o |
REGISTRATION
STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT
OF 1934
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OR
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x |
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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For
the fiscal year ended December 31, 2008
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OR
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o |
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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For
the transition period
from to
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OR
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o |
SHELL
COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
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Date
of event requiring this shell company report
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For
the transition period
from to
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Title of each
class
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Name of each
exchange on which registered
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American
Depositary Shares, each representing the right to receive three ordinary
shares, par value Ps.1.00 per share
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New
York Stock Exchange
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Ordinary
shares, par value Ps.1.00 per share
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New
York Stock Exchange*
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* The
ordinary shares are not listed for trading, but are listed only in
connection with the registration of the American Depositary Shares,
pursuant to requirements of the New York Stock
Exchange.
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Title of
class
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Number of
shares outstanding
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Ordinary
Shares, par value Ps.1.00 per share
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471,361,306
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U.S.
GAAP o
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International
Financial Reporting Standards by the International Accounting
Standards Board as issued o
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Other
x
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158
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159
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159
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159
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§
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Changes
in general economic, business or political or other conditions in the
Republic of Argentina (“Argentina”) or changes in general economic or
business conditions in Latin
America;
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§
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Changes
in capital markets in general that may affect policies or attitudes toward
lending to Argentina or Argentine
companies;
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§
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Increased
costs and decreased income related to macroeconomic variables such as
exchange rates and the Consumer Price Index
(“CPI”);
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§
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Unanticipated
increases in financing and other costs or the inability to obtain
additional debt or equity financing on attractive terms;
and
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§
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The
factors discussed under “Risk
Factors”.
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December
31,
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||||||||||||
Entity
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2008
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2007
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2006
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|||||||||
PSA
Finance Argentina Compañía Financiera S.A.
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X | X | X | |||||||||
Consolidar
AFJP S.A.
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X | X | X | |||||||||
Consolidar
Compañía de Seguros de Vida S.A. and subsidiary
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X | X | X | |||||||||
Consolidar
Compañía de Seguros de Retiro S.A. and subsidiary
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X | X | X | |||||||||
Francés
Valores Sociedad de Bolsa S.A.
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X | X | X | |||||||||
Atuel
Fideicomisos S.A. and subsidiary
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X | X | X |
For
the Fiscal Year Ended December 31,
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||||||||||||||||||||
2008
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2007
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2006
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2005
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2004
(9)
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||||||||||||||||
(in
thousands of pesos) (1)
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||||||||||||||||||||
CONSOLIDATED
INCOME STATEMENT
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||||||||||||||||||||
Amounts
in accordance with Argentine Banking GAAP
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||||||||||||||||||||
Financial
income
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2,279,104 | 1,904,212 | 1,936,404 | 1,654,152 | 1,154,825 | |||||||||||||||
Financial
expenses
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(1,201,681 | ) | (680,131 | ) | (568,345 | ) | (608,949 | ) | (458,360 | ) | ||||||||||
Gross
intermediation margin
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1,077,423 | 1,224,081 | 1,368,059 | 1,045,203 | 696,465 | |||||||||||||||
Provision
for loan losses
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(36,708 | ) | (62,262 | ) | (70,125 | ) | (114,628 | ) | (52,002 | ) | ||||||||||
Service
charge income
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1,190,417 | 1,182,789 | 915,875 | 721,167 | 584,913 | |||||||||||||||
Service
charge expenses
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(240,631 | ) | (158,927 | ) | (110,199 | ) | (77,764 | ) | (54,829 | ) | ||||||||||
Operating
expenses
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(1,413,448 | ) | (1,124,161 | ) | (927,404 | ) | (775,835 | ) | (679,829 | ) | ||||||||||
(Net
other expenses) / Net other income
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(227,074 | ) | (756,536 | ) | (885,473 | ) | (645,076 | ) | (458,764 | ) | ||||||||||
Income
/ (Loss) before income tax
|
349,979 | 304,984 | 290,733 | 153,067 | 35,954 | |||||||||||||||
Income
tax
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(31,270 | ) | (50,394 | ) | (71,680 | ) | (18,712 | ) | (77,099 | ) | ||||||||||
Monetary
loss
|
— | — | — | — | ||||||||||||||||
Net
income / (loss)
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318,709 | 254,590 | 219,053 | 134,355 | (41,145 | ) | ||||||||||||||
Net
(loss) / income on minority interests in subsidiaries
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2,801 | (19,541 | ) | (39,016 | ) | (17,151 | ) | (12,901 | ) | |||||||||||
Final
consolidated income / (loss)
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321,510 | 235,049 | 180,037 | 117,204 | (54,046 | ) | ||||||||||||||
Net
operating revenue (3)
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2,027,209 | 2,247,943 | 2,173,735 | 1,688,606 | 1,226,549 | |||||||||||||||
Operating
income (4)
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577,053 | 1,061,520 | 1,176,206 | 798,143 | 494,718 | |||||||||||||||
Net income / (loss)
per ordinary shares (2)
(10)
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0.68 | 0.50 | 0.38 | 0.25 | (0.14 | ) | ||||||||||||||
Net
income / (loss) per ADS (2)
(10)
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2.04 | 1.50 | 1.14 | 0.75 | (0.42 | ) | ||||||||||||||
Declared dividends
per ordinary share (10)(12)
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0.21215 | 0.34793 | 0.19093 | 0.05728 | — | |||||||||||||||
Declared dividends
per ADS (10)(12)
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0.63645 | 1.04379 | 0.57279 | 0.17184 | — | |||||||||||||||
Net
operating income per ordinary shares (2)
(10)
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1.22 | 2.25 | 2.50 | 1.69 | 1.28 | |||||||||||||||
Net
operating income per ADS (2)
(10)
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3.66 | 6.75 | 7.50 | 5.07 | 3.84 | |||||||||||||||
Average ordinary
shares outstanding (000s) primary (10)
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471,361 | 471,361 | 471,361 | 471,361 | 385,334 | |||||||||||||||
Net
income / (loss) per ordinary shares (2)
(11)
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0.68 | 0.50 | 0.38 | 0.25 | (0.13 | ) | ||||||||||||||
Net
income / (loss) per ADS (2)
(11)
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2.04 | 1.50 | 1.14 | 0.75 | (0.39 | ) | ||||||||||||||
Declared dividends
per ordinary share (11)(12)
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0.21215 | 0.34793 | 0.19093 | 0.05728 | — | |||||||||||||||
Declared dividends
per ADS (11)(12)
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0.63645 | 1.04379 | 0.57279 | 0.17184 | — | |||||||||||||||
Net
operating income per ordinary shares (2)
(11)
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1.22 | 2.25 | 2.50 | 1.69 | 1.18 | |||||||||||||||
Net
operating income per ADS (2)
(11)
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3.66 | 6.75 | 7.50 | 5.07 | 3.54 | |||||||||||||||
Average ordinary
shares outstanding (000s) primary (11)
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471,361 | 471,361 | 471,361 | 471,361 | 419,745 | |||||||||||||||
Amounts
in accordance with U.S. GAAP:
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||||||||||||||||||||
Net
income / (loss)
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915,081 | 909,080 | 977,543 | 1,634,612 | 1,407,519 | |||||||||||||||
Net
income / (loss) per ordinary share (2)
(10)
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1.94 | 1.93 | 2.07 | 3.47 | 3.65 | |||||||||||||||
Net
income / (loss) per ADS (2)
(10)
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5.82 | 5.79 | 6.21 | 10.41 | 10.95 | |||||||||||||||
Average
ordinary shares outstanding (000s) primary (10)
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471,361 | 471,361 | 471,361 | 471,361 | 385,334 | |||||||||||||||
Net
income / (loss) per ordinary share (2)
(11)
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1.94 | 1.93 | 2.07 | 3.47 | 3.35 | |||||||||||||||
Net
income / (loss) per ADS (2)
(11)
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5.82 | 5.79 | 6.21 | 10.41 | 10.05 | |||||||||||||||
Average
ordinary shares outstanding (000s) primary (11)
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471,361 | 471,361 | 471,361 | 471,361 | 419,745 |
For
the Fiscal Year Ended December 31,
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||||||||||||||||||||
2008
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2007
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2006
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2005
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2004
(9)
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||||||||||||||||
(in
thousands of pesos) (1)
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||||||||||||||||||||
CONSOLIDATED
BALANCE SHEET
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||||||||||||||||||||
Amounts
in accordance with Argentine Banking GAAP
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||||||||||||||||||||
Cash
and due from banks
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4,243,080 | 3,169,314 | 2,558,484 | 1,611,506 | 1,666,617 | |||||||||||||||
Government
and private securities
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5,233,660 | 5,181,253 | 4,372,032 | 3,504,311 | 2,476,948 | |||||||||||||||
Loans,
net of allowances
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12,507,489 | 11,390,121 | 9,534,183 | 8,481,476 | 9,268,723 | |||||||||||||||
Other
assets
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3,841,236 | 2,282,311 | 2,369,930 | 2,386,455 | 2,629,384 | |||||||||||||||
Total
assets
|
25,825,465 | 22,022,999 | 18,834,629 | 15,983,748 | 16,041,672 | |||||||||||||||
Deposits
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17,079,203 | 15,009,758 | 12,505,756 | 10,613,086 | 8,993,780 | |||||||||||||||
Other
liabilities and minority interest in subsidiaries
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6,670,238 | 4,956,404 | 4,374,289 | 3,569,115 | 5,363,549 | |||||||||||||||
Total
liabilities and minority interest in subsidiaries
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23,749,441 | 19,966,162 | 16,880,045 | 14,182,201 | 14,357,329 | |||||||||||||||
Capital
stock
|
471,361 | 471,361 | 471,361 | 471,361 | 471,361 | |||||||||||||||
Issuance
premiums
|
175,132 | 175,132 | 175,132 | 175,132 | 1,195,390 | |||||||||||||||
Adjustments
to stockholders’ equity
|
312,979 | 312,979 | 312,979 | 312,979 | 769,904 | |||||||||||||||
Retained
earnings
|
594,391 | 547,381 | 465,317 | 428,698 | 430,500 | |||||||||||||||
Unrealized
valuation difference
|
(181,119 | ) | (42,796 | ) | — | 230,282 | 230,282 | |||||||||||||
Unappropriated
earnings
|
703,280 | 592,780 | 529,795 | 183,095 | (1,413,094 | ) | ||||||||||||||
Total
stockholders’ equity
|
2,076,024 | 2,056,837 | 1,954,584 | 1,801,547 | 1,684,343 | |||||||||||||||
Amounts
in accordance with U.S. GAAP
|
||||||||||||||||||||
Total
assets
|
27,199,899 | 23,266,358 | 19,230,659 | 15,421,682 | 14,069,122 | |||||||||||||||
Total
stockholders’ equity
|
2,055,925 | 1,944,331 | 1,219,846 | 246,268 | (1,325,801 | ) | ||||||||||||||
SELECTED
RATIOS IN ACCORDANCE WITH ARGENTINE BANKING GAAP
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||||||||||||||||||||
Profitability
and Performance
|
||||||||||||||||||||
Return
on average total assets (5)
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1.34 | % | 1.15 | % | 1.03 | % | 0.73 | % | (0.33 | )% | ||||||||||
Return
on average stockholders’ equity (6)
|
15.56 | % | 11.72 | % | 9.59 | % | 6.72 | % | (3.32 | )% | ||||||||||
Services
charge income as a percentage of operating expenses
|
84.22 | % | 105.22 | % | 98.76 | % | 92.95 | % | 86.04 | % | ||||||||||
Operating
expenses as a percentage of average total assets (7)
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5.91 | % | 5.50 | % | 5.33 | % | 4.85 | % | 4.20 | % | ||||||||||
Capital
|
||||||||||||||||||||
Stockholders’
equity as a percentage of total assets
|
8.04 | % | 9.34 | % | 10.38 | % | 11.27 | % | 10.50 | % | ||||||||||
Total
liabilities as a multiple of stockholders’ equity
|
11.44 | % | 9.71 | x | 8.64 | x | 7.87 | x | 8.52 | x | ||||||||||
Credit
Quality
|
||||||||||||||||||||
Allowances
for loan losses as a percentage of total loans
|
1.55 | % | 1.71 | % | 1.72 | % | 2.13 | % | 2.14 | % | ||||||||||
Non-performing
loans as a percentage of gross loans (8)
|
0.87 | % | 0.54 | % | 0.82 | % | 1.08 | % | 1.11 | % | ||||||||||
Allowances
for loan losses as a percentage of non-performing loans (8)
|
177.50 | % | 315.55 | % | 209.20 | % | 197.80 | % | 192.79 | % |
(1)
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Except
per-share and per-ADS data and financial
ratios.
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(2)
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Assumes
average ordinary shares outstanding in each period. The cash dividend
amounts do not reflect any deduction for certain charges that are taken
with regards to the “American Depositary
Receipts”.
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(3)
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Includes:
financial income, financial expenses, service charge income and service
charge expenses.
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(4)
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Includes:
financial income, financial expenses, provision for loan losses, services
charge income, service charge expenses and operating
expenses.
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(5)
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Net
income as a percentage of average total assets, computed as the average of
fiscal-year-beginning and fiscal-year-ending
balances.
|
(6)
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Net
income as a percentage of average stockholders’ equity, computed as the
average of fiscal-year-beginning and fiscal-year-ending
balances.
|
(7)
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Operating
expenses as a percentage of average total assets, computed as the average
of fiscal-year-beginning and fiscal-year-ending
balances.
|
(8)
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Non-performing loans
include all loans to borrowers classified as “Problem”, “Medium Risk”,
“High Risk of Insolvency”, “High Risk”, “Irrecoverable” and “Irrecoverable
for Technical Decision” according to the Central Bank’s loan
classification system as well as all loans contractually past due 90 days
or more. See “Information
on the Company—Selected Statistical Information—Allowance for Loan Losses
and Loan Loss
Experience”.
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(9)
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Restated
from its original version to apply the adjustments to prior years income
to these Consolidated Financial Statements related with Argentine Central
Bank regulations.
|
(10)
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The
average ordinary shares outstanding was computed as the average of the
previous twelve months.
|
(11)
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The
average ordinary shares outstanding was computed as the average of
fiscal-year-beginning and fiscal-year-ended.
|
(12)
|
For
the fiscal year ended December 31, 2008 the dividends were paid Ps. 35
million in cash and Ps. 65 through the issue of new shares. For the fiscal
years ended December 31, 2007, December 31, 2006 and December 31, 2005 the
dividends were paid totally in
cash.
|
Declared
Dividends
Per
Ordinary Share(5)
|
Declared
Dividends Per
ADS(5)
|
|||||||||||||||
Ps.(1)
|
U.S.$
|
Ps.(1)
|
U.S.$
|
|||||||||||||
December
31, 2008 (3)
(4)
|
0.21215 | 0.78319 | 0.63645 | 2.34958 | ||||||||||||
December
31, 2007 (2)
(3)
|
0.34793 | 1.10252 | 1.04379 | 3.30756 | ||||||||||||
December
31, 2006 (2)
(3)
|
0.19093 | 0.58816 | 0.57279 | 1.76448 | ||||||||||||
December
31, 2005 (2)
(3)
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0.05728 | 0.17619 | 0.17184 | 0.52858 | ||||||||||||
December
31, 2004 (3)
|
— | — | — | — |
(1)
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Historical
values.
|
(2)
|
Based
upon the reference exchange rate quoted by Central Bank on the date of
payment.
|
(3)
|
On
April 2002, the Central Bank suspended the payment of dividends by
Argentine financial institutions. As of June 2, 2004 the Central Bank will
make some exceptions to the suspension of profits distributions and may
pre-authorize dividend payments under certain conditions. See “Financial
Information – Dividends”.
|
(4)
|
Based upon the
reference exchange rate quoted by Central Bank at
March 26, 2009.
|
(5)
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For
the fiscal year ended December 31, 2008 the dividends were paid Ps. 35
million in cash and Ps. 65 through the issue of new shares. For the fiscal
years ended December 31, 2007, December 31, 2006 and December 31, 2005 the
dividends were paid totally in
cash.
|
Year
/Period
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High
|
Low
|
Average
(1)
|
|||
February
2009 (2)
|
Ps.
3.5595
|
Ps.
3.4860
|
Ps.
3.5115
|
|||
January
2009 (2)
|
Ps.
3.4875
|
Ps.
3.4497
|
Ps.
3.4640
|
|||
2008
(2)
|
Ps.
3.4537
|
Ps.
3.0128
|
Ps.
3.1614
|
|||
December
2008 (2)
|
Ps.
3.4537
|
Ps.
3.3763
|
Ps.
3.4226
|
|||
November
2008 (2)
|
Ps.
3.3800
|
Ps.
3.2993
|
Ps.
3.3292
|
|||
October
2008 (2)
|
Ps.
3.3797
|
Ps.
3.1350
|
Ps.
3.2385
|
|||
September
2008 (2)
|
Ps.
3.1302
|
Ps.
3.0305
|
Ps.
3.0824
|
|||
2007
(2)
|
Ps.
3.1797
|
Ps.
3.0553
|
Ps.
3.1156
|
|||
2006
(2)
|
Ps.
3.1072
|
Ps.
3.0305
|
Ps.
3.0741
|
|||
2005
(2)
|
Ps.
3.0523
|
Ps.
2.8592
|
Ps.
2.9232
|
|||
2004
(2)
|
Ps.
3.0718
|
Ps.
2.8037
|
Ps.
2.9415
|
(1)
|
The
average of monthly average rates during the period.
|
(2)
|
Source:
Central Bank.
|
For
the Fiscal Year Ended December 31,
|
||||||||||||||||||||
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||||||||
Devaluation
Rate
|
9.61%
|
2.66%
|
1.25%
|
1.94%
|
1.39%
|
|||||||||||||||
Exchange
Rate
|
3.4537
|
3.1510
|
3.0695
|
3.0315
|
2.9738
|
|||||||||||||||
Inflation
Rate (1)
|
8.98%
|
14.56%
|
7.17%
|
10.59%
|
7.92%
|
|
i)
|
GDP
increased by 8.8%, 9.0%, 9.2%, 8.5%, 8.7% and 7% during 2003, 2004, 2005,
2006, 2007 and 2008, respectively;
|
|
ii)
|
the
unemployment rate declined from 20.8% to 7.3% between the 4th quarters of
2002 and 2008;
|
|
iii)
|
total
deposits in the financial system grew approximately 228% between December
2002 and December 2008;
|
|
iv)
|
the
foreign exchange rate after the initial depreciation has remained
relatively stable at around 3 pesos per dollar, ending 2008 at 3.4537
pesos per dollar (BCRA
reference);
|
|
v)
|
the
restructuring of the Argentine Sovereign Debt was completed in June 2005
with a bondholder participation by rate of approximately 76.15% and an
aggregate tendered amount of U.S.$62.3 billion;
and
|
|
vi)
|
the
primary balance of the GDP increased considerably by 2.5%, 3.9%, 3.7%,
3.5%, 3.2% and 3.15% during 2003, 2004, 2005, 2006, 2007 and 2008,
respectively.
|
|
§
|
On
March 5, 2003, the action for the protection of constitutional rights
brought against the Federal Government by the Province of San Luis, the
Banco de la Nación Argentina and the BCRA was declared to be
unconstitutional, ordering the return of the amounts deposited in either
U.S. dollars or the equivalent in pesos at the free market rate of
exchange.
|
|
§
|
On
July 13, 2004, in the case “Cabrera, Geronimo Rafael vs. Poder Ejecutivo
Nacional s/ Amparo”, the Supreme Court rejected the claim of a depositor
on the grounds that the depositor had exercised his rights within the
framework of the emergency laws and collected a portion of his deposit in
pesos without reserving the right to claim the difference in U.S. dollars
at the exchange rate prevailing in the open
market.
|
|
§
|
On
September 14, 2004, in the case “Campbell, Maria Enriqueta vda. de Tufiño
y otro vs. Poder Ejecutivo Nacional. - Banco de Salta S.A. Grupo Macro s/
Amparo- Medida Cautelar”, the Supreme Court rejected the claim of a
depositor that was filed before the Court of Original Jurisdiction and the
Court of Appeals, declaring the unconstitutionality of the emergency rule
questioned regarding the pesification of the deposit funds in foreign
currency.
|
|
§
|
On
October 26, 2004, in the case entitled “Bustos, Alberto Roque y otros vs.
Poder Ejecutivo Nacional y otros s/ Amparo”, the Supreme Court revoked a
decision on the protection of constitutional rights (amparo), declaring
that such action is not adequate for such claim and upheld the
constitutionality of the rule by which the Argentine economy was
pesificated due to the economic, financial and exchange emergency
situation which the country is going through, also confirmed by Congress
Law. The revoked decision of the Original Jurisdiction does not state how
the Judge of this jurisdiction will resolve the fullfilment of the Court
and for such reason proceed to the refund of the amount already paid due
to the legal claims ordered by a Grade
Judge.
|
|
§
|
On
December 27, 2006, in the case “Massa, Juan Agustin vs. Poder Ejecutivo
Nacional – Dto. 1570 y Otro s/ Amparo Ley 16,986” the Supreme Court
confirmed the constitutionality of the emergency legislation during 2001
and 2002 regarding the
|
pesification of the Argentine economy and stated the calculation method applicable for the restitution of the deposits in the financial system subject to the mentioned emergency legislation. This calculation method is substantially different from the method that was originally enforced by the Executive Branch because it entitles each deposit holder to receive from the corresponding financial institution the reimbursement of his deposit at an exchange rate of Ps.1.4 = U.S.$1, adjusted by the benchmark stabilization coefficient known as and herein referred to as “CER” until payment date, plus a 4% annual compensatory interest for every concept which cannot be capitalized. CER is a stabilization coefficient applicable to debt obligations that have been pesificated as from February 4, 2002. This coefficient is calculated according to the variation of the Consumer Price Index published by a government dependent organism known as INDEC. Both in this court order as well as in a more recent one, “Kujarchuk vs/ Poder Ejecutivo Nacional”, the National Supreme Court establishes that the amounts withdrawn from the bank by judicial or non-judicial court measures will be considered advance payments, thus being obliged to deduce from the original tax in foreign currency, the percentage that, once converted into such currency, represents those payments converted into U.S. dollars at the free market quotation corresponding to each date. The payments thus effected are consolidated and deducted in this way in the liquidation made in accordance with the Massa case. Legal costs are applied in this instance pursuant to the order thereof and according to the Court of Appeals’ resolutions in prior cases. Also, the Supreme Court restricts the remaining amount to be refunded to the limit fixed by the Supreme Court, that is to say, the value in U.S. dollars of the original deposit. |
§
|
Consolidar AFJP
S.A.
|
§
|
Consolidar Compañía de
Seguros de Vida S.A.
|
§
|
Consolidar Compañía de Seguros de Retiro
S.A.
|
As
of December 31, 2008
(in
thousands of pesos)
|
||||||||||||||||||||
Banking
and
Financial
|
Pension
Fund
Management
|
Insurance
|
Eliminations (1)
|
Total
|
||||||||||||||||
Total
assets
|
22,853,247 | 285,011 | 2,872,885 | (185,678 | ) | 25,825,465 | ||||||||||||||
Total
income (2)
|
3,415,777 | 249,936 | 681,916 | (104,657 | ) | 4,242,972 | ||||||||||||||
Total
expenses (3)
|
(3,086,872 | ) | (286,537 | ) | (655,511 | ) | 104,657 | (3,924,263 | ) | |||||||||||
Loss
on minority interest in subsidiaries
|
(5,203 | ) | 16,876 | (8,872 | ) | — | 2,801 | |||||||||||||
Total
net income
|
323,702 | (19,725 | ) | 17,533 | — | 321,510 |
(1)
|
Includes
intercompany operations.
|
|
(2)
|
Includes:
financial income, service charge income and other
income.
|
|
(3)
|
Includes:
financial expenses, provision for loan losses, service charge expenses,
operating expenses, other expenses and income tax and tax on minimum
presumed income.
|
Loans
|
||||||||||||||||||||||||
December
31, 2008
|
December
31, 2007
|
December
31, 2006
|
||||||||||||||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||||||||||||||
Public
Sector
|
2,400,511 | 19.19 | % | 2,367,869 | 20.79 | % | 2,887,276 | 30.29 | % | |||||||||||||||
Corporate
|
3,098,435 | 24.78 | % | 3,539,981 | 31.08 | % | 3,309,501 | 34.71 | % | |||||||||||||||
Middle
market
|
2,203,132 | 17.61 | % | 2,200,014 | 19.31 | % | 1,488,459 | 15.61 | % | |||||||||||||||
Retail
|
4,805,411 | 38.42 | % | 3,282,257 | 28.82 | % | 1,848,947 | 19.39 | % | |||||||||||||||
Total
|
12,507,489 | 100.00 | % | 11,390,121 | 100.00 | % | 9,534,183 | 100.00 | % |
Deposits
|
||||||||||||||||||||||||
December
31, 2008
|
December
31, 2007
|
December
31, 2006
|
||||||||||||||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||||||||||||||
Corporate
|
3,988,997 | 23.36 | % | 2,590,735 | 17.26 | % | 2,216,764 | 17.73 | % | |||||||||||||||
Middle
market
|
1,854,884 | 10.86 | % | 1,562,718 | 10.41 | % | 1,502,736 | 12.01 | % | |||||||||||||||
Retail
|
11,235,322 | 65.78 | % | 10,856,305 | 72.33 | % | 8,786,256 | 70.26 | % | |||||||||||||||
Total
|
17,079,203 | 100.00 | % | 15,009,758 | 100.00 | % | 12,505,756 | 100.00 | % |
|
§
|
A
comprehensive and attractive commercial offering, by means of a more
direct communication with our current customers allowing us to improve the
bond with them and to capture new ones. We attained this by developing an
efficient approach model through products which included not only funding,
but also transactional solutions.
|
|
§
|
A
new relationship model including both delivery and service based on three
key restructuring components, namely: image, technology and
closeness.
|
|
§
|
Comprehensive
bond with customers: We made available to all customers a comprehensive
product offer; with ongoing evaluation routines to update credit
assistance and rewarded customers for their relationship with the
bank.
|
|
§
|
Repositioning
of Banco Francés Credit Card: supported by a promotional campaign in line
with our customers consumer drivers and a more competitive credit
allocation strategy.
|
|
§
|
Clear
and direct communications: communication underwent an instrumental change
thanks to direct marketing and advertisement, always trying to achieve
customer identification and interests. Our advertising was "clear and
direct" throughout the year, without losing sight of the identity
construed so far.
|
|
§
|
Introduction
of larger purchase limits for cards with a greater use potential,
according to customers’ or prospects’ pattern of
usage.
|
|
§
|
creation
of promotions to meet customers' needs and to increase the frequency of
bank product use; and
|
|
§
|
and
a more direct and profit-oriented communication with our
clients.
|
|
§
|
Firstly,
we have analyzed our customers’ behavior towards credit cards, to
determine the most suitable action that may satisfy their
needs.
|
|
§
|
As
a result of the above analysis, several actions were provided: Product
upgrades, credit limits automatic increases, consumption encouraging
actions, additional card offerings and joining the direct debit system
(that simplifies our customers’
transactions.)
|
|
§
|
Additionally,
we have encouraged package sales (Accounts) with the purpose of improving
our customer portfolio by cross-selling, increasing package sales and
indirectly, credit cards. We introduced the “Vuela Vuela” campaign which
awards airline tickets to customers and non-customers who have acquired a
card package and to people who spend more than
expected.
|
|
§
|
To
compensate the customer-bank relationship through a price policy which may
generate higher benefits to those customers who are more related to the
bank. This allowed us to reward customers who are more related to us,
reinforcing our relationship with them;
and
|
|
§
|
the
relationship between companies and their employees was enhanced, designing
products which will replace direct financing granted by the companies to
their own employees. Employees are now offered loans directly by the bank
and the employer will be collecting the
installments.
|
|
§
|
A
better structure of our liabilities: 81% of total growth is attributable
to checking account balances and the remaining 19% corresponds to fixed
term deposits.
|
|
§
|
A
careful pricing policy applied to fixed term
deposits.
|
|
§
|
Re-launch
of advanced term deposits, addressed to our VIP customers. We compensate
the account holder with a durable avant-garde consumer product: an HP
Pavilion Notebook and a wireless Linksys router, up front, replacing the
traditional interest rate concept.
|
|
§
|
Offering
investment advice and alternatives to wealthy investors who wish to try an
alternative instrument and diversify their
portfolio:
|
|
a)
|
Corporate
Notes:
|
|
b)
|
Initial
Public Offering (as per its Spanish acronym,
OPA):
|
|
c)
|
Acquisition
of the remaining corporate capital of Telefónica Data Argentina SA’s held
by third-parties.
|
|
d)
|
Ministry
of Economy’s securities
re-purchase.
|
|
e)
|
Banco
Santander SA’s common share
subscription.
|
|
§
|
SMS
messaging that enables the customer to get a quotation for cars and/or
homes using text messages.
|
|
§
|
Promotion
of insurance against theft at ATMs through the Internet, with the
possibility of purchasing a policy through the
web.
|
|
§
|
Mass
advertising about features and benefits of our insurance. Customers were
informed about our offers and promotions in
newsletters.
|
|
§
|
VIP
customers received offers of an accident insurance policy covering
domestic employees.
|
|
§
|
9%
growth in customer portfolio (today, there are 34,326
customers).
|
|
§
|
15%
increase of premier packages, (today, there are
24,332)
|
|
§
|
Major
increase in premium package
placements.
|
|
§
|
The
Bank has a total network of 639 working
ATM’s
|
|
§
|
174
new ATMs in-branches (replacement or
expansion)
|
|
§
|
18
ATMs installed at companies' facilities, which support new banking
business
|
|
§
|
677
terminals which support cashiers’ operations. During 2008, these terminals
were reconditioned to offer a better service to our
customers.
|
|
§
|
100,680
new customers
|
|
§
|
Ps.7,600
million traded
|
|
§
|
300,000
active customers
|
|
§
|
39%
increase in trading volume
|
|
§
|
3.3
million visitors per month during
2008.
|
|
§
|
89%
IVR (Interactive Voice Response) use with almost 8 million calls received
by operator
|
|
§
|
18,700
foreign trade queries
|
|
§
|
5,100
service queries
|
Name of Mutual
Fund
|
Thousands
of
Pesos
|
|||
FBA
Acciones Globales
|
39,748 | |||
FBA
Total
|
7,905 | |||
FBA
Renta
|
10,200 | |||
FBA
Renta Pesos
|
502,232 | |||
FBA
Renta Dólares
|
4,302 | |||
FBA
Bonos
|
5,950 | |||
FBA
Calificado
|
35,773 | |||
FBA
International
|
365 | |||
FBA
Ahorro Dólares
|
11,368 | |||
FBA
Renta Fija
|
11,434 | |||
FBA
Ahorro Pesos
|
24,663 | |||
FBA
Renta Premium
|
5,051 | |||
FBA
Europa
|
2,001 | |||
FBA
Horizonte
|
8,166 | |||
FBA
EE.UU.
|
1,372 | |||
FBA
Renta Corto Plazo
|
544 | |||
FBA
Acciones Latinoamericanas
|
14,888 | |||
FBA
Bonos Argentina
|
8,563 | |||
FBA
Brasil
|
14,054 | |||
FBA
México
|
653 | |||
FBA
Commodities
|
36 | |||
FBA
Acciones Argentinas
|
228 | |||
FBA
Bonos Globales
|
52 | |||
Total
|
709,548 | |||
______________ | ||||
Source:
“Cámara Argentina de Fondos Comunes de Inversión”
|
As
of December 31, 2008
|
||||||||||||||||||||||||||||
Banking
Financial
|
||||||||||||||||||||||||||||
BBVA
Banco Francés S.A.
|
PSA
Finance S.A.
|
Total
|
Pension
Fund Manager (3)
|
Insurance
|
Eliminations
|
Total
|
||||||||||||||||||||||
Total
assets
|
22,400,481 | 452,766 | 22,853,247 | 285,011 | 2,872,885 | (185,678 | ) | 25,825,465 | ||||||||||||||||||||
Financial
income
|
1,944,883 | 49,091 | 1,993,974 | 23,674 | 352,065 | (90,609 | ) | 2,279,104 | ||||||||||||||||||||
Service
charge income and other income
|
1,372,305 | 49,498 | 1,421,803 | 226,262 | 329,851 | (14,048 | ) | 1,963,868 | ||||||||||||||||||||
Total
income (1)
|
3,317,188 | 98,589 | 3,415,777 | 249,936 | 681,916 | (104,657 | ) | 4,242,972 | ||||||||||||||||||||
Financial
expenses
|
(1,274,521 | ) | (11,977 | ) | (1,286,498 | ) | (110 | ) | (5,682 | ) | 90,609 | (1,201,681 | ) | |||||||||||||||
Allowances
for doubtful loans
|
(33,462 | ) | (3,246 | ) | (36,708 | ) | (36,708 | ) | ||||||||||||||||||||
Operating
expenses
|
(1,128,183 | ) | (7,651 | ) | (1,135,834 | ) | (232,259 | ) | (50,969 | ) | 5,614 | (1,413,448 | ) | |||||||||||||||
Other
expenses
|
(603,047 | ) | (24,785 | ) | (627,832 | ) | (54,168 | ) | (598,860 | ) | 8,434 | (1,272,426 | ) | |||||||||||||||
Total
expenses (2)
|
(3,039,213 | ) | (47,659 | ) | (3,086,872 | ) | (286,537 | ) | (655,511 | ) | 104,657 | (3,924,263 | ) | |||||||||||||||
Income
/ (Loss) on minority interest in subsidiaries
|
(135 | ) | (5,068 | ) | (5,203 | ) | 16,876 | (8,872 | ) | 2,801 | ||||||||||||||||||
Total
net income
|
277,840 | 45,862 | 323,702 | (19,725 | ) | 17,533 | 321,510 |
As
of December 31, 2007
|
||||||||||||||||||||||||||||
Banking
Financial
|
||||||||||||||||||||||||||||
BBVA
Banco Francés S.A.
|
PSA
Finance S.A.
|
Total
|
Pension
Fund Manager
|
Insurance
|
Eliminations
|
Total
|
||||||||||||||||||||||
Total
assets
|
18,903,940 | 264,251 | 19,168,191 | 377,785 | 2,562,922 | (85,899 | ) | 22,022,999 | ||||||||||||||||||||
Financial
income
|
1,610,891 | 14,594 | 1,625,485 | 37,162 | 247,412 | (5,847 | ) | 1,904,212 | ||||||||||||||||||||
Service
charge income and other income
|
1,220,097 | 20,469 | 1,240,566 | 463,960 | 580,609 | (274,062 | ) | 2,011,073 | ||||||||||||||||||||
Total
income (1)
|
2,830,988 | 35,063 | 2,866,051 | 501,122 | 828,021 | (279,909 | ) | 3,915,285 | ||||||||||||||||||||
Financial
expenses
|
(682,913 | ) | (2,642 | ) | (685,555 | ) | (415 | ) | (8 | ) | 5,847 | (680,131 | ) | |||||||||||||||
Allowances
for doubtful loans
|
(60,370 | ) | (1,892 | ) | (62,262 | ) | — | — | — | (62,262 | ) | |||||||||||||||||
Operating
expenses
|
(872,913 | ) | (4,887 | ) | (877,800 | ) | (211,084 | ) | (38,741 | ) | 3,464 | (1,124,161 | ) | |||||||||||||||
Other
expenses
|
(1,027,268 | ) | (9,911 | ) | (1,037,179 | ) | (278,988 | ) | (748,572 | ) | 270,598 | (1,794,141 | ) | |||||||||||||||
Total
expenses (2)
|
(2,643,464 | ) | (19,332 | ) | (2,662,796 | ) | (490,487 | ) | (787,321 | ) | 279,909 | (3,660,695 | ) | |||||||||||||||
Income
/ (Loss) on minority interest in subsidiaries
|
(169 | ) | (458 | ) | (627 | ) | (4,903 | ) | (14,011 | ) | — | (19,541 | ) | |||||||||||||||
Total
net income
|
187,355 | 15,273 | 202,628 | 5,732 | 26,689 | — | 235,049 |
As
of December 31, 2006
|
||||||||||||||||||||||||||||
Banking
Financial
|
||||||||||||||||||||||||||||
BBVA
Banco Francés S.A.
|
PSA
Finance S.A.
|
Total
|
Pension
Fund Manager
|
Insurance
|
Eliminations
|
Total
|
||||||||||||||||||||||
Total
assets
|
16,294,763 | 109,151 | 16,403,914 | 373,844 | 2,204,731 | (147,860 | ) | 18,834,629 | ||||||||||||||||||||
Financial
income
|
1,514,699 | 7,030 | 1,521,729 | 44,237 | 384,026 | (13,588 | ) | 1,936,404 | ||||||||||||||||||||
Service
charge income and other income
|
653,149 | 11,249 | 664,398 | 377,019 | 410,135 | (221,237 | ) | 1,230,315 | ||||||||||||||||||||
Total
income (1)
|
2,167,848 | 18,279 | 2,186,127 | 421,256 | 794,161 | (234,825 | ) | 3,166,719 | ||||||||||||||||||||
Financial
expenses
|
(581,603 | ) | (95 | ) | (581,698 | ) | (234 | ) | (1 | ) | 13,588 | (568,345 | ) | |||||||||||||||
Allowances
for doubtful loans
|
(69,411 | ) | (714 | ) | (70,125 | ) | — | — | — | (70,125 | ) | |||||||||||||||||
Operating
expenses
|
(711,655 | ) | (3,320 | ) | (714,975 | ) | (171,273 | ) | (43,750 | ) | 2,594 | (927,404 | ) | |||||||||||||||
Other
expenses
|
(707,660 | ) | (4,219 | ) | (711,879 | ) | (249,662 | ) | (638,894 | ) | 218,643 | (1,381,792 | ) | |||||||||||||||
Total
expenses (2)
|
(2,070,329 | ) | (8,348 | ) | (2,078,677 | ) | (421,169 | ) | (682,645 | ) | 234,825 | (2,947,666 | ) | |||||||||||||||
Income
/ (Loss) on minority interest in subsidiaries
|
52 | (1,505 | ) | (1,453 | ) | (40 | ) | (37,523 | ) | — | (39,016 | ) | ||||||||||||||||
Total
net income
|
97,571 | 8,426 | 105,997 | 47 | 73,993 | — | 180,037 |
|
§
|
Conclusion
of a renovation project that began last year with the implementation of
state-of-the-art technology. This renovation includes telephone and
applications infrastructure for the following areas: telephone banking,
telesales, post-sales, post-sales service and tele-collection. This area
is now housed in a new building that concentrates contact center
processes. The new structure combines with the Bank's IP telephone network
and will make it possible to outsource telesales campaigns (third
parties).
|
|
§
|
Telephones
were installed in various branches to answer queries or claims that are
received from Línea Francés.
|
|
§
|
We
continued with the second renovation stage of self-service terminals and
ATMs. A total of 100 ATMs were replaced and 45 new ATMs were added to the
ATM network. Currently we have a total of 636 ATMs in operation. With
these replacements and further actions taken we managed to boost network
service levels up to 96%. Additionally, remodeling of self-service
terminals was concluded; today we have 691 units in
operation.
|
|
§
|
New
projects were undertaken to improve the quality of customer services by
providing offices with tools and technology. Some of these projects are:
Line agents, Francés Express (a query point through Francés Net and bank
statement printouts) and digital posters (with information on interest and
exchange rates).
|
|
§
|
Branch
redesign and renewal plan: This is part of our “New Branch Model” project
which is being implemented by a multi-area team. The aim is developing
architectural, functional and technical branch offices designs in line
with market requirements and with the Bank’s and the Group's strategic
objectives. A total of six branches have been concluded so
far.
|
|
§
|
Product
pilot tests were launched at points of sale. These included customer
assessment and on-the-spot delivery of credit cards at Cerro Catedral and
Unicenter shopping malls.
|
|
§
|
The
first products targeted at the low-income consumer area were launched,
with review and mass sales processes included. Likewise, pre-approvals
were improved to streamline tasks and reduce time on the telephone with
customers when processing
information.
|
|
§
|
We
proceeded to implement a program for customer contact information in order
to increase sales productivity, cross-selling and customer satisfaction,
reducing costs. The "Project Data" included implementation of new tools,
adaptation of guidelines, data base clean-up, and awareness and incentive
plans for employees.
|
|
§
|
We
began a project that offers significant functional improvements to replace
systems support areas to detect suspicious terrorist and money laundering
activities using corporate systems.
|
|
§
|
“Key
Code Cards” (Tarjeta de Coordenadas): A new system was implemented in
retail banking area for electronic wire transfers (except for ATMs). Their
aim is to improve security in the customer authentication process by
providing it with a second authentication factor, something similar to the
one-time password.
|
|
§
|
A
significant improvement project was concluded for perimeter security. It
included equipment and architecture upgrades, and review of firewalls
rules.
|
|
§
|
Significant
progress has been achieved in the development of new methodologies to
manage the applications life cycle.
|
|
§
|
The
process of compliance certification with the Sarbanes-Oxley Act has been
fully completed.
|
|
§
|
Sharing of
technology;
|
|
§
|
Development of new banking
products that have been customized for the Argentine
market;
|
|
§
|
Leveraging BBVA’s global client relationships to
serve those clients
operating in Argentina; and
|
|
§
|
BBVA’s participation in BBVA Banco
Francés as a
shareholder is both long term and
strategic.
|
BBVA
Banco Francés
|
69.5271%
|
Banco
Bilbao Vizcaya Argentaria S.A.
|
29.9475%
|
Inversora
Otar S.A.
|
0.5254%
|
Subsidiary
or Associated Company
|
Country
of
Incorporation/
Residence
|
BBVA
Banco Francés
Ownership
and
Voting Power
|
Principal
Activity
|
Stockholders’
Equity
(in
millions of pesos)(4)
|
||||
Atuel
Fideicomisos S.A. and subsidiary (1)(2)
|
Argentina
|
99.99%
|
Trust
services
|
30.8
|
||||
Francés
Valores Sociedad de Bolsa S.A. (1)(2)
|
Argentina
|
94.97%
|
Stock
exchange brokerage
|
10.5
|
||||
Consolidar
Cía. de Seguros de Retiro S.A. (1)(2)
|
Argentina
|
66.67%
|
Insurance
|
105.0
|
||||
Consolidar
Seguros de Vida S.A. (1)(2)
|
Argentina
|
65.96%
|
Insurance
Pension and Retirement
|
203.1
|
||||
Consolidar
AFJP S.A. (1)(2)
|
Argentina
|
53.89%
|
Fund
Administrators
|
237.3
|
||||
PSA
Compañía Financiera S.A. (1)(2)
|
Argentina
|
50.00%
|
Financial
Institution
|
68.2
|
||||
Rombo
Compañía Financiera S.A. (2)
|
Argentina
|
40.00%
|
Financial
Institution
|
0.1
|
||||
Consolidar
ART S.A. (2)
|
Argentina
|
12.50%
|
Workers
Compensation Insurance
|
174.0
|
||||
BBVA
Consolidar Seguros S.A. (2)
|
Argentina
|
12.22%
|
Insurance
Company
|
81.7
|
(1)
|
For
information regarding the number of shares we hold in such entities, see
Note 2. to the Consolidated Financial
Statements.
|
(2)
|
Total
stockholders’ equity as of December 31,
2008.
|
(3)
|
Statutory
Stockholders’ Equity, adjusted for purposes of consolidation so as to
apply an accounting criterion being uniform with that of BBVA Banco
Francés, if applicable.
|
Investment
|
Country
|
%
of Shares
Owned
|
Principal
Activity
|
Total
Stockholders’
Equity
(in
millions
of pesos)
|
||||
Coelsa
S.A.(1)
|
Argentina
|
11.39%
|
Clearing
house
|
1.8
|
||||
Interbanking
S.A. (1)
|
Argentina
|
9.09%
|
Information
services for financial markets
|
16.7
|
||||
Argencontrol
S.A.
(1)
|
Argentina
|
7.77%
|
Agent
Mandatary
|
0.9
|
||||
Sedesa
S.A. (1)
|
Argentina
|
13.06%
|
Deposit
Guarantee Fund
|
12.8
|
||||
Banelco
S.A. (2)
|
Argentina
|
10.91%
|
Nationwide
ATM network & credit card Administration
|
57.1
|
||||
Visa
Argentina S.A. (3)
|
Argentina
|
9.79%
|
Credit
card issuer
|
101.9
|
||||
AIG
Latin American Fund (4)
|
Virgin
Islands
|
19.50%
|
Investment
Funds
|
27.6
|
(1)
|
Total
Stockholders’ Equity as of December 31,
2007.
|
(2)
|
Total
Stockholders’ Equity as of November 30,
2008.
|
(3)
|
Total
Stockholders’ Equity as of October 31,
2008.
|
(4)
|
Total
Stockholders’ Equity as of December 31, 2000. The Bank maintains an
allowance for the 100% of the
amounts.
|
Rp
=
|
1 +
Np
|
-
1
|
Rd
=
|
(1
+ Nd)(1 + D)
|
-
1
|
1 +
I
|
1 +
I
|
Rd=
|
(1+0.20)(1+0.15)
|
-
1
|
=
|
10.4%
per annum
|
1+0.25
|
Fiscal
Years ended December 31,
|
||||||||||||||||||||||||||||||||||||
2008
|
2007
|
2006
|
||||||||||||||||||||||||||||||||||
Average
balance (1)
|
Interest
earned/
paid
|
Average
real rate (2) |
Average
balance (1)
|
Interest
earned/
paid
|
Average
real rate (2) |
Average
balance (1)
|
Interest
earned/
paid
|
Average
real rate (2) |
||||||||||||||||||||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||||||||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||||||||||||||
Interest-earning
assets
|
||||||||||||||||||||||||||||||||||||
Government
securities (3)
|
||||||||||||||||||||||||||||||||||||
Pesos
|
3,768,312 | (82,068 | ) | (10.24 | )% | 4,162,457 | 375,861 | (4.83 | )% | 3,349,751 | 551,972 | 8.68 | % | |||||||||||||||||||||||
Dollars
|
124,209 | (2,113 | ) | (1.13 | )% | 55,665 | 3,029 | (5.52 | )% | 248,714 | 38,763 | 9.20 | % | |||||||||||||||||||||||
Total
|
3,892,521 | (84,181 | ) | (9.95 | )% | 4,218,122 | 378,890 | (4.84 | )% | 3,598,465 | 590,735 | 8.72 | % | |||||||||||||||||||||||
Loans
(4)
|
||||||||||||||||||||||||||||||||||||
Private
Sector
|
||||||||||||||||||||||||||||||||||||
Pesos
|
7,603,181 | 1,229,997 | 6.61 | % | 5,747,676 | 829,367 | (0.11 | )% | 4,098,288 | 514,875 | 5.03 | % | ||||||||||||||||||||||||
Dollars
|
2,067,384 | 125,995 | 6.71 | % | 1,783,801 | 105,504 | (5.09 | )% | 1,190,840 | 62,930 | (0.53 | )% | ||||||||||||||||||||||||
Total
|
9,670,565 | 1,355,992 | 6.63 | % | 7,531,477 | 934,871 | (1.29 | )% | 5,289,128 | 577,805 | 3.78 | % | ||||||||||||||||||||||||
Public
Sector
|
||||||||||||||||||||||||||||||||||||
Pesos
|
2,722,682 | 291,382 | 1.58 | % | 2,544,360 | 333,535 | (1.27 | )% | 3,444,212 | 548,763 | 8.18 | % | ||||||||||||||||||||||||
Total
|
2,722,682 | 291,382 | 1.58 | % | 2,544,360 | 333,535 | (1.27 | )% | 3,444,212 | 548,763 | 8.18 | % | ||||||||||||||||||||||||
Deposits
with the Central Bank
|
||||||||||||||||||||||||||||||||||||
Pesos
|
115,162 | 7,588 | (2.19 | )% | 103,736 | 12,602 | (2.10 | )% | 102,384 | 10,714 | 3.07 | % | ||||||||||||||||||||||||
Dollars
|
1,087,894 | 4,157 | 0.96 | % | 611,802 | 6,479 | (9.44 | )% | 570,220 | 6,577 | (4.43 | )% | ||||||||||||||||||||||||
Total
|
1,203,056 | 11,745 | 0.66 | % | 715,538 | 19,081 | (8.38 | )% | 672,604 | 17,291 | (3.29 | )% | ||||||||||||||||||||||||
Other
assets
|
||||||||||||||||||||||||||||||||||||
Pesos
|
1,476,711 | 193,071 | 3.76 | % | 1,919,830 | 114,739 | (7.49 | )% | 1,064,259 | 116,124 | 3.49 | % | ||||||||||||||||||||||||
Dollars
|
145,466 | 4,830 | 3.92 | % | 110,222 | 5,072 | (6.27 | )% | 116,023 | 7,179 | 0.32 | % | ||||||||||||||||||||||||
Total
|
1,622,177 | 197,901 | 3.77 | % | 2,030,052 | 119,811 | (7.42 | )% | 1,180,282 | 123,303 | 3.18 | % | ||||||||||||||||||||||||
Total
interest-earning assets
|
||||||||||||||||||||||||||||||||||||
Pesos
|
15,686,048 | 1,639,970 | 1.35 | % | 14,478,059 | 1,666,104 | (2.66 | )% | 12,058,894 | 1,742,448 | 6.79 | % | ||||||||||||||||||||||||
Dollars
|
3,424,953 | 132,869 | 4.48 | % | 2,561,490 | 120,084 | (6.19 | )% | 2,125,797 | 115,449 | (0.39 | )% | ||||||||||||||||||||||||
Total
|
19,111,001 | 1,772,839 | 1.91 | % | 17,039,549 | 1,786,188 | (3.19 | )% | 14,184,691 | 1,857,897 | 5.72 | % |
Fiscal
Years ended December 31,
|
||||||||||||||||||||||||||||||||||||
2008
|
2007
|
2006
|
||||||||||||||||||||||||||||||||||
Average
balance (1)
|
Interest
earned/
paid
|
Average
real rate (2) |
Average
balance (1)
|
Interest
earned/
paid
|
Average
real
rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
real
rate (2)
|
||||||||||||||||||||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||||||||||||||||||||||||||
Non
interest-earning assets
|
||||||||||||||||||||||||||||||||||||
Cash
and due from banks
|
||||||||||||||||||||||||||||||||||||
Pesos
|
1,860,569 | — | — | 1,670,804 | — | — | 1,140,970 | — | — | |||||||||||||||||||||||||||
Dollars
|
537,056 | — | — | 425,941 | — | — | 385,450 | — | — | |||||||||||||||||||||||||||
Total
|
2,397,625 | — | — | 2,096,745 | — | — | 1,526,420 | — | — | |||||||||||||||||||||||||||
Investments
in other companies
|
||||||||||||||||||||||||||||||||||||
Pesos
|
198,267 | — | — | 64,113 | — | — | 51,153 | — | — | |||||||||||||||||||||||||||
Dollars
|
840 | — | — | 824 | — | — | 820 | — | — | |||||||||||||||||||||||||||
Total
|
199,107 | — | — | 64,937 | — | — | 51,973 | — | — | |||||||||||||||||||||||||||
Property
and equipment and miscellaneous and intangible assets and items pending of
allocation
|
||||||||||||||||||||||||||||||||||||
Pesos
|
517,016 | — | — | 689,587 | — | — | 964,129 | — | — | |||||||||||||||||||||||||||
Total
|
517,016 | — | — | 689,587 | — | — | 964,129 | — | — | |||||||||||||||||||||||||||
Allowance
for loan losses
|
||||||||||||||||||||||||||||||||||||
Pesos
|
(45,337 | ) | — | — | (250,629 | ) | — | — | (105,136 | ) | — | — | ||||||||||||||||||||||||
Dollars
|
(33,357 | ) | — | — | (31,777 | ) | — | — | (28,288 | ) | — | — | ||||||||||||||||||||||||
Total
|
(78,694 | ) | — | — | (282,406 | ) | — | — | (133,424 | ) | — | — | ||||||||||||||||||||||||
Other
assets
|
||||||||||||||||||||||||||||||||||||
Pesos
|
652,334 | — | — | 593,650 | — | — | 841,928 | — | — | |||||||||||||||||||||||||||
Dollars
|
74,510 | — | — | 68,865 | — | — | 52,643 | — | — | |||||||||||||||||||||||||||
Total
|
726,844 | — | — | 662,515 | — | — | 894,571 | — | — | |||||||||||||||||||||||||||
Total
non interest-earning assets
|
||||||||||||||||||||||||||||||||||||
Pesos
|
3,182,849 | — | — | 2,767,525 | — | — | 2,893,044 | — | — | |||||||||||||||||||||||||||
Dollars
|
579,049 | — | — | 463,853 | — | — | 410,625 | — | — | |||||||||||||||||||||||||||
Total
|
3,761,898 | — | — | 3,231,378 | — | — | 3,303,669 | — | — | |||||||||||||||||||||||||||
TOTAL
ASSETS
|
||||||||||||||||||||||||||||||||||||
Pesos
|
18,868,897 | — | — | 17,245,584 | — | — | 14,951,938 | — | — | |||||||||||||||||||||||||||
Dollars
|
4,004,002 | — | — | 3,025,343 | — | — | 2,536,422 | — | — | |||||||||||||||||||||||||||
Total
|
22,872,899 | — | — | 20,270,927 | — | — | 17,488,360 | — | — |
(1)
|
Average
Balances are derived from month-end
balances.
|
(2)
|
Annualized
on a 360-day basis.
|
(3)
|
Includes
trading gains and losses in all fiscal years. Unrealized gains and losses
arising from changes in the market value of our trading portfolio of
Government Securities and yield on our investment portfolio of Government
Securities are included.
|
(4)
|
Loan
amounts are stated before deduction of the allowance for loan losses.
Non-accrual loans are included in loans as interest-earning
assets.
|
Fiscal
Years ended December 31,
|
||||||||||||||||||||||||||||||||||||
2008
|
2007
|
2006
|
||||||||||||||||||||||||||||||||||
Average
balance (1)
|
Interest
earned/
paid
|
Average
real
rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
real
rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
real
rate (2)
|
||||||||||||||||||||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||||||||||||||||||||||||||
LIABILITIES
|
||||||||||||||||||||||||||||||||||||
Interest-bearing
liabilities
|
||||||||||||||||||||||||||||||||||||
Savings
accounts
|
||||||||||||||||||||||||||||||||||||
Pesos
|
3,242,023 | 7,817 | (8.02 | )% | 2,790,939 | 5,885 | (12.52 | )% | 2,342,303 | 4,224 | (6.52 | )% | ||||||||||||||||||||||||
Dollars
|
1,190,844 | 896 | 0.65 | % | 917,098 | 713 | (10.32 | )% | 772,591 | 587 | (5.45 | )% | ||||||||||||||||||||||||
Total
|
4,432,867 | 8,713 | (5.69 | )% | 3,708,037 | 6,598 | (11.98 | )% | 3,114,894 | 4,811 | (6.26 | )% | ||||||||||||||||||||||||
Time
deposits
|
||||||||||||||||||||||||||||||||||||
Pesos
|
5,732,426 | 703,179 | 3.02 | % | 5,897,520 | 526,155 | (4.92 | )% | 5,112,665 | 425,598 | 1.08 | % | ||||||||||||||||||||||||
Dollars
|
1,359,527 | 34,258 | 3.11 | % | 1,062,937 | 23,236 | (8.43 | )% | 737,069 | 12,119 | (3.97 | )% | ||||||||||||||||||||||||
Total
|
7,091,953 | 737,437 | 3.03 | % | 6,960,457 | 549,391 | (5.46 | )% | 5,849,734 | 437,717 | 0.44 | % | ||||||||||||||||||||||||
Borrowing
from the Central Bank
|
||||||||||||||||||||||||||||||||||||
Pesos
|
19,227 | — | — | 13,162 | — | — | 72,538 | 7,663 | 3.17 | % | ||||||||||||||||||||||||||
Dollars
|
1,634 | 16 | 1.57 | % | 1,471 | 4 | (10.12 | )% | 1,325 | 2 | (5.38 | )% | ||||||||||||||||||||||||
Total
|
20,861 | 16 | 0.12 | % | 14,633 | 4 | (1.02 | )% | 73,863 | 7,665 | 3.01 | % | ||||||||||||||||||||||||
Borrowings
from other financial institutions
|
||||||||||||||||||||||||||||||||||||
Pesos
|
57,093 | 10,610 | 8.81 | % | 120,516 | 17,864 | 0.23 | % | 98,702 | 9,046 | 1.86 | % | ||||||||||||||||||||||||
Dollars
|
527,162 | 25,848 | 5.51 | % | 393,963 | 23,219 | (5.11 | )% | 306,806 | 19,243 | 0.40 | % | ||||||||||||||||||||||||
Total
|
584,255 | 36,458 | 5.83 | % | 514,479 | 41,083 | (3.86 | )% | 405,508 | 28,289 | 0.76 | % | ||||||||||||||||||||||||
Corporate
bonds
|
||||||||||||||||||||||||||||||||||||
Pesos
|
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Dollars
|
— | — | — | 41,901 | 3,694 | (2.49 | )% | 271,742 | 18,732 | 0.99 | % | |||||||||||||||||||||||||
Total
|
— | — | — | 41,901 | 3,694 | (2.49 | )% | 271,742 | 18,732 | 0.99 | % | |||||||||||||||||||||||||
Other
liabilities
|
||||||||||||||||||||||||||||||||||||
Pesos
|
584,837 | 28,828 | (3.72 | )% | 489,417 | 16,165 | (9.83 | )% | 428,426 | 26,932 | (0.83 | )% | ||||||||||||||||||||||||
Dollars
|
108,672 | 16 | 0.59 | % | 55,755 | 9 | (10.38 | )% | 37,512 | 10 | (5.50 | )% | ||||||||||||||||||||||||
Total
|
693,509 | 28,844 | (3.04 | )% | 545,172 | 16,174 | (9.88 | )% | 465,938 | 26,942 | (1.20 | )% | ||||||||||||||||||||||||
Total
interest-bearing liabilities
|
||||||||||||||||||||||||||||||||||||
Pesos
|
9,635,606 | 750,434 | (1.09 | )% | 9,311,554 | 566,069 | (7.40 | )% | 8,054,634 | 473,463 | (1.21 | )% | ||||||||||||||||||||||||
Dollars
|
3,187,839 | 61,034 | 2.50 | % | 2,473,125 | 50,875 | (8.55 | )% | 2,127,045 | 50,693 | (3.27 | )% | ||||||||||||||||||||||||
Total
|
12,823,445 | 811,468 | (0.20 | )% | 11,784,679 | 616,944 | (7.64 | )% | 10,181,679 | 524,156 | (1.64 | )% |
Fiscal
Years ended December 31,
|
||||||||||||||||||||||||||||||||||||
2008
|
2007
|
2006
|
||||||||||||||||||||||||||||||||||
Average
balance (1)
|
Interest
earned/
paid
|
Average
real
rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
real
rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
real
rate (2)
|
||||||||||||||||||||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||||||||||||||||||||||||||
Non-interest
bearing liabilities and stockholders’ equity
|
||||||||||||||||||||||||||||||||||||
Demand
accounts
|
||||||||||||||||||||||||||||||||||||
Pesos
|
2,932,651 | — | — | 2,547,283 | — | — | 2,094,140 | — | — | |||||||||||||||||||||||||||
Dollars
|
57,159 | — | — | 43,736 | — | — | 24,537 | — | — | |||||||||||||||||||||||||||
Total
|
2,989,810 | — | — | 2,591,019 | — | — | 2,118,677 | — | — | |||||||||||||||||||||||||||
Other
liabilities
|
||||||||||||||||||||||||||||||||||||
Pesos
|
4,253,636 | — | — | 3,272,083 | — | — | 2,917,529 | — | — | |||||||||||||||||||||||||||
Dollars
|
459,048 | — | — | 354,934 | — | — | 290,635 | — | — | |||||||||||||||||||||||||||
Total
|
4,712,684 | — | — | 3,627,017 | — | — | 3,208,164 | — | — | |||||||||||||||||||||||||||
Minority
interest
|
||||||||||||||||||||||||||||||||||||
Pesos
|
251,093 | — | — | 228,665 | — | — | 197,278 | — | — | |||||||||||||||||||||||||||
Total
|
251,093 | — | — | 228,665 | — | — | 197,278 | — | — | |||||||||||||||||||||||||||
Stockholders’
equity
|
||||||||||||||||||||||||||||||||||||
Pesos
|
2,095,867 | — | — | 2,039,547 | — | — | 1,782,562 | — | — | |||||||||||||||||||||||||||
Total
|
2,095,867 | — | — | 2,039,547 | — | — | 1,782,562 | — | — | |||||||||||||||||||||||||||
Total
non–interest bearing liabilities and stockholders equity
|
||||||||||||||||||||||||||||||||||||
Pesos
|
9,533,247 | — | — | 8,087,578 | — | — | 6,991,509 | — | — | |||||||||||||||||||||||||||
Dollars
|
516,207 | — | — | 398,670 | — | — | 315,172 | — | — | |||||||||||||||||||||||||||
Total
|
10,049,454 | — | — | 8,486,248 | — | — | 7,306,681 | — | — | |||||||||||||||||||||||||||
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||||||||||||||||||||||||||||||
Pesos
|
19,168,853 | — | — | 17,399,132 | — | — | 15,046,143 | — | — | |||||||||||||||||||||||||||
Dollars
|
3,704,046 | — | — | 2,871,795 | — | — | 2,442,217 | — | — | |||||||||||||||||||||||||||
Total
|
22,872,899 | — | — | 20,270,927 | — | — | 17,488,360 | — | — |
(1)
|
Average
balances are derived from month-end
balances.
|
(2)
|
Annualized
on a 360-day basis.
|
Fiscal
Years ended December 31,
|
||||||||||||||||||||||||||||||||||||
2008
|
2007
|
2006
|
||||||||||||||||||||||||||||||||||
Average
balance (1)
|
Interest
earned/
paid
|
Average
nominal
rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
Nominal
rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
nominal
rate(2)
|
||||||||||||||||||||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||||||||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||||||||||||||
Interest-earning
assets
|
||||||||||||||||||||||||||||||||||||
Government
securities (3)
|
||||||||||||||||||||||||||||||||||||
Pesos
|
3,768,312 | (82,068 | ) | (2.18 | )% | 4,162,457 | 375,861 | 9.03 | % | 3,349,751 | 551,972 | 16.48 | % | |||||||||||||||||||||||
Dollars
|
124,209 | (2,113 | ) | (1.70 | )% | 55,665 | 3,029 | 5.44 | % | 248,714 | 38,763 | 15.59 | % | |||||||||||||||||||||||
Total
|
3,892,521 | (84,181 | ) | (2.16 | )% | 4,218,122 | 378,890 | 8.98 | % | 3,598,465 | 590,735 | 16.42 | % | |||||||||||||||||||||||
Loans
(4)
|
||||||||||||||||||||||||||||||||||||
Private
Sector
|
||||||||||||||||||||||||||||||||||||
Pesos
|
7,603,181 | 1,229,997 | 16.18 | % | 5,747,676 | 829,367 | 14.43 | % | 4,098,288 | 514,875 | 12.56 | % | ||||||||||||||||||||||||
Dollars
|
2,067,384 | 125,995 | 6.09 | % | 1,783,801 | 105,504 | 5.91 | % | 1,190,840 | 62,930 | 5.28 | % | ||||||||||||||||||||||||
Total
|
9,670,565 | 1,355,992 | 14.02 | % | 7,531,477 | 934,871 | 12.41 | % | 5,289,128 | 577,805 | 10.92 | % | ||||||||||||||||||||||||
Public
Sector
|
||||||||||||||||||||||||||||||||||||
Pesos
|
2,722,682 | 291,382 | 10.70 | % | 2,544,360 | 333,535 | 13.11 | % | 3,444,212 | 548,763 | 15.93 | % | ||||||||||||||||||||||||
Total
|
2,722,682 | 291,382 | 10.70 | % | 2,544,360 | 333,535 | 13.11 | % | 3,444,212 | 548,763 | 15.93 | % | ||||||||||||||||||||||||
Deposits
with the Central Bank
|
||||||||||||||||||||||||||||||||||||
Pesos
|
115,162 | 7,588 | 6.59 | % | 103,736 | 12,602 | 12.15 | % | 102,384 | 10,714 | 10.46 | % | ||||||||||||||||||||||||
Dollars
|
1,087,894 | 4,157 | 0.38 | % | 611,802 | 6,479 | 1.06 | % | 570,220 | 6,577 | 1.15 | % | ||||||||||||||||||||||||
Total
|
1,203,056 | 11,745 | 0.98 | % | 715,538 | 19,081 | 2.67 | % | 672,604 | 17,291 | 2.57 | % | ||||||||||||||||||||||||
Other
assets
|
||||||||||||||||||||||||||||||||||||
Pesos
|
1,476,711 | 193,071 | 13.07 | % | 1,919,830 | 114,739 | 5.98 | % | 1,064,259 | 116,124 | 10.91 | % | ||||||||||||||||||||||||
Dollars
|
145,466 | 4,830 | 3.32 | % | 110,222 | 5,072 | 4.60 | % | 116,023 | 7,179 | 6.19 | % | ||||||||||||||||||||||||
Total
|
1,622,177 | 197,901 | 12.20 | % | 2,030,052 | 119,811 | 5.90 | % | 1,180,282 | 123,303 | 10.45 | % | ||||||||||||||||||||||||
Total
interest-earning assets
|
||||||||||||||||||||||||||||||||||||
Pesos
|
15,686,048 | 1,639,970 | 10.45 | % | 14,478,059 | 1,666,104 | 11.51 | % | 12,058,894 | 1,742,448 | 14.45 | % | ||||||||||||||||||||||||
Dollars
|
3,424,953 | 132,869 | 3.88 | % | 2,561,490 | 120,084 | 4.69 | % | 2,125,797 | 115,449 | 5.43 | % | ||||||||||||||||||||||||
Total
|
19,111,001 | 1,772,839 | 9.28 | % | 17,039,549 | 1,786,188 | 10.48 | % | 14,184,691 | 1,857,897 | 13.10 | % |
Fiscal
Years ended December 31,
|
||||||||||||||||||||||||||||||||||||
2008
|
2007
|
2006
|
||||||||||||||||||||||||||||||||||
Average
balance (1)
|
Interest
earned/
paid
|
Average
nominal
rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
Nominal
rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
nominal
rate (2)
|
||||||||||||||||||||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||||||||||||||||||||||||||
Non
interest-earning assets
|
||||||||||||||||||||||||||||||||||||
Cash
and due from banks
|
||||||||||||||||||||||||||||||||||||
Pesos
|
1,860,569 | — | — | 1,670,804 | — | — | 1,140,970 | — | — | |||||||||||||||||||||||||||
Dollars
|
537,056 | — | — | 425,941 | — | — | 385,450 | — | — | |||||||||||||||||||||||||||
Total
|
2,397,625 | — | — | 2,096,745 | — | — | 1,526,420 | — | — | |||||||||||||||||||||||||||
Investments
in other companies
|
||||||||||||||||||||||||||||||||||||
Pesos
|
198,267 | — | — | 64,113 | — | — | 51,153 | — | — | |||||||||||||||||||||||||||
Dollars
|
840 | — | — | 824 | — | — | 820 | — | — | |||||||||||||||||||||||||||
Total
|
199,107 | — | — | 64,937 | — | — | 51,973 | — | — | |||||||||||||||||||||||||||
Property
and equipment and miscellaneous and intangible assets and items
pending of allocation
|
||||||||||||||||||||||||||||||||||||
Pesos
|
517,016 | — | — | 689,587 | — | — | 964,129 | — | — | |||||||||||||||||||||||||||
Total
|
517,016 | — | — | 689,587 | — | — | 964,129 | — | — | |||||||||||||||||||||||||||
Allowance
for loan losses
|
||||||||||||||||||||||||||||||||||||
Pesos
|
(45,337 | ) | — | — | (250,629 | ) | — | — | (105,136 | ) | — | — | ||||||||||||||||||||||||
Dollars
|
(33,357 | ) | — | — | (31,777 | ) | — | — | (28,288 | ) | — | — | ||||||||||||||||||||||||
Total
|
(78,694 | ) | — | — | (282,406 | ) | — | — | (133,424 | ) | — | — | ||||||||||||||||||||||||
Other
assets
|
||||||||||||||||||||||||||||||||||||
Pesos
|
652,334 | — | — | 593,650 | — | — | 841,928 | — | — | |||||||||||||||||||||||||||
Dollars
|
74,510 | — | — | 68,865 | — | — | 52,643 | — | — | |||||||||||||||||||||||||||
Total
|
726,844 | — | — | 662,515 | — | — | 894,571 | — | — | |||||||||||||||||||||||||||
Total
non interest-earning assets
|
||||||||||||||||||||||||||||||||||||
Pesos
|
3,182,849 | — | — | 2,767,525 | — | — | 2,893,044 | — | — | |||||||||||||||||||||||||||
Dollars
|
579,049 | — | — | 463,853 | — | — | 410,625 | — | — | |||||||||||||||||||||||||||
Total
|
3,761,898 | — | — | 3,231,378 | — | — | 3,303,669 | — | — | |||||||||||||||||||||||||||
TOTAL
ASSETS
|
||||||||||||||||||||||||||||||||||||
Pesos
|
18,868,897 | — | — | 17,245,584 | — | — | 14,951,938 | — | — | |||||||||||||||||||||||||||
Dollars
|
4,004,002 | — | — | 3,025,343 | — | — | 2,536,422 | — | — | |||||||||||||||||||||||||||
Total
|
22,872,899 | — | — | 20,270,927 | — | — | 17,488,360 | — | — |
(1)
|
Average
Balances are derived from month-end
balances.
|
(2)
|
Annualized
on a 360-day basis.
|
(3)
|
Includes
trading gains and losses in all fiscal years. Unrealized gains and losses
arising from changes in the market value of our trading portfolio of
Government Securities and yield on our investment portfolio of Government
Securities are included.
|
(4)
|
Loan
amounts are stated before deduction of the allowance for loan losses.
Non-accrual loans are included in loans as interest-earning
assets.
|
Fiscal
Years ended December 31,
|
||||||||||||||||||||||||||||||||||||
2008
|
2007
|
2006
|
||||||||||||||||||||||||||||||||||
Average
balance (1)
|
Interest
earned/
paid
|
Average
nominal
rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
Nominal
rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
nominal
rate(2)
|
||||||||||||||||||||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||||||||||||||||||||||||||
LIABILITIES
|
||||||||||||||||||||||||||||||||||||
Interest-bearing
liabilities
|
||||||||||||||||||||||||||||||||||||
Savings
accounts
|
||||||||||||||||||||||||||||||||||||
Pesos
|
3,242,023 | 7,817 | 0.24 | % | 2,790,939 | 5,885 | 0.21 | % | 2,342,303 | 4,224 | 0.18 | % | ||||||||||||||||||||||||
Dollars
|
1,190,844 | 896 | 0.08 | % | 917,098 | 713 | 0.08 | % | 772,591 | 587 | 0.08 | % | ||||||||||||||||||||||||
Total
|
4,432,867 | 8,713 | 0.20 | % | 3,708,037 | 6,598 | 0.18 | % | 3,114,894 | 4,811 | 0.15 | % | ||||||||||||||||||||||||
Time
deposits
|
||||||||||||||||||||||||||||||||||||
Pesos
|
5,732,426 | 703,179 | 12.27 | % | 5,897,520 | 526,155 | 8.92 | % | 5,112,665 | 425,598 | 8.32 | % | ||||||||||||||||||||||||
Dollars
|
1,359,527 | 34,258 | 2.52 | % | 1,062,937 | 23,236 | 2.19 | % | 737,069 | 12,119 | 1.64 | % | ||||||||||||||||||||||||
Total
|
7,091,953 | 737,437 | 10.40 | % | 6,960,457 | 549,391 | 7.89 | % | 5,849,734 | 437,717 | 7.48 | % | ||||||||||||||||||||||||
Borrowing
from the Central Bank
|
||||||||||||||||||||||||||||||||||||
Pesos
|
19,227 | — | — | 13,162 | — | — | 72,538 | 7,663 | 10.56 | % | ||||||||||||||||||||||||||
Dollars
|
1,634 | 16 | 0.99 | % | 1,471 | 4 | 0.30 | % | 1,325 | 2 | 0.15 | % | ||||||||||||||||||||||||
Total
|
20,861 | 16 | 0.08 | % | 14,633 | 4 | 0.03 | % | 73,863 | 7,665 | 10.38 | % | ||||||||||||||||||||||||
Borrowings
from other financial institutions
|
||||||||||||||||||||||||||||||||||||
Pesos
|
57,093 | 10,610 | 18.58 | % | 120,516 | 17,864 | 14.82 | % | 98,702 | 9,046 | 9.16 | % | ||||||||||||||||||||||||
Dollars
|
527,162 | 25,848 | 4.90 | % | 393,963 | 23,219 | 5.89 | % | 306,806 | 19,243 | 6.27 | % | ||||||||||||||||||||||||
Total
|
584,255 | 36,458 | 6.24 | % | 514,479 | 41,083 | 7.99 | % | 405,508 | 28,289 | 6.98 | % | ||||||||||||||||||||||||
Corporate
bonds
|
||||||||||||||||||||||||||||||||||||
Pesos
|
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Dollars
|
— | — | — | 41,901 | 3,694 | 8.82 | % | 271,742 | 18,732 | 6.89 | % | |||||||||||||||||||||||||
Total
|
— | — | — | 41,901 | 3,694 | 8.82 | % | 271,742 | 18,732 | 6.89 | % | |||||||||||||||||||||||||
Other
liabilities
|
||||||||||||||||||||||||||||||||||||
Pesos
|
584,837 | 28,828 | 4.93 | % | 489,417 | 16,165 | 3.30 | % | 428,426 | 26,932 | 6.29 | % | ||||||||||||||||||||||||
Dollars
|
108,672 | 16 | 0.01 | % | 55,755 | 9 | 0.02 | % | 37,512 | 10 | 0.03 | % | ||||||||||||||||||||||||
Total
|
693,509 | 28,844 | 4.16 | % | 545,172 | 16,174 | 2.97 | % | 465,938 | 26,942 | 5.78 | % | ||||||||||||||||||||||||
Total
interest-bearing liabilities
|
||||||||||||||||||||||||||||||||||||
Pesos
|
9,635,606 | 750,434 | 7.79 | % | 9,311,554 | 566,069 | 6.08 | % | 8,054,634 | 473,463 | 5.88 | % | ||||||||||||||||||||||||
Dollars
|
3,187,839 | 61,034 | 1.91 | % | 2,473,125 | 50,875 | 2.06 | % | 2,127,045 | 50,693 | 2.38 | % | ||||||||||||||||||||||||
Total
|
12,823,445 | 811,468 | 6.33 | % | 11,784,679 | 616,944 | 5.24 | % | 10,181,679 | 524,156 | 5.15 | % |
Fiscal
Years ended December 31,
|
||||||||||||||||||||||||||||||||||||
2008
|
2007
|
2006
|
||||||||||||||||||||||||||||||||||
Average
balance (1)
|
Interest
earned/
paid
|
Average
nominal
rate(2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
Nominal
rate(2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
nominal
rate(2)
|
||||||||||||||||||||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||||||||||||||||||||||||||
Non
interest-bearing liabilities and stockholders’ equity
|
||||||||||||||||||||||||||||||||||||
Demand
deposits
|
||||||||||||||||||||||||||||||||||||
Pesos
|
2,932,651 | — | — | 2,547,283 | — | — | 2,094,140 | — | — | |||||||||||||||||||||||||||
Dollars
|
57,159 | — | — | 43,736 | — | — | 24,537 | — | — | |||||||||||||||||||||||||||
Total
|
2,989,810 | — | — | 2,591,019 | — | — | 2,118,677 | — | — | |||||||||||||||||||||||||||
Other
liabilities
|
||||||||||||||||||||||||||||||||||||
Pesos
|
4,253,636 | — | — | 3,272,083 | — | — | 2,917,529 | — | — | |||||||||||||||||||||||||||
Dollars
|
459,048 | — | — | 354,934 | — | — | 290,635 | — | — | |||||||||||||||||||||||||||
Total
|
4,712,684 | — | — | 3,627,017 | — | — | 3,208,164 | — | — | |||||||||||||||||||||||||||
Minority
interest
|
||||||||||||||||||||||||||||||||||||
Pesos
|
251,093 | — | — | 228,665 | — | — | 197,278 | — | — | |||||||||||||||||||||||||||
Total
|
251,093 | — | — | 228,665 | — | — | 197,278 | — | — | |||||||||||||||||||||||||||
Stockholders’
equity
|
||||||||||||||||||||||||||||||||||||
Pesos
|
2,095,867 | — | — | 2,039,547 | — | — | 1,782,562 | — | — | |||||||||||||||||||||||||||
Total
|
2,095,867 | — | — | 2,039,547 | — | — | 1,782,562 | — | — | |||||||||||||||||||||||||||
Total
non-interest-bearing liabilities and stockholders equity
|
||||||||||||||||||||||||||||||||||||
Pesos
|
9,533,247 | — | — | 8,087,578 | — | — | 6,991,509 | — | — | |||||||||||||||||||||||||||
Dollars
|
516,207 | — | — | 398,670 | — | — | 315,172 | — | — | |||||||||||||||||||||||||||
Total
|
10,049,454 | — | — | 8,486,248 | — | — | 7,306,681 | — | — | |||||||||||||||||||||||||||
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||||||||||||||||||||||||||||||
Pesos
|
19,168,853 | — | — | 17,399,132 | — | — | 15,046,143 | — | — | |||||||||||||||||||||||||||
Dollars
|
3,704,046 | — | — | 2,871,795 | — | — | 2,442,217 | — | — | |||||||||||||||||||||||||||
Total
|
22,872,899 | — | — | 20,270,927 | — | — | 17,488,360 | — | — | |||||||||||||||||||||||||||
(1)
|
Average
balances are derived from month-end
balances.
|
(2)
|
Annualized
on a 360-day basis.
|
December
2008/December 2007
Increase
(Decrease) Due to
Changes
in
|
December
2007/December 2006
Increase
(Decrease) Due to
Changes
in
|
December
2006/December 2005
Increase
(Decrease) Due to
Changes
in
|
||||||||||||||||||||||||||||||||||
Volume
|
Rate
|
Net
Change
|
Volume
|
Rate
|
Net
Change
|
Volume
|
Rate
|
Net
Change
|
||||||||||||||||||||||||||||
(in
thousands of pesos)
|
||||||||||||||||||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||||||||||||||
Interest-earning
assets
|
||||||||||||||||||||||||||||||||||||
Government
securities
|
||||||||||||||||||||||||||||||||||||
Pesos
|
8,584 | (466,513 | ) | (457,929 | ) | 73,386 | (249,497 | ) | (176,111 | ) | 205,284 | 138,985 | 344,269 | |||||||||||||||||||||||
Dollars
|
(1,167 | ) | (3,975 | ) | (5,142 | ) | (10,503 | ) | (25,231 | ) | (35,734 | ) | (45,805 | ) | 78,326 | 32,521 | ||||||||||||||||||||
Total
|
7,417 | (470,488 | ) | (463,071 | ) | 62,883 | (274,728 | ) | (211,845 | ) | 159,479 | 217,311 | 376,790 | |||||||||||||||||||||||
Loans
|
||||||||||||||||||||||||||||||||||||
Private
sector
|
||||||||||||||||||||||||||||||||||||
Pesos
|
300,173 | 100,457 | 400,630 | 238,000 | 76,492 | 314,492 | 183,139 | 27,602 | 210,741 | |||||||||||||||||||||||||||
Dollars
|
17,283 | 3,208 | 20,491 | 35,071 | 7,503 | 42,574 | 26,199 | (343 | ) | 25,856 | ||||||||||||||||||||||||||
Total
|
317,456 | 103,665 | 421,121 | 273,071 | 83,995 | 357,066 | 209,338 | 27,259 | 236,597 | |||||||||||||||||||||||||||
Public
sector
|
||||||||||||||||||||||||||||||||||||
Pesos
|
19,085 | (61,238 | ) | (42,153 | ) | (117,960 | ) | (97,268 | ) | (215,228 | ) | (431,175 | ) | 80,509 | (350,666 | ) | ||||||||||||||||||||
Total
|
19,085 | (61,238 | ) | (42,153 | ) | (117,960 | ) | (97,268 | ) | (215,228 | ) | (431,175 | ) | 80,509 | (350,666 | ) | ||||||||||||||||||||
Deposits
with the Central Bank
|
||||||||||||||||||||||||||||||||||||
Pesos
|
753 | (5,767 | ) | (5,014 | ) | 164 | 1,724 | 1,888 | (65,591 | ) | 58,871 | (6,720 | ) | |||||||||||||||||||||||
Dollars
|
1,819 | (4,141 | ) | (2,322 | ) | 440 | (538 | ) | (98 | ) | 1,597 | (2,947 | ) | (1,350 | ) | |||||||||||||||||||||
Total
|
2,572 | (9,908 | ) | (7,336 | ) | 604 | 1,186 | 1,790 | (63,994 | ) | 55,924 | (8,070 | ) | |||||||||||||||||||||||
Other
assets
|
||||||||||||||||||||||||||||||||||||
Pesos
|
(57,935 | ) | 136,267 | 78,332 | 51,133 | (52,518 | ) | (1,385 | ) | (10,967 | ) | 41,270 | 30,303 | |||||||||||||||||||||||
Dollars
|
1,170 | (1,412 | ) | (242 | ) | (267 | ) | (1,840 | ) | (2,107 | ) | 922 | (9,165 | ) | (8,243 | ) | ||||||||||||||||||||
Total
|
(56,765 | ) | 134,855 | 78,090 | 50,866 | (54,358 | ) | (3,492 | ) | (10,045 | ) | 32,105 | 22,060 | |||||||||||||||||||||||
Total
interest-earning assets
|
||||||||||||||||||||||||||||||||||||
Pesos
|
270,660 | (296,794 | ) | (26,134 | ) | 244,723 | (321,067 | ) | (76,344 | ) | (119,310 | ) | 347,237 | 227,927 | ||||||||||||||||||||||
Dollars
|
19,105 | (6,320 | ) | 12,785 | 24,741 | (20,106 | ) | 4,635 | (17,087 | ) | 65,871 | 48,784 | ||||||||||||||||||||||||
Total
|
289,765 | (303,114 | ) | (13,349 | ) | 269,464 | (341,173 | ) | (71,709 | ) | (136,397 | ) | 413,108 | 276,711 |
December
2008/December 2007
Increase
(Decrease) Due to
Changes
in
|
December
2007/December 2006
Increase
(Decrease) Due to
Changes
in
|
December
2006/December 2005
Increase
(Decrease) Due to
Changes
in
|
||||||||||||||||||||||||||||||||||
Volume
|
Rate
|
Net
Change
|
Volume
|
Rate
|
Net
Change
|
Volume
|
Rate
|
Net
Change
|
||||||||||||||||||||||||||||
(in
thousands of pesos)
|
||||||||||||||||||||||||||||||||||||
LIABILITIES
|
||||||||||||||||||||||||||||||||||||
Interest-bearing
liabilities
|
||||||||||||||||||||||||||||||||||||
Savings
accounts
|
||||||||||||||||||||||||||||||||||||
Pesos
|
1,088 | 844 | 1,932 | 946 | 715 | 1,661 | 275 | (1,587 | ) | (1,312 | ) | |||||||||||||||||||||||||
Dollars
|
205 | (22 | ) | 183 | 112 | 14 | 126 | 144 | 64 | 208 | ||||||||||||||||||||||||||
Total
|
1,293 | 822 | 2,115 | 1,058 | 729 | 1,787 | 419 | (1,523 | ) | (1,104 | ) | |||||||||||||||||||||||||
Time
deposits
|
||||||||||||||||||||||||||||||||||||
Pesos
|
(20,251 | ) | 197,275 | 177,024 | 70,022 | 30,535 | 100,557 | 21,643 | 71,503 | 93,146 | ||||||||||||||||||||||||||
Dollars
|
7,474 | 3,548 | 11,022 | 7,124 | 3,993 | 11,117 | 5,887 | 1,988 | 7,875 | |||||||||||||||||||||||||||
Total
|
(12,777 | ) | 200,823 | 188,046 | 77,146 | 34,528 | 111,674 | 27,530 | 73,491 | 101,021 | ||||||||||||||||||||||||||
Borrowings
from the Central Bank
|
||||||||||||||||||||||||||||||||||||
Pesos
|
— | — | — | — | (7,663 | ) | (7,663 | ) | (124,148 | ) | (39,726 | ) | (163,874 | ) | ||||||||||||||||||||||
Dollars
|
2 | 10 | 12 | — | 2 | 2 | — | (1 | ) | (1 | ) | |||||||||||||||||||||||||
Total
|
2 | 10 | 12 | — | (7,661 | ) | (7,661 | ) | (124,148 | ) | (39,727 | ) | (163,875 | ) | ||||||||||||||||||||||
Borrowings
from other financial institutions
|
||||||||||||||||||||||||||||||||||||
Pesos
|
(11,785 | ) | 4,531 | (7,254 | ) | 3,234 | 5,584 | 8,818 | 5,539 | 2,024 | 7,563 | |||||||||||||||||||||||||
Dollars
|
6,531 | (3,902 | ) | 2,629 | 5,137 | (1,161 | ) | 3,976 | 3,072 | 2,798 | 5,870 | |||||||||||||||||||||||||
Total
|
(5,254 | ) | 629 | (4,625 | ) | 8,371 | 4,423 | 12,794 | 8,611 | 4,822 | 13,433 | |||||||||||||||||||||||||
Corporate
bonds
|
||||||||||||||||||||||||||||||||||||
Dollars
|
— | (3,694 | ) | (3,694 | ) | (20,261 | ) | 5,223 | (15,038 | ) | (3,155 | ) | 6,275 | 3,120 | ||||||||||||||||||||||
Total
|
(3,694 | ) | (3,694 | ) | (20,261 | ) | 5,223 | (15,038 | ) | (3,155 | ) | 6,275 | 3,120 | |||||||||||||||||||||||
Other
liabilities
|
||||||||||||||||||||||||||||||||||||
Pesos
|
4,704 | 7,959 | 12,663 | 2,015 | (12,782 | ) | (10,767 | ) | 2,348 | (6,938 | ) | (4,590 | ) | |||||||||||||||||||||||
Dollars
|
8 | (1 | ) | 7 | 3 | (4 | ) | (1 | ) | 1 | (34 | ) | (33 | ) | ||||||||||||||||||||||
Total
|
4,712 | 7,958 | 12,670 | 2,018 | (12,786 | ) | (10,768 | ) | 2,349 | (6,972 | ) | (4,623 | ) | |||||||||||||||||||||||
Total
interest-bearing liabilities
|
||||||||||||||||||||||||||||||||||||
Pesos
|
(26,244 | ) | 210,609 | 184,365 | 76,217 | 16,389 | 92,606 | (94,343 | ) | 25,276 | (69,067 | ) | ||||||||||||||||||||||||
Dollars
|
14,220 | (4,061 | ) | 10,159 | (7,885 | ) | 8,067 | 182 | 5,949 | 11,090 | 17,039 | |||||||||||||||||||||||||
Total
|
(12,024 | ) | 206,548 | 194,524 | 68,332 | 24,456 | 92,788 | (88,394 | ) | 36,366 | (52,028 | ) |
Fiscal
Years ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||
Average
interest-earning assets
|
||||||||||||
Pesos
|
15,686,048 | 14,478,059 | 12,058,894 | |||||||||
Dollars
|
3,424,953 | 2,561,490 | 2,125,797 | |||||||||
Total
|
19,111,001 | 17,039,549 | 14,184,691 | |||||||||
Net
interest income (1)
|
||||||||||||
Pesos
|
889,536 | 1,100,035 | 1,268,986 | |||||||||
Dollars
|
71,835 | 69,209 | 64,758 | |||||||||
Total
|
961,371 | 1,169,244 | 1,333,744 | |||||||||
Net
interest margin (2)
|
||||||||||||
Pesos
|
5.67 | % | 7.60 | % | 10.52 | % | ||||||
Dollars
|
2.10 | % | 2.70 | % | 3.05 | % | ||||||
Weighted
average rate
|
5.03 | % | 6.86 | % | 9.40 | % | ||||||
Yield
spread nominal basis (3)
|
||||||||||||
Pesos
|
2.67 | % | 5.43 | % | 8.57 | % | ||||||
Dollars
|
1.96 | % | 2.63 | % | 3.05 | % | ||||||
Weighted
average rate
|
2.95 | % | 5.24 | % | 7.95 | % |
(1)
|
Net
interest income is defined as interest earned less interest paid. Trading
results from our portfolio of Government Securities are included in
interest.
|
(2)
|
Net
interest margin is net interest income stated as a percentage of average
interest-earning assets.
|
(3)
|
Yield
spread nominal basis is defined as the difference between the average
nominal rate on interest-earning assets and the average nominal rate on
interest-bearing liabilities.
|
Fiscal
Years ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||
Net
income
|
321,510 | 235,049 | 180,037 | |||||||||
Average
total assets (1)
|
23,924,232 | 20,428,814 | 17,409,189 | |||||||||
Average
stockholders’ equity (1)
|
2,066,431 | 2,005,711 | 1,878,066 | |||||||||
Stockholders’
equity at the end of the fiscal year
|
2,076,024 | 2,056,837 | 1,954,584 | |||||||||
Net
income as a percentage of:
|
||||||||||||
Average
total assets
|
1.34 | % | 1.15 | % | 1.03 | % | ||||||
Average
stockholders’ equity
|
15.56 | % | 11.72 | % | 9.59 | % | ||||||
Declared dividends(2)
|
100,000 | 164,000 | 90,000 | |||||||||
Dividend
payout ratio (3)
|
31.10 | % | 69.77 | % | 49.99 | % | ||||||
Average
stockholders’ equity as a percentage of average total
assets
|
8.64 | % | 9.82 | % | 10.79 | % |
(1)
|
Computed
as the average of fiscal year-beginning and fiscal year-ending
balances.
|
(2)
|
For
the fiscal year ended December 31, 2008 the dividends were paid Ps. 35
million in cash and Ps. 65 through the issue of new shares. For the fiscal
years ended December 31, 2007, December 31, 2006 and December 31, 2005 the
dividends were paid totally in cash.
|
(3)
|
Declared dividends
stated as percentage of net income. Since April 2002, the Central Bank has
suspended the payment of dividends. As of June 2, 2004 financial
institutions are allowed to make distributions will have no effect with
the prior authorization of the Central Bank and provided that certain
conditions are met. See “Financial
Information –
Dividends”.
|
Fiscal
Years ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
(in
thousands of pesos)
|
||||||||||||
Government
securities
|
||||||||||||
In
pesos:
|
||||||||||||
Investment
accounts
|
||||||||||||
Debt
consolidation bonds—Social security (BOCON)
|
59,737 | — | — | |||||||||
Argentine
bonds
|
439,816 | 370,832 | 406,674 | |||||||||
Argentine
Central Bank notes (NOBAC)
|
371,274 | 176,882 | — | |||||||||
Holding
for trading or financial transactions
|
||||||||||||
Debt
consolidation bonds—Social security (BOCON)
|
6,600 | 21,376 | 16,465 | |||||||||
Argentine
bonds
|
34,874 | 90,741 | 238,981 | |||||||||
Argentine
Central Bank notes (NOBAC)
|
— | 3,266 | — | |||||||||
Other
debt bonds
|
3,103 | 582 | 7,695 | |||||||||
Holding
available for sale
|
||||||||||||
Debt
consolidation bonds—Social security (BOCON)
|
65,213 | 166,229 | — | |||||||||
Argentine
bonds
|
26,456 | 73,284 | — | |||||||||
Argentine
Central Bank notes (NOBAC)
|
485,833 | 1,133,071 | — | |||||||||
Instruments
issued by the Argentine Central Bank
|
||||||||||||
Argentine
Central Bank bills (LEBAC)
|
1,267,667 | 140,068 | 75,139 | |||||||||
Argentine
Central Bank notes (NOBAC)
|
1,409,020 | 1,865,723 | 2,445,767 | |||||||||
Unlisted
government securities
|
||||||||||||
Argentine
bonds
|
1,002,431 | 903,897 | 843,792 | |||||||||
Tax
credit certificates
|
6 | 6 | 5 | |||||||||
Other
debt bonds
|
223 | — | — | |||||||||
Total
government securities in pesos
|
5,172,253 | 4,945,957 | 4,034,518 | |||||||||
In
foreign currency:
|
||||||||||||
Investment
accounts
|
||||||||||||
Argentine
bonds
|
84,707 | — | 108,622 | |||||||||
Government
Securities for repurchase agreements with the Argentine Central
Bank
|
||||||||||||
Argentine
bonds
|
334,688 | — | — | |||||||||
Holding
for trading or financial transactions
|
||||||||||||
Argentine
bonds
|
27,764 | 51,109 | 40,406 | |||||||||
Other
debt bonds
|
200,428 | 3,246 | 276 | |||||||||
Unlisted
government securities
|
||||||||||||
Argentine
bonds
|
2,148 | — | — | |||||||||
Other
debt bonds
|
25 | — | — | |||||||||
Total
government securities in foreign currency
|
649,760 | 54,355 | 149,304 | |||||||||
Total
government securities
|
5,822,013 | 5,000,312 | 4,183,822 | |||||||||
Investments
in listed private securities
|
||||||||||||
Shares
|
3,708 | 36,313 | 40,975 | |||||||||
Corporate
bonds—Listed
|
40,478 | 49,011 | 75,813 | |||||||||
Mutual
funds
|
50,228 | 40,286 | 35,650 | |||||||||
Certificates
of participation in financial trusts
|
69,980 | 116,333 | 50,958 | |||||||||
Total
private securities
|
164,394 | 241,943 | 203,396 | |||||||||
Subtotal
government and private securities
|
5,986,407 | 5,242,255 | 4,387,218 | |||||||||
Allowances
|
(752,747 | ) | (61,002 | ) | (15,186 | ) | ||||||
Total
government and private securities
|
5,233,660 | 5,181,253 | 4,372,032 | |||||||||
Corporate
bonds—Unlisted
|
104,476 | 81,976 | 58,684 |
Maturing
|
||||||||||||||||||||
Within
1 year
|
After
1 year but within 5 years
|
After
5 years but within 10 years
|
After
10 years
|
Total
|
||||||||||||||||
Book
value
|
||||||||||||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||||||||||
Government
securities
|
||||||||||||||||||||
In
Pesos:
|
||||||||||||||||||||
Investment
accounts
|
||||||||||||||||||||
Debt
consolidation bonds-Social security (BOCON) (*)
|
9,176 | 36,703 | 10,363 | 3,495 | 59,737 | |||||||||||||||
Argentine
bonds (*)
|
— | 84,128 | 10,240 | 345,448 | 439,816 | |||||||||||||||
Argentine
Central Bank notes (NOBAC) (*)
|
— | 371,274 | — | — | 371,274 | |||||||||||||||
Holding
for trading on financial transactions
|
||||||||||||||||||||
Debt
consolidation bonds-Social security (BOCON) (*)
|
1,942 | 3,899 | 689 | 70 | 6,600 | |||||||||||||||
Argentine
bonds (*)
|
52 | 9,930 | 522 | 24,370 | 34,874 | |||||||||||||||
Other
debt bonds
|
1,074 | 2,029 | — | — | 3,103 | |||||||||||||||
Holding
available for sale
|
||||||||||||||||||||
Debt
consolidation bonds-Social security (BOCON) (*)
|
11,699 | 35,187 | 18,327 | — | 65,213 | |||||||||||||||
Argentine
bonds (*)
|
3,537 | 11,225 | 11,694 | — | 26,456 | |||||||||||||||
Argentine
Central Bank notes (NOBAC) (*)
|
319,793 | 166,040 | — | — | 485,833 | |||||||||||||||
Instruments
issued by the Argentine Central Banks
|
||||||||||||||||||||
Argentine
Central Bank bills (LEBAC) (*)
|
1,267,667 | — | — | — | 1,267,667 | |||||||||||||||
Argentine
Central Bank notes (NOBAC) (*)
|
910,713 | 498,307 | — | — | 1,409,020 | |||||||||||||||
Unlisted
Government Securities
|
||||||||||||||||||||
Argentine
bonds (*)
|
83,455 | 348,700 | 417,275 | 153,001 | 1,002,431 | |||||||||||||||
Tax
credit certificates
|
6 | — | — | — | 6 | |||||||||||||||
Other
debt bonds
|
223 | — | — | — | 223 | |||||||||||||||
Total
government securities in pesos
|
2,609,337 | 1,567,422 | 469,110 | 526,384 | 5,172,253 | |||||||||||||||
In
foreign currency:
|
||||||||||||||||||||
Investment
accounts
|
||||||||||||||||||||
Argentine
bonds (*)
|
— | — | 27,939 | 56,768 | 84,707 | |||||||||||||||
Government
Securities for repurchase agreements with the Argentine Central
Bank
|
||||||||||||||||||||
Argentine
bonds (*)
|
— | 334,688 | — | — | 334,688 | |||||||||||||||
Holding
for trading on financial transactions
|
||||||||||||||||||||
Argentine
bonds (*)
|
5,263 | 22,198 | — | 303 | 27,764 | |||||||||||||||
Other
debt bonds
|
192,275 | 7,820 | 178 | 155 | 200,428 | |||||||||||||||
Unlisted
government securities
|
||||||||||||||||||||
Argentine
bonds (*)
|
— | — | — | 2,148 | 2,148 | |||||||||||||||
Other
debt bonds
|
8 | 17 | — | — | 25 | |||||||||||||||
Total
government securities in foreign currency
|
197,546 | 364,723 | 28,117 | 59,374 | 649,760 | |||||||||||||||
Total
government securities
|
2,806,883 | 1,932,144 | 497,227 | 585,759 | 5,822,013 | |||||||||||||||
Certificates
of participation on financial trust
|
28,665 | 41,143 | 172 | — | 69,980 | |||||||||||||||
Corporate
bonds—Listed
|
8,801 | 28,156 | 1,350 | 2,171 | 40,478 | |||||||||||||||
Corporate
bonds —Unlisted
|
11,911 | 92,565 | — | — | 104,476 | |||||||||||||||
Weighted
average yield (for the securities indicated with*)
|
13.16 | % | 21.86 | % | 15.72 | % | 16.24 | % |
Fiscal
Years ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
(in
thousands of pesos)
|
||||||||||||
Principal
|
||||||||||||
Advances
(1)
|
1,413,522 | 1,326,472 | 1,469,368 | |||||||||
Notes
discounted and purchased (2)
|
1,241,508 | 1,430,787 | 793,195 | |||||||||
Secured
with mortgages
|
946,804 | 772,036 | 460,559 | |||||||||
Consumer
loans (3)
|
3,606,729 | 2,392,956 | 1,313,816 | |||||||||
Financial
loans (4)
|
598,755 | 541,911 | 436,126 | |||||||||
Loans
to governmental sector (5)
|
2,400,511 | 2,367,869 | 2,887,276 | |||||||||
Other
loans
|
2,373,476 | 2,666,843 | 2,282,243 | |||||||||
Less:
Unaccrued interest and unused collections (6)
|
(24,304 | ) | (13,756 | ) | (5,543 | ) | ||||||
Less:
Difference arising from purchase of portfolio
|
(102 | ) | (93 | ) | (90 | ) | ||||||
Plus:
Interest and exchange differences receivable
|
147,079 | 103,824 | 64,330 | |||||||||
Less:
Allowance for loan losses
|
(196,489 | ) | (198,728 | ) | (167,097 | ) | ||||||
Total
|
12,507,489 | 11,390,121 | 9,534,183 |
|
(1)
|
Advances
include short and long-term loans to companies and overdraft lines of
credit.
|
|
(2)
|
Notes
discounted and purchased are endorsed promissory
notes.
|
|
(3)
|
Consumer
loans include credit card loans and other consumer loans. Overdrafts to
individuals are included under
“Advances”.
|
|
(4)
|
Financial
loans are defined as loans to financial
institutions.
|
|
(5)
|
Loans
to governmental sector are secured by tax
rights.
|
|
(6)
|
Unaccrued
interest is defined as the discount on notes and
bills.
|
Fiscal
Years ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
(in
thousands of pesos)
|
||||||||||||
Liquid
guarantees
|
73,871 | 97,764 | 60,813 | |||||||||
Preferred
guarantees
|
1,320,822 | 832,607 | 517,028 | |||||||||
Total
|
1,394,693 | 930,371 | 577,841 |
Fiscal
year ended December 31,
|
||||||||||||||||||||||||
2008
|
2007
|
2006
|
||||||||||||||||||||||
Loan
Portfolio
|
%
of Loan Portfolio
|
Loan
Portfolio
|
%
of Loan Portfolio
|
Loan
Portfolio
|
%
of Loan Portfolio
|
|||||||||||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||||||||||||||
Agricultural
and livestock
|
311,226 | 2.45 | % | 348,966 | 3.01 | % | 185,041 | 1.91 | % | |||||||||||||||
Beverage
|
165,130 | 1.30 | % | 207,597 | 1.79 | % | 189,651 | 1.95 | % | |||||||||||||||
Construction
|
128,242 | 1.01 | % | 143,305 | 1.24 | % | 82,077 | 0.85 | % | |||||||||||||||
Consumer
|
4,270,716 | 33.62 | % | 2,945,120 | 25.41 | % | 1,721,651 | 17.75 | % | |||||||||||||||
Electrical
machinery
|
— | — | 289,858 | 2.50 | % | 64,021 | 0.66 | % | ||||||||||||||||
Electricity,
oil, water and sanitary services
|
92,258 | 0.73 | % | — | — | — | — | |||||||||||||||||
Financial
sector
|
598,755 | 4.71 | % | 541,911 | 4.68 | % | 436,126 | 4.50 | % | |||||||||||||||
Foodstuff
|
265,929 | 2.09 | % | 764,487 | 6.60 | % | 625,045 | 6.44 | % | |||||||||||||||
Government
services
|
2,400,511 | 18.90 | % | 2,367,869 | 20.43 | % | 2,887,276 | 29.76 | % | |||||||||||||||
Industrial
metals
|
259,660 | 2.04 | % | 219,039 | 1.89 | % | 129,272 | 1.33 | % | |||||||||||||||
Leather
and fur product
|
9,375 | 0.07 | % | 70,121 | 0.61 | % | 73,993 | 0.76 | % | |||||||||||||||
Mining
products
|
263,913 | 2.08 | % | 463,545 | 4.00 | % | 422,255 | 4.35 | % | |||||||||||||||
Oil
and carbon
|
304,147 | 2.39 | % | 473,427 | 4.09 | % | 448,322 | 4.62 | % | |||||||||||||||
Others
|
2,575,617 | 20.27 | % | 1,615,437 | 13.92 | % | 1,601,192 | 16.50 | % | |||||||||||||||
Other
manufacturing
|
95,143 | 0.75 | % | 100,678 | 0.87 | % | 99,885 | 1.03 | % | |||||||||||||||
Paper
products
|
19,959 | 0.16 | % | — | — | — | — | |||||||||||||||||
Printers,
publishers and related industries
|
— | — | 10,034 | 0.09 | % | 15,255 | 0.16 | % | ||||||||||||||||
Rubber
products
|
61,248 | 0.48 | % | 85,810 | 0.74 | % | 69,291 | 0.71 | % | |||||||||||||||
Retail
trade
|
354,681 | 2.79 | % | 312,412 | 2.70 | % | 259,731 | 2.68 | % | |||||||||||||||
Services
|
35,530 | 0.28 | % | 82,978 | 0.72 | % | 10,591 | 0.11 | % | |||||||||||||||
Shoes,
apparel and other textile products
|
22,473 | 0.18 | % | 19,276 | 0.17 | % | 11,670 | 0.12 | % | |||||||||||||||
Textile
|
36,836 | 0.29 | % | 57,117 | 0.49 | % | 26,751 | 0.28 | % | |||||||||||||||
Tobacco
|
5,021 | 0.04 | % | 9,466 | 0.08 | % | 8,214 | 0.08 | % | |||||||||||||||
Transportation
material
|
96,173 | 0.76 | % | 134,852 | 1.16 | % | 135,341 | 1.40 | % | |||||||||||||||
Wholesale
trade
|
318,442 | 2.51 | % | 305,727 | 2.64 | % | 171,592 | 1.77 | % | |||||||||||||||
Wood
products and cork
|
13,095 | 0.10 | % | 19,910 | 0.17 | % | 27,127 | 0.28 | % | |||||||||||||||
Total
|
12,704,080 | 100.00 | % | 11,588,942 | 100.00 | % | 9,701,370 | 100.00 | % |
Maturing
|
||||||||||||||||||||
Amount
at December 31,
2008
|
Within
3
months
|
After
3
months
but
within
1 year
|
After
1 year
but
within
5
years
|
After
5 years
|
||||||||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||||||||||
To
the non-financial public sector (1)
|
2,400,511 | 1,984 | 452,049 | 1,236,413 | 710,065 | |||||||||||||||
To
the financial sector
|
598,755 | 270,598 | 280,552 | 47,605 | — | |||||||||||||||
To
the non-financial private sector and residents abroad
|
9,704,814 | 5,383,172 | 1,542,538 | 2,155,032 | 624,072 | |||||||||||||||
Overdraft
|
1,440,272 | 1,290,297 | 146,727 | 3,248 | ||||||||||||||||
With
privileged guarantees
|
1,471,928 | 85,106 | 198,770 | 573,328 | 614,724 | |||||||||||||||
Credit
cards
|
1,243,498 | 1,243,498 | — | — | — | |||||||||||||||
Other
|
5,549,116 | 2,764,271 | 1,197,041 | 1,578,456 | 9,348 | |||||||||||||||
Total
|
12,704,080 | 5,655,754 | 2,275,139 | 3,439,050 | 1,334,137 | |||||||||||||||
Percentage
of total loan portfolio
|
100.00 | % | 44.52 | % | 17.91 | % | 27.07 | % | 10.50 | % |
(1)
|
A
swap of National Government Guaranteed Loans for new debt instruments
issued by the National Government (Bonar 2014) with 5-year maturity took
place in January 2009. For BBVA Banco Francés and its
subsidiaries the swap was made by a reference value of Ps. 1,414.0
million.
|
Fiscal
Year Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
(in
thousands of pesos)
|
||||||||||||
Outstanding
of BBVA Banco Francés to American borrowers
|
— | 129,661 | — | |||||||||
Total
|
— | 129,661 | — |
Fiscal
Year Ended
December 31,
2008
|
||||
(in
thousands of pesos)
|
||||
Variable
Rate
|
||||
Pesos
— including adjustable loans
|
2,930,798 | |||
Foreign
currency
|
187,945 | |||
3,118,743 | ||||
Fixed
Rate
|
||||
Pesos
|
7,684,857 | |||
Foreign
currency
|
1,789,781 | |||
9,474,638 | ||||
Non-performing (1)
|
||||
Pesos
|
105,654 | |||
Foreign
currency
|
5,045 | |||
110,699 | ||||
Total
|
12,704,080 |
(1)
|
For
additional information on non-performing loans see “Information
on the Company—Selected Statistical Information—Non-performing and
Restructured Loans”, below in this
section.
|
Interest
Sensitivity in
Outstanding
Loans Maturing
In
More Than One Year
|
||||||||
Fixed
Rate
|
Variable
Rate
|
|||||||
(in
thousands of pesos)
|
||||||||
To
the non-financial public sector
|
— | 1,946,479 | ||||||
To
the financial sector
|
47,605 | — | ||||||
To
the non-financial private sector and residents abroad
|
2,316,347 | 462,756 | ||||||
Total
|
2,363,952 | 2,409,235 |
§
|
The
allocation of their periodic income in relation to the totality of credit
commitments assumed; or
|
§
|
Through
the use of the credit scoring and screening
methods.
|
1.
|
“Normal”
if all payments on its loans are current or less than 31 days overdue and,
in checking account overdrafts, less than 61 days
overdue;
|
2.
|
“Low
Risk” if payments with respect to principal, interest or otherwise, on any
of its loans, are overdue for more than 31 and up to 90
days;
|
3.
|
“Medium
Risk” if payments on any of its loans are overdue for more than 90 and up
to 180 days;
|
4.
|
“High
Risk” if payments on any of its loans are overdue for more than 180 days
and up to one year or if it is subject to judicial proceedings for default
on any of those loans;
|
5.
|
“Irrecoverable”
if payments on any of its loans are overdue for more than one year, if the
borrower is in bankruptcy or liquidation proceedings or if it is
insolvent; and
|
6.
|
“Irrecoverable
for Technical Decision” if such borrower
is:
|
(a)
|
In
arrears for more than 180 days according to a list provided by the Central
Bank, which includes:
|
§
|
Financial
institutions liquidated by the Central
Bank,
|
§
|
Entities
created as a result of the privatization of public financial institutions
and in the process of
dissolution,
|
§
|
Financial
institutions whose licenses have been revoked by the Central Bank and are
under judicial liquidation or
bankruptcy,
|
§
|
Any
trust in which SEDESA is the
beneficiary.
|
(b)
|
A
foreign borrower (including banks or other financial institutions) which
is not classified as “investment grade” by any of the rating agencies
admitted by the Central Bank pursuant to the Evaluation of Financial
Entities’s standards, except for the
following:
|
§
|
Foreign
banks or other financial institutions controlling or controlled by the
financial entity under the consolidated or other supervision systems
approved by the Central Bank,
|
§
|
Financing
that is:
|
o
|
Secured
by foreign banks and classified as “Investment Grade” by any of the
international rating agencies admitted by the Central
Bank;
|
o
|
Related
to the buying or selling of securities through custodian banks admitted by
the Central Bank (Caja de Valores, Cedel, Euroclear or the Depositary
Trust Company), arising from the usual business practices in the market in
which they are made;
|
o
|
Related
to foreign trade
transactions;
|
o
|
Entailing
swaps of dollars and domestic government bonds at market price, with
sufficient margins, involving custodians admitted by the Central
Bank;
|
o
|
Foreign
banks or financial institutions subject to the consolidated supervision
system which controls local financial institutions organized as
corporations (sociedades
anónimas);
|
o
|
Other
foreign banks authorized to take part in reciprocal payment and credit
regimes to which the Central Bank is a party, to the extent the
controlling financial entity is subject to a consolidated supervision
system; and
|
o
|
Non-financial
private sector clients whose debt together with the amount of the
financing requested at the time of granting it, exceeds the lower of 2.5%
of the bank’s computable equity responsibility as at the last day of the
preceding month or the equivalent to Ps.1,000,000, and who have not
submitted a sworn statement as to whether they are related or not to the
respective financial agent, or whether their relationship with the latter
implies the existence of controlling influence, or who have not updated
their previous statement.
|
§
|
Assistance
provided through foreign subsidiaries or branches of local financial
institutions under the consolidated supervision system, to the extent the
financial assistance is not funded directly or indirectly by local
financial institutions.
|
i)
|
Eligible
borrowers:
|
ii)
|
Individual
limit:
|
§
|
Dwelling
mortgage loans: Ps.200,000
|
§
|
Chattel
mortgage car loans: Ps.75,000
|
§
|
Personal
loans and financing by credit card:
Ps.15,000
|
1)
|
The
treatment for refinancing in the Consumption Portfolio, depending on the
refinanced borrower’s compliance
record.
|
§
|
Once
the Refinancing Agreement has been signed, the previous situation applies,
unless borrower makes payments in advance which can be
computed.
|
§
|
Borrower
must accumulate a greater number of installments or percentage of
cancellation in order to improve his
situation.
|
(i)
|
Situation
improved by payment of installments. The following table applies (*)
|
Quantity
of quotas
|
||||||||||||||||
Change
of category
|
from
Irrecoverable
|
from
High
Risk
|
from
Medium
Risk
|
from
Low
Risk
|
||||||||||||
Change
to High Risk
|
3 | — | — | — | ||||||||||||
Change
to Medium Risk
|
6 | 3 | — | — | ||||||||||||
Change
to Low Risk
|
8 | 5 | 2 | — | ||||||||||||
Change
to Normal
|
9 | 6 | 3 | 1 |
(*)
|
The refinancing
requires a punctual payment or with delays of not more than 31 days
according to the German or French Amortization System. Regularity may be
monthly or bimonthly.
|
(ii)
|
Situation
improved by Percentage of Capital Cancellation (also applicable to
Commercial Portfolio) (**)
|
Percentage
of cancellation
|
||||||||||||||||
Change
of category
|
from
Irrecoverable
|
from
High
Risk
|
from
Medium
Risk
|
from
Low
Risk
|
||||||||||||
Change
to High Risk
|
20 | % | — | — | — | |||||||||||
Change
to Medium Risk
|
35 | % | 15 | % | — | — | ||||||||||
Change
to Low Risk
|
45 | % | 25 | % | 10 | % | — | |||||||||
Change
to Normal
|
55 | % | 35 | % | 20 | % | 10 | % |
(**)
|
For
amortization systems with periods greater than bimonthly or
irregular.
|
§
|
Refinancings
with regular monthly or bimonthly payments: by the timely payment of
installments. This is the criterion adopted by BBVA Banco
Francés.
|
§
|
All
other forms: by capital
amortization.
|
1.
|
Tranches
of arrears are allocated in any applicable situation according to the
table below:
|
Situation
|
Minimum
delay time
(in
days)
|
|
Normal
|
0
|
|
Low
Risk
|
32
|
|
Medium
Risk
|
91
|
|
High
Risk
|
181
|
|
Irrecoverable
|
More
than 1 year
|
2.
|
To
the above must be added the refinancing arrears, and according to this the
situation in which the refinanced client must be placed is
determined:
|
Days
of delay at the time of refinancing
|
Situation
at the time of refinancing
|
Number
of cancelled installments of the refinanced debt
|
Situation
considering installment cancellations
|
|||
400
|
Irrecoverable
|
6
|
Medium
Risk
|
Situation
at the time of incurring arrears
|
Minimum
time of delay (days)
|
New
delay (refinanced debt) (days)
|
Delay
at end of month (days)
|
New
situation
|
||||
Medium
Risk
|
91
|
95
|
186
(91+95)
|
High
Risk
|
2)
|
Procedure
for constituting provisions above the minimum ones established by the
regulations for a portfolio in normal
situation.
|
§
|
To
register the allowances for the performing loans portfolio (globally),
according to the minimum established in the regulations in force (1%). The
purpose of constituting a minimum hedge is to make it possible to maintain
a permanent monitoring over the behavior of the consumer portfolio and
similar ones, in order to apply the necessary corrective
actions.
|
§
|
To
establish allowance percentages greater than the minimum established for
the portfolio in Category 4 (High Risk) within the consumer and
consumer-assimilated portfolio. The allowance to be applied is 50% for
debts with preferred “B” guarantee and 100% for debts without
guarantee.
|
1.
|
“Normal”
if there is no doubt that the borrower can meet all of its financial
obligations.
|
3.
|
“Problem”
if the borrower has problems in meeting its ordinary financial
obligations.
|
4.
|
“High
Risk of Insolvency” if the borrower is highly unlikely to meet its
financial obligations.
|
5.
|
“Irrecoverable”
if it is clear, at the time of the classification, that the borrower will
not meet its financial obligations to the classifying
bank.
|
6.
|
“Irrecoverable
for Technical Decision” if such borrower meets the same criteria as
described above for consumer
borrowers.
|
Loan
Loss Provision Required
|
||||||||||||
With
Preferred
“A”
Guarantees
|
With
Preferred
“B”
Guarantees
|
Without
Preferred
“A”
or
Preferred
“B”
Guarantees
|
||||||||||
Normal
|
1 | % | 1 | % | 1 | % | ||||||
Low
risk / Special tracking - under observation (2)
|
1 | % | 3 | % | 5 | % | ||||||
Special
tracking - under negotiation or with refinancing agreements (2)
|
1 | % | 6 | % | 12 | % | ||||||
Medium
risk / Problem
|
1 | % | 12 | % | 25 | % | ||||||
High
risk / High risk of insolvency
|
1 | % | 25 | % (3) | 50 | % (3) | ||||||
Irrecoverable
|
1 | % | 50 | % | 100 | % | ||||||
Irrecoverable
for technical decision
|
1 | % | 100 | % (1) | 100 | % (1) | ||||||
Additional
loans (4)
|
1 | % | 1 | % | 1 | % |
(1)
|
The
classification of a debtor under this category will require a loan loss
provision of 100% of any financings, such as rollovers, extensions and
express or implied waits, that may be granted after 90 days have elapsed
since the day following the announcement by the Central Bank of the data
base that includes the debtor. The presence of preferred guarantees does
not affect this obligation.
|
(2)
|
The
entity has not yet classified its debtors in the “Special tracking -under
negotiation or with refinancing agreements”
category.
|
(3)
|
Please
take into account that for the Consumer and Consumer-Assimilated
Portfolio, the allowances to be applied are 50% for debts with Preferred
“B” guarantee and 100% for debts without
guarantee.
|
(4)
|
Extensions
of credit that do not surpass the result of applying the percentages
indicated below over the balance of the existing debt on the day prior to
the extension of the additional
credit:
|
Irrecoverable
|
10 | % | ||
Difficult
recovery/High risk of insolvency
|
20 | % | ||
Deficient
servicing/Problem
|
30 | % | ||
Inadequate
servicing/Potential risk
|
40 | % |
§
|
Any
time the Central Bank modifies the definition of its borrower
classifications;
|
§
|
Any
time another bank downgrades a borrower whose loan standings are greater
than 10% of the total loans outstanding in the Argentine financial
system;
|
§
|
Any
time a credit rating agency downgrades by more than one category the
rating assigned to bonds issued by such
borrower;
|
§
|
If
the Central Bank requires it as a result of an inspection;
and
|
§
|
In
case of discrepancy by more than one level between the rating given by the
financial entity and those granted by at least another two financial
entities or trusts in categories below that assigned by it, and whose
credits as a whole represent at least 20% and are below 40% of the total
amount informed by all creditors, as per the latest information available
at the Debtors Department of the financial
system”.
|
Fiscal
Years Ended December 31,
|
||||||||||||||||||||||||
2008
|
%
|
2007
|
%
|
2006
|
%
|
|||||||||||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||||||||||||||
Loan
Portfolio
|
||||||||||||||||||||||||
Categories
|
||||||||||||||||||||||||
Normal
|
12,527,583 | 98.61 | % | 11,482,063 | 99.08 | % | 9,573,812 | 98.68 | % | |||||||||||||||
Inadequate
servicing and potential risk
|
65,798 | 0.52 | % | 43,901 | 0.38 | % | 47,684 | 0.49 | % | |||||||||||||||
Deficient
servicing and with problem
|
36,340 | 0.29 | % | 16,817 | 0.15 | % | 13,273 | 0.14 | % | |||||||||||||||
Difficult
recovery and high risk of insolvency
|
67,812 | 0.52 | % | 26,694 | 0.24 | % | 29,733 | 0.31 | % | |||||||||||||||
Irrecoverable
|
5,820 | 0.05 | % | 18,207 | 0.16 | % | 36,041 | 0.37 | % | |||||||||||||||
Irrecoverable
for technical decision
|
727 | 0.01 | % | 1,260 | 0.01 | % | 827 | 0.01 | % | |||||||||||||||
Total
|
12,704,080 | 100.00 | % | 11,588,942 | 100.00 | % | 9,701,370 | 100.00 | % |
§
|
5%
reduction in the percentage of cancellation determined for the different
categories (1 to 5), in order to reclassify a debtor to a higher
rating.
|
§
|
Private
or Judicial Arrangements: 20% cancellation is required (previously 30%)
for a debtor to be moved to Special tracking – under observation
situation.
|
§
|
Modification
in the conditions for preferred “A” guarantees – Credit Securities (checks
/ promissory notes/invoices).
|
§
|
Flexibility
of percentages for the granting of “additional
credit”.
|
§
|
Incorporated
point 2.2.7 of the Allocations Annex, according to which the situation of
a borrower who has made a refinancing with capital reduction is determined
as per the difference between net debt allocations and the amount of the
said reduction.
|
§
|
Communication
“A” 4683 incorporated the possibility for borrowers of the Consumption and
Consumption Assimilable Portfolio to be allocated a provision percentage
higher than the minimum established for each situation without having to
be automatically reclassified to the next category. BBVA Banco Francés has
not yet made use of this possibility admitted by the regulations in
force.
|
Fiscal
Years Ended December 31,
|
||||||||||||||||||||||||||||||||||||||||
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||||||||||||||||||||||||||||
Total
|
%
|
Total
|
%
|
Total
|
%
|
Total
|
%
|
Total
|
%
|
|||||||||||||||||||||||||||||||
(in
thousands of pesos, except percentages) (1)
|
||||||||||||||||||||||||||||||||||||||||
Normal
(Consumer)
|
4,358,063 | 97.19 | % | 3,332,574 | 98.29 | % | 2,086,773 | 98.06 | % | 1,442,324 | 98.09 | % | 936,401 | 96.61 | % | |||||||||||||||||||||||||
Normal
(Commercial)
|
8,169,520 | 99.39 | % | 8,149,489 | 99.40 | % | 7,487,039 | 98.85 | % | 7,047,617 | 97.94 | % | 8,254,276 | 97.08 | % | |||||||||||||||||||||||||
12,527,583 | 98.61 | % | 11,482,063 | 99.08 | % | 9,573,812 | 98.69 | % | 8,489,941 | 97.96 | % | 9,190,677 | 97.04 | % | ||||||||||||||||||||||||||
Inadequate
servicing (Consumer)
|
55,071 | 1.23 | % | 26,168 | 0.77 | % | 20,138 | 0.95 | % | 8,518 | 0.58 | % | 7,576 | 0.78 | % | |||||||||||||||||||||||||
Special
tracking (Commercial)
|
10,727 | 0.13 | % | 17,733 | 0.22 | % | 27,546 | 0.36 | % | 74,519 | 1.04 | % | 168,115 | 1.98 | % | |||||||||||||||||||||||||
65,798 | 0.52 | % | 43,901 | 0.38 | % | 47,684 | 0.49 | % | 83,037 | 0.96 | % | 175,691 | 1.85 | % | ||||||||||||||||||||||||||
Deficient
servicing (Consumer)
|
33,008 | 0.74 | % | 12,027 | 0.35 | % | 8,061 | 0.38 | % | 5,040 | 0.34 | % | 11,115 | 1.15 | % | |||||||||||||||||||||||||
Problem
(Commercial)
|
3,332 | 0.04 | % | 4,790 | 0.06 | % | 5,212 | 0.07 | % | 6,789 | 0.09 | % | 41,003 | 0.48 | % | |||||||||||||||||||||||||
36,340 | 0.29 | % | 16,817 | 0.15 | % | 13,273 | 0.14 | % | 11,829 | 0.14 | % | 52,118 | 0.55 | % | ||||||||||||||||||||||||||
Difficult
recovery (Consumer)
|
35,076 | 0.78 | % | 837 | 0.02 | % | 6,357 | 0.30 | % | 6,395 | 0.43 | % | 4,351 | 0.45 | % | |||||||||||||||||||||||||
High
risk of insolvency (Commercial)
|
32,736 | 0.40 | % | 25,857 | 0.31 | % | 23,376 | 0.31 | % | 61,765 | 0.86 | % | 17,614 | 0.21 | % | |||||||||||||||||||||||||
67,812 | 0.53 | % | 26,694 | 0.24 | % | 29,733 | 0.31 | % | 68,160 | 0.79 | % | 21,965 | 0.23 | % | ||||||||||||||||||||||||||
Irrecoverable
(Consumer)
|
2,362 | 0.05 | % | 17,689 | 0.52 | % | 6,158 | 0.29 | % | 8,007 | 0.55 | % | 9,696 | 1.00 | % | |||||||||||||||||||||||||
Irrecoverable
(Commercial)
|
3,458 | 0.03 | % | 518 | 0.01 | % | 29,883 | 0.39 | % | 5,355 | 0.07 | % | 21,225 | 0.25 | % | |||||||||||||||||||||||||
5,820 | 0.05 | % | 18,207 | 0.16 | % | 36,041 | 0.37 | % | 13,362 | 0.15 | % | 30,921 | 0.33 | % | ||||||||||||||||||||||||||
Irrecoverable
for technical decision (Consumer)
|
480 | 0.01 | % | 1,260 | 0.05 | % | 827 | 0.04 | % | 121 | 0.01 | % | 132 | 0.01 | % | |||||||||||||||||||||||||
Irrecoverable
for technical decision (Commercial)
|
247 | 0.01 | % | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
727 | 0.01 | % | 1,260 | 0.01 | % | 827 | 0.01 | % | 121 | — | 132 | — | ||||||||||||||||||||||||||||
Total
consumer loans
|
4,484,060 | 100.00 | % | 3,390,555 | 100.00 | % | 2,128,314 | 100.00 | % | 1,470,405 | 100.00 | % | 969,271 | 100.00 | % | |||||||||||||||||||||||||
Total
commercial loans
|
8,220,020 | 100.00 | % | 8,198,387 | 100.00 | % | 7,573,056 | 100.00 | % | 7,196,045 | 100.00 | % | 8,502,233 | 100.00 | % | |||||||||||||||||||||||||
Total
|
12,704,080 | 100.00 | % | 11,588,942 | 100.00 | % | 9,701,370 | 100.00 | % | 8,666,450 | 100.00 | % | 9,471,504 | 100.00 | % |
(1)
|
Percentages
for each category are of total consumer, commercial or total loans, as the
context requires.
|
Fiscal
Years Ended December 31,
|
||||||||||||||||||||
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||||||||
(in
thousands of pesos)
|
||||||||||||||||||||
Non-performing
loans (1)
|
110,699 | 62,978 | 79,874 | 93,472 | 105,136 | |||||||||||||||
Total
|
110,699 | 62,978 | 79,874 | 93,472 | 105,136 | |||||||||||||||
With
preferred guarantees
|
10,408 | 3,900 | 3,777 | 7,008 | 16,179 | |||||||||||||||
Unsecured
|
100,291 | 59,078 | 76,097 | 86,464 | 88,957 | |||||||||||||||
Total
|
110,699 | 62,978 | 79,874 | 93,472 | 105,136 |
(1)
|
Non-performing
loans includes all loans to borrowers classified as “Medim Risk”,
“Problem”, “High Risk”, “High Risk of Insolvency”, “Irrecoverable” and
“Irrecoverable for Technical Decision” under the Central Bank loan
classification system. Non-performing loans also include all loans
contractually past due 90 days loans or more. At December 31, 2008, 2007,
2006, 2005 and 2004 non-performing loans include Ps.93,573, Ps.57,439
thousand, Ps.74,848 thousand, Ps.81,965 thousand and Ps.91,819 thousand
respectively, of non-accrual
loans.
|
Fiscal
Years Ended December 31,
|
||||||||||||||||||||||||||||||||||||||||
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||||||||||||||||||||||||||||
Total
|
%
|
Total
|
%
|
Total
|
%
|
Total
|
%
|
Total
|
%
|
|||||||||||||||||||||||||||||||
(in
thousands of pesos, except percentages) (1)
|
||||||||||||||||||||||||||||||||||||||||
Agricultural
and livestock
|
156 | 0.14 | % | 20 | 0.03 | % | 412 | 0.52 | % | 20 | 0.02 | % | 15 | 0.01 | % | |||||||||||||||||||||||||
Beverage
|
— | — | — | — | 5 | 0.01 | % | 1 | — | — | — | |||||||||||||||||||||||||||||
Construction
|
1,980 | 1.79 | % | 774 | 1.23 | % | 436 | 0.55 | % | 1,778 | 1.90 | % | 2,506 | 2.38 | % | |||||||||||||||||||||||||
Consumer
|
34,780 | 31.42 | % | 12,264 | 19.47 | % | 6,339 | 7.94 | % | 14,423 | 15.43 | % | 6,957 | 6.62 | % | |||||||||||||||||||||||||
Electrical
machinery
|
— | — | 1 | — | 2 | — | — | — | 5 | — | ||||||||||||||||||||||||||||||
Foodstuff
|
35 | 0.03 | % | 26 | 0.04 | % | 6 | 0.01 | % | 1 | — | 1 | — | |||||||||||||||||||||||||||
Industrial
metals
|
1 | — | 5 | 0.01 | % | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Leather
and fur products
|
2 | — | — | — | — | — | — | — | 1 | — | ||||||||||||||||||||||||||||||
Mining
products
|
— | — | 1 | — | — | — | — | — | 6 | 0.01 | % | |||||||||||||||||||||||||||||
Oil
and carbon
|
— | — | — | — | — | — | 221 | 0.24 | % | — | — | |||||||||||||||||||||||||||||
Others
|
54,024 | 48.80 | % | 39,637 | 62.94 | % | 67,205 | 84.12 | % | 61,268 | 65.54 | % | 87,930 | 83.63 | % | |||||||||||||||||||||||||
Other
manufacturing
|
— | — | — | — | — | — | — | — | 7,671 | 7.30 | % | |||||||||||||||||||||||||||||
Printer,
publishers and related industries
|
— | — | — | — | 1 | — | — | — | 1 | — | ||||||||||||||||||||||||||||||
Rubber
products
|
— | — | 4 | 0.01 | % | — | — | — | — | 1 | — | |||||||||||||||||||||||||||||
Retail
trade
|
13,294 | 12.01 | % | 7,526 | 11.95 | % | 3,711 | 4.65 | % | 13,142 | 14.06 | % | 6 | 0.01 | % | |||||||||||||||||||||||||
Services
|
37 | 0.03 | % | 23 | 0.04 | % | 19 | 0.02 | % | — | — | 14 | 0.01 | % | ||||||||||||||||||||||||||
Textile
|
9 | 0.01 | % | 1 | — | 1 | — | — | — | — | — | |||||||||||||||||||||||||||||
Transportation
material
|
4 | — | — | — | — | — | 1 | — | — | — | ||||||||||||||||||||||||||||||
Wholesale
trade
|
6,377 | 5.77 | % | 2,696 | 4.29 | % | 1,737 | 2.18 | % | 2,614 | 2.81 | % | 22 | 0.03 | % | |||||||||||||||||||||||||
Wood
products and cork
|
— | — | — | — | — | — | 3 | — | — | — | ||||||||||||||||||||||||||||||
Total
|
110,699 | 100.00 | % | 62,978 | 100.00 | % | 79,874 | 100.00 | % | 93,472 | 100.00 | % | 105,136 | 100.00 | % |
Fiscal
Years Ended December 31,
|
||||||||||||||||||||
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||||||||||
Balance
at the beginning of the year
|
198,728 | 167,097 | 184,885 | 202,693 | 459,573 | |||||||||||||||
Provisions
for loan losses
|
38,124 | 61,985 | 69,799 | 114,220 | 62,509 | |||||||||||||||
Charge-offs
(1)
|
(40,363 | ) | (30,354 | ) | (87,587 | ) | (132,028 | ) | (319,389 | ) | ||||||||||
Advances
|
(1,767 | ) | (10,311 | ) | (3,513 | ) | (18,136 | ) | (10,545 | ) | ||||||||||
Consumer
|
(14,658 | ) | — | (4,543 | ) | (39,081 | ) | (30,182 | ) | |||||||||||
Notes
discounted and purchased
|
(4,499 | ) | (8,239 | ) | (8,711 | ) | (17,418 | ) | (159 | ) | ||||||||||
Other
|
(19,439 | ) | (11,804 | ) | (70,820 | ) | (57,393 | ) | (278,503 | ) | ||||||||||
Balance
at the end of year
|
196,489 | 198,728 | 167,097 | 184,885 | 202,693 | |||||||||||||||
Net
charge-off / average loans
|
0.34 | % | 0.29 | % | 0.97 | % | 1.49 | % | 3.63 | % |
(1)
|
Charge-offs
are not concentrated in any particular economic activity. Our management
estimates that of the Ps.40.4 million charged-off in the fiscal year ended
December 31, 2008, Ps.18.6 million, or 46.06% were related to corporate
borrowers and Ps.21.8 million, or 53.94% were related to individual
consumers. Of the Ps.30.6 million charged-off in the fiscal year ended
December 31, 2007, Ps.21.0 million, or 69.04% were related to corporate
borrowers and Ps.9.4 million, or 30.96% were related to individual
consumers. Of the Ps.87.6 million charged-off in the fiscal year ended
December 31, 2006, Ps.69.1 million, or 78.90% were related to corporate
borrowers and Ps.18.5 million, or 21.10% were related to individual
consumers. Of the Ps.132.0 million charged-off in the fiscal year ended
December 31, 2005, Ps.111.7 million, or 84.64% were related to corporate
borrowers and Ps.20.3 million, or 15.36% were related to individual
consumers. Of the Ps.319.4 million charged-off in the fiscal year ended
December 31, 2004, Ps.281.4 million, or 88.09% were related to corporate
borrowers and Ps.38.0 million, or 11.91% were related to individual
consumers. Charge-offs include reversal and
applications.
|
Fiscal
Years Ended December 31,
|
||||||||||||||||||||||||||||||||||||||||
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||||||||||||||||||||||||||||
Total
|
%
|
Total
|
%
|
Total
|
%
|
Total
|
%
|
Total
|
%
|
|||||||||||||||||||||||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||||||||||||||||||||||||||||||
Advances
|
17,131 | 12.74 | % | 20,158 | 13.06 | % | 19,947 | 19.02 | % | 11,550 | 11.24 | % | 14,707 | 2.90 | % | |||||||||||||||||||||||||
Notes
discounted and purchased
|
15,194 | 11.19 | % | 22,295 | 14.09 | % | 12,359 | 10.27 | % | 7,393 | 8.60 | % | 3,478 | 2.67 | % | |||||||||||||||||||||||||
Secured
with mortgages
|
10,975 | 8.53 | % | 12,877 | 7.60 | % | 8,081 | 5.96 | % | 7,082 | 6.05 | % | 13,310 | 4.27 | % | |||||||||||||||||||||||||
Chattel
mortgage
|
7,015 | 4.61 | % | 3,648 | 2.49 | % | 1,403 | 0.13 | % | 760 | 0.93 | % | 474 | 0.28 | % | |||||||||||||||||||||||||
Consumers
loans
|
75,869 | 27.90 | % | 51,387 | 21.07 | % | 23,296 | 15.73 | % | 14,664 | 11.49 | % | 10,343 | 4.64 | % | |||||||||||||||||||||||||
Financial
Loans
|
8,909 | 4.98 | % | 9,819 | 4.98 | % | 5,188 | 5.33 | % | 1,691 | 2.10 | % | 5 | 1.79 | % | |||||||||||||||||||||||||
Other
loans to governmental sector
|
— | 8.67 | % | — | 10.45 | % | — | 14.18 | % | 49,324 | 38.67 | % | 80,729 | 73.14 | % | |||||||||||||||||||||||||
Other
|
61,396 | 21.38 | % | 78,544 | 26.26 | % | 96,823 | 29.38 | % | 92,421 | 20.92 | % | 79,647 | 10.31 | % | |||||||||||||||||||||||||
Total
|
196,489 | 100.00 | % | 198,728 | 100.00 | % | 167,097 | 100.00 | % | 184,885 | 100.00 | % | 202,693 | 100.00 | % |
Fiscal
Year ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
(in
thousands of pesos)
|
||||||||||||
Deposits
in domestic Bank’s offices
|
||||||||||||
Non-interest-bearing
demand deposits
|
||||||||||||
Average
|
||||||||||||
Pesos
|
2,932,651 | 2,547,283 | 2,094,140 | |||||||||
Dollars
|
57,159 | 43,736 | 24,537 | |||||||||
Total
|
2,989,810 | 2,591,019 | 2,118,677 | |||||||||
Saving
accounts
|
||||||||||||
Average
|
||||||||||||
Pesos
|
3,242,023 | 2,790,939 | 2,342,303 | |||||||||
Dollars
|
1,190,844 | 917,098 | 772,591 | |||||||||
Total
|
4,432,867 | 3,708,037 | 3,114,894 | |||||||||
Average
real rate
|
||||||||||||
Pesos
|
(8.02 | )% | (12.52 | )% | (6.52 | )% | ||||||
Dollars
|
0.65 | % | (10.32 | )% | (5.45 | )% | ||||||
Total
|
(5.69 | )% | (11.98 | )% | (6.26 | )% | ||||||
Time
deposits
|
||||||||||||
Average
|
||||||||||||
Pesos
|
5,732,426 | 5,897,520 | 5,112,665 | |||||||||
Dollars
|
1,359,527 | 1,062,937 | 737,069 | |||||||||
Total
|
7,091,953 | 6,960,457 | 5,849,734 | |||||||||
Average
real rate
|
||||||||||||
Pesos
|
3.02 | % | (4.92 | )% | 1.08 | % | ||||||
Dollars
|
3.11 | % | (8.43 | )% | (3.97 | )% | ||||||
Total
|
3.03 | % | (5.46 | )% | 0.44 | % |
Maturing,
|
||||||||||||||||||||
Total
|
Within
3
months
|
After
3 but
within
6 months
|
After
6 but
within
12
months
|
After
12 months
|
||||||||||||||||
(in
thousands of pesos)
|
||||||||||||||||||||
Checking
|
4,696,325 | 4,696,325 | — | — | — | |||||||||||||||
Savings
|
4,664,305 | 4,664,305 | — | — | — | |||||||||||||||
Time
deposits
|
7,346,613 | 6,895,625 | 365,279 | 83,637 | 2,072 | |||||||||||||||
Investment
accounts
|
10,322 | 6,661 | 3,625 | 36 | — | |||||||||||||||
Other
|
361,638 | 324,683 | 20,522 | 16,433 | — | |||||||||||||||
Total
|
17,079,203 | 16,587,599 | 389,426 | 100,106 | 2,072 |
Maturing,
|
||||||||||||||||||||
Total
|
Within
3
months
|
After
3 but
within
6 months
|
After
6 but
within
12
months
|
After
12 months
|
||||||||||||||||
(in
thousands of pesos)
|
||||||||||||||||||||
Domestic
offices
|
4,771,463 | 4,480,201 | 230,759 | 59,632 | 871 | |||||||||||||||
Total
|
4,771,463 | 4,480,201 | 230,759 | 59,632 | 871 |
At
December 31,
|
||||||||||||||||||||||||
2008
|
2007
|
2006
|
||||||||||||||||||||||
Amount
|
Average
Annualized
Rate
|
Amount
|
Average
Annualized
Rate
|
Amount
|
Average
Annualized
Rate
|
|||||||||||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||||||||||||||
Total
amount outstanding at the end of the reported period
|
3,003,372 | — | 1,656,030 | — | 1,318,273 | — | ||||||||||||||||||
Average
during year
|
2,110,645 | 5.0 | % | 1,429,466 | 5.5 | % | 1,142,756 | 6.7 | % | |||||||||||||||
Maximum
month-end balance
|
3,003,372 | — | 1,656,030 | — | 1,318,273 | — |
§
|
Except
by express provision to the contrary established by-law, the Central Bank
will not be affected by any regulations of a general character which may
have been or shall have been enacted with reference to Public
Administration bodies and which may introduce limitations to the authority
or powers of the Central Bank as set forth in its own
Charter.
|
§
|
The
Central Bank is empowered to make temporary advances to the Government up
to an amount equivalent to 12% of the monetary base, which for this
purpose includes amounts constituted by the monetary circulation plus the
sight deposits of the financial institutions with the Central Bank, in
current account or in special accounts. It may also grant advances up to
an amount not exceeding 10% of the cash resources obtained by the
Government in the past twelve months. At no time may the amount granted as
temporary advances, excluding those exclusively allocated to the payment
of obligations with the multilateral credit institutions, exceed 12% of
the monetary base. All advances so granted must be reimbursed within the
next twelve months; should any of these advances remain unpaid after its
due date, it will not be possible to use these powers again until all owed
amounts shall have been
reimbursed.
|
§
|
The
provisions of Decree No. 1131/01 are abrogated, and the validity of
Articles 44, 46 paragraph (c), 47 and 48 of the Central Bank Charter,
regarding the powers and authority of the Superintendency of Financial and
Foreign Exchange Entities, is reestablished in terms of the text approved
as Article 1 of Law No.
24,144.
|
§
|
A
temporary regulation was introduced, applicable until December 2005,
authorizing the Central Bank to: (i) provide assistance to financial
institutions with liquidity and/or solvency problems, including those
undergoing restructuring by resolution of the Central Bank in terms of
Article 35 bis of the Financial Institutions Law; and (ii) authorize the
integration of the reserve requirements for financial institutions with
financial assets other than cash, in the form of sight deposits with the
Central Bank or in foreign currency accounts as per Art. 28 of the Central
Bank Charter.
|
§
|
Decree
No. 1599/05, modified the Law No. 23,928: by allowing reserves exceeding
100% of the monetary base may be allocated to the payment of obligations
assumed with international financial
entities.
|
§
|
Financial
statements and other quarterly and annual reports reflecting in
consolidated form the transactions of the financial entity, its local and
foreign branches, and its local and foreign “significant subsidiaries” (as
defined below); and
|
§
|
Financial
statements and other quarterly and annual reports reflecting in
consolidated form the transactions of the financial entity, its local and
foreign branches, its local and foreign “significant subsidiaries” (as
defined below), or entities or companies in the country and abroad where
the financial entity has possession or control over more than 12.5% of the
shares entitled to vote, in those cases determined by the Superintendency
of Financial and Foreign Exchange Institutions, and those companies not
subject to consolidated supervision which the financial entity may have
chosen to include with the prior approval of the Superintendency of
Financial and Foreign Exchange
Institutions.
|
§
|
A
“subsidiary” of a local financial entity is any local or foreign financial
entity or company in any of the following
positions:
|
(1)
|
The
local financial entity has direct or indirect control of more than 50% of
the total votes of any instrument with voting rights in such entity or
company,
|
(2)
|
The
local financial entity has direct or indirect control as to determining by
itself the composition of most of the management bodies of such entity or
company,
|
(3)
|
A
majority of the directors of the local financial entity is also a majority
of the directors of such entity or
company.
|
§
|
A
“significant subsidiary” is any
subsidiary:
|
(1)
|
Whose
assets, possible commitments and other transactions recorded in memorandum
accounts represent 10% or more of the Computable Net Worth of the local
financial entity and its subsidiaries abroad;
or
|
(2)
|
Whose
results of operations corresponding to the current fiscal year represent
10% or more of the results of operations for the current fiscal year of
the local financial entity and its subsidiaries
abroad.
|
(i)
|
Cash
held in treasury, in custody at other banks, in transit and in value
carriers. This item cannot exceed 67% calculated on total items included.
Temporarily, as from December 2008, the calculation includes 100% of
them;
|
|
(ii)
|
Current
accounts in Pesos, special guarantee accounts and accounts in connection
with the attention of pension benefits, of the financial entities with the
Central Bank;
|
|
(iii)
|
Minimum
cash accounts of the financial entities with the Central Bank, denominated
in U.S. dollars or other foreign currencies;
|
|
(iv)
|
Minimum
cash account of public securities and instruments issued by the Central
Bank, at market value and of the same type; and
|
|
(v)
|
Current
accounts of non banking financial
institutions.
|
Type of
Account
|
From
Sep-2008
|
From
Nov-2008
|
||||||
Current
accounts (except deposits and other demand obligations in pesos, whose
return exceeds 15% BADLAR rate of private financial institutions’
average) and
sight accounts open in Credit Unions (1)
|
19 | % | 19 | % | ||||
Other
demand deposits and basic account (2)
|
||||||||
In
pesos
|
19 | % | 19 | % | ||||
In
foreign currency
|
30 | % | 20 | % | ||||
Savings
accounts
|
||||||||
In
pesos
|
19 | % | 19 | % | ||||
In
foreign currency
|
30 | % | 20 | % | ||||
Unused
balances from current account advances effected
|
19 | % | 19 | % | ||||
Current
accounts of financial institutions (3)
|
100 | % | 100 | % | ||||
Fixed-term
deposits, bonds for acceptances (including liabilities for the sale or
assignment of credits to subjects other than financial institutions),
reverse repurchases, bonds and stock-exchange reverse swaps, investments
at constant term, with advanced cancellation or renewal option (4):
|
||||||||
In
pesos
|
||||||||
Up
to 29 days
|
14 | % | 14 | % | ||||
From
30 to 59 days
|
11 | % | 11 | % | ||||
From
60 to 89 days
|
7 | % | 7 | % | ||||
From
90 to 179 days
|
2 | % | 2 | % | ||||
From
180 to 365 days
|
0 | % | 0 | % | ||||
In
foreign currency
|
||||||||
Up
to 29 days
|
35 | % | 20 | % | ||||
From
30 to 59 days
|
28 | % | 15 | % | ||||
From
60 to 89 days
|
20 | % | 10 | % | ||||
From
90 to 179 days
|
10 | % | 5 | % | ||||
From
180 to 365 days
|
6 | % | 2 | % | ||||
More
than 365 days
|
0 | % | 0 | % | ||||
Bonds
for foreign financial lines
|
0 | % | 0 | % | ||||
Debt
securities (including corporate bonds)
|
||||||||
a)
Debt issued as of January 1, 2002, including those from restructured
bonds, as per their residual term:
|
||||||||
In
pesos
|
||||||||
Up
to 29 days
|
14 | % | 14 | % | ||||
From
30 to 59
|
11 | % | 11 | % | ||||
From
60 to 89 days
|
7 | % | 7 | % | ||||
From
90 to 179 days
|
2 | % | 2 | % | ||||
From
180 to 365 days
|
0 | % | 0 | % | ||||
In
foreign currency
|
||||||||
Up
to 29 days
|
35 | % | 20 | % | ||||
From
30 to 59
|
28 | % | 15 | % | ||||
From
60 to 89 days
|
20 | % | 10 | % | ||||
From
90 to 179 days
|
10 | % | 5 | % | ||||
From
180 to 365 days
|
6 | % | 2 | % | ||||
More
than 365 days
|
0 | % | 0 | % | ||||
b)
Others
|
0 | % | 0 | % | ||||
Bonds
with the Trust Fund for Assistance to Financial and Insurance
Institutions
|
0 | % | 0 | % | ||||
Sight
and term deposits made by judicial order with funds originated in legal
actions currently under course and their immobilized
balances
|
||||||||
In
pesos
|
10 | % | 10 | % | ||||
In
foreign currency
|
15 | % | 10 | % | ||||
Mutual
Funds deposits (except mutual funds sight deposits made accordingly CNV
rules)
|
||||||||
In
pesos
|
19 | % | 19 | % | ||||
In
foreign currency
|
40 | % | 20 | % | ||||
Special
deposits related to funds revenues from abroad – Decree No.
616/05
|
100 | % | 100 | % | ||||
Deposits
and other demand obligations in pesos, whose return exceeds 15% BADLAR
rate of private financial institutions’ average (5)
|
100 | % | 100 | % | ||||
Term
investments instrumented by nominative non-transferable certificates in
pesos corresponding to public sector security holders, entitled to
exercise the prepayment option within a term not greater than 30 days
after constitution thereof. (6)
|
16 | % | 16 | % |
(1)
|
In
accordance with the Communication “A”
4712.
|
(2)
|
In
accordance with the Communication “A”
4809.
|
(3)
|
Computable
for payment of their Minimum Required
Reserves.
|
(4)
|
Except,
term deposits made by judicial order with funds originated in legal
actions currently under course and their immobilized balances, mutual
funds term deposits, special deposits related to funds revenues from
abroad (Decree No. 616/05) and term investments instrumented by nominative
non-transferable certificates in
pesos.
|
(5)
|
In
accordance with the Communication “A”
4670.
|
§
|
100%
reserve for any defect in the application of resources in foreign currency
for the month in respect to which the calculation of the minimum cash
requirement is made. See “Information on the
Company—The Argentine Banking System and its Regulatory Framework—Lending
Capacity Provided by Deposits in Foreign
Currency”.
|
(1)
|
Prefinancing
and financing of exports, carried out directly or through agents,
consignees or other proxies acting for the account and order of the owner
of the goods. It also comprises operations to finance suppliers of
services to be directly exported. This comprises those operations for the
purpose of financing working capital and/or the acquisition of objects
related to the production of goods to be exported, provided the flow of
income in foreign currency deriving from such exports is sufficient to
settle such transactions.
|
(2)
|
Financing
transactions granted to goods, producers or processors, provided they have
firm sale contracts for the goods to be produced for an exporter, with
prices fixed or to be fixed in a foreign currency (regardless of the
currency in which the transaction is settled) and involving fungible goods
with a regular and customary quotation in foreign currency which is widely
known and easily accessed by the public in local or international markets.
In all cases of term purchase and sale agreements for a price to be fixed,
such price must be in direct relation with the price of such products in
local markets. It also comprises transactions to finance suppliers of
services directly used in the process of exporting
goods.
|
(3)
|
Financing
transactions for producers of goods to be exported, either in the same
condition or as part of other goods, by third-party purchasers, provided
they have total pledges or guarantees in foreign currency from such third
parties.
|
(4)
|
Financing
of investment projects, working capital and/or the acquisition of any kind
of goods, including temporary importation of commodities, which may
increase or be related to the production of goods for exportation. Even
though income from exporter companies does not totally derive from sales
abroad, financing may only be allocated if the income flow deriving from
exportation is sufficient. It comprises those transactions where financing
is granted via the Bank’s participation in “syndicated loans”, be they
with local or foreign entities (in force as from September 23, 2005 as per
Central Bank Communication “A”
4423).
|
(5)
|
Financing
to clients from the commercial portfolio and of a commercial nature who
receive treatment for their consumption or housing credits –under the
provisions of the “Debtors’ Classification” regulations–destined for the
importation of capital goods (“BK” according to the Common Nomenclator for
the MERCOSUR attached as Annex I to Decree No. 690/02 and other
complementary provisions) which will result in an increase in the
production of goods destined for domestic consumption. In order to grant
such financing, the financial entities must verify that their clients have
sufficient paying capacity considering at least two scenarios which
contemplate significant exchange rate variations within a term of up to
one year and which, in either case, exceed the latest estimate available
resulting from the “Market Expectations Survey” published by this
institution (in force since December 9, 2005 under Central Bank
Communication “A” 4453).
|
(6)
|
Debt
securities or certificates of participation in financial trusts -including
other collection rights specifically acknowledged in the trust agreement
to be constituted within the framework “IDB Loan Nº 1192/OC-AR“- whose
assets under management are loans originated by financial entities under
the terms described in points (1) through (3)
above.
|
(7)
|
Debt
securities or certificates of participation in financial trusts, issued in
foreign currency and with public offer authorized by the CNV, whose assets
under management are documents guaranteed by mutual guarantee companies or
by provincial funds created for the same purpose, and admitted by the
Central Bank, acquired by the trustee for the purpose of financing
transactions under the terms and conditions described in points (1)
through (3) above.
|
(8)
|
Financing
transactions for purposes other than those mentioned in point 6 above,
included in the credit program to which the IDB loan makes reference as
mentioned in the fourth point above, without exceeding 10% of the lending
capacity.
|
(9)
|
Interfinancing
loans (any interfinancing loans granted with such resources must be
identified).
|
(10)
|
Central
Bank bills in U.S. dollars acquired by bidding or secondary negotiation
(such application must be as a minimum equivalent to the amount of
deposits in U.S. dollars payable in pesos) ceased to be effective on July
29, 2005 according to Communication “A” 4395 of the Banco
Central.
|
§
|
Contractual
cash flow of assets and
liabilities,
|
§
|
Current
cash flow to renew assets and
liabilities,
|
§
|
Cash
flow designed to prevent illiquidity of the bank,
and
|
§
|
Cash
flow designed to anticipate illiquidity in the financial system, both with
and without compliance with minimum
requirements.
|
§
|
The
concentration of assets and liabilities in particular
clients;
|
§
|
The
general economic situation, probable trends and the impact on available
credit; and
|
§
|
The
ability to obtain funds through the sale of public debt instruments and/or
liquid assets.
|
§
|
Make
loans in pesos and foreign
currency,
|
§
|
Receive
deposits in pesos and foreign
currency,
|
§
|
Issue
guarantees,
|
§
|
Underwrite,
place and broker equity and debt securities in the over-the-counter
market, subject to the prior approval of the
CNV,
|
§
|
Conduct
transactions in foreign
currency,
|
§
|
Act
as fiduciary, and
|
§
|
Issue
credit cards.
|
§
|
The
prohibition of a bank from pledging its
shares,
|
§
|
Restriction
on incurring any liens upon its properties without prior approval from the
Central Bank, and
|
§
|
Limitations
on transactions with directors or officers, including any company or
person related to such directors or officers, on terms more favorable than
those normally provided to clients. See “Information on the
Company—The Argentine Banking System and its Regulatory Framework—Lending
and Investment Limits—Related Persons” below in this
section.
|
§
|
Definitions
for Tier I (core) capital (“Tier I Capital”) and Tier II (supplemental)
capital (“Tier II Capital”),
|
§
|
A
system for weighing assets and off-balance sheet items according to credit
risk (this weighted total referred to as the “Basel Risk Weighted
Assets”), and
|
§
|
As
of the end of 1992, a requirement that banks engaged in international
operations maintain
|
(1)
|
Tier
I Capital at least equal to 4.0% of Basel Risk Weighted Assets;
and
|
(2)
|
“Total
Capital”, equal to Tier I Capital plus up to an equal amount of Tier II
Capital, at least equal to 8.0% of Basel Risk Weighted
Assets.
|
§
|
“Basic
Net Worth”, which includes:
|
(1)
|
Capital
stock,
|
(2)
|
Capital
adjustments,
|
(3)
|
Reserves
and irrevocable capital
contributions,
|
(4)
|
Unappropriated
earnings,
|
(5)
|
Representative
instruments of debt, and
|
(6)
|
Third
parties’ participations for those corporations subject to a supervision
system on a consolidated
basis;
|
§
|
Minimum
basic capital, and
|
§
|
Minimum
capital required for credit risk, which includes the minimum capital
requirement for market risk, plus the minimum capital requirement for
interest rate risk.
|
(a)
|
10%
of the value of our fixed or illiquid
assets;
|
(b)
|
8%
of the value of certain categories of financial or liquid assets, net of
certain allowances and reserves, multiplied by a coefficient based on the
perceived risk of such assets;
and
|
(c)
|
8%
of certain assets of the non-financial public sector as accounted for in
investment accounts or under special valuation criteria determined by the
Central Bank.
|
§
|
Cash,
gold, public securities subject to minimum capital requirements for market
risk, and debt instruments issued by the Central Bank were assigned a 0%
risk value;
|
§
|
Correspondents’
accounts and other accounts at sight with banks of the country and abroad
rated as “investment grade” and bonds issued by governments of member
countries of the Organization of Economic Cooperation and Development
(“OECD”), which are internationally rated “AA” or higher, were assigned a
20% risk value;
|
§
|
Debt
instruments issued by Argentine provinces, municipalities or other public
sector agencies, which are not expressly guaranteed by the national
government were assigned a 100% risk
value;
|
§
|
Loans
to the non-financial private sector with preferred guarantees in cash,
gold or bonds on fixed-term deposit certificates issued by the creditor
entity itself and with automatic reimbursements for export transactions
corresponding to multilateral and bilateral foreign trade agreements were
assigned a 0% risk value;
|
§
|
Loans
to the non-financial private sector with preferred guarantees granted by
mutual guarantee companies registered with the Central Bank, export credit
insurance policies and documentary credits in use were assigned a 50% risk
value;
|
§
|
Purchase
money, home mortgage loans and automobile-backed loans were assigned a 50%
risk value, provided they do not exceed 75% of their appraisal
value;
|
§
|
The
amount of a loan exceeding 75% of their appraisal value and most unsecured
loans and debt instruments as well as holdings of listed stock were
assigned a 100% risk value;
and
|
§
|
Loans
to the non-financial public sector not guaranteed by the national
government were assigned a 100% risk
value.
|
Period
|
ALFA1
|
|
January
/ December 2004
|
0.05
|
|
January
/ December 2005
|
0.15
|
|
January
/ December 2006
|
0.30
|
|
January
/ December 2007
|
0.50
|
|
January
/ December 2008
|
0.75
|
|
From
January 2009
|
1.00
|
§
|
Debt
securities issued by the National Government and instruments of monetary
regulation of the BCRA (including the holding available for sale), except
for those held in investment accounts, public securities acquired since
June 1, 2007 by primary subscription denominated in pesos, and quotas in
common investment funds that invest in those securities; provided that,
such securities and/or holdings are usually listed on a national
securities exchange; and
|
§
|
Shares
of capital stock of Argentine companies included in the Argentine stock
market index (or “Merval Index”) and quotas in common investment funds
that invest in those shares.
|
§
|
Debt
securities (i.e., positions held in debt securities issued by foreign
companies, sovereign securities issued by foreign governments and quotas
in common investment funds; provided that, such securities and/or holdings
are usually listed on a national securities exchange);
and
|
§
|
Shares
(i.e., positions held in shares of capital stock of foreign companies,
quotas in common investment funds; provided that, such securities,
holdings and/or indexes are usually listed on a national securities
exchange). If any of the assets mentioned in this clause are listed in
different stock markets in diverse foreign currencies, the listing price
and foreign currency of the most representative stock market (in terms of
the volume of transactions in the relevant asset) will be taken into
consideration for purposes of these new capital
requirements.
|
§
|
Securities
and derivative instruments that are already subject to minimum capital
requirements for market risk;
|
§
|
Holdings
in foreign currency not subject to minimum capital for market risk as they
are below the minimum applicable
limits;
|
§
|
Banker’s
acceptances;
|
§
|
Assets
affected, covered by derivatives agreements made with foreign banks with
international risk rate “A” or above, granted by international rating
agencies accepted by the Central
Bank;
|
§
|
Subordinated
debt that is included in the calculation of Complementary Net Worth, and
other assets deductible from minimum capital integration;
and
|
§
|
Operations
for spot of securities and foreign
currency.
|
Period
|
ALFA2
|
|
January
/ December 2004
|
0.20
|
|
January
/ December 2005
|
0.40
|
|
January
/ December 2006
|
0.70
|
|
From
January 2007
|
1.00
|
§
|
Temporary
limitation on the amount of deposits a bank may
accept;
|
§
|
Institutional
restrictions as per expansion capacity and dividends distribution in
cash;
|
§
|
Revocation
of the license of a bank to conduct foreign exchange transactions, and in
some extreme cases; and
|
§
|
Revocation
of the license of a bank to
operate.
|
At December 31,
2008
|
||||
(in
millions of Pesos, except percentages)
|
||||
Basel
Accord
|
||||
Total
capital
|
1,982.0 | |||
Risk-weighted
asset
|
10,292.2 | |||
Ratio
of total capital to risk-weighted assets (1)
|
19.3 | % | ||
Required
capital
|
823.4 | |||
Excess
capital
|
1,158.6 | |||
Central Bank’s
Rules (2)
|
||||
Total
capital
|
2,277.4 | |||
Risk
and Fixed weighted assets
|
15,956.1 | |||
Ratio
of total capital to risk-weighted assets (3)
|
14.3 | % | ||
Required
capital (4)
|
1,425.4 | |||
Excess
capital
|
852.0 |
(1)
|
Under
the risk-based capital requirements of the Basel Accord, the Bank would be
required to maintain a minimum ratio of total capital to risk-weighted
assets of 8%.
|
(2)
|
Calculated
on a consolidated basis in accordance with Central Bank
requirements.
|
(3)
|
Under
the risk-based capital requirements of the Central Bank, we are required
to maintain a minimum ratio of total capital to risk and fixed weighted
assets of 10% and 8% (depending upon the nature of the asset) by
application of an alpha correction factor equal to 0.05 over financing to
the national public sector granted up to May 31,
2003.
|
(4)
|
The
Bank must maintain a surplus of minimum paid-in capital amounting to at
least Ps.41.8 million,
equivalent to 0.25% of the amount of values under custody for securities
representing investments
from pension funds, as well as in connection with its function as
registrar of mortgage-backed bonds, invested in national public securities
and other destinations authorized by the BCRA and guaranteed in favor of
the said
Entity.
|
(i)
|
Market
value; or
|
(ii)
|
Cost
value increased according to their internal rate of return. Whenever the
market value is lower than the book value, such accrual will be allocated
for compensation in a balancing account, until the book value is equal to
the market value. Such balancing account will be released and charged to
income to the extent that its balance exceeds the positive difference
between market value and book value. The balance of the referred balancing
account must be settled as at June 30, 2009; therefore as from
July 1, 2009 such holdings must be assessed at market
value.
|
§
|
National
public securities comprised within the margin for purchase and sale or
brokerage transactions admitted in case of excesses over the limits to
credit risk division due to financing for the non-financial public sector
that must be charged to this special system. The released instruments will
continue to be taken into account in calculating the excess over the
limits to credit risk division due to financing for the non-financial
sector originated in operations in existence prior to March 31, 2003,
whose margin may not exceed 25% of the RPC corresponding to the last day
of the pertinent preceding
month.
|
§
|
National
public securities acquired by the financial entities through primary
underwritings from June 1, 2007, denominated in pesos at terms of 5 years
or more, at a fixed rate without CER adjustment, chargeable investment
accounts at the net book value of the relevant portion corresponding to
the amount of the balancing
account.
|
§
|
BCRA’s
monetary regulation instruments comprised in investment accounts, so that
they may be totally or partially charged to the special investment account
system.
|
§
|
Sale;
|
§
|
collection
of the corresponding amortization services and/or capital
revenue;
|
§
|
whenever
the volatility published by this Institution ceases to be available, in
which case they must be registered as holdings without quotation;
or
|
§
|
whenever
it is decided to use the “Special Investment Account” or “Investment
Account” valuation method.
|
CAMEL
Quality Rating System
|
§
|
A
debt issue in a country which must be a member of the OECD and at the same
time have an “AAA” rating in respect of its sovereign
debt;
|
§
|
An
issue of capital stock approved by the relevant local authorities and
according to which the shares could be freely traded either in such local
market or in the market of a member nation of the OECD with an “AAA”
rating in respect of its sovereign
debt;
|
§
|
A
debt issue to an Argentine financial entity which complies with the
alternative procedure described in (a) above;
or
|
§
|
A
transaction with a foreign bank with a minimum credit rating of “A”, by
which the Argentine entity would receive deposits or take loans from such
foreign bank. The purpose of such requirement was to have the Argentine
financial institutions exposed to scrutiny and analysis by third parties
considered by the Central Bank to be rating demanding in matters that have
to do with credit analysis and quality control. The need to respond to the
expectations of such third parties at the same time created for the
Central Bank an additional source of quality control over the Argentine
banking system. While this requirement remained in force the Bank complied
with it at all times.
|
§
|
The
creation of a registry of
auditors;
|
§
|
The
implementation of strict accounting procedures to be observed by
auditors;
|
§
|
The
payment of a guarantee of compliance by such auditors so as to induce them
to fully comply with the procedures;
and
|
§
|
The
creation of a Central Bank division in charge of verifying the observance
of the established regulations by the external
auditors.
|
§
|
15%
of the equivalent in dollars of their Bank’s Computable Net Worth
(Responsabilidad Patrimonial Computable or “RPC”), as registered at the
close of the month that is two months prior to the relevant month plus the
amount that results from multiplying 5% of the total amount transacted
with clients in the purchase and sale of foreign currencies in the month
that is two months prior to the relevant month, and 2% of the total
deposits at sight and at term locally constituted and payable in foreign
bank notes (excluding deposits under custody), as registered at the close
of the calendar month that is two months prior to the relevant
month.
|
§
|
And
a minimum equivalent to U.S.$8,000,000 (for the banks), these minimum
limits may be increased according to the number of establishments devoted
to foreign exchange transactions and by operations with holdings in
foreign currencies other than the dollar or the Euro and other permitted
transactions. BBVA Banco Francés maintains the limit indicated in the
point above mentioned.
|
§
|
Gold
and foreign currency resources available in the
country;
|
§
|
Gold
and foreign currency resources available
abroad;
|
§
|
Foreign
public and private
securities;
|
§
|
Cash
or future foreign-exchange purchases pending
settlement;
|
§
|
Cash
or future public and private security purchases pending
settlement;
|
§
|
Cash
or future foreign-exchange sales pending
settlement;
|
§
|
Cash
or future public and private security sales pending settlement;
and
|
§
|
Foreign-exchange
holdings in the form of deposits and investments at any term in banks from
abroad and all kinds of liquid investments
abroad.
|
§
|
Negative
global net position (liabilities exceeding assets), 30% of the Computable
Net Worth until December 31, 2006. As from January 1, 2007 and according
to the provisions of Communications “A” 4577 and 4598, 15% of the
Computable Net Worth liability, with the possibility of an additional 15%
to the extent that the entity at the same time has recorded: a) medium and
long term financings in pesos to non-financial private sector under
certain conditions for an amount
equivalent
|
|
to
the increase of said limit; and b) an increase in the minimum capital
requirement equivalent to the increase of the general limit of the global
negative net position in foreign
currency.
|
§
|
Positive
global net position (assets exceeding liabilities), the least of the
following:
|
(1)
|
30%
of the Computable Net Worth.
|
(2)
|
Own
liquid resources.
|
§
|
Shares
of local companies.
|
§
|
Assets
appropriated as guarantee.
|
§
|
Various
credits (including the net balance favorable to Entity corresponding to
the Minimum Presumed Income Tax. Undeductible of Basic Net
Worth).
|
§
|
Property
for own use.
|
§
|
Various
property items.
|
§
|
Organization
and development expenses.
|
§
|
Goodwill.
|
§
|
Financing
transactions for related
clients.
|
§
|
Any
individual or entity controlling a bank, controlled by a bank or
affiliated with a bank, as defined by the Central
Bank;
|
§
|
Any
entity that both controls the bank and has common directors to the extent
such directors, voting together, will constitute a simple majority of the
boards of directors of the bank and such entity;
or
|
§
|
In
certain exceptional cases, any individual or entity whom the Central Bank
has determined to be in a position to adversely affect the financial
condition of the bank.
|
§
|
Holding
or controlling, directly or indirectly, 25% of the voting stock of the
controlled person;
|
§
|
Having
held 50% or more of the voting stock of the controlled person at the time
of the last election of that entity’s board of
directors;
|
§
|
Any
type of equity holding which creates the ability to vote or direct the
vote so as to prevail on any issue considered at the controlled person’s
general shareholders’ meeting or meeting of the board of directors;
or
|
§
|
When
a person is determined by the Board of Directors of the Central Bank to be
exercising any influence, directly or indirectly, on the management or
policies of the bank.
|
§
|
Local
financial institutions whose transactions are subject to consolidation by
lender or borrower in terms of regulations on consolidated supervision and
which are rated CAMEL 1 or 2:
|
(1)
|
100%
when the entity receiving the loan is rated
1.
|
(2)
|
If
the receiving entity is rated 2, 20% without limitations and an additional
80% to be used if the term for the loans and other credit facilities not
exceed 180 days.
|
§
|
Local
financial institution not included in the above definition:
10%.
|
§
|
Local
companies consolidated by the financial entity in terms of the
consolidated supervision regulations issued by the Central Bank and whose
only object is one of the activities defined as “complementary services of
the financial activity” that are mentioned
below:
|
(1)
|
Stock-exchange
or over-the-counter agent in stock exchanges or
markets.
|
(2)
|
Issuance
of credit or debit or similar
cards.
|
(3)
|
Financial
assistance through lease transactions in capital goods, durable goods or
real property acquired for such purpose or in connection with credits from
sales.
|
(4)
|
Temporary
acquisition of shareholdings in companies to facilitate their development
in order to sell such holdings afterwards. The granting of financing or
management and planning advice to such
companies.
|
(a)
|
If
the controlling financial entity is rated 1:
100%.
|
(b)
|
If
the rating is 2, 10% without limitations, plus an additional 90% to be
used if the term of the loans and other credit facilities does not exceed
180 days.
|
§
|
All
other domestic companies not complying with the provisions mentioned in
the preceding point:
10%.
|
§
|
Foreign
financial institutions rated as “Investment Grade”: 10%; all others, 5%
for non-guaranteed operations and up to 10% for guaranteed operations,
without exceeding 10% as a
whole.
|
§
|
All
other transactions: 5% without guarantee and up to 10% with guarantees,
without exceeding 10% as a
whole.
|
§
|
Foreign
financial institutions which are subsidiaries of the domestic institution
subject to oversight on a consolidated basis (Communication “A” 2829 of
the Central Bank);
|
§
|
Foreign
banks controlling domestic financial institutions or their branches or
subsidiaries abroad (Communication “A” 2829 of the Central
Bank);
|
§
|
When
the Related Person is a company that has been fully consolidated by the
bank and is exclusively involved in certain activities that are
complementary to financial intermediation, the foregoing traditional
restrictions with regard to investments and loans apply;
and
|
§
|
When
the Related Person is a company expressly referred to as an exempted
entity under Article 28 of Law No. 21,726 and only in respect of equity
investments, the bank is limited to lending to such Related Person and
only in accordance with the previous traditional
restrictions.
|
§
|
National
Government;
|
§
|
Provincial
Governments;
|
§
|
City
of Buenos Aires;
|
§
|
Municipal
Governments; and
|
§
|
Central
administration, ministries, departments and their decentralized and
autonomous entities and other official
bodies.
|
§
|
In
order to develop their activities, they should not require resources from
the state budget –be it the national, municipal, provincial or belonging
to the Autonomous City of Buenos Aires– for such concepts as transfers,
capital contributions –excepting those corresponding to their
incorporation – or reimbursable financial assistance- destined for
covering expenses and/or investments made in the course of their normal
and customary businesses, with the only exception of those which may have
been contemplated in the 2001 and 2003
budgets;
|
§
|
Technical
and professional independence of their managerial bodies for implementing
corporate policies;
|
§
|
To
trade their goods and/or services at market
prices;
|
§
|
To
possess fixed assets; the use of which in the activity is not subject to
any condition from their shareholders;
and
|
§
|
No
distribution of dividends among their
shareholders.
|
§
|
Their
creation must have been ordered by a national
law;
|
§
|
They
must create a stock corporation according to the rules of Chapter II,
Sections V and VI of the Law of Corporations Number 19,550 (stock
corporations and corporations with majority state
participation);
|
§
|
They
must have majority National State participation, be it direct or indirect,
according to the provisions of the said
Law;
|
§
|
They
must be for the specific purpose of developing activities in the power
supply sector; and
|
§
|
They
must be subject to internal and external control by the National Public
Sector in terms of the Financial Administration Law and the National
Public Sector’s Control System –Law No.
24,156-.
|
§
|
Transactions
of the national public sector: 50%, this limit include loans granted to
governments from other jurisdictions guaranteed by their participation in
the federal tax collection
system;
|
§
|
Total
of transactions granted to each provincial jurisdiction and the City of
Buenos Aires (excluding those comprised in the previous paragraph which
must be guaranteed by the collection of local taxes or by pledge or
implemented under leasing agreements: 10%. This limit includes financing
operations granted to municipal governments in the respective jurisdiction
and guaranteed by their participation in the collection of provincial
taxes;
|
§
|
Total
of transactions with each municipal jurisdiction, which must be guaranteed
by the collection of local taxes or by pledge, or implemented under
leasing agreements: 3%. Total financing granted to the above-mentioned
jurisdictions (excluding those mentioned in the previous paragraph) : 15%;
and
|
§
|
Total
of transactions comprised in the first three points above:
75%.
|
§
|
Evidences
a cash reserve deficiency,
|
§
|
Has
not satisfied certain technical
standards,
|
§
|
Has
not maintained minimum net worth standards,
or
|
§
|
Is
deemed by the Central Bank to have impaired solvency or
liquidity;
|
§
|
Deposits
made by other financial institutions, including certificates of deposit
acquired by secondary
trading;
|
§
|
Deposits
made by persons directly or indirectly related to the financial
institution;
|
§
|
Deposits
acquired by means of offering incentives, including deposits under the El
Libretón program;
|
§
|
Certificates
of deposit of securities, acceptances or
guarantees;
|
§
|
Those
deposits made after July 1, 1995 and to September 17, 1998, at a rate
exceeding by two percentage points per annum or more than paid by the
Banco Nación for similar terms and, after such date, at a rate exceeding
by two percentage points per annum the rolling average for the last five
banking days of the deposit rates found by the survey performed by the
Central Bank; and
|
§
|
Certificates
of deposit transferable whose ownership has been acquired by way of
endorsement.
|
§
|
“A”
3358 of November 9, 2001 of the Central Bank, contributions percentage
increased to 0.03% effective as of the contribution due December
2001.
|
§
|
“A”
4206 of September 14, 2004 of the Central Bank, contributions percentage
decreased to 0.02% effective as of the contribution due September
2004.
|
§
|
“A”
4271 of December 30, 2004 of the Central Bank, contributions percentage
decreased to 0.015% effective as of the contribution due January
2005.
|
§
|
Increase
private sector loans focusing in the middle-market and retail
segments;
|
§
|
Increase
retail deposits, expanding current and savings accounts participation over
CDs;
|
§
|
Further
develop the transactional business as a source of fee
income;
|
§
|
Emphasize
service quality and increase cross-selling, through an effective promotion
and advertising campaign; and
|
§
|
Improve
our assets and liabilities structure (including the valuation adjustments
made in public sector assets, given the decrease in public sector assets’
market value and completing the amortization of legal
injunctions).
|
§
|
Valuation
Criteria
|
(1)
|
National Government
Secured loans
|
(2)
|
Effects caused by
court measures related to deposits (constitutional protection
actions)
|
(3)
|
Tax
Effects
|
(4)
|
Derivative financial
instruments
|
§
|
Aspects
related to disclosure of
information
|
(1)
|
Consolidar
A.F.J.P. S.A.: as of December 31, 2007, the intangible assets, whose book
value amounted to 8,745, were amortized in accordance with the standards
of the A.F.J.P.’s
Superintendence.
|
(2)
|
Consolidar
A.F.J.P. S.A., Consolidar Cía. de Seguros de Retiro S.A. and Consolidar
Cía. de Seguros de Vida S.A.: loans secured by the National Government -
Decree 1387/01 held by these subsidiaries amounting to 1,034,959 and
952,106 as of December 31, 2008 and 2007, were valued in accordance with
the regulations of the Superintendence of Pension Fund Administrators
(A.F.J.P) and the National Superintendence of
Insurance.
|
(3)
|
Consolidar
Cía. de Seguros de Retiro S.A.: the portfolio of Government securities in
investment accounts has been booked in accordance with the standards of
the National Superintendence of
Insurance.
|
(4)
|
Consolidar
Cía. de Seguros de Retiro S.A. and Consolidar Cía de Seguros de Vida S.A.:
a part of its portfolio of instruments issued by the BCRA has been
recorded in investment accounts, and they have been valued as per
Communication “A” 4698 of the BCRA. The net difference with the market
values as of December 31, 2008 and 2007 amounted to 7,011 (loss) and 117
(income), respectively.
|
(5)
|
The
items included under the captions Subsidiaries’ other assets and
Subsidiaries’ other liabilities were valued in accordance with the
regulations of the National Superintendence of
Insurance.
|
(6)
|
Consolidar
Cía de Seguros de Retiro S.A.: the Company included the balance from the
technical commitments incurred with the insured in the Other Liabilities
caption. The abovementioned caption includes 13,084 and 22,099 at December
31, 2008 and 2007, respectively, corresponding to the regularizing account
called “Unaccrued secured loans valuation difference” which, as
established by the National Superintendence of Insurance, will be settled
through subsequent accrual of the regularizing accounts of secured loans.
In accordance with professional accounting standards currently in force in
the City of Buenos Aires, such amount should have been recorded as a loss
for the year ended December 31,
2003.
|
(7)
|
The
commissions paid by PSA Finance Argentina Cía Financiera S.A. to dealers
for granting financing to companies and to the public in general in
connection with purchases and sales of automobiles, which in accordance
with the rules established by the Argentine Central Bank are charged to
the Income Statement, should be accrued throughout the duration of the
loans generated by said dealers in accordance with currently applicable
professional accounting standards. Had this criterion been applied,
shareholders’ equity would have been increased by 5,720 and 3,115 at the
close of each fiscal year.
|
(8)
|
Upon
booking the effects of the interest rate swaps as of December 31, 2008 and
2007, Consolidar Cía de Seguros de Retiro S.A. abided by the rules
established by the National Superintendence of Insurance. Had the
currently applicable professional accounting standards been applied, the
shareholders’ equity in the Consolidated Financial Statements would have
been increased by 3,950 and 2,550 at the close of each fiscal
year.
|
Fiscal
Year Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
(in
thousands of pesos)
|
||||||||||||
Interest
on cash and due from banks
|
11,745 | 20,202 | 17,353 | |||||||||
Interest
on loans to the financial sector
|
187,728 | 146,833 | 91,875 | |||||||||
Interest
on overdraft
|
264,989 | 164,659 | 102,072 | |||||||||
Interest
on loans with privileged guarantees
|
162,553 | 79,353 | 52,260 | |||||||||
Interest
on credit card loans
|
107,461 | 55,026 | 30,485 | |||||||||
Interest
on other loans
|
886,606 | 640,477 | 543,662 | |||||||||
Net
income from government and private securities
|
— | 319,666 | 559,877 | |||||||||
Interest
from other receivables from financial transactions
|
20,175 | 23,757 | 35,314 | |||||||||
Indexation
by benchmark stabilization coefficient (CER)
|
199,209 | 210,342 | 354,566 | |||||||||
Other
|
438,638 | 243,897 | 148,940 | |||||||||
Total
|
2,279,104 | 1,904,212 | 1,936,404 |
December
31 2008
vs.
December
31 2007
Increase
(Decrease)
|
December
31 2007
vs.
December
31 2006
Increase
(Decrease)
|
|||||||
(in
thousands of pesos)
|
(in
thousands of pesos)
|
|||||||
Financial
Income due to changes in the volume of interest-earning
assets
|
217,088 | 373,986 | ||||||
Financial
Income due to changes in average nominal rates of interest-earning
assets
|
(205,066 | ) | (371,639 | ) | ||||
Financial
Income due to changes in the volume and average nominal rates of
interest-earning assets
|
(25,371 | ) | (74,056 | ) | ||||
Net
Change
|
(13,349 | ) | (71,709 | ) |
Fiscal
Year Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
(in
thousands of pesos)
|
||||||||||||
Interest
on checking accounts
|
28,083 | 23,180 | 29,913 | |||||||||
Interest
on savings deposits
|
8,713 | 6,598 | 4,811 | |||||||||
Interest
on time deposit (1)
|
724,771 | 492,716 | 307,084 | |||||||||
Interest
from other liabilities from financial transactions
|
28,486 | 26,627 | 37,650 | |||||||||
Indexation
by benchmark stabilization coefficient (CER)
|
7,212 | 49,230 | 121,321 | |||||||||
Net
income from government and private securities
|
288,141 | — | — | |||||||||
Net
income from options
|
100 | — | — | |||||||||
Other
|
116,175 | 81,780 | 67,566 | |||||||||
Total
|
1,201,681 | 680,131 | 568,345 |
(1)
|
Includes
interest on “CEDROS”.
|
December
31, 2008
vs.
December
31, 2007
Increase
|
December
31, 2007
vs.
December
31, 2006
Increase
|
|||||||
(in
thousands of pesos)
|
(in
thousands of pesos)
|
|||||||
Financial
Expense due to changes in the volume of interest-bearing
liabilities
|
54,431 | 82,555 | ||||||
Financial
Expense due to changes in average nominal rates of interest-bearing
liabilities
|
128,218 | 9,164 | ||||||
Financial
Expense due to changes in the volume and average nominal rates of
interest-bearing liabilities
|
11,875 | 1,070 | ||||||
Net
Change
|
194,524 | 92,789 |
December
31, 2008
vs.
December
31, 2007
Increase
(Decrease)
|
December
31, 2007
vs.
December
31, 2006
Increase
(Decrease)
|
|||||||
(in thousands of
pesos)
|
(in thousands of
pesos)
|
|||||||
Gross
Intermediation Margin due to changes in the volume of interest-earning
assets and interest-bearing liabilities
|
162,657 | 291,432 | ||||||
Gross
Intermediation Margin due to changes in average nominal rates of
interest-earning assets and interest-bearing liabilities
|
(333,284 | ) | (380,802 | ) | ||||
Gross
Intermediation Margin due to changes in the volume and average nominal
rates of interest-earning assets and interest-bearing
liabilities
|
(37,246 | ) | (75,126 | ) | ||||
Net
Change
|
(207,873 | ) | (164,496 | ) |
Fiscal
Year Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
(in
thousands of pesos)
|
||||||||||||
Service
charges on deposit accounts
|
301,470 | 231,149 | 175,121 | |||||||||
Credit
card operations
|
227,626 | 150,947 | 97,250 | |||||||||
Other
fees related to foreign trade
|
57,833 | 47,687 | 39,192 | |||||||||
Credit-related
fees
|
70,443 | 37,823 | 18,114 | |||||||||
Fund
management fees
|
228,408 | 486,066 | 401,107 | |||||||||
Capital
markets and securities activities
|
13,893 | 10,608 | 11,332 | |||||||||
Rental
of safety deposit boxes
|
23,354 | 17,400 | 14,038 | |||||||||
Fees
related to guarantees
|
1,195 | 797 | 1,093 | |||||||||
Insurance
agency
|
94,771 | 65,835 | 44,707 | |||||||||
Other
|
171,424 | 134,477 | 113,921 | |||||||||
Total
|
1,190,417 | 1,182,789 | 915,875 |
Fiscal
Year Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
(in
thousands of pesos)
|
||||||||||||
Personnel
expenses
|
707,198 | 545,408 | 452,919 | |||||||||
Fees
and external administrative services
|
59,268 | 37,145 | 17,492 | |||||||||
Taxes
|
63,235 | 52,119 | 46,937 | |||||||||
Utilities
|
28,995 | 24,977 | 21,216 | |||||||||
Depreciation
of Bank property and equipment
|
42,468 | 37,203 | 31,781 | |||||||||
Credit
card advertising and issuance expense
|
60,592 | 43,303 | 30,217 | |||||||||
Courier
transportation
|
21,942 | 15,579 | 10,631 | |||||||||
Advertising
and promotion (excluding credit card advertising)
|
65,396 | 60,600 | 38,918 | |||||||||
Maintenance
and repairs
|
53,718 | 38,553 | 30,712 | |||||||||
Business
travel and development
|
19,435 | 18,317 | 16,628 | |||||||||
Staff
welfare
|
37,836 | 43,075 | 32,094 | |||||||||
Amortization
of organization and development expenses
|
32,706 | 21,961 | 22,967 | |||||||||
Rentals
|
57,832 | 47,064 | 44,879 | |||||||||
Other
|
162,827 | 138,857 | 130,013 | |||||||||
Total
|
1,413,448 | 1,124,161 | 927,404 |
Fiscal
Year Ended December
31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||
Net
Income before income tax and minority interest
|
349,979 | 304,984 | 290,733 | |||||||||
Statutory
tax rate
|
35 | % | 35 | % | 35 | % | ||||||
Income
tax (at statutory rate)
|
122,493 | 106,744 | 101,757 | |||||||||
Deferred
tax
|
48,319 | (98,525 | ) | (8,050 | ) | |||||||
Tax-exempt
income
|
(27,359 | ) | (26,875 | ) | (27,763 | ) | ||||||
Allowances
on deferred tax assets
|
48,318 | 98,525 | 8,050 | |||||||||
Other
|
(223,040 | ) | (154,205 | ) | (145,674 | ) | ||||||
Income
tax (gain) / loss
|
(31,270 | ) | (74,336 | ) | (71,680 | ) | ||||||
(Allowances)
|
— | — | — | |||||||||
Income
tax (gain) / loss, net
|
(31,270 | ) | (74,336 | ) | (71,680 | ) | ||||||
Actual
income tax
|
31,270 | 74,336 | 71,680 | |||||||||
Deferred
income tax (1)
|
— | — | — |
(1)
|
Included
in Other Income and Income
Tax.
|
Remaining
Maturity or Earliest Repricing Intervals at December 31,
2008
|
||||||||||||||||||||||||
0-3
months
|
3
Months-
One
Year
|
1-5
Years
|
5-10
Years
|
Over
10 Years
|
Total
|
|||||||||||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||||||||||||||
Interest-earning
assets
|
||||||||||||||||||||||||
Interest
earning deposits in banks
|
3,248,698 | — | — | — | — | 3,248,698 | ||||||||||||||||||
Government
securities
|
3,984,980 | 1,456,598 | 377,961 | 278 | 2,196 | 5,822,013 | ||||||||||||||||||
Corporate
bonds
|
135,509 | 16 | 9,428 | — | — | 144,953 | ||||||||||||||||||
Loans
(1)
|
8,613,198 | 1,726,930 | 2,118,960 | 201,297 | 43,695 | 12,704,080 | ||||||||||||||||||
Total
|
15,982,385 | 3,183,544 | 2,506,349 | 201,575 | 45,891 | 21,919,744 | ||||||||||||||||||
Interest-bearing
liabilities
|
||||||||||||||||||||||||
Deposits
|
12,752,362 | 478,162 | 1,870 | — | — | 13,232,394 | ||||||||||||||||||
Due
to other banks
|
1,350,674 | 45,786 | 64,711 | 519 | — | 1,461,690 | ||||||||||||||||||
Total
|
14,103,036 | 523,948 | 66,581 | 519 | — | 14,694,084 | ||||||||||||||||||
Asset/liability
gap
|
1,879,349 | 2,659,596 | 2,439,768 | 201,056 | 45,891 | 7,225,660 | ||||||||||||||||||
Cumulative
sensitivity gap
|
1,879,349 | 4,538,945 | 6,978,713 | 7,179,769 | 7,225,660 | |||||||||||||||||||
Cumulative
sensitivity gap as a percentage of total interest-earning
assets
|
8.57 | % | 20.71 | % | 31.84 | % | 32.75 | % | 32.96 | % |
(1)
|
Loan
amounts are stated before deducting the allowance for loan losses.
Non-accrual loans are included with loans as interest-earning
assets.
|
Remaining
Maturity or Earliest Repricing Intervals at December 31,
2008
|
||||||||||||||||||||||||
0-3
months
|
3
Months-
One
Year
|
1-5
Years
|
5-10
Years
|
Over
10 Years
|
Total
|
|||||||||||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||||||||||||||
Interest-earning
assets:
|
||||||||||||||||||||||||
Interest
earning deposits in banks
|
1,359,847 | — | — | — | — | 1,359,847 | ||||||||||||||||||
Government
securities
|
3,936,925 | 1,263,817 | 28,196 | 278 | — | 5,229,216 | ||||||||||||||||||
Corporate
bonds
|
65,664 | — | — | — | — | 65,664 | ||||||||||||||||||
Loans
(1)
|
6,966,207 | 1,396,466 | 2,113,644 | 201,297 | 43,695 | 10,721,309 | ||||||||||||||||||
Total
|
12,328,643 | 2,660,283 | 2,141,840 | 201,575 | 43,695 | 17,376,036 | ||||||||||||||||||
Interest-bearing
liabilities:
|
||||||||||||||||||||||||
Deposits
|
9,543,025 | 250,426 | 1,627 | — | — | 9,795,078 | ||||||||||||||||||
Due
to other banks
|
493,490 | 45,625 | 64,711 | 519 | — | 604,345 | ||||||||||||||||||
Total
|
10,036,515 | 296,051 | 66,338 | 519 | — | 10,399,423 | ||||||||||||||||||
Asset/liability
gap
|
2,292,128 | 2,364,232 | 2,075,502 | 201,056 | 43,695 | 6,976,613 | ||||||||||||||||||
Cumulative
sensitivity gap
|
2,292,128 | 4,656,360 | 6,731,862 | 6,932,918 | 6,976,613 | |||||||||||||||||||
Cumulative
sensitivity gap as a percentage of total interest-earning
assets
|
13.19 | % | 26.80 | % | 38.74 | % | 39.90 | % | 40.15 | % |
(1)
|
Loan
amounts are stated before deducting the allowance for loan losses.
Non-accrual loans are included with loans as interest-earning
assets.
|
Remaining
Maturity or Earliest Reprising Intervals at December 31,
2008
|
||||||||||||||||||||||||
0-3
months
|
3
Months-
One
Year
|
1-5
Years
|
5-10
Years
|
Over
10 Years
|
Total
|
|||||||||||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||||||||||||||
Interest-earning
assets:
|
||||||||||||||||||||||||
Interest
earning deposits in banks
|
1,888,851 | — | — | — | — | 1,888,851 | ||||||||||||||||||
Government
securities
|
48,055 | 192,781 | 349,765 | — | 2,196 | 592,797 | ||||||||||||||||||
Corporate
bonds
|
69,845 | 16 | 9,428 | — | — | 79,289 | ||||||||||||||||||
Loans
(1)
|
1,646,991 | 330,464 | 5,316 | — | — | 1,982,771 | ||||||||||||||||||
Total
|
3,653,742 | 523,261 | 364,509 | — | 2,196 | 4,543,708 | ||||||||||||||||||
Interest-bearing
liabilities:
|
||||||||||||||||||||||||
Deposits
|
3,209,338 | 227,735 | 243 | — | — | 3,437,316 | ||||||||||||||||||
Due
to other banks
|
857,184 | 161 | — | — | — | 857,345 | ||||||||||||||||||
Total
|
4,066,522 | 227,896 | 243 | — | — | 4,294,661 | ||||||||||||||||||
Asset/liability
gap
|
(412,780 | ) | 295,365 | 364,266 | — | 2,196 | 249,047 | |||||||||||||||||
Cumulative
sensitivity gap
|
(412,780 | ) | (117,415 | ) | 246,851 | 246,851 | 249,047 | |||||||||||||||||
Cumulative
sensitivity gap as a percentage of total interest-earning
assets
|
(9.08 | )% | (2.58 | )% | 5.43 | % | 5.43 | % | 5.48 | % |
(1)
|
Loan
amounts are stated before deducting the allowance for loan losses. Non
accrual loans are included with loans as interest-earning
assets.
|
At
December 31,
|
||||||||||||
2008
(4)
|
2007
(4)
|
2006
(4)
|
||||||||||
(in
thousands of pesos, except ratios and percentages)
|
||||||||||||
Calculation
of excess capital (1)
|
||||||||||||
Allocated
to assets at risk
|
892,463 | 760,014 | 540,415 | |||||||||
Allocated
to Bank premises and equipment, intangible assets and equity investment
assets
|
86,167 | 94,852 | 116,944 | |||||||||
Interest
rate risk
|
158,065 | 174,544 | 98,833 | |||||||||
Incremental
minimum capital requirements originated in excesses in other
regulations
|
— | — | — | |||||||||
Public
sector and securities in investment account
|
236,321 | 145,882 | 99,227 | |||||||||
A-
Minimal exigency by adds up risks
|
1,373,016 | 1,175,292 | 855,419 | |||||||||
B-
Basic exigency for custody of titles of the AFJP and / or agent of record
of hypothecary letters
|
836,005 | 1,068,636 | 931,187 | |||||||||
Maximum
between A and B
|
1,373,016 | 1,175,292 | 931,187 | |||||||||
Market
risk
|
52,360 | 108,280 | 73,367 | |||||||||
Required
minimum capital under Central Bank rules
|
1,425,376 | 1,283,572 | 1,004,554 | |||||||||
Basic
net worth
|
1,946,516 | 1,864,585 | 1,774,548 | |||||||||
Complementary
net worth
|
180,655 | 235,272 | 190,866 | |||||||||
Deductions
|
(97,956 | ) | (102,835 | ) | (92,186 | ) | ||||||
Minority
interest
|
248,139 | 236,018 | 216,480 | |||||||||
Total
capital under Central Bank rules
|
2,277,354 | 2,233,040 | 2,089,708 | |||||||||
Excess
capital
|
851,978 | 949,468 | 1,085,154 | |||||||||
Selected
capital and liquidity ratios
|
||||||||||||
Average
stockholders’ equity as a percentage of average total assets (1)(2)
|
8.64 | % | 9.82 | % | 10.79 | % | ||||||
Total
liabilities as a multiple of total stockholders’ equity
|
11.44 | x | 9.71 | x | 8.64 | x | ||||||
Cash
and due from banks as a percentage of total deposits
|
24.84 | % | 21.12 | % | 20.46 | % | ||||||
Liquid
assets as a percentage of total deposits (1)(3)
|
55.49 | % | 55.63 | % | 55.42 | % | ||||||
Loans
as a percentage of total assets
|
48.43 | % | 51.72 | % | 50.62 | % |
(1)
|
See
“Information
on the Company—The
Argentine Banking System and its Regulatory Framework —Capital Adequacy
Requirements” for a discussion of the Central Bank’s capital
requirements.
|
(2)
|
Average
stockholder’s equity and average total assets computed as the average of
period-beginning and period-ending
balances.
|
(3)
|
At
December 31, 2008, 2007 and 2006, “Liquid Assets” includes cash and due
from banks and government and private
securities.
|
(4)
|
The
Bank must maintain a surplus of minimum paid-in
capital amounting to at least Ps.41,800,
Ps.53,432 and Ps.46,559 as
at December 31, 2008,
2007 and 2006 respectively,
equivalent to 0.25% of the amount of values under custody for securities
representing investments from pension funds, as well as in connection with
its function as registrar of mortgage-backed
bonds, invested in national public securities and other destinations
authorized by the BCRA and guaranteed in favor of the said
Entity.
|
Payments
due by Period
(in
thousands of Pesos)
|
||||||||||||||||||||
Total
|
Less
than
1
year
|
1-3
years
|
4-5
years
|
After
5
years
|
||||||||||||||||
Contractual
obligations
|
||||||||||||||||||||
Long-term
debt
|
1,541,289 | 1,439,508 | 89,096 | 12,166 | 519 | |||||||||||||||
Operating
leases
|
137,845 | 25,465 | 41,603 | 31,842 | 38,935 | |||||||||||||||
Total
|
1,679,134 | 1,464,973 | 130,699 | 44,008 | 39,454 | |||||||||||||||
Commercial
commitments
|
||||||||||||||||||||
Lines
of credit
|
74,294 | 74,294 | — | — | — | |||||||||||||||
Foreign
trade acceptances
|
253,867 | 253,867 | — | — | — | |||||||||||||||
Guarantees
|
317,343 | 150,355 | 10,469 | 288 | 156,231 | |||||||||||||||
Standby
repurchase obligations
|
1,593,864 | 1,593,864 | — | — | — | |||||||||||||||
Total
|
2,239,368 | 2,072,380 | 10,469 | 288 | 156,231 |
Name
|
Current
Term
Ends
|
Position
as of
December
31, 2004
|
Date
of Birth
|
Present
principal occupations outside BBVA Banco Francés
and
business experience
|
||||
Jorge
Carlos Bledel
(*)
|
December
2008
|
Chairman
|
04/19/1954
|
Present
principal occupations:
Director, Rombo
Compañía Financiera
S.A. (“Rombo
Compañía
Financiera”); Vice
Chairman,
Francés Valores
Sociedad de Bolsa S.A. (“Francés Valores”); Chairman, Inversora Otar S.A.
(“Inversora
Otar”);
Business
experience: Director,
Credilogros Compañía
Financiera S.A. (“Credilogros”); Chairman, Consolidar AFJP S.A.
(“Consolidar
AFJP”);
Chairman, Consolidar
ART S.A. (“Consolidar
ART”); Chairman,
Consolidar Compañía
de Seguros de Vida S.A. (“Consolidar Seguros de
Vida”); Chairman,
Consolidar Compañía
de Seguros de Retiro S.A. (“Consolidar Seguros de
Retiro”); Chairman,
BBVA Consolidar Seguros S.A. (“BBVA Seguros”) and Chairman, Consolidar Salud
S.A. (“Consolidar
Salud”). Credit
Manager, Banco del Interior y Buenos Aires; Business Manager,
Corporación
Metropolitana de Finanzas; Financial Manager, BBVA Banco
Francés; Wholesale
Banking Director, BBVA Banco Francés and Retail Banking Director,
BBVA Banco Francés.
Mr. Bledel joined the staff of
BBVA Banco Francés in
1986 and was first elected to the Board in March 2003.
|
||||
José
Manuel Tamayo Pérez
(**)
|
December
2009
|
Vice-chairman
|
05/22/1950
|
Present
principal occupations:
Director, Consolidar AFJP;
Director, Consolidar Seguros de Retiro.
Business
experience: Retail
Banking Director, BBVA S.A.; Retail Banking Director, BBVA Banco
Francés S.A.;
Marketing Director España and Portugal, BBVA
S.A.
Mr. Tamayo Pérez was elected Director in April
2007.
|
||||
Marcelo
Gustavo Canestri
(***)
|
December
2009
|
Director
|
04/23/1953
|
Present
principal occupations:
Director, Francés Valores; Director, Inversora
Otar.
Business
experience: Corporate
Assistant Manager,
BBVA Banco Francés;
Wholesale Banking Assistant Manager, BBVA Banco Francés; Asset Management Director, BBVA
Banco Francés and
Financial Director, BBVA Banco Francés; Director, Consolidar Seguros de
Retiro; Director, Consolidar AFJP; Director, Consolidar ART; Director, Consolidar Seguros
de Vida; Director, BBVA Seguros.
Mr. Canestri joined the Bank in
1973 and was first elected to the Board in September
2001.
|
||||
Javier
José D’Ornellas
(****)
|
December
2009
|
Director
|
06/07/1940
|
Present
principal occupations
Director, Asociación Argentina Cultural Inglesa (AACI);
Chairman, Rentar S.A.
Business
experience:
Director, Inversiones Robert
S.A.;
Chairman, Rentar S.A.; Chairman,
VASA S.A.; Chairman, MASISA Argentina S.A.; Chairman, Vidrios
Lirquén S.A.;
Chairman, Santa
Lucía Cristal SACIF;
Director, Concord S.A. Colombia and Director, Santa Lucia Cristais
Brasil.
Mr. D’Ornellas was elected Director in
1998.
|
Name
|
Current
Term
Ends
|
Position
as of
December
31, 2004
|
Date
of Birth
|
Present
principal occupations outside BBVA Banco Francés
and
business experience
|
||||
Oscar
Miguel Castro
(****)
|
December
2008
|
Director
|
12/04/1945
|
Present
principal occupations:
(Alternate) Statutory auditor,
Transportadora Gas del Sur.
Business
experience: Statutory
auditor, Orígenes
AFJP, Orígenes
Retiro, Internacional Vida, Santander Sociedad de Bolsa, Banco
Supervielle, Banco Rio, Banco Société Générale S.A., Axa Inversora, BBVA
Banco
Francés. Alternate statutory auditor: Banco
Comafi, BNP Asset Management. Executive Committee of Financial Services
member: Arthur Andersen Worldwide. Partner in charge of Financial Services
Division: Arthur Andersen Latin America and Argentina. International Partner: Arthur
Andersen.
Mr. Castro was elected Director in
2003.
|
||||
Jesús
Gonzalvo Lozano
(**)
|
December
2010
|
Director
|
04/19/1952
|
Present principal
occupations: Director, BBVA Banco
Francés
S.A.
Business
experience: Regional
Director, Cataluña, Banco Bilbao Vizcaya Argentaria
S.A.; Risks Director, Banco Exterior.
|
||||
Luis
Bernardo Juango Fitero
(**)
|
December
2010
|
Director
|
08/24/1949
|
Present principal
occupations: Director, BBVA Banco
Francés
S.A.
Business
experience: President, Banco Bilbao
Vizcaya Argentaria
S.A. Colombia; Regional Director, BBVA
S.A.
|
(*)
|
According
to the provisions of General Resolution No. 368 (New Text 2001), as
amended by General Resolution No. 400 of the CNV, Mr. Jorge Carlos Bledel
does not qualify as independent director, as he is an employee of the
Bank.
|
(**)
|
Mr.
José Manuel Tamayo Pérez, Jesús Gonzalvo Lozano and Luis Bernardo Juango
Fitero do not qualify as independent directors according to the
independence criteria set forth by General Resolution No. 368 (New Text
2001), as amended by General Resolution No. 400 of the CNV, as they are
former employees of BBVA S.A.
|
(***)
|
According
to General Resolution No. 368 (New Text 2001), as amended by General
Resolution No. 400 of the CNV, Mr. Marcelo Gustavo Canestri does not
qualify as independent director as he is a former employee of the Bank and
he has not yet complied with the period required by the rule (three years
from his resignation).
|
(****)
|
Mr.
D’Ornellas and Mr. Castro qualify as independent directors according to
the independence criteria established by General Resolution No. 368 (New
Text 2001), as amended by General Resolution No. 400 of the
CNV.
|
Name
|
First
Appointed
|
Current
Position
|
Date
of Birth
|
Background
and Work Experience
|
||||
Jorge
Carlos Bledel
|
2001
|
Executive
Chairman
|
04/19/1954
|
Director,
Rombo Compañía Financiera; Vice Chairman, Francés Valores; Chairman,
Inversora Otar S.A.; Chairman, Consolidar AFJP; Chairman, Consolidar ART;
Chairman, Consolidar Seguros de Vida; Chairman, Consolidar Seguros de
Retiro; Chairman, BBVA Seguros and Chairman Consolidar Salud.
Mr.
Bledel joined BBVA Banco Francés in 1986.
|
||||
José
Carlos López Álvarez
|
2007
|
Director,
Presidency Areas
|
03/15/1959
|
Assistant
Executive Director, Regulations Compliance, Coordination, Legal Services,
Accounting and Auditing, Economic Studies Services, Risks, General
Subdirector and Financial Director of Banco del Comercio (Spain) and Vice
Chairman, Risk Management Director and Financial Director of BBVA
Brasil.
Mr.
López Alvarez joined the Bank in 2003.
|
||||
Oscar
Hugo Fantacone
|
2002
|
Director,
Network Distribution
|
03/27/1951
|
Director,
Credilogros; Director, Rombo Compañía Financiera; Regular Director,
Banelco S.A.; Regular Director Visa Argentina S.A.
Mr.
Fantacone joined BBVA Banco Francés in 1982 as Special Credits Manager. He
also acted as Services-to-client Manager and was promoted as Regional
Director in 1997.
|
||||
Martín
Ezequiel Zarich
|
2007
|
Financial
Director
|
09/04/1964
|
Alternate
Director, Consolidar ART; Alternate Director, Consolidar Seguros de Vida;
Alternate Director, Consolidar AFJP; Alternate Director, Consolidar ART;
Alternate Director BBVA Seguros; Director, Inversora Otar; Director,
Francés Valores; Director, Aplica Soluciones Argentina S.A; Economist,
Banco de Crédito Argentino; Management Control and Budget Manager, Banco
de Crédito Argentino; Planning Director, Banco de Crédito Argentino;
Merger Director, BBVA Banco Francés; Planning Director, BBVA Banco
Francés; Financial Director, BBVA Banco Francés; Retail Banking Director,
BBVA Banco Francés; Director, Credilogros; Director, BBVA Banco Francés
Uruguay; Director, BBVA Banco Francés Cayman Ltd.; Deputy General
Director, Business Development BBVA Group.
|
||||
Gabriel
Milstein
|
2002
|
Media
Director
|
08/14/1958
|
Organization
Manager, BBVA Banco Francés.
Mr.
Milstein joined the Bank in 1995.
|
||||
Carlos
E. Montoto
|
1998
|
Director,
Human Resources
|
08/10/1957
|
Director,
Atuel Fideicomisos S.A.; President, Promoción y Servicios Financieros
S.A.
Mr.
Montoto joined BBVA Banco Francés in 1975.
|
Name
|
First
Appointed
|
Current
Position
|
Date
of Birth
|
Background
and Work Experience
|
||||
Jorge
Gustavo Allen
|
2007
|
Director,
Massive Distribution
|
12/07/1956
|
Goods
and Services Manager, Banco Francés del Río de la Plata; Logistics
Director, BBVA Banco Francés; President, BBVA Seguros; Territorial
Director, BBVA Banco Francés.
Mr.
Allen joined Banco Francés del Río de la Plata in 1994.
|
||||
Néstor
Esteban Gessaga
|
2007
|
Director,
Corporate Banking and Investment Banking
|
06/16/1955
|
Business
Officer, Banco del Interior y Buenos Aires; Leader of the Commercial Team,
Banco Supervielle Societe Generale; Corporate Banking Officer, Banco
Francés del Río de la Plata; Team Leader Corporate Banking, Banco Francés
del Río de la Plata; General Manager, BBVA Banco Francés Uruguay;
Corporate Banking Manager, BBVA Banco Francés.
Mr.
Gessaga joined Banco Francés del Río de la Plata in 1986.
|
||||
Enrique
César Bartolomé
|
2007
|
Director,
Innovation and Development
|
23/01/1965
|
Human
Resources Analyst, Banco de Crédito Argentino; Team Leader Management
Control, Budget and Audit, Banco de Crédito Argentino; Manager, Management
and Budget Control, BBVA Banco Francés; Director, Transformation and
Development BBVA Banco Francés.
Mr.
Bartolomé joined Banco de Crédito Argentino in 1989.
|
Expiration
of term
|
|||
Regular
|
Mario
Rafael Biscardi
|
December
31, 2008
|
|
Marcelino
Agustín Cornejo
|
December
31, 2008
|
||
Alejandro
Mosquera
|
December
31, 2008
|
||
Alternate
|
Juan
Manuel Minghini
|
December
31, 2008
|
|
Julieta
Paula Pariso
|
December
31, 2008
|
||
Carolina
Verónica Bouzas
|
December
31, 2008
|
Expiration
of term
|
|||
Regular
|
Mario
Rafael Biscardi
|
December
31, 2009
|
|
Marcelino
Agustín Cornejo
|
December
31, 2009
|
||
Alejandro
Mosquera
|
December
31, 2009
|
||
Alternate
|
Alejandro
Carlos Ortiz
|
December
31, 2009
|
|
Julieta
Paula Pariso
|
December
31, 2009
|
||
Carolina
Verónica Bouzas
|
December
31, 2009
|
a)
|
Marcelo
Gustavo Canestri
|
b)
|
José
Manuel Tamayo Pérez
|
c)
|
Oscar
Miguel Castro
|
d)
|
Eduardo
Zerega
|
§
|
Supervise
the appropriate implementation of the internal control systems defined in
the institution through a regular
evaluation;
|
§
|
Provide
assistance to improve the effectiveness of the internal
controls;
|
§
|
Inquire
about external audit planning and comment as necessary on the nature,
scope, and time for the performance of the audit
proceedings;
|
§
|
Revise
and approve the annual work program of the institution’s internal audit
area (“Internal Audit Planning Memorandum” or “Annual Planning”) to be
carried out under these rules, as well as the level of compliance with
such program;
|
§
|
Revise
the reports issued by the internal auditors pursuant to the provisions set
forth in these rules;
|
§
|
Consider
the observations made by the external and the internal auditors regarding
the internal control weaknesses found during the performance of their
duties, as well as the corrective measures implemented by the general
management to minimize or cure such
weaknesses;
|
§
|
Review
the results obtained by the Supervisory Committee of the Bank during the
performance of its duties, as informed in the applicable
reports;
|
§
|
Maintain
a permanent communication with the officers of the Superintendency of
Financial and Exchange Institutions in charge of the control of the Bank,
so as to learn about their concerns, and the problems identified during
the inspections conducted in the Bank, and control the actions adopted to
solve such problems;
|
§
|
Keep
informed of the annual financial statements and the financial statements
for the respective three-month periods as well as the external auditors’
report issued with respect to the former, and any other applicable
accounting information; and
|
§
|
Regularly
control compliance with the independence rules applicable to external
auditors.
|
Members: | José Manuel Tamayo Pérez | ||
Oscar Miguel Castro | |||
Javier D’Ornellas |
§
|
To
render an opinion on the Board’s proposal to appoint the external auditors
to be retained by the company, and ensure their
independence.
|
§
|
To
supervise the operation of internal control and administrative accounting
systems, as well as ensure the reliability of the latter and of all
financial information or other significant facts submitted to the CNV and
the self-regulated bodies in compliance with the applicable information
regulations.
|
§
|
To
supervise the application of policies as regards the information about the
company’s risk management.
|
§
|
To
furnish the market with comprehensive information in respect of operations
which may involve conflicts of interest with members of the corporate
bodies or controlling
shareholders.
|
§
|
To
render an opinion on the reasonableness of proposals concerning fees and
share option plans for the company’s directors and managers as submitted
by the administration body.
|
§
|
To
render an opinion on the observance of legal requirements and the
reasonableness of the conditions for the issuance of shares or securities
convertible into shares in the event of a capital increase, with exclusion
or limitation of preference
rights.
|
§
|
To
verify the observance of the applicable standards of
behavior.
|
§
|
To
issue a duly grounded opinion with regard to operations with related
parties in those cases contemplated by the
Decree.
|
§
|
To
issue a duly grounded opinion and forward it to the self-regulated
entities as determined by the CNV whenever there is a conflict of
interests or the possibility of such a conflict in the
company.
|
§
|
To
prepare annually an action plan to be submitted to the Board and the
Supervisory Committee.
|
§
|
To
examine the plans prepared by the external and internal auditors, evaluate
their performance and issue an opinion on the matter on occasion of the
presentation and publication of the annual financial
statements.
|
§
|
Management
Committee
|
§
|
Computer Technology
Committee
|
§
|
Technical Operations
Committee
|
(1)
|
To
resolve on proposals which exceed the powers delegated to the Credit Risk
Committee (CRC) or the Central Tracking Committee (CTC), and submit
recommendations in cases where the final decision must be made by the
Bank’s executive levels.
|
(2)
|
To
approve qualifications for regularly adjusted amounts and special risks
amounts that have been delegated as such (risks linked to Communications
Media, Political Parties, Trade Unions, or related to BBVA Banco Francés
or its officers). If it is a qualification proposal exceeding the
above-mentioned amounts, it must be first approved by the CTO and then the
“Companies and Wholesale Risks” or the “Retail Risks” sector, as may be
applicable, must send all background information to the Central Credit
Risks Unit for it to be confirmed according to the regulations in force
for such circumstances. The Companies and “Wholesale Risks” or the “Retail
Risks” area, as may be applicable, will conduct the relevant procedures
before the Central Credit Risks Unit (CCRU) until a decision is
made.
|
(3)
|
To
decide on rebates and penalties according to the regulations in force and
delegated amounts.
|
§
|
Assets and Liabilities
Committee
|
(i)
|
Establishes
specific limits with respect to risk
exposure;
|
(ii)
|
Sets
policy with respect to pricing and approves commercial policies which may
have a financial impact on our balance sheet;
and
|
(iii)
|
It
is responsible for the follow-up of monetary aggregates and financial
variables, our liquidity position, regulations from the Central Bank and
the competitive environment in assets, liabilities and interest
rates.
|
§
|
Disclosure
Committee
|
§
|
Asset Laundering and
Terrorism Financing Prevention
Committee
|
-
|
To
deal with all matters related to the prevention of terrorism assets
laundering and financing.
|
-
|
To
define operational policies and continuously monitor their degree of
advancement.
|
-
|
To
provide support for the terrorism assets laundering and financing
Sub-Committee in order to make decisions on reporting to the competent
authorities about any transactions which may appear unusual or suspicious,
or dismissing such action as may be
required.
|
-
|
To
assign duties to the different areas
involved.
|
-
|
To
render his or her area of activity more sensitive as to the importance of
preventing terrorism assets laundering and
financing.
|
-
|
To
detect any relevant situation which may occur in his or her area in this
connection.
|
-
|
To
analyze any new product or service and evaluate potential asset laundering
risks.
|
-
|
To
assume the necessary commitments in his or her area in order to implement
prevention systems in coordination with the officer responsible for Asset
Laundering Prevention.
|
§
|
Corporate Integrity
Management Committee
|
|
-
|
Convene
the Committee.
|
|
-
|
Prepare
the agenda for the Committee meetings based on the proposals received from
the different members.
|
|
-
|
To
authorize exemptions from compliance with concrete provisions of the Code
of Behavior. In all cases such exemptions will be of an exceptional
character and for a justified reason which will not result in any risks
for the Corporate Integrity of BBVA Banco Francés and companies of the
group in Argentina.
|
-
|
To
promote the adoption of such measures as are required in order to resolve
about any ethically questionable behaviors which may be brought to the
knowledge of any of the members, either as a consequence of their
functions in their areas or due to the reception of communications of the
type mentioned in paragraph 6.28. of the Code of
Behavior.
|
-
|
To
bring to the attention of the Board of Directors; the Auditing and
Regulatory Compliance Commission, the Management Committee, or the officer
responsible for the preparation of financial statements, as the case may
be, those circumstances which might derive significant risks for BBVA
Banco Francés and companies of the group in Argentina , in order to ensure
that such statements will reflect any relevant
facts.
|
-
|
To
resolve situations where the interests of BBVA Banco Francés and companies
of the group in Argentina may appear to be in opposition to those of their
clients.
|
-
|
To
prepare and distribute interpretation notes on such aspects of the Code of
Behavior as may so require in order to ensure their application in
practice.
|
-
|
To
propose changes to the content of the Code of Behavior in order to adjust
it to the evolution of the activities and businesses of BBVA Banco Francés
and companies of the group in Argentina, to their operational environment
and to the best practices of the financial
industry.
|
§
|
Internal Control
Evaluation Committee
|
-
|
To
discuss the issues related to the internal control
model.
|
-
|
To
evaluate control weaknesses evidenced in the work performed in compliance
with section 404 of the Sarbanes Oxley Act and the group’s internal
control model.
|
-
|
Decide
on possible discrepancies occurred in the internal certification
procedures.
|
-
|
Analyze,
if applicable, the internal control report proposal in compliance with the
requirements of section 404 of the Sarbanes Oxley Act and the group’s
internal control model.
|
-
|
To
approve the internal control report that will serve as support for the
internal control certification tom be included in the 20-F documentation
to be filed with the SEC.
|
-
|
Responsible
for Foreign Exchange Positions (Com. “A” 4246
BCRA)
|
-
|
Responsible
for Foreign Exchange Control (Com. “A” 4246
BCRA)
|
-
|
Responsible
for relations with entities and their clients (Com. “A” 4378 and 4394
BCRA)
|
-
|
Responsible
for the Liquidity Policy (Com. “A” 2879
BCRA)
|
-
|
Responsible
for Information Systems (Com. “A”
2593)
|
-
|
Responsible
for Market Relations (Decree No.
677/01)
|
-
|
Compliance
Officer on Money Laundering Prevention regulations (Resol. No. 2
UIF)
|
As
of December 31,
|
||||||||||||
2008
(1)
|
2007
(1)
|
2006
(1)
|
||||||||||
Main
office
|
1,544 | 1,600 | 1,376 | |||||||||
Branches
|
2,708 | 2,494 | 2,303 | |||||||||
Total
|
4,252 | 4,094 | 3,679 |
(1)
|
Excludes
752, 1,865 and 2,053 employees from non-banking subsidiaries as of
December 31, 2008, 2007 and 2006,
respectively.
|
Ordinary
Shares Beneficially Owned At December 31, 2008
|
||||||||
Beneficial
Owner
|
Number
|
Percent
of class
|
||||||
Banco
Bilbao Vizcaya Argentaria (1)
|
215,195,798 | 45.65 | % | |||||
Bilbao
Vizcaya America BV (2)
|
98,596,099 | 20.92 | % | |||||
Inversora
Otar S.A. (3)
|
44,301,125 | 9.40 | % | |||||
The
Bank of New York (4)
|
32,732,357 | 6.94 | % | |||||
ANSES
|
30,369,027 | 6.44 | % |
(1)
|
Number
of shares and percent of class owned directly and indirectly by BBVA
except for shares held through Bilbao Vizcaya América
BV.
|
(2)
|
Banco
Bilbao Vizcaya América BV is controlled by
BBVA.
|
(3)
|
Inversora
Otar S.A. is controlled indirectly by
BBVA.
|
(4)
|
As
holder agent of
ADR.
|
Fiscal
Year ended December 31, 2008
|
Fiscal
Year ended December 31, 2007
|
|||||||||||||||||||||||||||||||||
Related
Party
|
Largest
Outstanding
Amount
(1)(2)
|
Interest
Rates
|
Amount
Outstanding (2)
|
Interest
Rates
|
Nature
|
Largest
Outstanding
Amount (1)(2)
|
Interest
Rates
|
Amount
Outstanding (2)
|
Interest
Rates
|
Nature
|
||||||||||||||||||||||||
Controlled,
Controlling and under common control Entities
|
||||||||||||||||||||||||||||||||||
BBVA
and subsidiaries
|
114,164 | — | 114,164 | — |
Guarantees
given, other loans, correspondents
|
129,829 | — | 65,382 | — |
Guarantees
given, other loans, correspondents
|
||||||||||||||||||||||||
Francés
Valores Sociedad de Bolsa S.A.
|
38,273 | — | 9,966 | — |
Other
loans and equity investment
|
18,217 | — | 14,079 | — |
Other
loans and equity investment
|
||||||||||||||||||||||||
Francés
Administradora de Inversión
|
1,560 | — | 1,529 | — |
Other
loans and equity investment
|
1,474 | 87.50 | % | 1,392 | 87.50 | % |
Advances,
credit card loans, other loans and equity investment
|
||||||||||||||||||||||
Consolidar
AFJP S.A.
|
35,261 | 45.00 | % | 33,882 | 45.00 | % |
Advances,
credit card loans, other loans, guarantees given and equity
investment
|
34,078 | 26.50 | % | 33,588 | 45.00 | % |
Advances,
credit card loans, other loans, guarantees given and equity
investment
|
||||||||||||||||||||
Consolidar
Seguros de Vida S.A.
|
9,372 | 45.00 | % | 9,365 | 34.00 | % |
Advances,
credit card loans, other loans and equity investment
|
9,359 | — | 9,359 | — |
Other
loans and equity investment
|
||||||||||||||||||||||
Consolidar
Seguros de Retiro S.A.
|
29,116 | 32.61 | % | 18,808 | 34.00 | % |
Advances,
credit card loans, other loans, guarantees given and equity
investment
|
23,073 | 45.00 | % | 22,974 | 31.88 | % |
Advances,
credit cards loans, other loans, guarantees given and equity
investment
|
||||||||||||||||||||
Consolidar
ART S.A.
|
4,704 | 34.00 | % | 4,704 | 34.00 | % |
Credit
cards loans, other loans and equity investment
|
4,699 | 45.00 | % | 4,697 | 32.73 | % |
Advances,
credit cards loans, other loans and equity investment
|
||||||||||||||||||||
Aplica
S.A.
|
5,263 | 28.00 | % | 52 | 27.50 | % |
Advances
and credit cards loans
|
2,157 | 14.75 | % | 1,147 | 27.86 | % |
Advances
and credit cards loans
|
||||||||||||||||||||
PSA
Finance
|
364,026 | 22.32 | % | 364,026 | 22.32 | % |
Call
money, other loans and equity investment
|
194,000 | 50.00 | % | 194,000 | 50.00 | % |
Advances,
call money, other loans and equity investment
|
||||||||||||||||||||
BBVA
Consolidar Seguros S.A.
|
15,713 | — | 15,713 | — |
Other
loans and equity investment
|
6,887 | 45.00 | % | 6,887 | 45.00 | % |
Advances,
other loans and equity investment
|
||||||||||||||||||||||
Assurex
S.A.
|
35 | — | — | — |
Equity
investment
|
35 | — | 35 | — |
Equity
investment
|
||||||||||||||||||||||||
Inversora
Otar
|
107 | — | 107 | — |
Other
loans
|
3,239 | — | — | — |
Other
loans
|
||||||||||||||||||||||||
Atuel
Fideicomisos S.A.
|
30,845 | — | 30,845 | — |
Equity
investment
|
27,720 | — | 27,720 | — |
Equity
investment
|
(1)
|
Largestamount
during the period indicated.
|
(2)
|
Inthousands
of pesos.
|
Fiscal
Year ended December 31, 2008
|
Fiscal
Year ended December 31, 2007
|
|||||||||||||||||||||||||||||||||
Related
Party
|
Largest
Outstanding
Amount
(1)(2)
|
Interest
Rates
|
Amount
Outstanding (2)
|
Interest
Rates
|
Nature
|
Largest
Outstanding
Amount (1)(2)
|
Interest
Rates
|
Amount
Outstanding (2)
|
Interest
Rates
|
Nature
|
||||||||||||||||||||||||
Associated
Entities
|
||||||||||||||||||||||||||||||||||
Consolidar
Salud S.A.
|
1,149 | 45.00 | % | — | — |
Advances
and credit card loans
|
196 | 45.00 | % | 3 | 32.73 | % |
Advances
and credit card loans
|
|||||||||||||||||||||
Rombo
Cia Financiera S.A.
|
193,513 | 35.00 | % | 177,056 | 17.42 | % |
Call
money, advances, other loans, guarantees given and equity
investment
|
218,039 | 13.30 | % | 197,909 | 13.61 | % |
Call
money, advances, other loans, guarantees given and equity
investment
|
||||||||||||||||||||
Key Management
Personnel (3)
|
1,329 | 21.50 | % | 1,312 | 21.50 | % |
Advances,
credit card loans, personal loans and real state mortgage
|
1,102 | 21.00 | % | 1,102 | 21.00 | % |
Advances,
credit card loans, personal loans and real estate
mortgage
|
(1)
|
Largest
amount during the period indicated.
|
(2)
|
In
thousands of pesos.
|
(3)
|
Includes
directors, senior managers, members of the audit committee and managers
with relevant authority.
|
The
transactions included in this section (a) were made in the ordinary course
of business, (b) were made on substantially the same terms, including
interest rates and collateral, as those prevailing at the time for
comparable transactions with other persons, and (c) did not involve more
than the normal risk of collectibility or present other unfavorable
features.
|
1.
|
The
Bank falls under the provisions of articles 34 “Regularization and
restructuring” and 35 bis “Restructuring of the entity for the protection
of credit and bank deposits” of the Financial Entities
Law;
|
2.
|
The
Bank has received financial assistance from the Central Bank, other than
assistance received for lack of liquidity in terms of Decree No. 739/03
and its regulatory provisions (Communication “A” 3941 and complementary
ones), within the framework of article 17 of this Bank’s Charter, and in
terms of the transactions foreseen by Communication “A”
4268.
|
3.
|
The
Bank incurs delays or noncompliance with respect to the information system
set forth by the BCRA; or
|
4.
|
The
Bank shows deficiencies as to the payment of its minimum capital, either
individually or on a consolidated basis (without computing for such
purpose the effects of individual franchises granted by the
Superintendence of Financial and Foreign Exchange Entities) or as regards
its average minimum cash requirements in pesos or foreign
currencies.
|
Pesos
Per
Ordinary Share (1)
|
||||||||
High
|
Low
|
|||||||
2009
|
||||||||
February
2009
|
3.30 | 2.70 | ||||||
January
2009
|
3.90 | 3.15 | ||||||
Fiscal
year ended December 31, 2008
|
8.55 | 2.42 | ||||||
Fourth
quarter
|
5.40 | 2.42 | ||||||
December,
2008
|
4.10 | 3.16 | ||||||
November,
2008
|
3.60 | 2.44 | ||||||
October,
2008
|
5.40 | 2.42 | ||||||
Third
quarter
|
5.92 | 4.39 | ||||||
September,
2008
|
5.90 | 4.39 | ||||||
Second
quarter
|
7.98 | 5.45 | ||||||
First
quarter
|
8.55 | 7.10 | ||||||
Fiscal
year ended December 31, 2007
|
13.10 | 8.04 | ||||||
Fourth
quarter
|
10.25 | 8.04 | ||||||
Third
quarter
|
11.30 | 8.54 | ||||||
Second
quarter
|
12.80 | 11.00 | ||||||
First
quarter
|
13.10 | 9.75 | ||||||
Fiscal
year ended December 31, 2006
|
9.60 | 6.90 | ||||||
Fiscal
year ended December 31, 2005
|
8.13 | 5.60 | ||||||
Fiscal
year ended December 31, 2004
|
9.95 | 4.80 |
(1)
|
Pesos
per ordinary share data reflect nominal prices at trading
date.
|
U.S.$ Per
ADS
|
|||||
High
|
Low
|
||||
2009
|
|||||
February
2009
|
2
|
9/10
|
2
|
3/43
|
|
January
2009
|
3
|
25/51
|
2
|
27/50
|
|
Fiscal
year ended December 31, 2008
|
8
|
21/50
|
1
|
4/7
|
|
Fourth
quarter
|
5
|
1
|
4/7
|
||
December,
2008
|
4
|
1/2
|
2
|
8/17
|
|
November,
2008
|
3
|
1/4
|
1
|
19/20
|
|
October,
2008
|
5
|
1
|
4/7
|
||
Third
quarter
|
6
|
1/20
|
3
|
17/20
|
|
September,
2008
|
6
|
1/20
|
3
|
17/20
|
|
Second
quarter
|
7
|
13/25
|
5
|
||
First
quarter
|
8
|
21/50
|
5
|
3/5
|
|
Fiscal
year ended December 31, 2007
|
13
|
1/10
|
7
|
12/25
|
|
Fourth
quarter
|
10
|
7
|
12/25
|
||
Third
quarter
|
11
|
7
|
3/5
|
||
Second
quarter
|
12
|
17/20
|
10
|
11/50
|
|
First
quarter
|
13
|
1/10
|
9
|
23/39
|
|
Fiscal
year ended December 31, 2006
|
9
|
7/10
|
6
|
7/10
|
|
Fiscal
year ended December 31, 2005
|
8
|
1/4
|
5
|
39/50
|
|
Fiscal
year ended December 31, 2004
|
10
|
3/20
|
4
|
46/63
|
§
|
the
“Floor”;
|
§
|
the
“SINAC”; and
|
§
|
the
“Continuous”.
|
Year
ended December 31,
|
|||||||||||||
2008
|
2007
|
2006
|
|||||||||||
Market
capitalization (U.S.$ billion)
|
357.1 | 562.4 | 400.0 | ||||||||||
Number
of companies listed
|
110 | 109 | 106 | ||||||||||
Rate
of return in dollars (1)
|
(54.22 | )% | 0.40 | % | 33.58 | % | |||||||
Market/book
ratio (2)
|
0.93 | 2.09 | 2.36 |
(1)
|
Based
on the Merval Index
|
(2)
|
Estimated
|
§
|
Accept
term and demand deposits;
|
§
|
grant
short-term bullet and other amortizable
loans;
|
§
|
discount,
purchase and sell bills of exchange, promissory notes, pledges, checks,
drafts and other negotiable
instruments;
|
§
|
grant
guarantees, bonds or other forms of collateral; accept bills of exchange,
drafts and other orders of payment, transfer funds and issue and accept
letters of credit;
|
§
|
grant
advances on credits from property sales, acquire the same and undertake
the risks resulting therefrom, take steps to collect them and offer
technical and administrative
assistance;
|
§
|
invest
in Government securities;
|
§
|
make
temporary investments in liquid
assets;
|
§
|
invest
in new stock or securities issues, in pursuance of such regulations as may
be set forth to that purpose;
|
§
|
accept
securities in custody and provide other services related to the banking
business;
|
§
|
manage,
on account of third parties, the purchase and sale of securities, and act
as paying agents in relation to dividends, redemption and interest; engage
in brokerage activities in the over-the-counter securities
market;
|
§
|
perform
foreign exchange
transactions;
|
§
|
comply
with agencies related to its
operations;
|
§
|
receive
deposits of participation in mortgage loans and in special
accounts;
|
§
|
issue
mortgage obligations;
|
§
|
grant
loans for the acquisition, construction, enlargement, repair, improvement
and maintenance of urban or rural real estate, and for the substitution of
mortgages taken out for that same
purpose;
|
§
|
receive
loans from abroad and act as intermediary in local or foreign
currency-denominated loans;
|
§
|
issue
private bonds, and
|
§
|
carry
out such lending, borrowing and service-related operations as are not
forbidden under the Financial Institutions
Law.
|
§
|
The
Bank falls under the provisions of articles 34 “Regularization and
restructuring” and 35 bis “Restructuring of the entity for the protection
of credit and bank deposits” of the Financial Entities
Law;
|
§
|
the
Bank has received financial assistance from the Central Bank, other than
assistance received for lack of liquidity in terms of Decree No. 739/03
and its regulatory provisions (Communication “A” 3941 and complementary
ones), within the framework of article 17 of this Bank’s Charter, and in
terms of the transactions foreseen by Communication A
4268;
|
§
|
the
Bank incurs delays or noncompliance with respect to the information system
set forth by the BCRA; or
|
§
|
the
Bank shows deficiencies as to the payment of its minimum capital, either
individually or on a consolidated basis (without computing for such
purpose the effects of individual franchises granted by the
Superintendence of Financial and Foreign Exchange Entities) or as regards
its average minimum cash requirements in pesos or foreign
currencies.
|
(i)
|
All
incoming and outgoing funds from the Argentine Exchange market, and any
debt operation with non-residents which could demand future payments in
foreign currency to non-residents, are subject to registration with the
Central Bank for informative
purposes;
|
(ii)
|
Any
debt entered into between non-governmental persons or entities and
non-residents must be agreed for a term of at least 365 days, except for
the financing of import and export operations and the primary placements
of public debt listed in an authorized stock
exchange;
|
(iii)
|
All
incoming funds relating to foreign private debt, and all incoming funds of
non-residents, excluding foreign direct investments and certain types of
portfolio investments (purchases in the primary market of debt instruments
and equity, listed in authorized stock exchanges, etc) regardless of the
agreed payment procedure, must be agreed for at least 365 days, and 30% of
incoming funds must be deposited with a bank in Argentina in a
non-interest bearing account, known as “encaje” [legal
reserve];
|
(iv)
|
Decree
No. 616/05 also states certain exceptions for the “encaje” such as
settlements in foreign currency of resident loans granted by a local
financial entity, certain capital contributions in local corporations,
etc.;
|
§
|
Pay
abroad interest on foreign debt on its due date or up to 15 days in
advance, without prior Central Bank authorization. Access to the local
foreign exchange market in connection with the servicing of foreign
indebtedness is available only if and after the date the original proceeds
from the financing have been transferred into Argentina and the foreign
currencies liquidated as explained
before.
|
§
|
Repay
principal of foreign debt at maturity (or 365 days in advance, to the
extent that the amounts so prepaid were brought into the local market and
exchanged for pesos, and repayment takes place at least 365 days
therefrom) without prior Central Bank authorization. Communication “A”
4177 (as amended) also allows prepayment of principal with an anticipation
of more than 365 days, but subject to the following
conditions:
|
(1)
|
If
prepayment of principal is not made in the context of a debt restructuring
process, then the amount prepaid should not exceed the present value of
such amount, calculated according to the formula provided by the Central
Bank, unless the prepayment is coupled with the transfer and exchange for
pesos of a new loan with a present value equal to the prepaid
amounts.
|
(2)
|
If
the prepayment is made within the context of a debt restructuring process,
then the new terms and conditions of the debt after the restructuring,
including the amount prepaid, shall not result in an increase of the
present value of the whole debt (according to the formula of the Central
Bank).
|
A.
|
Local
individuals and companies
|
§
|
U.S.$2,000,000
per month; or
|
B.
|
Non-residents
|
§
|
Transfers
abroad arising out of:
|
(1)
|
Residents
foreign indebtedness of residents related to Argentine imports of goods
and services;
|
(2)
|
Domestic
collections of:
|
-
|
Services,
rents and other current transfers abroad of financial debts originated in
non-residents foreign loans;
|
-
|
Inheritances
according to the Declaration of a Decedent’s
Heirs;
|
-
|
National
Government Bonds and Guaranteed Loans Income issued in local
currency;
|
-
|
Benefits
or services or sale of values received, granted by the National Government
as per Laws No. 24,043, 24,411 and
25.914.
|
-
|
Recoveries
under local bankruptcy proceedings as long as the foreign creditor has
been admitted as such by the Bankruptcy
Court;
|
(3)
|
Sales
proceeds from direct investments in local non-financial companies;
and
|
(4)
|
The
proceeds from final liquidation of direct investments in local
non-financial companies;
|
(5)
|
Capital
reduction;
|
(6)
|
Restitution
of irrevocable contributions made by the local
company.
|
§
|
Transfers
abroad of an aggregate equivalent of up to U.S.$500,000 per month arising
out of:
|
(1)
|
Proceeds
of sales of other portfolio investments and their revenues, such as
investments in shares of local companies, investment funds and local
trusts;
|
(2)
|
Purchases
of loans granted to residents by local
banks;
|
(3)
|
Acquisition
of invoices and promissory notes for local commercial transactions,
investment in local bonds denominated in pesos;
and
|
(4)
|
The
acquisition of other local
credits.
|
§
|
International
bodies or entities that operate as official export credit
agencies.
|
§
|
Diplomatic
and consular representations as well as diplomatic staff accredited in the
country for transfers made in exercise of their
duties.
|
§
|
Direct
investments in Argentina of non-Argentine
residents
|
§
|
Direct
investments made abroad by Argentine
residents
|
§
|
Certain
financial institutions;
|
§
|
dealers
and traders in securities who use a mark-to-market method of tax
accounting;
|
§
|
persons
holding ordinary shares or ADSs as part of a hedging transaction,
straddle, wash sale, conversion transaction or integrated transaction or
persons entering into a constructive sale with respect to the ordinary
shares or ADSs;
|
§
|
persons
whose functional currency for U.S. federal income tax purposes is not the
U.S. dollar;
|
§
|
entities
classified as partnerships for U.S. federal income tax
purposes;
|
§
|
tax-exempt
entities, including an “individual retirement account” or “Roth
IRA”;
|
§
|
persons
holding ordinary shares or ADSs that own or are deemed to own ten percent
or more of our voting stock;
or
|
§
|
persons
who acquired ordinary shares or our ADSs pursuant to the exercise of an
employee stock option or otherwise as
compensation.
|
§
|
A
citizen or individual resident of the United
States;
|
§
|
A
corporation, or other entity taxable as a corporation, created or
organized in or under the laws of the United States or any political
subdivision thereof; or
|
§
|
An
estate or trust the income of which is subject to U.S. federal income
taxation regardless of its
source.
|
2008
|
2007
|
||
Average
|
0.89
|
1.89
|
|
Minimum
|
0.22
|
1.43
|
|
Maximum
|
2.41
|
2.86
|
|
Dec.31
|
0.32
|
1.66
|
Interest Risk
VaR
|
2008
|
2007
|
|
Average
|
0.78
|
1.89
|
|
Minimum
|
0.18
|
1.35
|
|
Maximum
|
2.39
|
5.60
|
|
Dec.31
|
0.28
|
1.65
|
Currency Risk
VaR
|
2008
|
2007
|
|
Average
|
0.38
|
0.24
|
|
Minimum
|
0.03
|
0.02
|
|
Maximum
|
0.92
|
0.57
|
|
Dec.31
|
0.15
|
0.54
|
At
December 31, 2008
|
||||||||||||||||||||||||||
Change in
base interest
rates
(basis
points)
|
Net
portfolio
value
|
Percentage
change
|
Net
interest and
adjust
income
|
Percentage
change
|
Net
income of
adjustable
portfolio
|
Percentage
change
|
||||||||||||||||||||
(in
millions of pesos, except percentages)
|
||||||||||||||||||||||||||
100 | 2,380.4 | (3.23 | )% | 1,851.3 | 1.45 | % | 670.6 | 6.05 | % | |||||||||||||||||
50 | 2,419.9 | (1.63 | )% | 1,838.1 | 0.73 | % | 651.5 | 3.03 | % | |||||||||||||||||
0 | 2,459.9 | 0.00 | % | 1,824.8 | 0.00 | % | 632.3 | 0.00 | % | |||||||||||||||||
(50 | ) | 2,500.7 | 1.66 | % | 1,811.6 | (0.73 | )% | 613.2 | (3.03 | )% | ||||||||||||||||
(100 | ) | 2,542.2 | 3.34 | % | 1,798.3 | (1.45 | )% | 594.1 | (6.05 | )% |
Peso
against all other currencies
|
Effect
on net income based on our position as of December 31,
2007
|
Effect
on net income based on our position as of December 31,
2007
|
||
(in
millions of pesos, except percentages)
|
||||
5%
|
(23)
|
(11)
|
||
(5)%
|
23
|
11
|
§
|
Pertain
to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the
Bank;
|
§
|
Provide
reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted
accounting principles, and that our receipts and expenditures are being
made only in accordance with authorizations of the Bank’s management and
directors; and
|
§
|
Provide
reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of our assets that could have
a material effect on the financial
statements.
|
2008
actual fees
|
2007
actual fees
|
|||||||
(in
millions of pesos)
|
||||||||
Audit
fees
|
5.11 | 3.25 | ||||||
Audit-related
fees
|
— | — | ||||||
Tax
fees
|
0.26 | 0.20 | ||||||
All
other fees
|
— | — | ||||||
Total
fees
|
5.37 | 3.45 |
§
|
Index
to Consolidated Financial
Statements:
|
Page
|
|
Report
of Independent Registered Public Accounting Firm
|
F-2
|
Consolidated
Balance Sheets as of December 31, 2008 and 2007
|
F-4
|
Consolidated
Statements of Operations for the fiscal years ended December 31, 2008,
2007 and 2006
|
F-8
|
Consolidated
Statements of Cash and Cash Equivalents Flows for the fiscal years ended
December 31, 2008, 2007 and 2006
|
F-10
|
Consolidated
Statements of Changes in Stockholders’ Equity for the fiscal years ended
December 31, 2008, 2007 and 2006
|
F-13
|
Notes
to the Consolidated Financial Statements
|
F-14
|
§
|
Index
to Exhibits:
|
Exhibit
Number
|
Description
|
|
1.1
|
Amended
and Restated By-Laws (Estatutos) of BBVA Banco Francés S.A. (*)
|
|
1.2
|
English
translation of the Amended and Restated By-Laws (Estatutos) of BBVA Banco
Francés S.A. (*)
|
|
8.1
|
Subsidiaries
of the Company
|
|
12.1
|
Section
302 Certification of Chief Executive Officer
|
|
12.2
|
Section
302 Certification of Chief Financial Officer
|
|
13.1
|
Section
906 Certification
|
|
|
(*)
|
Incorporated
by reference to the BBVA Banco Francés Annual Report on Form 20-F for the
year ended December 31, 2005 filed with the Securities and Exchange
Commission on June 29,
2006.
|
BBVA
BANCO FRANCÉS S.A.
|
|||
By:
|
/s/ Martín Ezequiel
Zarich
|
||
Name:
Martín Ezequiel Zarich
|
|||
Title: Chief
Financial Officer
|
Page
|
|
Report
of Independent Registered Public Accounting Firm
|
F-2
|
Consolidated
Balance Sheets as of December 31, 2008 and 2007
|
F-4
|
Consolidated
Statements of Operations for the fiscal years ended December 31, 2008,
2007 and 2006
|
F-8
|
Consolidated
Statements of Cash and Cash Equivalents Flows for the fiscal years ended
December 31, 2008, 2007 and 2006
|
F-10
|
Consolidated
Statements of Changes in Stockholders’ Equity for the fiscal years ended
December 31, 2008, 2007 and 2006
|
F-13
|
Notes
to the Consolidated Financial Statements
|
F-14
|
December
31,
|
||||||||
2008
|
2007
|
|||||||
ASSETS
|
||||||||
CASH
AND DUE FROM BANKS
|
4,243,080 | 3,169,314 | ||||||
Cash
|
1,066,447 | 750,752 | ||||||
Due
from banks and correspondents
|
3,176,633 | 2,418,562 | ||||||
Argentine
Central Bank
|
3,127,010 | 2,102,642 | ||||||
Other
local
|
3,220 | 7,312 | ||||||
Foreign
|
46,403 | 308,608 | ||||||
GOVERNMENT AND PRIVATE
SECURITIES (Note 6.a)
|
5,233,660 | 5,181,253 | ||||||
Holdings
in investment accounts
|
955,534 | 547,714 | ||||||
Holdings
for trading or financial transactions
|
272,769 | 170,320 | ||||||
Government
Securities for repurchase agreements with the Argentine Central
Bank
|
334,688 | — | ||||||
Holdings
available for sale
|
577,502 | 1,372,584 | ||||||
Unlisted
Government Securities
|
1,004,833 | 903,903 | ||||||
Instruments
issued by the Argentine Central Bank
|
2,676,687 | 2,005,791 | ||||||
Investments
in listed private securities
|
164,394 | 241,943 | ||||||
Less:
Allowances
|
752,747 | 61,002 | ||||||
LOANS
|
12,507,489 | 11,390,121 | ||||||
To
governmental sector
|
2,400,511 | 2,367,869 | ||||||
To
financial sector
|
598,755 | 541,911 | ||||||
Inter-financial
– (Calls granted)
|
22,550 | 56,430 | ||||||
Other
financing to local financial institutions
|
529,779 | 449,709 | ||||||
Interest
and listed-price differences accrued and pending of
collection
|
46,426 | 35,772 | ||||||
To
non-financial private sector and residents abroad:
|
9,704,814 | 8,679,162 | ||||||
Overdraft
|
1,413,522 | 1,326,472 | ||||||
Discounted
instruments
|
1,241,508 | 1,430,787 | ||||||
Real
estate mortgage
|
946,804 | 772,036 | ||||||
Collateral
loans
|
511,374 | 253,130 | ||||||
Consumer
|
1,855,767 | 1,337,179 | ||||||
Credit
cards
|
1,239,588 | 802,647 | ||||||
Other
(Note 6.b)
|
2,373,476 | 2,666,843 | ||||||
Interest
and listed-price differences accrued and pending of
collection
|
147,079 | 103,824 | ||||||
Less:
Interest documented together with main obligation
|
24,304 | 13,756 | ||||||
Less:
Difference arising from purchase of portfolio
|
102 | 93 | ||||||
Less:
Allowances
|
196,489 | 198,728 | ||||||
Carried
forward
|
21,984,229 | 19,740,688 | ||||||
December
31,
|
||||||||
2008
|
2007
|
|||||||
Brought
forward
|
21,984,229 | 19,740,688 | ||||||
OTHER
RECEIVABLES FROM FINANCIAL TRANSACTIONS
|
2,442,925 | 956,184 | ||||||
Argentine
Central Bank
|
876,987 | 463,621 | ||||||
Amounts
receivable for spot and forward sales to be settled
|
1,283,910 | 206,216 | ||||||
Instruments
to be received for spot and forward purchases to be
settled
|
7,221 | 110,155 | ||||||
Premiums
for options bought
|
2,513 | — | ||||||
Unlisted
corporate bonds
|
104,476 | 81,976 | ||||||
Non-deliverable
forward transactions balances to be settled
|
27,230 | 6,292 | ||||||
Other
receivables not covered by debtor classification
regulations
|
34,432 | 24,170 | ||||||
Other
receivables covered by debtor classification regulations
|
72,209 | 43,816 | ||||||
Interest
accrued and pending of collection not covered by debtor classification
regulations
|
36,958 | 21,834 | ||||||
Interest
accrued and pending of collection covered by debtor classification
regulations
|
2 | 5 | ||||||
Less:
Allowances
|
3,013 | 1,901 | ||||||
ASSETS
SUBJECT TO FINANCIAL LEASING
|
379,120 | 323,522 | ||||||
Assets
subject to financial leasing
|
383,652 | 327,969 | ||||||
Less:
Allowances
|
4,532 | 4,447 | ||||||
INVESTMENTS
IN OTHER COMPANIES
|
96,640 | 77,986 | ||||||
In
Financial institutions
|
38,699 | 31,559 | ||||||
Others
(Note 6.c)
|
57,944 | 46,430 | ||||||
Less:
Allowances
|
3 | 3 | ||||||
OTHER
RECEIVABLES
|
392,099 | 357,963 | ||||||
Receivables
from sale of property assets
|
— | 52 | ||||||
Tax
on minimum presumed income – Tax credit
|
188,324 | 150,506 | ||||||
Others
(Note 6.d)
|
432,188 | 285,008 | ||||||
Other
accrued interest receivable
|
— | 1 | ||||||
Less:
Allowances
|
228,413 | 77,604 | ||||||
PREMISES
AND EQUIPMENT
|
441,666 | 399,615 | ||||||
OTHER
ASSETS
|
27,786 | 38,950 | ||||||
INTANGIBLE
ASSETS
|
55,332 | 116,380 | ||||||
Goodwill
|
— | 12,200 | ||||||
Organization
and development expenses
|
55,332 | 104,180 | ||||||
SUSPENSE
ITEMS
|
4,230 | 11,261 | ||||||
OTHER SUBSIDIARIES’ ASSETS
(Note 6.e)
|
1,438 | 450 | ||||||
TOTAL
ASSETS
|
25,825,465 | 22,022,999 | ||||||
December
31,
|
||||||||
2008
|
2007
|
|||||||
LIABILITIES
|
||||||||
DEPOSITS
|
17,079,203 | 15,009,758 | ||||||
Governmental
sector
|
1,685,730 | 53,899 | ||||||
Financial
sector
|
198,179 | 195,890 | ||||||
Non-financial
private sector and residents abroad:
|
15,195,294 | 14,759,969 | ||||||
Checking
accounts
|
3,293,842 | 2,771,710 | ||||||
Savings
deposits
|
4,664,223 | 4,237,696 | ||||||
Time
deposits
|
6,810,809 | 7,219,407 | ||||||
Investments
accounts
|
9,740 | 13,152 | ||||||
Other
|
338,758 | 435,566 | ||||||
Interest
and listed—price differences accrued payable
|
77,922 | 82,438 | ||||||
OTHER
LIABILITIES FROM FINANCIAL TRANSACTIONS
|
3,135,153 | 1,750,021 | ||||||
Argentine
Central Bank — Other
|
2,982 | 1,833 | ||||||
Banks
and International Institutions
|
331,311 | 555,842 | ||||||
Amounts
payable for spot and forward purchases to be settled
|
13 | 104,223 | ||||||
Instruments
to be delivered for spot and forward sales to be settled
|
1,604,467 | 206,466 | ||||||
Premiums
for options written
|
1,927 | — | ||||||
Financing
received from Argentine financial institutions
|
55,713 | 72,672 | ||||||
Inter-financial
- (Calls received)
|
550 | 10,019 | ||||||
Other
financing from local financial institutions
|
55,163 | 62,646 | ||||||
Interest
accrued payable
|
— | 7 | ||||||
Non-deliverable
forward transactions balances to be settled
|
67,056 | 1,002 | ||||||
Other
(Note 6.f)
|
1,060,504 | 797,227 | ||||||
Interest
and listed—Price differences accrued payable
|
11,180 | 10,756 | ||||||
OTHER
LIABILITIES
|
429,085 | 374,999 | ||||||
Fees
payable
|
65 | 118 | ||||||
Other
(Note 6.g)
|
429,020 | 374,881 | ||||||
ALLOWANCES
|
379,243 | 441,964 | ||||||
SUSPENSE
ITEMS
|
68,507 | 6,671 | ||||||
OTHER SUBSIDIARIES’ LIABILITIES
(Note 6.h)
|
2,410,111 | 2,146,731 | ||||||
TOTAL
LIABILITIES
|
23,501,302 | 19,730,144 | ||||||
MINORITY
INTEREST IN SUBSIDIARIES
|
248,139 | 236,018 | ||||||
STOCKHOLDERS’
EQUITY
|
2,076,024 | 2,056,837 | ||||||
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
25,825,465 | 22,022,999 |
December
31,
|
||||||||
2008
|
2007
|
|||||||
MEMORANDUM
ACCOUNTS
|
||||||||
DEBIT
ACCOUNTS
|
||||||||
Contingent
|
4,859,751 | 4,192,205 | ||||||
Credit
lines obtained (unused balances)
|
52,729 | 199,679 | ||||||
Guaranties
received
|
4,109,820 | 3,437,694 | ||||||
Contra
contingent debit accounts
|
697,202 | 554,832 | ||||||
Control
|
26,695,971 | 34,581,439 | ||||||
Receivables
classified as non-recoverable
|
267,935 | 280,820 | ||||||
Other
(Note 6.i)
|
25,950,390 | 32,078,895 | ||||||
Contra
control debit accounts
|
477,646 | 2,221,724 | ||||||
Derivatives
|
3,117,794 | 2,795,659 | ||||||
“Notional”
amount of put options bought
|
5,850 | — | ||||||
“Notional”
amount of non-deliverable forward transactions
|
1,446,615 | 1,164,392 | ||||||
Interest
rate SWAP
|
155,650 | 292,000 | ||||||
Other
|
50,000 | 50,000 | ||||||
Contra
debit derivatives accounts
|
1,459,679 | 1,289,267 | ||||||
For
trustee activities
|
17,575 | 18,502 | ||||||
Funds
in trust
|
17,575 | 18,502 | ||||||
TOTAL
|
34,691,091 | 41,587,805 | ||||||
CREDIT
ACCOUNTS
|
||||||||
Contingent
|
4,859,751 | 4,192,205 | ||||||
Credit
lines granted (unused portion) covered by debtor classification
regulations
|
74,294 | 26,185 | ||||||
Guaranties
provided to the Argentine Central Bank
|
51,698 | 61,729 | ||||||
Other
guaranties given covered by debtor classification
regulations
|
175,508 | 135,525 | ||||||
Other
guarantees given non-covered by debtor classification
regulations
|
141,835 | 134,871 | ||||||
Other
covered by debtor classification regulations
|
253,867 | 196,522 | ||||||
Contra
contingent credit accounts
|
4,162,549 | 3,637,373 | ||||||
Control
|
26,695,971 | 34,581,439 | ||||||
Items
to be credited
|
425,136 | 388,952 | ||||||
Other
|
52,510 | 1,832,772 | ||||||
Contra
control credit accounts
|
26,218,325 | 32,359,715 | ||||||
Derivatives
|
3,117,794 | 2,795,659 | ||||||
“Notional”
amount of put options written
|
5,265 | — | ||||||
“Notional”
amount of non-deliverable forward transactions
|
1,454,414 | 1,289,267 | ||||||
Contra
debit derivatives accounts
|
1,658,115 | 1,506,392 | ||||||
For
trustee activities
|
17,575 | 18,502 | ||||||
Contra
credit accounts for trustee activities
|
17,575 | 18,502 | ||||||
TOTAL
|
34,691,091 | 41,587,805 | ||||||
Fiscal
year ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
FINANCIAL
INCOME
|
2,279,104 | 1,904,212 | 1,936,404 | |||||||||
Interest
cash and due from banks
|
11,745 | 20,202 | 17,353 | |||||||||
Interest
on loans to the financial sector
|
187,728 | 146,833 | 91,875 | |||||||||
Interest
on overdraft
|
264,989 | 164,659 | 102,072 | |||||||||
Interest
on discounted instruments
|
176,250 | 101,775 | 55,699 | |||||||||
Interest
on real estate mortgage
|
107,322 | 64,264 | 44,894 | |||||||||
Interest
on collateral loans
|
55,231 | 15,089 | 7,366 | |||||||||
Interest
on credit card loans
|
107,461 | 55,026 | 30,485 | |||||||||
Interest
on other loans
|
495,666 | 301,738 | 190,495 | |||||||||
Interest
on other receivables from financial transactions
|
20,175 | 23,757 | 35,314 | |||||||||
Income
from secured loans—Decree No. 1387/01
|
214,690 | 236,964 | 297,468 | |||||||||
Net
income from governmental and private securities
|
— | 319,666 | 559,877 | |||||||||
Indexation
by Benchmark Stabilization Coefficient (CER)
|
199,209 | 210,342 | 354,566 | |||||||||
Gold
and foreign currency exchange difference
|
206,869 | 117,403 | 78,666 | |||||||||
Other
|
231,769 | 126,494 | 70,274 | |||||||||
FINANCIAL
EXPENSES
|
1,201,681 | 680,131 | 568,345 | |||||||||
Interest
on checking accounts
|
28,083 | 23,180 | 29,913 | |||||||||
Interest
on savings deposits
|
8,713 | 6,598 | 4,811 | |||||||||
Interest
on time deposit
|
720,759 | 491,577 | 307,084 | |||||||||
Interest
on inter-financial financing - (Calls received)
|
733 | 1,983 | 1,981 | |||||||||
Interest
on other financing from financial institutions
|
10,824 | 3,394 | 9,100 | |||||||||
Interest
on other liabilities from financial transactions
|
28,486 | 26,627 | 28,883 | |||||||||
Other
interest
|
6,832 | 8,478 | 18,960 | |||||||||
Net
expense from governmental and private securities
|
288,141 | — | — | |||||||||
Net
expense from options
|
100 | — | — | |||||||||
Indexation
by CER
|
7,212 | 49,230 | 121,321 | |||||||||
Contribution
to the deposit guarantee fund
|
26,702 | 23,714 | 20,098 | |||||||||
Other
|
75,096 | 45,350 | 26,194 | |||||||||
GROSS
INTERMEDIATION MARGIN—GAIN
|
1,077,423 | 1,224,081 | 1,368,059 | |||||||||
ALLOWANCES
FOR DOUBTFUL LOANS
|
36,708 | 62,262 | 70,125 | |||||||||
SERVICE
CHARGE INCOME
|
1,190,417 | 1,182,789 | 915,875 | |||||||||
Related
to lending transactions
|
272,266 | 163,281 | 106,893 | |||||||||
Related
to liability transactions
|
413,474 | 318,038 | 246,506 | |||||||||
Other
commissions
|
283,494 | 530,772 | 430,102 | |||||||||
Other
|
221,183 | 170,698 | 132,374 | |||||||||
Carried
forward
|
2,231,132 | 2,344,608 | 2,213,809 | |||||||||
Fiscal
year ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Brought
forward
|
2,231,132 | 2,344,608 | 2,213,809 | |||||||||
SERVICE
CHARGE EXPENSES
|
240,631 | 158,927 | 110,199 | |||||||||
Commissions
|
176,463 | 114,371 | 76,538 | |||||||||
Other
(Note 6.j)
|
64,168 | 44,556 | 33,661 | |||||||||
OPERATING
EXPENSES
|
1,413,448 | 1,124,161 | 927,404 | |||||||||
Payroll
expenses
|
837,175 | 653,644 | 523,904 | |||||||||
Fees
to Bank Directors and Statutory Auditors
|
570 | 463 | 446 | |||||||||
Other
professional fees
|
36,369 | 29,107 | 28,178 | |||||||||
Advertising
and publicity
|
72,764 | 67,212 | 46,050 | |||||||||
Taxes
|
63,235 | 52,119 | 46,937 | |||||||||
Fixed
assets depreciation
|
42,468 | 37,203 | 31,781 | |||||||||
Organizational
expenses amortization
|
32,706 | 21,961 | 22,967 | |||||||||
Other
operating expenses
|
189,733 | 149,660 | 128,992 | |||||||||
Other
|
138,428 | 112,792 | 98,149 | |||||||||
NET
GAIN FROM FINANCIAL TRANSACTIONS
|
577,053 | 1,061,520 | 1,176,206 | |||||||||
NET
GAIN / (LOSS) ON MINORITY INTEREST IN SUBSIDIARIES
|
2,801 | (19,541 | ) | (39,016 | ) | |||||||
OTHER
INCOME
|
773,451 | 828,284 | 314,440 | |||||||||
Income
from long-term investments
|
65,121 | 9,363 | 19,941 | |||||||||
Punitive
interests
|
2,444 | 961 | 537 | |||||||||
Loans
recovered and reversals of allowances
|
187,767 | 434,295 | 86,543 | |||||||||
Other
(Note 6.k)
|
518,119 | 383,665 | 207,419 | |||||||||
OTHER
EXPENSES
|
1,000,525 | 1,584,820 | 1,199,913 | |||||||||
Punitive
interests and charges paid to Argentine Central Bank
|
40 | 34 | 475 | |||||||||
Charge
for uncollectibility of other receivables and other
allowances
|
199,603 | 157,626 | 312,485 | |||||||||
Amortization
of difference arising from judicial resolutions
|
107,793 | 323,139 | 262,312 | |||||||||
Depreciation
and losses from miscellaneous assets
|
579 | 4,035 | 9,356 | |||||||||
Goodwill
amortization
|
12,200 | 6,629 | 6,629 | |||||||||
Other
(Note 6.l)
|
680,310 | 1,093,357 | 608,656 | |||||||||
NET
GAIN BEFORE INCOME TAX AND TAX ON MINIMUM PRESUMED INCOME
|
352,780 | 285,443 | 251,717 | |||||||||
INCOME
TAX AND TAX ON MINIMUM PRESUME INCOME
|
31,270 | 50,394 | 71,680 | |||||||||
NET
INCOME FOR THE FISCAL YEAR
|
321,510 | 235,049 | 180,037 | |||||||||
NET INCOME PER ORDINARY SHARE
(1)
|
0.68 | 0.50 | 0.38 |
(1)
|
See
Note 19.14.
|
Fiscal
year ended December 31,
|
||||||||||||
2008
|
2007
|
2006
(1)
|
||||||||||
CHANGES
IN CASH AND ITS EQUIVALENTS
|
||||||||||||
Cash
and its equivalents at the beginning of fiscal year
|
3,465,634 | (1) | 2,928,807 | (1) | 2,298,743 | |||||||
Cash
and its equivalents at the end of the fiscal year
|
4,661,349 | (1) | 3,465,634 | (1) | 2,928,807 | (1) | ||||||
Net
increase in cash and its equivalents
|
1,195,715 | 536,827 | 630,064 | |||||||||
REASONS
FOR CHANGES IN CASH AND ITS EQUIVALENTS
|
||||||||||||
Operating
activities
|
||||||||||||
Net
collections/ (payments) from:
|
||||||||||||
-
Governmental and private securities
|
50,042 | (623,058 | ) | (668,858 | ) | |||||||
-
Loans
|
1,097,487 | (332,979 | ) | 362,278 | ||||||||
to
financial sector
|
(26,690 | ) | (25,573 | ) | (239,739 | ) | ||||||
to
non-financial public sector
|
100,151 | 367,802 | 1,092,879 | |||||||||
to
non-financial private sector and residents abroad
|
1,024,026 | (675,208 | ) | (490,862 | ) | |||||||
-
Other receivables from financial transactions
|
(77,590 | ) | (63,401 | ) | 28,869 | |||||||
-
Assets subject to financial leasing
|
(55,598 | ) | (88,334 | ) | (105,023 | ) | ||||||
-
Deposits
|
896,683 | 1,854,830 | 1,307,662 | |||||||||
to
financial sector
|
2,220 | 39,186 | 128,094 | |||||||||
to
non-financial public sector
|
1,623,718 | (19,579 | ) | (29,664 | ) | |||||||
to
non-financial private sector and residents abroad
|
(729,255 | ) | 1,835,223 | 1,209,232 | ||||||||
-
Other liabilities from financial transactions
|
245,531 | 221,229 | 218,337 | |||||||||
Financing
from financial or inter-financial sector (calls received)
|
(9,469 | ) | (138,881 | ) | 152,710 | |||||||
Others
(except liabilities included in Financing Activities)
|
255,000 | 360,110 | 65,627 | |||||||||
Collections
related to service charge income
|
1,186,610 | 1,182,608 | 913,907 | |||||||||
Payments
related to service charge expense
|
(240,631 | ) | (158,927 | ) | (110,199 | ) | ||||||
Administrative
expenses paid
|
(1,332,728 | ) | (1,020,873 | ) | (823,918 | ) | ||||||
Organizational
and development expenses paid
|
(8,094 | ) | (3,848 | ) | (3,577 | ) | ||||||
Net
collections from punitive interest
|
1,974 | 822 | 62 | |||||||||
Differences
from judicial resolutions paid
|
(50,304 | ) | (37,124 | ) | (40,024 | ) | ||||||
Collections
of dividends from other companies
|
49,499 | 6,321 | 107 | |||||||||
Other
payments related to other income and expenses
|
(103,522 | ) | (656,249 | ) | (314,644 | ) | ||||||
Net
cash flows provided by operating activities
|
1,659,359 | 281,017 | 764,979 | |||||||||
Investment
activities
|
||||||||||||
Net
payments from premises and equipment
|
(84,519 | ) | (38,922 | ) | (53,880 | ) | ||||||
Net
collections / (payments) from other assets
|
9,547 | (7,805 | ) | 18,679 | ||||||||
Other
payments from investment activities
|
(207,810 | ) | (146,501 | ) | (26,829 | ) | ||||||
Net
cash flows used in investment activities
|
(282,782 | ) | (193,228 | ) | (62,030 | ) |
Fiscal
year ended December 31,
|
||||||||||||
2008
|
2007
|
2006
(1)
|
||||||||||
Financing
activities
|
||||||||||||
Net
collections/ (payments) from:
|
||||||||||||
-
Non-subordinated corporate bonds
|
— | (248,638 | ) | (37,848 | ) | |||||||
-
Argentine Central Bank
|
1,133 | 67 | (53,413 | ) | ||||||||
Others
|
1,133 | 67 | (53,413 | ) | ||||||||
-
Banks and international agencies
|
(224,531 | ) | 376,899 | (45,368 | ) | |||||||
-
Financing received from local financial institutions
|
(7,483 | ) | (24,322 | ) | 8,231 | |||||||
Dividends
paid in cash
|
(164,000 | ) | (90,000 | ) | (27,000 | ) | ||||||
Other
collections from financing activities
|
202,274 | 414,830 | 65,160 | |||||||||
Net
cash flows (used in) / provided by financing activities
|
(192,607 | ) | 428,836 | (90,238 | ) | |||||||
Financial
results and results from holdings of cash and its equivalents (including
interest)
|
11,745 | 20,202 | 17,353 | |||||||||
Net
increase in cash and its equivalents
|
1,195,715 | 536,827 | 630,064 |
Non-capitalized
contributions
|
Retained
earnings
|
|||||||||||||||||||||||||||
Movements
|
Capital
Stock(1)
|
Issuance
premiums(1) |
Adjustments
to
stockholders’
equity(1) |
Legal
|
Unrealized
valuation
difference
|
Unappropriated
earnings
|
Total
|
|||||||||||||||||||||
Balances
at December 31, 2005
|
471,361 | 175,132 | 312,979 | 428,698 | 230,282 | 183,095 | 1,801,547 | |||||||||||||||||||||
Decisions
of Stockholders’ Meeting of April 27, 2006:
|
||||||||||||||||||||||||||||
-
Dividends paid in cash
|
— | — | — | — | — | (27,000 | ) | (27,000 | ) | |||||||||||||||||||
-
Statutory Reserve
|
— | — | — | 36,619 | — | (36,619 | ) | — | ||||||||||||||||||||
Reversal
of “Unrealized valuation difference” due to foreign currency
compensation
|
— | — | — | — | (230,282 | ) | 230,282 | — | ||||||||||||||||||||
Net
income for the fiscal year
|
— | — | — | — | — | 180,037 | 180,037 | |||||||||||||||||||||
Balances
at December 31, 2006
|
471,361 | 175,132 | 312,979 | 465,317 | — | 529,795 | 1,954,584 | |||||||||||||||||||||
Decisions
of Stockholders’ Meeting of April 26, 2007:
|
||||||||||||||||||||||||||||
-
Dividends paid in cash
|
— | — | — | — | — | (90,000 | ) | (90,000 | ) | |||||||||||||||||||
-
Statutory Reserve
|
— | — | — | 82,064 | — | (82,064 | ) | — | ||||||||||||||||||||
Unrealized
valuation difference (2)
|
— | — | — | — | (42,796 | ) | — | (42,796 | ) | |||||||||||||||||||
Net
income for the fiscal year
|
— | — | — | — | — | 235,049 | 235,049 | |||||||||||||||||||||
Balances
at December 31, 2007
|
471,361 | 175,132 | 312,979 | 547,381 | (42,796 | ) | 592,780 | 2,056,837 | ||||||||||||||||||||
Decisions
of Stockholders’ Meeting of March 28, 2008:
|
||||||||||||||||||||||||||||
-
Dividends paid in cash
|
— | — | — | — | — | (164,000 | ) | (164,000 | ) | |||||||||||||||||||
-
Statutory Reserve
|
— | — | — | 47,010 | — | (47,010 | ) | — | ||||||||||||||||||||
Unrealized
valuation difference (2)
|
— | — | — | — | (138,323 | ) | — | (138,323 | ) | |||||||||||||||||||
Net
income for the fiscal year
|
— | — | — | — | — | 321,510 | 321,510 | |||||||||||||||||||||
Balances
at December 31, 2008
|
471,361 | 175,132 | 312,979 | 594,391 | (181,119 | ) | 703,280 | 2,076,024 |
(1)
|
See
Note 1.2.
|
(2)
|
Unrealized
loss for Available for Sale investments (see Note
3.4.2.).
|
1.1.
|
Corporate
situation
|
1.2.
|
Stockholders’
Equity
|
1.2.1.
|
Capital
stock
|
Date
of
|
|||||||||
Stockholders’
Meeting deciding on the issuance
|
Registration
with the Public Registry of Commerce
|
Form
of
placement
|
Amount
(in
thousands)
|
Total
|
|||||
Capital
Stock as of December 31, 2002:
|
368,128
|
||||||||
|
|||||||||
04-22-2004
|
01-25-2005
|
(1)
|
103,233
|
471,361
|
(2)
|
(1)
|
Through
public subscription of shares.
|
(2)
|
The
amount of Capital Stock is fully paid in and authorized for public
offering by National Securities Commission (“CNV” for its Spanish
acronym).
|
1.2.2.
|
Authorized
and issued shares
|
1.2.3.
|
Adjustments
to stockholders’ equity
|
a)
|
The
balance of the surplus of the technical valuation on the Bank’s properties
made in year 1,981, which is available to absorb losses on the disposal or
devaluation of such properties restated by inflation as mentioned in Note
3.2.
|
b)
|
The
inflation adjustment related to capital stock at the beginning of each
year, restated as mentioned in Note 3.2.; capital stock maintains its
nominal (par) value at each balance sheet
date.
|
c)
|
The
inflation adjustment related to the increase in capital stock restated as
mentioned in Note 3.2. This adjustment represents the effect of inflation
from the date on which the capital stock was increased to the end of each
fiscal year.
|
December
31,
2008
and 2007
|
||||
Adjustment
to equity fund appraisal revaluation
|
41,285 | |||
Adjustments
to capital stock (including Issuance Premiums)
|
728,619 | |||
Cumulative
losses absorption
|
(456,925 | ) | ||
Total
|
312,979 |
1.2.4.
|
Issuance
Premiums
|
1.3.
|
Responsibility
of stockholders
|
1.4.
|
Sale
of Credilogros Cía. Financiera S.A.
|
2.1.
|
In
controlled majority-owned
subsidiaries
|
Shares
|
Percentage
participation
|
|||||||||||||||||||||||||
Principal
Activity
|
Type
|
Quantity
|
Capital
|
Votes
|
||||||||||||||||||||||
December
31,
|
December
31,
|
December
31,
|
||||||||||||||||||||||||
Companies
|
2008
|
2007
|
2008
|
2007
|
2008
|
2007
|
||||||||||||||||||||
Francés
Valores Sociedad de Bolsa S.A
|
Stockbroker
|
Common
|
12,137 | 12,137 | 94.9687 | 94.9687 | 94.9687 | 94.9687 | ||||||||||||||||||
Atuel
Fideicomisos S.A.
|
Trust
manager
|
Common
|
13,099,869 | 13,099,869 | 99.9999 | 99.9999 | 99.9999 | 99.9999 | ||||||||||||||||||
Consolidar
A.F.J.P. S.A.
|
Pensions
fund manager
|
Common
|
75,842,839 | 75,842,839 | 53.8892 | 53.8892 | 53.8892 | 53.8892 | ||||||||||||||||||
Consolidar
Cía. de Seguros de Vida S.A.
|
Insurance
company
|
Common
|
7,383,921 | 7,383,921 | 65.9600 | 65.9600 | 65.9600 | 65.9600 | ||||||||||||||||||
Consolidar
Cía. de Seguros de Retiro S.A.
|
Insurance
company
|
Common
|
25,033,832 | 25,033,832 | 66.6666 | 66.6666 | 66.6666 | 66.6666 | ||||||||||||||||||
PSA
Finance Argentina Cía. Financiera S.A.
|
Financial
institution
|
Common
|
26,089 | 9,000 | 50.0000 | 50.0000 | 50.0000 | 50.0000 |
2.2.
|
Non-controlling
equity investments
|
Investment
|
Country
|
%
of Shares
Owned
|
Principal
Activity
|
Investment
in Other Subsidiaries
(in
thousands of pesos)
|
||||||
Rombo
Compañía Financiera S.A.
|
Argentina
|
40.00 | % |
Financial
institution
|
37,829.8 | |||||
Consolidar
ART S.A.
|
Argentina
|
12.50 | % |
Workers
compensation
|
21,748.0 | |||||
BBVA
Consolidar Seguros S.A.
|
Argentina
|
12.22 | % |
Insurance
|
9,977.9 | |||||
Coelsa
S.A.
|
Argentina
|
11.39 | % |
Clearing
house
|
101.7 | |||||
Interbanking
S.A.
|
Argentina
|
9.09 | % |
Information
services for financial markets
|
1,519.2 | |||||
Argencontrol
S.A.
|
Argentina
|
7.77 | % |
Agent
Mandatary
|
54.0 | |||||
Sedesa
S.A.
|
Argentina
|
13.06 | % |
Deposit
Guarantee Fund
|
130.1 | |||||
Banelco
S.A.
|
Argentina
|
10.91 | % |
Nationwide
ATM network & credit card administrating
|
6,229.8 | |||||
Visa
Argentina S.A.
|
Argentina
|
9.79 | % |
Credit
card issuer
|
9,976.2 |
3.1.
|
Basis
of presentation
|
-
|
As
of December 31, 2008, 2007 and
2006:
|
a)
|
With
the financial statements of Francés Valores Sociedad de Bolsa S.A., Atuel
Fideicomisos S.A. and its subsidiary and PSA Finance Argentina Cía.
Financiera S.A., for the fiscal years ended December 31, 2008, 2007 and
2006.
|
b)
|
With
the financial statements of Consolidar Administradora de Fondos de
Jubilaciones y Pensiones S.A., Consolidar Cía. de Seguros de Vida S.A.,
and Consolidar Cía. de Seguros de Retiro S.A., for the six-month periods
ended December 31, 2008, 2007 and
2006.
|
3.2.
|
Restatement
of the Financial Statements in equivalent purchasing
power
|
3.3.
|
Comparative
information
|
3.4.
|
Valuation
methods
|
3.4.1.
|
Foreign
currency assets and liabilities
|
3.4.2.
|
Governmental
and private securities
|
§
|
Holdings
for trading or financial transactions and instruments issued by the BCRA
(except Holdings available for sale): they were valued based on current
listed prices for each security as of December 31, 2008 and 2007.
Differences in listed prices were credited/charged to income for each
fiscal year.
|
§
|
Governmental
Securities for repurchase agreements with the Argentine Central Bank: they
were valued on the basis of the quotations in force at December 31, 2008.
Differences in listed prices were credited/charged to income for the
fiscal year.
|
§
|
Holdings
available for sale (Governmental Securities and Instruments issued by the
BCRA): according to Communication “A” 4702 dated August 30, 2007, the
Governmental Securities and Instruments issued by BCRA, included in the
list of volatilities published by the BCRA on a monthly basis, were
classified in the category "Available for
sale".
|
§
|
Unlisted
government securities: these bonds were valued at the lower of present or
technical values (including adjustment and accrued interest), as
established by Communication “A” 3911 as amended of the BCRA, less of the
estimated allowance to impairment value, which are carried in the books at
their fair realization values.
|
§
|
Unlisted
instruments issued by the BCRA: in accordance with the regulations issued
by the BCRA, this portfolio now reflects holdings that do not show the
volatility reported by the BCRA. As of December 31, 2008 and 2007, the
value of the holdings in accordance with the most recent quotation
informed rose on the basis of the interest accrued as per the internal
rate of return.
|
3.4.3.
|
Governmental
loans
|
3.4.4.
|
Benchmark
stabilization coefficient (CER)
|
§
|
Federal
government guaranteed loans have been adjusted under Resolution 50/2002 of
the Ministry of Economy, which resolved that the CER business 10 (ten)
days prior to the maturity date of the related service will be considered
for yield and repayments of the
loans.
|
§
|
Federal
Government Secured Bonds due in 2020: have been adjusted under Resolution
539/2002 of the Ministry of Economy, which resolved that the CER business
5 (five) days prior to the maturity date of the related service will be
considered for yield and repayment of the
bonds.
|
§
|
Deposits
and other assets and liabilities: have been adjusted considering the CER
prevailing as of December 31, 2008 and
2007.
|
|
3.4.5.
|
Allowance
for loans losses and contingent
commitments
|
3.4.6.
|
Interest
income recognition
|
3.4.7.
|
Unlisted
Corporate Bonds
|
3.4.8.
|
Instruments
to be received and to be delivered for spot and forward transactions to be
settled
|
§
|
In
foreign currency: as of December 31, 2008 and 2007, they were valued
according to the bench-mark exchange rate of the BCRA for each currency
determined on the last business day of the end of each fiscal
year.
|
§
|
Holdings
in investments:
|
-
|
Holdings
for trading transactions (Government and private securities) as well as
instruments issued by the BCRA: in accordance with the method described in
3.4.2 above.
|
-
|
Holdings
available for sale, instruments issued by the BCRA: in accordance with the
method described in Note 3.4.2.
|
3.4.9.
|
Amounts
receivable and payable for spot and forward transactions pending
settlement
|
3.4.10.
|
Assets
subject to financing leasing
|
3.4.11.
|
Investments
in other companies
|
§
|
Banelco
S.A., Consolidar A.R.T. S.A., Rombo Cía. Financiera S.A., BBVA Consolidar
Seguros S.A. and Interbanking S.A.: as of December 31, 2008 and 2007 were
valued by the equity method at the end of each fiscal
year.
|
§
|
VISA
Argentina S.A.: as of December 31, 2008 was valued by applying the equity
method on the basis of the financial statements of the issuer company as
of May 31, 2008 plus new capital contributions and dividend distribution
until December 31, 2008. As of December 31, 2007 was valued by the equity
method at the end of the fiscal
year.
|
§
|
Bladex
S.A.: as of December 31, 2008 and 2007 was valued at acquisition cost in
foreign currency plus the nominal value of stock dividends received,
converted into pesos based on the method described in
3.4.1.
|
§
|
Other:
as of December 31, 2008 and 2007 were valued at acquisition cost, without
exceeding their recoverable value.
|
3.4.12.
|
Premises
and equipment and Other assets
|
3.4.13.
|
Intangible
assets
|
|
3.4.14.
|
Derivative
transactions
|
(i)
|
Interest
rate swaps are recorded at the value resulting from the application of
rates differences to residual notional amounts at the end of each fiscal
year.
|
(ii)
|
Forward
transactions payable in Pesos without delivery of the underlying asset are
recorded for the amount receivable or payable, as appropriate, arising
from the difference between the agreed exchange rate and the exchange rate
at the end of each fiscal year as applied to stated notional
amounts.
|
3.4.15.
|
Time
deposits yielding variable income - Communication “A” 2482 and
supplemented:
|
3.4.16.
|
Employee
termination pay
|
3.4.17.
|
Other
liabilities
|
3.4.18.
|
Allowance
for other contingencies
|
3.4.19.
|
Stockholders’
equity accounts
|
3.4.20.
|
Statements
of Operations Accounts
|
§
|
As
of December 31, 2008 and 2007, accounts accruing monetary transactions
(financial income (expense), service charge income (expense), provision
for loan losses, administrative expenses, etc.) were computed on the basis
of their monthly accrual at historical
rates.
|
§
|
Accounts
reflecting the effect on income resulting from the sale, write-off, or use
of non-monetary assets were computed based on the value of such assets, as
mentioned in Note 3.2.
|
§
|
Income
from investments in subsidiaries was computed based on such companies’
income adjusted as explained in Note
3.2.
|
3.4.21.
|
Consolidated
Statements of Cash and Cash Equivalents
Flows
|
December
31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
a) Cash
and due from banks
|
4,243,080 | 3,169,314 | 2,558,484 | |||||||||
b) Government
securities held for trading or financial transactions
|
272,769 | 170,320 | 303,823 | |||||||||
c) Loans
to financial sector, calls granted maturity date less than three months as
from the end of the fiscal years
|
145,500 | 126,000 | 66,500 | |||||||||
CASH
AND ITS EQUIVALENTS
|
4,661,349 | 3,465,634 | 2,928,807 |
3.4.22.
|
Other
assets and other liabilities from subsidiaries (Consolidar
Group)
|
3.4.23.
|
Use
of estimates
|
4.1.
|
Valuation
criteria
|
a)
|
National Government
Secured Loans
|
b)
|
Effects caused by
court measures related to deposits (constitutional protection
actions)
|
c)
|
Tax
effects
|
d)
|
Derivative financial
instruments
|
4.2.
|
Aspects
related to disclosure of
information
|
4.3.
|
Other
differences with respect to generally accepted accounting principles
effective in Buenos Aires City, related to
subsidiaries
|
a)
|
Consolidar
A.F.J.P. S.A.: as of December 31, 2007, the intangible assets, whose book
value amounted to 8,745, were amortized in accordance with the standards
of the A.F.J.P.'s Superintendence.
|
b)
|
Consolidar
A.F.J.P. S.A., Consolidar Cía. de Seguros de Retiro S.A. and Consolidar
Cía. de Seguros de Vida S.A.: loans secured by the National Government -
Decree 1387/01 held by these subsidiaries amounting to 1,034,959 and
952,106 as of December 31, 2008 and 2007, were valued in accordance with
the regulations of the Superintendence of Pension Fund Administrators
(A.F.J.P) and the National Superintendence of
Insurance.
|
c)
|
Consolidar
Cía. de Seguros de Retiro S.A.: the portfolio of Government securities in
investment accounts has been booked in accordance with the standards of
the National Superintendence of
Insurance.
|
d)
|
Consolidar
Cía. de Seguros de Retiro S.A. and Consolidar Cía de Seguros de Vida S.A.:
a part of its portfolio of instruments issued by the BCRA has been
recorded in investment accounts, and they have been valued as per
Communication “A” 4698 of the BCRA. The net difference with the market
values as of December 31, 2008 and 2007 amounted to 7,011 (loss) and 117
(income), respectively.
|
e)
|
The
items included under the captions Subsidiaries’ other assets and
Subsidiaries’ other liabilities were valued in accordance with the
regulations of the National Superintendence of
Insurance.
|
f)
|
Consolidar
Cía de Seguros de Retiro S.A.: the Company included the balance from the
technical commitments incurred with the insured in the Other Liabilities
caption. The abovementioned caption includes 13,084 and 22,099 at December
31, 2008 and 2007, respectively, corresponding to the regularizing account
called “Unaccrued secured loans valuation difference” which, as
established by the National Superintendence of Insurance, will be settled
through subsequent accrual of the regularizing accounts of secured loans.
In accordance with professional accounting standards currently in force in
the City of Buenos Aires, such amount should have been recorded as a loss
for the year ended December 31,
2003.
|
g)
|
The
commissions paid by PSA Finance Argentina Cía Financiera S.A. to dealers
for granting financing to companies and to the public in general in
connection with purchases and sales of automobiles, which in accordance
with the rules established by the Argentine Central Bank are charged to
the Income Statement, should be accrued throughout the duration of the
loans generated by said dealers in accordance with currently applicable
professional accounting standards. Had this criterion been applied,
shareholders’ equity would have been increased by 5,720 and 3,115 at the
close of each fiscal year.
|
h)
|
Upon
booking the effects of the interest rate swaps as of December 31, 2008 and
2007, Consolidar Cía de Seguros de Retiro S.A. abided by the rules
established by the National Superintendence of Insurance. Had the
currently applicable professional accounting standards been applied, the
shareholders’ equity in the Consolidated Financial Statements would have
been increased by 3,950 and 2,550 at the close of each fiscal
year.
|
5.1.
|
Income
tax
|
December
31,
|
||||||||
2008
|
2007
|
|||||||
Deferred
tax assets
|
534,394 | 981,455 | ||||||
Deferred
tax liabilities
|
(340,842 | ) | (925,955 | ) | ||||
Net
deferred assets
|
193,552 | 55,500 | ||||||
Allowance
|
(193,552 | ) | (55,500 | ) |
5.2.
|
Tax
on minimum presumed income
|
5.3.
|
Other
tax issues
|
a)
|
The
Argentine Public Revenue Administration (“AFIP” for its Spanish acronym)
inspected open tax periods and the Bank received ex officio assessments,
which were appealed before the Argentine Administrative Tax Court. Such
Court, to the issuance date of these financial statements, issued and
opinion on the ex officio assessment made in 1992 and 1993, partially
admitting the claim of tax authorities. On June 18, 2002 the Bank decided
to appeal the ruling of 1992 with the Court of Appeals, where it is being
treated at present.
|
b)
|
On
October 24, 2007, the Bank was notified by the Tax Bureau of the City of
Buenos Aires of the commencement of a sua sponte tax assessment on a
certain basis and partial in nature of the taxable income as regards
turnover tax for the fiscal years 2002 and
2003.
|
2008
|
2007
|
|||||||
a)
GOVERNMENT AND PRIVATE SECURITIES
|
||||||||
Holdings in investment
accounts
|
||||||||
Discount
Bonds in pesos
|
345,449 | 310,956 | ||||||
Federal
Government Bonds LIBOR 2014
|
40,961 | 34,927 | ||||||
Federal
Government Bonds in Pesos 10.5 % due in 2012
|
24,597 | 24,949 | ||||||
Federal
Government Bonds in Pesos Badlar + 350 bp due in 2013
|
28,809 | — | ||||||
Discount
Bonds in US dollar
|
56,768 | — | ||||||
Federal
Government Bonds due in 2015
|
27,939 | — | ||||||
BCRA
Notes (NOBAC)
|
371,274 | 176,882 | ||||||
Federal
Government Bocon PRE9
|
38,285 | — | ||||||
Federal
Government Bocon PRO12
|
14,819 | — | ||||||
Federal
Government Bocon PRO13
|
6,633 | — | ||||||
Total
|
955,534 | 547,714 | ||||||
Holdings for trading
or financial transactions
|
||||||||
Federal
Government Bonds LIBOR 2012
|
16,627 | 29,720 | ||||||
Federal
Government Bonds LIBOR 2013
|
4,805 | 3,583 | ||||||
Buenos
Aires City Bond
|
3,043 | 3,563 | ||||||
Discount
Bonds in pesos
|
18,527 | 50,615 | ||||||
Discount
Bonds in US dollar
|
255 | 2,805 | ||||||
Peso-denominated
GDP-related securities
|
410 | 11,607 | ||||||
Cuasipar
Bonds in pesos
|
5,433 | 6,365 | ||||||
Secured
Bonds due in 2018
|
880 | 16,422 | ||||||
Federal
Government Bocon PRE8
|
969 | 11,520 | ||||||
Federal
Government Bocon PRE9
|
4,421 | 6,900 | ||||||
Bonds
issued by the Republic of Austria
|
20,924 | — | ||||||
Treasury
Notes
|
163,257 | — | ||||||
Guaranteed
Bonds issued by the Government of San Juan at 13.25%
|
15,416 | — | ||||||
Federal
Government Bonds in US dollar 7% due in 2011
|
6,029 | 8,873 | ||||||
Federal
Government Bonds in Pesos 10.5 % due in 2012
|
— | 3,105 | ||||||
Other
|
11,773 | 15,242 | ||||||
Total
|
272,769 | 170,320 |
2008
|
2007
|
|||||||
Government Securities
for repurchase agreements with the Argentine Central
Bank
|
||||||||
Bonar
VII
|
334,688 | — | ||||||
334,688 | — | |||||||
Holdings available for
sale
|
||||||||
Secured
Bonds due in 2018
|
26,456 | 73,284 | ||||||
Federal
Government Bocon PRO12
|
65,213 | 166,229 | ||||||
BCRA
Notes (NOBAC)
|
485,833 | 1,133,071 | ||||||
Total
|
577,502 | 1,372,584 | ||||||
Unlisted government
securities
|
||||||||
Secured
Bonds due in 2020
|
987,550 | 903,897 | ||||||
Federal
Government Bonds in Pesos Badlar + 350 bp due in 2013
|
14,881 | — | ||||||
Others
|
2,402 | 6 | ||||||
Total
|
1,004,833 | 903,903 | ||||||
Instruments issued by
the Argentine Central Bank
|
||||||||
BCRA
Bills (LEBAC)
|
1,267,667 | 140,068 | ||||||
BCRA
Notes (NOBAC)
|
1,409,020 | 1,865,723 | ||||||
Total
|
2,676,687 | 2,005,791 | ||||||
Investments in listed
private securities
|
||||||||
Telefónica
de Argentina S.A. Corporate Bonds
|
2,428 | 2,269 | ||||||
Telecom
Personal Corporate Bonds
|
— | 4,994 | ||||||
Camuzzi
Gas Pampeana Corporate Bonds
|
5,114 | 10,096 | ||||||
Grupo
Concesionario del Oeste Corporate Bonds
|
7,893 | 9,985 | ||||||
Tarjeta
Cuyana Corporate Bonds
|
4,009 | 6,459 | ||||||
Gas
Natural Ban Corporate Bonds
|
10,717 | — | ||||||
Banco
Macro Corporate Bonds
|
2,171 | 2,538 | ||||||
Petrobras
Energía S.A. Corporate Bonds
|
5,004 | 1,429 | ||||||
Fideicomiso
de Gas
|
17,357 | 30,629 | ||||||
Tarjeta
Naranja Trust
|
8,045 | 11,820 | ||||||
Radar
Financial Trust
|
39,250 | 36,788 | ||||||
Galtrust
1 Financial Trust
|
3,990 | 10,333 | ||||||
Garbarino
Financial Trust
|
— | 4,349 | ||||||
Secubono
Financial Trust
|
— | 9,153 | ||||||
Cía.
Financiera Argentina Financial Trust
|
— | 12,033 | ||||||
Tenaris
|
551 | 3,160 | ||||||
Telecom
|
1,481 | 5,197 | ||||||
FBA
Bonos Argentina
|
3,950 | 2,019 | ||||||
FBA
Ahorro Pesos
|
2,700 | 1,671 | ||||||
1784
Inversión Pesos FCI
|
— | 2,853 | ||||||
Pionero
Pesos FCI
|
— | 10,015 | ||||||
HF
Pesos Clase I FCI
|
— | 6,364 | ||||||
FBA
Renta Pesos
|
42,608 | — | ||||||
Rembrandt
Amor Pesos FCI
|
— | 11,016 | ||||||
Other
|
7,126 | 46,773 | ||||||
Sub-Total
|
164,394 | 241,943 | ||||||
Allowances
|
(752,747 | ) | (61,002 | ) | ||||
Total
|
5,233,660 | 5,181,253 |
2008
|
2007
|
|||||||
b)
LOANS – Other
|
||||||||
Loans
granted to pre-finance and finance exports
|
1,381,330 | 1,497,988 | ||||||
Fixed-rate
financial loans
|
669,047 | 904,117 | ||||||
Other
|
323,099 | 264,738 | ||||||
Total
|
2,373,476 | 2,666,843 | ||||||
c)
INVESTMENTS IN OTHER COMPANIES – Others
|
||||||||
In
other non-controlled companies- unlisted
|
31,726 | 30,586 | ||||||
In
non-controlled companies-supplementary activities
|
26,171 | 15,801 | ||||||
Other
– unlisted
|
47 | 43 | ||||||
Total
|
57,944 | 46,430 | ||||||
d)
OTHER RECEIVABLES – Others
|
||||||||
Prepayments
|
33,381 | 46,200 | ||||||
Guarantee
deposits
|
33,936 | 25,551 | ||||||
Miscellaneous
receivables
|
95,197 | 60,226 | ||||||
Tax
prepayments (*)
|
246,457 | 93,647 | ||||||
Other
|
23,217 | 59,384 | ||||||
Total
|
432,188 | 285,008 | ||||||
(*)
As of December 31, 2008 and 2007, it includes the deferred tax asset for
193,552 and 55,500 respectively (see Note 5.1).
|
||||||||
e)
OTHER SUBSIDIARIES’ ASSETS
|
||||||||
Others
related to insurance business
|
1,438 | 450 | ||||||
Total
|
1,438 | 450 | ||||||
f)
OTHER LIABILITIES FROM FINANCIAL
|
||||||||
TRANSACTIONS
– Other
|
||||||||
Correspondents
– our account
|
11,909 | 146,540 | ||||||
Collections
and other operations for the account of third parties
|
392,840 | 25,925 | ||||||
Other
withholdings and collections at source
|
115,131 | 104,883 | ||||||
Accounts
payable for consumption
|
201,343 | 140,105 | ||||||
Money
orders payable
|
125,811 | 244,410 | ||||||
Loans
received from Argentine Technological Fund (FONTAR)
|
39,951 | 20,623 | ||||||
Loans
received from Interamerican Development Bank (BID)
|
48,520 | 57,738 | ||||||
Pending
Banelco debit transactions
|
23,807 | 11,220 | ||||||
Other
|
101,192 | 45,783 | ||||||
Total
|
1,060,504 | 797,227 | ||||||
g)
OTHER LIABILITIES – Other
|
||||||||
Salaries
and payroll taxes
|
199,772 | 194,226 | ||||||
Taxes
|
113,509 | 79,813 | ||||||
Miscellaneous
payables
|
110,609 | 91,845 | ||||||
Other
|
5,130 | 8,997 | ||||||
Total
|
429,020 | 374,881 |
2008
|
2007
|
|||||||
h)
OTHER SUBSIDIARIES’
LIABILITIES
|
||||||||
Insurance
companies, claims in adjustment process
|
— | 94,013 | ||||||
Fluctuation
fund – Consolidar Cía. de Seguros de Retiro S.A.
|
140,119 | 138,480 | ||||||
Insurance
companies, mathematical reserve
|
2,232,779 | 1,896,586 | ||||||
Difference
arising from secured loans accrued valuation Consolidar
|
(13,084 | ) | (22,099 | ) | ||||
Others
related to insurance business
|
50,297 | 39,751 | ||||||
Total
|
2,410,111 | 2,146,731 | ||||||
i)
DEBIT ACCOUNTS – Control – Others
|
||||||||
Items
in safekeeping
|
8,015,275 | 9,433,738 | ||||||
Collections
items
|
660,981 | 579,318 | ||||||
Checks
drawn on the Bank pending clearing
|
213,423 | 223,112 | ||||||
Checks
not yet credited
|
832,783 | 786,562 | ||||||
Securities
representative of investment in escrow on behalf of the
Pension
Fund Manager
|
16,151,027 | 20,993,983 | ||||||
Other
|
76,901 | 62,182 | ||||||
Total
|
25,950,390 | 32,078,895 |
2008
|
2007
|
2006
|
||||||||||
j)
SERVICE CHARGE EXPENSE - Others
|
||||||||||||
Turnover
tax
|
47,638 | 34,175 | 27,574 | |||||||||
Other
|
16,530 | 10,381 | 6,087 | |||||||||
Total
|
64,168 | 44,556 | 33,661 | |||||||||
k)
OTHER INCOME - Others
|
||||||||||||
Premiums
– Insurance companies
|
314,807 | 299,659 | 181,662 | |||||||||
Rent
|
1,668 | 2,038 | — | |||||||||
Income
from the sale of fixed and miscellaneous assets
|
10,825 | 1,092 | 1,191 | |||||||||
Related
parties expenses recovery
|
5,587 | 6,100 | — | |||||||||
Deferred
income tax (1)
|
138,052 | 55,500 | (3) | — | ||||||||
Others
|
47,180 | 19,276 | 24,566 | |||||||||
Total
|
518,119 | 383,665 | 207,419 | |||||||||
(1)
Offset by a charge of the same amount in the line Charge for
uncollectibility of other allowances under the caption Other Expense
item.
|
||||||||||||
l)
OTHER EXPENSE – Others
|
||||||||||||
Insurance
companies, mathematical reserve
|
355,643 | 357,063 | 246,181 | |||||||||
Life
Annuities – Consolidar Cía. de Seguros de Retiro
|
147,389 | 119,971 | 98,279 | |||||||||
Tax
on bank credits and debits
|
40,714 | 33,064 | 24,189 | |||||||||
Deferred
tax expenses (2)
|
— | 337,000 | (3) | 23,000 | ||||||||
Insurance
premiums for disability and death
|
42,780 | 884 | — | |||||||||
Claims
paid – Insurance companies
|
(5,042 | ) | 200,459 | 192,122 | ||||||||
Others
|
98,826 | 44,916 | 24,885 | |||||||||
Total
|
680,310 | 1,093,357 | 608,656 | |||||||||
(2)
As of December 31, 2007, the recovery of this amount had been
booked in the line Loans recovered and reversals of
allowances.
|
||||||||||||
(3)
Net change for deferred tax amounts
281,500.
|
a)
|
The
Government and Private Securities account includes 25,725 in Guaranteed
Bonds maturing in 2018 and 24,590 in Federal Government Bocon PRO12,
allocated to the guarantee required to act as custodian of investment
securities related to pension
funds.
|
b)
|
The
Bank appropriated loan funds of its active portfolio in an amount of 1,382
to secure debts with the BCRA.
|
c)
|
The
Bank appropriated BCRA Notes (Badlar), in an amount of 133,430 to secure
loans arranged under the Credit Global Program given by the Banco
Interamericano de Desarrollo
(B.I.D.).
|
d)
|
Francés
Valores Sociedad de Bolsa S.A. (stock broking company) holds shares of
Mercado de Valores de Buenos Aires S.A, booked in the amount of 8,000.
These shares have been pledged in favor of “CHUBB Argentina de Seguros
S.A.” in security of the contract this insurance company executed with
Mercado de Valores de Buenos Aires S.A. to cover the latter’s guaranteeing
any noncompliance of stock broking companies with their
obligations.
|
9.1.
|
Financial
Trusts
|
§
|
Fideicomiso
Corp. Banca: it was created by an agreement dated May 13, 1997, executed
by Atuel Fideicomisos S.A. as trustee, Corp. Banca S.A. (later BBVA Banco
Francés S.A.) as trustor and beneficiary, the Argentine Central Bank and
Seguro de los Depósitos S.A. as
beneficiaries.
|
§
|
Maginot
Financial Trust: on September 26, 2008 a trust indenture was executed
between BBVA Banco Francés S.A., as trustee, and Atuel Fideicomisos S.A.
as trustor and beneficiary.
|
9.2.
|
Non-Financial
Trusts
|
§
|
Transactions
as of December 31, 2008:
|
-
|
Interest
rate swaps for 47,000 (Fixed Rate versus Badlar), maturing within a period
not exceeding 2 years for which the Bank pays a variable amount in
accordance with changes in the Badlar, Encuesta rate, and receives a fixed
amount based on stated notional amounts and interest rate swaps for 5,000
(Badlar versus Fixed Rate) maturing within a period not exceeding 2 years,
for which the Bank pays a fixed amount and receives a variable amount
based on the changes in the Badlar
rate.
|
-
|
Interest
rate swaps for 33,650 (Fixed Rate versus Badlar), maturing within a period
not exceeding 2 years and 70,000, with final maturity in august 2019, for
which the Bank pays a variable amount in accordance with changes in the
Badlar, “Encuesta rate”, and receives a fixed amount based on stated
notional amounts.
|
-
|
Non-deliverable
forward purchase and sale transactions in foreign currency payable in
Pesos, maturing within a period not exceeding 1 year, for 1,446,615 and
1,454,414, which are recorded under “Memorandum Accounts - Debit accounts
- Derivatives - Notional amount of non-deliverable forward transactions”,
and “Memorandum accounts - Credit accounts - Derivatives - Notional amount
of non-deliverable forward transactions”,
respectively.
|
-
|
Put
options bought for 5,850 and put options written for 5,265 agreed as
hedging for the Entity’s borrowing position in connection with term
investments yielding variable income conducted by
customers.
|
§
|
Transactions
as of December 31, 2007:
|
-
|
Interest
rate swaps for 232,000 (Fixed Rate versus Badlar), maturing within a
period not exceeding 3 years, for which the Bank pays a variable amount in
accordance with changes in the Badlar, Encuesta rate, and receives a fixed
amount based on stated notional amounts and interest rate swaps for 60,000
(Badlar versus Fixed Rate) maturing within a period not exceeding 3 years,
for which the Bank pays a fixed amount and receives a variable amount
based on the changes in the Badlar
rate.
|
-
|
Non-deliverable
forward purchase and sale transactions in foreign currency payable in
Pesos, maturing within a period not exceeding 1 year, for 1,164,392 and
1,289,267, which are recorded under “Memorandum Accounts - Debit accounts
- Derivatives - Notional amount of non-deliverable forward transactions”,
and “Memorandum accounts - Credit accounts - Derivatives - Notional amount
of non-deliverable forward transactions”,
respectively.
|
12.1.
|
Compliance
with the requirements to act as agent in the over-the-counter
market
|
12.2.
|
Investment
Funds custodian
|
December
31,
|
||||||||
Name
of Mutual Fund
|
2008
|
2007
|
||||||
FBA
Acciones Globales
|
39,748 | 136,139 | ||||||
FBA
Total
|
7,905 | 10,863 | ||||||
FBA
Renta
|
10,200 | 12,645 | ||||||
FBA
Renta Pesos
|
502,232 | 298,951 | ||||||
FBA
Renta Dólares
|
4,302 | 4,233 | ||||||
FBA
Bonos
|
5,950 | 8,832 | ||||||
FBA
Calificado
|
35,773 | 213,601 | ||||||
FBA
Internacional
|
365 | 497 | ||||||
FBA
Ahorro Dólares
|
11,368 | 11,730 | ||||||
FBA
Renta Fija
|
11,434 | 16,214 | ||||||
FBA
Ahorro Pesos
|
24,663 | 128,507 | ||||||
FBA
Renta Premium
|
5,051 | 6,755 | ||||||
FBA
Europa
|
2,001 | 4,770 | ||||||
FBA
Horizonte
|
8,166 | 27,847 | ||||||
FBA
EEUU
|
1,372 | 1,323 | ||||||
FBA
Renta Corto Plazo
|
544 | 495 | ||||||
FBA
Acciones Latinoamericanas
|
14,888 | 44,268 | ||||||
FBA
Bonos Argentina
|
8,563 | 8,069 | ||||||
FBA
Brasil
|
14,054 | 2,992 | ||||||
FBA
México
|
653 | 979 | ||||||
FBA
Commodities
|
36 | 50 | ||||||
FBA
Acciones Argentinas
|
228 | 485 | ||||||
FBA
Bonos Globales
|
52 | 50 | ||||||
Total
|
709,548 | 940,295 |
a)
|
On
March 28, 2008, the Argentine Central Bank, through its Case File No.
6731/08 authorized 164,000 to cash dividends distribution. In addition,
the Ordinary and Extraordinary Shareholders’ Meeting held on that date
approved the allocation of earnings as
follows:
|
-
|
To
Statutory Reserve: 47,010.
|
-
|
To
cash dividends: 164,000
|
b)
|
In
accordance with Communication “A” 4664, issued on May 11, 2007, as amended
and supplemented, of “Distribution of Income”, for purposes of calculating
the earnings subject to distribution, off-balance sheet deductions must be
performed from the Unappropriated retained earnings as set forth in Note
3.2. of said Communication. In addition, the authorization of the
Superintendent of Financial and Exchange Institutions shall be required in
order to verify that the procedure established in said resolution for
earnings distribution has been properly
applied.
|
-
|
Dividends
in cash for the total amount of
Ps.35,000.
|
-
|
Issuance
of new shares thus increasing the corporate capital for a total amount of
Ps.65,000.
|
c)
|
In
accordance with the provisions of BCRA, the next Shareholders' Meeting
must appropriate the amount of 64,302 currently included under
Unappropriated earnings to the Statutory
Reserve.
|
a)
|
Reforms
introduced by Law No. 26,222:
|
-
|
The
possibility for the affiliates of choosing until January 15, 2008 to
adhere to the pay-as-you-go scheme managed by the Argentine
State;
|
-
|
As
from April 1, 2007, workers who within 90 days from the commencement of
their labor relation have not chosen a social security regime shall be
presumed to have chosen the pay-as-you-go system managed by the Argentine
State;
|
-
|
Men
older than 55 and women older than 50, who are currently affiliated to the
capitalization system and whose balances in the individually funded
account do not exceed 20,000 pesos shall be transferred to the
pay-as-you-go system unless they expressly state their intent to remain
affiliated to the capitalization
system;
|
-
|
The
restriction of the commission charged by the pension fund managers for
managing affiliates’ contributions to 1% of the basis used to calculate
such commissions. The commission thus determined applies to the salaries
accrued as from April 2007. Until such date, the commission that
Consolidar A.F.J.P. S.A. charged was
1.24%;
|
-
|
Increase
the maximum of the basis used to determine the social security
contributions and commissions from 4,800 pesos to 6,000 pesos concerning
the salaries accrued as from April 1, 2007. It must be noted that on
October 4, 2007, Decree No. 1346 of the Argentine Executive Branch raised
such maximum to 6,750 pesos for salaries accrued as from September 1,
2007. Afterwards, on February 19, 2008, Decree No. 279/2008 issued by the
Argentine Executive Branch increased such maximum to 7,256 pesos for the
personal contributions paid by workers in a labor relationship as from
June 1, 2008 and to 7,800 pesos for the personal contributions paid by the
self-employed as from July 1, 2008;
|
-
|
The
establishment starting on January 1, 2008 of a fund of mutual
contributions with the resources of the pension fund for purposes of
ensuring the full financing of the benefits for temporary disability
retirement, supplementary capitals and reconstruction corresponding to the
capitalization regime and
|
-
|
To
apply a percentage ranging from 5% to 20% of the assets held in the
pension funds to investments in production or infrastructure projects for
the medium and long terms.
|
b)
|
Argentine
Unified Social Security System:
|
-
|
The
ordinary pension benefits, disability benefits and death benefits
previously calculated and paid by Pension Fund Managers (AFJP) have been
taken over by the National Administration of Social Security (“ANSES” for
its Spanish acronym) starting with the accrued benefits corresponding to
the month of December 2008;
|
-
|
The
resources held in the individual capitalization accounts of the members
and beneficiaries of the capitalization regime of the former Integrated
Retirement and Pension System are to be transferred to the Public
Social-Security Regime Sustainability Guaranty Fund in exactly the same
assets in which they had been invested, with ANSES becoming the sole and
only holder of such assets and rights;
and
|
-
|
Those
who are currently holders of individual capitalization accounts will be
able to transfer the deposits held in such accounts that they have
voluntarily made as well as those amounts that are mandatorily deposited
therein to ANSES or to a Pension Fund Manager, with the latter being under
a duty to reconvert through a change in their corporate purposes to
continue to operate. Any compensations that should be payable to
|
-
|
The
contributions corresponding to the salaries paid to workers who were
members of the individual capitalization regime have been referred to
ANSES as from December 1, 2008 and
|
-
|
The
requests for social security benefits as well as any claim or other
request (either new or pending resolution) made by persons who were
members of a Pension Fund Manager are now managed by
ANSES.
|
c)
|
Merger
between Consolidar Compañía de Seguro de Retiro S.A. and Consolidar
Compañía de Seguros de Vida S.A.:
|
December
31,
|
||||||||
2008
|
2007
|
|||||||
Consolidar
Administradora de Fondos de Jubilaciones y Pensiones S.A.
|
109,429 | 126,305 | ||||||
Consolidar
Cía. de Seguros de Vida S.A.
|
69,122 | 65,736 | ||||||
Consolidar
Cía. de Seguros de Retiro S.A.
|
34,980 | 29,494 | ||||||
Francés
Valores Sociedad de Bolsa S.A.
|
528 | 470 | ||||||
Atuel
Fideicomiso S.A.
|
1 | 3 | ||||||
PSA
Finance Argentina Cía. Financiera S.A.
|
34,079 | 14,010 | ||||||
248,139 | 236,018 | |||||||
COMPUTABLE
COMPLIANCE PESOS
|
|||||
Cash
|
447,953
|
(*)
|
|||
Special Guarantee
Accounts
|
117,859
|
||||
BCRA Checking
Account
|
1,238,217
|
||||
Cash in valuables’
transportation
|
346,748
|
(*)
|
|||
Franchises
|
177,988
|
||||
TOTAL
|
2,328,765
|
||||
COMPUTABLE COMPLIANCE
IN US DOLLARS (Stated in Pesos)
|
|||||
Cash
|
155,942
|
(*)
|
|||
BCRA Checking
Account
|
1,855,383
|
||||
Cash in
transit
|
1,830
|
(*)
|
|||
Cash in valuables’
transportation
|
52,232
|
(*)
|
|||
TOTAL
|
2,065,387
|
||||
COMPUTABLE
COMPLIANCE IN EUROS (Stated in Pesos)
|
|||||
Cash
|
47,278
|
(*)
|
|||
BCRA Checking
Account
|
32,265
|
||||
Cash in
transit
|
44
|
(*)
|
|||
Cash in valuables’
transportation
|
12,554
|
(*)
|
|||
TOTAL
|
92,141
|
||||
(*)
|
Only
67% of these balances are admitted as
compliance.
|
a)
|
Credit
Risk
|
-
|
Verify
the client sufficient income-generation sources and an adequate financial
structure to face the commitments to repay principal and interest of the
owned receivables within the terms
agreed.
|
-
|
Adequate
and sufficient guarantees must to allow the loans
recovery.
|
-
|
Adequate
knowledge of the client so that the decision-making officials are
sufficiently confident and secure when they decide to grant the
loan.
|
-
|
Balance
and correlation between the use of the proceeds, the amount, the term and
the manner to repay the loan based on the client´s generation of resources
and the guarantees.
|
-
|
The
activities carried on by the client must be identified so that the client
can be assigned to the appropriate classification of sectors of the
economy assessing its positioning and growth
expectations.
|
-
|
Permanent
consulting for hints of junctures in the policies currently in force in
each sector for an adequate response in line with the general investment
or divestiture guidelines in a sector or sub-sector of the economy,
amongst others.
|
b)
|
Market
Risk
|
-
|
Identifying
the Business Units within the Entity that carry out transactions entailing
market risks, which should thus be included in the corporate applications
of measurement and control risk.
|
-
|
Monitor
on a daily basis compliance with the risk limits and policies of the
Business Units
|
c)
|
Liquidity
Risk
|
d)
|
Operational
Risk
|
-
|
To
assess the degree of mitigation activity implemented in the various
areas
|
-
|
To
verify that the measures have been adopted in accordance with priority
criteria for the mitigation of risk
factors.
|
-
|
To
ensure that the contingency plans and service continuity defined by the
various business units or supporting areas have been properly implemented
and updated to reduce the risk of certain high-impact risk
factors.
|
19.1.
|
Transactions
with related parties
|
Balance
Sheet
|
Memorandum Accounts
(1)
|
|||||||||||||||||||||||
Assets
|
Liabilities
|
|||||||||||||||||||||||
Company
|
2008
|
2007
|
2008
|
2007
|
2008
|
2007
|
||||||||||||||||||
BBVA
S.A.
|
28,129 | 5,858 | 2,510 | 4,809 | 25,029 | 30,438 | ||||||||||||||||||
Consolidar
A.R.T. S.A.
|
98 | 58 | 134,150 | 87,282 | 491,433 | 389,552 | ||||||||||||||||||
BBVA
Consolidar Seguros S.A.
|
5,737 | 33 | 28,492 | 10,225 | 98,334 | 56,971 | ||||||||||||||||||
Rombo
Cía. Financiera S.A.
|
133,873 | 150,408 | 6,664 | 846 | 47,000 | 82,000 | ||||||||||||||||||
Inversora
Otar S.A.
|
107 | — | 78 | 347 | 168,344 | 375,513 | ||||||||||||||||||
Consolidar
Salud S.A.
|
— | — | — | 55 | — | — | ||||||||||||||||||
Consolidar
Comercializadora S.A.
|
136 | — | 8,531 | — | 796 | — |
(1)
|
Includes
items in safekeeping, Credit lines granted (unused portion) covered by
debtor classification regulations, Guaranties given covered by debtor
classification regulations and derivates
transactions.
|
Net Income (1)
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Income
|
101,916 | 89,416 | 62,807 | |||||||||
Expenses
|
28,045 | (2,658 | ) | (9,117 | ) | |||||||
73,871 | 86,758 | 53,690 | ||||||||||
(1)
|
All
the concerted operations have been contracted according with market’s
conditions.
|
19.2.
|
Minimum
cash balances and restricted
deposit
|
December
31,
|
||||||||
2008
|
2007
|
|||||||
Peso
and Foreign Currency Balances
|
2,789,726 | 2,288,590 |
19.3.
|
Interest-bearing
deposits with other banks
|
a)
|
Included
in “Cash and Due from Banks” there are: (1) interest-bearing deposits with
the BCRA totaling 3,127,010 and 2,102,642 as of December 31, 2008 and
2007, respectively; (2) interest-bearing deposits in foreign banks
totaling 1,246 and 30,452 as of December 31, 2008 and 2007, respectively,
and (3) interest-bearing deposits in local banks totaling 1,218 and 1,092
as of December 31, 2008 and 2007,
respectively.
|
b)
|
Included
in “Loans” there are: overnight foreign bank interest-bearing deposits
totaling 101,704 and 129,661 as of December 31, 2008 and 2007,
respectively.
|
c)
|
Included
in “Other Receivables from Financial Transactions” there are other
interest-bearing deposits with the BCRA totaling 117,859 and 108,697 as of
December 31, 2008 and 2007,
respectively.
|
19.4.
|
Securities
holdings in investment accounts and available for sale under BCRA’s
rules
|
December 31, | ||||||||||||||||||||||||||||||||
2008 | 2007 | 2008 | 2007 | 2008(*) | 2007(*) | 2008 | 2007 | |||||||||||||||||||||||||
Book
value
|
Gross
unrealized
gains |
Gross
unrealized
losses |
Market
value
|
|||||||||||||||||||||||||||||
Debt
Consolidation Bonds - Social Security (BOCON)
|
59,737 | — | — | — | 36,072 | — | 23,665 | — | ||||||||||||||||||||||||
Argentine
Governments Bonds
|
524,523 | 370,832 | — | — | 225,431 | 50,391 | 299,092 | 320,441 | ||||||||||||||||||||||||
Argentine
Central Bank Notes
|
371,274 | 176,882 | — | 334 | 1,858 | — | 369,416 | 177,216 | ||||||||||||||||||||||||
Total
|
955,534 | 547,714 | — | 334 | 263,360 | 50,391 | 692,174 | 497,657 |
December
31, 2008
|
||||||||
Book
value
|
Market
value
|
|||||||
Due
in one year or less
|
9,384 | 3,971 | ||||||
Due
after one year through five years
|
482,698 | 460,443 | ||||||
Due
after five years through ten years
|
54,602 | 36,334 | ||||||
Thereafter
|
408,850 | 191,426 | ||||||
Total
|
955,534 | 692,174 |
December
31, 2008
|
||||||||
Amortized
cost
|
Market
value
|
|||||||
Due
in one year or less
|
352,496 | 335,029 | ||||||
Due
after one year through five years
|
309,953 | 212,452 | ||||||
Due
after five years through ten years
|
96,172 | 30,021 | ||||||
Thereafter
|
— | — | ||||||
Total
|
758,621 | 577,502 |
19.5.
|
Loans
|
December
31,
|
||||||||
2008
|
2007
|
|||||||
Government
sector
|
2,400,511 | 2,367,869 | ||||||
Financial
sector
|
598,755 | 541,911 | ||||||
Non-financial
private sector and residents abroad
|
9,704,814 | 8,679,162 | ||||||
—Commercial
portfolio
|
||||||||
With
self-liquidating preferred guarantees
|
67,365 | 90,375 | ||||||
With
other preferred guarantees
|
118,017 | 107,790 | ||||||
Without
preferred guarantees
|
4,514,478 | 4,942,315 | ||||||
—Consumer
portfolio
|
||||||||
With
self-liquidating preferred guarantees
|
6,506 | 7,389 | ||||||
With
other preferred guarantees
|
1,202,805 | 724,817 | ||||||
Without
preferred guarantees
|
3,795,643 | 2,806,476 | ||||||
Less:
Difference arising from purchase of portfolio
|
(102 | ) | (93 | ) | ||||
Less:
Allowances for loan losses
|
(196,489 | ) | (198,728 | ) | ||||
Total
|
12,507,489 | 11,390,121 |
Industry Segment
|
Percentage
of
Total Loans
|
|||
Consumer
|
33.62 | % | ||
Other
|
21.39 | % | ||
Governmental
Services
|
18.90 | % | ||
Financial
Sector
|
4.71 | % | ||
Retail
Trade
|
2.79 | % | ||
Wholesale
Trade
|
2.51 | % | ||
Agricultural
and Livestock
|
2.45 | % | ||
Oil
and Carbon
|
2.39 | % | ||
Food
Stuff
|
2.09 | % | ||
Mining
Products
|
2.08 | % | ||
Industrial
Metals
|
2.04 | % | ||
Beverage
|
1.30 | % | ||
Construction
|
1.01 | % | ||
Transportation
Material
|
0.76 | % | ||
Other
Manufacturing
|
0.75 | % | ||
Electricity,
oil, water and sanitary services
|
0.73 | % | ||
Rubber
Products
|
0.48 | % | ||
Total
|
100.00 | % |
2008
|
2007
|
|||||||
Balance
at the beginning of the fiscal year
|
132,604 | 155,213 | ||||||
New
Loans
|
6,351 | 2,561 | ||||||
Repayments
|
(24,279 | ) | (25,170 | ) | ||||
Balance
at the end of the fiscal year
|
114,676 | 132,604 |
19.6.
|
Allowance
for loan losses
|
December
31, 2008
|
December
31, 2007
|
December
31, 2006
|
||||||||||
Balance
at the beginning of the fiscal year
|
198,728 | 167,097 | 184,885 | |||||||||
Provision
for loan losses
|
38,124 | 61,985 | 69,799 | |||||||||
Write-offs
|
(40,363 | ) | (30,354 | ) | (87,587 | ) | ||||||
Balance
at the end of the fiscal year
|
196,489 | 198,728 | 167,097 |
19.7.
|
Other
receivables from financial
transactions
|
December
31,
|
||||||||
Description
|
2008
|
2007
|
||||||
With
self-liquidating guarantees
|
58 | 11,818 | ||||||
With
preferred guarantees
|
481,698 | 463,621 | ||||||
Without
preferred guarantees
|
1,964,182 | 482,646 | ||||||
Allowances
|
(3,013 | ) | (1,901 | ) | ||||
2,442,925 | 956,184 |
December
31,
|
||||||||
Description
|
2008
|
2007
|
||||||
Forward
Purchases and Sales
|
||||||||
“Notional”
amount of non-deliverable forward purchases
|
1,446,615 | 1,164,392 | ||||||
Contra
debit derivatives accounts
|
1,658,115 | 1,506,392 | ||||||
Options
|
11,115 | — | ||||||
Interest
rate SWAP
|
205,650 | 342,000 | ||||||
“Notional”
amount of non-deliverable forward sales
|
1,454,414 | 1,289,267 | ||||||
Contra
debit derivatives accounts
|
1,459,679 | 1,289,267 | ||||||
Non-deliverable
forward transactions balances pending
settlement-Receivables
|
27,230 | 6,292 | ||||||
Non-deliverable
forward transactions balances pending settlement-Liability
|
67,056 | 1,002 | ||||||
Forward
sales of foreign exchange
|
||||||||
Debtors
under forward sales of foreign exchange
|
10 | 16 | ||||||
Repurchase
and reverse repurchase agreements with government
securities
|
||||||||
Forward
purchases of instruments issued by the BCRA under repurchase agreements
with holdings available for sale
|
— | 67,720 | ||||||
Creditors
under instruments issued by the BCRA repurchase agreements with holdings
available for sale
|
— | 61,802 | ||||||
Debtors
under reverse repurchase agreements
|
1,272,056 | 150,154 | ||||||
Forward
sales under reverse repurchase agreements
|
1,594,911 | 165,431 | ||||||
Financial
debtors under reverse repurchase agreements with the Central
Bank
|
395,289 | — | ||||||
Spot
transactions with pending settlement
|
||||||||
Unsettled
spot securities purchases
|
7,209 | 33,075 | ||||||
Creditors
under unsettled spot securities purchases
|
1 | 33,075 | ||||||
Debtors
under unsettled spot securities sales
|
77 | 33,554 | ||||||
Unsettled
spot securities sales
|
7,345 | 32,892 | ||||||
Unsettled
spot foreign exchange purchases
|
— | 7,924 | ||||||
Creditors
under unsettled spot foreign exchange purchases
|
— | 7,918 | ||||||
Debtors
under unsettled spot foreign exchange sales
|
2,190 | 3,030 | ||||||
Unsettled
spot foreign exchange sales
|
2,174 | 3,032 | ||||||
Unsettled
spot Government securities purchases
|
12 | 1,436 | ||||||
Creditors
under unsettled spot Government securities purchases
|
12 | 1,428 | ||||||
Debtors
under unsettled spot Government securities sales
|
9,577 | 19,462 | ||||||
Unsettled
spot Government securities sales
|
37 | 5,111 |
19.8.
|
Premises
and equipment and other assets
|
19.8.1.
|
Premises
and equipment
|
Estimated
useful
life
(years)
|
December
31,
|
|||||
Description
|
2008
|
2007
|
Land
and buildings
|
50
|
484,858
|
465,620
|
|||
Furniture
and facilities
|
10
|
76,975
|
55,969
|
|||
Machinery
and equipment
|
5
|
141,193
|
100,040
|
|||
Vehicles
|
5
|
5,410
|
5,292
|
|||
Accumulated
depreciation
|
(266,770)
|
(227,306)
|
||||
Total
|
441,666
|
399,615
|
19.8.2.
|
Other
assets
|
Estimated
useful
life
(years)
|
December
31,
|
||||
Description
|
2008
|
2007
|
Rent
assets
|
50
|
6,496
|
15,558
|
||
Works
of art
|
—
|
983
|
983
|
||
Assets
acquired for secure loans
|
50
|
4,283
|
4,646
|
||
Stationery
and office supplies
|
—
|
3,667
|
2,693
|
||
Land
and buildings not affected by banking activities
|
50
|
12,357
|
12,512
|
||
Vehicles
to deliver for leasing
|
—
|
2,558
|
|||
Total
|
27,786
|
38,950
|
19.9.
|
Intangible
assets
|
December
31,
|
||||||||
Description
|
2008
|
2007
|
||||||
Goodwill
for the purchase of Corp Banca S.A., net of accumulated
amortization
|
— | 12,200 |
Estimated
useful
life
(years)
|
December
31,
|
||
Description
|
2008
|
2007
|
|
Start-up
expenses of Consolidar AFJP
|
11
|
—
|
12,244
|
Organization
and development non – deductible expenses (1)
|
5
|
—
|
57,489
|
Computer
software acquisition expenses and computer programs development
expenses
|
5
|
17,663
|
9,412
|
Other
intangible assets
|
5
|
37,669
|
25,035
|
Total
|
55,332
|
104,180
|
December
31,
|
||||||||
2008
|
2007
|
|||||||
Balance
at the beginning of the fiscal year
|
104,180 | 388,632 | ||||||
—Additions
|
93,767 | 60,648 | ||||||
—Decreases
|
2,116 | — | ||||||
—Period
amortization
|
140,499 | 345,100 | ||||||
Balance
at the end of the fiscal year
|
55,332 | 104,180 |
19.10.
|
Other
liabilities from financial transactions – Argentine Central
Bank
|
December
31,
|
||||||||
Description
|
2008
|
2007
|
||||||
Short-term
liabilities
|
2,982 | 1,833 | ||||||
Total
|
2,982 | 1,833 |
19.11.
|
Other
liabilities from financial transactions – Banks and international
institutions and financing received from financial
institutions
|
December
31,
|
||||||||
Description
|
2008
|
2007
|
||||||
Short-term
liabilities
|
||||||||
Other
lines of credit from local and foreign banks
|
355,612 | 617,050 | ||||||
Total
short-term liabilities
|
355,612 | 617,050 | ||||||
Long-term
liabilities
|
||||||||
Other
lines of credit from local and foreign banks
|
42,103 | 22,220 | ||||||
Total
long-term liabilities
|
42,103 | 22,220 | ||||||
Total
|
397,715 | 639,270 |
Fiscal
year
|
||||
2010
|
27,264 | |||
2011
|
13,855 | |||
2012
|
984 | |||
2013
|
— | |||
Total
|
42,103 |
19.12.
|
Balances
in foreign currency
|
December
31,
|
||||||||
Description
|
2008
|
2007
|
||||||
Assets
|
||||||||
Cash
and due from Banks
|
2,205,798 | 1,260,938 | ||||||
Government
and private securities
|
671,606 | 87,423 | ||||||
Loans
|
1,919,116 | 2,253,335 | ||||||
Other
receivables from financial transactions
|
489,736 | 106,975 | ||||||
Assets
subject to financial leasing
|
58 | 62 | ||||||
Investments
in other companies
|
913 | 833 | ||||||
Other
receivables
|
39,138 | 18,951 | ||||||
Suspense
items
|
228 | 352 | ||||||
Total
|
5,326,593 | 3,728,869 | ||||||
Liabilities
|
||||||||
Deposits
|
3,528,814 | 2,459,570 | ||||||
Other
liabilities from financial transactions
|
1,205,564 | 1,027,236 | ||||||
Other
liabilities
|
40,153 | 15,901 | ||||||
Suspense
items
|
905 | 2 | ||||||
Total
|
4,775,436 | 3,502,709 |
19.13.
|
Minimum
capital requirements
|
Required
Minimum
Capital
|
Computable
Capital
|
Excess
of actual
Minimum
Capital
over
Required
Minimum
Capital (1)
|
||||||||||
December
31, 2008
|
1,425,376 | 2,277,354 | 851,978 | |||||||||
December
31, 2007
|
1,283,572 | 2,233,040 | 949,468 |
(1)
|
The
Bank must maintain a surplus of minimum paid-in
capitals amounting to at least Ps.41,800 and Ps.53,432 as at
December 31, 2008 and 2007, respectively, equivalent to 0.25% of the
amount of values under custody for securities representing
investments from pension funds, as well as in connection
with its function as registrar of mortgage-backed bonds, invested in
national public securities and other destinations authorized by the
BCRA and guaranteed in favour of the said
Entity
|
19.14.
|
Earnings
per share
|
19.15.
|
Employee
benefit plans
|
19.16.
|
Business
segment consolidated information
|
As
of December 31, 2008
|
||||||||||||||||||||||||||||
Banking
Financial
|
||||||||||||||||||||||||||||
BBVA
Banco Francés S.A.(3)
|
PSA
Finance S.A.
|
Total
|
Pension
Fund Manager
|
Insurance
|
Eliminations
|
Total
|
||||||||||||||||||||||
Total
assets
|
22,400,481 | 452,766 | 22,853,247 | 285,011 | 2,872,885 | (185,678 | ) | 25,825,465 | ||||||||||||||||||||
Financial
income
|
1,944,883 | 49,091 | 1,993,974 | 23,674 | 352,065 | (90,609 | ) | 2,279,104 | ||||||||||||||||||||
Service
charge income and other income
|
1,372,305 | 49,498 | 1,421,803 | 226,262 | 329,851 | (14,048 | ) | 1,963,868 | ||||||||||||||||||||
Total
income (1)
|
3,317,188 | 98,589 | 3,415,777 | 249,936 | 681,916 | (104,657 | ) | 4,242,972 | ||||||||||||||||||||
Financial
expenses
|
(1,274,521 | ) | (11,977 | ) | (1,286,498 | ) | (110 | ) | (5,682 | ) | 90,609 | (1,201,681 | ) | |||||||||||||||
Allowances
for doubtful loans
|
(33,462 | ) | (3,246 | ) | (36,708 | ) | (36,708 | ) | ||||||||||||||||||||
Operating
expenses
|
(1,128,183 | ) | (7,651 | ) | (1,135,834 | ) | (232,259 | ) | (50,969 | ) | 5,614 | (1,413,448 | ) | |||||||||||||||
Other
expenses
|
(603,047 | ) | (24,785 | ) | (627,832 | ) | (54,168 | ) | (598,860 | ) | 8,434 | (1,272,426 | ) | |||||||||||||||
Total
expenses (2)
|
(3,039,213 | ) | (47,659 | ) | (3,086,872 | ) | (286,537 | ) | (655,511 | ) | 104,657 | (3,924,263 | ) | |||||||||||||||
(Loss)/Gain
on minority interest in subsidiaries
|
(135 | ) | (5,068 | ) | (5,203 | ) | 16,876 | (8,872 | ) | 2,801 | ||||||||||||||||||
Total
net income
|
277,840 | 45,862 | 323,702 | (19,725 | ) | 17,533 | 321,510 |
(1)
|
Includes:
financial income, service charge income and other
income.
|
(2)
|
Includes:
financial expenses, provision for loan losses, service charge expenses,
operating expenses, other expenses and income
tax.
|
(3)
|
Includes:
Atuel Fideicomisos S.A. and Francés Valores Sociedad de Bolsa
S.A.
|
As
of December 31, 2007
|
||||||||||||||||||||||||||||
Banking
Financial
|
||||||||||||||||||||||||||||
BBVA
Banco Francés S.A.(3)
|
PSA
Finance S.A.
|
Total
|
Pension
Fund Manager
|
Insurance
|
Eliminations
|
Total
|
||||||||||||||||||||||
Total
assets
|
18,903,940 | 264,251 | 19,168,191 | 377,785 | 2,562,922 | (85,899 | ) | 22,022,999 | ||||||||||||||||||||
Financial
income
|
1,610,891 | 14,594 | 1,625,485 | 37,162 | 247,412 | (5,847 | ) | 1,904,212 | ||||||||||||||||||||
Service
charge income and other income
|
1,220,097 | 20,469 | 1,240,566 | 463,960 | 580,609 | (274,062 | ) | 2,011,073 | ||||||||||||||||||||
Total
income (1)
|
2,830,988 | 35,063 | 2,866,051 | 501,122 | 828,021 | (279,909 | ) | 3,915,285 | ||||||||||||||||||||
Financial
expenses
|
(682,913 | ) | (2,642 | ) | (685,555 | ) | (415 | ) | (8 | ) | 5,847 | (680,131 | ) | |||||||||||||||
Allowances
for doubtful loans
|
(60,370 | ) | (1,892 | ) | (62,262 | ) | — | — | — | (62,262 | ) | |||||||||||||||||
Operating
expenses
|
(872,913 | ) | (4,887 | ) | (877,800 | ) | (211,084 | ) | (38,741 | ) | 3,464 | (1,124,161 | ) | |||||||||||||||
Other
expenses
|
(1,027,268 | ) | (9,911 | ) | (1,037,179 | ) | (278,988 | ) | (748,572 | ) | 270,598 | (1,794,141 | ) | |||||||||||||||
Total
expenses (2)
|
(2,643,464 | ) | (19,332 | ) | (2,662,796 | ) | (490,487 | ) | (787,321 | ) | 279,909 | (3,660,695 | ) | |||||||||||||||
Loss
on minority interest in subsidiaries
|
(169 | ) | (458 | ) | (627 | ) | (4,903 | ) | (14,011 | ) | — | (19,541 | ) | |||||||||||||||
Total
net income
|
187,355 | 15,273 | 202,628 | 5,732 | 26,689 | — | 235,049 |
As
of December 31, 2006
|
||||||||||||||||||||||||||||
Banking
Financial
|
||||||||||||||||||||||||||||
BBVA
Banco Francés S.A.(3)
|
PSA
Finance S.A.
|
Total
|
Pension
Fund Manager
|
Insurance
|
Eliminations
|
Total
|
||||||||||||||||||||||
Total
assets
|
16,294,763 | 109,151 | 16,403,914 | 373,844 | 2,204,731 | (147,860 | ) | 18,834,629 | ||||||||||||||||||||
Financial
income
|
1,514,699 | 7,030 | 1,521,729 | 44,237 | 384,026 | (13,588 | ) | 1,936,404 | ||||||||||||||||||||
Service
charge income and other income
|
653,149 | 11,249 | 664,398 | 377,019 | 410,135 | (221,237 | ) | 1,230,315 | ||||||||||||||||||||
Total
income (1)
|
2,167,848 | 18,279 | 2,186,127 | 421,256 | 794,161 | (234,825 | ) | 3,166,719 | ||||||||||||||||||||
Financial
expenses
|
(581,603 | ) | (95 | ) | (581,698 | ) | (234 | ) | (1 | ) | 13,588 | (568,345 | ) | |||||||||||||||
Allowances
for doubtful loans
|
(69,411 | ) | (714 | ) | (70,125 | ) | — | — | — | (70,125 | ) | |||||||||||||||||
Operating
expenses
|
(711,655 | ) | (3,320 | ) | (714,975 | ) | (171,273 | ) | (43,750 | ) | 2,594 | (927,404 | ) | |||||||||||||||
Other
expenses
|
(707,660 | ) | (4,219 | ) | (711,879 | ) | (249,662 | ) | (638,894 | ) | 218,643 | (1,381,792 | ) | |||||||||||||||
Total
expenses (2)
|
(2,070,329 | ) | (8,348 | ) | (2,078,677 | ) | (421,169 | ) | (682,645 | ) | 234,825 | (2,947,666 | ) | |||||||||||||||
Gain/(Loss)
on minority interest in subsidiaries
|
52 | (1,505 | ) | (1,453 | ) | (40 | ) | (37,523 | ) | — | (39,016 | ) | ||||||||||||||||
Total
net income
|
97,571 | 8,426 | 105,997 | 47 | 73,993 | — | 180,037 |
(4)
|
Includes:
financial income, service charge income and other
income.
|
(5)
|
Includes:
financial expenses, provision for loan losses, service charge expenses,
operating expenses, other expenses and income
tax.
|
(6)
|
Includes:
Atuel Fideicomisos S.A. and Francés Valores Sociedad de Bolsa
S.A.
|
19.17.
|
Consolidated
income statements and balance
sheets
|
December
31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Consolidated
Income Statements
|
||||||||||||
Interest
and fees on loans
|
1,699,128 | 1,202,946 | 1,132,766 | |||||||||
Interest
on investment securities
|
55,774 | 4,498 | 43,684 | |||||||||
Trading
account interest
|
— | 403,747 | 580,901 | |||||||||
Total
interest income
|
1,754,902 | 1,611,191 | 1,757,351 | |||||||||
Interest
on deposits
|
771,304 | 578,982 | 471,763 | |||||||||
Trading
account interest
|
253,463 | — | — | |||||||||
Interest
on short-tern borrowings
|
41,268 | 33,663 | 50,036 | |||||||||
Interest
on long-term debt
|
107 | 19 | 265 | |||||||||
Total
interest expense
|
1,066,142 | 612,664 | 522,064 | |||||||||
Net
interest income
|
688,760 | 998,527 | 1,235,287 | |||||||||
Provision
for loan losses
|
36,708 | 62,262 | 70,125 | |||||||||
Net
interest gain after provision for loan losses
|
652,052 | 936,265 | 1,165,162 | |||||||||
Service
charges on deposit accounts
|
246,473 | 191,952 | 165,776 | |||||||||
Credit
card service charges and fees
|
326,623 | 203,096 | 127,481 | |||||||||
Fees
on securities activities
|
15,547 | 11,464 | 12,600 | |||||||||
Other
commissions
|
652,560 | 825,990 | 640,702 | |||||||||
Income
from investment in equity securities
|
65,121 | 9,363 | 19,941 | |||||||||
Foreign
currency gains net
|
207,582 | 117,403 | 78,655 | |||||||||
Gains
on disposal of fixed and other assets
|
9,559 | 1,005 | — | |||||||||
Minority
interest in subsidiaries
|
2,801 | — | — | |||||||||
Others
|
928,786 | 943,790 | 363,386 | |||||||||
Total
other income
|
2,455,052 | 2,304,063 | 1,408,541 |
December
31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Consolidated
Expenses Statements
|
||||||||||||
Commissions
|
176,463 | 114,371 | 76,538 | |||||||||
Personnel
expenses
|
745,034 | 588,483 | 485,013 | |||||||||
Fees
and external administrative services
|
109,645 | 76,414 | 50,887 | |||||||||
Depreciation
of bank premises and equipment and other fixed assets
|
43,047 | 41,238 | 32,653 | |||||||||
Business
travel and development
|
19,435 | 18,317 | 16,628 | |||||||||
Utilities
|
30,074 | 26,016 | 21,714 | |||||||||
Advertising
and promotion
|
72,764 | 67,212 | 46,050 | |||||||||
Contributions
and taxes
|
200,650 | 148,858 | 118,847 | |||||||||
Maintenance
and repairs
|
53,718 | 38,553 | 30,712 | |||||||||
Amortization
of Goodwill
|
12,200 | 6,629 | 6,629 | |||||||||
Provision
for loss contingencies
|
199,603 | 157,626 | 312,485 | |||||||||
Loss
on disposal of fixed and other assets
|
— | — | 7,657 | |||||||||
Minority
interest in subsidiaries
|
19,541 | 39,016 | ||||||||||
Others
|
1,091,691 | 1,651,627 | 1,077,157 | |||||||||
Total
other expenses
|
2,754,324 | 2,954,885 | 2,321,986 | |||||||||
Income
before income tax and tax on minimum presumed income
expenses
|
352,780 | 285,443 | 251,717 | |||||||||
Income
tax and tax on minimum presumed income expenses
|
31,270 | 50,394 | 71,680 | |||||||||
Net
income
|
321,510 | 235,049 | 180,037 | |||||||||
Net
income per Ordinary Share
|
0.68 | 0.50 | 0.38 |
December
31,
|
||||||||
2008
|
2007
|
|||||||
Assets
|
||||||||
Cash
and due from banks
|
1,113,606 | 1,035,128 | ||||||
Interest
bearing deposits in other banks
|
3,247,332 | 2,242,883 | ||||||
Unsettled
spot purchases
|
7,221 | 42,435 | ||||||
Debtors
under forward sales and under reverse repurchase
agreements
|
1,667,355 | 150,170 | ||||||
Debtors
under unsettled spot sales
|
11,844 | 56,046 | ||||||
Trading
account assets
|
3,365,936 | 3,260,955 | ||||||
Investments
securities
|
1,052,174 | 625,700 | ||||||
Loans
|
12,703,978 | 11,588,849 | ||||||
Allowance
for loan losses
|
(196,489 | ) | (198,728 | ) | ||||
Premises
and equipment
|
441,666 | 399,615 | ||||||
Intangible
assets
|
55,332 | 116,380 | ||||||
Other
assets
|
2,355,510 | 2,703,566 | ||||||
Total
assets
|
25,825,465 | 22,022,999 | ||||||
Liabilities
and Stockholders’ Equity
|
||||||||
Interest
bearing deposits
|
13,232,394 | 12,176,829 | ||||||
Non
interest bearing deposits
|
3,846,809 | 2,832,929 | ||||||
Creditors
under forward purchases and under reverse repurchase
agreements
|
67,056 | 1,002 | ||||||
Creditors
under unsettled spot purchases
|
13 | 104,223 | ||||||
Forward
sales and under repurchase agreements
|
1,594,911 | 165,431 | ||||||
Unsettled
spot sales
|
9,556 | 41,035 | ||||||
Other
short-term borrowings
|
1,359,909 | 1,357,341 | ||||||
Other
liabilities
|
101,781 | 80,989 | ||||||
Long-term
debt
|
2,909,630 | 2,528,401 | ||||||
Commitments
and contingent liabilities
|
379,243 | 441,964 | ||||||
Minority
Interest in subsidiaries
|
248,139 | 236,018 | ||||||
Common
Stock
|
471,361 | 471,361 | ||||||
Non-capitalized
contributions
|
175,132 | 175,132 | ||||||
Other
stockholders’ equity
|
1,429,531 | 1,410,344 | ||||||
Total
liabilities and stockholders’ equity
|
25,825,465 | 22,022,999 |
19.18.
|
Off-Balance
sheet financial instrument
|
a)
|
Derivatives
|
§
|
Options:
they confer the right on the buyer, but no obligation, to receive or pay a
specific quantity of an asset or financial instrument for specified price
at or before a specified date. Options may be exchange traded or Over the
Counter (OTC) agreements. The Bank principally buys and sells interest
options on an index. As December 31, 2007 and 2006 the Bank did not have
outstanding options.
|
§
|
Futures
and Forwards: they are agreements to deliver or take delivery of a
specified rate, price or index applied against the underlying asset or
financial instrument, at a specific date. Futures are exchange traded at
standardized amounts of the underlying asset or financial instrument.
Forward contracts are OTC agreements and are principally dealt in by the
Bank in securities/foreign exchange as forward
agreements.
|
§
|
Swaps:
they are agreements between two parts with the intention to exchange cash
flows and risks at a specific date and for a period in the future. Swaps
may be exchange traded or OTC agreements. In addition see Note
11.
|
December
31, 2008
|
December
31, 2007
|
|||||||||||||||
Trading
|
Total
|
Trading
|
Total
|
|||||||||||||
Forward
sales and purchases of foreign exchange
|
2,901,029 | 2,901,029 | 2,453,659 | 2,453,659 | ||||||||||||
Interest
rate SWAP
|
205,650 | 205,650 | 342,000 | 342,000 | ||||||||||||
Options
|
11,115 | 11,115 | — | — |
b)
|
Credit-related
financial instruments
|
December
31,
|
||||||||
2008
|
2007
|
|||||||
Credit
lines granted (unused portion) cover by debtor
classification
|
74,294 | 26,185 | ||||||
Foreign
trade acceptances and standby letters of credit
|
253,867 | 196,522 | ||||||
Guarantees
granted
|
317,343 | 270,396 |
December
31,
|
||||||||
2008
|
2007
|
|||||||
Self-liquidating
counter guarantees
|
17,681 | 14,873 | ||||||
Preferred
counter guarantees
|
8,138 | 3,816 |
December
31,
|
||||||||
2008
|
2007
|
|||||||
Checks
drawn on the Bank pending clearing
|
213,423 | 223,112 | ||||||
Checks
drawn against other Banks
|
425,136 | 388,952 | ||||||
Drafts
and notes for collection
|
660,891 | 579,318 |
c)
|
Trust
activities
|
20.1.
|
Income
taxes
|
December
31,
|
|||||||||||
Description
|
2008
|
2007
|
2006
|
||||||||
Income
before income tax in accordance with US GAAP
|
1,541,720 | 1,931,451 | 1,468,544 | ||||||||
Statutory
income tax rate
|
35.00% | 35.00% | 35.00% | ||||||||
Income
tax (benefit) provision computed at statutory rate
|
539,602 | 676,008 | 513,990 | ||||||||
Tax
exempt income
|
87,774 | 78,754 | (14,257 | ) | |||||||
Other,
net
|
(27,221 |
)
|
21,766 | (11,391 | ) | ||||||
Initial
adjustments to net deferred tax assets
|
— | — | (104,391 | ) | |||||||
Income
tax computed in accordance with U.S. GAAP
|
600,155 | 776,528 | 383,391 | ||||||||
Income
tax computed in accordance with BCRA’s rules
|
(138,052 | ) | 281,500 | 23,000 | |||||||
Adjustments
to reconcile income tax (benefit) to U.S. GAAP
|
738,207 | 495,028 | 360,391 | ||||||||
(Recover)
of allowances on deferred tax assets
|
(331,511 | ) | (328,508 | ) | (325,939 | ) |
December
31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Tax
on minimum presumed income (Income tax and TOMPI line item –
F-9)
|
31,270 | 50,394 | 71,680 | |||||||||
Income
tax computed in accordance with BCRA’s rule (Other Income/Expenses line
item)
|
(138,052 | ) | 281,500 | 23,000 | ||||||||
Total
– Income tax plus Tax on minimum presumed income
|
(106,782 | ) | 331,894 | 94,680 |
December
31,
|
||||||||||||
Description
|
2008
|
2007
|
2006
|
|||||||||
Deferred tax
assets:
|
||||||||||||
Government
and private securities valuation
|
208,239 | — | 89,485 | |||||||||
Loan
origination and issuance credit card’s fees
|
28,216 | 18,004 | 14,733 | |||||||||
Property,
equipment and miscellaneous assets
|
19,084 | 13,491 | 11,575 | |||||||||
Other
liabilities
|
10,016 | 21,624 | 26,151 | |||||||||
Allowance
for loss contingencies
|
169,603 | 225,647 | 563,672 | |||||||||
Reserves
from insurance activities
|
— | 2,174 | 80,515 | |||||||||
Net
operating loss
|
87,394 | 403,938 | 562,780 | |||||||||
Other
|
24,567 | 5,965 | 12,834 | |||||||||
547,119 | 690,843 | 1,361,745 | ||||||||||
Deferred tax
liabilities:
|
||||||||||||
Government
and private securities valuation
|
— | (23,484 | ) | — | ||||||||
Loans
|
(150,209 | ) | (66,268 | ) | (43,251 | ) | ||||||
Foreign
exchange difference
|
(14,133 | ) | (15,460 | ) | (10,839 | ) | ||||||
Intangible
assets
|
(28 | ) | (4,550 | ) | (982 | ) | ||||||
Reserves
from insurance activities
|
(57,485 | ) | — | — | ||||||||
(221,855 | ) | (109,762 | ) | (55,072 | ) | |||||||
Net
deferred tax asset under U.S. GAAP
|
325,264 | 581,081 | 1,306,673 | |||||||||
Net
deferred tax asset in accordance with BCRA’s rules
|
193,552 | 55,500 | 337,000 | |||||||||
Adjustment
to reconcile net deferred tax assets / liabilities to U.S.
GAAP
|
131,712 | 525,581 | 969,673 | |||||||||
Allowances
on deferred tax assets in accordance with BCRA’s rules
|
(193,552 | ) | (55,500 | ) | (337,000 | ) | ||||||
Adjustment
to reconcile Allowances on deferred tax assets to U.S.
GAAP
|
180,085 | (151,426 | ) | (479,934 | ) |
Allowances
on deferred tax assets in accordance with US GAAP
|
(13,467 | ) | (206,926 | ) | (816,934 | ) | ||||||
Net
deferred tax asset under BCRA
|
— | — | — | |||||||||
Net
deferred tax asset under U.S. GAAP – Net of allowances
|
311,797 | 374,155 | 489,739 | |||||||||
§
|
Government
and private securities valuation: as mentioned in Note 20.5. all unlisted
government and private securities and those with non-representative
valuation, were adjusted at fair value, thus causing a increase/decrease
in their accounting value, which does not comply with the conditions
required for them to be taxable in the fiscal years ended December 31,
2008, 2007 and 2006.
|
§
|
Loans:
as regards deduction of uncollectible accounts, effective Argentine tax
rules require the existence of certain uncollectibility indicators defined
in the Income Tax Law (i.e.: to begin court proceedings or bankruptcy
adjudication), whereas under accounting criteria uncollectibility charges
are recorded on the basis of assessing the debtor’s payment capacity. This
difference principally relates to the accounting registration of the
impairment that took place in the loans to the provincial governmental
sector and to other public sector agencies (see Note 20.4.4.), which, as
mentioned above, does not comply with the indicators required to be
tax-deductible. In addition, it includes the difference between account
and tax recognition of income of federal government secured
loans.
|
§
|
Loan
origination and issuance credit card’s fees: deferred assets result from
differences in the U.S. GAAP accounting and tax criteria used to assess
expense accruals of them (Note
20.2.).
|
§
|
Property,
equipment and miscellaneous assets: under tax criteria, PP&E
depreciation is determined on values equivalent to the acquisition cost of
the respective PP&E items and by the full-year-of-addition
depreciation method. Under accounting criteria, depreciation is determined
on values equivalent to the acquisition cost restated
|
§
|
Intangible
assets: under tax criteria, the amortization of these assets is determined
by the full-year-of-addition method, whereas accounting criteria
contemplate the calculation of amortization on the basis of the months of
useful life elapsed from addition through valuation
date.
|
§
|
Other
liabilities: deferred assets/liabilities result from differences in the
accounting and tax criteria used to assess expense accruals such as
accrual for dismissals calculation.
|
§
|
Allowance
for loss contingencies: as regards deduction of loss contingencies,
effective Argentine tax rules require the existence of certain indicators
defined in the Income Tax Law (i.e. final judgment), whereas under
accounting criteria, loss contingencies charges are recorded on the basis
of the estimated amounts necessary to meet contingencies of probable
occurrence.
|
§
|
Pension
and retirement obligations’ activities: deferred assets result from
differences in the U.S. GAAP accounting and tax criteria applying to
certain allowances related with Consolidar A.F.J.P.’s
activities.
|
Amount
|
||||
2009
|
87,394
|
Amount
|
||||
2011
|
17,115
|
|||
2012
|
24,519
|
|||
2013
|
23,997
|
|||
2014
|
24,462
|
|||
2015
|
28,653
|
|||
2016
|
31,741
|
|||
2017
|
37,825
|
|||
2018
|
47,893
|
20.2.
|
Loan
origination and issuance credit card’s
fees
|
20.3.
|
Intangible
assets
|
20.4.
|
Loan
loss reserve
|
December
31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
—Total
amount of loans considered as impaired
|
181,591 | 110,516 | 129,953 | |||||||||
Amount
of loans considered as impaired for which there is a related allowance for
credit losses
|
181,591 | 110,516 | 129,953 | |||||||||
Amount
of loans considered as impaired for which there is no related allowance
for credit losses
|
— | — | — | |||||||||
—Reserves
allocated to impaired loans
|
97,663 | 72,667 | 105,847 | |||||||||
—Average
balance of impaired loans during the fiscal year
|
150,956 | 114,057 | 279,495 |
December
31, 2008
|
December
31, 2007
|
December
31, 2006
|
||||||||||
Balance
at the beginning of the fiscal year
|
91,498 | 96,852 | 284,327 | |||||||||
Provision
for loan losses
|
52,543 | 25,000 | 49,124 | |||||||||
Charge-offs
|
(40,363 | ) | (30,354 | ) | (236,599 | ) | ||||||
Balance
at the end of the fiscal year
|
103,678 | 91,498 | 96,852 |
December
31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Guaranteed
loan portfolio under BCRA
|
2,057,870 | 2,054,855 | 2,617,265 | |||||||||
Guaranteed
loan portfolio under USGAAP
|
1,840,401 | 1,712,450 | 2,058,051 | |||||||||
Difference
– Reconciliation adjustment
|
217,469 | 342,405 | 559,214 | |||||||||
Portfolio
sales price
|
US
GAAP value
|
Gain
on portfolio sales
|
Total
income adjustment
|
|||||||||||||
2006
|
1,199,288 | 904,768 | 294,520 | 350,286 | ||||||||||||
2007
|
677,304 | 533,362 | 143,942 | 216,809 |
20.5.
|
Government
and private securities valuation
|
Government
securities
|
Other
debt securities
|
|||||||||||||||
December
31,
|
December
31,
|
|||||||||||||||
2008
|
2007 | (*) |
2008
|
2007 | (*) | |||||||||||
Amortized
cost
|
3,838,488 | 3,828,749 | — | 26,511 | ||||||||||||
Gross
Unrealized (Loss) / Gain
|
(1,104,112 | ) | (119,310 | ) | — | (976 | ) | |||||||||
Fair
Value
|
2,734,376 | 3,709,439 | — | 25,535 | ||||||||||||
Number
of Positions
|
61 | 53 | — | 3 |
Less
than 12 months
|
12
months or greater
|
Total
|
||||||||||||||||||||||
Fair
value
|
Unrealized
losses |
Fair
value
|
Unrealized
losses
|
Fair
value
|
Unrealized
losses
|
|||||||||||||||||||
Government
securities
|
1,220,623 | (90,846 | ) | 874,720 | (1,020,067 | ) | 2,095,343 | (1,110,913 | ) |
§
|
The
decline is attributable solely to adverse interest rate movements, and has
not connection with a credit event.
|
§
|
The
principal and interest payments have been made as scheduled, and there in
no evidence that the debtor will not continue to do
so;
|
§
|
The
future principal payments will be sufficient to recover the current
amortized cost of the security;
|
§
|
We
have the intent to hold the security at least until the fair value of the
security recovers to a level that exceeds the security’s amortized costs;
and
|
§
|
They
have mainly arisen in a period shorter than one
year.
|
20.6.
|
Gain
contingencies
|
20.7.
|
Investment
in other companies
|
20.8.
|
Vacation
expense
|
20.9.
|
Items
in process of collection
|
20.10.
|
Forward
and unsettled spot transactions
|
20.11.
|
Technical
Valuation – Inflation adjustments
|
20.12.
|
Acceptances
|
20.13.
|
Provisions
and technical commitments related to insurance
activities
|
20.14.
|
Fair
Value of Financial Instruments
|
(i)
|
The
SFAS No. 157 “Fair value measurement” defines that fair value is the price
that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement
date. Such standard also establishes a scheme for determining
fair values. In accordance with this pronouncement, BBVA Banco Francés,
has categorized its financial instruments based on the priority of the
inputs to the valuation technique, into same of the three-level fair value
hierarchy. The fair value hierarchy gives the highest priority to quoted
prices in active markets for identical assets or liabilities
(Level 1) and the lowest priority to unobservable inputs
(Level 3). If the inputs used to measure the financial instruments
fall within different levels of the hierarchy, the categorization is based
on the lowest level input that is significant to the fair value
measurement of the instrument.
|
Level 1
|
Financial
assets and liabilities whose values are based on unadjusted quoted prices
for identical assets or liabilities in an active market that BBVA Banco
Francés has the ability to access.
|
Level 2
|
They
are inputs other tan quoted prices included within Level 1 that are
observable for the asset or liability, either directly or indirectly.
Level 2 inputs include the following:
a)
Quoted
prices for similar assets or liabilities in active markets;
b)
Quoted
prices for identical or similar assets or liabilities in non-active
markets;
c)
Pricing
models whose inputs are observable for substantially the full term of the
asset or liability; and
d)
Pricing
models whose inputs are derived principally from or corroborated by
observable market data through correlation or other means for
substantially the full term of the asset or liability.
|
Level 3
|
Financial
assets and liabilities whose values are based on prices or valuation
techniques that require inputs that are both unobservable and significant
to the overall fair value measurement. These inputs reflect management’s
own assumptions about the assumptions a market participant would use in
pricing the asset or liability.
|
Fair
value measurements on a recurring basis as of
December
31, 2008
|
||||||||||||||||
Description
|
Level
1
|
Level
2
|
Level
3
|
Total
|
||||||||||||
Assets
|
||||||||||||||||
Government
and private securities
|
2,967,235 | 1,561,364 | — | 4,528,599 | ||||||||||||
Other
receivables from financial transactions
|
9,734 | 27,230 | — | 36,964 | ||||||||||||
Liabilities
|
||||||||||||||||
Other
liabilities from financial transactions
|
1,606,394 | 67,056 | — | 1,673,450 |
(ii)
|
In
December 1991, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards No. 107, “Disclosures about
Fair Value of Financial Instruments” (SFAS No. 107). This pronouncement
became effective for fiscal years ended after December 15, 1992 and
requires disclosure of fair value information about financial instruments,
whether or not recognized on the balance sheet, for which it is
practicable to estimate fair value.
|
§
|
Listed-Investment
accounts: fair value for these securities is based upon quoted market
prices (if available) at December 31, 2008 and
2007.
|
§
|
Unlisted
government securities: fair value for these securities was taken to be
equal to the present value of future cash flows discounted at the average
year-end market interest rates for securities of similar interest rate,
credit risk and maturity.
|
§
|
Forward
purchases of Government securities under repurchase agreements with
holdings in investment accounts: fair value for these receivables were
based upon quoted market prices (if available) at December 31, 2008 and
2007 of the securities to be received after the fiscal
year-end.
|
§
|
Unlisted
corporate bonds: fair value for these securities was taken to be equal to
the present value of future cash flows discounted at the average year-end
market interest rates for securities of similar interest rate, credit risk
and maturity.
|
December
31,
|
||||||||||||||||
2008
|
2007
|
|||||||||||||||
Carrying
Amount
|
Estimated
Fair
Value
|
Carrying
Amount
|
Estimated
Fair
Value
|
|||||||||||||
Financial
assets
|
||||||||||||||||
Cash
and due from banks
|
4,243,080 | 4,243,080 | 3,169,314 | 3,169,314 | ||||||||||||
Government
and private securities (1)
|
5,233,660 | 4,528,599 | 5,181,253 | 5,058,580 | ||||||||||||
Loans
(2)
|
12,507,489 | 11,122,671 | 11,390,121 | 10,856,600 | ||||||||||||
Other
receivables from financial transactions (3)
|
2,442,925 | 2,445,805 | 956,184 | 961,045 | ||||||||||||
Assets
subject to financial leasing
|
379,120 | 379,120 | 323,522 | 323,522 | ||||||||||||
Investments
in other companies
|
96,640 | 96,640 | 77,986 | 77,986 | ||||||||||||
24,902,914 | 22,825,915 | 21,098,380 | 20,447,047 | |||||||||||||
Financial
liabilities
|
||||||||||||||||
Deposits
|
17,079,203 | 17,079,203 | 15,009,758 | 15,009,758 | ||||||||||||
Other
liabilities from financial transactions (3)
|
3,135,153 | 3,132,891 | 1,750,021 | 1,755,344 | ||||||||||||
20,214,356 | 20,212,094 | 16,759,779 | 16,765,102 |
(1)
|
Includes
the effect described in Note 20.5.
|
(2)
|
Includes
the effects described in Notes 20.4.2., 20.4.3. and
20.4.4.
|
(3)
|
Includes
the effects described in Notes
20.16.
|
20.15.
|
Goodwill
|
§
|
On
May 4, 1998, the General and Special Stockholder’s Meeting approved (to be
effective on April 30, 1998) the reversal of the shares issuance premium
in the amount of 428,661 related to the capital increase with face value
25,000 thousand paid in on December 19, 1997, and bearing up to 428,661 of
the Business Goodwill from the acquisition of 71.754% of the capital stock
of Banco de Crédito Argentino S.A. The mentioned reversal is not allowed
in accordance with US. GAAP. Under US. GAAP, the Bank should recognize the
issuance premium under “Issuance premiums” and capitalize the related
amount under Intangible Assets.
|
§
|
On
May 13, 1999, BBVA (majority owner of BBVA Banco Francés) acquired CB and
Atuel Fideicomisos S.A. and on September, 13, 1999, BBVA sold its
interests in both companies to BBVA Banco Francés. For the difference
between the definitive price of the transaction and the incorporation
value of both companies, the Bank recognized goodwill and amortized it in
proportion to the months of estimated useful life (120-month period).
Under U.S. GAAP, the Bank would be required to account for the acquisition
of the mentioned companies at BBVA’s book balance. Had U.S. GAAP been
applied, the Bank’s assets would have increased by 54,695, 42,495 and
35,866 at December 31, 2008, 2007 and 2006, respectively. Additionally,
the income would have increased by 12,200, 6,629 and 6,630 for the years
ended December 31, 2008, 2007 and 2006,
respectively.
|
§
|
SFAS
No. 142 “Goodwill and Other Intangible Assets” requires, effective January
1, 2002, that goodwill is no longer amortized, but is subject to
impairment test annually or more frequently if events or changes in
circumstances indicate that the asset may be impaired. In 2001 the Bank
had recognized an impairment loss and wrote off the entire balance of the
U.S. GAAP goodwill. Had U.S. GAAP been applied, the Bank’s assets would
have decreased by 309,577 as of December 31, 2008, 2007 and 2006,
respectively.
|
20.16.
|
Accounting
for Derivative Instruments and Hedging
Activities
|
20.17.
|
Allowance
for other contingencies
|
20.18.
|
Set
forth below are the significant adjustments to consolidated net income and
consolidated stockholders’ equity which would have been required if U.S.
GAAP had been applied instead of BCRA’s
rules:
|
Consolidated
Net Income
December 31, |
||||||||||||||||
Ref.
|
2008
|
2007
|
2006
|
|||||||||||||
Net
income as stated
|
321,510 | 235,049 | 180,037 | |||||||||||||
Deferred
taxes
|
20.1 | (738,208 | ) | (495,028 | ) | (360,391 | ) | |||||||||
Allowances
on deferred tax assets
|
20.1 | 331,511 | 328,508 | 325,939 | ||||||||||||
Loan
origination and issuance credit card’s fees
|
20.2 | (38,292 | ) | (9,835 | ) | (15,587 | ) | |||||||||
Intangible
assets
|
20.3 | 6,828 | 4,548 | 5,518 | ||||||||||||
Impaired
loans-Non Financial Private Sector and residents abroad
loans
|
20.4.2 | (14,419 | ) | 36,985 | 20,676 | |||||||||||
Federal
Government secured loans
|
20.4.3 | 124,936 | 216,809 | 350,286 | ||||||||||||
Loans-Non-Financial
Provincial Governmental Sector and other governmental
|
||||||||||||||||
sector
agencies
|
20.4.4 | — | — | 149,012 | ||||||||||||
Government
and private securities valuation
|
20.5 | 660,761 | 148,615 | 55,710 | ||||||||||||
Gain
contingencies
|
20.6 | 58,322 | 285,710 | 222,647 | ||||||||||||
Investment
in other companies
|
20.7 | (11,403 | ) | (5,974 | ) | (3,068 | ) | |||||||||
Vacation
expense
|
20.8 | 36,806 | (11,588 | ) | (3,565 | ) | ||||||||||
Provision
related to insurance activities
|
20.13.1 | — | 230,194 | (21,155 | ) | |||||||||||
Technical
Commitments
|
20.13.2 | 159,908 | (13,285 | ) | 20,036 | |||||||||||
Goodwill
|
20.15 | 12,200 | 6,629 | 6,630 | ||||||||||||
Accounting
for Derivative Instruments and Hedging Activities
|
20.16 | 4,621 | (3,439 | ) | — | |||||||||||
Allowance
for other contingencies
|
20.17 | — | (44,818 | ) | 44,818 | |||||||||||
Net
income in accordance with U.S. GAAP
|
915,081 | 909,080 | 977,543 | |||||||||||||
Net
income per share in accordance with U.S. GAAP
|
1.94 | 1.93 | 2.07 | |||||||||||||
Weighted
average number of shares Outstanding (in thousands)
|
471,361 | 471,361 | 471,361 |
Consolidated
Stockholders' Equity
December 31, |
||||||||||||||||
Ref.
|
2008
|
2007
|
2006
|
|||||||||||||
Stockholders'
equity as stated
|
2,076,024 | 2,056,837 | 1,954,584 | |||||||||||||
Deferred
taxes
|
20.1 | 131,712 | 525,581 | 969,673 |
Allowances
on deferred tax assets
|
20.1 | 180,085 | (151,426 | ) | (479,934 | ) | ||||||||||
Loan
origination and issuance credit card’s fees
|
20.2 | (86,765 | ) | (48,473 | ) | (38,638 | ) | |||||||||
Intangible
assets
|
20.3 | 4 | (6,824 | ) | (11,372 | ) | ||||||||||
Impaired
loans-Non Financial Private Sector and residents abroad
loans
|
20.4.2 | 92,811 | 107,230 | 70,245 | ||||||||||||
Federal
Government secured loans
|
20.4.3 | (217,469 | ) | (342,405 | ) | (559,214 | ) | |||||||||
Government
and private securities valuation
|
20.5 | (216,190 | ) | (31,448 | ) | (77,328 | ) | |||||||||
Gain
contingencies
|
20.6 | (19,855 | ) | (78,177 | ) | (363,887 | ) | |||||||||
Investment
in other companies
|
20.7 | (39,211 | ) | (27,808 | ) | (21,834 | ) | |||||||||
Vacation
expense
|
20.8 | (23,176 | ) | (59,982 | ) | (48,394 | ) | |||||||||
Provision
related to insurance activities
|
20.13.1 | — | — | (230,194 | ) | |||||||||||
Technical
Commitments
|
20.13.2 | 176,773 | 16,865 | 30,150 | ||||||||||||
Goodwill
|
20.15 | — | (12,200 | ) | (18,829 | ) | ||||||||||
Accounting
for Derivative Instruments and Hedging Activities
|
20.16 | 1,182 | (3,439 | ) | — | |||||||||||
Allowance
for other contingencies
|
20.17 | — | — | 44,818 | ||||||||||||
Consolidated
Stockholders’ equity in accordance with U.S. GAAP
|
2,055,925 | 1,944,331 | 1,219,846 |
December 31, | ||||||||||||
2008
|
2007
|
2006
|
||||||||||
Assets
|
27,199,899 | 23,266,358 | 19,230,659 | |||||||||
Liabilities
|
25,143,974 | 21,322,027 | 18,010,813 |
20.19.
|
The
following presents the consolidated statement of operations adjusted to
reflect the application of U.S. GAAP using the BCRA’s
format:
|
Consolidated
Net Income
|
||||||||||||
December
31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Financial
income
|
3,098,480 | 2,012,758 | 2,028,677 | |||||||||
Financial
expenses
|
(1,196,657 | ) | (681,573 | ) | (568,345 | ) | ||||||
Allowances
for doubtful loans
|
(51,127 | ) | (25,277 | ) | (49,450 | ) | ||||||
Service
charge income
|
1,144,776 | 1,172,832 | 900,764 | |||||||||
Service
charge expenses
|
(240,631 | ) | (158,927 | ) | (110,199 | ) | ||||||
Operating
expenses
|
(1,363,972 | ) | (1,127,325 | ) | (920,608 | ) | ||||||
Other
income
|
1,218,906 | 1,650,388 | 1,129,778 | |||||||||
Other
expenses
|
(1,068,055 | ) | (911,425 | ) | (942,073 | ) | ||||||
Income
before income tax
|
1,541,720 | 1,931,451 | 1,468,544 | |||||||||
Income
Tax
|
(600,156 | ) | (776,528 | ) | (383,391 | ) | ||||||
Tax
on minimum presumed income
|
(31,270 | ) | (50,394 | ) | (71,680 | ) | ||||||
Net
income
|
910,294 | 1,104,529 | 1,013,473 | |||||||||
Income
/ (Loss) on minority interest in subsidiaries
|
4,787 | (195,449 | ) | (35,930 | ) | |||||||
Total
consolidated income
|
915,081 | 909,080 | 977,543 | |||||||||
Comprehensive
income
|
||||||||||||
Net
income in accordance with U.S. GAAP
|
915,081 | 909,080 | 977,543 | |||||||||
Other
comprehensive (loss) / income, net of tax (1)
(2)
|
(639,487 | ) | (94,595 | ) | 23,035 | |||||||
Comprehensive
net income in accordance with U.S. GAAP
|
275,594 | 814,485 | 1,000,578 |
(1)
|
See
Note 20.20.
|
(2)
|
The
minority interest represents the effect of the U.S. GAAP adjustments in
the Group's consolidated subsidiaries (see Note
2.1.).
|
20.20.
|
Set
forth below are the related tax effects allocated to each component of
other comprehensive income (loss) and the accumulated other comprehensive
income (loss) balances, as of December 31, 2008, 2007 and
2006:
|
December
31, 2008
|
December
31, 2007
|
December
31, 2006
|
||||||||||||||||||||||||||||||||||
Before
Tax
Amount
|
Tax
(Expense)
or
Benefit
|
Net
of Tax Amount
|
Before
Tax
Amount
|
Tax
(Expense)
or
Benefit
|
Net
of Tax Amount
|
Before
Tax
Amount
|
Tax
(Expense)
or
Benefit
|
Net
of Tax Amount
|
||||||||||||||||||||||||||||
Unrealized
gains/(losses) on securities
|
(983,826 | ) | 344,339 | (639,487 | ) | (145,531 | ) | 50,936 | (94,595 | ) | 35,439 | (12,404 | ) | 23,035 | ||||||||||||||||||||||
Other
comprehensive income gain/(loss)
|
(983,826 | ) | 344,339 | (639,487 | ) | (145,531 | ) | 50,936 | (94,595 | ) | 35,439 | (12,404 | ) | 23,035 | ||||||||||||||||||||||
December
31, 2008
|
December
31, 2007
|
December
31, 2006
|
||||||||||||||||||||||||||||||||||
Foreign
Currency
Items
|
Unrealized
Gains/
(Losses)
on securities
|
Accumulated
Other Comprehensive Income/(Loss)
|
Foreign
Currency
Items
|
Unrealized
Gains/
(Losses)
on securities
|
Accumulated
Other Comprehensive Income/(Loss)
|
Foreign
Currency
Items
|
Unrealized
Gains/
(Losses)
on securities
|
Accumulated
Other Comprehensive Income/(Loss)
|
||||||||||||||||||||||||||||
Beginning
balance
|
— | (78,186 | ) | (78,186 | ) | — | 16,409 | 16,409 | — | (6,626 | ) | (6,626 | ) | |||||||||||||||||||||||
Current-fiscal
year change
|
— | (639,487 | ) | (639,487 | ) | — | (94,595 | ) | (94,595 | ) | — | 23,035 | 23,035 | |||||||||||||||||||||||
Ending
balance
|
— | (717,673 | ) | (717,673 | ) | — | (78,186 | ) | (78,186 | ) | — | 16,409 | 16,409 |
20.21.
|
Cash
flows information
|
December
31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Cash
and cash equivalents at the end of the fiscal year
|
4,243,080 | 3,169,314 | 2,558,484 | |||||||||
Cash
and cash equivalents at beginning of the fiscal year
|
3,169,314 | 2,558,484 | 1,611,506 | |||||||||
Increase
in cash and cash equivalents
|
1,073,766 | 610,830 | 946,978 | |||||||||
CAUSES
OF CHANGES IN CASH AND CASH EQUIVALENTS
|
||||||||||||
Cash
provided by operating activities
|
1,549,155 | 375,222 | 1,102,921 | |||||||||
Cash
used in investing activities
|
161,650 | 167,392 | 2,183,393 | |||||||||
Cash
(used in) / provided by financing activities
|
(192,607 | ) | 428,836 | 2,039,496 | ||||||||
Effect
of exchange rate changes on cash
|
121,132 | 25,836 | 12,046 | |||||||||
Increase
in cash and cash equivalents
|
1,073,766 | 610,830 | 946,978 |
December
31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Net
gain for the fiscal year
|
321,510 | 235,049 | 180,037 | |||||||||
Adjustments
to reconcile net income to net cash from operating
activities:
|
||||||||||||
Amortization
and depreciation
|
196,784 | 392,998 | 333,045 | |||||||||
Provision
for loan losses and special reserves, net of reversals
|
69,036 | (223,362 | ) | 350,185 | ||||||||
Net
income for government and private securities
|
— | — | (559,877 | ) | ||||||||
Foreign
exchange differences
|
— | — | (78,666 | ) | ||||||||
Minority
interests in subsidiaries
|
(2,801 | ) | 19,541 | 39,016 | ||||||||
Deferred
taxes
|
31,270 | 50,394 | 116,016 | |||||||||
Equity
(loss) of unconsolidated subsidiaries
|
(15,622 | ) | (3,042 | ) | (19,834 | ) | ||||||
Net
(increase) / decrease in interest receivable and payable and other accrued
income and expenses
|
948,978 | (96,356 | ) | 743,106 | ||||||||
Net
cash provided by operating activities
|
1,549,155 | 375,222 | 1,102,921 |
20.22.
|
New
accounting pronouncements (U.S.
GAAP)
|
§
|
Index
to Exhibits:
|
Exhibit
Number
|
Description
|
|
1.1
|
Amended
and Restated By-Laws (Estatutos) of BBVA Banco Francés S.A. (*)
|
|
1.2
|
English
translation of the Amended and Restated By-Laws (Estatutos) of BBVA Banco
Francés S.A. (*)
|
|
8.1
|
Subsidiaries
of the Company
|
|
12.1
|
Section
302 Certification of Chief Executive Officer
|
|
12.2
|
Section
302 Certification of Chief Financial Officer
|
|
13.1
|
Section
906 Certification
|
|
|
(*)
|
Incorporated
by reference to the BBVA Banco Francés Annual Report on Form 20-F for the
year ended December 31, 2005 filed with the Securities and Exchange
Commission on June 29,
2006.
|