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BBVA Francés
Corporate Presentation
4 Quarter 2017
BBVA Francés
Disclaimer: This presentation contains or may contain forward-looking statements within the meaning of the United States Securities Litigation
Reform Act of 1995, including but not limited to estimates of the prospects for the Argentine economy, BBVA Francés’ earnings, business
plans, expense and operational structure adjustments, capitalization plan, and trends affecting BBVA Francés’ financial condition and results of
operations. Any forward-looking statements included in this press release are based on current expectations and estimates, but actual results
and events may differ materially from anticipated future results and events. Certain factors which could cause the actual results and events to
differ materially from the expected results or events include: (1) changes in domestic or international stock market prices, exchange rates or
interest rates; (2) macroeconomic, regulatory, political or governmental changes; (3) changes in the markets for BBVA Francés’ products and
services; (4) increased competition; (5) changes in technology; or (6) changes in the financial condition, creditworthiness or solvency of the
customers, debtors or counterparties of BBVA Francés. Additional factors that could cause the actual results or events to differ materially from
the expected results or events are described in the reports filed by BBVA Francés with the United States Securities and Exchange Commission
(“SEC”), including, but not limited to, BBVA Francés’ annual report on Form 20-F and exhibits thereto. BBVA Francés does not undertake to
revise or update any of the information contained herein under any circumstances, including if at any moment following dissemination of such
information it is no longer accurate or complete.
2
01
02
04
05
06
Macroeconomic environment
Financial System
Strategy
Annex
BBVA Francés03
Financial performance
07 BBVA Group
01Macroeconomic environment
Economy
5
GDP Growth (% yoy) Quarterly GDP (% yoy)
-2.5%
2.6%
-2.2%
2.8%3.3% 3.3%
2014 2015 2016 2017e 2018e 2019e
Source: BCRA, INDEC and own estimations
Base 2004
0.4%
2.9%
4.2%3.7%
4Q16 1Q17 2Q17 3Q17 4Q17e
Signs of recovery in the economy, with positive expectations for coming years.
Decreasing trend in inflation, but still higher than
targets expected by the Central Bank
6
Inflation (% yoy)End of period
CPI monthly variation (%)
Source: INDEC CPI GBA: Jun-16 to Dec-16/ CPI National Jan-17 to Dec-17
Core inflation: Available data since December 2016.
Source: CPI CABA (Jan-13 to Mar-16) – INDEC: CPI GBA (Apr-16 to Dec-16) – IPC
Nacional INDEC (Jan-17 to Jul-17)
38.0%
26.9%
39.4%
24.8%
18.5%
12.2%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
2014 2015 2016 2017 2018e 2019e
Inflation Target BCRA
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 2020.
0%
5%
10%
15%
20%
25%
30%
35%
40%
0%
1%
2%
3%
4%
IPC m/m (left) Core m/m (left)
IPC y/y (right) Core y/y (right)
Fiscal Performance: lower subsidies as a driver to meet targetsPrimary fiscal result
Source: Ministry of Economy / 2017-2019 Targets
Subsidies to economic sectors
Source: ASAP for 2015 and Ministry of Economy for 2016 - 2017
Public debt per creditor (% GDP)
Source: Ministry of Finance
Figures in billion AR$
Primary result observed and targets
Source: Ministry of Economy
% of GDP
7
-3.4%
-4.0% -4.3%-3.9%
-4.2%
-3.2%
-2.2%
-5%
-4%
-3%
-2%
-1%
0%
2014 2015 2016 2017 2018e 2019e
Primary fiscal result (% GDP) Fiscal Target
-500
-400
-300
-200
-100
0
1Q17 2Q17 3Q17 4Q17
Quarterly target accumulated Observed
2.4%1.7%
1.3%
0.8%
0.6%
0.4%
0.1%
0.1%
0.0%
0%
1%
1%
2%
2%
3%
3%
4%
2015 2016 2017
Energy Transport Others
30.6% 27.5% 26.1% 27.4%
6.4%5.5% 5.0% 5.0%
12.4% 19.4% 19.6% 20.8%
4.0% 1.7%0.5% 0.5%
0%
20%
40%
60%
2015 2016 1Q17 2Q17
Debt still in default Private Sector
International Organizations Public Agencies
External sector: imports, mainly in capital goods and energy,
growing as the economy recovers
International reserves
Source: Central Bank
Current AccountExports and Imports
Source: Indec
FX rate and REM forecast (*)
% of GDP – Source: INDEC% change yoy
Figures in million USD AR$/USD
8
31,443
55,055
0
10,000
20,000
30,000
40,000
50,000
60,000
dic
-14
feb-1
5
abr-
15
jun
-15
ago
-15
oct-
15
dic
-15
feb-1
6
abr-
16
jun
-16
ago
-16
oct-
16
dic
-16
feb-1
7
abr-
17
jun
-17
ago
-17
oct-
17
dic
-17
-1.5%
-2.7% -2.7%
-5.1%
-6%
-5%
-4%
-3%
-2%
-1%
0%
1%
2014 2015 2016 2017e
Trade Balance Real services
Interest & Dividends Current Account
21.9
17.7
0
5
10
15
20
25
dic
-14
ma
r-1
5
jun
-15
sep
-15
dic
-15
ma
r-1
6
jun
-16
sep
-16
dic
-16
ma
r-1
7
jun
-17
sep
-17
dic
-17
ma
r-1
8
jun
-18
sep
-18
dic
-18
REM forecast FX rate
-30%
-20%
-10%
0%
10%
20%
30%
40%
Exports Imports
02Financial System
A system with strong ratios of liquidity, solvency…
13.3%
16.7% 16.0%
2015 2016 Nov-17
16.7%16.8%
16.5%
16.2%
16.0%
4Q16 1Q17 2Q17 3Q17 Nov-17
46.7%
49.0%
41.4%
2015 2016 Nov-17
49.0%52.3%
46.0%42.6% 41.4%
4Q16 1Q17 2Q17 3Q17 Nov-17
Cash + net repos with BCRA+BCRA bills / Total DepositsCapital Integration / RWA according to BCRA regulation
Source: BCRA – Financial System Report
Quarterly evolution
Capital Liquidity
10
…and healthy asset quality indicators
2.0%
1.7%
1.8%
1.7%
2014 2015 2016 3Q17
NPL
1.6%
1.8%1.9%
1.7%
4Q16 1Q17 2Q17 3Q17
Cost of risk
1.3%1.5%
1.6% 1.7%
4Q16 1Q17 2Q17 3Q17
1.4% 1.2% 1.3%1.7%
2014 2015 2016 3Q17
Quarterly evolution
11Source: BCRA (last available data as of September 2017)
Profitability, though recovering, still low in real terms
32.7% 32.4%29.6%
25.7%
0%
5%
10%
15%
20%
25%
30%
35%
40%
2014 2015 2016 Nov-17 *
ROE Inflation
ROE and InflationInflation: end of period
Quarterly figures
23.3%26.4%
24.9%25.9%
0%
10%
20%
30%
40%
4Q16 1Q17 2Q17 3Q17
ROE Inflation
ROE: quarterly net income / quarterly average equity, annualized
Quarterly inflation: quarterly average inflation, annualized
ROE: accumulated net income / monthly average equity, annualized
(*) Inflation accumulated as of November 2017, 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
A small financial system, but with a good infrastructure to face
growth
Latam Private Loans and Total
Deposits in terms of GDP
15.8%
23.0%
84.6%
66.4%
45.3%41.6%
40.1%
32.6%
Loans to the Private Sector Deposits
Argentina 2017e Chile Colombia Perú
Branches and ATMs / 100,000
adult populationFigures as of December 2016
13.0
60.0
16.0
54.0
24.3
45.8
22.0
45.0
Branches ATMs
Argentina Chile Colombia Perú
Figures as of November 2017
13
Argentina has the less concentrated financial system in
the region
Total loans market share in Latam
Source: Central Banks
14
The top five banks concentrate about 50% of the total loans market share in Argentina compared to an
average of 75% in the region.
17% 32% 21% 19% 30% 19%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Argentina Uruguay Colombia Chile Perú Brazil
Top 1 Top 2 Top 3 Top 5
78
47
25 23
16
Argentina Mexico Colombia Chile Peru
Number of financial entities per countryAs of 2016
Private loans trend
Total Private Loans growth Retail and Commercial Loans
(ARS + USD)Figures in million AR$
15
0%
50%
100%
150%
200%
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
dic
-16
en
e-1
7
feb-1
7
ma
r-1
7
ab
r-1
7
ma
y-1
7
jun-1
7
jul-17
ag
o-1
7
sep-1
7
oct-
17
no
v-1
7
dic
-17
Total Nom Var Total % Var YoY
ARS % YoY USD % Var YoY
20%
25%
30%
35%
40%
45%
50%
55%
dic
-16
en
e-1
7
feb-1
7
ma
r-1
7
ab
r-1
7
ma
y-1
7
jun-1
7
jul-17
ag
o-1
7
sep-1
7
oct-
17
no
v-1
7
dic
-17
Retail % Var YoY Commercial % Var YoY
Total % Var YoY
Private deposits trend
Total Private Deposits growth Sight Deposits and Time Deposits
(ARS + USD)
16
0%
20%
40%
60%
80%
100%
120%
dic
-16
en
e-1
7
feb-1
7
ma
r-1
7
ab
r-1
7
ma
y-1
7
jun-1
7
jul-17
ag
o-1
7
sep-1
7
oct-
17
no
v-1
7
dic
-17
Total % Var YoY ARS % Var YoY USD % Var YoY
0%
10%
20%
30%
40%
50%
60%
70%
80%
SD % Var YoY TD % Var YoY Total % Var YoY
Interest rates and NIM
Interest rates and inflation Financial System NIM (*)
(*) Net financial income without foreign exchange differences / average earning assets
9.7%
9.2%
10.5%
11.3%
12.9%13.4%
13.0%
11.8%
7%
8%
9%
10%
11%
12%
13%
14%
2010 2011 2012 2013 2014 2015 2016 2017e
17
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
0%
5%
10%
15%
20%
25%
30%
35%
dic
-16
en
e-1
7
feb-1
7
ma
r-1
7
ab
r-1
7
ma
y-1
7
jun-1
7
jul-17
ag
o-1
7
sep-1
7
oct-
17
no
v-1
7
dic
-17
Private Badlar (left) Lebac<35d (left) Inflation (right)
03BBVA Francés
A universal bank with a countrywide presence
# Clients
ATMs 797
ATSs 822
Employees 6,082
Middle Market
43,359
Retail
2,630,270
2,674,473
Branches 251
Key Financial metrics
Assets
Total deposits
Net loans
Shareholders’
equity
12.0
6.8
8.2
1.3
4Q-17 • Figures in billion USD
• Exchange rate $18,8/USD
19(*) Variations (%) in comparison with the previous year
+15.1%
C&IB
844
10.1
9.2
7.4
7.3
4.0
3.5
3.1
3.0
1.8
1.3
SANTANDER
GALICIA
MACRO
BBVA FRANCÉS
HSBC
ICBC
PATAGONIA
SUPERVIELLE
CITI
ITAU
9.8
7.6
6.3
5.8
3.5
2.7
2.5
2.3
1.4
1.1
SANTANDER
GALICIA
BBVA FRANCES
MACRO
HSBC
PATAGONIA
ICBC
SUP
CITI
ITAU
One of the leader private banks in terms of loans and deposits
Total Loans (*)
Mutual Funds: 6.5%
20
As of December-2017
(*) Source: Central Bank. Market Share as of October 2017 (last available data)
Basis points variations in comparision with the previous quarter
+15 bp Branches: 5.6%As of Setember-2017
Total Deposits (*)
Private Loans (**): 8.3% Private Deposits (**): 7.7%+ 21 bp + 29 bp
(**) Market share as of Dec 2017. Includes loans of JVs consolidated within the financial statements, PSA Finance and Volkswagen
6.3%
6.9%
20.1%
ByMA ANSES NYSE
Equity Ownership
Ownership structure
BBVA Frances has been listed on the BCBA since 1888. Its shares have been also listed on the New
York Stock Exchange, since 1993, and Latibex, since 1999.
Free Float
33.45%
Grupo
BBVA
66.55%
21
Figures as of December 31, 2017
Subsidiaries and equity
participations
Francés Valores
(97.00%)
BBVA Seguros
(12.22%)
PSA
(50.00%)
Rombo
(40.00%)
Volskwagen
(51.00%)
BBVA
Francés
BBVA Asset Management
(95.00%)
04Strategy
Plenty of growth opportunities in the Argentine banking
sector
Mortgages
SMEs
Energy and Infrastructure
Saving and Investments
Just to mention some key drivers…
Undeveloped market
Fiscal amnesty and currency
stabilization
Engine of Argentina’s growth
…with potential room to grow
Potential for rapid banking penetration given low credit to GDP rations and
improving economic outlook.
15 years without investment
23
New macro environment results in need for growth
and transformation
DECREASING INFLATION
Imperative for growth
Margin compression
COMMODITIZED PRODUCTS
Customer experience
Transformation
Multichannel Strategy
Digital approach
Efficiency improvements stemming from scale and new customer experience.
24
Clients
Mortgages
Consumer loans
SMEs
Need for differentiation
BBVA Francés has a highlighted starting point to catch
the new environment opportunities
ATMs/
ATSs
Branches
Call
Center
Web
MobileSponsors
JVs
Alliances
Exclusive
partnerships
Physical
Infrastructure
Digital
Channels25
Diversified business
model
Multichannel structure and
exclusive partnerships
W
• Organic growth strategy
• Solid risk ratios
• Multichannel strategy:• Countrywide presence
• Digital Channels
• Car Loans JVs
• Commercial Alliances
• Transformation as
a driver to Efficiency
• Less expensive and fast
client acquisition
• Low cost funding base
• Brand Image
• Recent Capital Raising
Strengths
SWeaknesses
• Low market share in
personal loans.
• Improving cross sell but
still low.
• Room to improve service
quality
• Presence in lower
tier SMEs
OOpportunities
• Perspectives of
Economic Growth
• Low banking penetration
• Mortgages and SMEs.
• Increase in concentration
• Increase activity with
Public Agencies.
• Solid Risk Management
TThreats
• Peers with aggresive
advertising campaigns
• Increase competition
from new players and
FinTechs
• Lack of long-term funding
26
05Financial performance
Activity 2017
Strong balance sheet, with a remarkable
performance in terms of growth
(billion $)
Total loans (*) Deposits
AR$ 128.3 +66.2% AR$ 154.1 +34.4%
Leverage Loans (*) to Deposits
NPL Coverage
Tier ICapital ratioLiquidity(**)
35.3%
-1,324 bp14.7%
+90 bp
13.7%
+74 bp
Solid year in terms of activity, reflecting a
growing Loan to Deposits ratio
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
28
0.69% -8bp
83.3% +1,592 bp7.7 x -0.6x
253.1% -959 bp
YoY
(**) Cash and Due from Banks + Bills and Notes from BCRA / Total Deposits
Loans
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.
Private LoansFigures in million AR$
Private Loans structure
Credit
Cards
50%
Personal
Loans
27%
Mortgages 7%
Car Loans 15%
77,115 81,330 89,445
108,088
128,303
4Q16 1Q17 2Q17 3Q17 4Q17
YoY
+66.4%
7.6 7.6 7.6 8.1 8.3
47%
53%Retail
Commercial
78%
22%
Pesos
USD
Private Loans by currency
Without considering overnight operations balances
29
Market
Share % (*)
(*) Consolidated Market share
Retail Banking
Personal Loans(Figures in million AR$)
(*) Car Loans include the activity of JVs: PSA Finance, VW Finance and Rombo Compañía Financiera (Rombo figures are not included into BBVA Francés Balance Sheet)
Car Loans (*)(Figures in million AR$)
9,36910,523
11,64713,787
16,319
4Q16 1Q17 2Q17 3Q17 4Q17
10,323
12,02913,307
15,679 16,808
4Q16 1Q17 2Q17 3Q17 4Q17
4.2 4.2 4.2 4.4 4.6 18.6 19.2 18.3 18.7 17.9
In August,2017, there was a reclasification in certain types of financing that had been previously incorporated in the car loans. For this reason the total amount for car loans
and, consequently, the car loans market share were modified in each period.
YoY
+74.1%YoY
+62.8%
30
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.
Market
Share %
Market
Share %
Retail Banking
Credit Cards(Loans in million AR$ and credit card stock)
22,521 23,077 23,980
25,439 30,006
2,882 2,890 2,951 3,037 3,141
4Q16 1Q17 2Q17 3Q17 4Q17
Loans Card Stock
11.8 12.2 12.3 12.4 12.7
YoY
+33.2%
1,889 1,893 2,072
2,937
4,275
70
1,810
4Q16 1Q17 2Q17 3Q17 4Q17
Mortgages Loans Mortgages Sales
Mortgages – loans and quarterly sales
(Figures in million AR$)
YoY
+9.0% YoY +
2474.5%
31Increasing participation in the credit cards market and highlighted performance in mortgages.
Market
Share % (*)
.
Mortgages sales market share as of December 2017
.
(*) Refers to credit cards consumption market share
YoY
+126.2%
The Bank has around 6.2% market share
in morgages sales, non-considering state
owned banks the share is 25%
Commercial Banking
Consumer35%
Retailers18%
Basic Materials
14%
Energy14%
Durable goods
7%
Capital goods5%
Infrastructure3%
Transportation2%
Others 3%
Distribution by
industry 4Q17
Highlighted dynamism in financing companies both, in local and foreign currency, growing 82.3% y/y withan increasing commercial loans market share, which rose 145 b.p. during the year.
Figures in million AR$
Commercial (*)
36,522 38,512 43,48856,619
66,571
4Q16 1Q17 2Q17 3Q17 4Q17
59%
41%Pesos
USD
Commercial Loans by currency (*)
7.6 7.8 7.6 8.7 9.1
(*) Commercial loans without considering overnight operations
32
YoY
+82.3%
Market
Share %
Risk Manangement: maintaining an outstanding
asset quality
NPL peer group and
Financial System
1.7
0.7
1.0
1.6
2.2
System
BBVA
Peer 1
Peer 2
Peer 3
Opportunity
Retail Middle Market Corporate1.44% 0.36% 0.0%
NPL by segment Dec-17
Figures as of September-17, except BBVA Francés (as of
December 17)
262.7% 248.3% 243.3%271.1%
253.1%
0.8% 0.8% 0.9%0.7% 0.7%
1.2% 1.3% 1.3% 1.4%1.3%
0%
1%
2%
3%
4%
5%
4Q16 1Q17 2Q17 3Q17 4Q17
Coverage NPL Cost of Risk
33
NPL, coverage and cost of
risk
Public bonds and Central Bank bills own portfolio
34
5,277 6,890 7,921 7,465 7,025
7,310 7,201
14,39314,489
14,856
4Q16 1Q17 2Q17 3Q17 4Q17
Private Portfolio
BCRA Bills & Notes (ownportfolio)
Public Bonds and loans
Total exposure to the Public
Sector without repo
transactions
13,066 14,562 22,891 22,569 22,641
Public Sector National
Government / Total Assets3.5% 3.7% 4.6% 3.7% 3.1%
BCRA Bills / Total Assets 4.8% 3.9% 8.3% 7.2% 6.6%
Figures in million AR$
Over the year BBVA Francés celebrated repo transactions with the Argentine Republic of USD 250 million, due in December 2018 and March 2019.
Stable and diversified funding structure, based on
retail and SMEs customers
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.
Total DepositsFigures in million AR$
Deposits structureYoY
+34.4%
7.3 7.8 7.5 7.4 7.7
114,622122,823 125,674
129,948154,050
4Q16 1Q17 2Q17 3Q17 4Q17
Current accounts
16%
Saving accounts
51%
Time deposits
30%
Others3%
28%
72%
Sight
accounts
68%
TD>1MM
TD<1MM
35
Market
Share %
Capital: adequate levels of solvency, enough to
face the expected organic growth for coming years
13.8% 13.8%13.1%
17.3%
15.1%14.7%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
22%
4Q16 1Q17 2Q17 Follow-on 3Q17 4Q17
Capital ratio
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.
Minimum Capital
Requirement
+3.5%
Additional
Buffer
(*) Capital ratio according to the Central Bank regulation
Capital ratio(*)
4Q2017
Tier I
13.7%
36
16.7%
Capital Ratio including IFRS adjustments
Clients evolution
2.292.35
2.42
2.51
2.63
4Q16 1Q17 2Q17 3Q17 4Q17
New retail clients
253270
344 300
2015 2016 2017 2018e
Figures in million
Total retail clients
37
YoY
+15.1%
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.
SMEs by segment
39,506 43,359
11,685 14,928
4Q16 4Q17
Total Companies Credit qualified companies
As of Dec-2017
520 519 525 528 539
4Q16 1Q17 2Q17 3Q17 4Q17
Payroll accounts
(*) Payroll market share as of Oct-17
YoY
+3.7%
Figures in thousand
8.4 8.3 8.5 8.5 8.5 (*)
+27.8%
+9.8%
37
Market
Share %
Variations (%) in comparison with the 4Q16
Figures in thousand
Digital performance
38
41.0% 37.7%
20.9%
42.6%
93.1%
Personalloans
CreditCards
Insurance Timedeposits
MutualFunds
26.8%31.4%
40.7%37.0% 38.9%
4Q16 1Q17 2Q17 3Q17 4Q17
% Digital SalesYoY
+1210bp % Digital Sales by productFigures 4Q2017
In line with its transformation strategy, BBVA Francés continues to achieve a positive evolution in terms
of digital sales as well as digital clients.
% Digital clientsDigital clients / Total retail clients (*)
YoY
+670bp
+230
bp
-484
bp+228
bp
-16
bp
-38
bp
Basis points variations in comparison with the previous quarter
38
Digital sales / Total sales
46.6%47.8%
49.6%
51.3%
53.3%
4Q16 1Q17 2Q17 3Q17 4Q17
(*) It only considers target clients
Results 2017
Net Financial
Income
AR$ 3,433 MM+12.0%
Main Figures $ and q/q
Adm. Expenses
AR$ 3,027MM+4.5%
Net Income *
AR$ 902,8 MM+115% 18.2%
ROE*
2.1%
ROA* EFFICIENCY COVERAGE
Net Income from
Services
AR$ 1,191 MM- 3.5%
-591 bp -72 bp -73 bp+400bp
Net Financial
Income
15,040+21.2%
Main Figures $ and YoY
Administrative
Expenses
12,604+32.1%
Net Income
3,878+6.4%
Ratios 2017 YoY
61.0% 44.6%
Net Income from
Services
5,618 +30.0%
39
Ratios calculated on the accumulated resuts basis.
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.
Basis points variations in comparison with the previous quarter
Results 4Q 2017
Net Financial
Income
AR$ 3,433 MM+12.0%
Adm. Expenses
AR$ 3,027MM+4.5%
Net Income *
AR$ 902,8 MM+115%
22.2%
ROE*
2.8%
ROA*
56.8%
EFFICIENCY
10.6%
NIM COVERAGE
46.3%
Net Income from
Services
AR$ 1,191 MM- 3.5%
(*) Quarterly annualized ratios
+ 55 bp + 28 bp - 318 bp- 25 bp- 4 bp
Net Financial
Income
4,573+15.2%
Adm. Expenses
3,524+11.7%
Net Income
1,421+25.2%
Ratios 4Q 2017 QoQ
EFFICIENCY COVERAGE
Net Income from
Services
1,632 +4.5%
40
Main Figures MM AR$ and QoQ
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.
Net income and main indicators
41
ROA
14.3%10.5%
22.3% 21.7% 22.2%
4Q17 1Q17 2Q17 3Q17 4Q17
3.0%
1.0%
2.0%2.5% 2.8%
4Q16 1Q17 2Q17 3Q17 4Q17
66.1% 67.4% 65.5% 57.0% 56.8%
4Q16 1Q 17 2Q 17 3Q17 4Q17
Administrative expenses / (Net Financial Income + Net Income
from Services)
Net income
Efficiency
582420
9031,135
1,421
4Q16 1Q17 2Q17 3Q17 4Q17
Figures in million AR$
1Q17 and 2Q17 without considering fiscal provision effect
41
QoQ
25.2%QoQ
+50bp
ROE
QoQ
+30bp
QoQ
-20bp
Gradual improvement in profitability and efficiency.
Net Interest Margin and NIM
Good dynamism in the net interest margin since the 2Q17, sustained by a highlighted growth in the
loan portfolio.
Net Financial
Income
458 306432
634
728
3,2523,064
3,433
3,970
4,573
4Q16 1Q17 2Q17 3Q17 4Q17
Foreign exchange differences
Figures in million AR$
YoY
40.6%
42
14.5%12.9% 13.0% 12.7% 12.9%
12.5%11.7% 11.4%
10.7% 10.6%
4Q16 1Q17 2Q17 3Q17 4Q17
With FX Without FX
Total NIM
(AR$+USD)
Total NIM
AR$
Total NIM
USD
15.1%
14.5%
14.2% 14.3%14.5%
4Q16 1Q17 2Q17 3Q17 4Q17
2.0%1.8% 1.9% 1.8%
2.3%
4Q16 1Q17 2Q17 3Q17 4Q17
Physical bills balance evolution
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.
Figures in million AR$
QoQ
-3.3%
3,4133,842 3,744
4,104
6,606
4,5754,029 3,898
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
Cash balance evolution (*)
5.7%6.1% 5.6% 5.9%
8.9%
5.9%5.1%
4.5%
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
QoQ
-60bp
Cash balance / Total deposits (*)
(*) Quarterly average balances in local currency
43
Total deposits without considering deposits from the Public Sector
44
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.
Fees and ExpensesFigures in million AR$
2,399 2,482 2,486 2,938 3,172
-1,322 -1,248 -1,295 -1,376 -1,540
1,076 1,632
4Q16 1Q17 2Q17 3Q17 4Q17
Services income Services expenses
Net income from services
2,861 2,898 3,0273,156
3,524
4Q16 1Q17 2Q17 3Q17 4Q17
YoY
51.6%
YoY
23.2%
Administrative ExpensesNet Income from Services
45
The Bank continues to focus on improving the expenses
side and increasing the productivity in branches
Total cashier operationsCarriage of valuables
81.7 85.7
118.1
145.4164.9
179.1160.2
178.8
5.3% 5.1%
6.1%
0%
2%
4%
6%
8%
10%
12%
14%
16%
0
50
100
150
200
Carriage of valuables Inflation (right) *
1.221.04 0.98 1.03
0
0.5
1
1.5
4Q16 2Q17 3Q17 4Q17
# millions of teller operationsIn million AR$
(*) Inflation (end of period): quarterly variation
YoY
-15.3%QoQ
+11.6%
Migrations to digital account
statements
Figures accumulated as a percentage of total clients to
migrate
4%17%
28%
50%
85%99% 100%
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 .
2018 Main drivers
46
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.
Under Control – In line or slightly above inflation
Lower income tax
Positive trend in net
income for 2018
06Annex
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 4,573 15.2% 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 1,632 4.5% 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 2,303 23.0% 102.5%
Income (Loss) from equity
investments17 20 155 118 107 -9.9% 523.8%
Income (Loss) from Minority
interest(14) (28) (30) (18) (27) -49.2% -103.0%
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 1,606 -283,0 1,135 1,421 25.2% 144.0%
Net income without fiscal
provision582,4 420,0 902,8 1,135 1,421 25.2% 144.0%
BBVA Francés P&L Breakdown
48
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 37,664 34.8% -21.9%
BCRA Bills & Notes 7,375 17,094 17,556 13,696 16,663 21.7% 125.9%
Public sector assets 5,277 6,890 7,958 16,337 16,890 3.4% 220.1%
Private Loans 78,791 82,912 89,518 111,676 128,366 14.9% 62.9%
Others 11,947 36,283 20,335 30,366 26,027 -14.3% 117.8%
TOTAL ASSETS (*) 151,715 184,328 172,415 200,023 225,610 12.8% 48.7%
Deposits 114,622 122,822 125,674 129,948 154,050 18.5% 34.4%
Others 20,634 44,351 29,870 45,436 45,504 0,1% 120.5%
TOTAL LIABILITIES 135,255 167,163 155,544 175,384 199,554 13.8% 47.5%
TOTAL NET WORTH 16,460 17,155 16,872 24,639 26,057 5.8% 58.3%
TOTAL LIABILITIES +
NET WORTH151,715 184,328 172,415 200,023 226,610 12.8% 48.7%
49(*) Total Assets contain certain repo operations that are duplicated
40
70
100
130
160
190
220
250
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
FRAN GGAL BMA SUPV
ADRs performance 100 points base as of September 1, 2016
Market data at the end of December , 2017
Source: Bloomberg
Mkt Cap (MM u$s)
Avg ADR volume (MM u$s) (*)
Floating (**)
FRAN GGAL BMA
26.6% 36.1% 30.0%
5,146 9,395 7,760
8.34 28.18 36.49
Market Data
50
SUPV
2,678
11.57
46.2%
(*) Average volume of the last three months
(**) Without considering the participation of ANSES
Ratings
Rating Agency Instrument Rating Outlook
Fix SCR* Shares 1 Neutral
Negotiable Obligations Global Program
(U$S 750 million)AAA (Arg)
Subordinated Senior Debt AA+ (Arg)
Senior Debt Short Term A1+ (Arg)
Senior Debt Long Term AAA (Arg)
S&P Institutional Rating Long Term raAA Neutral
Institutional Rating Short Term raA-1+
Negotiable Obligations Global Program
(U$S 750 million)raAA Neutral
*In November 2013, Fitch Argentina sold 70% of its capital stock to a local investor group and changed its name to Fix Scr. This new group will be
responsible for the local credit rating. 51
07BBVA Group
BBVA in the world
€ 690billion in total assets
72millon customers
>30countries
8,271branches
31,688ATMs
131,856employees
South America
Argentina
Bolivia
Brazil
Chile
Colombia
Paraguay
Perú
Uruguay
Venezuela
North America
United States
México
Europe
Germany
Belgium
Spain
France
Holland
Italy
Luxembourg
Malta
Portugal
U.K.
Romanía
Russia
Switzerland
Turkey
Asia-Pacífic
Australia
China
EAU
Hong Kong
India
Indonesia
Japan
South Corea
Singapore
Taiwán
Data at the end of December 2017 53
An important
contribution from
emerging markets
Leading franchises in all markets
Net atributtable profit – Breakdown€ million
(*) Spain includes the áreas Banking activity in Spain and Non Core Real Estate. Figures
excludes Corporate Center 54
40%
16%
10%
15%
16%
2%
Mexico España Estados Unidos Turquía América del Sur Resto Eurasia
3.519M€
12M17