bbva francés 1q18...2018/03/01 · digital channels 1q18 results april 27th 2018 / 17 market share...

1Q18 ResultsApril 27th 2018 / 1

BBVA Francés1Q18


Disclaimer

This document contains or may contain forward-looking statements within the meaning of the United States Securities Litigation Reform Act of 1995,including but not limited to estimates of the prospects for the Argentine economy, BBVA Francés’ earnings, business plans, expense and operationalstructure adjustments, capitalization plan, and trends affecting BBVA Francés’ financial condition and results of operations. Any forward-lookingstatements included in this press release are based on current expectations and estimates, but actual results and events may differ materially fromanticipated future results and events. Certain factors which could cause the actual results and events to differ materially from the expected results orevents include: (1) changes in domestic or international stock market prices, exchange rates or interest rates; (2) macroeconomic, regulatory, political orgovernmental changes; (3) changes in the markets for BBVA Francés’ products and services; (4) increased competition; (5) changes in technology; or (6)changes in the financial condition, creditworthiness or solvency of the customers, debtors or counterparties of BBVA Francés. Additional factors thatcould cause the actual results or events to differ materially from the expected results or events are described in the reports filed by BBVA Francés with theUnited States Securities and Exchange Commission (“SEC”), including, but not limited to, BBVA Francés’ annual report on Form 20-F and exhibits thereto.BBVA Francés does not undertake to revise or update any of the information contained herein under any circumstances, including if at any momentfollowing dissemination of such information it is no longer accurate or complete.

01Macroeconomic environment and Financial System


Monthly variation (%)

CPI

Good performance in the 1Q18, but drough and current uncertainty will affect activity growth

% yoy (base 2004)

GDP Growth

+13 bps

Source: BCRA, INDEC and own estimations

38.0%

26.9%

39.4%

24.8% 27.3%

19.6%

0%

10%

20%

30%

40%

50%

2014 2015 2016 2017 2018e 2019eInflation Target BCRA

-2.5%

2.6%

-2.2%

2.9% 2.6% 3.3%

2014 2015 2016 2017 2018e 2019e


Monthly variation (%)

Subsidies to economic sectors

Fiscal Performance: Primary deficit targets were reduced for 2018

% GDP

Primary fiscal balance

+13 bps-3.8%

-4.2%-3.8%

-2.7%

-1.3%

2015 2016 2017 2018e 2019e

Primary fiscal balance Fiscal Target

Source: Ministry of Economy / 2018- 2019 Targets

0.3%0.2%

0.1%

0.3%0.2%

0.2%

1Q16 1Q17 1Q18

Energy Transport Others

Source: Ministry of Finance


(million USD)

International Reserves

External Sector: Slower deterioration of trade deficit in 2018

% yoy variation

Exports and Imports

-20%

0%

20%

40%

Exports Imports

29,572

50,590

Source: INDEC Source: Central Bank


Liquidity

Financial System: Adequate levels of liquidity and solvency and healthy asset quality indicators

Capital

13.3%16.7%

15.6% 15.3%

2015 2016 2017 1Q18

46.7%49.0%

42.4%43.6%

2015 2016 2017 1Q18

1.7%

1.8% 1.8%

1.9%

2015 2016 2017 1Q18

NPL

1.2%1.3%

1.8%

2015 2016 2017

Cost of Risk

Source: Central Bank

Capital Integration / RWA according to BCRA regulation Cash + net repos with BCRA+BCRA bills / Total Deposits


Branches and ATMs / 100,000 adult population

Latam Private Loans and Total Deposits

A small financial system, but with a good infrastructure to face growth

% GDP

Figures as of November 2017

Figures as of December 2016

15.8%23.0%

84.6%

66.4%

45.3%41.6%

40.1%32.6%

Loans to the PrivateSector

Deposits

Argentina 2017e Chile Colombia Perú

13.0

60.0

16.0

54.0

24.3

45.8

22.0

45.0

Branches ATMs

Argentina Chile Colombia Perú


Number of financial entities per country

Total loans market share in Latam

Argentina has the less concentrated financialsystem in the region

As of 2016

17% 32% 21% 19% 30% 19%

0%

20%

40%

60%

80%

100%

Top 1 Top 2 Top 3 Top 5

78

47

25 2316


Retail and Commercial LoansTotal Private Loans growth

Private loans trend

0%

20%

40%

60%

80%

100%

120%

140%

160%

0

20,000

40,000

60,000

80,000

100,000

120,000

Total Nom Total AR$ USD

20%

30%

40%

50%

60%

Retail Commercial Total

AR$ + USD (var yoy %) (var yoy % - million AR$)


Sight Deposits and Time DepositsTotal Private Deposits growth

Private deposits trend

AR$ + USD (var yoy %) (var yoy %)

0%

50%

100%

150%

200%

Total AR$ USD

0%

20%

40%

60%

80%

100%

120%

Mar-17 Jun-17 Sep-17 Dec-17 Mar-18

SD TD Total

02BBVA Francés


A universal bank with a countrywide presence

Retail SMEs CIB

251

Clients

Branches ATMs ATSs Employees

2,773,900 44,887 860

251 801 816 6,075


Total deposits

One of the leader private banks in terms

Total loans

10.1

9.2

7.4

7.3

4.0

3.5

3.1

3.0

1.8

1.3

SANTANDER

GALICIA

MACRO

BBVA FRANCÉS

HSBC

ICBC

PATAGONIA

SUPERVIELLE

CREDICOOP

HIPOTECARIO

9.8

7.6

6.3

5.8

3.5

2.7

2.5

2.3

1.4

1.1

SANTANDER

GALICIA

BBVA FRANCES

MACRO

CREDICOOP

HSBC

PATAGONIA

ICBC

SUPERVIELLE

CITI

8.3%

Private

Loans *

Mutual Funds

Private

Deposits *Branches

Market share as of Mar 18. Includes loans of JVs consolidated within the financial statements, PSA Finance and Rombo

7.8%6.3% 5.5%


Subsidiaries and equityparticipations

Equity Ownership

Ownership structure

6.3%

6.9%

20.1%

ByMA ANSES NYSE

Free Float33.45%Grupo

BBVA66.55%

Francés Valores(97.00%)

BBVA Seguros(12.22%)

PSA Finance(50.00%)

Rombo(40.00%)

Volskwagen(51.00%)

BBVA AssetManagement

(95.00%)


Multichannel structure and exclusive partnerships

One of the leader private banks in terms

Diversified business model

ATMs/ ATSs

Branches

CallCenter

Web

MobileSponsors JVs

Alliances

Exclusive partnerships

PhysicalInfrastructure

DigitalChannels


Market share

Loans

Private loans(million AR$)

Private loans structure *

Private loans by currency

80,737

128,027 139,352

1Q17 4Q17 1Q18

+ 8.8%

+72.6%

44%

54%

Retail Commercial

76%

24%

AR$

USD

7.6 8.3 8.3

Leverage Loans to Deposits

87.2%6 x

Personal Loans27%

Credit Cards50%

Personal Loans27%

Car Loans 15%

Mortgages 7%

* Private loans includes loans of BBVA Francés + VW


Market share

Retail banking

Personal loans(million AR$)

10,738

16,638 19,377

1Q17 4Q17 1Q18

+16.5%

+80.5%

4.2 4.6 4.9

Car loans(million AR$)

Market share

12,029

16,808 18,106

1Q17 4Q17 1Q18

+7.7%

+50.5%

19.2 17.9 17.8


The Bank has 6.3% market share in mortgages sales, non-considering state

owned banks the share is 25%

Market shareconsumption

Retail banking

Credit Cards(million AR$)

23,212

30,145 31,875

2,890 3,142 3,182

1Q17 4Q17 1Q18

Volume Stock

+16.5%

+37.3%

12.2 12.7 13.0

Mortgages(million AR$)

1,9252,072 3,025

4,458

5,882

70 131 4031,061

1,810 1,476

4Q16 1Q17 2Q17 3Q17 4Q17 1Q18

Morgages loans Morgages Sales

+205.5%

+31.9%


Commercial banking

Distribution by industry

Commercial Loans(million AR$)

Market share

42,450

70,547 75,716

1Q17 4Q17 1Q18

+7.3%

+78.4%

7.8 9.1 9.2

Consumer13%

Agro21%

Retailers18%

Basic Materials14%

Energy14%

Durable goods 7%

Capital goods5%

Infrastructure 3%Transportation

2%

Commercial Loans by currency

57%

43% AR$

USD


Sound risk indicators

NPL, Coverage and Cost of risk(%)

248.3% 253.1% 250.5%

0.8% 0.7% 0.7%

1.3% 1.3% 1.3%

0%

1%

2%

3%

4%

5%

1Q17 4Q17 1Q18

Coverage NPL Cost of Risk

1.7

0.7

1.0

1.6

2.2

System

BBVA

Peer 1

Peer 2

Peer 3

Opportunity

NPL peer group and Financial System(%)

1.48% 0.43% 0%

Retail SMEs CIB

NPL by segment(%)


Market share

Deposits

Total Deposits

(million AR$)

Deposits Structure

Deposits by currency

122,768

153,935 159,953

1Q17 4Q17 1Q18

+ 3.9%

+30.3%

64%

36%

AR$

USD

7.6 7.7 7.8

Personal Loans27%

Current accounts

18%

Saving accounts

48%

Time deposits

31%

Others 4%


Strong capital position

Capital RatioTier I

14.3%

13.8%

17.3%

14.7%15.7%

0%

5%

10%

15%

20%

1Q17 Follow-on 4Q17 1Q18Capital ratio

Minimum CapitalRequirement (8%)

Additional Buffer+3.5%

(*) Capital ratio according to the Central Bank regulation


Clients evolution

Total retail clients(million)

2.35

2.632.76

1Q17 4Q17 1Q18

New retail clients(thousand)

253270

344 300

2015 2016 2017 2018e

519 539 540

1Q17 4Q17 1Q18

Payroll accounts(thousand)

42,523 44,101

12,469 15,121

1Q17 1Q18Total CompaniesCredit qualified companies

SMEs by segment


Digital performance

% Digital clients

31.4%38.9% 35.5%

1Q17 4Q17 1Q18

47.8%

53.3%54.5%

1Q17 4Q17 1Q18

41% 38%

21%

43%

93%

50%

27%

18%

47%

95%

Personalloans

CreditCards

Insurance Timedeposits

MutualFunds

4Q2017

1Q2018

% Digital Sales(digital sales/total sales)

% Digital Sales by Product

(digital clients/retail clients)


1Q18 Highlights

01 Net Income

02 Net Financial Income

05 Sound risk indicators

06 Strong capital position

07 Focus on shareholder value

AR$ 5,522 +52.2% vs. 1Q17

NPL ratio0.7%

Capital Ratio 15.7%

TIER I14.3%

AR$ 1,545 +178.3% vs. 1Q17

03 Net Income from services

Coverage ratio250.5%

ROE20.3% Mar-18

AR$ 860 +36.2% vs. 1Q17

ROA2.9% Mar-18

04 Administrative Expenses AR$ 3,664 +25.8% vs. 1Q17

The consolidated financial statements as of March 31, 2018 are the first quarterly financial statements presented in accordancewith Communication “A” 6114 of the Central Bank of Argentina (BCRA) (“financial statements under IFRS regulations).


Net income and main indicators

Net Income

Efficiency

12.7%

25.9%20.3%

24.3% 22.2%

1Q17 4Q17 1Q18

IFRS adjusted Previous IFRS

1.4%

3.8%2.9%

2.4% 2.8%

1Q17 4Q17 1Q18IFRS adjusted Previous IFRS

68.4% 58.9% 57.4%

1Q 17 4Q17 1Q18

Administrative expenses / (Net Financial Income + Net Incomefrom Services)

564

1,9151,5661,606 1,421

1Q17 4Q17 1Q18IFRS adjusted Previous IFRS

million AR$

29

ROA

ROE


Net Interest Margin and NIM

Net FinancialIncome

306

728695

3,629

5,1825,522

1Q17 4Q17 1Q18Foreign exchange differences

Net Financial Income - Foreign exc dif

Figures in million AR$

14.0%12.6% 12.3%

1Q17 4Q17 1Q18

Total NIM (AR$+USD)

Total NIM AR$

Total NIM USD

16.6% 16.1%15.8%

1Q17 4Q17 1Q18

1.8%2.4%

2.8%

1Q17 4Q17 1Q18


Fees and Expenses

29

Net Income from services started to grow at a faster pace, showing a positive trend, while the

administrative expenses increase reflected a higher control.

Figures in million AR$

1,8972,422 2,481

-1,265 -1,573 -1,621

631849

860

1Q17 4Q17 1Q18

Services expensesServices incomeNet income from services

2,9123,550 3,664

1Q17 4Q17 1Q18

Net Income from services Administrative expenses

y/y30.8%

y/y28.11%

+25.8%


Annex


Figures in million $ 1Q-17 4Q-17 1Q-18 ∆ Q/Q ∆ Y/Y

Net Financial Income 3,629 5,182 5,522 6.6 52.2%

Provision for Loan Loses (314) (373) (526) 41.0% 67.3%

Net Income from Services 631 849 860 1.3% 36.2%

Administrative Expenses (2,912) (3,550) (3,664) 3.2% 25.8%

Operating Income 1,033 2,107 2,192 4.0% 102.5%

Income (Loss) from equity investments 73 52 40 -23.4% -45.3%

Other Income/Expenses (299) (166) (3) 98% n/a

Income Tax (244) (79) (663) 741% 171%

Net Income 564 1,421 1,566 -18.2% 177.9%

Income (Loss) from minority Interest 8 10 21 109% 149.0%

NET INCOME 555 1,905 1,545 -18.9% 178.3%

BBVA Francés P&L Breakdown


BBVA Francés1Q18

bbva francés 1q18...2018/03/01 · digital channels 1q18 results april 27th 2018 / 17 market share...

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