FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of August 2004
Commission File Number: 001-12568
BBVA French Bank S.A.
(Translation of registrants name into English)
Reconquista 199, 1006
Buenos Aires, Argentina
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F X Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes No X
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes No X
Indicate by check mark whether by furnishing the information contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
Yes No X
If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A
TABLE OF CONTENTS
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1. |
Press release entitles BBVA Banco Franés reports second quarter earnings for fiscal year 2004 | 1 |
Buenos Aires, February 5, 2004
To: | Buenos Aires Stock Exchange |
Securities Exchange Commission
Mercado Abierto Electrónico S.A.
Re: Acquisition of Shares of Francés Administradora de Inversiones S.A.
We hereby inform that on February 4, 2004, BBVA Banco Francés S.A. acquired from Banco Francés (Cayman) Ltd. 5% of the capital stock of Francés Administradora de Inversiones S.A. (FADISA), represented by 5,000 shares, with a par value of one Argentine Peso per share, for the amount of five hundred eighty thousand Argentine Pesos (Ps. 580,000).
CONTACT:
María Elena Siburu de López Oliva |
Investor Relations Manager |
Phone: (5411) 4341 5035 |
E-mail: mesiburu@bancofrances.com.ar |
María Adriana Arbelbide |
Investor Relations |
Phone: (5411) 4341 5036 |
E-mail: marbelbide@bancofrances.com.ar |
August 11, 2004
BBVA BANCO FRANCES (NYSE; BFR.N; BCBA:FRA.BA; LATIBEX: BFR.LA) REPORTS CONSOLIDATED SECOND QUARTER EARNINGS FOR FISCAL YEAR 2004
Executive summary
| The second quarter of fiscal year 2004 brought a strong improvement in the operating income of BBVA Banco Francés, which grew from a Ps.142.6 million loss and a Ps.10.3 million gain registered in the June 2003 and March 2004 quarter, respectively, to a Ps.106.2 million gain as of the present quarter. Higher Net financial income was led by the consolidation of a positive spread combined with an increasing intermediation volume, as private sector loan portfolio continued to recover during the present quarter- with personal loans and credit cards growing 15%, in the retail segment, and advances and notes discounted growing 98% and 52%, respectively, in the corporate segment. |
| Strong fee income and lower expenses also contributed to the improvement in the operating income, which in turn benefited from a lower loan loss provision charge. Efficiency continued its positive trend, moving from a 53.3% ratio as of the previous quarter to 59.1% as of the June 2004 quarter, reinforcing the Banks commitment towards it. |
| On the back of its business model and its solid image, BBVA Banco Francés maintains its leading position among private sector banks measured by deposits, with a 10.2% market share in private sector deposits as of June 30, 2004. |
| Asset quality steadily improved since the beginning of the crisis, to reach a 2.16% non-performing ratio, on considering total financing, with a 83.39% coverage ratio. |
| BBVA Banco Francés reduced 5% (Ps.405 million) its Public sector exposure, during the second quarter of 2004. |
| As of June 30, 2004 BBVA Banco Francés had Ps.1,298 million in total networth with an excess of Ps.884 over minimum capital requirements in accordance with Central Banks regulations. Furthermore, the Bank is currently the process of a capital increase of up to Ps.385 million, as approved by the Shareholders Meeting held last April. |
- 1 -
Second quarter of fiscal year 2004
Economic activity slowed down in the second quarter of 2004. Both industrial production and construction contracted in seasonally adjusted terms in April and resumed growth in the subsequent months at a slower pace than in the first quarter. Thus, in seasonally adjusted terms manufacturing activity fell by 1.3% compared to the first quarter while construction grew only 0.9% vis-à-vis a healthier rithm of 4% in the first period.
In spite of lower growth, tax revenues exceeded all previous records in May, when Income Tax falls due for most corporations and individuals, with Ps.12.6 billion in collections. Fiscal revenues also benefited from increasing VAT revenues while export taxes remained high as soybean prices only begun to fall in July. As expenditure increases continued to lag behind, the primary fiscal surplus rose to Ps.7.86 billion or 1.8% of GDP in the second quarter of 2004. In the first half of the year, the accumulated primary surplus exceeds the target agreed on with the IMF for the full year by 18%.
The energy shortage had a relatively low impact on inflation as public services prices for consumers remained unchanged. However, food and beverage, cigarettes and other private services prices continued to adjust and the CPI index rose 2.2% in the second quarter compared to a milder 1.1% in the first quarter. On an annualized basis, inflation remains within the 7-11% range targeted by the Central Bank.
Interest rates did not reflect the upward trend in inflation expectations and remained on average at 2.4% p.a. for a 30 day CD. Total deposits, both peso and dollar denominated, increased strongly (10.8%) over March 2004. Private sector deposits, however, remained practically unchanged as deposits flowed into government accounts in public banks due to the heavy tax deadlines of the second quarter and the increased fiscal solvency. On the other hand, credit to the private sector grew strongly for the first time in five years during this period and between June and March total loans increased 8.7%. Growth in the consumer segment (3.8% during the period) was led by personal loans and credit card financing, while mortgages continued to contract. Once again, increases were stronger in the corporate and middle market segments (15%).
Partially due to FX volatility in Brazil and in spite of seasonally high exports, the Argentine peso depreciated slightly from a Ps. 2.86/U$S monthly average in March to Ps. 2.96/U$S average in June (BCRA reference rate). The Central Bank continued to intervene heavily in the FX market purchasing U$S 2,465 million from the private sector in the second quarter. The Monetary Base expanded only by Ps.2,996 million since the public sector and the banking sector (cancelling rediscounts and in the newly created repo market) continued to act as contractionary factors.
The Business:
BBVA Banco Francés is one of the leading private banks in Argentina, ranking first in deposits and third in assets in the financial system, with aproximately Ps.8.3 billion and Ps.13.3 billion, respectively as of June 2004. Banco Francés strong corporate culture, with its customers and its team of professionals as cornerstones, enhances the Banks franchise differentiation.
During 2002 and 2003 the Bank focused its commercial activity in transactional business as an alternative source of income and gradually resumed lending activity by the end of last fiscal year. During the last 12 month period, financing returned through overdrafts, personal loans and credit card financing in the retail segment and through short-term financing including the one-year term such as notes discounted, working capital financing, investment-banking products - such as trustees and some longer term transactions in the corporate segment. Net private loan portfolio grew Ps.182.2 million in the last semester of present fiscal year.
The Bank keeps improving efficiency targeting higher fee revenues and lower costs for 2004 and faces the challenge of reestablishing Net Financial Income as the most important source of income on the back of rebuilding its private sector loan portfolio.
- 2 -
Presentation of Financial Information
It is important to note that:
| All foreign currency transactions accounted for at a free exchange rate as of June 30 have been translated into pesos at the exchange rate reference of Ps. 2.9607 = US$ 1.00 published by the Central Bank on that date. |
| This press release contains non-audited information that consolidates only the banking activities on a line-by-line basis. The Banks interest in the Consolidar Group is accounted for by the equity method; BBVA Banco Francés stake in the Consolidar Group and the Consolidar Groups results are included in Investments in other companies and Income from equity investmens, respectively. |
| For the sake of comparison, page 16 of this press release contains the balance sheet of BBVA Banco Francés including Banco Francés Cayman - which was sold in March 2004 - by the equity method for the previous quarters. |
SECOND QUARTER EARNINGS
Condensed Income Statement (1)
|
Quarter ended |
% Change Qtr ended 06/30/04 vs. Qtr ended |
|||||||||||||
in thousands of pesos except income per share, income |
06/30/04 |
03/31/04 |
06/30/03 |
03/31/04 |
06/30/03 |
||||||||||
Net Financial Income |
156,491 | 88,269 | (48,755 | ) | 77.29 | % | -420.97 | % | |||||||
Provision for loan losses |
(1,671 | ) | (18,753 | ) | (15,534 | ) | -91.09 | % | -89.24 | % | |||||
Net income from services |
70,336 | 67,467 | 55,976 | 4.25 | % | 25.65 | % | ||||||||
Administrative expenses |
(118,926 | ) | (126,676 | ) | (134,327 | ) | -6.12 | % | -11.47 | % | |||||
Operating income |
106,230 | 10,307 | (142,640 | ) | 930.66 | % | 174.47 | % | |||||||
Income (loss) from equity investments |
8,197 | 19,082 | 2,658 | 57.04 | % | 208.39 | % | ||||||||
Income (Loss) from Minority interest |
129 | 736 | 631 | -82.47 | % | -79.56 | % | ||||||||
Other income/expenses |
(117,238 | ) | 127,893 | 265,564 | -191.67 | % | -144.15 | % | |||||||
Income tax |
(11,514 | ) | (188,351 | ) | (133,435 | ) | -93.89 | % | -91.37 | % | |||||
Net income for the period |
(14,196 | ) | (30,333 | ) | (7,222 | ) | -53.20 | % | 96.57 | % | |||||
Net income per share (2) |
-0.04 | -0.08 | -0.03 | -53.20 | % | 96.57 | % | ||||||||
Net income per ADS (3) |
-0.12 | -0.25 | -0.10 | -53.20 | % | 96.57 | % |
(1) | Exchange rate: 2.9607 Ps. = 1 US$ |
(2) | Assumes 368,128,432 ordinary shares outstanding. |
(3) | Each ADS represents three ordinary shares. |
The strong recovery in the Operating income was mainly driven by a higher Net financial income. Furthermore, during the present quarter, the Operating income also benefited from an improvement in efficiency, derived from a 4.3% growth in Net income from services 25.7% compared to the same quarter of the previous fiscal year and a 6.1% reduction in Administrative expenses 11.5% as compared to June 2003.
Other income/expenses for the second quarter of fiscal year 2004 reflected a Ps.117.2 million loss, against a Ps.127.9 million gain and a Ps.265.6 million gain registered during the March 2004 and June 2003 quarters, respectively, mainly due to extraordinary gains registered during the previous quarters. Net income for the quarter ended June 30, 2004, accounted for a Ps.14.2 million loss, compared to a Ps.30.3 million loss registered in the previous quarter.
- 3 -
Quarter ended |
% Change Qtr ended 06/30/04 vs. Qtr ended |
||||||||||||||
in thousands of pesos except percentages |
06/30/04 |
03/31/04 |
06/30/03 |
03/31/04 |
06/30/03 |
||||||||||
Return on Average Assets (1) |
-0.42 | % | -0.84 | % | -0.19 | % | 49.98 | % | -119.62 | % | |||||
Return on Average Shareholders´Equity (1) |
-4.20 | % | -7.68 | % | -1.55 | % | 45.38 | % | -171.47 | % | |||||
Net fee Income as a % of Operating Income |
31.01 | % | 43.32 | % | 775.18 | % | -28.42 | % | -96.00 | % | |||||
Net fee Income as a % of Administrative Expenses |
59.14 | % | 53.26 | % | 41.67 | % | 11.05 | % | 41.93 | % | |||||
Adm. Expenses as a % of Operating Income (2) |
52.43 | % | 81.34 | % | 1860.23 | % | -35.54 | % | -97.18 | % |
(1) | Annualized |
(2) | Adm.Expenses / Net financial income + Net income from services |
Net financial Income
As indicated above, Net Financial income continued to improve during the quarter. The effective pricing policy implemented by the Bank, which successfully maintained a decreasing cost of funds in fixed rate deposits positively impacted the overall spread, given the increase in the CER index (mainly CPI). It is important to bear in mind that the structural term and rate mismatch in assets and liabilities of the financial system and of BBVA Banco Francés, following measures taken by the Government during 2002 and 2003, brought about a strong dependence on the relative behavior of the consumer price index, or CPI, vis-à-vis interest rates. While a significant part of the Banks risk assets accrue interest at a variable interest rate, adjusted by CER plus an interest rate, most liabilities accrue interest at a fixed rate, except for certain discount loans granted to BBVA Banco Francés by the Central Bank, the remaining portfolio of rescheduled deposits, known as CEDROS and the new CER adjusted deposits. During the June 2004 quarter the long CER adjusted position accrued interest at an 8.32% annual adjustment rate (CER) plus an average 3.5% fixed interest rate (totaling approx. 12%), while the funding cost of fixed rate deposits averaged 1.8%. We should note that such spread has shown a steady improvement during the last quarters, from a 3.3% accumulated CER adjustment, with an average 2.9% cost of funds in December 2003, to a 3.02% CER adjustment and an average 2.2% cost of funds during the March 2004 quarter.
Public Sector Exposure
During the present quarter BBVA Banco Frances reduced 5 % (Ps. 405 million) its Public sector exposure. Total exposure to Public sector as of June 2004 - including loans and bonds - amounted to approximately Ps. 7,713 million.
- 4 -
Quarter ended |
% Change Qtr ended 06/30/04 vs. Qtr ended |
|||||||||||
in thousands of pesos except percentages |
30/06/04 |
31/03/04 |
30/06/03 |
31/03/04 |
30/06/03 |
|||||||
- Loans to the Federal government & Provinces |
6,057,751 | 6,020,123 | 6,696,668 | 0.63 | % | -9.54 | % | |||||
- Total bond portfolio |
1,655,294 | 2,097,585 | 2,508,205 | -21.09 | % | -34.00 | % | |||||
Compensatory bond |
143,684 | 370,558 | 1,451,079 | -61.22 | % | -90.10 | % | |||||
Compensatory bond to be credited |
110,282 | 108,886 | 238,067 | 1.28 | % | -53.68 | % | |||||
Other government bonds |
1,401,328 | 1,618,141 | 819,059 | -13.40 | % | 71.09 | % | |||||
- Total exposure to the Public Sector |
7,713,045 | 8,117,708 | 9,204,873 | -4.98 | % | -16.21 | % |
The main factor in the reduction was: a) a decrease in Other government bonds, related to the cancellation, with guaranteed bonds (BOGAR), of the advances received from the Central Bank to acquire Government bonds on behalf of those depositors who had accepted the first swap option plan launched by the Government, and b) a decrease in the compensatory bond, mainly explained by the swap of dollar denominated Government bonds (BODEN 2012) for private sector loans, within the framework of the sale of Banco Francés Cayman and in accodance with the commitment agreed on with the Central Bank.
Total loan portfolio
The chart below shows the composition of the loan portfolio in monthly balances:
Quarter ended |
% Change Qtr ended 06/30/04 vs. Qtr ended |
||||||||||||||
in thousands of pesos except percentages |
06/30/04 |
03/31/04 |
06/30/03 |
03/31/04 |
06/30/03 |
||||||||||
Net total loans |
7,937,432 | 7,383,354 | 8,197,106 | 7.50 | % | -3.17 | % | ||||||||
Advances |
301,982 | 152,790 | 116,442 | 97.65 | % | 159.34 | % | ||||||||
Notes discounted and purchased |
254,670 | 167,855 | 192,674 | 51.72 | % | 32.18 | % | ||||||||
Consumer Mortgages |
429,951 | 395,731 | 438,421 | 8.65 | % | -1.93 | % | ||||||||
Personal loans |
118,745 | 103,221 | 112,307 | 15.04 | % | 5.73 | % | ||||||||
Credit cards |
238,887 | 207,907 | 133,622 | 14.90 | % | 78.78 | % | ||||||||
Car secured loans |
8,391 | 5,198 | 6,130 | 61.43 | % | 36.88 | % | ||||||||
Loans to financial sector |
9,938 | 5,832 | 69,274 | 70.40 | % | -85.65 | % | ||||||||
Loans to public sector |
3,938,754 | 4,013,499 | 4,529,931 | -1.86 | % | -13.05 | % | ||||||||
Other |
627,901 | 364,652 | 903,131 | 72.19 | % | -30.48 | % | ||||||||
Unaccrued interest |
(550 | ) | (261 | ) | (138 | ) | 110.73 | % | 298.55 | % | |||||
Adjustment and accrued interest & exchange differences receivable |
2,140,227 | 2,068,287 | 2,228,994 | 3.48 | % | -3.98 | % | ||||||||
Less: Allowance for loan losses |
(131,464 | ) | (101,357 | ) | (533,682 | ) | 29.70 | % | -75.37 | % |
- 5 -
Net private sector loan portfolio grew 38% during the second quarter of fiscal year 2004. It is important to note that private loan portfolio as of June 2004 was impacted by the aforementioned swap of assets. On excluding such effect, net private loan portfolio would show a 22% growth (Ps.294 million).
Commercial private sector loan portfolio continued with the same positive trend shown during the last quarters pushed by a 98% and a 52% growth in advances and notes discounted, respectively, in the corporate segment, while credit card financing and personal loans increased 15%, in the retail segment. The 8.7% increase in mortgage loans is related to the capitalization of accumulated CVS adjustment, given that since April 2004 the Bank began to accrue a fixed interest rate (with no adjustment) on the mortgage porfolioin accordance to Law 25,713, Decree 117/04.
The 3.2% decrease in Net total portfolio, compared to the same quarter of the previous fiscal year, is explained by a 13% reduction in Public sector portfolio due to the exchange of provincial loans for peso denominated guaranteed bonds with an average term of 16 years (Bono Garantizado Decreto 1579/02).
Government and Private Securities
The following chart shows the total exposure of the Bank in government and private securities as of June 30, 2004, including repurchase agreement transactions. The decrease in Total bond portfolio compared to the previous quarter is mainly related to: a) a reduction in Other fixed income securities, related to the cancellation - with guaranteed bonds (BOGAR) - of the advances received from the Central Bank to acquire Government bonds on behalf of those depositors who had accepted the first swap option plan launched by the Government; b) a reduction in the Compensatory Bond - due to the swap of dollar denominated Government bonds (BODEN 2012) belonging to BBVA Banco Francés for private sector loans, and c) the effect of the valuation of bonds in investment account and other fixed income securities in accordance to Communication A 3911 of the Central Bank. Communication A 3911 provides that Federal Government Secured Loans, Government bonds and other unlisted Government securities and loans must be booked at the lowest of: i) the technical value (amount that should be adjusted by CER, if applicable, plus interest accrued pursuant to the conditions of issuance), and ii) the present value of future cash flows at a discount rate set by the Central Bank (3.25% until July 2004). The difference between both valuations should be accounted for in a balancing account. As of June 2004, the application of such regulation has had no impact in the Income Statement.
- 6 -
Quarter ended |
% Change Qtr ended 06/30/04 vs. Qtr ended |
|||||||||||
in thousands of pesos except percentages |
06/30/04 |
03/31/04 |
06/30/03 |
03/31/04 |
06/30/03 |
|||||||
Holdings |
1,738,122 | 1,647,957 | 2,111,452 | 5.47 | % | -17.68 | % | |||||
Trading |
29,716 | 27,887 | 196,711 | 6.56 | % | -84.89 | % | |||||
Liquidity Requirements |
| | | | | |||||||
Investment Accounts |
655,385 | 138,940 | 138,363 | 371.70 | % | 373.67 | % | |||||
Investment Accounts( RML) |
| | | | | |||||||
Investment accounts - Compensatory bond |
143,684 | 370,558 | 1,451,076 | -61.22 | % | -90.10 | % | |||||
Other fixed income securities |
909,337 | 1,110,572 | 325,302 | -18.12 | % | 179.54 | % | |||||
Repurchase Agreements |
| 493,054 | 535,009 | -100.00 | % | -100.00 | % | |||||
B.C.R.A. (Reverse repo) |
| | | | | |||||||
Trading (Reverse repo) |
| | | | | |||||||
Investment Accounts (reverse repo) |
| 493,054 | 535,009 | -100.00 | % | -100.00 | % | |||||
Trading (Reverse repo) |
| | | | | |||||||
Net Position |
1,738,122 | 2,141,011 | 2,646,461 | -18.82 | % | -34.32 | % | |||||
Trading |
29,716 | 27,887 | 196,711 | 6.56 | % | -84.89 | % | |||||
Investment Accounts |
655,385 | 631,994 | 673,372 | 3.70 | % | -2.67 | % | |||||
Investment Accounts (RML) |
| | | | | |||||||
Investment accounts - Compensatory bond |
143,684 | 370,558 | 1,451,076 | -61.22 | % | -90.10 | % | |||||
Other fixed income securities |
909,337 | 1,110,572 | 325,302 | -18.12 | % | 179.54 | % |
NB: The present chart includes the Compensatory bond received as of June 2004 - BODEN 2012. The remaining Compensatory bond to be received is accounted for in Other banking receivables until it has been credited.
Net Position in Other fixed income securities as of June 2004 includes $189.7 million of Private Bonds
Income from Securities and Short-Term Investments
Income from securities and short-term investments registered a Ps.9.4 million gain in the quarter ended June 30, 2004, compared to a Ps.18.8 million gain in the previous quarter. The decrease is mainly explained by higher earnings registered in the previous quarter related to the sale of a LEBAC (Central Bank bills) portfolio and a one-time CVS adjustment in assets under financial trusts partly offset by higher CER adjustment.
Quarter ended |
% Change Qtr ended 06/30/04 vs. Qtr ended |
|||||||||||
in thousands of pesos except percentages |
06/30/04 |
03/31/04 |
06/30/03 |
03/31/04 |
06/30/03 |
|||||||
Income from securities and short-term investments |
9,415 | 18,803 | 21,006 | -49.93 | % | -55.18 | % | |||||
Trading account |
1,412 | 8,048 | 741 | -82.46 | % | 90.44 | % | |||||
Investment account |
| | 9,215 | | -100.00 | % | ||||||
Investment account - Compensatory bond |
1,064 | 1,018 | 5,822 | 4.49 | % | -81.73 | % | |||||
Other fixed income securities |
6,939 | 9,737 | 5,228 | -28.73 | % | 32.72 | % | |||||
CER adjustment |
15,829 | 8,457 | 1,193 | 87.17 | % | 1227.11 | % | |||||
CER adjustment - Trading account |
| | | | | |||||||
CER adjustment - Investment account |
| | | | | |||||||
CER adjustment - Other fixed securities |
15,829 | 8,457 | 1,193 | 87.17 | % | 1227.11 | % |
The decrease in Income from securities and short-term investments compared to the figure posted in the June 2003 quarter is mainly due to a higher compensatory bond holding posted in the same quarter of previous fiscal year.
-7 -
Funding Sources
Quarter ended |
% Change Qtr ended 06/30/04 vs. Qtr ended |
|||||||||||
in thousands of pesos except percentages |
06/30/04 |
03/31/04 |
06/30/03 |
03/31/04 |
06/30/03 |
|||||||
Total deposits |
7,399,519 | 7,115,453 | 6,358,815 | 3.99 | % | 16.37 | % | |||||
Current accounts |
2,400,939 | 2,515,790 | 1,594,877 | -4.57 | % | 50.54 | % | |||||
Peso denominated |
2,335,010 | 2,459,732 | 1,591,537 | -5.07 | % | 46.71 | % | |||||
Foreign currency |
65,929 | 56,058 | 3,340 | 17.61 | % | 1873.92 | % | |||||
Savings accounts |
1,512,457 | 1,308,481 | 711,382 | 15.59 | % | 112.61 | % | |||||
Peso denominated |
1,165,350 | 1,024,325 | 711,108 | 13.77 | % | 63.88 | % | |||||
Foreign currency |
347,107 | 284,156 | 274 | 22.15 | % | | ||||||
Time deposits |
3,300,596 | 3,087,228 | 3,941,199 | 6.91 | % | -16.25 | % | |||||
Peso denominated |
3,096,545 | 2,966,818 | 3,896,293 | 4.37 | % | -20.53 | % | |||||
Foreign currency |
204,051 | 120,410 | 44,906 | 69.46 | % | 354.40 | % | |||||
Other |
185,527 | 203,954 | 111,357 | -9.03 | % | 66.61 | % | |||||
Peso denominated |
141,598 | 161,117 | 63,048 | -12.11 | % | 124.59 | % | |||||
Foreign currency |
43,929 | 42,837 | 48,309 | 2.55 | % | -9.07 | % | |||||
Rescheduled deposits |
918,609 | 978,609 | 1,223,160 | -6.13 | % | -24.90 | % | |||||
Peso denominated |
918,609 | 978,609 | 1,223,160 | -6.13 | % | -24.90 | % | |||||
Foreign currency |
| | | | | |||||||
Total deposits + Rescheduled deposits & CEDROS |
8,318,128 | 8,094,062 | 7,581,975 | 2.77 | % | 9.71 | % |
BBVA Banco Francés is the leading private sector bank measured by deposits with a 10.2% market share in private sector deposits as of June 30, 2004.
Since July 2002 new deposits in the financial system have shown a sustained growth. As previously mentioned during the June 2004 quarter growth was led by public sector due to heavy tax deadlines and increased fiscal solvency. Private sector peso and dollar denominated deposits (excluding rescheduled funds) grew 1.9% (Ps.1.3 billion), while the rescheduled portfolio continued to decline Ps.720 million. Likewise, the Banks total deposits increased 2.8%, mainly driven by a 15.6% (Ps. 204 million) and a 6.9% (Ps. 213 million) growth in saving account and time deposits, respectively, partly offset by a 5% decrease in sight accounts. The decrease in rescheduled deposits is mainly related to the payment of legal injunctions and the scheduled maturity of those funds. Foreign currency denominated deposits in the Bank amounted to Ps.661 million, with a 31.3% increase compared to March 31, 2004.
- 8 -
Other Funding Sources
Quarter ended |
% Change Qtr ended 06/30/04 vs. Qtr ended |
|||||||||||
in thousands of pesos |
06/30/04 |
03/31/04 |
06/30/03 |
03/31/04 |
06/30/03 |
|||||||
Lines from other banks |
599,750 | 385,301 | 1,302,375 | 55.66 | % | -53.95 | % | |||||
Loans from the Central Bank |
1,821,815 | 1,846,780 | 1,829,106 | -1.35 | % | -0.40 | % | |||||
Other loans from the Central Bank |
42,381 | 345,150 | 225,167 | -87.72 | % | -81.18 | % | |||||
Repo agreements |
| 299,736 | 294,853 | -100.00 | % | -100.00 | % | |||||
Negotiable Obligations |
341,041 | 349,602 | 381,433 | -2.45 | % | -10.59 | % | |||||
Other banking liabilities |
2,804,987 | 3,226,569 | 4,032,934 | -13.07 | % | -30.45 | % | |||||
Subordinated Debt |
69,246 | 66,091 | 134,793 | 4.77 | % | -48.63 | % | |||||
Total other funding sources |
2,874,233 | 3,292,660 | 4,167,727 | -12.71 | % | -31.04 | % |
Changes shown in the above chart are affected by the depreciation of the peso. It is important to mention that Loans from the Central Bank are related to the financial support received during the 2002 liquidity crisis. In addition, the Bank received loans from the Central Bank mainly related to the acquisition of government bonds (BODEN 2012) necessary to be delivered to depositors that participated in Swap I, which were cancelled during the present quarter. Furthermore, rediscounts from the Central Bank continue to decrease in accordance to the seventy-repayment installments schedule, which began in March 2004.
Other dollar funding sources
Quarter ended |
% Change Qtr ended 06/30/04 vs. Qtr ended |
|||||||||||
in thousands of dollars |
06/30/04 |
03/31/04 |
06/30/03 |
03/31/04 |
06/30/03 |
|||||||
Lines from other banks |
188,385 | 133,906 | 456,055 | 40.68 | % | -58.69 | % | |||||
Negotiable Obligations |
115,189 | 122,453 | 135,862 | -5.93 | % | -15.22 | % | |||||
Repo agreements |
| 104,986 | 105,023 | -100.00 | % | -100.00 | % | |||||
Other banking liabilities |
303,574 | 361,345 | 696,941 | -15.99 | % | -56.44 | % | |||||
Subordinated Debt |
20,227 | 20,000 | 20,231 | 1.13 | % | -0.02 | % | |||||
Total other funding sources |
323,800 | 381,345 | 717,172 | -15.09 | % | -54.85 | % |
Foreign currency funding sources, expressed in dollars, are shown in the above chart. During the present quarter the Bank cancelled a US$102.9 million repo agreement granted by BBVA and accounted for a new US$64 million loan registered in Lines from other banks. Furthermore, the decrease in negotiable obligations is related to the scheduled amortization of a Floating Rate Note (FRN), which was restructured in October 2003 for an average term of almost four years and and an average cost of 1.35% over LIBOR.
Likewise, the decrease as compared to the same quarter of previous fiscal year is mainly explained by the sale of Banco Francés Cayman and to the payments made on the aforementioned FRN.
- 9 -
Asset Quality
Quarter ended |
% Change Qtr ended 06/30/04 vs. Qtr ended |
||||||||||||||
in thousands of pesos except percentages |
06/30/04 |
03/31/04 |
06/30/03 |
03/31/04 |
06/30/03 |
||||||||||
Nonaccrual financing (1) |
192,400 | 182,528 | 1,201,110 | 5.41 | % | -83.98 | % | ||||||||
Allowances |
160,444 | 126,189 | 779,482 | 27.15 | % | -79.42 | % | ||||||||
Nonaccrual financing/ total financing |
2.16 | % | 2.23 | % | 12.23 | % | -2.76 | % | -82.31 | % | |||||
Allowances /nonaccrual financing |
83.39 | % | 69.13 | % | 64.90 | % | 20.62 | % | 28.50 | % |
Total financing includes loans and Other banking receivables and Guarantees granted by the Bank
(1) | Nonaccrual financing include all loans to borrowers classified as Problem, deficient Servicing, High Insolvency Risk, difficult Recovery, Irrecoverable and Irrecoverable for Technical decision according to the new Central Bank debtor classification system. |
The non-performing ratio considering Total Financing (that is, loans, corporate senior debt purchased and guarantees granted by the Bank) reached 2.16% as of June 30, 2004, with a coverage ratio of 83.39%.
The following chart shows the evolution of Allowance for loan losses, which includes allowances related to Other banking receivables.
Quarter ended |
% Change Qtr ended 06/30/04 vs. Qtr ended |
|||||||||||||
in thousands of pesos except percentages |
06/30/04 |
03/31/04 |
06/30/03 |
03/31/04 |
06/30/03 |
|||||||||
Balance at the beginning of the quarter |
114,377 | 425,736 | 734,771 | -73.13 | % | -84.43 | % | |||||||
Increase |
1,671 | 18,753 | 15,534 | 91.09 | % | -89.24 | % | |||||||
Exchange difference - Foreign trade loans |
| (498 | ) | (360 | ) | 100.00 | % | -100.00 | % | |||||
Provision increase/decrease Exchange rate difference |
192 | (7,167 | ) | (17,945 | ) | -102.68 | % | -101.07 | % | |||||
Decrease |
30,391 | (322,447 | ) | (119,393 | ) | -109.43 | % | -125.45 | % | |||||
Balance at the end of the quarter |
146,631 | 114,377 | 612,607 | 28.20 | % | -76.06 | % |
The Increase stands for loan loss provisions accounted for during the quarter. In turn, the positive result shown in the Decrease account is mainly explained by the write-offs of the quarter (Ps. 18 million), which were more than offset by the accounting for of those provision on the commercial loans swaped during the quarter.
Income from services net of other operating expenses
Net income from Services increased 4.3% and 25.7% compared to the previous quarter and to the same quarter of previous fiscal year, respectively.
- 10 -
Quarter ended |
% Change Qtr ended 06/30/04 vs. Qtr ended |
||||||||||||||
Nominal figures in $ thousands except percentages |
06/30/04 |
03/31/04 |
06/30/03 |
03/31/04 |
06/30/03 |
||||||||||
Net income from services |
70,336 | 67,467 | 55,976 | 4.25 | % | 25.65 | % | ||||||||
Service charge income |
82,366 | 78,498 | 64,518 | 4.93 | % | 27.66 | % | ||||||||
Service charges on deposits accounts |
30,566 | 30,269 | 25,282 | 0.98 | % | 20.90 | % | ||||||||
Credit and operations |
15,330 | 15,932 | 11,752 | -3.78 | % | 30.45 | % | ||||||||
Insurance |
3,238 | 3,056 | 2,231 | 5.95 | % | 45.16 | % | ||||||||
Capital markets and securities activities |
1,927 | 2,416 | 4,235 | -20.23 | % | -54.50 | % | ||||||||
Fees related to Foreign trade |
6,401 | 5,419 | 4,145 | 18.12 | % | 54.42 | % | ||||||||
Other fees |
24,905 | 21,407 | 16,873 | 16.34 | % | 47.60 | % | ||||||||
Services Charge expense |
(12,030 | ) | (11,031 | ) | (8,542 | ) | 9.05 | % | 40.83 | % |
The Bank continues to capitalize its strength in the transactional business with a steady increase in Net income from services. It is important to note that the increase in economic activity is now being reflected in fees such as foreign trade fees which increased 18.1% - and fees related to the collection of bills of exchange included in Other fees. Once again, fees related to the sales of insurance policies showed a positive performance, growing 6% during the quarter.
Fees related to foreign currency exchange transactions are not accounted for in Net income from services but in Net financial income. As of June 2004 such fees amounted to approximately Ps.18.1 million, compared to Ps.17.1 million registered in the previous quarter. The Bank currently purchases and sells U.S. dollars through all of the Banks branch and ATM network as well as over the Internet, and the Bank has most recently started to sell and purchase Euros, Brazilian reales and Uruguayan pesos.
Administrative expenses
Quarter ended |
% Change Qtr ended 06/30/04 vs. Qtr ended |
||||||||||||||
Nominal figures in $ thousands except percentages |
06/30/04 |
03/31/04 |
06/30/03 |
03/31/04 |
06/30/03 |
||||||||||
Adminitrative expenses |
(118,926 | ) | (126,676 | ) | (134,327 | ) | -6.12 | % | -11.47 | % | |||||
Personnel expenses |
(57,377 | ) | (60,534 | ) | (60,565 | ) | -5.22 | % | -5.26 | % | |||||
Electricity and Communications |
(3,356 | ) | (4,824 | ) | (4,400 | ) | -30.43 | % | -23.73 | % | |||||
Advertising and Promotion |
(6,142 | ) | (6,167 | ) | (4,863 | ) | -0.41 | % | 26.30 | % | |||||
Honoraries |
(5,686 | ) | (4,110 | ) | (6,504 | ) | 38.35 | % | -12.58 | % | |||||
Taxes |
(3,709 | ) | (5,056 | ) | (3,867 | ) | -26.64 | % | -4.09 | % | |||||
Organization and development expenses |
(6,483 | ) | (7,729 | ) | (13,233 | ) | -16.12 | % | -51.01 | % | |||||
Amortizations |
(8,003 | ) | (9,296 | ) | (13,171 | ) | -13.91 | % | -39.24 | % | |||||
Other |
(28,170 | ) | (28,960 | ) | (27,724 | ) | -2.73 | % | 1.61 | % |
Administrative expenses decreased 6.1% and 11.5% compared to the March 2004 and June 2003 quarters, respectively.
- 11 -
The decrease in Administrative expenses compared to the previous quarter is mainly explained by lower Personnel expenses, a decrease in Electricity and communication, Organization and development expenses and Amortizations.
The Bank is still highly committed to cost control and improved efficiency and maintains these goals for fiscal year 2004. As of June 30, 2004, the Bank had 3,628 employees including consolidated companies except for the Consolidar Group - and a network of 231 consumer branches, 28 branches specialized in the middle-market segment, and 39 offices of Credilogros.
Other Income/expenses
Other income/expenses for the second quarter reflected a Ps.117.2 million loss, against a Ps.127.9 million gain registered in the previous quarter. It is important to note that while March 2004 figures included the positive effect of the reversal of provisions made during previous quarters to cover the balance of deferred tax registered under Other Receivables, June 2004 quarter includes general provisions and a Ps.50 million charge related to the amortization of the loss derived from the payment of deposits under judicial injunctions.
Income from equity investments
Income from equity investments sets forth net income from related companies, which do not require consolidation, including mainly the Consolidar Group. As of June 30, 2004, the Bank registered a Ps.6.6 million gain for its stake in the Consolidar Group.
Capitalization
Quarter ended |
% Change vs. |
||||||||
in thousands of pesos except percentages |
06/30/04 |
03/31/04 |
03/31/04 |
||||||
Central Bank Minimun Capital Requirements |
419,227 | 459,913 | -8.85 | % | |||||
Allocated to Asset at Risk |
172,729 | 195,311 | -11.56 | % | |||||
Allocated to Inmobilized Assets |
152,962 | 167,837 | -8.86 | % | |||||
Market Risk |
12,552 | 8,573 | 46.41 | % | |||||
Interest Rate Risk |
46,649 | 49,991 | -6.69 | % | |||||
Loans to Public Sector and Securities in Investment |
34,335 | 38,201 | -10.12 | % | |||||
Bank Capital Calculated under Central Bank Rules |
1,302,862 | 1,397,149 | -6.75 | % | |||||
Core Capital |
1,342,699 | 1,438,129 | -6.64 | % | |||||
Supplemental Capital |
(36,140 | ) | (24,075 | ) | 50.11 | % | |||
Deductions |
(169,853 | ) | (180,009 | ) | -5.64 | % | |||
Minority Interest |
166,156 | 163,104 | 1.87 | % | |||||
Excess over Required Capital |
883,635 | 937,236 | -5.72 | % |
- 12 -
As of June 30, 2004 BBVA Banco Francés had Ps.1,298 million in total networth with an excess of Ps.884 over minimum capital requirements in accordance to Central Bank regulations.
Total Networth decrease is mainly explained by the CER vs. CVS adjustment. Financial institutions suffered losses pending compensation related to the differences resulting from the substitution of the Reference Stabilization Index (CER) by the Salary Variation Index (CVS) for the adjustment of certain mortgages, personal and car secured loans. The compensation for these losses was approved by Congress and the Central Bank issued the regulation applicable to the determination of the amount of compensation. Financial institutions had to communicate their election to accept such compensation procedure by May 18, 2004. With the acceptance of the compensation procedure, each financial institution would waive its right to demand any future compensation in relation to the enforcement of the applicable law and regulations. BBVA Banco Frances filed a note before the Central Bank and the Ministry of Economy by which it accepted the mentioned compensation procedure, subjet to the approval by the Central Bank of the methodology carried out by the Bank, and charged such loss to the account Income (loss) adjustment to prior year under Stockholders Equity.
Additional information
Quarter ended |
% Change Qtr ended 06/30/04 vs. Qtr ended |
||||||||||||||
in pesos except percentages |
30/06/04 |
31/03/04 |
30/06/03 |
31/03/04 |
30/06/03 |
||||||||||
- Exchange rate |
2.9607 | 2.8550 | 2.8075 | 3.70 | % | 5.46 | % | ||||||||
- Quarterly CER adjustment (CPI) |
2.08 | % | 0.76 | % | 0.44 | % | 175.19 | % | 373.01 | % |
Recent developments
| On July 13, 2004, the Supreme Court ruled against the claim filed by depositor CABRERA, GERÓNIMO RAFAEL c/ P.E.N. s/ AMPARO, who exercised his rights under the scope of the Public Emergency regulations, and received part of his rescheduled deposits in pesos waiving his right to make any further claim for the free exchange rate differences. The Supreme Court rejected the exchange rate difference claimed by the depositor, based on the theory which states that a voluntary submission to a regulatory framework, hinders its further contestation based on constitutional rights (Teoría de los Actos Propios). |
As of the date of the present press release, there is no unified enforcement of this ruling by lower courts.
This press release contains or may contain certain forward-looking statements within the meaning of the United States Securities Litigation Reform Act of 1995, including, among other things, concerning the prospects of the Argentine economy, Banco Francéss earnings, business plans, cost-reduction plans, and capitalization plan, and trends affecting Banco Francéss financial condition or results of operations. Any forward-looking statements included in this press release are based on current expectations and estimates, but actual results and events may differ materially from anticipated future results and events. Certain factors which could cause the actual results and events to differ materially from the expected results or events include: (1) changes in the markets for Banco Francéss products and services; (2) changes in domestic or international stock
- 13 -
market prices, exchange rates or interest rates; (3) macroeconomic, regulatory, political or governmental changes; (4) increased competition; (5) changes in technology; or (6) changes in the financial condition, creditworthiness or solvency of the customers, debtors or counterparts of Banco Francés. Additional factors that could cause the actual results or events to differ materially from the expected results or events are described in the reports filed by Banco Francés with the United States Securities and Exchange Commission (SEC), including, but not limited to, Banco Francéss annual report on Form 20-F and exhibits thereto. Banco Francés does not undertake to revise or update any of the information contained herein under any circumstances, including if at any moment following dissemination of such information it is no longer accurate or complete.
Conference call: A conference call to discuss this second quarter earnings will be held on Thursday, August 12, at 2:30 p.m. New York time - 3:30 p.m. Buenos Aires time. If you are interested in participating please dial (719) 457 2665 at least 5 minutes prior to our conference. Confirmation code: 915049. To receive the tape of this conference call, please call (719) 457 2865.
Internet: This press release is also available in http://www.bancofrances.com.ar
- 14 -
Banco Francés S.A. and subsidiaries (Grupo Consolidar: by the equity method)
(in thousands of $) |
06/30/04 |
03/31/04 |
12/31/03 |
06/30/03 |
||||||||
ASSETS : |
||||||||||||
Cash and due from banks |
1,403,253 | 1,713,444 | 1,543,132 | 1,134,676 | ||||||||
Government and Private Securities |
1,551,973 | 1,508,037 | 2,562,742 | 1,832,656 | ||||||||
- Investment account |
799,069 | 509,497 | 1,174,901 | 1,589,442 | ||||||||
- Trading account (listed securities) |
23,674 | 12,134 | 313,733 | 101,341 | ||||||||
- Unlisted |
780,767 | 1,032,572 | 1,066,840 | 140,229 | ||||||||
- Listed Private Securities |
3,553 | 7,024 | 7,268 | 1,644 | ||||||||
Less: Allowances |
(55,090 | ) | (53,190 | ) | | | ||||||
Loans |
7,937,432 | 7,383,354 | 7,596,676 | 8,197,106 | ||||||||
- Advances |
301,982 | 152,790 | 154,098 | 116,442 | ||||||||
- Notes discounted and purchased |
254,670 | 167,855 | 200,061 | 192,674 | ||||||||
- Secured with mortgages |
429,951 | 395,731 | 415,885 | 438,421 | ||||||||
- Car secured loans |
8,391 | 5,198 | 5,390 | 6,130 | ||||||||
- Credit cards |
238,887 | 207,907 | 192,099 | 133,622 | ||||||||
- Loans to financial sector |
9,938 | 5,832 | 77,558 | 69,274 | ||||||||
- Loans to public sector |
3,938,754 | 4,013,499 | 3,934,954 | 4,529,931 | ||||||||
- Other |
746,646 | 467,873 | 956,954 | 1,015,438 | ||||||||
Less: Unaccrued interest |
(550 | ) | (261 | ) | (298 | ) | (138 | ) | ||||
Plus: Interest & FX differences receivable |
2,140,227 | 2,068,287 | 2,016,131 | 2,228,994 | ||||||||
Less: Allowance for loan losses |
(131,464 | ) | (101,357 | ) | (356,156 | ) | (533,682 | ) | ||||
Other banking receivables |
783,061 | 1,257,150 | 1,589,511 | 1,557,725 | ||||||||
- Compensatory Bond |
110,282 | 108,886 | 250,149 | 238,067 | ||||||||
- Repurchase agreements |
| 493,054 | 557,270 | 535,009 | ||||||||
- Unlisted private securities |
157,605 | 108,772 | 223,830 | 197,453 | ||||||||
- Unlisted Private securities :Trustees |
28,545 | 31,148 | 76,496 | 81,343 | ||||||||
- Other banking receivables |
501,796 | 528,310 | 551,346 | 584,778 | ||||||||
- Less: provisions |
(15,167 | ) | (13,020 | ) | (69,580 | ) | (78,925 | ) | ||||
Investments in other companies |
241,212 | 233,811 | 229,030 | 244,849 | ||||||||
Intangible assets |
871,003 | 884,249 | 905,616 | 939,161 | ||||||||
- Goodwill |
35,403 | 37,060 | 38,718 | 42,504 | ||||||||
- Organization and development charges |
46,026 | 51,097 | 55,341 | 82,895 | ||||||||
- Assets related to legal injunctions |
789,574 | 796,092 | 811,557 | 813,762 | ||||||||
Other assets |
579,890 | 619,863 | 794,602 | 982,710 | ||||||||
Total assets |
13,367,824 | 13,599,908 | 15,221,309 | 14,888,883 | ||||||||
06/30/04 |
03/31/04 |
12/31/03 |
06/30/03 |
|||||||||
LIABILITIES: |
||||||||||||
Deposits |
8,318,128 | 8,094,062 | 8,191,187 | 7,581,975 | ||||||||
- Demand deposits |
2,400,939 | 2,515,790 | 2,263,190 | 1,594,877 | ||||||||
- Saving accounts |
1,512,457 | 1,308,481 | 1,167,438 | 711,382 | ||||||||
- Time deposits |
3,300,596 | 3,087,228 | 3,552,037 | 3,941,199 | ||||||||
- Rescheduled deposits - CEDROS |
918,609 | 978,609 | 1,043,539 | 1,223,160 | ||||||||
- Other deposits |
185,527 | 203,954 | 164,983 | 111,357 | ||||||||
Other banking Liabilities |
3,250,603 | 3,630,027 | 4,565,902 | 4,577,151 | ||||||||
Other provisions |
345,513 | 313,006 | 467,870 | 674,737 | ||||||||
- Other contingencies |
332,693 | 301,940 | 423,926 | 494,314 | ||||||||
- Guarantees |
12,820 | 11,066 | 43,944 | 180,423 | ||||||||
Subordinated debt |
69,246 | 66,091 | 68,077 | 74,793 | ||||||||
Other liabilities |
65,942 | 68,575 | 156,787 | 90,974 | ||||||||
Minority interest |
20,222 | 20,351 | 21,089 | 24,284 | ||||||||
Total liabilities |
12,069,654 | 12,192,112 | 13,470,912 | 13,023,914 | ||||||||
Total stockholders´equity |
1,298,170 | 1,407,796 | 1,750,397 | 1,864,969 | ||||||||
Total liabilities + stockholders equity |
13,367,824 | 13,599,908 | 15,221,309 | 14,888,883 | ||||||||
- 15 -
Banco Francés S.A. and subsidiaries (Grupo Consolidar: by the equity method)
06/30/04 |
03/31/04 |
12/31/03 |
06/30/03 |
|||||||||
INCOME STATEMENT |
||||||||||||
Financial income |
284,145 | 193,501 | 180,350 | 272,406 | ||||||||
- Interest on Cash and Due from Banks |
2,618 | 2,556 | 2,784 | 2,681 | ||||||||
- Interest on Loans Granted to the Financial Sec. |
94 | 66 | 167 | 607 | ||||||||
- Interest on Overdraft |
5,810 | 5,352 | 5,307 | 8,057 | ||||||||
- Interest on Notes discounted and purchased |
1,844 | 1,799 | (79 | ) | 2,088 | |||||||
- Interest on mortgages |
11,425 | 11,463 | 11,434 | 12,110 | ||||||||
- Interest on car secured loans |
258 | 187 | 159 | 173 | ||||||||
- Interest on Credit Card Loans |
4,197 | 4,972 | 4,348 | 9,942 | ||||||||
- Interest on Other Loans |
22,914 | 22,153 | 24,554 | 30,529 | ||||||||
- Income from securities and short term investments |
9,415 | 18,803 | (21,267 | ) | 21,006 | |||||||
- Interest on Government guaranteed loans Decreet1387/01 |
54,855 | 37,943 | 58,889 | 51,789 | ||||||||
- From Other Banking receivables |
1,661 | 1,440 | 1,626 | 1,916 | ||||||||
- CER |
129,059 | 51,626 | 58,480 | 51,820 | ||||||||
- CVS |
13,190 | 24,518 | 44,667 | | ||||||||
- Foreign exchange difference |
26,235 | 10,208 | | | ||||||||
- Other |
570 | 415 | (10,719 | ) | 79,688 | |||||||
Financial expenses |
(127,654 | ) | (105,232 | ) | (108,503 | ) | (321,161 | ) | ||||
- Interest on Current Account Deposits |
(5,159 | ) | (3,289 | ) | (4,014 | ) | (5,182 | ) | ||||
- Interest on Saving Account Deposits |
(911 | ) | (1,374 | ) | (1,300 | ) | (1,088 | ) | ||||
- Interest on Time Deposits |
(23,016 | ) | (29,998 | ) | (40,071 | ) | (161,236 | ) | ||||
- Interest on Other Banking Liabilities |
(4,993 | ) | (6,218 | ) | (18,176 | ) | (23,893 | ) | ||||
- Other interests (includes Central Bank) |
(24,324 | ) | (24,806 | ) | (26,001 | ) | (38,563 | ) | ||||
- Mandatory contributions and taxes on interest income |
(12,059 | ) | (12,631 | ) | (13,282 | ) | (5,968 | ) | ||||
- CER |
(56,611 | ) | (24,691 | ) | (29,606 | ) | (1,657 | ) | ||||
- Foreign exchange difference |
| | 35,093 | (81,905 | ) | |||||||
- Other |
(581 | ) | (2,225 | ) | (11,146 | ) | (1,669 | ) | ||||
Net financial income |
156,491 | 88,269 | 71,847 | (48,755 | ) | |||||||
Provision for loan losses |
(1,671 | ) | (18,753 | ) | 8,166 | (15,534 | ) | |||||
Income from services, net of other operating expenses |
70,336 | 67,467 | 64,098 | 55,976 | ||||||||
Administrative expenses |
(118,926 | ) | (126,676 | ) | (141,005 | ) | (134,327 | ) | ||||
Income (loss) from equity investments |
8,197 | 19,082 | (20,855 | ) | 2,658 | |||||||
Net Other income |
(117,238 | ) | 127,893 | (63,493 | ) | 265,564 | ||||||
Income (loss) from minority interest |
129 | 736 | 2,146 | 631 | ||||||||
Income before tax |
(2,682 | ) | 158,018 | (79,096 | ) | 126,213 | ||||||
Income tax |
(11,514 | ) | (188,351 | ) | (507 | ) | (133,435 | ) | ||||
Net income |
(14,196 | ) | (30,333 | ) | (79,603 | ) | (7,222 | ) | ||||
- 16 -
Banco Francés S.A. and subsidiaries (Grupo Consolidar: by the equity method)
in thousands of $ |
06/30/04 |
03/31/04 |
12/31/03 |
06/30/03 |
||||||||
ASSETS : |
||||||||||||
Cash and due from banks |
1,403,253 | 1,713,444 | 1,398,612 | 1,112,140 | ||||||||
Government and Private Securities |
1,551,973 | 1,508,037 | 1,910,429 | 740,555 | ||||||||
Less: Allowances |
(55,090 | ) | (53,190 | ) | | | ||||||
Loans |
7,937,432 | 7,383,354 | 5,939,446 | 6,614,257 | ||||||||
- Advances |
301,982 | 152,790 | 154,039 | 115,785 | ||||||||
- Notes discounted and purchased |
254,670 | 167,855 | 199,700 | 192,329 | ||||||||
- Secured with mortgages |
429,951 | 395,731 | 415,870 | 438,399 | ||||||||
- Car secured loans |
8,391 | 5,198 | 4,856 | 5,619 | ||||||||
- Personal loans |
118,745 | 103,221 | 104,411 | 112,307 | ||||||||
- Credit cards |
238,887 | 207,907 | 192,029 | 133,518 | ||||||||
- Loans to financial sector |
9,938 | 5,832 | 37,434 | 11,978 | ||||||||
- Loans to public sector |
3,938,754 | 4,013,499 | 2,897,351 | 3,492,328 | ||||||||
- Other |
746,646 | 467,873 | 956,954 | 1,015,438 | ||||||||
Less: Unaccrued interest |
(550 | ) | (261 | ) | (298 | ) | (138 | ) | ||||
Plus: Interest & FX differences receivable |
2,140,227 | 2,068,287 | 1,437,667 | 1,668,952 | ||||||||
Less: Allowance for loan losses |
(131,464 | ) | (101,357 | ) | (356,156 | ) | (459,951 | ) | ||||
Other banking receivables |
783,061 | 1,257,150 | 1,539,153 | 1,466,304 | ||||||||
- Compensatory Bond |
110,282 | 108,886 | 250,149 | 238,067 | ||||||||
- Repurchase agreements |
| 493,054 | 557,270 | 535,009 | ||||||||
- Unlisted private securities |
157,605 | 108,772 | 223,830 | 168,870 | ||||||||
- Unlisted Private securities :Trustees |
28,545 | 31,148 | 76,496 | 81,343 | ||||||||
- Other banking receivables |
501,796 | 528,310 | 500,988 | 500,502 | ||||||||
- Less: provisions |
(15,167 | ) | (13,020 | ) | (69,580 | ) | (57,487 | ) | ||||
Investments in other companies |
241,212 | 233,811 | 1,666,373 | 1,595,565 | ||||||||
Intangible assets |
871,003 | 884,249 | 905,616 | 939,161 | ||||||||
- Goodwill |
35,403 | 37,060 | 38,718 | 42,504 | ||||||||
- Organization and development charges |
46,026 | 51,097 | 55,341 | 82,895 | ||||||||
- Assets related to legal injunctions |
789,574 | 796,092 | 811,557 | 813,762 | ||||||||
Other assets |
579,890 | 619,863 | 792,788 | 981,697 | ||||||||
Total assets |
13,367,824 | 13,599,908 | 14,152,417 | 13,449,679 | ||||||||
06/30/04 |
03/31/04 |
12/31/03 |
06/30/03 |
|||||||||
LIABILITIES: |
||||||||||||
Deposits |
8,318,128 | 8,094,062 | 7,659,108 | 6,985,902 | ||||||||
- Demand deposits |
2,400,939 | 2,515,790 | 2,004,198 | 1,356,629 | ||||||||
- Saving accounts |
1,512,457 | 1,308,481 | 1,167,438 | 711,382 | ||||||||
- Time deposits |
3,300,596 | 3,087,228 | 3,280,797 | 3,583,463 | ||||||||
- Rescheduled deposits - CEDROS |
918,609 | 978,609 | 1,043,539 | 1,223,160 | ||||||||
- Other deposits |
185,527 | 203,954 | 163,136 | 111,268 | ||||||||
Other banking Liabilities |
3,250,603 | 3,630,027 | 4,030,824 | 3,893,487 | ||||||||
Other provisions |
345,513 | 313,006 | 467,710 | 516,321 | ||||||||
- Other contingencies |
332,693 | 301,940 | 423,766 | 335,898 | ||||||||
- Guarantees |
12,820 | 11,066 | 43,944 | 180,423 | ||||||||
Subordinated debt |
69,246 | 66,091 | 68,077 | 74,793 | ||||||||
Other liabilities |
65,942 | 68,575 | 155,212 | 89,923 | ||||||||
Minority interest |
20,222 | 20,351 | 21,089 | 24,284 | ||||||||
Total liabilities |
12,069,654 | 12,192,112 | 12,402,020 | 11,584,710 | ||||||||
Total stockholders´equity |
1,298,170 | 1,407,796 | 1,750,397 | 1,864,969 | ||||||||
Total liabilities + stockholders equity |
13,367,824 | 13,599,908 | 14,152,417 | 13,449,679 | ||||||||
- 17 -
Banco Francés S.A. and subsidiaries (Grupo Consolidar consolidated on a line by line basis)
06/30/04 |
03/31/04 |
12/31/03 |
06/30/03 |
|||||||||
ASSETS |
||||||||||||
Cash and due from banks |
1,438,298 | 1,746,811 | 1,639,154 | 1,199,862 | ||||||||
Government Securities |
2,188,583 | 2,128,472 | 3,042,451 | 2,032,464 | ||||||||
Loans |
8,678,493 | 8,121,174 | 8,336,352 | 8,911,616 | ||||||||
Other banking receivables |
825,892 | 1,311,132 | 1,611,034 | 1,565,267 | ||||||||
Investments in other companies |
45,240 | 43,608 | 42,630 | 44,496 | ||||||||
Other assets |
1,598,821 | 1,658,864 | 1,864,638 | 2,114,939 | ||||||||
TOTAL ASSETS |
14,775,327 | 15,010,061 | 16,536,259 | 15,868,644 | ||||||||
06/30/04 |
03/31/04 |
12/31/03 |
06/30/03 |
|||||||||
LIABILITIES |
||||||||||||
Deposits |
8,164,745 | 7,958,821 | 8,078,216 | 7,336,280 | ||||||||
Other banking liabilities |
3,269,172 | 3,688,814 | 4,592,484 | 4,600,570 | ||||||||
Other liabilities |
1,877,084 | 1,791,524 | 1,954,129 | 1,895,756 | ||||||||
Minority interest |
166,156 | 163,106 | 161,033 | 171,069 | ||||||||
TOTAL LIABILITIES |
13,477,157 | 13,602,265 | 14,785,862 | 14,003,675 | ||||||||
TOTAL STOCKHOLDERS´EQUITY |
1,298,170 | 1,407,796 | 1,750,397 | 1,864,969 | ||||||||
STOCKHOLDERS´EQUITY + LIABILITIES |
14,775,327 | 15,010,061 | 16,536,259 | 15,868,644 | ||||||||
06/30/04 |
03/31/04 |
12/31/03 |
06/30/03 |
|||||||||
NET INCOME |
||||||||||||
Net Financial Income |
192,879 | 125,998 | 119,982 | (21,932 | ) | |||||||
Provision for loan losses |
(1,671 | ) | (18,753 | ) | 8,166 | (15,534 | ) | |||||
Net Income from Services |
126,561 | 127,881 | 111,541 | 94,486 | ||||||||
Administrative expenses |
(159,227 | ) | (165,833 | ) | (184,218 | ) | (165,619 | ) | ||||
Net Other Income |
(156,018 | ) | 94,766 | (143,693 | ) | 237,666 | ||||||
Income (loss) from minority interest |
(3,833 | ) | (2,074 | ) | 11,108 | (927 | ) | |||||
Income before tax |
(1,309 | ) | 161,985 | (77,114 | ) | 126,773 | ||||||
Income tax |
(12,887 | ) | (192,318 | ) | (2,489 | ) | (133,995 | ) | ||||
Net income |
(14,196 | ) | (30,333 | ) | (79,603 | ) | (7,222 | ) | ||||
- 18 -
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
BBVA Banco Francés S.A. | ||||
Date: August 11, 2004 |
By: |
/s/ Marcelo G. Canestri | ||
Name: |
Marcelo G. Canestri | |||
Title: |
Chief Financial Officer |