980,043
Provision for loan losses		(323,969	)		—			(226,335	)		(336,129	)		(161,351	)
Income from services, net of other operating expenses		1,234,102			(2,860,570	)		1,300,901			1,014,393			931,083
Administrative expenses		(2,897,619	)		(2,133	)		(2,373,439	)		(2,211,679	)		(2,095,807	)
Income (loss) from equity investments		19,491			17,083			20,132			102,183			44,802
Net Other income		855,111			(141,517	)		(4,163	)		(27,480	)		56,471
Income (loss) from minority interest		(27,853	)		(13,547	)		(24,753	)		(34,113	)		(39,994	)
Income before tax		1,923,039			999,118			1,528,704			1,849,977			1,715,247
Income tax		(317,269	)		(416,713	)		(595,779	)		(886,719	)		(550,163	)
Net income		1,605,770			582,405			932,925			963,258			1,165,084

- 16 -

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


	03-31-17			12-31-16			09-30-16			06-30-16			03-31-16
Cash and due from banks		41,149,363			48,226,107			30,296,084			26,524,319			23,414,261
Government Securities		24,238,431			12,738,809			13,166,151			21,319,864			17,489,778
Loans		82,911,605			78,889,921			71,196,602			65,929,973			59,209,420
Other Banking Receivables		26,190,719			2,427,906			7,891,047			9,660,033			6,753,374
Assets Subject to Financial Leasing		2,088,865			2,046,971			2,110,038			2,247,058			2,346,370
Investments in other companies		535,221			507,625			493,463			465,736			416,473
Other assets		7,250,043			6,915,372			5,779,511			5,442,251			5,689,131

Total Assets		184,364,247			151,752,711			130,932,896			131,589,234			115,318,807

Deposits		122,822,030			114,621,753			91,904,217			92,827,261			80,101,011
Other banking liabilities		37,891,313			13,785,682			17,135,935			17,440,527			15,015,019
Minority interest		539,151			620,141			388,147			317,712			374,801
Other liabilities		5,956,948			6,265,100			5,626,967			6,059,029			4,946,529

Total Liabilities		167,209,442			135,292,676			115,055,266			116,644,529			100,437,360

Total Stockholders’ Equity		17,154,805			16,460,035			15,877,630			14,944,705			14,881,447

Stockholders’ Equity + Liabilities		184,364,247			151,752,711			130,932,896			131,589,234			115,318,807


Net Income

	03-31-17			12-31-16			09-30-16			06-30-16			03-31-16
Net Financial Income		3,066,449			3,253,700			2,838,936			3,347,768			2,983,692
Provision for loan losses		(323,969	)		(331,013	)		(226,335	)		(336,129	)		(161,351	)
Net Income from Services		1,234,102			1,076,422			1,300,901			1,014,393			931,083
Administrative expenses		(2,899,037	)		(2,856,270	)		(2,379,655	)		(2,220,410	)		(2,101,298	)
Net Other Income		874,626			(132,186	)		18,012			77,506			101,996
Income Before Tax		1,952,171			1,010,653			1,551,859			1,883,128			1,754,122
Income Tax		(317,392	)		(416,849	)		(595,909	)		(886,809	)		(550,303	)
Net income		1,634,779			593,804			955,950			996,319			1,203,819
Minoritary Interest		(29,009	)		(11,399	)		(23,025	)		(33,061	)		(38,735	)
Net income for Quarter		1,605,770			582,405			932,925			963,258			1,165,084

- 17 -

SIGNATURES

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


	BBVA Banco Francés S.A.

Date: May 11, 2017	By:	/s/ Ignacio Sanz y Arcelus
		Name:	Ignacio Sanz y Arcelus
		Title:	Chief Financial Officer

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