Edgar Filing: BBVA BANCO FRANCES SA

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Form 6-K

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 February 2011

Commission File Number: 001-12568

BBVA French Bank S.A.

(Translation of registrant’s 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

1.		Press release entitled “BBVA Banco Francés” reports consolidated fourth quarter earnings for fiscal year 2010”.

LOGO

Buenos Aires, February 10, 2011 - BBVA Banco Francés (NYSE: BFR.N; BCBA: FRA.BA; LATIBEX: BFR.LA) reports consolidated fourth quarter earnings for fiscal year January-December of 2010.

Annual Highlights

•

BBVA Banco Francés registered an outstanding performance during fiscal year 2010, reaching net income of AR$ 1,198 million, a 66.8% increase over the previous year’s result.

•

The Bank continued to demonstrate its capacity to generate recurring earnings, which totaled AR$ 809.7 million as of December 31, 2010. Total return on equity (ROE) for the year 2010 reached 32.3%.

•

The significant improvement on recurring earnings was due mainly to the growth of financial revenue from the private sector, as a consequence of the expansion in the core business that was partially offset by greater administrative expenses.

•

Non-recurring earnings totaled AR$ 388.5 million, and were mainly due to the increase in public asset valuations.

•

In line with the increase in consumption registered over the year 2010, private sector loans grew 47.0%, during the last twelve months. Credit card financings, personal loans and car loans led the growth in the retail segment. The small and medium-sized companies segment also registered an excellent performance during the year, mainly due to discounted and purchased notes, as well as long term financings –leasing and financial loans.

•

BBVA Banco Francés continues to have the best asset quality ratios of the Argentine financial system. As of December 31, 2010, non-performing loans represented 0.51% of total loans.

•

The Bank’s deposits from the private sector increased 25.3% over the year 2010. Meanwhile, during the same period, public deposits decreased by 23.1%.

•

During 2010, BBVA Banco Francés maintained high levels of liquidity and solvency. As of December 31, 2010, total stockholders’ equity reached AR$ 3,746.9 million, while the excess of capital over the Central Bank regulatory requirements, reached AR$ 1,666.5 million, or 44.5% of the Bank’s total stockholders’ equity.

•

Based on the results of the financial period, the Board of directors has resolved to propose at the annual shareholders’ meeting a cash dividend payment in the amount of AR$ 804 million, which represented 50% of the balances subject to distribution. Such payment is subject to applicable regulatory and transaction authorizations.

- 1 -


Condensed Income Statement (1)
in thousands of pesos except income per share, income per ADS and percentages	FY 2010			FY 2009			% Change
Net Financial Income		2,483,586			2,064,039			20.3	%
Provision for loan losses		(179,353	)		(245,966	)		-27.1	%
Net income from services		1,079,095			925,012			16.7	%
Administrative expenses		(1,969,461	)		(1,562,326	)		26.1	%
Operating income		1,413,867			1,180,759			19.7	%
Income (loss) from equity investments		56,622			41,450			36.6	%
Income (Loss) from Minority interest		(16,538	)		(17,851	)		-7.4	%
Other Income/Expenses		17,151			(123,457	)		n.a.
Income tax		(272,923	)		(362,439	)		n.a.
Net income for the period		1,198,179			718,462			66.8	%
Net income per share (2)		2.23			1.47			51.6	%
Net income per ADS (3)		6.70			4.42			51.6	%

(1)	Exchange rate: 3.9758 Ps. = 1 US$

(2)	Assumes 536,361,306 average ordinary shares outstanding for fiscal year 2010 and 487,611,306 ordinary shares outstanding for fiscal year 2009.

(3)	Each ADS represents three ordinary shares.

Net income for fiscal year 2010 includes non-recurring effects mainly generated by the improvement in public asset valuations.

The following “pro forma” table presents non-recurring earnings.


Condensed Income Statement PROFORMA	Quarter ended
in thousands of pesos	12/31/2010 Recurring Income			Non recurring Income			12/31/2010 Total Income
Net Financial Income		2,034,286			449,300			2,483,586
Provision for loan losses		(179,353	)		—			(179,353	)
Net income from services		1,079,095			—			1,079,095
Administrative expenses		(1,969,461	)		—			(1,969,461	)
Operating income		964,567			449,300			1,413,867
Income (loss) from equity investments		56,622			—			56,622
Income (Loss) from Minority interest		(16,538	)		—			(16,538	)
Other Income/Expenses		17,151			—			17,151
Income tax and Minimum Presumed Tax		(212,152	)		(60,771	)		(272,923	)
Net income for the period		809,650			388,529			1,198,179

- 2 -

Quarter Highlights

•

During the fourth quarter of 2010, BBVA Banco Francés registered recurring earnings of AR$ 216.3 million, a 48.2% increase from the previous quarter. On the other hand, the non recurring earnings, which were generated by the improvement in public asset valuations, totaled AR$ 181.5 million.

•

The increase in the private sector trading segment was reflected in increased financial income, supporting the continued improvement in recurring gains. In addition, lower administrative expenses were registered during the quarter, partially offset by an increase in the provision for loan losses, due to loan portfolio growth.

•

During the fourth quarter of 2010, the private sector loan portfolio exceeded AR$ 15,100 million. As previously mentioned, a significant expansion of the loan portfolio occurred during the fourth quarter. The expansion was led by credit card financings and personal loans in the consumer segment, together with discounted notes and long term loans in the middle market segment.

•

As of December 31, 2010, non-performing loans represented 0.51% of total loans.

•

In term of liabilities, BBVA Banco Francés’ total deposits increased 3.8% in the last three months. Time deposits increased 10.7% during the quarter, while sight deposits maintained the same levels as in the previous quarter.

Economic Environment

The Monthly Estimator of Economic Activity (EMAE) grew 8.3% compared to the same quarter of 2009.

The high levels of consumption, together with an increase in investment have led the recovery.

The primary fiscal surplus of the national public sector was AR$ 6,635 million during the October- November period; an increase of 84.6% compared to the same period in 2009. This strong growth was due to the positive performance of tax collection and other fiscal resources, such as transfers received from the Central Bank and ANSES results, while primary

spending also grew by 44.7% in annual terms during October-November period.

Inflation, as measured by the Consumer Price Index (which is used to calculate the CER adjustment for some sovereign assets) accumulated 2.4% during the fourth quarter of 2010 and 10.9 % over the whole year.

The Argentine Central Bank (BCRA) intervention in the FX market was a net purchase of US$3,244 million during the quarter. Throughout the year the Central Bank bought US$ 11,805 million in the foreign exchange market, a figure only surpassed in 2006.

The exchange rate (according to the BCRA) closed at AR$3.98 per U.S. dollar, an increase of 0.4% compared to September 30, 2010.

The devaluation of the peso in the year was 4.7%.

The international reserve stock reached US$52,190 million, an increase of US$1,065 million during the quarter and US$ 4,222 over the whole year.

The trade balance during the fourth quarter of 2010 ended with a surplus of US$ 1.562 billion, 56.4 % lower than the same period of 2009. During 2010, the surplus was reduced to US$ 12.057 billion, 28.6% lower than 2009 due to a surge in imports.

The Badlar rate at private banks was 11.08% on average, at the end of the quarter, an increase of 53 bp compared to the average in September 2010. The financial system’s liquidity during the year allowed the Badlar rate volatility to remain low, with an increase of only 128 bp since December 2009.

Total deposits in the financial system increased 8.9% on average during the fourth quarter of 2010, while private sector deposits rose 9.0%.

Private sector loans showed an increase of 12.7% during the fourth quarter, reflecting an acceleration compared to the performance during the third quarter of 2010. During 2010, both deposits from and loans to the private sector recovered in line with the improved performance of the economy growing 29.1% and 37% year on year, respectively.

-3-

The Bank

A business strategy focused on its clients, with the objective of providing more products and services tailored to their needs, has allowed BBVA Banco Francés to maintain its leadership position in the Argentine financial system.

In line with that strategy, the Bank continues to focus on the retail and middle market segments, conducting business activities that have enabled it to significantly increase its customer base, as well as the volume of financing.

The current market environment offers new opportunities and BBVA Banco Francés has built laid the groundwork to exploit them. To this end, the Bank has strong levels of liquidity and solvency, the best asset quality ratio in the financial system, solid results and a strong relationship with its clients.

Presentation of Financial Information

•

Foreign currency balances as of December 31, 2010, have been translated into pesos at the reference exchange rate of AR$ 3.9758 per U.S. dollar, published by the BCRA.

•

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 Bank’s share in the Consolidar Group is shown as investments in other companies (booked by the equity method) and the corresponding results are included in income from equity investments.

•

Information contained in this press release may differ from the information published by the BBVA Group for Argentina, which is prepared according to Spanish accounting standards for all BBVA Group affiliates.

Financial Information


Condensed Income Statement (1)	Quarter ended									% Change Qtr ended 12/31/10 vs. Qtr ended
in thousands of pesos except income per share, income per ADS and percentages	12/31/10			09/30/10			12/31/09			09/30/10			12/31/09
Net Financial Income		739,037			834,630			611,471			-11.5	%		20.9	%
Provision for loan losses		(64,287	)		(45,347	)		(30,665	)		41.8	%		109.6	%
Net income from services		290,356			275,910			244,158			5.2	%		18.9	%
Administrative expenses		(505,310	)		(559,391	)		(433,571	)		-9.7	%		16.5	%
Operating income		459,796			505,802			391,393			-9.1	%		17.5	%
Income (Loss) from equity investments		16,187			18,477			6,156			-12.4	%		162.9	%
Income (Loss) from Minority interest		(4,997	)		(3,509	)		(4,010	)		42.4	%		24.6	%
Other Income/Expenses		7,634			31,718			(12,757	)		-75.9	%		-159.8	%
Income tax and Minimum Presumed Tax		(80,748	)		(115,228	)		(119,533	)		-29.9	%		-32.4	%
Net income for the period		397,872			437,260			261,249			-9.0	%		52.3	%
Net income per share (2)		0.74			0.82			0.49			-9.0	%		52.3	%
Net income per ADS (3)		2.23			2.45			1.46			-9.0	%		52.3	%

(1)	Exchange rate: 3.9758 Ps. = 1 US$

(2)	Assumes 536,361,306 ordinary shares outstanding

(3)	Each ADS represents three ordinary shares.

Net income for the fourth quarter of 2010 includes non-recurring effects generated by the improvement in public asset valuations.

The following “pro forma” table presents non-recurring earnings.

- 4 -


Condensed Income Statement PROFORMA	Quarter ended
in thousands of pesos	12/31/2010 Recurring Income			Non recurring Income			12/31/2010 Total Income
Net Financial Income		526,086			212,951			739,037
Provision for loan losses		(64,287	)		—			(64,287	)
Net income from services		290,356			—			290,356
Administrative expenses		(505,310	)		—			(505,310	)
Operating income		246,845			212,951			459,796
Income (loss) from equity investments		16,187			—			16,187
Income (Loss) from Minority interest		(4,997	)		—			(4,997	)
Other Income/Expenses		7,634			—			7,634
Income tax and Minimum Presumed Tax		(49,321	)		(31,427	)		(80,748	)
Net income for the period		216,348			181,524			397,872

Recurring net financial earnings increased 7.9% compared to the previous quarter, totaling AR$ 526.1 million. This growth was principally to an increase in financial incomes derived from our loans to the private sector. Recurring net financial earnings increased 14.3% compared to the same quarter of 2009 also as a consequence of the improvement in private sector income, together with higher results from public assets (without including the increase in their valuations).

Provisions for loan losses increased both compared to the previous quarter and to the previous twelve months, due to a significant expansion of the private sector loan portfolio and the application of generic provisions.

The increased activity volume was reflected in net income from services, which grew 5% during the last three months and 18.9% in the whole year.

Administrative expenses for the fourth quarter of 2010 decreased 9.7% compared to the previous quarter, due to the application of the voluntary retirement plan during the third quarter. The annual increase was 16.5%, mainly due to salary increases resulting from the labor agreement signed in 2010 and the increase in general expenses, caused by the higher activity level and inflation.


	Quarter ended									% Change Qtr ended 12/31/10 vs. Qtr ended
in thousands of pesos except percentages	12/31/10			09/30/10			12/31/09			09/30/10			12/31/09
Return on Average Assets (1)		5.28	%		6.22	%		4.51	%		-15.2	%		16.9	%

Return on Average Shareholders’ Equity		45.2	%		57.6	%		37.6	%		-21.5	%		20.1	%

Net fee Income as a % of Recurrent Operating Income		28.2	%		24.8	%		28.5	%		13.5	%		-1.2	%

Net fee Income as a % of Administrative Expenses		57.5	%		49.3	%		56.3	%		16.5	%		2.0	%

Adm. Expenses as a % of Recurrent Operating Income (2)		49.1	%		50.4	%		50.7	%		-2.5	%		-3.1	%

(1)	Annualized.

(2)	Adm.Expenses / (Net financial income + Net income from services)

Net Financial Income

Net financial income, without taking into account the impact generated by the increase in public asset valuations, totaled AR$ 526.1 million during the fourth quarter of 2010, an increase of 7.9% compared to the previous quarter.

Private sector gains continued to show sustained growth, increasing 8.0% compared to the previous

quarter. Such increase is mainly due to the private sector loan portfolio increase, particularly in dynamic sectors, together with excellent management of funds.

On the other hand, during the fourth quarter of 2010, a slight improvement was observed as a result of the capital amortizations of public assets that were partially offset by lower income related to foreign currency exchange and the CER adjustment of public assets.

- 5 -

Income related to foreign currency exchange, included as foreign exchange difference, totaled

AR$ 38.7 million, maintaining similar levels to those of the previous quarter.


	Quarter ended							% Change Qtr ended 12/31/10 vs. Qtr ended
in thousands of pesos except percentages	12/31/10			09/30/10		12/31/09		09/30/10			12/31/09

Net financial income		739,037			834,630		611,471		-11.5	%		20.9	%
Net income from financial intermediation		260,363			241,186		184,735		8.0	%		40.9	%
CER adjustment		(278	)		8,760		180		-103.2	%		-254.4	%
Income from securities and short term investments		389,240			505,790		255,202		-23.0	%		52.5	%
Interest on Government guaranteed loans		16,910			18,255		92,069		-7.4	%		-81.6	%
Foreign exchange difference		38,719			39,307		29,164		-1.5	%		32.8	%
Others		34,083			21,332		50,121		59.8	%		-32.0	%

Income from Public and Private Securities

Income from public and private securities, without considering the impact generated by the increase in the public bonds valuations, totaled AR$ 176.3 million during the fourth quarter of 2010, 11.2% higher than that recorded in the previous quarter.

The available-for-sale portfolio and the CER adjustment showed improvement during the fourth quarter.

In addition, Central Bank bills and notes results registered a small decrease compared to the previous quarter.


	Quarter ended						% Change Qtr ended 12/31/10 vs. Qtr ended
in thousands of pesos except percentages	12/31/10		09/30/10		12/31/09		09/30/10			12/31/09
Income from securities and short-term investments		361,066		477,896		227,663		-24.4	%		58.6	%
Trading account		136,980		153,148		99,394		-10.6	%		37.8	%
Available for sale		24,292		19,523		9,490		24.4	%		156.0	%
Bills and Notes from the Central Bank		59,148		63,407		81,490		-6.7	%		-27.4	%
Other fixed income securities		140,645		241,818		37,289		-41.8	%		-477.2	%

CER adjustment		28,174		27,894		27,540		1.0	%		2.3	%

CER adjustment - Trading account		—		—		—		—			—
CER adjustment - Investment account		—		—		—		—			—
CER adjustment - Other fixed securities		28,174		27,894		27,540		1.0	%		2.3	%

Net Income from Services

During the fourth quarter of 2010, net income from services increased 5.2% compared to the third quarter and 18.9% with respect to the same period in 2009.

These increases were mainly the result of higher activity volume generating higher commissions earned on credit cards and deposits services, an effect that was partially offset by increased expenditures for services.

During the fourth quarter of 2010, credit card fee income increased AR$ 23.4 million, representing 46% of the growth in income from services. During this period, deposit services grew 21.1% contributing to 18.3% of the mentioned increase. These increases were a consequence of the strong growth in commercial activity, led to increased business volume.

During 2010, a strong campaign was implemented promoting purchases with credit and debit cards, producing an increase in the expenditures for services of 65% in annual terms.

- 6 -


	Quarter ended									% Change Qtr ended 12/31/10 vs. Qtr ended
in thousands of pesos except percentages	12/31/10			09/30/10			12/31/09			09/30/10			12/31/09
Net income from services		290,356			275,910			244,158			5.2	%		18.9	%

Service charge income		417,549			366,624			321,225			13.9	%		30.0	%
Service charges on deposits accounts		101,279			97,399			83,658			4.0	%		21.1	%
Credit cards and operations		141,790			118,388			108,846			19.8	%		30.3	%
Insurance		38,951			34,257			30,600			13.7	%		27.3	%
Capital markets and securities activities		10,149			5,188			4,799			95.6	%		111.5	%
Fees related to foreign trade		19,571			16,617			14,712			17.8	%		33.0	%
Other fees		105,810			94,775			78,609			11.6	%		34.6	%

Services Charge expense		(127,194	)		(90,715	)		(77,067	)		40.2	%		65.0	%

Administrative Expenses

Administrative expenses decreased 9.7% in the last quarter of 2010 and increased 16.5% compared to the same quarter of 2009.

The negative variation with respect to the previous quarter is the result of a decline in personnel expenses (17.5%) partially offset by a 5% increase in general expenses and to charges related to the voluntary retirement plan that were accounted for as personnel expenses during the previous quarter.

Moreover, general expenses increased as a consequence of higher communication expenses and taxes, offset by lower advertising and promotional charges.

The increase, compared to the fourth quarter of 2009, was a result of the labor agreement signed in 2010, which affected personnel expenses; while general expenses grew because of greater activity volume, more promotions related to commercial campaigns and the effect of inflation.

As of December 31, 2010, the Bank and its subsidiaries (except the Consolidar Group) had 4,588 employees. The branch office network totaled 271 offices, including 240 consumer branch offices, 27 branch offices specializing in the middle-market segment, 4 branch offices for large corporate and institutional clients, as well as 15 in-company branches, and 2 points of sale.


	Quarter ended									% Change Qtr ended 12/31/10 vs. Qtr ended
in thousands of pesos except percentages	12/31/10			09/30/10			12/31/09			09/30/10			12/31/09
Administrative expenses		(505,310	)		(559,391	)		(433,572	)		-9.7	%		16.5	%

Personnel expenses		(298,849	)		(362,273	)		(269,049	)		-17.5	%		11.1	%
Electricity and Communications		(10,700	)		(8,684	)		(7,669	)		23.2	%		39.5	%
Advertising and Promotion		(27,028	)		(28,563	)		(20,348	)		-5.4	%		32.8	%
Honoraries		(10,655	)		(10,411	)		(9,032	)		2.3	%		18.0	%
Taxes		(33,662	)		(30,020	)		(25,281	)		12.1	%		33.2	%
Organization and development		(5,756	)		(5,593	)		(4,396	)		2.9	%		30.9	%
Amortizations		(15,334	)		(14,766	)		(12,423	)		3.8	%		23.4	%
Other		(103,326	)		(99,081	)		(85,374	)		4.3	%		21.0	%

- 7 -

Other Income / Expenses

Other income/expenses totaled a gain of AR$ 7.6 million during the fourth quarter of 2010, mainly due to recovered credits, partially offset by provisions for other contingencies.

Income from Equity Investments

Income from equity investments sets forth net income from related companies that are not consolidated. During the fourth quarter of 2010 there was a gain of AR$ 16.2 million, mainly due to the Bank’s equity stake in the Consolidar Group and in Rombo Cía Financiera.

Balance and Activity

Total Public Sector Exposure

Total exposure to public sector national treasury debt did not show significantly changes during 2010.

The increase in public bonds valuations recorded during that period led to an increase in the value of the assets, partially offset by capital amortizations. Such increase was 26.6% compared to the same quarter of 2009 and 5.3% compared to the previous quarter.

The Bank’s portfolio of Central Bank bills and notes decreased 11% compared to the balance recorded as of December 31, 2009 and increased 17.3% during the last three months.

As of December 2010, public sector national treasure assets, net of holdings linked to reverse repo transactions, represented 10.6% of the Bank’s total assets. And total exposure to BCRA bills and notes represented 9.4% of the Bank’s total assets.


	Quarter ended									% Change Qtr ended 12/31/10 vs. Qtr ended
in thousands of pesos except percentages	12/31/10			09/30/10			12/31/09			09/30/10			12/31/09

Public Sector - National Government		3,126,706			2,968,384			2,468,842			5.3	%		26.6	%
- Loans to the Federal government & Provinces		197,778			277,278			315,960			-28.7	%		-37.4	%
- Total bond portfolio		2,755,742			2,665,743			2,388,243			3.4	%		15.4	%
Unlisted		2,055,451			1,976,055			1,961,046			4.0	%		4.8	%
Available for sale		695,479			530,352			350,596			31.1	%		98.4	%
Other government bonds		4,812			159,336			76,601			-97.0	%		-93.7	%
Reverse repo w/Central Bank		0			0			0			0.0	%		—
- Trustees		173,375			157,423			214,566			10.1	%		-19.2	%
- Allowances		(189	)		(132,060	)		(449,927	)		-99.9	%		-100.0	%

Bills and Notes from Central Bank		2,768,845			2,953,585			3,186,328			-6.3	%		-13.1	%
- Own portfolio		2,768,845			2,359,623			3,110,304			17.3	%		-11.0	%
- Reverse repo w/Central Bank		0			593,962			76,024			100.0	%		-100.0	%

Total exposure to the Public Sector		5,895,551			5,921,969			5,655,170			-0.4	%		4.3	%

Total exposure to the Public Sector without repos		5,895,551			5,328,007			5,579,146			10.7	%		5.7	%

Loan Portfolio

The portfolio of loans to the private sectors grew 47.0% in the last twelve months, and 15.6% during the fourth quarter, exceeding the AR$ 15,000 million recorded at December 31, 2010.

Accompanying the boom in consumption, financing to consumers grew AR$ 2,000 million in the last year, representing an expansion of 43.5%. Such increase was due to the excellent performance of credit cards, personal loans and car loans.

- 8 -

The retail segment achieved growth of 16.4%, during the fourth quarter of 2010, similar to the annual increase, driven by credit cards and personal loans.

As a result of the strategy implemented in the middle market segment, the loan portfolio grew 93.8% during the year. Discounted and purchased notes and long term funding, specifically leasing and financial loans supported that expansion. As in the retail segment, during the fourth quarter of 2010, the evolution of this segment was comparable to the one

shown during the whole year, increasing 18.1% during that period.

Finally, the corporate segment also registered an increase of 28.2% in its portfolio during the year 2010; mostly due to the increases in advances and other financial loans. In the fourth quarter the segment’s loan portfolio grew 11.1%.

The table below shows the composition of the loan portfolio balance at the end of each quarter:


	Quarter ended									% Change Qtr ended 12/31/10 vs. Qtr ended
in thousands of pesos except percentages	12/31/10			09/30/10			12/31/09			09/30/10			12/31/09
Private & Financial sector loans		15,191,356			13,138,109			10,336,588			15.6	%		47.0	%
Advances		2,366,957			2,348,828			1,703,751			0.8	%		38.9	%
Discounted and purchased notes		2,086,979			1,674,905			1,068,567			24.6	%		95.3	%
Consumer Mortgages		840,841			824,883			838,410			1.9	%		0.3	%
Car secured loans		831,981			707,216			480,694			17.6	%		73.1	%
Personal loans		2,473,299			2,189,892			1,819,382			12.9	%		35.9	%
Credit cards		2,457,922			1,949,629			1,464,163			26.1	%		67.9	%
Loans to financial sector		517,193			372,048			335,367			39.0	%		54.2	%
Other loans		3,817,382			3,251,749			2,806,667			17.4	%		36.0	%
Unaccrued interest		(28,292	)		(22,371	)		(16,471	)		26.5	%		71.8	%
Adjustment and accrued interest & exchange differences receivable		223,321			190,768			173,744			17.1	%		28.5	%
Less: Allowance for loan losses		(396,227	)		(349,438	)		(337,686	)		13.4	%		17.3	%
Loans to public sector		197,778			277,278			315,960			-28.7	%		-37.4	%
Loans to public sector		67,317			97,192			117,464			-30.7	%		-42.7	%
Adjustment and accrued interest & exchange differences receivable		130,461			180,086			198,496			-27.6	%		-34.3	%
Net total loans		15,389,134			13,415,387			10,652,548			14.7	%		44.5	%

Asset Quality

As of December 31, 2010, the Bank’ asset quality ratio (non-performing loans over total loans) was 0.51%, while its coverage ratio (provisions over of non-performing loans) reached 492.96%.

During the year 2010, asset quality continued to improve, the end result of the risk policy implemented, which allows the Bank to continue to have the best asset quality ratio of the Argentine financial system, with an outstanding level of coverage.


	Quarter ended									% Change Qtr ended 12/31/10 vs. Qtr ended
in thousands of pesos except percentages	12/31/10			09/30/10			12/31/09			09/30/10			12/31/09
Non-performing loans (1)		80,377			80,798			121,500			-0.5	%		-33.8	%
Allowance for loan losses		(396,227	)		(349,438	)		(337,686	)		13.4	%		17.3	%
Non-performing loans/net total loans		0.51	%		0.59	%		1.11	%		-13.3	%		-53.9	%
Non-performing private loans/net private loans		0.52	%		0.60	%		1.14	%		-13.9	%		-54.7	%
Allowance for loan losses/non-performing loans		492.96	%		432.48	%		277.93	%		14.0	%		77.4	%
Allowance for loan losses/net total loans		2.51	%		2.54	%		3.07	%		-1.1	%		-18.3	%

(1)	Non-performing 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.

- 9 -

The following table shows the performance of provisions for loan losses, including charges relating to transactions recorded under other receivables from financial intermediation.


	Quarter ended									% Change Qtr ended 12/31/10 vs. Qtr ended
in thousands of pesos except percentages	12/31/10			09/30/10			12/31/09			09/30/10			12/31/09
Balance at the beginning of the quarter		354,238			332,166			339,736			6.6	%		4.3	%
Increase / decrease		64,287			45,347			30,665			41.8	%		109.6	%
Provision increase / decrease - Exchange rate difference		115			197			(236	)		-41.6	%		148.7	%
Decrease		(17,438	)		(23,472	)		(27,263	)		-25.7	%		-36.0	%
Balance at the end of the quarter		401,202			354,238			342,902			13.3	%		17.0	%

Deposits

Total deposits on December 31, 2010, exceeded AR$ 22,400 million, increasing 22.9% during the year and 3.8% in the last three months.

During the fourth quarter of 2010, peso denominated deposits showed an increase of 7.7%, whereas deposits denominated in foreign currency decreased by 8.2% during the same period.

As of December 31, 2010, deposits in foreign currency reached AR$ 4,880 million (equivalent to US$ 1,226 million), representing 21.7% of the Bank’s total deposits.

Sight deposits, increased 22.0% compared to the previous year and remained at similar levels compared to the third quarter of 2010.

Within sight deposits, the increase of saving accounts balances stood out, with an increase of 25.9% in the year and 11.0% during the fourth quarter of 2010.

As of December 31, 2010, sight deposits represented 56.7% of total deposits.

Time deposits showed a significant growth, with increases of 23.5% during the last twelve months and 10.7% during the fourth quarter.


	Quarter ended						% Change Qtr ended 12/31/10 vs. Qtr ended
in thousands of pesos except percentages	12/31/10		09/30/10		12/31/09		09/30/10			12/31/09
Total deposits		22,474,802		21,650,827		18,284,543		3.8	%		22.9	%
Current accounts		5,184,414		5,991,280		4,439,513		-13.5	%		16.8	%
Peso denominated		5,180,672		5,420,609		4,047,009		-4.4	%		28.0	%
Foreign currency		3,742		570,671		392,504		-99.3	%		-99.0	%
Saving accounts		7,533,437		6,784,149		5,982,525		11.0	%		25.9	%
Peso denominated		4,690,687		3,994,274		3,848,977		17.4	%		21.9	%
Foreign currency		2,842,750		2,789,875		2,133,548		1.9	%		33.2	%
Time deposits		9,333,132		8,431,339		7,559,265		10.7	%		23.5	%
Peso denominated		7,443,061		6,646,757		5,685,119		12.0	%		30.9	%
CER adjusted time deposits		697		787		971		-11.4	%		-28.2	%
Foreign currency		1,889,374		1,783,795		1,873,175		5.9	%		0.9	%
Investment Accounts		80,904		80,651		19,022		0.3	%		325.3	%
Peso denominated		80,904		80,651		19,022		0.3	%		325.3	%
Other		342,915		363,408		284,218		-5.6	%		20.7	%
Peso denominated		198,539		189,248		137,256		4.9	%		44.6	%
Foreign currency		144,376		174,160		146,962		-17.1	%		-1.8	%

*Rescheduled deposits + CEDROS ()**		48,351		53,019		66,331		-8.8	%		-27.1	%
Peso denominated		48,351		53,019		66,331		-8.8	%		-27.1	%

Total deposits + Rescheduled deposits &
CEDROS		22,523,153		21,703,846		18,350,874		3.8	%		22.7	%

^(*)	The payment of Rescheduled Deposits concluded in August 2005, in accordance with its original schedule, except those deposits that have a pending legal injunction.

- 10 -

Other Funding Sources

On December 31, 2010, other funding sources totaled AR$209.6 million, mostly due to the increase in dollar funding lines, intended mainly to finance imports.

However, the balances did not show significant changes during the last quarter of the year.

By the end of the four quarter of 2010, 43.4% of the balances shown in the table below were denominated in foreign-currency.


	Quarter ended						% Change Qtr ended 12/31/10 vs. Qtr ended
in thousands of pesos except percentages	12/31/10		09/30/10		12/31/09		09/30/10			12/31/09
Lines from other banks		209,609		210,416		72,330		-0.4	%		189.8	%
Senior Bonds		—		—		—		—			—
Other banking liabilities		209,609		210,416		72,330		-0.4	%		189.8	%
Subordinated Debt		—		—		—		—			—

Total other funding sources		209,609		210,416		72,330		-0.4	%		189.8	%

Capitalization

As of December 31, 2010, BBVA Banco Francés’ total stockholders’ equity totaled AR$ 3,746.9 million, increasing 28.0% during the year and 13.7% during the last three months.

The increase was due to gains obtained during the period, together with a decrease in the unrealized valuation due to the positive performance of public bonds accounted in “available for sale”.

By the end of 2010, the excess of capital over the Central Bank regulatory requirements reached AR$ 1,666.5 million, or 44.5% of the Bank’s total stockholders’ equity, maintaining its excellent solvency level.

On the same date, the capital ratio reached 18.2% of the assets adjusted to risk.


	Quarter ended							% Change Qtr ended 12/31/10 vs. Qtr ended
in thousands of pesos except percentages	12/31/10		09/30/10		12/31/09			09/30/10			12/31/09
Capital Stock		536,361		536,361		536,361			0.0	%		0.0	%
Issuance premiums		175,132		175,132		175,132			0.0	%		0.0	%
Adjustments to stockholders equity		312,979		312,979		312,979			0.0	%		0.0	%
Subtotal		1,024,472		1,024,472		1,024,472			0.0	%		0.0	%
Reserves on Profits		802,385		802,385		658,693			0.0	%		21.8	%
Unappropriated retained earnings		1,831,928		1,434,055		1,257,440			27.7	%		45.7	%
Unrealized valuation difference		88,130		34,215		(14,133	)		157.6	%		-723.6	%
Total stockholders’ equity		3,746,915		3,295,127		2,926,472			13.7	%		28.0	%

The variation in the excess over capital required by the BCRA in the last twelve months is mainly related to the increase in computable integration.

- 11 -


	Quarter ended									% Change Qtr ended 12/31/10 vs. Qtr ended
in thousands of pesos except percentages	12/31/10			09/30/10			12/31/09			09/30/10			12/31/09

Central Bank Minimum Capital Requirements		2,144,846			1,947,814			1,665,875			10.1	%		28.8	%
Central Bank Minimum Capital Requirements (a, b)		1,924,898			1,745,362			1,515,324			10.3	%		27.0	%
Market Risk		127,025			127,544			86,074			-0.4	%		47.6	%
Increase in capital requirements related to custody		92,923			74,908			64,477			24.0	%		44.1	%

a) Central Bank Minimum Capital Requirements		1,924,898			1,745,362			1,515,324			10.3	%		27.0	%
Allocated to Asset at Risk		1,307,406			1,168,780			971,214			11.9	%		34.6	%
Allocated to Immobilized Assets		103,164			93,108			100,065			10.8	%		3.1	%
Interest Rate Risk		227,840			210,517			175,978			8.2	%		29.5	%
Loans to Public Sector and Securities in Investment		286,488			272,957			268,067			5.0	%		6.9	%
Non Compliance of Other Credit Regulations		—			—			—			—			—

b) Minimum capital required for Pension Funds (AFJPs) to act as securities custodian and registrar of mortgage notes		1,858,458			1,498,161			1,289,541			24.0	%		44.1	%
5% of the securities in custody and book-entry notes		1,858,458			1,498,161			1,289,541			24.0	%		44.1	%

Bank Capital Calculated under Central Bank Rules		3,811,371			3,372,537			3,064,366			13.0	%		24.4	%
Core Capital		2,460,605			2,460,605			2,222,143			0.0	%		10.7	%
Minority Interest		251,096			297,660			288,959			-15.6	%		-13.1	%
Supplemental Capital		1,173,652			690,497			631,549			70.0	%		85.8	%
Deductions		(73,982	)		(76,225	)		(78,285	)		-2.9	%		-5.5	%
Excess over Required Capital		1,666,525			1,424,723			1,398,491			17.0	%		19.2	%

Capital Ratio (Central Bank rules)		18.2	%		19.3	%		18.6	%		-5.6	%		-2.1	%
Excess over Required Capital as a % of Shareholders´Equity		44.5	%		43.2	%		47.8	%		2.9	%		-6.9	%

Additional Information


	Quarter ended									% Change Qtr ended 12/31/10 vs. Qtr ended
in pesos except percentages	12/31/10			09/30/10			12/31/09			09/30/10			12/31/09
- Exchange rate		3.9758			3.9607			3.7967			0.4	%		4.7	%
- Quarterly CER adjustment		2.31	%		2.29	%		2.39	%		1.0	%		-3.0	%

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 Francés’ earnings, business plans, cost-reduction plans, and capitalization plan, and trends affecting BBVA Banco Francés’ 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 Francés’ 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 Francés’ 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.

- 12 -

Conference call

A conference call to discuss the fourth quarter earnings will be held on Friday, February 11, 2011, at 10:00 AM New York time – 12:00 PM Buenos Aires time. If you are interested in participating, please dial (888) 708-5701 within the U.S. or +1 (913) 312-1427 outside the U.S. at least 5 minutes prior to our conference. Confirmation code: 2298211.

Internet

This press release is also available on www.bancofrances.com.ar

Contacts

Cecilia Acuña

Investor Relations

(5411) 4341-5036

cecilia.acuna@bancofrances.com.ar

Paula Bennati

Investor Relations

(5411)4348-0000

paula.bennati@bancofrances.com.ar

- 13 -

BBVA Banco Francés S.A. and subsidiaries (Grupo Consolidar: by the equity method)

BALANCE SHEET


ASSETS : (in thousands of pesos)	12/31/10			09/30/10			06/30/10			12/31/09
Cash and due from banks		5,690,995			6,229,957			6,368,283			5,166,121
Government and Private Securities		5,537,796			5,490,599			4,331,768			5,130,730
- Trading account (listed securities)		4,813			69,915			4,127			8,352
- Available for sale		1,228,297			950,737			853,420			640,175
- Reverse repo w/Central Bank		—			593,962			243,107			68,250
- Unlisted		2,055,451			1,976,055			1,881,323			1,961,046
- Listed Private Securities		13,398			3,331			5,542			6,086
- Bills and Notes from the Central Bank		2,236,026			2,028,659			1,769,193			2,896,748
Less: Allowances		(189	)		(132,060	)		(424,944	)		(449,927	)
Loans		15,389,134			13,415,387			11,920,660			10,652,548
- Loans to the private & financial sector		15,191,356			13,138,109			11,658,516			10,336,588
- Advances		2,366,957			2,348,828			1,929,809			1,703,751
- Discounted and purchased notes		2,086,979			1,674,905			1,383,903			1,068,567
- Secured with mortgages		840,841			824,883			823,903			838,410
- Car secured loans		831,981			707,216			580,180			480,694
- Personal loans		2,473,299			2,189,892			1,995,985			1,819,382
- Credit cards		2,457,922			1,949,629			1,787,499			1,464,163
- Loans to financial sector		517,193			372,048			336,462			335,367
- Other loans		3,817,382			3,251,749			2,993,753			2,806,667
Less: Unaccrued interest		(28,292	)		(22,371	)		(17,680	)		(16,471	)
Plus: Interest & FX differences receivable		223,321			190,768			171,163			173,744
Less: Allowance for loan losses		(396,227	)		(349,438	)		(326,461	)		(337,686	)
- Public Sector loans		197,778			277,278			262,144			315,960
Principal		67,317			97,192			89,178			117,464
Plus: Interest & FX differences receivable		130,461			180,086			172,966			198,496
Other banking receivables		997,607			4,051,782			1,052,529			884,467
- Repurchase agreements		—			598,169			218,677			76,397
- Unlisted private securities		78,688			94,249			94,397			88,131
- Unlisted Private securities :Trustees		119			119			42,247			39,357
- Other banking receivables		923,775			3,364,045			702,913			685,798
- Less: provisions		(4,975	)		(4,800	)		(5,705	)		(5,216	)
Investments in other companies		311,089			424,223			410,977			399,496
Intangible assets		63,700			64,331			65,231			55,097
- Organization and development charges		63,700			64,331			65,231			55,097
Other assets		1,407,938			1,254,234			1,123,039			1,083,195

TOTAL ASSETS		29,398,259			30,930,513			25,272,487			23,371,654


LIABILITIES:	12/31/10			09/30/10			06/30/10			12/31/09
Deposits		22,523,153			21,703,846			20,131,916			18,350,874
- Current accounts		5,184,414			5,991,280			5,326,898			4,439,513
- Saving accounts		7,533,437			6,784,149			6,434,047			5,982,525
- Time deposits		9,333,132			8,431,339			7,888,285			7,559,265
- Investment Accounts		80,904			80,651			73,518			19,022
- Rescheduled deposits - CEDROS		48,351			53,019			57,753			66,331
- Other deposits		342,915			363,408			351,415			284,218
Other banking Liabilities		1,989,427			4,874,725			1,569,324			1,195,048
Other provisions		325,932			326,685			346,209			318,659
- Other contingencies		325,494			326,248			345,774			318,231
- Guarantees		438			437			435			428
Other liabilities		743,816			666,195			383,056			528,205
Minority interest		69,016			63,935			60,426			52,396

TOTAL LIABILITIES		25,651,344			27,635,386			22,490,931			20,445,182

TOTAL STOCKHOLDERS' EQUITY		3,746,915			3,295,127			2,781,556			2,926,472

Total liabilities + stockholders' equity		29,398,259			30,930,513			25,272,487			23,371,654

- 14 -

BBVA Banco Francés S.A. and subsidiaries (Grupo Consolidar: by the equity method)


INCOME STATEMENT	12/31/10			09/30/10			06/30/10			12/31/09
(in thousands of pesos)

Financial income		975,221			1,054,863			610,298			819,349
- Interest on Cash and Due from Banks		—			—			—			—
- Interest on Loans Granted to the Financial Sector		17,988			15,258			15,275			20,138
- Interest on Overdraft		85,450			78,680			71,999			85,868
- Interest on Discounted and purchased notes		51,437			42,432			38,005			36,877
- Interest on Mortgages		29,080			27,882			27,080			29,768
- Interest on Car Secured Loans		30,910			26,483			24,221			23,289
- Interest on Credit Card Loans		66,096			64,428			50,436			48,285
- Interest on Other Loans		203,277			186,711			165,977			148,105
- From Other Banking receivables		4,528			7,974			445			259
- Interest on Government Guaranteed Loans Decree 1387/01		16,910			18,255			21,479			92,069
- Income from Securities and Short Term Investments		389,240			505,790			112,293			255,202
- Net Income from options		2,271			2,618			(395	)		—
- CER		(231	)		8,807			256			247
- Foreign exchange difference		38,719			39,307			41,939			29,164
- Other		39,546			30,238			41,288			50,078
Financial expenses		(236,184	)		(220,233	)		(176,998	)		(207,878	)
- Interest on Current Account Deposits		(6	)		(3	)		(1,332	)		(4,702	)
- Interest on Saving Account Deposits		(1,758	)		(1,570	)		(1,529	)		(2,540	)
- Interest on Time Deposits		(172,867	)		(160,324	)		(142,790	)		(166,980	)
- Interest on Other Banking Liabilities		(7,276	)		(3,640	)		(2,195	)		(2,172	)
- Other interests (includes Central Bank)		(3,726	)		(6,071	)		(630	)		(715	)
- CER		(47	)		(47	)		(66	)		(67	)
- Bank Deposit Guarantee Insurance system mandatory contributions		(9,778	)		(8,882	)		(8,262	)		(7,904	)
- Mandatory contributions and taxes on interest income		(32,992	)		(28,172	)		(24,194	)		(22,841	)
- Other		(7,734	)		(11,524	)		4,000			43
Net financial income		739,037			834,630			433,300			611,471
Provision for loan losses		(64,287	)		(45,347	)		(39,013	)		(30,665	)
Income from services, net of other operating expenses		290,356			275,910			249,349			244,158
Administrative expenses		(505,310	)		(559,391	)		(444,672	)		(433,571	)
Income (loss) from equity investments		16,187			18,477			16,293			6,156
Net Other income		7,634			31,718			(16,931	)		(12,757	)
Income (loss) from minority interest		(4,997	)		(3,509	)		(3,546	)		(4,010	)
Income before tax		478,620			552,488			194,780			380,782
Income tax		(80,748	)		(115,228	)		8,593			(119,533	)

Net income		397,872			437,260			203,373			261,249

- 15 -


BBVA Banco Francés S.A. and subsidiaries (Grupo Consolidar consolidated on a line by line basis)

ASSETS	12/31/10			09/30/10			06/30/10			12/31/09

Cash and due from banks		5,691,806			6,231,889			6,567,669			5,255,412
Government Securities		7,495,382			7,519,515			6,259,700			7,214,232
Loans		16,699,852			14,786,836			13,111,785			11,751,889
Other Banking Receivables		1,043,859			4,078,700			1,083,813			931,465
Assets Subject to Financial Leasing		534,457			423,317			312,124			311,784
Investments in other companies		110,138			110,215			102,267			106,289
Other assets		1,004,752			970,992			913,272			820,522

TOTAL ASSETS		32,580,246			34,121,464			28,350,630			26,391,593


LIABILITIES	12/31/10			09/30/10			06/30/10			12/31/09

Deposits		22,461,307			21,653,704			20,094,322			18,334,845
Other banking liabilities		1,992,801			4,879,470			1,582,024			1,224,668
Minority interest		179,192			232,053			226,991			213,182
Other liabilities		4,200,031			4,061,110			3,665,737			3,692,426

TOTAL LIABILITIES		28,833,331			30,826,337			25,569,074			23,465,121


TOTAL STOCKHOLDERS´EQUITY		3,746,915			3,295,127			2,781,556			2,926,472


STOCKHOLDERS’ EQUITY + LIABILITIES		32,580,246			34,121,464			28,350,630			26,391,593


NET INCOME	12/31/10			09/30/10			06/30/10			12/31/09

Net Financial Income		889,587			973,715			556,621			713,915
Provision for loan losses		(64,287	)		(45,347	)		(39,013	)		(30,665	)
Net Income from Services		289,922			275,814			249,319			244,459
Administrative expenses		(514,440	)		(573,177	)		(445,318	)		(459,938	)
Net Other Income		(80,768	)		(63,549	)		(115,012	)		(85,893	)

Income Before Tax		520,014			567,456			206,597			381,878

Income Tax		(109,859	)		(125,133	)		7,111			(119,216	)

Net income		410,155			442,323			213,708			262,662

Minoritary Interest		(12,283	)		(5,063	)		(10,335	)		(1,413	)

Net income for Quarter		397,872			437,260			203,373			261,249

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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: February 10, 2011

/s/ José Carlos López Álvarez

José Carlos López Álvarez

Chief Financial Officer