For the fiscal period ended 06/30/2014 In comparative format with the previous fiscal year In thousands of Argentine Pesos

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1 ASSETS BALANCE SHEET For the fiscal period ended 06/30/2014 In comparative format with the previous fiscal year In thousands of Argentine Pesos A Cash and cash resources (Note 2.1) 2,984,758 2,201,508 Cash 601, ,718 Financial Institutions and Correspondents 2,382,759 1,653,790 - Argentine Central Bank (B.C.R.A.) (Note 40) 2,034,598 1,391,246 - Other domestic institutions 993 1,422 - Other foreign institutions 347, ,122 B Government and Corporate Securities (Schedule A and Note 2.3.) 2,842,128 1,448,430 Holdings booked at fair market value (Note 40) 1,170,622 1,304,731 Holdings booked at cost plus return 39,573 95,049 Investments in listed corporate securities 72,807 46,569 Securities issued by the BCRA 1,559,126 2,081 C Loans (Schedules B, C and D and Notes 2.2. and 2.4.) 14,519,096 12,444,905 To the non-financial public sector 123, ,558 To the financial sector 543, ,369 Interfinancial- call granted - 195,000 20,000 Other loans to local financial institutions 335, ,211 Accrued interest, adjustments and quotation differences receivable 13,164 14,158 To the non-financial private sector and foreign residents 14,143,216 11,886,787 Overdraft facilities 1,139, ,361 Promissory notes 179, ,679 Mortgage loans 2,192,709 2,209,600 Pledge loans 61,179 21,179 Consumer loans 2,038,071 1,819,015 Credit cards 5,188,708 4,235,216 Unallocated collections (5,536) (7,037) Other (Note 8) 3,196,498 2,341,306 Accrued interest and quotation differences receivable 156, ,593 Documented interest (3,587) (6,125) Allowances (Schedule J and Note 5) (290,900) (244,809) D Other receivables from financial transactions (Schedules B, C and D and Notes 2.2. and 2.5. ) 1,899,985 1,303,708 Argentine Central Bank 429, ,358 Amounts receivable under spot and forward sales to be settled 212, ,528 Securities to be received under spot and forward purchases to be settled 557, ,398 Unlisted Negotiable obligations 101,000 98,105 Balances of forward transactions unsettled without delivery of underlying asset 45,817 19,230 Others not included in the debtor classification regulations (Note 9) 516, ,815 Others included in the debtor classification regulations (Notes 9 and 10) 32,025 24,836 Accrued interest receivable included in the debtor classification regulations (Note 10) 8,164 8,240 Allowances (Schedule J and Note 5) (2,824) (2,802) General BANCO HIPOTECARIO S.A Dr. Marcelo Trama Public Accountant (UNLZ) C.P.C.E.C.A.B.A. Book 252 Page 159

2 BALANCE SHEET For the fiscal period ended 06/30/2014 In comparative format with the previous fiscal year In thousands of Argentine Pesos E Receivables for financial leases (Schedule B, C and D and Note 2.6.) 71,907 58,851 Receivables for financial leases 71,059 58,175 Accrued interest and adjustments receivable 1,574 1,324 Allowances (Schedule J and Note 5) (726) (648) F Investments in other companies (Schedule E and Notes 2.7, 25 and 28) 940, ,159 In financial institutions 195, ,370 Others 744, ,789 G Miscellaneous Receivables (Note 2.8.) 689, ,061 Minimum presumed income tax - fiscal credit (Notes and 34.) 137, ,586 Others (Note 11) 563, ,542 Other accrued interest receivable 2,090 1,911 Allowances (Schedule J and Note 5) (13,978) (13,978) H Bank Premises and Equipment (Schedule F and Note 2.9.) 134, ,477 I Miscellaneous Assets (Schedule F and Note 2.9.) 46,795 43,549 J Intangible Assets (Schedule G and Note 2.11.) 230, ,870 Goodwill 18,234 19,712 Organization and development expenses 212, ,158 K Items pending allocation 4,254 3,527 TOTAL ASSETS 24,364,133 19,283,045 General BANCO HIPOTECARIO S.A Dr. Marcelo Trama Public Accountant (UNLZ) C.P.C.E.C.A.B.A. Book 252 Page 159

3 LIABILITIES BALANCE SHEET For the fiscal period ended 06/30/2014 In comparative format with the previous fiscal year In thousands of Argentine Pesos L Deposits (Schedules H and I and Notes 2.2., and 24) 14,135,340 11,076,380 Non-financial public sector 6,108,730 4,142,809 Financial Sector 7,548 10,268 Non-financial private sector and foreign residents 8,019,062 6,923,303 Current accounts 744, ,338 Savings accounts 1,667,377 1,447,967 Time deposits 4,595,276 4,267,651 Investment accounts 680, ,241 Others 170, ,748 Accrued interest and quotation differences payable 161,140 72,358 M Other liabilities for financial transactions (Schedule I and Notes 2.2. and ) 5,144,022 3,633,498 Argentine Central Bank Other Unsubordinated negotiable obligations (Note 12) 3,080,284 2,472,871 Amounts payable under spot and forward purchases to be settled 467, ,486 Securities to be delivered under spot and forward sales to be settled 279, ,174 Loans received from domestic financial institutions 309, ,420 Interfinancial loans (calls received) 309, ,000 Accrued interest payable Balances of forward transactions not yet settled without delivery of underlying asset 17,106 39,859 Others (Note 15) 917, ,965 Accrued interest and quotation differences payable 72,360 53,683 N Miscellaneous Liabilities (Note 2.14.) 529, ,914 Dividends payable Fees 14,236 18,296 Others (Note 16) 515, ,481 O Provisions (Schedule J and Notes 2.10., 2.15., 2.16., and 17.) 142, ,473 Q Items pending allocation 207, ,845 TOTAL LIABILITIES SHAREHOLDERS' EQUITY (per related statement) (Note 2.20.) 20,158,790 15,436,110 4,205,343 3,846,935 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 24,364,133 19,283,045 Notes and Schedules are an integral part of these financial statements. General BANCO HIPOTECARIO S.A Dr. Marcelo Trama Public Accountant (UNLZ) C.P.C.E.C.A.B.A. Book 252 Page 159

4 STATEMENT OF INCOME For the fiscal period ended 06/30/2014 In comparative format with the same period of the previous fiscal year In thousands of Argentine Pesos A Changes of cash and cash equivalents 2,495,736 1,078,940 Interest on cash and cash resources 12 1 Interest on loans to the financial sector 67,536 58,555 Interest on overdraft facilities 142,135 77,470 Interest on promissory notes 29,782 13,318 Interest on mortgage loans 172, ,910 Interest on pledge loans 5,704 3,838 Interest on credit card loans 573, ,623 Interest on financial leases 6,205 2,291 Interest on other loans 659, ,565 Interest on other receivables for financial transactions 12,351 13,087 Net income from government and corporate securities 382,551 93,486 Adjustment from application of CER (coefficient for reference stabilization) clause 10,751 4,101 Adjustment from application of CVS (coeffficient for salary variation) clause 10 4 Others (Note 18) 433,256 68,691 B Financial Expenses 1,448, ,381 Interest on savings account deposits 861 1,173 Interest on time deposits 740, ,727 Interests on interfinancial loans received 11, Interest on other liabilities resulting from financial transactions 205, ,962 Other interest 79,975 11,186 Contribution to the deposits security fund 10,304 8,092 Gold and foreign currency quotation differences 176,210 38,632 Others (Note 18) 223,332 75,619 GROSS INTERMEDIATION MARGIN 1,046, ,559 C Loan Loss Provision 118,106 66,266 D Income from services 523, ,695 Linked with lending transactions 364, ,260 Linked with borrowing transactions 39,347 27,734 Other commissions 4,758 3,333 Others (Note 19) 114, ,368 E Expenses for Services 191, ,561 Comissions 17,698 9,761 Others (Note 20) 174, ,800 General BANCO HIPOTECARIO S.A Dr. Marcelo Trama Public Accountant (UNLZ) C.P.C.E.C.A.B.A. Book 252 Page 159

5 STATEMENT OF INCOME For the fiscal period ended 06/30/2014 In comparative format with the same period of the previous fiscal year In thousands of Argentine Pesos G Administrative expenses 911, ,237 Personnel expenses 591, ,637 Directors' and syndics' fees 14,257 5,831 Other fees (Note 21) 72,543 58,486 Advertising and publicity 41,795 22,256 Taxes 40,509 27,542 Depreciation of bank premises and equipment 7,934 5,480 Amortization of organization and development expenses 22,562 10,704 Other operating expenses (Note 21) 95,318 68,980 Other 24,731 13,321 NET INCOME FROM FINANCIAL TRANSACTIONS 349,220 88,190 I Miscellaneous income 225, ,592 Income from long-term equity investments 142,460 92,820 Penalty interest 10,898 5,128 Loans recovered and allowances reversed 31,394 31,145 Others (Note 22) 40,398 20,499 J Miscellaneous losses 98,227 85,451 Penalty interest and charges in favor of BCRA Loan loss provision for miscellaneous receivables and other provisions 23,386 19,469 Depreciation and loss of miscellaneous assets Amortization of Goodwill 1,478 1,478 Others (Note 23) 72,989 64,348 NET INCOME BEFORE INCOME TAX 476, ,331 L Income Tax (Note 2.18.) 117,735 - NET INCOME FOR THE FISCAL YEAR 358, ,331 Notes and Schedules are an integral part of these financial statements. General BANCO HIPOTECARIO S.A Dr. Marcelo Trama Public Accountant (UNLZ) C.P.C.E.C.A.B.A. Book 252 Page 159

6 Changes of cash and cash equivalents STATEMENT OF CASH FLOWS AND CASH EQUIVALENTS For the fiscal period ended 06/30/2014 In comparative format with the same period of the previous fiscal year In thousands of Argentine Pesos Cash at Beginning of Fiscal Year 2,201,508 1,379,192 Cash at Fiscal year End (Note 30) 2,984,758 2,135,633 Net increase in cash (in constant currency) 783, ,441 Causes of cash changes (in constant currrency) Operating activities Net collection (payment) on: Government and corporate securities 627,655 Loans to the Non-financial Public Sector 129, to the Financial Sector 7,044 (90,517) to the Non-financial Private Sector and Foreign Res. (2,011,620) (716,639) Other receivables for financial transactions (1,124,591) (108,227) Deposits to the Financial Sector (2,720) 1,083 to the Non-financial Public Sector 1,965, ,168 to the Non-financial Private Sector and Foreign Res. 1,095, ,116 Other (except for liabilities under Financing activities) 1,410,068 (62,773) Collection linked with income from services 523, ,695 Payments linked with expenses for services (191,974) (118,561) Administrative expenses paid (941,625) (595,383) Collection net of penalty interest 10,898 5,128 Payments of organization and development expenses (40,901) - Other collections / (payments) linked to miscellaneous profits and losses 24,462 (43,198) Net collection / (payment) from other operating activities (142,381) (168,247) Net cash flow originated from (used for) operating activities (682,782) 13,134 Investment activities Net collections / (payments) on bank premises and equipment (22,888) (7,372) Net cash flow originated from (used for) investment activities (22,888) (7,372) Financing Activities Net collections / (payments) on: Unsubordinated negotiable obligations 607, ,481 Net cash flow originated from (used for) financing activities 607, ,481 Financial gain (loss) originated from, holding of cash and cash equivalents (including interest and monetary results) 881, ,198 Net increase in cash 783, ,441 General BANCO HIPOTECARIO S.A Dr. Marcelo Trama Public Accountant (UNLZ) C.P.C.E.C.A.B.A. Book 252 Page 159

7 MEMORANDUM ACCOUNTS For the fiscal period ended 06/30/2014 In comparative format with the previous fiscal year In thousands of Argentine Pesos DEBIT 112,411,117 99,687,449 Contingencies 10,214,427 9,216,874 Guarantees received 8,496,736 7,431,828 Others not included in the debtor classification regulations 17,325 17,730 Contingencies - re. contra items 1,700,366 1,767,316 Control 70,812,285 61,036,164 Loans classified as non-recoverable 619, ,265 Other 70,010,479 60,335,109 Control - re. contra items 182, ,790 Derivatives 7,897,475 12,775,578 "Notional" value of forward transactions without delivery of the underlying asset 3,795,649 7,785,786 Interest rate swap 681, ,595 Derivatives - re. contra items 3,420,471 4,284,197 Trust activities 23,486,930 16,658,833 Trust Funds 23,486,930 16,658,833 CREDIT 112,411,117 99,687,449 Contingencies 10,214,427 9,216,874 Loans granted (unused balances) included in the debtor classification regulations (Schedules B, C and D) 132, ,103 Other guarantees provided included in the debtor classification regulations (Schedules B, C and D) 31,436 22,135 Contingencies - re. contra items 10,050,811 8,966,636 Control 70,812,285 61,036,164 Amounts to be credited 26,804 24,602 Control - re. contra items 70,785,481 61,011,562 Derivatives 7,897,475 12,775,578 "Notional" value of forward transactions without delivery of the underlying asset 3,421,068 4,284,794 Derivatives - re. contra items 4,476,407 8,490,784 Trust activities 23,486,930 16,658,833 Trust accounts re. contra items 23,486,930 16,658,833 Notes and Schedules are an integral part of these financial statements. General BANCO HIPOTECARIO S.A Dr. Marcelo Trama Public Accountant (UNLZ) C.P.C.E.C.A.B.A. Book 252 Page 159

8 STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY For the fiscal period ended 06/30/2014 In comparative format with the previous fiscal year In thousands of Argentine Pesos Non-Capitalized Contributions Profit reserves 1. Opening Changes Capital Stock Share Irrevocable Equity Legal Others Retained Total for the Total for the issuance contributions for Adjustments earnings period period premiums future capital increases 06/30/ /30/2013 balances 1,500, , , , ,950 3,846,935 3,455, Subtotal (*) 1,500, , , , ,950 3,846,935 3,455, Distribution of Retained Earnings - Shareholders' Meeting dated 04/24/ , ,760 (420,950) Net income for the year , , , Fiscal year closing balances 1,500, , , , ,408 4,205,343 3,608,316 (*) Treasury shares 36,634,733 corresponding 153,473 ADR (1,534,733 shares) to third parties. - See Note 1 On April 24, 2014 the General Ordinary Sharegolders' Meeting of Banco Hipotecario S.A. approved the allocation of profits for the fiscal year ended December 31, 2013, for Ps. 42,000 to cash dividends upon the approval of the Argentine Central Bank in accordance with the rules set forth in Communication A 5072, as supplemented. General BANCO HIPOTECARIO S.A Dr. Marcelo Trama Public Accountant (UNLZ) C.P.C.E.C.A.B.A. Book 252 Page 159

9 GOVERNMENT AND CORPORATE SECURITIES For the fiscal period ended 06/30/2014 In comparative format with the previous fiscal year In thousands of Argentine Pesos SCHEDULE ( A ) Description Identification Market value Holding Book value 06/30/2014 Book value 12/31/2013 Position without option Options Final Position GOVERNMENT SECURITIES AT FAIR MARKET VALUE Argentina - 1,170,622 1,304,731 1,170,622-1,170,622 In Argentine Pesos - 326, , , ,608 BOGAR 2018 NF 18-8, ,100-8,100 GDP-Linked Negotiable Securities in Argentine Pesos TVPP BONAR 2014 AE , Mortgage Refinancing Trust Bond BOCON PRO 7 PRO VII DISCOUNT BOND PESOS DICP - 44,880-44,880-44,880 BOCON PRO 13 PR13-4,206-4,206-4,206 BONAR 2015 AS15-21,093 34,790 21,093-21,093 BOCON PRO 12 PR12-21,402 16,546 21,402-21,402 BOCON PRO 15 PR15-3,435-3,435-3,435 BOCON PRE 9 PRE , BODEN 2014 RS14-4,192 6,900 4,192-4,192 BONAR 19 AMX9-24,663-24,663-24,663 BONAR 17 (See Note 40) AM17-194, , ,588 In foreign currency - 844, , , ,014 BODEN 2015 RO 15-57, ,814 57,780-57,780 BONCOR 2017 CO17-25,760 21,260 25,760-25,760 BONAR 2017 AA 17-28, ,649 28,666-28,666 GLOBAL BOND 2017 GJ17-1,017 24,843 1,017-1,017 GDP-Linked Negotiable Securities in US dollars New York Law TVPY , PAR BOND IN US DOLLARS Argentina Law PARA - 2,500-2,500-2,500 GDP-Linked Negotiable Securities in US dollars Argentina Law TVPA - 10,100-10,100-10,100 PAR BOND IN US DOLLARS New York Law PARY - 194,685 31, , ,685 DISCOUNT BOND IN US DOLLARS DICY (*) - 218,379 21, , ,379 Province of Buenos Aires Bill due 06/12/2016 BNJ16-8,976 8,328 8,976-8,976 Province of Buenos Aires Bill due 02/08/2015 PBF15-212,796 47, , ,796 Province of Neuquén Bill due 10/11/2018 LDNO18-20,686-20,686-20,686 Province of Chubut Bill due 10/21/2019 PUO19-61,912-61,912-61,912 Province of Mendoza Bill due 10/29/2018 POM TOTAL GOVERNMENT SECURITIES AT FAIR MARKET VALUE - 1,170,622 1,304,731 1,170,622-1,170,622 GOVERNMENT SECURITIES AT COST PLUS RETURN Argentina 40,879 39,573 95,049 39,573-39,573 In Argentine Pesos , Province of Buenos Aires Bill due 04/10/2014 BBA , Province of Chubut Bill due 01/24/2014 BUE , Province of Chubut Bill due 02/24/2014 BUF , In foreign currency 40,879 39,573 15,391 39,573-39,573 Province of Neuquén Bill due 05/23/2014 BNY , Province of Entre Ríos Bill due 12/27/2016 ERD16 9,453 10,187 8,166 10,187-10,187 Province of Mendoza Bill due 12/18/2018 PMD18 31,426 29,386-29,386-29,386 TOTAL GOVERNMENT SECURITIES AT COST PLUS RETURN 40,879 39,573 95,049 39,573-39,573 General BANCO HIPOTECARIO S.A Dr. Marcelo Trama Public Accountant (UNLZ) C.P.C.E.C.A.B.A. Book 252 Page 159

10 GOVERNMENT AND CORPORATE SECURITIES For the fiscal period ended 06/30/2014 In comparative format with the previous fiscal year In thousands of Argentine Pesos SCHEDULE ( A ) Continued Description Identification Market value Holding Book value 06/30/2014 Book value 12/31/2013 Position without option Options Final Position INVESTMENTS IN LISTED CORPORATE SECURITIES Argentina - 72,807 46,569 72,807-72,807 In Argentine Pesos - 72,807 46,569 72,807-72,807 Banco Francés - - 4, Banco Macro Telecom Banco Santander Rio - 3,947 2,139 3,947-3,947 Cresud S.A Tenaris S.A. - 7,131 30,471 7,131-7,131 YPF - 61,729 8,790 61,729-61,729 TOTAL INVESTMENTS IN LISTED CORPORATE SECURITIES - 72,807 46,569 72,807-72,807 SECURITIES ISSUED BY THE BCRA - 1,559,126 2,081 1,559,126-1,559,126 Bills at fair market value - 6,589 1,199 6,589-6,589 Notes at fair market value - 210, , ,112 Bills at cost plus return - 1,241, ,241,174-1,241,174 Notes at cost plus return - 101, , ,251 TOTAL SECURITIES ISSUED BY THE BCRA - 1,559,126 2,081 1,559,126-1,559,126 TOTAL GOVERNMENT AND CORPORATE SECURITIES 40,879 2,842,128 1,448,430 2,842,128-2,842,128 (*) It is made clear that DICY securities' coupon is due and payable as of General BANCO HIPOTECARIO S.A Dr. Marcelo Trama Public Accountant (UNLZ) C.P.C.E.C.A.B.A. Book 252 Page 159

11 SCHEDULE ( B ) CLASSIFICATION OF FINANCING ACCORDING TO LOANS AND GUARANTEES RECEIVED For the fiscal period ended 06/30/2014 In comparative format with the previous fiscal year In thousands of Argentine Pesos COMMERCIAL PORTFOLIO Normal Situation 6,083,402 5,181,006 With "B" preferred collateral and counter-guarantees 463, ,232 Without preferred collateral or counter-guarantees 5,619,992 4,609,774 Potential Risk 164 1,569 With "B" preferred collateral and counter-guarantees Without preferred collateral or counter-guarantees 164 1,124 Problematic 1, With "B" preferred collateral and counter-guarantees - - Without preferred collateral or counter-guarantees 1, High risk of insolvency 5,550 7,046 With "B" preferred collateral and counter-guarantees - - Without preferred collateral or counter-guarantees 5,550 7,046 Uncollectible 16,996 17,191 With "B" preferred collateral and counter-guarantees 15,489 15,489 Without preferred collateral or counter-guarantees 1,507 1,702 TOTAL COMMERCIAL PORTFOLIO 6,107,889 5,207,075 General BANCO HIPOTECARIO S.A Dr. Marcelo Trama Public Accountant (UNLZ) C.P.C.E.C.A.B.A. Book 252 Page 159

12 SCHEDULE ( B ) Continued CLASSIFICATION OF FINANCING ACCORDING TO LOANS AND GUARANTEES RECEIVED For the fiscal period ended 06/30/2014 In comparative format with the previous fiscal year In thousands of Argentine Pesos CONSUMER AND HOUSING PORTFOLIO Normal Situation ,625,304 7,607,128 With "B" preferred collateral and counter-guarantees 1,588,119 1,610,580 Without preferred collateral or counter-guarantees 7,037,185 5,996,548 Low risk 209, ,958 With "B" preferred collateral and counter-guarantees 19,261 19,179 Without preferred collateral or counter-guarantees 190, ,779 Mid risk 110,510 64,934 With "B" preferred collateral and counter-guarantees 3,650 3,660 Without preferred collateral or counter-guarantees 106,860 61,274 High risk 114,342 92,638 With "B" preferred collateral and counter-guarantees 2,337 3,715 Without preferred collateral or counter-guarantees 112,005 88,923 Uncollectible 19,288 21,571 With "B" preferred collateral and counter-guarantees 1, Without preferred collateral or counter-guarantees 18,213 20,692 Uncollectible for technical reasons With "B" preferred collateral and counter-guarantees Without preferred collateral or counter-guarantees TOTAL CONSUMER AND HOUSING PORTFOLIO 9,079,545 7,923,557 GENERAL TOTAL 15,187,434 13,130,632 General BANCO HIPOTECARIO S.A Dr. Marcelo Trama Public Accountant (UNLZ) C.P.C.E.C.A.B.A. Book 252 Page 159

13 SCHEDULE ( C ) CONCENTRATION OF FINANCING For the fiscal period ended 06/30/2014 In comparative format with the previous fiscal year In thousands of Argentine Pesos FINANCING Number of customers Debt balance % of total portfolio Amount % of total portfolio 10 largest customers 2,381, % 1,673, % 50 following largest customers 2,350, % 2,079, % 100 following largest customers 887, % 935, % Rest of customers 9,568, % 8,441, % Total 15,187, % 13,130, % General BANCO HIPOTECARIO S.A Dr. Marcelo Trama Public Accountant (UNLZ) C.P.C.E.C.A.B.A. Book 252 Page 159

14 SCHEDULE (D) BREA KDOWN OF FINAN CING ACCORDING TO MATURITY DATES For the fiscal period ended 06/30/2014 In thousands of Argentine Pesos Past due portfolio Remaining terms to maturity More than 24 months Item 1 month 3 months 6 months 12 months 24 months Total Non-financial public sector 1,190 4,865 6,053 9,409 19,607 42,957 39, ,514 Financial sector 4, ,425 86,370 51,490 27,693 46, , ,266 Non-financial private sector and foreign residents 327,447 2,266,725 2,231,390 1,994,176 1,712,628 2,192,355 3,795,933 14,520,654 Total 333,089 2,476,015 2,323,813 2,055,075 1,759,928 2,281,637 3,957,877 15,187,434 General BANCO HIPOTECARIO S.A Dr. Marcelo Trama Public Accountant (UNLZ) C.P.C.E.C.A.B.A. Book 252 Page 159

15 B R EA K D O W N O F IN V E STM E N TS I N OT H ER C O M P A N IE S Fo r th e fiscal pe riod ende d 06/30/2014 In com pa ra tive fo rm at w ith the pr evious fisca l pe riod I n thou sa nds of Arge ntin e Pe sos SCHED ULE ( E ) Item Shares and/or U nits Information on the Issuer Des crip tion C lass Face v alu e per unit V otes per share Nu m ber B alance a s of 06/30/2 014 B alanc e as of 12 /31 /2 013 Principal line of business Fiscal p erio d /year clos in g d ate Data on latest fin. Statements C apital s to ck S h areho ld er s' eq u ity R esu lt for the p erio d/year - In Financ ia l Ins titution s, supplem entary and author ized activities C on trolled - Arg entin a - B ACS Banco de Crédito y Securitización S.A. ordinary ,6 87, , ,370 Bank ing 06/30/ , , ,566 - B H V alo res SA Soc de Bolsa ordinary 1 1 1,4 25,000 7,190 6,722 Brokerage 06/30/ ,500 7, B HN Sociedad de Inversión S.A. ordinary ,1 31, , ,265 Investment 06/30/ , , ,398 - T ARSH OP S.A. ordinary ,0 37, , ,629 Issuance and marketin g of T C 06/30/ , , 536 (82,523) Subtotal c on trolled - Argentina 935, ,986 - In O ther C om panies Non-con trolled - Argentina - B HN Vida S.A. ordinary Insuran ce 06/30/ , , ,451 - B HN Seguros Generales S. A. ordinary Insuran ce 06/30/ ,111 34, ,157 - M ercado Abierto E lectrón ico S. A. ordinary 1, Securities op en market 12/31/ , 899 8,677 (* *) - AC H S. A. ordinary 1 1 2, Electronic p ayment company 12/31/ Sup ple men tar y s erv ices - Non-con trolled - Argentina C on ferderar NE A - R ecip roca l g uaran tee C om p an y - Pro tecting p artn er ,16 2 5,1 6 2 R ecip roca l g uaran tee C om p an y 10/31/ , Subtotal non-controlled - A rgentina 5,17 3 5,1 7 3 Tota l inve stments in other companies 940, ,159 (* *) Th e E xtraord in ary General Sh areho ld ers' M eetin g held on 0 5/17 / u nan im ou sly res olved th e early term in atio n of th e com p an y u nd er the term s of Section 9 4, su b sectio n 1 of th e B us ines s C o m p anies Law, wh ich as o f to d ate is in its fin al stage o f liq uid ation. General BANCO HIPOTECARIO S.A Dr. Marcelo Trama Public Accountant (UNLZ) C.P.C.E.C.A.B.A. Book 252 Page 159

16 BANK PREMISES AND EQUIPMENT AND MISCELLANEOUS ASSETS For the fiscal period ended 06/30/2014 In comparative format with the previous fiscal year In thousands of Argentine Pesos SCHEDULE ( F ) Item Net book value at the beginning of fiscal year Additions Transfers Withdrawals Losses due to impairment of value Depreciation for the period Useful life (years) BANK PREMISES AND EQUIPMENT - Real estate properties 79, ,038 78,020 79,058 - Furniture and facilities 13,523 3, ,257 16,142 13,523 - Machinery and equipment 13,832 1, ,975 13,071 13,832 - Computer equipment 6,536 22, ,430 25,250 6,536 - Vehicles Sundry 1, ,595 1,474 Total 114,477 27, , , ,477 Amount Net book value at the end of fiscal year 06/30/2014 Net book value at the end of fiscal year 12/31/2013 MISCELLANEOUS ASSETS - Construction in progress 2, ,115 2,100 - Works of art and collectors' items Leased assets 2, ,689 2,731 - Assets acquired through foreclosures 2,554 1,003 - (1,764) ,777 2,554 - Stationery and office supplies 14,075 4, ,242 14,075 - Other miscellaneous assets 21, ,746 21,863 Total 43,549 5,185 - (1,764) ,795 43,549 General BANCO HIPOTECARIO S.A Dr. Marcelo Trama Public Accountant (UNLZ) C.P.C.E.C.A.B.A. Book 252 Page 159

17 SCHEDULE ( G ) INTANGIBLE ASSETS For the fiscal period ended 06/30/2014 In comparative format with the previous fiscal year In thousands of Argentine Pesos Item Net book value at the beginning of fiscal year Additions Transfers Withdrawa ls Losses due to impairment of value Amortization for the period Useful life (years) Amount Net book value at the end of fiscal period 06/30/2014 Net book value at the end of fiscal year 12/31/2013 Organization and development expenses 61,822 14, ,559 68,999 61,822 Mortgage loan origination expenses 108,336 50, , , ,336 Goodwill 19, ,478 18,234 19,712 Total 189,870 64, , , ,870 General BANCO HIPOTECARIO S.A Dr. Marcelo Trama Public Accountant (UNLZ) C.P.C.E.C.A.B.A. Book 252 Page 159

18 SCHEDULE ( H ) CONCENTRATION OF DEPOSITS For the fiscal period ended 06/30/2014 In comparative format with the previous fiscal year In thousands of Argentine Pesos Number of customers Debt balance % of total portfolio Debt balance % of total portfolio 10 largest customers 6,710, % 4,293, % 50 following largest customers 2,238, % 2,358, % 100 following largest customers 877, % 818, % Rest of customers 4,308, % 3,605, % Total 14,135, % 11,076, % General BANCO HIPOTECARIO S.A Dr. Marcelo Trama Public Accountant (UNLZ) C.P.C.E.C.A.B.A. Book 252 Page 159

19 BREAKDOWN OF DEPOSITS, OTHER LIABILITIES FOR FINANCIAL TRANSACTIONS AND SUBORDINATED NEGOTIABLE OBLIGATIONS ACCORDING TO MATURITY DATE For the fiscal period ended 06/30/2014 In thousands of Argentine Pesos SCHEDULE ( I ) Remaining terms to maturity Item 1 month (*) 3 months (*) 6 months (*) 12 months (*) 24 months (*) (*) Total Deposits 10,604,874 2,827, ,250 17,107 1, ,135,340 - Time deposits 4,984,140 2,827, ,250 17,107 1, ,514,606 - Investment account 738, ,128 - Savings accounts 2,843, ,843,986 - Current accounts 1,866, ,866,777 - Other deposits 171, ,843 Other liabilities for financial transactions 1,244,396 59,266 85, ,304 1,934, ,051 4,379,258 - Argentine Central Bank Others Unsubordinated negotiable obligations 17,863 59,266 85, ,304 1,934, ,970 3,152,644 Series 5 and Series 12 Bonds - 1,867 29,754-1,709, ,970 2,103,439 Series IX, X, XI, XIII, XIV, XV, XVI, XVIII and XIX Bonds in Pesos 17,863 57,399 55, , ,129-1,049,205 Loans received from domestic financial institutions 309, ,117 Local institutions 309, ,117 - Others 917, ,416 Others 917, ,416 Total 11,849,270 2,886, , ,411 1,936, ,091 18,514,598 (*) These figures are stated pursuant to contract clauses. General BANCO HIPOTECARIO S.A Dr. Marcelo Trama Public Accountant (UNLZ) C.P.C.E.C.A.B.A. Book 252 Page 159

20 CHANGES IN ALLOWANCES AND PROVISIONS For the fiscal period ended 06/30/2014 In comparative format with the previous fiscal year In thousands of Argentine Pesos SCHEDULE ( J ) Breakdown ASSET OFFSETTING ACCOUNTS Reversals Allocations Loans For uncollectibility risk and loss of value (a) 244, ,106 5,149 66, , ,809 Other receivables for financial transactions For uncollectibility risk and loss of value (b) 2, ,824 2,802 Receivables for financial leases For uncollectibility risk and loss of value Miscellaneous receivables For uncollectibility risk and loss of value (c) 13, ,978 13,978 Total 262, ,206 5,149 66, , ,237 LIABILITIES OFFSETTING ACCOUNTS Opening balances Increases in constant currency Decreases in constant currency Balances at fiscal period ended 06/30/2014 Balances at fiscal year ended 12/31/2013 Other contingencies (d) 136,473 23,386-17, , ,473 Total 136,473 23,386-17, , ,473 a) FOR UNCOLLECTIBILITY RISKS OF LOANS : Stems from the analysis covering uncollectibility risks of the loan portfolio performed by the Bank, which considers the regulations laid down by the Argentine Central Bank and estimates for the fiscal year, as mentioned in Note 5. b) FOR UNCOLLECTIBILITY RISKS OF OTHER RECEIVABLES FOR FINANCIAL TRANSACTIONS: Reflects the potential uncollectibility of mortgage loans transferred in trust, but not yet securitized. c) FOR UNCOLLECTIBILITY RISKS OF MISCELLANEOUS RECEIVABLES: Stems from the analysis covering uncollectibility risks of miscellaneous receivables. d) FOR OTHER CONTINGENCIES: This provision was set up to cover contingencies involving lawsuits, legal fees, certain expenses related to the administrative restructuring undertaken by the Bank, defaulted notes, and customers' loyalty program. In addition, the balance as of 06/30/2014 and 12/31/2013 includes the reserve for pending insurance claims as required by the National Insurance Superintendency. General BANCO HIPOTECARIO S.A Dr. Marcelo Trama Public Accountant (UNLZ) C.P.C.E.C.A.B.A. Book 252 Page 159

21 SCHEDULE (K) COMPOSITION OF CAPITAL STOCK For the fiscal period ended 06/30/2014 In thousands of Argentine Pesos Shares Capital Stock Class Number (1) Votes per share Outstanding Issued Treasury stock Pending issuance or distribution Alloted Paid-in Not yet paidin Ordinary Book-entry 1,500,000,000 (1) 1,463,365 36, ,500,000 - Total 1,463,365 36, ,500,000 - (1) See Note 1. General BANCO HIPOTECARIO S.A Dr. Marcelo Trama Public Accountant (UNLZ) C.P.C.E.C.A.B.A. Book 252 Page 159

22 FOREIGN CURRENCY BALANCES For the fiscal period ended 06/30/2014 In comparative format with the previous fiscal year In thousands of Argentine Pesos SCHEDULE (L) CAPTIONS ASSETS Head offices and branches in Argentina Total for the period 06/30/2014 Total for the fiscal year US$ EUROS YENS Total for the fiscal year 12/31/2013 Cash and cash resources 935, , ,310 19, ,597 Government and corporate securities 883, , , ,825 Loans 1,112,543 1,112,543 1,112, ,931 Other receivables for financial transactions 602, , , ,770 Miscellaneous receivables 191, , , ,354 Items pending allocation Total 3,726,368 3,726,368 3,706,989 19, ,517,496 LIABILITIES Deposits 1,008,580 1,008,580 1,008, ,911 Other liabilities for financial transactions 2,362,322 2,362,322 2,306,445 55,877-1,815,521 Miscellaneous liabilities 3,884 3,884 3, ,646 Items pending allocation Total 3,374,960 3,374,960 3,319,070 55,890-2,817,221 MEMORANDUM ACCOUNTS DEBIT (except for contra items) 24,568,428 24,568,428 24,565,740 2,688-20,803,842 Contingencies 944, , , ,587 Control 23,623,699 23,623,699 23,621,011 2,688-20,188,255 CREDIT (except for contra items) 25,609 25,609 25, ,680 Contingencies 25,609 25,609 25, ,680 General BANCO HIPOTECARIO S.A Dr. Marcelo Trama Public Accountant (UNLZ) C.P.C.E.C.A.B.A. Book 252 Page 159

23 FIN A N C IA L AS S IS T A N C E O F R E L A T E D P A R T IE S Fo r th e f isca l p e rio d e n d e d 0 6/ 30/ In c om p a rativ e f orm at w ith t h e p re v iou s f isca l y e ar I n th o u sa n d s o f A rg en t in e P e so s SCH E D U LE ( N ) It em S i tu a ti o n N o rm a l P o te nt ia l r is k/ ina d eq u a te p erfo r m an c e W i th pr o ble m s/ d efici ent p er fo r m a nce H igh ris k o f i ns o lv ency /d i fficu lt co llection U n co lle cti ble U nco l lect ibl e for t ec h nica l re as o n s N o t yet d u e P a st d ue N o t ye t d u e P as t du e 06 / 30 / / 31 / L o a ns 4 61, , ,7 32 T o t al - Ov er d ra ft fac i lit ies 63, , ,9 65 W it h "B " p re ferr ed co ll at er a l an d co un ter -g ua ra n te es W it ho u t an y p refe rr ed co lla t er al o r co u nt er -g ua r an te es 63, , , M o r tg ag e a nd p led ge lo a ns ,2 75 W ith " B " pr efer re d co lla te ra l a nd c o u nt er -gu ar a nt ee s , C re di t c a rd s 3, ,41 3 2,6 23 W ith o ut a ny p re fer red co l late ra l o r co u nte r-gu ar a ntee s 3, ,41 3 2, O t he r 3 93, , ,8 69 W ith o ut a ny p re fer red co l late ra l o r co u nte r-gu ar a ntee s 3 93, , , O t her re ceiv ab les for fin an c ia l tr a ns ac tio n s 12, , E ve nt u al l ia bili ti es , E qu ity in ves t m en ts in o th er co m p a ni es 9 35, , ,9 86 To ta l 1,3 96, ,39 6,62 4 1,3 73,6 03 Al lo w a nce s 3, ,43 6 5,6 77 General BANCO HIPOTECARIO S.A Dr. Marcelo Trama Public Accountant (UNLZ) C.P.C.E.C.A.B.A. Book 252 Page 159

24 DERIVATIVE FINANCIAL INSTRUMENTS For the fiscal period ended 06/30/2014 In thousands of Argentine Pesos SCHEDULE ( O ) Kind of Agreement Purpose of transactions Underlying assets Kind of settlement Trading environment or counterparty Average weighted term originally agreed Average residual weighted term Average weighted term for the settlement of differences Amount Futures (Note 14.1.) Foreign currency hedge Foreign currency Daily differences MAE ,066 Futures (Note 14.1.) Foreign currency hedge Foreign currency Daily differences MAE (163,576) Futures (Note 14.1.) Foreign currency hedge Foreign currency Daily differences ROFEX ,787,716 Futures (Note 14.1.) Foreign currency hedge Foreign currency Daily differences ROFEX (2,293,331) Futures (Note 14.1.) Brokerage own account Foreign currency Upon maturity of differences OTC Domestic residents - Non-financial sector (427,849) Swap (Note 14.2.) Brokerage own account Other Upon maturity of differences Domestic residents - Non-financial sector ,088 Swap (Note 14.3.) Brokerage own account Other Upon maturity of differences Domestic residents - Non-financial sector ,867 Swap (Note 14.4.) Brokerage own account Other Upon maturity of differences Domestic residents - Non-financial sector ,927 Swap (Note 14.5.) Brokerage own account Other Upon maturity of differences Domestic residents - Non-financial sector ,804 Swap (Note 14.6.) Brokerage own account Other Upon maturity of differences Domestic residents - Non-financial sector ,078 Swap (Note 14.7.) Brokerage own account Other Upon maturity of differences Domestic residents - Non-financial sector ,459 Repo Transactions (Note 14.8) Brokerage own account Argentine government securities With delivery of underlying asset MAE ,125 Other (Note 14.9) Brokerage own account Foreign currency Other Foreign residents ,526 General BANCO HIPOTECARIO S.A Dr. Marcelo Trama Public Accountant (UNLZ) C.P.C.E.C.A.B.A. Book 252 Page 159

25 1. BANCO HIPOTECARIO SOCIEDAD ANÓNIMA Pursuant to Law enacted on July 2, 1997 and promulgated by the National Executive Branch through Decree 677 dated July 22, 1997, and Decree 924/97, Banco Hipotecario Nacional was declared "subject to privatization" under the terms of Law and the National Executive Branch was ordered to proceed to its transformation into a corporation ("sociedad anónima"). The new entity arising from this transformation will do business under the denomination of "Banco Hipotecario Sociedad Anónima", and as a commercial bank in accordance with Law and complementary rules, as amended, with the scope envisaged by the regulations, and with the rights and obligations of its predecessor, as well as with the franchise to provide insurance over transactions originated until July 23, Banco Hipotecario Sociedad Anónima has a corporate capital of ARS 1,500,000 thousand, fully subscribed and paid-in, represented by 1,500,000,000 ordinary book-entry Class A, B, C and D shares, with a face value of ARS 1 each and one vote per share (according to the decision made by the General and Extraordinary Shareholder's Meeting held on July 21, 2006), except for the special multiple vote right for the Class D shares envisaged by the Bank's by-laws. On February 2, 1999, Banco de la Nación Argentina, as trustee of the Assistance to the Federal Trust Fund for Regional Infrastructure, made the combined public offering of 42,000,000 ordinary Class D shares and 270,000 options, each of the latter representing the right to purchase 100 shares, with the obligation that investors acquire a minimum quantity of Class D shares so as to be awardees of the options. This right expired on February 2, With the authorization of the National Securities Commission of Argentina, the Bank placed 13,616,606 Class D shares and 61,289 options on the local capital market, and 28,383,394 ADSs (American Depositary Shares), each representing one Class D share and 208,711 options, on the international capital market in compliance with Rule 144A of the Securities Act of 1933 of the United States of America. As a result of the expiration date for exercising the options indicated above, on February 2, 2004 certain holders of those options acquired 17,909,500 class D shares. Due to the expiration on January 29, 2009 of the Total Return Swap that had been executed and delivered on January 29, 2004, Deutsche Bank AG transferred to the Bank 71,100,000 ordinary Class D shares of Banco Hipotecario Sociedad Anónima with a face value of $ 1 each, which were available according to the terms and conditions prescribed in the section 221of the Argentine Companies Law. General 1

26 Through Minutes No. 268 dated January 12, 2010, the Board of Directors resolved: 1) to propose to the Shareholders Meeting that treasury Class D shares be given as payment to the holders of DAAs (StARS) to the extent of their accrued amounts, considering the shares value at that moment, and 2) to discuss possible alternatives for the Shareholders Meeting to resolve upon the allocation of the remaining shares. On April 30, 2010, the General Ordinary Shareholders Meeting resolved to extend for a year, counted as from January 31, 2010, the term for realizing the treasury shares held by the Bank. On the other hand, the General Extraordinary Shareholders Meeting resolved to delegate upon the Board of Directors the decision to pay with the treasury shares in portfolio the Stock Appreciation Rights (StAR) coupons resulting from the 2003 debt restructuring as advisable based on the contractually agreed valuation methods and their actual market value after allowing the shareholders to exercise their preemptive rights on an equal footing. On June 16, 2010, the Board of Directors resolved to launch a preemptive offer to sell a portion of the Bank s treasury shares, for a total of 36,000,000 class D shares. The remaining shares would be delivered in payment to the holders of Stock Appreciation Rights (StAR) coupons arising from the debt restructuring, which fell due on August 3, On July 26, 2010, within the framework of the referred offer, the Bank sold approximately 26.9 million of the shares mentioned above. On August 3, 2010 the proceeds of the offer and the balance of the shares referred in the preceding paragraph were made available to the holders of the Stock Appreciation Rights (StAR) coupons. With the abovementioned offering, 999,312 Class D shares were sold in excess of those required to pay off the obligation previously mentioned. In connection with such excess sale, Ps. 554 thousand were recorded as Unappropriated retained earnings to reflect the addition of the shares to the entity s equity, which took place on January 29, 2009 as detailed in this note, and a further Ps. 834 thousand were booked as Additional paid-in capital for the difference between the value as added to the entity s equity and the sales value. The Bank holds 36,634,733 Treasury Shares, out of which 1,534,733 correspond to third-party holders of StARs who have not filed the documentation required for their collection. On April 13, 2011, the General Extraordinary Shareholders Meeting authorized the Board of Directors to sell own treasury stock in the market reducing to ten days the term for exercising the preemptive right, and suspending the exercise thereof when the sale of shares does not exceed 1% of the Capital Stock within any twelve-month period. The General Ordinary Shareholders Meeting held on March 27, 2012 extended for one year the term fixed for the disposition of those shares. The General Ordinary Shareholders Meeting held on April 24, 2013 resolved to allocate 35,100,000 Class D shares held by the Bank to a compensation program for the personnel under the terms of Section 67 of Law 26,831. General 2

27 On April 24, 2014 the General Ordinary Shareholders Meeting acknowledged the incentive or compensation program described in the preceding paragraph and its extension to the personnel employed by the subsidiaries BACS Banco de Crédito y Securitización S.A., BH Valores S.A., BHN Sociedad de Inversión S.A., BHN Vida S.A. and BHN Seguros Generales S.A. Under Decree 2127/2012 and Resolution 264/2013 issued by the Ministry of Economy and Public Finance, the Programa de Propiedad Participada (Employee Stock Ownership Plan) was implemented. Under this plan, in a first stage, out of a total of 75,000,000, 17,990,721 Class B shares were converted into Class A shares, to be allocated among the employees that have withdrawn from the Bank in accordance with the implementation guidelines. Upon delivery to the former employees, the 17,990,721 shares will become Class D shares. The shares allocated to the Bank s current employees are designated as Class B shares, representing the Programa de Propiedad Participada. The following table shows the composition of the capital stock as of June 30, 2014, detailing the classes of shares and their face value. Class Shares Face value Capital Stock A 672,106, ,106,969 B 57,009, ,009,279 C 75,000, ,000,000 D 695,883, ,883,752 1,500,000,000 1,500,000, BASIS FOR PRESENTATION OF THE FINANCIAL STATEMENTS These financial statements have been prepared in line with accounting standards established by the Argentine Central Bank through CONAU 1 Circular, supplementary rules and amendments. General 3

28 The financial statements of the predecessor entity, Banco Hipotecario Nacional, have been adjusted for inflation in conformity with the guidelines set in Communication "A" 551 of the Argentine Central Bank up to the financial year ended December 31, 1994, and prepared in accordance with the standards laid down by CONAU 1 Circular. As from January 1, 1995, and according to the authorization accorded by Resolution No. 388 of the Argentine Central Bank's Superintendency of Financial and Exchange Institutions, the Bank discontinued the adjustment for inflation of its financial statements until December 31, As from January 1, 2002, as a result of the application of Communication "A" 3702 which established the repeal of any legal and regulatory rule that did not allow companies to restate their accounting balances at period-end currency values, the Bank resumed the application of the adjustment for inflation in accordance with the rules issued in due time by the Argentine Central Bank using the adjustment coefficient derived from the domestic wholesale price index published by the National Statistics and Census Institute (INDEC). Furthermore, it has been considered that the accounting measurements derived from the changes in the purchasing power of the currency between December 31, 1994 and 2001 are stated in the currency value as of the latter date. On March 25, 2003, the Executive Branch issued Decree 664 establishing that the financial statements for years ending as from that date are to be stated in nominal currency. Consequently, in accordance with Communication "A" 3921 of the BCRA, the restatement of the financial statements was discontinued as from March 1, These financial statements have been prepared in line with the accounting standards issued by the Argentine Central Bank for application by financial institutions. The differences between the Argentine Central Bank regulations and the professional accounting standards in force in the Autonomous city of Buenos Aires are detailed in Note 3. The principal disclosure and valuation criteria followed for preparing these financial statements are described below: 2.1. Foreign currency assets and liabilities US dollar assets and liabilities have been valued at the rate of exchange between the peso and the US dollar published by the Argentine Central Bank. Assets and liabilities valued in foreign currencies other than the US dollar were converted into the latter currency using the swap rates communicated by the Argentine Central Bank s operations desk, in force at the close of operations on the last business day of the fiscal period ended June 30, 2014 and the fiscal year ended December 31, Interest accruals and adjustments of principal amounts (CER and CVS) General 4

29 Interest accruals were determined using the exponential method for all lending and certain borrowing transactions in local and foreign currency, and interest accruals for loans overdue more than ninety days were discontinued. Adjustments of principal amounts from application of the CER and CVS were accrued as established by Argentine Central Bank regulations, and interest accruals on loans overdue more than ninety days were discontinued Government and corporate securities 2.4. Loans As June 30, 2014 and December 31, 2013, the securities classified as "Holdings booked at fair market value", "Investment in listed corporate securities" and "Securities issued by the BCRA" with volatility published by the BCRA, have been valued at period or year-end market quotation. As of June 30, 2014, the holdings of DICY securities were adjusted to reflect the quotation at closing plus the value of the due and enforceable income coupon. As of June 30, 2014 and December 31, 2013, the securities classified as Holdings booked at cost plus return and Securities issued by the BCRA with no volatility published by the BCRA or with volatility but which the Entity decides to book under the first category, have been valued, in accordance with the provisions of Communication A 5180 and supplementary rules, at their acquisition cost subject to an exponential increase based on the internal rate of return, net of contra accounts, if applicable. For comparison purposes with market values, see Schedule A. The portfolio of performing loans and loans due ninety days or less has been valued in terms of the principal amounts actually lent, plus capitalized interest, net of principal amortization collected and debt balance refinancing, plus adjustments (from the application of the CER, and CVS where applicable) and accrued interest receivable and less the estimated reserve for loan losses. Other loans to the public sector: i) as of June 30, 2014 and December 31, 2013, those loans were valued at cost plus return according to point of Communication A 5180, taking as cost their book value as of December 31, General 5