Corporate Presentation

Transcription

1 Francés BBVA Francés Corporate Presentation 4 Quarter 2017

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

3 Macroeconomic environment Financial System BBVA Francés Strategy Financial performance Annex 07 BBVA Group

4 01 Macroeconomic environment

5 Economy GDP Growth (% yoy) Base 2004 Quarterly GDP (% yoy) 2.6% 2.8% 3.3% 3.3% 2.9% 4.2% 3.7% 0.4% -2.5% -2.2% e 2018e 2019e 4Q16 1Q17 2Q17 3Q17 4Q17e Source: BCRA, INDEC and own estimations Signs of recovery in the economy, with positive expectations for coming years. 5

6 Decreasing trend in inflation, but still higher than targets expected by the Central Bank Inflation (% yoy) End of period CPI monthly variation (%) 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 38.0% 39.4% 26.9% 24.8% 18.5% 12.2% e 2019e 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 4% 3% 2% 1% 0% 40% 35% 30% 25% 20% 15% 10% 5% 0% Inflation Target BCRA IPC m/m (left) IPC y/y (right) Core m/m (left) Core y/y (right) Source: CPI CABA (Jan-13 to Mar-16) INDEC: CPI GBA (Apr-16 to Dec-16) IPC Nacional INDEC (Jan-17 to Jul-17) Source: INDEC CPI GBA: Jun-16 to Dec-16/ CPI National Jan-17 to Dec-17 Core inflation: Available data since December By the end of December 2017 the government announced a change in the inflation target scheme. The new target for 2018 will be 15%, 10% in 2019 and 5% in

7 Fiscal Performance: lower subsidies as a driver to meet targets Primary fiscal result % of GDP 0% -1% -2% -3% -4% -5% -3.4% -4.0% -4.3% -3.9% -4.2% -3.2% -2.2% e 2019e Primary result observed and targets Figures in billion AR$ Q17 2Q17 3Q17 4Q17 Primary fiscal result (% GDP) Fiscal Target Quarterly target accumulated Observed Source: Ministry of Economy / Targets Source: Ministry of Economy Subsidies to economic sectors 4% 0.1% 3% 3% 0.8% 0.1% 2% 0.6% 0.0% 2% 0.4% 2.4% 1% 1.7% 1.3% 1% 0% Energy Transport Others Source: ASAP for 2015 and Ministry of Economy for Public debt per creditor (% GDP) 60% 4.0% 1.7% 0.5% 0.5% 40% 12.4% 19.4% 19.6% 20.8% 6.4% 5.5% 5.0% 5.0% 20% 30.6% 27.5% 26.1% 27.4% 0% Q17 2Q17 Debt still in default Private Sector International Organizations Public Agencies Source: Ministry of Finance 7

8 dic-14 feb-15 abr-15 jun-15 ago-15 oct-15 dic-15 feb-16 abr-16 jun-16 ago-16 oct-16 dic-16 feb-17 abr-17 jun-17 ago-17 oct-17 dic-17 dic-14 mar-15 jun-15 sep-15 dic-15 mar-16 jun-16 sep-16 dic-16 mar-17 jun-17 sep-17 dic-17 mar-18 jun-18 sep-18 dic-18 External sector: imports, mainly in capital goods and energy, growing as the economy recovers Exports and Imports % change yoy 40% 30% 20% 10% 0% -10% -20% -30% -1% -2% -3% -4% -5% -6% Current Account 1% 0% % of GDP Source: INDEC -1.5% -2.7% -2.7% e -5.1% Source: Indec Exports Imports International reserves Figures in million USD 60,000 55,055 50,000 40,000 31,443 30,000 20,000 10,000 0 Trade Balance Real services Interest & Dividends Current Account FX rate and REM forecast (*) AR$/USD Source: Central Bank REM forecast FX rate 8

9 02 Financial System

10 A system with strong ratios of liquidity, solvency Capital Capital Integration / RWA according to BCRA regulation Liquidity Cash + net repos with BCRA+BCRA bills / Total Deposits 13.3% 16.7% 16.0% 46.7% 49.0% 41.4% Nov Nov-17 Quarterly evolution 16.7% 16.8% 16.5% 16.2% 16.0% 49.0% 52.3% 46.0% 42.6% 41.4% 4Q16 1Q17 2Q17 3Q17 Nov-17 4Q16 1Q17 2Q17 3Q17 Nov-17 Source: BCRA Financial System Report 10

11 and healthy asset quality indicators NPL Cost of risk 2.0% 1.7% 1.8% 1.7% 1.4% 1.2% 1.3% 1.7% Q17 Quarterly evolution Q17 1.6% 1.8% 1.9% 1.7% 1.3% 1.5% 1.6% 1.7% 4Q16 1Q17 2Q17 3Q17 4Q16 1Q17 2Q17 3Q17 Source: BCRA (last available data as of September 2017) 11

12 Profitability, though recovering, still low in real terms ROE and Inflation Quarterly figures Inflation: end of period 40% 35% 30% 25% 32.7% 32.4% 29.6% 25.7% 40% 30% 23.3% 26.4% 24.9% 25.9% 20% 15% 20% 10% 5% 10% 0% Nov-17 * 0% 4Q16 1Q17 2Q17 3Q17 ROE Inflation ROE Inflation ROE: accumulated net income / monthly average equity, annualized (*) Inflation accumulated as of November 2017, annualized ROE: quarterly net income / quarterly average equity, annualized Quarterly inflation: quarterly average inflation, annualized Source: BCRA and IPC CABA (from Jan-13 to Apr-16) IPC GBA INDEC (from May -16 to May -17) IPC Nacional INDEC (from June -17) 12

13 A small financial system, but with a good infrastructure to face growth Latam Private Loans and Total Deposits in terms of GDP Figures as of November 2017 Branches and ATMs / 100,000 adult population Figures as of December % 66.4% % 45.3% 40.1% 23.0% 41.6% 32.6% Loans to the Private Sector Deposits Argentina 2017e Chile Colombia Perú Branches ATMs Argentina Chile Colombia Perú 13

14 Argentina has the less concentrated financial system in the region Total loans market share in Latam Number of financial entities per country As of % 80% 78 70% 60% 50% 40% 47 30% 20% 10% 17% 32% 21% 19% 30% 19% % Argentina Uruguay Colombia Chile Perú Brazil Top 1 Top 2 Top 3 Top 5 Argentina Mexico Colombia Chile Peru Source: Central Banks The top five banks concentrate about 50% of the total loans market share in Argentina compared to an average of 75% in the region. 14

15 dic-16 ene-17 feb-17 mar-17 abr-17 may-17 jun-17 jul-17 ago-17 sep-17 oct-17 nov-17 dic-17 dic-16 ene-17 feb-17 mar-17 abr-17 may-17 jun-17 jul-17 ago-17 sep-17 oct-17 nov-17 dic-17 Private loans trend Total Private Loans growth Figures in million AR$ 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10, % 150% 100% 50% Retail and Commercial Loans (ARS + USD) 55% 50% 45% 40% 35% 30% 25% 0 0% 20% Total Nom Var Total % Var YoY ARS % YoY USD % Var YoY Retail % Var YoY Total % Var YoY Commercial % Var YoY 15

16 dic-16 ene-17 feb-17 mar-17 abr-17 may-17 jun-17 jul-17 ago-17 sep-17 oct-17 nov-17 dic-17 Private deposits trend Total Private Deposits growth Sight Deposits and Time Deposits (ARS + USD) 120% 100% 80% 60% 80% 70% 60% 50% 40% 40% 20% 0% 30% 20% 10% 0% Total % Var YoY ARS % Var YoY USD % Var YoY SD % Var YoY TD % Var YoY Total % Var YoY 16

17 dic-16 ene-17 feb-17 mar-17 abr-17 may-17 jun-17 jul-17 ago-17 sep-17 oct-17 nov-17 dic-17 Interest rates and NIM Interest rates and inflation Financial System NIM (*) 35% 30% 25% 20% 15% 10% 5% 45% 40% 35% 30% 25% 20% 15% 10% 5% 14% 13% 12% 11% 10% 9% 9.7% 9.2% 10.5% 11.3% 12.9% 13.4% 13.0% 11.8% 0% 0% 8% Private Badlar (left) Lebac<35d (left) Inflation (right) 7% e (*) Net financial income without foreign exchange differences / average earning assets 17

18 03 BBVA Francés

19 A universal bank with a countrywide presence # Clients 2,674,473 Retail 2,630, % C&IB 844 Middle Market 43,359 Key Financial metrics 4Q-17 Assets Net loans Figures in billion USD Exchange rate $18,8/USD Branches 251 ATMs 797 ATSs 822 Employees 6,082 Total deposits Shareholders equity (*) Variations (%) in comparison with the previous year 19

20 One of the leader private banks in terms of loans and deposits Total Loans (*) Total Deposits (*) SANTANDER 10.1 SANTANDER 9.8 GALICIA 9.2 GALICIA 7.6 MACRO 7.4 BBVA FRANCES 6.3 BBVA FRANCÉS 7.3 MACRO 5.8 HSBC 4.0 HSBC 3.5 ICBC 3.5 PATAGONIA 2.7 PATAGONIA 3.1 ICBC 2.5 SUPERVIELLE 3.0 SUP 2.3 CITI 1.8 CITI 1.4 ITAU 1.3 ITAU 1.1 Private Loans (**): 8.3% + 21 bp Private Deposits (**): 7.7% + 29 bp Mutual Funds: 6.5% As of December bp Branches: 5.6% As of Setember-2017 (*) Source: Central Bank. Market Share as of October 2017 (last available data) (**) Market share as of Dec Includes loans of JVs consolidated within the financial statements, PSA Finance and Volkswagen Basis points variations in comparision with the previous quarter 20

21 Equity Ownership Figures as of December 31, 2017 Ownership structure Subsidiaries and equity participations BBVA Asset Management (95.00%) 6.3% 6.9% 20.1% Free Float 33.45% BBVA Francés Francés Valores (97.00%) PSA (50.00%) Volskwagen (51.00%) Grupo BBVA 66.55% ByMA ANSES NYSE Rombo (40.00%) BBVA Seguros (12.22%) BBVA Frances has been listed on the BCBA since Its shares have been also listed on the New York Stock Exchange, since 1993, and Latibex, since

22 04 Strategy

23 Plenty of growth opportunities in the Argentine banking sector Just to mention some key drivers with potential room to grow Mortgages Saving and Investments SMEs Undeveloped market Fiscal amnesty and currency stabilization Engine of Argentina s growth Energy and Infrastructure 15 years without investment Potential for rapid banking penetration given low credit to GDP rations and improving economic outlook. 23

24 New macro environment results in need for growth and transformation DECREASING INFLATION COMMODITIZED PRODUCTS Margin compression Imperative for growth Clients Mortgages Consumer loans SMEs Need for differentiation Customer experience Transformation Multichannel Strategy Digital approach Efficiency improvements stemming from scale and new customer experience. 24

25 BBVA Francés has a highlighted starting point to catch the new environment opportunities Diversified business model Multichannel structure and exclusive partnerships Physical Infrastructure ATMs/ ATSs Branches Call Center Alliances Web Digital Channels Mobile Sponsors JVs Exclusive partnerships 25

26 S Strengths Organic growth strategy Solid risk ratios W Weaknesses Low market share in personal loans. O Opportunities Perspectives of Economic Growth T Threats Peers with aggresive advertising campaigns Multichannel strategy: Countrywide presence Digital Channels Car Loans JVs Commercial Alliances Transformation as a driver to Efficiency Less expensive and fast client acquisition Improving cross sell but still low. Room to improve service quality Presence in lower tier SMEs Low banking penetration Mortgages and SMEs. Increase in concentration Increase activity with Public Agencies. Solid Risk Management Increase competition from new players and FinTechs Lack of long-term funding Low cost funding base Brand Image Recent Capital Raising 26

27 05 Financial performance

28 Activity 2017 YoY (billion $) Total loans (*) Deposits AR$ % AR$ % Strong balance sheet, with a remarkable performance in terms of growth Leverage 7.7 x -0.6x Loans (*) to Deposits 83.3% +1,592 bp Solid year in terms of activity, reflecting a growing Loan to Deposits ratio NPL 0.69% -8bp Liquidity(**) 35.3% -1,324 bp Coverage 253.1% -959 bp Capital ratio 14.7% +90 bp Tier I 13.7% +74 bp Maintaining the best asset quality ratios in the Argentine financial system July-17 follow-on resulted in a higher capital ratio, which was decreasing gradually after such period as a result of an important growth in the activity. Considering the adjustment based on IFRS regulation, the capital ratio will be 200 bp higher. (*) Total Loans without considering overnight operations balances (**) Cash and Due from Banks + Bills and Notes from BCRA / Total Deposits 28

29 Loans Without considering overnight operations balances Private Loans Figures in million AR$ YoY +66.4% Private Loans structure 77,115 81,330 89, , ,303 Credit Cards 50% Personal Loans 27% 53% 47% Retail Commercial Car Loans 15% Mortgages 7% Market Share % (*) 4Q16 1Q17 2Q17 3Q17 4Q Private Loans by currency 22% Pesos USD 78% (*) Consolidated Market share BBVA Francés closed 2017 reaching outstanding results in terms of growth, increasing its customer base and gaining 71 b.p. in its consolidated private loans market share, which set at 8.3% at the end of the year. 29

30 Retail Banking Personal Loans (Figures in million AR$) Car Loans (*) (Figures in million AR$) 9,369 10,523 11,647 13,787 16,319 YoY +74.1% 10,323 12,029 13,307 15,679 16,808 YoY +62.8% Market Share % 4Q16 1Q17 2Q17 3Q17 4Q17 4Q16 1Q17 2Q17 3Q17 4Q17 Market Share % (*) Car Loans include the activity of JVs: PSA Finance, VW Finance and Rombo Compañía Financiera (Rombo figures are not included into BBVA Francés Balance Sheet) In August,2017, there was a reclasification in certain types of financing that had been previously incorporated in the car loans. For this reason the total amount for car loans and, consequently, the car loans market share were modified in each period. Important evolution in retail banking, maintaining a strong position in car loans and recovering dynanism in personal loans with an increase of 41 b.p. in terms of market share. 30

31 Retail Banking Credit Cards (Loans in million AR$ and credit card stock) Mortgages loans and quarterly sales (Figures in million AR$) 22,521 23,077 23,980 25,439 30,006 YoY +33.2% 4,275 YoY % 2,937 YoY +9.0% 1,889 1,893 2,072 YoY + 1, % Market Share % (*). 2,882 2,890 2,951 3,037 3,141 4Q16 1Q17 2Q17 3Q17 4Q17 Loans Card Stock (*) Refers to credit cards consumption market share. 70 4Q16 1Q17 2Q17 3Q17 4Q17 Mortgages Loans Mortgages Sales The Bank has around 6.2% market share in morgages sales, non-considering state owned banks the share is 25% Mortgages sales market share as of December 2017 Increasing participation in the credit cards market and highlighted performance in mortgages. 31

32 Commercial Banking Figures in million AR$ Distribution by industry 4Q17 Commercial (*) 36,522 38,512 43,488 56,619 66,571 YoY +82.3% Infrastructure 3% Capital goods 5% Durable goods 7% Energy 14% Transportation 2% Others 3% Consumer 35% Market Share % 4Q16 1Q17 2Q17 3Q17 4Q Commercial Loans by currency (*) Basic Materials 14% Retailers 18% 41% 59% Pesos USD (*) Commercial loans without considering overnight operations Highlighted dynamism in financing companies both, in local and foreign currency, growing 82.3% y/y with an increasing commercial loans market share, which rose 145 b.p. during the year. 32

33 Risk Manangement: maintaining an outstanding asset quality NPL, coverage and cost of risk 5% 4% NPL peer group and Financial System Figures as of September-17, except BBVA Francés (as of December 17) 262.7% 248.3% 243.3% 271.1% 253.1% 3% System % 1.3% 1.3% 1.4% 1.3% 2% BBVA 0.7 Opportunity 1% 0.8% 0.8% 0.9% 0.7% 0.7% 0% 4Q16 1Q17 2Q17 3Q17 4Q17 Peer 1 Peer Coverage NPL Cost of Risk Peer NPL by segment Dec-17 Retail 1.44% Middle Market 0.36% Corporate 0.0% 33

34 Public bonds and Central Bank bills own portfolio Figures in million AR$ Private Portfolio 14,393 14,489 14,856 BCRA Bills & Notes (own portfolio) Public Bonds and loans 7,310 7,201 5,277 6,890 7,921 7,465 7,025 4Q16 1Q17 2Q17 3Q17 4Q17 Total exposure to the Public Sector without repo transactions Public Sector National Government / Total Assets 13,066 14,562 22,891 22,569 22, % 3.7% 4.6% 3.7% 3.1% BCRA Bills / Total Assets 4.8% 3.9% 8.3% 7.2% 6.6% Over the year BBVA Francés celebrated repo transactions with the Argentine Republic of USD 250 million, due in December 2018 and March

35 Stable and diversified funding structure, based on retail and SMEs customers Total Deposits Figures in million AR$ YoY +34.4% Deposits structure 114, , , , ,050 TD<1MM Market Share % 4Q16 1Q17 2Q17 3Q17 4Q Sight accounts 68% Saving accounts 51% Current accounts 16% Others 3% Time deposits 30% 72% 28% TD>1MM Growing market share in terms of private deposits since the 2Q17, with an increase in the participation of sight accounts which provides us a cheaper funding mix. 35

36 Capital: adequate levels of solvency, enough to face the expected organic growth for coming years Capital ratio(*) +3.5% Additional Buffer 22% 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 13.8% 13.8% 13.1% 17.3% 15.1% 14.7% 0% 4Q16 1Q17 2Q17 Follow-on 3Q17 4Q17 Capital ratio Capital Ratio including IFRS adjustments 16.7% Minimum Capital Requirement 4Q2017 Tier I 13.7% (*) Capital ratio according to the Central Bank regulation The capital ratio showed a decrease after follow-on as a result of a significant growth in the loans portfolio size. Considering IFRS regulation, the capital ratio will be 200 b.p. higher. 36

37 Clients evolution Total retail clients Figures in million YoY +15.1% New retail clients Figures in thousand Q16 1Q17 2Q17 3Q17 4Q17 SMEs by segment As of Dec % 39,506 43, % e Payroll accounts Figures in thousand YoY +3.7% 11,685 14,928 4Q16 Total Companies 4Q17 Credit qualified companies Market Share % 4Q16 1Q17 2Q17 3Q17 4Q (*) Variations (%) in comparison with the 4Q16 (*) Payroll market share as of Oct-17 Positive trend in terms of retail clients and SMEs acquisition, with a higher number of credit qualified companies and a good position in payroll accounts

38 Digital performance % Digital Sales Digital sales / Total sales 26.8% 31.4% 40.7% 37.0% 38.9% 4Q16 1Q17 2Q17 3Q17 4Q17 % Digital clients Digital clients / Total retail clients (*) YoY +1210bp YoY +670bp % Digital Sales by product Figures 4Q bp 41.0% -484 bp 37.7% +228 bp 20.9% -16 bp 42.6% -38 bp 93.1% 46.6% 47.8% 49.6% 51.3% 53.3% Personal loans Credit Cards Insurance Time deposits Mutual Funds 4Q16 1Q17 2Q17 3Q17 4Q17 (*) It only considers target clients Basis points variations in comparison with the previous quarter In line with its transformation strategy, BBVA Francés continues to achieve a positive evolution in terms of digital sales as well as digital clients

39 Results 2017 Main Main Figures $ and $ and q/qyoy Ratios 2017 YoY Net Income * Net Financial Income ROE* AR$ 3, ,8 MM 15,040 AR$ 3,433 MM +115% +6.4% +21.2% 18.2% +12.0% ROA* EFFICIENCY COVERAGE 2.1% 61.0% 44.6% Net Income from Services 5,618 AR$ 1,191 MM +30.0% - 3.5% Administrative Adm. Expenses 12,604 AR$ 3,027MM +32.1% +4.5% -591 bp -72 bp +400bp -73 bp Ratios calculated on the accumulated resuts basis. Basis points variations in comparison with the previous quarter BBVA Francés achieved the targets set in terms of growth. This has resulted in a gradual improvement of the P&L, which was impacted negatively by one offs during the 1S17 and closed the year with a remarkable evolution. 39

40 Results 4Q 2017 Main Figures MM AR$ and QoQ Ratios 4Q 2017 QoQ Net Income * AR$ 1, ,8 MM +115% +25.2% Net Income from Services 1,632 AR$ 1,191 MM +4.5% - 3.5% Net Financial Income 4,573 AR$ 3,433 MM +15.2% +12.0% Adm. Expenses Adm. Expenses 3,524 AR$ 3,027MM +11.7% +4.5% ROE* 22.2% ROA* 2.8% NIM 10.6% EFFICIENCY 56.8% COVERAGE 46.3% + 55 bp + 28 bp - 4 bp - 25 bp bp (*) Quarterly annualized ratios Positive trend in terms of quarterly results, reaching a good performance of the net financial income as well as a good evolution in the main profitability indicators. 40

41 Net income and main indicators 1Q17 and 2Q17 without considering fiscal provision effect Net income Figures in million AR$ 1, ,421 QoQ 25.2% 14.3% 10.5% ROE 22.3% 21.7% 22.2% QoQ +50bp 4Q16 1Q17 2Q17 3Q17 4Q17 4Q17 1Q17 2Q17 3Q17 4Q17 ROA Efficiency 3.0% 1.0% 2.0% 2.5% 2.8% QoQ +30bp Administrative expenses / (Net Financial Income + Net Income from Services) 66.1% 67.4% 65.5% 57.0% 56.8% QoQ -20bp 4Q16 1Q17 2Q17 3Q17 4Q17 4Q16 1Q 17 2Q 17 3Q17 4Q17 Gradual improvement in profitability and efficiency

42 Net Interest Margin and NIM Figures in million AR$ Total NIM (AR$+USD) 14.5% 12.9% 13.0% 12.7% 12.9% 12.5% 11.7% 11.4% 10.7% 10.6% Net Financial Income YoY 40.6% 4Q16 1Q17 2Q17 3Q17 4Q17 With FX Without FX 3,252 3, , , , Total NIM AR$ 15.1% 14.5% 14.2% 14.3% 14.5% 4Q16 1Q17 2Q17 3Q17 4Q17 4Q16 1Q17 2Q17 3Q17 4Q17 Foreign exchange differences Total NIM USD 2.0% 1.8% 1.9% 1.8% 2.3% 4Q16 1Q17 2Q17 3Q17 4Q17 Good dynamism in the net interest margin since the 2Q17, sustained by a highlighted growth in the loan portfolio. 42

43 Physical bills balance evolution Cash balance evolution (*) Figures in million AR$ Cash balance / Total deposits (*) 3,413 3,842 3,744 4,104 6,606 4,575 4,029 3,898 QoQ -3.3% 5.7% 6.1% 5.6% 5.9% 8.9% 5.9% 5.1% QoQ -60bp 4.5% 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 (*) Quarterly average balances in local currency Total deposits without considering deposits from the Public Sector During the first months of 2017 the excess in the stock of physical bills was a differential factor that affected BBVA Francés. This situation has started to normalize since the second semester. 43

44 Fees and Expenses Figures in million AR$ Net Income from Services Administrative Expenses 2,399 2,482 2,486 2,938 3,172 YoY 51.6% 2,861 2,898 3,027 3,156 3,524 YoY 23.2% 1,076 1,632-1,322-1,248-1,295-1,376-1,540 4Q16 1Q17 2Q17 3Q17 4Q17 Services income Services expenses Net income from services 4Q16 1Q17 2Q17 3Q17 4Q17 Net Income from services started to grow at a faster pace showing a positive trend, while the administrative expenses increased under control, reflecting a more restrictive expenses policy. 44

45 The Bank continues to focus on improving the expenses side and increasing the productivity in branches Carriage of valuables In million AR$ % 5.1% 6.1% QoQ +11.6% 16% 14% 12% 10% 8% 6% 4% 2% 0% Total cashier operations # millions of teller operations Q16 2Q17 3Q17 4Q17 Migrations to digital account statements Figures accumulated as a percentage of total clients to migrate YoY -15.3% Carriage of valuables Inflation (right) * 85% 99% 100% 4% 17% 28% 50% (*) Inflation (end of period): quarterly variation abr-17 may-17 jul-17 ago-17 sep-17 oct-17 dic-17 In line with the transformation strategy of BBVA Francés, the account statements of more than 1,2 million clients migrated to the digital format, while total cashier operations decreased 15.3% during the year. 45

46 2018 Main drivers Strong NII based on a higher volume of activity Slight margin compression (lower than inicially expected) based on better products mix, end of mandatory loans, higher number of clients Strong growth based on increasing credit card consumption, products pricing, gradual fee gains on new customers, higher cash deposits fees and control on charge expenses. Positive trend in net income for 2018 Under Control In line or slightly above inflation Lower income tax 46

47 06 Annex

48 BBVA Francés P&L Breakdown Figures in million $ 4Q-16 1Q-17 2Q-17 3Q- 17 4Q-17 Q/Q Y/Y Net Financial Income 3,252 3,064 3,433 3,970 4, % 40.6% Provision for Loan Loses (331) (324) (356) (503) (377) -25.0% 14.0% Net Income from Services 1,076 1,234 1,191 1,562 1, % 51.6% Administrative Expenses (2,861) (2,898) (3,027) (3,156) (3,524) 11.7% 23.2% Operating Income 1,137 1,076 1,241 1,873 2, % 102.5% Income (Loss) from equity investments Income (Loss) from Minority interest % 523.8% (14) (28) (30) (18) (27) -49.2% % Other Income/Expenses (142) 855 (1,168) (122) (211) -73.9% -49.4% Income Tax (417) (317) (481) (717) (750) -4.6% -79.9% Net Income 582,4 1, ,0 1,135 1, % 144.0% Net income without fiscal provision 582,4 420,0 902,8 1,135 1, % 144.0% 48

49 BBVA Francés balance sheet structure Figures in million $ 4Q-16 1Q-17 2Q-17 3Q-17 4Q-17 Q/Q Y/Y Cash and Banks 48,226 41,149 37,048 27,947 37, % -21.9% BCRA Bills & Notes 7,375 17,094 17,556 13,696 16, % 125.9% Public sector assets 5,277 6,890 7,958 16,337 16, % 220.1% Private Loans 78,791 82,912 89, , , % 62.9% Others 11,947 36,283 20,335 30,366 26, % 117.8% TOTAL ASSETS (*) 151, , , , , % 48.7% Deposits 114, , , , , % 34.4% Others 20,634 44,351 29,870 45,436 45,504 0,1% 120.5% TOTAL LIABILITIES 135, , , , , % 47.5% TOTAL NET WORTH 16,460 17,155 16,872 24,639 26, % 58.3% TOTAL LIABILITIES + NET WORTH 151, , , , , % 48.7% (*) Total Assets contain certain repo operations that are duplicated 49

50 ADRs performance 100 points base as of September 1, 2016 Market Data Mkt Cap (MM u$s) FRAN GGAL BMA 5,146 9,395 7,760 SUPV 2,678 Avg ADR volume (MM u$s) (*) Floating (**) (*) Average volume of the last three months (**) Without considering the participation of ANSES 26.6% 36.1% 30.0% 46.2% sep-16 oct-16 nov-16 dic-16 ene-17 feb-17 mar-17 abr-17 may-17 jun-17 jul-17 ago-17 sep-17 oct-17 nov-17 dic-17 ene-18 Market data at the end of December, 2017 Source: Bloomberg FRAN GGAL BMA SUPV 50

51 Ratings Rating Agency Instrument Rating Outlook Fix SCR* Shares 1 Neutral Negotiable Obligations Global Program (U$S 750 million) Subordinated Senior Debt Senior Debt Short Term Senior Debt Long Term AAA (Arg) AA+ (Arg) A1+ (Arg) AAA (Arg) S&P Institutional Rating Long Term raaa Neutral Institutional Rating Short Term Negotiable Obligations Global Program (U$S 750 million) raa-1+ raaa Neutral *In November 2013, Fitch Argentina sold 70% of its capital stock to a local investor group and changed its name to Fix Scr. This new group will be responsible for the local credit rating. 51

52 07 BBVA Group

53 BBVA in the world North America United States México South America Argentina Bolivia Brazil Chile Colombia Paraguay Perú Uruguay Venezuela Europe Germany Belgium Spain France Holland Italy Luxembourg Malta Portugal U.K. Romanía Russia Switzerland Turkey Asia-Pacífic Australia China EAU Hong Kong India Indonesia Japan South Corea Singapore Taiwán >30 8,271 31, ,856 billion in total assets millon customers countries branches ATMs employees Data at the end of December

54 Leading franchises in all markets Net atributtable profit Breakdown million 16% 10% 3.519M 12M17 15% 16% An important contribution from emerging markets 40% 2% Mexico España Estados Unidos Turquía América del Sur Resto Eurasia (*) Spain includes the áreas Banking activity in Spain and Non Core Real Estate. Figures excludes Corporate Center 54