o
|
REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
|
x
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Title of each class
|
Name of each exchange on which registered
|
American Depositary Shares, each representing the right to receive three ordinary shares, par value Ps.1.00 per share
|
New York Stock Exchange
|
Ordinary shares, par value Ps.1.00 per share
|
New York Stock Exchange*
|
*
|
The ordinary shares are not listed for trading, but are listed only in connection with the registration of the American Depositary Shares, pursuant to requirements of the New York Stock Exchange.
|
Title of class
|
Number of shares outstanding
|
Ordinary Shares, par value Ps.1.00 per share
|
536,877,850
|
U.S. GAAP o
|
International Financial Reporting Standards
by the International Accounting Standards o
Board as issued
|
Other x
|
|
Page
|
|
|
§
|
changes in general economic, business or political or other conditions in the Republic of Argentina (“Argentina”) or changes in general economic or business conditions in Latin America;
|
|
§
|
changes in capital markets in general that may affect policies or towards lending to Argentina or Argentine companies;
|
|
§
|
increased costs and decreased income related to macroeconomic variables such as exchange rates and the Consumer Price Index (“CPI”);
|
|
§
|
unanticipated increases in financing and other costs or the inability to obtain additional debt or equity financing on attractive terms; and
|
|
§
|
the factors discussed under “Item 3. Key Information—D. Risk Factors”.
|
|
December 31,
|
|||||||||||
Entity
|
2013
|
2012
|
2011
|
|||||||||
PSA Finance Argentina Compañía Financiera S.A.
|
X | X | X | |||||||||
Consolidar AFJP S.A. (undergoing liquidation proceedings)
|
X | X | X | |||||||||
BBVA Francés Valores Sociedad de Bolsa S.A.
|
X | X | X | |||||||||
BBVA Francés Asset Management S.A. Sociedad Gerente de Fondos Comunes de Inversión
|
X | X | X |
A.
|
Selected Financial Data
|
For the fiscal year ended December 31,
|
||||||||||||||||||||
2013
|
2012
|
2011(11) | 2010 | 2009 | ||||||||||||||||
(in thousands of pesos) (1)
|
||||||||||||||||||||
CONSOLIDATED INCOME STATEMENT
|
||||||||||||||||||||
Amounts in accordance with Argentine Banking GAAP
|
||||||||||||||||||||
Financial income
|
8,235,279 | 5,705,193 | 3,565,030 | 3,298,259 | 3,039,470 | |||||||||||||||
Financial expenses
|
(3,256,852 | ) | (2,061,131 | ) | (1,355,698 | ) | (814,673 | ) | (975,431 | ) | ||||||||||
Gross intermediation margin
|
4,978,427 | 3,644,062 | 2,209,332 | 2,483,586 | 2,064,039 | |||||||||||||||
Provision for loan losses
|
(453,264 | ) | (256,259 | ) | (132,663 | ) | (179,353 | ) | (245,966 | ) | ||||||||||
Service charge income
|
3,453,850 | 2,530,197 | 1,957,724 | 1,485,442 | 1,204,703 | |||||||||||||||
Service charge expenses
|
(955,329 | ) | (683,730 | ) | (519,630 | ) | (406,347 | ) | (279,691 | ) | ||||||||||
Operating expenses
|
(3,881,972 | ) | (3,039,731 | ) | (2,279,500 | ) | (1,969,461 | ) | (1,562,326 | ) | ||||||||||
Net other income / (expenses)
|
58,664 | (26,400 | ) | 254,845 | 38,867 | (44,063 | ) | |||||||||||||
Income before income tax
|
3,200,376 | 2,168,139 | 1,490,108 | 1,452,734 | 1,136,696 | |||||||||||||||
Income tax
|
(1,120,418 | ) | (864,625 | ) | (549,992 | ) | (272,923 | ) | (362,439 | ) | ||||||||||
Net income
|
2,079,958 | 1,303,514 | 940,116 | 1,179,811 | 774,257 | |||||||||||||||
Net (loss) / income on minority interests in subsidiaries
|
(55,013 | ) | (37,874 | ) | 6,783 | (16,538 | ) | (17,851 | ) | |||||||||||
Final consolidated income from continued operations
|
2,024,945 | 1,265,640 | 946,899 | 1,163,273 | 756,406 | |||||||||||||||
Final consolidated (loss) / income from discontinued operations
|
(701 | ) | (1,961 | ) | 58,678 | 34,906 | (37,944 | ) | ||||||||||||
Final consolidated income
|
2,024,244 | 1,263,679 | 1,005,577 | 1,198,179 | 718,462 | |||||||||||||||
Net operating revenue (3)
|
7,476,948 | 5,490,529 | 3,647,426 | 3,562,681 | 2,989,051 | |||||||||||||||
Net operating income (4)
|
3,141,712 | 2,194,539 | 1,235,263 | 1,413,867 | 1,180,759 | |||||||||||||||
Net income per ordinary shares from continued operations (2) (9)
|
3.77 | 2.36 | 1.76 | 2.17 | 1.55 | |||||||||||||||
Net income per ADS from continued operations (2) (9)
|
11.31 | 7.08 | 5.28 | 6.51 | 4.65 | |||||||||||||||
Net income per ordinary shares (2) (9)
|
3.77 | 2.35 | 1.87 | 2.23 | 1.47 | |||||||||||||||
Net income per ADS (2) (9)
|
11.31 | 7.05 | 5.61 | 6.69 | 4.41 | |||||||||||||||
Declared dividends per ordinary share (9) (10)
|
0.05364 | — | — | 1.49899 | 0.98439 | |||||||||||||||
Declared dividends per ADS (9) (10)
|
0.16092 | — | — | 4.49697 | 2.95317 | |||||||||||||||
Net operating income per ordinary shares (2) (9)
|
5.85 | 4.09 | 2.30 | 2.64 | 2.42 | |||||||||||||||
Net operating income per ADS (2) (9)
|
17.55 | 12.27 | 6.90 | 7.92 | 7.26 | |||||||||||||||
Average ordinary shares outstanding (000s) primary (9)
|
536,878 | 536,878 | 536,620 | 536,361 | 487,611 | |||||||||||||||
Amounts in accordance with U.S. GAAP:
|
||||||||||||||||||||
Net income
|
2,178,544 | 1,541,104 | 698,807 | 804,101 | 1,029,755 | |||||||||||||||
Net income per ordinary share (2) (9)
|
4.06 | 2.87 | 1.30 | 1.50 | 2.11 | |||||||||||||||
Net income per ADS (2) (9)
|
12.18 | 8.61 | 3.90 | 4.50 | 6.33 | |||||||||||||||
Average ordinary shares outstanding (000s) primary (9)
|
536,878 | 536,878 | 536,620 | 536,361 | 487,611 | |||||||||||||||
CONSOLIDATED BALANCE SHEET
|
||||||||||||||||||||
Amounts in accordance with Argentine Banking GAAP
|
||||||||||||||||||||
Cash and due from banks
|
12,881,781 | 8,614,889 | 6,353,428 | 5,691,806 | 5,255,412 | |||||||||||||||
Government and private securities
|
3,459,935 | 4,101,846 | 5,565,029 | 7,495,382 | 7,214,232 | |||||||||||||||
Loans, net of allowances
|
36,468,194 | 28,493,431 | 22,697,031 | 16,699,852 | 11,751,889 | |||||||||||||||
Other assets
|
5,713,714 | 3,574,413 | 4,390,157 | 2,693,206 | 2,170,060 | |||||||||||||||
Total assets
|
58,523,624 | 44,784,579 | 39,005,645 | 32,580,246 | 26,391,593 | |||||||||||||||
Deposits
|
43,759,465 | 34,165,053 | 29,165,704 | 22,461,307 | 18,334,845 | |||||||||||||||
Other liabilities and minority interest in subsidiaries
|
7,607,979 | 5,487,590 | 5,971,684 | 6,372,024 | 5,130,276 | |||||||||||||||
Total liabilities and minority interest in subsidiaries
|
51,367,444 | 39,652,643 | 35,137,388 | 28,833,331 | 23,465,121 | |||||||||||||||
Capital stock
|
536,878 | 536,878 | 536,878 | 536,361 | 536,361 | |||||||||||||||
Issuance premiums
|
182,511 | 182,511 | 182,511 | 175,132 | 175,132 | |||||||||||||||
Adjustments to stockholders’ equity
|
312,979 | 312,979 | 312,979 | 312,979 | 312,979 | |||||||||||||||
Retained earnings
|
4,099,568 | 2,835,889 | 1,042,021 | 802,385 | 658,693 | |||||||||||||||
Unrealized valuation difference
|
— | — | — | 88,131 | (14,133 | ) | ||||||||||||||
Unappropriated earnings
|
2,024,244 | 1,263,679 | 1,793,868 | 1,831,927 | 1,257,440 | |||||||||||||||
Total stockholders’ equity
|
7,156,180 | 5,131,936 | 3,868,257 | 3,746,915 | 2,926,472 |
For the fiscal year ended December 31, | ||||||||||||||||||||
2013
|
2012
|
2011(11) | 2010 | 2009 | ||||||||||||||||
(in thousands of pesos) (1) | ||||||||||||||||||||
Amounts in accordance with U.S. GAAP
|
||||||||||||||||||||
Total assets
|
61,316,755 | 47,552,013 | 40,367,604 | 33,448,725 | 27,760,274 | |||||||||||||||
Total stockholders’ equity
|
7,615,291 | 5,535,611 | 4,003,440 | 4,500,072 | 3,696,499 | |||||||||||||||
SELECTED RATIOS IN ACCORDANCE WITH ARGENTINE BANKING GAAP
|
||||||||||||||||||||
Profitability and Performance
|
||||||||||||||||||||
Return on average total assets (5)
|
3.92 | % | 3.27 | % | 2.65 | % | 3.95 | % | 2.90 | % | ||||||||||
Return on average stockholders’ equity (6)
|
32.96 | % | 28.51 | % | 24.87 | % | 34.86 | % | 30.24 | % | ||||||||||
Services charge income as a percentage of operating expenses
|
88.97 | % | 83.24 | % | 85.88 | % | 75.42 | % | 77.11 | % | ||||||||||
Operating expenses as a percentage of average total assets (7)
|
7.52 | % | 7.86 | % | 6.37 | % | 6.68 | % | 5.98 | % | ||||||||||
Capital
|
||||||||||||||||||||
Stockholders’ equity as a percentage of total assets
|
12.23 | % | 11.46 | % | 9.92 | % | 11.50 | % | 11.09 | % | ||||||||||
Total liabilities as a multiple of stockholders’ equity
|
7.18 | x | 7.73 | x | 9.08 | x | 7.70 | x | 8.02 | x | ||||||||||
Credit Quality
|
||||||||||||||||||||
Allowances for doubtful loans as a percentage of total loans
|
1.94 | % | 1.81 | % | 1.91 | % | 2.32 | % | 2.79 | % | ||||||||||
Non-performing loans as a percentage of gross loans (8)
|
0.76 | % | 0.65 | % | 0.45 | % | 0.47 | % | 1.00 | % | ||||||||||
Allowances for doubtful loans as a percentage of non-performing loans (8)
|
254.16 | % | 278.79 | % | 422.14 | % | 492.96 | % | 277.93 | % |
(1)
|
Except net income per-ordinary share and net income per-ADS data and financial ratios.
|
(2)
|
Assumes average ordinary shares outstanding in each period. The cash dividend amounts do not reflect any deduction for certain charges that are taken with regards to the “American Depositary Receipts”.
|
(3)
|
Includes: financial income, financial expenses, service charge income and service charge expenses.
|
(4)
|
Includes: financial income, financial expenses, provision for loan losses, services charge income, service charge expenses and operating expenses.
|
(5)
|
Net income as a percentage of average total assets, computed as the average of fiscal-year-beginning and fiscal-year-ending balances.
|
(6)
|
Net income as a percentage of average stockholders’ equity, computed as the average of fiscal-year-beginning and fiscal-year-ending balances.
|
(7)
|
Operating expenses as a percentage of average total assets, computed as the average of fiscal-year-beginning and fiscal-year-ending balances.
|
(8)
|
Non-performing loans include all loans to borrowers classified as “Problem”, “Medium Risk”, “High Risk of Insolvency”, “High Risk”, “Irrecoverable” and “Irrecoverable for Technical Decision” according to the Central Bank’s loan classification system as well as all loans contractually past due 90 days or more. See “Item 4. Information on the Company—Selected Statistical Information—Allowance for Loan Losses and Loan Loss Experience”.
|
(9)
|
The average ordinary shares outstanding was computed as the average of the previous twelve months.
|
(10)
|
For the fiscal years ended December 31, 2013, the dividends in cash authorized at the Ordinary and Extraordinary Shareholders’ Meeting on April 10, 2014 were Ps.28.8 million (see Note 14.b) to the Consolidated Financial Statements). For the fiscal years ended December 31, 2012 and 2011, the Bank decided not to declare and distribute dividends as result of the issuance of Communications “A” 5272 and 5273 of the Central Bank (see “Item 8. Financial Information—Dividends”). For the fiscal years ended December 31, 2010 and 2009, the dividends were paid totally in cash.
|
(11)
|
See Note 3.3. to our Consolidated Financial Statements.
|
Declared Dividends
Per Ordinary Share (6)
|
Declared Dividends
Per ADS (6)
|
|||||||||||||||
Ps.(1)
|
US$
|
Ps.(1)
|
US$
|
|||||||||||||
December 31, 2013 (2) (5)
|
0.05364 | 0.00670 | 0.16092 | 0.02011 | ||||||||||||
December 31, 2012 (2)
|
— | — | — | — | ||||||||||||
December 31, 2011 (2)
|
— | — | — | — | ||||||||||||
December 31, 2010 (2) (4)
|
1.49899 | 0.36994 | 4.49697 | 1.10981 | ||||||||||||
December 31, 2009 (2) (3)
|
0.89492 | 0.23054 | 2.68476 | 0.69163 |
|
(1)
|
Historical values.
|
|
(2)
|
On April 2002, the Central Bank suspended the payment of dividends by Argentine financial institutions. Since June 2, 2004 the Central Bank makes some exceptions to the suspension of profits distributions and may pre-authorize dividend payments under certain conditions. See “Item 8. Financial Information—Dividends”.
|
|
(3)
|
Based upon the reference exchange rate quoted by Central Bank at April 29, 2010.
|
|
(4)
|
Based upon the reference exchange rate quoted by Central Bank at March 31, 2011.
|
|
(5)
|
Based upon the reference exchange rate quoted by Central Bank at April 7, 2014.
|
|
(6)
|
For the fiscal year ended December 31, 2013, the dividends in cash authorized at the Ordinary and Extraordinary Shareholders’ Meeting on April 10, 2014 were Ps.28.8 million (see Note 14.b) to the Consolidated Financial Statements). For the fiscal years ended December 31, 2012 and 2011, the Bank decided not to declare and distribute dividends as result of the issuance of Communications “A” 5272 and 5273 of the Central Bank (see “Item 8. Financial Information—Dividends”). For the fiscal years ended December 31, 2010 and 2009 the dividends were paid totally in cash. For the fiscal year ended December 31, 2013 the number of outstanding shares were 536,877,850. For the fiscal years ended December 31, 2010 and 2009 the number of outstanding shares were 536,361,306, respectively. Declared dividends per ordinary share are calculated taking into account dividends paid over the outstanding shares at the end of each fiscal year.
|
High (1)
|
Low (1)
|
Average (2)
|
||||||||||
Year /Period
|
(in pesos per US$1.00)
|
|||||||||||
March 2014
|
8.0098 | 7.8657 | 7.9313 | |||||||||
February 2014
|
8.0178 | 7.7635 | 7.8565 | |||||||||
January 2014
|
8.0225 | 6.5430 | 7.0967 | |||||||||
2013
|
6.5180 | 4.9228 | 5.4789 | |||||||||
December 2013
|
6.5180 | 6.1547 | 6.3192 | |||||||||
November 2013
|
6.1360 | 5.9215 | 6.0149 | |||||||||
October 2013
|
5.9108 | 5.7995 | 5.8482 | |||||||||
2012
|
4.9173 | 3.9715 | 4.5502 | |||||||||
2011
|
4.3035 | 3.9715 | 4.1302 | |||||||||
2010
|
3.9857 | 3.7942 | 3.9127 | |||||||||
2009
|
3.8545 | 3.4497 | 3.7301 |
|
(1)
|
Source: BCRA.
|
|
(2)
|
The average of monthly average rates during the period.
|
December 31,
|
||||||||||||||||||||
2013
|
2012
|
2011
|
2010
|
2009
|
||||||||||||||||
Devaluation Rate
|
32.55 | % | 14.27 | % | 8.23 | % | 4.72 | % | 9.93 | % | ||||||||||
Exchange Rate
|
6.5180 | 4.9173 | 4.3032 | 3.9758 | 3.7967 | |||||||||||||||
Inflation Rate (1)
|
14.76 | % | 13.13 | % | 12.67 | % | 14.56 | % | 10.26 | % |
|
(1)
|
The inflation rate presented is the general WPI published by the INDEC.
|
B.
|
Capitalization and indebtedness
|
C.
|
Reasons for the offer and use of proceeds
|
D.
|
Risk Factors
|
|
§
|
contracts with privatized public utilities have yet to be revised and rates for residential consumers have increased well below headline inflation. Energy and gas companies have remained in operation through subsidies from the public sector but investment in the sector has been low, leading to energy shortages in high demand periods, negatively affecting economic growth;
|
|
§
|
accelerating inflation affecting competiveness and economic growth;
|
|
§
|
availability of long-term fixed interest rate loans;
|
|
§
|
high commodity prices have had a favorable impact on economic activities in recent years, but are very volatile and out of the Government’s scope of control;
|
|
§
|
measures implemented by the Government to control imports could lead to the imposition of barriers to Argentine exports by trading parties, negatively impacting on the domestic economic activity;
|
|
§
|
the Government has issued several measures restricting the access to the purchase of foreign currency which have had a negative effect, mainly on foreign investments, and the real estate market, failing as well to contain the loss of the Central Bank´s dollar reserves.
|
|
§
|
a significant intervention by the Government in the private sector, including through the expropriation of YPF, the country’s largest oil and gas company. Repsol, the majority shareholder of YPF, and the Argentine Republic have reached an agreement regarding the compensation amount for such expropriation. This agreement has been submitted to Congress for its approval.
|
§
|
Consolidar AFJP S.A.
|
As of December 31, 2013
|
||||||||||||||||||||
Continued operations
|
Discontinued
operations (4)
|
Total
|
||||||||||||||||||
Banking Financial
|
Pension Fund
Manager
|
|||||||||||||||||||
BBVA Francés (3)
|
PSA Finance S.A.
|
Total
|
||||||||||||||||||
Total assets
|
55,765,494 | 2,684,358 | 58,449,852 | 73,772 | 58,523,624 | |||||||||||||||
Total income (1)
|
11,282,644 | 760,892 | 12,043,536 | 15,254 | 12,058,790 | |||||||||||||||
Total expenses (2)
|
(9,531,897 | ) | (431,681 | ) | (9,963,578 | ) | (16,554 | ) | (9,980,132 | ) | ||||||||||
(Loss)/Gain on minority interest in subsidiaries
|
(97 | ) | (54,916 | ) | (55,013 | ) | 599 | (54,414 | ) | |||||||||||
Total net income
|
1,750,650 | 274,295 | 2,024,945 | (701 | ) | 2,024,244 |
(1)
|
Includes financial income, service charge income and other income.
|
(2)
|
Includes financial expenses, allowances for doubtful loans, service charge expenses, operating expenses, other expenses and income tax.
|
(3)
|
Includes BBVA Francés Asset Management S.A. Sociedad Gerente de Fondos Comunes de Inversión and BBVA Francés Valores S.A.
|
(4)
|
See Note 15. to the Consolidated Financial Statements.
|
Loans
|
||||||||||||||||||||||||
December 31, 2013
|
December 31, 2012
|
December 31, 2011 (1)
|
||||||||||||||||||||||
(in thousands of pesos, except percentages)
|
||||||||||||||||||||||||
Public Sector
|
40,915 | 0.11 | % | 35,067 | 0.12 | % | 46,027 | 0.20 | % | |||||||||||||||
Corporate
|
6,613,086 | 18.13 | % | 7,755,847 | 27.21 | % | 6,378,971 | 28.10 | % | |||||||||||||||
Middle market
|
9,435,080 | 25.88 | % | 7,014,829 | 24.62 | % | 5,676,856 | 25.01 | % | |||||||||||||||
Retail
|
20,379,113 | 55.88 | % | 13,687,688 | 48.04 | % | 10,595,177 | 46.68 | % | |||||||||||||||
Total
|
36,468,194 | 100.00 | % | 28,493,431 | 100.00 | % | 22,697,031 | 100.00 | % |
Deposits
|
||||||||||||||||||||||||
December 31, 2013
|
December 31, 2012
|
December 31, 2011
|
||||||||||||||||||||||
(in thousands of pesos, except percentages)
|
||||||||||||||||||||||||
Corporate
|
8,860,338 | 20.25 | % | 6,213,292 | 18.19 | % | 4,774,471 | 16.37 | % | |||||||||||||||
Middle market
|
5,391,617 | 12.32 | % | 4,092,888 | 11.98 | % | 3,843,486 | 13.18 | % | |||||||||||||||
Retail
|
29,507,510 | 67.43 | % | 23,858,873 | 69.83 | % | 20,547,747 | 70.45 | % | |||||||||||||||
Total
|
43,759,465 | 100.00 | % | 34,165,053 | 100.00 | % | 29,165,704 | 100.00 | % |
§
|
Segmented, specialized management with the objective of deepening its knowledge of the client base in order to design value offers according to its needs.
|
§
|
Expanding the distribution network by increasing the number of offices based on new models according to market requirements, adding more and more ATMs and promoting the digital channels, which will play a fundamental role in the coming years’ banking business.
|
§
|
Continuing with the transformation process, by making such channels more agile, safe and reliable through digitalization and automatization.
|
1.
|
Understanding the client better:
|
§
|
Creation of an integral quality management plan (the “KPI”), with business indicators. Along 2013 we worked on the generation of a control panel at territory and branch levels for monitoring the different units.
|
§
|
Installation of the Client’s Voice (IRENE or NPS) as the metric for monitoring client perception of our products and services. Since the start of the measurements, more than 100,000 surveys have been made among clients. In addition, during the first quarter of 2013 we worked on perfecting the application of this methodology (making surveys, capturing results, coding the answers, among other things). In the second half of the year, the efforts were concentrated on the development of reports.
|
2.
|
Improving processes with high impact on quality perception
|
§
|
Improving card processes and circuits.
|
§
|
Improving clients’ experience at branches, speeding up attention and reducing waiting times.
|
§
|
Reducing the volume of complaints and reinforcing the First Contact Resolution (FCR) model under which 33% of the complaints made in 2013 were resolved within 72 hours (versus 31% in 2012).
|
3.
|
Promoting a culture of service to the client
|
§
|
Sensibilization workshop (by presence or by delivery of material).
|
§
|
Creation of BBVA Service and Attention Protocols which define behavior and attitude guidelines expected from all members of BBVA, as part of the value chain.
|
§
|
Publication of the Protocols and promotion of all key improvement aspects through quality campaigns.
|
§
|
Participation of the Quality Area in different forums (Business Committees, training and others) in order to continue internalizing the pillars of the Quality Plan and sharing its improvements.
|
§
|
“Internal Irene” survey: this internal survey was launched in the last quarter of 2013 for the purpose of obtaining an indicator to measure the network’s perception regarding the service it received from its internal suppliers (Central Areas) in view of the service they provide to the external client.
|
-
|
Diagnostic stage: performance of focuses and interviews to representatives of branch networks from all banking sections in their different positions/levels (over 100 participants).
|
-
|
Launching of online surveys to all members of the main areas of contact with the client, including branches (retail, companies and corporate) and channels (3.500 individuals).
|
4.
|
Defining a government model and a quality measurement methodology
|
§
|
Quality and Servicing Committee (strategic), monthly, with participation of the Management Committee.
|
§
|
Operative Quality Committee (tactical), fortnightly, with the presence of all banking sections and managements
|
§
|
Communication “A” 5388 of the BCRA created the figure of the person Responsible for the Attention of Users of Financial Services. The new regulation established responsibilities and functions to improve the resolution and monitoring of clients’ complaints, as a body at a higher level.
|
§
|
A new electronic form was implemented both on the website and inside the home banking service (Francés Net), by which clients may contact BBVA Francés to carry out different activities, including “Inquiries, Claims, Requests and Complaints”. The Resolution Center is the organ that receives the forms, manages them and provides an answer in each case
|
-
|
VIP and PREMIUM
|
§
|
Implementation of VIP BBVA Francés spaces: they have been especially devised in order to ensure an exclusive environment with the privacy and personalized attention that such clients deserve, and to maximize interaction between the client and its VIP executive. In the creation of this particular environment, spaces have been intervened with details of design and high-rank services which define a style of attention and try to make a difference between the Bank and its competitors.
|
§
|
Continuous Training on Attention Protocol: whit the purpose of using a single methodology for each contact that a VIP executive has with a client, a written handbook has been prepared containing the definitions set forth by the segment management for attention thereof.
|
§
|
Permanent communication of the benefits of the segment: it is important for the VIP executive to keep in mind during his dialog with the client the benefits that the latter has at his/her disposal, especially those directly related to the client’s profile and interests.
|
§
|
Development of events: we continued to carry out actions to approach the clients through the Gourmet Route. The entity publicized such events in the most important printed press means.
|
§
|
Parking at branches with VIP Space.
|
§
|
Subscription to digital newspapers and magazines free of charge.
|
§
|
Birthday gift.
|
§
|
Premium experiences at cinemas, theaters and concerts, with pre-sale of tickets and priority in VIP invitations, apart from PREMIUM WORLD encounters at embassies and gourmet routes.
|
§
|
Free-of-charge documentation delivery service.
|
§
|
Exclusive communication brochure for a better knowledge and use of all possibilities and benefits at their disposal.
|
-
|
Small and medium-sized entities segment and businesses (“SMEs” or “PYMEs”)
|
-
|
Consumer financing
|
-
|
Managed resources
|
§
|
Fixed-term deposits
|
§
|
Corporate Bonds, and
|
§
|
Mutual Funds.
|
-
|
Payroll management
|
-
|
Related Products:
|
§
|
Upgrade of the Life and Personal Accidents insurance portfolio.
|
§
|
Adjustment of the insured amounts to the present context in the different sections.
|
§
|
Continuity of campaigns to attract new clients.
|
§
|
Focus on cross-sell through Televentas.
|
§
|
Increased offer of products through the ATM channel.
|
|
§
|
Contracting of custody accounts.
|
|
§
|
Contracting of additional credit cards.
|
|
§
|
Automatic debit for Mastercard holders.
|
|
§
|
Creation of investor’s profile.
|
|
§
|
Pre-approved offer of products.
|
|
§
|
An estimated volume of Ps.17,702 million (accumulated as of November 2013), more than Ps.5,400 higher than the previous year.
|
|
§
|
636,000 active clients, representing a 11% growth for the year.
|
|
§
|
178.6 million transactions (accumulated as of October 2013) representing some 10% increase over the same period of the preceding year.
|
|
§
|
Inquiries: global position, products (accounts, cards, fixed term deposits, custody accounts, loans), movements (accounts and cards).
|
|
§
|
Transfers.
|
|
§
|
Management of keys.
|
|
§
|
Localization of ATMs and branches (available only on iPhone and Android).
|
-
|
Retail
|
|
§
|
Plan for the renovation of branches to give them more amplitude and comfort, thus contributing to the satisfaction of clients and network equipment.
|
|
§
|
Development and implementation of the Business Management Space Project throughout the branches network, to create an insulated and exclusive environment equipped for conducting proactive business transactions by the commercial managers, thus achieving an improvement in the productivity of effective contacts and sales.
|
|
§
|
Development of the Project to merge the Commercial Systems and MIRAS (regional incentive model for south America) tools within the applicable Commercial Scenarios, for the purpose of substantially reducing operation times. This is currently on a pilot stage.
|
|
§
|
The credit lines for productive investment destined for PYMEs recorded a very good level of placements in the year, showing growth of 42% in ordinary margins, 33% in volume of deposits and 24% in payrolls. In addition, this resulted in the incorporation of 110 new clients.
|
-
|
Middle Market
|
-
|
Corporate & Investment Banking (“C&IB”)
|
Name of Mutual Fund
|
Thousands
of Pesos
|
|||
FBA Acciones Globales (*)
|
47,620 | |||
FBA Total
|
20,817 | |||
FBA Renta (*)
|
20,537 | |||
FBA Renta Pesos
|
1,460,275 | |||
FBA Renta Dólares (*)
|
5,971 | |||
FBA Bonos Latinoamericanos
|
26,211 | |||
FBA Calificado
|
126,513 | |||
FBA International
|
4,558 | |||
FBA Ahorro Dólares (*)
|
14,092 | |||
FBA Renta Fija (*)
|
14,373 | |||
FBA Ahorro Pesos
|
541,736 | |||
FBA Renta Premium (*)
|
8,866 | |||
FBA Horizonte
|
47,322 | |||
FBA Renta Corto Plazo (*)
|
316 | |||
FBA Acciones Latinoamericanas
|
41,623 | |||
FBA Bonos Argentina
|
5,096 | |||
FBA Acciones Argentinas
|
468 | |||
FBA Bonos Globales
|
117 | |||
Total
|
2,386,511 |
(*)
|
BBVA Francés Asset Management S.A. Sociedad Gerente de Fondos Comunes de Inversión decided to start the process of liquidation of FBA Renta Dólares, FBA Ahorro Dólares, FBA Renta Fija, FBA Renta Premium and FBA Renta Corto Plazo on August 30, 2013 and of FBA Acciones Globales and FBA Renta on September 2, 2013.
|
As of December 31, 2013
|
||||||||||||||||||||
Continued operations
|
Discontinued
operations (5)
|
Total
|
||||||||||||||||||
Banking Financial
|
Pension Fund Manager
|
|||||||||||||||||||
BBVA Francés.(4)
|
PSA Finance S.A.
|
Total
|
||||||||||||||||||
Total assets
|
55,765,494 | 2,684,358 | 58,449,852 | 73,772 | 58,523,624 | |||||||||||||||
Financial income
|
7,818,945 | 416,334 | 8,235,279 | 8,130 | 8,243,409 | |||||||||||||||
Service charge income and other income
|
3,463,699 | 344,558 | 3,808,257 | 7,124 | 3,815,381 | |||||||||||||||
Total income (1)
|
11,282,644 | 760,892 | 12,043,536 | 15,254 | 12,058,790 | |||||||||||||||
Financial expenses
|
(3,015,193 | ) | (241,659 | ) | (3,256,852 | ) | 3,042 | (3,253,810 | ) | |||||||||||
Allowances for doubtful loans
|
(431,467 | ) | (21,797 | ) | (453,264 | ) | — | (453,264 | ) | |||||||||||
Operating expenses
|
(3,848,175 | ) | (33,797 | ) | (3,881,972 | ) | (18,497 | ) | (3,900,469 | ) | ||||||||||
Other expenses (2)
|
(2,237,062 | ) | (134,428 | ) | (2,371,490 | ) | (1,099 | ) | (2,372,589 | ) | ||||||||||
Total expenses (3)
|
(9,531,897 | ) | (431,681 | ) | (9,963,578 | ) | (16,554 | ) | (9,980,132 | ) | ||||||||||
(Loss)/Gain on minority interest in subsidiaries
|
(97 | ) | (54,916 | ) | (55,013 | ) | 599 | (54,414 | ) | |||||||||||
Total net income
|
1,750,650 | 274,295 | 2,024,945 | (701 | ) | 2,024,244 |
(1)
|
Includes: financial income, service charge income and other income.
|
(2)
|
Includes: service charge expense, other expense and income tax.
|
(3)
|
Includes: financial expenses, allowances for doubtful loans, operating expenses and other expenses.
|
(4)
|
Includes: BBVA Francés Asset Management S.A. Sociedad Gerente de Fondos Comunes de Inversión and BBVA Francés Valores S.A.
|
(5)
|
See Note 15. to the Consolidated Financial Statements.
|
As of December 31, 2012
|
||||||||||||||||||||
Continued operations
|
Discontinued
operations (5)
|
Total
|
||||||||||||||||||
Banking Financial
|
Pension Fund Manager
|
|||||||||||||||||||
BBVA Francés.(4)
|
PSA Finance S.A.
|
Total
|
||||||||||||||||||
Total assets
|
42,761,978 | 1,916,525 | 44,678,503 | 106,076 | 44,784,579 | |||||||||||||||
Financial income
|
5,423,751 | 281,442 | 5,705,193 | 9,728 | 5,714,921 | |||||||||||||||
Service charge income and other income
|
2,735,119 | 197,682 | 2,932,801 | 5,400 | 2,938,201 | |||||||||||||||
Total income (1)
|
8,158,870 | 479,124 | 8,637,994 | 15,128 | 8,653,122 | |||||||||||||||
Financial expenses
|
(1,955,017 | ) | (106,114 | ) | (2,061,131 | ) | 3,260 | (2,057,871 | ) | |||||||||||
Allowances for doubtful loans
|
(242,753 | ) | (13,506 | ) | (256,259 | ) | — | (256,259 | ) | |||||||||||
Operating expenses
|
(3,014,278 | ) | (25,453 | ) | (3,039,731 | ) | (21,977 | ) | (3,061,708 | ) | ||||||||||
Other expenses (2)
|
(1,896,026 | ) | (81,333 | ) | (1,977,359 | ) | (51 | ) | (1,977,410 | ) | ||||||||||
Total expenses (3)
|
(7,108,074 | ) | (226,406 | ) | (7,334,480 | ) | (18,768 | ) | (7,353,248 | ) | ||||||||||
(Loss)/Gain on minority interest in subsidiaries
|
(84 | ) | (37,790 | ) | (37,874 | ) | 1,679 | (36,195 | ) | |||||||||||
Total net income
|
1,050,712 | 214,928 | 1,265,640 | (1,961 | ) | 1,263,679 |
(1)
|
Includes: service charge expense, other expense and income tax.
|
(2)
|
Includes: financial expenses, allowances for doubtful loans, operating expenses and other expenses.
|
(3)
|
Includes: BBVA Francés Asset Management S.A. Sociedad Gerente de Fondos Comunes de Inversión and BBVA Francés Valores S.A.
|
(4)
|
See Note 15. to the Consolidated Financial Statements.
|
As of December 31, 2011
|
||||||||||||||||||||
Continued operations
|
Discontinued
operations (5)
|
Total
|
||||||||||||||||||
Banking Financial
|
Pension Fund Manager / Insurance
|
|||||||||||||||||||
BBVA Francés.(4)
|
PSA Finance S.A.
|
Total
|
||||||||||||||||||
Total assets
|
37,640,829 | 1,329,244 | 38,970,073 | 35,572 | 39,005,645 | |||||||||||||||
Financial income
|
3,412,422 | 152,608 | 3,565,030 | 249,655 | 3,814,685 | |||||||||||||||
Service charge income and other income
|
2,078,461 | 129,350 | 2,207,811 | 78,537 | 2,286,348 | |||||||||||||||
Total income (1)
|
5,490,883 | 281,958 | 5,772,841 | 328,192 | 6,101,033 | |||||||||||||||
Financial expenses
|
(1,300,279 | ) | (55,419 | ) | (1,355,698 | ) | 10,295 | (1,345,403 | ) | |||||||||||
Allowances for doubtful loans
|
(122,066 | ) | (10,597 | ) | (132,663 | ) | — | (132,663 | ) | |||||||||||
Operating expenses
|
(2,263,288 | ) | (16,212 | ) | (2,279,500 | ) | (63,700 | ) | (2,343,200 | ) | ||||||||||
Other expenses (2)
|
(1,006,203 | ) | (58,661 | ) | (1,064,864 | ) | (200,864 | ) | (1,265,728 | ) | ||||||||||
Total expenses (3)
|
(4,691,836 | ) | (140,889 | ) | (4,832,725 | ) | (254,269 | ) | (5,086,994 | ) | ||||||||||
(Loss)/Gain on minority interest in subsidiaries
|
24,691 | (17,908 | ) | 6,783 | (15,245 | ) | (8,462 | ) | ||||||||||||
Total net income
|
823,738 | 123,161 | 946,899 | 58,678 | 1,005,577 |
(1)
|
Includes: financial income, service charge income and other income.
|
(2)
|
Includes: service charge expense, other expense and income tax.
|
(3)
|
Includes: financial expenses, allowances for doubtful loans, operating expenses and other expenses.
|
(4)
|
Includes: BBVA Francés Asset Management S.A. Sociedad Gerente de Fondos Comunes de Inversión and BBVA Francés Valores S.A.
|
(5)
|
See Notes 1.4. and 15. to the Consolidated Financial Statements.
|
|
§
|
sharing of technology;
|
|
§
|
development of new banking products that have been customized for the Argentine market;
|
|
§
|
leveraging BBVA’s global client relationships to serve those clients operating in Argentina; and
|
|
§
|
BBVA’s participation in BBVA Francés as a shareholder is both long term and strategic.
|
|
§
|
In the first place, during 2013 the company issued for the first time in a single year four issuances of corporate bonds in the months of February, May, July and October. PSA Finance successfully completed such issuances and obtained a total amount of Ps.528 million, which was 79.9% higher than the best performance it had recorded until the start of the year. Among such issuances stands out the one made in July, when Ps.150 million were issued and offers were received for Ps.213 million.
|
|
§
|
On the other hand, the continuity in 2013 of actions started the previous year to promote the capture of corporate term deposits allowed the organization to increase by 41% its balance on stock at the close of the year, to a total of Ps.43.8 million.
|
(1) Undergoing liquidation proceedings.
|
BBVA Francés | Stockholders’ | |||||||||
Country of | Ownership | Equity | ||||||||
Incorporation/ | and Voting Power | (in millions of | ||||||||
Subsidiary or Affiliates Company
|
Residence
|
(in percentages)
|
Principal Activity
|
pesos) (2) (3)
|
||||||
BBVA Francés Asset Management S.A.(1)
|
Argentina
|
95.00
|
%
|
Investment fund manager
|
72.6
|
|||||
BBVA Francés Valores S.A. (1)
|
Argentina
|
97.00
|
%
|
Stock exchange brokerage
|
18.5
|
|||||
Consolidar AFJP S.A. (undergoing liquidation proceedings) (1)
|
Argentina
|
53.89
|
%
|
Pension fund manager
|
15.3
|
|||||
PSA Finance Argentina Cía. Financiera S.A. (1)
|
Argentina
|
50.00
|
%
|
Financial institution
|
329.3
|
|||||
Rombo Compañía Financiera S.A.
|
Argentina
|
40.00
|
%
|
Financial institution
|
376.0
|
|||||
BBVA Consolidar Seguros S.A. (1)
|
Argentina
|
12.22
|
%
|
Insurance
|
239.1
|
(1)
|
For information regarding the number of shares we hold in such entities, see Note 2 to the Consolidated Financial Statements.
|
(2)
|
Total stockholders’ equity as of December 31, 2013.
|
(3)
|
Statutory Stockholders’ Equity, adjusted for purposes of consolidation so as to apply an accounting criterion being uniform with that of BBVA Francés, if applicable.
|
Investment
|
Country
|
% of Shares
Owned
(in percentages)
|
Principal Activity
|
Total
Stockholders’
Equity (in
millions of pesos)
|
||||||||
Coelsa S.A. (1)
|
Argentina
|
8.64 | % |
Clearing house
|
3.1 | |||||||
Interbanking S.A. (1)
|
Argentina
|
11.11 | % |
Information services for financial markets
|
116.3 | |||||||
Argencontrol S.A. (2)
|
Argentina
|
7.77 | % |
Agent mandatory
|
1.2 | |||||||
Sedesa S.A. (1)
|
Argentina
|
9.52 | % |
Deposit guarantee fund
|
1.0 | |||||||
Banelco S.A. (3)
|
Argentina
|
10.91 | % |
Nationwide ATM network & credit card administration
|
79.3 | |||||||
Visa Argentina S.A. (4)
|
Argentina
|
10.48 | % |
Credit card issuer
|
265.1 |
(1)
|
Total Stockholders’ Equity as of December 31, 2012.
|
(2)
|
Total Stockholders’ Equity as of December 31, 2011.
|
(3)
|
Total Stockholders’ Equity as of November 30, 2013.
|
(4)
|
Total Stockholders’ Equity as of May 31, 2013.
|
Rp =
|
1 + Np
|
- 1
|
Rd =
|
(1 + Nd)(1 + D)
|
- 1
|
1 + I
|
1 + I
|
Rd=
|
(1+0.20)(1+0.15)
|
- 1
|
=
|
10.4% per annum
|
1+0.25
|
December 31,
|
||||||||||||||||||||||||||||||||||||
2013
|
2012
|
2011
|
||||||||||||||||||||||||||||||||||
Average
balance (1)
|
Interest
earned/
paid
|
Average
real rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
real rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
real rate (2)
|
||||||||||||||||||||||||||||
(in thousands of pesos, except percentages)
|
||||||||||||||||||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||||||||||||||
Interest-earning assets
|
||||||||||||||||||||||||||||||||||||
Government securities (3)
|
||||||||||||||||||||||||||||||||||||
Pesos
|
4,259,330 | 439,174 | (3.84 | )% | 5,733,710 | 775,808 | 0.40 | % | 5,910,088 | 585,291 | (2.45 | )% | ||||||||||||||||||||||||
Dollars
|
231,056 | 58,219 | 44.66 | % | 114 | 83 | 74.41 | % | 164,044 | 714 | (3.51 | )% | ||||||||||||||||||||||||
Total
|
4,490,386 | 497,393 | (1.34 | )% | 5,733,824 | 775,891 | 0.40 | % | 6,074,132 | 586,005 | (2.48 | )% | ||||||||||||||||||||||||
Loans (4)
|
||||||||||||||||||||||||||||||||||||
Private Sector
|
||||||||||||||||||||||||||||||||||||
Pesos
|
30,347,126 | 6,263,679 | 5.16 | % | 21,784,022 | 4,258,681 | 5.72 | % | 15,665,675 | 2,634,984 | 3.69 | % | ||||||||||||||||||||||||
Dollars
|
1,797,921 | 72,599 | 20.21 | % | 2,994,902 | 135,684 | 5.63 | % | 3,417,049 | 73,626 | (1.86 | )% | ||||||||||||||||||||||||
Total
|
32,145,047 | 6,336,278 | 6.01 | % | 24,778,924 | 4,394,365 | 5.71 | % | 19,082,724 | 2,708,610 | 2.70 | % | ||||||||||||||||||||||||
Public Sector
|
||||||||||||||||||||||||||||||||||||
Pesos
|
784,655 | 4,982 | (12.27 | )% | 491,604 | — | — | 929,371 | 548 | (11.19 | )% | |||||||||||||||||||||||||
Dollars
|
588 | — | — | 4 | — | — | — | — | — | |||||||||||||||||||||||||||
Total
|
785,243 | 4,982 | (12.27 | )% | 491,608 | — | — | 929,371 | 548 | (11.19 | )% | |||||||||||||||||||||||||
Deposits with the Central Bank
|
||||||||||||||||||||||||||||||||||||
Pesos
|
208,782 | — | — | 163,946 | — | — | 127,251 | — | — | |||||||||||||||||||||||||||
Dollars
|
2,946,513 | — | — | 1,860,749 | — | — | 2,537,075 | — | — | |||||||||||||||||||||||||||
Total
|
3,155,295 | — | — | 2,024,695 | — | — | 2,664,326 | — | — | |||||||||||||||||||||||||||
Other assets
|
||||||||||||||||||||||||||||||||||||
Pesos
|
2,582,950 | 805,843 | 14.37 | % | 2,170,203 | 341,302 | 2.34 | % | 1,867,995 | 296,536 | 2.85 | % | ||||||||||||||||||||||||
Dollars
|
865 | (16 | ) | 13.45 | % | 1,166 | 22 | 2.99 | % | 40,687 | 2,967 | 3.08 | % | |||||||||||||||||||||||
Total
|
2,583,815 | 805,827 | 14.37 | % | 2,171,369 | 341,324 | 2.34 | % | 1,908,682 | 299,503 | 2.86 | % | ||||||||||||||||||||||||
Interest-earning assets from continued operations
|
||||||||||||||||||||||||||||||||||||
Pesos
|
38,182,843 | 7,513,678 | 4.33 | % | 30,343,485 | 5,375,791 | 4.10 | % | 24,500,380 | 3,517,359 | 1.51 | % | ||||||||||||||||||||||||
Dollars
|
4,976,943 | 130,802 | 18.59 | % | 4,856,935 | 135,789 | 3.88 | % | 6,158,855 | 77,307 | (2.72 | )% | ||||||||||||||||||||||||
Total
|
43,159,786 | 7,644,480 | 5.97 | % | 35,200,420 | 5,511,580 | 4.07 | % | 30,659,235 | 3,594,666 | 0.66 | % | ||||||||||||||||||||||||
Interest-earning assets from discontinued operations
|
||||||||||||||||||||||||||||||||||||
Pesos
|
43,123 | 12,964 | 0.01 | % | 69,455 | 12,696 | — | 50,588 | 3,384 | (0.01 | )% | |||||||||||||||||||||||||
Dollars
|
1,625 | — | (0.01 | )% | 2,284 | — | — | 7,718 | — | — | ||||||||||||||||||||||||||
Total
|
44,748 | 12,964 | 0.01 | % | 71,739 | 12,696 | — | 58,306 | 3,384 | (0.01 | )% | |||||||||||||||||||||||||
Total interest-earning assets
|
||||||||||||||||||||||||||||||||||||
Pesos
|
38,225,966 | 7,526,642 | 4.34 | % | 30,412,940 | 5,388,487 | 4.10 | % | 24,550,968 | 3,520,743 | 1.49 | % | ||||||||||||||||||||||||
Dollars
|
4,978,568 | 130,802 | 18.58 | % | 4,859,219 | 135,789 | 3.88 | % | 6,166,573 | 77,307 | (2.72 | )% | ||||||||||||||||||||||||
Total
|
43,204,534 | 7,657,444 | 5.98 | % | 35,272,159 | 5,524,276 | 4.07 | % | 30,717,541 | 3,598,050 | 0.65 | % |
December 31,
|
||||||||||||||||||||||||||||||||||||
2013
|
2012
|
2011
|
||||||||||||||||||||||||||||||||||
Average
balance (1)
|
Interest
earned/
paid
|
Average
real rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
real rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
real rate (2)
|
||||||||||||||||||||||||||||
(in thousands of pesos, except percentages)
|
||||||||||||||||||||||||||||||||||||
Non-interest-earning assets
|
||||||||||||||||||||||||||||||||||||
Cash and due from banks
|
||||||||||||||||||||||||||||||||||||
Pesos
|
4,983,751 | — | — | 4,132,461 | — | — | 3,110,071 | — | — | |||||||||||||||||||||||||||
Dollars
|
392,078 | — | — | 613,787 | — | — | 776,237 | — | — | |||||||||||||||||||||||||||
Total
|
5,375,829 | — | — | 4,746,248 | — | — | 3,886,308 | — | — | |||||||||||||||||||||||||||
Investments in other companies
|
||||||||||||||||||||||||||||||||||||
Pesos
|
186,104 | — | — | 137,128 | — | — | 91,232 | — | — | |||||||||||||||||||||||||||
Dollars
|
1,465 | — | — | 1,209 | — | — | 1,095 | — | — | |||||||||||||||||||||||||||
Total
|
187,569 | — | — | 138,337 | — | — | 92,327 | — | — | |||||||||||||||||||||||||||
Property and equipment and miscellaneous and intangible assets and items pending allocation | ||||||||||||||||||||||||||||||||||||
Pesos
|
1,042,972 | — | — | 707,605 | — | — | 652,799 | — | — | |||||||||||||||||||||||||||
Total
|
1,042,972 | — | — | 707,605 | — | — | 652,799 | — | — | |||||||||||||||||||||||||||
Allowance for loan losses
|
||||||||||||||||||||||||||||||||||||
Pesos
|
(992,499 | ) | — | — | (673,167 | ) | — | — | (423,818 | ) | — | — | ||||||||||||||||||||||||
Dollars
|
(56,658 | ) | — | — | (67,308 | ) | — | — | (52,569 | ) | — | — | ||||||||||||||||||||||||
Total
|
(1,049,157 | ) | — | — | (740,475 | ) | — | — | (476,387 | ) | — | — | ||||||||||||||||||||||||
Other assets
|
||||||||||||||||||||||||||||||||||||
Pesos
|
1,230,519 | — | — | 810,826 | — | — | 710,741 | — | — | |||||||||||||||||||||||||||
Dollars
|
299,246 | — | — | 264,328 | — | — | 284,003 | — | — | |||||||||||||||||||||||||||
Total
|
1,529,765 | — | — | 1,075,154 | — | — | 994,744 | — | — | |||||||||||||||||||||||||||
Non-interest-earning assets from continued operations
|
||||||||||||||||||||||||||||||||||||
Pesos
|
6,450,847 | — | — | 5,114,853 | — | — | 4,141,025 | — | — | |||||||||||||||||||||||||||
Dollars
|
636,131 | — | — | 812,016 | — | — | 1,008,766 | — | — | |||||||||||||||||||||||||||
Total
|
7,086,978 | — | — | 5,926,869 | — | — | 5,149,791 | — | — | |||||||||||||||||||||||||||
Non-interest-earning assets from discontinued operations
|
||||||||||||||||||||||||||||||||||||
Pesos
|
34,935 | — | — | 24,164 | — | — | 16,140 | — | — | |||||||||||||||||||||||||||
Dollars
|
— | — | — | 264 | — | — | 268 | — | — | |||||||||||||||||||||||||||
Total
|
34,935 | — | — | 24,428 | — | — | 16,408 | — | — | |||||||||||||||||||||||||||
Total non-interest-earning assets
|
||||||||||||||||||||||||||||||||||||
Pesos
|
6,485,782 | — | — | 5,139,017 | — | — | 4,157,165 | — | — | |||||||||||||||||||||||||||
Dollars
|
636,131 | — | — | 812,280 | — | — | 1,009,034 | — | — | |||||||||||||||||||||||||||
Total
|
7,121,913 | — | — | 5,951,297 | — | — | 5,166,199 | — | — | |||||||||||||||||||||||||||
ASSETS FROM CONTINUED OPERATIONS
|
||||||||||||||||||||||||||||||||||||
Pesos
|
44,633,690 | — | — | 35,458,338 | — | — | 28,641,405 | — | — | |||||||||||||||||||||||||||
Dollars
|
5,613,074 | — | — | 5,668,951 | — | — | 7,167,621 | — | — | |||||||||||||||||||||||||||
Total
|
50,246,764 | — | — | 41,127,289 | — | — | 35,809,026 | — | — | |||||||||||||||||||||||||||
ASSETS FROM DISCONTINUED OPERATIONS
|
||||||||||||||||||||||||||||||||||||
Pesos
|
78,058 | — | — | 93,619 | — | — | 66,728 | — | — | |||||||||||||||||||||||||||
Dollars
|
1,625 | — | — | 2,548 | — | — | 7,986 | — | — | |||||||||||||||||||||||||||
Total
|
79,683 | — | — | 96,167 | — | — | 74,714 | — | — | |||||||||||||||||||||||||||
TOTAL ASSETS
|
||||||||||||||||||||||||||||||||||||
Pesos
|
44,711,748 | — | — | 35,551,957 | — | — | 28,708,133 | — | — | |||||||||||||||||||||||||||
Dollars
|
5,614,699 | — | — | 5,671,499 | — | — | 7,175,607 | — | — | |||||||||||||||||||||||||||
Total
|
50,326,447 | — | — | 41,223,456 | — | — | 35,883,740 | — | — |
(1)
|
Average balances are derived from month-end balances.
|
(2)
|
Annualized on a 360-day basis.
|
(3)
|
Includes trading gains and losses in all fiscal years. Unrealized gains and losses arising from changes in the market value of our trading portfolio of Government Securities and yield on our investment portfolio of Government Securities are included.
|
(4)
|
Loan amounts are stated before deduction of the allowance for loan losses. Non-accrual loans are included in loans as interest-earning assets.
|
|
December 31,
|
|||||||||||||||||||||||||||||||||||
2013
|
2012
|
2011
|
||||||||||||||||||||||||||||||||||
Average
balance (1)
|
Interest
earned/
paid
|
Average
real rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
real rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
real rate (2)
|
||||||||||||||||||||||||||||
(in thousands of pesos, except percentages)
|
||||||||||||||||||||||||||||||||||||
LIABILITIES
|
||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities
|
||||||||||||||||||||||||||||||||||||
Savings accounts
|
||||||||||||||||||||||||||||||||||||
Pesos
|
7,719,280 | 13,453 | (12.68 | )% | 6,186,969 | 9,367 | (11.43 | )% | 4,784,502 | 6,767 | (11.11 | )% | ||||||||||||||||||||||||
Dollars
|
1,458,765 | 1,319 | 15.65 | % | 1,913,643 | 1,781 | 1.15 | % | 2,671,586 | 2,416 | (3.84 | )% | ||||||||||||||||||||||||
Total
|
9,178,045 | 14,772 | (8.17 | )% | 8,100,612 | 11,148 | (8.46 | )% | 7,456,088 | 9,183 | (8.51 | )% | ||||||||||||||||||||||||
Time deposits
|
||||||||||||||||||||||||||||||||||||
Pesos
|
15,037,091 | 2,373,976 | 0.93 | % | 11,201,224 | 1,526,358 | 0.49 | % | 9,010,574 | 1,058,109 | (0.81 | )% | ||||||||||||||||||||||||
Dollars
|
1,131,265 | 3,295 | 15.89 | % | 1,460,417 | 3,842 | 1.32 | % | 1,918,794 | 4,666 | (3.69 | )% | ||||||||||||||||||||||||
Total
|
16,168,356 | 2,377,271 | 1.98 | % | 12,661,641 | 1,530,200 | 0.58 | % | 10,929,368 | 1,062,775 | (1.32 | )% | ||||||||||||||||||||||||
Borrowings from the Central Bank
|
||||||||||||||||||||||||||||||||||||
Pesos
|
132,961 | 6,145 | (8.80 | )% | 81,135 | 2,311 | (9.04 | )% | 53,083 | 558 | (10.30 | )% | ||||||||||||||||||||||||
Dollars
|
3,291 | — | — | 1,702 | 2 | 1.19 | % | 2,526 | 18 | (3.26 | )% | |||||||||||||||||||||||||
Total
|
136,252 | 6,145 | (8.59 | )% | 82,837 | 2,313 | (8.83 | )% | 55,609 | 576 | (9.98 | )% | ||||||||||||||||||||||||
Borrowings from other financial institutions
|
||||||||||||||||||||||||||||||||||||
Pesos
|
23,577 | 308,112 | 1,126.36 | % | 11,031 | 215,348 | 1,714.81 | % | 29,736 | 38,961 | 105.06 | % | ||||||||||||||||||||||||
Dollars
|
113,219 | 3,892 | 19.52 | % | 501,100 | 17,881 | 4.66 | % | 265,254 | 3,259 | (2.75 | )% | ||||||||||||||||||||||||
Total
|
136,796 | 312,004 | 210.29 | % | 512,131 | 233,229 | 41.50 | % | 294,990 | 42,220 | 8.12 | % | ||||||||||||||||||||||||
Corporate bonds
|
||||||||||||||||||||||||||||||||||||
Pesos
|
798,698 | 57,186 | (6.59 | )% | 593,162 | 54,341 | (3.46 | )% | 63,056 | 11,149 | 4.46 | % | ||||||||||||||||||||||||
Total
|
798,698 | 57,186 | (6.59 | )% | 593,162 | 54,341 | (3.46 | )% | 63,056 | 11,149 | 4.46 | % | ||||||||||||||||||||||||
Other liabilities
|
||||||||||||||||||||||||||||||||||||
Pesos
|
646,203 | (87,956 | ) | (24.69 | )% | 357,890 | (115,073 | ) | (40.00 | )% | 9,814 | 19,905 | 168.81 | % | ||||||||||||||||||||||
Dollars
|
16,489 | — | — | 66,303 | — | — | 108,675 | — | — | |||||||||||||||||||||||||||
Total
|
662,692 | (87,956 | ) | (24.08 | )% | 424,193 | (115,073 | ) | (33.75 | )% | 118,489 | 19,905 | 13.98 | % | ||||||||||||||||||||||
Interest-bearing liabilities from continued operations
|
||||||||||||||||||||||||||||||||||||
Pesos
|
24,357,810 | 2,670,916 | (3.27 | )% | 18,431,411 | 1,692,652 | (3.44 | )% | 13,950,765 | 1,135,449 | (4.01 | )% | ||||||||||||||||||||||||
Dollars
|
2,723,029 | 8,506 | 15.91 | % | 3,943,165 | 23,506 | 1.66 | % | 4,966,835 | 10,359 | (3.73 | )% | ||||||||||||||||||||||||
Total
|
27,080,839 | 2,679,422 | (1.34 | )% | 22,374,576 | 1,716,158 | (2.54 | )% | 18,917,600 | 1,145,808 | (3.94 | )% | ||||||||||||||||||||||||
Interest-bearing liabilities from discontinued operations
|
||||||||||||||||||||||||||||||||||||
Pesos
|
(17,152 | ) | 2,222 | 0.02 | % | (11,923 | ) | 5 | — | (59,130 | ) | (9,602 | ) | (0.03 | )% | |||||||||||||||||||||
Total
|
(17,152 | ) | 2,222 | 0.01 | % | (11,923 | ) | 5 | — | (59,130 | ) | (9,602 | ) | (0.03 | )% | |||||||||||||||||||||
Total interest-bearing liabilities
|
||||||||||||||||||||||||||||||||||||
Pesos
|
24,340,658 | 2,673,138 | (3.25 | )% | 18,419,488 | 1,692,657 | (3.44 | )% | 13,891,635 | 1,125,847 | (4.04 | )% | ||||||||||||||||||||||||
Dollars
|
2,723,029 | 8,506 | 15.91 | % | 3,943,165 | 23,506 | 1.66 | % | 4,966,835 | 10,359 | (3.73 | )% | ||||||||||||||||||||||||
Total
|
27,063,687 | 2,681,644 | (1.33 | )% | 22,362,653 | 1,716,163 | (2.54 | )% | 18,858,470 | 1,136,206 | (3.97 | )% |
December 31,
|
||||||||||||||||||||||||||||||||||||
2013
|
2012
|
2011
|
||||||||||||||||||||||||||||||||||
Average
balance (1)
|
Interest
earned/
paid
|
Average
real rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
real rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
real rate (2)
|
||||||||||||||||||||||||||||
(in thousands of pesos, except percentages)
|
||||||||||||||||||||||||||||||||||||
Non-interest bearing liabilities and stockholders’ equity
|
||||||||||||||||||||||||||||||||||||
Demand deposits
|
||||||||||||||||||||||||||||||||||||
Pesos
|
10,348,993 | — | — | 8,660,998 | — | — | 6,820,551 | — | — | |||||||||||||||||||||||||||
Dollars
|
846,636 | — | — | 803,844 | — | — | 1,017,747 | — | — | |||||||||||||||||||||||||||
Total
|
11,195,629 | — | — | 9,463,942 | — | — | 7,838,298 | — | — | |||||||||||||||||||||||||||
Other liabilities
|
||||||||||||||||||||||||||||||||||||
Pesos
|
5,126,499 | — | — | 4,102,444 | — | — | 4,764,021 | — | — | |||||||||||||||||||||||||||
Dollars
|
633,047 | — | — | 701,226 | — | — | 869,190 | — | — | |||||||||||||||||||||||||||
Total
|
5,759,546 | — | — | 4,803,670 | — | — | 5,633,211 | — | — | |||||||||||||||||||||||||||
Minority interest
|
||||||||||||||||||||||||||||||||||||
Pesos
|
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Total
|
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Stockholders’ equity
|
||||||||||||||||||||||||||||||||||||
Pesos
|
6,210,750 | — | — | 4,485,101 | — | — | 3,419,917 | — | — | |||||||||||||||||||||||||||
Total
|
6,210,750 | — | — | 4,485,101 | — | — | 3,419,917 | — | — | |||||||||||||||||||||||||||
Non–interest bearing liabilities and stockholders’ equity from continued operations
|
||||||||||||||||||||||||||||||||||||
Pesos
|
21,686,242 | — | — | 17,247,643 | — | — | 15,004,489 | — | — | |||||||||||||||||||||||||||
Dollars
|
1,479,683 | — | — | 1,505,070 | — | — | 1,886,937 | — | — | |||||||||||||||||||||||||||
Total
|
23,165,925 | — | — | 18,752,713 | — | — | 16,891,426 | — | — | |||||||||||||||||||||||||||
Non–interest bearing liabilities and stockholders’ equity from discontinued operations
|
||||||||||||||||||||||||||||||||||||
Pesos
|
96,835 | — | — | 108,090 | — | — | 133,845 | — | — | |||||||||||||||||||||||||||
Dollars
|
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Total
|
96,835 | — | — | 108,090 | — | — | 133,845 | — | — | |||||||||||||||||||||||||||
Total non–interest bearing liabilities and stockholders’ equity
|
||||||||||||||||||||||||||||||||||||
Pesos
|
21,783,077 | — | — | 17,355,733 | — | — | 15,138,333 | — | — | |||||||||||||||||||||||||||
Dollars
|
1,479,683 | — | — | 1,505,070 | — | — | 1,886,937 | — | — | |||||||||||||||||||||||||||
Total
|
23,262,760 | — | — | 18,860,803 | — | — | 17,025,270 | — | — | |||||||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY FROM CONTINUED OPERATIONS
|
||||||||||||||||||||||||||||||||||||
Pesos
|
46,044,052 | — | — | 35,679,054 | — | — | 28,955,254 | — | — | |||||||||||||||||||||||||||
Dollars
|
4,202,712 | — | — | 5,448,235 | — | — | 6,853,772 | — | — | |||||||||||||||||||||||||||
Total
|
50,246,764 | — | — | 41,127,289 | — | — | 35,809,026 | — | — | |||||||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY FROM DISCONTINUED OPERATIONS
|
||||||||||||||||||||||||||||||||||||
Pesos
|
79,683 | — | — | 96,167 | — | — | 74,715 | — | — | |||||||||||||||||||||||||||
Dollars
|
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Total
|
79,683 | — | — | 96,167 | — | — | 74,715 | — | — | |||||||||||||||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||||||||||||||||||||||||||||||
Pesos
|
46,123,735 | — | — | 35,775,221 | — | — | 29,029,968 | — | — | |||||||||||||||||||||||||||
Dollars
|
4,202,712 | — | — | 5,448,235 | — | — | 6,853,772 | — | — | |||||||||||||||||||||||||||
Total
|
50,326,447 | — | — | 41,223,456 | — | — | 35,883,740 | — | — |
(1)
|
Average balances are derived from month-end balances.
|
(2)
|
Annualized on a 360-day basis.
|
December 31,
|
||||||||||||||||||||||||||||||||||||
2013
|
2012
|
2011
|
||||||||||||||||||||||||||||||||||
Average
balance (1)
|
Interest
earned/
paid
|
Average
nominal
rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
Nominal
rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
nominal
rate (2)
|
||||||||||||||||||||||||||||
(in thousands of pesos, except percentages)
|
||||||||||||||||||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||||||||||||||
Interest-earning assets
|
||||||||||||||||||||||||||||||||||||
Government securities (3)
|
||||||||||||||||||||||||||||||||||||
Pesos
|
4,259,330 | 439,174 | 10.31 | % | 5,733,710 | 775,808 | 13.53 | % | 5,910,088 | 585,291 | 9.90 | % | ||||||||||||||||||||||||
Dollars
|
231,056 | 58,219 | 25.20 | % | 114 | 83 | 72.59 | % | 164,044 | 714 | 0.44 | % | ||||||||||||||||||||||||
Total
|
4,490,386 | 497,393 | 11.08 | % | 5,733,824 | 775,891 | 13.53 | % | 6,074,132 | 586,005 | 9.65 | % | ||||||||||||||||||||||||
Loans (4)
|
||||||||||||||||||||||||||||||||||||
Private Sector
|
||||||||||||||||||||||||||||||||||||
Pesos
|
30,347,126 | 6,263,679 | 20.64 | % | 21,784,022 | 4,258,681 | 19.55 | % | 15,665,675 | 2,634,984 | 16.82 | % | ||||||||||||||||||||||||
Dollars
|
1,797,921 | 72,599 | 4.04 | % | 2,994,902 | 135,684 | 4.53 | % | 3,417,049 | 73,626 | 2.15 | % | ||||||||||||||||||||||||
Total
|
32,145,047 | 6,336,278 | 19.71 | % | 24,778,924 | 4,394,365 | 17.73 | % | 19,082,724 | 2,708,610 | 14.19 | % | ||||||||||||||||||||||||
Public Sector
|
||||||||||||||||||||||||||||||||||||
Pesos
|
784,655 | 4,982 | 0.63 | % | 491,604 | — | — | 929,371 | 548 | 0.06 | % | |||||||||||||||||||||||||
Dollars
|
588 | — | — | 4 | — | — | ||||||||||||||||||||||||||||||
Total
|
785,243 | 4,982 | 0.63 | % | 491,608 | — | — | 929,371 | 548 | 0.06 | % | |||||||||||||||||||||||||
Deposits with the Central Bank
|
||||||||||||||||||||||||||||||||||||
Pesos
|
208,782 | — | — | 163,946 | — | — | 127,251 | — | — | |||||||||||||||||||||||||||
Dollars
|
2,946,513 | — | — | 1,860,749 | — | — | 2,537,075 | — | — | |||||||||||||||||||||||||||
Total
|
3,155,295 | — | — | 2,024,695 | — | — | 2,664,326 | — | — | |||||||||||||||||||||||||||
Other assets
|
||||||||||||||||||||||||||||||||||||
Pesos
|
2,582,950 | 805,843 | 31.20 | % | 2,170,203 | 341,302 | 15.73 | % | 1,867,995 | 296,536 | 15.87 | % | ||||||||||||||||||||||||
Dollars
|
865 | (16 | ) | (1.81 | )% | 1,166 | 22 | 1.92 | % | 40,687 | 2,967 | 7.29 | % | |||||||||||||||||||||||
Total
|
2,583,815 | 805,827 | 31.19 | % | 2,171,369 | 341,324 | 15.72 | % | 1,908,682 | 299,503 | 15.69 | % | ||||||||||||||||||||||||
Interest-earning assets from continued operations
|
||||||||||||||||||||||||||||||||||||
Pesos
|
38,182,843 | 7,513,678 | 19.68 | % | 30,343,485 | 5,375,791 | 17.72 | % | 24,500,380 | 3,517,359 | 14.36 | % | ||||||||||||||||||||||||
Dollars
|
4,976,943 | 130,802 | 2.63 | % | 4,856,935 | 135,789 | 2.80 | % | 6,158,855 | 77,307 | 1.26 | % | ||||||||||||||||||||||||
Total
|
43,159,786 | 7,644,480 | 17.71 | % | 35,200,420 | 5,511,580 | 15.66 | % | 30,659,235 | 3,594,666 | 11.72 | % | ||||||||||||||||||||||||
Interest-earning assets from discontinued operations
|
||||||||||||||||||||||||||||||||||||
Pesos
|
43,123 | 12,964 | 0.01 | % | 69,455 | 12,696 | — | 50,588 | 3,384 | (0.02 | )% | |||||||||||||||||||||||||
Dollars
|
1,625 | — | — | 2,284 | — | — | 7,718 | — | — | |||||||||||||||||||||||||||
Total
|
44,748 | 12,964 | 0.01 | % | 71,739 | 12,696 | — | 58,306 | 3,384 | (0.01 | )% | |||||||||||||||||||||||||
Total interest-earning assets
|
||||||||||||||||||||||||||||||||||||
Pesos
|
38,225,966 | 7,526,642 | 19.69 | % | 30,412,940 | 5,388,487 | 17.72 | % | 24,550,968 | 3,520,743 | 14.34 | % | ||||||||||||||||||||||||
Dollars
|
4,978,568 | 130,802 | 2.63 | % | 4,859,219 | 135,789 | 2.79 | % | 6,166,573 | 77,307 | 1.25 | % | ||||||||||||||||||||||||
Total
|
43,204,534 | 7,657,444 | 17.72 | % | 35,272,159 | 5,524,276 | 15.66 | % | 30,717,541 | 3,598,050 | 11.71 | % |
December 31,
|
||||||||||||||||||||||||||||||||||||
2013
|
2012
|
2011
|
||||||||||||||||||||||||||||||||||
Average
balance (1)
|
Interest
earned/
paid
|
Average
nominal
rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
Nominal
rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
nominal
rate (2)
|
||||||||||||||||||||||||||||
(in thousands of pesos, except percentages)
|
||||||||||||||||||||||||||||||||||||
Non-interest-earning assets
|
||||||||||||||||||||||||||||||||||||
Cash and due from banks
|
||||||||||||||||||||||||||||||||||||
Pesos
|
4,983,751 | — | — | 4,132,461 | — | — | 3,110,071 | — | — | |||||||||||||||||||||||||||
Dollars
|
392,078 | — | — | 613,787 | — | — | 776,237 | — | — | |||||||||||||||||||||||||||
Total
|
5,375,829 | — | — | 4,746,248 | — | — | 3,886,308 | — | — | |||||||||||||||||||||||||||
Investments in other companies
|
||||||||||||||||||||||||||||||||||||
Pesos
|
186,104 | — | — | 137,128 | — | — | 91,232 | — | — | |||||||||||||||||||||||||||
Dollars
|
1,465 | — | — | 1,209 | — | — | 1,095 | — | — | |||||||||||||||||||||||||||
Total
|
187,569 | — | — | 138,337 | — | — | 92,327 | — | — | |||||||||||||||||||||||||||
Property and equipment and miscellaneous and intangible assets and items pending of allocation | ||||||||||||||||||||||||||||||||||||
Pesos
|
1,042,972 | — | — | 707,605 | — | — | 652,799 | — | — | |||||||||||||||||||||||||||
Total
|
1,042,972 | — | — | 707,605 | — | — | 652,799 | — | — | |||||||||||||||||||||||||||
Allowance for loan losses
|
||||||||||||||||||||||||||||||||||||
Pesos
|
(992,499 | ) | — | — | (673,167 | ) | — | — | (423,818 | ) | — | — | ||||||||||||||||||||||||
Dollars
|
(56,658 | ) | — | — | (67,308 | ) | — | — | (52,569 | ) | — | — | ||||||||||||||||||||||||
Total
|
(1,049,157 | ) | — | — | (740,475 | ) | — | — | (476,387 | ) | — | — | ||||||||||||||||||||||||
Other assets
|
||||||||||||||||||||||||||||||||||||
Pesos
|
1,230,519 | — | — | 810,826 | — | — | 710,741 | — | — | |||||||||||||||||||||||||||
Dollars
|
299,246 | — | — | 264,328 | — | — | 284,003 | — | — | |||||||||||||||||||||||||||
Total
|
1,529,765 | — | — | 1,075,154 | — | — | 994,744 | — | — | |||||||||||||||||||||||||||
Non-interest-earning assets from continued operations
|
||||||||||||||||||||||||||||||||||||
Pesos
|
6,450,847 | — | — | 5,114,853 | — | — | 4,141,025 | — | — | |||||||||||||||||||||||||||
Dollars
|
636,131 | — | — | 812,016 | — | — | 1,008,766 | — | — | |||||||||||||||||||||||||||
Total
|
7,086,978 | — | — | 5,926,869 | — | — | 5,149,791 | — | — | |||||||||||||||||||||||||||
Non-interest-earning assets from discontinued operations
|
||||||||||||||||||||||||||||||||||||
Pesos
|
34,935 | — | — | 24,164 | — | — | 16,140 | — | — | |||||||||||||||||||||||||||
Dollars
|
— | — | — | 264 | — | — | 268 | — | — | |||||||||||||||||||||||||||
Total
|
34,935 | — | — | 24,428 | — | — | 16,408 | — | — | |||||||||||||||||||||||||||
Total non-interest-earning assets
|
||||||||||||||||||||||||||||||||||||
Pesos
|
6,485,782 | — | — | 5,139,017 | — | — | 4,157,165 | — | — | |||||||||||||||||||||||||||
Dollars
|
636,131 | — | — | 812,280 | — | — | 1,009,034 | — | — | |||||||||||||||||||||||||||
Total
|
7,121,913 | — | — | 5,951,297 | — | — | 5,166,199 | — | — | |||||||||||||||||||||||||||
ASSETS FROM CONTINUED OPERATIONS
|
||||||||||||||||||||||||||||||||||||
Pesos
|
44,633,690 | — | — | 35,458,338 | — | — | 28,641,405 | — | — | |||||||||||||||||||||||||||
Dollars
|
5,613,074 | — | — | 5,668,951 | — | — | 7,167,621 | — | — | |||||||||||||||||||||||||||
Total
|
50,246,764 | — | — | 41,127,289 | — | — | 35,809,026 | — | — | |||||||||||||||||||||||||||
ASSETS FROM DISCONTINUED OPERATIONS
|
||||||||||||||||||||||||||||||||||||
Pesos
|
78,058 | — | — | 93,619 | — | — | 66,728 | — | — | |||||||||||||||||||||||||||
Dollars
|
1,625 | — | — | 2,548 | — | — | 7,986 | — | — | |||||||||||||||||||||||||||
Total
|
79,683 | — | — | 96,167 | — | — | 74,714 | — | — | |||||||||||||||||||||||||||
TOTAL ASSETS
|
||||||||||||||||||||||||||||||||||||
Pesos
|
44,711,748 | — | — | 35,551,957 | — | — | 28,708,133 | — | — | |||||||||||||||||||||||||||
Dollars
|
5,614,699 | — | — | 5,671,499 | — | — | 7,175,607 | — | — | |||||||||||||||||||||||||||
Total
|
50,326,447 | — | — | 41,223,456 | — | — | 35,883,740 | — | — |
(1)
|
Average balances are derived from month-end balances.
|
(2)
|
Annualized on a 360-day basis.
|
(3)
|
Includes trading gains and losses in all fiscal years. Unrealized gains and losses arising from changes in the market value of our trading portfolio of Government Securities and yield on our investment portfolio of Government Securities are included.
|
(4)
|
Loan amounts are stated before deduction of the allowance for loan losses. Non-accrual loans are included in loans as interest-earning assets.
|
December 31,
|
||||||||||||||||||||||||||||||||||||
2013
|
2012
|
2011
|
||||||||||||||||||||||||||||||||||
Average
balance (1)
|
Interest
earned/
paid
|
Average
nominal
rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
Nominal
rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
nominal
rate (2)
|
||||||||||||||||||||||||||||
(in thousands of pesos, except percentages)
|
||||||||||||||||||||||||||||||||||||
LIABILITIES
|
||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities
|
||||||||||||||||||||||||||||||||||||
Savings accounts
|
||||||||||||||||||||||||||||||||||||
Pesos
|
7,719,280 | 13,453 | 0.17 | % | 6,186,969 | 9,367 | 0.15 | % | 4,784,502 | 6,767 | 0.14 | % | ||||||||||||||||||||||||
Dollars
|
1,458,765 | 1,319 | 0.09 | % | 1,913,643 | 1,781 | 0.09 | % | 2,671,586 | 2,416 | 0.09 | % | ||||||||||||||||||||||||
Total
|
9,178,045 | 14,772 | 0.16 | % | 8,100,612 | 11,148 | 0.14 | % | 7,456,088 | 9,183 | 0.12 | % | ||||||||||||||||||||||||
Time deposits
|
||||||||||||||||||||||||||||||||||||
Pesos
|
15,037,091 | 2,373,976 | 15.79 | % | 11,201,224 | 1,526,358 | 13.63 | % | 9,010,574 | 1,058,109 | 11.74 | % | ||||||||||||||||||||||||
Dollars
|
1,131,265 | 3,295 | 0.29 | % | 1,460,417 | 3,842 | 0.26 | % | 1,918,794 | 4,666 | 0.24 | % | ||||||||||||||||||||||||
Total
|
16,168,356 | 2,377,271 | 14.70 | % | 12,661,641 | 1,530,200 | 12.09 | % | 10,929,368 | 1,062,775 | 9.72 | % | ||||||||||||||||||||||||
Borrowings from the Central Bank
|
||||||||||||||||||||||||||||||||||||
Pesos
|
132,961 | 6,145 | 4.62 | % | 81,135 | 2,311 | 2.85 | % | 53,083 | 558 | 1.05 | % | ||||||||||||||||||||||||
Dollars
|
3,291 | — | — | 1,702 | 2 | 0.13 | % | 2,526 | 18 | 0.69 | % | |||||||||||||||||||||||||
Total
|
136,252 | 6,145 | 4.51 | % | 82,837 | 2,313 | 2.79 | % | 55,609 | 576 | 1.04 | % | ||||||||||||||||||||||||
Borrowings from other financial institutions
|
||||||||||||||||||||||||||||||||||||
Pesos
|
23,577 | 308,112 | 1,306.83 | % | 11,031 | 215,348 | 1,952.12 | % | 29,736 | 38,961 | 131.02 | % | ||||||||||||||||||||||||
Dollars
|
113,219 | 3,892 | 3.44 | % | 501,100 | 17,881 | 3.57 | % | 265,254 | 3,259 | 1.23 | % | ||||||||||||||||||||||||
Total
|
136,796 | 312,004 | 228.08 | % | 512,131 | 233,229 | 45.54 | % | 294,990 | 42,220 | 14.31 | % | ||||||||||||||||||||||||
Corporate bonds
|
||||||||||||||||||||||||||||||||||||
Pesos
|
798,698 | 57,186 | 7.16 | % | 593,162 | 54,341 | 9.16 | % | 63,056 | 11,149 | 17.68 | % | ||||||||||||||||||||||||
Total
|
798,698 | 57,186 | 7.16 | % | 593,162 | 54,341 | 9.16 | % | 63,056 | 11,149 | 17.68 | % | ||||||||||||||||||||||||
Other liabilities
|
||||||||||||||||||||||||||||||||||||
Pesos
|
646,203 | (87,956 | ) | (13.61 | )% | 357,890 | (115,073 | ) | (32.15 | )% | 9,814 | 19,905 | 202.84 | % | ||||||||||||||||||||||
Dollars
|
16,489 | — | — | 66,303 | — | — | 108,675 | — | — | |||||||||||||||||||||||||||
Total
|
662,692 | (87,956 | ) | (13.27 | )% | 424,193 | (115,073 | ) | (27.13 | )% | 118,489 | 19,905 | 16.80 | % | ||||||||||||||||||||||
Interest-bearing liabilities from continued operations
|
||||||||||||||||||||||||||||||||||||
Pesos
|
24,357,810 | 2,670,916 | 10.97 | % | 18,431,411 | 1,692,652 | 9.18 | % | 13,950,765 | 1,135,449 | 8.14 | % | ||||||||||||||||||||||||
Dollars
|
2,723,029 | 8,506 | 0.31 | % | 3,943,165 | 23,506 | 0.60 | % | 4,966,835 | 10,359 | 0.21 | % | ||||||||||||||||||||||||
Total
|
27,080,839 | 2,679,422 | 9.89 | % | 22,374,576 | 1,716,158 | 7.67 | % | 18,917,600 | 1,145,808 | 6.06 | % | ||||||||||||||||||||||||
Interest-bearing liabilities from discontinued operations
|
||||||||||||||||||||||||||||||||||||
Pesos
|
(17,152 | ) | 2,222 | 0.01 | % | (11,923 | ) | 5 | (0.01 | )% | (59,130 | ) | (9,602 | ) | (0.03 | )% | ||||||||||||||||||||
Total
|
(17,152 | ) | 2,222 | 0.02 | % | (11,923 | ) | 5 | — | (59,130 | ) | (9,602 | ) | (0.03 | )% | |||||||||||||||||||||
Total interest-bearing liabilities
|
||||||||||||||||||||||||||||||||||||
Pesos
|
24,340,658 | 2,673,138 | 10.98 | % | 18,419,488 | 1,692,657 | 9.19 | % | 13,891,635 | 1,125,847 | 8.10 | % | ||||||||||||||||||||||||
Dollars
|
2,723,029 | 8,506 | 0.31 | % | 3,943,165 | 23,506 | 0.60 | % | 4,966,835 | 10,359 | 0.21 | % | ||||||||||||||||||||||||
Total
|
27,063,687 | 2,681,644 | 9.91 | % | 22,362,653 | 1,716,163 | 7.67 | % | 18,858,470 | 1,136,206 | 6.02 | % |
December 31,
|
||||||||||||||||||||||||||||||||||||
2013
|
2012
|
2011
|
||||||||||||||||||||||||||||||||||
Average
balance (1)
|
Interest
earned/
paid
|
Average
nominal
rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
Nominal
rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
nominal
rate (2)
|
||||||||||||||||||||||||||||
(in thousands of pesos, except percentages)
|
||||||||||||||||||||||||||||||||||||
Non-interest-bearing liabilities and stockholders’ equity
|
||||||||||||||||||||||||||||||||||||
Demand deposits
|
||||||||||||||||||||||||||||||||||||
Pesos
|
10,348,993 | — | — | 8,660,998 | — | — | 6,820,551 | — | — | |||||||||||||||||||||||||||
Dollars
|
846,636 | — | — | 803,844 | — | — | 1,017,747 | — | — | |||||||||||||||||||||||||||
Total
|
11,195,629 | — | — | 9,463,942 | — | — | 7,838,298 | — | — | |||||||||||||||||||||||||||
Other liabilities
|
||||||||||||||||||||||||||||||||||||
Pesos
|
5,126,499 | — | — | 4,102,444 | — | — | 4,764,021 | — | — | |||||||||||||||||||||||||||
Dollars
|
633,047 | — | — | 701,226 | — | — | 869,190 | — | — | |||||||||||||||||||||||||||
Total
|
5,759,546 | — | — | 4,803,670 | — | — | 5,633,211 | — | — | |||||||||||||||||||||||||||
Minority interest
|
||||||||||||||||||||||||||||||||||||
Pesos
|
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Total
|
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Stockholders’ equity
|
||||||||||||||||||||||||||||||||||||
Pesos
|
6,210,750 | — | — | 4,485,101 | — | — | 3,419,917 | — | — | |||||||||||||||||||||||||||
Total
|
6,210,750 | — | — | 4,485,101 | — | — | 3,419,917 | — | — | |||||||||||||||||||||||||||
Non–interest-bearing liabilities and stockholders’ equity from continued operations
|
||||||||||||||||||||||||||||||||||||
Pesos
|
21,686,242 | — | — | 17,247,643 | — | — | 15,004,489 | — | — | |||||||||||||||||||||||||||
Dollars
|
1,479,683 | — | — | 1,505,070 | — | — | 1,886,937 | — | — | |||||||||||||||||||||||||||
Total
|
23,165,925 | — | — | 18,752,713 | — | — | 16,891,426 | — | — | |||||||||||||||||||||||||||
Non–interest-bearing liabilities and stockholders’ equity from discontinued operations
|
||||||||||||||||||||||||||||||||||||
Pesos
|
96,835 | — | — | 108,090 | — | — | 133,845 | — | — | |||||||||||||||||||||||||||
Dollars
|
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Total
|
96,835 | — | — | 108,090 | — | — | 133,845 | — | — | |||||||||||||||||||||||||||
Total non–interest-bearing liabilities and stockholders’ equity
|
||||||||||||||||||||||||||||||||||||
Pesos
|
21,783,077 | — | — | 17,355,733 | — | — | 15,138,333 | — | — | |||||||||||||||||||||||||||
Dollars
|
1,479,683 | — | — | 1,505,070 | — | — | 1,886,937 | — | — | |||||||||||||||||||||||||||
Total
|
23,262,760 | — | — | 18,860,803 | — | — | 17,025,270 | — | — | |||||||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY FROM CONTINUED OPERATIONS
|
||||||||||||||||||||||||||||||||||||
Pesos
|
46,044,052 | — | — | 35,679,054 | — | — | 28,955,254 | — | — | |||||||||||||||||||||||||||
Dollars
|
4,202,712 | — | — | 5,448,235 | — | — | 6,853,772 | — | — | |||||||||||||||||||||||||||
Total
|
50,246,764 | — | — | 41,127,289 | — | — | 35,809,026 | — | — | |||||||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY FROM DISCONTINUED OPERATIONS
|
||||||||||||||||||||||||||||||||||||
Pesos
|
79,683 | — | — | 96,167 | — | — | 74,715 | — | — | |||||||||||||||||||||||||||
Dollars
|
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Total
|
79,683 | — | — | 96,167 | — | — | 74,715 | — | — | |||||||||||||||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||||||||||||||||||||||||||||||
Pesos
|
46,123,735 | — | — | 35,775,221 | — | — | 29,029,968 | — | — | |||||||||||||||||||||||||||
Dollars
|
4,202,712 | — | — | 5,448,235 | — | — | 6,853,772 | — | — | |||||||||||||||||||||||||||
Total
|
50,326,447 | — | — | 41,223,456 | — | — | 35,883,740 | — | — |
(1)
|
Average balances are derived from month-end balances.
|
(2)
|
Annualized on a 360-day basis.
|
December 2013/December 2012
Increase (Decrease) Due to
Changes in
|
December 2012/December 2011
Increase (Decrease) Due to
Changes in
|
December 2011/December 2010
Increase (Decrease) Due to
Changes in
|
||||||||||||||||||||||||||||||||||
Volume
|
Rate
|
Net
Change
|
Volume
|
Rate
|
Net
Change
|
Volume
|
Rate
|
Net
Change
|
||||||||||||||||||||||||||||
(in thousands of pesos)
|
||||||||||||||||||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||||||||||||||
Interest-earning assets
|
||||||||||||||||||||||||||||||||||||
Government securities
|
||||||||||||||||||||||||||||||||||||
Pesos
|
(152,022 | ) | (184,612 | ) | (336,634 | ) | (23,864 | ) | 214,381 | 190,517 | 93,547 | (727,324 | ) | (633,777 | ) | |||||||||||||||||||||
Dollars
|
58,190 | (54 | ) | 58,136 | (118,989 | ) | 118,358 | (631 | ) | 185 | (20,867 | ) | (20,682 | ) | ||||||||||||||||||||||
Total
|
(93,832 | ) | (184,666 | ) | (278,498 | ) | (142,853 | ) | 332,739 | 189,886 | 93,732 | (748,191 | ) | (654,459 | ) | |||||||||||||||||||||
Loans
|
||||||||||||||||||||||||||||||||||||
Private sector
|
||||||||||||||||||||||||||||||||||||
Pesos
|
1,767,433 | 237,565 | 2,004,998 | 1,196,110 | 427,587 | 1,623,697 | 919,286 | 34,848 | 954,134 | |||||||||||||||||||||||||||
Dollars
|
(48,333 | ) | (14,752 | ) | (63,085 | ) | (19,125 | ) | 81,183 | 62,058 | 30,818 | (20,969 | ) | 9,849 | ||||||||||||||||||||||
Total
|
1,719,100 | 222,813 | 1,941,913 | 1,176,985 | 508,770 | 1,685,755 | 950,104 | 13,879 | 963,983 | |||||||||||||||||||||||||||
Public sector
|
||||||||||||||||||||||||||||||||||||
Pesos
|
1,861 | 3,121 | 4,982 | — | (548 | ) | (548 | ) | 247 | 301 | 548 | |||||||||||||||||||||||||
Total
|
1,861 | 3,121 | 4,982 | — | (548 | ) | (548 | ) | 247 | 301 | 548 | |||||||||||||||||||||||||
Deposits with the Central Bank
|
||||||||||||||||||||||||||||||||||||
Pesos
|
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Dollars
|
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Total
|
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Other assets
|
||||||||||||||||||||||||||||||||||||
Pesos
|
128,771 | 335,770 | 464,541 | 47,527 | (2,761 | ) | 44,766 | 117,855 | 58,373 | 176,228 | ||||||||||||||||||||||||||
Dollars
|
5 | (43 | ) | (38 | ) | (758 | ) | (2,187 | ) | (2,945 | ) | (4,811 | ) | 5,355 | 544 | |||||||||||||||||||||
Total
|
128,776 | 335,727 | 464,503 | 46,769 | (4,948 | ) | 41,821 | 113,044 | 63,728 | 176,772 | ||||||||||||||||||||||||||
Interest-earning assets from continued operations
|
||||||||||||||||||||||||||||||||||||
Pesos
|
1,746,043 | 391,844 | 2,137,887 | 1,219,773 | 638,659 | 1,858,432 | 1,130,935 | (633,802 | ) | 497,133 | ||||||||||||||||||||||||||
Dollars
|
9,862 | (14,849 | ) | (4,987 | ) | (138,872 | ) | 197,354 | 58,482 | 26,192 | (36,481 | ) | (10,289 | ) | ||||||||||||||||||||||
Total
|
1,755,905 | 376,995 | 2,132,900 | 1,080,901 | 836,013 | 1,916,914 | 1,157,127 | (670,283 | ) | 486,844 | ||||||||||||||||||||||||||
Interest-earning assets from discontinued operations
|
||||||||||||||||||||||||||||||||||||
Pesos
|
(5,416 | ) | 5,684 | 268 | 2,771 | 6,541 | 9,312 | (207,972 | ) | (295,697 | ) | (503,669 | ) | |||||||||||||||||||||||
Dollars
|
(571 | ) | 571 | — | 113,119 | (113,119 | ) | — | (6,084 | ) | 6,084 | — | ||||||||||||||||||||||||
Total
|
(5,987 | ) | 6,255 | 268 | 115,890 | (106,578 | ) | 9,312 | (214,056 | ) | (289,613 | ) | (503,669 | ) | ||||||||||||||||||||||
Total interest-earning assets
|
||||||||||||||||||||||||||||||||||||
Pesos
|
1,740,627 | 397,528 | 2,138,155 | 1,222,544 | 645,200 | 1,867,744 | 922,963 | (929,499 | ) | (6,536 | ) | |||||||||||||||||||||||||
Dollars
|
9,291 | (14,278 | ) | (4,987 | ) | (25,753 | ) | 84,235 | 58,482 | 20,108 | (30,397 | ) | (10,289 | ) | ||||||||||||||||||||||
Total
|
1,749,918 | 383,250 | 2,133,168 | 1,196,791 | 729,435 | 1,926,226 | 943,071 | (959,896 | ) | (16,825 | ) |
December 2013/December 2012
Increase (Decrease) Due to
Changes in
|
December 2012/December 2011
Increase (Decrease) Due to
Changes in
|
December 2011/December 2010
Increase (Decrease) Due to
Changes in
|
||||||||||||||||||||||||||||||||||
Volume
|
Rate
|
Net
Change
|
Volume
|
Rate
|
Net
Change
|
Volume
|
Rate
|
Net
Change
|
||||||||||||||||||||||||||||
(in thousands of pesos)
|
||||||||||||||||||||||||||||||||||||
LIABILITIES
|
||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities
|
||||||||||||||||||||||||||||||||||||
Savings accounts
|
||||||||||||||||||||||||||||||||||||
Pesos
|
2,670 | 1,416 | 4,086 | 2,123 | 477 | 2,600 | 1,278 | 463 | 1,741 | |||||||||||||||||||||||||||
Dollars
|
(411 | ) | (51 | ) | (462 | ) | (705 | ) | 70 | (635 | ) | 360 | 419 | 779 | ||||||||||||||||||||||
Total
|
2,259 | 1,365 | 3,624 | 1,418 | 547 | 1,965 | 1,638 | 882 | 2,520 | |||||||||||||||||||||||||||
Time deposits
|
||||||||||||||||||||||||||||||||||||
Pesos
|
605,587 | 242,031 | 847,618 | 298,513 | 169,736 | 468,249 | 314,091 | 132,232 | 446,323 | |||||||||||||||||||||||||||
Dollars
|
(959 | ) | 412 | (547 | ) | (1,206 | ) | 382 | (824 | ) | 314 | (3,667 | ) | (3,353 | ) | |||||||||||||||||||||
Total
|
604,628 | 242,443 | 847,071 | 297,307 | 170,118 | 467,425 | 314,405 | 128,565 | 442,970 | |||||||||||||||||||||||||||
Borrowings from the Central Bank
|
||||||||||||||||||||||||||||||||||||
Pesos
|
2,396 | 1,438 | 3,834 | 799 | 954 | 1,753 | 225 | 333 | 558 | |||||||||||||||||||||||||||
Dollars
|
— | (2 | ) | (2 | ) | (2 | ) | (14 | ) | (16 | ) | 4 | 4 | 8 | ||||||||||||||||||||||
Total
|
2,396 | 1,436 | 3,832 | 797 | 940 | 1,737 | 229 | 337 | 566 | |||||||||||||||||||||||||||
Borrowings from other financial institutions
|
||||||||||||||||||||||||||||||||||||
Pesos
|
163,946 | (71,182 | ) | 92,764 | (365,136 | ) | 541,523 | 176,387 | 29,228 | (62,354 | ) | (33,126 | ) | |||||||||||||||||||||||
Dollars
|
(13,334 | ) | (655 | ) | (13,989 | ) | 8,416 | 6,206 | 14,622 | 2,566 | (692 | ) | 1,874 | |||||||||||||||||||||||
Total
|
150,612 | (71,837 | ) | 78,775 | (356,720 | ) | 547,729 | 191,009 | 31,794 | (63,046 | ) | (31,252 | ) | |||||||||||||||||||||||
Corporate bonds
|
||||||||||||||||||||||||||||||||||||
Pesos
|
14,715 | (11,870 | ) | 2,845 | 48,565 | (5,373 | ) | 43,192 | 11,149 | — | 11,149 | |||||||||||||||||||||||||
Total
|
14,715 | (11,870 | ) | 2,845 | 48,565 | (5,373 | ) | 43,192 | 11,149 | — | 11,149 | |||||||||||||||||||||||||
Other liabilities
|
||||||||||||||||||||||||||||||||||||
Pesos
|
(39,243 | ) | 66,360 | 27,117 | (111,917 | ) | (23,062 | ) | (134,979 | ) | (867,040 | ) | 944,100 | 77,061 | ||||||||||||||||||||||
Dollars
|
— | — | — | — | — | — | — | (13 | ) | (13 | ) | |||||||||||||||||||||||||
Total
|
(39,243 | ) | 66,360 | 27,117 | (111,917 | ) | (23,062 | ) | (134,979 | ) | (867,040 | ) | 944,087 | 77,048 | ||||||||||||||||||||||
Interest-bearing liabilities from continued operations
|
||||||||||||||||||||||||||||||||||||
Pesos
|
750,071 | 228,193 | 978,264 | (127,053 | ) | 684,255 | 557,202 | (511,069 | ) | 1,014,774 | 503,705 | |||||||||||||||||||||||||
Dollars
|
(14,704 | ) | (296 | ) | (15,000 | ) | 6,503 | 6,644 | 13,147 | 3,244 | (3,949 | ) | (705 | ) | ||||||||||||||||||||||
Total
|
735,367 | 227,897 | 963,264 | (120,550 | ) | 690,899 | 570,349 | (507,825 | ) | 1,010,825 | 503,000 | |||||||||||||||||||||||||
Interest-bearing liabilities from discontinued operations
|
||||||||||||||||||||||||||||||||||||
Pesos
|
(1,067 | ) | 3,284 | 2,217 | 20,876 | (11,269 | ) | 9,607 | (11,718 | ) | 379 | (11,339 | ) | |||||||||||||||||||||||
Total
|
(1,067 | ) | 3,284 | 2,217 | 20,876 | (11,269 | ) | 9,607 | (11,718 | ) | 379 | (11,339 | ) | |||||||||||||||||||||||
Total interest-bearing liabilities
|
||||||||||||||||||||||||||||||||||||
Pesos
|
749,004 | 231,477 | 980,481 | (106,177 | ) | 672,986 | 566,809 | (522,786 | ) | 1,015,153 | 492,367 | |||||||||||||||||||||||||
Dollars
|
(14,704 | ) | (296 | ) | (15,000 | ) | 6,503 | 6,644 | 13,147 | 3,244 | (3,949 | ) | (705 | ) | ||||||||||||||||||||||
Total
|
734,300 | 231,181 | 965,481 | (99,674 | ) | 679,630 | 579,956 | (519,542 | ) | 1,011,204 | 491,662 |
December 31,
|
||||||||||||
2013
|
2012
|
2011
|
||||||||||
(in thousands of pesos, except percentages)
|
||||||||||||
Average interest-earning assets
|
||||||||||||
Pesos
|
38,225,966 | 30,412,940 | 24,550,968 | |||||||||
Dollars
|
4,978,568 | 4,859,219 | 6,166,573 | |||||||||
Total
|
43,204,534 | 35,272,159 | 30,717,541 | |||||||||
Net interest income (1)
|
||||||||||||
Pesos
|
4,853,504 | 3,695,830 | 2,394,895 | |||||||||
Dollars
|
122,296 | 112,283 | 66,948 | |||||||||
Total
|
4,975,800 | 3,808,113 | 2,461,843 | |||||||||
Net interest margin (2)
|
||||||||||||
Pesos
|
12.70 | % | 12.15 | % | 9.75 | % | ||||||
Dollars
|
2.46 | % | 2.31 | % | 1.09 | % | ||||||
Weighted average rate
|
11.52 | % | 10.80 | % | 8.01 | % | ||||||
Yield spread nominal basis (3)
|
||||||||||||
Pesos
|
8.71 | % | 8.53 | % | 6.24 | % | ||||||
Dollars
|
2.31 | % | 2.20 | % | 1.05 | % | ||||||
Weighted average rate
|
7.82 | % | 7.99 | % | 5.69 | % |
(1)
|
Net interest income is defined as interest earned less interest paid. Trading results from our portfolio of Government Securities are included in interest.
|
(2)
|
Net interest margin is net interest income stated as a percentage of average interest-earning assets.
|
(3)
|
Yield spread nominal basis is defined as the difference between the average nominal rate on interest-earning assets and the average nominal rate on interest-bearing liabilities.
|
December 31,
|
||||||||||||
2013
|
2012
|
2011
|
||||||||||
(in thousands of pesos)
|
||||||||||||
Government securities
|
||||||||||||
In pesos:
|
||||||||||||
Holdings booked at fair value
|
||||||||||||
Debt consolidation bonds—Social security (BOCON)
|
31,040 | — | 14,814 | |||||||||
Argentine bonds
|
1,079,408 | 1,829,927 | 2,063,719 | |||||||||
Other debt bonds
|
393 | 241 | 166 | |||||||||
Holdings booked at amortized cost
|
||||||||||||
Other debt bonds
|
164 | 164 | 164 | |||||||||
Instruments issued by the Argentine Central Bank
|
||||||||||||
Argentine Central Bank bills (LEBAC)
|
1,273,092 | 2,201,676 | 2,352,026 | |||||||||
Argentine Central Bank notes (NOBAC)
|
135,395 | — | 1,095,946 | |||||||||
Total government securities in pesos
|
2,519,492 | 4,032,008 | 5,526,835 | |||||||||
In foreign currency:
|
||||||||||||
Holdings booked at fair value
|
||||||||||||
Argentine bonds
|
871,590 | 1,911 | 9,823 | |||||||||
Total government securities in foreign currency
|
871,590 | 1,911 | 9,823 | |||||||||
Total government securities
|
3,391,082 | 4,033,919 | 5,536,658 | |||||||||
Investments in listed private securities
|
||||||||||||
Shares
|
90 | 69 | 157 | |||||||||
Corporate bonds—Listed
|
— | 119 | 81 | |||||||||
Mutual funds
|
68,959 | 67,927 | 28,317 | |||||||||
Total private securities
|
69,049 | 68,115 | 28,555 | |||||||||
Subtotal government and private securities
|
3,460,131 | 4,102,034 | 5,565,213 | |||||||||
Allowances
|
(196 | ) | (188 | ) | (184 | ) | ||||||
Total government and private securities
|
3,459,935 | 4,101,846 | 5,565,029 | |||||||||
Corporate bonds—Unlisted
|
3,401 | 15,973 | 13,424 |
Maturing
|
||||||||||||||||||||
Within 1 year
|
After 1 year but within 5 years
|
After 5 years but within 10 years
|
After 10 years
|
Total
|
||||||||||||||||
Book value
|
||||||||||||||||||||
(in thousands of pesos, except percentages)
|
||||||||||||||||||||
Government securities
|
||||||||||||||||||||
In Pesos:
|
||||||||||||||||||||
Holdings booked at fair value
|
||||||||||||||||||||
Debt consolidation bonds—Social security (BOCON) (*)
|
2,319 | 12,366 | 15,458 | 897 | 31,040 | |||||||||||||||
Argentine bonds (*)
|
170,443 | 591,171 | 239,289 | 78,505 | 1,079,408 | |||||||||||||||
Other debt bonds
|
— | 314 | 79 | — | 393 | |||||||||||||||
Holdings booked at amortized cost
|
||||||||||||||||||||
Other debt bonds
|
164 | — | — | — | 164 | |||||||||||||||
Instruments issued by the Argentine Central Bank
|
||||||||||||||||||||
Argentine Central Bank bills (LEBAC) (*)
|
1,273,092 | — | — | — | 1,273,092 | |||||||||||||||
Argentine Central Bank notes (NOBAC) (*)
|
135,395 | — | — | — | 135,395 | |||||||||||||||
Total government securities in pesos
|
1,581,413 | 603,851 | 254,826 | 79,402 | 2,519,492 | |||||||||||||||
In foreign currency:
|
||||||||||||||||||||
Holdings booked at fair value
|
||||||||||||||||||||
Argentine bonds (*)
|
— | 829,290 | — | 42,300 | 871,590 | |||||||||||||||
Total government securities in foreign currency
|
— | 829,290 | — | 42,300 | 871,590 | |||||||||||||||
Total government securities
|
1,581,413 | 1,433,141 | 254,826 | 121,702 | 3,391,082 | |||||||||||||||
Corporate bonds —Unlisted
|
2,026 | 1,375 | — | — | 3,401 | |||||||||||||||
Weighted average yield (for the securities indicated with *)
|
16.15 | % | 12.40 | % | 15.34 | % | 10.33 | % |
December 31,
|
||||||||||||
2013
|
2012
|
2011 (7)
|
||||||||||
(in thousands of pesos)
|
||||||||||||
Principal
|
||||||||||||
Advances (1)
|
6,552,258 | 5,097,179 | 2,881,496 | |||||||||
Notes discounted and purchased (2)
|
5,476,961 | 4,240,993 | 3,412,091 | |||||||||
Secured with mortgages
|
1,243,900 | 877,775 | 736,900 | |||||||||
Consumer loans (3)
|
16,907,751 | 11,981,439 | 8,861,911 | |||||||||
Financial loans (4)
|
1,871,093 | 1,493,493 | 1,146,532 | |||||||||
Loans to governmental sector (5)
|
40,915 | 35,067 | 46,027 | |||||||||
Other loans
|
4,647,736 | 4,921,690 | 5,829,606 | |||||||||
Less: Unaccrued interest and unused collections (6)
|
(132,213 | ) | (73,413 | ) | (89,332 | ) | ||||||
Plus: Interest and exchange differences receivable
|
582,255 | 443,065 | 316,773 | |||||||||
Less: Allowance for loan losses
|
(722,462 | ) | (523,857 | ) | (444,973 | ) | ||||||
Total
|
36,468,194 | 28,493,431 | 22,697,031 |
(1)
|
Advances include short and long-term loans to companies and overdraft lines of credit.
|
(2)
|
Notes discounted and purchased are endorsed promissory notes.
|
(3)
|
Consumer loans include credit card loans and other consumer loans. Overdrafts to individuals are included under “Advances”.
|
(4)
|
Financial loans are defined as loans to financial institutions.
|
(5)
|
Loans to governmental sector are secured by taxable rights.
|
(6)
|
Unaccrued interest is defined as the discount on notes and bills.
|
(7)
|
See Note 3.3. to our Consolidated Financial Statements.
|
December 31,
|
||||||||||||
2013
|
2012
|
2011 (1)
|
||||||||||
(in thousands of pesos)
|
||||||||||||
Liquid guarantees
|
412,176 | 328,725 | 318,259 | |||||||||
Preferred guarantees
|
4,484,338 | 3,390,488 | 2,152,151 | |||||||||
Total
|
4,896,514 | 3,719,213 | 2,470,410 |
|
-
|
Credit Risk: meaning the possibility that one counterpart does not meet its contractual obligations in a concrete transaction.
|
|
-
|
Financial Risk: meaning the possibility of losses generated by changes in market rates or credit quality, which determine the value of an entity’s assets and liabilities. It is classified in turn as: market risk, liquidity risk, interest rate risk and credit risk at the marketplace.
|
|
-
|
Operational Risk: meaning the possibility of suffering losses due to events external to the entity or to some deficiency or failure of the processes, the personnel and/or the internal systems.
|
|
-
|
Self-financing ratio: The Loan to Score Credits Deposits (LtSCD) provides information on the financing structure of the balance-sheet for a certain period. It is prepared in consolidated form as well as for each of the currencies operated by the entity, providing information and the adequacy of the risk-appetite maintained with respect to the desirable funding structure.
|
|
-
|
Net short-term Financing: the objective of this metric is to determine the reasonableness of the balance-sheet’s financing structure according to the criterion of conducting a detailed monitoring of any financing type which differs from the one considered as stable as per the corporate criteria. In this connection, those deposits which entail a higher level of volatility are grouped together and assigned a specific monitoring and a maximum amount determined by the Board of Directors’ guidelines.
|
|
-
|
Basic capacity: a balance-sheet is prepared for liquidity (as opposed to the one for accounting purposes) classifying the different asset and liability items in and off balance sheet according to their nature in terms of liquidity. Each item’s financing structure is thus determined, which must at all times comply with a fundamental condition: basic businesses must be financed with stable resources. This guarantees the solidity of the Bank’s financial structure and the sustainability of its business plans.
|
December 31,
|
||||||||||||||||||||||||
2013
|
2012
|
2011 (1)
|
||||||||||||||||||||||
Loan
Portfolio
|
% of Loan Portfolio
|
Loan
Portfolio
|
% of Loan Portfolio
|
Loan
Portfolio
|
% of Loan Portfolio
|
|||||||||||||||||||
(in thousands of pesos, except percentages)
|
||||||||||||||||||||||||
Agricultural and livestock
|
2,057,623 | 5.53 | % | 1,591,185 | 5.48 | % | 986,984 | 4.26 | % | |||||||||||||||
Beverage
|
798,011 | 2.15 | % | 453,931 | 1.56 | % | 240,024 | 1.04 | % | |||||||||||||||
Chemicals
|
2,481,665 | 6.67 | % | 1,804,376 | 6.22 | % | 1,076,272 | 4.65 | % | |||||||||||||||
Construction
|
240,707 | 0.65 | % | 186,295 | 0.64 | % | 171,680 | 0.74 | % | |||||||||||||||
Consumer
|
16,511,057 | 44.40 | % | 11,628,175 | 40.07 | % | 9,655,152 | 41.72 | % | |||||||||||||||
Electricity, oil, water and sanitary services
|
515,041 | 1.38 | % | 278,560 | 0.96 | % | 190,275 | 0.82 | % | |||||||||||||||
Financial sector
|
1,871,093 | 5.03 | % | 1,493,493 | 5.15 | % | 1,146,532 | 4.95 | % | |||||||||||||||
Foodstuff
|
1,623,070 | 4.36 | % | 1,263,087 | 4.35 | % | 732,311 | 3.16 | % | |||||||||||||||
Government services
|
40,915 | 0.11 | % | 35,067 | 0.12 | % | 46,027 | 0.20 | % | |||||||||||||||
Industrial metals
|
648,184 | 1.74 | % | 697,031 | 2.40 | % | 504,499 | 2.18 | % | |||||||||||||||
Leather and fur product
|
38,521 | 0.10 | % | 16,315 | 0.06 | % | 15,128 | 0.07 | % | |||||||||||||||
Mining products
|
981,471 | 2.64 | % | 922,630 | 3.18 | % | 640,413 | 2.77 | % | |||||||||||||||
Oil and carbon
|
330,340 | 0.89 | % | 288,784 | 1.00 | % | 207,747 | 0.90 | % | |||||||||||||||
Others
|
3,864,947 | 10.39 | % | 4,726,115 | 16.29 | % | 4,929,300 | 21.30 | % | |||||||||||||||
Other manufacturing
|
265,935 | 0.72 | % | 272,287 | 0.94 | % | 109,469 | 0.47 | % | |||||||||||||||
Printers, Publishers and Related Industries
|
66,277 | 0.18 | % | 36,612 | 0.13 | % | — | — | ||||||||||||||||
Rubber products
|
389,815 | 1.05 | % | 279,394 | 0.96 | % | 117,929 | 0.51 | % | |||||||||||||||
Retail trade
|
1,502,148 | 4.04 | % | 988,538 | 3.41 | % | 942,691 | 4.07 | % | |||||||||||||||
Services
|
135,106 | 0.36 | % | 85,421 | 0.29 | % | 230,226 | 0.99 | % | |||||||||||||||
Shoes, apparel and other textile products
|
268,601 | 0.72 | % | 161,859 | 0.56 | % | 70,015 | 0.30 | % | |||||||||||||||
Textile
|
148,434 | 0.40 | % | 120,637 | 0.42 | % | 101,578 | 0.44 | % | |||||||||||||||
Tobacco
|
6,590 | 0.02 | % | 10,885 | 0.04 | % | 17,097 | 0.07 | % | |||||||||||||||
Transportation material
|
577,112 | 1.55 | % | 365,210 | 1.26 | % | 253,560 | 1.10 | % | |||||||||||||||
Wholesale trade
|
1,787,888 | 4.81 | % | 1,275,964 | 4.40 | % | 727,847 | 3.15 | % | |||||||||||||||
Wood products and cork
|
40,105 | 0.11 | % | 35,437 | 0.11 | % | 29,248 | 0.13 | % | |||||||||||||||
Total
|
37,190,656 | 100.00 | % | 29,017,288 | 100.00 | % | 23,142,004 | 100.00 | % |
Maturing
|
||||||||||||||||||||
Amount at December 31,
2013
|
Within
3 months
|
After 3
months but
within 1 year
|
After 1 year
but within
5 years
|
After 5 years
|
||||||||||||||||
(in thousands of pesos, except percentages)
|
||||||||||||||||||||
To the non-financial public sector
|
40,915 | 1,422 | — | 39,493 | — | |||||||||||||||
To the financial sector
|
1,871,093 | 821,283 | 498,106 | 551,704 | — | |||||||||||||||
To the non-financial private sector and residents abroad
|
35,278,648 | 17,836,311 | 7,767,079 | 9,496,685 | 178,573 | |||||||||||||||
Overdrafts
|
6,686,364 | 4,507,962 | 2,106,294 | 72,108 | — | |||||||||||||||
With privileged guarantees
|
4,793,518 | 529,730 | 1,504,496 | 2,591,642 | 167,650 | |||||||||||||||
Credit cards
|
7,479,654 | 7,479,654 | — | — | — | |||||||||||||||
Other
|
16,319,112 | 5,318,965 | 4,156,289 | 6,832,935 | 10,923 | |||||||||||||||
Total
|
37,190,656 | 18,659,016 | 8,265,185 | 10,087,882 | 178,573 | |||||||||||||||
Percentage of total loan portfolio
|
100.00 | % | 50.17 | % | 22.22 | % | 27.12 | % | 0.48 | % |
|
December 31, 2013
|
|||
|
(in thousands of pesos)
|
|||
Variable Rate
|
||||
Pesos — including adjustable loans
|
240,674 | |||
Foreign currency
|
— | |||
240,674 | ||||
Fixed Rate
|
||||
Pesos
|
35,542,796 | |||
Foreign currency
|
1,122,932 | |||
36,665,728 | ||||
Non-performing (1)
|
||||
Pesos
|
272,785 | |||
Foreign currency
|
11,469 | |||
284,254 | ||||
Total
|
37,190,656 |
(1)
|
For additional information on non-performing loans see “Item 4. Information on the Company—Selected Statistical Information—Non-performing and Restructured Loans” below.
|
Interest Sensitivity of
Outstanding Loans Maturing
in More Than One Year
|
||||||||
Fixed Rate
|
Variable Rate
|
|||||||
(in thousands of pesos)
|
||||||||
To the non-financial public sector
|
39,493 | — | ||||||
To the financial sector
|
551,704 | — | ||||||
To the non-financial private sector and residents abroad
|
9,659,935 | 15,323 | ||||||
Total
|
10,251,132 | 15,323 |
|
§
|
The allocation of their periodic income in relation to the totality of credit commitments assumed; or
|
|
§
|
Through the use of the credit scoring and screening methods.
|
1.
|
“Normal” if all payments on its loans are current or less than 31 days overdue and, in checking account overdrafts, less than 61 days overdue;
|
2.
|
“Low Risk” if payments with respect to principal, interest or otherwise, on any of its loans, are overdue for more than 31 and up to 90 days;
|
3.
|
“Medium Risk” if payments on any of its loans are overdue for more than 90 and up to 180 days;
|
4.
|
“High Risk” if payments on any of its loans are overdue for more than 180 days and up to one year or if it is subject to judicial proceedings for default on any of those loans;
|
5.
|
“Irrecoverable” if payments on any of its loans are overdue for more than one year, if the borrower is in bankruptcy or liquidation proceedings or if it is insolvent; and
|
6.
|
“Irrecoverable for Technical Decision” if such borrower is:
|
(a)
|
In arrears for more than 180 days according to a list provided by the Central Bank, which includes:
|
§
|
Financial institutions liquidated by the Central Bank,
|
§
|
Entities created as a result of the privatization of public financial institutions and in the process of dissolution,
|
§
|
Financial institutions whose licenses have been revoked by the Central Bank and are under judicial liquidation or bankruptcy, and
|
§
|
Any trust in which Seguro de Depósitos S.A. (“SEDESA”) is the beneficiary.
|
(b)
|
A foreign borrower (including banks or other financial institutions) which is not classified as “investment grade” by any of the rating agencies admitted by the Central Bank pursuant to the Evaluation of Financial Entities standards, except for the following:
|
§
|
Foreign banks or other financial institutions controlling or controlled by the financial entity under the consolidated or other supervision systems approved by the Central Bank;
|
§
|
Financing that is:
|
|
o
|
Secured by foreign banks and classified as “Investment Grade” by any of the international rating agencies admitted by the Central Bank;
|
|
o
|
Related to the buying or selling of securities through custodian banks admitted by the Central Bank (Caja de Valores, Clearstream, Euroclear or The Depository Trust Company), arising from the usual business practices in the market in which they are made;
|
|
o
|
Related to foreign trade transactions;
|
|
o
|
Entailing swaps of dollars and domestic government bonds at market price, with sufficient margins, involving custodians admitted by the Central Bank;
|
|
o
|
Foreign banks or financial institutions subject to the consolidated supervision system which controls local financial institutions organized as corporations (sociedades anónimas);
|
|
o
|
Other foreign banks authorized to take part in reciprocal payment and credit regimes to which the Central Bank is a party, to the extent the controlling financial entity is subject to a consolidated supervision system;
|
§
|
Assistance provided through foreign subsidiaries or branches of local financial institutions under the consolidated supervision system, to the extent the financial assistance is not funded directly or indirectly by local financial institutions; and
|
§
|
Clients from the non-financial private sector whose debt (all items included) plus the requested financing amount at the time of granting exceeds the lesser of 2.5% of the RPC (Responsabilidad Patrimonial Computable or “RPC”) on the last day of the preceding month or the equivalent of Ps.2,000,000, and who have not submitted a sworn statement as to whether they are or are not linked to the respective financial broker or whether their relationship with the latter implies the existence of a controlling influence, or who have not updated their previous presentation, except for those debtors under bankruptcy proceedings or requested extrajudicial composition proceedings or under judicial administration who, during a period of up to 540 days after the filing of the bankruptcy proceedings or the request of extrajudicial composition proceedings or the start of judicial collection proceedings, as the case may be, shall have not submitted the documentation that would allow the transaction, provided that a lawyer’s report from the financial creditor entity shall have been issued regarding the reasonability of recovering the relevant credits.
|
i)
|
Eligible borrowers:
|
ii)
|
Individual limit:
|
|
§
|
Dwelling mortgage loans: Ps.200,000
|
|
§
|
Chattel mortgage car loans: Ps.75,000
|
|
§
|
Personal loans and financing by credit card: Ps.15,000
|
|
§
|
Dwelling mortgage loans: Ps.300,000
|
|
§
|
Chattel mortgage car loans: Ps.100,000
|
|
§
|
Personal loans, financing by credit card and overdraft in checking accounts (altogether): Ps.25,000
|
1)
|
The treatment for refinancing in the Consumption Portfolio, depending on the refinanced borrower’s compliance record, according to the following criteria:
|
§
|
Once the Refinancing Agreement has been signed, the previous framework applies, unless the borrower partially amortizes his debt in advance.
|
§
|
The borrower must accumulate a greater number of downpayments (as shown in table (i) below) or increase his percentage of cancellation (as shown in table (ii) below) in order to improve his situation. The BCRA regulations provide that those clients whose debts have been refinanced via obligations subject to regular payments (monthly or bi-monthly) may be reclassified at the immediately upper level if they have complied punctually (or with delays not exceeding 31 days) with the payment of the established installments (in the case of single, regular above bi-monthly or irregular payments) or who have cancelled at least a certain specified percentage of their refinanced principal obligations, plus the number of installments or the accumulated percentage which may be applicable, respectively, if the refinancing was granted to a debtor included in lower levels.
|
(i)
|
To improve a borrower’s situation through the payment of installments, the following table applies (*):
|
Quantity of payments
|
||||||||||||||||
Change of category
|
from
Irrecoverable
|
from
High Risk
|
from
Medium Risk
|
from
Low Risk
|
||||||||||||
Change to High Risk
|
3 | — | — | — | ||||||||||||
Change to Medium Risk
|
6 | 3 | — | — | ||||||||||||
Change to Low Risk
|
8 | 5 | 2 | — | ||||||||||||
Change to Normal
|
9 | 6 | 3 | 1 |
(*)
|
The refinancing requires a punctual payment or with delays of not more than 31 days according to the German or French Amortization System. Regularity may be monthly or bimonthly.
|
(ii)
|
To improve a borrower’s situation through the Percentage of Capital Cancellation, the following table applies (also applicable to Commercial Portfolio) (**):
|
Percentage of cancellation
|
||||||||||||||||
Change of category
|
from
Irrecoverable
|
from
High Risk
|
from
Medium Risk
|
from
Low Risk
|
||||||||||||
Change to High Risk
|
20 | % | — | — | — | |||||||||||
Change to Medium Risk
|
35 | % | 15 | % | — | — | ||||||||||
Change to Low Risk
|
45 | % | 25 | % | 10 | % | — | |||||||||
Change to Normal
|
55 | % | 35 | % | 20 | % | 10 | % |
Percentage of cancellation
|
||||||||||||||||
Change of category
|
from
Irrecoverable
|
from
High Risk
|
from
Medium Risk
|
from
Low Risk
|
||||||||||||
Change to High Risk
|
15 | % | — | — | — | |||||||||||
Change to Medium Risk
|
25 | % | 10 | % | — | — | ||||||||||
Change to Low Risk
|
30 | % | 15 | % | 5 | % | — | |||||||||
Change to Normal
|
35 | % | 20 | % | 10 | % | 5 | % |
|
§
|
Refinancings with regular monthly or bimonthly payments: by the timely payment of installments. This is the criterion adopted by BBVA Francés.
|
|
§
|
All other forms: by capital amortization.
|
|
1.
|
Tranches of arrears are allocated in any applicable situation according to the table below:
|
Situation
|
Minimum delay time
(in days)
|
|
Normal
|
0
|
|
Low Risk
|
32
|
|
Medium Risk
|
91
|
|
High Risk
|
181
|
|
Irrecoverable
|
More than 1 year
|
|
2.
|
To the above must be added the refinancing arrears, and according to this the situation in which the refinanced client must be placed is determined:
|
2)
|
Procedure for constituting provisions above the minimum ones established by the regulations for a portfolio in normal situation.
|
|
§
|
Regulatory and technical control
|
|
§
|
Behavioral control of portfolio indicators.
|
|
o
|
NLP ratio behavior
|
|
o
|
Cycle-adjusted expected loss behavior
|
|
o
|
Expected loss behavior without cycle adjustment
|
|
o
|
Coverage performance
|
Loan Loss Provision Required
Consumer and Commercial Borrowers
|
||||||||||||
With
Preferred “A”
Guarantees
|
With
Preferred “B”
Guarantees
|
Without
Preferred “A”
or Preferred
“B” Guarantees
|
||||||||||
Normal
|
1 | % | 1 | % | 1 | % | ||||||
Low risk / Special tracking - under observation
|
1 | % | 3 | % | 5 | % | ||||||
Special tracking - under negotiation or with refinancing agreements (2)
|
1 | % | 6 | % | 12 | % | ||||||
Medium risk / Problem
|
1 | % | 12 | % | 25 | % | ||||||
High risk / High risk of insolvency
|
1 | % | 25 | % (3) | 50 | % (3) | ||||||
Irrecoverable
|
1 | % | 50 | % | 100 | % | ||||||
Irrecoverable for technical decision
|
1 | % | 100 | % (1) | 100 | % (1) | ||||||
Additional loans (3)
|
1 | % | 1 | % | 1 | % |
(1)
|
The classification of a debtor under this category will require a loan loss provision of 100% of any financings, such as rollovers, extensions and express or implied waits, that may be granted after 90 days have elapsed since the day following the announcement by the Central Bank of the data base that includes the debtor. The presence of preferred guarantees does not affect this obligation.
|
(2)
|
The entity has not yet classified its debtors in the “Special tracking -under negotiation or with refinancing agreements” category.
|
(3)
|
Extensions of credit that do not surpass the result of applying the percentages indicated below over the balance of the existing debt on the day prior to the extension of the additional credit:
|
Irrecoverable
|
10%
|
Difficult recovery / High risk of insolvency
|
20%
|
Deficient servicing / Problem
|
30%
|
Inadequate servicing / Potential risk
|
40%
|
(i)
|
Percentages of allowance until June 29, 2011.
|
§
|
Commercial, Consumer and Consumer-like Portfolio Clients in a Normal Situation:
|
Product
|
Provision Percentage
|
|
Foreign Trade
|
2.00
|
|
Corporate Bonds
|
||
Personal
|
||
Loans to Companies
|
||
Financial Loans
|
||
Negotiated Securities
|
||
Pledges
|
||
Checks
|
||
Credit Accounts
|
||
Credit Cards
|
2.50
|
|
Overdrafts
|
||
Mortgages
|
1.00
|
|
Other provisionable products
|
1.25
|
§
|
Consumer Portfolio Clients (other than normal):
|
Situation
|
Category
|
Without Preferred Guarantees
|
With Preferred Guarantees B
|
With Preferred Guarantees A
|
|||||||||||
(in percentages)
|
|||||||||||||||
2 |
Low Risk
|
5 | 3 | 1 | |||||||||||
3 |
Medium Risk
|
100 | (*) | 12 | 1 | ||||||||||
4 |
High Risk
|
100 | (*) | 25 | 1 | ||||||||||
5 |
Irrecoverable
|
100 | 50 | 1 | |||||||||||
6 |
Irrecoverable for Technical Reasons
|
100 | 100 | 1 |
(*)
|
In the event of clients classified under the current situations by the mandatory reclassification process, the applicable provision percentage will be 95%.
|
§
|
Consumer-like Portfolio Clients (other than normal):
|
Situation
|
Category
|
Without Preferred Guarantees
|
With Preferred Guarantees B
|
With Preferred Guarantees A
|
|||||||||||
(in percentages)
|
|||||||||||||||
2 |
Low Risk
|
5 | 3 | 1 | |||||||||||
3 |
Medium Risk
|
100 | (*) | 12 | 1 | ||||||||||
4 |
High Risk
|
100 | (*) | 25 | 1 | ||||||||||
5 |
Irrecoverable
|
100 | 50 | 1 | |||||||||||
6 |
Irrecoverable for Technical Reasons
|
100 | 100 | 1 |
(*)
|
In the event of clients classified under the current situations by the mandatory reclassification process, the applicable provision percentage will be 95%.
|
§
|
Commercial Clients Portfolio (other than normal):
|
Situation
|
Category
|
Without Preferred Guarantees
|
With Preferred Guarantees B
|
With Preferred Guarantees A
|
|||||||||||
(in percentages)
|
|||||||||||||||
2.a. |
Under Observation
|
5 | 3 | 1 | |||||||||||
2.b. |
Under Negotiation
|
12 | 6 | 1 | |||||||||||
3 |
With Problems
|
25 | 12 | 1 | |||||||||||
4 |
High Risk of Insolvency
|
50 | 25 | 1 | |||||||||||
5 |
Irrecoverable
|
100 | 50 | 1 | |||||||||||
6 |
Irrecoverable for Technical Reasons
|
100 | 100 | 1 |
(ii)
|
As of June 21, 2011 the Technical Operations Committee approved the modification of the percentages of allowance for clients who were in Normal Situation. The changes became effective on June 30, 2011 and are summarized in the table below:
|
Product
|
Commercial
|
Consumer-like
|
Consumer
|
|||
Overdrafts
|
||||||
Negotiated Securities
|
||||||
Pledges
|
||||||
Personal
|
||||||
Credit Accounts
|
||||||
Checks
|
1.50
|
1.50
|
2.00
|
|||
Credit Cards
|
||||||
Corporate Bonds
|
||||||
Foreign Trade
|
||||||
Loans to Companies
|
||||||
Financial Loans
|
||||||
Mortgages
|
1.00
|
1.00
|
1.00
|
|||
Other provisionable products
|
1.25
|
1.25
|
1.25
|
(iii)
|
As of December 15, 2011 the Risk Management Committee (formerly Technical Operations Committee) approved the modification of the percentages of allowance for clients who were in Normal Situation. The changes became effective on December 30, 2011 and are summarized in the table below:
|
Product
|
Commercial
|
Consumer-like
|
Consumer
|
|||
Overdrafts
|
||||||
Negotiated Securities
|
||||||
Pledges
|
||||||
Personal
|
||||||
Credit Accounts
|
||||||
Checks
|
1.25
|
1.25
|
2.00
|
|||
Credit Cards
|
||||||
Corporate Bonds
|
||||||
Foreign Trade
|
||||||
Loans to Companies
|
||||||
Financial Loans
|
||||||
Mortgages
|
1.00
|
1,00
|
1.00
|
|||
Other provisionable products
|
1.25
|
1.25
|
1.25
|
Product
|
Commercial
|
Consumer-like
|
Consumer
|
|||
Overdrafts
|
||||||
Negotiated Securities
|
||||||
Pledges
|
||||||
Personal
|
||||||
Credit Accounts
|
||||||
Checks
|
1.00
|
1.00
|
1.75
|
|||
Credit Cards
|
||||||
Corporate Bonds
|
||||||
Foreign Trade
|
||||||
Loans to Companies
|
||||||
Financial Loans
|
||||||
Mortgages
|
1.00
|
1.00
|
1.00
|
|||
Other provisionable products
|
1.00
|
1.00
|
1.00
|
|
§
|
Any time the Central Bank modifies the definition of its borrower classifications;
|
|
§
|
Any time another bank downgrades a borrower whose loan standings are greater than 10% of the total loans outstanding in the Argentine financial system;
|
|
§
|
Any time a credit rating agency downgrades by more than one category the rating assigned to bonds issued by such borrower;
|
|
§
|
If the Central Bank requires it as a result of an inspection; and
|
|
§
|
In case of discrepancy by more than one level between the rating given by the financial entity and those granted by at least another two financial entities or trusts in categories below that assigned by it, and whose credits as a whole represent at least 20% and are below 40% of the total amount informed by all creditors, as per the latest information available at the Debtors Department of the financial system”.
|
December 31,
|
||||||||||||||||||||||||
2013
|
%
|
2012
|
%
|
2011 (1)
|
%
|
|||||||||||||||||||
(in thousands of pesos, except percentages)
|
||||||||||||||||||||||||
Loan Portfolio Categories
|
||||||||||||||||||||||||
Normal
|
36,677,132 | 98.62 | % | 28,660,468 | 98.77 | % | 22,937,081 | 99.11 | % | |||||||||||||||
Low risk / Special tracking
|
229,270 | 0.62 | % | 168,917 | 0.58 | % | 99,514 | 0.43 | % | |||||||||||||||
Medium risk / Problem
|
138,687 | 0.37 | % | 96,211 | 0.33 | % | 54,568 | 0.24 | % | |||||||||||||||
High risk / High risk of insolvency
|
106,622 | 0.29 | % | 72,974 | 0.25 | % | 39,981 | 0.17 | % | |||||||||||||||
Irrecoverable
|
38,811 | 0.10 | % | 18,556 | 0.06 | % | 10,694 | 0.05 | % | |||||||||||||||
Irrecoverable for technical decision
|
134 | — | 162 | — | 166 | — | ||||||||||||||||||
Total
|
37,190,656 | 100.00 | % | 29,017,288 | 100.00 | % | 23,142,004 | 100.00 | % |
(1)
|
See Note 3.3. to our Consolidated Financial Statements.
|
December 31,
|
||||||||||||||||||||||||||||||||||||||||
2013
|
2012
|
2011 (2)
|
2010
|
2009
|
||||||||||||||||||||||||||||||||||||
Total
|
%
|
Total
|
%
|
Total
|
%
|
Total
|
%
|
Total
|
%
|
|||||||||||||||||||||||||||||||
(in thousands of pesos, except percentages) (1)
|
||||||||||||||||||||||||||||||||||||||||
Normal (Consumer)
|
16,527,979 | 97.43 | % | 12,067,720 | 97.47 | % | 9,271,567 | 98.16 | % | 6,411,481 | 98.18 | % | 4,417,993 | 96.47 | % | |||||||||||||||||||||||||
Normal (Commercial)
|
20,149,153 | 99.61 | % | 16,592,748 | 99.73 | % | 13,665,514 | 99.77 | % | 10,529,060 | 99.65 | % | 7,460,075 | 99.33 | % | |||||||||||||||||||||||||
36,677,132 | 98.62 | % | 28,660,468 | 98.77 | % | 22,937,081 | 99.11 | % | 16,940,541 | 99.09 | % | 11,878,068 | 98.25 | % | ||||||||||||||||||||||||||
Low risk (Consumer)
|
202,832 | 1.20 | % | 151,296 | 1.22 | % | 81,563 | 0.86 | % | 50,854 | 0.78 | % | 54,838 | 1.20 | % | |||||||||||||||||||||||||
Special tracking (Commercial)
|
26,438 | 0.13 | % | 17,621 | 0.11 | % | 17,951 | 0.13 | % | 24,307 | 0.23 | % | 35,169 | 0.47 | % | |||||||||||||||||||||||||
229,270 | 0.62 | % | 168,917 | 0.58 | % | 99,514 | 0.43 | % | 75,161 | 0.44 | % | 90,007 | 0.74 | % | ||||||||||||||||||||||||||
Medium risk (Consumer)
|
132,417 | 0.78 | % | 90,692 | 0.73 | % | 51,628 | 0.55 | % | 31,016 | 0.47 | % | 42,503 | 0.93 | % | |||||||||||||||||||||||||
Problem (Commercial)
|
6,270 | 0.03 | % | 5,519 | 0.03 | % | 2,940 | 0.02 | % | 1,913 | 0.02 | % | 3,415 | 0.05 | % | |||||||||||||||||||||||||
138,687 | 0.37 | % | 96,211 | 0.33 | % | 54,568 | 0.24 | % | 32,929 | 0.19 | % | 45,918 | 0.38 | % | ||||||||||||||||||||||||||
High risk (Consumer)
|
72,717 | 0.43 | % | 55,616 | 0.45 | % | 32,389 | 0.34 | % | 27,252 | 0.42 | % | 58,605 | 1.28 | % | |||||||||||||||||||||||||
High risk of insolvency (Commercial)
|
33,905 | 0.17 | % | 17,358 | 0.10 | % | 7,592 | 0.06 | % | 7,862 | 0.07 | % | 6,328 | 0.08 | % | |||||||||||||||||||||||||
106,622 | 0.29 | % | 72,974 | 0.25 | % | 39,981 | 0.17 | % | 35,114 | 0.21 | % | 64,933 | 0.54 | % | ||||||||||||||||||||||||||
Irrecoverable (Consumer)
|
27,205 | 0.16 | % | 14,916 | 0.12 | % | 8,180 | 0.09 | % | 9,613 | 0.15 | % | 5,364 | 0.12 | % | |||||||||||||||||||||||||
Irrecoverable (Commercial)
|
11,606 | 0.06 | % | 3,640 | 0.02 | % | 2,514 | 0.02 | % | 2,539 | 0.02 | % | 5,028 | 0.07 | % | |||||||||||||||||||||||||
38,811 | 0.10 | % | 18,556 | 0.06 | % | 10,694 | 0.05 | % | 12,152 | 0.07 | % | 10,392 | 0.09 | % | ||||||||||||||||||||||||||
Irrecoverable for technical decision (Consumer)
|
134 | — | 162 | — | 165 | — | 120 | — | 98 | — | ||||||||||||||||||||||||||||||
Irrecoverable for technical decision (Commercial)
|
— | — | — | — | 1 | — | 62 | — | 159 | — | ||||||||||||||||||||||||||||||
134 | — | 162 | — | 166 | — | 182 | — | 257 | — | |||||||||||||||||||||||||||||||
Total consumer loans
|
16,963,284 | 100.00 | % | 12,380,402 | 100.00 | % | 9,445,492 | 100.00 | % | 6,530,336 | 100.00 | % | 4,579,401 | 100.00 | % | |||||||||||||||||||||||||
Total commercial loans
|
20,227,372 | 100.00 | % | 16,636,886 | 100.00 | % | 13,696,512 | 100.00 | % | 10,565,743 | 100.00 | % | 7,510,174 | 100.00 | % | |||||||||||||||||||||||||
Total
|
37,190,656 | 100.00 | % | 29,017,288 | 100.00 | % | 23,142,004 | 100.00 | % | 17,096,079 | 100.00 | % | 12,089,575 | 100.00 | % |
(1)
|
Percentages for each category are of total consumer, commercial or total loans, as the context requires.
|
(2)
|
See Note 3.3. to our Consolidated Financial Statements.
|
December 31,
|
||||||||||||||||||||
2013
|
2012
|
2011
|
2010
|
2009
|
||||||||||||||||
(in thousands of pesos)
|
||||||||||||||||||||
Non-performing loans (1)
|
284,254 | 187,903 | 105,409 | 80,377 | 121,500 | |||||||||||||||
Total
|
284,254 | 187,903 | 105,409 | 80,377 | 121,500 | |||||||||||||||
With preferred guarantees
|
68,581 | 50,080 | 19,432 | 15,228 | 15,929 | |||||||||||||||
Unsecured
|
215,673 | 137,823 | 85,977 | 65,149 | 105,571 | |||||||||||||||
Total
|
284,254 | 187,903 | 105,409 | 80,377 | 121,500 | |||||||||||||||
(1)
|
Non-performing loans includes all loans to borrowers classified as “Medium Risk”, “Problem”, “High Risk”, “High Risk of Insolvency”, “Irrecoverable” and “Irrecoverable for Technical Decision” under the Central Bank loan classification system. Non-performing loans also include all loans contractually past due 90 days or more. At December 31, 2013, 2012, 2011, 2010 and 2009, non-performing loans include Ps161,588,Ps.114,515 thousand, Ps.64,688 thousand, Ps.46,538 thousand and Ps.91,671 thousand, respectively, of non-accrual loans.
|
December 31,
|
||||||||||||||||||||||||||||||||||||||||
2013
|
2012
|
2011
|
2010
|
2009
|
||||||||||||||||||||||||||||||||||||
Total
|
%
|
Total
|
%
|
Total
|
%
|
Total
|
%
|
Total
|
%
|
|||||||||||||||||||||||||||||||
(in thousands of pesos, except percentages)
|
||||||||||||||||||||||||||||||||||||||||
Agricultural and livestock
|
24,034 | 8.46 | % | 10,557 | 5.62 | % | 3,425 | 3.25 | % | 78 | 0.10 | % | 61 | 0.05 | % | |||||||||||||||||||||||||
Beverage
|
3 | — | 1 | — | 19 | 0.02 | % | 1 | — | — | — | |||||||||||||||||||||||||||||
Chemicals
|
115 | 0.04 | % | 9 | — | 921 | 0.87 | % | — | — | — | — | ||||||||||||||||||||||||||||
Construction
|
560 | 0.20 | % | 1,058 | 0.56 | % | 401 | 0.38 | % | 862 | 1.07 | % | 1,498 | 1.23 | % | |||||||||||||||||||||||||
Consumer
|
240,428 | 84.57 | % | 162,742 | 86.61 | % | 92,372 | 87.63 | % | 34,909 | 43.43 | % | 41,814 | 34.41 | % | |||||||||||||||||||||||||
Electrical machinery
|
8 | — | 230 | 0.12 | % | — | — | 3 | — | 16 | 0.01 | % | ||||||||||||||||||||||||||||
Financial sector
|
14 | — | 1 | — | 7 | 0.01 | % | 5 | 0.01 | % | — | — | ||||||||||||||||||||||||||||
Foodstuff
|
140 | 0.05 | % | 168 | 0.09 | % | 372 | 0.35 | % | 2 | — | 16 | 0.01 | % | ||||||||||||||||||||||||||
Government services
|
— | — | — | — | — | — | 1 | — | 1 | — | ||||||||||||||||||||||||||||||
Industrial metals
|
260 | 0.09 | % | 5 | — | 954 | 0.91 | % | — | — | 9 | 0.01 | % | |||||||||||||||||||||||||||
Leather and fur products
|
3 | — | 833 | 0.44 | % | 789 | 0.75 | % | — | — | 4 | — | ||||||||||||||||||||||||||||
Machinery and tools
|
10,177 | 3.58 | % | 9,462 | 5.04 | % | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Mining products
|
300 | 0.11 | % | 4 | — | 8 | 0.01 | % | 2 | — | — | — | ||||||||||||||||||||||||||||
Oil and carbon
|
3 | — | 1 | — | — | — | 81 | 0.10 | % | — | — | |||||||||||||||||||||||||||||
Others
|
14 | — | 11 | 0.01 | % | 1,511 | 1.43 | % | 33,257 | 41.38 | % | 64,826 | 53.35 | % | ||||||||||||||||||||||||||
Other manufacturing
|
894 | 0.31 | % | 40 | 0.02 | % | 45 | 0.04 | % | 56 | 0.07 | % | 1 | — | ||||||||||||||||||||||||||
Paper products
|
190 | 0.07 | % | 4 | — | 432 | 0.41 | % | — | — | — | — | ||||||||||||||||||||||||||||
Printer, publishers and related industries
|
165 | 0.06 | % | 231 | 0.12 | % | 229 | 0.22 | % | 3 | — | 8 | 0.01 | % | ||||||||||||||||||||||||||
Rubber products
|
— | — | — | — | — | — | — | — | 3 | — | ||||||||||||||||||||||||||||||
Retail trade
|
1,076 | 0.38 | % | 1,040 | 0.55 | % | 330 | 0.31 | % | 9,590 | 11.93 | % | 8,105 | 6.68 | % | |||||||||||||||||||||||||
Services
|
108 | 0.04 | % | 328 | 0.17 | % | 448 | 0.43 | % | 43 | 0.05 | % | 156 | 0.13 | % | |||||||||||||||||||||||||
Shoes, apparel and other textile products
|
— | — | — | — | — | — | 86 | 0.11 | % | 3 | — | |||||||||||||||||||||||||||||
Textile
|
6 | — | 342 | 0.18 | % | 2,126 | 2.02 | % | 4 | — | 1 | — | ||||||||||||||||||||||||||||
Tobacco
|
— | — | — | — | — | — | — | — | 5 | — | ||||||||||||||||||||||||||||||
Transportation material
|
336 | 0.12 | % | 192 | 0.10 | % | 9 | 0.01 | % | 1 | — | 7 | 0.01 | % | ||||||||||||||||||||||||||
Wholesale trade
|
5,419 | 1.92 | % | 644 | 0.34 | % | 820 | 0.79 | % | 1,387 | 1.74 | % | 4,966 | 4.10 | % | |||||||||||||||||||||||||
Wood products and cork
|
1 | — | — | — | 191 | 0.18 | % | 6 | 0.01 | % | — | — | ||||||||||||||||||||||||||||
Total
|
284,254 | 100.00 | 187,903 | 100.00 | % | 105,409 | 100.00 | % | 80,377 | 100.00 | % | 121,500 | 100.00 | % |
December 31,
|
||||||||||||||||||||
2013
|
2012
|
2011
|
2010
|
2009
|
||||||||||||||||
(in thousands of pesos, except percentages)
|
||||||||||||||||||||
Balance at the beginning of the year
|
523,857 | 444,973 | 396,227 | 337,686 | 196,489 | |||||||||||||||
Provisions for loan losses
|
456,267 | 259,181 | 134,199 | 178,800 | 244,800 | |||||||||||||||
Charge-offs (1)
|
(257,662 | ) | (180,297 | ) | (85,453 | ) | (120,259 | ) | (103,603 | ) | ||||||||||
Advances
|
— | (37,869 | ) | (9,668 | ) | (23,977 | ) | (32,520 | ) | |||||||||||
Consumer
|
(241,126 | ) | (119,112 | ) | (48,248 | ) | (72,849 | ) | (24,645 | ) | ||||||||||
Notes discounted and purchased
|
— | — | (21,230 | ) | (22,842 | ) | (26,451 | ) | ||||||||||||
Other
|
(16,536 | ) | (23,316 | ) | (6,307 | ) | (590 | ) | (19,987 | ) | ||||||||||
Balance at the end of year
|
722,462 | 523,857 | 444,973 | 396,227 | 337,686 | |||||||||||||||
Net charge-off / average loans
|
0.79 | % | 0.70 | % | 0.43 | % | 0.85 | % | 0.85 | % |
(1)
|
Charge-offs are not concentrated in any particular economic activity. Our management estimates that of the Ps.257.7 million charged-off in the fiscal year ended December 31, 2013, Ps.26.0 million or 10.08%, were related to corporate borrowers and Ps.231.7 million or 89.92%, were related to individual consumers. The variation between 2013 and 2012 is due to the increases in the ratio of arrears and doubtful loan portfolio. Of the Ps.180.3 million charged-off in the fiscal year ended December 31, 2012, Ps.23.0. million or 12.76%, were related to corporate borrowers and Ps.157.3 million or 87.24%, were related to individual consumers. The variation between 2012 and 2011 is due to the increases in the ratio of arrears and doubtful loan portfolio. Of the Ps.85.5 million charged-off in the fiscal year ended December 31, 2011, Ps.45.6 million or 53.36%, were related to corporate borrowers and Ps.39.9 million or 46.64%, were related to individual consumers. The lower volume of charge-offs in 2011 was due to the improvement in the quality of our credit portfolio during the years 2010 and 2011 which resulted in better severity ratios and lower volumes of delinquent debtors. This in turn led to a reduction in the volume of irrecoverable loans during the year 2011 and therefore to an attenuated fall in the volume of charge-offs. Of the Ps.120.3 million charged-off in the fiscal year ended December 31, 2010, Ps.77.3 million or 64.25%, were related to corporate borrowers and Ps.43.0 million or 35.75%, were related to individual consumers. Of the Ps.103.6 million charged-off in the fiscal year ended December 31, 2009, Ps.28.4 million or 27.45%, were related to corporate borrowers and Ps.75.2 million or 72.55%, were related to individual consumers. Charge-offs include reversal and applications.
|
December 31,
|
||||||||||||||||||||||||||||||||||||||||
2013
|
2012
|
2011
|
2010
|
2009
|
||||||||||||||||||||||||||||||||||||
Total
|
%
|
Total
|
%
|
Total
|
%
|
Total
|
%
|
Total
|
%
|
|||||||||||||||||||||||||||||||
(in thousands of pesos, except percentages)
|
||||||||||||||||||||||||||||||||||||||||
Advances
|
80,045 | 17.96 | % | 63,394 | 17.94 | % | 41,871 | 12.54 | % | 34,201 | 14.57 | % | 25,192 | 16.31 | % | |||||||||||||||||||||||||
Notes discounted and purchased
|
56,611 | 15.01 | % | 44,713 | 14.92 | % | 44,792 | 14.85 | % | 29,306 | 12.84 | % | 15,692 | 10.23 | % | |||||||||||||||||||||||||
Secured with mortgages
|
15,705 | 3.42 | % | 10,802 | 3.10 | % | 14,558 | 3.99 | % | 19,412 | 5.18 | % | 15,379 | 8.03 | % | |||||||||||||||||||||||||
Chattel mortgage
|
72,982 | 9.54 | % | 47,060 | 8.72 | % | 29,207 | 7.19 | % | 17,604 | 5.12 | % | 10,641 | 1.00 | % | |||||||||||||||||||||||||
Consumers loans
|
382,529 | 36.81 | % | 260,970 | 33.44 | % | 201,941 | 31.39 | % | 214,847 | 30.35 | % | 197,786 | 31.43 | % | |||||||||||||||||||||||||
Financial Loans
|
25,926 | 4.50 | % | 21,867 | 4.54 | % | 23,605 | 4.55 | % | 12,156 | 3.29 | % | 7,595 | 5.22 | % | |||||||||||||||||||||||||
Other loans to governmental sector
|
— | 0.02 | % | — | 0.03 | % | — | 0.11 | % | — | 3.97 | % | — | 1.12 | % | |||||||||||||||||||||||||
Other
|
88,664 | 12.74 | % | 75,051 | 17.31 | % | 88,999 | 25.38 | % | 68,701 | 24.68 | % | 65,402 | 26.66 | % | |||||||||||||||||||||||||
Total
|
722,462 | 100.00 | % | 523,857 | 100.00 | % | 444,973 | 100.00 | % | 396,227 | 100.00 | % | 337,686 | 100.00 | % |
December 31,
|
||||||||||||
2013
|
2012
|
2011
|
||||||||||
(in thousands of pesos)
|
||||||||||||
Deposits in domestic Bank’s offices
|
||||||||||||
Non-interest-bearing demand deposits
|
||||||||||||
Average
|
||||||||||||
Pesos
|
10,348,993 | 8,659,885 | 6,820,551 | |||||||||
Dollars
|
846,636 | 803,844 | 1,017,747 | |||||||||
Total
|
11,195,629 | 9,463,729 | 7,838,298 | |||||||||
Saving accounts
|
||||||||||||
Average
|
||||||||||||
Pesos
|
7,719,280 | 6,186,969 | 4,784,502 | |||||||||
Dollars
|
1,458,765 | 1,913,643 | 2,671,586 | |||||||||
Total
|
9,178,045 | 8,100,612 | 7,456,088 | |||||||||
Average real rate
|
||||||||||||
Pesos
|
(12.68 | )% | (11.43 | )% | (11.11 | )% | ||||||
Dollars
|
15.65 | % | 1.15 | % | (3.84 | )% | ||||||
Total
|
(8.17 | )% | (8.46 | )% | (8.51 | )% | ||||||
Time deposits
|
||||||||||||
Average
|
||||||||||||
Pesos
|
15,037,091 | 11,188,977 | 9,010,574 | |||||||||
Dollars
|
1,131,265 | 1,460,417 | 1,918,794 | |||||||||
Total
|
16,168,356 | 12,649,394 | 10,929,368 | |||||||||
Average real rate
|
||||||||||||
Pesos
|
0.93 | % | 0.50 | % | (0.81 | )% | ||||||
Dollars
|
15.89 | % | 1.32 | % | (3.69 | )% | ||||||
Total
|
1.98 | % | 0.59 | % | (1.32 | )% |
Maturing
|
||||||||||||||||||||
Total
|
Within 3
months
|
After 3 but
within 6 months
|
After 6 but
within 12
months
|
After 12 months
|
||||||||||||||||
(in thousands of pesos)
|
||||||||||||||||||||
Checking
|
12,031,221 | 12,031,221 | — | — | — | |||||||||||||||
Savings
|
11,902,594 | 11,902,594 | — | — | — | |||||||||||||||
Time deposits
|
18,892,386 | 18,224,859 | 555,964 | 108,285 | 3,278 | |||||||||||||||
Investment accounts
|
4,027 | 1,743 | 2,284 | — | — | |||||||||||||||
Other
|
929,237 | 919,542 | 1,314 | 8,381 | — | |||||||||||||||
Total
|
43,759,465 | 43,079,959 | 559,562 | 116,666 | 3,278 |
Maturing,
|
||||||||||||||||||||
Total
|
Within 3
months
|
After 3 but
within 6 months
|
After 6 but
within 12
months
|
After 12 months
|
||||||||||||||||
(in thousands of pesos)
|
||||||||||||||||||||
Domestic offices
|
10,045,934 | 9,806,166 | 187,927 | 46,134 | 2,708 | |||||||||||||||
Total
|
10,045,934 | 9,806,166 | 187,927 | 46,134 | 2,708 |
December 31,
|
||||||||||||
2013
|
2012
|
2011
|
||||||||||
(in thousands of pesos, except percentages)
|
||||||||||||
Net income
|
2,024,244 | 1,263,679 | 1,005,577 | |||||||||
Average total assets (1)
|
51,654,102 | 41,895,112 | 35,792,946 | |||||||||
Average stockholders’ equity (1)
|
6,144,058 | 4,500,097 | 3,807,586 | |||||||||
Stockholders’ equity at the end of the fiscal year
|
7,156,180 | 5,131,936 | 3,868,257 | |||||||||
Net income as a percentage of:
|
||||||||||||
Average total assets
|
3.92 | % | 3.02 | % | 2.81 | % | ||||||
Average stockholders’ equity
|
32.95 | % | 28.08 | % | 26.41 | % | ||||||
Declared dividends (2)
|
28,800 | — | — | |||||||||
Dividend payout ratio (3)
|
1.42 | % | — | — | ||||||||
Average stockholders’ equity as a percentage of average total assets
|
11.89 | % | 10.74 | % | 10.64 | % |
(1)
|
Computed as the average of fiscal year-beginning and fiscal year-ending balances.
|
(2)
|
For the fiscal years ended December 31, 2013, the dividends in cash authorized at the Ordinary and Extraordinary Shareholders’ Meeting on April 10, 2014 were Ps.28.8 million (see Note 14.b) to the Consolidated Financial Statements). For the fiscal year ended December 31, 2012 and 2011, the Bank decided not to declare and distribute dividends as result of the issuance of Communications “A” 5272 and 5273 of the Central Bank (see “Item 8. Financial Information—Dividends”).
|
(3)
|
Declared dividends stated as percentage of net income. Since April 2002, the Central Bank had suspended the payment of dividends. As of June 2, 2004, financial institutions that are allowed to make distributions will have no effect on the prior authorization of the Central Bank provided that certain conditions are met. See “Item 8. Financial Information—Dividends”.
|
December 31,
|
||||||||||||||||||||||||
2013
|
2012
|
2011
|
||||||||||||||||||||||
Amount
|
Weighted Average
Interest
Rate
|
Amount
|
Weighted Average
Interest
Rate
|
Amount
|
Weighted Average
Interest
Rate
|
|||||||||||||||||||
(in thousands of pesos, except percentages)
|
||||||||||||||||||||||||
Total amount outstanding at the end of the reported period
|
4,082,688 | 7.2 | % | 3,133,360 | 5.6 | % | 3,998,286 | 4.0 | % | |||||||||||||||
Average during year
|
4,350,246 | 16.9 | % | 3,346,909 | 10.8 | % | 3,135,587 | 13.9 | % | |||||||||||||||
Maximum month-end balance
|
6,092,795 | 3,644,184 | 3,998,286 |
|
§
|
Except by express provision to the contrary established by-law, the Central Bank will not be affected by any regulations of a general character which may have been or shall have been enacted with reference to Public Administration bodies and which may introduce limitations to the authority or powers of the Central Bank as set forth in its own charter.
|
|
§
|
The Central Bank is empowered to make temporary advances to the Government up to an amount equivalent to 12% of the monetary base, which for this purpose includes amounts constituted by the monetary circulation plus the sight deposits of the financial institutions with the Central Bank, in current account or in special accounts. It may also grant advances up to an amount not exceeding 10% of the cash resources obtained by the Government in the past twelve months. At no time may the amount granted as temporary advances, excluding those exclusively allocated to the payment of obligations with the multilateral credit institutions, exceed 12% of the monetary base. All advances so granted must be reimbursed within the next twelve months; should any of these advances remain unpaid after its due date, it will not be possible to use these powers again until all owed amounts shall have been reimbursed.
|
|
§
|
The validity of Articles 44, 46 paragraph (c), 47 and 48 of the Central Bank charter, regarding the powers and authority of the Superintendency, is reestablished in terms of the text approved as Article 1 of Law Nr. 24,144.
|
|
§
|
A temporary regulation was introduced, not applicable any longer, authorizing the Central Bank to: (i) provide assistance to financial institutions with liquidity and/or solvency problems, including those undergoing restructuring by resolution of the Central Bank in terms of Article 35 bis of the Financial Institutions Law; and (ii) authorize the integration of the reserve requirements for financial institutions with financial assets other than cash, in the form of sight deposits with the Central Bank or in foreign currency accounts as per Article 28 of the Central Bank charter.
|
|
§
|
Reserves exceeding 100% of the monetary base may be allocated to the payment of obligations assumed with international financial entities.
|
|
§
|
Functions and powers of the Central Bank:
|
|
-
|
Purpose of the Central Bank. Until Law Nr. 26,739 was enacted, according to the Charter, the “primary and fundamental purpose” of the entity was to “preserve the value of the currency”. Following Law Nr. 26,739, the Central Bank will have multiple purposes, including “promoting currency stability, financial stability, employment and economic development with social equity”.
|
|
-
|
Relationship of the Central Bank with the Executive Branch and the Congress. Under the Charter, the Central Bank remains a “self-governed entity”, and it remain in effect that: (i) in the exercise of its powers and faculties, the Central Bank shall not be subject to the instructions of the Executive Branch, and (ii) the Central Bank may not enter into any obligation that implies a restriction or a delegation of its powers, without Congress’ express authorization. However, the Charter provides that the Central Bank’s purpose must be fulfilled “within the framework of the policies set by the Federal Government”.
|
|
-
|
Obligations and powers of the Central Bank related to economic information. The amendments to the Charter limit the ability of the Central Bank to supply economic information. In particular, (i) the requirement to report the expected rate of inflation for each year; (ii) the publication of statistics regarding the balances of payment and the national accounts of the Argentine Republic; and (iii) the requirement that the entity’s financial statements reflect the amount and composition of the reserves and of the monetary base have been removed from the Charter.
|
|
-
|
Functions and powers of the Central Bank. New powers have been vested in the Central Bank, including: (i) to regulate the amount of money and the interest rates, and direct credit policies; (ii) to regulate payment systems, liquidating and clearing houses, fund remittance entities, and transportation of value companies; and (iii) to protect the rights of consumers of financial services and fair competition within the financial system.
|
|
-
|
Powers of the Central Bank’s President. The amendments strengthen the powers of the President of the Central Bank’s board of directors. In this respect: (i) the Superintendency (which will no longer be a deconcentrated entity) is now under the President’s supervision; (ii) the President is empowered to operate directly in the currency and foreign exchange markets (formerly, these powers were vested in the Central Bank’s board of directors), and (iii) the President’s powers in emergency situations are increased.
|
|
-
|
Powers of the Central Bank’s board of directors. New regulatory powers are expressly conferred to the board, such as: (i) to establish the information and accounting regime for the entities subject to the Central Bank’s supervision; (ii) to regulate credit conditions and policies; (iii) to enact rules that preserve competition in the financial market, and (iv) to regulate the obtention (through negotiable instruments or otherwise) by financial institutions of foreign currency funds.
|
|
§
|
Financing of the Federal Government:
|
|
-
|
“Temporary Advances”. The amendment of the Charter significantly increases the Central Bank’s ability to grant “temporary advances” to the Federal Government.
|
|
-
|
Determination and application of the “freely available” reserves. The amendments to the Convertibility Law abrogated the requirement that the Central Bank’s reserves must underpin up to 100% of the monetary base.
|
|
-
|
Argentine Fund for Indebtedness Reduction. This Fund was created through Decree Nr. 298/10 in order to apply “freely available” reserves of the Central Bank to the payment of sovereign debt held by private creditors. This Fund is composed by the “freely available” reserves allocated for each fiscal year (for 2012, it amounts to almost US$5.7 billion). Law Nr. 26,739 provides that this Fund will continue to operate until the purpose for which it was created has been fulfilled.
|
|
§
|
financial statements and other quarterly and annual reports reflecting in consolidated form the transactions of the financial entity, its local and foreign branches and its local and foreign “significant subsidiaries” (as defined below); and
|
|
§
|
financial statements and other quarterly and annual reports reflecting in consolidated form the transactions of the financial entity, its local and foreign branches, its local and foreign “significant subsidiaries” (as defined below) or entities or companies in the country and abroad where the financial entity has possession or control over more than 12.5% of the shares entitled to vote, in those cases determined by the Superintendency, and those companies not subject to consolidated supervision which the financial entity may have chosen to include with the prior approval of the Superintendency.
|
|
§
|
A “subsidiary” of a local financial entity is any local or foreign financial entity or company in any of the following positions:
|
|
(1)
|
the local financial entity has direct or indirect control of more than 50% of the total votes of any instrument with voting rights in such entity or company,
|
|
(2)
|
the local financial entity has direct or indirect control as to determining by itself the composition of most of the management bodies of such entity or company, or
|
|
(3)
|
a majority of the directors of the local financial entity is also a majority of the directors of such entity or company.
|
|
§
|
A “significant subsidiary” is any subsidiary:
|
|
(1)
|
whose assets, possible commitments and other transactions recorded in memorandum accounts represent 10% or more of the RPC of the local financial entity and its subsidiaries abroad; or
|
|
(2)
|
whose results of operations corresponding to the current fiscal year represent 10% or more of the results of operations for the current fiscal year of the local financial entity and its subsidiaries abroad.
|
|
(i)
|
current accounts in Pesos of the financial entities with the Central Bank;
|
|
(ii)
|
minimum cash accounts of the financial entities with the Central Bank, denominated in U.S. dollars or other foreign currencies;
|
|
(iii)
|
special guarantee accounts in favor of electronic clearing houses;
|
|
(iv)
|
current accounts of non-banking financial institutions;
|
|
(v)
|
special current accounts (opened in the Central Bank) in connection with the attention of pension benefits; and
|
|
(vi)
|
minimum cash account of public securities and instruments issued by the Central Bank, at market value and of the same type.
|
Period
|
admitted %
|
|
September 2012
|
100
|
|
October and November 2012
|
75
|
|
From December 2012 to February 2013
|
25
|
|
As of March 2013
|
0
|
Participation of the financing to
MiPyMEs in the total financing granted by the entity to the non-financial private sector.
In %
|
Deduction (on the total of items included in pesos).
In %
|
|
Less than 4
|
0.00
|
|
Between 4 and less than 6
|
0.25
|
|
Between 6 and less than 8
|
0.50
|
|
Between 8 and less than 10
|
0.75
|
|
Between 10 and less than 12
|
1.00
|
|
Between 12 and less than 14
|
1.25
|
|
Between 14 and less than 16
|
1.50
|
|
Between 16 and less than 18
|
1.75
|
|
Between 18 and less than 20
|
2.00
|
|
Between 20 and less than 22
|
2.25
|
|
Between 22 and less than 24
|
2.50
|
Participation of the financing to
MiPyMEs in the total financing granted by the entity to the non-financial private sector.
In %
|
Deduction (on the total of items included in pesos).
In %
|
|
Between 24 and less than 26
|
2.65
|
|
Between 26 and less than 28
|
2.80
|
|
Between 28 and less than 30
|
2.90
|
|
30 or more
|
3.00
|
Jan /14
|
||||||||
Type of Account | I |
II to VI
|
||||||
Current accounts and sight accounts open in Credit Unions
|
17 | % | 15 | % | ||||
Other demand deposits, basic account and universal free account
|
||||||||
In pesos
|
17 | % | 15 | % | ||||
In foreign currency
|
30 | % | 30 | % | ||||
Savings accounts
|
||||||||
In pesos
|
17 | % | 15 | % | ||||
In foreign currency
|
30 | % | 30 | % | ||||
Unused balances from current account advances effected
|
17 | % | 15 | % | ||||
Current accounts of financial institutions
|
100 | % | 100 | % | ||||
Fixed-term deposits, bonds for acceptances (including liabilities for the sale or assignment of credits to subjects other than financial institutions), reverse repurchases, bonds and stock-exchange reverse swaps, investments at constant term, with advanced cancellation or renewal option:
|
||||||||
In pesos
|
||||||||
Up to 29 days
|
13 | % | 12 | % | ||||
From 30 to 59 days
|
10 | % | 9 | % | ||||
From 60 to 89 days
|
6 | % | 5 | % | ||||
From 90 to 179 days
|
1 | % | 0 | % | ||||
From 180 to 365 days
|
0 | % | 0 | % | ||||
In foreign currency
|
||||||||
Up to 29 days
|
30 | % | 30 | % | ||||
From 30 to 59 days
|
23 | % | 23 | % | ||||
From 60 to 89 days
|
15 | % | 15 | % | ||||
From 90 to 179 days
|
8 | % | 8 | % | ||||
From 180 to 365 days
|
3 | % | 3 | % | ||||
More than 365 days
|
0 | % | 0 | % | ||||
Bonds for foreign financial lines
|
0 | % | 0 | % |
Jan /14
|
||||||||
Type of Account | I |
II to VI
|
||||||
Debt securities (including corporate bonds)
|
||||||||
a) Debt issued as of January 1, 2002, including those from restructured bonds, as per their residual term:
|
||||||||
In pesos
|
||||||||
Up to 29 days
|
14 | % | 14 | % | ||||
From 30 to 59
|
11 | % | 11 | % | ||||
From 60 to 89 days
|
7 | % | 7 | % | ||||
From 90 to 179 days
|
2 | % | 2 | % | ||||
From 180 to 365 days
|
0 | % | 0 | % | ||||
In foreign currency
|
||||||||
Up to 29 days
|
30 | % | 30 | % | ||||
From 30 to 59
|
23 | % | 23 | % | ||||
From 60 to 89 days
|
15 | % | 15 | % | ||||
From 90 to 179 days
|
8 | % | 8 | % | ||||
From 180 to 365 days
|
3 | % | 3 | % | ||||
More than 365 days
|
0 | % | 0 | % | ||||
b) Others
|
0 | % | 0 | % | ||||
Bonds with the Trust Fund for Assistance to Financial and Insurance Institutions
|
0 | % | 0 | % | ||||
Sight and term deposits made by judicial order with funds originated in legal actions currently under course and their immobilized balances
|
||||||||
In pesos
|
10 | % | 10 | % | ||||
In foreign currency
|
15 | % | 15 | % | ||||
Mutual Funds deposits (except mutual funds sight deposits made according to CNV rules)
|
||||||||
In pesos
|
19 | % | 19 | % | ||||
In foreign currency
|
30 | % | 30 | % | ||||
Special deposits related to funds revenues from abroad – Decree Nr. 616/05
|
100 | % | 100 | % | ||||
Deposits and other demand obligations in pesos, whose return exceeds 15% BADLAR rate of private financial institutions’ average
|
— | — | ||||||
Term investments instrumented by nominative non-transferable certificates in pesos corresponding to public sector security holders, entitled to exercise the prepayment option within a term not greater than 30 days after constitution thereof
|
15 | % | 14 | % |
|
§
|
100% reserve for any defect in the application of resources in foreign currency for the month in respect to which the calculation of the minimum cash requirement is made. See “Item 4. Information on the Company—The Argentine Banking System and its Regulatory Framework—Lending Capacity Provided by Deposits in Foreign Currency”.
|
|
(1)
|
Prefinancing and financing of exports, carried out directly or through agents, consignees or other proxies acting for the account and order of the owner of the goods. It also comprises operations to finance suppliers of services to be directly exported. This comprises those operations for the purpose of financing working capital and/or the acquisition of objects related to the production of goods to be exported, provided the flow of income in foreign currency deriving from such exports is sufficient to settle such transactions.
|
|
(2)
|
Financing transactions granted to goods, producers or processors, provided they have firm sale contracts for the goods to be produced for an exporter, with prices fixed or to be fixed in a foreign currency (regardless of the currency in which the transaction is settled) and involving fungible goods with a regular and customary quotation in foreign currency which is widely known and easily accessed by the public in local or international markets. In all cases of term purchase and sale agreements for a price to be fixed, such price must be in direct relation with the price of such products in local markets. It also comprises transactions to finance suppliers of services directly used in the process of exporting goods.
|
|
(3)
|
Financing transactions for producers of goods to be exported, either in the same condition or as part of other goods, by third-party purchasers, provided they have total pledges or guarantees in foreign currency from such third parties.
|
|
(4)
|
Financing of investment projects, working capital and/or the acquisition of any kind of goods, including temporary importation of commodities, which may increase or be related to the production of goods for exportation. Even though income from exporter companies does not totally derive from sales abroad, financing may only be allocated if the income flow deriving from exportation is sufficient.
It comprises those transactions where financing is granted via the Bank’s participation in “syndicated loans”, be they with local or foreign entities.
|
|
(5)
|
Financing to clients from the commercial portfolio and of a commercial nature who receive treatment for their consumption or housing credits –under the provisions of the “Debtors’ Classification” regulations–destined for the importation of capital goods (“BK” according to the Common Nomenclature for the MERCOSUR attached as Annex I to Decree Nr. 690/02 and other complementary provisions) which will result in an increase in the production of goods destined for domestic consumption.
|
|
(6)
|
Debt securities or certificates of participation in financial trusts -including other collection rights specifically acknowledged in the trust agreement to be constituted within the within the framework of loans established by multilateral credit institutions of which Argentina is a party whose assets under management are loans originated by financial entities under the terms described in points (1) through (3) above and the first paragraph of point (4).
|
|
(7)
|
Debt securities or certificates of participation in financial trusts, issued in foreign currency and with public offer authorized by the CNV, whose assets under management are documents guaranteed by mutual guarantee companies or by provincial funds created for the same purpose, and admitted by the Central Bank, acquired by the trustee for the purpose of financing transactions under the terms and conditions described in points (1) through (3) above and the first paragraph of point (4).
|
|
(8)
|
Financing transactions for purposes other than mentioned in points (1) to (3) above and the first paragraph of point (4), included in the credit program “IDB Loan Nr. 1192/OC-AR”, without exceeding 10% of the lending capacity.
|
|
(9)
|
Interfinancing loans (any interfinancing loans granted with such resources must be identified).
|
|
(10)
|
Internal bills issued by the Central Bank denominated in US dollars.
|
|
§
|
make loans in pesos and foreign currency,
|
|
§
|
receive deposits in pesos and foreign currency,
|
|
§
|
issue guarantees,
|
|
§
|
underwrite, place and broker equity and debt securities in the over-the-counter market, subject to the prior approval of the CNV,
|
|
§
|
conduct transactions in foreign currency,
|
|
§
|
act as fiduciary, and
|
|
§
|
issue credit cards.
|
|
§
|
the prohibition of a bank from pledging its shares,
|
|
§
|
restriction on incurring any liens upon its properties without prior approval from the Central Bank, and
|
|
§
|
limitations on transactions with directors or officers, including any company or person related to such directors or officers, on terms more favorable than those normally provided to clients. See “Item 4. Information on the Company—The Argentine Banking System and its Regulatory Framework—Lending and Investment Limits—Related Persons” below in this section.
|
|
-
|
Pillar 1 provides supervisors with a number of options to quantify capital requirements for credit, operational and market risk, and define which components of an institution’s net worth are eligible to satisfy those requirements.
|
|
-
|
Pillar 2 describes the process to be followed by institutions to evaluate the sufficiency of their capital in relation to their risk profile.
|
|
-
|
Pillar 3 establishes minimum information requirements that financial institutions must provide on the adequacy of their capital.
|
|
§
|
Minimum Capital
|
|
-
|
Core capital (Tier 1), and
|
|
-
|
Supplementary capital (Tier 2).
|
|
-
|
4.5% for common equity (for which the qualifying criteria are more restrictive than for Basel II),
|
|
-
|
6% for Tier 1 capital, and
|
|
-
|
8% for total capital.
|
|
§
|
Capital Conservation Buffer
|
|
§
|
Countercyclical Capital Buffer
|
|
§
|
Leverage Ratio
|
|
§
|
Macroprudential Supervision
|
|
§
|
Net Stable Funding Ratio
|
|
§
|
Intensive Supervision of Systemically Important Institutions
|
|
§
|
Ordinary Capital Level 1:
|
|
a)
|
Corporate capital (excepting preferred shares);
|
|
b)
|
Non-capitalized contributions (excepting share premiums);
|
|
c)
|
Equity adjustments;
|
|
d)
|
Reserve (excepting the special reserve for debt instruments);
|
|
e)
|
Retained earnings;
|
|
f)
|
Other results (either positive or negative);
|
|
g)
|
Share premiums for instruments included in Ordinary Capital Level 1; and
|
|
h)
|
Third-party participations for those companies subject to consolidated supervision systems.
|
|
§
|
Additional Capital Level 1:
|
|
a)
|
Instruments issued by the financial entity and not included in Ordinary Capital Level 1;
|
|
b)
|
Share premiums for instruments included in Additional Capital Level 1;
|
|
c)
|
Instruments issued by subsidiaries in the hands of third parties not included in Ordinary Capital Level 1 for those companies subject to consolidated supervision systems.
|
|
a)
|
Instruments issued by the financial entity and not included in the Basic Net Equity;
|
|
b)
|
Share premiums for instruments included in the Complementary Net Equity;
|
|
c)
|
Allowances for loan losses from the portfolio of debtors classified as in “normal” situation which do not exceed 1.25% of the credit-risk-weighted assets.
|
|
d)
|
Instruments issued by subsidiaries in the hands of third parties not included in the Basic Net Equity for those companies subject to consolidated supervision systems.
|
|
§
|
Minimum basic capital, and
|
|
§
|
The sum of minimum capital required for credit risk, market risk and operational risk.
|
(a)
|
8% of the summation of credit-risk-weighted asset transactions without delivery against payment;
|
|
-
|
Within the “Cash and cash equivalents” item, the cash on hand, in transit (if the financial entity assumes the transportation risk and liability) and in automated teller machines (weighted at 0%); and the cash items in the process of being received (collectible cheques and drafts), cash in treasury transporting companies and cash in custody of financial entities (20%).
|
|
-
|
Exposure to governments and central banks (with weighters from 0% to 100%)
|
|
-
|
Exposure to Multilateral Development Banks (with weighters from 0% to 100%)
|
|
-
|
Exposure to financial entities in the country (with weighters from 20% to 100%)
|
|
-
|
Exposure to financial entities from abroad (100%).
|
|
-
|
Exposure to companies and other legal persons in the country and abroad –including foreign-exchange dealers, insurance companies, stock exchanges and local companies treated as part of the non-financial private sector (100%)
|
|
-
|
Exposures included in the retail portfolio (with weighters from 75% to 100%)
|
|
-
|
Mortgage-guaranteed financing, which, subject to certain conditions, has weighters between 35% and 100%
|
|
-
|
Loans more than 90 days in arrears (with weighters from 50% to 150%)
|
(b)
|
failed delivery-against-payment transactions; and
|
(c)
|
requirement for counterpart credit risk in transactions with over-the-counter derivatives
|
(i)
|
Cancellation of franchises granted for payment of the credit risk requirement
|
(ii)
|
Payment of the proportion of operational risk requirement not carried out by application of the schedule established in clause 10.3.2. of Section 10 “Temporary Provisions” of the regulations about “Minimum capitals for financial entities”.
|
(iii)
|
Reduction of the credit risk requirement on financing transactions granted by the entity as of the said date whose destination, currency and terms are as foreseen in clauses 3.1. and 3.3. of the regulations on the “Credit line for productive investment” (provided they shall have not been charged as minimum application under such system) and/or mortgage loans for families’ only and permanently inhabited houses, for the term of the financing transactions.
|
|
§
|
debt securities issued by the Federal Government and instruments of monetary regulation of the BCRA included in the list of volatilities recorded at fair value and quotas in common investment funds that invest in those securities; and
|
|
§
|
shares of capital stock of Argentine companies included in the Argentine stock market index (or “Merval Index”) and quotas in common investment funds that invest in those shares.
|
|
§
|
debt securities (including positions held in debt securities issued by foreign companies, sovereign securities issued by foreign governments and quotas in common investment funds; provided that, such securities and/or holdings are usually listed on a national securities exchange); and
|
|
§
|
shares (including positions held in shares of capital stock of foreign companies, quotas in common investment funds; provided that, such securities, holdings and/or indexes are usually listed on a national securities exchange). If any of the assets mentioned in this clause are listed in different stock markets in diverse foreign currencies, the listing price and foreign currency of the most representative stock market (in terms of the volume of transactions in the relevant asset) will be taken into consideration for purposes of these new capital requirements.
|
|
§
|
internal fraud;
|
|
§
|
external fraud;
|
|
§
|
employment practices and workplace safety;
|
|
§
|
clients, products and business practices;
|
|
§
|
damage to physical assets, resulting from acts of terrorism and vandalism, earthquakes, fire or flood;
|
|
§
|
business disruption and system failures; and
|
|
§
|
execution, delivery and process management.
|
|
1.
|
Identification and assessment: the identification process should consider both internal and external factors that could adversely affect the development of the processes and projections done according to the business strategies defined by the bank.
|
|
2.
|
Monitoring: an effective monitoring process is required, to quickly detect and correct deficiencies in the policies, processes and procedures for managing Operational Risk. In addition, the development of indicators should be analyzed to detect deficiencies and undertake corrective actions.
|
|
3.
|
Control and mitigation: financial entities must have an appropriate control system to ensure compliance with internal policies, and they should re-examine control and operational risk reduction strategies with at least an annual frequency in order to make the necessary adjustments.
|
|
(i)
|
financial and service income less financial and service charges, and
|
|
(ii)
|
other profits less other losses.
|
|
-
|
charges originated in the constitution of allowances, the cancellation of allowances from previous financial years and credits recovered in the financial year which were punished in previous years;
|
|
-
|
the result from participations in financial entities and in companies, to the extent that these may be items deductible from the computable equity liability;
|
|
-
|
extraordinary or irregular items –namely those originated in atypical and exceptional results occurred during the period, of infrequent occurrence in the past and not expected for the future–, including income from the collection or insurance (loss recoveries); and
|
|
-
|
results from the sale of items included in Section 2 of the regulations on “valuation of instruments of non-financial public sector debts and of monetary regulation issued by the BCRA".
|
|
§
|
temporary limitation on the amount of deposits a bank may accept;
|
|
§
|
institutional restrictions as per expansion capacity and dividends distribution in cash;
|
|
§
|
revocation of the license of a bank to conduct foreign exchange transactions; and, in some extreme cases;
|
|
§
|
revocation of the license of a bank to operate.
|
|
December 31, 2013
|
|||
|
(in millions of Pesos, except percentages)
|
|||
Basel Accord
|
||||
Total capital
|
7,206.2 | |||
Risk-weighted assets
|
70,855.1 | |||
Ratio of total capital to risk-weighted assets (1)
|
10.2 | % | ||
Required capital
|
5,668.4 | |||
Excess capital
|
1,537.8 | |||
Central Bank’s Rules (2)
|
||||
Total capital
|
7,080.2 | |||
Risk and Fixed weighted assets
|
36,577.7 | |||
Ratio of total capital to risk-weighted assets (3)
|
19.4 | % | ||
Required capital (4)
|
3,964.9 | |||
Excess capital
|
3,115.3 |
(1)
|
Under the risk-based capital requirements of the Basel Accord, the Bank would be required to maintain a minimum ratio of total capital to risk-weighted assets of 8%.
|
(2)
|
Calculated on a consolidated basis in accordance with Central Bank requirements.
|
(3)
|
Under the risk-based capital requirements of the Central Bank, we are required to maintain a minimum ratio of total capital to risk-weighted assets of 8%.
|
(4)
|
The Bank must maintain a surplus of minimum paid-in capital amounting to at least Ps.305.1 million, equivalent to 0.25% of the amount of values under custody for securities representing investments from pension funds, as well as in connection with its function as register of mortgage-backed bonds, invested in national public securities and other destinations authorized by the BCRA and guaranteed in favor of the given entity.
|
§
|
Fair value: includes government securities and monetary regulation instruments contemplated in the monthly list of volatilities or present value published by the BCRA, as well as debt instruments of trusts whose underlying assets are constituted by these assets.
|
§
|
Cost value increased according to their internal rate of return: comprising (i) government bonds received under the provisions of Articles 28 and 29 of Decree Nr. 905/02 and in Chapter II of Law Nr. 25,796, unless at February 28, 2011 and subsequently the entity decides to value them at market value; (ii) federal governmental loans issued by the Government under Decree Nr. 1387/01 and notes with similar conditions to the issuance of government securities; (iii) debt instruments (which have not been acquired in the secondary market) signed by the entities as of January 1, 2009 through an exchange, or payment in exchange for other debt instruments expressly admitted, unless at February 28, 2011 and subsequently the entity decides to value them at market value; (iv) monetary regulation instruments of the BCRA which are not covered in the list of volatilities published by that institution; (v) securities which are not covered in the list of volatilities published by the BCRA, not included in point (iii) above; (vi) public sector financing existing at March 31, 2003 (except securities and guarantees loans); (vii) other public sector financing after March 31, 2003; (viii) debt instruments of trusts whose underlying assets are constituted by one of the instruments listed in the preceding points; and (ix) securities that can be valued at fair value and the entity decides to value at cost increased according to their internal rate of return.
|
|
§
|
the creation of a registry of auditors;
|
|
§
|
the implementation of strict accounting procedures to be observed by auditors;
|
|
§
|
the payment of a guarantee of compliance by such auditors so as to induce them to fully comply with the procedures; and
|
|
§
|
the creation of a Central Bank division in charge of verifying the observance of the established regulations by the external auditors.
|
|
§
|
15% of the equivalent in dollars of their Bank’s RPC, as registered at the close of the month that is two months prior to the relevant month plus 5% of the total amount transacted with clients in the purchase and sale of foreign currencies in the month that is two months prior to the relevant month, and 2% of the total deposits at sight and at term locally constituted and payable in foreign bank notes (excluding deposits under custody), as registered at the close of the calendar month that is two months prior to the relevant month; and
|
|
§
|
a minimum equivalent to US$8,000,000, which may be increased according to the number of establishments devoted to foreign exchange transactions and by operations with holdings in foreign currencies other than the dollar or the Euro and other permitted transactions. BBVA Francés maintains the limit indicated in the immediately preceding bullet point.
|
|
§
|
gold and foreign currency resources available in the country;
|
|
§
|
gold and foreign currency resources available abroad;
|
|
§
|
foreign public and private securities;
|
|
§
|
cash or future foreign-exchange purchases pending settlement;
|
|
§
|
cash or future public and private security purchases pending settlement;
|
|
§
|
cash or future foreign-exchange sales pending settlement;
|
|
§
|
cash or future public and private security sales pending settlement; and
|
|
§
|
foreign-exchange holdings in the form of deposits and investments at any term in banks from abroad and all kinds of liquid investments abroad.
|
|
§
|
Negative global net position (liabilities exceeding assets), may not exceed 15% of the RPC, with the possibility of an additional 15% to the extent that the entity at the same time has recorded: (a) medium and long term financings in pesos to non-financial private sector under certain conditions for an amount equivalent to the increase of such limit and (b) an increase in the minimum capital requirement equivalent to the increase of the general limit of the global negative net position in foreign currency.
|
|
§
|
Positive global net position (assets exceeding liabilities), is the lesser of the following:
|
|
(1)
|
30% of the RPC, and
|
|
(2)
|
Own liquid resources.
|
|
§
|
Shares of local companies.
|
|
§
|
Various credits (including the net balance favorable to the given entity corresponding to the Tax on minimum presumed income or “TOMPI”).
|
|
§
|
Property for own use.
|
|
§
|
Various property items.
|
|
§
|
Organization and development expenses, undeductible of Basic Net Worth.
|
|
§
|
Goodwill.
|
|
§
|
Asset portfolio consists of any of the above items for which receivables are recorded, computed in their respective proportion.
|
|
§
|
Financing transactions for related clients.
|
|
§
|
any individual or entity controlling a bank, controlled by a bank or affiliated with a bank, as defined by the Central Bank;
|
|
§
|
any entity that both controls the bank and has common directors to the extent such directors, voting together, will constitute a simple majority of the boards of directors of the bank and such entity; or
|
|
§
|
in certain exceptional cases, any individual or entity that the Central Bank has determined to be in a position to adversely affect the financial condition of the bank.
|
|
§
|
holding or controlling, directly or indirectly, 25% of the voting stock of the controlled entity;
|
|
§
|
having held 50% or more of the voting stock of the controlled entity at the time of the last election of such entity’s board of directors;
|
|
§
|
any type of equity holding that creates the ability to vote or direct the vote so as to prevail on any issue considered at the controlled entity’s general shareholders’ meeting or meeting of the board of directors; or
|
|
§
|
when a person is determined by the board of directors of the Central Bank to be exercising any influence, directly or indirectly, on the management or policies of the bank.
|
|
-
|
By controlling relationship
|
|
1.
|
Local financial sector
|
|
|
|
Additional
|
|||||||
Lender entity | Borrowing entity | General |
Tranche I
|
Tranche II
|
Tranche III
|
|||||
CAMEL 1 (*)
|
100%
|
25% earmarked by the financial institution acquiring assistance to finance transactions that comply with certain conditions.
|
25% in the event of financing transactions with guarantee or assignment of credit portfolio where assignor is responsible provided the requirements of Tranche I are met.
|
—
|
||||||
CAMEL 1 to 3
|
CAMEL 2 (*)
|
20%
|
25% earmarked by the financial institution acquiring assistance to finance transactions that comply with certain conditions.
|
25% if the financing transactions involve guarantee or assignment of credit portfolio where assignor is responsible provided the requirements of Tranche I are met.
|
55% for financing transactions for an agreed initial term of up to 180 days.
|
|||||
CAMEL 3 (*)
|
10%
|
20% earmarked by the financial institution acquiring assistance to finance transactions that comply with certain conditions.
|
20% if the financing transactions involve guarantee or assignment of credit portfolio where assignor is responsible provided the requirements of Tranche I are met.
|
—
|
||||||
Not meet any of the above conditions
|
10%
|
—
|
—
|
—
|
||||||
CAMEL 4 or 5
|
0%
|
—
|
—
|
—
|
|
2.
|
Foreign financial sector
|
Lender entity
|
Borrowing entity
|
Maximum limits
|
||
CAMEL 1 to 3
|
To each foreign related bank:
|
|
||
- With “Investment Grade” classification |
10%
|
|||
- Without “Investment Grade” classification: | ||||
Financing without computable warranty |
5%
|
|||
Financing with/without computable warranty |
10%
|
|||
CAMEL 4 or 5 |
To each foreign related bank subject to consolidation and parent company:
|
|
||
- With “Investment Grade” classification |
10%
|
|||
- Without “Investment Grade” classification: | ||||
Financing without computable warranty |
5%
|
|||
Financing with/without computable warranty |
10%
|
|||
To each foreign related bank not subject to consolidation:
|
|
|||
- With “Investment Grade” classification |
10%
|
|||
- Without “Investment Grade” classification |
5%
|
|||
To each foreign related bank that does not meet any of the above conditions
|
0%
|
|
3.
|
Local complementary services companies
|
|
|
|
Additional
|
|||||||
Lender entity | Borrowing entity | General |
Tranche I
|
Tranche II
|
Tranche III
|
|||||
Stock exchange agent or other broker, leasing, factoring or temporary acquisition of participation in companies to sell the holdings afterwards (**)
|
100%
|
—
|
—
|
—
|
||||||
CAMEL 1
|
Debit/credit card issuers (**)
|
100%
|
25% earmarked by the financial institution acquiring assistance to finance transactions that comply with certain conditions.
|
25% in the event of financing transactions with guarantee or assignment of credit portfolio where assignor is responsible provided the requirements of Tranche I are met.
|
—
|
|||||
Not meet any of the above conditions
|
10%
|
—
|
—
|
—
|
||||||
CAMEL 2
|
Stock exchange agent or other broker, leasing, factoring or temporary acquisition of participation in companies to sell the holdings afterwards (**)
|
10%
|
90%
|
|
|
|
Additional
|
|||||||
Lender entity | Borrowing entity | General |
Tranche I
|
Tranche II
|
Tranche III
|
|||||
Debit/credit card issuers (**)
|
20%
|
25% earmarked by the financial institution acquiring assistance to finance transactions that comply with certain conditions.
|
25% if the financing transactions involve guarantee or assignment of credit portfolio where assignor is responsible provided the requirements of Tranche I are met.
|
55% for financing transactions for an agreed initial term of up to 180 days.
|
||||||
Not meet any of the above conditions
|
10%
|
—
|
—
|
—
|
||||||
CAMEL 3
|
Debit/credit card issuers (**)
|
10%
|
20% earmarked by the financial institution acquiring assistance to finance transactions that comply with certain conditions.
|
20% if the financing transactions involve guarantee or assignment of credit portfolio where assignor is responsible provided the requirements of Tranche I are met.
|
—
|
|||||
Not meet any of the above conditions
|
10%
|
—
|
—
|
—
|
||||||
CAMEL
|
Complementary services companies (**)
|
10%
|
—
|
—
|
—
|
|||||
4 or 5 |
Not meet any of the above conditions
|
0%
|
—
|
—
|
—
|
|
4.
|
Foreign complementary services companies
|
Lender entity
|
Borrowing entity
|
Maximum limits
|
||
CAMEL 1 to 3
|
To each complementary services related companies:
- Financing without computable warranty
- Financing with/without computable warranty
|
5%
10%
|
||
CAMEL 4 or 5
|
To each complementary services companies subject to consolidation with the lender:
- Financing without computable warranty
- Financing with/without computable warranty
|
5%
10%
|
||
To each complementary services related companies that do not meet any of the above conditions
|
0%
|
|
5.
|
Other clients vinculated by controlling relationship
|
Lender entity
|
Borrowing entity
|
Maximum limits
|
||
CAMEL 1 to 3
|
To each related borrower:
- Financing without computable warranty
- Financing with/without computable warranty
|
5%
10%
|
||
CAMEL 4 or 5
|
- To each related company (only equity investment) (***)
- To each related borrower that does not meet any of the above conditions
|
5%
0%
|
|
-
|
By personal relationship
|
Lender entity
|
Borrowing entity
|
Maximum limits
|
||
CAMEL 1 a 3
|
To each related borrower
|
5%
|
||
CAMEL 4 or 5
|
-To each related person to use exclusively for personal or family purposes
-To each related borrower that does not meet any of the above conditions
|
Ps.50.000
0%
|
|
§
|
the Federal Government;
|
|
§
|
provincial governments;
|
|
§
|
the city of Buenos Aires;
|
|
§
|
municipal governments;
|
|
§
|
central administration, ministries, departments and their decentralized and autonomous entities and other official bodies; and
|
|
§
|
trusts and trust funds whose final beneficiary or trustee, as determined by the respective contracts or applicable regulations, belongs to the non-financial public sector, including other trusts or trust funds where such sector is the final destination of the financed works.
|
|
§
|
do not require resources from the state budget whether national, municipal, provincial or belonging to the Autonomous City of Buenos Aires for such items as transfers, capital contributions (excepting those corresponding to their incorporation) or reimbursable financial assistance to be used for covering expenses and/or investments made in the course of their normal and customary businesses, except those which may have been contemplated in the 2001 and 2002 budgets;
|
|
§
|
maintain technical and professional independence of their managerial bodies for implementing corporate policies;
|
|
§
|
trade their goods and/or services at market prices;
|
|
§
|
possess fixed assets; the use of which in the activity is not subject to any condition from their shareholders; and
|
|
§
|
do not distribute of dividends among their shareholders.
|
|
§
|
Their creation must have been ordered by a national law or decree by the Federal Executive;
|
|
§
|
They must create a stock corporation according to the rules of Chapter II, Sections V and VI of the Law of Corporations Number 19,550 (stock corporations and corporations with majority state participation);
|
|
§
|
They must have majority National State participation, be it direct or indirect, according to the provisions of said Law;
|
|
§
|
They must be the purpose of developing of activities for oil reservoirs, its transportation, distribution, commercialization and industrialization or the generation and/or sale of electric energy.
|
|
§
|
They must be subject to internal and external control by the National Public Sector in terms of the Financial Administration Law and the National Public Sector’s Control System Law Nr. 24,156.
|
|
§
|
for transactions in the national public sector: 50%, which includes loans granted to governments from other jurisdictions guaranteed by their participation in the federal tax collection system;
|
|
§
|
for all transactions granted to each provincial jurisdiction and the City of Buenos Aires (excluding those comprised in the previous paragraph which must be guaranteed by the collection of local taxes or by pledge or implemented under leasing agreements): 10%. This limit includes financing operations granted to municipal governments in the respective jurisdiction and guaranteed by their participation in the collection of provincial taxes;
|
|
§
|
for all transactions with each municipal jurisdiction, which must be guaranteed by the collection of local taxes or by pledge, or implemented under leasing agreements: 3%.
|
|
§
|
the limits mentioned above may be increased by 15 percentage points, provided that the increases are applied to a specific purpose; and
|
|
§
|
for all transactions referred to in the first three points above: 75%.
|
|
a)
|
From transactions existing prior to March 31, 2003, including bonds issued in terms of Decree Nr. 1735/04 which may be received within the framework of the Argentine debt restructuring;
|
|
b)
|
From increases or by the receipt of:
|
|
(i)
|
compensation bonds or promissory notes as per Articles 28 and 29 of Decree Nr. 905/02, or of those eventually received by application of other specific provisions after that date, and deriving from Law Nr. 25,561 of Public Emergency and Foreign Exchange Reform;
|
|
(ii)
|
bonds received within the framework of the Mortgage Refinancing System established by Law Nr. 25,798;
|
|
c)
|
From new transactions if excesses are registered in accordance with points a) and b) above, provided that they originate exclusively in the granting of financing to the non-financial public sector with funds originated in amortization services of the aforementioned debt. These transactions include the amounts that apply to the primary subscription of government securities with an anticipation of up to 180 days to their due date. This deadline was extended by 180 days to operations disposed as of January 1, 2009 under the specific provisions of the competent authority.
|
|
d)
|
In addition a margin has been admitted for those entities exceeding the observance of the limits (due to the above-mentioned preexisting operations) to carry out the purchase and sale of, or financial transactions with, national public securities responsible for applying minimum capital requirements for market risk, that is to say, with such volatility as informed by the Central Bank, provided it does not exceed the equivalent to 25% of the RPC. Such limit will be constituted with the allocation, as from the date referred to above, of any of the following: i) the realization of non-financial public sector assets in the portfolio which are computable for determining such limits, ii) the allocation at market value of national public securities holdings, and iii) funds received for amortization services corresponding to the public sector assets involved.
|
|
e)
|
From participations greater than 50% by the Government as trustee in financial trusts to finance the construction area as provided for in subsection i), paragraph 3.2.4 of the “Financing to Non-Financial Public Sector” rules.
|
|
§
|
evidences a cash reserve deficiency,
|
|
§
|
has not satisfied certain technical standards,
|
|
§
|
has not maintained minimum net worth standards, or
|
|
§
|
is deemed by the Central Bank to have impaired solvency or liquidity;
|
|
§
|
deposits made by other financial institutions, including certificates of deposit acquired by secondary trading;
|
|
§
|
deposits made by persons directly or indirectly related to the financial institution;
|
|
§
|
deposits acquired by means of offering incentives, including deposits under the El Libretón program;
|
|
§
|
certificates of deposit of securities, acceptances or guarantees;
|
|
§
|
transferable certificates of deposit whose ownership has been acquired by way of endorsement.
|
|
§
|
fixed amounts from deposits and other excluded transactions.
|
§
|
Valuation Criteria
|
(1)
|
Tax effects
|
(2)
|
Derivative financial instruments
|
|
Differences Between Other Regulatory Bodies and Accepted Accounting Principles Effective in Argentina
|
|
(i)
|
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 to the Income Statement, should be accrued throughout the duration of the loans generated by said dealers in accordance with currently applicable professional accounting standards. Had this criterion been applied, shareholders’ equity would have been increased by Ps.11,146 and Ps.10,636 as of December 31, 2013 and 2012, respectively.
|
|
(ii)
|
The Bank has not made disclosures required by professional accounting standards in force in Argentina on discontinued operations or discontinuation in relation to the process of liquidating its subsidiary Consolidar AFJP S.A. (undergoing liquidation proceedings).
|
A.
|
Operating Results
|
December 31,
|
||||||||||||
2013
|
2012
|
2011
|
||||||||||
(in thousands of pesos)
|
||||||||||||
Interest on cash and due from banks
|
54 | — | 2 | |||||||||
Interest on loans to the financial sector
|
282,006 | 256,597 | 136,903 | |||||||||
Interest on overdraft
|
1,263,611 | 725,890 | 420,127 | |||||||||
Interest on loans with privileged guarantees
|
765,576 | 524,182 | 318,584 | |||||||||
Interest on credit card loans
|
995,086 | 625,692 | 361,658 | |||||||||
Interest on other loans
|
2,998,569 | 2,187,274 | 1,455,611 | |||||||||
Net income from government and private securities
|
352,223 | 640,547 | 493,185 | |||||||||
Net income from options
|
— | 255 | 404 | |||||||||
Interest from other receivables from financial transactions
|
40,771 | 36,376 | 31,725 | |||||||||
Indexation by benchmark stabilization coefficient (CER)
|
133,323 | 129,120 | 96,873 | |||||||||
Other
|
1,412,190 | 588,988 | 499,613 | |||||||||
Total
|
8,243,409 | 5,714,921 | 3,814,685 |
December 31, 2013
vs.
December 31, 2012
Increase (Decrease)
|
December 31, 2012
vs.
December 31, 2011
Increase (Decrease)
|
|||||||
Financial income due to change in:
|
(in thousands of pesos)
|
(in thousands of pesos)
|
||||||
the volume of interest-earning assets
|
1,405,617 | 713,253 | ||||||
average nominal rates of interest-earning assets
|
726,606 | 1,213,343 | ||||||
the volume and average nominal rates of interest-earning assets
|
945 | (370 | ) | |||||
Net Change
|
2,133,168 | 1,926,226 |
December 31,
|
||||||||||||
2013
|
2012
|
2011
|
||||||||||
(in thousands of pesos)
|
||||||||||||
Interest on savings deposits
|
14,772 | 11,148 | 9,183 | |||||||||
Interest on time deposit (1)
|
2,373,222 | 1,526,967 | 1,045,268 | |||||||||
Interest from other liabilities from financial transactions
|
171,607 | 123,289 | 34,054 | |||||||||
Indexation by benchmark stabilization coefficient (CER)
|
104 | 157 | 168 | |||||||||
Other
|
694,105 | 396,310 | 256,730 | |||||||||
Total
|
3,253,810 | 2,057,871 | 1,345,403 |
December 31, 2013
vs.
December 31, 2012
Increase / (Decrease)
|
December 31, 2012
vs.
December 31, 2011
Increase / (Decrease)
|
|||||||
Financial expense due to changes in:
|
(in thousands of pesos)
|
(in thousands of pesos)
|
||||||
the volume of interest-bearing liabilities
|
465,873 | 268,771 | ||||||
average nominal rates of interest-bearing liabilities
|
500,923 | 311,165 | ||||||
the volume and average nominal rates of interest-bearing liabilities
|
(1,315 | ) | 21 | |||||
Net Change
|
965,481 | 579,957 |
|
December 31, 2013
vs.
December 31, 2012
Increase (Decrease)
|
December 31, 2012
vs.
December 31, 2011
Increase (Decrease)
|
||||||
Gross Intermediation Margin due to changes in:
|
(in thousands of pesos)
|
(in thousands of pesos)
|
||||||
the volume of interest-earning assets and interest-bearing liabilities
|
939,744 | 444,482 | ||||||
average nominal rates of interest-earning assets and interest-bearing liabilities
|
225,683 | 902,178 | ||||||
the volume and average nominal rates of interest-earning assets and interest-bearing liabilities
|
2,260 | (391 | ) | |||||
Net Change
|
1,167,687 | 1,346,269 |
December 31,
|
||||||||||||
2013
|
2012
|
2011
|
||||||||||
|
(in thousands of pesos)
|
|||||||||||
Service charges on deposit accounts
|
818,194 | 680,052 | 554,365 | |||||||||
Credit card operations
|
1,175,530 | 804,853 | 578,716 | |||||||||
Other fees related to foreign trade
|
102,108 | 87,923 | 87,604 | |||||||||
Credit-related fees
|
458,871 | 275,209 | 185,854 | |||||||||
Fund management fees
|
57,617 | 38,181 | 32,560 | |||||||||
Capital markets and securities activities
|
46,928 | 19,539 | 24,617 | |||||||||
Rental of safety deposit boxes
|
110,934 | 95,101 | 75,798 | |||||||||
Fees related to guarantees
|
1,475 | 1,181 | 1,394 | |||||||||
Insurance agency
|
345,889 | 250,370 | 138,524 | |||||||||
Other
|
336,304 | 277,788 | 278,157 | |||||||||
Total
|
3,453,850 | 2,530,197 | 1,957,589 |
December 31,
|
||||||||||||
2013
|
2012
|
2011
|
||||||||||
|
(in thousands of pesos)
|
|||||||||||
Personnel expenses
|
1,896,881 | 1,532,772 | 1,195,631 | |||||||||
Fees and external administrative services
|
152,213 | 127,367 | 83,213 | |||||||||
Taxes
|
332,441 | 229,227 | 176,353 | |||||||||
Utilities
|
66,023 | 58,458 | 41,221 | |||||||||
Depreciation of Bank property and equipment
|
100,766 | 86,813 | 65,070 | |||||||||
Credit card advertising and issuance expense
|
268,221 | 175,959 | 130,349 | |||||||||
Courier transportation
|
61,254 | 60,930 | 42,076 | |||||||||
Advertising and promotion (excluding credit card advertising)
|
146,868 | 133,642 | 108,965 | |||||||||
Maintenance and repairs
|
183,157 | 130,202 | 97,602 | |||||||||
Business travel and development
|
26,359 | 22,098 | 14,447 | |||||||||
Staff welfare
|
62,707 | 48,619 | 33,328 | |||||||||
Amortization of organization and development expenses
|
48,997 | 40,744 | 28,937 | |||||||||
Rentals
|
159,786 | 118,726 | 101,441 | |||||||||
Other
|
394,796 | 296,151 | 224,567 | |||||||||
Total
|
3,900,469 | 3,061,708 | 2,343,200 |
December 31, | ||||||||||||
2013
|
2012
|
2011
|
||||||||||
(in thousands of pesos, except percentages)
|
||||||||||||
Net Income before income tax and minority interest
|
3,200,118 | 2,164,550 | 1,566,397 | |||||||||
Statutory tax rate
|
35 | % | 35 | % | 35 | % | ||||||
Income tax (at statutory rate)
|
1,120,041 | 757,593 | 548,239 | |||||||||
Deferred tax
|
9,030 | (51,555 | ) | (16,555 | ) | |||||||
Tax-exempt income
|
(94,999 | ) | (62,503 | ) | (66,222 | ) | ||||||
Allowances on deferred tax assets
|
(9,030 | ) | 51,555 | 16,555 | ||||||||
Other
|
96,418 | 169,586 | 70,341 | |||||||||
Income tax loss
|
1,121,460 | 864,676 | 552,358 | |||||||||
Income tax loss, net
|
1,121,460 | 864,676 | 552,358 | |||||||||
Actual income tax
|
(1,121,460 | ) | (864,676 | ) | (552,358 | ) | ||||||
Deferred income tax (1)
|
— | — | — |
(1)
|
Included in Other Income and Income Tax.
|
B.
|
Liquidity and Capital Resources
|
Remaining Maturity or Earliest Repricing Intervals at December 31, 2013
|
||||||||||||||||||||||||
0-3 months
|
3 Months-
One Year
|
1-5 Years
|
5-10 Years
|
Over 10 Years
|
Total
|
|||||||||||||||||||
(in thousands of pesos, except percentages)
|
||||||||||||||||||||||||
Interest-earning assets
|
||||||||||||||||||||||||
Interest earning deposits in banks
|
11,395,626 | — | — | — | — | 11,395,626 | ||||||||||||||||||
Government securities
|
1,026,421 | 530,156 | 1,440,501 | 327,613 | 70,526 | 3,395,217 | ||||||||||||||||||
Corporate bonds
|
3,077 | 324 | — | — | — | 3,401 | ||||||||||||||||||
Loans (1)
|
18,659,017 | 8,265,185 | 10,087,882 | 111,735 | 66,838 | 37,190,657 | ||||||||||||||||||
Total
|
31,084,141 | 8,795,665 | 11,528,383 | 439,348 | 137,364 | 51,984,901 | ||||||||||||||||||
Interest-bearing liabilities
|
||||||||||||||||||||||||
Deposits
|
28,555,388 | 639,733 | 3,248 | — | — | 29,198,369 | ||||||||||||||||||
Corporate bonds
|
1,126,677 | 64,084 | — | — | — | 1,190,761 | ||||||||||||||||||
Due to other banks
|
2,159,353 | 688,037 | 421,709 | — | — | 3,269,099 | ||||||||||||||||||
Total
|
31,841,418 | 1,391,854 | 424,957 | — | — | 33,658,229 | ||||||||||||||||||
Asset/liability gap
|
(757,277 | ) | 7,403,811 | 11,103,426 | 439,348 | 137,364 | 18,326,672 | |||||||||||||||||
Cumulative sensitivity gap
|
(757,277 | ) | 6,646,534 | 17,749,960 | 18,189,308 | 18,326,672 | ||||||||||||||||||
Cumulative sensitivity gap as a percentage of total interest-earning assets
|
(1.46 | )% | 12.79 | % | 34.14 | % | 34.99 | % | 35.25 | % |
(1)
|
Loan amounts are stated before deducting the allowance for loan losses. Non-accrual loans are included with loans as interest-earning assets.
|
Remaining Maturity or Earliest Repricing Intervals at December 31, 2013
|
||||||||||||||||||||||||
0-3 months
|
3 Months-
One Year
|
1-5 Years
|
5-10 Years
|
Over 10 Years
|
Total
|
|||||||||||||||||||
(in thousands of pesos, except percentages)
|
||||||||||||||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|||||||||||||||||||
Interest earning deposits in banks
|
6,180,483 | — | — | — | — | 6,180,483 | ||||||||||||||||||
Government securities
|
1,026,421 | 530,156 | 610,818 | 327,613 | 28,226 | 2,523,234 | ||||||||||||||||||
Corporate bonds
|
3,077 | 324 | — | — | — | 3,401 | ||||||||||||||||||
Loans (1)
|
17,834,447 | 7,973,030 | 10,070,212 | 111,735 | 66,838 | 36,056,262 | ||||||||||||||||||
Total
|
25,044,428 | 8,503,510 | 10,681,030 | 439,348 | 95,064 | 44,763,380 | ||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Deposits
|
25,727,133 | 503,219 | 3,248 | — | — | 26,233,600 | ||||||||||||||||||
Corporate bonds
|
1,126,677 | 64,084 | — | — | — | 1,190,761 | ||||||||||||||||||
Due to other banks
|
1,536,086 | 688,037 | 421,709 | — | — | 2,645,832 | ||||||||||||||||||
Total
|
28,389,896 | 1,255,340 | 424,957 | — | — | 30,070,193 | ||||||||||||||||||
Asset/liability gap
|
(3,345,468 | ) | 7,248,170 | 10,256,073 | 439,348 | 95,064 | 14,693,187 | |||||||||||||||||
Cumulative sensitivity gap
|
(3,345,468 | ) | 39,002,702 | 14,158,775 | 14,598,123 | 14,693,187 | ||||||||||||||||||
Cumulative sensitivity gap as a percentage of total interest-earning assets
|
(7.47 | )% | 8.72 | % | 31.63 | % | 32.61 | % | 32.82 | % |
(1)
|
Loan amounts are stated before deducting the allowance for loan losses. Non-accrual loans are included with loans as interest-earning assets.
|
Remaining Maturity or Earliest Reprising Intervals at December 31, 2013
|
||||||||||||||||||||||||
0-3 months
|
3 Months-
One Year
|
1-5 Years
|
5-10 Years
|
Over 10 Years
|
Total
|
|||||||||||||||||||
(in thousands of pesos, except percentages)
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Interest earning deposits in banks
|
5,215,143 | — | — | — | — | 5,215,143 | ||||||||||||||||||
Government securities
|
— | — | 829,683 | — | 42,300 | 871,983 | ||||||||||||||||||
Loans (1)
|
824,570 | 292,155 | 17,670 | — | — | 1,134,395 | ||||||||||||||||||
Total
|
6,039,713 | 292,155 | 847,353 | — | 42,300 | 7,221,521 | ||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Deposits
|
2,828,255 | 136,514 | — | — | — | 2,964,769 | ||||||||||||||||||
Due to other banks
|
623,267 | — | — | — | — | 623,267 | ||||||||||||||||||
Total
|
3,451,522 | 136,514 | — | — | — | 3,588,036 | ||||||||||||||||||
Asset/liability gap
|
2,588,191 | 155,641 | 847,353 | 42,300 | 3,633,485 | |||||||||||||||||||
Cumulative sensitivity gap
|
2,588,191 | 2,743,832 | 3,591,185 | 3,591,185 | 3,633,485 | |||||||||||||||||||
Cumulative sensitivity gap as a percentage of total interest-earning assets
|
35.84 | % | 38.00 | % | 49.73 | % | 49.73 | % | 50.31 | % |
(1)
|
Loan amounts are stated before deducting the allowance for loan losses. Non-accrual loans are included with loans as interest-earning assets.
|
December 31,
|
||||||||||||
2013 (4)
|
2012 (4)
|
2011 (4)
|
||||||||||
(in thousands of pesos, except ratios and percentages)
|
||||||||||||
Calculation of excess capital (1)
|
||||||||||||
Allocated to assets at risk
|
3,021,381 | 2,197,281 | 1,768,090 | |||||||||
Allocated to Bank premises and equipment, intangible assets and equity investment assets
|
— | 187,326 | 144,648 | |||||||||
Interest rate risk
|
— | 430,744 | 373,642 | |||||||||
Public sector and securities in investment account
|
— | 73,005 | 73,534 | |||||||||
A- Minimal exigency by adds up risks
|
3,021,381 | 2,888,356 | 2,359,914 | |||||||||
B- Basic exigency for custody of titles of the AFJP and / or agent of record of mortgage notes
|
1,220,271 | 423,923 | 400,000 | |||||||||
Maximum between A and B
|
3,021,381 | 2,888,356 | 2,359,914 | |||||||||
Market risk
|
84,243 | 37,238 | 72,925 | |||||||||
Operational risk
|
859,279 | 665,751 | — | |||||||||
Required minimum capital under Central Bank rules
|
3,964,903 | 3,591,345 | 2,432,839 | |||||||||
Basic net worth
|
6,595,750 | 3,868,256 | 2,862,679 | |||||||||
Complementary net worth
|
421,825 | 1,288,507 | 880,599 | |||||||||
Deductions
|
— | (130,741 | ) | (141,290 | ) | |||||||
Minority interest
|
62,578 | 263,884 | 82,111 | |||||||||
Total capital under Central Bank rules
|
7,080,153 | 5,289,906 | 3,684,099 | |||||||||
Excess capital
|
3,115,250 | 1,698,561 | 1,251,260 | |||||||||
Selected capital and liquidity ratios
|
||||||||||||
Average stockholders’ equity as a percentage of average total assets (1)(2)
|
11.89 | % | 10.74 | % | 10.64 | % | ||||||
Total liabilities as a multiple of total stockholders’ equity
|
7.18 | x | 7.70 | x | 9.08 | x | ||||||
Cash and due from banks as a percentage of total deposits
|
29.44 | % | 25.22 | % | 21.78 | % | ||||||
Liquid assets as a percentage of total deposits (1)(3)
|
37.34 | % | 37.22 | % | 40.86 | % | ||||||
Loans as a percentage of total assets
|
62.31 | % | 63.62 | % | 58.65 | % |
(1)
|
See “Item 4. Information on the Company—The Argentine Banking System and Its Regulatory Framework—Capital Adequacy Requirements” for a discussion of the Central Bank’s capital requirements.
|
(2)
|
Average stockholders’ equity and average total assets computed as the average of period-beginning and period-ending balances.
|
(3)
|
At December 31, 2013, 2012 and 2011, “Liquid Assets” includes cash and due from banks and government and private securities.
|
(4)
|
The Bank had to maintain a surplus of minimum paid-in capital amounting to at least 305,068, 105,981 and 90,689 as at December 31, 2013, 2012 and 2011, respectively, equivalent to 0.25% of the amount of values under custody for securities representing investments from pension funds, as well as in connection with its function as registrar of mortgage-backed bonds, invested in national public securities and other destinations authorized by the BCRA and guaranteed in favor of the said entity.
|
C.
|
Research and Development, Patents and Licenses
|
D.
|
Trend Information
|
E.
|
Off-Balance Sheet Arrangements
|
F.
|
Tabular Disclosure of Contractual Obligations
|
Payments due by Period
(in thousands of pesos)
|
||||||||||||||||||||
Total
|
Less than
1 year
|
1-3
years
|
4-5
years
|
After 5
years
|
||||||||||||||||
Contractual obligations
|
||||||||||||||||||||
Long-term debt
|
4,943,260 | 4,081,854 | 860,821 | 585 | — | |||||||||||||||
Operating leases
|
128,014 | 59,221 | 52,708 | 11,751 | 4,334 | |||||||||||||||
Total
|
5,071,274 | 4,141,075 | 913,529 | 12,336 | 4,334 | |||||||||||||||
Commercial commitments
|
||||||||||||||||||||
Lines of credit
|
453,478 | 453,478 | — | — | — | |||||||||||||||
Foreign trade acceptances
|
199,231 | 199,231 | — | — | — | |||||||||||||||
Guarantees
|
446,358 | 204,899 | 156,667 | 44,188 | 40,604 | |||||||||||||||
Standby repurchase obligations
|
180,532 | 180,532 | — | — | — | |||||||||||||||
Total
|
1,279,599 | 1,038,140 | 156,667 | 44,188 | 40,604 |
A.
|
Directors and Senior Management
|
Name
|
Current
Term Ends
|
Position as of
December 31, 2013
|
Date of Birth
|
Present principal occupations outside BBVA Francés
and business experience
|
||||
Jorge Carlos Bledel
|
December 2014
|
Chairman
|
04/19/1954
|
Present principal occupations: Director, Rombo Compañía Financiera S.A. (“Rombo Compañía Financiera”);
Business experience: Vice Chairman, BBVA Francés Valores S.A. (formerly known as BBVA Francés Valores Sociedad de Bolsa S.A.“Francés Valores”); Director, Credilogros Compañía Financiera S.A. (“Credilogros”); Credit Manager, Banco del Interior y Buenos Aires; Business Manager, Corporación Metropolitana de Finanzas; Financial Manager, BBVA Francés; Wholesale Banking Director, BBVA Banco Francés and Retail Banking Director, BBVA Francés.
Mr. Bledel joined the staff of BBVA Francés in 1986 and was first elected to the Board in March 2003.
|
||||
José Manuel Tamayo Pérez
|
December 2013
|
Vice Chairman
|
05/22/1950
|
Present principal occupation: Director, BBVA Francés.
Business experience: Retail Banking Director, BBVA Francés; Marketing Director España and Portugal, BBVA S.A.
Mr. Tamayo Pérez was elected Director in April 2007.
|
||||
Marcelo Gustavo Canestri
|
December 2013
|
Director
|
04/23/1953
|
Present principal occupations: Director, Francés Valores; Director, PSA Finance; Alternate Director, Rombo Compañía Financiera.
Business experience: Corporate Assistant Manager, BBVA Francés; Wholesale Banking Assistant Manager, BBVA Francés; Asset Management Director, BBVA Francés and Financial Director, BBVA Francés; Director.
Mr. Canestri joined the Bank in 1973 and was first elected to the Board in September 2001.
|
Name
|
Current
Term Ends
|
Position as of
December 31, 2013
|
Date of Birth
|
Present principal occupations outside BBVA Francés
and business experience
|
||||
Mario Luis Vicens
|
December 2014
|
Director
|
07/14/1951
|
Present principal occupation: Director, BBVA Banco Francés S.A.
Business experience: Executive President CEO, Asociación de Bancos de la Argentina (ABA); Director, Seguros de Depósitos S.A (SEDESA); Director, Federación Latinoamericana de Bancos Felaban; Director, Banco Sudameris; Director, Argentine Central Bank; Assistant Manager of the Planning and Financial Area and Assistant General Manager, Banco Crédito Argentino S.A; Chief Economist; Argentine Central Bank.
Mr. Vicens was elected Director in 2012.
|
||||
Oscar Miguel Castro
|
December 2014
|
Director
|
12/04/1945
|
Present principal occupations: Independent Director, BBVA Francés, Zurich Argentina Cia. de Seguros S.A., Zurich Argentina Cia. de Seguros de Retiro S.A. and Zurich Argentina Cia. de Reaseguros S.A.
Independent Consultant.
Business experience: Executive member of the Committee of Financial Services member, Arthur Andersen Worldwide; Partner in charge of Financial Services Division, Arthur Andersen Latin America and Argentina; International Partner, Arthur Andersen.
Mr. Castro was elected Director in 2003.
|
||||
Luis Bernardo Daniel Juango Fitero
|
December 2013
|
Director
|
08/24/1949
|
Present principal occupation: Director, BBVA Francés S.A.
Business experience: President, BBVA Colombia S.A.; Regional Director, BBVA S.A.
Mr. Juango Fitero was elected in 2008.
|
Name
|
First Appointed
|
Current Position
|
Date of Birth
|
Background and Work Experience
|
||||
Ricardo Enrique Moreno
|
2009
|
Executive Director
|
07/15/1963
|
Consultant, specialized in financial branch and capital markets, Andersen Consulting; Systems Manager, Banco de Crédito; Director of Media, CEO of Unofirst Latin America, COO Global, BBVA; Director of Transformation an Productivity BBVA.
Mr. Moreno joined the Bank in 1994.
|
||||
Ignacio Sanz y Arcelus
|
2012
|
Director, Planning and Financial Area
|
01/13/1966
|
Financial Technology and Operations Director, BBVA; Asset and Liability for Latin America Director, BBVA; Management Control and Investment Banking (Treasury, Capital Markets, Brokerage, Corporate, Structured Finance) Director, BBVA; Corporate Director, BBVA; Treasury, Capital Markets and International Network, Director, BEX Argentaria BBVA; Market Risk Audit, Director, BEX Argentaria BBVA; Audit Director Central Services, BEX; Planning Director, Intervention and Control SERFINBEX; Director, BEX Argentaria BBVA; Team Leader, Arthur Andersen Auditors S.A.
Mr. Sanz y Arcelus joined the Bank in 2012.
|
||||
Juan Alberto
Estrada
|
2008
|
Director,
Corporate and Investment Banking
|
07/12/1972
|
Asset Management Area; Head of the Trading Area.
Mr. Estrada joined the Bank in 1992.
|
||||
Martín Ezequiel Zarich
|
2010
|
Director, Innovation and Development
|
04/09/1964
|
Other positions currently held: Director, Francés Valores, Alternate Director BBVA Francés
Work Experience: Director BBVA Seguros; Economist, Banco de Crédito Argentino; Management Control and Budget Manager, Banco de Crédito Argentino; Planning Director, Banco de Crédito Argentino; Merger Director, BBVA Banco Francés; Planning Director, BBVA Francés; Financial Director, BBVA Francés; Retail Banking Director, BBVA Francés; Director, Credilogros; Director, BBVA Banco Francés Uruguay; Director, BBVA Banco Francés Cayman Ltd.; Deputy General Director, Business Development BBVA Group.
Mr. Zarich joined the Bank in 1987.
|
||||
Gabriel Milstein
|
2002
|
Director, Human Resources, Procurement, Real Estate, General Services and Safety
|
08/14/1958
|
Organization Manager, BBVA Francés.
Mr. Milstein joined the Bank in 1995.
|
||||
Jorge Gustavo Allen
|
2007
|
Director, Companies Banking
|
12/07/1956
|
Goods and Services Manager, Banco Francés del Río de la Plata; Logistics Director, BBVA Francés; President, BBVA Seguros; Territorial Director, BBVA Francés.
Mr. Allen joined the Bank in 1994.
|
Name
|
First Appointed
|
Current Position
|
Date of Birth
|
Background and Work Experience
|
||||
Jorge Delfín Luna
|
2010
|
Director, Retail Banking
|
11/17/1958
|
Regional Manager, Sucursal Citibank, Citicorp; Regional Manager of Local Branches, Banco de Crédito Argentino; General Manager, Easy-Bank (BBVA Francés); General Manager and Vicepresident, BBVA Banco Uruguay; Companies Banking Manager, BBVA Francés.
Mr. Luna joined the Bank in 1996.
|
||||
Gustavo Osvaldo Fernández
|
2010
|
Director, Technology and Operations
|
01/22/1964
|
Coordinator, Systems and Organizations, Banca Nazionale del Lavoro; Systems Coordinator, Banco Galicia; Manager of Organization and Systems Development, Banco de Crédito Argentino; Design and Development Manager, Banco Francés; Media Director, Banco Francés; Director of Design and Development América, BBVA; Business Partner America, BBVA.
Mr. Fernandez joined the Bank in 1995.
|
||||
Adriana Fernández de Melero
|
2010
|
Director, Corporate Development and Transformation
|
04/02/1961
|
Credits Recovery Analyst, Banco Español; Financial Analyst, Banco Español; Financial Profitability and Planning Analyst, Banco Español; Planning and Management Control Analyst, Banco de Crédito Argentino; Head of Budget, Planning and Management Control, Banco de Crédito Argentino; Leader of Reengineering Project, Banco de Crédito Argentino; Human Resources Development and Planning Manager, Banco de Crédito Argentino; Manager of Human Resources Management, BBVA Banco Francés; Manager of Structures and Projects, BBVA Francés; Organization Manager, BBVA Francés; Commercial Development and Channels Manager, BBVA Francés.
Mrs. Fernandez de Melero joined the Bank in 1987.
|
||||
Juan Eugenio Rogero González
|
2010
|
Director, Risks
|
06/20/1956
|
Mr. Rogero González joined BBVA in 1973. His background includes: Branch Director Corporate Banking, Bilbao BBVA; Risks and Corporate Director, BBVA Puerto Rico; Insurances Development Director, BBVA America and Global Director of Corporate Risks Control, BBVA; Risks Director, BBVA Francés; Corporate Polices and Wholesale Portfolios Director, BBVA.
Mr. Rogero González first joined the Bank in 2005.
|
Expiration of term
|
||
Regular
|
Mario Rafael Biscardi
|
December 31, 2013
|
|
Marcelino Agustín Cornejo
|
December 31, 2013
|
|
Alejandro Mosquera
|
December 31, 2013
|
Alternate
|
Julieta Paula Pariso
|
December 31, 2013
|
|
Agustín Isola
|
December 31, 2013
|
|
Daniel Oscar Celentano
|
December 31, 2013
|
-
|
Mario Rafael Biscardi: Lawyer, member of Biscardi & Asociados S.R.L., member of the Supervisory Committee of BBVA Banco Francés S.A., Consultatio Asset Management Gerente De Fondos Comunes De Inversión S.A.; PSA Finance Compañía Financiera S.A.; Rombo Compañía Financiera S.A.; Sociedad Comercial Del Plata S.A.; BBVA Consolidar Seguros S.A.; Bridgestone Argentina S.A.I.C.; Centro Automotores S.A.; Centro del Norte S.A.; Compañía General De Combustibles S.A.; Consolidar AFJP S.A. (undergoing liquidation proceedings); Cormasa S.A.; Courtage S.A.; Duke Energy Cerros Colorados S.A.; Duke Energy Generating S.A.; Duke Energy International Southern Cone S.R.L.; BBVA Francés Valores S.A.; Industrial Valores S.A.;.; Laboratorios Essex S.A.; Metalúrgica Tandil S.A.; Plan Rombo S.A. De Ahorro Para Fines Determinados; Renault Argentina S.A.; Rombo Ahorro S.A. De Ahorro Para Fines Determinados; MSD Argentina SRL (antes Schering Plough S.A.); Tavex Argentina S.A.; V.T.V. Norte S.A., Banco de Servicios Financieros S.A.; Contigo Microfinanzas S.A.; Valentín Bianchi S.A.C.I.F.; Banco Finansur S.A.; Industrial Asset Management Sociedad Gerente de Fondos Comunes de Inversión S.A, Consultatio Investments S.A.. He serves as an alternate member of the supervisory committee in: Compañía de Alimentos Fargo S.A., Procter & Gamble Argentina S.R.L.; Fresh Food S.A., Panificación Argentina S.A.I. y C.; Petrouruguay S.A.; Capital Foods S.A. y Establecimiento Elaborador de Alimentos SACAAN de Argentina S.A. He serves as regular manager in: Roha Argentina S.R.L. and Praj Sur América S.R.L. He serves as regular Director in: GMS Management Solutions S.A., SDMO Argentina S.A. and Tubos Argentinos S.A., Waterous International (Latin America) S.A. He serves as alternate Director in: Carl Zeiss Argentina S.A., Bimar de Argentina S.A. and as regular liquidator of Plas Alco Argentina S.A. (undergoing liquidation proceedings)
|
-
|
Alejandro Mosquera: Lawyer, member of Biscardi & Asociados S.R.L., member of the Supervisory Committee of BBVA Banco Francés S.A., Consultatio Asset Management Gerente De Fondos Comunes De Inversión S.A.; PSA Finance Argentina Compañía Financiera S.A.; Rombo Compañía Financiera S.A.; BBVA Consolidar Seguros S.A.; Centro Automotores S.A.; Centro del Norte S.A.; Compañía General De Combustibles S.A.; Consolidar AFJP S.A. (undergoing liquidation proceedings); Cormasa S.A.; Compañía de Alimentos Fargo S.A. Courtage S.A.; Duke Energy Cerros Colorados S.A.; Duke Energy Generating S.A.; Duke Energy International Southern Cone S.R.L.; BBVA Francés Valores S.A.; Fresh Food S.A.; Industrial Valores S.A.;; Metalúrgica Tandil S.A.; Plan Rombo S.A. De Ahorro Para Fines Determinados; Procter & Gamble Argentina S.R.L.; Renault Argentina S.A.; Rombo Ahorro S.A. De Ahorro Para Fines Determinados; Tavex Argentina S.A.; Panificación Argentina S.A.I. y C.; Capital Foods S.A.; Banco de Servicios Financieros S.A.; Banco Finansur S.A.; Establecimiento Elaborador de Alimentos SACAAN de Argentina S.A. e Industrial Asset Management Sociedad Gerente de Fondos Comunes de Inversión S.A. He serves as an alternate member of the supervisory committee in: Sociedad Comercial del Plata S.A.; Laboratorios Essex S.A.; MSD Argentina S.A. (antes Schering Plough S.A.); Petrouruguay S.A., Contigo Microfinanzas S.A. and Consultatio Investments S.A. He serves as alternate manager in: Roha Argentina S.R.L. and Praj Sur América S.R.L. He serves as regular Director in: Eagle Otawa Fonseca S.A., VTV Norte S.A. and Bimar de Argentina S.A. He serves as alternate director in: GDC Argentina S.A., GMS Management Solutions S.A., Waterous International (Latin America) S.A., Tramp Oil & Marine Argentina S.A. and World Fuel Services Argentina S.A. He serves as alternate liquidator of Plas Alco Argentina S.A. (undergoing liquidation proceedings)
|
-
|
Marcelino Agustín Cornejo: Lawyer, member of Biscardi & Asociados S.R.L., member of the Supervisory Committee of BBVA Banco Francés S.A., Rombo Compañía Financiera S.A.; BBVA Consolidar Seguros S.A.; Bimbo de Argentina S.A.; Centro Automotores S.A.; Centro del Norte S.A.; Consolidar AFJP S.A. (undergoing liquidation proceedings); Cormasa S.A.; Courtage S.A.; Duke Energy Generating S.A.; Duke Energy International Southern Cone S.R.L.; BBVA Francés Valores S.A.; Industrial Valores S.A.;.; Metalúrgica Tandil S.A.; Plan Rombo S.A. De Ahorro Para Fines Determinados; Renault Argentina S.A.; Rombo Ahorro S.A. De Ahorro Para Fines Determinados; Tavex Argentina S.A.; Tubos Argentinos S.A.; V.T.V. Norte S.A.; Banco Finansur S.A.; Alimentos Valente Argentina AVA – S.A. He serves as an alternate member of the supervisory committee in: Consultatio Asset Management Gerente De Fondos Comunes De Inversión S.A.; Compañía General de Combustibles S.A.; Duke Energy Cerros Colorados S.A.; Petrouruguay S.A.; Banco de Servicios Financieros S.A., Industrial Asset Management Sociedad Gerente de Fondos Comunes de Inversión S.A. and PSA Finance Argentina Compañía Financiera S.A.
|
-
|
Julieta Paula Pariso: Lawyer, member of Biscardi & Asociados S.R.L., alternate member of the Supervisory Committee of BBVA Banco Francés S.A., Consultatio Asset Management Gerente De Fondos Comunes De Inversión S.A.; Rombo Compañía Financiera S.A.; PSA Finance Argentina Compañía Financiera S.A.; BBVA Consolidar Seguros S.A.; Centro Automotores S.A.; Centro del Norte S.A.; Compañía General De Combustibles S.A.; Consolidar AFJP S.A. (undergoing liquidation proceedings); Cormasa S.A.; Courtage S.A.; Duke Energy Cerros Colorados S.A.; Duke Energy Generating S.A.; Duke Energy International Southern Cone S.R.L.; BBVA Francés Valores S.A.; Industrial Valores S.A.; Metalúrgica Tandil S.A.; Plan Rombo S.A. De Ahorro Para Fines Determinados; Renault Argentina S.A.; Rombo Ahorro S.A. De Ahorro Para Fines Determinados; Tavex Argentina S.A.; V.T.V. Norte S.A.; Banco de Servicios Financieros S.A.; Banco Finansur S.A. and Industrial Asset Management Sociedad Gerente de Fondos Comunes de Inversión S.A.
|
-
|
Agustín Isola: Lawyer, member of Biscardi & Asociados S.R.L., alternate member of the Supervisory Committee of BBVA Banco Francés S.A., Rombo Compañía Financiera S.A.; BBVA Consolidar Seguros S.A.; Bimbo de Argentina S.A.; Courtage S.A.; Centro Automotores S.A.; Centro del Norte S.A.; Consolidar AFJP S.A. (undergoing liquidation proceedings); Cormasa S.A.; Duke Energy Generating S.A.; Duke Energy International Southern Cone S.R.L.; BBVA Francés Valores S.A.; Industrial Valores S.A.;.; Metalúrgica Tandil S.A.; Plan Rombo S.A. De Ahorro Para Fines Determinados; Renault Argentina S.A.; Tavex Argentina S.A.; Tubos Argentinos S.A.; V.T.V. Norte S.A.; Banco de Servicios Financieros S.A., Alimentos Valente Argentina S.R.L. and Banco Finansur S.A.
|
-
|
Daniel Oscar Celentano: Lawyer, member of Biscardi & Asociados S.R.L., alternate member of the Supervisory Committee of BBVA Banco Francés S.A., Rombo Compañía Financiera S.A; BBVA Francés Valores S.A.; Industrial Valores S.A.;.; Consolidar AFJP S.A. (undergoing liquidation proceedings); BBVA Consolidar Seguros S.A.; Metalúrgica Tandil S.A.; Courtage S.A.; Centro del Norte S.A.; Centro Automotores S.A.; Renault Argentina S.A.; Cormasa S.A.; Plan Rombo S.A. de Ahorro para Fines Determinados; Tavex Argentina S.A. y Banco Finansur S.A.
|
|
a)
|
Oscar Miguel Castro
|
|
b)
|
Mario Luis Vicens
|
|
c)
|
Esther Dafauce
|
|
§
|
supervise the appropriate implementation of the internal control systems defined in the Bank through a regular evaluation;
|
|
§
|
provide assistance to improve the effectiveness of the internal controls;
|
|
§
|
inquire about external audit planning and comment as necessary on the nature, scope and time for the performance of the audit proceedings;
|
|
§
|
revise and approve the annual work program of the Bank’s internal audit area (“Internal Audit Planning Memorandum” or “Annual Planning”) to be carried out under said Annual Planning, as well as the level of compliance with such program;
|
|
§
|
revise the reports issued by the internal auditors pursuant to the provisions set forth in these rules;
|
|
§
|
consider the observations made by the external and the internal auditors regarding the internal control weaknesses found during the performance of their duties, as well as the corrective measures implemented by the general management to minimize or cure such weaknesses;
|
|
§
|
review the results obtained by the Supervisory Committee of the Bank during the performance of its duties, as informed in the applicable reports;
|
|
§
|
maintain a permanent communication with the officers of the Superintendency of Financial and Exchange Institutions in charge of the control of the Bank, so as to learn about their concerns, and the problems identified during the inspections conducted in the Bank, and control the actions adopted to solve such problems;
|
|
§
|
keep informed of the annual financial statements and the financial statements for the respective three-month periods as well as the external auditors’ report issued with respect to the former, and any other applicable accounting information; and
|
|
§
|
regularly control compliance with the independence rules applicable to external auditors.
|
Members:
|
José Manuel Tamayo Pérez
|
|
§
|
to render an opinion on the Board’s proposal to appoint the external auditors to be retained by the company, and ensure their independence.
|
|
§
|
to supervise the operation of internal control and administrative accounting systems, as well as ensure the reliability of the latter and of all financial information or other significant facts submitted to the CNV and the self-regulated bodies in compliance with the applicable information regulations.
|
|
§
|
to supervise the application of policies regarding the information about the company’s risk management.
|
|
§
|
to furnish the market with comprehensive information in respect of operations which may involve conflicts of interest with members of the corporate bodies or controlling shareholders.
|
|
§
|
to render an opinion on the reasonableness of proposals concerning fees and share option plans for the company’s directors and managers as submitted by the administration body.
|
|
§
|
to render an opinion on the observance of legal requirements and the reasonableness of the conditions for the issuance of shares or securities convertible into shares in the event of a capital increase, with exclusion or limitation of preference rights.
|
|
§
|
to verify the observance of the applicable standards of behavior.
|
|
§
|
to issue a duly grounded opinion with regard to operations with related parties in those cases contemplated by Law Nr. 26,831.
|
|
§
|
to issue a duly grounded opinion and forward it to the self-regulated entities as determined by the CNV whenever there is a conflict of interests or the possibility of such a conflict in the company.
|
|
§
|
to prepare annually an action plan to be submitted to the Board and the Supervisory Committee.
|
|
§
|
to examine the plans prepared by the external and internal auditors, evaluate their performance and issue an opinion on the matter on occasions of the presentation and publication of the annual financial statements.
|
Members:
|
José Manuel Tamayo Pérez |
|
§
|
establish the requirements for their appointments;
|
|
§
|
approve their training programs;
|
|
§
|
approve policies and criteria for the evaluation of their performances;
|
|
§
|
annually inform the Board of Directors of the criteria enforced to determine their compensation; and
|
|
§
|
state the policies for their promotion, layoff, suspension and retirement.
|
B.
|
Compensation
|
§
|
Management Committee
|
§
|
Computer Technology Committee
|
§
|
Disclosure Committee
|
§
|
Asset Laundering and Terrorism Financing Prevention Committee
|
|
-
|
to deal with all matters related to the prevention of terrorism assets laundering and financing.
|
|
-
|
to define operational policies and continuously monitor their degree of advancement.
|
|
-
|
to assign duties to the different areas involved.
|
|
-
|
to render his or her area of activity more sensitive as to the importance of preventing terrorism assets laundering and financing.
|
|
-
|
to detect any relevant situation which may occur in his or her area in this connection.
|
|
-
|
to analyze any new product or service and evaluate potential asset laundering risks.
|
|
-
|
to assume the necessary commitments in his or her area in order to implement prevention systems in coordination with the officer responsible for Asset Laundering Prevention.
|
§
|
Internal Control Evaluation Committee
|
|
-
|
to discuss the issues related to the internal control model.
|
|
-
|
to evaluate control weaknesses evidenced in the work performed in compliance with section 404 of the SOX Act and the group’s internal control model.
|
|
-
|
to decide on possible discrepancies occurred in the internal certification procedures.
|
|
-
|
to analyze, if applicable, the internal control report proposal in compliance with the requirements of section 404 of the SOX Act and the group’s internal control model.
|
|
-
|
to approve the internal control report that will support the internal control certification to be included in the 20-F documentation to be filed with the SEC.
|
§
|
Corporate Integrity Committee.
|
|
-
|
to authorize specific exemptions regarding the compliance of the rules set forth in the Code of Conduct.
|
|
-
|
to implement the necessary measures to deal with any ethically questionable matter known by any of its members as a result of their activity or as a consequence of the reception of communications referred to in Section 6.28 of the Code of Conduct.
|
|
-
|
regarding those circumstances which may give rise to significant risks for the BBVA Group in Argentina, the Corporate Integrity Committee shall promptly inform the Board of directors, the Audit Committee, the Planning and Financial Direction, in order to ensure that such financial statements accurately reflect appropriate results.
|
§
|
Risks Management Committee.
|
§
|
Human Resources Committee
|
|
-
|
to define the organization chart.
|
|
-
|
to approve promotions at management level.
|
|
-
|
to establish the guidelines for the Human Resources Policies
|
|
-
|
to establish salaries and incentives criteria.
|
|
-
|
to validate skills assessments and positions.
|
|
-
|
to evaluate staff benefits.
|
|
-
|
to set career and training plans.
|
§
|
Corporate Assurance Committee
|
|
-
|
Promote and ensure the effectiveness of the control model and the necessary culture of transparency and self-criticism.
|
|
-
|
Ensure the implementation and maintenance of the Corporate Assurance model within the BBVA Group entities.
|
|
-
|
Prioritize control weaknesses identified by the expert areas and the Internal Audit Bureau regarding adequacy, appropriateness and timeliness of the proposed remedial actions.
|
|
-
|
Ensure that experts activities are carried out with self-criticism and transparently.
|
|
-
|
Understand, evaluate, and assign responsibilities for managing risks that are submitted for consideration.
|
|
-
|
Give timely follow up on agreed action plans to mitigate risks.
|
|
-
|
Communicate to specialists and Business Units all decisions.
|
|
-
|
Promote awareness of the Operational Risk Model , as well as the dissemination of Corporate Policies governing the matter.
|
|
-
|
Solve and take decisions regarding the operational risk, required by its materiality or importance.
|
|
-
|
Ensure the implementation of the Operational Risk Model and facilitate proper management for operational risks related to the BBVA Francés business.
|
|
-
|
Supervise the proper implementation of tools and model methodology.
|
|
-
|
Deal with any matter that enhances the quality and reliability of BBVA Francés internal controls and its affiliated companies.
|
|
-
|
Responsible for Foreign Exchange Positions (Communication “A” 4246 BCRA)
Main Officer Responsible: Mr. Manuel Mansilla
Alternate Officer Responsible: Mr. Gustavo Viturro
|
|
-
|
Responsible for Foreign Exchange Control (Communication “A” 4246 BCRA)
Main Officer Responsible: Mr. Roberto Araujo
Alternate Officer Responsible: Mr. José Luis Frete
|
|
-
|
Responsible for costumer services in compliance with Communication “A” 5388 of BCRA.
Main Responsible: Viviana Bertolami
Alternate Responsible: María Alejandra García de la Paz
|
|
-
|
Responsible for the Liquidity Policy (Communication “A” 2879 BCRA):
Mr. Diego Cesarini
|
|
-
|
Responsible for Information Systems (Communication “A” 2593 BCRA)
Main Officer Responsible: Mr. Ignacio Sanz y Arcelus
Alternate Officer Responsible: Mr. Martín Ezequiel Zarich
|
|
-
|
Responsible for Market Relations (Decree Nr. 677/01)
Main Officer Responsible: Ignacio Sanz y Arcelus
Alternate Officers Responsible: Mr. Martín Ezequiel Zarich, Mr. Adrián Bresssani
|
|
-
|
Compliance Officer on Money Laundering Prevention (Communication “A” 5004 BCRA):
Mr. Mario Luis Vicens
|
C.
|
Employees
|
|
December 31,
|
|||||||||||
2013 (1)
|
2012 (1)
|
2011 (1)
|
||||||||||
Main office
|
2,426 | 2,393 | 2,324 | |||||||||
Branches
|
2,796 | 2,753 | 2,687 | |||||||||
Total
|
5,222 | 5,146 | 5,011 |
(1)
|
Excludes 11, 12 and 137 employees from non-banking subsidiaries as of December 31, 2013, 2012 and 2011, respectively.
|
D.
|
Share Ownership
|
A.
|
Major Shareholders
|
|
Ordinary Shares Beneficially Owned At December 31, 2013
|
|||||||
Beneficial Owner
|
Number of Shares
|
Percentage of Shares Outstanding
|
||||||
Banco Bilbao Vizcaya Argentaria S.A.
|
244,870,968 | 45.61 | % | |||||
BBV América SL (1)
|
160,061,858 | 29.81 | % | |||||
The Bank of New York Mellon (2)
|
47,584,374 | 8.86 | % | |||||
Administración Nacional de Seguridad Social
|
42,439,494 | 7.90 | % |
(1)
|
BBV América SL is controlled by BBVA. It has an effective 20.90% ownership interest in the capital stock of BBVA Francés and has an indirect 8.91% ownership interest in Inversora Otar S.A. following its merger by absorption.
|
(2)
|
As holder agent of ADSs.
|
B.
|
Related Parties Transactions
|
December 31, 2013
|
December 31, 2012
|
|||||||||
Related Party
|
Largest
Outstanding Amount (1)(2)
|
Interest
Rates
|
Amount
Outstanding (2)
|
Interest
Rates
|
Nature
|
Largest
Outstanding
Amount (1)(2)
|
Interest
Rates
|
Amount
Outstanding (2)
|
Interest
Rates
|
Nature
|
Controlled, Controlling and Under Common Control Entities
|
||||||||||
BBVA and subsidiaries
|
160,561
|
—
|
120,184
|
—
|
Guarantees given and correspondents
|
162,448
|
—
|
151,921
|
—
|
Guarantees given and correspondents
|
BBVA Francés Valores S.A.
|
21,896
|
—
|
21,244
|
—
|
Other loans and equity investment
|
19,554
|
—
|
16,395
|
—
|
Other loans and equity investment
|
BBVA Francés Asset Management S.A.
|
69,219
|
32.73%
|
69,219
|
32.73%
|
Other loans, credit card loans and equity investment
|
58,854
|
—
|
58,854
|
—
|
Other loans and equity investment
|
Consolidar AFJP S.A. (undergoing liquidation proceedings)
|
11,534
|
45.00%
|
11,507
|
—
|
Advances, other loans, guarantees given and equity investment
|
12,271
|
45.00%
|
11,507
|
—
|
Advances, other loans, guarantees given and equity investment
|
Consolidar ART S.A.
|
—
|
—
|
—
|
—
|
—
|
4,744
|
32.73%
|
—
|
—
|
Advances, credit cards loans and equity investment
|
PSA Finance
|
1,252,472
|
29.92%
|
1,252,472
|
29.92%
|
Advances, call money, other loans, guarantees given and equity investment
|
1,121,598
|
24.41%
|
1,040,737
|
24.39%
|
Advances, call money, other loans, guarantees given and equity investment
|
BBVA Consolidar Seguros S.A.
|
47,531
|
30.90%
|
47,531
|
30.90%
|
Credit cards loans, other loans and equity investment
|
38,434
|
85.80%
|
34,363
|
32.73%
|
Advances, credit cards loans, other loans and equity investment
|
Associated Entities
|
||||||||||
Rombo Cia Financiera S.A.
|
1,259,290
|
31.32%
|
1,259,290
|
31.32%
|
Call money, other loans, guarantees given and equity investment
|
861,703
|
27.01%
|
861,703
|
27.01%
|
Call money, other loans, guarantees given and equity investment
|
Key Management Personnel (3)
|
11,060
|
22.90%
|
11,060
|
22.90%
|
Advances, credit card loans, personal loans, other loans and real estate mortgage
|
5,330
|
17.90%
|
5,330
|
17.90%
|
Advances, credit card loans, personal loans, other loans and real estate mortgage
|
(1)
|
Largest amount during the period indicated.
|
(2)
|
In thousands of pesos.
|
(3)
|
Includes directors, senior managers, members of the audit committee and managers with relevant authority.
|
C.
|
Interest of Experts and Counsel
|
A.
|
Financial Statements and Other Financial Information
|
|
1.
|
The Bank falls under the provisions of Articles 34 “Regularization and restructuring” and 35 bis “Restructuring of the entity for the protection of credit and bank deposits” of the Financial Entities Law;
|
|
2.
|
The Bank has received financial assistance from the Central Bank, other than assistance received for lack of liquidity in terms of Decree Nr. 739/03 and its regulatory provisions (Communication “A” 3941 and complementary provisions), within the framework of article 17 of this Bank’s Charter, and in terms of the transactions foreseen by Communication “A” 4268;
|
|
3.
|
The Bank incurs delays or noncompliance with respect to the information system set forth by the BCRA; or
|
|
4.
|
The Bank shows deficiencies as to the payment of its minimum capital, either individually or on a consolidated basis (without computing for such purpose the effects of individual franchises granted by the Superintendent of Financial and Foreign Exchange Entities) or as regards its average minimum cash requirements in pesos or foreign currencies.
|
B.
|
Significant Changes
|
Pesos Per
Ordinary Share (1)
|
||||||||
High
|
Low
|
|||||||
March 2014
|
27.30 | 23.40 | ||||||
February 2014
|
25.25 | 21.10 | ||||||
January 2014
|
24.30 | 19.40 | ||||||
Fiscal year ended December 31, 2013
|
27.90 | 9.65 | ||||||
Fourth quarter
|
27.90 | 19.40 | ||||||
December, 2013
|
24.50 | 20.25 | ||||||
November, 2013
|
25.80 | 21.40 | ||||||
October, 2013
|
27.90 | 19.40 | ||||||
Third quarter
|
20.10 | 9.80 | ||||||
Second quarter
|
13.90 | 9.65 | ||||||
First quarter
|
12.55 | 10.50 | ||||||
Fiscal year ended December 31, 2012
|
11.50 | 7.00 | ||||||
Fourth quarter
|
11.50 | 8.00 | ||||||
Third quarter
|
9.20 | 7.28 | ||||||
Second quarter
|
10.55 | 7.00 | ||||||
First quarter
|
10.65 | 8.25 | ||||||
Fiscal year ended December 31, 2011
|
16.60 | 7.60 | ||||||
Fiscal year ended December 31, 2010
|
17.80 | 7.28 | ||||||
Fiscal year ended December 31, 2009
|
8.73 | 2.50 |
(1)
|
Pesos per ordinary share data reflect nominal prices at trading date.
|
US$ Per ADS (1)
|
||||||
High
|
Low
|
|||||
March 2014
|
8
|
27/70
|
6
|
23/25
|
||
February 2014
|
7
|
19/50
|
5
|
14/25
|
||
January 2014
|
6
|
17/20
|
5
|
41/50
|
||
Fiscal year ended December 31, 2013
|
9
|
3/20
|
3
|
33/50
|
||
Fourth quarter
|
9
|
3/20
|
6
|
21/50
|
||
December, 2013
|
8
|
22/25
|
6
|
81/89
|
||
November, 2013
|
9
|
3/20
|
6
|
9/10
|
||
October, 2013
|
9
|
6
|
21/50
|
|||
Third quarter
|
6
|
17/27
|
3
|
19/25
|
||
Second quarter
|
4
|
25/51
|
3
|
33/50
|
||
First quarter
|
5
|
6/25
|
4
|
1/25
|
||
Fiscal year ended December 31, 2012
|
6
|
44/83
|
3
|
8/89
|
||
Fourth quarter
|
5
|
13/50
|
3
|
17/27
|
||
Third quarter
|
4
|
19/25
|
3
|
3/20
|
||
Second quarter
|
6
|
1/9
|
3
|
8/89
|
||
First quarter
|
6
|
44/83
|
5
|
4/21
|
||
Fiscal year ended December 31, 2011
|
12
|
19/50
|
4
|
10/13
|
||
Fiscal year ended December 31, 2010
|
13
|
33/50
|
5
|
9/20
|
||
Fiscal year ended December 31, 2009
|
7
|
16/39
|
1
|
4/5
|
|
§
|
the “Floor”;
|
|
§
|
the “SINAC”; and
|
|
§
|
the “Continuous”.
|
December 31,
|
||||||||||||
2013
|
2012
|
2011
|
||||||||||
Market capitalization (US$ billion)
|
514.5 | 472.1 | 375.2 | |||||||||
Number of companies listed
|
105 | 107 | 105 | |||||||||
Rate of return in dollars (1)
|
42.30 | % | 1.60 | % | (35.40 | )% | ||||||
Market/book ratio (2)
|
1.73 | 1.03 | 1.48 |
(1)
|
Based on the Merval Index
|
(2)
|
Estimated
|
A.
|
Share Capital
|
B.
|
Memorandum and Articles of Association
|
|
§
|
accept term and demand deposits;
|
|
§
|
grant short-term bullet and other amortizable loans;
|
|
§
|
discount, purchase and sell bills of exchange, promissory notes, pledges, checks, drafts and other negotiable instruments;
|
|
§
|
grant guarantees, bonds or other forms of collateral; accept bills of exchange, drafts and other orders of payment, transfer funds and issue and accept letters of credit;
|
|
§
|
grant advances on credits from property sales, acquire the same and undertake the risks resulting therefrom, take steps to collect them and offer technical and administrative assistance;
|
|
§
|
invest in government securities;
|
|
§
|
make temporary investments in liquid assets;
|
|
§
|
invest in new stock or securities issues, in pursuance of such regulations as may be set forth to that purpose;
|
|
§
|
accept securities in custody and provide other services related to the banking business;
|
|
§
|
manage, on account of third parties, the purchase and sale of securities, and act as paying agents in relation to dividends, redemption and interest;
|
|
§
|
engage in brokerage activities in the over-the-counter securities market;
|
|
§
|
perform foreign exchange transactions;
|
|
§
|
comply with agencies related to its operations;
|
|
§
|
receive deposits of participation in mortgage loans and in special accounts;
|
|
§
|
issue mortgage obligations;
|
|
§
|
grant loans for the acquisition, construction, enlargement, repair, improvement and maintenance of urban or rural real estate, and for the substitution of mortgages taken out for that same purpose;
|
|
§
|
receive loans from abroad and act as intermediary in local or foreign currency-denominated loans;
|
|
§
|
issue private bonds, and
|
|
§
|
carry out such lending, borrowing and service-related operations as are not forbidden under the Financial Institutions Law.
|
|
§
|
the Bank falls under the provisions of articles 34 “Regularization and restructuring” and 35 bis “Restructuring of the entity for the protection of credit and bank deposits” of the Financial Entities Law;
|
|
§
|
the Bank has received financial assistance from the Central Bank, other than assistance received for lack of liquidity in terms of Decree Nr. 739/03 and its regulatory provisions (Communication “A” 3941 and complementary ones), within the framework of article 17 of this Bank’s Charter, and in terms of the transactions foreseen by Communication A 4268;
|
|
§
|
the Bank incurs delays or noncompliance with respect to the information system set forth by the BCRA; or
|
|
§
|
the Bank shows deficiencies as to the payment of its minimum capital, either individually or on a consolidated basis (without computing for such purpose the effects of individual franchises granted by the Superintendence of Financial and Foreign Exchange Entities) or as regards its average minimum cash requirements in pesos or foreign currencies.
|
C.
|
Material Contracts
|
D.
|
Exchange Controls
|
|
(i)
|
all incoming and outgoing funds from the Argentine Exchange market, and any debt operation with non-residents which could demand future payments in foreign currency to non-residents, are subject to registration with the Central Bank for informative purposes;
|
|
(ii)
|
any debt entered into between non-governmental persons or entities and non-residents must be agreed for a term of at least 365 days, except for the financing of import and export operations and the primary placements of public debt listed in an authorized stock exchange; and
|
|
(iii)
|
all incoming funds relating to foreign private debt, and all incoming funds of non-residents, excluding foreign direct investments and certain types of portfolio investments (purchases in the primary market of debt instruments and equity, listed in authorized stock exchanges, etc) regardless of the agreed payment procedure, must be agreed for at least 365 days, and 30% of incoming funds must be deposited with a bank in Argentina in a non-interest bearing account, known as “encaje” (legal reserve)
|
|
§
|
Pay abroad interest on foreign debt on its due date or up to 5 business days in advance. Access to the local foreign exchange market in connection with the servicing of foreign indebtedness is available only if and after the date the original proceeds from the financing have been transferred into Argentina and the foreign currencies liquidated as explained before. In case interests are due, access to foreign exchange may be available at any time. If the principal amount has been paid off access to the local market to pay interests shall be denied. The AFIP Regulation 3417 published on December 20, 2012 set forth that the payment of interests requires a prior sworn statement.
|
|
§
|
Repay principal of foreign debt at maturity (or 10 days in advance, to the extent that the amounts so prepaid were brought into the local market and exchanged for pesos, and repayment takes place at least 365 days thereof) without prior Central Bank authorization. Communication “A” 5265 (as amended) also allows prepayment of principal with an anticipation of more than 10 days, but subject to the following conditions:
|
|
(1)
|
The prepayment of principal is entirely financed by external funds through capital contributions.
|
|
(2)
|
The prepayment is financed entirely from the market entry of new financing with international organizations and agencies, official lending agencies of foreign and foreign banks and, the new terms and conditions of the debt after the restructuring, including the amount prepaid, shall not result in an increase of the present value of the whole debt (according to the formula of the Central Bank).
|
A.
|
Local individuals and companies
|
B.
|
Non-residents
|
|
§
|
Transfers abroad arising out of:
|
|
(1)
|
Residents foreign indebtedness of residents related to Argentine imports of goods and services;
|
|
(2)
|
Domestic collections of:
|
|
-
|
Services, rents and other current transfers abroad of financial debts originated in non-residents foreign loans;
|
|
-
|
Inheritances according to the Declaration of a Decedent’s Heirs;
|
|
-
|
Federal Government Bonds and Guaranteed Loans Income issued in local currency;
|
|
-
|
Benefits or services or sale of values received, granted by the Federal Government as per Laws Nr. 24,043, 24,411 and 25.914.
|
|
-
|
Recoveries under local bankruptcy proceedings as long as the foreign creditor has been admitted as such by the Bankruptcy Court;
|
|
(3)
|
Sales proceeds from direct investments in local non-financial companies; and
|
|
(4)
|
The proceeds from final liquidation of direct investments in local non-financial companies;
|
|
(5)
|
Capital reduction; and
|
|
(6)
|
Restitution of irrevocable contributions made by the local company.
|
|
§
|
Transfers abroad of an aggregate equivalent of up to US$500,000 per month arising out of:
|
|
(1)
|
Proceeds of sales of other portfolio investments and their revenues, such as investments in shares of local companies, investment funds and local trusts;
|
|
§
|
International bodies or entities that operate as official export credit agencies.
|
|
§
|
Diplomatic and consular representations as well as diplomatic staff accredited in the country for transfers made in exercise of their duties.
|
|
§
|
Direct investments in Argentina of non-Argentine residents
|
|
§
|
Direct investments made abroad by Argentine residents
|
E.
|
Taxation
|
1.
|
Argentine Taxes
|
2.
|
U.S. Federal Income Tax Considerations
|
|
§
|
certain financial institutions;
|
|
§
|
dealers and traders in securities who use a mark-to-market method of tax accounting;
|
|
§
|
persons holding ADSs or ordinary shares as part of a hedging transaction, straddle, wash sale, conversion transaction or integrated transaction or persons entering into a constructive sale with respect to ADSs or the ordinary shares;
|
|
§
|
persons whose functional currency for U.S. federal income tax purposes is not the U.S. dollar;
|
|
§
|
entities classified as partnerships for U.S. federal income tax purposes;
|
|
§
|
tax-exempt entities, including “individual retirement accounts” or “Roth IRAs”;
|
|
§
|
persons that own or are deemed to own ten percent or more of our voting stock; or
|
|
§
|
persons who acquired ADSs or ordinary shares pursuant to the exercise of an employee stock option or otherwise as compensation.
|
|
§
|
a citizen or individual resident of the United States;
|
|
§
|
a corporation, or other entity taxable as a corporation, created or organized in or under the laws of the United States, any state therein or the District of Columbia; or
|
|
§
|
an estate or trust the income of which is subject to U.S. federal income taxation regardless of its source.
|
F.
|
Dividends and paying agents
|
G.
|
Statement by experts
|
H.
|
Documents on Display
|
I.
|
Subsidiary information
|
2013
|
2012
|
||
Average
|
2.77
|
1.73
|
|
Minimum
|
1.13
|
0.95
|
|
Maximum
|
5.72
|
2.90
|
|
Dec. 31
|
4.90
|
1.76
|
Interest Risk VaR
|
2013
|
2012
|
||
Average
|
1.36
|
1.64
|
||
Minimum
|
0.28
|
0.85
|
||
Maximum
|
5.68
|
2.78
|
||
Dec. 31
|
0.28
|
1.66
|
Currency Risk VaR
|
2013
|
2012
|
||
Average
|
2.24
|
0.60
|
||
Minimum
|
0.28
|
0.16
|
||
Maximum
|
5.08
|
1.33
|
||
Dec. 31
|
4.89
|
0.68
|
December 31, 2013
|
||||||||||||||||||||||||||
Change in base
interest rates
(basis points)
|
Net portfolio
value
|
Percentage
change
|
Net interest and
adjust income
|
Percentage
change
|
Net income of
adjustable
portfolio
|
Percentage
change
|
||||||||||||||||||||
(in millions of pesos, except percentages)
|
||||||||||||||||||||||||||
100 | 14,314.7 | (1.60 | )% | 5,913.1 | 0.74 | % | (73.9 | ) | 14.65 | % | ||||||||||||||||
50 | 14,425.5 | (0.83 | )% | 5,891.3 | 0.37 | % | (69.1 | ) | 7.34 | % | ||||||||||||||||
0 | 14,546.9 | 0.00 | % | 5,869.5 | 0.00 | % | (64.4 | ) | 0.00 | % | ||||||||||||||||
(50 | ) | 14,681.6 | 0.93 | % | 5,847.8 | (0.37 | )% | (59.7 | ) | (7.37 | )% | |||||||||||||||
(100 | ) | 14,833.1 | 1.97 | % | 5,826.0 | (0.74 | )% | (54.9 | ) | (14.77 | )% |
Peso against all other currencies
|
Effect on net income based on our position as of December 31, 2013
|
Effect on net income based on our position as of December 31, 2012
|
||||||||
(in millions of pesos, except percentages)
|
||||||||||
5% | (125) | (25) | ||||||||
(5)% | 125 | 25 |
A.
|
Debt securities
|
B.
|
Warrants and rights
|
C.
|
Other securities
|
D.
|
American Depositary Shares
|
Persons depositing or withdrawing shares must pay:
|
For:
|
|
US$5.00 (or less) per 100 ADRs (or portion of 100 ADRs)
|
§ Issuance of ADRs, including issuances resulting from a distribution, sale or exercise of shares or rights or other property
§ Cancellation of ADRs for the purpose of withdrawal including if the deposit agreement terminates
|
|
A fee equivalent to the fee that would be payable if securities distributed to you had been shares and the shares had been deposited for issuance of ADRs
|
§ Distribution of securities distributed to holders of deposited securities which are distributed by the depositary to ADR registered holders
|
|
Registration or transfer fees
|
§ Transfer and registration of shares on the Company’s share register to or from the name of the depositary or its agent when you deposit or withdraw shares
|
Expenses of the depositary
|
§ Cable, telex and facsimile transmissions (when expressly provided in the deposit agreement)
§ Converting foreign currency to U.S. dollars
|
|
Taxes and other governmental charges the depositary or the custodian have to pay on any ADR or share underlying an ADR, for example, stock transfer taxes, stamp duty or withholding taxes
|
§ As necessary
|
|
Any charges incurred by the depositary or its agents for servicing the deposited securities
|
§ As necessary
|
|
§
|
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Bank;
|
|
§
|
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of the Bank’s management and directors; and
|
|
§
|
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.
|
e-mail address:
|
v.bories@bbva.com
|
2013
|
2012
|
|||||||
(in millions of pesos)
|
||||||||
Audit fees
|
10.22 | 8.06 | ||||||
Audit-related fees
|
— | — | ||||||
Tax fees
|
0.75 | 0.49 | ||||||
All other fees
|
— | — | ||||||
Total fees
|
10.97 | 8.55 |
§
|
Index to Consolidated Financial Statements:
|
|
Page
|
Report of Independent Registered Public Accounting Firm
|
F-2
|
Consolidated Balance Sheets as of December 31, 2013 and 2012
|
F-4
|
Consolidated Statements of Operations for the fiscal years ended December 31, 2013, 2012 and 2011
|
F-8
|
Consolidated Statements of Cash and Cash Equivalents Flows for the fiscal years ended December 31, 2013, 2012 and 2011
|
F-10
|
Consolidated Statements of Changes in Stockholders’ Equity for the fiscal years ended December 31, 2013, 2012 and 2011
|
F-13
|
Notes to the Consolidated Financial Statements
|
F-14
|
§
|
Index to Exhibits:
|
Exhibit
Number
|
Description
|
|
1.1
|
Amended and Restated By-Laws (Estatutos) of BBVA Francés*
|
|
1.2
|
English translation of the Amended and Restated By-Laws (Estatutos) of BBVA Francés*
|
|
8.1
|
Subsidiaries of the Company
|
|
12.1
|
Section 302 Certification of Chief Executive Officer
|
|
12.2
|
Section 302 Certification of Chief Financial Officer
|
|
13.1
|
Section 906 Certification pursuant to 18 U.S.C. Section 1350
|
(*)
|
Incorporated by reference in the BBVA Banco Francés Annual Report on Form 20-F for the year ended December 31, 2012 filed with the Securities and Exchange Commission on April 10, 2013.
|
BBVA BANCO FRANCÉS S.A.
|
|||
By: |
/s/ Ignacio Sanz y Arcelus
|
||
Name: | Ignacio Sanz y Arcelus | ||
Title: | Chief Financial Officer |
|
Page
|
December 31,
|
||||||||
2013
|
2012
|
|||||||
ASSETS
|
||||||||
CASH AND DUE FROM BANKS
|
12,881,781 | 8,614,889 | ||||||
Cash
|
2,063,205 | 1,879,436 | ||||||
Due from banks and correspondents
|
10,818,576 | 6,735,453 | ||||||
Argentine Central Bank (BCRA)
|
10,576,744 | 6,597,330 | ||||||
Other local
|
2,846 | 746 | ||||||
Foreign
|
238,986 | 137,377 | ||||||
GOVERNMENT AND PRIVATE SECURITIES (Note 6.a)
|
3,459,935 | 4,101,846 | ||||||
Holdings booked at fair value
|
1,982,431 | 1,832,079 | ||||||
Holdings booked at amortized cost
|
164 | 164 | ||||||
Instruments issued by the BCRA
|
1,408,487 | 2,201,676 | ||||||
Investments in listed private securities
|
69,049 | 68,115 | ||||||
Less: Allowances
|
196 | 188 | ||||||
LOANS
|
36,468,194 | 28,493,431 | ||||||
To governmental sector
|
40,915 | 35,067 | ||||||
To financial sector
|
1,871,093 | 1,493,493 | ||||||
Inter-financial – (Calls granted)
|
313,500 | 162,000 | ||||||
Other financing to local financial institutions
|
1,328,346 | 1,127,298 | ||||||
Interest and listed-price differences accrued and pending of collection
|
229,247 | 204,195 | ||||||
To non-financial private sector and residents abroad:
|
35,278,648 | 27,488,728 | ||||||
Overdraft
|
6,552,258 | 5,097,179 | ||||||
Discounted instruments
|
5,476,961 | 4,240,993 | ||||||
Real estate mortgage
|
1,243,900 | 877,775 | ||||||
Collateral loans
|
3,479,820 | 2,479,398 | ||||||
Consumer
|
5,998,744 | 4,772,798 | ||||||
Credit cards
|
7,429,187 | 4,729,243 | ||||||
Other
|
4,647,736 | 4,921,690 | ||||||
Interest and listed-price differences accrued and pending of collection
|
582,255 | 443,065 | ||||||
Less: Interest documented together with main obligation
|
132,213 | 73,413 | ||||||
Less: Allowances
|
722,462 | 523,857 | ||||||
Carried forward
|
52,809,910 | 41,210,166 |
December 31,
|
||||||||
2013
|
2012
|
|||||||
Brought forward
|
52,809,910 | 41,210,166 | ||||||
OTHER RECEIVABLES FROM FINANCIAL TRANSACTIONS
|
1,168,491 | 700,925 | ||||||
Argentine Central Bank (BCRA)
|
624,368 | 537,997 | ||||||
Amounts receivable for spot and forward sales to be settled
|
260,046 | 931 | ||||||
Instruments to be received for spot and forward purchases to be settled
|
72,567 | 18 | ||||||
Unlisted corporate bonds
|
3,401 | 15,973 | ||||||
Non-deliverable forward transactions balances to be settled
|
6,744 | 8,834 | ||||||
Other receivables not covered by debtor classification regulations
|
4,135 | 404 | ||||||
Other receivables covered by debtor classification regulations (Note 6.b)
|
202,274 | 140,218 | ||||||
Less: Allowances
|
5,044 | 3,450 | ||||||
RECEIVABLES FROM FINANCIAL LEASES
|
1,777,778 | 1,110,234 | ||||||
Receivables from financial leases
|
1,778,235 | 1,108,152 | ||||||
Interest accrued pending of collection
|
22,040 | 15,316 | ||||||
Less: Allowances
|
22,497 | 13,234 | ||||||
INVESTMENTS IN OTHER COMPANIES
|
210,657 | 146,001 | ||||||
In Financial institutions
|
152,036 | 98,506 | ||||||
Other (Note 6.c)
|
58,621 | 47,495 | ||||||
OTHER RECEIVABLES
|
1,065,297 | 834,585 | ||||||
Other (Note 6.d)
|
1,359,404 | 1,135,000 | ||||||
Other interest accrued and pending collection
|
3,478 | 6,114 | ||||||
Less: Allowances
|
297,585 | 306,529 | ||||||
PREMISES AND EQUIPMENT
|
704,995 | 619,981 | ||||||
OTHER ASSETS
|
659,997 | 34,095 | ||||||
INTANGIBLE ASSETS
|
120,755 | 117,331 | ||||||
Organization and development expenses
|
120,755 | 117,331 | ||||||
SUSPENSE ITEMS
|
5,294 | 10,811 | ||||||
OTHER SUBSIDIARIES’ ASSETS (Note 6.e)
|
450 | 450 | ||||||
TOTAL ASSETS
|
58,523,624 | 44,784,579 | ||||||
December 31,
|
||||||||
2013
|
2012
|
|||||||
LIABILITIES
|
||||||||
DEPOSITS
|
43,759,465 | 34,165,053 | ||||||
Governmental sector
|
2,780,304 | 2,122,608 | ||||||
Financial sector
|
45,961 | 18,787 | ||||||
Non-financial private sector and residents abroad:
|
40,933,200 | 32,023,658 | ||||||
Checking accounts
|
9,947,241 | 8,791,731 | ||||||
Savings deposits
|
11,902,472 | 9,803,777 | ||||||
Time deposits
|
17,910,820 | 12,653,990 | ||||||
Investments accounts
|
4,027 | 6,929 | ||||||
Other
|
916,985 | 639,281 | ||||||
Interest and listed—price differences accrued payable
|
251,655 | 127,950 | ||||||
OTHER LIABILITIES FROM FINANCIAL TRANSACTIONS
|
4,943,260 | 3,285,123 | ||||||
Argentine Central Bank — Other
|
93,746 | 51,936 | ||||||
Banks and International Institutions
|
106,178 | 262,770 | ||||||
Non — subordinated corporate bonds
|
1,190,761 | 649,993 | ||||||
Amounts payable for spot and forward purchases to be settled
|
63,298 | 18 | ||||||
Instruments to be delivered for spot and forward sales to be settled
|
273,672 | 926 | ||||||
Financing received from Argentine financial institutions
|
426,238 | 344,683 | ||||||
Inter-financial - (Calls received)
|
— | 20,000 | ||||||
Other financing from local financial institutions
|
426,238 | 324,655 | ||||||
Interest accrued payable
|
— | 28 | ||||||
Non-deliverable forward transactions balances to be settled
|
47,245 | 928 | ||||||
Other (Note 6.f)
|
2,648,545 | 1,939,689 | ||||||
Interest and listed—Price differences accrued payable
|
93,577 | 34,180 | ||||||
OTHER LIABILITIES
|
1,752,967 | 1,419,180 | ||||||
Fees payable
|
189 | 103 | ||||||
Other (Note 6.g)
|
1,752,778 | 1,419,077 | ||||||
ALLOWANCES
|
709,343 | 644,962 | ||||||
SUSPENSE ITEMS
|
29,677 | 20,007 | ||||||
OTHER SUBSIDIARIES’ LIABILITIES (Note 6.h)
|
337 | 337 | ||||||
TOTAL LIABILITIES
|
51,195,049 | 39,534,662 | ||||||
MINORITY INTEREST IN SUBSIDIARIES (Note 16)
|
172,395 | 117,981 | ||||||
STOCKHOLDERS’ EQUITY
|
7,156,180 | 5,131,936 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
58,523,624 | 44,784,579 | ||||||
December 31,
|
||||||||
2013
|
2012
|
|||||||
MEMORANDUM ACCOUNTS
|
||||||||
DEBIT ACCOUNTS
|
||||||||
Contingent
|
13,415,778 | 8,699,746 | ||||||
Borrowings (unused balances)
|
— | 43,950 | ||||||
Guarantees received
|
12,125,408 | 7,759,627 | ||||||
Contra contingent debit accounts
|
1,290,370 | 896,169 | ||||||
Control
|
155,361,065 | 67,942,089 | ||||||
Receivables classified as non-recoverable
|
432,256 | 371,935 | ||||||
Other (Note 6.i)
|
153,384,808 | 65,927,867 | ||||||
Contra control debit accounts
|
1,544,001 | 1,642,287 | ||||||
Derivatives
|
8,653,218 | 7,197,154 | ||||||
“Notional” amount of non-deliverable forward transactions
|
5,414,377 | 3,452,819 | ||||||
Interest rate SWAP
|
1,367,098 | 878,657 | ||||||
Contra derivatives debit accounts
|
1,871,743 | 2,865,678 | ||||||
For trustee activities
|
6,582 | 6,585 | ||||||
Funds in trust
|
6,582 | 6,585 | ||||||
TOTAL
|
177,436,643 | 83,845,574 | ||||||
CREDIT ACCOUNTS
|
||||||||
Contingent
|
13,415,778 | 8,699,746 | ||||||
Credit lines granted (unused portion) covered by debtor classification regulations
|
453,478 | 322,959 | ||||||
Guarantees provided to the BCRA
|
191,303 | 131,094 | ||||||
Other guarantees given covered by debtor classification regulations
|
287,575 | 188,521 | ||||||
Other guarantees given non-covered by debtor classification regulations
|
158,783 | 177,080 | ||||||
Other covered by debtor classification regulations
|
199,231 | 76,515 | ||||||
Contra contingent credit accounts
|
12,125,408 | 7,803,577 | ||||||
Control
|
155,361,065 | 67,942,089 | ||||||
Items to be credited
|
1,186,195 | 1,404,173 | ||||||
Other
|
357,806 | 238,114 | ||||||
Contra control credit accounts
|
153,817,064 | 66,299,802 | ||||||
Derivatives
|
8,653,218 | 7,197,154 | ||||||
“Notional” amount of non-deliverable forward transactions
|
1,871,743 | 2,865,678 | ||||||
Contra derivatives credit accounts
|
6,781,475 | 4,331,476 | ||||||
For trustee activities
|
6,582 | 6,585 | ||||||
Contra credit accounts for trustee activities
|
6,582 | 6,585 | ||||||
TOTAL
|
177,436,643 | 83,845,574 | ||||||
Fiscal year ended December 31,
|
||||||||||||
2013
|
2012
|
2011
|
||||||||||
FINANCIAL INCOME
|
8,243,409 | 5,714,921 | 3,814,685 | |||||||||
Interest cash and due from banks
|
54 | — | 2 | |||||||||
Interest on loans to the financial sector
|
282,006 | 256,597 | 136,903 | |||||||||
Interest on overdraft
|
1,263,611 | 725,890 | 420,127 | |||||||||
Interest on discounted instruments
|
786,773 | 543,602 | 318,039 | |||||||||
Interest on real estate mortgage
|
164,783 | 119,883 | 126,164 | |||||||||
Interest on collateral loans
|
600,793 | 404,299 | 192,420 | |||||||||
Interest on credit card loans
|
995,086 | 625,692 | 361,658 | |||||||||
Interest on other loans
|
2,202,956 | 1,637,284 | 1,097,407 | |||||||||
Interest on other receivables from financial transactions
|
40,771 | 36,376 | 31,725 | |||||||||
Interest on financial leases
|
239,853 | 161,775 | 116,659 | |||||||||
Income from Federal Government secured loans—Decree Nr. 1387/01
|
8,840 | 6,388 | 40,165 | |||||||||
Net income from governmental and private securities
|
352,223 | 640,547 | 493,185 | |||||||||
Net income from options
|
— | 255 | 404 | |||||||||
Indexation by Benchmark Stabilization Coefficient (CER)
|
133,323 | 129,120 | 96,873 | |||||||||
Gold and foreign currency exchange difference
|
590,982 | 190,309 | 218,622 | |||||||||
Other
|
581,355 | 236,904 | 164,332 | |||||||||
FINANCIAL EXPENSES
|
3,253,810 | 2,057,871 | 1,345,403 | |||||||||
Interest on savings deposits
|
14,772 | 11,148 | 9,183 | |||||||||
Interest on time deposits
|
2,372,658 | 1,526,725 | 1,044,929 | |||||||||
Interest on inter-financial financing - (Calls received)
|
8,495 | 2,191 | 2,763 | |||||||||
Interest on other financing from financial institutions
|
96,359 | 44,330 | 31,969 | |||||||||
Interest on other liabilities from financial transactions
|
171,607 | 123,289 | 34,054 | |||||||||
Other interest
|
7,611 | 5,885 | 6,552 | |||||||||
Indexation by CER
|
104 | 157 | 168 | |||||||||
Contribution to the deposit guarantee fund
|
62,932 | 52,629 | 44,205 | |||||||||
Other
|
519,872 | 291,517 | 171,580 | |||||||||
GROSS INTERMEDIATION MARGIN—GAIN
|
4,989,599 | 3,657,050 | 2,469,282 | |||||||||
ALLOWANCES FOR DOUBTFUL LOANS
|
453,264 | 256,259 | 132,663 | |||||||||
SERVICE CHARGE INCOME
|
3,453,850 | 2,530,197 | 1,957,589 | |||||||||
Related to lending transactions
|
1,470,082 | 962,601 | 690,426 | |||||||||
Related to liability transactions
|
1,132,941 | 909,719 | 736,550 | |||||||||
Other commissions
|
125,000 | 109,874 | 107,934 | |||||||||
Other (Note 6.j)
|
725,827 | 548,003 | 422,679 | |||||||||
Carried forward
|
7,990,185 | 5,930,988 | 4,294,208 | |||||||||
Fiscal year ended December 31,
|
||||||||||||
2013
|
2012
|
2011
|
||||||||||
Brought forward
|
7,990,185 | 5,930,988 | 4,294,208 | |||||||||
SERVICE CHARGE EXPENSE
|
955,329 | 683,730 | 519,635 | |||||||||
Commissions
|
616,635 | 468,422 | 366,352 | |||||||||
Other (Note 6.k)
|
339,694 | 215,308 | 153,283 | |||||||||
OPERATING EXPENSES
|
3,900,469 | 3,061,708 | 2,343,200 | |||||||||
Payroll expenses
|
2,209,640 | 1,767,658 | 1,350,439 | |||||||||
Fees to Bank Directors and Supervisory Committee
|
3,796 | 2,856 | 2,398 | |||||||||
Other professional fees
|
63,618 | 48,463 | 41,209 | |||||||||
Advertising and publicity
|
172,307 | 146,287 | 122,412 | |||||||||
Taxes
|
332,455 | 229,249 | 176,381 | |||||||||
Fixed assets depreciation
|
100,766 | 86,813 | 65,070 | |||||||||
Organizational expenses amortization
|
48,997 | 40,744 | 28,937 | |||||||||
Other operating expenses
|
551,798 | 420,847 | 328,371 | |||||||||
Other
|
417,092 | 318,791 | 227,983 | |||||||||
NET GAIN FROM FINANCIAL TRANSACTIONS
|
3,134,387 | 2,185,550 | 1,431,373 | |||||||||
NET LOSS ON MINORITY INTEREST IN SUBSIDIARIES
|
(54,414 | ) | (36,195 | ) | (8,462 | ) | ||||||
OTHER INCOME
|
361,531 | 408,004 | 328,759 | |||||||||
Income from long-term investments
|
96,686 | 71,779 | 111,461 | |||||||||
Punitive interests
|
15,000 | 9,392 | 4,585 | |||||||||
Loans recovered and reversals of allowances
|
136,116 | 64,603 | 78,430 | |||||||||
Other (Note 6.l)
|
113,729 | 262,230 | 134,283 | |||||||||
OTHER EXPENSES
|
295,800 | 429,004 | 193,735 | |||||||||
Punitive interests and charges paid to BCRA
|
32 | 33 | 332 | |||||||||
Charge for uncollectibility of other receivables and other allowances
|
166,288 | 351,450 | 128,095 | |||||||||
Amortization of difference arising from judicial resolutions
|
40,472 | 19,251 | 28,419 | |||||||||
Depreciation and losses from miscellaneous assets
|
395 | 376 | 369 | |||||||||
Other (Note 6.m)
|
88,613 | 57,894 | 36,520 | |||||||||
NET GAIN BEFORE INCOME TAX AND TAX ON MINIMUM PRESUMED INCOME
|
3,145,704 | 2,128,355 | 1,557,935 | |||||||||
INCOME TAX AND TAX ON MINIMUM PRESUME INCOME
|
1,121,460 | 864,676 | 552,358 | |||||||||
NET INCOME FOR THE FISCAL YEAR
|
2,024,244 | 1,263,679 | 1,005,577 | |||||||||
NET INCOME PER ORDINARY SHARE (1) (2)
|
3.77 | 2.35 | 1.87 | |||||||||
(1)
|
See Note 21.13.
|
(2)
|
Stated in pesos.
|
Fiscal year ended December 31,
|
||||||||||||
2013
|
2012
|
2011 (2)
|
||||||||||
CHANGES IN CASH AND ITS EQUIVALENTS
|
||||||||||||
Cash and its equivalents at the beginning of fiscal year
|
9,048,450 |
(1)
|
6,618,270 |
(1)
|
6,251,784 | |||||||
Cash and its equivalents at the end of the fiscal year
|
13,603,620 |
(1)
|
9,048,450 |
(1)
|
6,618,270 |
(1)
|
||||||
Net increase in cash and its equivalents
|
4,555,170 | 2,430,180 | 366,486 | |||||||||
REASONS FOR CHANGES IN CASH AND ITS EQUIVALENTS
|
||||||||||||
Operating activities
|
||||||||||||
Net collections/ (payments) from:
|
||||||||||||
- Governmental and private securities
|
1,007,557 | 2,120,841 | 2,066,402 | |||||||||
- Loans
|
(302,666 | ) | (683,307 | ) | (2,931,804 | ) | ||||||
to financial sector
|
(77,548 | ) | (91,157 | ) | (449,005 | ) | ||||||
to non-financial public sector
|
186 | 16,089 | 620,337 | |||||||||
to non-financial private sector and residents abroad
|
(225,304 | ) | (608,239 | ) | (3,103,136 | ) | ||||||
- Other receivables from financial transactions
|
(80,137 | ) | (74,709 | ) | 18,171 | |||||||
- Receivables from financial leases
|
(667,544 | ) | (203,147 | ) | (372,630 | ) | ||||||
- Deposits
|
6,571,906 | 3,076,345 | 5,409,329 | |||||||||
to financial sector
|
27,174 | (25,095 | ) | 33,476 | ||||||||
to non-financial public sector
|
654,084 | 1,013,503 | 342,097 | |||||||||
to non-financial private sector and residents abroad
|
5,890,648 | 2,087,937 | 5,033,756 | |||||||||
- Other liabilities from financial transactions
|
738,160 | 185,939 | 545,834 | |||||||||
Financing from financial or inter-financial sector (calls received)
|
(20,000 | ) | (94,200 | ) | 109,100 | |||||||
Others (except liabilities included in Financing Activities)
|
758,160 | 280,139 | 436,734 | |||||||||
Collections related to service charge income
|
3,438,856 | 2,520,560 | 1,951,823 | |||||||||
Payments related to service charge expense
|
(953,954 | ) | (684,368 | ) | (515,003 | ) | ||||||
Operating expenses paid
|
(3,657,538 | ) | (2,870,089 | ) | (2,195,913 | ) | ||||||
Organizational and development expenses paid
|
(46,985 | ) | (36,188 | ) | (18,302 | ) | ||||||
Net collections from punitive interest
|
13,388 | 8,290 | 4,253 | |||||||||
Differences from judicial resolutions paid
|
(40,472 | ) | (19,251 | ) | (28,419 | ) | ||||||
Collections of dividends from other companies
|
33,692 | 37,264 | 8,494 | |||||||||
Other collections related to other income and expenses
|
208,428 | 325,554 | 273,653 | |||||||||
Net cash flows provided by operating activities
|
6,262,691 | 3,703,734 | 4,215,888 | |||||||||
Investment activities
|
||||||||||||
Net payments from premises and equipment
|
(185,537 | ) | (126,673 | ) | (121,583 | ) | ||||||
Net payments from other assets
|
(626,540 | ) | (5,774 | ) | (1,313 | ) | ||||||
Collections from sales of ownership interests in other companies
|
— | 15,174 | 255,757 | |||||||||
Other payments from investment activities
|
(350,362 | ) | (574,700 | ) | (538,031 | ) | ||||||
Net cash flows used in investment activities
|
(1,162,439 | ) | (691,973 | ) | (405,170 | ) | ||||||
Fiscal year ended December 31,
|
||||||||||||
2013
|
2012
|
2011 (2)
|
||||||||||
Financing activities
|
||||||||||||
Net collections/ (payments) from:
|
||||||||||||
- Non-subordinated corporate bonds
|
540,768 | 355,600 | 224,393 | |||||||||
- BCRA
|
41,482 | 33,463 | 15,570 | |||||||||
Others
|
41,482 | 33,463 | 15,570 | |||||||||
- Banks and international agencies
|
(156,592 | ) | (300,568 | ) | 474,802 | |||||||
- Financing received from local financial institutions
|
101,583 | 99,312 | 109,100 | |||||||||
Capital contributions
|
— | — | 7,896 | |||||||||
Dividends paid in cash
|
— | — | (818,258 | ) | ||||||||
Other payments from financing activities
|
(1,072,377 | ) | (769,388 | ) | (3,457,737 | ) | ||||||
Net cash flows used in financing activities
|
(545,136 | ) | (581,581 | ) | (3,444,234 | ) | ||||||
Financial results and results from holdings of cash and its equivalents (including interest)
|
54 | — | 2 | |||||||||
Net increase in cash and its equivalents
|
4,555,170 | 2,430,180 | 366,486 |
(1)
|
See Note 3.4.20.
|
(2)
|
See Note 3.3.
|
Non-capitalized contributions
|
Retained earnings
|
|||||||||||||||||||||||||||||||
Movements
|
Capital
Stock(1)
|
Issuance
premiums(1)
|
Adjustments to
stockholders’
equity(1)
|
Legal
|
Other
|
Unrealized
valuation
difference
|
Unappropriated
earnings
|
Total
|
||||||||||||||||||||||||
Balances at December 31, 2010
|
536,361 | 175,132 | 312,979 | 802,385 | — | 88,131 | 1,831,927 | 3,746,915 | ||||||||||||||||||||||||
Decisions of Stockholders’ Meeting of March 30, 2011:
|
||||||||||||||||||||||||||||||||
- Dividends paid in cash
|
— | — | — | — | — | — | (804,000 | ) | (804,000 | ) | ||||||||||||||||||||||
- Legal Reserve
|
— | — | — | 239,636 | — | — | (239,636 | ) | — | |||||||||||||||||||||||
Subscription of shares approved by Stockholders´ Meeting held on March 30, 2011
|
517 | 7,379 | — | — | — | — | — | 7,896 | ||||||||||||||||||||||||
Unrealized valuation difference
|
— | — | — | — | — | (88,131 | ) | — | (88,131 | ) | ||||||||||||||||||||||
Net income for the fiscal year
|
— | — | — | — | — | — | 1,005,577 | 1,005,577 | ||||||||||||||||||||||||
Balances at December 31, 2011
|
536,878 | 182,511 | 312,979 | 1,042,021 | — | — | 1,793,868 | 3,868,257 | ||||||||||||||||||||||||
Decisions of Stockholders’ Meeting of March 26, 2012:
|
||||||||||||||||||||||||||||||||
- Legal Reserve
|
— | — | — | 201,115 | — | — | (201,115 | ) | — | |||||||||||||||||||||||
- Voluntary reserve for future
distributions of income
|
— | — | — | — | 1,592,753 | — | (1,592,753 | ) | — | |||||||||||||||||||||||
Net income for the fiscal year
|
— | — | — | — | — | — | 1,263,679 | 1,263,679 | ||||||||||||||||||||||||
Balances at December 31, 2012
|
536,878 | 182,511 | 312,979 | 1,243,136 | 1,592,753 | — | 1,263,679 | 5,131,936 | ||||||||||||||||||||||||
Decisions of Stockholders’ Meeting of April 9, 2013:
|
||||||||||||||||||||||||||||||||
- Legal Reserve
|
— | — | — | 252,736 | — | — | (252,736 | ) | — | |||||||||||||||||||||||
- Voluntary reserve for future
distributions of income
|
— | — | — | — | 1,010,943 | — | (1,010,943 | ) | — | |||||||||||||||||||||||
Net income for the fiscal year
|
— | — | — | — | — | — | 2,024,244 | 2,024,244 | ||||||||||||||||||||||||
Balances at December 31, 2013
|
536,878 | 182,511 | 312,979 | 1,495,872 | 2,603,696 | — | 2,024,244 | 7,156,180 |
(1)
|
See Note 1.2.
|
NOTE 1—CORPORATE SITUATION AND BANK’S ACTIVITIES
|
|
1.1.
|
Corporate situation
|
|
1.2.
|
Stockholders’ Equity
|
|
1.2.1.
|
Capital stock
|
Date of
|
|||||||||
Stockholders’ Meeting deciding on the issuance
|
Registration with the Public Registry of Commerce
|
Form of
placement
|
Amount
(in thousands)
|
Total
|
|||||
Capital Stock as of December 31, 2008:
|
471,361
|
||||||||
03-27-2009
|
10-05-2009
|
(1)
|
65,000
|
536,361
|
|||||
03-30-2011
|
09-14-2011
|
(2)
|
517
|
536,878
|
(3)
|
||||
03-26-2012
|
03-27-2014
|
(4)
|
50,410
|
||||||
03-26-2012
|
03-27-2014
|
(4)
|
(50,410)
|
536,878
|
|
(1)
|
For payment of share dividend.
|
|
(2)
|
Due to the merger of Consolidar Comercializadora 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).
|
|
(4)
|
Due to the merger of Inversora Otar S.A. into BBVA Francés. (see Note 1.6).
|
|
1.2.2.
|
Authorized and issued shares
|
|
1.2.3.
|
Adjustments to stockholders’ equity
|
|
a)
|
The balance of the surplus of the technical valuation on the Bank’s properties made in year 1981, which is available to absorb losses on the disposal or devaluation of such properties restated by inflation as mentioned in Note 3.2.
|
|
b)
|
The inflation adjustment related to capital stock at the beginning of each year, restated as mentioned in Note 3.2.; capital stock maintains its nominal (par) value at each balance sheet date.
|
|
c)
|
The inflation adjustment related to the increase in capital stock restated as mentioned in Note 3.2. This adjustment represents the effect of inflation from the date on which the capital stock was increased to the end of each fiscal year.
|
|
December 31,
2013 and 2012
|
|||
Adjustment to equity fund appraisal revaluation
|
41,285 | |||
Adjustments to capital stock (including Issuance Premiums)
|
728,619 | |||
Cumulative losses absorption
|
(456,925 | ) | ||
Total
|
312,979 |
|
1.2.4.
|
Issuance Premiums
|
|
1.3.
|
Responsibility of stockholders
|
|
1.4.
|
Sale of Consolidar Compañía de Seguros de Retiro S.A.
|
1.5.
|
Sale of Consolidar Aseguradora de Riesgos del Trabajo S.A.
|
|
1.6.
|
Inversora Otar S.A. merged by absorption into BBVA Francés
|
|
1.7.
|
PSA Finance Argentina Cía. Financiera S.A.
|
|
1.8.
|
Registration with CNV as Settlement and Clearing Agent and Broker-Dealer - comprehensive
|
NOTE 2—EQUITY INVESTMENTS
|
|
2.1.
|
In controlled majority-owned subsidiaries
|
Shares
|
Percentage participation
|
|||||||||||||||||||||||||
Principal Activity
|
Type
|
Quantity
|
Capital
|
Votes
|
||||||||||||||||||||||
December 31,
|
December 31,
|
December 31,
|
||||||||||||||||||||||||
Companies
|
2013
|
2012
|
2013
|
2012
|
2013
|
2012
|
||||||||||||||||||||
BBVA Francés Valores S.A.
|
Stockbroker
|
Common
|
12,396 | 12,396 | 96.9953 | 96.9953 | 96.9953 | 96.9953 | ||||||||||||||||||
Consolidar AFJP S.A. (undergoing liquidation proceedings)
|
Pensions fund manager
|
Common
|
35,425,947 | 35,425,947 | 53.8892 | 53.8892 | 53.8892 | 53.8892 | ||||||||||||||||||
PSA Finance Argentina Cía.
Financiera S.A.
|
Financial institution
|
Common
|
26,089 | 26,089 | 50.000 | 50.000 | 50.000 | 50.0000 | ||||||||||||||||||
BBVA Francés Asset Management S.A. Sociedad Gerente de Fondos Comunes de Inversión
|
Fund Manager
|
Common
|
230,398 | 230,398 | 95.000 | 95.000 | 95.000 | 95.0000 |
|
2.2.
|
Non-controlling equity investments
|
Investment
|
Country
|
% of Shares
Owned
|
Principal Activity
|
Investment in Other Subsidiaries
(in thousands of pesos)
|
||||||
Rombo Compañía Financiera S.A.
|
Argentina
|
40.00 | % |
Financial institution
|
150,395.6 | |||||
BBVA Consolidar Seguros S.A.
|
Argentina
|
12.22 | % |
Insurance company
|
29,220.3 | |||||
Interbanking S.A.
|
Argentina
|
11.11 | % |
Information services for financial markets
|
3,570.7 | |||||
Banelco S.A.
|
Argentina
|
10.91 | % |
Nationwide ATM network & credit card administrating
|
8,654.1 | |||||
Visa Argentina S.A.
|
Argentina
|
10.48 | % |
Credit card issuer
|
6,427.6 | |||||
Sedesa S.A.
|
Argentina
|
9.52 | % |
Deposit guarantee fund
|
102.4 | |||||
Coelsa S.A.
|
Argentina
|
8.64 | % |
Clearing house
|
77.7 | |||||
Argencontrol S.A.
|
Argentina
|
7.77 | % |
Agent mandatory
|
54.0 |
NOTE 3—SIGNIFICANT ACCOUNTING POLICIES
|
|
3.1.
|
Basis of presentation
|
|
a)
|
With the financial statements of BBVA Francés Valores S.A. (formerly, BBVA Francés Valores Sociedad de Bolsa 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 fiscal years ended December 31, 2013, 2012 and 2011.
|
|
b)
|
With the financial statements of Consolidar Administradora de Fondos de Jubilaciones y Pensiones S.A. (undergoing liquidation proceedings) for the six month periods ended December 31, 2013, 2012 and 2011.
|
|
3.2.
|
Restatement of the Financial Statements in equivalent purchasing power
|
|
3.3.
|
Comparative information
|
|
3.4.
|
Valuation methods
|
|
3.4.1.
|
Foreign currency assets and liabilities
|
|
3.4.2.
|
Governmental 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 December 31, 2013 and 2012. Differences in listed prices were credited/charged to income for each fiscal year.
|
|
§
|
Holdings booked at amortized cost and instruments issued by the BCRA at amortized cost: as of December 31, 2013 and 2012, these were valued using the amount of initial recognition, rose on the basis of the interest accrued as per the internal rate of return.
|
|
§
|
Investments in listed private securities, equity and debt instruments: they were valued based on current listed prices as of December 31, 2013 and 2012. Differences in listed prices were charged to income for each fiscal year.
|
|
3.4.3.
|
Governmental loans
|
|
3.4.4.
|
Benchmark stabilization coefficient (CER)
|
|
§
|
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 December 31, 2013 and 2012.
|
|
3.4.5.
|
Allowance for loans losses and contingent commitments
|
|
3.4.6.
|
Interest income recognition
|
|
3.4.7.
|
Unlisted Corporate Bonds
|
|
3.4.8.
|
Instruments to be received and to be delivered for spot and forward transactions to be settled
|
|
§
|
In foreign currency: they were valued according to the benchmark exchange rate of the BCRA for each currency determined on the last business day at the end of each fiscal year.
|
|
§
|
Securities: Holdings booked at fair value and Instruments issued by B.C.R.A at fair value: they were valued according to the method described in Note 3.4.2.
|
|
3.4.9.
|
Amounts receivable and payable for spot and forward transactions pending settlement
|
|
3.4.10.
|
Receivables from financial leases
|
|
3.4.11.
|
Investments in other companies
|
|
§
|
Banelco S.A., Visa Argentina S.A., Rombo Cía. Financiera S.A., BBVA Consolidar Seguros S.A. and Interbanking S.A.: as of December 31, 2013 and 2011 were valued by the equity method at the end of each 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 Note 3.4.1.
|
|
§
|
Other: as of December 31, 2013 and 2012 were valued at acquisition cost, without exceeding their recoverable value.
|
|
3.4.12.
|
Premises and equipment and Other assets
|
|
3.4.13.
|
Intangible assets
|
|
3.4.14.
|
Derivative transactions
|
|
(i)
|
Interest rate swaps are recorded at the value resulting from the application of rates differences to residual notional amounts at the end of each fiscal year.
|
|
(ii)
|
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 each fiscal year as applied to stated notional amounts.
|
|
3.4.15.
|
Employee termination pay
|
|
3.4.16.
|
Other liabilities
|
|
3.4.17.
|
Allowance for other contingencies
|
|
3.4.18.
|
Stockholders’ equity accounts
|
|
3.4.19.
|
Statements of Operations Accounts
|
|
§
|
As of December 31, 2013, 2012 and 2011, accounts accruing monetary transactions -(financial income/(expense), service charge income (expense), provision for loan losses, operating 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 3.2.
|
|
§
|
Income from investments in subsidiaries was computed based on such companies’ income adjusted as explained in Note 3.2.
|
|
3.4.20.
|
Consolidated Statements of Cash and Cash Equivalents Flows
|
December 31,
|
||||||||||||
2013
|
2012
|
2011
|
||||||||||
a) Cash and due from banks
|
12,880,744 | 8,613,997 | 6,353,428 | |||||||||
b) Government securities held for trading or financial transactions
|
115,876 | 102,453 | 85,342 | |||||||||
c) Loans to financial sector, calls granted maturity date within three months from the end of each fiscal year
|
607,000 | 332,000 | 179,500 | |||||||||
CASH AND ITS EQUIVALENTS
|
13,603,620 | 9,048,450 | 6,618,270 |
|
3.4.21.
|
Use of estimates
|
NOTE 4—DIFFERENCES BETWEEN BCRA ACCOUNTING STANDARDS AND ARGENTINE PROFESSIONAL ACCOUNTING STANDARDS
|
|
4.1.
|
Valuation criteria
|
|
a)
|
Tax effects
|
|
b)
|
Derivative financial instruments
|
|
4.2.
|
Other differences with respect to generally accepted accounting principles effective in Argentina, related to subsidiaries
|
|
(i)
|
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 to the Income Statement, should be accrued throughout the duration of the loans generated by said dealers in accordance with currently applicable professional accounting standards. Had this criterion been applied, shareholders’ equity would have been increased by 11,146 and 10,636 as of December 31, 2013 and 2012, respectively.
|
|
(ii)
|
The Bank has not made disclosures required by professional accounting standards in force in Argentina on discontinued operations or discontinuation in relation to the process of liquidating its subsidiary Consolidar AFJP S.A. (undergoing liquidation proceedings).
|
NOTE 5—TAX MATTERS
|
|
5.1.
|
Income tax
|
December 31,
|
||||||||
2013
|
2012
|
|||||||
Deferred tax assets
|
412,100 | 453,500 | ||||||
Deferred tax liabilities
|
(181,000 | ) | (196,600 | ) | ||||
Net deferred assets
|
231,100 | 256,900 | ||||||
Allowance
|
(231,100 | ) | (256,900 | ) |
|
5.2.
|
Tax on minimum presumed income
|
|
5.3.
|
Other tax issues
|
|
a)
|
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.
|
|
b)
|
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.
|
NOTE 6— BREAKDOWN OF MAIN ITEMS AND ACCOUNTS
|
December 31,
|
||||||||
2013
|
2012
|
|||||||
a) GOVERNMENT AND PRIVATE SECURITIES
|
||||||||
Holdings booked at fair value
|
||||||||
Secured Bonds due in 2020
|
891,894 | 932,463 | ||||||
Federal Government Bonds in US dollars 7% 2017
|
708,180 | — | ||||||
Argentine Bond of Saving towards economic development
|
121,110 | — | ||||||
Secured Bonds due in 2018
|
89,114 | 151,422 | ||||||
Discount Bonds in pesos
|
80,980 | 10,560 | ||||||
Par Securities denominated in US Dollars and governed by Argentine Law
|
42,300 | — | ||||||
Consolidation Bonds – sixth series
|
31,040 | — | ||||||
Federal Government Bonds in Pesos BADLAR plus 275 bp due in 2014
|
12,317 | 731,702 | ||||||
Other
|
5,496 | 5,932 | ||||||
Total
|
1,982,431 | 1,832,079 | ||||||
December 31,
|
||||||||
2013
|
2012
|
|||||||
Holdings booked at amortized cost
|
||||||||
Other
|
164 | 164 | ||||||
Total
|
164 | 164 | ||||||
Instruments issued by the BCRA
|
||||||||
BCRA Bills (LEBAC)
|
1,273,092 | 2,201,676 | ||||||
BCRA Notes (NOBAC)
|
135,395 | — | ||||||
Total
|
1,408,487 | 2,201,676 | ||||||
Investments in listed private securities
|
||||||||
FBA Ahorro Pesos Investment Fund
|
64,525 | 55,329 | ||||||
FBA Acciones Globales Investment Fund
|
3,849 | — | ||||||
FBA Renta Pesos Investment Fund
|
— | 4,583 | ||||||
HF Pesos Plus - Clase I Investment Fund
|
— | 6,751 | ||||||
Other
|
675 | 1,452 | ||||||
Sub-Total
|
69,049 | 68,115 | ||||||
Allowances
|
(196 | ) | (188 | ) | ||||
Total
|
3,459,935 | 4,101,846 | ||||||
b) OTHER RECEIVABLES FROM FINANCIAL TRANSACTIONS – Other receivables covered by debtor classification regulations
|
||||||||
Fees receivable
|
177,286 | 122,346 | ||||||
Other
|
24,988 | 17,872 | ||||||
Total
|
202,274 | 140,218 | ||||||
c) INVESTMENTS IN OTHER COMPANIES – Other
|
||||||||
In non-controlled companies-supplementary activities
|
29,319 | 27,450 | ||||||
In other non-controlled companies- unlisted
|
29,302 | 20,045 | ||||||
Total
|
58,621 | 47,495 | ||||||
d) OTHER RECEIVABLES – Other
|
||||||||
Prepayments
|
309,925 | 163,941 | ||||||
Guarantee deposits
|
309,390 | 290,105 | ||||||
Miscellaneous receivables
|
284,581 | 211,222 | ||||||
Tax prepayments
|
258,899 | 272,860 | ||||||
Loans to personnel
|
189,700 | 188,260 | ||||||
Other
|
6,909 | 8,612 | ||||||
Total
|
1,359,404 | 1,135,000 | ||||||
e) OTHER SUBSIDIARIES’ ASSETS
|
||||||||
Others related to pension fund management business
|
450 | 450 | ||||||
Total
|
450 | 450 | ||||||
December 31,
|
||||||||
2013
|
2012
|
|||||||
f) OTHER LIABILITIES FROM FINANCIAL
|
||||||||
TRANSACTIONS – Other
|
||||||||
Accounts payable for consumption
|
1,193,215 | 757,046 | ||||||
Other withholdings and collections at source
|
457,246 | 418,198 | ||||||
Collections and other operations for the account of third parties
|
342,912 | 258,616 | ||||||
Money orders payable
|
327,967 | 197,243 | ||||||
Pending Banelco debit transactions
|
120,570 | 105,288 | ||||||
Fees collected in advance
|
105,860 | 47,683 | ||||||
Loans received from Argentine Technological Fund (FONTAR and Banco de Inversión y Comercio Exterior (“BICE”))
|
46,882 | 46,520 | ||||||
Social security payment orders pending settlement
|
6,484 | 7,547 | ||||||
Loans received from Interamerican Development Bank (IDB)
|
3,229 | 8,204 | ||||||
Other
|
44,180 | 93,344 | ||||||
Total
|
2,648,545 | 1,939,689 | ||||||
g) OTHER LIABILITIES – Other
|
||||||||
Accrued taxes
|
674,707 | 562,448 | ||||||
Miscellaneous payables
|
509,472 | 476,876 | ||||||
Accrued salaries and payroll taxes
|
398,013 | 304,845 | ||||||
Amounts collected in advance
|
169,278 | 73,173 | ||||||
Other
|
1,308 | 1,735 | ||||||
Total
|
1,752,778 | 1,419,077 | ||||||
h) OTHER SUBSIDIARIES’ LIABILITIES
|
||||||||
Others related to pension fund management business
|
337 | 337 | ||||||
Total
|
337 | 337 | ||||||
i) MEMORANDUM ACCOUNTS – DEBIT – CONTROL – Other
|
||||||||
Securities representative of investment in escrow on behalf of the Guarantee Fund for the Sustainability of the Pay-as-you-go System managed by the Argentine Republic
|
121,633,179 | 41,951,890 | ||||||
Items in safekeeping
|
26,289,843 | 20,096,342 | ||||||
Checks not yet credited
|
3,347,400 | 2,756,890 | ||||||
Collections items
|
686,371 | 495,183 | ||||||
Checks drawn on the Bank pending clearing
|
602,976 | 515,628 | ||||||
Cash in custody on behalf of the BCRA
|
52,144 | — | ||||||
Other
|
772,895 | 111,934 | ||||||
Total
|
153,384,808 | 65,927,867 | ||||||
December 31,
|
||||||||||||
2013
|
2012
|
2011
|
||||||||||
j) SERVICE CHARGE INCOME - Other
|
||||||||||||
Commissions for hiring of insurances
|
344,919 | 250,370 | 176,920 | |||||||||
Rental of safe-deposit boxes
|
110,927 | 95,095 | 75,798 | |||||||||
Commissions for loans and guaranties
|
99,525 | 82,044 | 59,365 | |||||||||
Commissions on debit and credit cards
|
42,413 | 21,381 | — | |||||||||
Commissions for transportations of values
|
22,338 | 17,250 | 14,807 | |||||||||
Commissions for escrow
|
19,764 | 10,348 | 10,880 | |||||||||
Commissions for capital market transactions
|
12,224 | 7,622 | 16,580 | |||||||||
Commissions for salary payment
|
9,444 | 9,475 | 8,759 | |||||||||
Commissions for trust management
|
1,432 | 1,378 | 1,527 | |||||||||
Other
|
62,841 | 53,040 | 58,043 | |||||||||
Total
|
725,827 | 548,003 | 422,679 | |||||||||
k) SERVICE CHARGE EXPENSE - Other
|
||||||||||||
Turn-over tax
|
262,772 | 158,976 | 119,349 | |||||||||
Insurance paid on lease transactions
|
59,405 | 35,614 | 21,042 | |||||||||
Other
|
17,517 | 20,718 | 12,892 | |||||||||
Total
|
339,694 | 215,308 | 153,283 | |||||||||
l) OTHER INCOME - Other
|
||||||||||||
Interest on loans to personnel
|
28,692 | 26,537 | — | |||||||||
Income from the Credit Card Guarantee Fund
|
24,448 | 16,559 | 9,996 | |||||||||
Related parties expenses recovery
|
10,036 | 17,451 | 13,620 | |||||||||
Rent
|
1,409 | 1,432 | 677 | |||||||||
Income from the sale of fixed and miscellaneous assets
|
477 | 43,578 | 2,150 | |||||||||
Deferred income tax (1)
|
— | 147,300 | 47,300 | |||||||||
Tax recovery
|
— | — | 18,166 | |||||||||
Other
|
48,627 | 9,373 | 42,374 | |||||||||
Total
|
113,729 | 262,230 | 134,283 | |||||||||
(1) Offset by a charge for the same amount in the line Charge for uncollectibility of other receivables and other allowances account, under the caption Other expenses.
|
m) OTHER EXPENSE - Other
|
||||||||||||
Deferred income tax (2)
|
25,800 | — | — | |||||||||
Donations
|
13,645 | 11,645 | 10,236 | |||||||||
Insurance losses
|
9,015 | 6,237 | 4,586 | |||||||||
Turn-over tax
|
8,429 | 6,396 | 5,025 | |||||||||
Private health insurance for former employees
|
7,953 | 7,000 | 4,304 | |||||||||
Other
|
23,771 | 26,616 | 12,369 | |||||||||
Total
|
88,613 | 57,894 | 36,520 | |||||||||
(2) Offset by a charge for the same amount in the line Loans recovered and reversals of allowances account, under the caption Other income.
|
NOTE 7—FINANCIAL INFORMATION UNIT: SUMMARY PROCEEDINGS
|
NOTE 8—RESTRICTIONS ON ASSETS
|
|
a)
|
The Government and Private Securities caption includes 191,290 in bonds issued by the Argentine Government in U.S. dollars maturing in 2017 and 131,081 in bonds issued by the Argentine Government maturing in 2014, respectively, 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.
|
|
b)
|
The Bank appropriated 7,754 in peso-denominated fixed rate Argentine Central Bank Bills and 4,053 in Secured Bonds due 2020 as of December 31, 2013 and 37,122 in bonds issued by the Argentine Government maturing in 2014 as of December 31, 2012, to secure loans arranged under the Credit Global Program given by the Interamerican Development Bank (IDB).
|
|
c)
|
The Bank appropriated 146,915 and 139,895, respectively, in Guaranteed Bonds maturing in 2020, to secure loans granted by the so-called “Fondo del Bicentenario”.
|
|
d)
|
The Bank has also appropriated accounts, deposits and trusts for 763,876 and 652,822, respectively, as security for activities related to credit card operations, automated clearing houses, non-deliverable forwards and lawsuits.
|
|
e)
|
BBVA Francés Valores S.A. (formerly, BBVA Francés Valores Sociedad de Bolsa S.A.) holds two shares of Mercado de Valores de Buenos Aires S.A, booked in the amount of 10,300 as of December 31, 2013 and 2012. 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.
|
NOTE 9—BANK DEPOSIT GUARANTEE INSURANCE SYSTEM
|
NOTE 10—TRUST ACTIVITIES
|
|
10.1.
|
Financial Trusts
|
|
10.2.
|
Non-Financial Trusts
|
NOTE 11—CORPORATE BONDS
|
NOTE 12—DERIVATIVE FINANCIAL INSTRUMENTS
|
|
§
|
Transactions as of December 31, 2013:
|
|
-
|
Interest rate swaps for 1,039,084 (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 285,239 (BADLAR versus Fixed Rate), maturing within a period not exceeding 1 year for which the Bank pays a fixed amount and receives a variable amount in accordance with changes in the BADLAR rate.
|
|
-
|
Interest rate swap for 42,775 (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.
|
|
-
|
Non-deliverable forward purchase and sale transactions in foreign currency payable in Pesos, maturing within a period not exceeding 1 year, for 5,414,377 and 1,871,743, 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.
|
|
-
|
Forward sales due to BCRA Bills and Notes repurchase agreements for 175,277 and due to Government securities for 5,103, which are recorded under “Other liabilities from financial transactions – Instruments to be delivered for spot and forward sales to be settled”.
|
|
-
|
The Bank does not carry any balances associated to reverse repos in force at December 31, 2013. However, the transactions conducted at December 31, 2013 have yielded a 2,133 loss at the end of the fiscal year.
|
|
§
|
Transactions as of December 31, 2012:
|
|
-
|
Interest rate swaps for 829,652 (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.
|
|
-
|
Interest rate swap for 49,006 (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.
|
|
-
|
Non-deliverable forward purchase and sale transactions in foreign currency and ratios payable in Pesos, maturing within a period not exceeding 1 year, for 3,452,819 and 2,865,678, 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.
|
|
-
|
The Bank does not carry balances from transactions involving options outstanding as of December 31, 2012. However, the transactions conducted as of December 31, 2012 generating the amount of 255 as income for the fiscal year.
|
|
-
|
The Bank does not carry any balances associated to repos or reverse repos in force at December 31, 2012. However, the transactions conducted at December 31, 2012 have yielded a 68,782 income and a 1,485 loss, respectively, at the end of the fiscal year.
|
NOTE 13—COMPLIANCE WITH CNV REQUIREMENTS
|
|
13.1.
|
Compliance with the requirements to act as agent in the over-the-counter market
|
|
13.2.
|
Investment Funds custodian
|
December 31,
|
||||||||
Name of Mutual Fund
|
2013
|
2012
|
||||||
FBA Acciones Globales (**)
|
47,620 | 53,791 | ||||||
FBA Total
|
20,817 | 19,087 | ||||||
FBA Renta (**)
|
20,537 | 19,944 | ||||||
FBA Renta Pesos
|
1,460,275 | 1,497,666 | ||||||
FBA Renta Dólares (**)
|
5,971 | 6,205 | ||||||
FBA Bonos Latinoamericanos
|
26,211 | 18,505 | ||||||
FBA Calificado
|
126,513 | 83,006 | ||||||
FBA Internacional
|
4,558 | 947 | ||||||
FBA Ahorro Dólares (**)
|
14,092 | 14,745 | ||||||
FBA Renta Fija (**)
|
14,373 | 20,456 | ||||||
FBA Ahorro Pesos
|
541,736 | 444,287 | ||||||
FBA Renta Premium (**)
|
8,866 | 10,805 | ||||||
FBA Europa (*)
|
— | 6,732 | ||||||
FBA Horizonte
|
47,322 | 31,008 | ||||||
FBA EEUU (*)
|
— | 19,801 | ||||||
FBA Renta Corto Plazo (**)
|
316 | 471 | ||||||
FBA Acciones Latinoamericanas
|
41,623 | 24,116 | ||||||
FBA Bonos Argentina
|
5,096 | 7,648 | ||||||
FBA Brasil (*)
|
— | 25,131 | ||||||
FBA México
|
— | 92 | ||||||
FBA Commodities
|
— | 66 | ||||||
FBA Acciones Argentinas
|
468 | 265 | ||||||
FBA Bonos Globales
|
117 | 88 | ||||||
Total
|
2,386,511 | 2,304,862 |
(*)
|
During March and April of fiscal year 2013, BBVA Francés Asset Management S.A. Sociedad Gerente de Fondos Comunes de Inversión (“the Managing Company”) decided to start the process of liquidation of these Investment Funds pursuant to CNV Resolution Nr. 617/13. As of the date of issuance of these Consolidated Financial Statements, the Managing Company had paid off all the amounts due to the holders of shares in these funds
|
(**)
|
BBVA Francés Asset Management S.A. Sociedad Gerente de Fondos Comunes de Inversión decided to start the process of liquidation of FBA Renta Dólares, FBA Ahorro Dólares, FBA Renta Fija, FBA Renta Premium and FBA Renta Corto Plazo on August 30, 2013 and of FBA Acciones Globales and FBA Renta on September 2, 2013.
|
NOTE 14—EARNINGS DISTRIBUTIONS
|
|
a)
|
In accordance with the provisions of BCRA, on April 10, 2014 the Bank’s Ordinary and Extraordinary Shareholders’ Meeting appropriated the amount of 404,849 currently included under Unappropriated earnings to the Legal Reserve.
|
|
b)
|
In accordance with Communications “A” 5072 and 5273, issued on May 6, 2010 and January 27, 2012, respectively, as amended and supplemented, of “Distribution of Income” of the BCRA, 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 as set forth in point 2.1 of such Communication. 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.
|
NOTE 15— REFORM OF THE INTEGRATED RETIREMENT AND PENSION SYSTEM
|
NOTE 16—MINORITY INTEREST IN SUBSIDIARIES
|
December 31,
|
||||||||
2013
|
2012
|
|||||||
Consolidar Administradora de Fondos de Jubilaciones y Pensiones S.A. (undergoing liquidation proceedings)
|
7,078 | 7,677 | ||||||
BBVA Francés Valores Sociedad de Bolsa S.A.
|
557 | 475 | ||||||
PSA Finance Argentina Cía. Financiera S.A.
|
164,652 | 109,736 | ||||||
BBVA Francés Asset Management S.A. Sociedad Gerente de Fondos Comunes de Inversión
|
108 | 93 | ||||||
172,395 | 117,981 | |||||||
NOTE 17—ACCOUNTS REFLECTING COMPLIANCE WITH MINIMUM CASH
|
COMPUTABLE COMPLIANCE IN PESOS
|
||||
Special Guarantee Accounts
|
224,634 | |||
BCRA Checking Account
|
5,357,009 | |||
Franchises
|
81,944 | |||
TOTAL
|
5,663,587 | |||
COMPUTABLE COMPLIANCE IN US DOLLARS (Stated in thousands of Pesos)
|
||||
Special Guarantee Accounts
|
26,411 | |||
BCRA Checking Account
|
5,147,476 | |||
TOTAL
|
5,173,887 | |||
COMPUTABLE COMPLIANCE IN EUROS (Stated in thousands of Pesos)
|
||||
BCRA Checking Account
|
40,957 | |||
TOTAL
|
40,957 |
NOTE 18—RISK MANAGEMENT POLICIES
|
|
a)
|
Credit Risk
|
|
-
|
Verify the client sufficient income-generation sources and an adequate financial structure to face the commitments to repay principal and interest of the owned receivables within the terms agreed.
|
|
-
|
Adequate and sufficient guarantees must to allow the loans recovery.
|
|
-
|
Adequate knowledge of the client so that the decision-making officials are sufficiently confident and secure when they decide to grant the loan.
|
|
-
|
Balance and correlation between the use of the proceeds, the amount, the term and the manner to repay the loan based on the client´s generation of resources and the guarantees.
|
|
-
|
The activities carried on by the client must be identified so that the client can be assigned to the appropriate classification of sectors of the economy assessing its positioning and growth expectations.
|
|
-
|
Permanent consulting for hints of junctures in the policies currently in force in each sector for an adequate response in line with the general investment or divestiture guidelines in a sector or sub-sector of the economy, amongst others.
|
|
b)
|
Financial Risk and Reporting
|
|
-
|
Self-funding ratio: the metrics known as “Loan to Score Credits Deposits (LtSCD)” provides information about balance sheet funding structure for a given period. These ratios are prepared on a consolidated basis as well as in each one of the functional currencies used in the Entity’s operations and they provide information as well as adjustment to the risk appetite defined vis-à-vis a desirable funding structure.
|
|
-
|
Net short-term funding: this parameter strives toward determining reasonableness in the balance sheet funding structure. And based on that criterion, a detailed follow-up is performed of the funding sources that deviate from those considered stable by corporate criteria. Thus, the deposits that carry higher volatility are grouped and they are specifically monitored and assigned a maximum amount determined by application of the Bank’s guidelines.
|
|
-
|
Basic Capacity: a liquidity balance sheet is prepared (other than the balance sheet for accounting purposes) with the various captions –assets, liabilities and on- and off-balance sheet items– are classified based on their nature for liquidity purposes. Then, their funding structure is determined. And it must satisfy, at all times, a basic premise, namely, that basic businesses must be funded with stable resources. These guidelines guarantee that the Bank’s financial structure remains solid and that business plans remain sustainable.
|
|
-
|
Economic Capital
|
|
-
|
Economic value sensitivity
|
|
-
|
Margin at Risk
|
|
-
|
Financial margin sensitivity
|
|
c)
|
Operational Risk
|
|
-
|
Rely on a comprehensive risk management model, that is robust and in line with international standards, modern and fit for adapting to the environment or to any internal requirements needed.
|
|
-
|
Undertake a valuation of the degree of mitigation activity attained and corroborate that mitigation measures have been adopted.
|
|
-
|
Ensure that the control framework has been implemented and updated, including, if applicable, contingency and service/business continuity plans as defined by the business units or support areas and that high impact risks are buffered.
|
NOTE 19—TRANSACTIONS WITH RELATED PARTIES
|
Balance Sheet
|
Memorandum Accounts (1)
|
|||||||||||||||||||||||
Assets
|
Liabilities
|
|||||||||||||||||||||||
Company
|
2013
|
2012
|
2013
|
2012
|
2013
|
2012
|
||||||||||||||||||
BBVA S.A.
|
28,062 | 41,904 | 53,269 | 27,174 | 26,740 | 103,742 | ||||||||||||||||||
BBVA Consolidar Seguros S.A.
|
19,183 | 14,380 | 23,599 | 25,996 | — | — | ||||||||||||||||||
Rombo Cía. Financiera S.A.
|
1,063,677 | 735,300 | 9,733 | 1,623 | 524,802 | 330,725 |
(1)
|
Includes items in safekeeping, Credit lines granted (unused portion) covered by debtor classification regulations, Guaranties given covered by debtor classification regulations and derivatives transactions.
|
Net income (1)
|
||||||||||||
2013
|
2012
|
2011
|
||||||||||
Income
|
9,097 | 262,671 | 177,134 | |||||||||
Expenses
|
(1,393 | ) | (46,104 | ) | (18,775 | ) | ||||||
7,704 | 216,567 | 158,359 | ||||||||||
(1)
|
All the concerted operations have been contracted according with market’s conditions.
|
NOTE 20—TRANSPARENT CORPORATE GOVERNANCE POLICY
|
|
§
|
THE BOARD OF DIRECTORS
|
Name
|
Current Position
|
Background and Work Experience
|
Jorge Carlos Bledel
|
Chairman
|
Business experience: Vice Chairman, BBVA Francés Valores S.A. (“formerly, BBVA Francés Valores Sociedad de Bolsa S.A. Director, Credilogros Compañía Financiera S.A.; Credit Manager, Banco del Interior y Buenos Aires; Business Manager, Corporación Metropolitana de Finanzas; Financial Manager, BBVA Francés; Wholesale Banking Director, BBVA Francés and Retail Banking Director, BBVA Francés.
Jorge Carlos Bledel is an independent director in the terms of General Resolution Nr. 622/13 (as per its new wording dating back to 2013).
|
José Manuel Tamayo Pérez
|
Vice Chairman
|
Business experience: Retail Banking Director, BBVA Francés; Marketing Director for Spain and Portugal, BBVA.
José Manuel Tamayo Pérez meets the independence criteria to be considered as an independent director within the meaning of General Resolution Nr. 622/13 (as per its new wording dating back to 2013).
|
Marcelo Gustavo Canestri
|
Regular Director
|
Business experience: Corporate Assistant Manager, BBVA Francés; Wholesale Banking Assistant Manager, BBVA Francés; Asset Management Director, BBVA Francés and Financial Director, BBVA Francés.
Marcelo Gustavo Canestri is an independent director in the terms of General Resolution Nr. 622/13 (as per its new wording dating back to 2013).
|
Mario Luis Vicens
|
Regular Director
|
Business experience: Executive Chairman, Asociación de Bancos de la Argentina ABA; Regular Director, Seguros de Depósitos S.A. SEDESA; Regular Director, Federación Latinoamericana de Bancos Felaban; Regular Director, Banco Sudameris S.A.; Regular Director, Banco Central de la República Argentina; Planning Assistant Manager and Deputy General Manager, Banco de Crédito Argentino S.A.; Chief Economist – Head of Department, Banco Central de la República Argentina.
Mario Vicens is an independent director in the terms of General Resolution Nr. 622/13 (as per its new wording dating back to 2013).
|
Oscar Miguel Castro
|
Regular Director
|
Business experience: Executive member of the Committee of Financial Services, Arthur Andersen Worldwide; Partner in charge of Financial Services Division, Arthur Andersen Latin America and Argentina; International Partner, Arthur Andersen.
Oscar Miguel Castro is an independent director in the terms of General Resolution Nr. 622/13 (as per its new wording dating back to 2013).
|
Name
|
Current Position
|
Background and Work Experience
|
Luis Bernardo Juango Fitero
|
Regular Director
|
Business experience: President, BBVA S.A. Colombia; Regional Director, BBVA.
Luis Bernardo Juango Fitero is an independent director in the terms of General Resolution Nr. 622/13 (as per its new wording dating back to 2013).
|
Martín Ezequiel Zarich
|
Alternate Director
|
Business experience: Regular Director at BBVA Consolidar Seguros S.A.; Innovation and Development Director at BBVA Francés; Director of Mergers at BBVA Francés; Planning Director at BBVA Francés; Financial Director at BBVA Francés; Retail Banking Director at BBVA Francés; Director at Credilogros; Director at BBVA Francés Uruguay; Director at BBVA Francés Cayman Ltd.; Assistant General Director for Commercial Development at Grupo BBVA: Economist at Banco de Crédito Argentino; Controller and Budget Area Manager at Banco de Crédito Argentino; Planning Director at Banco de Crédito Argentino.
Martín Ezequiel Zarich is not an independent director in the terms of General Resolution Nr. 622/13 (as per its new wording dating back to 2013).
|
|
§
|
SENIOR MANAGEMENT
|
|
§
|
MANAGEMENT COMMITTEE - MEMBERSHIP
|
|
-
|
Implement the strategies and policies approved by the Board.
|
|
-
|
Evaluate and propose business and investment strategies and general risk policies.
|
|
-
|
Develop the processes necessary to identify, assess, monitor and mitigate the risks to which the Bank is exposed to.
|
|
-
|
Implement appropriate internal control systems and monitor their effectiveness, periodically reporting to the Board on the attainment of objectives. Establish business synergies with the remaining Group companies.
|
|
-
|
Propose the delegation of powers to the Entity’s officers. Supervise the managers in the various areas to make sure that they comply with the policies and procedures set forth by the Board.
|
|
-
|
Evaluate and propose Entity-wide policies, strategies and guidelines and then oversee and follow up on model implementation.
|
Name
|
Current Position
|
Background and Work Experience
|
||
Ricardo Enrique Moreno
|
Executive Director
|
Consultant, specialized in financial branch and capital markets, Andersen Consulting; Systems Manager, Banco de Crédito; Director of Media, CEO of Unofirst Latin America, COO Global, BBVA; Director of Transformation and Productivity BBVA.
|
||
Ignacio Sanz y Arcelus
|
Director, Finance and Planning.
|
Finance Area – Technology and Operations, BBVA; Director of the Department of Assets and Liabilities Management for Latin America, BBVA; Director of the Investment Banking Comptroller’s Office (Treasury, Capital Markets, Intermediation, Corporate, Structured Financing), BBVA; Corporate Director, BBVA; Director of the Treasury, Capital Markets and International Network area, BEX Argentaria BBVA; Director of the Market Risk Audit Unit, BEX Argentaria BBVA; Director of Central Services Audit, BEX; Director of Planning, Intervention and Control, SERFINBEX; Director, BEX Argentaria BBVA; Team Leader at Arthur Andersen Auditores S.A.
|
||
Juan Alberto
Estrada
|
Director,
Corporate and Investment Banking
|
Assets Management Area, BBVA Francés; Head of the Trading Area, BBVA Francés; Director of Global Markets, BBVA Francés; Director of Wholesale Banking and Asset Management, BBVA Francés¸ President of BBVA Francés Valores S.A. (formerly, BBVA Francés Valores Sociedad de Bolsa S.A.).
|
||
Martín
Ezequiel Zarich
|
Director, Innovation and Development
|
Alternate Director, BBVA Francés; Regular Director, BBVA Seguros; Economist, Banco de Crédito Argentino; Management Control and Budget Manager, Banco de Crédito Argentino; Planning Director, Banco de Crédito Argentino; Merger Director, BBVA Banco Francés; Planning Director, BBVA Francés; Financial Director, BBVA Francés; Retail Banking Director, BBVA Francés; Director, Credilogros; Director, BBVA Banco Francés Uruguay; Director, BBVA Banco Francés Cayman Ltd.; Deputy General Director, Business Development BBVA Group.
|
||
Gabriel
Milstein
|
Director, Human Resources and Services
|
Organization Manager, BBVA Francés.
|
||
Jorge Gustavo Allen
|
Director, Enterprise Banking
|
Goods and Services Manager, BBVA Francés; Logistics Director, BBVA Francés; President, BBVA Consolidar Seguros S.A.; Territorial Director, BBVA Francés.
|
||
Jorge Delfín Luna
|
Director, Retail Banking
|
Regional Manager, Citibank Branch; Regional Manager of Local Branches, Banco de Crédito Argentino; General Manager, Easy-Bank (BBVA Francés); General Manager and Vicepresident, BBVA Banco Uruguay; Companies Banking Manager, BBVA Francés.
|
||
Gustavo Osvaldo Fernández
|
Director, Technology and Operations
|
Coordinator, Systems and Organizations, Banca Nazionale del Lavoro; Systems Coordinator, Banco Galicia; Manager of Organization and Systems Development, Banco de Crédito Argentino; Design and Development Manager, BBVA Francés; Media Director, BBVA Francés; Director of Design and Development América, BBVA; Business Partner America, BBVA.
|
||
Adriana Fernández de Melero
|
Director, Corporate Development and Transformation
|
Credits Recovery Analyst, Banco Español; Financial Analyst, Banco Español; Financial Profitability and Planning Analyst, Banco Español; Planning and Management Control Analyst, Banco de Crédito Argentino; Head of Budget, Planning and Management Control, Banco de Crédito Argentino; Leader of Reengineering Project, Banco de Crédito Argentino; Human Resources Development and Planning Manager, Banco de Crédito Argentino; Manager of Human Resources Management, BBVA Francés; Manager of Structures and Projects, BBVA Francés; Organization Manager, BBVA Francés; Commercial Development and Channels Manager, BBVA Francés.
|
||
Juan Eugenio Rogero González
|
Director, Risks
|
Branch Director Corporate Banking, BBVA; Risks and Corporate Director, BBVA Puerto Rico; Insurances Development Director, BBVA America and Global Director of Corporate Risks Control, BBVA; Risks Director, BBVA Francés; Corporate Polices and Wholesale Portfolios Director, BBVA.
|
|
§
|
BBVA FRANCES’s OWNERSHIP STRUCTURE
|
Ordinary Shares Beneficially Owned At December 31, 2013
|
||||||||
Beneficial Owner
|
Number of Shares
|
Percentage of Shares Outstandings
|
||||||
Banco Bilbao Vizcaya Argentaria
|
244,870,968 | 45.61 | ||||||
BBV America SL(1)
|
160,061,858 | 29.81 | ||||||
The Bank of New York Mellon (2)
|
47,584,374 | 8.86 | ||||||
Administración Nacional de Seguridad Social (Argentine Social Security Authority)
|
42,439,494 | 7.90 |
|
(1)
|
BBV América S.L. is under the control of BBVA. It has an effective 20.90% ownership interest in the capital stock of BBVA Francés and has an indirect 8.91% ownership interest in Inversora Otar S.A. following the merger by absorption mentioned in Note 1.6.
|
|
(2)
|
As holder agent of ADSs.
|
|
§
|
ORGANIZATIONAL STRUCTURE
|
|
§
|
COMMITTEES OF THE BOARD OF DIRECTORS
|
|
a)
|
AUDIT COMMITTEE – LAW 26,831 (C.N.V./S.E.C.)
|
|
b)
|
NOMINATIONS AND REMUNERATIONS COMMITTEE
|
|
c)
|
INTERNAL AUDIT COMMITTEE (B.C.R.A.)
|
|
d)
|
COMMITTEE FOR THE PREVENTION OF ASSET LAUNDERING AND TERRORISM FINANCING
|
|
-
|
Establishing guidelines and continuously reviewing the degree of progress with each action.
|
|
-
|
Filing reports with the competent authorities concerning the so-called “unusual or suspicious” transactions, or, either, deciding to disregard them when appropriate.
|
|
-
|
Evaluating the potential risk of asset laundering in the new products and/or services.
|
|
-
|
Raising awareness in their areas about the importance of preventing asset laundering and terrorism financing.
|
|
e)
|
COMPUTER TECHNOLOGY COMMITTEE
|
|
-
|
To oversee the proper operation of the IT environment and to contribute to an improvement in its efficiency.
|
|
-
|
To approve the Information Technology and Systems Plan and to assess it from time to time to review degree of completion
|
|
§
|
OTHER COMMITTEES
|
|
a)
|
Risk Management Committee
|
|
b)
|
Corporate Assurance Committee
|
|
c)
|
Disclosure Committee
|
|
d)
|
Human Resources Committee
|
|
-
|
establish the structure of the organizational chart.
|
|
-
|
approve promotions to managerial positions.
|
|
-
|
define the guidelines governing human resources policies.
|
|
-
|
establish remuneration and incentive criteria.
|
|
-
|
evaluate benefits to personnel.
|
|
-
|
establish career and training plans.
|
|
e)
|
Corporate Integrity Committee
|
|
-
|
Fostering the adoption of the measures necessary to hand down decisions concerning all those ethically objectionable actions of which any of the members of the Corporate Integrity Committee may become aware in the discharge of his duties or by reason of having received notice.
|
|
-
|
Settling those situations in which the interests of BBVA Francés and Group companies in Argentina conflict with those of their clients.
|
|
§
|
THE SUBSIDIARIES AND AFFILIATES OF BBVA FRANCÉS
|
|
1)
|
BBVA Francés Valores S.A. (formerly, BBVA Francés Valores Sociedad de Bolsa S.A.) engaged in securities trading at the Buenos Aires Stock Exchange.
|
|
2)
|
BBVA Francés Asset Management S.A. Sociedad Gerente de Fondos Comunes de Inversión: the corporate purpose of this mutual fund manager is to run and manage Mutual Funds in accordance with Section 3 of Law Nr. 24,083 as subsequently amended by Law Nr. 26,831.
|
|
3)
|
PSA Finance Argentina Compañía Financiera S.A. whose corporate purpose consists in financing the acquisition of new and second-hand Peugeot and Citroën vehicles through pledge loans, receivables from financial leases and other financial products and in supplying services associated to the purchase, maintenance and insurance coverage of motor vehicles.
|
|
4)
|
Consolidar AFJP S.A. (undergoing liquidation proceedings), see Note 15 to the Consolidated Financial Statements of BBVA Francés as of December 31, 2013.
|
|
5)
|
Rombo Compañía Financiera S.A. whose corporate purpose is to finance the acquisition of new and second-hand Renault and Nissan through pledge loans, receivables from financial leases and other financial products and in supplying services associated to the purchase, maintenance and insurance coverage of motor vehicles.
|
|
6)
|
BBVA Consolidar Seguros S.A.. This insurance carrier operates in the following lines of business: fire, comprehensive household insurance, civil liability, theft, personal accidents, group life insurance and other coverage.
|
|
§
|
NETWORK OF BRANCHES AND RETAIL OFFICES
|
|
§
|
INFORMATION ON BUSINESS LINES
|
|
§
|
FINANCIAL INCENTIVES FOR PERSONNEL
|
|
-
|
Recognize and reward, based on individual performance, the accomplishment of objectives, of team-work and the quality of the results attained, as well as the skills and competencies that each person devotes to his/her work.
|
|
-
|
Ensure internal fairness through an analysis of the structure, the descriptions of the positions and the remunerations.
|
|
-
|
Ensure external competitiveness by updating information in line with the reference market.
|
|
-
|
Reward the contribution of tangible results.
|
|
-
|
Salary surveys into the benchmark market: the position adopted within the survey is defined in accordance with the Entity’s needs and strategy for each period. This benchmark market is made up by a number of companies that have similar organizational structures and business sizes.
|
|
-
|
Salary categories/brackets: these are designed on the basis of the internal structure of the positions and the information derived from market salary surveys. These brackets represent salary ranges that group positions that rank similarly in terms of responsibility, experience, knowledge, etc.
|
|
-
|
Model of incentives to the Branch Network: these are four quarterly payments and a further payment of annual indicators. Payment is subject to the attainment of the targets fixed for each person for each period. Each position has been assigned a grid of objectives and each one of these objectives are assigned a value.
|
|
-
|
Model of incentives to the Central Areas, the Channels, and Support to the Branch Network: variable remuneration is assigned annually by the supervisor based on the assessment of performance-evaluation of performance and the position’s reference bonus. In addition, variables associated to the attainment of Group objectives and the degree of budget compliance are assessed. These factors may have a positive or negative impact on the defined variable compensation.
|
|
-
|
Result-Oriented Management model of incentives: at the end of each fiscal year, each employee in this group is subject to an assessment whose score relates to the degree of objective attainment. These are renewed every year in line with the Group’s strategy. The payment is determined on the basis of a benchmark bonus weighed by the individual score and adjusted on the basis of the Bank’s objective attainment and the degree of budget compliance.
|
|
-
|
Commission-based incentive model: the value of commissions depends on the unit assessment of each product based on the product’s contribution to the Bank’s results. The criteria to be applied in commission-based compensation are reviewed every year and they are paid every month in arrears.
|
|
-
|
Share-based payment incentive model: this is a program of incentives to directors based on the delivery of BBVA shares. The quantity of shares to be assigned is determined based on the level of responsibility of each beneficiary within the Group. The quantity of shares finally delivered depends on the attainment of indicators at the Group level and of their relevant weights.
|
|
§
|
CODE OF CONDUCT
|
|
§
|
CONFLICTS OF INTEREST
|
NOTE 21—OTHER REQUIRED DISCLOSURES IN ACCORDANCE WITH THE SEC’S REQUIREMENTS
|
|
21.1.
|
Minimum cash balances and restricted deposit
|
|
December 31,
|
|||||||
|
2013
|
2012
|
||||||
Peso and Foreign Currency Balances
|
5,583,762 | 4,654,479 |
|
21.2.
|
Interest-bearing deposits with other banks
|
|
a)
|
Included in “Cash and Due from Banks” there are: (1) interest-bearing deposits with the BCRA totalling 10,576,744 and 6,597,330 as of December 31, 2013 and 2012, respectively; (2) interest-bearing deposits in foreign banks totalling 54 as of December 31, 2012, and (3) interest-bearing deposits in local banks totalling 10 and 34 as of December 31, 2013 and 2012, respectively.
|
|
b)
|
Included in “Loans” there are: overnight foreign bank interest-bearing deposits totalling 59,618 and 113,279 as of December 31, 2013 and 2012, respectively.
|
|
c)
|
Included in “Other Receivables from Financial Transactions” there are other interest-bearing deposits with the BCRA totalling 224,634 and 196,569 as of December 31, 2013 and 2012, respectively.
|
|
21.3.
|
Instruments issued by the BCRA at amortized cost
|
December 31,
|
||||||||||||||||||||||||
2013
|
2012
|
2013
|
2012
|
2013
|
2012
|
|||||||||||||||||||
Book value
|
Gross unrealized
losses
|
Fair value
|
||||||||||||||||||||||
BCRA Bills
|
1,232,715 | 2,186,062 | 6,421 | 3,443 | 1,226,294 | 2,182,619 | ||||||||||||||||||
Total
|
1,232,715 | 2,186,062 | 6,421 | 3,443 | 1,226,294 | 2,182,619 |
December 31, 2013
|
||||||||
Amortized cost
|
Fair value
|
|||||||
Due in one year or less
|
1,232,715 | 1,226,294 | ||||||
Total
|
1,232,715 | 1,226,294 |
|
21.4.
|
Loans
|
|
-
|
Overdraft: basically short-term loans to companies and overdraft lines of credit.
|
|
-
|
Discounted instruments: includes promissory notes, discounted documents and instruments acquired under factoring agreements.
|
|
-
|
Real estate mortgage: loans to purchase or improve real estate and collateralized by such real estate or commercial loans secured by real estate
|
|
-
|
Collateral loans (real estate mortgage and security agreements): loans secured by privileged guarantees.
|
|
-
|
Consumer: loans granted to individuals to acquired consumer goods.
|
|
-
|
Credit cards: consists mainly of credit card loans.
|
|
-
|
Others: includes mainly short-term placements in foreign banks.
|
December 31,
|
||||||||
2013
|
2012
|
|||||||
Government sector
|
40,915 | 35,067 | ||||||
Financial sector
|
1,871,093 | 1,493,493 | ||||||
Non-financial private sector and residents abroad
|
35,278,648 | 27,488,728 | ||||||
—Commercial portfolio
|
||||||||
With self-liquidating preferred guarantees
|
393,906 | 313,541 | ||||||
With other preferred guarantees
|
579,452 | 336,113 | ||||||
Without preferred guarantees
|
14,723,542 | 12,427,813 | ||||||
—Consumer portfolio
|
||||||||
With self-liquidating preferred guarantees
|
18,270 | 15,184 | ||||||
With other preferred guarantees
|
3,904,886 | 3,054,375 | ||||||
Without preferred guarantees
|
15,658,592 | 11,341,702 | ||||||
Less: Allowances for doubtful loans
|
(722,462 | ) | (523,857 | ) | ||||
Total
|
36,468,194 | 28,493,431 | ||||||
Maturing
|
||||||||||||||||||||
Amount at December 31,
2013
|
Within
3 months
|
After 3
months but
within 1 year
|
After 1 year
but within
5 years
|
After 5 years
|
||||||||||||||||
(in thousands of pesos, except percentages)
|
||||||||||||||||||||
To the non-financial public sector
|
40,915 | 1,422 | — | 39,493 | — | |||||||||||||||
To the financial sector
|
1,871,093 | 821,283 | 498,106 | 551,704 | — | |||||||||||||||
To the non-financial private sector and residents abroad
|
35,278,648 | 17,836,311 | 7,767,079 | 9,496,685 | 178,573 | |||||||||||||||
Overdrafts
|
6,686,364 | 4,507,962 | 2,106,294 | 72,108 | — | |||||||||||||||
With privileged guarantees
|
4,793,518 | 529,730 | 1,504,496 | 2,591,642 | 167,650 | |||||||||||||||
Credit cards
|
7,479,654 | 7,479,654 | — | — | — | |||||||||||||||
Other
|
16,319,112 | 5,318,965 | 4,156,289 | 6,832,935 | 10,293 | |||||||||||||||
Total
|
37,190,656 | 18,659,016 | 8,265,185 | 10,087,882 | 178,573 | |||||||||||||||
Percentage of total loan portfolio
|
100.00 | % | 50.18 | % | 22.22 | % | 27.12 | % | 0.48 | % |
Industry Segment
|
As a percentage of
total loans
|
|||
Consumer
|
44.40 | |||
Other
|
14.65 | |||
Chemicals
|
6.67 | |||
Agricultural and livestock
|
5.53 | |||
Financial sector
|
5.03 | |||
Wholesale trade
|
4.81 | |||
Food stuff
|
4.36 | |||
Retail trade
|
4.04 | |||
Mining products
|
2.64 | |||
Beverage
|
2.15 | |||
Industrial metals
|
1.74 | |||
Transportation material
|
1.55 | |||
Electricity, oil, water and sanitary services
|
1.38 | |||
Rubber products
|
1.05 | |||
Total
|
100.00 | % | ||
December 31,
|
||||||||
|
2013
|
2012
|
||||||
Balance at the beginning of the fiscal year
|
596,153 | 528,260 | ||||||
New Loans
|
296,139 | 88,917 | ||||||
Repayments
|
(875 | ) | (21,024 | ) | ||||
Balance at the end of the fiscal year
|
891,417 | 596,153 |
|
21.5.
|
Allowance for loan losses
|
December 31,
|
||||||||||||
|
2013
|
2012
|
2011
|
|||||||||
Balance at the beginning of the fiscal year
|
523,857 | 444,973 | 396,227 | |||||||||
Provision for loan losses
|
456,267 | 259,181 | 134,199 | |||||||||
Charge-offs
|
(257,662 | ) | (180,297 | ) | (85,453 | ) | ||||||
Balance at the end of the fiscal year
|
722,462 | 523,857 | 444,973 |
|
21.6.
|
Other receivables from financial transactions
|
December 31,
|
||||||||
Description
|
2013
|
2012
|
||||||
With preferred guarantees
|
624,368 | 537,997 | ||||||
Without preferred guarantees
|
549,167 | 166,378 | ||||||
Allowances
|
(5,044 | ) | (3,450 | ) | ||||
1,168,491 | 700,925 |
December 31,
|
||||||||
Description
|
2013
|
2012
|
||||||
Forward Purchases and Sales
|
||||||||
“Notional” amount of non-deliverable forward purchases
|
5,414,377 | 3,452,819 | ||||||
“Notional” amount of non-deliverable forward sales
|
1,871,743 | 2,865,678 | ||||||
Interest rate SWAP
|
1,367,098 | 878,657 | ||||||
Contra credit derivatives accounts
|
(6,781,475 | ) | (4,331,476 | ) | ||||
Contra debit derivatives accounts
|
(1,871,743 | ) | (2,865,678 | ) | ||||
Non-deliverable forward transactions balances pending settlement-Receivables
|
6,744 | 8,834 | ||||||
Non-deliverable forward transactions balances pending settlement-Liability
|
47,245 | 928 | ||||||
Debtors under forward sales of foreign exchange
|
51,914 | — | ||||||
Repurchase agreements with government securities
|
||||||||
Forward sales under repurchase agreements
|
180,532 | — | ||||||
Debtors under repurchase agreements with the BCRA
|
176,191 | — | ||||||
Spot transactions with pending settlement
|
||||||||
Unsettled spot securities purchases
|
9,011 | — | ||||||
Unsettled spot foreign exchange purchases
|
52,144 | 18 | ||||||
Creditors under unsettled spot foreign exchange purchases
|
51,914 | 18 | ||||||
Unsettled spot securities sales
|
8,999 | — | ||||||
Debtors under unsettled spot foreign exchange sales
|
13,864 | 931 | ||||||
Unsettled spot foreign exchange sales
|
65,980 | 926 | ||||||
Unsettled spot Government securities purchases
|
11,412 | — | ||||||
Creditors under unsettled spot Government securities purchases
|
11,384 | — | ||||||
Debtors under unsettled spot Government securities sales
|
18,077 | — | ||||||
Unsettled spot Government securities sales
|
18,161 | — |
|
21.7.
|
Premises and equipment and other assets
|
21.7.1.
|
Premises and equipment
|
Estimated
useful
life (years)
|
December 31,
|
|||||||||||
Description
|
2013
|
2012
|
||||||||||
Land and buildings
|
50 | 602,884 | 581,726 | |||||||||
Furniture and facilities
|
10 | 283,072 | 213,573 | |||||||||
Machinery and equipment
|
5 | 234,222 | 187,904 | |||||||||
Vehicles
|
5 | 9,506 | 5,723 | |||||||||
Accumulated depreciation
|
(424,689 | ) | (368,945 | ) | ||||||||
Total
|
704,955 | 619,981 |
21.7.2.
|
Other assets
|
Estimated
useful
life (years)
|
December 31,
|
|||||||||||
Description
|
2013
|
2012
|
||||||||||
Advances to suppliers of goods
|
486,010 | 4,356 | ||||||||||
Construction in progress (see Note 21.18)
|
93,957 | 7,801 | ||||||||||
Rent assets
|
50 | 2,294 | 2,342 | |||||||||
Works of art
|
— | 992 | 992 | |||||||||
Assets acquired for secure loans
|
50 | 2,423 | 1,912 | |||||||||
Stationery and office supplies
|
— | 7,844 | 8,244 | |||||||||
Land and buildings not affected by banking activities
|
50 | 66,477 | 8,448 | |||||||||
Total
|
659,997 | 34,095 |
|
21.8.
|
Intangible assets
|
December 31,
|
|||||||||
Description
|
Estimated useful
life (years)
|
2013
|
2012
|
||||||
Computer software acquisition expenses and computer programs development expenses
|
up to 5
|
72,678 | 51,982 | ||||||
Other intangible assets
|
up to 5
|
48,077 | 65,349 | ||||||
Total
|
120,755 | 117,331 | |||||||
December 31,
|
||||||||
2013
|
2012
|
|||||||
Balance at the beginning of the fiscal year
|
117,331 | 80,978 | ||||||
—Additions
|
92,893 | 96,410 | ||||||
—Decreases
|
— | (62 | ) | |||||
—Period amortization
|
(89,469 | ) | (59,995 | ) | ||||
Balance at the end of the fiscal year
|
120,755 | 117,331 | ||||||
|
21.9.
|
Other liabilities from financial transactions – BCRA
|
December 31,
|
||||||||
Description
|
2013
|
2012
|
||||||
Short-term liabilities
|
93,746 | 51,936 | ||||||
Total
|
93,746 | 51,936 |
|
21.10.
|
Other liabilities from financial transactions – Banks and international institutions and financing received from financial institutions
|
December 31,
|
||||||||
Description
|
2013
|
2012
|
||||||
Short-term liabilities
|
||||||||
Other lines of credit from local and foreign banks
|
588,717 | 585,483 | ||||||
Total short-term liabilities
|
588,717 | 585,483 | ||||||
Long-term liabilities
|
||||||||
Other lines of credit from local and foreign banks
|
— | 42,182 | ||||||
Total long-term liabilities
|
— | 42,182 | ||||||
Total
|
588,717 | 627,665 |
|
21.11.
|
Balances in foreign currency
|
|
December 31,
|
|||||||
Description
|
2013
|
2012
|
||||||
Assets
|
||||||||
Cash and due from banks
|
5,918,782 | 2,020,589 | ||||||
Government and private securities
|
872,041 | 2,315 | ||||||
Loans
|
1,111,428 | 2,480,545 | ||||||
Other receivables from financial transactions
|
100,620 | 22,827 | ||||||
Receivables from financial leases
|
60 | 385 | ||||||
Investments in other companies
|
1,722 | 1,300 | ||||||
Other receivables
|
146,985 | 249,791 | ||||||
Suspense items
|
562 | 634 | ||||||
Total
|
8,152,200 | 4,778,386 | ||||||
Liabilities
|
||||||||
Deposits
|
4,720,888 | 3,514,335 | ||||||
Other liabilities from financial transactions
|
821,826 | 690,412 | ||||||
Other liabilities
|
118,440 | 67,643 | ||||||
Suspense items
|
571 | 869 | ||||||
Total
|
5,661,725 | 4,273,259 | ||||||
|
21.12.
|
Minimum capital requirements
|
|
Required
Minimum
Capital
|
Computable
Capital
|
Excess of actual
Minimum Capital
over Required
Minimum Capital (1)
|
|||||||||
December 31, 2013
|
3,964,903 | 7,080,153 | 3,115,250 | |||||||||
December 31, 2012
|
3,591,345 | 5,289,906 | 1,698,561 |
(1)
|
The Bank must maintain a surplus of minimum paid-in capitals amounting to at least 305,068 and 105,981 as at December 31, 2013 and 2012, respectively, equivalent to 0.25% of the amount of values under custody for securities representing investments from pension funds, as well as in connection with its function as registrar of mortgage-backed bonds, invested in national public securities and other destinations authorized by the BCRA and guaranteed in favour of the said Entity.
|
|
21.13.
|
Earnings per share
|
|
21.14.
|
Employee benefit plans
|
|
21.15.
|
Business segment consolidated information
|
As of December 31, 2013
|
||||||||||||||||||||
Continued operations
|
Discontinued
operations (5)
|
Total
|
||||||||||||||||||
Banking Financial
|
Pension Fund Manager
|
|||||||||||||||||||
BBVA Banco
Francés S.A.(4)
|
PSA Finance S.A.
|
Total
|
||||||||||||||||||
Total assets
|
55,765,494 | 2,684,358 | 58,449,852 | 73,772 | 58,523,624 | |||||||||||||||
Financial income
|
7,818,945 | 416,334 | 8,235,279 | 8,130 | 8,243,409 | |||||||||||||||
Service charge income and other income
|
3,463,699 | 344,558 | 3,808,257 | 7,124 | 3,815,381 | |||||||||||||||
Total income (1)
|
11,282,644 | 760,892 | 12,043,536 | 15,254 | 12,058,790 | |||||||||||||||
Financial expenses
|
(3,015,193 | ) | (241,659 | ) | (3,256,852 | ) | 3,042 | (3,253,810 | ) | |||||||||||
Allowances for doubtful loans
|
(431,467 | ) | (21,797 | ) | (453,264 | ) | — | (453,264 | ) | |||||||||||
Operating expenses
|
(3,848,175 | ) | (33,797 | ) | (3,881,972 | ) | (18,497 | ) | (3,900,469 | ) | ||||||||||
Other expenses (2)
|
(2,237,062 | ) | (134,428 | ) | (2,371,490 | ) | (1,099 | ) | (2,372,589 | ) | ||||||||||
Total expenses (3)
|
(9,531,897 | ) | (431,681 | ) | (9,963,578 | ) | (16,554 | ) | (9,980,132 | ) | ||||||||||
(Loss)/Gain on minority interest in subsidiaries
|
(97 | ) | (54,916 | ) | (55,013 | ) | 599 | (54,414 | ) | |||||||||||
Total net income
|
1,750,650 | 274,295 | 2,024,945 | (701 | ) | 2,024,244 |
(1)
|
Includes: financial income, service charge income and other income.
|
(2)
|
Includes: service charge expense, other expense and income tax.
|
(3)
|
Includes: financial expenses, allowances for doubtful loans, operating expenses and other expenses.
|
(4)
|
Includes: BBVA Francés Asset Management S.A. Sociedad Gerente de Fondos Comunes de Inversión and BBVA Francés Valores S.A.
|
(5)
|
See Note 15.
|
As of December 31, 2012
|
||||||||||||||||||||
Continued operations
|
Discontinued
operations (5)
|
Total
|
||||||||||||||||||
Banking Financial
|
Pension Fund Manager
|
|||||||||||||||||||
BBVA Banco
Francés S.A.(4)
|
PSA Finance S.A.
|
Total
|
||||||||||||||||||
Total assets
|
42,761,978 | 1,916,525 | 44,678,503 | 106,076 | 44,784,579 | |||||||||||||||
Financial income
|
5,423,751 | 281,442 | 5,705,193 | 9,728 | 5,714,921 | |||||||||||||||
Service charge income and other income
|
2,735,119 | 197,682 | 2,932,801 | 5,400 | 2,938,201 | |||||||||||||||
Total income (1)
|
8,158,870 | 479,124 | 8,637,994 | 15,128 | 8,653,122 | |||||||||||||||
Financial expenses
|
(1,955,017 | ) | (106,114 | ) | (2,061,131 | ) | 3,260 | (2,057,871 | ) | |||||||||||
Allowances for doubtful loans
|
(242,753 | ) | (13,506 | ) | (256,259 | ) | — | (256,259 | ) | |||||||||||
Operating expenses
|
(3,014,278 | ) | (25,453 | ) | (3,039,731 | ) | (21,977 | ) | (3,061,708 | ) | ||||||||||
Other expenses (2)
|
(1,896,026 | ) | (81,333 | ) | (1,977,359 | ) | (51 | ) | (1,977,410 | ) | ||||||||||
Total expenses (3)
|
(7,108,074 | ) | (226,406 | ) | (7,334,480 | ) | (18,768 | ) | (7,353,248 | ) | ||||||||||
Gain/(Loss) on minority interest in subsidiaries
|
(84 | ) | (37,790 | ) | (37,874 | ) | 1,679 | (36,195 | ) | |||||||||||
Total net income
|
1,050,712 | 214,928 | 1,265,640 | (1,961 | ) | 1,263,679 |
|
(1)
|
Includes: financial income, service charge income and other income.
|
|
(2)
|
Includes: service charge expense, other expense and income tax.
|
|
(3)
|
Includes: financial expenses, allowances for doubtful loans, operating expenses and other expenses.
|
|
(4)
|
Includes: BBVA Francés Asset Management S.A. Sociedad Gerente de Fondos Comunes de Inversión and BBVA Francés Valores S.A.
|
|
(5)
|
See Note 15.
|
As of December 31, 2011
|
||||||||||||||||||||
Continued operations
|
Discontinued
operations (5)
|
Total
|
||||||||||||||||||
Banking Financial
|
Pension Fund Manager / Insurance
|
|||||||||||||||||||
BBVA Banco
Francés S.A.(4)
|
PSA Finance S.A.
|
Total
|
||||||||||||||||||
Total assets
|
37,640,829 | 1,329,244 | 38,970,073 | 35,572 | 39,005,645 | |||||||||||||||
Financial income
|
3,412,422 | 152,608 | 3,565,030 | 249,655 | 3,814,685 | |||||||||||||||
Service charge income and other income
|
2,078,461 | 129,350 | 2,207,811 | 78,537 | 2,286,348 | |||||||||||||||
Total income (1)
|
5,490,883 | 281,958 | 5,772,841 | 328,192 | 6,101,033 | |||||||||||||||
Financial expenses
|
(1,300,279 | ) | (55,419 | ) | (1,355,698 | ) | 10,295 | (1,345,403 | ) | |||||||||||
Allowances for doubtful loans
|
(122,066 | ) | (10,597 | ) | (132,663 | ) | — | (132,663 | ) | |||||||||||
Operating expenses
|
(2,263,288 | ) | (16,212 | ) | (2,279,500 | ) | (63,700 | ) | (2,343,200 | ) | ||||||||||
Other expenses (2)
|
(1,006,203 | ) | (58,661 | ) | (1,064,864 | ) | (200,864 | ) | (1,265,728 | ) | ||||||||||
Total expenses (3)
|
(4,691,836 | ) | (140,889 | ) | (4,832,725 | ) | (254,269 | ) | (5,086,994 | ) | ||||||||||
Gain/(Loss) on minority interest in subsidiaries
|
24,691 | (17,908 | ) | 6,783 | (15,245 | ) | (8,462 | ) | ||||||||||||
Total net income
|
823,738 | 123,161 | 946,899 | 58,678 | 1,005,577 |
(1)
|
Includes: financial income, service charge income and other income.
|
(2)
|
Includes: service charge expense, other expense and income tax.
|
(3)
|
Includes: financial expenses, allowances for doubtful loans, operating expenses and other expenses.
|
(4)
|
Includes: BBVA Francés Asset Management S.A. Sociedad Gerente de Fondos Comunes de Inversión and BBVA Francés Valores S.A.
|
(5)
|
See Notes 1.4. and 15.
|
|
21.16.
|
Consolidated income statements and balance sheets
|
December 31,
|
||||||||||||
2013
|
2012
|
2011
|
||||||||||
Consolidated Income Statements
|
||||||||||||
Interest and fees on loans
|
5,869,353 | 4,050,719 | 2,589,599 | |||||||||
Trading account interest
|
485,258 | 769,498 | 589,491 | |||||||||
Total interest income
|
6,354,611 | 4,820,217 | 3,179,090 | |||||||||
Interest on deposits
|
2,388,993 | 1,541,589 | 1,060,235 | |||||||||
Interest on short-term borrowings
|
284,740 | 173,620 | 71,340 | |||||||||
Interest on long-term debt
|
3 | 1 | 17 | |||||||||
Total interest expense
|
2,673,736 | 1,715,210 | 1,131,592 | |||||||||
Net interest income
|
3,680,875 | 3,105,007 | 2,047,498 | |||||||||
Provision for loan losses
|
453,264 | 256,259 | 132,663 | |||||||||
Net interest income after provision for loan losses
|
3,227,611 | 2,848,748 | 1,914,835 | |||||||||
Service charges on deposit accounts
|
305,997 | 377,430 | 317,059 | |||||||||
Credit card service charges and fees
|
1,999,788 | 1,308,886 | 859,032 | |||||||||
Fees on securities activities
|
16,745 | 11,067 | 19,119 | |||||||||
Other commissions
|
1,847,781 | 1,300,305 | 1,015,020 | |||||||||
Income from investment in equity securities
|
96,686 | 71,779 | 111,461 | |||||||||
Foreign currency gains, net
|
590,982 | 190,309 | 218,622 | |||||||||
Gains on disposal of fixed and other assets
|
477 | 43,578 | 2,150 | |||||||||
Others
|
845,723 | 529,551 | 379,480 | |||||||||
Total other income
|
5,704,179 | 3,832,905 | 2,921,943 | |||||||||
Consolidated Expenses Statements
|
||||||||||||
Commissions
|
615,635 | 468,422 | 366,352 | |||||||||
Personnel expenses
|
1,959,587 | 1,581,391 | 1,228,959 | |||||||||
Fees and external administrative services
|
291,108 | 215,488 | 150,640 | |||||||||
Depreciation of bank premises and equipment and other fixed assets
|
101,161 | 87,189 | 65,439 | |||||||||
Business travel and development
|
26,359 | 22,098 | 14,447 | |||||||||
Utilities
|
70,095 | 60,393 | 42,289 | |||||||||
Advertising and promotion
|
172,307 | 146,287 | 122,412 | |||||||||
Contributions and taxes
|
1,172,410 | 729,595 | 506,914 | |||||||||
Maintenance and repairs
|
183,157 | 130,202 | 97,602 | |||||||||
Provision for loss contingencies
|
166,288 | 351,450 | 128,095 | |||||||||
Others
|
1,027,979 | 760,783 | 555,694 | |||||||||
Total other expenses
|
5,786,086 | 4,553,298 | 3,278,843 | |||||||||
Income before income tax and tax on minimum presumed income expenses
|
3,145,704 | 2,128,355 | 1,557,935 | |||||||||
Income tax and tax on minimum presumed income expenses
|
1,121,460 | 864,676 | 552,358 | |||||||||
Net income
|
2,024,244 | 1,263,679 | 1,005,577 | |||||||||
Net loss attributable to the non-controlling interest
|
(54,414 | ) | (36,195 | ) | (8,462 | ) | ||||||
Net income attributable to the controlling interest
|
2,078,658 | 1,299,874 | 1,014,039 | |||||||||
Net income per Ordinary Share (1)
|
3.77 | 2.35 | 1.87 |
December 31,
|
||||||||
2013
|
2012
|
|||||||
Assets
|
||||||||
Cash and due from banks
|
2,305,037 | 2,017,559 | ||||||
Interest bearing deposits in other banks
|
10,801,378 | 6,793,899 | ||||||
Unsettled spot purchases
|
72,567 | 18 | ||||||
Debtors under forward sales and under reverse repurchase agreements
|
228,105 | — | ||||||
Debtors under unsettled spot sales
|
31,941 | 931 | ||||||
Trading account assets
|
3,459,771 | 4,101,682 | ||||||
Investments securities
|
210,657 | 146,001 | ||||||
Loans
|
37,190,656 | 29,017,288 | ||||||
Allowance for loan losses
|
(722,462 | ) | (523,857 | ) | ||||
Premises and equipment
|
704,995 | 619,981 | ||||||
Intangible assets
|
120,755 | 117,331 | ||||||
Other assets
|
4,120,224 | 2,493,746 | ||||||
Total assets
|
58,523,624 | 44,784,579 | ||||||
Liabilities and Stockholders’ Equity
|
||||||||
Interest bearing deposits
|
29,198,369 | 22,351,365 | ||||||
Non interest bearing deposits
|
14,561,096 | 11,813,688 | ||||||
Creditors under forward purchases and under reverse repurchase agreements
|
47,245 | 928 | ||||||
Creditors under unsettled spot purchases
|
63,298 | 18 | ||||||
Forward sales and under repurchase agreements
|
180,532 | — | ||||||
Unsettled spot sales
|
93,140 | 926 | ||||||
Other short-term borrowings
|
3,697,639 | 3,131,488 | ||||||
Other liabilities
|
1,782,981 | 1,439,524 | ||||||
Long-term debt
|
861,406 | 151,763 | ||||||
Commitments and contingent liabilities
|
709,343 | 644,962 | ||||||
Common Stock
|
536,878 | 536,878 | ||||||
Other stockholders’ equity
|
6,619,302 | 4,595,058 | ||||||
Non-controlling interests in consolidated subsidiaries
|
172,395 | 117,981 | ||||||
Total liabilities and stockholders’ equity
|
58,523,624 | 44,784,579 | ||||||
December 31,
|
||||||||
2013
|
2012
|
|||||||
Assets
|
||||||||
Cash and due from banks
|
77 | 88 | ||||||
Trading account assets
|
27,064 | 44,942 | ||||||
Loans
|
— | 26,233 | ||||||
Other assets
|
46,631 | 34,813 | ||||||
Total assets
|
73,772 | 106,076 | ||||||
Liabilities
|
||||||||
Interest bearing deposits
|
(22,136 | ) | — | |||||
Non interest bearing deposits
|
(2,099 | ) | (305 | ) | ||||
Other liabilities
|
3,219 | 3,374 | ||||||
Commitments and contingent liabilities
|
79,438 | 86,357 | ||||||
Non-controlling interests in consolidated subsidiaries
|
7,078 | 7,677 | ||||||
Total liabilities
|
65,500 | 97,103 | ||||||
|
21.17.
|
Off-Balance sheet financial instrument
|
|
a)
|
Derivatives
|
|
§
|
Options: they confer the right on the buyer, but no obligation, to receive or pay a specific quantity of an asset or financial instrument for specified price at or before a specified date. Options may be exchange traded or Over the Counter (OTC) agreements. The Bank principally buys and sells interest options on an index.
|
|
§
|
Futures and Forwards: they are agreements to deliver or take delivery of a specified rate, price or index applied against the underlying asset or financial instrument, at a specific date. Futures are exchange traded at standardized amounts of the underlying asset or financial instrument. Forward contracts are OTC agreements and are principally dealt in by the Bank in securities/foreign exchange as forward agreements.
|
|
§
|
Swaps: they are agreements between two parts with the intention to exchange cash flows and risks at a specific date and for a period in the future. Swaps may be exchange traded or OTC agreements. In addition see Note 12.
|
December 31,
|
||||||||
2013
|
2012
|
|||||||
Forward sales and purchases of foreign exchange
|
7,286,120 | 6,318,497 | ||||||
Forward sales / purchases under reverse repurchase agreements
|
180,380 | — | ||||||
Interest rate SWAP
|
1,367,098 | 878,657 |
|
b)
|
Credit-related financial instruments
|
December 31,
|
||||||||
2013
|
2012
|
|||||||
Credit lines granted (unused portion) cover by debtor classification regulations
|
453,478 | 322,959 | ||||||
Foreign trade acceptances and standby letters of credit
|
199,231 | 76,515 | ||||||
Guarantees granted
|
446,358 | 365,601 |
December 31,
|
||||||||
2013
|
2012
|
|||||||
Self-liquidating counter guarantees
|
105,643 | 6,533 | ||||||
Preferred counter guarantees
|
6,232 | 27,246 | ||||||
Without guarantees
|
828,409 | 554,216 |
December 31,
|
||||||||
2013
|
2012
|
|||||||
Checks drawn on the Bank pending clearing
|
602,976 | 515,628 | ||||||
Checks drawn against other Banks
|
1,186,195 | 1,404,173 | ||||||
Drafts and notes for collection
|
686,371 | 495,183 |
|
c)
|
Trust activities
|
|
21.18.
|
Contractual commitment
|
NOTE 22—SUMMARY OF SIGNIFICANT DIFFERENCES BETWEEN THE ARGENTINE CENTRAL BANK RULES AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
|
|
22.1.
|
Income taxes
|
December 31,
|
||||||||||||
Description
|
2013
|
2012
|
2011
|
|||||||||
Income before income tax in accordance with US GAAP
|
3,359,310 | 2,270,399 | 1,047,051 | |||||||||
Statutory income tax rate
|
35.00 | % | 35.00 | % | 35.00 | % | ||||||
Income tax provision computed at statutory rate
|
1,175,759 | 794,640 | 366,468 | |||||||||
Tax exempt income
|
(77,282 | ) | (48,412 | ) | (79,862 | ) | ||||||
Charge of allowances on deferred tax assets
|
— | — | (16,797 | ) | ||||||||
Other, net
|
82,289 | (16,933 | ) | 78,435 | ||||||||
Income tax computed in accordance with U.S. GAAP
|
1,180,766 | 729,295 | 348,244 | |||||||||
Income tax computed in accordance with BCRA’s rules
|
1,121,460 | 864,676 | 505,058 | |||||||||
Adjustments to reconcile income tax (benefit) to U.S. GAAP
|
59,306 | (135,381 | ) | (156,814 | ) | |||||||
December 31,
|
||||||||||||
Concept
|
2013
|
2012
|
2011
|
|||||||||
Federal Government secured loans – Decree Nr. 1387/01
|
— | — | 25,353 | |||||||||
Equity method
|
— | — | 2,362 | |||||||||
Real property sales result
|
— | (25,986 | ) | 2,691 | ||||||||
Non-deductible items
|
64,432 | — | — | |||||||||
Non-deductible charges
|
368 | — | 6,741 | |||||||||
Non-deductible royalties
|
6,279 | — | — | |||||||||
Donations
|
2,891 | 4,076 | 7,517 | |||||||||
Business travel and development non-deductible
|
289 | 243 | 557 | |||||||||
Law Nr. 19,640 result
|
— | — | 10,206 | |||||||||
Other
|
8,030 | 4,734 | 23,008 | |||||||||
Other, net
|
82,289 | (16,933 | ) | 78,435 |
December 31,
|
||||||||||||
Description
|
2013
|
2012
|
2011
|
|||||||||
Accounting evolution
|
||||||||||||
Initial Balance
|
— | — | 47,991 | |||||||||
Increase / (decrease)
|
— | — | (47,991 | ) | ||||||||
Final Balance
|
— | — | — | |||||||||
Income Tax
|
||||||||||||
Income Tax accounting result
|
— | — | 47,991 | |||||||||
Allowances on deferred tax assets initial balance
|
— | — | (47,991 | ) | ||||||||
Allowances on deferred tax assets final balance
|
— | — | — | |||||||||
Tax Result
|
— | — | — |
December 31,
|
||||||||||||
2013
|
2012
|
2011
|
||||||||||
Income tax computed in accordance with BCRA’s rules
|
1,121,460 | 864,676 | 505,058 | |||||||||
Net current Tax adjustment U.S. GAAP
|
59,306 | (135,381 | ) | (156,814 | ) | |||||||
Income tax computed in accordance with US GAAP
|
1,180,766 | 729,295 | 348,244 |
|
1.
|
Adjustments to reconcile income tax (benefit) to U.S. GAAP: Reconciling items between Local GAAP Income Tax and Income Tax in accordance with US GAAP are included in this adjustment.
|
|
2.
|
Adjustment in Deferred tax under BCRA: The adjustment includes 25,800 corresponding to the variation between the initial balance and the final balance of the “Deferred tax asset under BCRA”.
|
|
3.
|
Adjustment in Deferred tax asset allowance: Existing BCRA regulations do not allow accounting for deferred tax assets. As such, we credit that valuation allowance for the same amount to offset the effect. The impact of this is therefore null on the income statement. Under US GAAP, however, there is an impact on the results because under US GAAP it is possible to account for deferred tax assets based on the argument that such amount will eventually be recovered in the future.
|
December 31, 2013
|
||||||||
Income tax computed in accordance with BCRA´s rules
|
1,121,460 | |||||||
1. Adjustments to reconcile income tax (benefit) to U.S. GAAP
|
59,306 | |||||||
Income tax computed in accordance with US GAAP
|
1,180,766 | |||||||
2. Deferred tax under BCRA
|
||||||||
Deferred tax asset under BCRA (initial Balance)
|
256,900 | |||||||
Deferred tax asset under BCRA (final Balance)
|
231,100 | |||||||
Adjustment to reconcile net deferred tax asset under U.S. GAAP
|
(25,800 | ) | (25,800 | ) | ||||
3. Deferred tax asset allowance
|
||||||||
Deferred tax asset under BCRA (initial Balance)
|
(256,900 | ) | ||||||
Deferred tax asset under BCRA (final Balance)
|
(231,100 | ) | ||||||
Adjustment to reconcile net deferred tax asset allowance under U.S. GAAP
|
25,800 | 25,800 | ||||||
Total Income tax expense in accordance with U.S. GAAP
|
1,180,766 |
|
1.
|
Adjustments to reconcile income tax (benefit) to U.S. GAAP: Reconciling items between Local GAAP Income Tax and Income Tax in accordance with US GAAP are included in this adjustment.
|
|
2.
|
Adjustment in Deferred tax under BCRA: The adjustment includes 147,300 corresponding to the variation between the initial balance and the final balance of the “Deferred tax asset under BCRA”.
|
|
3.
|
Adjustment in Deferred tax asset allowance: Existing BCRA regulations do not allow accounting for deferred tax assets. As such, we credit that valuation allowance for the same amount to offset the effect. The impact of this is therefore null on the income statement. Under US GAAP, however, there is an impact on the results because under US GAAP it is possible to account for deferred tax assets based on the argument that such amount will eventually be recovered in the future.
|
December 31, 2012
|
||||||||
Income tax computed in accordance with BCRA´s rules
|
864,676 | |||||||
1. Adjustments to reconcile income tax (benefit) to U.S. GAAP
|
(135,381 | ) | ||||||
Income tax computed in accordance with US GAAP
|
729,295 | |||||||
2. Deferred tax under BCRA
|
||||||||
Deferred tax asset under BCRA (initial Balance)
|
109,600 | |||||||
Deferred tax asset under BCRA (final Balance)
|
256,900 | |||||||
Adjustment to reconcile net deferred tax asset under U.S. GAAP
|
147,300 | 147,300 | ||||||
3. Deferred tax asset allowance
|
||||||||
Deferred tax asset under BCRA (initial Balance)
|
(109,600 | ) | ||||||
Deferred tax asset under BCRA (final Balance)
|
(256,900 | ) | ||||||
Adjustment to reconcile net deferred tax asset allowance under U.S. GAAP
|
(147,300 | ) | (147,300 | ) | ||||
Total Income tax expense in accordance with U.S. GAAP
|
729,295 |
December 31,
|
||||||||||||
Description
|
2013
|
2012
|
2011
|
|||||||||
Deferred tax assets:
|
||||||||||||
Carry forward
|
1,506 | — | — | |||||||||
Loans
|
46,865 | 58,653 | 15,546 | |||||||||
Loan origination and issuance credit card’s fees
|
82,375 | 50,620 | 41,611 | |||||||||
Other liabilities
|
16,508 | 52,170 | 39,844 | |||||||||
Allowance for loss contingencies
|
252,949 | 250,792 | 191,769 | |||||||||
Other
|
22,607 | 66,598 | 31,776 | |||||||||
422,810 | 478,833 | 320,546 | ||||||||||
Deferred tax liabilities:
|
||||||||||||
Government and private securities valuation
|
(14,538 | ) | (111,799 | ) | (138,089 | ) | ||||||
Foreign exchange difference
|
(14,893 | ) | (13,576 | ) | (22,728 | ) | ||||||
Intangible assets
|
(26,876 | ) | (18,086 | ) | (5,073 | ) | ||||||
Other
|
(83,741 | ) | (46,538 | ) | (6,013 | ) | ||||||
(140,048 | ) | (189,999 | ) | (171,903 | ) | |||||||
Net deferred tax asset under U.S. GAAP
|
282,762 | 288,834 | 148,643 | |||||||||
Net deferred tax asset in accordance with BCRA’s rules
|
231,100 | 256,900 | 109,600 | |||||||||
Adjustment to reconcile net deferred tax assets to U.S. GAAP
|
51,662 | 31,934 | 39,043 | |||||||||
Allowances on deferred tax assets in accordance with BCRA’s rules
|
(231,100 | ) | (256,900 | ) | (109,600 | ) | ||||||
Adjustment to reconcile Allowances on deferred tax assets to U.S. GAAP
|
231,100 | 256,900 | 109,600 | |||||||||
Net deferred tax asset under U.S. GAAP
|
282,762 | 288,834 | 148,643 |
|
§
|
Government and private securities valuation: as mentioned in Note 22.4. all unlisted government and private securities and those with non-representative valuation, were adjusted at fair value, thus causing an increase/decrease in their accounting value, which does not comply with the conditions required for them to be taxable in the fiscal years ended December 31, 2013, 2012 and 2011.
|
|
§
|
Loans: as regards deduction of uncollectible accounts, effective Argentine tax rules require the existence of certain uncollectibility indicators defined in the Income Tax Law (i.e.: to begin court proceedings or bankruptcy adjudication), whereas under accounting criteria uncollectibility charges are recorded on the basis of assessing the debtor’s payment capacity. This difference principally relates to the accounting registration of the impairment that took place in the loans to the provincial governmental sector and to other public sector agencies (see Note 22.3.4.), which, as mentioned above, does not comply with the indicators required to be tax-deductible. In addition, it includes the difference between account and tax recognition of income of Federal Government secured loans.
|
|
§
|
Loan origination and issuance credit card’s fees: deferred assets result from differences in the U.S. GAAP accounting and tax criteria used to assess expense accruals of them (Note 22.2.).
|
|
§
|
Property, equipment and miscellaneous assets: under tax criteria, PP&E depreciation is determined on values equivalent to the acquisition cost of the respective PP&E items and by the full-year-of-addition depreciation method. Under accounting criteria, depreciation is determined on values equivalent to the acquisition cost restated by inflation as explained in Note 3.2. and on the basis of the months of useful life elapsed from addition date through valuation date.
|
|
§
|
Other liabilities: deferred assets/liabilities result from differences in the accounting and tax criteria used to assess expense accruals such as accrual for dismissals calculation.
|
|
§
|
Allowance for loss contingencies: as regards deduction of loss contingencies, effective Argentine tax rules require the existence of certain indicators defined in the Income Tax Law (i.e. final judgment), whereas under accounting criteria, loss contingencies charges are recorded on the basis of the estimated amounts necessary to meet contingencies of probable occurrence.
|
|
22.2.
|
Loan origination and issuance credit card’s fees
|
|
22.3.
|
Loan loss reserve
|
|
December 31,
|
|||||||||||
2013
|
2012
|
2011
|
||||||||||
—Total amount of loans considered as impaired
|
536,346 | 373,013 | 212,653 | |||||||||
Amount of loans considered as impaired for which there is a related allowance for credit losses
|
536,346 | 373,013 | 212,653 | |||||||||
—Reserves allocated to impaired loans
|
267,960 | 172,664 | 105,457 | |||||||||
—Average balance of impaired loans during the fiscal year
|
474,967 | 323,276 | 188,253 |
December 31,
|
||||||||||||
|
2013
|
2012
|
2011
|
|||||||||
Balance at the beginning of the fiscal year
|
325,887 | 264,041 | 180,695 | |||||||||
Provision for loan losses
|
346,839 | 242,143 | 168,799 | |||||||||
Charge-offs
|
(257,662 | ) | (180,297 | ) | (85,453 | ) | ||||||
Balance at the end of the fiscal year
|
415,064 | 325,887 | 264,041 |
22.3.1.
|
Interest recognition—non-accrual loans
|
|
-
|
“With problems”; “With high risk of insolvency” and “Irrecoverable” in the commercial portfolio.
|
|
-
|
“Medium risk”; “High risk” and “Irrecoverable” in the consumer portfolio.
|
|
-
|
“Normal” or “With special tracking – Under observation” in the commercial portfolio.
|
|
-
|
“Normal” or “Low risk” in the consumer portfolio.
|
22.3.2.
|
Impaired loans—Non-Financial Private Sector and residents abroad
|
|
-
|
Consumer / Commercial-like consumer portfolio: the main criterion for classifying a client is the number of days past due (more than 90 days is considered as doubtful), and the Bank also considers refinancing transactions, present payment agreements resulting from judicial or extrajudicial proceedings, requests for composition proceedings or preventive extrajudicial agreement not yet homologated and bankruptcy among others. To calculate the allowance required for smaller-balance impaired loans, in accordance with US GAAP, historical loss ratios are determined by analyzing historical losses. Loss estimates are analyzed by loan type for homogeneous groups of clients. Such historical ratios are updated to incorporate the most recent data reflecting current economic conditions, trends and any other pertinent information that may affect the estimation of the allowance for loan losses.
|
|
-
|
Commercial portfolio: the objective basis is the repayment capacity according to the client’s projected funds flow. The classification of a client may also be influenced by: the existence of refinancing transactions, present payment agreements resulting from judicial or extrajudicial proceedings, requests for composition proceedings or extrajudicial preventive agreement not yet homologated and bankruptcy among others. Such treatment is consistent with US GAAP.
|
2013
|
2012
|
2011
|
||||||||||||||||||||||||||||||||||
BCRA
|
US GAAP
|
Diff.
|
BCRA
|
US GAAP
|
Diff.
|
BCRA
|
US GAAP
|
Diff.
|
||||||||||||||||||||||||||||
Commercial-like consumer
|
39,285 | 78,569 | (39,284 | ) | 30,622 | 60,772 | (30,150 | ) | 21,697 | 61,028 | (39,331 | ) | ||||||||||||||||||||||||
Consumer
|
449,656 | 131,790 | 317,866 | 315,528 | 106,859 | 208,669 | 238,475 | 73,507 | 164,968 | |||||||||||||||||||||||||||
Commercial
(sit 2-6)
|
31,588 | 31,588 | — | 12,372 | 12,372 | — | 5,811 | 5,811 | — | |||||||||||||||||||||||||||
Commercial (sit 1)
|
201,933 | 173,117 | 28,816 | 165,335 | 145,884 | 19,451 | 178,990 | 123,695 | 55,295 | |||||||||||||||||||||||||||
Total
|
722,462 | 415,064 | 307,398 | 523,857 | 325,887 | 197,970 | 444,973 | 264,041 | 180,932 |
|
-
|
Refinancing, restructuring and renegotiation programs
|
2013
|
2012
|
||||||||||||||||||||||||
-12 months
|
-12 months
|
||||||||||||||||||||||||
Q |
Outstanding amount
|
Allowance
|
Q |
Outstanding amount
|
Allowance
|
||||||||||||||||||||
Restructured loans
|
Restructured loans
|
||||||||||||||||||||||||
Consumer
|
9,239 | 131,803 | 4,781 |
Consumer
|
5,221 | 60,783 | 1,838 | ||||||||||||||||||
Commercial
|
3 | 3,635 | 36 |
Commercial
|
2 | 5,766 | 72 | ||||||||||||||||||
9,242 | 135,438 | 4,817 | 5,223 | 66,549 | 1,910 | ||||||||||||||||||||
-1 month
|
-1 month
|
||||||||||||||||||||||||
Q |
Outstanding amount
|
Allowance
|
Q |
Outstanding amount
|
Allowance
|
||||||||||||||||||||
Restructured loans
|
Restructured loans
|
||||||||||||||||||||||||
Consumer
|
9,239 | 169,089 | 58,276 |
Consumer
|
5,221 | 86,448 | 34,918 | ||||||||||||||||||
Commercial
|
3 | 3,393 | 91 |
Commercial
|
2 | 6,652 | 592 | ||||||||||||||||||
9,242 | 172,482 | 58,367 | 5,223 | 93,100 | 35,510 | ||||||||||||||||||||
Current month
|
Current month
|
||||||||||||||||||||||||
Q |
Outstanding amount
|
Allowance
|
Q |
Outstanding amount
|
Allowance
|
||||||||||||||||||||
Restructured loans
|
Restructured
Loans
|
||||||||||||||||||||||||
Consumer
|
9,239 | 192,715 | 63,228 |
Consumer
|
5,221 | 85,555 | 31,294 | ||||||||||||||||||
Commercial
|
3 | 4,674 | 179 |
Commercial
|
2 | 3,848 | 38 | ||||||||||||||||||
9,242 | 197,389 | 63,407 | 5,223 | 89,413 | 31,332 | ||||||||||||||||||||
+12 months
|
+12 months
|
||||||||||||||||||||||||
Q |
Outstanding amount
|
Allowance
|
Q |
Outstanding amount
|
Allowance
|
||||||||||||||||||||
Restructured loans
|
Restructured loans
|
||||||||||||||||||||||||
Consumer
|
9,239 | 154,264 | 42,048 |
Consumer
|
5,221 | 72,243 | 16,606 | ||||||||||||||||||
Commercial
|
3 | 4,804 | 180 |
Commercial
|
2 | 3,471 | 99 | ||||||||||||||||||
9,242 | 159,068 | 42,228 | 5,223 | 75,714 | 16,705 | ||||||||||||||||||||
Variation -12 months vs Current month
|
1,216.3 | % |
Variation -12 months vs Current month
|
1,540.1 | % | ||||||||||||||||||||
Variation -1 months vs Current month
|
8.6 | % |
Variation -1 months vs Current month
|
(11.8 | )% | ||||||||||||||||||||
Variation +12 months vs Current month
|
(33.4 | )% |
Variation +12 months vs Current month
|
(46.7 | )% |
|
-
|
Troubled debt restructurings loans (“TDR”)
|
2013
|
||||||||
Troubled debt restructuring
|
Number of contracts
|
Post-modification outstanding recorded investment
|
||||||
Commercial
|
||||||||
Others
|
24 | 17,975 | ||||||
Consumer
|
||||||||
Personal Loans
|
11,849 | 182,395 | ||||||
Mortgage
|
194 | 6,395 | ||||||
Others
|
83 | 12,020 | ||||||
12,150 | 218,785 |
2012
|
||||||||
Troubled debt restructuring
|
Number of contracts
|
Post-modification outstanding recorded investment
|
||||||
Commercial
|
||||||||
Others
|
3 | 16,320 | ||||||
Consumer
|
||||||||
Personal Loans
|
8,265 | 94,140 | ||||||
Mortgage
|
210 | 6,754 | ||||||
Others
|
47 | 7,447 | ||||||
8,525 | 124,661 |
2013
|
||||||||
Troubled debt restructuring that subsequently defaulted
|
Number of contracts
|
Recorded investment
|
||||||
Consumer
|
||||||||
Personal Loans
|
2,914 | 43,813 | ||||||
Mortgage
|
5 | 463 | ||||||
Others
|
15 | 2,682 | ||||||
2,934 | 46,958 |
2012
|
||||||||
Troubled debt restructuring that subsequently defaulted
|
Number of contracts
|
Recorded investment
|
||||||
Consumer
|
||||||||
Personal Loans
|
1,378 | 17,749 | ||||||
Mortgage
|
1 | 63 | ||||||
Others
|
3 | 198 | ||||||
1,382 | 18,010 |
|
-
|
Past due loans
|
Past due loans
|
||||||||||||||||
30 – 59 days
|
60 – 89 days
|
More than 90 days
|
Total
December 31, 2013
|
|||||||||||||
Financial sector
|
— | — | 293 | 293 | ||||||||||||
To non-financial private sector and residents abroad:
|
9,275 | 8,900 | 170,403 | 188,578 | ||||||||||||
Discounted instruments
|
455 | 151 | 1,223 | 1,829 | ||||||||||||
Real estate mortgage
|
249 | 120 | 3,874 | 4,243 | ||||||||||||
Collateral loans
|
2,539 | 1,213 | 49,773 | 53,525 | ||||||||||||
Consumer
|
4,576 | 3,447 | 41,498 | 49,521 | ||||||||||||
Credit cards
|
793 | 1,072 | 18,454 | 20,319 | ||||||||||||
Other
|
663 | 2,897 | 55,581 | 59,141 | ||||||||||||
Total
|
9,275 | 8,900 | 170,696 | 188,871 |
Past due loans
|
||||||||||||||||
30 – 59 days
|
60 – 89 days
|
More than 90 days
|
Total
December 31, 2012
|
|||||||||||||
To non-financial private sector and residents abroad:
|
6,541 | 4,398 | 106,656 | 117,595 | ||||||||||||
Discounted instruments
|
— | — | 1,531 | 1,531 | ||||||||||||
Real estate mortgage
|
24 | 148 | 2,650 | 2,822 | ||||||||||||
Collateral loans
|
1,249 | 406 | 37,725 | 39,380 | ||||||||||||
Consumer
|
4,344 | 2,369 | 32,300 | 39,013 | ||||||||||||
Credit cards
|
648 | 631 | 11,019 | 12,298 | ||||||||||||
Other
|
276 | 844 | 21,431 | 22,551 | ||||||||||||
Total
|
6,541 | 4,398 | 106,656 | 117,595 |
22.3.3.
|
Federal Government Secured Loans
|
22.3.4.
|
Argentine Government Notes
|
|
22.4.
|
Government and other debt securities—Available for sale
|
US GAAP stockholder equity
|
Result (a)
|
Gross unrealized (Loss) / Gains (b)
|
Net income
(a – b)
|
|||||||||||||||||||||||||||||||||||||||||||||
December 31,
|
December 31,
|
December 31,
|
December 31,
|
|||||||||||||||||||||||||||||||||||||||||||||
2013
|
2012
|
2011
|
2013
|
2012
|
2011
|
2013
|
2012
|
2011
|
2013
|
2012
|
2011
|
|||||||||||||||||||||||||||||||||||||
Continued operations
|
(7,524 | ) | (3,360 | ) | (5,752 | ) | (4,164 | ) | 2,392 | (3,822 | ) | (152,098 | ) | (13,743 | ) | (216,848 | ) | 147,934 | 16,135 | 213,026 | ||||||||||||||||||||||||||||
Discontinued operations
|
— | — | — | — | — | (207,797 | ) | — | — | (309,382 | ) | — | — | 101,585 | ||||||||||||||||||||||||||||||||||
Total
|
(7,524 | ) | (3,360 | ) | (5,752 | ) | (4,164 | ) | 2,392 | (211,619 | ) | (152,098 | ) | (13,743 | ) | (526,230 | ) | 147,934 | 16,135 | 314,611 |
Government securities
|
||||||||
December 31,
|
||||||||
2013
|
2012
|
|||||||
Amortized cost
|
3,833,787 | 4,280,598 | ||||||
Gross Unrealized Loss
|
(304,596 | ) | (172,017 | ) | ||||
Gross Unrealized Gains
|
28,949 | 48,468 | ||||||
Fair Value
|
3,558,140 | 4,157,049 | ||||||
Number of Positions
|
41 | 18 |
Less than 12 months
|
12 months or greater
|
Total
|
||||||||||||||||||||||
Fair value
|
Unrealized losses
|
Fair value
|
Unrealized losses
|
Fair value
|
Unrealized losses
|
|||||||||||||||||||
Government securities
|
— | — | 3,172,228 | (304,596 | ) | 3,172,228 | (304,596 | ) |
|
§
|
The decline is attributable solely to adverse interest rate movements, and has not connection with a credit event;
|
|
§
|
The principal and interest payments have been made as scheduled, and there is no evidence that the debtor will not continue to do so;
|
|
§
|
The future principal payments will be sufficient to recover the current amortized cost of the security;
|
|
§
|
We have the intent to hold the security at least until the fair value of the security recovers to a level that exceeds the security’s amortized costs; and
|
|
§
|
They have mainly arisen in a period shorter than one year.
|
|
22.5.
|
Gain contingencies
|
|
22.6.
|
Investment in other companies
|
|
22.7.
|
Vacation expense
|
|
22.8.
|
Items in process of collection
|
|
22.9.
|
Forward and unsettled spot transactions
|
|
22.10.
|
Technical Valuation – Inflation adjustments
|
|
22.11.
|
Acceptances
|
|
22.12.
|
Technical commitments related to insurance activities
|
|
22.13.
|
Fair Value of Financial Instruments
|
|
(i)
|
The ASC 820-10, Fair Value Measurement and Disclosures: Overall, defines that fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Such standard also establishes a scheme for determining fair values. In accordance with this pronouncement, BBVA Francés has categorized its financial instruments based on the priority of the inputs to the valuation technique, into same of the three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.
|
Level 1
|
Financial assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that BBVA Francés has the ability to access.
|
Level 2
|
They are inputs other tan quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include the following:
a) Quoted prices for similar assets or liabilities in active markets;
b) Quoted prices for identical or similar assets or liabilities in non-active markets;
c) Pricing models whose inputs are observable for substantially the full term of the asset or liability; and
d) Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability.
|
Level 3
|
Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability.
|
Fair value measurements on a recurring basis as of
December 31, 2013
|
||||||||||||||||
Description
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
Assets
|
||||||||||||||||
Government and private securities
|
1,335,358 | 2,124,609 | — | 3,459,967 | ||||||||||||
-Holding booked at fair value
|
1,090,537 | 891,894 | — | 1,982,431 | ||||||||||||
-Instruments issued by the BCRA
|
175,772 | 1,232,715 | — | 1,408,487 | ||||||||||||
-Investments in listed private securities
|
69,049 | — | — | 69,049 | ||||||||||||
Other receivables from financial transactions
|
79,311 | 3,401 | — | 82,712 | ||||||||||||
-Instruments to be received for spot and forward purchases to be settled
|
72,567 | — | — | 72,567 | ||||||||||||
-Unlisted corporate bonds
|
— | 3,401 | — | 3,401 | ||||||||||||
-Non-deliverable forward transactions balances to be settled
|
6,744 | — | — | 6,744 | ||||||||||||
Fair value measurements on a recurring basis as of
December 31, 2013
|
||||||||||||||||
Description
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
Liabilities
|
||||||||||||||||
Other liabilities from financial transactions
|
320,917 | 1,190,761 | — | 1,511,678 | ||||||||||||
-Unsubordinated corporate bonds
|
— | 1,190,761 | — | 1,190,761 | ||||||||||||
-Instruments to be delivered for spot and forward sales to be settled
|
273,672 | — | — | 273,672 | ||||||||||||
-Non-deliverable forward transactions balances to be settled
|
47,245 | — | — | 47,245 |
Fair value measurements on a recurring basis as of
December 31, 2012
|
||||||||||||||||
Description
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
Assets
|
||||||||||||||||
Government and private securities
|
979,565 | 3,122,305 | — | 4,101,870 | ||||||||||||
-Holding booked at fair value
|
895,836 | 936,243 | — | 1,832,079 | ||||||||||||
-Instruments issued by the BCRA
|
15,614 | 2,186,062 | — | 2,201,676 | ||||||||||||
-Investments in listed private securities
|
68,115 | — | — | 68,115 | ||||||||||||
Other receivables from financial transactions
|
8,852 | 15,973 | — | 24,825 | ||||||||||||
-Instruments to be received for spot and forward purchases to be settled
|
18 | — | — | 18 | ||||||||||||
-Unlisted corporate bonds
|
— | 15,973 | — | 15,973 | ||||||||||||
-Non-deliverable forward transactions balances to be settled
|
8,834 | — | — | 8,834 | ||||||||||||
Liabilities
|
||||||||||||||||
Other liabilities from financial transactions
|
1,854 | 649,993 | — | 651,847 | ||||||||||||
-Unsubordinated corporate bonds
|
— | 649,993 | — | 649,993 | ||||||||||||
-Instruments to be delivered for spot and forward sales to be settled
|
926 | — | — | 926 | ||||||||||||
-Non-deliverable forward transactions balances to be settled
|
928 | — | — | 928 |
|
(ii)
|
ASC 825-10, Financial Instruments: Overall requires disclosure of fair value information about financial instruments, whether or not recognized on the balance sheet, for which it is practicable to estimate fair value.
|
December 31,
|
||||||||||||||||
2013
|
2012
|
|||||||||||||||
Carrying
Amount (4)
|
Estimated
Fair Value
|
Carrying
Amount (4)
|
Estimated
Fair Value
|
|||||||||||||
Financial assets
|
||||||||||||||||
Cash and due from banks
|
12,881,781 | 12,881,781 | 8,614,889 | 8,614,889 | ||||||||||||
Government and private securities (1)
|
3,459,935 | 3,453,546 | 4,101,846 | 4,098,427 | ||||||||||||
Loans (2)
|
36,468,194 | 33,940,132 | 28,493,431 | 26,567,815 | ||||||||||||
Other receivables from financial transactions (3)
|
1,168,491 | 1,168,278 | 700,925 | 708,589 | ||||||||||||
Receivables from financial leases
|
1,777,778 | 1,777,778 | 1,110,234 | 1,110,234 | ||||||||||||
Investments in other companies
|
210,657 | 210,657 | 146,001 | 146,001 | ||||||||||||
56,016,836 | 53,432,172 | 43,167,326 | 41,245,955 | |||||||||||||
Financial liabilities
|
||||||||||||||||
Deposits
|
43,759,465 | 43,759,465 | 34,165,053 | 34,165,053 | ||||||||||||
Other liabilities from financial transactions (3)
|
4,943,260 | 4,439,319 | 3,285,123 | 2,878,455 | ||||||||||||
48,702,725 | 48,198,784 | 37,450,176 | 37,043,508 |
(1)
|
Includes the effect described in Note 22.4.
|
(2)
|
Includes the effects described in Notes 22.3.2., 22.3.3. and 22.3.4.
|
(3)
|
Includes the effects described in Note 22.15.
|
(4)
|
Under BCRA’s rules.
|
|
22.14.
|
Goodwill
|
|
§
|
On May 4, 1998 the General and Special Stockholder’s Meeting approved (to be effective on April 30, 1998) the reversal of the shares issuance premium in the amount of 428,661 related to the capital increase with face value 25,000 thousand paid in on December 19, 1997, and bearing up to 428,661 of the Business Goodwill from the acquisition of 71.754% of the capital stock of Banco de Crédito Argentino S.A. The mentioned reversal is not allowed in accordance with US. GAAP. Under US. GAAP, the Bank should recognize the issuance premium under “Issuance premiums” and capitalize the related amount under Intangible Assets.
|
|
§
|
On May 13, 1999, BBVA (majority owner of BBVA Francés) acquired Corp Banca and Atuel Fideicomisos S.A. and on September, 13, 1999, BBVA sold its interests in both companies to BBVA Francés. For the difference between the definitive price of the transaction and the incorporation value of both companies, the Bank recognized goodwill and amortized it in proportion to the months of estimated useful life (120-month period). Under U.S. GAAP, the Bank would be required to account for the acquisition of the mentioned companies at BBVA’s book balance. Had U.S. GAAP been applied over continued operations, the Bank’s assets would have increased by 54,695 at December 31, 2013, 2012 and 2011.
|
|
§
|
ASC 350-20, Intangibles-Goodwill and Other: Goodwill requires that goodwill is no longer amortized, but is subject to impairment test annually or more frequently if events or changes in circumstances indicate that the asset may be impaired. In 2001 the Bank had recognized an impairment loss and wrote off the entire balance of the U.S. GAAP goodwill. Had U.S. GAAP been applied over continued operations, the Bank’s assets would have decreased by 309,577 as of December 31, 2013, 2012 and 2011.
|
|
22.15.
|
Accounting for Derivative Instruments and Hedging Activities
|
|
22.16.
|
Allowance for other contingencies
|
|
22.17.
|
Premises and equipment
|
|
22.18.
|
Non-controlling interests in consolidated subsidiaries
|
|
22.19.
|
Set forth below are the significant adjustments to consolidated net income and consolidated stockholders’ equity which would have been required if U.S. GAAP had been applied instead of BCRA’s rules:
|
Consolidated Net Income December 31,
|
||||||||||||||||||||||||||||||||||||||||
Ref
|
2013
|
2012
|
2011
|
|||||||||||||||||||||||||||||||||||||
Continued operations
|
Discontinued operations
|
Total
|
Continued operations
|
Discontinued operations
|
Total
|
Continued operations
|
Discontinued operations
|
Total
|
||||||||||||||||||||||||||||||||
Net income as stated
|
2,024,945 | (701 | ) | 2,024,244 | 1,265,640 | (1,961 | ) | 1,263,679 | 946,899 | 58,678 | 1,005,577 | |||||||||||||||||||||||||||||
Deferred taxes
|
22.1 | (33,161 | ) | (345 | ) | (33,506 | ) | (9,609 | ) | (2,310 | ) | (11,919 | ) | 94,986 | 61,828 | 156,814 | ||||||||||||||||||||||||
Allowances on deferred tax assets
|
22.1 | (25,800 | ) | — | (25,800 | ) | 147,300 | — | 147,300 | (156,109 | ) | — | (156,109 | ) | ||||||||||||||||||||||||||
Loan origination and issuance credit card’s fees
|
22.2 | (90,728 | ) | — | (90,728 | ) | (36,119 | ) | — | (36,119 | ) | (30,531 | ) | — | (30,531 | ) | ||||||||||||||||||||||||
Impaired loans-Non Financial Private Sector and residents abroad loans
|
22.3.2 | 109,428 | — | 109,428 | 17,038 | — | 17,038 | (34,600 | ) | — | (34,600 | ) | ||||||||||||||||||||||||||||
Federal Government secured loans
|
22.3.3 | — | — | — | — | — | — | — | 78,028 | 78,028 | ||||||||||||||||||||||||||||||
Argentine Government Notes
|
22.3.4 | — | — | — | — | — | — | — | 21,644 | 21,644 | ||||||||||||||||||||||||||||||
Government and other debt securities valuation
|
22.4 | 147,934 | — | 147,934 | 16,135 | — | 16,135 | 213,026 | 101,585 | 314,611 | ||||||||||||||||||||||||||||||
Gain contingencies
|
22.5 | (1,263 | ) | — | (1,263 | ) | (6,101 | ) | — | (6,101 | ) | (207 | ) | — | (207 | ) | ||||||||||||||||||||||||
Investment in other companies
|
22.6 | (11,512 | ) | — | (11,512 | ) | 13,723 | — | 13,723 | (8,091 | ) | — | (8,091 | ) | ||||||||||||||||||||||||||
Vacation expense
|
22.7 | (35 | ) | — | (35 | ) | 36,293 | — | 36,293 | (36,350 | ) | — | (36,350 | ) | ||||||||||||||||||||||||||
Technical Commitments related to insurance activities
|
22.12 | — | — | — | — | — | — | — | (267,939 | ) | (267,939 | ) | ||||||||||||||||||||||||||||
Accounting for Derivative Instruments and Hedging Activities
|
22.15 | (23,554 | ) | — | (23,554 | ) | 17,294 | — | 17,294 | (13,887 | ) | — | (13,887 | ) | ||||||||||||||||||||||||||
Allowance for other contingencies
|
22.16 | — | — | — | — | — | — | (34,772 | ) | — | (34,772 | ) | ||||||||||||||||||||||||||||
Premises and equipment
|
22.17 | — | — | — | 48,619 | — | 48,619 | (10,704 | ) | — | (10,704 | ) | ||||||||||||||||||||||||||||
Non-controlling interests in consolidated subsidiaries
|
22.18 | 83,935 | (599 | ) | 83,336 | 36,841 | (1,679 | ) | 35,162 | 8,067 | (292,744 | ) | (284,677 | ) | ||||||||||||||||||||||||||
Net income in accordance with U.S. GAAP
|
2,180,189 | (1,645 | ) | 2,178,544 | 1,547,054 | (5,950 | ) | 1,541,104 | 937,727 | (238,920 | ) | 698,807 | ||||||||||||||||||||||||||||
Net income per share in accordance with U.S. GAAP attributable to controlling interests
|
3.90 | 0.00 | 3.90 | 2.81 | 0.00 | 2.81 | 1.73 | 0.10 | 1.83 | |||||||||||||||||||||||||||||||
Net income per share in accordance with U.S. GAAP attributable to non-controlling interests
|
4.06 | 0.00 | 4.06 | 2.88 | (0.01 | ) | 2.87 | 1.75 | (0.45 | ) | 1.30 | |||||||||||||||||||||||||||||
Weighted average number of shares outstanding (in thousands)
|
536,878 | 536,878 | 536,878 | 536,878 | 536,878 | 536,878 | 536,620 | 536,620 | 536,620 |
Consolidated Stockholders’ Equity December 31,
|
||||||||||||||||||||||||||||||||||||||||
Ref
|
2013
|
2012
|
2011
|
|||||||||||||||||||||||||||||||||||||
Continued operations
|
Discontinued operations
|
Total
|
Continued operations
|
Discontinued operations
|
Total
|
Continued operations
|
Discontinued operations
|
Total
|
||||||||||||||||||||||||||||||||
Stockholders’ equity as stated
|
7,147,908 | 8,272 | 7,156,180 | 5,122,963 | 8,973 | 5,131,936 | 3,857,323 | 10,934 | 3,868,257 | |||||||||||||||||||||||||||||||
Deferred taxes
|
22.1 | 34,574 | 17,088 | 51,662 | 14,501 | 17,433 | 31,934 | 19,300 | 19,743 | 39,043 | ||||||||||||||||||||||||||||||
Allowances on deferred tax assets
|
22.1 | 231,100 | — | 231,100 | 256,900 | — | 256,900 | 109,600 | — | 109,600 | ||||||||||||||||||||||||||||||
Loan origination and issuance credit card’s fees
|
22.2 | (235,356 | ) | — | (235,356 | ) | (144,628 | ) | — | (144,628 | ) | (108,509 | ) | — | (108,509 | ) | ||||||||||||||||||||||||
Impaired loans-Non Financial Private Sector and residents abroad loans
|
22.3.2 | 307,398 | — | 307,398 | 197,970 | — | 197,970 | 180,932 | — | 180,932 | ||||||||||||||||||||||||||||||
Government and other debt securities valuation
|
22.4 | (7,524 | ) | — | (7,524 | ) | (3,360 | ) | — | (3,360 | ) | (5,752 | ) | — | (5,752 | ) | ||||||||||||||||||||||||
Gain contingencies
|
22.5 | (31,034 | ) | — | (31,034 | ) | (29,771 | ) | — | (29,771 | ) | (23,670 | ) | — | (23,670 | ) | ||||||||||||||||||||||||
Investment in other companies
|
22.6 | (49,679 | ) | — | (49,679 | ) | (38,167 | ) | — | (38,167 | ) | (51,890 | ) | — | (51,890 | ) | ||||||||||||||||||||||||
Vacation expense
|
22.7 | (424 | ) | — | (424 | ) | (389 | ) | — | (389 | ) | (36,682 | ) | — | (36,682 | ) | ||||||||||||||||||||||||
Accounting for Derivative Instruments and Hedging Activities
|
22.15 | (17,553 | ) | — | (17,553 | ) | 6,001 | — | 6,001 | (11,293 | ) | — | (11,293 | ) | ||||||||||||||||||||||||||
Premises and equipment
|
22.17 | — | — | — | — | — | — | (48,619 | ) | — | (48,619 | ) | ||||||||||||||||||||||||||||
Non-controlling interests in consolidated subsidiaries
|
22.18 | 203,443 | 7,078 | 210,521 | 119,508 | 7,677 | 127,185 | 82,667 | 9,356 | 92,023 | ||||||||||||||||||||||||||||||
Consolidated Stockholders’ equity in accordance with U.S. GAAP
|
7,582,853 | 32,438 | 7,615,291 | 5,501,528 | 34,083 | 5,535,611 | 3,963,407 | 40,033 | 4,003,440 | |||||||||||||||||||||||||||||||
December 31,
|
||||||||||||
2013
|
2012
|
2011
|
||||||||||
Assets
|
61,316,755 | 47,552,013 | 40,367,604 | |||||||||
Liabilities
|
53,701,464 | 42,016,402 | 36,364,164 |
|
22.20.
|
The following presents the consolidated statement of operations adjusted to reflect the application of U.S. GAAP using the BCRA’s format:
|
Consolidated Net Income December 31,
|
||||||||||||||||||||||||||||||||||||
2013
|
2012
|
2011
|
||||||||||||||||||||||||||||||||||
Continued operations
|
Discontinued operations
|
Total
|
Continued operations
|
Discontinued operations
|
Total
|
Continued operations
|
Discontinued operations
|
Total
|
||||||||||||||||||||||||||||
Financial income
|
8,383,213 | 8,130 | 8,391,343 | 5,721,328 | 9,728 | 5,731,056 | 3,535,265 | 83,301 | 3,618,566 | |||||||||||||||||||||||||||
Financial expenses
|
(3,269,636 | ) | 3,042 | (3,266,594 | ) | (2,044,983 | ) | 3,260 | (2,041,723 | ) | (1,369,585 | ) | 10,295 | (1,359,290 | ) | |||||||||||||||||||||
Allowances for doubtful loans
|
(326,185 | ) | — | (326,185 | ) | (239,221 | ) | — | (239,221 | ) | (188,907 | ) | 21,644 | (167,263 | ) | |||||||||||||||||||||
Service charge income
|
3,363,632 | — | 3,363,632 | 2,494,334 | — | 2,494,334 | 1,931,600 | (135 | ) | 1,931,465 | ||||||||||||||||||||||||||
Service charge expenses
|
(955,329 | ) | — | (955,329 | ) | (683,730 | ) | — | (683,730 | ) | (519,630 | ) | (5 | ) | (519,635 | ) | ||||||||||||||||||||
Operating expenses
|
(3,882,015 | ) | (18,497 | ) | (3,900,512 | ) | (2,954,755 | ) | (21,977 | ) | (2,976,732 | ) | (2,326,630 | ) | (63,700 | ) | (2,390,330 | ) | ||||||||||||||||||
Loss on minority interest in subsidiaries
|
— | — | — | (323 | ) | — | (323 | ) | 202,444 | (307,989 | ) | (105,545 | ) | |||||||||||||||||||||||
Other income
|
317,095 | 7,124 | 324,219 | 269,139 | 5,400 | 274,539 | 267,207 | 156,700 | 423,907 | |||||||||||||||||||||||||||
Other expenses
|
(271,207 | ) | (57 | ) | (271,264 | ) | (287,801 | ) | — | (287,801 | ) | (186,331 | ) | (198,493 | ) | (384,824 | ) | |||||||||||||||||||
Income before income tax
|
3,359,568 | (258 | ) | 3,359,310 | 2,273,988 | (3,589 | ) | 2,270,399 | 1,345,433 | (298,382 | ) | 1,047,051 | ||||||||||||||||||||||||
Income Tax
|
(1,179,379 | ) | (1,387 | ) | (1,180,766 | ) | (726,934 | ) | (2,361 | ) | (729,295 | ) | (407,706 | ) | 59,462 | (348,244 | ) | |||||||||||||||||||
Total consolidated income
|
2,180,189 | (1,645 | ) | 2,178,544 | 1,547,054 | (5,950 | ) | 1,541,104 | 937,727 | (238,920 | ) | 698,807 | ||||||||||||||||||||||||
Comprehensive income
|
||||||||||||||||||||||||||||||||||||
Net income in accordance with U.S. GAAP
|
2,178,544 | 1,541,104 | 698,807 | |||||||||||||||||||||||||||||||||
Other comprehensive (loss) / income, net of tax (1) (2)
|
(98,864 | ) | (8,933 | ) | (399,335 | ) | ||||||||||||||||||||||||||||||
Comprehensive net income in accordance with U.S. GAAP
|
2,079,680 | 1,532,171 | 299,472 |
|
22.21.
|
Set forth below are the related tax effects allocated to each component of other comprehensive income (loss) and the accumulated other comprehensive income (loss) balances, as of December 31, 2013, 2012 and 2011:
|
December 31, 2013
|
December 31, 2012
|
December 31, 2011
|
||||||||||||||||||||||||||||||||||
Before Tax
Amount
|
Tax
(Expense)
or Benefit
|
Net of Tax Amount
|
Before Tax
Amount
|
Tax
(Expense)
or Benefit
|
Net of Tax Amount
|
Before Tax
Amount
|
Tax
(Expense)
or Benefit
|
Net of Tax Amount
|
||||||||||||||||||||||||||||
Unrealized (losses)/gains on securities
|
(152,098 | ) | 53,234 | (98,864 | ) | (13,743 | ) | 4,810 | (8,933 | ) | (614,361 | ) | 215,026 | (399,335 | ) | |||||||||||||||||||||
Other comprehensive income (loss)/gain
|
(152,098 | ) | 53,234 | (98,864 | ) | (13,743 | ) | 4,810 | (8,933 | ) | (614,361 | ) | 215,026 | (399,335 | ) | |||||||||||||||||||||
December 31, 2013
|
December 31, 2012
|
December 31, 2011
|
||||||||||||||||||||||||||||||||||
Foreign Currency
Items
|
Unrealized
Gains/
(Losses) on securities
|
Accumulated Other Comprehensive Income/(Loss)
|
Foreign Currency
Items
|
Unrealized
Gains/
(Losses) on securities
|
Accumulated Other Comprehensive Income/(Loss)
|
Foreign Currency
Items
|
Unrealized
Gains/
(Losses) on securities
|
Accumulated Other Comprehensive Income/(Loss)
|
||||||||||||||||||||||||||||
Beginning balance
|
— | (80,307 | ) | (80,307 | ) | — | (71,374 | ) | (71,374 | ) | — | 327,961 | 327,961 | |||||||||||||||||||||||
Current-fiscal year change
|
— | (98,864 | ) | (98,864 | ) | — | (8,933 | ) | (8,933 | ) | — | (399,335 | ) | (399,335 | ) | |||||||||||||||||||||
Ending balance
|
— | (179,171 | ) | (179,171 | ) | — | (80,307 | ) | (80,307 | ) | — | (71,374 | ) | (71,374 | ) | |||||||||||||||||||||
|
22.22.
|
Cash flows information
|
December 31,
|
||||||||||||
2013
|
2012
|
2011
|
||||||||||
Cash and cash equivalents at the end of the fiscal year
|
12,880,744 | 8,613,997 | 6,353,428 | |||||||||
Cash and cash equivalents at beginning of the fiscal year
|
8,613,997 | 6,353,428 | 5,691,806 | |||||||||
Increase in cash and cash equivalents
|
4,266,747 | 2,260,569 | 661,622 | |||||||||
CAUSES OF CHANGES IN CASH AND CASH EQUIVALENTS
|
||||||||||||
Cash provided by operating activities
|
5,974,322 | 3,534,123 | 4,485,799 | |||||||||
Cash used in investing activities
|
(353,882 | ) | (619,624 | ) | (341,372 | ) | ||||||
Cash used in financing activities
|
(545,136 | ) | (581,581 | ) | (3,444,234 | ) | ||||||
Effect of exchange rate changes on cash
|
(808,557 | ) | (72,349 | ) | (38,571 | ) | ||||||
Increase in cash and cash equivalents
|
4,266,747 | 2,260,569 | 661,622 | |||||||||
December 31,
|
||||||||||||
2013
|
2012
|
2011
|
||||||||||
CAUSES OF CHANGES IN CASH AND CASH EQUIVALENTS OVER CONTINUED OPERATIONS
|
||||||||||||
Cash provided by operating activities
|
5,954,398 | 3,502,355 | 1,238,259 | |||||||||
Cash used by investing activities
|
(355,190 | ) | (607,683 | ) | (214,259 | ) | ||||||
Cash used in financing activities
|
(537,019 | ) | (566,414 | ) | (325,488 | ) | ||||||
Effect of exchange rate changes on cash
|
(795,199 | ) | (67,741 | ) | (36,115 | ) | ||||||
Increase in cash and cash equivalents
|
4,266,990 | 2,260,517 | 662,397 | |||||||||
December 31, 2013
|
|||||||||||||||||||||||||||||||||||||
BCRA GAAP
|
Adjustments
|
US GAAP
|
|||||||||||||||||||||||||||||||||||
Cont
|
Disc
|
Total
|
Cont
|
Disc
|
Total
|
Cont
|
Disc
|
Total
|
|||||||||||||||||||||||||||||
Net income attributable to the controlling interest
|
2,079,958 | (1,300 | ) | 2,078,658 | 71,309 | (345 | ) | 70,964 | 2,151,267 | (1,645 | ) | 2,149,622 | |||||||||||||||||||||||||
Adjustments to reconcile net income to net cash from operating activities:
|
|||||||||||||||||||||||||||||||||||||
Amortization and depreciation
|
150,158 | — | 150,158 | — | — | — | 150,158 | — | 150,158 | ||||||||||||||||||||||||||||
Allowances for doubtful loans and special reserves, net of reversals
|
112,582 | — | 112,582 | (109,428 | ) | — | (109,428 | ) | (1) | 3,154 | — | 3,154 | |||||||||||||||||||||||||
Income tax
|
1,120,418 | 1,042 | 1,121,460 | 58,961 | 345 | 59,306 | (2) | 1,179,379 | 1,387 | 1,180,766 | |||||||||||||||||||||||||||
Equity loss / (gains) of unconsolidated subsidiaries
|
33,692 | — | 33,692 | 11,512 | — | 11,512 | (3) | 45,204 | — | 45,204 | |||||||||||||||||||||||||||
Net decrease / (increase) in interest receivable and payable and other accrued income and expenses
|
2,457,590 | 20,182 | 2477,772 | (32,354 | ) | — | (32,354 | ) | (4) | 2,425,236 | 20,182 | 2,445,418 | |||||||||||||||||||||||||
Net cash provided by operating activities
|
5,954,398 | 19,924 | 5,974,322 | 5,954,398 | 19,924 | 5,974,322 |
(1)
|
Adjustment to Note 22.3.2
|
(2)
|
Adjustment to Note 22.1
|
(3)
|
Adjustment to Note 22.6
|
(4)
|
Others
|
December 31, 2012
|
|||||||||||||||||||||||||||||||||||||
BCRA GAAP
|
Adjustments
|
US GAAP
|
|||||||||||||||||||||||||||||||||||
Cont
|
Disc
|
Total
|
Cont
|
Disc
|
Total
|
Cont
|
Disc
|
Total
|
|||||||||||||||||||||||||||||
Net income attributable to the controlling interest
|
1,303,514 | (3,640 | ) | 1,299,874 | 217,944 | (3,690 | ) | 214,254 | 1,521,458 | (7,330 | ) | 1,514,128 | |||||||||||||||||||||||||
Adjustments to reconcile net income to net cash from operating activities:
|
|||||||||||||||||||||||||||||||||||||
Amortization and depreciation
|
127,933 | — | 127,933 | (3,025 | ) | — | (3,025 | ) | (1) | 124,908 | — | 124,908 | |||||||||||||||||||||||||
Allowances for doubtful loans and special reserves, net of reversals
|
340,109 | — | 340,109 | (17,038 | ) | — | (17,038 | ) | (2) | 323,071 | — | 323,071 | |||||||||||||||||||||||||
Income tax and TOMPI
|
864,625 | 51 | 864,676 | (111,062 | ) | 3,690 | (107,372 | ) | (3) | 753,563 | 3,741 | 757,304 | |||||||||||||||||||||||||
Equity loss / (gains) of unconsolidated subsidiaries
|
37,264 | — | 37,264 | (13,723 | ) | — | (13,723 | ) | (4) | 23,541 | — | 23,541 | |||||||||||||||||||||||||
Net decrease / (increase) in interest receivable and payable and other accrued income and expenses
|
828,910 | 35,357 | 864,267 | (73,096 | ) | — | (73,096 | ) | (5) | 755,814 | 35,357 | 791,171 | |||||||||||||||||||||||||
Net cash provided by operating activities
|
3,502,355 | 31,768 | 3,534,123 | 3,502,355 | 31,768 | 3,534,123 |
(1)
|
Adjustment to Note 22.17 (portion corresponding to amortization)
|
(2)
|
Adjustment to Note 22.3.2
|
(3)
|
Adjustment to Note 22.1
|
(4)
|
Adjustment to Note 22.6
|
(5)
|
Others
|
December 31, 2011
|
|||||||||||||||||||||||||||||||||||||
BCRA GAAP
|
Adjustments
|
US GAAP
|
|||||||||||||||||||||||||||||||||||
Cont
|
Disc
|
Total
|
Cont
|
Disc
|
Total
|
Cont
|
Disc
|
Total
|
|||||||||||||||||||||||||||||
Net income attributable to the controlling interest
|
940,116 | 73,923 | 1,014,039 | (17,239 | ) | (4,854 | ) | (22,093 | ) | 922,877 | 69,069 | 991,946 | |||||||||||||||||||||||||
Adjustments to reconcile net income to net cash from operating activities:
|
|||||||||||||||||||||||||||||||||||||
Amortization and depreciation
|
93,643 | 733 | 94,376 | 20,608 | — | 20,608 | (1) | 114,251 | 733 | 114,984 | |||||||||||||||||||||||||||
Allowances for doubtful loans and special reserves, net of reversals
|
112,513 | — | 112,513 | 34,600 | — | 34,600 | (2) | 147,113 | — | 147,113 | |||||||||||||||||||||||||||
Income tax and TOMPI
|
549,992 | 2,366 | 552,358 | 61,123 | (61,828 | ) | (705 | ) | (3) | 611,115 | (59,462 | ) | 551,653 | ||||||||||||||||||||||||
Equity loss / (gains) of unconsolidated subsidiaries
|
29,764 | (21,270 | ) | 8,494 | 8,091 | — | 8,091 | (4) | 37,855 | (21,270 | ) | 16,585 | |||||||||||||||||||||||||
Net decrease / (increase) in interest receivable and payable and other accrued income and expenses
|
(487,769 | ) | 3,191,788 | 2,704,019 | (107,183 | ) | 66,682 | (40,501 | ) | (5) | (594,952 | ) | 3,258,470 | 2,663,518 | |||||||||||||||||||||||
Net cash provided by operating activities
|
1,238,259 | 3,247,540 | 4,485,799 | 1,238,259 | 3,247,540 | 4,485,799 |
(1)
|
Adjustment to Note 22.17 (portion corresponding to amortization)
|
(2)
|
Adjustment to Note 22.3.2
|
(3)
|
Adjustment to Note 22.1
|
(4)
|
Adjustment to Note 22.6
|
(5)
|
Others
|
|
22.23.
|
New accounting pronouncements (U.S. GAAP)
|
|
a)
|
ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income
|
|
b)
|
ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists
|
|
c)
|
ASU 2014-02, Accounting for Goodwill (a consensus of the Private Company Council)
|
NOTE 23—SUBSEQUENT EVENTS
|
Exhibit
Number
|
Description
|
1.1
|
Amended and Restated By-Laws (Estatutos) of BBVA Francés*
|
1.2
|
English translation of the Amended and Restated By-Laws (Estatutos) of BBVA Francés*
|
8.1
|
Subsidiaries of the Company
|
12.1
|
Section 302 Certification of Chief Executive Officer
|
12.2
|
Section 302 Certification of Chief Financial Officer
|
13.1
|
Section 906 Certification pursuant to 18 U.S.C. Section 1350
|
(*)
|
Incorporated by reference in the BBVA Banco Francés Annual Report on Form 20-F for the year ended December 31, 2012 filed with the Securities and Exchange Commission on April 10, 2013.
|