Edgar Filing: BBVA BANCO FRANCES SA

Net income for the period

Earning per share for the period – (stated in pesos)

Form 6-K

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Issuer

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

of the Securities Exchange Act of 1934

For the month of August, 2015

Commission File Number: 001-12568

BBVA FRENCH BANK S.A.

(Translation of registrant’s name into English)

Reconquista 199, 1006

Buenos Aires, Argentina

(Address of principal executive offices)

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

Form 20-F

Form 40-F

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

Yes

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

Yes

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

Yes

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

BBVA French Bank S.A.

TABLE OF CONTENTS


Item

1.		Financial Statements as of June 30, 2015 together with Independent Auditors´ Report




		FINANCIAL STATEMENTS AS OF JUNE 30, 2015 TOGETHER WITH INDEPENDENT AUDITORS’ REVIEW REPORT.

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BALANCE SHEETS AS OF

JUNE 30, 2015 AND DECEMBER 31, 2014

(Translation of financial statements originally issued in Spanish - See note 21)

-Stated in thousands of pesos-


ASSETS:	06-30-2015		12-31-2014

A. CASH AND DUE FROM BANKS:
Cash		2,565,031		2,857,658
Due from banks and correspondents		11,032,816		9,668,573


Argentine Central Bank (BCRA)		9,758,663		9,325,330
Other local		1,993		1,094
Foreign		1,272,160		342,149


		13,597,847		12,526,231


B. GOVERNMENT AND PRIVATE SECURITIES:
Holdings booked at fair value (Exhibit A)		2,628,091		2,941,865
Holdings booked at amortized cost (Exhibit A)		164		164
Instruments issued by the BCRA (Exhibit A)		11,513,524		8,630,056
Investments in listed private securities (Exhibit A)		173		178
Less: Allowances (Exhibit J)		201		201


		14,141,751		11,572,062


C. LOANS:
To government sector (Exhibits B, C and D)		60,473		54,459
To financial sector (Exhibits B, C and D)		1,749,780		2,216,310


Interfinancial – (Call granted)		23,000		30,000
Other financing to local financial institutions		1,284,168		1,691,857
Interest and listed-price differences accrued and pending collection		442,612		494,453

To non financial private sector and residents abroad (Exhibits B, C and D)		45,049,474		39,045,753


Overdraft		8,349,886		6,861,786
Discounted instruments		6,552,563		6,035,048
Real estate mortgage		1,696,271		1,466,346
Collateral Loans		1,887,992		1,651,228
Consumer		6,353,803		6,091,935
Credit cards		13,342,004		11,465,609
Other		6,303,411		4,953,604
Interest and listed-price differences accrued and pending collection		697,924		654,109
Less: Interest documented together with main obligation		134,380		133,912

Less: Allowances (Exhibit J)		974,874		905,336


		45,884,853		40,411,186


D. OTHER RECEIVABLES FROM FINANCIAL TRANSACTIONS:
Argentine Central Bank (BCRA)		647,182		384,930
Amounts receivable for spot and forward sales to be settled		2,476,294		1,405,562
Instruments to be received for spot and forward purchases to be settled		2,522,519		312,684
Unlisted corporate bonds (Exhibits B, C and D)		12,813		48,653
Non-deliverable forward transactions balances to be settled		40,400		140,326
Other receivables not covered by debtor classification regulations		6,720		14,873
Other receivables covered by debtor classification regulations (Exhibits B, C and D)		257,914		257,778
Less: Allowances (Exhibit J)		1,715		2,139


		5,962,127		2,562,667


E. RECEIVABLES FROM FINANCIAL LEASES:
Receivables from financial leases (Exhibits B, C and D)		2,079,552		1,995,716
Interest accrued pending collection (Exhibits B, C and D)		26,416		25,961

Less: Allowances (Exhibit J)		29,347		28,808


		2,076,621		1,992,869


F. INVESTMENTS IN OTHER COMPANIES:
In financial institutions (Exhibit E)		468,384		527,403
Other (Note 5.a.) (Exhibit E)		217,242		164,615


		685,626		692,018


G. OTHER RECEIVABLES:
Other (Note 5.b.)		1,987,393		1,595,869
Other interest accrued and pending collection		601		744
Less: Allowances (Exhibit J)		349,510		291,237


		1,638,484		1,305,376


H. PREMISES AND EQUIPMENT (Exhibit F):		993,209		924,237


I. OTHER ASSETS (Exhibit F):		1,331,853		1,144,815


J. INTANGIBLE ASSETS (Exhibit G):
Organization and development expenses		175,867		144,357


		175,867		144,357


K. SUSPENSE ITEMS:		6,011		8,542


TOTAL ASSETS:		86,494,249		73,284,360

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(Contd.)

BALANCE SHEETS AS OF JUNE 30, 2015 AND DECEMBER 31, 2014

(Translation of financial statements originally issued in Spanish - See note 21)

-Stated in thousands of pesos-


LIABILITIES:	06-30-2015		12-31-2014

L. DEPOSITS (Exhibits H and I):
Government sector		1,590,906		1,017,837
Financial sector		77,168		77,482
Non financial private sector and residents abroad		58,326,573		50,340,332


Checking accounts		15,435,058		14,622,588
Savings deposits		17,589,254		15,005,261
Time deposits		23,610,325		19,279,641
Investments accounts		14,959		483
Other		1,328,884		1,129,571
Interest and listed-price differences accrued payable		348,093		302,788


		59,994,647		51,435,651



M. OTHER LIABILITIES FROM FINANCIAL TRANSACTIONS:
Argentine Central Bank (Exhibit I)		61,437		73,110


Other		61,437		73,110

Banks and International Institutions (Exhibit I)		361,145		406,031
Unsubordinated corporate bonds (Exhibit I)		1,570,607		1,662,789
Amounts payable for spot and forward purchases to be settled		2,405,053		312,751
Instruments to be delivered for spot and forward sales to be settled (Exhibit O)		2,517,799		1,457,098
Financing received from Argentine financial institutions (Exhibit I)		196,086		--,--


Other financing from local financial institutions		196,000		--,--
Interest accrued payable		86		--,--
Non-deliverable forward transactions balances to be settled		16		54
Other (Note 5.c.) (Exhibit I)		3,929,227		4,091,393
Interest and listed-price differences accrued payable (Exhibit I)		62,997		66,653


		11,104,367		8,069,879



N. OTHER LIABILITIES:

Dividends payable		400,000		--,--
Other (Note 5.d.)		2,536,888		2,645,736


		2,936,888		2,645,736



O. ALLOWANCES (Exhibit J):		901,257		771,073


P. SUSPENSE ITEMS:		27,058		30,145


TOTAL LIABILITIES:		74,964,217		62,952,484


STOCKHOLDERS’ EQUITY: (as per the related statements of changes in stockholders’ equity)		11,530,032		10,331,876


TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY:		86,494,249		73,284,360

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MEMORANDUM ACCOUNTS

(Translation of financial statements originally issued in Spanish - See note 21)

-Stated in thousands of pesos-


	06-30-2015		12-31-2014
DEBIT ACCOUNTS

Contingent
– Guaranties received		16,071,886		11,585,575
– Contra contingent debit accounts		2,260,274		1,750,341



		18,332,160		13,335,916


Control
– Receivables classified as irrecoverable		652,758		517,974
– Other (Note 5.e.)		146,734,653		120,090,317
– Contra control debit accounts		1,619,053		1,217,512



		149,006,464		121,825,803


Derivatives (Exhibit O)
– “Notional” amount of non-deliverable forward transactions		2,140,619		2,984,388
– Interest rate swap		745,968		1,097,965
– Contra derivatives debit accounts		2,631,574		2,915,793



		5,518,161		6,998,146


For trustee activities
– Funds in trust		--,--		6,605



		--,--		6,605



TOTAL		172,856,785		142,166,470


CREDIT ACCOUNTS

Contingent
– Credit lines granted (unused portion) covered by debtor classification regulations (Exhibits B, C and D)		1,015,985		640,198
– Guaranties provided to the BCRA		194,413		223,973
– Other guaranties given covered by debtor classification regulations (Exhibits B, C and D)		446,080		384,982
– Other guaranties given non covered by debtor classification regulations		210,876		210,453
– Other covered by debtor classification regulations (Exhibits B, C and D)		392,920		290,735
– Contra contingent credit accounts		16,071,886		11,585,575



		18,332,160		13,335,916


Control
– Items to be credited		1,339,632		965,725
– Other		279,421		251,787
– Contra control credit accounts		147,387,411		120,608,291



		149,006,464		121,825,803


Derivatives (Exhibit O)
– “Notional” amount of non-deliverable forward transactions		2,631,574		2,915,793
– Contra derivatives credit accounts		2,886,587		4,082,353



		5,518,161		6,998,146


For trustee activities
– Contra credit accounts for trustee activities		--,--		6,605



		--,--		6,605



TOTAL		172,856,785		142,166,470

The accompanying notes 1 through 21 and exhibits A through L, N and O and the consolidated financial statements with its notes and exhibits are an integral part of these statements.

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STATEMENTS OF INCOME FOR THE SIX MONTH PERIODS

ENDED JUNE 30, 2015 AND 2014

(Translation of financial statements originally issued in Spanish – See note 21)

- Stated in thousands of pesos -


	06-30-2015		06-30-2014
A. FINANCIAL INCOME

Interest on loans to the financial sector		272,744		325,049
Interest on overdraft		980,104		993,728
Interest on discounted instruments		626,084		589,557
Interest on real estate mortgage		141,885		109,602
Interest on collateral loans		206,779		144,115
Interest on credit card loans		1,326,418		879,363
Interest on other loans		1,520,042		1,301,054
Interest on other receivables from financial transactions		108		3,770
Interest on financial leases		181,397		148,912
Income from secured loans - Decree 1387/01		7,509		8,988
Net income from government and private securities		1,514,235		726,780
Indexation by benchmark stabilization coefficient (CER)		97,529		193,151
Gold and foreign currency exchange difference		225,971		646,876
Other		159,265		503,148



		7,260,070		6,574,093


B. FINANCIAL EXPENSE

Interest on savings deposits		9,692		9,243
Interest on time deposits		2,261,254		2,141,736
Interest on interfinancial financing (call borrowed)		7,198		5,195
Interest on other financing from financial institutions		2		--,--
Interest on other liabilities from financial transactions		215,201		139,983
Other interest		3,259		4,304
Indexation by CER		27		119
Contribution to the deposit guarantee fund		182,565		38,520
Other		401,547		407,283



		3,080,745		2,746,383



GROSS INTERMEDIATION MARGIN – GAIN		4,179,325		3,827,710



C. ALLOWANCES FOR LOAN LOSSES		320,443		263,400


D. SERVICE CHARGE INCOME

Related to lending transactions		1,000,801		718,019
Related to liability transactions		908,168		693,170
Other commissions		86,653		69,226
Other (Note 5.f.)		536,827		432,486



		2,532,449		1,912,901


E. SERVICE CHARGE EXPENSE

Commissions		726,666		365,967
Other (Note 5.g.)		257,675		193,431



		984,341		559,398

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(Contd.)

STATEMENTS OF INCOME FOR THE SIX MONTH PERIODS

ENDED JUNE 30, 2015 AND 2014

(Translation of financial statements originally issued in Spanish - See note 21)

- Stated in thousands of pesos -


	06-30-2015		06-30-2014

F. ADMINISTRATIVE EXPENSES

Payroll expenses		1,753,177		1,416,024
Fees to Bank Directors and Supervisory Committee		2,816		2,606
Other professional fees		35,251		27,390
Advertising and publicity		104,672		101,810
Taxes		306,581		222,652
Fixed assets depreciation		101,140		62,406
Organizational expenses amortization		30,659		27,524
Other operating expenses		425,504		359,976
Other		267,999		287,763



		3,027,799		2,508,151



NET GAIN FROM FINANCIAL TRANSACTIONS		2,379,191		2,409,662


G. OTHER INCOME

Income from long-term investments		186,911		159,385
Punitive interests		13,989		10,525
Loans recovered and reversals of allowances		60,818		64,906
Other (Note 5.h.)		122,857		109,758



		384,575		344,574


H. OTHER EXPENSE

Punitive interests and charges paid to BCRA		4		12
Charge for uncollectibility of other receivables and other allowances		212,576		109,641
Amortization of difference arising from judicial resolutions		4,074		7,641
Depreciation and losses from miscellaneous assets		180		169
Other (Note 5.i)		89,776		40,804



		306,610		158,267



NET GAIN BEFORE INCOME TAX		2,457,156		2,595,969



I. INCOME TAX (Note 4.1)		859,000		834,800



NET INCOME FOR THE PERIOD		1,598,156		1,761,169

The accompanying notes 1 through 21 and exhibits A through L, N and O and the consolidated financial statements with its notes and exhibits are an integral part of these statements.

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STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

FOR THE SIX MONTH PERIODS ENDED JUNE 30, 2015 AND 2014

(Translation of financial statements originally issued in Spanish – See note 21)

- Stated in thousands of pesos -


2015																	2014

					Non capitalized contributions				Retained earnings
Movements			Capital Stock		Issuance premiums		Adjustments to stockholders’ equity (1)		Legal		Other		Unappropriated earnings		Total		Total


	1.	Balance at beginning of fiscal year		536,878		182,511		312,979		1,900,721		4,194,291		3,204,496		10,331,876		7,156,180

	2.	Stockholders’ Meeting held on April 7, 2015
	- Dividends paid in cash			--,--		--,--		--,--		--,--		--,--		(400,000)		(400,000)		(28,800)
	- Legal reserve			--,--		--,--		--,--		640,899		--,--		(640,899)		--,--		--,--
	- Voluntary reserve for future distributions of income			--,--		--,--		--,--		--,--		2,163,597		(2,163,597)		--,--		--,--

	3.	Net income for the period		--,--		--,--		--,--		--,--		--,--		1,598,156		1,598,156		1,761,169



	4.	Balance at the end of the fiscal year		536,878		182,511		312,979		2,541,620		6,357,888		1,598,156		11,530,032		8,888,549

(1)

Adjustments to stockholders’ equity refer to Adjustment to Capital Stock.

The accompanying notes 1 through 21 and exhibits A through L, N and O and the consolidated financial statements with its notes and exhibits are an integral part of these statements.

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STATEMENTS OF CASH AND CASH EQUIVALENTS FLOW FOR THE

SIX MONTH PERIODS ENDED JUNE 30, 2015 AND 2014

(Translation of financial statements originally issued in Spanish - See note 21)

-Stated in thousands of pesos-


	06-30-2015			06-30-2014
CHANGES IN CASH AND CASH EQUIVALENTS

Cash and cash equivalents at the beginning of the fiscal year		13,051,491	(1)		13,604,191	(1)
Cash and cash equivalents at the end of the period		13,976,457	(1)		12,177,562	(1)



Net increase / (decrease) in cash and cash equivalents		924,966			(1,426,629)



REASONS FOR CHANGES IN CASH AND CASH EQUIVALENTS

Operating activities

Net payments from:
- Government and private securities		(1,055,454)			(5,794,412)
- Loans		(195,723)			3,714,328



to financial sector		267,349			314,323
to non-financial public sector		(156)			(477)
to non-financial private sector and residents abroad		(462,916)			3,400,482
- Other receivables from financial transactions		(124,770)			72,502
- Receivables from financial leases		(83,752)			(163,460)
- Deposits		5,689,778			1,627,801



to financial sector		(314)			(18,711)
to non-financial public sector		574,374			1,118,815
to non-financial private sector and residents abroad		5,115,718			527,697
- Other liabilities from financial transactions		(89,822)			502,696


Financing from financial or interfinancial sector (call borrowed)		196,000			15
Others (except liabilities included in Financing Activities)		(285,822)			502,681
Collections related to service charge income		2,538,434			1,889,441
Payments related to service charge expense		(988,287)			(558,013)
Administrative expenses paid		(2,929,650)			(2,467,638)
Organizational and development expenses paid		(26,362)			(10,642)
Net collections from punitive interest		13,985			10,513
Differences from judicial resolutions paid		(4,074)			(7,641)
Collections of dividends from other companies		18,654			20,070
Other collections related to other income and expenses		93,522			130,445



Net cash flows provided by / (used in) operating activities		2,856,479			(1,034,010)



Investment activities

Net payments from premises and equipment		(115,413)			(82,875)
Net collections from other assets		(274,406)			(315,264)
Other collections / (payments) from investment activities		(222,278)			(116,471)



Net cash flows used in investment activities		(612,097)			(514,610)



Financing activities

Net (payments) / collections from:
- Unsubordinated corporate bonds		(92,182)			403,996
- Argentine Central Bank		(11,569)			(9,759)



Other		(11,569)			(9,759)
- Banks and international agencies		(44,886)			315,146
Other collections / (payments) related to financing activities		(1,170,779)			(587,392)



Net cash flows (used in) / provided by financing activities		(1,319,416)			121,991







Net increase / (decrease) in cash and cash equivalents		924,966			(1,426,629)

(1)	See note 16 “Statements of cash and cash equivalents flow”.

The accompanying notes 1 through 21 and exhibits A through L, N and O and the consolidated financial statements with its notes and exhibits are an integral part of these statements.

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NOTES TO THE FINANCIAL STATEMENTS AS OF JUNE 30, 2015, PRESENTED IN

COMPARATIVE FORM WITH THE BALANCE SHEET AS OF DECEMBER 31, 2014, AND THE

STATEMENTS OF INCOME, CHANGES IN STOCKHOLDERS’ EQUITY AND CASH AND CASH

EQUIVALENTS FLOW AS OF JUNE 30, 2014

(Translation of financial statements originally issued in Spanish - See note 20)

(Stated in thousands of pesos)

CORPORATE SITUATION AND BANK’S ACTIVITIES

1.1 Corporate situation

BBVA Banco Francés S.A. (hereinafter indistinctly referred to as either “BBVA Francés” or the “Bank”) has its headquarter in Buenos Aires, Argentina, and operates a 251-branch network.

As from December, 1996, BBVA Francés is part of Banco Bilbao Vizcaya Argentaria S.A.’s (BBVA) global strategy, which controls the Bank, direct and indirectly, with 75.95% of the corporate stock as of June 30, 2015.

Part of the Bank’s corporate stock is publicly traded and has been registered with the Buenos Aires Stock Exchange, New York Stock Exchange and Madrid Stock Exchange.

1.2 Capital stock

Changes in the Bank’s capital stock during the last five fiscal years are as follows:


Date of
Stockholders’ Meeting deciding on the issuance	Registration with the Public Registry of Commerce (RPC)	Form of placement	Amount	Total

Capital Stock as of December 31, 2010:				536,361

03-30-2011	09-14-2011	(1)	517	536,878
03-26-2012	03-27-2014	(2)	50,410
03-26-2012	03-27-2014	(2)	(50,410)	536,878	(3)

(1)

Due to the merger of Consolidar Comercializadora S.A. into BBVA Francés.

(2)

Due to the merger of Inversora Otar S.A. into BBVA Francés.

(3)

The amount of Capital Stock is fully paid in and authorized for public offering by National Securities Commission (CNV).

1.3 Registration with CNV as Settlement and Clearing Agent - Comprehensive

The Capital Markets Law Nr. 26,831, enacted on December 28, 2012 and then regulated by CNV’s General Resolution Nr. 622/13 on September 5, 2013 sets forth, in its Section 47 that agents are under a duty to register with the CNV for interacting with the market in any of the modalities established in CNV’s General Resolution Nr. 622/13. The filing to register the Bank as a Settlement and Clearing Agent – Comprehensive started on December 17, 2013 and was completed on September 19, 2014 when the Bank was registered under Number 42.

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1.4 Responsibility of stockholders

BBVA Francés is a corporation established under the laws of the Argentine Republic, and the responsibility of its stockholders is limited to the value of the paid - in shares, in accordance with Law Nr. 19,550. As a result, in compliance with Law Nr. 25,738, it is hereby informed that neither the foreign capital majority stockholders nor the local or foreign stockholders will respond, in excess of the mentioned paid-in stockholding, for the liabilities arising out of the transactions performed by the financial institution.

SIGNIFICANT ACCOUNTING POLICIES

2.1 Restatement of the financial statements in equivalent purchasing power

The financial statements have been taken from the Bank’s books of account in conformity with the standards of the BCRA.

By Communication “A” 3921 of the BCRA and General Resolution Nr. 441/03 of the CNV, in compliance with Decree 664/03 of the Federal Executive, application of the restatement method on financial statements in equivalent purchasing power has been suspended as from March 1, 2003.

Argentina’s professional accounting standards require applying Technical Pronouncement Nr. 6 of the Argentine Federation of Professional Councils in Economic Sciences (F.A.C.P.C.E.) (as amended by Technical Resolution Nr. 19) which sets forth that financial statements are to be restated in constant currency when the country’s economic environment exhibits certain characteristics. A prerequisite for the application of this pronouncement is that inflation as accumulated throughout a 3-year period, measured by the so-called Domestic Wholesale Price Index (IPIM) published by Argentina’s Official Statistics Bureau –the National Statistics and Censuses Institute- attains or exceeds 100%. Inflation accumulated in the period December 31, 2011 to December 31, 2014, measured by the above-mentioned index was 67%. Therefore, the prerequisite for restatement into constant currency of the information contained in the financial statements is not satisfied. The above notwithstanding, it should be noted that if this prerequisite were satisfied, the restatement will be mandatory. At the date of issuance of these financial statements, the considerations discussed above still hold valid.

2.2 Comparative information

In accordance with BCRA Communication “A” 4667, the Balance Sheet and the Exhibits that so specify include the comparative information as of December 31, 2014, while the Statements of Income, Changes in Stockholders’ Equity and Cash and cash equivalents flow show comparative information as of June 30, 2014.

2.3 Valuation methods

The main valuation methods used in the preparation of the financial statements have been as follows:

Foreign currency assets and liabilities:

As of June 30, 2015 and the end of the previous fiscal year, such amounts were translated into pesos at the benchmark exchange rate of the BCRA as of the closing date of transactions on the last business day of the period or fiscal year. The exchange differences were charged to income (loss) for the period or fiscal year.

Government and private securities:

•

Holdings booked at fair value and instruments issued by the BCRA at fair value: they were valued based on current listed prices or the prevailing present value for each security as of June 30, 2015 and the end of the previous fiscal year. Differences in listed prices were credited/charged to income for the period or fiscal year.

•

Holdings booked at amortized cost and instruments issued by the BCRA at amortized cost: as of June 30, 2015 and the end of the previous fiscal year, these were valued using the amount of initial recognition, rose on the basis of the interest accrued as per the internal rate of return.

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•

Investments in listed private securities, equity and debt instruments: they were valued based on current listed prices as of June 30, 2015 and the end of the previous fiscal year. Differences in listed prices were charged to income for the period or fiscal year.

Loans to Government Sector:

Federal Government secured loans – Decree Nr. 1387/2001:

As of June 30, 2015 and the end of the previous fiscal year, the secured loans were valued at the highest amount resulting from a comparison between the present value as estimated by BCRA and the book value in accordance with the provisions under BCRA’s Communication “A” 5180. In addition, the amount required to take their book values to their fair realizable values is recorded in a balancing account.

Interest accrual:

Interest has been accrued according to a compound interest formula in the periods in which it was generated, except interest on transactions in foreign currency, those whose maturity does not exceed 92 days, and adjustable assets and liabilities which were recognized on a linear basis.

Benchmark stabilization coefficient (CER):

As of June 30, 2015 and the end of the previous fiscal year, receivables and payables have been adjusted to the CER as follows:

Federal government secured loans have been adjusted under Resolution Nr. 50/2002 of the Ministry of Economy, which resolved that the CER business 10 (ten) days prior to the maturity date of the related service will be considered for yield and repayments of the loans.

Federal Government Secured Bonds due in 2020: have been adjusted under Resolution Nr. 539/2002 of the Ministry of Economy, which resolved that the CER business 5 (five) days prior to the maturity date of the related service will be considered for yield and repayment of the bonds.

Deposits and other assets and liabilities: have been adjusted considering the CER prevailing as of June 30, 2015 and the end of the previous fiscal year.

Allowance for loan losses and contingent commitments:

For loans, other receivables from financial transactions, receivables from financial leases, receivables from sale of property assets and contingent commitments: the allowances have been calculated based on the Bank’s estimated loan loss risk in light of debtor compliance and the collaterals supporting the respective transactions, as provided by Communication “A” 2950 and supplemented of the BCRA.

Instruments to be received and to be delivered for spot and forward transactions pending settlement:

In foreign currency: they were valued according to the benchmark exchange rate of the BCRA for each currency determined on the last business day of the end of the period or fiscal year.

Securities: with Holdings of government and private securities and Instruments issued by BCRA at fair value and at amortized cost: as of June 30, 2015 and the end of the previous fiscal year, they were valued according to the method described in 2.3.b).

Amounts receivable and payable for spot and forward transactions pending settlement:

They were valued based on the prices agreed upon for each transaction, plus related premiums accrued as of June 30, 2015 and the end of the previous fiscal year.

Unlisted Corporate Bonds:

They were valued at acquisition cost plus income accrued but not collected as of June 30, 2015 and the end of the previous fiscal year.

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Receivables from financial leases:

As of June 30, 2015 and the end of the previous fiscal year, they were valued at the present value of the sum of the periodical instalments and the unguaranteed residual value, calculated as per the conditions agreed upon in the respective leases, applying the implicit interest rate thereto.

Investments in other companies:

Investments in controlled financial institutions, supplementary activities and authorized were valued based on the following methods:

•

BBVA Francés Valores S.A., Consolidar Administradora de Fondos de Jubilaciones y Pensiones S.A. (undergoing liquidation proceedings), PSA Finance Argentina Compañía Financiera S.A., BBVA Francés Asset Management S.A. Sociedad Gerente de Fondos Comunes de Inversión and Rombo Cía. Financiera S.A.: were valued by applying the equity method at the end of the period or fiscal year.

Although the Bank has a 40% interest ownership in the capital stock and votes of Rombo Cía. Financiera S.A., operational and financial decisions at Rombo Cía. Financiera S.A. are taken together with this company’s majority shareholder on a joint control basis.

Investments in non controlled financial institutions, supplementary activities and authorized were valued according to the following methods:

•

Prisma Medios de Pago S.A. (formerly Visa Argentina S.A.) and Interbanking S.A.: were valued by applying the equity method at the end of the period or fiscal year.

•

Bladex S.A.: was valued at acquisition cost in foreign currency plus the nominal value of stock dividends received, converted into pesos based on the method described in 2.3.a).

•

Other: valued at acquisition cost, without exceeding their recoverable value.

Other non controlled affiliates were valued based on the following methods:

•

BBVA Consolidar Seguros S.A.: was valued by applying the equity method at the end of the period or fiscal year.

•

S.W.I.F.T. S.C.R.L.: was valued at acquisition cost in foreign currency plus the nominal value of stock dividends received, converted into pesos based on the method described in 2.3.a).

Premises and equipment and Other assets:

They have been valued at acquisition cost plus increases from prior-year appraisal revaluations, restated as explained in note 2.1, less related accumulated depreciation calculated in proportion to the months of estimated useful life of items concerned (see Exhibit F), without exceeding their recoverable value.

Intangible assets:

They have been valued at acquisition cost less related accumulated amortization calculated in proportion to the months of estimated useful life of the items concerned (see useful life assigned in Exhibit G).

This caption included the differences arising from compliance with court-ordered measures arising from cases challenging the current rules and regulations applicable to deposits with the financial system in the framework of the provisions of Law Nr. 25,561, Decree Nr. 214/02 and supplementary provisions. The assets mentioned (calculated on the basis of the nominal difference between the exchange rate freely determined in the market and applied to the value of the deposit recorded in the books at that date) was amortized within the 60 monthly instalments starting in April 2003 in accordance with Communication “A” 3916 of the BCRA.

As of June 30, 2015 and the end of the previous fiscal, these assets have been fully amortized, with the total accumulated amortization as of those dates amounting to 1,438,553 and 1,434,479, respectively.

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The Bank, however, notifies that such amortization was solely calculated to comply with the regulations of the BCRA and that by no means does it imply a waiver to possible compensation or recovery of the exchange difference resulting from compliance with court orders corresponding to petitions for protection of civil rights or other court action derived from the mandatory conversion of bank deposits into pesos.

Pursuant to the decisions handed down by Argentina’s Supreme Court of Justice (“Massa, Juan Agustín v. Argentine Executive Branch – Executive Order 1570/ et al over action for the protection of constitutional rights (amparo) Law Nr. 16,986” and “Kujarchuk v. Argentine Executive Branch”), a calculation method was established for the payment of bank deposits that was different from the one that had been instituted by the Argentine Executive Branch.

As of June 30, 2015 and the end of the previous fiscal year, the Bank has estimated this contingency and it has recorded allowances for the total amount.

The Bank expects that the Argentine State remedies the significant damage resulting from compliance with court-ordered measures on petitions for protection of civil rights and actions for relief, particularly due to the impact of differences in compensation or recovery as per the rulings in the above-mentioned actions and according to the law in relation to the “pesification” of the underlying deposits. In this regard, the Bank has informed of such financial damages to the relevant authorities, with reservation of rights.

Derivative transactions (see note 12):

•

Interest rate swaps and Forward transactions:

Interest rate swaps are recorded at the value resulting from the application of rates differences to residual notional amounts at the end of the period or fiscal year.

Forward transactions receivable/payable in pesos without delivery of the underlying asset are recorded for the amount receivable or payable, as appropriate, arising from the difference between the agreed exchange rate and the exchange rate at the end of the period or fiscal year as applied to stated notional amounts.

•

Repo and Reverse Repo transactions

As of June 30, 2015 and the end of the previous fiscal year, the repos whose underlying assets are not subject to the volatilities published by BCRA were valued as per the cost of each transaction and the repos whose underlying assets are subject to volatility were recorded at their quoted value. Accrued premiums were charged to income (loss) for the period or fiscal year.

Employee termination pay:

The Bank expenses employee termination pay as disbursed.

Other liabilities:

They include the debit balances non arising out of transactions relating to the supply and demand of financial resources, plus the adjustments and interest payable accrued as of June 30, 2015 and the end of the previous fiscal year.

Allowance for other contingencies:

It includes the estimated amounts to meet contingencies of probable occurrence that, if occurred, would give rise to a loss for the Bank.

Stockholders’ equity accounts:

They are restated as explained in note 2.1, except for the “Capital Stock” and “Non capitalized contributions” accounts which have been kept at cost. The adjustment resulting from the restatement is included in the “Adjustment to Stockholders´ Equity – Adjustment to Capital Stock” account.

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Statement of Income Accounts:

As of June 30, 2015 and 2014, accounts accruing monetary transactions [(financial income (expense), service charge income (expense), provision for loan losses, administrative expenses, etc.)] were computed on the basis of their monthly accrual at historical rates.

Accounts reflecting the effect on income resulting from the sale, write-off, or use of non-monetary assets were computed based on the value of such assets, as mentioned in note 2.1.

Income from investments in subsidiaries was computed based on such companies’ income adjusted as explained in note 2.1.

Earning per share:

As of June 30, 2015 and 2014, the Bank calculated the earning per share on the basis of 536,877,850 ordinary shares of $1 par value each. The net income for each period on those dates is as follows:

Use of accounting estimates:

The preparation of the financial statements in accordance with the standards set forth by the BCRA require the Bank to use assumptions and estimates that affect certain assets such as allowances for doubtful loan and certain liabilities such as provisions for other contingencies as well as the reported amounts of income/loss during the periods. Actual income/loss may differ from such estimates.

DIFFERENCES BETWEEN BCRA ACCOUNTING STANDARDS AND ARGENTINE PROFESSIONAL ACCOUNTING STANDARDS

The Bank has prepared these financial statements by applying the regulations of the BCRA, which do not contemplate some of the valuation criteria established by the Argentine professional accounting standards.

The main differences between the regulations of the BCRA and the Argentine professional accounting standards are detailed below:

Tax effects

As already indicated hereinbelow, in note 4.1., the Bank has received various communications from the BCRA pursuant to which that BCRA indicates that the capitalization of items arising from the application of the deferred tax method is not allowed. In accordance with Argentine professional accounting standards, a deferred tax asset should be recognized to the extent the reversal of temporary differences generates a future decrease in the tax effectively determined. As a result, the allowances set up by the Bank in this respect, for 279,400 and 239,500 as of June 30, 2015 and the end of the previous fiscal year, respectively, should be reversed.

Derivative financial instruments

As explained in notes 2.3.n) and 12, as of June 30, 2015 and the end of the previous fiscal year, the Bank recorded the effects of interest rate swap agreements as established by the BCRA. Should the Bank had applied the Argentine professional accounting standards, the stockholders’ equity would have increased in 7,359 and 7,351, respectively. By contrast, the effect of the application of the professional accounting standards on the income statement for the periods ended June 30, 2015 and 2014 would have been 8 (income) and 39,755 (income), respectively.

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TAX MATTERS

4.1. Income tax

The Bank determined the charge for income tax by applying the statutory 35% rate to taxable income estimated for fiscal year considering the effect of temporary differences between valuation of assets and liabilities for accounting purposes and their taxable bases. The Bank considered as temporary differences those that have a definitive reversal date in subsequent years.

As of June 30, 2015 and 2014, the Bank recorded 859,000 and 834,800, respectively, in the Income tax caption as the estimate of the income tax charge payable to the tax authorities for these fiscal years.

As of June 30, 2015 and the end of the previous fiscal year, the Bank has booked 479,390 and 758,681, respectively, in the caption Other liabilities – Other – Accrued Taxes as a result of having netted the income tax withholdings and other withholdings applied to the Bank until such dates.

Besides, on June 19, 2003, the Bank received a note from the BCRA indicating that the capitalization of items arising from the application of the deferred tax method is not allowed.

On June 26, 2003, the Bank, based on the opinion of its legal counsel, responded the above mentioned note, indicating that in their opinion the rules of the BCRA do not prohibit the application of the deferred tax method generated by the recognition of temporary differences between the accounting and tax result. Subsequently, Resolution 118/03 of the Superintendent of Financial and Exchange Institutions received on October 7, 2003 confirmed the terms of the note dated June 19, 2003. Consequently, as from that date the Bank set up an allowance for the net balance between the deferred tax assets and liabilities.

As of June 30, 2015 and the end of the previous fiscal year, the Bank recorded under Other Receivables (in the line Tax Prepayments) a taxable deferred asset amounting 279,400 and 239,500, respectively. Such amounts are made up as follows:


	06-30-2015		12-31-2014

Deferred tax assets		595,000		532,000
Deferred tax liabilities		(315,600)		(292,500)


Net deferred assets		279,400		239,500
Allowance		(279,400)		(239,500)

4.2. Tax on minimum presumed income

Tax on minimum presumed income (TOMPI) was established by Law Nr. 25,063 in the year ended December 31, 1998, for a ten-year term. On December 19, 2008 Law Nr. 26,426 established a one-year extension in TOMPI until December 30, 2009. In turn, Law Nr. 26,545, published in the Official Gazette on December 2, 2009 extended TOMPI for an additional ten-year period. This tax is supplementary to income tax: while the latter is levied on the taxable income for the year, TOMPI is a minimum levy determined by applying the current 1% rate on the potential income of certain productive assets. Therefore, the Bank’s tax obligation for each year will coincide with the highest of these taxes. The above Law provides that institutions governed by Financial Institutions Law must consider as a tax base 20% of their taxable assets, after deducting non-computable ones. However, if TOMPI exceeds income tax in a given year, the excess thereof may be computed as a payment on account of any income tax in excess of TOMPI that may occur in any of the following ten years.

In every year that net operating losses are offset, the tax benefit (the benefit of the effective rate on the net operating loss used) will be realized to the extent that income tax (net of the offsetting) equals or exceeds tax on minimum presumed income, but will be reduced by any excess of the latter over former.

On February 11, 2005, the Argentine Central Bank issued Communication “A” 4295 whereby it enabled, under certain rules, the accounting record of credits on Tax on Minimum Presumed Income.

As of June 30, 2015 and 2014, the Income tax assessed was higher than the TOMPI. Therefore, a provision was raised for Income tax.

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4.3. Other tax issues

On October 24, 2007, the Bank was notified by the Tax Bureau of the City of Buenos Aires of the commencement of a sua sponte tax assessment on a certain basis and partial in nature of the taxable income as regards turnover tax for the fiscal years 2002 and 2003. On November 14, 2007, the Bank filed its defenses to the notice mentioned.

Then, on October 6, 2008, the Bank was given notice of Resolution Nr. 3631-DGR 2008 containing the sua sponte tax assessment for the fiscal years 2002 and 2003. On October 28, 2008, the Bank filed an appeal for review against this resolution, which was rejected on November 7, 2008.

In response to said rejection, on November 28, 2008 an appeal was filed with a higher administrative authority by the Ministry of Economy of the Government of the City of Buenos Aires, which was also dismissed on April 24, 2009.

On April 28, 2009, the Court of Appeals with Federal Jurisdiction over Contentious Administrative Matters, Panel 3 handed down a judgment favourable to a petition filed by the Bank for the judge to suspend the effect of the decision made by administrative authorities until the appeal is decided. The judgment thus ordered that “….subject to a sworn promise to comply … a) the Tax Bureau of the City of Buenos Aires must suspend the sua sponte assessment that has objected to the treatment afforded by BBVA Francés to the bonds received from the National Government in the terms of Decree Nr. 905-02 and the related foreign exchange gains/losses in all matters related to taxation for turnover tax purposes for the fiscal period 2002; b) therefore, the Tax Bureau of the City of Buenos Aires must abstain from demanding that the Bank should pay any amount due that may have arisen from the items above detailed”.

Also in this respect, on May 13, 2009, an action for a declaratory judgment was commenced by the Bank against the Tax Bureau of the City of Buenos Aires, currently being heard by the court with original Federal Jurisdiction over Contentious Administrative Matters Nr. 1, to procure a judgment ascertaining that a) the bonds received by the Bank from the National Government as compensation for the asymmetric conversion into pesos of assets and liabilities imposed by the Executive Order Nr. 905/2002 may not be levied with Turnover Tax in the Autonomous City of Buenos Aires; b) the foreign exchange gains/losses are a direct effect of the modification of the monetary system and therefore should not be levied with Turnover Tax in the Autonomous City of Buenos Aires.

On December 29, 2010, the Judge presiding over the court with original Federal Jurisdiction over Contentious Administrative Matters Nr. 1 handed down a new precautionary measure ordering the Tax Bureau of the City of Buenos Aires to refrain from demanding that BBVA Francés should pay any debt originating in the tax treatment that should be afforded to the bonds received from the National Government as compensation for the asymmetric re-denomination into Pesos under Executive Order Nr. 905/02 and the foreign exchange gains/losses for purposes of Turnover Tax for the fiscal period 2002 in issue until a final judgment has been rendered on the proceedings whereby the action for a declaratory judgment is still pending.

The Bank as well as its legal and tax advisors estimate that the Bank has made a reasonable interpretation of currently applicable rules and regulations concerning the fiscal periods objected to by the Tax Bureau of the City of Buenos Aires and do not expect an adverse financial impact in these respects.

As regards the remaining balance of the amount claimed, the Bank adhered to a scheme of payment in instalments that was settled on October 4, 2010.

On December 23, 2011, the Tax Bureau of the City of Buenos Aires (AGIP) passed its Resolution Nr. 3088-DGR-2011 and notified the Bank of the commencement of a sua sponte tax assessment thereunder alleging presumptive differences owed to the Tax Bureau in the payment of turnover tax for the fiscal years 2004 through 2010. On January 27, 2012, BBVA Francés filed its defense with the Tax Bureau.

Afterwards, on December 28, 2012, the Bank was notified of Resolution Nr. 3253-DRG-2012 whereby the Tax Bureau of the City of Buenos Aires proceeded with a sua sponte assessment based on facts concerning the taxable basis for purposes of turnover tax for the fiscal years 2004 through 2010.

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On February 4, 2013, the Bank filed an appeal for reconsideration against Resolution Nr. 3253-DRG-2012 moving for the annulment of the tax adjustments contained in the sua sponte tax assessment and for an immediate order to archive the case file.

On February 3, 2015, the Bank was notified of the passage of Resolution Nr. 2014-3711-DGR, which conceded the appeal in part.

This Resolution was appealed by lodging a so-called “hierarchical appeal” with the head of the governmental agency in charge of raising public revenue.

On December 20, 2013, the Bank was notified of the Administrative Proceeding Tax Assessment Decision Nr. 4705 handed down by the Tax Bureau of the Province of Buenos Aires, whereby this tax bureau made a sua sponte determination of taxable income associated to turnover tax for the fiscal periods 01/2008 to 12/2008.

Against this Decision, the Bank filed on January 14, 2014 an appeal for the tax bureau to reverse its own decision and requested that the tax adjustments inserted in the sua sponte tax assessment be rendered ineffectual and that in due time these proceedings be archived.

The Bank as well as its legal and tax advisors estimate that the Bank has made a reasonable interpretation of currently applicable rules and regulations concerning the fiscal periods objected to by the Tax Bureau of the Province of Buenos Aires and do not expect an adverse financial impact in these respects.

BREAKDOWN OF MAIN ITEMS AND ACCOUNTS

The breakdown of the items included under Other accounts which exceed 20% of the total amount of each item is as follows:


	06-30-2015		12-31-2014

a) INVESTMENTS IN OTHER COMPANIES

In controlled companies -supplementary activities		147,628		108,366
In other non-controlled companies- unlisted		55,634		44,460
In non-controlled companies-supplementary activities		13,980		11,789



Total		217,242		164,615



b) OTHER RECEIVABLES

Miscellaneous receivables		675,171		386,476
Guarantee deposits		479,121		377,029
Prepayments		340,909		279,376
Tax prepayments (1)		302,066		277,218
Loans to personnel		174,641		181,620
Advances to personnel		15,329		93,065
Other		156		1,085



Total		1,987,393		1,595,869

(1)

As of June 30, 2015 and the end of the previous fiscal year, it includes the deferred tax asset for 279,400 and 239,500, respectively (see note 4.1.)

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	06-30-2015		12-31-2014

c) OTHER LIABILITIES FROM FINANCIAL TRANSACTIONS

Accounts payable for consumption		2,312,430		2,482,573
Other withholdings and collections at source		774,935		687,723
Collections and other operations for the account of third parties		437,971		419,185
Money orders payable		159,735		338,117
Social security payment orders pending settlement		105,541		18,816
Pending Banelco debit transactions		52,585		73,651
Loans received from Fondo Tecnológico Argentina (FONTAR) and Banco de Inversión y Comercio Exterior (BICE)		52,262		32,488
Funds raised from third parties		16,213		18,941
Loans received from Interamerican Development Bank (IDB)		8,046		6,485
Accrued commissions payable		3,390		7,336
Other		6,119		6,078



Total		3,929,227		4,091,393



d) OTHER LIABILITIES

Miscellaneous payables		781,430		678,461
Accrued taxes		712,667		991,889
Amounts collected in advance		536,523		434,830
Accrued salaries and payroll taxes		502,903		536,553
Other		3,365		4,003



Total		2,536,888		2,645,736



e) MEMORANDUM ACCOUNTS – DEBIT – CONTROL

Securities representative of investments in custody safekeeping on behalf of the Guarantee Fund for the Sustainability of the Pay-as-you-go System managed by the Argentine Republic		71,394,991		61,071,633
Items in safekeeping		68,856,766		53,384,165
Checks not yet credited		4,600,346		3,694,973
Checks drawn on the Bank pending clearing		753,770		564,348
Collections items		722,269		573,483
Cash in custody on behalf of the BCRA		--,--		287,347
Other		406,511		514,368



Total		146,734,653		120,090,317

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	06-30-2015		06-30-2014

f) SERVICE CHARGE INCOME

Commissions for hiring of insurances		293,750		244,692
Rental of safe-deposit boxes		85,732		69,118
Commissions on debit and credit cards		42,126		23,000
Commissions for transportations of values		20,301		12,740
Commissions for loans and guaranties		17,315		23,221
Commissions for capital market transactions		13,782		6,561
Commissions for escrow		10,251		10,404
Commissions for salary payment		4,898		4,681
Commissions for trust management		1,009		888
Other		47,663		37,181



Total		536,827		432,486



g) SERVICE CHARGE EXPENSE

Turn-over tax		173,637		134,491
Insurance paid on lease transactions		71,284		52,534
Other		12,754		6,406



Total		257,675		193,431



h) OTHER INCOME

Deferred income tax (1)		39,900		2,600
Related parties expenses recovery		30,174		26,507
Income from the Credit Card Guarantee Fund		26,714		32,352
Interest on loans to personnel		14,603		15,483
Other		11,466		32,816



Total		122,857		109,758


(1) Offset with a charge for the same amount in “Charge for uncollectibility of other receivables and other allowances” account, under Other expense item.
i) OTHER EXPENSE

Charges for administrative, disciplinary and criminal penalties (2)		48,817		--,--
Donations		7,593		6,138
Private health insurance for former employees		7,285		4,853
Insurance losses		4,679		5,255
Turn-over tax		4,491		6,681
Other		16,911		17,877



Total		89,776		40,804

(2) See note 6.1.

PENALTIES IMPOSED ON THE BANK AND ADMINISTRATIVE PROCEEDINGS INSTITUTED BY THE BCRA.

In compliance with the requirement imposed by the Argentine Central Bank’s Communication “A” 5689, issued on January 8, 2015, the following is a detail of the administrative and/or disciplinary penalties as well as the

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sentences imposed by criminal trial courts, enforced or brought by the Argentine Central Bank, the Financial Information Unit (UIF) and the Argentine Securities Commission (CNV) of which the Bank has been notified:

6.1.

Penalties enforced against the Bank

•

On April 21 and 29, 2010, by virtue of Resolutions Nr. 43/10 and 44/10 the Bank was notified of the commencement of two enforcement action proceedings instituted by the Financial Information Unit (UIF) against BBVA Francés arising from two wire transfers received by two customers in their respective sight accounts on November 22, 2007.

It has been the UIF’s understanding that the profile of the customers, as defined, and the supporting documentation submitted by the Bank do not coincide with the possibility of receiving such wire transfers.

In due time, the Bank filed its defenses, offered evidence and petitioned for an acquittal. In addition, the Bank called for the enforcement in this case of the same guarantees available in court proceedings, argued that the statute of limitations applicable to punishable offenses had run out and further claimed that Law Nr. 25,246 is unconstitutional when it comes to the scale of penalties imposed.

On October, 13 and September, 14 2010, the Bank was served with the Resolutions Nr. 181/10 and 169/10 adopted by the UIF whereby BBVA Francés was ordered to pay a fine for an amount equivalent to one time the transactions objected for the amounts of 39,393 and 9,174, respectively.

On the basis of its legal advisors’ opinion, on October 28 and November 25, 2010, the Bank lodged with the Court of Appeals with Federal Jurisdiction over Contentious Administrative Matters a direct appeal against the UIF’s Resolutions in connection with the wire transfers for 9,174 and 39,393, respectively, in accordance with the provisions under Section 25 of Law Nr. 25,246.

The Bank and its legal advisors have concluded that the analysis of the transactions involved has been made in compliance with applicable legal regulations and that no Suspicious Transaction Report (“ROS”, for its Spanish acronym) has proven necessary. For such reason, the Bank does not expect any adverse financial impacts in this respect. The above notwithstanding, as from January 2015 and to comply with the provisions under Communication “A” 5689 of the Argentine Central Bank, the Bank has raised a provision for 48,567.

It must be mentioned that the Regulatory Compliance Officer designated as of that date was also sentenced in both cases.

On July 16, 2015, the Court of Appeals with Federal Jurisdiction over Contentious Administrative Matters, Panel IV repealed UIF’s Resolution No. 181/10, and thus the fine previously imposed was rendered ineffective. Such decision has not yet become irrevocable.

•

“BBVA Banco Francés S.A. – FCI Acciones Globales over complaint File 1196/2008”.

Summary proceedings instituted by the Argentine Securities Commission (CNV) notified on January 6, 2009. The subject matter of the complaint is alleged breach of the CNV Rules and Law 24,083. The cause of action underlying the complaint is the presumed non-compliance with the conditions for the subscription of a mutual fund (FCI Acciones Globales) as there was a failure to have them embodied and published in the fund’s Management Rules. The complaint points out that the subscription could only be conducted in USD “currency” rather than in USD “notes”. This notwithstanding, the Rules set forth that subscription is in US Dollars and does not distinguish between currency or note USDs, therefore, there was no need for amending the Rules. Pursuant to Resolution Nr. 16,821 notified on May 31, 2012, a decision was made to impose on the Bank a 250 fine. The seven regular members of the Board of Directors as of the date of these events were also sanctioned. An appeal has been lodged against the Resolution that imposes the fine with the Appellate Court in Commercial Matters in and for the City of Buenos Aires. Pursuant to Law Nr. 26,831, a jurisdictional issue has emerged between the Appellate Court in Commercial Matters and the Argentine Administrative and Contentious Appellate Court. The file has been sent to the Supreme Court of Justice which in December 2014 decided that the Appellate Court with jurisdiction in commercial matters is the court that must hear in the case.

The Bank and its legal advisors estimate that the applicable rules and regulations have been reasonably interpreted and that no adverse financial impact is expected in this respect. This notwithstanding, as from January 2015 and to comply with the provisions under Communication “A” 5689 of the Argentine Central Bank, the Bank has raised a provision for 250.

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6.2.

Administrative Proceedings commenced by the BCRA

•

“Banco Francés S.A. over breach of Law Nr. 19,359”. Administrative Proceedings for Foreign Exchange Offense investigated by the Argentine Central Bank notified on February 22, 2008 and identified under Nr. 3511, File 100.194/05, on grounds of a breach of the Criminal Foreign Exchange Regime of foreign currency by reason of purchases and sales of US Dollars through BCRA in excess of the authorized amounts. These total 44 transactions involving the branches 099, 342, 999 and 320. Accused of these breaches stand BBVA Banco Francés S.A. and the following Bank officers who served in the capacities described below at the date when the breaches were perpetrated: (i) two Territory Managers, (ii) four Branch Managers, (iii) four Heads of Back-Office Management and (iv) twelve cashiers. On August 21, 2014, the trial court acquitted all the accused from all charges. The State Attorney’s Office filed an appeal and the case is now pending resolution from Panel A of the Appellate Court with jurisdiction over criminal and economic matters.

•

“Banco Francés S.A. over breach of Law Nr. 19,359”. Administrative Proceedings for Foreign Exchange Offense investigated by the Argentine Central Bank, notified on December 28, 2007, identified under Nr. 3531, File Nr. 100.345/06 and Nr. 101.581/07. The summary proceedings focus on considering that some purchases and sales of USD-denominated Government securities through Mercado Abierto Electrónico were in fact foreign exchange transactions and should, instead, have been channeled through So-called “MULC” (initials standing for Single and Free-Floating Foreign Exchange Market). Accused of these breaches stand BBVA Banco Francés S.A. and the following Bank officers who served in the capacities described below at the date when the breaches were perpetrated: (i) the Wholesale Banking Director, (ii) the Treasury Manager, (iii) the person responsible for Trading and (iv) the Head of the Back Office. A judgment was passed that acquitted BBVA Banco Francés S.A. and all the accused officers. The State Attorney’s Office filed an appeal against this judgment. An appellate brief was filed in support of the acquittal. On March 13, 2015, the Appellate Court with jurisdiction over criminal and economic matters, confirmed the judgment acquitting the Company and the officers involved. The State Attorney’s Office filed an extraordinary and cassation appeal, which were dismissed by the appellate court. In addition, appeals were lodged with the Supreme Court of Justice following a refusal by the lower court judge to permit the appeal, which were dismissed on July 14, 2015. This proceeding was thus brought to an end and the judgment in favor of the Bank was affirmed.

•

“Banco Francés S.A. over breach of Law Nr. 19,359”. Administrative Proceedings for Foreign Exchange Offense investigated by the Argentine Central Bank, notified on October 9, 2009 and identified under Nr. 4157, File 100.778/05 objecting certain transactions channeled through the so-called “MULC” (initials standing for Single and Free-Floating Foreign Exchange Market) with individuals and legal entities that were not allowed to operate in the MULC. The period observed is January through April 2004. Accused of these breaches stand BBVA Banco Francés S.A. and the following Bank officers who served in the capacities described below at the date when the breaches were perpetrated: (i) the Foreign Trade Manager and (ii) two Foreign Trade area employees. The case is in the sentencing stage.

•

“BBVA Banco Francés S.A. over breach of Law Nr. 19,359”. Administrative Proceedings for Foreign Exchange Offense investigated by the Argentine Central Bank, notified on November 30, 2009 and identified under Nr. 4181, File N° 100.309/06 which alleges a departure from currently applicable foreign exchange regulations in connection with foreign trade transactions conducted by SULFACID S.A.C.I.F.y C., on charges of failure to comply with currently applicable rules and regulations when the company paid 4 pre-financing installments directly abroad without passing through the channels in the Argentine Republic. Accused of these breaches stand BBVA Banco Francés S.A. and the following Bank officers who served in the capacities described below at the date when the breaches were perpetrated: (i) the Foreign Trade Manager and (ii) three Foreign Trade area employees. This is being heard by the Court with Jurisdiction over Financial Crimes Nr. 3, Clerk of Court’s Office Nr. 6 and it is presently in the sentencing stage.

•

“Banco Francés S.A. over breach of Law Nr. 19,359”. Administrative Proceedings for Foreign Exchange Offense investigated by the Argentine Central Bank notified on December 1, 2010 and identified under Nr. 4517, File N° 40.536/05 where charges focus on simulated foreign exchange transactions through false statements in their processing incurred by personnel in Branch 097- Comodoro Rivadavia -, which would entail failure to comply with the client identification requirements imposed by foreign exchange rules and regulations through Communication “A” 3471, Paragraph 6. Accused of these breaches stand BBVA Banco Francés S.A., the five regular members of the Board of Directors and the following Bank officers who served in the capacities described below at the date when the breaches were perpetrated: (i) the Retail Banking Manager, (ii) the Territory Manager, (iii) the Zone Manager, (iv) the Branch Manager, (v) the Back Office Management Head

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and (vi) one cashier. The period for proffering and producing evidence came to a close and it is about to be sent to the Court with jurisdiction over financial crimes.

•

“Banco Francés S.A. over breach of Law Nr. 19,359”. Administrative Proceedings for Foreign Exchange Offense investigated by the Argentine Central Bank notified on December 1, 2010 and identified under Nr. 4539, File N° 18.398/05 where charges focus on simulated foreign exchange transactions through false statements in their processing incurred by personnel from five branches in Mar del Plata, which would entail failure to comply with the client identification requirements imposed by foreign exchange rules and regulations through Communication “A” 3471, Paragraph 6. Accused of these breaches stand BBVA Banco Francés S.A., the five regular members of the Board of Directors and the following Bank officers who served in the capacities described below at the date when the breaches were perpetrated: (i) the Retail Bank Manager, (ii) the Territorial Manager, (iii) the Zone Manager, (iv) a Commercial Aide to the Zone Manager, (v) five Branch Managers, (vi) four Back-Office Branch Managers, (vii) five Main Cashiers and (viii) one cashier. The procedural stage in which evidence is produced has commenced.

•

“BBVA Banco Francés S.A. over breach of Law Nr. 19,359”. Administrative Proceedings for Foreign Exchange Offense investigated by the Argentine Central Bank notified on December 1, 2010 and identified under Nr. 4524, File N° 3.406/06 where charges focus on simulated foreign exchange transactions, conducted in the name of a deceased, perpetrated by personnel from the Branch 240 - Mendoza -, which would entail failure to comply with the client identification requirements imposed by foreign exchange rules and regulations through Communication “A” 3471, Paragraph 6. Accused of these breaches stand BBVA Banco Francés S.A., five regular members of the Board of Directors and the following Bank officers who served in the capacities described below at the date when the breaches were perpetrated: (i) the Retail Bank Manager, (ii) the Territorial Manager, (iii) the Zone Manager, (iv) the Branch Manager, (v) the Back Office Branch Manager and (vi) the Main Cashier. The period for proffering and producing evidence came to a close and it is about to be sent to the Court with jurisdiction over financial crimes.

•

“Banco Francés S.A. over breach of Law Nr. 19,359”. Administrative Proceedings for Foreign Exchange Offense brought against BBVA Francés notified on July 12, 2011 and identified under Nr. 4693, File N° 101.415/10 on grounds of a breach of the Criminal Foreign Exchange Regime –foreign currency- by reason of “Investments made by Non-Residents Applied to the Purchase of Real Estate” in breach of the provisions under Communication “A” 4359. Accused of these breaches stand BBVA Banco Francés S.A. and the following Bank officers who served in the capacities described below at the date when the breaches were perpetrated: (i) the Foreign Trade Manager and (ii) a Foreign Trade Area officer. This is being heard by the Court with Jurisdiction over Financial Crimes Nr. 7, Clerk of Court’s Office Nr. 13 and it is presently in the sentencing stage.

•

“Banco Francés S.A. over breach of Law Nr. 19,359”. Administrative Proceedings for Foreign Exchange Offense brought against BBVA Francés notified on July 6, 2012 and identified under Nr. 5019, File 100.865/06, on grounds of a breach of the Criminal Foreign Exchange Regime due to sales of bank notes in the possession of residents and repatriation of investments by residents associated to the customer Líneas de Transmisión del Litoral S.A., violating the provisions under the Argentine Central Bank’s Communications “A” 4359 and 4377. Accused of these breaches stand BBVA Banco Francés S.A. and the following Bank officers who served in the capacities described below at the date when the breaches were perpetrated: (i) the Foreign Trade Manager and (ii) a Foreign Trade Area officer. This is being heard by the Court with Jurisdiction over Financial Crimes Nr. 6, Clerk of Court’s Office Nr. 11.

•

“BBVA Banco Francés S.A. over breach of Law Nr. 19,359”. Administrative Proceedings for Foreign Exchange Offense brought against BBVA Francés notified on August 29, 2012 and identified under Nr. 5079, File 101.575/07, on grounds of a breach of the Criminal Foreign Exchange Regime by reason of having settled new transactions as pre-financing for exports for the benefit of Esso Petrolera Argentina S.R.L., without previously regularizing the pending overdue shipments according to the type of export which breaches Paragraph 8 of Communication “A” 4443 of the Argentine Central Bank. Accused of these breaches stand BBVA Banco Francés S.A. and the following Bank officers who served in the capacities described below at the date when the breaches were perpetrated: (i) the Foreign Trade Manager and (ii) a Foreign Trade Area officer. This is being heard by the Court with Jurisdiction over Financial Crimes Nr. 6, Clerk of Court’s Office Nr. 11.

•

“BBVA Banco Francés SA Over breach of Law Nr. 19,359”. Administrative Proceedings for Foreign Exchange Offense investigated by the Argentine Central Bank notified on July 26, 2013 and identified under Nr. 5406, File N° 100.443/12 where charges focus on simulated foreign exchange transactions through false statements in their processing incurred by personnel in Branch 087 - Salta -, which would entail failure to comply with the client identification requirements imposed by foreign exchange rules and regulations through Communication “A” 3471, Paragraph 6. Accused of these breaches stand BBVA Banco Francés S.A. and the

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following Bank officers who served in the capacities described below at the date when the breaches were perpetrated: (i) the Branch Manager (ii) the Back Office Management Head, (iii) the Main Cashier and (iv) two cashiers. The period for proffering and producing evidence came to a close and the Argentine Central Bank must send it to Salta’s Federal Court.

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“BBVA Banco Francés S.A. over breach of Law Nr. 19,359”. Administrative Proceedings for Foreign Exchange Offense investigated by the Argentine Central Bank notified on September 20, 2013 and identified under Nr. 5472, File N° 100.969/09 where the charges consist in allegedly having channeled foreign exchange transactions with “Compañía de Seguros La Mercantil Andina S.A.” in September 2007, that allegedly exceed the monthly limit imposed by Communication “A” 4128, without the Argentine Central Bank’s previous consent. Accused of these breaches stand BBVA Banco Francés S.A. and the following Bank officers who served in the capacities described below at the date when the breaches were perpetrated: (i) the Foreign Trade Manager and (ii) a Foreign Trade Area officer. It awaits a resolution from the Argentine Central Bank.

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“BBVA Banco Francés S.A. over breach of Law Nr. 19,359”. Administrative Proceedings for Foreign Exchange Offense investigated by the Argentine Central Bank notified on February 21, 2014 and identified under Nr. 5706, File N° 100.134/11. The charges consist in having presumably operated with foreign exchange on January 18, 2010 despite failing to make available to the Argentine Central Bank the excess in its General Foreign Exchange Position incurred on January 15, 2010, allegedly breaching Communications “A” 4646, “A” 4814 and “C” 37587. Accused of these breaches stand BBVA Banco Francés S.A. and the following Bank officers who served in the capacities described below at the date when the breaches were perpetrated: (i) the Director of Global Markets, (ii) the Head of the Market Management Area and (iii) the Head of the Trading Area. Evidence is being proffered and produced before the Argentine Central Bank.

•

“BBVA Banco Francés S.A. over breach of Law Nr. 19,359”. Administrative Proceedings for Foreign Exchange Offense investigated by the Argentine Central Bank notified on April 11, 2014 and identified under Nr. 5719, File N° 100.078/14. The charges consist in allegedly failing to comply with the duty to report two transactions conducted by H.C.I. S.A., which would entail failure to comply with Decree 616/05 and the Argentine Central Bank’s Communications “A” 4359, “A” 4377 and “A” 4762 which mandate a mandatory deposit of 30% of all foreign currency inflows from abroad for application to the acquisition of fixed assets. Accused of these breaches stand BBVA Banco Francés S.A. and the following Bank officers who served in the capacities described below at the date when the breaches were perpetrated: (i) the Foreign Trade Manager and (ii) a Foreign Trade Area officer. This is being heard by the Court with Jurisdiction over Financial Crimes Nr. 3, Clerk of Court’s Office Nr. 5 and it presently awaits the court’s first ruling.

•

“BBVA Banco Francés S.A. over breach of Law Nr. 19,359”. Administrative Proceedings for Foreign Exchange Offense investigated by the Argentine Central Bank notified on March 3, 2015 and identified under Nr. 6082, File Nr. 100.091/12. The charge consists in having presumably conducted transactions that exceeded the US$ 2,000,000 limit in the course of the calendar month on behalf of the firm LUFKIN ARGENTINA S.A., plus the allegation of an excess of USD three hundred thousand. Accused of these breaches stand BBVA Banco Francés S.A. and the following Bank officers who served in the capacities described below at the date when the breaches were perpetrated: (i) the Foreign Trade Manager and (ii) three Foreign Trade Area officers. On April 24, 2015, a defense was raised and evidence was offered.

The Bank and its legal advisors estimate that the applicable rules and regulations have been reasonably interpreted and that no adverse financial impacts are expected in these respects.

RESTRICTIONS ON ASSETS

As of June 30, 2015 and the end of the previous fiscal year, there are Bank’s assets, which are restricted as follows:

The Government and Private Securities account includes 194,400 in bonds issued by the Argentine Government in pesos maturing in 2016 as of June 30, 2015 and 223,960 in peso-denominated Discount Bonds due 2033 as of December 31, 2014, allocated to the guarantee required to act as custodian of investment securities related to Guarantee Fund for the Sustainability of the Pay-as-you-go System managed by the Argentine Republic.

The Bank appropriated 15,389 and 15,358, respectively, in Guaranteed Bonds maturing in 2020, to secure loans arranged under the Credit Global Program to micro, small and medium businesses given by the Interamerican Development Bank (IDB).

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The Bank appropriated 195,426 and 195,033, respectively, in Guaranteed Bonds maturing in 2020, to secure loans granted by the so-called “Bicentennial Fund”.

The Bank has also appropriated accounts, deposits and trusts for 1,136,108 and 762,650, respectively, as security for activities related to credit card operations, automated clearing houses, non-deliverable forwards and lawsuits.

TRANSACTIONS WITH SUBSIDIARIES AND PARENT COMPANIES (ART. 33 OF LAW Nr. 19,550)

The balances as of June 30, 2015 and the end of the previous fiscal year, for transactions performed with subsidiaries and parent companies are as follows:


	Balance Sheet								Memorandum Accounts (1)
	Assets				Liabilities
Company	2015		2014		2015		2014		2015		2014
BBVA		26,051		94,403		287,618		87,622		78,998		43,591
BBV América S.L.		--,--		--,--		119,253		--,--		10,998,187		8,406,791
BBVA Francés Valores S.A		12		58		205		805		13,052		13,403
Consolidar Administradora de Fondos de Jubilaciones y Pensiones S.A. (undergoing liquidation proceedings)		1		1		792		421		3,047		6,975
BBVA Francés Asset Management S.A. Sociedad Gerente de Fondos Comunes de Inversión		825		780		13,311		12,970		55,535		44,352
BBVA Consolidar Seguros S.A.		17,786		24,074		22,862		23,560		36,239		18,311
PSA Finance Argentina Cía. Financiera S.A.		891,832		1,098,745		2,621		5,371		64,169		150,172
Rombo Cía. Financiera S.A.		714,903		685,446		4,978		9,653		243,446		334,653

(1)

Includes Items in safekeeping, Credit lines granted (unused portion) covered by debtor classification regulations, Guaranties given covered by debtor classification regulations and Derivatives.

BANK DEPOSITS GUARANTEE INSURANCE SYSTEM

The Bank is included in the Deposit Guarantee System established by Law 24,485, Regulatory Decrees Nr. 540/95, Nr. 1,292/96 and 1,127/98 and BCRA’s Communication “A” 5659.

Such law provided for the creation of the Company Seguros de Depósitos Sociedad Anónima (SEDESA) for purposes of managing the Deposit Guarantee Fund (DGF), whose shareholders, in accordance with the changes introduced by Decree Nr. 1,292/96, shall be the BCRA with one share as a minimum and the trustees of the trust created by the financial institutions in the proportion to be determined for each by the BCRA according to their contributions to the DGF.

That Company was incorporated in August 1995 and the Bank holds a 9.2771% interest in its capital stock.

The Deposit Guarantee System, which is limited, compulsory and onerous, has been created for purposes of covering the bank deposit risks subsidiarily and complementarily to the deposit protection and privilege system established by the Financial Institutions Law.

The guarantee shall cover the repayment of principal disbursed plus interest accrued through the date of revoking of the authorization to operate or through the date of suspension of the institution through application of section 49 of the BCRA’s Charter provided that the latter had been adopted earlier than the former without exceeding the amount of pesos a three hundred and fifty thousand. Regarding operations in the name of two or more people, the guarantee shall be prorated between the holders. In no event shall the total guarantee per person exceed the above-mentioned amount, whatever the number of accounts and/or deposits.

10.

TRUST ACTIVITIES

On January 5, 2001, the BCRA’s Board of Directors issued Resolution Nr. 19/01, providing for the exclusion of Mercobank S.A.’s senior liabilities under the terms of section 35 bis of the Financial Institutions Law, the

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authorization to transfer the excluded assets to the Bank as trustee of the Diagonal Trust, and the authorization to transfer the excluded liabilities to beneficiary banks. Also, on the mentioned date, the agreement to set up the Diagonal Trust was subscribed by Mercobank S.A. as settle and the Bank as trustee in relation to the exclusion of assets as provided in the resolution above-mentioned. As of June 30, 2015 and the end of the previous fiscal year, the assets of Diagonal Trust amount to 2,428, considering its recoverable value.

Besides, the Bank in its capacity as Trustee in the Corp Banca Trust recorded the selected assets on account of the redemption in kind of participation certificates for 4,177 as of June 30, 2015 and the end of the previous fiscal year.

Besides, the Bank acts as trustee in 13 non-financial trusts, and in no case being personally liable for the liabilities assumed in the performance of the contract obligations; such liabilities will be settled with and up to the full amount of the corpus assets and the proceeds therefrom. The non financial trusts concerned were set up to secure the receivables of several creditors (beneficiaries) and the trustee was entrusted the management, care, preservation and custody of the corpus assets until (i) the requirements to show the noncompliance with the obligations by the debtor (settler) vis-à-vis the creditors (beneficiaries) are met, moment at which such assets will be sold and the proceeds therefrom will be distributed (net of expenses) among all beneficiaries, the remainder (if any) being delivered to the settler, or (ii) all contract terms and conditions are complied with, in which case all the corpus assets will be returned to the settler or to whom it may indicate. The trust assets represent about 145,075 and 155,354 as of June 30, 2015 and the end of the previous fiscal year, respectively, consist of cash, creditors’ rights, real estate and shares.

11.

CORPORATE BONDS

On July 15, 2003, an Extraordinary Stockholders’ Meeting approved the setting up of a Program for the issuance and re-issuance of ordinary Corporate Bonds (non-convertible into shares) with ordinary guarantee, or such guarantees as may be decided by the Bank, and unsecured Subordinated Corporate Bonds, convertible or not into shares. During the life of the Program, which was 5 (five) years, it was possible to issue and re-issue any number of series and/or classes of Corporate Bonds as long as at all times the maximum amount in circulation after adding together all series and/or classes outstanding under the Program pending redemption does not exceed at any time US$ 300,000,000 (or the equivalent thereof in other currencies). The Program was approved by CNV Resolution Nr. 14,967 dated November 29, 2004.

The Global Program was amended according to the resolutions adopted by the Ordinary and Extraordinary Stockholders’ Meeting held on April 26, 2007; extended for 5 (five) years by resolution adopted by the Ordinary and Extraordinary Stockholders’ Meetings held on March 28, 2008 and on April 9, 2013 (approved by the CNV by Resolutions Nr. 16,010 and Nr. 17,127 dated November 6, 2008 and July 11, 2013, respectively); and the maximum amount of the issuance was successively increased from US$ 300,000,000 to US$ 500,000,000 and from US$ 500,000,000 to US$ 750,000,000 by resolution adopted by the Ordinary and Extraordinary Stockholders’ Meetings held on March 30, 2011 and March 26, 2012, respectively.

The following is a detail of the Corporate Bonds outstanding as of June 30, 2015 and the end of the previous fiscal year:


Detail	Date of issuance	Nominal Value (in thousands of pesos)	Due date	Rate	Interest payments

Class 4	07/31/2013	250,000	01/31/2015	Private Badlar + nominal 3.69% per annum	Quarterly

Class 6	11/08/2013	121,357	05/08/2015	Private Badlar + nominal 3.25% per annum	Quarterly

Class 7	11/08/2013	250,000	11/08/2016	Private Badlar + nominal 4.24% per annum	Quarterly

Class 8	02/11/2014	258,880	08/11/2015	Private Badlar + nominal 3.80% per annum	Quarterly

Class 9	02/11/2014	145,116	02/11/2017	Private Badlar + nominal 4.70% per annum	Quarterly

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Class 10	07/18/2014	233,750	01/18/2016	Private Badlar + nominal 2.50% per annum	Quarterly

Class 11	07/18/2014	165,900	07/18/2017	Private Badlar + nominal 3.75% per annum	Quarterly

Class 12	11/13/2014	130,286	05/13/2016	Private Badlar + nominal 2.53% per annum	Quarterly

Class 13	11/13/2014	107,500	11/13/2017	Private Badlar + nominal 3.75% per annum	Quarterly

Class 14	02/13/2015	134,300	11/13/2015	25.75% Fix rate	Quarterly

Class 15	02/13/2015	144,875	11/13/2016	Private Badlar + nominal 4% per annum	Quarterly

The issued Corporate Bonds were fully subscribed and paid in and they will be fully amortized at maturity.

As provided for in the Corporate Bonds Law and the BCRA regulations, the proceeds obtained from the issuance of Classes 4, 6, 7, 8, 9, 10, 11, 12 and 13 were applied to the reimbursement of time deposits, whilst the proceeds from the issuance of Classes 14 and 15 were applied to the grant of working capital loans.

On May 28, 2015, the Bank approved the issuance of Class 16 of its Corporate Bonds under the Program for a joint principal amount of up to $ 500,000,000. On July 30, 2015, the Bank issued Class 16 of its Corporate Bonds, which were fully subscribed and paid in for 204,375 for a term of 24 months, to be fully amortized at maturity and subject to a variable interest rate equivalent to the private Badlar rate plus a spread of a nominal 3.75% per annum, with quarterly interest payments.

As of June 30, 2015 and the end of the previous fiscal year, the outstanding principal and accrued interest amounts to 1,629,508 (in connection with Class 7, 8, 9, 10, 11, 12, 13, 14 and 15 of the Corporate Bonds) and 1,725,644 (in connection with Class 4, 6, 7, 8, 9, 10, 11, 12 and 13 of the Corporate Bonds), respectively.

12.

DERIVATIVE FINANCIAL INSTRUMENTS

Transactions as of June 30, 2015:

Interest rate swaps for 699,538 (Fixed Rate versus Badlar), maturing within a period not exceeding 2 years for which the Bank pays a variable amount in accordance with changes in the Badlar, Encuesta rate, and receives a fixed amount based on stated notional amounts and interest rate swaps for 13,000 (Badlar versus Taxed Rate), maturing within a period not exceeding 1 year for which the Bank pays a fixed amount in accordance with changes in the Badlar, Encuesta rate, and receives a variable amount in accordance with changes in the Badlar, Encuesta rate.

These transactions have been valued in accordance with the criteria described in note 2.3.n.1.) recognizing the amount of 26,850 as income for the period.

The estimated fair value of said instruments amounts to 13,759 (Asset). For fair value estimation purposes, the variable and fixed as yet not matured future flows are discounted, with the swap value being the difference between the current value of the future flows receivable and the current value of the future flows payable.

As of the end of the period, the above transactions were recorded under “Memorandum Accounts - Debit Accounts – Derivatives – Interest rate swap” for 712,538.

Interest rate swap for 33,430 (Fixed Rate versus Badlar), with final maturity in September 2019, for which the Bank pays a variable amount in accordance with changes in the Badlar, Encuesta rate, and receives a fixed amount based on stated notional amounts.

Said transaction was consummated as hedge for potential volatility in the cash flows arising from certain financing deals attributable to changes in the designated benchmark interest rates and it has proven to be effective hedge for the risk mentioned.

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The aim pursued by risk management consists in reducing exposure to changes in cash flows arising from financing deals. Thanks to the hedge established, changes in the cash flows arising from the underlying instrument caused by changes in the benchmark interest rate would decrease as a result of having been offset with the changes in the cash flows arising from the hedge instrument.

As of the end of the period the above transaction was recorded under “Memorandum Accounts - Debit Accounts –Derivatives – Interest rate swap” for 33,430.

Non-deliverable forward purchase and sale transactions in foreign currency payable in Pesos, maturing within a period not exceeding 1 year, for 2,140,619 and 2,631,574, which are recorded under “Memorandum Accounts - Debit Accounts - Derivatives – “Notional” amount of non-deliverable forward transactions”, and “Memorandum Accounts - Credit Accounts - Derivatives – “Notional” amount of non-deliverable forward transactions”, respectively.

These transactions have been valued in accordance with the criteria described in note 2.3.n.2.), recognizing the amount of 48,486 as income for the period.

Forward sales of BCRA Bills under reverse repurchase agreements for 1,160,686 and of Government securities for 44,161, which are recorded under “Other liabilities from financial transactions – Instruments to be delivered for spot and forward sales to be settled”.

These transactions have been valued in accordance with the description in note 2.3.g) recognizing the amount of 44,880 as income for the period.

Forward purchases of BCRA Bills under repurchase agreements for 1,201,083, which are recorded under “Other receivables from financial transactions – Instruments to be received for spot and forward purchases to be settled”.

These transactions have been valued in accordance with the description in note 2.3.g) recognizing the amount of 3,025 as loss for the period.

II.

Transactions as of December 31, 2014:

Interest rate swaps for 1,061,420 (Fixed Rate versus Badlar), maturing within a period not exceeding 2 years for which the Bank pays a variable amount in accordance with changes in the Badlar, Encuesta rate, and receives a fixed amount based on stated notional amounts.

These transactions have been valued in accordance with the criteria described in note 2.3.n.1.) recognizing the amount of 12,492 as income for the fiscal year.

The estimated fair value of said instruments amounts to 17,218 (Asset). For fair value estimation purposes, the variable and fixed as yet not matured future flows are discounted, with the swap value being the difference between the current value of the future flows receivable and the current value of the future flows payable.

As of the end of the fiscal year, the above transactions were recorded under “Memorandum Accounts - Debit Accounts – Derivatives – Interest rate swap” for 1,061,420.

Interest rate swap for 36,545 (Fixed Rate versus Badlar), with final maturity in September 2019, for which the Bank pays a variable amount in accordance with changes in the Badlar, Encuesta rate, and receives a fixed amount based on stated notional amounts.

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instrument caused by changes in the benchmark interest rate would decrease as a result of having been offset with the changes in the cash flows arising from the hedge instrument.

As of the end of the fiscal year the above transaction was recorded under “Memorandum Accounts - Debit Accounts –Derivatives – Interest rate swap” for 36,545.

Non-deliverable forward purchase and sale transactions in foreign currency payable in Pesos, maturing within a period not exceeding 1 year, for 2,984,388 and 2,915,793, which are recorded under “Memorandum Accounts - Debit Accounts - Derivatives – “Notional” amount of non-deliverable forward transactions”, and “Memorandum Accounts - Credit Accounts - Derivatives – “Notional” amount of non-deliverable forward transactions”, respectively.

These transactions have been valued in accordance with the criteria described in note 2.3.n.2.), recognizing the amount of 485,423 as income for the fiscal year.

Forward sales of BCRA Bills under reverse repurchase agreements for 676,995 and of Government securities for 234,986, which are recorded under “Other liabilities from financial transactions – Instruments to be delivered for spot and forward sales to be settled”.

These transactions have been valued in accordance with the description in note 2.3.g) recognizing the amount of 43,423 as income for the fiscal year.

The Bank does not carry any pending balances associated to repos in force at December 31, 2014. However, the transactions conducted at December 31, 2014 have yielded a 7,888 loss at the end of the fiscal year.

13.

COMPLIANCE WITH CNV REQUIREMENTS

13.1

Minimum Stockholders’ Equity and Minimum of liquid assets:

According to CNV’s General Resolution Nr. 622/13, the minimum Stockholders’ Equity required to operate as “Settlement and Clearing Agent – Comprehensive” would amount to 15,000 and the minimum of liquid assets required by those rules would be 7,500. This amount comprises Federal Government Bonds in Pesos Badlar + 200 bp maturing in 2016 and deposited with the account opened at Caja de Valores S.A. entitled “Depositor 1647 Brokerage Account 5446483 BBVA Banco Francés Minimum Counterbalancing Entry”. As of June 30, 2015 and the end of the previous fiscal year, the Bank’s Stockholders’ Equity exceeds the minimum amount imposed by CNV.

13.2

The Bank’s operations as Mutual Funds’ Custodian Agent

As of June 30, 2015 and the end of the previous fiscal year, in its capacity as Custodian Agent of “FBA Ahorro Pesos”, “FBA Renta Pesos”, “FBA Calificado”, “FBA Horizonte”, “FBA Acciones Latinoamericanas”, “FBA Bonos Argentina”, “FBA Acciones Argentinas”, “FBA Bonos Globales” managed by BBVA Francés Asset Management S.A. Sociedad Gerente de Fondos Comunes de Inversión, the Bank holds certificates of deposits, repos, shares, corporate bonds, government securities, indexes, deferred payment checks, securities issued by the BCRA, Cedears, ADRS, shares in mutual funds and financial trusts in safekeeping in the amount of 8,687,308 and 5,917,790, respectively, all of which making up the Fund’s portfolio and booked in “Memorandum Accounts - Debit Accounts -Control - Other”.

The Investment Funds´ equities are as follows:


	EQUITIES AS OF
INVESTMENT FUND	06-30-2015		12-31-2014
FBA Ahorro Pesos		6,843,526		3,692,738
FBA Renta Pesos		2,128,156		2,515,529
FBA Calificado		290,586		223,763
FBA Bonos Argentina		94,510		23,179
FBA Horizonte		83,682		68,071
FBA Acciones Latinoamericanas		57,281		47,804
FBA Acciones Argentinas		961		793
FBA Bonos Globales		182		164


Total		9,498,884		6,572,041

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14.

EARNINGS DISTRIBUTIONS

The Bank has in place an earnings distribution policy in line with the Bank’s vocation for sustained stockholder value, that at the same time allows the Bank’s financial condition to perform favourably so as to strive for business growth and the maintenance of consistently high liquidity and solvency standards in compliance with currently applicable rules and regulations.

Restriction on earnings distributions:

On April 7, 2015, the Ordinary and Extraordinary Shareholders’ Meeting was held, approving the allocation of earnings as follows:

•

To Legal Reserve: 640,899

•

To Cash dividend: 400,000 (*)

•

To Voluntary reserve for future distributions of income: 2,163,597 (**)

(*) Subject to BCRA’s approval. See paragraph b) below.

(**)Depending on the amount eventually authorized by BCRA, 400,000 may be added to this amount.

In accordance with the dispositions of point 2.1 of Communication “A” 5273 of “Distribution of Income” of the BCRA issued on January 27, 2012 and of Communication “A” 5689 issued on January 8, 2015, for purposes of calculating the earnings subject to distribution, off-balance sheet deductions must be performed from the sum of the balances recorded in the account Unappropriated retained earnings and in the Voluntary reserve for future distributions of income. In addition, the authorization of the Superintendent of Financial and Exchange Institutions shall be required in order to verify that the procedure established in said resolution for earnings distribution has been properly applied. At the date of issuance of these financial statements, the above-mentioned distribution of dividends is pending approval by the BCRA.

15.

ACCOUNTS IDENTIFYING COMPLIANCE WITH MINIMUM CASH

The following are the items computed for Compliance with Minimum Cash Requirements according to the regulations of the BCRA, with their corresponding balances as of June 30, 2015 and the end of the previous fiscal year:


	06-30-15		12-31-14

COMPUTABLE COMPLIANCE IN PESOS

Special Guarantee Accounts		510,341		277,841
BCRA Checking Account		6,457,000		4,323,948
Special social security accounts		90,221		5,673



TOTAL		7,057,562		4,607,462


COMPUTABLE COMPLIANCE IN US DOLLARS (Stated in thousands of pesos)

Special Guarantee Accounts		36,819		34,653
BCRA Checking Account		3,135,111		4,926,882


TOTAL		3,171,930		4,961,535

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COMPUTABLE COMPLIANCE IN EUROS (Stated in thousands of pesos)

BCRA Checking Account	66,526	68,137


TOTAL	66,526	68,137

16.

STATEMENTS OF CASH AND CASH EQUIVALENTS FLOW

The Statements of Cash and cash equivalents flow explain the changes in cash and cash equivalents. For such purpose, a detail is supplied of the items that the Bank considers to be cash and cash equivalents:


	06-30-15		12-31-14		06-30-14		12-31-13
a) Cash and due from banks		13,597,847		12,525,541		11,430,853		12,844,259
b) Government securities		--,--		--,--		259,229		88,812

c) Loans to financial sector, call granted maturity date less than three months as from the end of each period or fiscal year		378,610		525,950		487,480		671,120


CASH AND CASH EQUIVALENTS		13,976,457		13,051,491		12,177,562		13,604,191

Items b) and c) are considered to be cash equivalents because they are held in order to meet short-term commitments, they are readily convertible in known cash amounts, they are subject to insignificant risk of changes in value and their maturity is less than three months as from the period or fiscal year date.

17.

THE BANK’S DOCUMENTATION AND RECORDS – CNV RESOLUTION Nr. 629/14

CNV issued its General Resolution Nr. 629 on August 14, 2014 to introduce changes in its own rules governing the maintenance and safekeeping of corporate books, accounting records and business documentation. In this respect, it is reported that the Bank has sent the documentation that supports its operations for the periods still open to audit for safekeeping to Administradora de Archivos S.A. (AdeA), domiciled at Ruta 36 Km. 31.5 of Florencio Varela, Province of Buenos Aires.

In addition, it is put on record that a detail of the documentation delivered for safekeeping, as well as the documentation referred to in Article 5, Sub-article a.3), Section I of Chapter V of Title II of the CNV rules is available at the Bank’s registered office (Technical Rules 2013 as modified).

18.

IFRS CONVERGENCE IMPLEMENTATION PLAN.

As of the date of issuance of these financial statements, the Bank was in the process of implementing the plan geared to convergence with the International Financial Reporting Standards (IFRS) as set forth in the Argentine Central Bank’s Communication “A” 5541 and supplementary rules in this respect, which will be effective as from the financial statements for the fiscal years beginning on January 1, 2018. On March 17, 2015, the Entity’s Board of Directors approved the above-mentioned Plan, which was filed with the Argentine Central Bank on March 30, 2015.

19.

PURCHASE OF STOCK IN VOLKSWAGEN CREDIT COMPAÑÍA FINANCIERA S.A.

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On May 20, 2015, the Bank executed a Stock Purchase Agreement with Grupo Volkswagen. Pursuant to this Stock Purchase Agreement, the Bank will acquire 51% of the capital stock of Volkswagen Credit Compañía Financiera S.A., equivalent to 23,970,000 non-endorsable, registered, ordinary shares with par value $ 1 and the right to one vote per share. The transaction will be consummated after the consent by the Argentine Central Bank is received.

For the acquisition of these shares, a maximum price has been established at 53,040 which must be paid by the Bank at the closing of the transaction.

20.

PUBLICATION OF THE FINANCIAL STATEMENTS

As provided by Communication “A” 760, the previous intervention of the BCRA is not required for the publication of these financial statements.

21.

ACCOUNTING PRINCIPLES – EXPLANATION ADDED FOR TRANSLATION INTO ENGLISH

These financial statements are presented on the basis of the accounting standards of the BCRA and, except for the effect of the matters mentioned in note 3 to the stand – alone financial statements and note 2 to the consolidated financial statements, in accordance with the Argentine professional accounting standards. Certain accounting practices applied by the Bank that conform with the standards of the BCRA and with the Argentine professional accounting standards may not conform with the generally accepted accounting principles in other countries.

The effects of the differences, if any, between Argentine professional accounting standards and the generally accepted accounting principles in the countries in which the financial statements are to be used have not been quantified. Accordingly, they are not intended to present financial position, results of operations and cash flows in accordance with generally accepted accounting principles in the countries of the users of the financial statements, other than Argentina.

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EXHIBIT A

DETAIL OF GOVERNMENT AND PRIVATE SECURITIES

AS OF JUNE 30, 2015 AND DECEMBER 31, 2014

(Translation of financial statements originally issued in Spanish - See note 21)

- Stated in thousands of pesos -


		Holding
			Book balance		Book balance		Position
	ID	Market	as of		as of		without			Final
Description	Caja de Valores	value or present value	06-30-2015		12-31-2014		options			position

GOVERNMENT SECURITIES

Government securities at fair value

Local
In pesos
Secured Bonds maturing in 2020	2423			1,186,287				1,186,287			1,186,287
Federal Government Bonds in Pesos Badlar + 200 bp maturing in 2016	5460			320,891				316,031			316,031
Federal Government Bonds in Pesos Badlar + 200 bp maturing in 2017	5459			292,571				292,571			292,571
Peso-denominated Discount governed by Argentine Law maturing in 2033	45696			270,455				270,455			270,455
Argentine Treasury Bonds 18 months maturing 09-30-16	5313			99,000				99,000			99,000
Argentine Treasury Bonds maturing 05-09-16	5314			77,603				77,603			77,603
Other				66,619				66,619			66,619


Subtotal in pesos				2,313,426		2,526,105		2,308,566			2,308,566


In foreign currency
Argentine Bond of Saving towards economic development	5456			192,283				192,283			192,283
Federal Government Bonds in US Dollars 1.75% maturing in 2016	5461			55,665				27,832			27,832
Federal Government Bonds in US Dollars 7% maturing in 2015	5433			39,427				--,--			--,--
Federal Government Bonds in US Dollars 2.4% maturing in 2018	5462			25,137				25,137			25,137
Federal Government Bonds in US Dollars 8,75% maturing in 2024	5458			757				(2,204	)		(2,204	)
Other				1,383				--,--			--,--


Subtotal in foreign currency				314,652		415,760		243,048			243,048


From abroad
Other				13				8			8


				13		--,--		8			8



Subtotal Government securities at fair value				2,628,091		2,941,865		2,551,622			2,551,622



Government securities at amortized cost

Local
In pesos
Other				164				164			164


Subtotal in pesos				164		164		164			164



Subtotal Government securities at amortized cost				164		164		164			164

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EXHIBIT A

(Contd.)

DETAIL OF GOVERNMENT AND PRIVATE SECURITIES

AS OF JUNE 30, 2015 AND DECEMBER 31, 2014

(Translation of financial statements originally issued in Spanish - See note 21)

- Stated in thousands of pesos -


			Holding
				Book balance		Book balance		Position
	ID		Market	as of		as of		without		Final
Description	Caja de Valores		value or present value	06-30-2015		12-31-2014		options		position


Instruments issued by the BCRA

BCRA Bills
At fair value
Argentine Central Bank Internal Bills due 07-15-15		46604			286,978				633,787		633,787
Argentine Central Bank Internal Bills due 07-08-15		46605			282,320				282,320		282,320
Argentine Central Bank Internal Bills due 09-16-15		46615			264,611				264,611		264,611
Argentine Central Bank Internal Bills due 08-26-15		46611			158,304				158,304		158,304
Argentine Central Bank Internal Bills due 07-29-15		46618			123,801				123,801		123,801
Argentine Central Bank Internal Bills due 07-22-15		46614			109,572				257,542		257,542
Argentine Central Bank Internal Bills due 11-04-15		46625			91,558				412,011		412,011
Argentine Central Bank Internal Bills due 08-05-15		46607			69,615				121,370		121,370
Argentine Central Bank Internal Bills due 08-12-15		46608			63,765				170,689		170,689
Other					25,601				25,601		25,601


Subtotal at fair value					1,476,125		1,415,875		2,450,036		2,450,036


Repurchase transactions
Argentine Central Bank Internal Bills due 09-30-15		46620			1,160,686				--,--		--,--


Subtotal repurchase transactions					1,160,686		676,994		--,--		--,--


At amortized cost
Argentine Central Bank Internal Bills due 03-02-16		46645			874,466				874,466		874,466
Argentine Central Bank Internal Bills due 02-24-16		46644			773,169				773,169		773,169
Argentine Central Bank Internal Bills due 12-16-15		46632			736,450				976,274		976,274
Argentine Central Bank Internal Bills due 01-13-16		46637			609,960				609,960		609,960
Argentine Central Bank Internal Bills due 02-17-16		46643			594,563				594,563		594,563
Argentine Central Bank Internal Bills due 10-21-15		46623			530,830				530,830		530,830
Argentine Central Bank Internal Bills due 01-20-16		46638			530,441				530,441		530,441
Argentine Central Bank Internal Bills due 10-28-15		46624			459,594				456,092		456,092
Argentine Central Bank Internal Bills due 11-11-15		46627			457,955				457,955		457,955
Argentine Central Bank Internal Bills due 12-09-15		46631			402,025				402,025		402,025
Argentine Central Bank Internal Bills due 02-03-16		46640			386,734				386,734		386,734
Argentine Central Bank Internal Bills due 09-30-15		46620			378,200				378,200		378,200
Argentine Central Bank Internal Bills due 12-30-15		46635			367,930				367,930		367,930
Argentine Central Bank Internal Bills due 08-19-15		46609			338,163				347,835		347,835
Argentine Central Bank Internal Bills due 01-27-16		46639			199,371				199,371		199,371
Argentine Central Bank Internal Bills due 09-02-15		46647			192,487				192,487		192,487
Argentine Central Bank Internal Bills in US dollars due 07-29-15		12093			159,824				159,824		159,824
Argentine Central Bank Internal Bills in US dollars due 07-08-15		12089			96,463				96,463		96,463
Argentine Central Bank Internal Bills due 12-02-15		46630			89,809				89,809		89,809
Argentine Central Bank Internal Bills in US dollars due 07-01-15		12045			80,958				80,958		80,958
Argentine Central Bank Internal Bills in US dollars due 08-12-15		12096			77,639				77,639		77,639
Argentine Central Bank Internal Bills in US dollars due 09-09-15		13014			76,590				76,590		76,590
Argentine Central Bank Internal Bills in US dollars due 07-22-15		12051			55,147				55,147		55,147
Argentine Central Bank Internal Bills in US dollars due 08-19-15		13002			43,785				43,785		43,785
Argentine Central Bank Internal Bills in US dollars due 08-12-15		13044			42,484				42,484		42,484
Argentine Central Bank Internal Bills in US dollars due 09-23-15		12105			40,165				40,165		40,165
Other					281,511				387,479		387,479


Subtotal at amortized cost					8,876,713		6,537,187		9,228,675		9,228,675


Subtotal instruments issued by the BCRA					11,513,524		8,630,056		11,678,711		11,678,711


TOTAL GOVERNMENT SECURITIES					14,141,779		11,572,085		14,230,497		14,230,497

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EXHIBIT A

(Contd.)

DETAIL OF GOVERNMENT AND PRIVATE SECURITIES

AS OF JUNE 30, 2015 AND DECEMBER 31, 2014

(Translation of financial statements originally issued in Spanish - See note 21)

- Stated in thousands of pesos -


			Holding
Description	ID Caja de Valores		Market value		Book balance as of 06-30-2015		Book balance as of 12-31-2014		Position without options		Final position


INVESTMENTS IN LISTED PRIVATE SECURITIES

Other Equity instruments
Local
In pesos
Tenaris S.A.		40115		136		136				136		136


Subtotal in pesos						136		141		136		136



From abroad
In foreign currency

Other						37				37		37



Subtotal in foreign currency						37		37		37		37



Subtotal Equity instruments						173		178		173		173


TOTAL INVESTMENTS IN LISTED PRIVATE SECURITIES						173		178		173		173



TOTAL GOVERNMENT AND PRIVATE SECURITIES						14,141,952		11,572,263		14,230,670		14,230,670

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EXHIBIT B

CLASSIFICATION OF FINANCING FACILITIES BY CATEGORIES

AND GUARANTIES RECEIVED AS OF JUNE 30, 2015 AND DECEMBER 31, 2014

(Translation of financial statements originally issued in Spanish - See note 21)

-Stated in thousands of pesos-


	06-30-2015		12-31-2014

COMMERCIAL PORTFOLIO

Normal performance		25,584,134		22,084,118



Preferred collaterals and counter guaranties “A”		1,564,329		1,215,074
Preferred collaterals and counter guaranties “B”		965,030		770,416
Without senior security or counter guaranties		23,054,775		20,098,628

With special follow-up		6,310		7,022



Under observation		6,310		7,022



Preferred collaterals and counter guaranties “B”		6,309		540
Without senior security or counter guaranties		1		6,482

Non-performing		--,--		5,048



Without senior security or counter guaranties		--,--		5,048

With high risk of uncollectibility		17,065		--,--



Preferred collaterals and counter guaranties “A”		6,827		--,--
Preferred collaterals and counter guaranties “B”		592		--,--
Without senior security or counter guaranties		9,646		--,--

Uncollectible		5,501		27,508



Preferred collaterals and counter guaranties “B”		5,000		3,750
Without senior security or counter guaranties		501		23,758



Total		25,613,010		22,123,696

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EXHIBIT B

(Contd.)

CLASSIFICATION OF FINANCING FACILITIES BY CATEGORIES

AND GUARANTIES RECEIVED AS OF JUNE 30, 2015 AND DECEMBER 31, 2014

(Translation of financial statements originally issued in Spanish - See note 21)

-Stated in thousands of pesos-


	06-30-2015		12-31-2014

CONSUMER AND HOUSING PORTFOLIO

Normal performance		24,906,566		22,255,710



Preferred collaterals and counter guaranties “A”		35,383		41,185
Preferred collaterals and counter guaranties “B”		2,097,900		1,890,172
Without senior security or counter guaranties		22,773,283		20,324,353

Low risk		196,049		221,648



Preferred collaterals and counter guaranties “A”		--,--		68
Preferred collaterals and counter guaranties “B”		16,308		23,400
Without senior security or counter guaranties		179,741		198,180

Medium risk		222,855		196,426



Preferred collaterals and counter guaranties “B”		6,210		10,359
Without senior security or counter guaranties		216,645		186,067

High risk		127,459		129,534



Preferred collaterals and counter guaranties “B”		18,333		16,183
Without senior security or counter guaranties		109,126		113,351

Uncollectible		25,400		33,395



Preferred collaterals and counter guaranties “B”		10,319		9,674
Without senior security or counter guaranties		15,081		23,721

Uncollectible, classified as such under regulatory requirements		68		136



Without senior security or counter guaranties		68		136



Total		25,478,397		22,836,849



General Total (1)		51,091,407		44,960,545

(1) Items included: Loans (before allowances); Other receivables from financial transactions: Unlisted corporate bonds and Other receivables covered by debtor classification regulations; Receivables from financial leases (before allowances); Memorandum accounts - Credit - Contingent: Credit lines granted (unused portion) covered by debtor classification regulations, Other guaranties given covered by debtor classification regulations and Other covered by debtor classification regulations.

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EXHIBIT C

FINANCING FACILITIES CONCENTRATION

AS OF JUNE 30, 2015 AND DECEMBER 31, 2014

(Translation of financial statements originally issued in Spanish - See note 21)

- Stated in thousands of pesos -


	06-30-2015				12-31-2014
Number of clients	Outstanding balance		% of total portfolio		Outstanding balance		% of total portfolio

10 largest clients		5,652,564		11.06%		5,084,274		11.31%

50 next largest clients		7,008,226		13.72%		6,428,811		14.30%

100 following clients		4,374,922		8.56%		3,771,556		8.39%

Remaining clients		34,055,695		66.66%		29,675,904		66.00%



Total (1)		51,091,407		100.00%		44,960,545		100.00%

(1)	See (1) in Exhibit B.

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EXHIBIT D

BREAKDOWN BY FINANCING TERMS AS OF JUNE 30, 2015

(Translation of financial statements originally issued in Spanish - See note 21)

- Stated in thousands of pesos -


			Term remaining to maturity
Description	Past-due portfolio		1 month		3 months		6 months		12 months		24 months		More than 24 months		Total

Government sector		--,--		198		--,--		--,--		--,--		60,275		--,--		60,473

Financial sector		--,--		562,248		259,885		300,983		519,342		111,878		--,--		1,754,336

Non financial private sector and residents abroad		186,667		25,677,939		4,162,018		4,326,990		3,663,910		5,234,835		6,024,239		49,276,598

TOTAL		186,667		26,240,385		4,421,903		4,627,973		4,183,252		5,406,988		6,024,239		51,091,407	(1)

(1)	See (1) in Exhibit B.

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EXHIBIT E

DETAIL OF INVESTMENTS IN OTHER COMPANIES

AS OF JUNE 30, 2015 AND DECEMBER 31, 2014

(Translation of financial statements originally issued in Spanish – See note 21)

- Stated in thousands of pesos -



													Information about the issuer
Concept		Shares							Amount					Data from last published financial statements

Identification	Description	Class	Unit face value		Votes per share		Number		06-30-2015		12-31-2014		Main business	Period / Fiscal year end		Capital stock		Stockholders’ equity		Income/ (Loss) for the period / fiscal year

	FINANCIAL INSTITUTIONS, SUPPLEMENTARY AND AUTHORIZED

	Controlled

	Local																		thousands of pesos

33642192049	BBVA Francés Valores S.A.	Common		500$		1		12,396		34,341		25,208	Stockbroker		06-30-2015		6,390		35,404		9,415
30663323926	Consolidar Administradora de Fondos de Jubilaciones y Pensiones S.A. (undergoing liquidation proceedings)	Common		1$		1		35,425,947		4,819		4,591	Pensions fund manager		06-30-2015		65,739		8,943		1,201

30707847367	PSA Finance Arg. Cía Financiera S.A.	Common		1,000$		1		26,089		262,831		271,156	Financial institution		06-30-2015		52,178		525,662		131,334

30548590163	BBVA Francés Asset Management S.A. Sociedad Gerente de Fondos Comunes de Inversión	Common		1$		1		230,398		108,468		78,567	Investment Fund Manager		06-30-2015		243		160,398		31,475
33707124909	Rombo Cía. Financiera S.A.	Common		1,000$		1		24,000		203,266		254,095	Financial Institution		06-30-2015		60,000		508,165		124,927

		Subtotal controlled								613,725		633,617


	Non controlled

	Local

30598910045	Prisma Medios de Pago S.A. (exVisa Argentina S.A.)	Common		1$		1		1,571,996		6,428		6,428	Services to companies		05-31-2014		15,000		356,378		295,046
30690783521	Interbanking S.A.	Common		1$		1		149,556		7,304		5,111	Services		12-31-2014		1,346		232,398		186,398
	Other									248		250

	Foreign

30710156561	Banco Lat. de Comercio Exterior S.A.	Common B		57$		1		20,221		2,287		2,152	Banking institution		12-31-2014		2,394,389		7,791,411		914,551

		Subtotal noncontrolled								16,267		13,941

		Total in financial institutions, supplementary and authorized								629,992		647,558


	IN OTHER COMPANIES

	Non controlled

	Local

30500064230	BBVA Consolidar Seguros S.A.	Common		1$		1		1,301,847		55,520		44,353	Insurance		06-30-2015		10,651		454,337		151,240

	Foreign

17BE1002	S.W.I.F.T. S.C.R.L.	Common		1,283$		1		4		114		107	Financial messenger services		12-31-2014		141,590		3,342,790		297,550

		Subtotal non controlled								55,634		44,460

		Total in other companies								55,634		44,460

		Total investments in other companies								685,626		692,018

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EXHIBIT F

MOVEMENT OF PREMISES AND EQUIPMENT AND OTHER ASSETS

FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2015 AND

THE FISCAL YEAR ENDED DECEMBER 31, 2014

(Translation of financial statements originally issued in Spanish - See note 21)

- Stated in thousands of pesos -


Description	Net book value at beginning of fiscal year		Additions		Transfers		Decreases		Depreciation for the period				Net book value at 06-30-2015		Net book value at 12-31-2014
Description	Net book value at beginning of fiscal year		Additions		Transfers		Decreases		Years of useful life		Amount		Net book value at 06-30-2015		Net book value at 12-31-2014

PREMISES AND EQUIPMENT

Real Estate		389,249		21		48,416		--,--		50		24,150		413,536		389,249
Furniture and Facilities		349,477		54,836		6,987		--,--		10		25,642		385,658		349,477
Machinery and Equipment		180,517		41,735		18,604		30		3 & 5		50,573		190,253		180,517
Automobiles		4,994		--,--		--,--		457		5		775		3,762		4,994



Total		924,237		96,592		74,007		487				101,140		993,209		924,237



OTHER ASSETS

Construction in progress		139,639		38,833		(54,700)		32,523		--,--		--,--		91,249		139,639
Advances to suppliers of goods		940,218		287,705		--,--		33,903		--,--		--,--		1,194,020		940,218
Works of Art		992		--,--		--,--		--,--		--,--		--,--		992		992
Leased assets		2,247		--,--		--,--		--,--		50		24		2,223		2,247
Property taken as security for loans		2,424		519		--,--		79		50		57		2,807		2,424
Stationery and office supplies		24,165		11,906		--,--		11,239		--,--		--,--		24,832		24,165
Other		35,130		--,--		(19,307)		--,--		50		93		15,730		35,130



Total		1,144,815		338,963		(74,007)		77,744				174		1,331,853		1,144,815

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EXHIBIT G

MOVEMENT OF INTANGIBLE ASSETS

FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2015 AND

THE FISCAL YEAR ENDED DECEMBER 31, 2014

(Translation of financial statements originally issued in Spanish - See note 21)

- Stated in thousands of pesos -


Description	Net book value at beginning of fiscal year		Additions		Amortization for the period
Description	Net book value at beginning of fiscal year		Additions		Years of useful life	Amount		Net book value at 06-30-2015		Net book value at 12-31-2014

Organization and development expenses (1)		144,357		62,169	1 & 5		30,659		175,867		144,357

Organization and development non-deductible expenses		--,--		4,074	--,--		4,074		--,--		--,--


Total		144,357		66,243			34,733		175,867		144,357

(1)	This caption mainly includes costs from information technology projects and leasehold improvements.

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EXHIBIT H

CONCENTRATION OF DEPOSITS

AS JUNE 30, 2015 AND DECEMBER 31, 2014

(Translation of financial statements originally issued in Spanish - See note 21)

- Stated in thousands of pesos -


	06-30-2015				12-31-2014
Number of clients	Outstanding balance		% of total portfolio		Outstanding balance		% of total portfolio

10 largest clients		4,396,252		7.33%		4,410,087		8.57%

50 next largest clients		5,318,686		8.87%		4,770,509		9.27%

100 following clients		2,865,625		4.78%		2,909,097		5.66%

Remaining clients		47,414,084		79.02%		39,345,958		76.50%

TOTAL		59,994,647		100.00%		51,435,651		100.00%

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EXHIBIT I

BREAKDOWN OF MATURITY TERMS OF DEPOSITS AND

OTHER LIABILITIES FROM FINANCIAL TRANSACTIONS

AS OF JUNE 30, 2015

(Translation of financial statements originally issued in Spanish - See note 21)

- Stated in thousands of pesos -


	Terms remaining to maturity
Description	1 month		3 months		6 months		12 months		24 months		More than 24 months		Total

Deposits		53,665,757		5,543,986		580,782		200,272		3,850		--,--		59,994,647


Other liabilities from financial transactions

Argentine Central Bank		4,756		4,099		6,307		13,078		23,913		9,284		61,437

Banks and International Institutions		112,536		137,700		113,200		--,--		--,--		--,--		363,436

Unsubordinated corporate bonds		19,069		298,712		134,300		364,036		539,991		273,400		1,629,508

Financing received from local financial institutions		196,086		--,--		--,--		--,--		--,--		--,--		196,086

Other		3,873,388		3,942		5,990		12,957		23,089		11,666		3,931,032

Total Other liabilities from financial transactions		4,205,835		444,453		259,797		390,071		586,993		294,350		6,181,499




TOTAL		57,871,592		5,988,439		840,579		590,3443		590,843		294,350		66,176,146

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EXHIBIT J

MOVEMENT OF ALLOWANCES

FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2015

AND THE FISCAL YEAR ENDED DECEMBER 31, 2014

(Translation of financial statements originally issued in Spanish - See note 21)

- Stated in thousands of pesos -


							Decreases				Book value
Description	Book value at beginning of fiscal year		Increases (4)				Reversals		Applications		06-30-2015		12-31-2014
DEDUCTED FROM ASSETS
Government securities
– For impairment value		201		--,--				--,--		--,--		201		201

Loans
– Allowance for doubtful loans		905,336		322,173	(1	)		--,--		252,635		974,874		905,336

Other receivables from financial transactions
– Allowance for doubtful receivables and impairment		2,139		--,--	(1	)		423		1		1,715		2,139

Receivables from financial leases
– Allowance for doubtful receivables and impairment		28,808		6,384	(1	)		--,--		5,845		29,347		28,808

Other receivables
– Allowance for doubtful receivables (2)		291,237		58,407				23		111		349,510		291,237


Total		1,227,721		386,964				446		258,592		1,355,647		1,227,721



LIABILITIES-ALLOWANCES
– Contingents commitments (1)		577		17				--,--		--,--		594		577

– Other contingencies		770,496		148,980	(3	)		74		67,556		851,846		770,496

– For administrative, disciplinary and criminal penalties		--,--		48,817	(5	)		--,--		--,--		48,817		--,--


Total		771,073		197,814				74		67,556		901,257		771,073

(1)	Recorded in compliance with the provisions of Communication “A” 3918, as supplemented, of the BCRA, taking into account note 2.3.f).

(2)	Includes mainly the potential loan loss risk arising from the amounts booked as Miscellaneous receivables relating to the petitions for the protection of constitutional rights (Amparos) paid and the deferred tax asset (See note 4.1).

(3)	Recorded to cover possible contingencies that were not considered in other accounts (court orders corresponding to petitions for protection of civil rights, labor, commercial and other lawsuits). (See note 2.3.p).

(4)	Includes exchange differences generated as allowances in foreign currency, booked in the “Financial income - Gold and foreign currency exchange difference” account, as follow:

–

Loans 1,730

–

Other receivables 1,212

(5)	See note 6.1.

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EXHIBIT K

CAPITAL STRUCTURE AS OF JUNE 30, 2015

(Translation of financial statements originally issued in Spanish - See note 21)

- Stated in thousands of pesos -

SHARES

CAPITAL STOCK

Votes per

Issued

Pending

issuance or

Class

Quantity

share

Outstanding

In portfolio

distribution

Paid in

Common

536,877,850

536,833

--,--

(1)

536,878

(2)

(1) Shares issued and available to stockholders but not as yet withdrawn.

(2) Fully registered with the Public Registry of Commerce (See note 1.2.).

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EXHIBIT L

FOREIGN CURRENCY BALANCES AS OF

JUNE 30, 2015 AND DECEMBER 31, 2014

(Translation of financial statements originally issued in Spanish - See note 21)

-Stated in thousands of pesos-


Accounts	06-30-2015														12-31-2014

			Total of the period (per type of currency)

	Total of the period		Euro		US Dollars		Pounds Sterling		Swiss Franc		Yen		Other		Total of the fiscal year
ASSETS

Cash and due from banks		5,177,936		160,774		4,996,205		4,689		2,895		1,335		12,038		6,065,743
Government and private securities		1,240,896		--,--		1,240,859		--,--		--,--		--,--		37		415,797
Loans		2,614,656		2,786		2,611,870		--,--		--,--		--,--		--,--		2,070,525
Other receivables from financial transactions		1,047,560		20,288		1,027,272		--,--		--,--		--,--		--,--		324,144
Investments in other companies		2,401		114		2,287		--,--		--,--		--,--		--,--		2,259
Other receivables		176,015		149		175,866		--,--		--,--		--,--		--,--		154,616
Suspense items		428		--,--		428		--,--		--,--		--,--		--,--		378

TOTAL		10,259,892		184,111		10,054,787		4,689		2,895		1,335		12,075		9,033,462

LIABILITIES

Deposits		6,425,328		91,455		6,333,873		--,--		--,--		--,--		--,--		5,488,117
Other liabilities from financial transactions		2,095,300		72,019		2,016,248		1,341		2,681		590		2,421		1,725,670
Other liabilities		55,349		6,707		48,642		--,--		--,--		--,--		--,--		55,840
Suspense items		1,564		--,--		1,564		--,--		--,--		--,--		--,--		1,016

TOTAL		8,577,541		170,181		8,400,327		1,341		2,681		590		2,421		7,270,643

MEMORANDUM ACCOUNTS

Debit accounts (except contra debit accounts)
Contingent		3,504,059		218,498		3,285,561		--,--		--,--		--,--		--,--		2,927,981
Control		49,130,550		268,865		48,860,141		--,--		336		478		730		39,540,975

TOTAL		52,634,609		487,363		52,145,702		--,--		336		478		730		42,468,956

Credit accounts (except contra credit accounts)
Contingent		734,566		84,110		649,088		--,--		--,--		1,368		--,--		603,372
Control		67,065		8,838		58,227		--,--		--,--		--,--		--,--		122,585

TOTAL		801,631		92,948		707,315		--,--		--,--		1,368		--,--		725,957

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EXHIBIT N

ASSISTANCE TO RELATED CLIENTS AND AFFILIATES

AS OF JUNE 30, 2015 AND DECEMBER 31, 2014

(Translation of financial statements originally issued in Spanish - See note 21)

- Stated in thousands of pesos -


	Status
Concept	Normal		With special follow-up / Low risk		With problems / Medium risk				With high risk of uncollectibility / High risk				Uncollectible		Classified uncollectible as such		Total (1)
Concept	Normal		With special follow-up / Low risk		Not yet matured		Past-due		Not yet matured		Past-due				under regulatory requirements		06-30-2015		12-31-2014


1. Loans		1,639,283		--,--		--,--		--,--		--,--		--,--		--,--		--,--		1,639,283		1,824,455

- Overdraft		5,066		--,--		--,--		--,--		--,--		--,--		--,--		--,--		5,066		572

Without senior security or counter guaranty		5,066		--,--		--,--		--,--		--,--		--,--		--,--		--,--		5,066		572

- Discounted Instruments		148,717		--,--		--,--		--,--		--,--		--,--		--,--		--,--		148,717		2,818

Without senior security or counter guaranty		148,717		--,--		--,--		--,--		--,--		--,--		--,--		--,--		148,717		2,818

- Real Estate Mortgage and Collateral Loans		3,563		--,--		--,--		--,--		--,--		--,--		--,--		--,--		3,563		3,777

Other collaterals and counter guaranty “B”		3,563		--,--		--,--		--,--		--,--		--,--		--,--		--,--		3,563		3,777

- Consumer		4,416		--,--		--,--		--,--		--,--		--,--		--,--		--,--		4,416		4,889

Without senior security or counter guaranty		4,416		--,--		--,--		--,--		--,--		--,--		--,--		--,--		4,416		4,889

- Credit Cards		6,079		--,--		--,--		--,--		--,--		--,--		--,--		--,--		6,079		5,137

Without senior security or counter guaranty		6,079		--,--		--,--		--,--		--,--		--,--		--,--		--,--		6,079		5,137

- Other		1,471,442		--,--		--,--		--,--		--,--		--,--		--,--		--,--		1,471,442		1,807,262

Without senior security or counter guaranty		1,471,442		--,--		--,--		--,--		--,--		--,--		--,--		--,--		1,471,442		1,807,262

2. Other receivables from financial transactions		38,570		--,--		--,--		--,--		--,--		--,--		--,--		--,--		38,570		43,699

3. Receivables from financial leases and other		700		--,--		--,--		--,--		--,--		--,--		--,--		--,--		700		402

4. Contingent commitments		36,440		--,--		--,--		--,--		--,--		--,--		--,--		--,--		36,440		57,932

5. Investments in other companies and private securities		666,011		--,--		--,--		--,--		--,--		--,--		--,--		--,--		666,011		665,247


Total		2,381,004		--,--		--,--		--,--		--,--		--,--		--,--		--,--		2,381,004		2,591,735


Total Allowances		16,555		--,--		--,--		--,--		--,--		--,--		--,--		--,--		16,555		18,686

(1) Maximum amount granted to related clients during June 2015 and December 2014, respectively, according to BCRA rules.

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- 47 -

EXHIBIT O

FINANCIAL DERIVATIVES INSTRUMENTS

AS OF JUNE 30, 2015

(Translation of financial statements originally issued in Spanish - See note 21)

- Stated in thousands of pesos -



Type of contract	Purpose of transactions	Underlying asset	Type of Settlement	Traded at / Counterparty	Weighted average term as originally agreed (months)	Weighted average residual term (months)	Weighted average term for difference settlements (days)	Amount


Swaps	Financial transactions – own account	-	Upon expiration of differences	Residents in Argentina – Financial sector	23	10	47		686,538

Swaps	Financial transactions – own account	-	Upon expiration of differences	Residents in Argentina – Non- financial sector	12	9	4		13,000

Swaps	Financial transactions – own account	-	Daily of differences	MAE	13	9	1		13,000

Swaps	Interest rate hedge	-	Upon expiration of differences	Residents in Argentina – Non - financial sector	122	51	6		33,430

Futures	Financial transactions – own account	Foreign currency	Daily of differences	MAE	5	4	1		2,439,851

Futures	Financial transactions – own account	Foreign currency	Daily of differences	ROFEX	5	5	1		219,382

Futures	Financial transactions – own account	Foreign currency	Upon expiration of differences	Residents in Argentina – Non - financial sector	5	4	150		2,112,960

Repo transactions	Financial transactions – own account	Federal Government Bonds	Upon expiration of differences	Residents in Argentina – Financial sector	1	1	1		44,161

Repo transactions	Financial transactions – own account	Other	Upon expiration of differences	Residents in Argentina – Financial sector	1	1	1		2,361,769


TOTAL									7,924,091

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- 48 -

CONSOLIDATED BALANCE SHEETS AS OF

JUNE 30, 2015 AND DECEMBER 31, 2014

(Art. 33 of Law Nr. 19,550)

(Translation of financial statements originally issued in Spanish - See note 21 to the stand-alone Financial Statements)

-Stated in thousands of pesos-


ASSETS:	06-30-2015		12-31-2014
A. CASH AND DUE FROM BANKS:
Cash		2,565,049		2,857,676
Due from banks and correspondents		11,081,528		9,702,478


Argentine Central Bank (BCRA)		9,806,664		9,350,350
Other local		2,030		1,196
Foreign		1,272,834		350,932


		13,646,577		12,560,154


B. GOVERNMENT AND PRIVATE SECURITIES (Note 7.a):
Holdings booked at fair value		2,628,788		2,942,473
Holdings booked at amortized cost		164		164
Instruments issued by the BCRA		11,513,524		8,630,056
Investments in listed private securities		67,896		60,997

Less: Allowances		201		201


		14,210,171		11,633,489


C. LOANS:
To government sector (Exhibit 1)		60,473		54,459
To financial sector (Exhibit 1)		938,373		1,127,116


Interfinancial – (Call granted)		23,000		30,000
Other financing to local financial institutions		733,088		880,437
Interest and listed-price differences accrued and pending collection		182,285		216,679

To non financial private sector and residents abroad (Exhibit 1)		47,083,230		41,199,059


Overdraft		8,349,886		6,861,786
Discounted instruments		6,552,563		6,035,048
Real estate mortgage		1,696,271		1,466,346
Collateral Loans		3,751,333		3,695,487
Consumer		6,353,804		6,091,937
Credit cards		13,342,004		11,465,609
Other		6,437,059		5,025,304
Interest and listed-price differences accrued and pending collection		734,690		691,454
Less: Interest documented together with main obligation		134,380		133,912

Less: Allowances		1,007,891		937,794


		47,074,185		41,442,840


D. OTHER RECEIVABLES FROM FINANCIAL TRANSACTIONS:
Argentine Central Bank (BCRA)		647,182		384,930
Amounts receivable for spot and forward sales to be settled		2,476,294		1,405,562
Instruments to be received for spot and forward purchases to be settled		2,522,519		312,684
Unlisted corporate bonds (Exhibit 1)		12,813		48,653
Non-deliverable forward transactions balances to be settled		39,895		139,149
Other receivables not covered by debtor classification regulations		6,720		14,873
Other receivables covered by debtor classification regulations (Exhibit 1)		305,727		311,787

Less: Allowances		5,516		5,267


		6,005,634		2,612,371


E. RECEIVABLES FROM FINANCIAL LEASES:
Receivables from financial leases (Exhibit 1)		2,158,444		2,075,497
Interest accrued pending collection (Exhibit 1)		28,288		27,585

Less: Allowances		30,667		29,840


		2,156,065		2,073,242


F. INVESTMENTS IN OTHER COMPANIES:
In financial institutions		205,553		256,247
Other (Note 7.b)		87,455		66,743


		293,008		322,990


G. OTHER RECEIVABLES:
Other (Note 7.c)		2,022,964		1,696,426
Other interest accrued and pending collection		601		744

Less: Allowances		383,809		324,756


		1,639,756		1,372,414


H. PREMISES AND EQUIPMENT:		998,641		929,760


I. OTHER ASSETS:		1,364,826		1,187,961


J. INTANGIBLE ASSETS:
Organization and development expenses		176,176		144,672


		176,176		144,672


K. SUSPENSE ITEMS:		6,061		8,563


L. OTHER SUBSIDIARIES’ ASSETS (Note 7.d):		--,--		450


TOTAL ASSETS:		87,571,100		74,288,906

LOGO

- 49 -

(Contd.)

CONSOLIDATED BALANCE SHEETS AS OF

JUNE 30, 2015 AND DECEMBER 31, 2014

(Art. 33 of Law Nr. 19,550)

(Translation of financial statements originally issued in Spanish - See note 21 to the stand-alone Financial Statements)

-Stated in thousands of pesos-


LIABILITIES:	06-30-2015		12-31-2014

M. DEPOSITS:
Government sector		1,590,906		1,017,837
Financial sector		77,168		77,482
Non financial private sector and residents abroad		58,347,529		50,347,558


Checking accounts		15,429,188		14,614,559
Savings deposits		17,578,703		14,995,902
Time deposits		23,646,972		19,303,430
Investments accounts		14,959		483
Other		1,328,884		1,129,571
Interest and listed-price differences accrued payable		348,823		303,613


		60,015,603		51,442,877


N. OTHER LIABILITIES FROM FINANCIAL TRANSACTIONS:
Argentine Central Bank		61,437		73,110


Other		61,437		73,110

Banks and International Institutions		361,145		406,031
Unsubordinated corporate bonds		1,750,633		1,868,434
Amounts payable for spot and forward purchases to be settled		2,405,053		312,751
Instruments to be delivered for spot and forward sales to be settled		2,517,799		1,457,098
Financing received from Argentine financial institutions		383,399		124,424


Interfinancial (call borrowed)		260,900		49
Other financings from local financial institutions		122,382		124,375
Interest accrued payable		117		--,--
Non-deliverable forward transactions balances to be settled		130		408
Other (Note 7.e)		4,099,313		4,278,335
Interest and listed–price differences accrued payable		93,905		96,942


		11,672,814		8,617,533


O. OTHER LIABILITIES:
Dividends payable		473,991		--,--
Fees payable		794		122
Other (Note 7.f)		2,633,001		2,771,721


		3,107,786		2,771,843


P. ALLOWANCES:		949,493		818,092


Q. SUSPENSE ITEMS:		27,113		30,290


R. OTHER SUBSIDIARIES’ LIABILITIES (Note 7.g):		--,--		337


TOTAL LIABILITIES:		75,772,809		63,680,972


S. MINORITY INTEREST IN SUBSIDIARIES (Note 4):		268,259		276,058


STOCKHOLDERS’ EQUITY:		11,530,032		10,331,876


TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY:		87,571,100		74,288,906

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- 50 -

MEMORANDUM ACCOUNTS

(Translation of financial statements originally issued in Spanish - See note 21 to the stand-alone Financial Statements)

- Stated in thousands of pesos -


	06-30-2015		12-31-2014
DEBIT ACCOUNTS

Contingent
– Guaranties received		18,030,936		13,726,776
– Contra contingent debit accounts		2,260,274		1,750,341


		20,291,210		15,477,117


Control
– Receivables classified as irrecoverable		670,293		539,719
– Other (Note 7.h)		146,734,660		120,436,826
– Contra control debit accounts		1,619,053		1,363,258


		149,024,006		122,339,803


Derivatives
– “Notional” amount of non-deliverable forward transactions		2,140,619		2,984,388
– Interest rate swap		697,656		1,003,244
– Contra debit derivatives accounts		2,631,574		2,915,793


		5,469,849		6,903,425


For trustee activities
– Funds in trust		--,--		6,605


		--,--		6,605


TOTAL		174,785,065		144,726,950


CREDIT ACCOUNTS

Contingent
– Credit lines granted (unused portion) covered by debtor classification regulations (Exhibit 1)		1,015,985		640,198
– Guaranties provided to the BCRA		194,413		223,973
– Other guaranties given covered by debtor classification regulations (Exhibit 1)		446,080		384,982
– Other guaranties given non covered by debtor classification regulations		210,876		210,453
– Other covered by debtor classification regulations (Exhibit 1)		392,920		290,735
– Contra contingent credit accounts		18,030,936		13,726,776


		20,291,210		15,477,117


Control
– Items to be credited		1,339,632		965,725
– Other		279,421		397,533
– Contra control credit accounts		147,404,953		120,976,545


		149,024,006		122,339,803


Derivatives
– “Notional” amount of non-deliverable forward transactions		2,631,574		2,915,793
– Contra credit derivatives accounts		2,838,275		3,987,632


		5,469,849		6,903,425


For trustee activities
– Contra credit accounts for trustee activities		--,--		6,605


		--,--		6,605


TOTAL		174,785,065		144,726,950

The accompanying notes 1 through to 7 to the consolidated financial statements with subsidiaries and the Exhibit 1 are an integral part of these statements, which in turn are part of the stand-alone Financial Statements of BBVA Banco Francés S.A. and are to be read in conjunction therewith.

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CONSOLIDATED STATEMENTS OF INCOME

FOR THE SIX MONTH PERIODS ENDED JUNE 30, 2015 AND 2014

(Art. 33 of Law Nr. 19,550)

(Translation of financial statements originally issued in Spanish - See note 21 to the stand-alone Financial Statements)

- Stated in thousands of pesos -


	06-30-2015		06-30-2014
A. FINANCIAL INCOME

Interest on loans to the financial sector		137,450		191,373
Interest on overdraft		980,104		993,712
Interest on discounted instruments		626,084		589,557
Interest on real estate mortgage		141,885		109,602
Interest on collateral loans		445,563		385,949
Interest on credit card loans		1,326,418		879,363
Interest on other loans		1,530,945		1,317,025
Interest from other receivables from financial transactions		108		3,770
Interest on financial leases		193,364		160,020
Income from secured loans - Decree 1387/01		7,509		8,988
Net income from government and private securities		1,529,187		735,273
Indexation by CER		97,529		193,151
Gold and foreign currency exchange difference		227,651		650,461
Other		158,943		553,194


		7,402,740		6,771,438


B. FINANCIAL EXPENSE

Interest on savings deposits		9,692		9,243
Interest on time deposits		2,264,591		2,141,823
Interest on interfinancial financing (call borrowed)		9,667		11,108
Interest on other financing from financial institutions		15,451		46,865
Interest on other liabilities from financial transactions		238,614		210,733
Other interest		3,259		4,304
Indexation by CER		27		119
Contribution to the deposit guaranty fund		182,700		38,556
Other		419,779		421,296


		3,143,780		2,884,047


GROSS INTERMEDIATION MARGIN – GAIN		4,258,960		3,887,391


C. ALLOWANCES FOR LOAN LOSSES		324,275		270,473


D. SERVICE CHARGE INCOME

Related to lending transactions		1,187,213		918,314
Related to liability transactions		908,168		693,170
Other commissions		135,057		83,479
Other (Note 7.i)		536,822		432,482


		2,767,260		2,127,445


E. SERVICE CHARGE EXPENSE

Commissions		731,907		373,497
Other (Note 7.j)		274,295		211,297


		1,006,202		584,794

LOGO

- 52 -

(Contd.)

CONSOLIDATED STATEMENTS OF INCOME

FOR THE SIX MONTH PERIODS ENDED JUNE 30, 2015 AND 2014

(Art. 33 of Law Nr. 19,550)

(Translation of financial statements originally issued in Spanish - See note 21 to the stand-alone Financial Statements)

- Stated in thousands of pesos -


	06-30-2015		06-30-2014
F. ADMINISTRATIVE EXPENSES

Payroll expenses		1,767,910		1,436,151
Fees to Bank Directors and Supervisory Committee		2,988		2,705
Other professional fees		42,600		33,701
Advertising and publicity		105,195		102,931
Taxes		311,202		227,116
Fixed assets depreciation		101,238		62,459
Organizational expenses amortization		30,705		27,542
Other operating expenses		424,295		361,772
Other		271,264		293,701


		3,057,397		2,548,078


NET GAIN FROM FINANCIAL TRANSACTIONS		2,638,346		2,611,491


RESULTS OF MINORITY INTEREST IN SUBSIDIARIES		(66,193)		(44,498)


G. OTHER INCOME

Income from long-term investments		82,030		75,798
Punitive interests		15,267		11,656
Loans recovered and reversals of allowances		65,801		68,504
Other (Note 7.k)		119,085		103,529


		282,183		259,487


H. OTHER EXPENSE

Punitive interests and charges paid to BCRA		4		12
Charge for uncollectibility of other receivables and other allowances		214,229		110,825
Amortization of difference arising from judicial resolutions		4,074		7,641
Depreciation and losses from miscellaneous assets		780		169
Other (Note 7.l)		91,385		42,345


		310,472		160,992


NET GAIN BEFORE INCOME TAX AND TAX ON MINIMUM PRESUMED INCOME		2,543,864		2,665,488


I. INCOME TAX AND TAX ON MINIMUM PRESUMED INCOME		945,708		904,319


NET INCOME FOR THE PERIOD		1,598,156		1,761,169

The accompanying notes 1 through 7 to the consolidated financial statements with subsidiaries and the Exhibit 1 are an integral part of these statements, which in turn are part of the stand-alone Financial Statements of BBVA Banco Francés S.A. and are to be read in conjunction therewith.

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CONSOLIDATED STATEMENTS OF CASH AND CASH EQUIVALENTS FLOW

FOR THE SIX MONTH PERIODS ENDED JUNE 30, 2015 AND 2014

(ART. 33 OF LAW Nr. 19,550)

(Translation of financial statements originally issued in Spanish - See note 21 to the stand-alone Financial Statements)

-Stated in thousands of pesos-


	06-30-2015			06-30-2014
CHANGES IN CASH AND CASH EQUIVALENTS

Cash and cash equivalents at the beginning of the fiscal year		12,951,964	(1)		13,603,620	(1)
Cash and cash equivalents at the end of the period		13,819,577	(1)		12,189,554	(1)


Net increase /(decrease) in cash and cash equivalents		867,613			(1,414,066)


REASONS FOR CHANGES IN CASH AND CASH EQUIVALENTS

Operating activities

Net payments from:
- Government and private securities		(1,047,495)			(5,857,571)
- Loans		(301,675)			4,072,003


to financial sector		(65,151)			328,283
to non-financial public sector		(156)			(477)
to non-financial private sector and residents abroad		(236,368)			3,744,197
- Other receivables from financial transactions		(126,249)			63,896
- Receivables from financial leases		(82,823)			(171,046)
- Deposits		5,664,536			1,630,159


to financial sector		(314)			(18,711)
to non-financial public sector		574,374			1,118,815
to non-financial private sector and residents abroad		5,090,476			530,055
- Other liabilities from financial transactions		(42,067)			553,721


Financing from financial or interfinancial sector (call borrowed)		260,851			55,015
Others (except liabilities included in Financing Activities)		(302,918)			498,706
Collections related to service charge income		2,780,921			2,093,942
Payments related to service charge expense		(1,010,148)			(583,409)
Administrative expenses paid		(2,960,671)			(2,503,072)
Organizational and development expenses paid		(26,362)			(10,642)
Net collections from punitive interest		13,985			10,513
Differences from judicial resolutions paid		(4,074)			(7,641)
Collections of dividends from other companies		18,654			20,070
Other collections /(payments) related to other income and expenses		171,449			199,604


Net cash flows provided by/(used in) operating activities		3,047,981			(489,473)


Investment activities
Net payments from premises and equipment		(115,420)			(82,943)
Net payments from other assets		(264,833)			(306,361)
Other payments from investment activities		(319,452)			(195,566)


Net cash flows used in investment activities		(699,705)			(584,870)



Financing activities

Net (payments) / collections from:
- Unsubordinated corporate bonds		(117,801)			270,888
- Argentine Central Bank		(11,569)			(9,759)


Other		(11,569)			(9,759)
- Banks and international agencies		(44,886)			315,146
- Financing received from local financial institutions		(1,993)			(183,643)
Other payments from financing activities		(1,304,414)			(732,355)


Net cash flows used in financing activities		(1,480,663)			(339,723)




Net increase /(decrease) in cash and cash equivalents		867,613			(1,414,066)

(1) See note 6 “Statement of cash and cash equivalents flow”.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

WITH SUBSIDIARIES AS OF JUNE 30, 2015, PRESENTED IN COMPARATIVE FORM WITH

THE BALANCE SHEET AS OF DECEMBER 31, 2014, AND THE STATEMENTS OF INCOME

AND CASH AND CASH EQUIVALENTS FLOW AS OF JUNE 30, 2014

(Art. 33 of Law Nr. 19,550)

(Translation of financial statements originally issued in Spanish - See note 21 to the stand-alone Financial Statements)

-Stated in thousands of pesos-

SIGNIFICANT ACCOUNTING POLICIES AND SUBSIDIARIES

General rule

In accordance with the procedures set forth in BCRA’s regulations and Technical Pronouncement Nr. 21 of the Argentine Federation of Professional Councils in Economic Sciences, BBVA Banco Francés S.A. (hereinafter indistinctly referred to as either “BBVA Francés” or the “Bank”) has consolidated - line by line – its balance sheets as of June 30, 2015 and the end of the previous fiscal year, and the statements of income and cash and cash equivalents flow for the six month periods ended June 30, 2015 and 2014, as per the following detail:

–

As of June 30, 2015:

With the financial statements of BBVA Francés Valores S.A., PSA Finance Argentina Cía. Financiera S.A. and BBVA Francés Asset Management S.A. Sociedad Gerente de Fondos Comunes de Inversión for the six month periods ended June 30, 2015 and 2014.

With the financial statements of Consolidar Administradora de Fondos de Jubilaciones y Pensiones S.A. (undergoing liquidation proceedings) for the fiscal years ended June 30, 2015 and 2014.

–

As of December 31, 2014:

With the financial statements of Consolidar Administradora de Fondos de Jubilaciones y Pensiones S.A. (undergoing liquidation proceedings) for the six month period ended December 31, 2014.

The results and cash and cash equivalents flow of Consolidar Administradora de Fondos de Jubilaciones y Pensiones S.A. (undergoing liquidation proceedings) have been adjusted for purposes of comparison of the fiscal years of companies consolidating on the basis of a six month period ended on June 30, 2015 and 2014.

Interests in subsidiaries as of June 30, 2015 and the end of the previous fiscal year are listed below:


	Shares					Interest percentage in
	Type	Quantity				Total Capital				Possible Votes
Companies		06-30-2015		12-31-2014		06-30-2015		12-31-2014		06-30-2015		12-31-2014

BBVA Francés Valores S.A.	Common		12,396		12,396		96.9953		96.9953		96.9953		96.9953
Consolidar A.F.J.P. S.A. (undergoing liquidation proceedings)	Common		35,425,947		35,425,947		53.8892		53.8892		53.8892		53.8892
PSA Finance Argentina Cía Financiera S.A.	Common		26,089		26,089		50.0000		50.0000		50.0000		50.0000
BBVA Francés Asset Management S.A. Sociedad Gerente de Fondos Comunes de Inversión (1)	Common		230,398		230,398		95.0000		95.0000		95.0000		95.0000

(1)

The Entity has a direct ownership interest equivalent to 95% of the Company’s capital stock and an indirect ownership interest equivalent to 4.8498% through BBVA Francés Valores S.A.

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Total assets, liabilities and stockholders’ equity in accordance with the criteria defined in note 2 below, as of June 30, 2015 and the end of the previous fiscal year and net income balances for the six month periods ended June 30, 2015 and 2014, are listed below:


	Assets				Liabilities				Stockholders’ Equity				Net income/ gain-(loss)
Companies	06-30-2015		12-31-2014		06-30-2015		12-31-2014		06-30-2015		12-31-2014		06-30-2015		06-30-2014

BBVA Francés Valores S.A.		36,475		36,176		1,071		10,187		35,404		25,989		9,415		3,903

Consolidar A.F.J.P. S.A. (undergoing liquidation proceedings)		50,189		50,012		41,246		41,493		8,943		8,519		424		(7,608)

PSA Finance Argentina Cía Financiera S.A.		2,185,316		2,304,138		1,659,654		1,761,827		525,662		542,311		131,334		95,663

BBVA Francés Asset Management S.A. Sociedad Gerente de Fondos Comunes de Inversión		173,940		158,905		13,542		29,982		160,398		128,923		31,475		38,028

VALUATION METHODS

The financial statements of the subsidiaries have been prepared based on similar methods to those applied by the Bank for preparing its own financial statements, in connection with assets and liabilities valuation, income measurement and restatement procedure as explained in note 2 to the stand-alone financial statements of the Bank. The following are the main differences with the Argentine professional accounting standards:

Arising from the application of the accounting standards laid down by BCRA and the Argentine professional accounting standards:

•

The commissions paid by PSA Finance Argentina Cía. Financiera S.A. to dealers for granting financing to companies and to the public in general in connection with purchases and sales of automobiles, which in accordance with the rules established by the BCRA are charged up front to the Income Statement, should be accrued throughout the duration of the loans generated by said dealers in accordance with Argentine professional accounting standards. Had this criterion been applied, shareholders’ equity would have been increased by 5,010 and 7,414 as of June 30, 2015 and the end of the previous fiscal year, respectively.

•

The Bank has not made disclosures required by Argentine professional accounting standards on discontinued operations or discontinuation in relation to the process of liquidating its subsidiary Consolidar A.F.J.P. S.A. (undergoing liquidation proceedings)

REFORM OF THE INTEGRATED RETIREMENT AND PENSION SYSTEM

Law Nr. 26,425- Dissolution and liquidation of Consolidar A.F.J.P. S.A.:

Law Nr. 26,425, which came into force on December 4, 2008, mandated that the capitalization system that used to be an integral part of the Integrated Retirement and Pension System was to be suppressed and replaced by a single pay-as-you-go system that is now known as the Argentine Integrated Social Security System (SIPA). As a consequence, Consolidar A.F.J.P. S.A. ceased to manage the funds held in the individual capitalization accounts opened by the members and beneficiaries of the Integrated Retirement and Pension System. Said funds were transferred to the Fund to Guarantee the Sustainability of the State-run Social Security System exactly as they had been invested and it is now the Argentine Social Security Authority (ANSES) the only and sole holder of said assets and funds.

Besides, on October 29, 2009, ANSES issued its Resolution Nr. 290/2009 whereby it granted a term of 30 working days to the pension fund managers that could be interested in re-converting their corporate purpose in order to manage the funds held as voluntary term deposits and as agreed-upon deposits in capitalization accounts for them to express their decision to do so.

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Given the above situation and the inability of Consolidar A.F.J.P. S.A. to attain the corporate purpose and conduct the business for which it had been formed, on December 28, 2009, its Extraordinary General Unanimous Shareholders’ Meeting adopted the resolution to dissolve and subsequently liquidate Consolidar A.F.J.P. S.A. effective as of December 31, 2009 on the understanding that such will be the best alternative to safeguard the interests of both the creditors and the shareholders of the Company. In addition, as set forth in the Argentine Companies Law, the Shareholders’ Meeting decided to appoint Accountant Mr. Gabriel Orden and Mr. Rubén Lamandia to act as liquidators of Consolidar A.F.J.P. S.A. As of December 31, 2009 these gentlemen have been designated as the Company’s legal representatives. As of the date of issuance of these financial statements, they are moving forward with all the actions necessary to proceed with the liquidation of Consolidar A.F.J.P. S.A.

On January 28, 2010, the dissolution of Consolidar A.F.J.P. S.A. as well as the list of designated liquidators were registered with the Supervisory Board of Companies (IGJ)

In addition, the Extraordinary General Shareholders’ Meeting of Consolidar A.F.J.P. S.A. approved a voluntary reduction in capital stock for 75,000 on October 19, 2009. In turn, the IGJ conferred its approval to the capital reduction mentioned on January 11, 2010. In this respect, on January 19, 2010 the shareholders were transferred their capital contributions in conformity with the above-mentioned reduction.

BBVA Francés, in its capacity as shareholder requested that Consolidar A.F.J.P. S.A. (undergoing liquidation proceedings) should file a note with the Argentine Ministry of Economy and Public Finance and with the Argentine Social Security Authority to commence discussions within the framework of Law Nr. 26,425 in order to identify one or more resolution alternatives in connection with the consequences resulting from the events caused by the enactment of that Law. This note was filed by Consolidar A.F.J.P. S.A. (undergoing liquidation proceedings) on June 11, 2010.

On December 7, 2010, Consolidar A.F.J.P. S.A. (undergoing liquidation proceedings) filed an action for damages against the National State and the Ministry of Labor, Employment and Social Security with the court of original Federal Jurisdiction over Contentious Administrative Matters Nr. 4, Clerk of Court’s Office Nr. 7, case file Nr. 40,437/2010. The complaint was ratified by BBVA Francés in its capacity as majority shareholder in that Company. On July 15, 2011, Consolidar A.F.J.P. S.A. (undergoing liquidation proceedings) and BBVA Francés filed with the same court an enhanced complaint for determining the amounts claimed as damages. On March 9, 2012, the Court ordered the service of process on the National State. On November 23, 2012, the Court handed down a resolution demanding the production of evidence within a term of forty days. On May 13, 2013, the Court hearing in the case ordered that evidence be produced. The Company is providing depositions, documentary evidence and expert witnesses’ reports. On May 28, 2013, the Company accompanied the statements and the testimony of witnesses, as the case is currently at the evidence production stage.

MINORITY INTEREST IN SUBSIDIARIES

The breakdown of balances in the “Minority interest in subsidiaries” account is as follows:


	06-30-2015		12-31-2014
Consolidar Administradora de Fondos de Jubilaciones y Pensiones S.A. (undergoing liquidation proceedings)		4,124		3,928
BBVA Francés Valores S.A.		1,063		781
PSA Finance Argentina Cía Financiera S.A.		262,831		271,155
BBVA Francés Asset Management S.A. Sociedad Gerente de Fondos Comunes de Inversión		241		194


Total		268,259		276,058

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RESTRICTIONS ON ASSETS

BBVA Francés Valores S.A. holds two shares of Mercado de Valores de Buenos Aires S.A, booked in the amount of 17,600 and 10,300, respectively, as of June 30, 2015 and the end of the previous fiscal year. These shares have been pledged in favor of “CHUBB Argentina de Seguros S.A.” in security of the contract this insurance company executed with Mercado de Valores de Buenos Aires S.A. to cover the latter’s guaranteeing any noncompliance of the company with their obligations.

See note 7 to the stand-alone financial statements of the Bank.

STATEMENT OF CASH AND CASH EQUIVALENTS FLOW

The Statements of Cash and cash equivalents flow explains the changes in cash and cash equivalents. For such purpose, a detail is supplied of the items that the Bank considers to be cash and cash equivalents:


	06-30-15		12-31-2014		06-30-2014		12-31-2013
a) Cash and due from banks		13,646,577		12,559,464		11,486,925		12,880,744
b) Government securities		--,--		--,--		294,629		115,876
c) Loas to financial sectors, call granted maturity date less than three months as from the end of each period or fiscal year		173,000		392,500		408,000		607,000

CASH AND CASH EQUIVALENTS		13,819,577		12,951,964		12,189,554		13,603,620

BREAKDOWN OF MAIN ITEMS

The detail of the main items included in financial statements is as follows:


	06-30-2015		12-31-2014

a) GOVERNMENT AND PRIVATE SECURITIES

* Holdings at fair value

Secured Bonds due in 2020		1,186,287		1,183,905
Federal Government Bonds in Pesos Badlar + 200 bp due 2016		320,891		374,000
Federal Government Bonds in Pesos Badlar + 200 bp due 2017		292,571		279,178
Peso-denominated Discount governed by Argentine Law maturing in 2033		270,455		467,472
Argentine Bond of Saving towards economic development		192,283		152,447
Argentine Treasury Bonds 18 months maturing 09-30-16		99,000		--,--
Argentine Treasury Bonds maturing 05-09-16		77,603		--,--
Federal Government Bonds in US Dollars 1.75% due 2016		55,665		--,--
Secured Bonds due in 2018		44,520		74,875
Federal Government Bonds in US Dollars 7% due 2015		39,427		104,850
US Dollar-linked Argentine Government Bond at 2.40% maturing in 2018		25,137		66,080
Federal Government Bonds in US Dollars 8.75% due 2024		757		43,384
Federal Government Bonds in Pesos Badlar + 250 bp due 2019		--,--		42,679
Par Securities denominated in Pesos		--,--		38,319
Consolidation Bonds – sixth series		--,--		37,716
Other		24,192		77,568


Total		2,628,788		2,942,473

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	06-30-2015		12-31-2014

* Holdings booked at amortized cost

Other		164		164


Total		164		164



* Instruments issued by the BCRA

BCRA Bills (LEBAC)		11,513,524		8,630,056


Total		11,513,524		8,630,056



* Investments in listed private securities

FBA Ahorro Pesos Investment Fund		54,987		49,652
FBA Bonos Argentina Investment Fund		11,593		10,210
Other		1,316		1,135


Total		67,896		60,997


- Allowances		(201)		(201)


Total		14,210,171		11,633,489



b) INVESTMENTS IN OTHER COMPANIES – Other

In other companies - unlisted		55,634		44,460
In companies-supplementary activities		31,821		22,283


Total		87,455		66,743



c) OTHER RECEIVABLES – Other

Miscellaneous receivables		696,001		475,180
Guarantee deposits		479,121		377,029
Prepayments		340,960		279,381
Tax prepayments		307,771		281,535
Loans to personnel		174,641		181,975
Advances to personnel		15,329		93,065
Other		9,141		8,261


Total		2,022,964		1,696,426

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	06-30-2015		12-31-2014

d) OTHER SUBSIDIARIES’ ASSETS

Other related to pension fund management business		--,--		450


Total		--,--		450



e) OTHER LIABILITIES FROM FINANCIAL TRANSACTIONS - Other

Accounts payable for consumption		2,312,430		2,482,573
Other withholdings and collections at source		775,058		687,838
Collections and other operations for the account of third parties		437,971		419,185
Money orders payable		159,735		338,117
Fees collected in advance		112,030		121,831
Social security payment orders pending settlement		105,541		18,816
Pending Banelco debit transactions		52,585		73,651
Loans received from Fondo Tecnológico Argentina (FONTAR) and Banco de Inversión y Comercio Exterior (BICE)		52,262		32,488
Funds raised from third parties		16,213		18,941
Loans received from Interamerican Development Bank (IDB)		8,046		6,485
Accrued commissions payable		3,390		7,336
Other		64,052		71,074


Total		4,099,313		4,278,335



f) OTHER LIABILITIES – Other

Miscellaneous payables		798,458		697,722
Accrued taxes		787,488		1,093,119
Amounts collected in advance		536,523		434,830
Accrued salaries and payroll taxes		506,028		541,245
Other		4,504		4,805


Total		2,633,001		2,771,721



g) OTHER SUBSIDIARIES’ LIABILITIES

Other related pension fund management business		--,--		337


Total		--,--		337



h) MEMORANDUM ACCOUNTS – DEBIT – CONTROL – Other

Securities representative of investment in custody safekeeping on behalf of the Guarantee Fund for the Sustainability of the Pay-as-you-go System managed by the Argentine Republic		71,394,991		61,071,633
Items in safekeeping		68,856,773		53,730,674
Checks not yet credited		4,600,346		3,694,973
Checks drawn on the Bank pending clearing		753,770		564,348
Collections items		722,269		573,483
Cash in custody on behalf of the BCRA		--,--		287,347
Other		406,511		514,368


Total		146,734,660		120,436,826

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	06-30-2015		06-30-2014

i) SERVICE CHARGE INCOME - Other

Commissions for hiring of insurances		293,750		244,692
Rental of safe-deposit boxes		85,727		69,114
Commissions on debit and credit cards		42,126		23,000
Commissions for transportations of values		20,301		12,740
Commissions for loans and guaranties		17,315		23,221
Commissions for capital market transactions		13,782		6,561
Commissions for escrow		10,251		10,404
Commissions for salary payment		4,898		4,681
Commissions for trust management		1,009		888
Other		47,663		37,181


Total		536,822		432,482



j) SERVICE CHARGE EXPENSE - Other

Turn-over tax		190,208		152,308
Insurance paid on lease transactions		71,284		52,534
Other		12,803		6,455


Total		274,295		211,297



k) OTHER INCOME – Other

Deferred income tax (1)		39,900		2,600
Income from the Credit Card Guarantee Fund		26,714		32,352
Related parties expenses recovery		17,534		14,524
Interest on loans to personnel		14,603		15,483
Other		20,334		38,570


Total		119,085		103,529


(1) Offset with a charge for the same amount in “Charge for uncollectibility of other receivables and other allowances” account, under Other expense item.

l) OTHER EXPENSE – Other

Charges for administrative, disciplinary and criminal penalties (2)		48,817		--,--
Donations		7,593		6,138
Private health insurance for former employees		7,285		4,853
Insurance losses		4,679		5,255
Turn-over tax		4,491		6,681
Other		18,520		19,418


Total		91,385		42,345

(2) See note 6.1. to the stand-alone financial statements

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EXHIBIT 1

CONSOLIDATED CLASSIFICATION OF FINANCING FACILITIES BY

CATEGORIES AND GUARANTIES RECEIVED

AS OF JUNE 30, 2015 AND DECEMBER 31, 2014

(Translation of financial statements originally issued in Spanish - See note 21 to the stand-alone Financial Statements)

-Stated in thousands of pesos-


	06-30-2015		12-31-2014

COMMERCIAL PORTFOLIO

Normal performance		24,836,838		21,065,160


Preferred collaterals and counter guaranties “A”		1,564,329		1,215,074
Other collaterals and counter guaranties “B”		987,127		790,615
Without senior security or counter guaranties		22,285,382		19,059,471

With special follow-up		6,310		7,022

Under observation		6,310		7,022

Other collaterals and counter guaranties “B”		6,309		540
Without senior security or counter guaranties		1		6,482

Non-performing		1,015		5,048


Other collaterals and counter guaranties “B”		683		--,--
Without senior security or counter guaranties		332		5,048

With high risk of uncollectibility		17,065		--,--


Preferred collaterals and counter guaranties “A”		6,827		--,--
Other collaterals and counter guaranties “B”		592		--,--
Without senior security or counter guaranties		9,646		--,--

Uncollectible		5,501		27,508


Other collaterals and counter guaranties “B”		5,000		3,750
Without senior security or counter guaranties		501		23,758


Total		24,866,729		21,104,738

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EXHIBIT 1

(Contd.)

CONSOLIDATED CLASSIFICATION OF FINANCING FACILITIES BY

CATEGORIES AND GUARANTIES RECEIVED

AS OF JUNE 30, 2015 AND DECEMBER 31, 2014

(Translation of financial statements originally issued in Spanish - See note 21 to the stand-alone Financial Statements)

-Stated in thousands of pesos-


	06-30-2015		12-31-2014

CONSUMER AND HOUSING PORTFOLIO

Normal performance		26,912,690		24,380,887

Preferred collaterals and counter guaranties “A”		35,383		41,185
Other collaterals and counter guaranties “B”		3,953,078		3,926,860
Without senior security or counter guaranties		22,924,229		20,412,842

Low risk		242,223		273,475

Preferred collaterals and counter guaranties “A”		--,--		68
Other collaterals and counter guaranties “B”		58,438		71,350
Without senior security or counter guaranties		183,785		202,057

Medium risk		236,026		211,868

Other collaterals and counter guaranties “B”		17,795		24,017
Without senior security or counter guaranties		218,231		187,851

High risk		143,117		145,310

Other collaterals and counter guaranties “B”		31,676		29,952
Without senior security or counter guaranties		111,441		115,358

Uncollectible		41,400		43,657

Other collaterals and counter guaranties “B”		24,344		18,572
Without senior security or counter guaranties		17,056		25,085

Uncollectible, classified as such under regulatory requirements		148		136

Other collaterals and counter guaranties “B”		80		--,--
Without senior security or counter guaranties		68		136


Total		27,575,604		25,055,333


General Total (1)		52,442,333		46,160,071

(1) Items included: Loans (before allowances); Other receivables from financial transactions: Unlisted corporate bonds and Other receivables covered by debtor classification regulations; Receivables from financial leases (before allowances); Memorandum accounts – Credit – Contingent: Credit lines granted (unused portion) covered by debtor classification regulations, Other guaranties given covered by debtor classification regulations and Other covered by debtor classification regulations.

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INFORMATIVE SUMMARY OF ACTIVITY FOR THE SIX MONTH PERIOD

ENDED ON JUNE 30, 2015

(Consolidated amounts – Stated in thousand Pesos)

BBVA Francés has been working on a customer-centric business model and has been adding technology as a key element to deal with the transformation process that the financial sector is going through. Therefore, in order to provide its major portfolio of customers with the service that the Bank traditionally renders, the Bank has a broad distribution network: it is present throughout the country with a network that 282 customer service points, 251 of which are retail branches and 31 are devoted to small and medium enterprises and institutions. Corporate Banking is divided by industry sectors: Retail, Heavy Industries and Energy that provide personalized service to large companies. Besides, the Bank’s distribution network is further supplemented by 13 in-store banks, 2 points of sales, 691 ATMs and 796 self-service terminals. Besides, the Bank renewed its web page in order to afford more agility, ease and safety to the transactions made through digital channels.

Regarding the performance of the Bank in terms of activity, the Bank’s portfolio of loans to the private sector totaled 48,021,603 as of June 30, 2015, which points to a 24% growth rate in the last twelve months of the year and 9.1% in the quarter, indicative of a certain acceleration in the growth rate.

The increase has been mainly driven by the retail segment. The portfolio of credit cards experienced a 54.2% year-on-year increase and a 7.6% increase in the quarter whilst consumer loans grew though to a lesser extent. As concerns the commercial portfolio, it grew by 22.2% in the past year and 14.3% in the quarter.

It should be noted that as of June 30, 2015, the Entity satisfied in full the requirement to grant 100% of the credit facilities for productive investment (3,100,000) as required under Communication “A” 5681 of the Argentine Central Bank

As to portfolio quality, the Bank has been able to maintain the best risk indicators in the Argentine financial system even within an environment that has shown signs of deterioration. The portfolio quality ratio (Non-performing loans/Total loans) was 0.85% with a level of coverage (Total loan loss provisions/Non-performing loans) of 235.14% at the end of the period.

As of June 30, 2015, the portfolio of Government securities, net of repurchase agreements, totaled 2,584,627 and represented 3% of the Bank’s Total assets. Besides, the instruments issued by the Argentine Central Bank, net of repurchase agreements, totaled 11,552,922 as of that date and since they are short-term, they are used in order to allocate liquidity.

As to liabilities, total clients’ resources totaled 60,015,603, indicative of 24.9% growth in the last twelve months. By kind of product, in the same period, sight deposits grew by 39.3% and term deposits grew by 23.7%. Whilst total deposits in the quarter grew by 8.4% with sight balances increasing by 11.7% and term deposits increasing by 7%.

BBVA Francés maintains sufficient levels of liquidity and solvency. As of June 30, 2015, liquid assets (Cash and cash equivalents plus Government and Private securities) represented 46.4% of the Bank’s deposits. Besides, the capital ratio was at 16.6% of risk-weighted assets. The Bank surpassed capital minimum requirements by 5,889,038.

BBVA Francés has accumulated net income for the year ended on June 30, 2015 in the amount of 1,598,156. Income for the second quarter was, in turn, 667,210, which points to a 67.2% increase compared to the same quarter of 2014. When compared to the previous quarter, income shrank by 28.3%.

On a line to line analysis, the Financial income - net totaled 4,258,960 at the end of June, 2015, which points to 37.2% increase in comparison with the same quarter of the previous year, mainly due to an increase in the volume of intermediation with the private sector plus higher income from Government securities whilst there was a 13.6% decrease in the quarter due, above all, to the decrease in income experienced by the portfolio of Government securities.

Income from services – net totaled 1,761,058, remaining at a level similar to the same period of the previous fiscal year, whilst, compared to the first quarter, the decrease was 16.6%.

Administrative expenses, again, recorded a balance of 3,057,397 at the end of June 2015, growing by 10.9% compared to the same period of the prior year whilst in the course of the quarter there was a 7% decrease.

The personnel expenses registers the increase of salaries derived from the agreements with the working union and the increase of the staff, whilst overhead reflects the impact of the growth in the level of activity as well as in the level of prices.

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Outlook

In the course of 2015, BBVA Francés will continue to invest in the main strategic projects already underway reinforcing what is at stake and standing by the commitment assumed to customers and society at large in order to:

•

Be a leader in customer satisfaction

•

Lead by example in Digital Banking

•

Position BBVA as the most competitive and profitable franchise

In terms of quality, the challenge proposed for this year is to maintain a leadership position. To that end, the levers with the highest impact on customer recommendation have been identified and they serve as the basis for the quality plans that are being boosted.

As to digital transactionality, an aggressive plan for the development of infrastructure, both on-line and mobile, is being implemented in order to attain the objectives planned both in terms of digital customers and of those who operate through their mobile phones: the ratio of out-of-office transactions has been significant. As regards products acquired on line, the penetration of this channel continues to grow in investment products and insurance. In the second half of the year, progress will be made in the developments associated to the sale of credit cards and consumer loans.

The commercial strategy reinforces customer-centric actions and policies and keeps in place differential alliances such as the LAN kilometers program, the joint ventures with Rombo and Peugeot, the new agreement with Volkswagen and the sponsorship agreements with Boca and River, to name but a few, thanks to which the Bank has grown in terms of market share and core products.

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CONSOLIDATED BALANCE SHEET STRUCTURE COMPARED TO THE SAME PERIODS EN PRIOR FISCAL YEARS

(Stated in thousands of pesos)


	06-30-2015		06-30-2014		06-30-2013		06-30-2012		06-30-2011

Total Assets		87,571,100		68,366,053		49,308,628		39,592,599		33,042,764

Total Liabilities		75,772,809		59,271,631		43,433,980		35,053,001		29,720,241

Minority Interest in subsidiaries		268,259		205,873		143,097		99,970		75,253

Stockholders’ Equity		11,530,032		8,888,549		5,731,551		4,439,628		3,247,270

Total Liabilities + Minority Interest in subsidiaries + Stockholders’ Equity		87,571,100		68,366,053		49,308,628		39,592,599		33,042,764

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CONSOLIDATED STATEMENT OF INCOME STRUCTURE COMPARED TO THE SAME PERIODS IN PRIOR FISCAL YEARS

(Stated in thousands of pesos)


	06-30-2015		06-30-2014		06-30-2013		06-30-2012		06-30-2011

Financial income		4,258,960		3,887,391		2,066,838		1,701,900		1,031,793

Allowances for loan losses		(324,275)		(270,473)		(208,633)		(77,315)		(32,955)

Income from services		1,761,058		1,542,651		1,152,442		855,160		646,987

Administrative expenses		(3,057,397)		(2,548,078)		(1,861,877)		(1,419,060)		(1,095,678)


Net gain from financial transactions		2,638,346		2,611,491		1,148,770		1,060,685		550,147

Miscellaneous income and expenses – net		(28,289)		98,495		24,399		(7,877)		124,992

Results of minority interest in subsidiaries		(66,193)		(44,498)		(25,116)		(16,230)		(1,606)

Income tax		(945,708)		(904,319)		(548,438)		(465,207)		(281,047)


Net income for the period		1,598,156		1,761,169		599,615		571,371		392,486

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CONSOLIDATED CASH FLOWS STRUCTURE COMPARED TO THE SAME PERIODS IN PRIOR FISCAL YEARS

(Stated in thousands of pesos)


	06-30-2015		06-30-2014		06-30-2013		06-30-2012		06-30-2011

Net cash flow provided by / (used in) operating activities		3,047,981		(489,473)		699,341		633,174		5,378,421

Net cash flow used in investment activities		(699,705)		(584,870)		(419,763)		(359,235)		(191,841)

Net cash flow used in financing activities		(1,480,663)		(339,723)		(680,033)		(276,489)		(4,106,283)

Financial results and results from holdings of cash and cash equivalents (including interest)		--,--		--,--		54		--,--		1


Total cash provided / (used) during the period		867,613		(1,414,066)		(400,401)		(2,550)		1,080,298

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STATISTICAL RATIOS COMPARED TO THE SAME PERIODS IN PRIOR FISCAL YEARS

(year-over-year variations in balances)


	06-30-2015/14	06-30-2014/13	06-30-2013/12	06-30-2012/11	06-30-2011/10

Total Loans	23.98%	20.41%	32.68%	28.45%	40.64%

Total Deposits	24.90%	30.30%	22.72%	15.28%	29.72%

Net Income	(9.26%)	193.72%	4.94%	45.58%	8.11%

Stockholders’ Equity	29.72%	55.08%	29.10%	36.72%	16.74%

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RATIOS COMPARED TO THE SAME PERIODS IN PRIOR FISCAL YEARS


	06-30-2015	06-30-2014	06-30-2013	06-30-2012	06-30-2011

Solvency (1)	15.16%	14.94%	13.15%	12.63%	10.90%

Liquidity (2)	46.42%	45.20%	33.95%	40.48%	45.25%

Tied-up capital (3)	2.90%	2.64%	1.64%	1.74%	1.97%

Indebtedness (4)	6.60	6.69	7.60	7.92	9.18

(1) Total Shareholders’ equity/Liabilities (including minority interests in subsidiaries)

(2) Sum of Cash and cash equivalents and Government and Private securities/Deposits

(3) Sum of Premises and equipment, other assets and Intangible assets/Assets

(4) Total Liabilities (including minority interests in subsidiaries)/Shareholders’ equity

INDEPENDENT AUDITORS’ REVIEW REPORT

(Interim financial statements)

To the President and the Board of Directors of

BBVA BANCO FRANCÉS S.A.

Reconquista 199

City of Buenos Aires

Report on interim financial statements

1.	Identification of the interim financial statements subject to review

We have reviewed:

the accompanying interim financial statements of BBVA BANCO FRANCÉS S.A. (“BBVA Francés” or the “Bank”), which comprise the balance sheet as of June 30, 2015 and the statement of income, statement of changes in stockholders´ equity and cash and cash equivalents flow for the six-month period then ended and the supplemental information included in their notes 1 to 20, and the Exhibits “A” through “L”, “N” and “O”; and

the accompanying interim consolidated financial statements of BBVA Francés and its subsidiaries (listed in note 1 to the consolidated financial statements), which comprise the consolidated balance sheet as of June 30, 2015 and the consolidated statement of income and the consolidated cash and cash equivalents flow for the six-month period then ended, and the supplemental information included in their notes 1 to 7 and the Exhibit 1.

The figures and other information for the year ended December 31, 2014 and for the six-month period ended June 30, 2014 are an integral part of these interim financial statements and are intended to be read only in relation to those financial statements.

2.	Bank responsibility for the interim Financial Statements

The Bank is responsible for the preparation and fair presentation of such accompanying interim financial statements in conformity with accounting standards established by the Argentine Central Bank (B.C.R.A.) applicable to financial institutions, as well as responsible of internal control considered necessary to enable the presentation of financial statements free from material misstatement.

3.	Auditors’ Responsibility

Our responsibility is to issue a conclusion on the accompanying interim financial statements based on our review. We conducted our review in accordance with standards for review of interim financial statements for interim periods set forth in section IV of the Technical Pronouncement N° 37 of the Argentine Federation of Professional Councils in Economic Sciences and the “Minimum Standards applicable for External Audits” established by the Argentine Central Bank (B.C.R.A.) for the limited reviews of interim financial statements. Those standards require that we comply with ethical requirements.

A review of interim financial statements is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all

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significant matters that might be identified in an audit. Accordingly, we do not express an opinion on the financial position of the Bank as of June 30, 2015, on the results of its operations, the changes in its stockholders´ equity and its cash and cash equivalents flow for the six-month period then ended.

4.	Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial statements of BBVA Francés both stand alone and consolidated with its subsidiaries companies corresponding to the six-month period ended on June 30, 2015, are not presented in all material respects, in accordance with accounting standards established by B.C.R.A.

5.	Emphasis on certain issues disclosed in the financial statements

The interim stand-alone and consolidated financial statements referred to in paragraphs a) and b) of caption 1 of this report have been prepared by the Bank in accordance with the accounting standards established by the B.C.R.A., which differ from the Argentine professional accounting standards concerning the matters indicated in note 3 to the stand-alone financial statements and in note 2 to the consolidated financial statements. This issue does not modify the conclusion expressed in caption 4.

6.	English translation of statutory financial statements

This report and the financial statements referred to in caption 1 have been translated into English for the convenience of English-speaking readers. As further explained in note 21 to the accompanying stand-alone financial statements, the financial statements (both the stand-alone and the consolidated financial statements) are the English translation of those originally prepared by the Bank in Spanish and presented in accordance with the accounting standards of B.C.R.A. and except for the matters described in caption 5, with the Argentine professional accounting standards. The effects of the differences between the accounting standards of B.C.R.A. and the Argentine professional accounting standards, and the accounting principles generally accepted in the countries in which the financial statements are to be used have not been quantified. Accordingly, the accompanying financial statements are not intended to present the financial position, results of operations, stockholders’ equity or cash and cash equivalents flow in accordance with accounting principles generally accepted in the countries of users of the financial statements, other than Argentina.

City of Buenos Aires, August 10, 2015.

MARCELO BASTANTE

Partner

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.

SIGNATURES

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


	BBVA French Bank S.A.

Date: August 19, 2015	By:	/s/ Ignacio Sanz y Arcelus
		Name:	Ignacio Sanz y Arcelus
		Title:	Chief Financial Officer