Economic Environment

The renewed Statistic National Agency (Instituto Nacional de Estadistica y Censos (INDEC)) published a revised GDP series for the period from the first quarter of 2004 to the first quarter of 2016, which showed a slower rate of growth to that previously published, especially from 2007 onwards. For the period 2005-2014 years, the average annual growth rate fell from 5.1% in previous estimates to 3.9% in the revised series. The new data shows that GDP grew 2.4% in 2015, and 0.5% annually in the first quarter of 2016, but fell 0.7% with respect to the fourth quarter of 2015 in seasonally adjusted terms.

In June 2016, the INDEC resumed the publication of the inflation index (CPI). The geographical coverage of the index includes the Autonomous City of Buenos Aires and part of the metropolitan area. The INDEC published monthly inflation of 4.2% for May 2016 and 3.1% for June 2016. The report does not include the inflation rate of the historical series, only these monthly variations.

To compensate for the lack of CPI information until new figures are released by INDEC, we used as a reference the price index calculated by the Department of Statistics and Census, an agency under the Ministry of Finance of The Autonomous City of Buenos Aires (IPCABA). Such index increased by 15.5% during the second quarter of 2016 and by 47.1% year over year mainly reflecting the increase in utility rates and public transportation.

The national public sector fiscal balance recorded a primary deficit of AR$ 71.6 billion during the second

quarter of 2016, representing a 40.8% decrease compared with the deficit or AR$ 50.8 billion recorded during the same period of the previous year. These numbers do not include income from BCRA and ANSES (Argentine Institute of Social Security) revenues.

Primary public sector spending increased by 25.7% and public sector revenues showed an increase of 23.2% during the period.

Public debt interest payments increased by 86.5% during the period and considering income from rents of BCRA and ANSES, the total deficit reached AR$ 98.7 billion, representing a 56.8% increase compared with the same period of 2015.

In the second quarter of 2016 tax revenues increased by 26.6% year-over-year. Income tax increased by 6.6% and Value Added Tax increased by 41.4 % during the same period. Export duties fell by 7% during the second quarter of 2016 due to reduction of such tax rates beginning this year.

In the external sector, the accumulated trade surplus reached USD 870 million during the second quarter of 2016, 27.2% higher than the surplus recorded during the same period of 2015. During the quarter, the trade balance recorded total exports of USD 15.3 billion (representing a 6.4% decrease in comparison with the same period of 2015) and total imports by USD 14.5 billion (representing a 7.9% decrease in comparison to the same period of 2015).

In second quarter of 2016 the BCRA’s stock of international reserves increased by USD 936 million, reaching a total balance of USD 30.5 billion. During the quarter, the BCRA bought USD 2.3 billion in the foreign exchange market.

As of June 30, 2016, the BCRA maintains the bilateral currency swap agreement entered into with the People’s Bank of China. Further, since February 2016, the BCRA has added USD 5.0 billion from a repo transaction with private banks.

The Badlar interest rate for private banks increased by 277 b.p. in the second quarter of 2016, averaging 30.2% compared to the 27.4% average rate in the first quarter of 2016.

The stock of private sector loans in pesos increased in the second quarter of 2016 by 3.9% compared with the balance of first quarter of 2016, while private sector loans in dollars increased by 59.0%.

Total deposits in the financial system increased by 7.5% in the second quarter of 2016. In the same period, private sector deposits denominated in pesos increased by 7.5% and those denominated in dollars increased by 1.2%.

The Bank

BBVA Francés continues to strengthen its efforts in line with the BBVA Group’s global proposal: “to bring the age of opportunity to everyone.”

Regarding the development of digital banking, BBVA Francés has been highlighted as the leader bank in social networks (Facebook and Twitter), for its number of fans and followers, as well as the number of interactions.

Moreover, based on concepts such as global, innovation, digital banking, customer satisfaction and experience, the Bank launched a new platform for companies, with a fresher, safe and reliable design, which is adapted to clients’ needs and providing intuitive solutions, speeding up tasks and making it easier to use.

In commercial terms, BBVA Francés, continued to offer a high level of benefits to its clients, by sponsoring important shows and events. Furthermore, maintaining its alliance with LATAM, the Bank continued to promote the benefits of exchanging LATAM Pass kilometers for domestic and international flights, as well as for a broad catalogue of products.

In line with its strategy to be recognized as the soccer Bank, BBVA Francés continued inviting its clients, through the #futbolnonstop campaign, to participate in the draw for tickets to the best soccer events, even the chance of attending the 2016 Olympic Games.

In the Agro segment, the Bank continues to offer the Agro LATAM Pass program, offering insurance, car loans and zero-interest-rate loans, in specific operations with the BBVA Francés Agro credit card.

Regarding the development of the Social Responsibility Program during the period, BBVA Francés launched the “My First Enterprise” program, in alliance with Proydesa Foundation. The purpose is to provide financial knowledge to students who are in the last two levels of secondary school, through a project where they design their own business.

Moreover, with the aim of stimulating job placement and future professionals training, BBVA Francés also launched the College Internship Program 2016, which is open to students aged from 20 to 25 years old, who are in the first three years of careers related to the banking business, such as Economics, Business Administration, Accounting or Marketing.

In addition, the Bank launched the “Training for your first job” program, whose main purpose is not only to provide tools and knowledge to young people, but also seeks to incorporate a training values, professional ethics and personal development that enhance job placement opportunities.

BBVA Francés has been recognized one more time as the most attractive company of the “Banking and Finance” industry to work. The bank was ranked in the top 20 most attractive companies in the new edition of the Randstad Awards. Over eighth thousand people (students and employees) participated in the survey this year, to determine which of the largest 175 employers in the country (with 1,000 employees or more) they would most like to work for.

Presentation of Financial Information

BBVA Francés reached an accumulated net income of AR$ 2,128.3 million as of June 30, 2016. During the second quarter, the Bank registered a gain of AR$ 963.3 million, increasing by 44.4% compared with the same quarter of 2015, while decreasing by 17.3% compared to the previous quarter.

Net financial income grew by 69.4% compared with the second quarter of 2015, mainly due to higher gains derived from the public bonds portfolio as well as higher intermediation with the private sector. Net financial income increased 12.2% compared with the previous quarter, also based on higher income generated by the public bond portfolio and the private business.

Provisions for loan losses increased compared to the second quarter of 2015 due to the higher volume of lending and the deterioration of the loan portfolio.

During the second quarter of 2015, the Bank redefined the charges triggered by credit and debit card transactions, reclassifying them from administrative expenses to service charge expenses, in line with the standards applied in the industry.

Other/income expenses registered a loss of AR$ 27.5 million for the period ended June 30, 2016. During the prior quarter an administrative penalty applied to the Bank was revoked and, consequently, this charge was reversed.

Finally, the higher rate of income tax rate reflected in income tax is mainly due to the fiscal adjustment of provisions and the fiscal valuation of the Bogar 20, registered during the period under analysis.

Net Financial Income

Net financial income arising from the intermediation with the private sector increased by 19.7% compared with the second quarter of 2015 and 7.1% compared with the previous quarter.

Income from securities and short-term investments included non-recurring income originated by variations in the valuation of public securities. Such results totaled a gain of AR$ 288.9 million during the quarter under analysis, whereas losses of AR$ 204.8

million and AR$ 158.8 million, respectively were registered for the same quarter of 2015 and for the previous quarter.

Both, the line items “CER Adjustment” and “Foreign exchange difference” reflected important gains compared with the same quarter of 2015, mainly due to the depreciation of the Argentine peso in December 2015.

Income from Public and Private Securities

Public bond portfolio is valued at mark-to-market its total public bonds portfolio; consequently such income includes the unrealized losses/gains from variations in the valuations of the portfolio, or at amortized cost, accordingly.

The Central Bank bills and notes portfolio is also valued at mark-to-market or at amortized cost.

On the other hand, other fixed income securities are valued at cost plus the internal rate of returns (IRR).

Net Income from Services

Net income from services, not taking into account the previously mentioned reclassification, increased by 16.4% compared with the same quarter of 2015.

In the year-to-year comparison, growth was due mainly due to higher consumption with credit cards, higher fees generated by an increase in the stock of deposit accounts and those associated with insurances, as well as due to the fees generated by PSA Finance. Such growth was partially offset by an

increase in service charge expenses related to promotions associated with the LATAM Pass kilometers program.

In the quarterly comparison, the increase was based on higher fees for consumption with credit cards and for capital markets advisory work, which were partially offset by lower fees resulting from deposit accounts and higher charges paid for the LATAM Pass kilometers program.

Administrative Expenses

Homogenizing the scope of consolidation, which was redefined in 2015, annual variation of administrative expenses was 39.5%, while compared with the previous quarter the increase was 5.5%.

Personnel expenses increase in both, the annual and quarterly comparison, mainly reflecting salary increases and a higher number of employees.

General expenses, as adjusted, increased by 33.8% annually and by 3.5% during the quarter. The annual increase was mainly due to higher advertising and promotion charges related to commercial campaigns made by the Bank, as well as to higher electricity and communications charges due to tariff adjustment. In addition, other expenses grew in line with the general

increase in prices and the depreciation of the currency.

During the quarter, higher expenses in advertising and taxes were partially offset by lower maintenance expenses, registered in the “Others” line item.

As of June 30, 2016, the Bank had 5,985 employees, representing an increase of 6.4% compared with the second quarter of 2015. In addition. The branch office network totaled 301 offices, including 251 consumer branch offices and 34 branch offices specializing in SMEs and institutions. Corporate banking is divided by industries: consumption, heavy industries and oil and gas, providing personalized attention to large corporations. Complementing its distribution network, the Bank had 15 in-company branches, 1 point of sale outlet and 1 express point, 680 ATM’s and 794 self-service terminals (ATS).

Other Income / Expenses

Other income/expenses totaled a loss of AR$ 27.5 million during the second quarter of 2016. It is important to mention that during the previous quarter AR$ 39 million of provisions for other contingencies were reversed, as a consequence of the Resolution of the IV Chamber of the Court of Appeals which revoked the administrative penalty that had been imposed on the Bank.

Income from Equity Investments

Income from equity investments sets forth net income from related companies that are not consolidated. During the second quarter of 2016, a gain of AR$ 102.8 million was recorded, mainly due to the stake held by BBVA Francés in Rombo Compañía Financiera, jointly with the gains originated in the valuation of the stake held in Interbanking S.A. and Prisma S.A (strategic alliance between VISA Argentina and Banelco S.A )

Total Public Sector Exposure

Exposure to the public sector’s National Government increased by 62.3% compared with the second quarter of 2015 and by 6.7% compared with the previous quarter, mainly due to the purchases of national government bonds.

The Bank’s portfolio of BCRA bills and notes both showed an increase, during the period under analysis and in the last twelve months, in accordance to the liquidity policy implemented by the Bank.

On the other hand, private debt grew mainly due to the subscription of negotiable obligations.

As of June 30, 2016, the public sector’s National Government assets represented 3.3% of the Bank’s total assets. Total exposure to the BCRA’s bills and notes net of holdings linked to reverse repo transactions, represented 8.8% of the Bank’s total assets.

Total exposure to the public sector includes public debt of the National Government through public securities (bonds and bills from the treasury) and guaranteed loans, as well as the BCRA’s bills and notes.

Loan Portfolio

The private sector loan portfolio, net of allowance for loan losses, totaled AR$ 65.8 billion as of June 30,

2016, representing an increase of 40.1% and 11.3% compared to the second quarter of 2015 and to the previous quarter, respectively.

In the last twelve months, consumer loans increased by 33.5%. Such increase was mainly due to the outstanding performance of credit cards, which registered an increase of 45.6% during the period, while car loans and personal loans also registered increases of around 20%.

Commercial loans increased by 47.6% in the same period, mainly due to a higher portfolio of advances and foreign trade operations.

During the quarter, consumer loans grew 4.6%, whereas the commercial loan portfolio increased by 19.4% mainly due to higher loans to large corporations.

Asset Quality

As of June 30, 2016, the asset quality ratio (non-performing loans/total loans) was 0.85%, while the coverage ratio (provisions/non-performing loans) reached 247.83%.

The NPL ratio decreased compared with the first quarter of 2015 although it increased compared with the previous quarter, mainly as a result of higher non-performing loans as well as an increase in the performing portfolio.

The following table shows the evolution of provisions for loan losses, including charges relating to

transactions recorded under “Other receivables” from financial intermediation.

Deposits

Total deposits reached AR$ 92.8 billion as of June 30, 2016, representing an increase of 54.7% in the last twelve months and of 15.9% during the quarter.

During the last year, both sight accounts and time deposits registered significant growth, increasing 56.5%, and 52.4%, respectively.

It is worth mentioning that total peso-denominated deposits increased by 37.6% in the last twelve months.

Compared with the previous quarter, total deposits increased by 15.9%, driven by a 19.6% increase in sight accounts, while time deposits increased by 11.3%.

Foreign currency denominated deposits increased significantly compared with both the same quarter of 2015 and with the previous quarter. Foreign currency denominated deposits totaled AR$ 19.1 billion (equivalent to US$ 1.3 billion) as of June 30, 2016, representing 20.6% of the Bank’s total deposits.

Other Funding Sources

Other funding sources totaled AR$ 2.6 billion as of June 30, 2016, registering an increase of 2.8% in the last twelve months, and a decrease of 14% compared to the previous quarter in 2016.

In the last twelve months, negotiable obligations were issued by the Bank and by PSA Finance and certain series of bonds matured during the period.

Additionally, dollar funding increased during the period, mainly through funding lines aimed at financing exports.

Of the total senior bonds outstanding, AR$ 1.4 million corresponded to those issued by BBVA Francés and AR$ 157.7 million to PSA Finance.

Capitalization

As of June 30, 2016, the Bank’s total shareholders’ equity totaled AR$ 14.9 billion, while the excess over the BCRA minimum capital requirements was AR$ 6.8

billion or 80.6%. On the same date, the capital ratio reached 15.1% of assets adjusted to risk.

Additional Information

Conference Call

A conference call to discuss first quarter earnings will be held on Friday, August 12, 2016, at 11:00 am New York time – 12:00 pm Buenos Aires time. If you are interested in participating, please dial (888) 515 2235 within the U.S. or +1 (719) 325 2370 outside the U.S. at least 5 minutes prior to our scheduled conference time. Confirmation code: 6080290. This conference will be recorded. To ask for a digital replay, please dial (888) 203 1112 within U.S or +1 (719) 457 0820, using the same confirmation code. The replay will be available until September 12, 2016.

Internet

This press release is also available at BBVA Francés web site: www.bbvafrances.com.ar

Contacts

Cecilia Acuña

Investor Relations

(5411) 4341-5036

ceciliaviviana.acuna@bbva.com