BBVA Francés - BBVA Argentina - BBVA · 3,90 3,72 3,60 2,85 NACION PROVINCIA SAN GALI BBVA FRANCES...

BBVA FrancésCorporate Presentation

2°Quarter 2015

New standard in customer experience

Drive digital sales

New business models

Optimize capital

allocation

Unrivalled efficiency

A first class

workforce

2,61,3 1,4 1,0 1,3 1,0

mar-14 jun-14 sep-14 dic-14 mar-15 jun-15

7.79.5

10.9

2009 2010 2011 2012 2013

CPI Monthly CPI.Nu

0,05%

9,45%8,39%

0,80%

2,89%

0,50%1,40% 1,70%

2009 2010 2011 2012 2013 2014 2015e 2016e

2009 2011 2013 2015e

2009 2011 2013 2015e 2009 2011 2013 2015e

2009 2011 2013 2015e

2009 2010 2011 2012 2013 2014

Private Sector Deposits/GDP Private Sector Loans/GDP

Source: BCRA

Expansion of the retail loan portfolio

Source: BCRA.

0

40.000

80.000

120.000

160.000

200.000

240.000

280.000

320.000

360.000

Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15

Car loans Personal Credit Cards Mortgages

An important player with capacity to increase its participation

Financial system as of March 2015; Private MS as of June 2015

28,56

9,37

7,38

6,61

5,40

5,04

3,90

3,72

3,60

2,85

NACION

PROVINCIA

SAN

GALI

BBVA FRANCES

MACRO

CREDICCOP

HSBC

CIUDAD

PATAGONIA

6.56%6.69%Deposits Loans

19,18

8,80

8,55

7,80

6,30

6,11

4,27

4,05

3,27

3,23

NACION

PROVINCIA

SAN

GALI

MACRO

BBVA FRANCES

CIUDAD

HSBC

PATAGONIA

ICBC

Private market share Private market share

00000

75,95

24,0710,08

13,88

Equity Ownership

ADRs

ORDs

Since 1996

Mkt Cap $ 37,367 MMUS$ 4,112 MM

P/E $ 14,00

BV/ Share $ 21.48

Mkt data as of June 30, 2015

Floating

Mkt Data

Av. Volume (3 mths) NYSE US$ 3.8 MMBCBA $ 4.6 MM

Indicators

ORDs

Ratings

Fix SCR* Shares 1 Negative

Negotiable Obligations Global Program (U$S 750 million) AA(arg)

Subordinated Senior Debt AA- (arg)Senior Debt Short Term A1+ (arg)Senior Debt Long Term AA (arg)

S&P Institutional Rating Long Term raB+ Negative

Institutional Rating ShortTerm raB

Negotiable Obligations Global Program (U$S 750 million) raB+ Negative

*In November 2013, Fitch Argentina sold 70% of its capital stock to a local investor group and changed its name to Fix Scr. This new group will be responsible for the local credit rating.

Income growth Risks

Liquidity Profitability

2Q-15Remarks

Key lever

Digital transformation

Strong fundamentals

Net IncomeNPL

Liquid Assets/Deposits

$ 667,2

+67% vs 2Q14

0.89%

41.9%

2Q-15Remarks

Key lever

Digital transformationCoverage

235.9%

Strong fundamentals

ROE

29.2%

ROA

4.0%

Liquidity Profitability

Income growth Risks

Digital transformation framework

Digital Sales

Distribution Model

DigitalCapabilities

InfraestructureDevelopment

Organization & Culture

Customer Experience

Figures in thousands of pesos

2°Q-15 1°Q-15 2°Q-14 ∆ Y/Y

Net Financial Income 1,973,233 2,285,033 1,436,050 37.4%

Provision for Loan Losses (181,178) (143,097) (151,729) 19,4%

Net Income from Services 800,607 960,451 813,890 -1,6%

Administrative Expenses (1,472,263) (1,581,333) (1,319,873) 11,5%

Operating Income 1,120,399 1,521,054 778,338 43.9%

Income tax (452,932) (492,468) (373,447) 21.3%

Net Income 667,210 930,946 399,051 67.2%

Net Income (ex NR effects) 710,145 716,032 488,951 45.2%

P&L breakdown

+26%adjusted

+23%adjusted

*During the quarter, the Bank

1.436

2.2851.973

Jun.14 Mar.15 Jun.15

Net interest margin

Figures in millions of pesos

Net financialincome

15,65%

16,60%

15,69%


Private SpreadAverage spread ($)

- 91 pb + 4 pb

2Q15 vs 1Q15 2Q15 vs 2Q14

Jun15’ vs Jun14’

+37%

814

960

801


Fees and Expenses


748

905862


572

676

610


Net Income from Services

Personnel expenses grew 22%(adjusted) compared to 2Q-14.reflecting mainly the salary increaseagreed with the union, a highernumber of employees andefficiencies as a result oforganizational changes in 2014.

General expenses grew due tohigher prices, our ATM renovationprogram and higher amortizationsrelated to improvement workscarried out at the headquarters’ andbranches.

Personnel expenses

General expenses

- 17% - 2%

2Q15 vs 1Q15 2Q15 vs 2Q14

AssetsLiabilities + Equity

12.630

47.014

11.514

13.646

11.530

15.980

60.016

Solid balance sheet structure


Cash and Banks

Private Loans

Deposits

Others

Net Worth

BCRA Notes

Public sector assets

87,526 87,526

Others

16%

13%

54%

3%

14%

68%

18%

13%

Leverage 6.6xLoans/

Deposits 78.3%LiquidAssets/

Deposits41.9%

51%

29%

20%37.910

43.08447.014


Private loan portfolio with a diversified structure


Credit Cards28%

Personal Loans13%

Car Loans 8%Mortgages 4%

Corporate

Middle-Market

Retail

+24%y/y

AverageLending Rate ($) 25.2%

6.060

5.764

5.965


5.975

6.182

6.353


Market Share (%) 18.89 17.36 17.00

Market Share (%) 5.74 4.91 4.69

(*) Car loans include joint ventures


Personal Loans

Car Loans (*)

Retail Banking

+ 3 % + 6 %

2Q15 vs 1Q15 2Q15 vs 2Q14

+ 3 % - 2 %

2Q15 vs 1Q15 2Q15 vs 2Q14

Credit cards: the strategy is to gain market share, making the product more profitable

Market Shareof total purchasings

Advertising + Promotions /Income

11,83%

12,07%

12,33%


52,4% 51,6%

64,0%


Middle-Market

Commercial loan portfolio

Market Share (%) 9.89 10.10 9.97

Corporate

Market Share (%) 14.56 13.93 14.25

11.32513.093 14.528


7.8617.322

8.388


+11 % +28%

2Q15 vs 1Q15 2Q15 vs 2Q14

+15% + 7%

2Q15 vs 1Q15 2Q15 vs 2Q14


2.407 2.797 2.662

5.779

10.014 9.156

Others

BCRA Bills & Notes(own portfolio)

Public bonds

The bank complies with Rule 3991 from the Central Bank, which restricts public sector exposure to 35% of total assets as of July ‘07

8,235 12,868 11,874

3.6% 3.5% 3.1%


Important participation of bills & notes issued by the Central Bank

Asset quality remains at good levels, despite an environment thatshows deterioration

NPL peer group and Financial System(Feb15’)

NPL by business areas

Retail 1.62% Middle-Market 0.20% Corporate 0.00%

218,19% 234% 235,99%

0,97%

0,92%

0,89%

1%

1%

1%

1%

1%

1%

1%

1%

Coverage NPL

System

BBVA

Peer 1

Peer 2

Peer 3

Deposits: improving the funding mix


48.050

55.35860.016


Sightaccounts

57% 65%

35%

TD < 1MM

TD > 1MM

Averagecost of funds ($) 9.5%

+25%y/y

+28%

Negotiable Obligations

7 08-11-13 36 months (2016) BADLAR + 4.24% $ 250.0 MM

8 02-11-14 18 months (2015) BADLAR + 3.80% $ 258.8 MM

9 02-11-14 36 months (2017) BADLAR + 4.70% $ 145.1 MM

10 07-18-14 18 months (2016) BADLAR + 2.50% $ 233.8 MM

11 07-18-14 36 months (2017) BADLAR + 3.75% $ 165.9 MM

12 11-13-14 18 months (2016) BADLAR +2.53% $ 130.3 MM

13 11-13-14 36 months (2017) BADLAR +3.75% $ 107.5 MM

14 02-13-15 9 months (2015) 25.75% $ 134.3 MM

15 02-13-15 21 months (2016) BADLAR + 4.00% $ 144.9 MM

16 07-30-15 24 months (2017) BADLAR + 3.75% $ 204.4 MM

Fix Rating AA (Arg)

Efficiency and coverage ratios

Efficiency Ratio (1)

Coverage ratio (2)

(1) Adm.Expenses / (Net financial income + Net income from services)Removing the non-recurring effects.

(2) Net fee Income as a % of Administrative Expenses

56,30%

53,10%

50,30%


61,70% 60,70%

54,40%


- 280 pb - 600 pb

2Q15 vs 1Q15 2Q15 vs 2Q14

- 630 pb - 730 pb

2Q15 vs 1Q15 2Q15 vs 2Q14

43,90

36,60

29,20

ROE

5,70

4,90

4,00

ROA

* Accumulated ratios

Intermediation with theprivate sector

Good asset qualityEfficient operating

structureBalance sheet strength

(Capital & Liquidity)

BBVA FrancésCorporate Presentation

2°Quarter 2015

BBVA Francés - BBVA Argentina - BBVA · 3,90 3,72 3,60 2,85 NACION PROVINCIA SAN GALI BBVA FRANCES...

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