Economic Environment

During April and May 2010, economic activity accelerated its pace of recovery.

The Monthly Estimator of Economic Activity (EMAE) grew 3.2% compared to the previous quarter in a seasonally adjusted series. The high level of consumption and an increase in investment drove the recovery.

During the second quarter of 2010, fiscal revenues increased 38.5% compared to the same quarter of the previous year. The recovery was aided by the improvement in economic activity and the contribution of the export tax, following the record harvest recorded, while VAT and Income Tax grew above average in the same period.

The primary fiscal surplus of the national public sector was AR$ 7,617 million; an increase of 185% compared to the second quarter of 2009. The improvement was due to the positive performance of tax collection and other fiscal resources, while primary spending grew 28.3% in annual terms during the second quarter of 2010.

Inflation, as measured by the Consumer Price Index (which is used to calculate the CER adjustment for

some sovereign assets) accumulated 2.3% during the second quarter of 2010.

The BCRA intervention in the FX market was a net purchase of US$3,748 million during the quarter. The exchange rate (according to the BCRA) closed at AR$3.9318 per U.S. dollar, an increase of 1.4% compared to March 31, 2010.

The international reserve stock reached US$49,240 million, increasing US$1,780 million during the quarter.

The Badlar rate at private banks was 10.3% at the end of the quarter, the slight upward trend during the quarter was mainly due to increasing credit demand. However, the liquidity ratios of the financial system remained stable.

Total deposits in the financial system increased 14.6% on average in the second quarter of 2010, while private sector deposits rose 6.3%. Private sector loans showed an increase of 8.7% during the second quarter, reflecting an improvement compared to the performance during the first quarter of 2010.

The Bank

BBVA Banco Francés maintains its leadership position in the Argentine financial system, due to a good balance sheet structure, high levels of liquidity and solvency, the best ratio of asset quality and coverage and excellent earnings, all of which confirm the effectiveness of the strategy implemented.

This strategy is mainly based on continuously improving the distribution network for the purpose of providing the best customer experience. In this regard, the Bank is developing a range of products and services tailored to the needs of each client, with special emphasis on the retail segment and in the small and medium-sized companies segment.

In line with this goal, during June 2010, BBVA Banco Francés and Lanpass, LAN’s frequent flyer program, launched to the market a new group of credit cards. This new agreement allows all BBVA Banco Francés clients to accumulate kilometers through consumption which can be redeemed for tickets to fly via Lan and Oneworld partner airlines, among other benefits.

In the middle market segment, in April 2010, BBVA Banco Francés launched a new line of SME business loans for a total amount of AR$ 400 million to finance investment projects and incorporations to capital goods. This line of loans and leases to all economic activity areas in the country has a period of up to 48 months, with a fixed nominal annual rate of 14.4%. (TFC: 15.4%).

Moreover, with the continued support to the development of agriculture in the country, the Bank designed a wide range of products specifically for the agricultural segment, offering excellent services and technology. In this sense, the Bank signed agreements with a large number of supplier companies in the industry, benefiting customers with lower interest rates to finance the purchase of machinery.

In order to continued to expand the liability products offered, in June 2010, the Bank launched a new investment vehicle, DIVa, (variable rate deposits), which is implemented through time deposits with an interest rate associated to soybean prices, without risking the capital invested.

Presentation of Financial Information

At the end of second quarter 2010, net income totaled AR$ 203.4 million, growing 27.4% compared to the previous quarter, while compared with the same quarter of 2009; the increase was greater than 200%.

As of June 30, 2010, net financial income registered a slight decrease, which was mainly related to lower incomes originated by public bonds, while interest income from the private sector maintained the upward trend.

Provisions for loan losses increased in the second quarter of 2010, as a result of significant growth in the loan portfolio, both in retail segment and in the small and medium-sized companies segment.

Furthermore, net income from services decreased during the second quarter of 2010 due to higher charges for promotions and discounts and the impact of new legislation that eliminates payment of commissions to pay account holders.

During the second quarter of 2010, administrative expenses decreased by 5.4% compared to the previous quarter mainly due to a decline in personnel expenses.

During the quarter, a significant variation in the provision for income tax charge was registered, mainly due to an adjustment in the fiscal valuation of public bonds.

Net Financial Income

Net financial income reached AR$ 433.3 million during the second quarter of 2010.

Net financial income decreased 9.1% compared to the previous quarter, mainly as a consequence of lower income coming from public bonds; which was partially offset by an increase in net financial income generated by private sector intermediation.

Net financial income grew 12.2% compared to the quarter ended June 30, 2009, registering significant growth from the

private sector, as well as the improvement in the valuation of public bonds portfolio.

Income from Public and Private Securities

Income from public and private securities in the second quarter of 2010 dropped 47.1% and 16.8% compared to the previous quarter and the second quarter of 2009, respectively. This lower profitability reflects a different development in valuation of public sector bonds.

Income from Central Bank bills and notes holdings declined 14.3% compared to the previous quarter while profits doubled

compared to the second quarter of 2009, as a result of volume changes in the Bank’s own portfolio and performance of these instruments.

The positive results recorded in holdings booked as available for sale, for both periods are also explained by changes in volume.

Finally, revenues from CER adjustment remained at a similar level to that of the previous quarter.

Net Income from Services

At June 30, 2010, Net Income from services totaled AR$ 249.4 million, implying a decrease of 5.4% compared to the previous quarter, while there was an increase of 14.1% compared to the quarter ended June 30, 2009.

The decrease during the quarter is related first by the increase in expenditures for services following the launch of the Frances Go and LanPass programs and second by the new legislation

that eliminates the collection of fees on payroll accounts. This was partially offset by increased fee income from credit cards, due to higher activity level and greater fees related to foreign and exchange activity.

The increase compared with the second quarter of 2009, is explained by higher income related to credit cards and from capital markets and securities activity despite higher services charge expenses from promotions associated with credit and debit cards consumption.

Administrative Expenses

Administrative expenses decreased 3.4% during the second quarter of 2010, and increased by 23.1% in the last twelve months.

Compared to the previous quarter, the decrease is a result of lower personnel expenses; during the first quarter of 2010, higher charges from voluntary retirements were registered.

The increase in general expenses during the quarter was caused by higher advertising and promotions expenses as a consequence of a more active Frances Go and LanPass campaign, together with a higher charge in bank transactions tax due to the payment of cash dividends for fiscal year 2009.

Personnel expenses increased compared to the same quarter in 2009 due to the labor agreement signed in 2010.

General expenses also grew in the last twelve months due to an increase in commercial activity, higher level of investment associated with changing the imagine of branch offices and the effect of inflation.

As of June 30, 2010, the Bank and its subsidiaries (except the Consolidar Group) had 4,240 employees. The branch office network totaled 271 offices, including 240 consumer branch offices, 27 branch offices specialized in the middle-market segment, 15 in-company branches, 4 branch offices for large corporate and institutional clients and 2 points of sale.

Other Income / Expenses

Other income/expenses totaled a loss of AR$16.9 million during the second quarter of 2010, mainly due to provisions for other contingencies, which was partially offset by recovered credits.

Income from Equity Investments

Income from equity investments sets forth net income from related companies that are not consolidated. During the second quarter of 2010, a gain of AR$16.3 million was recorded, mainly due to BBVA Banco Frances’ stake in the Consolidar Group.

Total Public Sector Exposure

During the second quarter of 2010, total exposure to the public sector national treasury debt maintained a similar level than in recent quarters. It is important to note that the relative weight of public assets is diminishing due to the increase in other assets, mainly the growth of loans to the private sector.

The Bank’s portfolio of Central Bank bills and notes decreased by 27.0% during the second quarter of the year, following the growth of private sector financing.

As of June 30, 2010 public sector national treasury assets represented 9.8% of total assets. Meanwhile, the total exposure, including the portfolio of BCRA bills and notes, reached 18.0% of the Bank’s total assets.

Total exposure to the public sector includes public debt of the national treasury through public securities, guaranteed loans and trustees, and also, the BCRA bills and notes.

Loan Portfolio

The private sector loan portfolio reached AR$ 11,659 million at June 30, 2010, increasing 12.2% and 15.1% compared with the previous quarter and with the same quarter in 2009, respectively.

The significant expansion during the second quarter was driven by growth principally in the middle market segment, where financings for foreign trade operations and other loans showed the best performance, while the increase in

the retail segment was led by growth in credit cards, car loans and personal loans.

Private sector loan’s performance reflected an increase of 15.1% compared to the same quarter of 2009, mainly due to growth in the retail segment. Once again credit cards, personal loans and car loans boosted the expansion. Advances, discounted documents and other loans did the same in the middle market and corporate segments.

Asset Quality

BBVA Banco Francés continued to show solid asset quality and coverage ratios, maintaining its leading position in the Argentine Financial System in terms of the risk assumed.

As of June 30, 2010 asset quality ratio (non-performing loans over total loans) was 0.70%, and the coverage ratio (provisions over of non-performing loans) reached 380.7%.

Asset quality continued to improve compared to the previous quarter and also compared to the same quarter of 2009, reflecting the efficient risk policy implemented by the Bank.

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

Deposits

Total deposits reached more than AR$ 20 billion as of June 30, 2010, increasing 8.5% during the quarter, and 7.7% compared to the second quarter of 2009.

It is important to highlight that current account balances include transitory deposits.

Consequently, excluding such transitory funds, deposits grew 6.6% during the second quarter and 15.8% in the last twelve months.

Similarly, without considering transitory deposits, current accounts increased 24.2% during the last twelve months, representing 56.2% of total deposits at the end of June 30, 2010.

On the other hand, time deposits grew 6.3% and 7.4% compared with the previous quarter and with the second quarter of 2009, respectively.

In terms of currency, recurrent deposits denominated in pesos, grew 6.3% in the second quarter of 2010 and 17.2% in the last twelve months. On the other hand, recurrent deposits denominated in foreign currency increased 7.9% during the second quarter and 11.3% compared with the same quarter a year ago.

Nominal recurrent deposits in foreign currency, excluding the effect of the Argentine Peso devaluation, grew by 6.4% in the quarter and 7.4% in the last twelve months. As of June 30, 2010, recurrent deposits in foreign currency reached AR$4,389 million (equivalent to US$1.116 million), representing 21.8% of total recurrent deposits of the Bank.

Other Funding Sources

Other funding sources grew 15.8% at the end of June 30, 2010, but decreased 11.9% in the last twelve months.

Growth that took place during the quarter is a consequence of higher balances in local currency whereas the balances in foreign currency decreased.

It is important to mention that 20.3% of balances shown in the table below were foreign-currency denominated at the end of June 30, 2010.

Capitalization

As of June 30, 2010, total shareholder’s equity of the Bank totaled AR$ 2.782 million; whereas the excess of capital over the BCRA requirements was AR$1,075 million.

The capital ratio reached 16.9% of risk-weighted assets at June 30, 2010.

The unrealized valuation difference as of March 31, 2010 reached AR$42.1million due to a slight decrease in the value of public bonds labeled as “available for sale”.

It is important to highlight that during the second quarter the Bank paid a cash dividend of AR$ 480 million, in accordance with the resolutions approved in the Ordinary and Special Shareholders’ Meeting held on April 30, 2010, and after receveing the official BCRA authorization.

The variations in the minimum capital required by the Central Bank compared with the prior quarters are mainly related to the cash dividend payment.

By the end of June 30, 2010 the excess of capital over Central Bank requirements represented 38.7% of total stockholders’ equity, demonstrating an excellent level of solvency.

Additional Information

Conference call

A conference call to discuss second quarter earnings will be held on Wednesday, August 11th, 2010, at 11:00 AM New York time – 12.00 PM Buenos Aires time. If you are interested in participating, please dial (888) 668 1645 within the U.S. or +1 (913) 312 1466 outside the U.S. at least 5 minutes prior to our conference. Confirmation code: 9214053.

A conference call replay facility will be available from August 11th through August 26th, 2010. In order to listen to this digital replay, please call (888) 203 1112 within the U.S. or +1 (719) 457 0820 outside the U.S. Access Code: 9214053.

Internet

This press release is also available on www.bancofrances.com.ar

CONTACTS

Daniel Sandigliano

Investor Relations

(5411) 4341-5036

daniel.sandigliano@bancofrances.com.ar

Cecilia Acuña

Investor Relations

(5411) 4348-0000 int. 25384

cecilia.acuna@bancofrances.com.ar