SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of March 2005
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
BBVA Banco Francés S.A.
TABLE OF CONTENTS
Item |
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1. |
Press release entitled BBVA Banco Francés reports fourth quarter earnings for fiscal year 2004. |
CONTACT: | María Adriana Arbelbide | |
Investor Relations | ||
Phone: (5411) 4341 5036 | ||
E-mail: marbelbide@bancofrances.com.ar |
March 7, 2005
BBVA BANCO FRANCES (NYSE; BFR.N; BCBA:FRA.BA; LATIBEX: BFR.LA) REPORTS CONSOLIDATED FORTH QUARTER EARNINGS FOR FISCAL YEAR 2004
Executive summary
| Operating income for fiscal year ended December 31, 2004, totaled Ps.249 million, which compares favorably to a Ps.310.5 million loss registered in the previous fiscal year. The main drivers of such an improvement were: a) a decrease in the average funding cost of fixed rate funds together with a higher variation in the CER index and an increasing intermediation volume and b) a higher efficiency level, as a result of increasing fees and decreasing administrative expenses. During the present fiscal year BBVA Banco Francés S.A., or BBVA Banco Francés, was able to reduce 2003 losses by 69.3%. |
| During the present fiscal year BBVA Banco Francés reinforced its capital base through a capital increase of Ps. 364 million. Following such capitalization the Bank ranks as one of the leading entities in Argentina, in terms of stockholders equity. |
| The incipient private sector loan recovery showed in 2003, was reinforced during the present fiscal year pushed by overdrafts, personal loans and credit card financing in the retail segment and through short-term financings, such as notes discounted, working capital financing, investment-banking products - such as financial trusts - and some longer term transactions (which include financings with terms of up to one-year), in the corporate segment. During the last twelve-month period, our net private loan portfolio grew 35.3% - i.e. Ps.599 million. |
| BBVA Banco Francés has successfully consolidated its leadership in the market, boosted by a commercial strategy focused on its large customer base and its team of professionals. As of December 31, 2004 the Bank remained as the first private financial entity measured by deposits, with a 10.6% market share in private sector deposits. |
| The positive evolution in transactional business derived in a 27.4% increase in fees, as compared to the previous fiscal year, which together with a 6% drop in administrative expenses, resulted in a significant improvement in the efficiency ratio. Net fee income as a percentage of Administrative expenses grew from 45.5% as of December 31, 2003 to 58.4% by the end of 2004. However, should fees coming from FX purchase & sales be included in income from services, such accumulated ratio as of December 2004 reaches 73.4%. |
- 1 -
| The outstanding management of risk assets, combined with a conservative provisioning policy led to a sustained improvement in asset quality. The non-performing ratio, with respect to all our financings, decreased from 9.29% as of December 31, 2003 to 1.26% as of December 31, 2004, while the coverage ratio improved from 57.46% to 114.3%, in the same period. |
| BBVA Banco Francés has reduced its Public sector exposure by 13.6% (Ps.1,256 million), during the 2004 fiscal year. However, the December 2004 balance includes a larger Lebac portfolio than that of the previous fiscal year. Should we exclude the effect of the increae in Lebac holdings, the Banks exposure to the Public sector decreases aproximately Ps. 1,690 million compared to December 2003. |
Condensed Income Statement (1) in $ thousands except income per share, income per ADS and percentages |
FY 2004 |
FY 2003 |
% Change |
||||||
Net Financial Income |
513,947 | 74,513 | 589.74 | % | |||||
Provision for loan losses |
(52,002 | ) | (77,506 | ) | -32.91 | % | |||
Net income from services |
294,712 | 231,332 | 27.40 | % | |||||
Inflation adjustment |
| 4,174 | -100.00 | % | |||||
Administrative expenses |
(507,572 | ) | (540,212 | ) | -6.04 | % | |||
Inflation adjustment |
| (2,788 | ) | -100.00 | % | ||||
Operating income |
249,085 | (310,487 | ) | 180.22 | % | ||||
Income (loss) from equity investments |
43,058 | (4,283 | ) | 1105.32 | % | ||||
Income (Loss) from Minority interest |
(323 | ) | 4,785 | -106.75 | % | ||||
Other income/expenses |
(280,345 | ) | 216,540 | -229.47 | % | ||||
Inflation adjustment |
(133 | ) | -100.00 | % | |||||
Income tax |
(96,147 | ) | (182,148 | ) | -47.21 | % | |||
Net income for the period |
(84,672 | ) | (275,726 | ) | -69.29 | % | |||
Net income per share (2) |
-0.18 | -0.75 | -76.02 | % | |||||
Net income per ADS (3) |
-0.54 | -2.25 | -76.02 | % |
(1) | Exchange rate: Ps. 2,9738= 1 US$ |
(2) | Assumes 471,361,306 ordinary shares outstanding for the quarter ended 12/31/04 and 368,128,432 for the quarter ended 12/31/03. |
(3) | Each ADS represents three ordinary shares. |
Fourth quarter of fiscal year 2004
According to the monthly indicator for economic activity (EMAE, Estimador Mensual de Actvidad Económmica), economic activity continued to expand at a healthy pace in the fourth quarter of 2004 -2.7%-, similar to that of the previous quarter. Once again Industrial production growth was led by a strong performance of the automobile sector, which still has idle capacity.
Fiscal performance remained strong. Annual tax collection was up 36% as compared to the previous year, after high fourth quarter revenues. In spite of the Governments decision to postpone until next year the deadline to pay the last installment of income tax and the expansion of public expenditure, the primary fiscal surplus totalled Ps. 17.3 billion in 2004, almost doubling the surplus of the previous year.
Inflation remained subdued in the fourth quarter, in line with the trend of previous months, and averaged an annual 5%. However, during the last month of 2004 it accelerated, with CPI index increasing 0.8% month on month.
On the financial front, the peso-U.S. dollar exchange remained stable, mainly due to the active intervention of the Central Bank. The monetary base (including reverse repos) increased Ps. 6,300 million, compared to an increase of Ps. 5,000 million in the third quarter. Due to high liquidity there was no pressure on interest rates; deposit rates remained at a similar level while interest rates of Central Banks short-term bills (LEBACs) showed a downward trend.
The more expansive monetary policy together with the decision to postpone December income tax payments resulted in an increased flow of deposits to private banks. Total private deposits in pesos and dollars grew 5.2% in the fourth quarter, while the first nine months of the year accumulated a 6.6% growth. As for assets, the private sector loan portfolio continued to recover.
- 2 -
The Business:
BBVA Banco Francés is one of the largest banks in Argentina, ranking as the first private bank in deposits and loans, according to recent statistics published by the Central Bank in December 2004. As of December 31, 2004 the Bank had a total of Ps.9.2 billion in deposits and Ps.14.5 billion in assets and a market capitalization of Ps. 3.3 billion.
BBVA Banco Francess universal commercial strategy, aiming to achieve a leading position in all of the different market segments, bolsters the Banks franchise differentiation in the market. On top of that, the Banks strong corporate culture, with its customers and its team of professionals as cornerstones, continues to focus on specialization and segmentation for each business area.
During the present 2004 year, the Bank gradually resumed traditional banking products and services. The growing business of financial intermediation was added to the transactional activity, which was the pillar of our strategy in 2002 and 2003. Looking forward, the Bank faces the challenge of rebuilding its private sector loan portfolio, while the economy continues to grow, and consolidating its financial margin, optimizing the funding structure. Likewise, the Bank keeps targeting higher fee revenues and lower costs aiming to further improve in efficiency.
Presentation of Financial Information
It is important to note that:
| All foreign currency transactions accounted for at a free exchange rate as of December 31, 2004 have been translated into pesos at the reference exchange rate of Ps. 2.9738 per U.S. dollar, published by the Central Bank of Argentina on that date. |
| This press release contains unaudited information that consolidates all of 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 investments, respectively. |
| To provide a meaningful comparison to previous quarters, we include on page 16 of this press release the balance sheet of BBVA Banco Francés including Banco Francés Cayman Ltd. (which we refer to as Banco Francés Cayman, a subsidiary of BBVA Banco Francés that was sold in March 2004) by the equity method. |
FOURTH QUARTER EARNINGS
Condensed Income Statement (1) | Quarter ended |
% Change Qtr ended 12/31/04 vs. Qtr ended |
|||||||||||||
in thousands of pesos except income per share, income per ADS and percentages |
12/31/04 |
09/30/04 |
12/31/03 |
09/30/04 |
12/31/03 |
||||||||||
Net Financial Income |
135,996 | 133,191 | 71,847 | 2.11 | % | 89.29 | % | ||||||||
Provision for loan losses |
(20,400 | ) | (11,178 | ) | 8,166 | 82.50 | % | 349.82 | % | ||||||
Net income from services |
81,584 | 75,325 | 64,098 | 8.31 | % | 27.28 | % | ||||||||
Administrative expenses |
(139,828 | ) | (122,142 | ) | (141,005 | ) | 14.48 | % | -0.83 | % | |||||
Operating income |
57,352 | 75,196 | 3,106 | -23.73 | % | 1746.49 | % | ||||||||
Income (loss) from equity investments |
8,341 | 7,438 | (20,855 | ) | -12.14 | % | 140.00 | % | |||||||
Income (Loss) from Minority interest |
(1,148 | ) | (40 | ) | 2,146 | -2770.00 | % | -153.49 | % | ||||||
Other income/expenses |
(141,126 | ) | (149,874 | ) | (63,493 | ) | 5.84 | % | -322.27 | % | |||||
Income tax |
49,432 | 54,286 | (507 | ) | -8.94 | % | | ||||||||
Net income for the period |
(27,149 | ) | (12,994 | ) | (79,603 | ) | -108.93 | % | 65.89 | % | |||||
Net income per share (2) |
-0.06 | -0.04 | -0.22 | -63.18 | % | 73.36 | % | ||||||||
Net income per ADS (3) |
-0.17 | -0.11 | -0.65 | -63.18 | % | 73.36 | % |
(1) | Exchange rate: Ps. 2.9738= 1 US$ |
(2) | Assumes 471,361,306 ordinary shares outstanding for the quarter ended 12/31/04 and 368,128,432 for the quarters ended 09/30/04 and 12/31/03. |
(3) | Each ADS represents three ordinary shares. |
- 3 -
Operating income of the December 2004 quarter registered a Ps.57.4 million gain, compared to the Ps. 3.1 million and the Ps. 75.2 million gains, registered in the quarters ended on December 31, 2003 and September 30, 2004, respectively. The strong reduction in the average cost of funds combined with a vigorous increase in the CER index variation 32.3% - and a growing intermediation volume led to the consolidation of the net financial margin in the last twelve-month period. Likewise the greater efficiency, which was driven by an increased net income from services and lower administrative expenses, helped to compensate the increase in Provision for loan losses. The decrease in Operating income as compared to the previous quarter is mainly explained by a lower CER index variation and higher loan loss provisions, factors that were partly offset by an increase in Net income from services.
The loss in Other income/expenses is mainly explained by: i) a Ps.51 million charge related to the amortization of the loss derived from the payment of deposits under judicial injunctions, in accordance to Central Banks regulations - which does not imply that the Bank waives its right to demand a future compensation, ii) the registration of general provisions, and iii) the provisions made during the quarter to cover the taxable deferred asset stemming from the use of the deferred tax method, the opposite entry of which is included in Income tax.
Net income for the fourth quarter of fiscal year 2004, accounted for a Ps.27.1 million loss, compared to a Ps.79.6 million loss registered in the December 2003 quarter.
Quarter ended |
% Change Qtr ended 12/31/04 vs. Qtr ended |
||||||||||||||
in thousands of pesos except percentages |
12/31/04 |
09/30/04 |
12/31/03 |
09/30/04 |
12/31/03 |
||||||||||
Return on Average Assets (1) |
-0.77 | % | -0.38 | % | -2.09 | % | -100.33 | % | 63.37 | % | |||||
Return on Average Shareholders Equity (1) |
-7.48 | % | -4.02 | % | -17.79 | % | -85.89 | % | 57.95 | % | |||||
Net fee Income as a% of Operating Income |
37.50 | % | 36.12 | % | 47.15 | % | 3.80 | % | -20.47 | % | |||||
Net fee Income as a% of Administrative Expenses |
58.35 | % | 61.67 | % | 45.46 | % | -5.39 | % | 28.35 | % | |||||
Adm. Expenses as a% of Operating Income (2) |
64.27 | % | 58.58 | % | 103.72 | % | 9.71 | % | -38.04 | % |
(1) | Annualized |
(2) | Adm.Expenses / Net financial income + Net income from services |
Net financial Income
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. As previously mentioned, the successful pricing policy implemented by the Bank, led to a gradual fall in the average cost of funds. Such lower funding structure, jointly with a higher CER index variation and an increasing private sector loan portfolio, had a positive impact on the spread.
Public Sector Exposure
During the present fiscal year BBVA Banco Francés reduced its exposure to the Public sector by 13.6 % (Ps. 1,256 million). However, the December 2004 balance includes a larger Lebac portfolio than that of the previous fiscal year. Should we exclude the effect of the increase in Lebac holdings, the Banks exposure to the Public sector decreases approximately Ps. 1,690 million compared to December 2003.
- 4 -
Quarter ended |
% Change Qtr ended 12/31/04 vs. Qtr ended |
|||||||||||
in thousands of pesos except percentages |
12/31/04 |
09/30/04 |
12/31/03 |
09/30/04 |
12/31/03 |
|||||||
- Loans to the Federal government & Provinces |
6,084,888 | 6,071,125 | 5,899,181 | 0.23 | % | 3.15 | % | |||||
- Total bond portfolio |
1,918,242 | 1,432,855 | 3,359,893 | 33.88 | % | -42.91 | % | |||||
Compensatory bond |
78,384 | 145,334 | 1,025,021 | -46.07 | % | -92.35 | % | |||||
Compensatory bond to be credited |
| 109,125 | 250,149 | -100.00 | % | -100.00 | % | |||||
Other government bonds |
1,099,111 | 1,090,038 | 1,776,753 | 0.83 | % | -38.14 | % | |||||
Bills from the Central Bank |
740,747 | 88,358 | 307,970 | 738.35 | % | 140.53 | % | |||||
- Total exposure to the Public Sector |
8,003,130 | 7,503,980 | 9,259,074 | 6.65 | % | -13.56 | % |
As of December 31, 2004, total exposure to the Public sector - including loans and bonds - amounted to approximately Ps. 8.0 billion. The main factor in the reduction as compared to the same quarter of previous fiscal year was a decrease in the compensatory bond (BODEN 2012), primarily due to the sale of Banco Francés Cayman subsidiary last March. On top of that, during the present quarter the Bank charged off the compensatory assets being objected to by the Central Bank which does not imply that the Bank has waived its claims for compensation in respect to the asymmetric pesification.
The decrease in Other government bonds is mainly related to the subscription - with guaranteed bonds BOGAR that Banco Francés had in its portfolio - of the Government bonds (BODEN 2013) to be delivered to those depositors who had accepted the first and second swap option plan launched by the Government, partly offset by a larger LEBAC portfolio.
A larger LEBAC portfolio, registered in Other Government bonds, mainly explains higher exposure to the Public sector, as compared to the September 2004 quarter.
It should be mentioned that out of a total exposure to Public sector of Ps. 8 billion, only bonds in the amount of Ps. 597 million are non-performing. In regards to such portfolio, in February 2005 the Bank accepted the sovereign reestructuring proposal of the Argentine government. The remaining Public sector assets are performing normally and their market values have significantly increased during 2004 (31% increase in BOGAR, 33% increase in BODEN 2012 and 44% increase in PG Global 2008 estimated parity).
Total loan portfolio
The chart below shows the composition of the loan portfolio in monthly balances:
Quarter ended |
% Change Qtr ended 12/31/04 vs. Qtr ended |
||||||||||||||
in thousands of pesos except percentages |
12/31/04 |
09/30/04 |
12/31/03 |
09/30/04 |
12/31/03 |
||||||||||
Net total loans |
8,381,197 | 8,318,566 | 7,596,676 | 0.75 | % | 10.33 | % | ||||||||
Advances |
272,275 | 321,035 | 154,098 | -15.19 | % | 76.69 | % | ||||||||
Notes discounted and purchased |
251,332 | 289,001 | 200,061 | -13.03 | % | 25.63 | % | ||||||||
Consumer Mortgages |
401,064 | 415,924 | 415,885 | -3.57 | % | -3.56 | % | ||||||||
Personal loans |
182,627 | 152,303 | 104,411 | 19.91 | % | 74.91 | % | ||||||||
Credit cards |
252,511 | 231,348 | 192,099 | 9.15 | % | 31.45 | % | ||||||||
Car secured loans |
25,943 | 14,962 | 5,390 | 73.39 | % | 381.32 | % | ||||||||
Loans to financial sector |
41,285 | 30,023 | 77,558 | 37.51 | % | -46.77 | % | ||||||||
Loans to public sector |
3,983,624 | 3,880,252 | 3,934,954 | 2.66 | % | 1.24 | % | ||||||||
Other |
963,843 | 903,227 | 852,543 | 6.71 | % | 13.06 | % | ||||||||
Unaccrued interest |
(924 | ) | (620 | ) | (298 | ) | 49.03 | % | 210.07 | % | |||||
Adjustement and accrued interest & exchange differences receivable |
2,129,581 | 2,216,307 | 2,016,131 | -3.91 | % | 5.63 | % | ||||||||
Less: Allowance for loan losses |
(121,964 | ) | (135,196 | ) | (356,156 | ) | -9.79 | % | -65.76 | % |
- 5 -
Net private sector loan portfolio grew 35.3% (Ps. 599 million) in the last twelve-month period. The commercial private sector loan portfolio was driven by the 76.7%, 13.1% and 25.6% increases in advances, other loans which include foreign trade transactions and notes discounted, respectively - basically in the corporate segment. As for retail segment, growth was pushed by personal loans, credit cards and car secured loans.
Moreover, during the last quarter, the positive trend in private loans continued, with a 6.7% increase in other loans, in the corporate segment and a 19.9%, 9.2% and 73.4% in personal loans, credit cards and car secured loans, respectively.
Government and Private Securities
The following chart shows the total exposure of the Bank in government and private securities as of December 31, 2004, including repurchase agreement transactions. The decrease in Total bond portfolio compared to the same quarter of the previous fiscal year is mainly explained by the aforementioned sale of Banco Francés Cayman and the decision of the Bank to charge off the compensatory assets being objected by the Central Bank which does not imply its waiving to the requests made.
The decrease in Other government bonds is mainly related to the subscription - with guaranteed bonds BOGAR - of the Government bonds to be delivered to those depositors who agreed to enter into swap options pursuant to the first and second swap option plan launched by the Government, partly offset by a larger LEBAC portfolio (Central Bank bills).
As previously mentioned, the increase in Government and Private securities, as compared to the September 2004 quarter, is mainly explained by a larger LEBAC portfolio, registered in Other fixed income securities.
Communication A 3911 provides that Federal Government Secured Loans (issued pursuant to Decree No.1387/2001), Government bonds not subject to capital requirements for market risk, Provincial Government secured loans and bonds (issued pursuant to Decree No.1579/2002 under Resolution 539/2002 of the Ministry of Economy - and other unlisted Government securities and loans must be booked at the lower of the following two values: i) the technical value (amount that should be adjusted by CER, if applicable, plus any 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 (3.5% for December 2004). The difference between both valuations should be accounted for in a balancing account. The application of such regulation has had no impact in the Income Statement as of December 2004.
Quarter ended |
% Change Qtr ended 12/31/04 vs. Qtr ended |
|||||||||||||
in thousands of pesos except percentages |
12/31/04 |
09/30/04 |
12/31/03 |
09/30/04 |
12/31/03 |
|||||||||
Holdings |
2,038,635 | 1,472,507 | 2,863,068 | 38.45 | % | -28.80 | % | |||||||
Trading |
755,589 | 114,534 | 408,221 | 559.71 | % | 85.09 | % | |||||||
Liquidity Requirements |
| | | | | |||||||||
Investment Accounts |
649,700 | 650,544 | 149,879 | -0.13 | % | 333.48 | % | |||||||
Investment Accounts( RML) |
| | | | | |||||||||
Investment accounts - Compensatory bond |
78,384 | 145,334 | 1,025,021 | -46.07 | % | -92.35 | % | |||||||
Other fixed income securities |
610,287 | 617,577 | 1,279,947 | -1.18 | % | -52.32 | % | |||||||
Allowances |
(55,325 | ) | (55,482 | ) | | -0.28 | % | | ||||||
Repurchase Agreements |
| | 557,270 | | -100.00 | % | ||||||||
B.C.R.A. (Reverse repo) |
| | | | | |||||||||
Trading (Reverse repo) |
| | | | | |||||||||
Investment Accounts (reverse repo) |
| | 557,270 | | -100.00 | % | ||||||||
Trading (Reverse repo) |
| | | | | |||||||||
Net Position |
2,038,635 | 1,472,507 | 3,420,338 | 38.45 | % | -40.40 | % | |||||||
Trading |
755,589 | 114,534 | 408,221 | 559.71 | % | 85.09 | % | |||||||
Investment Accounts |
649,700 | 650,544 | 707,149 | -0.13 | % | -8.12 | % | |||||||
Investment Accounts (RML) |
| | | | | |||||||||
Investment accounts - Compensatory bond |
78,384 | 145,334 | 1,025,021 | -46.07 | % | -92.35 | % | |||||||
Other fixed income securities |
610,287 | 617,577 | 1,279,947 | -1.18 | % | -52.32 | % | |||||||
Allowances |
(55,325 | ) | (55,482 | ) | | -0.28 | % | |
Net Position in Other fixed income securities as of September 2004 includes Ps. 120.4 million of Private Bonds
- 6 -
Income from Securities and Short-Term Investments
Quarter ended |
% Change Qtr ended 12/31/04 vs. Qtr ended |
||||||||||||
in thousands of pesos except percentages |
12/31/04 |
09/30/04 |
12/31/03 |
09/30/04 |
12/31/03 |
||||||||
Income from securities and short-term investments |
18,191 | 9,888 | (21,267 | ) | 83.97 | % | -185.54 | % | |||||
Trading account |
2,105 | 2,599 | 2,397 | -19.00 | % | -12.17 | % | ||||||
Investment account |
| | 22 | | -100.00 | % | |||||||
Investment account - Compensatory bond |
589 | 594 | (32,540 | ) | -0.79 | % | -101.81 | % | |||||
Other fixed income securities |
15,497 | 6,695 | 8,854 | 131.47 | % | 75.03 | % | ||||||
CER adjustment |
5,837 | 10,840 | 8,770 | -46.15 | % | -33.44 | % | ||||||
CER adjustment - Trading account |
| | | | | ||||||||
CER adjustment - Investment account |
| | | | | ||||||||
CER adjustment - Other fixed securities |
5,837 | 10,840 | 8,770 | -46.15 | % | -33.44 | % |
Income from securities and short-term investments registered a gain of Ps.18.2 million in the quarter ended December 31, 2004, compared to a Ps.21.3 million loss and a Ps.9.9 million gain posted in the December 2003 and September 2004 quarters, respectively. It is important to note that the December 2003 quarter included a loss related to the sale of a BODEN 2012 portfolio registered in Banco Francés Cayman.
Funding Sources
BBVA Banco Francés is the leading private sector bank in terms of deposits, with a 10.6% market share in private sector deposits as of December 31, 2004.
Quarter ended |
% Change Qtr ended 12/31/04 vs. Qtr ended |
|||||||||||
in thousands of pesos except percentages |
12/31/04 |
09/30/04 |
12/31/03 |
09/30/04 |
12/31/03 |
|||||||
Total deposits |
8,751,307 | 8,023,661 | 7,147,648 | 9.07 | % | 22.44 | % | |||||
Current accounts |
1,675,024 | 2,522,467 | 2,263,190 | -33.60 | % | -25.99 | % | |||||
Peso denominated |
1,670,124 | 2,444,183 | 2,230,845 | -31.67 | % | -25.13 | % | |||||
Foreign currency |
4,900 | 78,284 | 32,345 | -93.74 | % | -84.85 | % | |||||
Savings accounts |
2,395,535 | 1,518,426 | 1,167,438 | 57.76 | % | 105.20 | % | |||||
Peso denominated |
1,919,569 | 1,151,795 | 936,187 | 66.66 | % | 105.04 | % | |||||
Foreign currency |
475,966 | 366,631 | 231,251 | 29.82 | % | 105.82 | % | |||||
Time deposits |
4,390,587 | 3,714,010 | 3,552,037 | 18.22 | % | 23.61 | % | |||||
Peso denominated |
2,885,720 | 2,619,136 | 3,389,172 | 10.18 | % | -14.85 | % | |||||
CER adjusted time deposits |
1,218,212 | 845,620 | 86,314 | 44.06 | % | 1311.37 | % | |||||
Foreign currency |
286,655 | 249,254 | 76,551 | 15.01 | % | 274.46 | % | |||||
Other |
290,161 | 268,758 | 164,983 | 7.96 | % | 75.87 | % | |||||
Peso denominated |
236,855 | 218,164 | 120,969 | 8.57 | % | 95.80 | % | |||||
Foreign currency |
53,306 | 50,594 | 44,014 | 5.36 | % | 21.11 | % | |||||
Rescheduled deposits |
458,837 | 543,781 | 1,043,539 | -15.62 | % | -56.03 | % | |||||
Peso denominated |
458,837 | 543,781 | 1,043,539 | -15.62 | % | -56.03 | % | |||||
Foreign currency |
| | | | | |||||||
Total deposits + Rescheduled deposits & CEDROS |
9,210,144 | 8,567,442 | 8,191,187 | 7.50 | % | 12.44 | % |
- 7 -
Since July 2002 new deposits in the financial system have shown a sustained growth. During the present fiscal year growth was led by public sector, mainly due to tax matters and increased fiscal solvency. However, during the last quarter trends reverted and the private sector became the main driver, mainly due the Governments decision to postpone the payment of income tax and the expansion of public expenditure. Private sector peso and dollar denominated deposits (excluding rescheduled funds) grew 5.2% (Ps.4.0 billion), while the rescheduled portfolio continued to decline by Ps.703 million. Likewise, the Banks total deposits increased 12.4% as compared to the December 2003 balance - or 22.4% excluding the effect of the contraction of rescheduled deposits - and 7.5% as compared to the September 2004 quarter - or 9.1% excluding the effect of the contraction of rescheduled deposits.
Growth was mainly driven by saving account and time deposits, with emphasis in CER adjusted CDs. This type of funds represented a valuable alternative for customers while it helped the Bank to lengthen the average term of funds and reduced long CER adjusted position. On the other hand, the decrease in rescheduled deposits is mainly related to the completion of the first and second swap option launched by the Government which resulted in the delivery of Government bonds to the depositors - the payment of amounts ordered by legal injunctions and the scheduled maturity of those funds. Foreign currency denominated deposits in the Bank grew 113.7% in the last twelve-month period, amounting to US$ 276 million (Ps.821 million) as of December 31, 2004 and increasing its market share by 370 b.p. Furthermore, BBVA Banco Francés also has a leading position in CER adjusted deposits, with a 24% market share.
The decrease in current accounts, as compared to the previous quarter, is mainly related to the reclassification of interest bearing current accounts into saving accounts, in accordance to communication A 4249 from the Central Bank.
Other Funding Sources
Quarter ended |
% Change Qtr ended 12/31/04 vs. Qtr ended |
|||||||||||
in thousands of pesos |
12/31/04 |
09/30/04 |
12/31/03 |
09/30/04 |
12/31/03 |
|||||||
Lines from other banks |
253,505 | 718,033 | 1,190,013 | -64.69 | % | -78.70 | % | |||||
Loans from the Central Bank |
1,855,115 | 1,860,954 | 1,826,546 | -0.31 | % | 1.56 | % | |||||
Other loans from the Central Bank |
35,536 | 29,649 | 225,222 | 19.86 | % | -84.22 | % | |||||
Repo agreements |
| | 307,945 | | -100.00 | % | ||||||
Negotiable Obligations |
322,517 | 345,679 | 356,371 | -6.70 | % | -9.50 | % | |||||
Other banking liabilities |
2,466,673 | 2,954,315 | 3,906,097 | -16.51 | % | -36.85 | % | |||||
Subordinated Debt |
60,307 | 69,334 | 68,077 | -13.02 | % | -11.41 | % | |||||
Total other funding sources |
2,526,980 | 3,023,649 | 3,974,174 | -16.43 | % | -36.41 | % |
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, plus other loans granted by the Central Bank to acquire government bonds (BODEN 2012) on behalf of those depositors who participated in Swap I, that were later cancelled during the June 2004 quarter.
Other dollar funding sources in thousands of dollars |
Quarter ended |
% Change Qtr ended 12/31/04 vs. Qtr ended |
||||||||||
12/31/04 |
09/30/04 |
12/31/03 |
09/30/04 |
12/31/03 |
||||||||
Lines from other banks |
84,405 | 203,565 | 404,314 | -58.54 | % | -79.12 | % | |||||
Negotiable Obligations |
108,453 | 115,902 | 121,504 | -6.43 | % | -10.74 | % | |||||
Repo agreements |
| | 104,993 | | -100.00 | % | ||||||
Other banking liabilities |
192,858 | 319,468 | 630,811 | -39.63 | % | -69.43 | % | |||||
Subordinated Debt |
20,279 | 20,000 | 20,229 | 1.40 | % | 0.25 | % | |||||
Total other funding sources |
213,138 | 339,468 | 651,041 | -37.21 | % | -67.26 | % |
- 8 -
Foreign currency funding sources, expressed in dollars, are shown in the above chart. The decrease in Total other funding sources as compared to December 2003 quarter was mainly driven by: (i) the sale of Banco Francés Cayman, (ii) the cancellation of a US$102.9 million repo agreement granted by BBVA, with a new US$64 million loan as counterpart registered in Lines from other banks, (iii) the capitalization of a US$77.7 million loan granted by BBVA, and (iv) the payment of foreign funding sources for a total amount of US$40 million.
The decrease as compared to the September 2004 quarter is mainly explained by the recent capitalization of a US$77.7 million loan granted by BBVA and the payment of foreign funding sources for a total amount of US$40 million.
Asset Quality
Quarter ended |
% Change Qtr ended 12/31/04 vs. Qtr ended |
||||||||||||||
in thousands of pesos except percentages |
12/31/04 |
09/30/04 |
12/31/03 |
09/30/04 |
12/31/03 |
||||||||||
Nonaccrual financing (1) |
117,116 | 180,744 | 817,668 | -35.20 | % | -85.68 | % | ||||||||
Allowances |
133,875 | 151,439 | 469,859 | -11.60 | % | -71.51 | % | ||||||||
Nonaccrual financing/ total financing |
1.26 | % | 1.94 | % | 9.29 | % | -34.98 | % | -86.41 | % | |||||
Allowances /nonaccrual financing |
114.31 | % | 83.79 | % | 57.46 | % | 36.43 | % | 98.93 | % |
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. |
Asset quality showed a sustained improvement since the beginning of the 2001 and 2002 crisis. The Banks efforts in the restructuring process and risk control resulted in a successful performance. The non-performing ratio in respect of all types of financing (i.e., loans, corporate senior debt purchased and guarantees granted by the Bank) reached 1.26% as of December 31, 2004, with a coverage ratio of 114.3%.
The following chart shows the evolution of Allowance for loan losses, which includes allowances related to Other banking receivables. The Increase is mainly explained by loan loss provisions on non-performing loans accounted for during the quarter. In turn, the Decrease account is mainly explained by the write-offs of the quarter and the reclassification of non-performing loans, after the conclusion of the restructuring process.
Quarter ended |
% Change Qtr ended 12/31/04 vs. Qtr ended |
||||||||||||||
in thousands of pesos except percentages |
12/31/04 |
09/30/04 |
12/31/03 |
09/30/04 |
12/31/03 |
||||||||||
Balance at the beginning of the quarter |
140,369 | 146,631 | 552,734 | -4.27 | % | -74.60 | % | ||||||||
Increase |
20,400 | 11,178 | (8,166 | ) | -82.50 | % | -349.82 | % | |||||||
Exchange difference - Foreign trade loans |
| | (1 | ) | | -100.00 | % | ||||||||
Provision increase/decrease - Exchange rate difference |
(139 | ) | 390 | 2,052 | -135.64 | % | -106.77 | % | |||||||
Decrease |
(31,888 | ) | (17,830 | ) | (120,883 | ) | 78.84 | % | -73.62 | % | |||||
Balance at the end of the quarter |
128,742 | 140,369 | 425,736 | -8.28 | % | -69.76 | % |
- 9 -
Income from services net of other operating expenses
Net income from Services maintained its strong performance, growing 27.3% and 8.3% as compared to the December 2003 and September 2004 quarter, respectively.
Once again fee income remained as an alternative source of income. A higher activity level, combined with the impact of a larger customer base and the launching of new products, mainly drove the positive behavior. Service charges on deposit accounts, credit card fees and insurance were particularly high.
Quarter ended |
% Change Qtr ended 12/31/04 vs. Qtr ended |
||||||||||||||
in thousands of pesos except percentages |
12/31/04 |
09/30/04 |
12/31/03 |
09/30/04 |
12/31/03 |
||||||||||
Net income from services |
81,584 | 75,325 | 64,098 | 8.31 | % | 27.28 | % | ||||||||
Service charge income |
93,593 | 87,162 | 77,088 | 7.38 | % | 21.41 | % | ||||||||
Service charges on deposits accounts |
35,202 | 32,929 | 30,093 | 6.90 | % | 16.98 | % | ||||||||
Credit and operations |
17,149 | 16,121 | 14,868 | 6.37 | % | 15.34 | % | ||||||||
Insurance |
4,401 | 3,697 | 2,839 | 19.05 | % | 55.01 | % | ||||||||
Capital markets and securities activities |
1,815 | 2,778 | 4,300 | -34.66 | % | -57.79 | % | ||||||||
Fees related to Foreign trade |
6,818 | 7,328 | 5,344 | -6.96 | % | 27.57 | % | ||||||||
Other fees |
28,208 | 24,309 | 19,644 | 16.04 | % | 43.60 | % | ||||||||
Services Charge expense |
(12,009 | ) | (11,837 | ) | (12,991 | ) | 1.45 | % | -7.55 | % |
Income related to foreign currency exchange transactions is not accounted for in Net income from services but it is in Net financial income. As of December 2004, such income amounted to approximately Ps.21.1 million, compared to Ps.17.5 million and Ps. 18.5 million registered in the December 2003 and September 2004 quarters, respectively. The Bank currently purchases and sells U.S. dollars through all of the Banks branches and its ATM network as well as over the Internet. The Bank has also recently started to sell and purchase Euros, Brazilian reales and Uruguayan pesos.
Administrative expenses
Quarter ended |
% Change Qtr ended 12/31/04 vs. Qtr ended |
||||||||||||||
in thousands of pesos except percentages |
12/31/04 |
09/30/04 |
12/31/03 |
09/30/04 |
12/31/03 |
||||||||||
Administrative expenses |
(139,828 | ) | (122,142 | ) | (141,005 | ) | 14.48 | % | -0.83 | % | |||||
Personnel expenses |
(76,018 | ) | (59,476 | ) | (67,855 | ) | 27.81 | % | 12.03 | % | |||||
Electricity and Communications |
(3,844 | ) | (3,882 | ) | (4,349 | ) | -0.98 | % | -11.61 | % | |||||
Advertising and Promotion |
(6,894 | ) | (6,513 | ) | (5,595 | ) | 5.85 | % | 23.22 | % | |||||
Honoraries |
(6,627 | ) | (7,399 | ) | (6,678 | ) | -10.43 | % | -0.76 | % | |||||
Taxes |
(3,948 | ) | (3,500 | ) | (4,135 | ) | 12.80 | % | -4.52 | % | |||||
Organization and development expenses |
(5,870 | ) | (5,995 | ) | (13,064 | ) | -2.09 | % | -55.07 | % | |||||
Amortizations |
(6,835 | ) | (7,179 | ) | (10,464 | ) | -4.79 | % | -34.68 | % | |||||
Other |
(29,792 | ) | (28,198 | ) | (28,865 | ) | 5.65 | % | 3.21 | % |
- 10 -
Administrative expenses showed a -0.8% decrease as compared to the same quarter of the previous fiscal year and increased 14.5% compared to the September 2004 quarter.
Lower Organization and development expenses and a decrease in Amortization, partially offset by an increase in Personnel expenses, mainly explain the slight decrease in Administrative expenses compared to the December 2003 quarter. Likewise, higher Personnel expenses due to the provisioning of annual bonuses mainly explain the increase as compared to the September 2004 quarter.
As of December 31, 2004, the Bank had 3,577 employeesincluding consolidated companies except for the Consolidar Groupand a network of 228 consumer branches, 27 branches specialized in the middle-market segment, and 36 offices of Credilogros.
Other Income/expenses
Other income/expenses for the second quarter reflected a Ps.141.1 million loss, compared to a Ps.63.5 million and Ps.149.9 million loss registered in the December 2003 and September 2004 quarters, respectively. As previously mentioned, the December 2004 figures were negatively impacted by: i) a Ps.51 million charge related to the amortization of the loss derived from the payment of deposits under judicial injunctions, in accordance to Central Banks regulationswhich does not imply that the Bank has waived its right to seek a compensation for this loss, ii) the registration of general provisions, and iii) the provisions made during the quarter to cover the taxable deferred asset stemming from the use of the deferred tax method, the opposite entry of which is included in Income tax.
The Bank determined the charge for income tax by applying the effective 35% rate to taxable income estimated for each period considering the effect of temporary differences between book and taxable income. The Bank considered as temporary differences those that have a definitive reversal date in subsequent years. As of December 31, 2004 and 2003, the Bank has estimated the existence of a net operating loss in the income tax.
On June 19, 2003, the Bank received a note from the BCRA indicating that the capitalization of items arising from the application of the deferred tax method is not allowed.
On June 26, 2003, the Banks Board of Directors, based on the opinion of its legal counsel, responded to the above mentioned note, indicating that in its opinion the rules of the BCRA do not prohibit the application of the deferred tax method generated by the recognition of temporary differences between the accounting and tax result. Subsequently, Resolution 118/03 of the Superintendency of Financial and Exchange Institutions received on October 7, 2003 confirmed the terms of the note dated June 19, 2003. Consequently, as from that date the Bank has set up a provision for the net balance between the deferred tax assets and liabilities.
As of December 31, 2004 and 2003, the Bank records under Other Receivables (in the Tax Advance account) a taxable deferred asset amounting Ps. 118 million and Ps.185.5 million, respectively.
Income from equity investments
Income from equity investments sets forth net income from related companies, which are not consolidated, including mainly the Consolidar Group. As of December 31, 2004, the Bank registered a Ps.6.5 million gain from its stake in the Consolidar Group.
- 11 -
Capitalization
As of December 31, 2004 BBVA Banco Francéss shareholders equity amounted to Ps. 1.6 billion with Ps.1,2 billion excess capital over minimum requirements in accordance to Central Bank regulations.
Quarter ended |
% Change vs. |
||||||||
in thousands of pesos except percentages |
12/31/04 |
09/30/04 |
09/30/04 |
||||||
Central Bank Minimum Capital Requirements |
466,595 | 447,754 | 4.21 | % | |||||
Allocated to Asset at Risk |
232,962 | 221,730 | 5.07 | % | |||||
Allocated to Inmobilized Assets |
137,918 | 142,651 | -3.32 | % | |||||
Market Risk |
27,767 | 11,229 | 147.28 | % | |||||
Interest Rate Risk |
35,612 | 38,978 | -8.64 | % | |||||
Loans to Public Sector and Securities in Investment |
32,336 | 33,166 | -2.50 | % | |||||
Bank Capital Calculated under Central Bank Rules |
1,656,396 | 1,304,456 | 26.98 | % | |||||
Core Capital |
1,703,124 | 1,342,699 | 26.84 | % | |||||
Supplemental Capital |
(73,371 | ) | (47,027 | ) | 56.02 | % | |||
Deductions |
(145,632 | ) | (161,790 | ) | -9.99 | % | |||
Minority Interest |
172,275 | 170,574 | 1.00 | % | |||||
Excess over Required Capital |
1,189,801 | 856,702 | 38.88 | % |
On November 17 the Bank ended the thirty-day subscription period stated for the exercise of the preemptive and accretion rights regarding the issuance of 103,232,874 common book entry shares of $1 nominal value and one vote per share, entitled to dividends on the same conditions as the outstanding shares of the company.
The offer was carried out by the capitalization of certain eligible assets and cash, and took place in Argentina. The price set for the new shares was Ps. 3.53 and the issue was fully subscribedconsidering both those subscribed exercising the preemptive right and those subscribed by accretion rights. Accordingly the capital stock of BBVA Banco Francés increased from 368,128,432 shares to 471,361,306 shares. As a result of the capitalization, Banco Bilbao Vizcaya Argentaria S.A.main shareholder of BBVA Banco Francés owns 75.97% of BBVA Banco Francéss capital stock.
Additional information
Quarter ended |
% Change Qtr ended 12/31/04 vs. Qtr ended |
||||||||||||||
in pesos except percentages |
31/12/04 |
30/09/04 |
31/12/03 |
30/09/04 |
31/12/03 |
||||||||||
- Exchange rate |
2.9738 | 2.9825 | 2.9330 | -0.29 | % | 1.39 | % | ||||||||
- Quarterly CER adjustment (CPI) |
1.10 | % | 1.45 | % | 0.83 | % | -24.14 | % | 32.28 | % |
- 12 -
Recent developments
· The BCRA has observed certain items and recording criteria that gave rise to the compensation being requested for the asymetric convertion of foreign currency denominated assets and liabilities into pesos.
Through several letters sent to the BCRA, the Bank has requested the release of BODEN 2012 corresponding to the compensation, which is not objected by the above authorities. Additionally, it has informed the acceptance of certain adjustments determined by the BCRA to the compensation amount, and rejecting other adjustments.
The effect of such differences totaled Ps. 280.4 million. As of December 31, 2004 the Bank has charged off the assets being observed by the Central Bank which does imply that the Bank has waived its claims to those amounts.
As of December 31, 2004 the Bank records under Public sector bonds a compensatory asset (BODEN 2012) amounting to Ps. 78.4 million.
· The offer of the Argentine Government to exchange eligible debt securities in default in an amount of up to approximately US$80 billion began on January 14, 2005. The terms of the exchange included major reductions in face amounts and interest rates and extensions in the payment terms. The exchange offer launched by the Argentine Government included three types of exchange bonds which basic terms were established in Executive Order No. 1735/04: Par Bonds, Quasi-Par Bonds and Discount Bonds. The period to tender eligible securities pursuant to the exchange offer ended on February 25, 2005. On March 3, 2005 the Argentine Government formally announced that 76% of the holders of the debt chose to accept the Argentine Governments restructuring offer. The Argentine Government has indicated that it has no plans to make any payments in respect of the debt that has not been restructured. The settlement of the exchange offer is still pending. With this debt restructuring, the Argentine Government has now left its default situation behind. Negotiations with the IMF are expected to resume in the near future.
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 BBVA 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 BBVA Banco Francéss products and services; (2) changes in domestic or international stock 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 counterparties of BBVA 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 BBVA Banco Francés with the United States Securities and Exchange Commission (SEC), including, but not limited to, BBVA Banco Francéss annual report on Form 20-F and exhibits thereto. BBVA 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 fourth quarter earnings will be held on Wednesday, March 9, at 10:00 A.M. New York time - 12:00 A.M. Buenos Aires time. If you are interested in participating please dial (719) 457-2652 at least 5 minutes prior to our conference. Confirmation code: 2469246. 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
- 13 -
BBVA Banco Francés S.A. and subsidiaries (Grupo Consolidar: by the equity method)
(in thousands of pesos) | 12/31/04 |
09/30/04 |
06/30/04 |
12/31/03 |
||||||||
ASSETS : |
||||||||||||
Cash and due from banks |
1,633,821 | 1,722,380 | 1,403,253 | 1,543,132 | ||||||||
Government and Private Securities |
1,920,901 | 1,340,456 | 1,551,973 | 2,562,742 | ||||||||
- Investment account |
729,084 | 795,878 | 799,069 | 1,174,901 | ||||||||
- Trading account (listed securities) |
751,581 | 97,236 | 23,674 | 313,733 | ||||||||
- Unlisted |
492,902 | 486,098 | 780,767 | 1,066,840 | ||||||||
- Listed Private Securities |
2,659 | 16,726 | 3,553 | 7,268 | ||||||||
Less: Allowances |
(55,325 | ) | (55,482 | ) | (55,090 | ) | | |||||
Loans |
8,381,197 | 8,318,566 | 7,937,432 | 7,596,676 | ||||||||
- Advances |
272,275 | 321,035 | 301,982 | 154,098 | ||||||||
- Notes discounted and purchased |
251,332 | 289,001 | 254,670 | 200,061 | ||||||||
- Secured with mortgages |
401,064 | 415,924 | 429,951 | 415,885 | ||||||||
- Car secured loans |
25,943 | 14,962 | 8,391 | 5,390 | ||||||||
- Credit cards |
252,511 | 231,348 | 238,887 | 192,099 | ||||||||
- Loans to financial sector |
41,285 | 30,023 | 9,938 | 77,558 | ||||||||
- Loans to public sector |
3,983,624 | 3,880,252 | 3,938,754 | 3,934,954 | ||||||||
- Other |
1,146,470 | 1,055,530 | 746,646 | 956,954 | ||||||||
Less: Unaccrued interest |
(924 | ) | (620 | ) | (550 | ) | (298 | ) | ||||
Plus: Interest & FX differences receivable |
2,129,581 | 2,216,307 | 2,140,227 | 2,016,131 | ||||||||
Less: Allowance for loan losses |
(121,964 | ) | (135,196 | ) | (131,464 | ) | (356,156 | ) | ||||
Other banking receivables |
958,954 | 785,493 | 783,061 | 1,589,511 | ||||||||
- Compensatory Bond |
| 109,125 | 110,282 | 250,149 | ||||||||
- Repurchase agreements |
359,341 | | | 557,270 | ||||||||
- Unlisted private securities |
99,691 | 106,489 | 157,605 | 223,830 | ||||||||
- Unlisted Private securities :Trustees |
18,043 | 25,562 | 28,545 | 76,496 | ||||||||
- Other banking receivables |
488,657 | 549,490 | 501,796 | 551,346 | ||||||||
- Less: provisions |
(6,778 | ) | (5,173 | ) | (15,167 | ) | (69,580 | ) | ||||
Investments in other companies |
253,620 | 248,649 | 241,212 | 229,030 | ||||||||
Intangible assets |
811,500 | 839,095 | 871,003 | 905,616 | ||||||||
- Goodwill |
32,088 | 33,745 | 35,403 | 38,718 | ||||||||
- Organization and development charges |
40,123 | 42,186 | 46,026 | 55,341 | ||||||||
- Assets related to legal injunctions |
739,289 | 763,164 | 789,574 | 811,557 | ||||||||
Other assets |
575,996 | 566,006 | 579,890 | 794,602 | ||||||||
Total assets |
14,535,989 | 13,820,645 | 13,367,824 | 15,221,309 | ||||||||
12/31/04 |
09/30/04 |
06/30/04 |
12/31/03 |
|||||||||
LIABILITIES: |
||||||||||||
Deposits |
9,210,353 | 8,567,442 | 8,318,128 | 8,191,187 | ||||||||
- Demand deposits |
1,675,233 | 2,522,467 | 2,400,939 | 2,263,190 | ||||||||
- Saving accounts |
2,395,535 | 1,518,426 | 1,512,457 | 1,167,438 | ||||||||
- Time deposits |
4,390,587 | 3,714,010 | 3,300,596 | 3,552,037 | ||||||||
- Rescheduled deposits - CEDROS |
458,837 | 543,781 | 918,609 | 1,043,539 | ||||||||
- Other deposits |
290,161 | 268,758 | 185,527 | 164,983 | ||||||||
Other banking Liabilities |
3,258,044 | 3,422,701 | 3,250,603 | 4,565,902 | ||||||||
Other provisions |
236,690 | 385,642 | 345,513 | 467,870 | ||||||||
- Other contingencies |
232,776 | 375,643 | 332,693 | 423,926 | ||||||||
- Guarantees |
3,914 | 9,999 | 12,820 | 43,944 | ||||||||
Subordinated debt |
60,307 | 69,334 | 69,246 | 68,077 | ||||||||
Other liabilities |
131,066 | 70,089 | 65,942 | 156,787 | ||||||||
Minority interest |
21,077 | 20,261 | 20,222 | 21,089 | ||||||||
Total liabilities |
12,917,537 | 12,535,469 | 12,069,654 | 13,470,912 | ||||||||
Total stockholders equity |
1,618,452 | 1,285,176 | 1,298,170 | 1,750,397 | ||||||||
Total liabilities + stockholders equity |
14,535,989 | 13,820,645 | 13,367,824 | 15,221,309 | ||||||||
- 14 -
BBVA Banco Francés S.A. and subsidiaries (Grupo Consolidar: by the equity method)
(in thousands of pesos) | 12/31/04 |
09/30/04 |
06/30/04 |
12/31/03 |
||||||||
INCOME STATEMENT |
||||||||||||
Financial income |
242,043 | 257,063 | 284,145 | 180,350 | ||||||||
- Interest on Cash and Due from Banks |
4,388 | 3,079 | 2,618 | 2,784 | ||||||||
- Interest on Loans Granted to the Financial Sec. |
711 | 309 | 94 | 167 | ||||||||
- Interest on Overdraft |
7,016 | 7,006 | 5,810 | 5,307 | ||||||||
- Interest on Notes discounted and purchased |
3,315 | 3,909 | 1,844 | (79 | ) | |||||||
- Interest on mortgages |
10,882 | 11,116 | 11,425 | 11,434 | ||||||||
- Interest on car secured loans |
543 | 382 | 258 | 159 | ||||||||
- Interest on Credit Card Loans |
4,585 | 3,852 | 4,197 | 4,348 | ||||||||
- Interest on Other Loans |
26,887 | 24,755 | 22,914 | 24,554 | ||||||||
- Income from securities and short term investments |
18,191 | 9,888 | 9,415 | (21,267 | ) | |||||||
- Interest on Government guaranteed loans Decreet1387/01 |
56,005 | 56,777 | 54,855 | 58,889 | ||||||||
- From Other Banking receivables |
1,963 | 1,857 | 1,661 | 1,626 | ||||||||
- CER |
82,821 | 112,415 | 129,059 | 58,480 | ||||||||
- CVS |
41 | (9 | ) | 13,190 | 44,667 | |||||||
- Foreign exchange difference |
18,752 | 19,553 | 26,235 | | ||||||||
- Other |
5,943 | 2,174 | 570 | (10,719 | ) | |||||||
Financial expenses |
(106,047 | ) | (123,872 | ) | (127,654 | ) | (108,503 | ) | ||||
- Interest on Current Account Deposits |
(5,987 | ) | (6,200 | ) | (5,159 | ) | (4,014 | ) | ||||
- Interest on Saving Account Deposits |
(751 | ) | (721 | ) | (911 | ) | (1,300 | ) | ||||
- Interest on Time Deposits |
(32,692 | ) | (25,281 | ) | (23,016 | ) | (40,071 | ) | ||||
- Interest on Other Banking Liabilities |
(5,107 | ) | (6,605 | ) | (4,993 | ) | (18,176 | ) | ||||
- Other interests (includes Central Bank) |
(18,670 | ) | (23,675 | ) | (24,324 | ) | (26,001 | ) | ||||
- Mandatory contributions and taxes on interest income |
(8,401 | ) | (9,960 | ) | (12,059 | ) | (13,282 | ) | ||||
- CER |
(34,217 | ) | (51,193 | ) | (56,611 | ) | (29,606 | ) | ||||
- Foreign exchange difference |
| | | 35,093 | ||||||||
- Other |
(222 | ) | (237 | ) | (581 | ) | (11,146 | ) | ||||
Net financial income |
135,996 | 133,191 | 156,491 | 71,847 | ||||||||
Provision for loan losses |
(20,400 | ) | (11,178 | ) | (1,671 | ) | 8,166 | |||||
Income from services, net of other operating expenses |
81,584 | 75,325 | 70,336 | 64,098 | ||||||||
Administrative expenses |
(139,828 | ) | (122,142 | ) | (118,926 | ) | (141,005 | ) | ||||
- Personnel expenses |
(76,021 | ) | (59,475 | ) | (57,375 | ) | (67,855 | ) | ||||
- Directors and Syndics Fees |
(56 | ) | (68 | ) | (68 | ) | (57 | ) | ||||
- Other Fees |
(6,571 | ) | (7,331 | ) | (5,618 | ) | (6,621 | ) | ||||
- Advertising and Publicity |
(6,894 | ) | (6,483 | ) | (6,172 | ) | (5,595 | ) | ||||
- Taxes other than income tax |
(3,948 | ) | (3,500 | ) | (3,709 | ) | (4,135 | ) | ||||
- Other Operating Expenses |
(36,890 | ) | (35,923 | ) | (36,904 | ) | (47,903 | ) | ||||
- Other |
(9,448 | ) | (9,362 | ) | (9,080 | ) | (8,839 | ) | ||||
Income (loss) from equity investments |
8,341 | 7,438 | 8,197 | (20,855 | ) | |||||||
Net Other income |
(141,126 | ) | (149,874 | ) | (117,238 | ) | (63,493 | ) | ||||
Income (loss) from minority interest |
(1,148 | ) | (40 | ) | 129 | 2,146 | ||||||
Income before tax |
(76,581 | ) | (67,280 | ) | (2,682 | ) | (79,096 | ) | ||||
Income tax |
49,432 | 54,286 | (11,514 | ) | (507 | ) | ||||||
Net income |
(27,149 | ) | (12,994 | ) | (14,196 | ) | (79,603 | ) | ||||
- 15 -
BBVA Banco Francés S.A. and subsidiaries (Grupo Consolidar: by the equity method)
(in thousands of pesos) | 12/31/04 |
09/30/04 |
06/30/04 |
12/31/03 |
||||||||
ASSETS : |
||||||||||||
Cash and due from banks |
1,633,821 | 1,722,380 | 1,403,253 | 1,398,612 | ||||||||
Government and Private Securities |
1,920,901 | 1,340,456 | 1,551,973 | 1,910,429 | ||||||||
- Investment account |
729,084 | 795,878 | 799,069 | 529,532 | ||||||||
- Trading account (listed securities) |
751,581 | 97,236 | 23,674 | 313,011 | ||||||||
- Reverse repurchase agreements w/Central Bank |
| | | | ||||||||
- Unlisted |
492,902 | 486,098 | 780,767 | 1,066,840 | ||||||||
- Listed Private Securities |
2,659 | 16,726 | 3,553 | 1,046 | ||||||||
Less: Allowances |
(55,325 | ) | (55,482 | ) | (55,090 | ) | | |||||
Loans |
8,381,197 | 8,318,566 | 7,937,432 | 5,939,446 | ||||||||
- Advances |
272,275 | 321,035 | 301,982 | 154,039 | ||||||||
- Notes discounted and purchased |
251,332 | 289,001 | 254,670 | 199,700 | ||||||||
- Secured with mortgages |
401,064 | 415,924 | 429,951 | 415,870 | ||||||||
- Car secured loans |
25,943 | 14,962 | 8,391 | 4,856 | ||||||||
- Credit cards |
252,511 | 231,348 | 238,887 | 192,029 | ||||||||
- Loans to financial sector |
41,285 | 30,023 | 9,938 | 37,434 | ||||||||
- Loans to public sector |
3,983,624 | 3,880,252 | 3,938,754 | 2,897,351 | ||||||||
- Other |
1,146,470 | 1,055,530 | 746,646 | 956,954 | ||||||||
Less: Unaccrued interest |
(924 | ) | (620 | ) | (550 | ) | (298 | ) | ||||
Plus: Interest & FX differences receivable |
2,129,581 | 2,216,307 | 2,140,227 | 1,437,667 | ||||||||
Less: Allowance for loan losses |
(121,964 | ) | (135,196 | ) | (131,464 | ) | (356,156 | ) | ||||
Other banking receivables |
958,954 | 785,493 | 783,061 | 1,539,153 | ||||||||
- Compensatory Bond |
| 109,125 | 110,282 | 250,149 | ||||||||
- Repurchase agreements |
359,341 | | | 557,270 | ||||||||
- Unlisted private securities |
99,691 | 106,489 | 157,605 | 223,830 | ||||||||
- Unlisted Private securities :Trustees |
18,043 | 25,562 | 28,545 | 76,496 | ||||||||
- Other banking receivables |
488,657 | 549,490 | 501,796 | 500,988 | ||||||||
- Less: provisions |
(6,778 | ) | (5,173 | ) | (15,167 | ) | (69,580 | ) | ||||
Investments in other companies |
253,620 | 248,649 | 241,212 | 1,666,373 | ||||||||
Intangible assets |
811,500 | 839,095 | 871,003 | 905,616 | ||||||||
- Goodwill |
32,088 | 33,745 | 35,403 | 38,718 | ||||||||
- Organization and development charges |
40,123 | 42,186 | 46,026 | 55,341 | ||||||||
- Assets related to legal injunctions |
739,289 | 763,164 | 789,574 | 811,557 | ||||||||
Other assets |
575,996 | 566,006 | 579,890 | 792,788 | ||||||||
Total assets |
14,535,989 | 13,820,645 | 13,367,824 | 14,152,417 | ||||||||
12/31/04 |
09/30/04 |
06/30/04 |
12/31/03 |
|||||||||
LIABILITIES: |
||||||||||||
Deposits |
9,210,353 | 8,567,442 | 8,318,128 | 7,659,108 | ||||||||
- Demand deposits |
1,675,233 | 2,522,467 | 2,400,939 | 2,004,198 | ||||||||
- Saving accounts |
2,395,535 | 1,518,426 | 1,512,457 | 1,167,438 | ||||||||
- Time deposits |
4,390,587 | 3,714,010 | 3,300,596 | 3,280,797 | ||||||||
- Rescheduled deposits - CEDROS |
458,837 | 543,781 | 918,609 | 1,043,539 | ||||||||
- Other deposits |
290,161 | 268,758 | 185,527 | 163,136 | ||||||||
Other banking Liabilities |
3,258,044 | 3,422,701 | 3,250,603 | 4,030,824 | ||||||||
Other provisions |
236,690 | 385,642 | 345,513 | 467,710 | ||||||||
- Other contingencies |
232,776 | 375,643 | 332,693 | 423,766 | ||||||||
- Guarantees |
3,914 | 9,999 | 12,820 | 43,944 | ||||||||
Subordinated debt |
60,307 | 69,334 | 69,246 | 68,077 | ||||||||
Other liabilities |
131,066 | 70,089 | 65,942 | 155,212 | ||||||||
Minority interest |
21,077 | 20,261 | 20,222 | 21,089 | ||||||||
Total liabilities |
12,917,537 | 12,535,469 | 12,069,654 | 12,402,020 | ||||||||
Total stockholders equity |
1,618,452 | 1,285,176 | 1,298,170 | 1,750,397 | ||||||||
Total liabilities + stockholders equity |
14,535,989 | 13,820,645 | 13,367,824 | 14,152,417 | ||||||||
- 16 -
BBVA Banco Francés S.A. and subsidiaries (Grupo Consolidar consolidated on a line by line basis)
(in thousands of pesos) | 12/31/04 |
09/30/04 |
06/30/04 |
12/31/03 |
||||||||
ASSETS |
||||||||||||
Cash and due from banks |
1,666,617 | 1,776,734 | 1,438,298 | 1,639,154 | ||||||||
Government Securities |
2,476,948 | 1,887,158 | 2,188,583 | 3,042,451 | ||||||||
Loans |
9,268,723 | 9,186,255 | 8,678,493 | 8,336,352 | ||||||||
Other banking receivables |
975,241 | 794,525 | 825,892 | 1,611,034 | ||||||||
Investments in other companies |
47,540 | 45,324 | 45,240 | 42,630 | ||||||||
Other assets |
1,533,015 | 1,560,942 | 1,598,821 | 1,864,638 | ||||||||
TOTAL ASSETS |
15,968,084 | 15,250,938 | 14,775,327 | 16,536,259 | ||||||||
12/31/04 |
09/30/04 |
06/30/04 |
12/31/03 |
|||||||||
LIABILITIES |
||||||||||||
Deposits |
8,993,780 | 8,398,805 | 8,164,745 | 8,078,216 | ||||||||
Other banking liabilities |
3,274,387 | 3,426,752 | 3,269,172 | 4,592,484 | ||||||||
Other liabilities |
1,909,187 | 1,969,630 | 1,877,084 | 1,954,129 | ||||||||
Minority interest |
172,278 | 170,575 | 166,156 | 161,033 | ||||||||
TOTAL LIABILITIES |
14,349,632 | 13,965,762 | 13,477,157 | 14,785,862 | ||||||||
TOTAL STOCKHOLDERS EQUITY |
1,618,452 | 1,285,176 | 1,298,170 | 1,750,397 | ||||||||
STOCKHOLDERS EQUITY + LIABILITIES |
15,968,084 | 15,250,938 | 14,775,327 | 16,536,259 | ||||||||
12/31/04 |
09/30/04 |
06/30/04 |
12/31/03 |
|||||||||
NET INCOME |
||||||||||||
Net Financial Income |
190,074 | 187,514 | 192,879 | 119,982 | ||||||||
Provision for loan losses |
(20,400 | ) | (11,178 | ) | (1,671 | ) | 8,166 | |||||
Net Income from Services |
137,279 | 138,447 | 126,561 | 111,541 | ||||||||
Administrative expenses |
(190,581 | ) | (168,267 | ) | (159,227 | ) | (184,218 | ) | ||||
Net Other Income |
(187,812 | ) | (209,610 | ) | (156,018 | ) | (143,693 | ) | ||||
Income (loss) from minority interest |
(3,671 | ) | (3,638 | ) | (3,833 | ) | 11,108 | |||||
Income before tax |
(75,111 | ) | (66,732 | ) | (1,309 | ) | (77,114 | ) | ||||
Income tax |
47,962 | 53,738 | (12,887 | ) | (2,489 | ) | ||||||
Net income |
(27,149 | ) | (12,994 | ) | (14,196 | ) | (79,603 | ) | ||||
- 17 -
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: March 7, 2005 | By: | /s/ MARCELO G. CANESTRI | ||||||
Name: |
Marcelo G.Canestri | |||||||
Title: |
Chief Financial Officer |