Edgar Filing: BBVA BANCO FRANCES SA

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Form 6-K

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

For the month of November 2018

Commission File Number: 001-12568

BBVA French Bank S.A.

(Translation of registrant’s name into English)

Reconquista 199, 1006

Buenos Aires, Argentina

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F ☒ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes ☐ No ☒

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes ☐ No ☒

Indicate by check mark whether by furnishing the information contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

Yes ☐ No ☒

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A

BBVA Banco Francés S.A.

TABLE OF CONTENTS


Item

1.		BBVA Francés reports consolidated third quarter earnings for fiscal year 2018.

Item 1

LOGO

Buenos Aires, November 23, 2018—BBVA Francés (NYSE: BFR.N; BCBA: FRA.BA;

LATIBEX: BFR.LA) reports consolidated third quarter results for the

January-December 2018 fiscal year.

The consolidated financial statements as of September 30, 2018 and as of June 30, 2018 are presented in accordance with Communication “A” 6114 of the Central Bank of Argentina (BCRA) (“financial statements under IFRS regulations”). For comparative purposes, the figures of the third quarter of 2017 are presented in accordance with IFRS.

Highlights of the Quarter

•

BBVA Francés’ net income amounted to AR$ 3,007.8 million for the third quarter of 2018, 41.6% higher than the net income registered for the second quarter of 2018 and 117.7% compared to the third quarter of 2017, restated for comparative purposes.

•

The return on average assets (ROA) was 4% and the return on average equity (ROE) was 34.8%, compared to 3.5% and 26.4%, in the previous quarter, respectively.

•

Net operating income amounted to AR$ 10,315.9 million, increasing by 27.2% compared to the second quarter of 2018, and by 71.4% compared to the third quarter of 2017. Operating expenses amounted to AR$ 6,185.4 million, showing an increase of 18.7% and 48.9% compared to such periods, respectively.

•

In terms of activity, the private sector loan portfolio increased by 10.2% in the third quarter, and by 61.2% in the last twelve months, reaching 8.38% market share, registering an increase of 33 bps compared to the market share of September 2017.

•

BBVA Francés maintains good asset quality indicators in an environment that shows certain signs of deterioration. As of September 30, 2018, the asset quality ratio (Non-Performing Loans/Total loans) stood at 0.99%, compared to 0.86% in the second quarter of 2018, with a coverage ratio of 220.5% (Total allowances/NPL).

•

Total deposits increased by 28.2% during the quarter and by 90.5% since the end of the third quarter of 2017.

•

As of September 30, 2018, BBVA Francés had a total consolidated capital ratio of 14.1%, which represents an excess of AR$ 15,295.1 million or 71.5% over the minimum required. The Tier I ratio reached 12.9%.

•

As of September 30, 2018, liquid assets accounted for 52.1% of the bank’s total deposits.

•

The bank continued to increase its client base, reaching a total of 2.9 million clients.

Other events

•

On July 5, 2018 BBVA Francés sold the properties located at Reconquista 40, Bolivar 501, Maipu 356 (unit 16), Perón 362, México 628 (unit 1) and Reconquista 281, to REPAR S.A, all of which are located in the City of Buenos Aires.

•

On October 30, 2018, BBVA Francés notarized its headquarters offices, Torre BBVA, located at Av. Leandro N. Alem 815, Buenos Aires. As a consequence of such notarization, USD 4.8 million was paid.

•

On November 8, 2018, BBVA Francés issued its Series 25 UVAs bond for AR$ 784.3 million, with 24 months maturity and 9.5% fixed interest rate payable quarterly.

Regulatory Changes

•

On June 18, 2018 the Central Bank of Argentina (BCRA), through its Communication ”A” 6526, increased the minimum cash balance requirement in two tranches, by 3% since June 21, 2018 and by another 2% since July 18, 2018. Integration with Treasury bonds, maturing on November 2020 at a rate of 26% is allowed.

Subsequently, such requirement was increased on other two occasions, by 3% on July 23, 2018 through BCRA’s Communication “A” 6533, and by another 3% on August 16, 2018, through Communication “A” 6550. In both cases, integration shall be in cash and shall not yield interests.

The BCRA then increased the minimum cash requirements on three occasions, by 5% on September 1, 2018, which could be integrated with Leliq/Nobac, by another 5% on September 16, 2018, which could be only integrated in cash and not yield interests for savings and checking accounts yet could be integrated with Leliq/Nobac only in the case of time deposits, and by an additional 5% on October 1, 2018, which could be integrated with LeliqINobac only in the case of time deposits.

•

IAS 29, requires that financial statements of an entity whose functional currency is the currency of a hyperinflationary economy, whether they are based on a historical cost approach or a current cost approach, shall be restated for changes in the general pricing power of the functional currency. In order to determine if an economy is hyperinflationary in accordance with IAS 29, the Standard provides a number of qualitative factors as well as a quantitative factor (whether the cumulative inflation rate over three years approaches or exceeds, 100%.

As a result of the increase in inflation during the first months of 2018, the Argentine economy is considered as hyperinflationary. Therefore, IAS 29 should be applied in connection with annual financial statements or interim financial statements ending after July 1, 2018. Likewise, figures for the past periods presented for comparative purposes should be also be restated.

However, as of the date of these financial statements, the Decree 664/03 from the Executive Branch and Communication “A” 3921 from the BCRA are in effect, preventing the filing of financial statements adjusted for inflation. Therefore, given this decree and the accounting framework established by the BCRA, BBVA Francés has not applied IAS 29 in the preparation of these financial statements.

Economic Environment


		Quarter ended
Main Macroeconomic figures		09-30-18			06-30-18			09-30-17
GDP	var % y/y		n/d			-4.2	%		3.8	%
Inflation (1) End of period	var % y/y		40.5	%		29.5	%		23.8	%
	var % q/q		14.1	%		8.8	%		5.1	%
CER	Quarterly adjustment		10.1	%		7.4	%		4.3	%
Exchange Rate	Pesos x US$		40.90			28.86			17.31
Reserves	US$		49,003			61,881			50,237
Fiscal Balance	Primary - billion of $		(47,490	)		(74,824	)		(78,093	)
Trade Balance	US$ (billion)		(1,589	)		(2,492	)		(2,544	)
Total Private Loans	var % q/q		11.1	%		14.9	%		12.5	%
	var % y/y		58.7	%		60.7	%		48.6	%
Total Private Deposits	var % q/q		19.0	%		18.6	%		3.8	%
	var % y/y		66.9	%		45.5	%		36.6	%
Interest rate	Monetary policy (eop)		65.0	%		40.0	%		26.3	%
	Badlar (weighted avg. quarterly)		37.1	%		27.1	%		20.7	%

(1)	IPC National since 1Q17

The global economy continues to show positive signs, although in a context of increasing uncertainty. Global growth has continued in recent months, despite increased protectionism between the USA and China and the appreciation of the U.S dollar; which reflected an increasing in financial tension in emerging economies. The U.S. Federal Reserve System (in a greater extent) and the European Central Bank continue to make progress toward normalization of the monetary policy, representing a gradual tightening of monetary conditions, which will continue to put some pressure on these economies.

- 2 -

In the domestic environment, the agreement reached between Argentina and the International Monetary Fund (IMF) in June 2018 did not restore confidence as expected and triggered a new round of capital outflows and strong depreciation of the peso during the third quarter of 2018, which only settled down after a renewed commitment to perform greater fiscal adjustments, which will aim to reach balance in 2019. In this context a new agreement with the IMF was reached, going from USD 50 billion to USD 56.7 billion and doubling the funds available for 2018 and 2019.

In addition, following the change in the BCRA President, the inflation-targeting plan was abandoned and a new monetary exchange system was established that seeks to keep the monetary base constant in nominal terms until June 2019 and establishes an exchange rate range of non-intervention, with limited intervention of the BCRA outside such range.

Year to date, the government has over-fulfilled its fiscal goals. The program with the IMF guarantees that Argentina will be able to fulfill its financial program this year with a roll-over of only 50% of the maturities of Letes in U.S. dollars and 100% of those denominated in pesos.

The economic activity was affected by the bad harvest due to the severe drought that occurred in the first months of the year and by the FX crisis. In the second quarter of 2018, GDP decreased 4.2% year-over-year, but the Monthly Estimator of Economic Activity (EMAE for its acronym in Spanish) with data up to August 2018 shows an incipient recovery in seasonally adjusted monthly variations that were positive in July (1.4%) and August (1.3%).

The Inflation rate increased since the end of the first quarter mainly due to the pass-through effect from the currency depreciation to prices. Inflation amounted to 14.1% in the period July-September, thus the National CPI accumulated a variation of 32.4% for the first nine months of 2018.

The labor market also begins to show the effects of a recession. The unemployment rate amounted to 9.6% in September 2018 compared to 7.2% in the fourth quarter of 2017.

In the third quarter of 2018, the trade balance reached a deficit of USD 1.6 billion, a contraction of 37% compared to the third quarter of 2017.

Due to the economy slowdown, the demand for credit has plunged. Thus, during the third quarter, the stock of loans to the non-financial private sector increased by 11.1% compared to the previous quarter and by 58.7% year-over-year, which implies a deceleration in comparison to the increase by 14, 9% and 60.7% of the second quarter for such periods, respectively.

Private sector deposits increased by 19.0% during the quarter and by 66.9% year-over-year, very similar to the second quarter, when private sector deposits increased by 18.6% and by 45.5% for such periods, respectively. It should be noted that deposits remain stable due to the limited impact of the FX situation on the financial sector.

Presentation of the Information

•

The consolidated financial statements as of September 30, 2018 and as of June 30, 2018 are presented in accordance with Communication “A” 6114 of the Central Bank of Argentina (BCRA) (financial statements under IFRS regulations). For comparative purposes, the amounts for the third quarter 2017 are presented in accordance with IFRS.

•

The information in this press release contains unaudited financial information that consolidates, line item by line item, all of the banking activities of BBVA Francés (Francés Valores and Francés Administradora de Inversiones). As of the first quarter of 2018, the Bank’s share interest in PSA Finance is no longer disclosed on a consolidated basis but is recorded as “Investments in associates” (recorded under the proportional equity method), and the corresponding results are recorded as “Income from associates”, as with Rombo Compañia Financiera. As of September 25, 2018, the Bank’s share interest in Volkswagen Financial Services is no longer disclosed on a consolidated basis.

•

The balances in foreign currency as of September 30, 2018 were converted into pesos at the reference exchange rate published by the BCRA for such date (AR$ 40.8967/USD).

- 3 -

•

The information in this press release may differ from the information published by the BBVA Group for Argentina, which is prepared according to IFRS 9 and the impact of inflation adjustment according to IAS 29.

Quarterly Results


										D% Quarter ended 09/30/18
Condensed Income Statement (1)				Quarter ended						vs Quarter ended
In thousands of pesos except EPS, ADS	09-30-18			06-30-18			09-30-17			06-30-18			09-30-17
Net interest income		6,564,330			6,018,130			3,452,178			9.1	%		90.2	%
Net fee income		1,855,906			756,103			754,664			145.5	%		145.9	%
Net income of financial instruments		138,510			(559,281	)		988,948			n/a			-86.0	%
Result from assets at amortised cost		12,774			(68,298	)		35			n/a			n/a
Foreign exchange difference		1,624,223			2,009,608			634,133			-19.2	%		156.1	%
Other operating income		1,152,946			759,728			785,157			51.8	%		46.8	%
Provision for loan losses		(1,032,752	)		(804,248	)		(596,238	)		28.4	%		73.2	%
Net operating income		10,315,937			8,111,742			6,018,877			27.2	%		71.4	%
Personnel expenses		(2,503,707	)		(1,929,968	)		(1,673,055	)		29.7	%		49.6	%
Administrative expenses		(1,826,091	)		(1,646,632	)		(1,285,047	)		10.9	%		42.1	%
Depreciation and amortization of assets		(219,784	)		(207.860	)		(166,418	)		5.7	%		32.1	%
Other operating expenses		(1,635,777	)		(1,428,480	)		(1,029,978	)		14.5	%		58.8	%
Operating Expenses		(6,185,359	)		(5,212,940	)		(4,154,498	)		18.7	%		48.9	%
Operating income		4,130,578			2,898,802			1,864,379			42.5	%		121.6	%
Income from associates and joint ventures		48,892			121,443			139,237			-59.7	%		-64.9	%
Net income before income tax		4,179,470			3,020,245			2,003,616			38.4	%		108.6	%
Income tax from continuing operations		(1,131,938	)		(866,387	)		(610,956	)		30.7	%		85.3	%
Net income including non-controlling shareholders		3,047,532			2,153,858			1,392,660			41.5	%		118.8	%
Net income attributable to non-controlling shareholders		39,691			29,938			11,174			32.6	%		255.2	%
Net Income		3,007,841			2,123.920			1,381,486			41.6	%		117.7	%
Other comprehensive income		(117,469	)		64,125			(40,009	)		n/a			193.6	%
Total net income		2,890,372			2,188,045			1,341,477			32.1	%		115.5	%
Earnings per share (2)		4.91			3.47			2.25			41.6	%		117.7	%
Earnings per ADS (3)		14.73			10.40			6.76			41.6	%		117.7	%

(1)	Exchange Rate: $ 40.8967 = u$s 1

(2)	Assumes 612,659,638 ordinary shares.

(3)	Each ADS represents three ordinary shares

BBVA Francés’ net income amounted to AR$ 3,007.8 million for the third quarter of 2018, registering an increase of 41.6% compared to the second quarter of 2018 and of 117.7% compared to the third quarter of 2017.

The accumulated net income for the first nine months of the year amounted to AR$ 6,677.1 million, registering a return on equity of 27.4% and on assets of 3.4%.

- 4 -


										Dbp Quarter ended 09/30/18
Main figures	Quarter ended									vs quarter ended
	09-30-18			06-30-18			09-30-17			06-30-18			09-30-17
ROA (Average Assets) (1)		4.0	%		3.5	%		3.1	%		50			86
Accumulated ROA		3.4	%		3.1	%		2.4	%		36			106
ROE (Average Shareholders’ Equity) (1)		34.8	%		26.4	%		22.4	%		840			1,246
Accumulated ROE		27.4	%		23.5	%		18.1	%		394			930
NIM (1)(2)		11.6	%		11.6	%		12.0	%		6			(35	)
NIM with foreign exchange difference (1)(2)		15.0	%		15.0	%		14.0	%		(3	)		96
Efficiency ratio (3)		46.7	%		49.5	%		54.9	%		(281	)		(822	)
Accumulated Efficiency ratio		50.3	%		52.8	%		60.4	%		(250	)		(1,014	)

(1)	Annualized.

(2)	NIM: ((Net interest income + Gross income tax NII+ Cost of deposits insurance) + (Net income of financial instruments + Results from assets at amortised cost - Non deliverable forward )) / Interest Earning Assets

(3)

(Personnel and administrative expenses + Depreciations and amortizations) / ((Net interest income + Gross Income Tax + Cost of the deposits insurance) + (Fee income + Net income of financial instruments + Results from assets at amortised cost + FX Difference + Fees included in other operating income))

Net Operating Income


										D% Quarter ended 09/30/18 vs
Net operating Income	Quarter ended									Quarter ended
In thousands of pesos	09-30-18			06-30-18			09-30-17			06-30-18			09-30-17
Net interest income		6,564,330			6,018,130			3,452,178			9.1	%		90.2	%
Net fee income		1,855,906			756,103			754,664			145.5	%		145.9	%
Net income of financial instruments		138,510			(559,281	)		988,948			-124.8	%		-86.0	%
Result from assets at amortised cost		12,774			(68,298	)		35			-118.7	%		n/a
Foreign exchange difference		1,624,223			2,009,608			634,133			-19.2	%		156.1	%
Other operating income		1,152,946			759,728			785,157			51.8	%		46.8	%
Provision for loan losses		(1,032,752	)		(804,248	)		(596,238	)		28.4	%		73.2	%
Net operating income		10,315,937			8,111,742			6,018,877			27.2	%		71.4	%

Net operating income amounted to AR$ 10,315.9 million, increasing by 27.2% compared to the second quarter of 2018 and by 71.4% compared to the third quarter of 2017.

As a clarification, a reclassification was performed during the third quarter due to the change in criteria regarding the deferral of credit card emission fees, which were previously recorded as net interest income and are now recorded as net fee income and other operating income.

The items that make up net operating income are disclosed in more detail below.

•

Net interest income


							D% Quarter ended
Net Interest Income	Quarter Ended						09/30/18 vs Quarter ended
(in thousands of pesos)	09-30-18		06-30-18		09-30-17		06-30-18			09-30-18
Interest Income		12,299,911		9,525,300		5,245,596		29.1	%		134.5	%
Loan interest income		8,535,228		7,402,591		4,844,840		15.3	%		76.2	%
Income from adjustments (CER/UVA)		977,884		513,337		112,941		90.5	%		765.8	%
Income from Public Securities		2,092,036		1,187,403		84,426		76.2	%		n/a
Others		694,763		421,969		203,389		64.6	%		241.6	%
Interest Expenses		-5,735,581		-3,507,170		-1,793,418		63.5	%		219.8	%
Interest Expenses		-5,513,716		-3,250,544		-1,781,955		69.6	%		209.4	%
Expenses from adjustments (CER/UVA)		-221,865		-256,626		-11,463		-13.5	%		n/a
Net Income Interest		6,564,330		6,018,130		3,452,178		9.1	%		90.2	%

Net interest income increased by 9.1% compared to the previous quarter and by 90.2% compared to the third quarter of 2017.

- 5 -

Without considering the aforementioned fee reclassification, net interest income would have increased by 21.6% and by 112% for such periods, respectively.

Compared to the second quarter of 2018, interest income increased by 37% whereas interest expenses increased by 63.5% mainly due to an abrupt rise in the interest rate that occurred in the quarter and certain deterioration in the funding mix.

Net interest income recorded a positive performance, sustained by the increasing rates of the system, and by an adequate price management in the different products, both in assets as in liabilities, in a volatile environment.

NIM


Interest-Earning Assets & Interest-Bearing							Quarter ended
Liabilities $ + USD	09-30-18						06-30-18						09-30-17
(Average in thousands of pesos)	Capital			Rate			Capital			Rate			Capital			Rate
Interest-Earning Assets		195,017,912			26.3	%		175,925,115			21.3	%		123,936,863			18.2	%
Interest-Bearing Liabilities		175,167,474			12.96	%		138,721,270			10.0	%		95,819,752			7.4	%
NIM without foreign exchange differences		11.62	%					11.56	%					11.97	%
NIM including foreign exchange differences		14.96	%					14.99	%					14.00	%
NIM $ without foreign exchange differences		14.27	%					14.64	%					14.32	%
NIM USD without foreign exchange differences		5.37	%					3.85	%					1.83	%

The net interest margin (NIM) including the results for foreign currency exchange differences amounted to 14.96%, maintaining similar levels with respect to the second quarter of 2018; while net of this effect, it registered an increase of 6 bps, amounting to 11.62%.

The NIM in local currency (excluding FX differences) amounted to 14.27%, decreasing by 37 bps, mainly due to the higher growth rate of the liabilities rate and the negative result of interest rate swaps.

The NIM in foreign currency increased by 152 bps, amounting 5.37%, mainly as a result of the increase in the loans rate.

The following table shows return on assets and cost of liabilities by currency: in pesos and U.S. dollars.


Interest-Earning Assets & Interest-Bearing						Quarter ended
Liabilities $	09-30-18					06-30-18					09-30-17
(Average in thousands of pesos)	Capital		Rate			Capital		Rate			Capital		Rate
Interest-Earning Assets		136,862,249		35.1	%		125,671,511		28.1	%		94,737,428		23.3	%
Public sector instruments		20,441,917		41.5	%		16,097,421		31.6	%		18,610,366		22.6	%
Loans		115,681,170		33.9	%		108,949,580		27.6	%		69,905,567		23.5	%
Other interest-earning assets		739,163		40.8	%		624,511		29.3	%		6,221,495		23.4	%
Interest-Bearing Liabilities		93,028,375		24.0	%		80,458,593		17.2	%		60,295,707		11.8	%
Saving Accounts		25,874,014		0.2	%		25,837,725		0.2	%		22,684,140		0.1	%
Time Deposits		48,467,831		32.5	%		44,114,943		24.4	%		31,547,072		18.2	%
Current accounts with interest		13,185,778		34.2	%		5,670,911		28.2	%		3,686,389		20.6	%
Debt Securities		1,714,760		39.7	%		1,772,129		30.2	%		1,128,352		23.8	%
Other interest-bearing liabilities		3,785,992		36.3	%		3,062,885		29.2	%		1,249,754		23.4	%


Interest-Earning Assets & Interest-Bearing						Quarter ended
Liabilities USD	09-30-18					06-30-18					09-30-17
(Average in thousands of pesos)	Capital		Rate			Capital		Rate			Capital		Rate
Interest-Earning Assets		58,155,663		5.5	%		50,253,604		4.4	%		29,199,435		2.7	%
Public sector instruments		6,606,976		7.4	%		10,489,064		5.3	%		4,081,066		2.9	%
Loans		50,268,084		5.4	%		38,466,819		4.3	%		20,810,951		2.7	%
Other interest-earning assets		1,280,602		1.2	%		1,297,721		1.1	%		4,307,418		2.7	%
Interest-Bearing Liabilities		82,139,099		0.4	%		58,262,678		0.2	%		35,407,677		0.1	%
Saving Accounts		62,958,906		0.0	%		46,406,985		0.0	%		28,491,001		0.0	%
Time Deposits		14,323,872		0.8	%		9,831,850		0.5	%		6,698,506		0.3	%
Current accounts with interest		109,912		0.0	%		132,734		0.0	%
Other interest-bearing liabilities		4,746,409		5.1	%		1,891,108		3.7	%		218,170		3.9	%

- 6 -

•

Net fee income


Net fee income	Quarter ended						D% Quarter ended 09/30/18 vs quarter ended
(in thousands of pesos)	09-30-18		06-30-18		09-30-17		06-30-18			09-30-17
Net fee income		1,855,906		756,103		754,664		145.5	%		145.9	%
Fee income		3,847,287		2,278,267		1,852,853		68.9	%		107.6	%
Fee charges on deposits accounts		934,307		886,958		667,729		5.3	%		39.9	%
Credit cards and operations		1,991,447		563,183		571,621		253.6	%		248.4	%
Checks		256,400		221,466		185,734		15.8	%		38.0	%
Capital markets and securities activities		35,673		27,307		46,592		30.6	%		-23.4	%
Fees related to foreign trade		136,280		108,711		76,818		25.4	%		77.4	%
Services of collection		373,897		317,097		183,104		17.9	%		104.2	%
Generated by subsidiaries		74,784		111,828		85,995		-33.1	%		-13.0	%
Other fees		44,499		41,717		35,260		6.7	%		26.2	%
Fee Expenses		-1,991,381		-1,522,164		-1,098,189		30.8	%		81.3	%

As mentioned above, a reclassification was performed during the third quarter due to the change in criteria regarding the deferral of credit card emission fees and, as a result, net fee income increased by 145.5% compared to the second quarter of 2018 and by 145.9% compared to the third quarter of 2017. Excluding this effect, the increase would have been of 7.9% and of 8.1% for such periods, respectively.

Excluding the effect of the reclassification, fee income increased by 25% compared to the second quarter of 2018 and by 51.5% compared to the third quarter of 2017, driven mainly by grater fees generated by services of collection, for fees charged on deposits accounts and for higher credit cards consumptions, that reflects the higher volume of activity and the higher prices. The quarter includes recurrent annual income, realized during the quarter.

BBVA Francés continues to gain market share in credit card consumption (during the quarter it increased by 51 bps) reaching 13.7% of the market.

Fee expenses increased by 30.8% over the quarter and by 81.3% compared to the third quarter of 2017, mainly due to fees related to the loyalty program and higher credit card processing charges.

In the new disclosure format applied beginning this quarter, certain fee items are accounted for in “Other operating income”.

•

Net income from measurement of financial instruments at fair value through profit or loss


Net income from measurement of financial instruments	Quarter ended									D% Quarter ended 09/30/18 vs quarter ended
at fail value through profit or loss (In thousands of pesos)	09-30-18			06-30-18			09-30-17			06-30-17			09-30-17
Net income of financial instruments at fail value		138,510			-559,281			988,948			-124.8	%		-86.0	%
Income from public securities		212,634			248,089			1,030,607			-14.3	%		-79.4	%
Income from private securities		163,077			118,936			(9,665	)		37.1	%		n/a
Income from interest rate swaps		(251,232	)		(433,324	)		(47,905	)		-42.0	%		424.4	%
Non deliverable forward		20,431			(502,779	)		(467	)		-104.1	%		n/a
Income from corporate bonds		(6,400	)		9,797			16,378			-165.3	%		-139.1	%

Net income from measurement of financial instruments at fair value recorded a gain in the third quarter of AR$ 138.5 million compared to a loss of AR$ 559.3 million registered in the second quarter of 2018.

This gain is due to the income from public and private securities, which was partially offset by the loss registered in connection with interest rate swaps.

- 7 -

•

Foreign Exchange Difference


Foreign Exchange Diffrerence	Quarter Ended						D% Quarter ended
(In thousands of pesos)	09-30-18		06-30-18		09-30-17		06-30-18			09-30-17
Foreign Exchange Difference		1,624,223		2,009,608		634,133		-19.2	%		156.1	%
FX trading		1,268,577		964,124		727,982		31.6	%		74.3	%
long/Short FX net balance		355,646		1,045,484		-93,849		-66.0	%		-479.0	%

Foreign exchange difference registered a higher result compared to the third quarter of 2017 due to both the devaluation of the peso during the quarter as well as greater buying and selling activity.

•

Other operating income


Other Operating Income	Quarter ended						D% Quarter ended
(In thousands of pesos)	09-30-18		06-30-18		09-30-17		06-30-18			09-30-17
Operating Income		1,152,946		759,728		785,157		51.8	%		46.8	%
Safe deposits		112,481		111,029		89,290		1.3	%		26.0	%
Insurance		172,985		168,979		173,376		2.4	%		-0.2	%
Fees on USD credit cards consumption		220,917		50,822		81,453		334.7	%		171.2	%
Interest on loans and fees related		214,465		118,979		113,484		80.3	%		89.0	%
Other fees		105,650		69,140		55,132		52.8	%		91.6	%
Total other fees		826,498		518,950		512,735		59.3	%		61.2	%
Other operating income		326,448		240,778		272,422		35.6	%		19.8	%

Other operating income registered an increase of 51.8% in the quarter and 46.8% over the year, mainly due to the increase in fees generated by the aforementioned reclassification.

Operating Expenses


Operating Expenses	Quarter ended									D% Quarter ended 09/30/18 vs
In thousands of pesos	09-30-18			06-30-18			09-30-17			06-30-18			09-30-17
Personnel expenses		(2,503,707	)		(1,929,968	)		(1,673,055	)		29.7	%		49.6	%
Administrative expenses		(1,826,091	)		(1,646,632	)		(1,285,047	)		10.9	%		42.1	%
Depreciation and amortization of assets		(219,784	)		(207,860	)		(166,418	)		5.7	%		32.1	%
Other operating expenses		(1,635,777	)		(1,428,480	)		(1,029,978	)		14.5	%		58.8	%
Operating Expenses		(6,185,359	)		(5,212,940	)		(4,154,498	)		18.7	%		48.9	%

Operating expenses amounted to AR$ 6,185.4 million, registering an increase of 18.7% and 48% compared to the previous quarter and to the third quarter of 2017, respectively.

The items that make up net operating expenses are analyzed in more detail below.

•

Personnel expenses and administrative expenses


Administrative and personnel expenses	Quarter ended									D% Quarter ended 09/30/18 vs quarter ended
(In thousands of pesos)	09-30-18			06-30-18			09-30-17			06-30-18			09-30-17
Personnel expenses		(2,503,707	)		(1,929,968	)		(1,673,055	)		29.7	%		49.6	%
Administrative expenses		(1,826,091	)		(1,646,632	)		(1,285,047	)		10.9	%		42.1	%
Electricity and Communications		(76,620	)		(68,331	)		(43,408	)		12.1	%		76.5	%
Advertising and Promotion		(88,421	)		(124,392	)		(109,252	)		-28.9	%		-19.1	%
Fees and external administrative services		(81,433	)		(76,380	)		(61,855	)		6.6	%		31.7	%
Taxes		(431,360	)		(349,683	)		(315,103	)		23.4	%		36.9	%
Rents		(222,143	)		(165,446	)		(125,628	)		34.3	%		76.8	%
Maintainance, conservation and repairs		(201,822	)		(175,265	)		(132,530	)		15.2	%		52.3	%
Security Service		(78,428	)		(66,631	)		(85,253	)		17.7	%		-8.0	%
Carriage of valuables		(249,620	)		(237,258	)		(160,235	)		5.2	%		55.8	%
Other		(396,244	)		(383,246	)		(251,783	)		3.4	%		57.4	%

Total Employees		6,095			6,084			6,142			11			1

Total Branches		251			251			251			0			0

- 8 -

Personnel expenses increased by 29.7% compared to the second quarter of 2018 and 49.6% compared to the third quarter of 2017, whereas administrative expenses increased by 10.9% and by 42.1% in such periods, respectively.

The increase in personnel expenses is mainly due to the update in salaries arising from the agreements signed with the labor union and its compensation schemes.

Administrative expenses increased during the quarter mainly due to an increase in rents, mainly as a result of the currency exchange rate effect, and an increase in taxes, as a result of higher activity levels, inflation and the increase in foreign currency exchange rates.

In addition, the maintenance, conservation and repairs line item includes a small impact in technology expenses due to the increase in the foreign currency exchange rate.

The efficiency ratio in the quarter amounted 47.9%, showing a decrease of 281 bps compared to the second quarter of 2018.

•

Other operating expenses


										D% Quarter ended 09/30/18 vs
Other Operating expenses	Quarter ended									Quarter ended
(In thousands of pesos)	09-30-18			06-30-18			09-30-17			06-30-18			09-30-17
Operating expenses		(1,635,777	)		(1,428,480	)		(1,029,978	)		14.5	%		58.8	%
Gross income tax		(1,190,211	)		(957,432	)		(597,028	)		24.3	%		99.4	%
Gross income tax NII		(899,410	)		(753,360	)		(397,806	)		19.4	%		126.1	%
Gross income tax fees		(290,801	)		(204,072	)		(199,222	)		42.5	%		46.0	%
Cost of deposits insurence		(86,186	)		(71,851	)		(55,018	)		20.0	%		56.7	%
Other operating expenses		(359,380	)		(399,197	)		(377,932	)		-10.0	%		-4.9	%

Other operating expenses registered an increase in gross income tax, due to the rise in interest rates, fees and the income by foreign currency exchange difference, during the period.

Income from associates

Income from associates shows the result of non-consolidated companies. During the third quarter a gain of AR$ 48.9 million was recorded, mainly due to the equity investment in PSA Finance, Rombo Compañia Financiera and Consolidar Seguros. The second quarter of 2018 included income resulting from the participation in Interbanking S.A.

- 9 -

Balance and activity

Loan portfolio


										D% Quarter ended 09/30/18 vs
Net loans	Quarter ended									quarter ended
(In thousands of pesos)	09-30-18			06-30-18			09-30-17			06-30-18			09-30-17
Private & Financial sector loans in $		116,528,630			114,137,222			83,076,333			2.1	%		40.3	%
Advances		16,396,066			14,190,618			10,801,453			15.5	%		51.8	%
Discounted and purchased notes		16,482,797			17,676,632			13,554,898			-6.8	%		21.6	%
Consumer Mortgages		8,718,885			7,357,341			3,026,278			18.5	%		188.1	%
Car secured loans		1,774,642			5,348,745			4,045,025			-66.8	%		-56.1	%
Personal loans		21,923,282			20,666,082			14,052,806			6.1	%		56.0	%
Credit cards		35,449,792			33,282,575			23,993,465			6.5	%		47.7	%
Loans to financial sector		9,587,944			6,094,170			3,432,610			57.3	%		179.3	%
Other loans		6,263,657			9,688,354			9,930,032			-35.3	%		-36.9	%
Other receivables		4,092,402			3,423,950			2,510,421			19.5	%		63.0	%
Unaccrued interest		(1,151,897	)		(919,522	)		(409,973	)		25.3	%		181.0	%
Less: Allowance for loan losses		(3,008,940	)		(2,671,723	)		(1,860,682	)		12.6	%		61.7	%
Private & Financial sector loans in FX		62,109,756			47,986,010			27,529,435			29.4	%		125.6	%
Advances		9,541			11,018			8,534			-13.4	%		11.8	%
Discounted and purchased notes		7,213,658			5,372,185			1,306,379			34.3	%		452.2	%
Credit cards		1,971,601			2,007,866			1,549,060			-1.8	%		27.3	%
Loans to financial sector		136,702			96,538			115,713			41.6	%		18.1	%
Other loans		53,447,923			40,821,518			24,750,909			30.9	%		115.9	%
Other receivables		322,309			186,381			80,115			72.9	%		n/a
Less: Allowance for loan losses		(991,978	)		(509,496	)		(281,275	)		94.7	%		252.7	%

Total Private Loans		178,638,386			162,123,232			110,605,768			10.2	%		61.5	%

Total loans to public sector		177			78			267			126.9	%		-33.7	%

Net Total Loans net of other non resident loans		178,638,563			162,123,310			110,606,035			10.2	%		61.5	%

As of the third quarter, Volkswagen Financial Services Compañia Financiera is no longer recorded on a consolidated basis. Such figures were recorded under car secured loans.

As of September 30, 2018, the private sector loan portfolio amounted to AR$ 178.6 billion, increasing by 10.2% during the quarter and by 61.2% in the last twelve months. If the participation of Volkswagen Financial Services would have been included, the private sector loan portfolio would have increase by 12.4% and 64.8% in such periods, respectively.

As of September 30, 2018 the market share of loans reached 8.38%, including loans from associated companies (VW Financial Services, PSA Finance and Rombo Compañia Financiera), showing an increase of 33 bps in the last 12 months.

Credit growth was affected during the third quarter by the devaluation of the peso and higher interest rates, resulting in a strong increase of loans in U.S dollars (increased by 29.4% in the quarter and by 125.6% in the last twelve months) mainly due to the re-expression of the new value of the currency and a mild growth in pesos of 2.1% and 39.9% respectively. Without taking into account the deconsolidation of Volkswagen, these would have increased 5.3% and 44.6% respectively.

On the one hand, with regard to loans to individuals, positive growth was recorded in connection with credit card and personal loans, while mortgages loans reflected the impact of the increasing inflation.

On the other hand, the increase showed by commercial loans is mainly due to the depreciation of the peso.

- 10 -

Asset quality ratios


Asset quality ratios	Quarter ended									D% Quarter ended 09/30/18 vs quarter ended
(in thousands of pesos)	09-30-18			06-30-18			09-30-17			06-30-18			09-30-17
Non-performing loans (1)		1,814,467			1,423,719			762,890			27.4	%		137.8	%
Allowance for loan losses		(4,000,918	)		(3,181,219	)		(2,141,957	)		25.8	%		86.8	%
Non-performing loans/net total loans		0.99	%		0.86	%		0.68	%		0.1	%		0.3	%
Non-performing priv. loans/net priv. loans		0.99	%		0.86	%		0.68	%		0.1	%		0.3	%
Allowance for loan losses/non-performing loans		220.50	%		223.44	%		280.77	%		-2.9	%		-60.3	%
Allowance for loan losses/net total loans		2.19	%		1.92	%		1.90	%		0.3	%		0.3	%

(1)	Non-performing loans include: all loans to borrowers classified as “Problem”, “Deficient Servicing”, “High Insolvency Risk”, “Difficult Recovery”, “Irrecoverable” and “Irrecoverable for Technical Decision” according to the new Central Bank debtor classification system.

As of September 30, 2018, the asset quality ratio (non-performing loans/total loans) was 0.99% with a coverage ratio (allowances/non-performing loans) of 220.5%.

BBVA Francés continues to show strong asset quality indicators even in a deteriorating environment. The asset quality ratio increased 13 bps compared to the previous quarter due to some deterioration of the portfolio while, compared to the third quarter of 2017 the ratio increased by 32 bps.

The cost of risk reached 1.71% recording an increase of 22 bps during the quarter.

The following table shows the evolution of provisions:


Evolution of provisions	Quarter ended									D% Quarter ended 09/30/18 vs quarter ended
(In thousands of pesos)	09-30-18			06-30-18			09-30-17			06-30-18			09-30-17
Balance at the beginning of the quarter		3,181,219			2,548,322			1,891,753			24.8	%		68.2	%
Increase/decrease		1,006,313			801,330			503,140			25.6	%		100.0	%
Increase/decrease-Foreign exchange diff.		213,237			154,646			7,461			37.9	%		n/a
Aplications / Reversals		(399,851	)		(323,079	)		(260,397	)		23.8	%		53.6	%
Balance at the end of the quarter		4,000,918			3,181,219			2,141,957			25.8	%		86.8	%

Public sector exposure


Public Sector Exposure	Quarter Ended									D% Quarter ended 09/30/18 vs quarter ended
(In thousands of pesos)	09-30-18			06-30-18			09-30-17			06-30-18			09-30-17
Bills and Notes from Central Bank		17,519,092			14,291,916			14,659,705			22.6	%		19.5	%
Treasury and national government		23,413,901			14.776.891			11,354,112			58.4	%		106.2	%
National Treasury Public Debt $		5,842,776			2,995,774			2,801,616			95.0	%		108.6	%
National Treasury Public Debt USD		9,517,768			5,651,068			4,222,922			68.4	%		125.4	%
Treasury Repos USD		8,053,358			6,130,049			4,329,575			31.4	%		86.0	%
Pesos subtotal		23,361,868			17,287,691			17,461,321			35.1	%		33.8	%
Dollars subtotal		17,571,125			11,781,117			8,552,497			49.1	%		105.5	%

Total Public Sector exposure		40,932,994			29,068,808			26,013,817			40.8	%		57.4	%

% National Government debt / Assets		7.0	%		5.5	%		6.1	%

Total exposure to the public sector amounted to AR$ 40.9 billion, increasing by 40.8% during the quarter.

- 11 -

Short-term liquidity was allocated in BCRA instruments, which increased by AR$ 3.2 billion or by 22.6% increase during the quarter.

National Government Debt, which represents 7% of the assets, increased AR$ 8.6 billion during the quarter.

The increase in debt in local currency is due to the acquisition of a 2-year bond that will be used to comply with the increase of 500 bps in the minimum cash requirement, disposed by the BCRA in June and July.

Foreign currency debt has an average term of 3 months and is composed of a Repo with the National Treasury for USD 197 million and short term Letes for USD 165.8 million. During the quarter these positions decreased by USD 28 million, however, due to the depreciation of the peso, their peso value increased by approximately AR$ 1.2 billion.

Deposits


Total deposits	Quarter ended						D% Quarter ended 09/30/18 vs quarter ended
(in thousands of pesos)	09-30-18		06-30-18		09-30-17		06-30-18			09-30-17
Deposits $ denominated		131,447,950		110,782,893		84,232,941		18.7	%		56.1	%
Current accounts		25,851,282		24,855,245		22,675,842		4.0	%		14.0	%
Saving accounts		49,061,002		36,962,990		26,529,775		32.7	%		84.9	%
Time deposits		54,608,085		46,739,380		32,960,166		16.8	%		65.7	%
Peso denominated		52,232,712		42,908,357		32,800,572		21.7	%		59.2	%
CER adjusted time deposits		2,375,373		3,831,023		159,594		-38.0	%		n/a
Other		1,927,581		2,225,278		2,067,158		-13.4	%		-6.8	%
Deposits FX denominated		115,780,018		82,074,380		45,560,684		41.1	%		154.1	%
Current accounts		524,978		189,557		69,669		176.9	%		n/a
Saving accounts		94,767,387		67,209,837		35,441,394		41.0	%		167.4	%
Time deposits		17,744,720		12,315,792		6.976,320		44.1	%		154.4	%
Other		2,742,933		2,359,194		3,073,301		16.3	%		-10.7	%

Total deposits		247,227,968		192,857,273		129,793,625		28.2	%		90.5	%

Total deposits amounted to AR$ 247.2 billion as of September 30, 2018, increasing by 28.2% compared to the previous quarter and by 90.5% compared to the third quarter of 2017.

Foreign currency deposits remained stable during the quarter, but their balance reflects the depreciation of the peso.

Deposits in local currency increased by 18.7% mainly due to increases in savings accounts and current accounts with interest.

Other funding sources


Other funding sources	Quarter ended						D% Quarter ended 09/30/18 vs quarter ended
(in thousands of pesos)	09-30-18		06-30-18		09-30-17		06-30-18			09-30-17
Lines from other banks		5,757,714		5,732,921		379,735		0.4	%		n/a
Senior Bonds		1,735,343		1,751.596		1,060,593		-0.9	%		63.6	%
Total other funding sources		7,493,057		7,484,517		1,440,328		0.1	%		420.2	%

The increase in lines from other banks corresponds mainly to funds to finance foreign trade operations.

- 12 -

Solvency


Central Bank Requirements	Quarter ended									D% Quarter ended 09/30/18 vs quarter ended
(In thousands of pesos)	09-30-18			06-30-18			09-30-17			06-30-18			09-30-17
CB Minimum Capital Requirements		21,388,509			19,213,740			15,653,816			11.3	%		36.6	%
Allocated to Asset at Risk		17,914,664			16,092,833			12,726,716			11.3	%		40.8	%
Market Risk		192,083			154,790			369,204			24.1	%		-48.0	%
Operational Risk		3,256,660			2,966,117			2,557,896			9.8	%		27.3	%
Non compliance with others cautios regulations		25,102			—			—			n/a
Bank Capital		36,683,596			34,211,408			28,020,200			7.2	%		30.9	%
Ordinary Capital Level 1 (*)		36,292,382			33,516,442			26,817,835			8.3	%		35.3	%
Dedusctions Ordinary Capital Level 1		(2,774,583	)		(2,165,117	)		(705,074	)		28.1	%		293.5	%
Capital Level 2		2,143,744			1,959,093			1,578,420			9.4	%		35.8	%
Additional Capital Level 1		1,022,053			906,990			329,019			12.7	%		210.6	%
Excess over Required Capital		15,295,087			15,003,668			12,366,384			1.9	%		23.7	%
Excess as % of the capital required		71.5	%		78.1	%		79.0	%		-8.4	%		-9.5	%
Risk weighted assets		260,520,258			234,312,709			191,039,187			11.2	%		36.4	%
*Capital Ratio (Central Bank rules) () ()		14.1	%		14.6	%		14.7	%		-3.6	%		-4.0	%
TIER I ()*		12.9	%		13.4	%		14.0	%		-3.8	%		-8.3	%

(*)	Bank capital I Risk weighted assets

(**)	Includes the 100% of the quarterly result

(***)

Ordinary capital level 1 I Risk weighted assets

BBVA Francés continues to show adequate solvency ratios. As of September 30, 2018 the capital ratio reached 14.1%, 52 bps lower than the ratio of June 30, 2018, mainly due to higher risk weighted-assets, mainly those denominated in foreign currency as a consequence of the devaluation of the peso.

The Tier 1 ratio was 12.9% and the excess over required capital was AR$ 15,295.1 million.

Additional information


	Quarter ended									D% Quarter ended 09/30/18 vs quarter ended
	09-30-18			06-30-18			09-30-17			06-30-18			09-30-17
Exchange rate $/USD		40.90			28.86			17.32			41.7	%		136.1	%
Quarterly CER adjustment		9.8	%		7.4	%		4.3	%		2.5	%		5.5	%

Disclaimer

This press release contains or may contain forward-looking statements, including but not limited to estimates of the prospects for the Argentine economy, BBVA Francés’ earnings, business plans, expense and operational structure adjustments, capitalization plan, and trends affecting BBVA Francés’ financial condition and results of operations. Any forward-looking statements included in this press release are based on current expectations and estimates, but actual results and events may differ materially from anticipated future results and events. Certain factors which could cause the actual results and events to differ materially from the expected results or events include: (1) macroeconomic, regulatory or political changes; (2) changes in domestic or international stock market prices, exchange rates or interest rates; (3) changes in the markets for BBVA Francés’ products and services; (4) increasing competition; (5) changes in technology; or (6) changes in the financial condition, creditworthiness or solvency of the customers, debtors or counterparts of BBVA Francés. These forward-looking statements on future events referring only to the date of the document should be taken cautiously. It is advisable to consult the Bank’s Financial Statements and all the documents filed from time to time with the Argentine Securities and Exchange Commission (“CNV”) and the Buenos Aires Stock Exchange

- 13 -

Conference Call

On Friday November 23, 2018 at 15:30 hs (Argentine time) a conference call will be held to comment on the quarter’s results.

Those who wish to participate should use the following dial-in numbers:

+ 54-11-39845677 (from Argentina)

+ 1-844-450-3851 (from the United States)

+ 1-412-317-6373 (from other countries)

Conference ID: BBVA.

To access the webcast:

http://webcastlite.mziq.com/cover.html?webcastId=5b82b6c4-2874-4acc-a236-70270063c596

To request the Replay, please dial -in

+1-877-344-7529 (from the United States)

+1-412-317-0088 (from other countries)

The replay will be available until December 5, 2018.

Replay Access code: 10126428

Internet

This Press Release is available on the web page of BBVA Francés.

www.bbvafrances.com.ar

Contacts

Cecilia Acuña

Investor Relations

(5411) 4341-5036

ceciliaviviana.acuna@bbva.com

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

BALANCE SHEET (in thousands of pesos)

Communication “A” 6114

09-30-18

06-30-18

09-30-17

Cash and due from banks

87,821,856

54,530,632

27,723,142

Debt securities at fair value through other comprehensive income

475,431

2,735,529

5,498,255

Derivatives

63,881

104,250

92,221

Repurchase agreements

9,582,646

6,367,328

5,116,152

Other financial assets

6 ,707,106

5,897,674

5,789,131

Loans and other financial intermediation

178,638,563

162,123,310

110,606,035

Loans to the private & financial sector

178,638,386

162,123,232

110,605,768

Public Sector loans

177

267

Other debt securities

30,982,187

18,544,550

14,825,176

Financial assets pledged as collateral

6 ,301,957

5,155,840

3,731,108

Current income tax assets

385

1,056

6,298

Investments in equity instruments

129,234

120,978

68,500

Investments in associates and joint ventures

1,781,225

1,087,893

1,091,497

Property, plant and equipment

9,172,910

9,136,878

9,095,509

Intangible assets

596,310

542,054

407,917

Deferred income tax asset

100,826

22,311

14,263

Other non financial assets

1,375,031

1,350,209

1,133,037

Non-current assets held for sale

252,805

507,630

—

Total Assets

333,982,353

268,228,122

185,198,241

Deposits

247,227,968

192,857,273

129,793,625

Current accounts

26,376,260

25,044,802

22,745,511

Saving accounts

143,828,389

104,172,827

61,971,169

Time deposits

72,352,805

59,055,172

39,936,486

Investment Accounts

—

1,112

Rescheduled deposits CEDROS

1,951

Other deposits

4,668,563

4,582,521

5,138,508

Liabilities at fair value trhough other comprehensive income

1,345,749

143,495

44,415

Derivatives

4,431,577

2,277,241

161,965

Repurchase agreements

—

936,751

1,243,160

Other financial liabilities

21,934,634

17,727,818

13,344,875

Financing received the BCRA and other financial insitutions

5,757,714

5,732,921

380,642

Corporate bonds issued

1,735,343

1,751,596

1,057,492

Current income tax liabilities

2,548,311

1,409,535

973,245

Provisions

3,448,015

3,374,177

2,182,974

Other provisions

3,446,583

3,372,628

2,181,870

For eventual compromises

1,432

1,549

1,104

Deferred income tax liabilities

48,074

343,100

829,957

Other non-financial liabilities

9,776,753

8,258,653

6,378,518

Total Liabilities

298,254,138

234,812,560

156,390,868

Total Stockholders’ equity

35,699,118

32,861,689

28,509,307

Equity Investments

29,097

553,873

298,066

Total liabilities + stockholders’ equity

333,982,353

268,228,122

185,198,241

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

INCOME STATEMENT (in thousands of pesos)

Communication “A” 6114


	09-30-18			06-30-18			09-30-17
Interest Income		12,299,911			9,525,300			5,245,596
Interest on loans to the financial sector		451,780			351,772			182,139
Interest on overdraft		1,861,503			1,177,920			737,188
Interest on documents		1,513,877			1,090,927			530.848
Interest on mortgages loans		207,595			169,956			91,288
Interest on car secured loans		360,215			337,965			231,298
Interest on credit card loans		1,395,515			1,885,704			1,437,338
Interest on financial leases		134,487			129,239			101,070
Interest on personal loans		1,624,393			1,532,737			1,033,427
Interest on other loans		983,350			724,107			498,529
From other banking receivables from financial intermediation		2,513			2,264			1,715
CER adjustment		12,124			6,705			78,412
UVA adjustment		965,760			506,632			34,529
Income from Public Securities		2,092,036			1,187,403			84,426
Other		694,763			421,969			203,389
Interest Expenses		(5,735,581	)		(3,507,170	)		(1,793,418	)
Interest on Current Account Deposits		(1,139,396	)		(417,615	)		(191,736	)
Interest on Saving Account Deposits		(26,624	)		(26,894	)		(8,785	)
Interest on Time Deposits		(3,768,514	)		(2,438,015	)		(1,437,926	)
Interest on interfinancing received loans		(26,756	)		(18,567	)		(5,794	)
Interest on other financing from the financial institutions		(117,761	)		(49,652	)		(113	)
Interest on other liabilites from financial intermediation		(416,389	)		(256,177	)		(88,996	)
Other interest		(45	)		(50	)		(166	)
UVA adjustment		(221,865	)		(256,626	)		(11,463	)
Other		(18,231	)		(43,574	)		(48,439	)
Net interest income		6,564,330			6,018,130			3,452,178
Net fee income		1,855,906			756,103			754,664
Net income of financial instruments		138,510			(559,281	)		988,948
Result from assets at amortised cost		12,774			(68,298	)		35
Foreign exchange difference		1,624,223			2,009,608			634,133
Other operating income		1,152,946			759,728			785,157
Provision for loan losses		(1,032,752	)		(804,248	)		(596,238	)
Net operating income		10,315,937			8,111,742			6,018,877
Personnel expenses		(2,503,707	)		(1,929,968	)		(1,673,055	)
Administrative expenses		(1,826,091	)		(1,646,632	)		(1,285,047	)
Depreciations and amortizations		(187,696	)		(176,910	)		(134,022	)
Depreciation on Intangible assets		(32,088	)		(30,950	)		(32,396	)
Other operating expenses		(1,635,777	)		(1,428,480	)		(1,029,978	)
Operating income		4,130,578			2,898,802			1,864,379
Income from associates and joint ventures		48,892			121,443			139,237
Net income before income tax from continuing operations		4,179,470			3,020,245			2,003,616
Income tax from continuing operations		(1,131,938	)		(866,387	)		(610,956	)
Net income Including non-controlling shareholders		3,047,532			2,153,858			1,392,660
Net income attributable to non-controlling shareholders		39,691			29,938			11,174
Net Income		3,007,841			2,123,920			1,381,486
Other comprehensive income		(117,469	)		64,125			(40,009	)
Total income attributable to controlling shareholders		2,890,372			2,188,045			1,341,477

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BBVA Banco Francés S.A.

Date: November 23, 2018

/s/ Ernesto Gallardo Jimenez

Name: Ernesto Gallardo Jimenez

Title: Chief Financial Officer