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 May 2008
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
Item |
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1. | Press release entitled BBVA Banco Francés reports first quarter earnings for fiscal year 2008 |
CONTACT: | ||
Daniel Sandigliano | ||
Investor Relations | ||
Phone: (5411) 4341 5036 | ||
E-mail: daniel.sandigliano@bancofrances.com.ar | ||
Cecilia Acuña | ||
Investor Relations | ||
Phone: (5411) 4348 0000 ext. 25384 | ||
E-mail: cecilia.acuna@bancofrances.com.ar |
May 9, 2008
BBVA BANCO FRANCES (NYSE; BFR.N; BCBA: FRA.BA; LATIBEX: BFR.LA) REPORTS CONSOLIDATED FIRST QUARTER EARNINGS FOR FISCAL YEAR 2008
First Quarter Executive Summary
| Net Income for the first quarter of 2008 reached Ps. 74.3 million, an 8.6% increase with respect to Ps. 68.4 million on the same quarter of 2007 and much more than the Ps. 10.6 million in the last quarter of the previous year. The sustained growth in the private sector loan portfolio continued bolstering the private financial margin, while higher activity in the transactional business reflected a 26.5% annual growth in net income from services. |
| Private sector loans portfolio continued expanding at a solid pace, posting a 6.2% increase in the first quarter of the year, and a 45.5% advance during the last twelve months. Car and personal loans led the expansion in the retail segment, while in the middle-market segment advances and commercial loans experienced a higher growth, especially those related to foreign trade operations. |
| Total public sector exposure fell by 16.5% in the first quarter of 2008, due to the amortizations of capital derived from maturities in guaranteed loans and bills issued by the Central Bank and by 27.9% in comparison with the amount registered as of March 31, 2007. Public sector exposure to the National Treasury represented 13.1% of the Banks total assets as of March 31, 2008, while it represented 15.8% one year earlier. |
| Regarding asset quality, BBVA Banco Francés maintained its indicators well below the systems average. As of March 31, 2008, the non-performing ratio represented only 0.63% of total financing, while the coverage ratio of non-performing loans with provisions reached 298.8%. |
| In terms of deposits, balances in current and savings accounts posted solid advances during the first quater of 2008, with increases of 8.2% and 2.7% respectively. This trend allows the Bank to reduce its average cost of funding compared to prior quarters. |
| In accordance with the resolutions approved by the Ordinary and Extraordinary Shareholders Meeting, held on March 28, 2008, during April 2008 BBVA Banco Francés paid a cash dividend of Ps. 164 million, corresponding to the fiscal year ended December 31, 2007. |
| As of March 31, 2008, total stockholders equity amounted to Ps. 1,977.4 million, representing an excess of Ps. 688.8 million over minimum local capital requirements, under Central Banks rules. Such excess allows the Bank to maintain growth in private sector financing. |
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First quarter of fiscal year 2008
In the first quarter of 2008, economic activity continued to expand. According to the EMAE (Monthly Estimator of Economic Activity), the economy grew by 9.4% yoy on average in January-February, slightly above the 9.1% recorded in the last quarter of 2007. In March, however, both construction and industrial activity fell compared to February due to a 20 day farmers strike and changes in holiday periods. In spite of this, manufacturing rose by 6.8% yoy in the first quarter.
Tax receipts continued to outperform during the quarter, rising on average by 41% yoy driven by the 110% increase in export duties, which reflect both the hike in international commodity prices and the higher tax rates now being applied on these exports. The primary fiscal surplus of the National Public Sector rose to Ps. 8.8 billion, a 74% improvement compared to the same period of 2007, both due to higher income and slower expenditure growth. Primary fiscal spending, which had increased by 42% in the last quarter of 2007, grew by 35% in the first quarter of 2008.
Inflation, as measured by the CPI index of the Greater Buenos Aires area (which is used to calculate CER adjustment for sovereign bonds) averaged 8.8% yoy during this period.
In spite of strong import growth, the trade surplus continued to improve as grain and oilseed prices (60% of Argentinas exports) reached unprecedented highs in early March 2008. The trade balance accumulated a surplus of USD 2.95 billion, almost 50% higher than first quarter 2007.
In spite of the ample external surplus, the Central Bank only purchased USD 2.5 billion in the FX market. International reserves, however reached USD 50.4 billion at the end of March, an increase of USD 4.2 billion during the quarter due to purchases by Banco de la Nación Argentina on behalf of the Treasury. The Exchange rate (referencia BCRA) remained fairly stable, closing at Ps. 3.165 per USD at the end of March, only 1.5 cents above end 2007 levels.
During the first quarter, the international crisis did not have a deep impact on domestic financial variables. As a result of Central Bank purchases in the FX market, abundant liquidity led to a substantial fall in interest rates. As a consequence, Badlar rates at private banks fell from 13.6% in December 2007 to 8.5%.
During the last twelve months the stock of Lebacs and Nobacs grew 14.1%, while private sector deposits increased strongly by 24.9% on average and loans to the private sector, in pesos and in foreign currency increased 40.3%.
The Business
Ranking among the leading private banks in Argentina, BBVA Banco Francés is one of the main providers of financial and non-financial services to the different market segments. During the first quarter of 2008, the Bank opened three new branch offices in the country, with the goal of reinforcing its presence in the areas with higher economic growth. With this, the Banks nationwide branch network totaled 266 branches, including 235 retail branches, 27 branches specialized in middle-market companies and 4 corporate and institutional branches.
During the year 2008, BBVA Banco Francés continues focused in expanding its financing activity to the private sector, with special emphasis in the retail and middle-market business segments. Private sector financings increased at a solid pace during the first three months of the year. In the consumer segment, Car and personal loans led the expansion, while advances and commercial loans, especially those related to foreign trade operations lead in the middle-market business segment.
Furthermore, the sustained growth in commercial activity was reflected in the continued increase of income from services. The consolidation in our transactional business, including means of payment management (especially electronic means), insurances, openings of new accounts, and credit and debit cards transactions, had an important positive impact in operating results.
Presentation of Financial Information
| All foreign currency transactions accounted for at a free exchange rate as of March 31, 2008 have been translated into pesos at the reference exchange rate of Ps. 3.1653 per U.S. dollar, published by the Argentine Central Bank. |
- 2 -
| This press release contains unaudited information that consolidates all of the banking activities of BBVA Banco Francés and its subsidiaries on a line-by-line basis. The Banks interest in the Consolidar Group is booked 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. |
| It is important to highlight the fact that information contained in this release may differ from that released by BBVA Group for Argentina, which is elaborated according to Spanish accounting standards. |
FIRST QUARTER EARNINGS
Condensed Income Statement (1) in thousands of pesos except income per share, income per ADS and percentages |
Quarter ended | % Change Qtr ended 03/31/08 vs. Qtr ended |
|||||||||||||
03/31/08 | 12/31/07 | 03/31/07 | 12/31/07 | 03/31/07 | |||||||||||
Net Financial Income |
259,535 | 237,276 | 290,375 | 9.38 | % | -10.62 | % | ||||||||
Provision for loan losses |
(20,173 | ) | (25,221 | ) | (9,626 | ) | -20.02 | % | 109.57 | % | |||||
Net income from services |
164,065 | 156,607 | 129,693 | 4.76 | % | 26.50 | % | ||||||||
Administrative expenses |
(257,462 | ) | (268,675 | ) | (185,052 | ) | -4.17 | % | 39.13 | % | |||||
Operating income |
145,965 | 99,987 | 225,390 | 45.98 | % | -35.24 | % | ||||||||
Income (loss) from equity investments |
41,367 | 18,658 | 17,607 | 121.71 | % | 134.95 | % | ||||||||
Income (Loss) from Minority interest |
253 | 1,157 | (643 | ) | -78.13 | % | -139.35 | % | |||||||
Other Income/Expenses |
(110,962 | ) | (106,082 | ) | (171,547 | ) | 4.60 | % | -35.32 | % | |||||
Income tax and Minimum Presumed Tax |
(2,315 | ) | (3,162 | ) | (2,367 | ) | -26.79 | % | 2.20 | % | |||||
Net income for the period |
74,308 | 10,558 | 68,440 | 603.81 | % | 8.57 | % | ||||||||
Net income per share (2) |
0.16 | 0.02 | 0.15 | 603.81 | % | 8.57 | % | ||||||||
Net income per ADS (3) |
0.47 | 0.07 | 0.44 | 603.81 | % | 8.57 | % |
(1) | Exchange rate: 3.1653 Ps. = 1 US$ |
(2) | Assumes 471,361,306 ordinary shares outstanding. |
(3) | Each ADS represents three ordinary shares. |
Net Income for the first quarter of 2008 was Ps. 74.3 million, compared to Ps. 10.6 million and Ps. 68.4 million recorded in the previous quarter and in the first quarter of 2007, respectively. The increase in net income against last years same quarter is explained mainly by the advance in net income from services together with lower exposure to other income/expenses, which more than offset higher administrative expenses. On the other hand, net income improved substantially compared to the previous quarter with higher income from financings and services with a reduction in expenses.
The variation in the Net Financial Income is explained mainly by the sustained growth in loans to the private sector from lower results from government and Private securities. The continued expansion in the activity level enhanced allowed for an increase in Net Income from Services, which ended the first quarter of the year at Ps. 164.1 million, evidencing increases of 4.8% and 26.5% against the previous quarter and last years same period, respectively.
Administrative Expenses totaled Ps. 257.5 million during the first quarter of 2008, decreasing by 4.2% against the previous quarter, but increasing by 39.1% compared to the first quarter of 2007.
Finally, during the first quarter of 2008, the last amortization of the legal injunctions loss was recorded. It is important to mention that this amortization is in accordance with the Central Banks regulations and does not imply that the Bank waives its right to demand future compensation.
- 3 -
in thousands of pesos except percentages |
Quarter ended | % Change Qtr ended 03/31/08 vs. Qtr ended |
|||||||||||||
03/31/08 | 12/31/07 | 03/31/07 | 12/31/07 | 03/31/07 | |||||||||||
Return on Average Assets (1) |
1.51 | % | 0.22 | % | 1.62 | % | 581.23 | % | -6.82 | % | |||||
Return on Average Shareholders Equity (1) |
14.74 | % | 2.05 | % | 13.77 | % | 618.22 | % | 7.05 | % | |||||
Net fee Income as a % of Operating Income |
38.73 | % | 39.76 | % | 30.87 | % | -2.59 | % | 25.45 | % | |||||
Net fee Income as a % of Administrative Expenses |
63.72 | % | 58.29 | % | 70.08 | % | 9.32 | % | -9.08 | % | |||||
Adm. Expenses as a % of Operating Income (2) |
60.78 | % | 68.21 | % | 44.05 | % | -10.90 | % | 37.97 | % |
(1) | Annualized. |
(2) | Adm.Expenses / (Net financial income + Net income from services) |
Net Financial Income
During the first quarter of 2008, Net Financial Income reached Ps. 259.5 million, reflecting a 9.4% increase with respect to the previous quarter and a decrease by 10.6% compared to the first quarter of 2007, when Net Financial Income was Ps. 237.3 million and Ps. 290.4 million, respectively.
The increase in Net Financial Income, as compared with the prior quarter, is explained by the continued improvement of the private margin, a better result from CER long position of the Bank, due to the increase of this index. On the other hand, income from securities and short term investments decreased from previous quarter, due to lower holdings of instruments issued by the Central Bank and a valuation adjustment in the public sector portfolio.
The reduction in Net Financial Income when compared with the same period from the previous year reflects the decrease of income from public securities. It is important to mention that the amounts posted for the March 2007 quarter included a gain of Ps. 37.9 million from the sale of guarantee loans, whereas during the first quarter of 2008, an adjustment in the valuation of public sector portfolio was recorded, and such adjustment represented a loss of Ps, 60.2 million which exceeds the amount required by the regulating authority (Com. A 3911).
Public Sector Exposure
in thousands of pesos except percentages |
Quarter ended | % Change Qtr ended 03/31/08 vs. Qtr ended |
|||||||||||||
03/31/08 | 12/31/07 | 03/31/07 | 12/31/07 | 03/31/07 | |||||||||||
Public Sector - National Government |
2,610,302 | 2,724,883 | 2,697,053 | -4.21 | % | -3.22 | % | ||||||||
- Loans to the Federal government & Provinces |
1,359,054 | 1,415,763 | 1,508,513 | -4.01 | % | -9.91 | % | ||||||||
- Total bond portfolio |
1,181,327 | 1,174,701 | 1,022,473 | 0.56 | % | 15.54 | % | ||||||||
Compensatory bond |
914,461 | 903,897 | 883,190 | 1.17 | % | 3.54 | % | ||||||||
Available for sale |
246,502 | 239,513 | | 2.92 | % | | |||||||||
Other government bonds |
20,363 | 31,291 | 139,284 | -34.92 | % | -85.38 | % | ||||||||
- Trustees |
201,342 | 195,374 | 181,210 | 3.05 | % | 11.11 | % | ||||||||
- Allowances |
(131,421 | ) | (60,955 | ) | (15,143 | ) | 115.60 | % | 767.87 | % | |||||
Bills and Notes from Central Bank (*) |
1,624,095 | 2,344,567 | 3,180,788 | -30.73 | % | -48.94 | % | ||||||||
Total exposure to the Public Sector |
4,234,397 | 5,069,450 | 5,877,841 | -16.47 | % | -27.96 | % |
(*) | Including repos with the BCRA |
- 4 -
During this first quarter of 2008, the exposure to the public sector was decreased as a result of capital amortizations derived from maturing guarantee loans and bills issued by the Central Bank. On the other hand, this reduction was partially offset by an increase in both guaranteed loans and Bogar 2020 holdings, arising from their CER index adjustment.
In addition, during the third quarter of last year, part of our public assets portfolio, mainly bills and notes issued by Central Bank, had been classified in the Available for Sale category. During this quarter, the valuation difference of those assets improved by Ps. 10.2 million when compared to the loss recorded as of December 31, 2007.
On March 31, 2008, public sector exposure to the National Government Treasury represented 13.1% of total assets, down from a 15.8% one year before. This reduction is in line with the Banks strategy to encourage private sector activity, reducing exposure to the public sector National Treasury.
In the same way, the Bank reduced its holdings of Bills and Notes issued by the Central Bank as a consequence of capital amortizations and trades. The holdings of Bills and Notes from the Central Bank represented 8.2% of total assets as of March 31, 2008.
Total loan portfolio
The private sector loan portfolio grew by Ps. 560 million during the first quarter of 2008, totaling Ps. 9,561 million. This represents a 6.2% increase in private financings with respect to the previous quarter and an increase of 45.5% compared to the first quarter of 2007, when loans to the private sector were Ps. 6,570 million.
During the first quarter of 2008, the Bank continued to focus on the retail and middle market business segment. In the retail segment, personal loans increased by nearly Ps. 700 million or 88.5% from during the last twelve months, and by Ps. 151 million or 11.3% during the quarter. Similarly, car loans, mortgages and credit cards increased by 177.4% (Ps. 200 million), 64.7% (Ps. 332 million) and 55.2% (Ps. 306 million), respectively, as compared to the first quarter of 2007. The growth in car loans during this quarter was favored by seasonal factors, when there is a tendency to purchase cars at the beginning of the year.
In the middle market business segment, discounted notes and other loans, mainly exports operations, grew by 83.2% (Ps. 693 million) and 7.8% (Ps. 182 million), when compared against the first quarter and the forth quarter of 2007,respectively. These increases are evidence of the sustained growth being experienced by the small and middle market business segment. As for the large corporate segment, Bank maintains its leading position with an annual increase of 29.1% (Ps. 347 million)in advances and corporate loans.
The relation between private loans and securities over total private and public sector loans and securities, excluding the Central Banks portfolio, increased due to the sustained expansion in the private sector loan portfolio and the reduction in the public sector exposure. Such relation reached a 79.1% as of March 31, 2008, higher than the 77.4% registered on December 31, 2007, and the 62.1% registered on March 31, 2007.
The table below shows the composition of the loan portfolio in quarter balances:
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in thousands of pesos except percentages |
Quarter ended | % Change Qtr ended 03/31/08 vs. Qtr ended |
|||||||||||||
03/31/08 | 12/31/07 | 03/31/07 | 12/31/07 | 03/31/07 | |||||||||||
Private & Financial sector loans |
9,561,341 | 9,002,814 | 6,570,427 | 6.20 | % | 45.52 | % | ||||||||
Advances |
1,541,802 | 1,326,474 | 1,194,299 | 16.23 | % | 29.10 | % | ||||||||
Discounted and purchased notes |
1,526,031 | 1,430,787 | 832,855 | 6.66 | % | 83.23 | % | ||||||||
Consumer Mortgages |
845,357 | 772,036 | 513,405 | 9.50 | % | 64.66 | % | ||||||||
Car secured loans |
310,591 | 253,130 | 111,974 | 22.70 | % | 177.38 | % | ||||||||
Personal loans |
1,487,916 | 1,337,179 | 789,168 | 11.27 | % | 88.54 | % | ||||||||
Credit cards |
858,656 | 802,647 | 553,122 | 6.98 | % | 55.24 | % | ||||||||
Loans to financial sector |
561,042 | 487,039 | 338,328 | 15.19 | % | 65.83 | % | ||||||||
Other loans |
2,512,168 | 2,666,750 | 2,330,056 | -5.80 | % | 7.82 | % | ||||||||
Unaccrued interest |
(12,284 | ) | (13,756 | ) | (6,045 | ) | -10.70 | % | 103.21 | % | |||||
Adjustment and accrued interest & exchange differences receivable |
140,312 | 139,256 | 84,496 | 0.76 | % | 66.06 | % | ||||||||
Less: Allowance for loan losses |
(210,250 | ) | (198,728 | ) | (171,231 | ) | 5.80 | % | 22.79 | % | |||||
Loans to public sector |
1,359,054 | 1,415,763 | 1,508,513 | -4.01 | % | -9.91 | % | ||||||||
Loans to public sector |
625,685 | 669,767 | 751,237 | -6.58 | % | -16.71 | % | ||||||||
Adjustment and accrued interest & exchange differences receivable |
733,369 | 745,996 | 757,276 | -1.69 | % | -3.16 | % | ||||||||
Net total loans |
10,920,395 | 10,418,577 | 8,078,940 | 4.82 | % | 35.17 | % |
Government and Private Securities
The table below shows the government and private securities portfolio as of March 31, 2008, including repurchase agreement transactions.
in thousands of pesos except percentages |
Quarter ended | % Change Qtr ended 03/31/08 vs. Qtr ended |
|||||||||||||
03/31/08 | 12/31/07 | 03/31/07 | 12/31/07 | 03/31/07 | |||||||||||
Holdings |
2,779,954 | 3,573,524 | 4,281,774 | -22.21 | % | -35.07 | % | ||||||||
Trading |
901,272 | 1,242,787 | 3,244,399 | -27.48 | % | -72.22 | % | ||||||||
Unlisted Government Securities |
914,461 | 903,897 | 883,190 | 1.17 | % | 3.54 | % | ||||||||
Available for Sale |
989,689 | 1,372,584 | | -27.90 | % | | |||||||||
Other fixed income securities |
105,953 | 115,211 | 169,328 | -8.04 | % | -37.43 | % | ||||||||
Allowances |
(131,421 | ) | (60,955 | ) | (15,143 | ) | 115.60 | % | 767.87 | % | |||||
Repurchase Agreements |
(119,785 | ) | (165,389 | ) | | -27.57 | % | | |||||||
Trading (Reverse repo) |
| | | | | ||||||||||
Trading (Reverse repo) |
(119,785 | ) | (165,389 | ) | | -27.57 | % | | |||||||
Net Position |
2,660,169 | 3,408,135 | 4,281,774 | -21.95 | % | -37.87 | % | ||||||||
Trading |
781,487 | 1,077,398 | 3,244,399 | -27.47 | % | -75.91 | % | ||||||||
Unlisted Government Securities |
914,461 | 903,897 | 883,190 | 1.17 | % | 3.54 | % | ||||||||
Available for Sale |
989,689 | 1,372,584 | | -27.90 | % | | |||||||||
Other fixed income securities |
105,953 | 115,211 | 169,328 | -8.04 | % | -37.43 | % | ||||||||
Allowances |
(131,421 | ) | (60,955 | ) | (15,143 | ) | 115.60 | % | 767.87 | % |
Net Position in other fixed income securities as of March 31st, 2008 includes Ps. 105.9 million of private bonds
The decline in government and private securities net position was mainly due to principal amortizations and sales of bills and notes issued by the Central Bank. Similarly, during the first quarter of 2008, previsions totaling Ps. 60.2 million were created due to the adjustment in the value of the public sector portfolio.
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Income from Securities and Short-Term Investments
Income from securities and short-term investments, during the first three months of the year, reflected the above mentioned adjustment in the valuation of public sector assets. Furthermore, the Available for sale category posted a 44.9% decline, due to a lower volume from maturities and sales. On the other hand, instruments issued by the Central Bank reflected returns similar to those in the previous quarter but lower from the same period in the prior year due to a lower volume.
Finally, the bank showed an increase in the CER adjustment due to a higher index variation in the last quarter.
in thousands of pesos except percentages |
Quarter ended | % Change Qtr ended 03/31/08 vs. Qtr ended |
||||||||||||
03/31/08 | 12/31/07 | 03/31/07 | 12/31/07 | 03/31/07 | ||||||||||
Income from securities and short-term investments |
20,573 | 61,320 | 109,193 | -66.45 | % | -81.16 | % | |||||||
Trading account |
13,025 | 8,730 | 6,877 | 49.20 | % | 89.39 | % | |||||||
Available for sale |
26,323 | 47,819 | | -44.95 | % | 100.00 | % | |||||||
Bills and Notes from the Central Bank |
42,354 | 43,128 | 93,295 | 1.79 | % | -54.60 | % | |||||||
Investment account - Compensatory bond |
| | 889 | 0.00 | % | -100.00 | % | |||||||
Other fixed income securities |
(61,129 | ) | (38,356 | ) | 8,131 | 59.37 | % | -851.78 | % | |||||
CER adjustment |
28,642 | 23,663 | 28,341 | 21.04 | % | 1.06 | % | |||||||
CER adjustment - Trading account |
| | | | | |||||||||
CER adjustment - Investment account |
| | | | | |||||||||
CER adjustment - Other fixed securities |
28,642 | 23,663 | 28,341 | 21.04 | % | 1.06 | % |
Funding Sources
During the first quarter of 2008, deposits excluding rescheduled deposits grew by Ps. 118 million compared with the previous quarter. This growth was driven by an 8.2% and a 2.7% rise in current and saving accounts respectively. This trend allowed BBVA Banco Francés to reduce its average funding costs from previous quarters. As of March 31, 2008, current and saving accounts continued to gain participation in the Banks funding mix, while time deposits decreased. It is worth noting that this decrease in time deposits was due to a drop of Ps. 316 million in corporate time deposits, (those over Ps. 1 million), a reduction in the CER adjusted time deposits of Ps. 122 million, partially offset by the expansion in retail time deposits, which grew Ps. 334 million during the last three months.
Deposits performance during the last twelve months showed a more significant increase of Ps. 1,710 million compared to March 31, 2007, reflecting an annualized increase of 12.9%. Again the same trend that characterized the first months of 2008 can be observed here. During the last twelve months, current and savings accounts showed 24% and 22% increases, respectively, raising their share in total deposits from 47% to 51%.
By contrast, CER adjusted deposits decreased by 48% during the quarter and by 83% compared to last years first quarter. This trend meant for the Bank a higher CER index adjusted position for assets and liabilities.
There was also an important growth in foreign currency-denominated deposits during the last twelve months, which grew by 32% (Ps. 623 million) against the first quarter of 2007. As of March 31, 2008, foreign currency-denominated deposits amounted to Ps. 2,540 million (equivalent to U$S 803 million), representing 16.9% of total deposits, higher than the 14.4% share posted a year ago.
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in thousands of pesos except percentages |
Quarter ended | % Change Qtr ended 03/31/08 vs. Qtr ended |
||||||||||
03/31/08 | 12/31/07 | 03/31/07 | 12/31/07 | 03/31/07 | ||||||||
Total deposits |
15,012,593 | 14,894,468 | 13,302,936 | 0.79 | % | 12.85 | % | |||||
Current accounts |
3,278,413 | 3,028,835 | 2,645,265 | 8.24 | % | 23.94 | % | |||||
Peso denominated |
3,273,369 | 3,023,606 | 2,640,653 | 8.26 | % | 23.96 | % | |||||
Foreign currency |
5,044 | 5,229 | 4,612 | -3.54 | % | 9.37 | % | |||||
Savings accounts |
4,351,764 | 4,237,766 | 3,570,992 | 2.69 | % | 21.86 | % | |||||
Peso denominated |
3,276,333 | 3,198,958 | 2,755,726 | 2.42 | % | 18.89 | % | |||||
Foreign currency |
1,075,431 | 1,038,808 | 815,266 | 3.53 | % | 31.91 | % | |||||
Time deposits |
7,011,041 | 7,354,180 | 6,800,617 | -4.67 | % | 3.09 | % | |||||
Peso denominated |
5,547,552 | 5,797,308 | 5,038,999 | -4.31 | % | 10.09 | % | |||||
CER adjusted time deposits |
132,073 | 254,205 | 800,155 | -48.04 | % | -83.49 | % | |||||
Foreign currency |
1,331,416 | 1,302,667 | 961,463 | 2.21 | % | 38.48 | % | |||||
Investment Accounts |
17,811 | 13,152 | 14,631 | 35.42 | % | 21.73 | % | |||||
Peso denominated |
17,811 | 13,152 | 14,631 | 35.42 | % | 21.73 | % | |||||
Foreign currency |
0 | 0 | 0 | 0.00 | % | 0.00 | % | |||||
Other |
353,564 | 260,535 | 271,431 | 35.71 | % | 30.26 | % | |||||
Peso denominated |
225,275 | 147,669 | 135,505 | 52.55 | % | 66.25 | % | |||||
Foreign currency |
128,289 | 112,866 | 135,926 | 13.66 | % | -5.62 | % | |||||
Rescheduled deposits (*) CEDROS |
155,096 | 177,753 | 222,100 | -12.75 | % | -30.17 | % | |||||
Peso denominated |
155,096 | 177,753 | 222,100 | -12.75 | % | -30.17 | % | |||||
Foreign currency |
| | | | | |||||||
Total deposits + Rescheduled deposits & CEDROS |
15,167,689 | 15,072,221 | 13,525,036 | 0.63 | % | 12.15 | % |
(*) |
The payment of Rescheduled Deposits concluded in August 2005, in accordance with its original schedule, except those deposits that have a pending legal injunction. |
Other Funding Sources
During the first quarter of 2008, other funding sources grew by 19.5 % and 154.3% as compared to the balance registered in December 31, 2007 and March 31, 2007 respectively, mainly due to an expansion in lines from other banks for financing operations of foreign trade.
in thousands of pesos |
Quarter ended | % Change Qtr ended 03/31/08 vs. Qtr ended |
||||||||||
03/31/08 | 12/31/07 | 03/31/07 | 12/31/07 | 03/31/07 | ||||||||
Lines from other banks |
758,377 | 634,583 | 298,226 | 19.51 | % | 154.30 | % | |||||
Senior Bonds |
| | | | | |||||||
Other banking liabilities |
758,377 | 634,583 | 298,226 | 19.51 | % | 154.30 | % | |||||
Subordinated Debt |
| | | | | |||||||
Total other funding sources |
758,377 | 634,583 | 298,226 | 19.51 | % | 154.30 | % |
By the end of the March 2008 quarter, approximately 87% of other funding sources were foreign currency denominated funds.
Asset Quality
BBVA Banco Francés continues showing an excellent performance in terms of asset quality standards, as of March 31, 2008 the non-performing ratio with respect to all types of financing (i.e., loans, corporate senior debt purchased and guarantees granted by the Bank) reached 0.6 %, with a coverage of non-performing loans with provisions of 298.8 %. This allows the Bank to maintain its leadership in the financial system in terms of the assumed risks.
- 8 -
It is important to mention that the non-performing loans grew by 11.7% during the last three months while these decreased by 8.14% compared to the same quarter of the prior year. Meanwhile, allowances grew by 5.8% during the last quarter and by 22.8% in comparison with the same quarter of the previous fiscal year. Such increase in allowances is related to the private sector loan portfolio expansion.
in thousands of pesos except percentages |
Quarter ended | % Change Qtr ended 03/31/08 vs. Qtr ended |
|||||||||||||
03/31/08 | 12/31/07 | 03/31/07 | 12/31/07 | 03/31/07 | |||||||||||
Nonaccrual loans (1) |
70,363 | 62,979 | 76,601 | 11.72 | % | -8.14 | % | ||||||||
Allowance for loan losses |
(210,250 | ) | (198,728 | ) | (171,231 | ) | 5.80 | % | 22.79 | % | |||||
Nonaccrual loans/net total loans |
0.63 | % | 0.59 | % | 0.93 | % | 6.57 | % | -31.91 | % | |||||
Allowance for loan losses/nonaccrual loans |
298.81 | % | 315.55 | % | 223.54 | % | -5.30 | % | 33.67 | % | |||||
Allowance for loan losses/net total loans |
1.89 | % | 1.87 | % | 2.08 | % | 0.92 | % | -8.99 | % |
(1) | Nonaccrual loans 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 following table shows the evolution of loan losses provisions, including allowances related to other banking receivables.
in thousands of pesos except percentages |
Quarter ended | % Change Qtr ended 03/31/08 vs. Qtr ended |
|||||||||||||
03/31/08 | 12/31/07 | 03/31/07 | 12/31/07 | 03/31/07 | |||||||||||
Balance at the beginning of the quarter |
200,629 | 183,599 | 168,125 | 9.28 | % | 19.33 | % | ||||||||
Increase |
20,173 | 25,221 | 9,626 | -20.02 | % | 109.57 | % | ||||||||
Provision increase/decrease - Exchange rate difference |
165 | 22 | 250 | 650.00 | % | 34.00 | % | ||||||||
Decrease |
(8,528 | ) | (8,213 | ) | (5,501 | ) | 3.84 | % | 55.03 | % | |||||
Balance at the end of the quarter |
212,439 | 200,629 | 172,500 | 5.89 | % | 23.15 | % |
Changes in the increase in provisions line items are mainly explained by the creation of provisions on the normal loan portfolio and the reclassification of commercial loans, resulting in the need for increased provisions; whereas the decrease is related to the write-offs in the portfolio.
Net income from services
BBVA Banco Francés continued its expansion in the transactional business, retaining a significant source of income from this activity. As a result of this trend, net income from services during the first quarter of 2008 increased by 4.8% and by 26.5% respectively compared to the quarters ended on December and March 2007.
This quarterly and annual growth is explained by an increase in fees related to the consumer segment, mainly those from current and saving accounts, credit cards and insurance fees, together with those relating to foreign trade in the middle market segment.
Finally, the chart below also shows the decrease in fees from capital markets and securities activities this quarter, although yearly changes still post an important increase.
- 9 -
in thousands of pesos except percentages |
Quarter ended | % Change Qtr ended 03/31/08 vs. Qtr ended |
|||||||||||||
03/31/08 | 12/31/07 | 03/31/07 | 12/31/07 | 03/31/07 | |||||||||||
Net income from services |
164,065 | 156,607 | 129,693 | 4.76 | % | 26.50 | % | ||||||||
Service charge income |
205,598 | 194,423 | 158,743 | 5.75 | % | 29.52 | % | ||||||||
Service charges on deposits accounts |
74,282 | 68,519 | 59,815 | 8.41 | % | 24.19 | % | ||||||||
Credit Cards and operations |
46,094 | 44,569 | 31,846 | 3.42 | % | 44.74 | % | ||||||||
Insurance |
17,317 | 14,878 | 12,407 | 16.39 | % | 39.58 | % | ||||||||
Capital markets and securities activities |
3,627 | 4,554 | 2,066 | -20.36 | % | 75.51 | % | ||||||||
Fees related to Foreign trade |
12,132 | 11,276 | 9,367 | 7.59 | % | 29.51 | % | ||||||||
Other fees |
52,146 | 50,627 | 43,241 | 3.00 | % | 20.59 | % | ||||||||
Services Charge expense |
(41,533 | ) | (37,816 | ) | (29,051 | ) | 9.83 | % | 42.97 | % |
Income related to foreign currency exchange transactions is not included in this table, since it is accounted for in net financial income as an income from foreign currency trading. During this quarter, such income amounted to Ps. 28.5 million, a 9.5% lower compared to previous quarter. However, last quarter income was 40.4% higher than the same period of previous year. The Bank currently purchases and sells U.S. dollars through all of the Banks branch offices, over the ATM network and the Internet.
Administrative Expenses
Administrative expenses eased 4.2% during the first quarter of 2008, with moderated declines in both personnel, and advertising and promotion expenses. In contrast, outlays posted a considerable 39% increase when compared to March 31, 2007, explained by significant increases in all of its components.
As previously described, the decrease in administrative expenses during the first three months of 2008 was led by a 7.1% decline in personnel expenditures, and a larger 27% reduction in advertising and promotion expenses. Both reductions are explained by the substantial increases shown by these components during the last quarter, where of 2007, by greater reserves for bonuses for better than projected results during the fiscal year 2007, and higher advertising and publicity expenses related to a more aggressive commercial strategy.
At the same time, an increase in expenses against last year levels was also mainly driven by this two components, as personnel expenditures grew 49%, and advertising and promotion expenses did the same at an annual pace of 47% since March 31, 2007. These important increases took place last year with higher salaries reached through the agreement with the labor union during April 2007 and March 2008, jointly with the larger number of employees together because of a higher activity levels, regarding to the advertising and promotions expenditures, those reflecting a higher presence of the Bank in the media and higher costs.
As of March 31, 2008, the Bank had 4,132 employees (including the Banks subsidiaries, except for the Consolidar Group). The branch office network totaled 266 offices, including 235 consumer branch offices, 27 branch offices specialized in the middle-market segment, 11 in-company branches, 4 branch offices for large corporate and institutional clients and 2 sale points. During the first quarter of 2008, the Bank opened three new retail branch offices within the country, aimed to reinforcing its presence in the cities with high economic growth.
- 10 -
in thousands of pesos except percentages |
Quarter ended | % Change Qtr ended 03/31/08 vs. Qtr ended |
|||||||||||||
03/31/08 | 12/31/07 | 03/31/07 | 12/31/07 | 03/31/07 | |||||||||||
Administrative expenses |
(257,462 | ) | (268,675 | ) | (185,052 | ) | -4.17 | % | 39.13 | % | |||||
Personnel expenses |
(155,562 | ) | (167,506 | ) | (104,381 | ) | -7.13 | % | 49.03 | % | |||||
Electricity and Communications |
(6,522 | ) | (5,848 | ) | (5,016 | ) | 11.53 | % | 30.02 | % | |||||
Advertising and Promotion |
(16,239 | ) | (22,250 | ) | (11,025 | ) | -27.02 | % | 47.29 | % | |||||
Honoraries |
(6,772 | ) | (6,545 | ) | (6,214 | ) | 3.47 | % | 8.98 | % | |||||
Taxes |
(7,323 | ) | (4,716 | ) | (5,974 | ) | 55.28 | % | 22.58 | % | |||||
Organization and development expenses |
(1,850 | ) | (2,953 | ) | (1,158 | ) | -37.35 | % | 59.76 | % | |||||
Amortizations |
(7,913 | ) | (9,124 | ) | (7,373 | ) | -13.27 | % | 7.32 | % | |||||
Other |
(55,281 | ) | (49,733 | ) | (43,911 | ) | 11.16 | % | 25.89 | % |
Other Income/Expenses
By the end of March 2008, the total Other income/Expenses recorded a loss of Ps. 110.9 million, mainly related to the amortization of the loss derived from the payment of deposits under judicial injunctions totaling Ps. 67.7 million for the quarter, the accelerated amortization of Corp Bancas goodwill which amounted Ps. 12.2 million, and to the provisions registered for other contingencies.
It is important to mention that during the first quarter, the Bank has completed the amortization of the asset related with legal injunctions; such amortization is booked in accordance with Central Banks regulation (which does not imply that the Bank waives its right to demand a future compensation).
BBVA Banco Francés determines the charge for income tax by applying the current tax rate of 35% to taxable income estimated for each period considering the effect of temporary differences between book and taxable income. The Bank has considered as temporary differences those that have a definitive reversal date in subsequent fiscal years. At the same time, as of March 31, 2008 and March 31, 2007 the Bank has concluded that it must not pay income tax due to the existence of a net operating loss from previous years, for income tax purposes.
As of March 31, 2008 and on the close of the prior fiscal year, the Bank maintains recorded in its books under Other Receivables (in the Tax Advance account), a taxable deferred asset amounting to Ps. 108.7 million and Ps. 55.5 million, respectively.
Income from equity investments
Income from Equity Investments sets forth net income from related companies, which are not consolidated, mainly the Consolidar Group. During the first quarter of 2008, the Bank registered a gain of Ps. 41.3 million. Its stake in the Consolidar Group recorded a gain of Ps. 16.4 million. The Bank also registered a gain of Ps. 23.5 million from the VISA Inc initial public offering.
Capitalization
Total shareholders equity as of March 31, 2008 reached Ps. 1.977 billion with a Ps. 688 million excess capital over minimum requirements in accordance to Central Bank regulations. Such excess provides enough resources to maintain the private sector loan portfolio growth.
The decrease registered in the excess capital over the minimum required during the last twelve months is mainly explained by higher demand caused by the increase in the private sector financings and a raise in the alpha coefficient.
It is important to highlight that the decrease in total shareholders equity is explained mainly by the payment of cash dividends for an amount of Ps. 164 million according to resolutions adopted the Ordinary and Extraordinary Shareholders Meeting, held on March 28, 2008.
- 11 -
The Unrealized Valuation Difference totaled a loss of Ps. 32.5 million during the first quarter. Such difference is related to a lower stock of bills and notes issued by the Central Bank which are booked as Available for sale, as a consequence of the amortization of capital.
Finally, the Bank recorded an asset corresponding to the Minimum Presumed Income Tax, which totaled Ps. 195.3 million as of March 31, 2008
in thousands of pesos except percentages |
Quarter ended | % Change Qtr ended 03/31/08 vs. Qtr ended |
||||||||||||
03/31/08 | 12/31/07 | 03/31/07 | 12/31/07 | 03/31/07 | ||||||||||
Capital Stock |
471,361 | 471,361 | 471,361 | 0.00 | % | 0.00 | % | |||||||
Non-capitalized contributions |
175,132 | 175,132 | 175,132 | 0.00 | % | 0.00 | % | |||||||
Adjustments to stockholders equity |
312,979 | 312,979 | 312,979 | 0.00 | % | 0.00 | % | |||||||
Subtotal |
959,472 | 959,472 | 959,472 | 0.00 | % | 0.00 | % | |||||||
Reserves on Profits |
594,390 | 547,381 | 465,317 | 8.59 | % | 27.74 | % | |||||||
Unapropiated retained earnings |
456,079 | 592,780 | 598,235 | -23.06 | % | -23.76 | % | |||||||
Unrealized valuation difference |
(32,537 | ) | (42,796 | ) | | -23.97 | % | 0.00 | % | |||||
Total stockholders equity |
1,977,404 | 2,056,837 | 2,023,024 | -3.86 | % | -2.26 | % |
in thousands of pesos except percentages |
Quarter ended | % Change Qtr ended 03/31/08 vs. Qtr ended |
|||||||||||||
03/31/08 | 12/31/07 | 03/31/07 | 12/31/07 | 03/31/07 | |||||||||||
Central Bank Minimum Capital Requirements |
1,449,708 | 1,337,004 | 1,085,394 | 8.43 | % | 33.57 | % | ||||||||
Central Bank Minimum Capital Requirements (a, b) |
1,302,684 | 1,175,292 | 954,030 | 10.84 | % | 36.55 | % | ||||||||
Market Risk |
91,601 | 108,280 | 87,111 | -15.40 | % | 5.15 | % | ||||||||
Increase in capital requirements related to custody |
55,423 | 53,432 | 44,253 | 3.73 | % | 25.24 | % | ||||||||
a) Central Bank Minimum Capital Requirements |
1,302,684 | 1,175,292 | 954,030 | 10.84 | % | 36.55 | % | ||||||||
Allocated to Asset at Risk |
806,712 | 760,014 | 576,409 | 6.14 | % | 39.95 | % | ||||||||
Allocated to Immobilized Assets |
91,014 | 94,852 | 110,208 | -4.05 | % | -17.42 | % | ||||||||
Interest Rate Risk |
167,084 | 174,544 | 131,244 | -4.27 | % | 27.31 | % | ||||||||
Loans to Public Sector and Securities in Investment |
237,874 | 145,882 | 136,169 | 63.06 | % | 74.69 | % | ||||||||
Non Compliance of Other Credit Regulations |
| | | | | ||||||||||
b) Minimum capital required for Pension Funds (AFJPs) to act as securities custodian and registrar of mortgage notes |
1,108,462 | 1,068,636 | 885,059 | 3.73 | % | 25.24 | % | ||||||||
5% of the securities in custody and book-entry notes |
1,108,462 | 1,068,636 | 885,059 | 3.73 | % | 25.24 | % | ||||||||
Bank Capital Calculated under Central Bank Rules |
2,138,526 | 2,233,040 | 2,171,393 | -4.23 | % | -1.51 | % | ||||||||
Core Capital |
1,935,634 | 1,864,585 | 1,954,585 | 3.81 | % | -0.97 | % | ||||||||
Minority Interest |
242,603 | 236,018 | 227,275 | 2.79 | % | 6.74 | % | ||||||||
Supplemental Capital |
55,634 | 235,272 | 69,389 | -76.35 | % | -19.82 | % | ||||||||
Deductions |
(95,345 | ) | (102,835 | ) | (79,856 | ) | -7.28 | % | 19.40 | % | |||||
Excess over Required Capital |
688,818 | 896,036 | 1,085,999 | -23.13 | % | -36.57 | % |
- 12 -
Additional information
in pesos except percentages |
Quarter ended | % Change Qtr ended 03/31/08 vs. Qtr ended |
|||||||||||||
03/31/08 | 12/31/07 | 03/31/07 | 12/31/07 | 03/31/07 | |||||||||||
- Exchange rate |
3.1653 | 3.1510 | 3.1007 | 0.45 | % | 2.08 | % | ||||||||
- Quarterly CER adjustment (CPI) |
2.42 | % | 2.30 | % | 2.52 | % | 4.94 | % | -4.16 | % |
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 domestic or international stock market prices, exchange rates or interest rates; (2) macroeconomic, regulatory, political or governmental changes; (3) changes in the markets for BBVA Banco Francéss products and services; (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 first quarter earnings will be held on Monday, May 12, at 12 PM New York time 1 PM Buenos Aires time. If you are interested in participating please dial (719) 325 4808 at least 5 minutes prior to our conference. Confirmation code: 8284534. 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)
ASSETS: (in thousands of pesos) | 03/31/08 | 12/31/07 | 09/30/07 | 03/31/07 | ||||||||
Cash and due from banks |
3,596,127 | 3,127,740 | 2,483,360 | 2,444,106 | ||||||||
Government and Private Securities |
2,694,171 | 3,490,994 | 3,915,127 | 4,203,046 | ||||||||
- Trading account (listed securities) |
20,364 | 31,288 | 39,166 | 140,897 | ||||||||
- Available for sale |
989,689 | 1,372,584 | 1,459,043 | | ||||||||
- Unlisted |
914,461 | 903,903 | 876,871 | 881,575 | ||||||||
- Listed Private Securities |
20,170 | 32,764 | 53,893 | 14,929 | ||||||||
- Bills and Notes from the Central Bank |
880,908 | 1,211,414 | 1,501,297 | 3,180,788 | ||||||||
Less: Allowances |
(131,421 | ) | (60,959 | ) | (15,143 | ) | (15,143 | ) | ||||
Loans |
10,920,395 | 10,418,577 | 9,525,924 | 8,078,940 | ||||||||
- Loans to the private & financial sector |
9,561,341 | 9,002,814 | 8,025,193 | 6,570,427 | ||||||||
- Advances |
1,541,802 | 1,326,474 | 1,338,794 | 1,194,299 | ||||||||
- Discounted and purchased notes |
1,526,031 | 1,430,787 | 1,237,216 | 832,855 | ||||||||
- Secured with mortgages |
845,357 | 772,036 | 666,898 | 513,405 | ||||||||
- Car secured loans |
310,591 | 253,130 | 172,320 | 111,974 | ||||||||
- Personal loans |
1,487,916 | 1,337,179 | 1,106,999 | 789,168 | ||||||||
- Credit cards |
858,656 | 802,647 | 671,607 | 553,122 | ||||||||
- Loans to financial sector |
561,042 | 487,039 | 465,424 | 338,328 | ||||||||
- Other loans |
2,512,168 | 2,666,750 | 2,442,811 | 2,330,056 | ||||||||
Less: Unaccrued interest |
(12,284 | ) | (13,756 | ) | (10,366 | ) | (6,045 | ) | ||||
Plus: Interest & FX differences receivable |
140,312 | 139,256 | 115,326 | 84,496 | ||||||||
Less: Allowance for loan losses |
(210,250 | ) | (198,728 | ) | (181,836 | ) | (171,231 | ) | ||||
- Public Sector loans |
1,359,054 | 1,415,763 | 1,500,731 | 1,508,513 | ||||||||
Principal |
625,685 | 669,767 | 737,572 | 751,237 | ||||||||
Plus: Interest & FX differences receivable |
733,369 | 745,996 | 763,159 | 757,276 | ||||||||
Other banking receivables |
1,136,726 | 916,300 | 1,179,748 | 765,016 | ||||||||
- Repurchase agreements |
120,141 | 150,154 | 438,855 | | ||||||||
- Unlisted private securities |
59,389 | 58,277 | 59,187 | 59,540 | ||||||||
- Unlisted Private securities :Trustees |
26,394 | 24,170 | 21,864 | 19,188 | ||||||||
- Other banking receivables |
932,991 | 685,600 | 661,605 | 687,557 | ||||||||
- Less: provisions |
(2,189 | ) | (1,901 | ) | (1,763 | ) | (1,269 | ) | ||||
Investments in other companies |
453,334 | 411,979 | 395,550 | 373,614 | ||||||||
Intangible assets |
28,555 | 91,680 | 149,685 | 317,748 | ||||||||
- Goodwill |
| 12,200 | 13,857 | 17,172 | ||||||||
- Organization and development charges |
28,555 | 21,991 | 18,773 | 14,088 | ||||||||
- Assets related to legal injunctions |
| 57,489 | 117,055 | 286,488 | ||||||||
Other assets |
1,076,042 | 1,043,623 | 991,586 | 932,708 | ||||||||
TOTAL ASSETS |
19,905,350 | 19,500,893 | 18,640,980 | 17,115,178 | ||||||||
LIABILITIES: | 03/31/08 | 12/31/07 | 09/30/07 | 03/31/07 | ||||||||
Deposits |
15,167,689 | 15,072,221 | 14,375,418 | 13,525,036 | ||||||||
- Current accounts |
3,278,413 | 3,028,835 | 2,813,818 | 2,645,265 | ||||||||
- Saving accounts |
4,351,764 | 4,237,766 | 3,736,820 | 3,570,992 | ||||||||
- Time deposits |
7,011,041 | 7,354,180 | 7,325,613 | 6,800,617 | ||||||||
- Rescheduled deposits - CEDROS |
155,096 | 177,753 | 194,308 | 222,100 | ||||||||
- Other deposits |
371,375 | 273,687 | 304,859 | 286,062 | ||||||||
Other banking Liabilities |
1,993,905 | 1,746,844 | 1,637,951 | 931,856 | ||||||||
Other provisions |
361,146 | 321,543 | 326,221 | 443,211 | ||||||||
- Other contingencies |
360,733 | 321,130 | 325,794 | 442,781 | ||||||||
- Guarantees |
413 | 413 | 427 | 430 | ||||||||
Other liabilities |
391,057 | 288,965 | 225,713 | 177,552 | ||||||||
Minority interest |
14,149 | 14,483 | 15,639 | 14,499 | ||||||||
TOTAL LIABILITIES |
17,927,946 | 17,444,056 | 16,580,942 | 15,092,154 | ||||||||
TOTAL STOCKHOLDERS EQUITY |
1,977,404 | 2,056,837 | 2,060,038 | 2,023,024 | ||||||||
Total liabilities + stockholders equity |
19,905,350 | 19,500,893 | 18,640,980 | 17,115,178 | ||||||||
- 14 -
BBVA Banco Francés S.A. and subsidiaries (Grupo Consolidar: by the equity method)
INCOME STATEMENT | 03/31/08 | 12/31/07 | 09/30/07 | 03/31/07 | ||||||||
Financial income |
457,432 | 451,547 | 363,228 | 451,151 | ||||||||
- Interest on Cash and Due from Banks |
4,914 | 5,554 | 5,275 | 4,739 | ||||||||
- Interest on Loans Granted to the Financial Sector |
14,441 | 16,509 | 12,981 | 10,595 | ||||||||
- Interest on Overdraft |
50,010 | 52,013 | 46,644 | 32,241 | ||||||||
- Interest on Discounted and purchased notes |
38,063 | 36,924 | 26,619 | 18,400 | ||||||||
- Interest on Mortgages |
22,698 | 19,707 | 16,820 | 13,182 | ||||||||
- Interest on Car Secured Loans |
8,488 | 5,809 | 3,820 | 2,512 | ||||||||
- Interest on Credit Card Loans |
21,068 | 16,804 | 14,019 | 11,635 | ||||||||
- Interest on Other Loans |
108,629 | 92,321 | 75,307 | 65,111 | ||||||||
- Income from Securities and Short Term Investments |
5,995 | 61,320 | 33,736 | 109,193 | ||||||||
- Interest on Government Guaranteed Loans Decreet 1387/01 |
25,459 | 16,012 | 15,209 | 54,994 | ||||||||
- From Other Banking receivables |
20,573 | 6,702 | 6,046 | 5,694 | ||||||||
- CER |
64,671 | 51,921 | 36,977 | 76,078 | ||||||||
- CVS |
| | | | ||||||||
- Foreign exchange difference |
31,768 | 32,977 | 37,672 | 20,211 | ||||||||
- Other |
40,655 | 36,974 | 32,103 | 26,566 | ||||||||
Financial expenses |
(197,897 | ) | (214,271 | ) | (163,908 | ) | (160,776 | ) | ||||
- Interest on Current Account Deposits |
(5,852 | ) | (5,825 | ) | (4,764 | ) | (6,815 | ) | ||||
- Interest on Saving Account Deposits |
(2,130 | ) | (1,951 | ) | (1,798 | ) | (1,529 | ) | ||||
- Interest on Time Deposits |
(151,329 | ) | (166,701 | ) | (121,623 | ) | (105,337 | ) | ||||
- Interest on Other Banking Liabilities |
(12,026 | ) | (10,493 | ) | (8,079 | ) | (8,520 | ) | ||||
- Other interests (includes Central Bank) |
(1,632 | ) | (1,654 | ) | (599 | ) | (3,967 | ) | ||||
- CER |
(4,200 | ) | (7,622 | ) | (8,206 | ) | (20,211 | ) | ||||
- Bank Deposit Guarantee Insurance system mandatory contributions |
(6,632 | ) | (6,296 | ) | (5,941 | ) | (5,594 | ) | ||||
- Foreign exchange difference |
(10 | ) | (29 | ) | 7 | | ||||||
- Mandatory contributions and taxes on interest income |
(12,610 | ) | (11,635 | ) | (10,096 | ) | (8,448 | ) | ||||
- Other |
(1,476 | ) | (2,065 | ) | (2,809 | ) | (355 | ) | ||||
Net financial income |
259,535 | 237,276 | 199,320 | 290,375 | ||||||||
Provision for loan losses |
(20,173 | ) | (25,221 | ) | (13,605 | ) | (9,626 | ) | ||||
Income from services, net of other operating expenses |
164,065 | 156,607 | 148,196 | 129,693 | ||||||||
Administrative expenses |
(257,462 | ) | (268,675 | ) | (219,428 | ) | (185,052 | ) | ||||
Income (loss) from equity investments |
41,367 | 18,658 | (412 | ) | 17,607 | |||||||
Net Other income |
(110,962 | ) | (106,082 | ) | (38,928 | ) | (171,547 | ) | ||||
Income (loss) from minority interest |
253 | 1,157 | (330 | ) | (643 | ) | ||||||
Income before tax |
76,623 | 13,720 | 74,813 | 70,807 | ||||||||
Income tax |
(2,315 | ) | (3,162 | ) | (1,706 | ) | (2,367 | ) | ||||
Net income |
74,308 | 10,558 | 73,107 | 68,440 | ||||||||
- 15 -
BBVA Banco Francés S.A. and subsidiaries (Grupo Consolidar consolidated on a line by line basis)
ASSETS | 03/31/08 | 12/31/07 | 09/30/07 | 03/31/07 | ||||||||
Cash and due from banks |
3,625,974 | 3,169,314 | 2,574,759 | 2,477,885 | ||||||||
Government Securities |
4,482,378 | 5,181,253 | 5,400,573 | 5,671,943 | ||||||||
Loans |
11,966,409 | 11,390,121 | 10,563,216 | 8,962,172 | ||||||||
Other Banking Receivables |
1,186,025 | 956,184 | 1,217,046 | 783,319 | ||||||||
Assets Subject to Financial Leasing |
335,614 | 323,522 | 297,575 | 252,219 | ||||||||
Investments in other companies |
106,571 | 77,986 | 75,430 | 56,866 | ||||||||
Other assets |
907,629 | 924,619 | 1,009,079 | 1,379,055 | ||||||||
TOTAL ASSETS |
22,610,600 | 22,022,999 | 21,137,678 | 19,331,240 | ||||||||
LIABILITIES | 03/31/08 | 12/31/07 | 09/30/07 | 03/31/07 | ||||||||
Deposits |
15,109,195 | 15,009,758 | 14,340,015 | 13,400,874 | ||||||||
Other banking liabilities |
2,042,381 | 1,750,021 | 1,687,437 | 948,400 | ||||||||
Other liabilities |
242,604 | 2,970,365 | 2,818,891 | 2,731,667 | ||||||||
Minority interest |
3,239,016 | 236,018 | 231,297 | 227,275 | ||||||||
TOTAL LIABILITIES |
20,633,196 | 19,966,162 | 19,077,640 | 17,308,216 | ||||||||
TOTAL STOCKHOLDERS EQUITY |
1,977,404 | 2,056,837 | 2,060,038 | 2,023,024 | ||||||||
STOCKHOLDERS EQUITY + LIABILITIES |
22,610,600 | 22,022,999 | 21,137,678 | 19,331,240 | ||||||||
NET INCOME | 03/31/08 | 12/31/07 | 09/30/07 | 03/31/07 | ||||||||
Net Financial Income |
358,247 | 330,761 | 239,495 | 385,339 | ||||||||
Provision for loan losses |
(20,173 | ) | (25,221 | ) | (13,605 | ) | (9,626 | ) | ||||
Net Income from Services |
250,923 | 268,931 | 266,981 | 245,983 | ||||||||
Administrative expenses |
(318,297 | ) | (339,996 | ) | (282,534 | ) | (241,723 | ) | ||||
Net Other Income |
(183,634 | ) | (210,260 | ) | (118,430 | ) | (284,846 | ) | ||||
Income Before Tax |
87,066 | 24,215 | 91,907 | 95,127 | ||||||||
Income Tax |
(6,091 | ) | (8,936 | ) | (19,149 | ) | (15,889 | ) | ||||
Net income |
80,975 | 15,279 | 72,758 | 79,238 | ||||||||
Minoritary Interest |
(6,667 | ) | (4,721 | ) | 349 | (10,798 | ) | |||||
Net income for Quarter |
74,308 | 10,558 | 73,107 | 68,440 | ||||||||
- 16 -
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: May 9, 2008 | By: | /s/ Martín E. Zarich | ||
Name: | Martín E. Zarich | |||
Title: | Chief Financial Officer |