Form 6-K BBVA BANCO FRANCES SA For: Nov 18

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November 18, 2014 8:32 AM EST

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�

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

�

FORM 6-K

�

Report of Foreign Issuer

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

of the Securities Exchange Act of 1934

For the month of November, 2014

Commission File Number: 001-12568

�

BBVA FRENCH BANK S.A.

(Translation of registrant�s name into English)

�

Reconquista 199, 1006

Buenos Aires, Argentina

(Address of principal executive offices)

�

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

Form 20-F��x��Form 40-F��

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

Yes��No� �x

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

Yes��No� �x

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

Yes��No� �x

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

�

BBVA French Bank S.A.

TABLE OF CONTENTS

�


Item	��	�

1.	��	Financial Statements as of September� 30, 2014 together with Independent Auditors� Limited Review Report

�


�		�

�	FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2014 TOGETHER WITH INDEPENDENT AUDITORS� LIMITED REVIEW REPORT.	�


	�	- 1 -	�

�

BALANCE SHEETS AS OF SEPTEMBER 30, 2014 AND DECEMBER 31, 2013

(Translation of financial statements originally issued in Spanish - See note 19)

-Stated in thousands of pesos-

�


ASSETS:	�	��09-30-2014��			��	��12-31-2013��

A. CASH AND DUE FROM BANKS:	�		�		��		�
Cash	�		�	2,320,882	��		�	2,063,190
Due from banks and correspondents	�		�	10,149,801	��		�	10,782,106

	�		�	�	��		�	�

Argentine Central Bank (BCRA)	�		�	9,803,241	��		�	10,546,478
Other local	�		�	2,458	��		�	2,795
Foreign	�		�	344,102	��		�	232,833

	�		�	�	��		�	�

	�		�	12,470,683	��		�	12,845,296

	�		�	�	��		�	�
B. GOVERNMENT AND PRIVATE SECURITIES:	�		�		��		�
Holdings booked at fair value (Exhibit A)	�		�	2,562,936	��		�	1,982,038
Holdings booked at amortized cost (Exhibit A)	�		�	164	��		�	164
Instruments issued by the BCRA (Exhibit A)	�		�	7,031,106	��		�	1,408,487
Investments in listed private securities (Exhibit A)	�		�	384	��		�	90
Less: Allowances (Exhibit J)	�		�	204	��		�	196

	�		�	�	��		�	�

	�		�	9,594,386	��		�	3,390,583

	�		�	�	��		�	�
C. LOANS:	�		�		��		�
To government sector (Exhibits B, C and D)	�		�	51,945	��		�	40,915
To financial sector (Exhibits B, C and D)	�		�	2,267,379	��		�	2,879,947

	�		�	�	��		�	�

Interfinancial � (Call granted)	�		�	60,000	��		�	280,000
Other financing to local financial institutions	�		�	1,740,850	��		�	2,172,548
Interest and listed-price differences accrued and pending collection	�		�	466,529	��		�	427,399

To non financial private sector and residents abroad (Exhibits B, C and D)	�		�	37,850,594	��		�	32,740,843

	�		�	�	��		�	�

Overdraft	�		�	7,311,296	��		�	6,552,258
Discounted instruments	�		�	6,303,691	��		�	5,476,961
Real estate mortgage	�		�	1,387,004	��		�	1,243,900
Collateral Loans	�		�	1,457,802	��		�	1,178,092
Consumer	�		�	5,977,109	��		�	5,998,691
Credit cards	�		�	9,383,445	��		�	7,429,187
Other	�		�	5,562,745	��		�	4,446,498
Interest and listed-price differences accrued and pending collection	�		�	598,675	��		�	547,469
Less: Interest documented together with main obligation	�		�	131,173	��		�	132,213

Less: Allowances (Exhibit J)	�		�	839,712	��		�	680,651

	�		�	�	��		�	�

	�		�	39,330,206	��		�	34,981,054

	�		�	�	��		�	�
D. OTHER RECEIVABLES FROM FINANCIAL TRANSACTIONS:	�		�		��		�
Argentine Central Bank (BCRA)	�		�	452,910	��		�	624,368
Amounts receivable for spot and forward sales to be settled	�		�	3,805,054	��		�	260,046
Instruments to be received for spot and forward purchases to be settled	�		�	1,965,684	��		�	72,567
Unlisted corporate bonds (Exhibits B, C and D)	�		�	40,397	��		�	9,713
Non-deliverable forward transactions balances to be settled	�		�	89,430	��		�	8,266
Other receivables not covered by debtor classification regulations	�		�	1,454	��		�	4,135
Other receivables covered by debtor classification regulations (Exhibits B, C and D)	�		�	222,009	��		�	172,342
Less: Allowances (Exhibit J)	�		�	1,575	��		�	1,209

	�		�	�	��		�	�

	�		�	6,575,363	��		�	1,150,228

	�		�	�	��		�	�
E. RECEIVABLES FROM FINANCIAL LEASES:	�		�		��		�
Receivables from financial leases (Exhibits B, C and D)	�		�	1,909,868	��		�	1,699,070
Interest accrued pending collection (Exhibits B, C and D)	�		�	25,807	��		�	20,692

Less:��Allowances (Exhibit J)	�		�	25,318	��		�	21,186

	�		�	�	��		�	�

	�		�	1,910,357	��		�	1,698,576

	�		�	�	��		�	�
F. INVESTMENTS IN OTHER COMPANIES:	�		�		��		�
In financial institutions (Exhibit E)	�		�	469,216	��		�	316,688
Other (Note 5.a.) (Exhibit E)	�		�	148,471	��		�	143,411

	�		�	�	��		�	�

	�		�	617,687	��		�	460,099

	�		�	�	��		�	�
G. OTHER RECEIVABLES:	�		�		��		�
Other (Note 5.b.)	�		�	1,481,591	��		�	1,276,095
Other interest accrued and pending collection	�		�	658	��		�	3,478
Less:��Allowances (Exhibit J)	�		�	309,677	��		�	277,334

	�		�	�	��		�	�

	�		�	1,172,572	��		�	1,002,239

	�		�	�	��		�	�

H. PREMISES AND EQUIPMENT (Exhibit F):	�		�	806,963	��		�	704,406

	�		�	�	��		�	�

I. OTHER ASSETS (Exhibit F):	�		�	1,029,575	��		�	646,702

	�		�	�	��		�	�
J. INTANGIBLE ASSETS (Exhibit G):	�		�		��		�
Organization and development expenses	�		�	142,959	��		�	120,637

	�		�	�	��		�	�

	�		�	142,959	��		�	120,637

	�		�	�	��		�	�

K. SUSPENSE ITEMS:	�		�	7,720	��		�	5,291

	�		�	�	��		�	�

TOTAL ASSETS:	�		�	73,658,471	��		�	57,005,111

	�		�	�	��		�	�


	�	- 2 -	�

�

(Contd.)

�

BALANCE SHEETS AS OF SEPTEMBER 30, 2014 AND DECEMBER 31, 2013

(Translation of financial statements originally issued in Spanish - See note 19)

-Stated in thousands of pesos-

�


LIABILITIES:	�	��09-30-2014��			��	��12-31-2013��

L. DEPOSITS (Exhibits H and I):	�		�		��		�
Government sector	�		�	3,835,304	��		�	2,780,304
Financial sector	�		�	32,224	��		�	45,961
Non financial private sector and residents abroad	�		�	45,775,669	��		�	40,948,509

	�		�	�	��		�	�

Checking accounts	�		�	13,151,814	��		�	9,958,520
Savings deposits	�		�	12,633,809	��		�	11,903,124
Time deposits	�		�	18,689,581	��		�	17,914,786
Investments accounts	�		�	677	��		�	4,027
Other	�		�	984,806	��		�	916,985
Interest and listed-price differences accrued payable	�		�	314,982	��		�	251,067

	�		�	�	��		�	�

	�		�	49,643,197	��		�	43,774,774

	�		�	�	��		�	�

M. OTHER LIABILITIES FROM FINANCIAL TRANSACTIONS:	�		�		��		�
Argentine Central Bank (Exhibit I)	�		�	78,275	��		�	93,746

	�		�	�	��		�	�

Other	�		�	78,275	��		�	93,746

Banks and International Institutions (Exhibit I)	�		�	492,815	��		�	106,178
Unsubordinated corporate bonds (Exhibit I)	�		�	1,425,003	��		�	621,357
Amounts payable for spot and forward purchases to be settled	�		�	1,966,265	��		�	63,298
Instruments to be delivered for spot and forward sales to be settled (Exhibit O)	�		�	3,830,247	��		�	273,672
Non-deliverable forward transactions balances to be settled	�		�	322	��		�	46,755
Other (Note 5.c.) (Exhibit I)	�		�	3,600,819	��		�	2,525,646
Interest and listed-price differences accrued payable (Exhibit I)	�		�	63,926	��		�	24,319

	�		�	�	��		�	�

	�		�	11,457,672	��		�	3,754,971

	�		�	�	��		�	�

N. OTHER LIABILITIES:	�		�		��		�

Other (Note 5.d.)	�		�	2,313,821	��		�	1,666,844

	�		�	�	��		�	�

	�		�	2,313,821	��		�	1,666,844

	�		�	�	��		�	�

O. ALLOWANCES (Exhibit J):	�		�	692,819	��		�	622,704

	�		�	�	��		�	�

P. SUSPENSE ITEMS:	�		�	33,443	��		�	29,638

	�		�	�	��		�	�

TOTAL LIABILITIES:	�		�	64,140,952	��		�	49,848,931

	�		�	�	��		�	�

STOCKHOLDERS� EQUITY: (as per the related statements of changes in stockholders� equity)	�		�	9,517,519	��		�	7,156,180

	�		�	�	��		�	�

TOTAL LIABILITIES AND STOCKHOLDERS� EQUITY:	�		�	73,658,471	��		�	57,005,111

	�		�	�	��		�	�


	�	- 3 -	�

�

MEMORANDUM ACCOUNTS

(Translation of financial statements originally issued in Spanish - See note 19)

-Stated in thousands of pesos-

�


�	�	��09-30-2014��			��	��12-31-2013��
DEBIT ACCOUNTS	�		�		��		�

Contingent	�		�		��		�
��Guaranties received	�		�	11,171,341	��		�	9,731,412
��Contra contingent debit accounts	�		�	1,483,744	��		�	1,290,370

	�		�	�	��		�	�

	�		�	12,655,085	��		�	11,021,782

	�		�	�	��		�	�
Control	�		�		��		�
��Receivables classified as irrecoverable	�		�	556,818	��		�	421,809
��Other (Note 5.e.)	�		�	131,402,961	��		�	153,376,373
��Contra control debit accounts	�		�	1,150,978	��		�	1,523,153

	�		�	�	��		�	�

	�		�	133,110,757	��		�	155,321,335

	�		�	�	��		�	�
Derivatives (Exhibit O)	�		�		��		�
��Notional� amount of non-deliverable forward transactions	�		�	4,387,582	��		�	5,414,377
��Interest rate swap	�		�	1,170,205	��		�	1,520,738
��Contra derivatives debit accounts	�		�	3,952,992	��		�	1,871,743

	�		�	�	��		�	�

	�		�	9,510,779	��		�	8,806,858

	�		�	�	��		�	�
For trustee activities	�		�		��		�
��Funds in trust	�		�	6,605	��		�	6,582

	�		�	�	��		�	�

	�		�	6,605	��		�	6,582

	�		�	�	��		�	�

TOTAL	�		�	155,283,226	��		�	175,156,557

	�		�	�	��		�	�
CREDIT ACCOUNTS	�		�		��		�

Contingent	�		�		��		�
��Credit lines granted (unused portion) covered by debtor classification regulations (Exhibits B, C and D)	�		�	514,182	��		�	453,478
��Guaranties provided to the BCRA	�		�	198,013	��		�	191,303
��Other guaranties given covered by debtor classification regulations (Exhibits B, C and D)	�		�	325,859	��		�	287,575
��Other guaranties given non covered by debtor classification regulations	�		�	198,541	��		�	158,783
��Other covered by debtor classification regulations (Exhibits B, C and D)	�		�	247,149	��		�	199,231
��Contra contingent credit accounts	�		�	11,171,341	��		�	9,731,412

	�		�	�	��		�	�

	�		�	12,655,085	��		�	11,021,782

	�		�	�	��		�	�
Control	�		�		��		�
��Items to be credited	�		�	1,007,989	��		�	1,186,195
��Other	�		�	142,989	��		�	336,958
��Contra control credit accounts	�		�	131,959,779	��		�	153,798,182

	�		�	�	��		�	�

	�		�	133,110,757	��		�	155,321,335

	�		�	�	��		�	�
Derivatives (Exhibit O)	�		�		��		�
��Notional� amount of non-deliverable forward transactions	�		�	3,952,992	��		�	1,871,743
��Contra derivatives credit accounts	�		�	5,557,787	��		�	6,935,115

	�		�	�	��		�	�

	�		�	9,510,779	��		�	8,806,858

	�		�	�	��		�	�
For trustee activities	�		�		��		�
��Contra credit accounts for trustee activities	�		�	6,605	��		�	6,582

	�		�	�	��		�	�

	�		�	6,605	��		�	6,582

	�		�	�	��		�	�

TOTAL	�		�	155,283,226	��		�	175,156,557

	�		�	�	��		�	�

The accompanying notes 1 through 19 and exhibits A through L, N and O and the consolidated financial statements with its notes and exhibits are an integral part of these statements.


	�	- 4 -	�

�

STATEMENTS OF INCOME FOR THE NINE MONTH PERIODS

ENDED SEPTEMBER 30, 2014 AND 2013

(Translation of financial statements originally issued in Spanish � See note 19)

- Stated in thousands of pesos -

�


�	�	��09-30-2014��			��	��09-30-2013��
A. FINANCIAL INCOME	�		�		��		�

Interest on cash and due from banks	�		�	--,--	��		�	54
Interest on loans to the financial sector	�		�	480,939	��		�	359,988
Interest on overdraft	�		�	1,541,460	��		�	882,203
Interest on discounted instruments	�		�	900,901	��		�	537,418
Interest on real estate mortgage	�		�	170,660	��		�	115,432
Interest on collateral loans	�		�	223,473	��		�	164,802
Interest on credit card loans	�		�	1,369,713	��		�	674,299
Interest on other loans	�		�	2,001,550	��		�	1,556,380
Interest on other receivables from financial transactions	�		�	3,795	��		�	29,425
Interest on financial leases	�		�	228,470	��		�	159,149
Income from secured loans - Decree 1387/01	�		�	12,727	��		�	6,553
Net income from government and private securities	�		�	1,153,756	��		�	316,692
Indexation by benchmark stabilization coefficient (CER)	�		�	252,211	��		�	100,130
Gold and foreign currency exchange difference	�		�	755,865	��		�	270,055
Other	�		�	541,955	��		�	261,566

	�		�	�	��		�	�

	�		�	9,637,475	��		�	5,434,146

	�		�	�	��		�	�
B. FINANCIAL EXPENSE	�		�		��		�

Interest on savings deposits	�		�	14,104	��		�	10,536
Interest on time deposits	�		�	3,172,480	��		�	1,605,065
Interest on interfinancial financing (call borrowed)	�		�	6,408	��		�	3,479
Interest on other financing from financial institutions	�		�	5	��		�	--,--
Interest on other liabilities from financial transactions	�		�	231,899	��		�	39,182
Other interest	�		�	6,296	��		�	4,877
Indexation by CER	�		�	142	��		�	79
Contribution to the deposit guarantee fund	�		�	58,824	��		�	45,731
Other	�		�	582,141	��		�	334,168

	�		�	�	��		�	�

	�		�	4,072,299	��		�	2,043,117

	�		�	�	��		�	�

GROSS INTERMEDIATION MARGIN � GAIN	�		�	5,565,176	��		�	3,391,029

	�		�	�	��		�	�

C. ALLOWANCES FOR LOAN LOSSES	�		�	413,511	��		�	297,284

	�		�	�	��		�	�
D. SERVICE CHARGE INCOME	�		�		��		�

Related to lending transactions	�		�	1,146,126	��		�	798,811
Related to liability transactions	�		�	1,087,394	��		�	827,347
Other commissions	�		�	111,388	��		�	72,676
Other (Note 5.f.)	�		�	666,711	��		�	543,709

	�		�	�	��		�	�

	�		�	3,011,619	��		�	2,242,543

	�		�	�	��		�	�
E. SERVICE CHARGE EXPENSE	�		�		��		�

Commissions	�		�	571,384	��		�	417,679
Other (Note 5.g.)	�		�	304,980	��		�	216,872

	�		�	�	��		�	�

	�		�	876,364	��		�	634,551

	�		�	�	��		�	�


	�	- 5 -	�

�

(Contd.)

�

STATEMENTS OF INCOME FOR THE NINE MONTH PERIODS

ENDED SEPTEMBER 30, 2014 AND 2013

(Translation of financial statements originally issued in Spanish - See note 19)

- Stated in thousands of pesos -

�


�	�	��09-30-2014��			��	��09-30-2013��

F. ADMINISTRATIVE EXPENSES	�		�		��		�

Payroll expenses	�		�	2,381,270	��		�	1,617,331
Fees to Bank Directors and Supervisory Committee	�		�	3,723	��		�	2,825
Other professional fees	�		�	39,433	��		�	33,560
Advertising and publicity	�		�	162,956	��		�	134,913
Taxes	�		�	346,683	��		�	240,221
Fixed assets depreciation	�		�	97,517	��		�	72,801
Organizational expenses amortization	�		�	42,881	��		�	35,795
Other operating expenses	�		�	562,036	��		�	407,498
Other	�		�	442,285	��		�	311,267

	�		�	�	��		�	�

	�		�	4,078,784	��		�	2,856,211

	�		�	�	��		�	�

NET GAIN FROM FINANCIAL TRANSACTIONS	�		�	3,208,136	��		�	1,845,526

	�		�	�	��		�	�
G. OTHER INCOME	�		�		��		�

Income from long-term investments	�		�	282,432	��		�	125,555
Punitive interests	�		�	18,554	��		�	9,852
Loans recovered and reversals of allowances	�		�	98,159	��		�	68,653
Other (Note 5.h.)	�		�	157,031	��		�	245,179

	�		�	�	��		�	�

	�		�	556,176	��		�	449,239

	�		�	�	��		�	�
H. OTHER EXPENSE	�		�		��		�

Punitive interests and charges paid to BCRA	�		�	15	��		�	19
Charge for uncollectibility of other receivables and other allowances	�		�	157,909	��		�	280,605
Amortization of difference arising from judicial resolutions Depreciation and losses from miscellaneous assets	�		�	11,139 249	��		�	20,970 229
Other (Note 5.i)	�		�	59,861	��		�	43,329

	�		�	�	��		�	�

	�		�	229,173	��		�	345,152
	�		�	�	��		�	�

NET GAIN BEFORE INCOME TAX	�		�	3,535,139	��		�	1,949,613

	�		�	�	��		�	�

I. INCOME TAX (Note 4.1)	�		�	1,145,000	��		�	789,300

	�		�	�	��		�	�

NET INCOME FOR THE PERIOD	�		�	2,390,139	��		�	1,160,313

	�		�	�	��		�	�

The accompanying notes 1 through 19 and exhibits A through L, N and O and the consolidated financial statements with its notes and exhibits are an integral part of these statements.


	�	- 6 -	�

�

STATEMENTS OF CHANGES IN STOCKHOLDERS� EQUITY

FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2014 AND 2013

(Translation of financial statements originally issued in Spanish � See note 19)

- Stated in thousands of pesos -

�

2014

�

2013

�

��

�

��

�

Non�capitalized
contributions

�

��

Retained earnings

�

Movements

�

��Capital��

Stock

�

Issuance

premiums

�

Adjustments�to
stockholders�
equity (1)

��

��Legal��

�

��Other��

�

Unappropriated
earnings

�

Total��

�

Total��

�

��

�

Balance at beginning of fiscal year

�

536,878

�

182,511�

�

312,979

��

1,495,872

�

2,603,696

��

�

2,024,244

�

7,156,180��

��

�

5,131,936

��

�

Stockholders� Meeting held on April�10, 2014

�

��

�

�- Dividends paid in cash

�

--,--��

�

--,--�

�

--,--��

��

--,--��

�

--,--

��

�

(28,800)��

�

(2)

�

(28,800)��

��

�

--,--��

��

�

�- Legal reserve

�

--,--��

�

--,--

�

--,--�

��

404,849

�

--,--

��

�

(404,849)

�

--,--

��

�

--,--

��

�

�- Voluntary reserve for future distributions of income

�

--,--

�

--,--

�

--,--

��

--,--

�

1,590,595

��

�

(1,590,595)

�

--,--

��

�

--,--

��

�

Net income for the period

�

--,--

�

--,--

�

--,--

��

--,--

�

--,--

��

�

2,390,139

�

2,390,139

��

�

1,160,313

��

�

��

�

Balance at the end of the period

�

536,878

�

182,511

�

312,979

��

1,900,721

�

4,194,291

��

�

2,390,139

�

9,517,519

��

�

6,292,249

��

�

��

�

(1)

Adjustments to stockholders� equity refer to Adjustment to Capital Stock.

�

(2)

Approved by the B.C.R.A. through its Resolution No 312/26/14 dated June�16, 2014 and paid during the month of July 2014.

The accompanying notes 1 through 19 and exhibits A through L, N and O and the consolidated financial statements with its notes and exhibits are an integral part of these statements.


	�	- 7 -	�

�

STATEMENTS OF CASH AND CASH EQUIVALENTS FLOW FOR THE

NINE MONTH PERIODS ENDED SEPTEMBER 30, 2014 AND 2013

(Translation of financial statements originally issued in Spanish - See note 19)

-Stated in thousands of pesos-

�

��09-30-2014��

�

��

�

��09-30-2013��

�

��

�

CHANGES IN CASH AND CASH EQUIVALENTS

�

��

�

��

Cash and cash equivalents at the beginning of the fiscal year

�

13,604,191

��

�

(1)

��

�

9,120,988

��

�

(1)

��

Cash and cash equivalents at the end of the period

�

13,300,398

��

�

(1)

��

�

8,490,691

��

�

(1)

��

�

��

�

��

Net decrease in cash and cash equivalents

�

(303,793)

��

�

(630,297)

��

�

��

�

��

REASONS FOR CHANGES IN CASH AND CASH EQUIVALENTS

�

��

�

��

Operating activities

�

��

�

��

Net collections/ (payments) from:

�

��

�

��

- Government and private securities

�

(4,617,128)

��

�

(1,375,889)

��

- Loans

�

3,354,941

��

�

268,727

��

�

��

�

��

to financial sector

�

289,378

��

�

(92,782)

��

to non-financial public sector

�

(414)

��

�

(40,059)

��

to non-financial private sector and residents abroad

�

3,065,977

��

�

401,568

��

- Other receivables from financial transactions

�

15,461

��

�

7,445

��

- Receivables from financial leases

�

(211,781)

��

�

(422,416)

��

- Deposits

�

2,067,495

��

�

3,373,581

��

�

��

�

��

to financial sector

�

(13,737)

��

�

(1,861)

��

to non-financial public sector

�

1,060,741

��

�

280,454

��

to non-financial private sector and residents abroad

�

1,020,491

��

�

3,094,988

��

- Other liabilities from financial transactions

�

1,046,984

��

�

310,192

��

�

��

�

��

�Financing from financial or interfinancial sector (call borrowed)

�

--,--

��

�

14,600

��

�Others (except liabilities included in Financing Activities)

�

1,046,984

��

�

295,592

��

Collections related to service charge income

�

3,012,943

��

�

2,238,425

��

Payments related to service charge expense

�

(873,191)

��

�

(633,542)

��

Administrative expenses paid

�

(3,896,898)

��

�

(2,701,034)

��

Organizational and development expenses paid

�

(28,129)

��

�

(34,562)

��

Net collections from punitive interest

�

18,539

��

�

9,833

��

Differences from judicial resolutions paid

�

(11,139)

��

�

(20,970)

��

Collections of dividends from other companies

�

54,716

��

�

33,654

��

Other collections related to other income and expenses

�

187,723

��

�

261,325

��

�

��

�

��

Net cash flows provided by operating activities

�

120,536

��

�

1,314,769

��

�

��

�

��

Investment activities

�

��

�

��

Net payments from premises and equipment

�

(147,199)

��

�

(78,068)

��

Net collections from other assets

�

(463,331)

��

�

(493,901)

��

Other payments from investment activities

�

(147,696)

��

�

(322,321)

��

�

��

�

��

Net cash flows used in investment activities

�

(758,226)

��

�

(894,290)

��

�

��

�

��

Financing activities

�

��

�

��

Net collections / (payments) from:

�

��

�

��

- Unsubordinated corporate bonds

�

803,646

��

�

(84,093)

��

- Argentine Central Bank

�

(15,336)

��

�

31,841

��

�

��

�

��

Other

�

(15,336)

��

�

31,841

��

- Banks and international agencies

�

386,637

��

�

(262,770)

��

- Financing received from local financial institutions

�

--,--

��

�

(400)

��

Cash dividends

�

28,800

��

�

--,--

��

Other payments related to financing activities

�

(812,250)

��

�

(735,408)

��

�

��

�

��

Net cash flows provided by / (used in) financing activities

�

333,897

��

�

(1,050,830)

��

�

��

�

��

Financial results and results from holdings of cash and cash equivalents (including interest)

�

--,--

�

��

�

��

�

��

�

��

�

��

�

��

Net decrease in cash and cash equivalents

�

(303,793)

��

�

(630,297)

��

�

��

�

��

�

(1)	See note 16 �Statements of cash and cash equivalents flow�.

The accompanying notes 1 through 19 and exhibits A through L, N and O and the consolidated financial statements with its notes and exhibits are an integral part of these statements.


	�	- 8 -	�

�

NOTES TO THE FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2014, PRESENTED IN

COMPARATIVE FORM WITH THE BALANCE SHEET AS OF DECEMBER 31, 2013, AND THE

STATEMENTS OF INCOME, CHANGES IN STOCKHOLDERS� EQUITY AND CASH AND CASH

EQUIVALENTS FLOW AS OF SEPTEMBER 30, 2013

(Translation of financial statements originally issued in Spanish - See note 19)

(Stated in thousands of pesos)

�

CORPORATE SITUATION AND BANK�S ACTIVITIES

1.1� Corporate situation

BBVA Banco Franc�s S.A. (hereinafter indistinctly referred to as either �BBVA Franc�s� or the �Bank�) has its headquarter in Buenos Aires, Argentina, and operates a 248-branch network.

As from December, 1996, BBVA Franc�s is part of Banco Bilbao Vizcaya Argentaria S.A.�s (BBVA) global strategy, which controls the Bank, direct and indirectly, with 75.93% of the corporate stock as of September�30, 2014.

Part of the Bank�s corporate stock is publicly traded and has been registered with the Buenos Aires Stock Exchange, New York Stock Exchange and Madrid Stock Exchange.

�1.2� Capital stock

Changes in the Bank�s capital stock during the last five fiscal years are as follows:

�


Date of			��	�	��	�	��	�	�	�(3)
�Stockholders�� Meeting deciding�on the�issuance	��	�Registration�with�the� Public Registry of Commerce (RPC)	��	Form of ��placement��	��	��Amount�� ��	��	��Total�� ��	�
� ��Capital Stock as of December�31, 2009:							��	536,361��	�
� �03-30-2011	��	09-14-2011	��	(1)	��	517��	��	536,878��	�
�03-26-2012	��		��	(2)	��	50,410��	��		�
�03-26-2012	��		��	(2)	��	(50,410)��	��	536,878��	�

�


(1)��	�	Due to the merger of Consolidar Comercializadora S.A. into BBVA Franc�s.

(2)��	�	Due to the merger of Inversora Otar S.A. into BBVA Franc�s.

(3)��	�	The amount of Capital Stock is fully paid in and authorized for public offering by National Securities Commission (CNV).

1.3�� Inversora Otar S.A. merged by absorption into BBVA Franc�s

As of the end of the fiscal year ended December�31, 2011, Inversora Otar S.A. (Otar) held in its name 50,410,182 book-entry, ordinary shares, with a par value of $1 each and right to 1 vote each in the capital stock of BBVA Franc�s.

On February�9, 2012, BBVA Franc�s and Otar entered into a �Preliminary Merger Agreement� whereby BBVA Franc�s incorporates Otar on the basis of these companies� financial statements as of December�31, 2011 and Otar goes through a dissolution without liquidation process.


	�	- 9 -	�

�

On March�26, 2012, the Ordinary and Extraordinary General Shareholders� Meetings of BBVA Franc�s and Otar approved the above mentioned preliminary merger agreement, the consolidated financial statements for merging purposes as of December�31, 2011 and the shares� exchange ratio.

The Shareholders� Meeting of BBVA Franc�s above mentioned, approved the increase in capital stock of BBVA Franc�s by issuing 50,410,182 book-entry, ordinary shares with a par value of $ 1 each and 1 vote per share, that would be listed for public offering at the Buenos Aires Stock Exchange in order to be delivered to the shareholders of Otar. These shares would be issued as soon as the merger is registered with the Public Registry of Commerce.

In addition, immediately after the above-mentioned capital increase, BBVA Franc�s would redeem the 50,410,182 book-entry, ordinary shares, with a par value of $1 each and right to 1 vote each that it owns subject to the previous capital stock reduction stemming from the merger.

The parties have agreed to set April�1, 2012 as the effective date for the merger as that was the date when all the assets and liabilities of the merged company were transferred, for 390,971 and 5,668, respectively.

On July�18, 2013, the Argentine Central Bank (BCRA) resolved not to make any observations against the merger by absorption of Otar by BBVA Franc�s through its Resolution No.�473. On August�8, 2013, the CNV approved the merger by absorption in accordance with Section�82 of the Argentine Companies Law pursuant to its Resolution No.�17,155. On March�27, 2014, the merger was registered with the Supervisory Board of Companies (IGJ) under No.�5,302 of Book 68 of Stock Corporations. Finally, 50,410,182 book-entry, ordinary shares with par value $ 1 each and 1 vote per share of BBVA Franc�s were redeemed and 50,410,182 book-entry, ordinary shares with par value $ 1 each and 1 vote per share of BBVA Franc�s were simultaneously issued and delivered in exchange to Otar�s former shareholders, according to the following detail:

�

BBVA Am�rica S.L.: 47,867,795 shares.

�

Corporaci�n General Financiera S.A.: 2,520,509 shares.

�

Sucesi�n Romero Gregorio: 21,878 shares.

The merger by absorption of Otar by BBVA Franc�s was thus completed, with BBVA Franc�s becoming the surviving company to all intents and purposes.

1.4 Registration with CNV as Settlement and Clearing Agent - Comprehensive

The new Capital Markets Law No.�26,831, enacted on December�28, 2012 and then regulated by CNV�s General Resolution No.�622/13 on September�5, 2013 sets forth, in its Section�47 that agents are under a duty to register with the CNV for interacting with the market in any of the modalities established in CNV�s General Resolution No.�622/13. The proceeding to register the Bank as a Settlement and Clearing Agent � Comprehensive started on December�17, 2013 and was completed on September�19, 2014 when the Bank was registered under Number 42.

1.5��Responsibility of stockholders

BBVA Franc�s is a corporation established under the laws of the Argentine Republic, and the responsibility of its stockholders is limited to the value of the paid - in shares, in accordance with Law No.�19,550. As a result, in compliance with Law No.�25,738, it is hereby informed that neither the foreign capital majority stockholders nor the local or foreign stockholders will respond, in excess of the mentioned paid-in stockholding, for the liabilities arising out of the transactions performed by the financial institution.

�

2.��SIGNIFICANT

ACCOUNTING POLICIES

2.1��Restatement of the financial statements in equivalent purchasing power

The financial statements have been taken from the Bank�s books of account in conformity with the standards of the BCRA.

These financial statements recognize the effects of the changes in the purchasing power of the currency through February�28, 2003, following the restatement method established by Argentine Federation of Professional Council in Economic Sciences (FACPCE) Technical Pronouncement No.�6 (modified by Technical Pronouncement No.�19), using adjustment rates derived from the Internal Wholesale Price Index published by the National Institute of Statistics and Census (INDEC).


	�	- 10 -	�

�

By Communication �A� 3921 of the BCRA and General Resolution No.�441/03 of the CNV, in compliance with Decree 664/03 of the Federal Executive, application of the restatement method on financial statements in equivalent purchasing power has been suspended as from March�1, 2003.

2.2��Comparative information

In accordance with BCRA Communication �A� 4667 and amendments, the Balance Sheet and the Exhibits that so specify include the comparative information as of December�31, 2013, while the Statements of Income, Changes in Stockholders� Equity and Cash and cash equivalents flow show comparative information as of September�30, 2013.

2.3��Valuation methods

The main valuation methods used in the preparation of the financial statements have been as follows:

�

Foreign currency assets and liabilities:

As of September�30, 2014 and the end of the previous fiscal year, such amounts were translated into pesos at the benchmark exchange rate of the BCRA as of the closing date of transactions on the last business day of the period or fiscal year. The exchange differences were charged to income (loss) for the period or fiscal year.

�

Government and private securities:

�

Holdings booked at fair value and instruments issued by the BCRA at fair value: they were valued based on current listed prices or the prevailing present value for each security as of September�30, 2014 and the end of the previous fiscal year. Differences in listed prices were credited/charged to income for the period or fiscal year.

�

Holdings booked at amortized cost and instruments issued by the BCRA at amortized cost: as of September�30, 2014 and the end of the previous fiscal year, these were valued using the amount of initial recognition, rose on the basis of the interest accrued as per the internal rate of return.

�

Investments in listed private securities, equity and debt instruments: they were valued based on current listed prices as of September�30, 2014 and the end of the previous fiscal year. Differences in listed prices were charged to income for the period or fiscal year.

�

Loans to Government Sector:

Federal Government secured loans � Decree No.�1387/2001:

As of September�30, 2014 and the end of the previous fiscal year, the secured loans were valued at the highest amount resulting from a comparison between the present value as estimated by BCRA and the book value in accordance with the provisions under BCRA�s Communication �A� 5180. In addition, the amount required to take their book values to their fair realizable values is recorded in a balancing account.

�

Interest accrual:

Interest has been accrued according to a compound interest formula in the periods in which it was generated, except interest on transactions in foreign currency, those whose maturity does not exceed 92 days, and adjustable assets and liabilities which were recognized on a linear basis.


	�	- 11 -	�

�

Benchmark stabilization coefficient (CER):

As of September�30, 2014 and the end of the previous fiscal year, receivables and payables have been adjusted to the CER as follows:

�

Federal government secured loans have been adjusted under Resolution No.�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 No.�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 September�30, 2014 and the end of the previous fiscal year.

�

Allowance for loan losses and contingent commitments:

For loans, other receivables from financial transactions, receivables from financial leases, receivables from sale of property assets and contingent commitments: the allowances have been calculated based on the Bank�s estimated loan loss risk in light of debtor compliance and the collaterals supporting the respective transactions, as provided by Communication �A� 2950 and supplemented of the BCRA.

�

Instruments to be received and to be delivered for spot and forward transactions pending settlement:

�

In foreign currency: they were valued according to the benchmark exchange rate of the BCRA for each currency determined on the last business day of the end of the period or fiscal year.

�

Securities: with Holdings of government and private securities and Instruments issued by BCRA at fair value and at amortized cost: as of September�30, 2014 and the end of the previous fiscal year, they were valued according to the method described in 2.3.b).

�

Amounts receivable and payable for spot and forward transactions pending settlement:

They were valued based on the prices agreed upon for each transaction, plus related premiums accrued as of September�30, 2014 and the end of the previous fiscal year.

�

Unlisted Corporate Bonds:

They were valued at acquisition cost plus income accrued but not collected as of September�30, 2014 and the end of the previous fiscal year.

�

Receivables from financial leases:

As of September�30, 2014 and the end of the previous fiscal year, they were valued at the present value of the sum of the periodical instalments and the unguaranteed residual value, calculated as per the conditions agreed upon in the respective leases, applying the implicit interest rate thereto.

�

Investments in other companies:

�

Investments in controlled financial institutions, supplementary activities and authorized were valued based on the following methods:

�

BBVA Franc�s Valores S.A., Consolidar Administradora de Fondos de Jubilaciones y Pensiones S.A. (undergoing liquidation proceedings), PSA Finance Argentina Compa��a Financiera S.A., BBVA Franc�s Asset Management S.A. Sociedad Gerente de Fondos Comunes de Inversi�n and Rombo C�a. Financiera S.A.: were valued by applying the equity method at the end of the period or fiscal year.


	�	- 12 -	�

�

Although the Entity has a 40% interest ownership in the capital stock and votes of Rombo C�a. Financiera S.A., operational and financial decisions at Rombo C�a. Financiera S.A. are taken together with this company�s majority shareholder on a joint control basis.

�

Investments in non controlled financial institutions, supplementary activities and authorized were valued according to the following methods:

�

Visa Argentina S.A. and Interbanking S.A.: were valued by applying the equity method at the end of the period or fiscal year.

�

Bladex S.A.: 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 2.3.a).

�

Other: valued at acquisition cost, without exceeding their recoverable value.

�

Banelco S.A.: was valued by applying the equity method at the end of the previous fiscal year.

�

Other non controlled affiliates were valued based on the following methods:

�

BBVA Consolidar Seguros S.A.: was valued by applying the equity method at the end of the period or fiscal year.

�

Other: were valued at acquisition cost, without exceeding their recoverable value.

�

Premises and equipment and Other assets:

They have been valued at acquisition cost plus increases from prior-year appraisal revaluations, restated as explained in note 2.1, less related accumulated depreciation calculated in proportion to the months of estimated useful life of items concerned (see Exhibit F).

�

Intangible assets:

They have been valued at acquisition cost less related accumulated amortization calculated in proportion to the months of estimated useful life of the items concerned (see useful life assigned in Exhibit G).

This caption included the differences arising from compliance with court-ordered measures arising from cases challenging the current rules and regulations applicable to deposits with the financial system in the framework of the provisions of Law No.�25,561, Decree No.�214/02 and supplementary provisions. The assets mentioned (calculated on the basis of the nominal difference between the exchange rate freely determined in the market and applied to the value of the deposit recorded in the books at that date) was amortized within the 60 monthly instalments starting in April 2003 in accordance with Communication �A� 3916 of the BCRA.

As of September�30, 2014 and the end of the previous fiscal year these assets have been fully amortized, with the total accumulated amortization as of those dates amounting to 1,430,122 and 1,418,983, respectively.

The Bank, however, notifies that such amortization was solely calculated to comply with the regulations of the BCRA and that by no means does it imply a waiver to possible compensation or recovery of the exchange difference resulting from compliance with court orders corresponding to petitions for protection of civil rights or other court action derived from the mandatory conversion of bank deposits into pesos.

Pursuant to the decisions handed down by Argentina�s Supreme Court of Justice (�Massa, Juan Agust�n v. Argentine Executive Branch � Executive Order 1570/ et al over action for the protection of constitutional rights (amparo) Law No.�16,986� and �Kujarchuk v. Argentine Executive Branch�), a calculation method was established for the payment of bank deposits that was different from the one that had been instituted by the Argentine Executive Branch.

As of September�30, 2014 and the end of the previous fiscal year, the Bank has estimated this contingency and it has recorded allowances for the total amount.


	�	- 13 -	�

�

The Bank expects that the Argentine State remedies the significant damage resulting from compliance with court-ordered measures on petitions for protection of civil rights and actions for relief, particularly due to the impact of differences in compensation or recovery as per the rulings in the above-mentioned actions and according to the law in relation to the �pesification� of the underlying deposits. In this regard, the Bank has informed of such financial damages to the relevant authorities, with reservation of rights.

�

Derivative transactions (see note 12):

�

Interest rate swaps and Forward transactions:

�

Interest rate swaps are recorded at the value resulting from the application of rates differences to residual notional amounts at the end of the period or fiscal year.

�

Forward transactions receivable/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 the period or fiscal year as applied to stated notional amounts.

�

Repo and Reverse Repo transactions

As of September�30, 2014 and the end of the previous fiscal year, the repos whose underlying assets are not subject to the volatilities published by BCRA were valued as per the cost of each transaction and the repos whose underlying assets are subject to volatility were recorded at their quoted value. Accrued premiums were charged to income (loss) for the period or fiscal year.

�

Employee termination pay:

The Bank expenses employee termination pay as disbursed.

�

Other liabilities:

They include the debit balances non arising out of transactions relating to the supply and demand of financial resources, plus the adjustments and interest payable accrued as of September�30, 2014 and the end of the previous fiscal year.

�

Allowance for other contingencies:

It includes the estimated amounts to meet contingencies of probable occurrence that, if occurred, would give rise to a loss for the Bank.

�

Stockholders� equity accounts:

They are restated as explained in note 2.1, except for the �Capital Stock� and �Non capitalized contributions� accounts which have been kept at cost. The adjustment resulting from the restatement is included in the �Adjustment to Stockholders� Equity � Adjustment to Capital Stock� account.

�

Statement of Income Accounts:

�

As of September�30, 2014 and 2013, 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 2.1.

�

Income from investments in subsidiaries was computed based on such companies� income adjusted as explained in note 2.1.


	�	- 14 -	�

�

Earning per share:

As of September�30, 2014 and 2013, the Bank calculated the earning per share on the basis of 536,877,850 ordinary shares of $1 par value each. The net income for each period on those dates is as follows:

�


�	��	��09-30-2014��	��	��09-30-2013��

Net income for the period	��	2,390,139	��	1,160,313
Earning per share for the period � (stated in pesos)	��	4.45	��	2.16

�

Use of accounting estimates:

The preparation of the financial statements in accordance with the standards set forth by the BCRA require the Bank to use assumptions and estimates that affect certain assets such as allowances for doubtful loan and certain liabilities such as provisions for other contingencies as well as the reported amounts of income/loss during the periods. Actual income/loss may differ from such estimates.

�

DIFFERENCES BETWEEN BCRA ACCOUNTING STANDARDS AND ARGENTINE PROFESSIONAL ACCOUNTING STANDARDS

The Bank has prepared these financial statements by applying the regulations of the BCRA, which do not contemplate some of the valuation criteria established by the Argentine professional accounting standards.

The main differences between the regulations of the BCRA and the Argentine professional accounting standards are detailed below:

�

Tax effects

As already indicated hereinbelow, in note 4.1., the Bank has received various communications from the BCRA pursuant to which that BCRA indicates that the capitalization of items arising from the application of the deferred tax method is not allowed. In accordance with Argentine professional accounting standards, a deferred tax asset should be recognized to the extent the reversal of temporary differences generates a future decrease in the tax effectively determined. As a result, the allowances set up by the Bank in this respect, for 245,400 and 231,100 as of September�30, 2014 and the end of the previous fiscal year, respectively, should be reversed.

�

Derivative financial instruments

As explained in notes 2.3.n) and 12, as of September�30, 2014 and the end of the previous fiscal year, the Bank recorded the effects of interest rate swap agreements as established by the BCRA. Should the Bank had applied the Argentine professional accounting standards, the stockholders� equity would have increased in 9,144 and decreased in 38,533, respectively. By contrast, the effect of the application of the professional accounting standards on the income statement for the periods ended September�30, 2014 and 2013 would have been 47,677 (income) and 7,797 (income), respectively.

�

TAX MATTERS

4.1. Income tax

The Bank determined the charge for income tax by applying the statutory 35% rate to taxable income estimated for fiscal year considering the effect of temporary differences between valuation of assets and liabilities for accounting purposes and their taxable bases. The Bank considered as temporary differences those that have a definitive reversal date in subsequent years.

As of September�30, 2014 and 2013, the Bank recorded 1,145,000 and 789,300, respectively, in the Income tax caption as the estimate of the income tax charge payable to the tax authorities for these fiscal years.

As of September�30, 2014 and the end of the previous fiscal year, the Bank has booked 632,099 and 435,831, respectively, in the caption Other liabilities � Other � Accrued Taxes as a result of having netted the income tax withholdings and other withholdings applied to the Bank until such dates.


	�	- 15 -	�

�

Besides, on June�19, 2003, the Bank received a note from the BCRA indicating that the capitalization of items arising from the application of the deferred tax method is not allowed.

On June�26, 2003, the Bank, based on the opinion of its legal counsel, responded the above mentioned note, indicating that in their opinion the rules of the BCRA do not prohibit the application of the deferred tax method generated by the recognition of temporary differences between the accounting and tax result. Subsequently, Resolution 118/03 of the Superintendent of Financial and Exchange Institutions received on October�7, 2003 confirmed the terms of the note dated June�19, 2003. Consequently, as from that date the Bank set up an allowance for the net balance between the deferred tax assets and liabilities.

As of September�30, 2014 and the end of the previous fiscal year, the Bank recorded under Other Receivables (in the line Tax Prepayments) a taxable deferred asset amounting 245,400 and 231,100, respectively. Such amounts are made up as follows:

�


�	��	09-30-2014��		�	��	12-31-2013��		�

Deferred tax assets	��	�	��466,000��	��	��	�	��412,100��	��
Deferred tax liabilities	��	�	(220,600)��	��	��	�	(181,000)��	��
	��	�	�	�	��	�	�	�

Net deferred assets	��	�	245,400��	��	��	�	231,100��	��
Allowance	��	�	(245,400)��	��	��	�	(231,100)��	��

4.2. Tax on minimum presumed income

Tax on minimum presumed income (TOMPI) was established by Law No.�25,063 in the year ended December�31, 1998, for a ten-year term. On December�19, 2008 Law No.�26,426 established a one-year extension in TOMPI until December�30, 2009. In turn, Law No.�26,545, published in the Official Gazette on December�2, 2009 extended TOMPI for an additional ten-year period. This tax is supplementary to income tax: while the latter is levied on the taxable income for the year, TOMPI is a minimum levy determined by applying the current 1% rate on the potential income of certain productive assets. Therefore, the Bank�s tax obligation for each year will coincide with the highest of these taxes. The above Law provides that institutions governed by Financial Institutions Law must consider as a tax base 20% of their taxable assets, after deducting non-computable ones. However, if TOMPI exceeds income tax in a given year, the excess thereof may be computed as a payment on account of any income tax in excess of TOMPI that may occur in any of the following ten years.

In every year that net operating losses are offset, the tax benefit (the benefit of the effective rate on the net operating loss used) will be realized to the extent that income tax (net of the offsetting) equals or exceeds tax on minimum presumed income, but will be reduced by any excess of the latter over former.

On February�11, 2005, the Argentine Central Bank issued Communication �A� 4295 whereby it enabled, under certain rules, the accounting record of credits on Tax on Minimum Presumed Income.

As of September�30, 2014 and 2013, the Income tax assessed was higher than the TOMPI. Therefore, a provision was raised for Income tax.

4.3. Other tax issues

�

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. On November�14, 2007, the Bank filed its defenses to the notice mentioned.

Then, on October�6, 2008, the Bank was given notice of Resolution No.�3631-DGR 2008 containing the sua sponte tax assessment for the fiscal years 2002 and 2003. On October�28, 2008, the Bank filed an appeal for review against this resolution, which was rejected on November�7, 2008.

In response to said rejection, on November�28, 2008 an appeal was filed with a higher administrative authority by the Ministry of Economy of the Government of the City of Buenos Aires, which was also dismissed on April�24, 2009.


	�	- 16 -	�

�

On April�28, 2009, the Court of Appeals with Federal Jurisdiction over Contentious Administrative Matters, Panel 3 handed down a judgment favourable to a petition filed by the Bank for the judge to suspend the effect of the decision made by administrative authorities until the appeal is decided. The judgment thus ordered that ��.subject to a sworn promise to comply � a) the Tax Bureau of the City of Buenos Aires must suspend the sua sponte assessment that has objected to the treatment afforded by BBVA Franc�s to the bonds received from the National Government in the terms of Decree No.�905-02 and the related foreign exchange gains/losses in all matters related to taxation for turnover tax purposes for the fiscal period 2002; b) therefore, the Tax Bureau of the City of Buenos Aires must abstain from demanding that the Bank should pay any amount due that may have arisen from the items above detailed�.

Also in this respect, on May�13, 2009, an action for a declaratory judgment was commenced by the Bank against the Tax Bureau of the City of Buenos Aires, currently being heard by the court with original Federal Jurisdiction over Contentious Administrative Matters No.�1, to procure a judgment ascertaining that a) the bonds received by the Bank from the National Government as compensation for the asymmetric conversion into pesos of assets and liabilities imposed by the Executive Order No.�905/2002 may not be levied with Turnover Tax in the Autonomous City of Buenos Aires; b) the foreign exchange gains/losses are a direct effect of the modification of the monetary system and therefore should not be levied with Turnover Tax in the Autonomous City of Buenos Aires.

On December�29, 2010, the Judge presiding over the court with original Federal Jurisdiction over Contentious Administrative Matters No.�1 handed down a new precautionary measure ordering the Tax Bureau of the City of Buenos Aires to refrain from demanding that BBVA Franc�s should pay any debt originating in the tax treatment that should be afforded to the bonds received from the National Government as compensation for the asymmetric re-denomination into Pesos under Executive Order No.�905/02 and the foreign exchange gains/losses for purposes of Turnover Tax for the fiscal period 2002 in issue until a final judgment has been rendered on the proceedings whereby the action for a declaratory judgment is still pending.

The Bank as well as its legal and tax advisors estimate that the Bank has made a reasonable interpretation of currently applicable rules and regulations concerning the fiscal periods objected to by the Tax Bureau of the City of Buenos Aires and do not expect an adverse financial impact in these respects.

As regards the balance of the amount claimed, the Entity adhered to a scheme of payment in instalments that was cancelled on October�4, 2010.

�

On December�23, 2011, the Tax Bureau of the City of Buenos Aires (AGIP) passed its Resolution No.�3088-DGR-2011 and notified the Bank of the commencement of a sua sponte tax assessment thereunder alleging presumptive differences owed to the Tax Bureau in the payment of turnover tax for the fiscal years 2004 through 2010. On January�27, 2012, BBVA Franc�s filed its defense with the Tax Bureau.

Afterwards, on December�28, 2012, the Bank was notified of Resolution No.�3253-DRG-2012 whereby the Tax Bureau of the City of Buenos Aires proceeded with a sua sponte assessment based on facts concerning the taxable basis for purposes of turnover tax for the fiscal years 2004 through 2010.

On February�4, 2013, the Bank filed an appeal for reconsideration against Resolution No.�3253-DRG-2012 moving for the annulment of the tax adjustments contained in the sua sponte tax assessment and for an immediate order to archive the case file.

�

On December�20, 2013, the Bank was notified of the Summary Tax Assessment Decision No.�4705 handed down by the Tax Bureau of the Province of Buenos Aires, whereby this tax bureau made a sua sponte determination of taxable income associated to turnover tax for the fiscal periods 01/2008 to 12/2008.

Against this Decision, the Bank filed on January�14, 2014 an appeal for the tax bureau to reverse its own decision and requested that the tax adjustments inserted in the sua sponte tax assessment be rendered ineffectual and that in due time these proceedings be archived.


	�	- 17 -	�

�

The Bank as well as its legal and tax advisors estimate that the Bank has made a reasonable interpretation of currently applicable rules and regulations concerning the fiscal periods objected to by the Tax Bureau of the Province of Buenos Aires and do not expect an adverse financial impact in these respects.

�

BREAKDOWN OF MAIN ITEMS AND ACCOUNTS

The breakdown of the items included under Other accounts which exceed 20% of the total amount of each item is as follows:

�


�	��	��09-30-2014��				��	��12-31-2013��

a)��INVESTMENTS IN OTHER COMPANIES	��	�				��	�

In controlled companies-supplementary activities	��	�	�	97,629��	�	��	�	�	95,199��	�
In other non-controlled companies-unlisted	��	�	�	39,053��	�	��	�	�	29,302��	�
In non-controlled companies-supplementary activities	��	�	�	11,789��	�	��	�	�	18,910��	�

	��	�	�	�	�	��	�	�	�	�

Total	��	�	�	148,471��	�	��	�	�	143,411��	�

	��	�	�	�	�	��	�	�	�	�

b)��OTHER RECEIVABLES	��	�				��	�

Guarantee deposits	��	�	�	341,184��	�	��	�	�	309,390��	�
Prepayments	��	�	�	330,054	�	��	�	�	309,864	�
Miscellaneous receivables	��	�	�	327,467��	�	��	�	�	207,941��	�
Tax prepayments (1)	��	�	�	268,578��	�	��	�	�	252,455��	�
Loans to personnel	��	�	�	185,421��	�	��	�	�	189,700��	�
Advances to personnel	��	�	�	27,873	�	��	�	�	6,238��	�
Other	��	�	�	1,014	�	��	�	�	507	�

	��	�	�	�	�	��	�	�	�	�

Total	��	�	�	1,481,591	�	��	�	�	1,276,095	�

	��	�	�	�	�	��	�	�	�	�

�

(1)

As of September�30, 2014 and the end of the previous fiscal year, it includes the deferred tax asset for 245,400 and 231,100, respectively (see note 4.1.).

c)��OTHER LIABILITIES FROM FINANCIAL TRANSACTIONS

��

Accounts payable for consumption

��

�

1,837,926��

�

��

�

1,193,215��

�

Other withholdings and collections at source

��

�

595,027��

�

��

�

457,110��

�

Collections and other operations for the account of third parties

��

�

509,957��

�

��

�

342,912��

�

Money orders payable

��

�

468,080��

�

��

�

��

�

327,967��

�

Social security payment orders pending settlement

��

�

80,942��

�

��

�

6,484��

�

Loans received from Fondo Tecnol�gico Argentina (FONTAR) and Banco de Inversi�n y Comercio Exterior (BICE)

��

�

38,241��

�

��

�

46,882��

�

Pending Banelco debit transactions

��

�

34,728��

�

��

�

120,570��

�

Funds raised from third parties

��

�

16,725��

�

��

�

17,255��

�

Accrued commissions payable

��

�

8,781��

�

��

�

5,608��

�

Loans received from Interamerican Development Bank (IDB)

��

�

5,522��

�

��

�

3,229��

�

Other

��

�

4,890��

�

��

�

4,414��

�

��

�

��

�

Total

��

�

3,600,819

�

��

�

2,525,646

�

��

�

��

�


	�	- 18 -	�

�


�	��	��09-30-2014��				��	��12-31-2013��

d)��OTHER LIABILITIES	��	�				��	�

Accrued taxes	��	�	�	848,251��	�	��	�	�	608,584��	�
Miscellaneous payables	��	�	�	702,586��	�	��	�	�	494,208��	�
Accrued salaries and payroll taxes	��	�	�	435,756��	�	��	�	�	394,268��	�
Amounts collected in advance	��	�	�	325,837	�	��	�	�	169,278	�
Other	��	�	�	1,391	�	��	�	�	506	�

	��	�	�	�	�	��	�	�	�	�

Total	��	�	�	2,313,821��	�	��	�	�	1,666,844��	�

	��	�	�	�	�	��	�	�	�	�

e)��MEMORANDUM ACCOUNTS � DEBIT � CONTROL	��	�				��	�

Securities representative of investments in custody safekeeping on behalf of the Guarantee Fund for the Sustainability of the Pay-as-you-go System managed by the Argentine Republic	��	�	�	68,303,382�	�	��	�	�	121,633,179��	�
Items in safekeeping	��	�	�	56,701,761�	�	��	�	�	26,281,408��	�
Checks not yet credited	��	�	�	3,996,067�	�	��	�	�	3,347,400��	�
Collections items	��	�	�	840,229�	�	��	�	�	686,371��	�
Checks drawn on the Bank pending clearing	��	�	�	696,567�	�	��	�	�	602,976��	�
Cash in custody on behalf of the BCRA	��	�	�	297,943�	�	��	�	�	52,144��	�
Other	��	�	�	567,012�	�	��	�	�	772,895��	�

	��	�	�	�	�	��	�	�	�	�

Total	��	�	�	131,402,961	�	��	�	�	153,376,373	�

	��	�	�	�	�	��	�	�	�	�



�	��	��09-30-2014��				��	��09-30-2013��

f)��SERVICE CHARGE INCOME	��	�				��	�

Commissions for hiring of insurances	��	�	�	375,479�	�	��	�	�	246,003��	�
Rental of safe-deposit boxes	��	�	�	107,209�	�	��	�	�	82,271��	�
Commissions on debit and credit cards	��	�	�	36,709�	�	��	�	�	31,389��	�
Commissions for loans and guaranties	��	�	�	28,654�	�	��	�	�	97,807��	�
Commissions for transportations of values	��	�	�	20,066�	�	��	�	�	15,262��	�
Commissions for escrow	��	�	�	15,077�	�	��	�	�	14,608	�
Commissions for capital market transactions	��	�	�	9,086�	�	��	�	�	10,746	�
Commissions for salary payment	��	�	�	6,914�	�	��	�	�	6,944	�
Commissions for trust management	��	�	�	1,459�	�	��	�	�	922	�
Other	��	�	�	66,058�	�	��	�	�	37,757��	�

	��	�	�	�	�	��	�	�	�	�

Total	��	�	�	666,711�	�	��	�	�	543,709	�

	��	�	�	�	�	��	�	�	�	�

g)��SERVICE CHARGE EXPENSE	��	�				��	�

Turn-over tax	��	�	�	210,148	�	��	�	�	162,188	�
Insurance paid on lease transactions	��	�	�	83,158�	�	��	�	�	40,387��	�
Other	��	�	�	11,674�	�	��	�	�	14,297��	�

	��	�	�	�	�	��	�	�	�	�

Total	��	�	�	304,980	�	��	�	�	216,872	�

	��	�	�	�	�	��	�	�	�	�


	�	- 19 -	�

�


�	��	��09-30-2014��				��	��09-30-2013��

h)��OTHER INCOME	��	�				��	�

Income from the Credit Card Guarantee Fund	��	�	�	44,481	�	��	�	�	13,894��	�
Related parties expenses recovery	��	�	�	39,265	�	��	�	�	17,037��	�
Interest on loans to personnel	��	�	�	23,246	�	��	�	�	21,184��	�
Deferred income tax (1)	��	�	�	14,300	�	��	�	�	164,500	�
Other	��	�	�	35,739�	�	��	�	�	28,564��	�

	��	�	�	�	�	��	�	�	�	�

Total	��	�	�	��157,031	�	��	�	�	��245,179	�

	��	�	�	�	�	��	�	�	�	�

(1) Offset with a charge for the same amount in �Charge for uncollectibility of other receivables and other allowances� account, under Other expense item.

�


i)��OTHER EXPENSE	��	�				��	�

Donations	��	�	�	11,039	�	��	�	�	9,366��	�
Turn-over tax	��	�	�	7,774	�	��	�	�	5,794��	�
Insurance losses	��	�	�	7,681	�	��	�	�	8,894��	�
Private health insurance for former employees	��	�	�	7,279	�	��	�	�	5,965	�
Other	��	�	�	26,088�	�	��	�	�	��13,310��	�

	��	�	�	�	�	��	�	�	�	�

Total	��	�	�	��59,861	�	��	�	�	43,329	�

	��	�	�	�	�	��	�	�	�	�

�

FINANCIAL INFORMATION UNIT: ENFORCEMENT ACTION PROCEEDINGS

In March 2010, the Bank was notified of the commencement of two enforcement action proceedings instituted by the Financial Information Unit (UIF) against BBVA Franc�s and its Regulatory Compliance Officer arising from two wire transfers received by two customers in their respective sight accounts on November�22, 2007 and respectively amounting to 39,393 and 9,174.

It has been the UIF�s understanding that the profile of the customers, as defined, and the supporting documentation submitted by the Bank do not coincide with the possibility of receiving such wire transfers.

In due time, the Bank filed its defenses, offered evidence and petitioned for an acquittal. In addition, the Bank called for the enforcement in this case of the same guarantees available in court proceedings, argued that the statute of limitations applicable to punishable offenses had run out and further claimed that Law No.�25,246 is unconstitutional when it comes to the scale of penalties imposed.

As regards the Regulatory Compliance Officer, the Bank focused on the nature of the penalties that could be imposed on him and petitioned for the enforcement of the general principles of the law in his respect as these prescribe that this officer should not be deemed liable on grounds of occupying the position of regulatory compliance officer at the Bank.

In September and October 2010, the Bank was served with the resolutions adopted by the UIF whereby BBVA Franc�s and the Regulatory Compliance Officer were each ordered to pay a fine for an amount equivalent to one time the transactions objected.

On the basis of its legal advisors� opinion, on October�28 and November�25, 2010, the Bank lodged with the Court of Appeals with Federal Jurisdiction over Contentious Administrative Matters a direct appeal against the UIF�s Resolutions in connection with the wire transfers for 9,174 and 39,393, respectively, in accordance with the provisions under Section�25 of Law No.�25,246.

The Bank and its legal advisors have concluded that the analysis of the transactions involved has been made in compliance with applicable legal regulations and that no Suspicious Transaction Report (�ROS�, for its Spanish acronym) has proven necessary. For such reason, the Bank does not expect any adverse financial impacts in this respect.


	�	- 20 -	�

�

RESTRICTIONS ON ASSETS

As of September�30, 2014 and the end of the previous fiscal year, there are Bank�s assets, which are restricted as follows:

�

The Government and Private Securities account includes 198,000 in peso-denominated Discount Bonds and 191,290 in bonds issued by the Argentine Government in US Dollars maturing in 2017, respectively, allocated to the guarantee required to act as custodian of investment securities related to Guarantee Fund for the Sustainability of the Pay-as-you-go System managed by the Argentine Republic.

�

The Bank appropriated 9,669 in Guaranteed Bonds maturing in 2020 as of September�30, 2014 and 7,754 in peso-denominated fixed rate Argentine Central Bank Bills and 4,053 in Secured Bonds due 2020 as of December�31, 2013, to secure loans arranged under the Credit Global Program to micro, small and medium businesses given by the Interamerican Development Bank (IDB).

�

The Bank appropriated 188,810 and 146,915, respectively, in Guaranteed Bonds maturing in 2020, to secure loans granted by the so-called �Bicentennial Fund�.

�

The Bank has also appropriated accounts, deposits and trusts for 794,911 and 763,876, respectively, as security�for activities related to credit card operations, automated clearing houses, non-deliverable forwards and lawsuits.

�

TRANSACTIONS WITH SUBSIDIARIES AND PARENT COMPANIES (ART. 33 OF LAW No.�19,550)

The balances as of September�30, 2014 and the end of the previous fiscal year, for transactions performed with subsidiaries and parents companies are as follows:

�

��

Balance Sheet

�

��

�Memorandum�Accounts�(1)�

�

��

Assets

�

��

Liabilities

�

��

�

Company

��

2014

�

��

2013

�

��

��2014��

�

��

2013��

�

��

2014��

�

��

2013

�

��

�

BBVA

��

�

109,354�

��

�

21,976�

��

�

��104,471

��

�

53,269

��

�

33,986

��

�

26,740

��

BBVA Franc�s Valores S.A

��

�

87�

��

�

--,--�

��

�

1,359

��

�

4,583

��

�

11,289

��

�

10,661

��

Consolidar Administradora de Fondos de Jubilaciones y Pensiones S.A. (undergoing liquidation proceedings)

��

�

1�

��

�

1�

��

�

666

��

�

24,513

��

�

24,138

��

�

49,339

��

BBVA Franc�s Asset Management S.A. Sociedad Gerente de Fondos Comunes de Inversi�n

��

�

546

��

�

243

��

�

11,427

��

�

23,765

��

�

33,607

��

�

42,548

��

BBVA Consolidar Seguros S.A.

��

�

36,195

��

�

18,314

��

�

24,719

��

�

23,972

��

�

16,946

��

�

--,--

��

PSA Finance Argentina C�a. Financiera S.A.

��

�

1,100,654

��

�

1,054,573

��

�

4,043

��

�

8,760

��

�

224,003

��

�

373,879

��

Rombo C�a. Financiera S.A.

��

�

748,349

��

�

1,063,677

��

�

3,401�

��

�

9,733�

��

�

382,752

��

�

524,802

��

�

(1)

Includes Items in safekeeping, Credit lines granted (unused portion) covered by debtor classification regulations, Guaranties given covered by debtor classification regulations and Derivatives.

�

BANK DEPOSITS GUARANTEE INSURANCE SYSTEM

The Bank is included in the Deposit Guarantee System established by Law 24,485, Regulatory Decrees No.�540/95, No.�1,292/96 and 1,127/98 and Communication �A� 5170 and BCRA�s amendments.

Such law provided for the creation of the Company Seguros de Dep�sitos Sociedad An�nima (SEDESA) for purposes of managing the Deposit Guarantee Fund (DGF), whose shareholders, in accordance with the changes introduced by Decree No.�1,292/96, shall be the BCRA with one share as a minimum and the trustees of the trust created by the financial institutions in the proportion to be determined for each by the BCRA according to their contributions to the DGF.


	�	- 21 -	�

�

That Company was incorporated in August 1995 and the Bank has a 9.5232% interest in its capital stock.

The Deposit Guarantee System, which is limited, compulsory and onerous, has been created for purposes of covering the bank deposit risks subsidiarily and complementarily to the deposit protection and privilege system established by the Financial Institutions Law.

The guarantee shall cover the repayment of principal disbursed plus interest accrued through the date of revoking of the authorization to operate or through the date of suspension of the institution through application of section 49 of the BCRA�s Charter provided that the latter had been adopted earlier than the former without exceeding the amount of pesos a hundred and twenty thousand. Regarding operations in the name of two or more people, the guarantee shall be prorated between the holders. In no event shall the total guarantee per person exceed the above-mentioned amount, whatever the number of accounts and/or deposits. Pursuant to BCRA�s Communication �A� 5641 and to be in force as from November 2014, the amount of the guarantee will be pesos three hundred and fifty thousand.

�

10.

TRUST ACTIVITIES

10.1.��Financial Trusts

On January�5, 2001, the BCRA�s Board of Directors issued Resolution No.�19/01, providing for the exclusion of Mercobank S.A.�s senior liabilities under the terms of section 35 bis of the Financial Institutions Law, the authorization to transfer the excluded assets to the Bank as trustee of the Diagonal Trust, and the authorization to transfer the excluded liabilities to beneficiary banks. Also, on the mentioned date, the agreement to set up the Diagonal Trust was subscribed by Mercobank S.A. as settle and the Bank as trustee in relation to the exclusion of assets as provided in the resolution above-mentioned. As of September�30, 2014 and the end of the previous fiscal year, the assets of Diagonal Trust amount to 2,428 and 2,405, respectively, considering its recoverable value.

Besides, the Bank in its capacity as Trustee in the Corp Banca Trust recorded the selected assets on account of the redemption in kind of participation certificates for 4,177 as of September�30, 2014 and the end of the previous fiscal year.

Such amounts are recorded in memorandum debit accounts �For trustee activities � Funds in trust�.

10.2.��Non Financial Trusts

The Bank acts as trustee in 14 non-financial trusts, and in no case being personally liable for the liabilities assumed in the performance of the contract obligations; such liabilities will be settled with and up to the full amount of the corpus assets and the proceeds therefrom. The non financial trusts concerned were set up to secure the receivables of several creditors (beneficiaries) and the trustee was entrusted the management, care, preservation and custody of the corpus assets until (i)�the requirements to show the noncompliance with the obligations by the debtor (settler) vis-�-vis the creditors (beneficiaries) are met, moment at which such assets will be sold and the proceeds therefrom will be distributed (net of expenses) among all beneficiaries, the remainder (if any) being delivered to the settler, or (ii)�all contract terms and conditions are complied with, in which case all the corpus assets will be returned to the settler or to whom it may indicate. The trust assets represent about 150,888 and 99,373 as of September�30, 2014 and the end of the previous fiscal year, respectively, consist of cash, creditors� rights, real estate and shares.

�

11.

CORPORATE BONDS

On July�15, 2003, an Extraordinary Stockholders� Meeting approved the setting up of a Program for the issuance and re-issuance of ordinary non-convertible Corporate Bonds with ordinary guarantee, or such guarantees as may be decided by the Bank, and unsecured Subordinated Corporate Bonds, convertible or not into shares. During the life of the Program, which was 5 (five) years, it was possible to issue and re-issue any number of series and/or classes of Corporate Bonds as long as at all times the maximum amount in circulation after adding together all series and/or classes outstanding under the Program pending redemption does not exceed at any time US$ 300,000,000 (or the equivalent thereof in other currencies). The Program was approved by CNV Resolution No.�14,967 dated November�29, 2004.

The Global Program was amended according to the resolutions adopted by the Ordinary and Extraordinary Stockholders� Meeting held on April�26, 2007; extended for 5 (five) years by resolution adopted by the Ordinary


	�	- 22 -	�

�

and Extraordinary Stockholders� Meetings held on March�28, 2008 and on April�9, 2013 (approved by the CNV by Resolutions No.�16,010 and No.�17,127 dated November�6, 2008 and July�11, 2013, respectively); and the maximum amount of the issuance was successively increased from US$ 300,000,000 to US$�500,000,000 and from US$ 500,000,000 to US$ 750,000,000 by resolution adopted by the Ordinary and Extraordinary Stockholders� Meetings held on March�30, 2011 and March�26, 2012, respectively.

On December�11, 2012, the Bank approved the issuance of Class 4 of its Corporate Bonds under the Program for a principal amount of up to $ 200,000,000. On May�9, 2013 the Bank decided to increase the maximum amount of the issuance up to $ 300,000,000. On July�31, 2013, the Bank issued its Corporate Bonds, which were fully subscribed and paid in for 250,000 for a term of 18 months, to be fully amortized at maturity and subject to a variable interest rate equivalent to the private Badlar rate plus a spread of a nominal 3.69%�per annum, with quarterly interest payments. As provided for in the Corporate Bonds Law and the BCRA regulations, the proceeds obtained from the issuance of the above-mentioned Class were applied to the reimbursement of time deposits.

On August�8, 2013, the Bank approved the issuance of Class 6 and 7 of its Corporate Bonds under the Program for a joint principal amount of up to $ 500,000,000. On November�8, 2013, the Bank issued Class 6 and 7 of its Corporate Bonds, which were fully subscribed and paid in for 121,357 for a term of 18 months, to be fully amortized at maturity and subject to a variable interest rate equivalent to the private Badlar rate plus a spread of a nominal 3.25%�per annum, with quarterly interest payments and for 250,000 for a term of 36 months, to be fully amortized at maturity and subject to a variable interest rate equivalent to the private Badlar rate plus a spread of a nominal 4.24%�per annum, with quarterly interest payments, respectively. As provided for in the Corporate Bonds Law and the BCRA regulations, the proceeds obtained from the issuance of the above-mentioned Classes were applied to the reimbursement of time deposits.

On November�26, 2013, the Bank approved the issuance of Class 8 and 9 of its Corporate Bonds under the Program for a joint principal amount of up to $ 500,000,000. On February�11, 2014, the Bank issued Class 8 and 9 of its Corporate Bonds, which were fully subscribed and paid in for 258,880 for a term of 18 months, to be fully amortized at maturity and subject to a variable interest rate equivalent to the private Badlar rate plus a spread of a nominal 3.8%�per annum, with quarterly interest payments and for 145,116 for a term of 36 months, to be fully amortized at maturity and subject to a variable interest rate equivalent to the private Badlar rate plus a spread of a nominal 4.7%�per annum, with quarterly interest payments, respectively. As provided for in the Corporate Bonds Law and the BCRA regulations, the proceeds obtained from the issuance of the above-mentioned Classes were applied to the reimbursement of time deposits.

On April�30, 2014, the Bank approved the issuance of Class 10 and 11 of its Corporate Bonds under the Program for a joint principal amount of up to $ 500,000,000. On July�18, 2014, the Bank issued Class 10 and 11 of its Corporate Bonds, which were fully subscribed and paid in for 233,750 for a term of 18 months, to be fully amortized at maturity and subject to a variable interest rate equivalent to the private Badlar rate plus a spread of a nominal 2.5%�per annum, with quarterly interest payments and for 165,900 for a term of 36 months, to be fully amortized at maturity and subject to a variable interest rate equivalent to the private Badlar rate plus a spread of a nominal 3.75%�per annum, with quarterly interest payments, respectively. As provided for in the Corporate Bonds Law and the BCRA regulations, the proceeds obtained from the issuance of the above-mentioned Classes were applied to the reimbursement of time deposits.

On August�26, 2014, the Bank approved the issuance of Class 12 and 13 of its Corporate Bonds under the Program for a joint principal amount of up to $500.000.000. The subscription period started on October�31, 2014. The date of issuance shall be November�13, 2014.

As of September�30, 2014 and the end of the previous fiscal year, the outstanding principal and accrued interest amounts to 1,482,801 (in connection with Class 4, 6, 7, 8, 9, 10 and 11 of the Corporate Bonds) and 644,164 (in connection with Class 4, 6 and 7 of the Corporate Bonds), respectively.

�

12.

DERIVATIVE FINANCIAL INSTRUMENTS

�

Transactions as of September�30, 2014:

�

Interest rate swaps for 1,127,103 (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 1 year for which the Bank pays a fixed amount and receives a variable amount in accordance with changes in the Badlar rate.


	�	- 23 -	�

�

These transactions have been valued in accordance with the criteria described in note 2.3.n.1.) recognizing the amount of 4,304 as loss for the period.

The estimated fair value of said instruments amounts to 16,534 (Asset). For fair value estimation purposes, the variable and fixed as yet not matured future flows are discounted, with the swap value being the difference between the current value of the future flows receivable and the current value of the future flows payable.

As of the end of the period, the above transactions were recorded under �Memorandum Accounts - Debit Accounts � Derivatives � Interest rate swap� for 1,132,103.

�

Interest rate swap for 38,102 (Fixed Rate versus Badlar), with final maturity in September 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.

Said transaction was consummated as hedge for potential volatility in the cash flows arising from certain financing deals attributable to changes in the designated benchmark interest rates and it has proven to be effective hedge for the risk mentioned.

The aim pursued by risk management consists in reducing exposure to changes in cash flows arising from financing deals. Thanks to the hedge established, changes in the cash flows arising from the underlying instrument caused by changes in the benchmark interest rate would decrease as a result of having been offset with the changes in the cash flows arising from the hedge instrument.

As of the end of the fiscal year the above transaction was recorded under �Memorandum Accounts - Debit Accounts �Derivatives � Interest rate swap� for 38,102.

�

Non-deliverable forward purchase and sale transactions in foreign currency payable in Pesos, maturing within a period not exceeding 1 year, for 4,387,582 and 3,952,992, 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.

These transactions have been valued in accordance with the criteria described in note 2.3.n.2.), recognizing the amount of 474,233 as income for the period.

�

Forward sales of BCRA Bills under repurchase agreements for 1,760,610 and of Government securities for 134,502, which are recorded under �Other liabilities from financial transactions � Instruments to be delivered for spot and forward sales to be settled�.

These transactions have been valued in accordance with the description in note 2.3.g) recognizing the amount of 25,415 as income for the period.

�

The Bank does not carry any pending balances associated to reverse repos in force at September�30, 2014. However, the transactions conducted at September�30, 2014 have yielded a 5,733 loss at the end of the period.

�

II.

Transactions as of December�31, 2013:

�

Interest rate swaps for 1,412,963 (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 65,000 (Badlar versus Fixed Rate), maturing within a period not exceeding 1 year for which the Bank pays a fixed amount and receives a variable amount in accordance with changes in the Badlar rate.

These transactions have been valued in accordance with the criteria described in note 2.3.n.1.) recognizing the amount of 22,019 as income for the fiscal year.


	�	- 24 -	�

�

The estimated fair value of said instruments amounts to 35,388 (Liability). For fair value estimation purposes, the variable and fixed as yet not matured future flows are discounted, with the swap value being the difference between the current value of the future flows receivable and the current value of the future flows payable.

As of the end of the fiscal year, the above transactions were recorded under �Memorandum Accounts - Debit Accounts � Derivatives � Interest rate swap� for 1,477,963.

�

Interest rate swap for 42,775 (Fixed Rate versus Badlar), with final maturity in September 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.

As of the end of the fiscal year the above transaction was recorded under �Memorandum Accounts - Debit Accounts �Derivatives � Interest rate swap� for 42,775.

�

Non-deliverable forward purchase and sale transactions in foreign currency payable in Pesos, maturing within a period not exceeding 1 year, for 5,414,377 and 1,871,743, 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.

These transactions have been valued in accordance with the mechanism described in note 2.3.n.2.), recognizing the amount of 465,650 as income for the fiscal year.

�

Forward sales of BCRA Bills and Notes under repurchase agreements for 175,277 and of Government securities for 5,103, which are recorded under �Other liabilities from financial transactions � Instruments to be delivered for spot and forward sales to be settled�.

These transactions have been valued in accordance with the description in note 2.3.g) recognizing the amount of 45,601 as income for the fiscal year.

�

The Bank does not carry any pending balances associated to reverse repos in force at December�31, 2013. However, the transactions conducted at December�31, 2013 have yielded a 2,133 loss at the end of the fiscal year.

�

13.

COMPLIANCE WITH CNV REQUIREMENTS

13.1 Minimum Stockholders� Equity and Minimum of liquid assets:

According to CNV�s General Resolution No.�622/13, the minimum Stockholders� Equity required to operate as �Settlement and Clearing Agent � Comprehensive� would amount to 15,000 and the minimum of liquid assets required by those rules would be 7,500, this amount is carried in the account identified in the Bank�s records with the number 111.015.003 (named �Argentine Central Bank � Checking Account (Balancing entry � CNV)�). As of September�30, 2014, and the end of the previous fiscal year, the Bank�s Stockholders� Equity exceeds the minimum amount imposed by CNV.


	�	- 25 -	�

�

13.2 Investment Funds custodian

As of September�30, 2014 and the end of the previous fiscal year, in its capacity of Investment Funds custodian of �FBA Renta Pesos�, �FBA Ahorro Pesos�, �FBA Calificado�, �FBA Horizonte�, �FBA Acciones Latinoamericanas�, �FBA Bonos Argentina�, �FBA Acciones Argentinas�, �FBA Bonos Globales�, �FBA Bonos Latinoamericanos�, �FBA Renta D�lares�, �FBA Renta�, �FBA Total�, �FBA Acciones Globales�, �FBA Internacional�, �FBA Ahorro D�lares�, �FBA Renta Fija�, �FBA Renta Premium� and �FBA Renta Corto Plazo� administrated by BBVA Franc�s Asset Management S.A. Sociedad Gerente de Fondos Comunes de Inversi�n, the Bank holds certificates of deposits, deferred payment checks, shares, corporate bonds, government securities, indexes, securities issued by the BCRA, Cedears, ADRS and shares in mutual funds in safekeeping in the amount of 4,602,160 and 1,499,521, respectively, all of which making up the Fund�s portfolio and booked in �Memorandum Accounts - Debit Accounts -Control - Other�.

The Investment Funds� equities are as follows:

�

��

�

��

�

EQUITIES�AS�OF��

�

��INVESTMENT FUND��

��

��09-30-2014��

�

��12-31-2013��

�

FBA Renta Pesos

��

�

2,216,748��

��

�

1,460,275��

��

FBA Ahorro Pesos

��

�

2,568,062��

��

�

541,736��

��

FBA Calificado

��

�

331,870��

��

�

126,513��

��

FBA Horizonte

��

�

71,280��

��

�

47,322��

��

FBA Acciones Latinoamericanas

��

�

78,059��

��

�

41,623��

��

FBA Bonos Argentina

��

�

20,155��

��

�

5,096��

��

FBA Acciones Argentinas

��

�

992��

��

�

468��

��

FBA Bonos Globales

��

�

182��

��

�

117��

��

FBA Bonos Latinoamericanos (*)

��

�

--,--��

��

�

26,211��

��

FBA Renta D�lares (*)

��

�

--,--��

��

�

5,971��

��

FBA Renta (*)

��

�

--,--��

��

�

20,537��

��

FBA Total (*)

��

�

--,--��

��

�

20,817��

��

FBA Acciones Globales (*)

��

�

--,--��

��

�

47,620��

��

FBA Internacional (*)

��

�

--,--��

��

�

4,558��

��

FBA Ahorro D�lares (*)

��

�

--,--��

��

�

14,092��

��

FBA Renta Fija (*)

��

�

--,--��

��

�

14,373��

��

FBA Renta Premium (*)

��

�

--,--��

��

�

8,866��

��

FBA Renta Corto Plazo (*)

��

�

--,--��

��

�

316��

��

�

Total

��

�

��

��

�

5,287,348��

��

�

��

��

�

2,386,511��

��

�

(*) On August�30, 2013, BBVA Franc�s Asset Management S.A. Sociedad Gerente de Fondos Comunes de Inversi�n decided to start the process of liquidation of FBA Renta D�lares, FBA Ahorro D�lares, FBA Renta Fija, FBA Renta Premium and FBA Renta Corto Plazo, on September�2, 2013 of FBA Acciones Globales and FBA Renta, and on January�27, 2014 of FBA Internacional, FBA Total and FBA Bonos Latinoamericanos. As of the date of issuance of these financial statements, the Asset Manager had paid off all the amounts due to the holders of shares in these funds, except to the holders of shares in FBA Acciones Globales, to whom partial payments have been made (with the remaining funds having been deposited in a special account at BBVA Franc�s).

�

14.

EARNINGS DISTRIBUTIONS

The Bank has in place an earnings distribution policy in line with the Bank�s vocation for sustained stockholder value, that at the same time allows the Bank�s financial condition to perform favourably so as to strive for business growth and the maintenance of consistently high liquidity and solvency standards in compliance with currently applicable rules and regulations.

In accordance with Communication �A� 5273 of �Distribution of Income� of the BCRA, issued on January�27, 2012, for purposes of calculating the earnings subject to distribution, off-balance sheet deductions must be performed from the sum of the balances recorded in the account Unappropriated retained earnings and in the Voluntary reserve for future distributions of income as set forth in point 2.1 of such 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.


	�	- 26 -	�

�

15.

ACCOUNTS IDENTIFYING COMPLIANCE WITH MINIMUM CASH

The following are the items computed for Compliance with Minimum Cash Requirements according to the regulations of the BCRA, with their corresponding balances as of September�30, 2014 and the end of the previous fiscal year:

�


�	��	��09-30-14��		�	��	��12-31-13��		�

COMPUTABLE COMPLIANCE IN PESOS	��				��

Special Guarantee Accounts	��	�	231,884�	��	��	�	224,634�	��
BCRA Checking Account	��	�	5,201,006�	��	��	�	5,357,009�	��
Special social security accounts	��	�	74,080�	��	��	�	--,--�	��
Franchises	��	�	--,--�	��	��	�	81,944�	��
	��	�	�	�	��	�	�	�

TOTAL	��	�	5,506,970�	��	��	�	5,663,587�	��
	��	�	�	�	��	�	�	�

COMPUTABLE COMPLIANCE IN US DOLLARS (Stated in thousands of pesos)				��	��

Special Guarantee Accounts	��	�	34,298�	��	��	�	26,411�	��
BCRA Checking Account	��	�	4,470,749�	��	��	�	5,147,476�	��
	��	�	�	�	��	�	�	�

TOTAL	��	�	4,505,047�	��	��	�	5,173,887�	��
	��	�	�	�	��	�	�	�

COMPUTABLE COMPLIANCE IN EUROS (Stated in thousands of pesos)				��	��

BCRA Checking Account	��	�	56,590�	��	��	�	40,957�	��
	��	�	�	�	��	�	�	�

TOTAL	��	�	56,590�	��	��	�	40,957�	��
	��	�	�	�	��	�	�	�

�

16.

STATEMENTS OF CASH AND CASH EQUIVALENTS FLOW

The Statements of Cash and cash equivalents flow explain the changes in cash and cash equivalents. For such purpose, a detail is supplied of the items that the Bank considers to be cash and cash equivalents:

�

��

��09-30-14��

�

��

��12-31-13��

�

��

��09-30-13��

��

��12-31-12��

�

a)�Cash and due from banks

��

�

12,469,867��

��

�

12,844,259��

��

7,739,996

��

�

8,594,068��

��

b)�Government securities

��

�

521,731��

��

�

88,812��

��

247,005

��

�

100,301��

��

c)�Loans to financial sector, call granted maturity date less than three months as from the end of the period or fiscal year

��

�

308,800��

��

�

671,120��

��

503,690

��

�

426,619��

��

�

��

�

��

�

��

�

CASH AND CASH EQUIVALENTS

��

�

13,300,398��

��

�

13,604,191��

��

8,490,691

��

�

9,120,988��

��

�

��

�

��

�

��

�


	�	- 27 -	�

�

Items b) and c) are considered to be cash equivalents because they are held in order to meet short-term commitments, they are easily convertible in known cash amounts, they are subject to negligible changes in value and their maturity is less than three months as from each period or fiscal year date.

�

17.

THE BANK�S DOCUMENTATION AND RECORDS � CNV RESOLUTION No.�629/14

CNV issued its General Resolution No.�629 on August�14, 2014 to introduce changes in its own rules governing the maintenance and safekeeping of corporate books, accounting records and business documentation. In this respect, it is reported that the Bank has sent the documentation that supports its operations for the periods still open to audit for safekeeping to Administradora de Archivos S.A. (AdeA), domiciled at Ruta 36 Km. 31.5 of Florencio Varela, Province of Buenos Aires.

In addition, it is put on record that a detail of the documentation delivered for safekeeping, as well as the documentation referred to in Article 5, Sub-article a.3), Section I of Chapter V of Title II of the CNV rules is available at the Bank�s registered office (Technical Rules 2013 as modified).

�

18.

PUBLICATION OF THE FINANCIAL STATEMENTS

As provided by Communication �A� 760, the previous intervention of the BCRA is not required for the publication of these financial statements.

�

19.

ACCOUNTING PRINCIPLES � EXPLANATION ADDED FOR TRANSLATION INTO ENGLISH

These financial statements are presented on the basis of the accounting standards of the BCRA and, except for the effect of the matters mentioned in note 3 to the stand � alone financial statements and note 2 to the consolidated financial statements, in accordance with the Argentine professional accounting standards. Certain accounting practices applied by the Bank that conform with the standards of the BCRA and with the Argentine professional accounting standards may not conform with the generally accepted accounting principles in other countries.

The effects of the differences, if any, between Argentine professional accounting standards and the generally accepted accounting principles in the countries in which the financial statements are to be used have not been quantified. Accordingly, they are not intended to present financial position, results of operations and cash flows in accordance with generally accepted accounting principles in the countries of the users of the financial statements, other than Argentina.


	�	- 28 -	�

�

EXHIBIT A

DETAIL OF GOVERNMENT AND PRIVATE SECURITIES

AS OF SEPTEMBER 30, 2014 AND DECEMBER 31, 2013

(Translation of financial statements originally issued in Spanish - See note 19)

- Stated in thousands of pesos -

�

Holding

�

Book

balance

�

Book
balance

�

Position

�

ID�

�

Market

�

as of

�

as of

�

without

�

Final

�

Caja�de�

�

value�or

�

Description

�

Valores�

�

�present�value�

�

��09-30-2014��

�

��12-31-2013��

�

��options��

�

��position��

�

GOVERNMENT SECURITIES

�

Government securities at fair value

�

Local

�

In pesos

�

Secured Bonds due 2020

�

2423

�

��

�

1,146,234

��

�

��

�

��

�

1,146,234

��

�

��

�

1,146,234

��

Peso-denominated Discount governed by Argentine Law maturing in 2033

�

45696

�

451,091

��

�

451,091

��

�

451,091

��

Federal Government Bonds in Pesos Badlar + 200 bp due 2017

�

5460

�

388,400

��

�

388,400

��

�

388,400

��

Federal Government Bonds in Pesos Badlar + 200 bp due 2017

�

5459

�

189,684

��

�

189,684

��

�

189,684

��

Federal Government Bonds in Pesos Badlar + 300 bp due 2015

�

5441

�

91,048

��

�

--,--

��

�

--,--

��

Other

�

52,622

��

�

31,938

��

�

31,938

��

�

Subtotal in pesos

�

2,319,079

��

�

1,110,448

��

�

2,207,347

��

�

2,207,347

��

�

In foreign currency

�

Argentine Bond of Saving towards economic development

�

5456

�

193,147

��

�

193,147

��

�

193,147

��

Federal Government Bonds in US Dollars 7% due 2015

�

5433

�

27,940

��

�

--,--

��

�

--,--

��

Other

�

22,770

��

�

--,--

��

�

--,--

��

�

Subtotal in foreign currency

�

243,857

��

�

871,590

��

�

193,147

��

�

193,147

��

�

Subtotal Government securities at fair value

�

2,562,936

��

�

1,982,038

��

�

2,400,494

��

�

2,400,494

��

�

Government securities at amortized cost

�

Local

�

In pesos

�

Other

�

164��

��

�

164

��

�

164

��

�

164

��

�

Subtotal in pesos

�

164

��

�

164

��

�

164

��

�

164

��

�

Subtotal Government securities at amortized cost

�

164

��

�

164

��

�

164

��

�

164

��

�


	�	- 29 -	�

�

EXHIBIT A

(Contd.)��

�

DETAIL OF GOVERNMENT AND PRIVATE SECURITIES

AS OF SEPTEMBER 30, 2014 AND DECEMBER 31, 2013

(Translation of financial statements originally issued in Spanish - See note 19)

- Stated in thousands of pesos -

�

��

�

��

Holding

�

��

�

��

�

��

�

��

�

��

Book

balance

�

��

Book
balance

�

��

Position

�

��

�

��

ID��

��

Market

��

as of

�

��

as of

�

��

without

�

��

Final

�

��

Caja�de��

��

value�or

��

�

��

�

��

�

��

�

Description

��

Valores��

��

present�value

��

��09-30-2014��

�

��

��12-31-2013��

�

��

��options��

�

��

��position��

�

��

�

��

�

��

�

��

�

��

�

Instruments issued by the BCRA

��

�

��

�

��

�

��

�

BCRA Bills

��

�

��

�

��

�

��

�

At fair value

��

�

��

�

��

�

��

�

Argentine Central Bank Internal Bills due 10-15-14

��

46274

��

�

��

�

333,644

��

�

��

�

��

�

��

�

333,644

��

�

��

�

333,644

��

Argentine Central Bank Internal Bills due 10-29-14

��

46575

��

�

52,385

��

�

��

�

52,385

��

�

52,385

��

Argentine Central Bank Internal Bills due 10-22-14

��

46602

��

�

38,646

��

�

��

�

42,589

��

�

42,589

��

Argentine Central Bank Internal Bills due 10-01-14

��

46270

��

�

21,085

��

�

��

�

21,085

��

�

21,085

��

Other

��

�

18,373

��

�

��

�

18,373

��

�

18,373

��

�

��

�

��

�

��

�

Subtotal at fair value

��

�

464,133

��

�

495

��

�

468,076

��

�

468,076

��

�

��

�

��

�

��

�

Repurchase transactions

��

�

��

�

��

�

��

�

Argentine Central Bank Internal Bills due 01-28-15

��

46291

��

�

975,547

��

�

��

�

--,--

��

�

--,--

��

Argentine Central Bank Internal Bills due 09-16-15

��

46615

��

�

700,378

��

�

��

�

--,--

��

�

--,--

��

Argentine Central Bank Internal Bills due 12-24-14

��

46574

��

�

84,685

��

�

��

�

--,--

��

�

--,--

��

�

��

�

��

�

��

�

Subtotal repurchase transactions

��

�

1,760,610

��

�

39,882

��

�

--,--

��

�

--,--

��

�

��

�

��

�

��

�

At amortized cost

��

�

��

�

��

�

��

�

Argentine Central Bank Internal Bills due 07-01-15

��

46603

��

�

456,365

��

�

��

�

456,365

��

�

456,365

��

Argentine Central Bank Internal Bills due 02-18-15

��

46578

��

�

430,691

��

�

��

�

430,691

��

�

430,691

��

Argentine Central Bank Internal Bills due 04-22-15

��

46591

��

�

390,528

��

�

��

�

390,528

��

�

390,528

��

Argentine Central Bank Internal Bills due 06-03-15

��

46596

��

�

372,244

��

�

��

�

372,244

��

�

372,244

��

Argentine Central Bank Internal Bills due 01-28-15

��

46291

��

�

329,476

��

�

��

�

329,547

��

�

329,547

��

Argentine Central Bank Internal Bills due 12-17-14

��

46282

��

�

323,745

��

�

��

�

314,282

��

�

314,282

��

Argentine Central Bank Internal Bills due 02-04-15

��

46296

��

�

309,065

��

�

��

�

309,065

��

�

309,065

��

Argentine Central Bank Internal Bills due 05-27-15

��

46595

��

�

297,518

��

�

��

�

297,518

��

�

297,518

��

Argentine Central Bank Internal Bills due 03-04-15

��

46590

��

�

288,615

��

�

��

�

288,615

��

�

288,615

��

Argentine Central Bank Internal Bills due 05-20-15

��

46594

��

�

277,160

��

�

��

�

277,160

��

�

277,160

��

Argentine Central Bank Internal Bills due 03-25-15

��

46587

��

�

265,749

��

�

��

�

265,749

��

�

265,749

��

Argentine Central Bank Internal Bills due 11-19-14

��

46573

��

�

236,597

��

�

��

�

236,597

��

�

236,597

��

Argentine Central Bank Internal Bills due 07-08-15

��

46605

��

�

206,404

��

�

��

�

206,404

��

�

206,404

��

Argentine Central Bank Internal Bills due 06-10-15

��

46597

��

�

168,359

��

�

��

�

168,359

��

�

168,359

��

Argentine Central Bank Internal Bills due 01-07-15

��

46284

��

�

134,200

��

�

��

�

134,200

��

�

134,200

��

Argentine Central Bank Internal Bills due 07-15-15

��

46604

��

�

106,867

��

�

��

�

106,867

��

�

106,867

��

Argentine Central Bank Internal Bills due 01-14-15

��

46572

��

�

52,232

��

�

��

�

52,232

��

�

52,232

��

Argentine Central Bank Internal Bills due 11-26-14

��

46541

��

�

26,936

��

�

��

�

26,936

��

�

26,936

��

Argentine Central Bank Internal Bills due 12-24-14

��

46574

��

�

24,528

��

�

��

�

988

��

�

988

��

Argentine Central Bank Internal Bills due 01-21-15

��

46287

��

�

23,873

��

�

��

�

23,873

��

�

23,873

��

Argentine Central Bank Internal Bills due 02-11-15

��

46577

��

�

--,--

��

�

��

�

199,493

��

�

199,493

��

Other

��

�

33,328

��

�

��

�

24,916

��

�

24,916

��

�

��

�

��

�

��

�

Subtotal at amortized cost

��

�

4,754,480

��

�

1,232,715

��

�

4,912,629

��

�

4,912,629

��

�

��

�

��

�

��

�

BCRA Notes

��

�

��

�

��

�

��

�

Repurchase transactions

��

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

Subtotal repurchase transactions

��

�

--,--

��

�

135,395

��

�

--,--

��

�

--,--

��

�

��

�

��

�

��

�

At amortized cost

��

�

��

�

��

�

��

�

Argentine Central Bank Notes � In Pesos � Variable Badlar coupon due 11-05-14

��

46592

��

�

51,883

��

�

��

�

51,883

��

�

51,883

��

�

��

�

��

�

��

�

Subtotal at amortized cost

��

�

51,883

��

�

--,--

��

�

51,883

��

�

51,883

��

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

Subtotal instruments issued by the BCRA

��

�

7,031,106

��

�

1,408,487

��

�

5,432,588

��

�

5,432,588

��

�

��

�

��

�

��

�

TOTAL GOVERNMENT SECURITIES

��

�

9,594,206

��

�

3,390,689

��

�

7,833,246

��

�

7,833,246

��

�

��

�

��

�

��

�


	�	- 30 -	�

�

EXHIBIT A

(Contd.)��

�

DETAIL OF GOVERNMENT AND PRIVATE SECURITIES

AS OF SEPTEMBER 30, 2014 AND DECEMBER 31, 2013

(Translation of financial statements originally issued in Spanish - See note 19)

- Stated in thousands of pesos -

�

��

�

��

Holding

�

��

�

��

�

Description

��

ID�Caja�de�Valores��

��

��Market��

value

��

Book

balance�as

�09-30-2014�

�

��

Book

balance�as

�12-31-2013�

�

��

��Position��

without

options

�

��

Final

��position��

�

��

�

��

�

��

�

��

�

��

�

INVESTMENTS IN LISTED PRIVATE SECURITIES

��

�

��

�

��

�

��

�

Other debt instruments

��

�

��

�

��

�

��

�

Other Equity instruments

��

�

��

�

��

�

��

�

Local

��

�

��

�

��

�

��

�

In pesos

��

�

��

�

��

�

��

�

Tenaris S.A.

��

40115��

��

�

��

�

268

��

�

��

�

��

�

��

�

268

��

�

��

�

268

��

�

��

�

��

�

��

�

Subtotal in pesos

��

�

268

��

�

--,--

��

�

268

��

�

268

��

�

��

�

��

�

��

�

From abroad

��

�

��

�

��

�

��

�

In foreign currency

��

�

��

�

��

�

��

�

Silicon Graphics Inc.

��

6003

��

�

��

�

��

�

��

�

��

Other

��

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

Subtotal in foreign currency

��

�

116

��

�

��

�

116

��

�

116

��

�

��

�

��

�

��

�

Subtotal Equity instruments

��

�

384

��

�

��

�

384

��

�

384

��

�

��

�

��

�

��

�

TOTAL INVESTMENTS IN LISTED PRIVATE SECURITIES

��

�

384

��

�

��

�

384

��

�

384

��

�

��

�

��

�

��

�

TOTAL GOVERNMENT AND PRIVATE SECURITIES

��

�

9,594,590

��

�

3,390,779

��

�

7,833,630

��

�

7,833,630

��

�

��

�

��

�

��

�


	�	- 31 -	�

�

EXHIBIT B

CLASSIFICATION OF FINANCING FACILITIES BY CATEGORIES

AND GUARANTIES RECEIVED AS OF SEPTEMBER 30, 2014 AND DECEMBER 31, 2013

(Translation of financial statements originally issued in Spanish - See note 19)

-Stated in thousands of pesos-

�


�	��	��09-30-2014��				��	��12-31-2013��

COMMERCIAL PORTFOLIO	��	�				��	�

Normal performance	��	�	�	��24,045,407��	�	��	�	�	��21,239,671��	�

	��	�	�	�	�	��	�	�	�	�

Preferred collaterals and counter guaranties �A�	��	�	�	934,280��	�	��	�	�	779,621��	�
Preferred collaterals and counter guaranties �B�	��	�	�	798,028��	�	��	�	�	577,055��	�
Without senior security or counter guaranties	��	�	�	22,313,099��	�	��	�	�	19,882,995��	�

With special follow-up	��	�	�	4,232��	�	��	�	�	19,473��	�

	��	�	�	�	�	��	�	�	�	�

Under observation	��	�	�	4,232��	�	��	�	�	15,428��	�

	��	�	�	�	�	��	�	�	�	�

Preferred collaterals and counter guaranties �B�	��	�	�	1,872��	�	��	�	�	--,--��	�
Without senior security or counter guaranties	��	�	�	2,360��	�	��	�	�	15,428��	�
Negotiations for recovery or re-financing agreements underway	��	�	�	--,--��	�	��	�	�	4,045��	�

	��	�	�	�	�	��	�	�	�	�

Preferred collaterals and counter guaranties �B�	��	�	�	--,--	�	��	�	�	786	�
Without senior security or counter guaranties	��	�	�	--,--��	�	��	�	�	3,259��	�

Non-performing	��	�	�	15,361��	�	��	�	�	2,717��	�

	��	�	�	�	�	��	�	�	�	�

Preferred collaterals and counter guaranties �B�	��	�	�	829	�	��	�	�	--,--��	�
Without senior security or counter guaranties	��	�	�	14,532��	�	��	�	�	2,717��	�

With high risk of uncollectibility	��	�	�	3,544��	�	��	�	�	27,632��	�

	��	�	�	�	�	��	�	�	�	�

Preferred collaterals and counter guaranties �B�	��	�	�	--,--	�	��	�	�	338	�
Without senior security or counter guaranties	��	�	�	3,544��	�	��	�	�	27,294��	�

Uncollectible	��	�	�	28,586	�	��	�	�	10,035	�

	��	�	�	�	�	��	�	�	�	�

Preferred collaterals and counter guaranties �B�	��	�	�	4,088	�	��	�	�	--,--	�
Without senior security or counter guaranties	��	�	�	24,498	�	��	�	�	10,035	�

	��	�	�	�	�	��	�	�	�	�

Total	��	�	�	24,097,130	�	��	�	�	21,299,528	�

	��	�	�	�	�	��	�	�	�	�

�


	�	- 32 -	�

�

EXHIBIT B

(Contd.)��

�

CLASSIFICATION OF FINANCING FACILITIES BY CATEGORIES

AND GUARANTIES RECEIVED AS OF SEPTEMBER 30, 2014 AND DECEMBER 31, 2013

(Translation of financial statements originally issued in Spanish - See note 19)

-Stated in thousands of pesos-

�


�	��	��09-30-2014��				��	��12-31-2013��

CONSUMER AND HOUSING PORTFOLIO	��	�				��	�

Normal performance	��	�	�	��18,849,410	�	��	�	�	��16,814,083	�

	��	�	�	�	�	��	�	�	�	�

Preferred collaterals and counter guaranties �A�	��	�	�	18,835	�	��	�	�	20,369	�
Preferred collaterals and counter guaranties �B�	��	�	�	1,638,067	�	��	�	�	1,524,188	�
Without senior security or counter guaranties	��	�	�	17,192,508	�	��	�	�	15,269,526	�

Low risk	��	�	�	201,287	�	��	�	�	178,283	�

	��	�	�	�	�	��	�	�	�	�

Preferred collaterals and counter guaranties �B�	��	�	�	21,436	�	��	�	�	23,784	�
Without senior security or counter guaranties	��	�	�	179,851	�	��	�	�	154,499	�

Medium risk	��	�	�	179,109	�	��	�	�	128,909	�

	��	�	�	�	�	��	�	�	�	�

Preferred collaterals and counter guaranties �B�	��	�	�	7,184	�	��	�	�	9,231	�
Without senior security or counter guaranties	��	�	�	171,925	�	��	�	�	119,678	�

High risk	��	�	�	107,563	�	��	�	�	68,101	�

	��	�	�	�	�	��	�	�	�	�

Preferred collaterals and counter guaranties �B�	��	�	�	18,924	�	��	�	�	15,004	�
Without senior security or counter guaranties	��	�	�	88,639	�	��	�	�	53,097	�

Uncollectible	��	�	�	20,584	�	��	�	�	14,802	�

	��	�	�	�	�	��	�	�	�	�

Preferred collaterals and counter guaranties �B�	��	�	�	7,269	�	��	�	�	6,403	�
Without senior security or counter guaranties	��	�	�	13,315��	�	��	�	�	8,399��	�

Uncollectible, classified as such under regulatory requirements	��	�	�	106	�	��	�	�	100	�

	��	�	�	�	�	��	�	�	�	�

Without senior security or counter guaranties	��	�	�	106	�	��	�	�	100	�

	��	�	�	�	�	��	�	�	�	�

Total	��	�	�	19,358,059	�	��	�	�	17,204,278	�

	��	�	�	�	�	��	�	�	�	�

General Total (1)	��	�	�	43,455,189	�	��	�	�	38,503,806	�

	��	�	�	�	�	��	�	�	�	�

(1) Items included: Loans (before allowances); Other receivables from financial transactions: Unlisted corporate bonds and Other receivables covered by debtor classification regulations; Receivables from financial leases (before allowances); Memorandum accounts - Credit - Contingent: Credit lines granted (unused portion) covered by debtor classification regulations, Other guaranties given covered by debtor classification regulations and Other covered by debtor classification regulations.


	�	- 33 -	�

�

EXHIBIT C

FINANCING FACILITIES CONCENTRATION

AS OF SEPTEMBER 30, 2014 AND DECEMBER 31, 2013

(Translation of financial statements originally issued in Spanish - See note 19)

- Stated in thousands of pesos -

�

��

09-30-2014

��

12-31-2013

Number of clients

��

��Outstanding��
balance

��

��%�of�total��
portfolio

��

��Outstanding��
balance

��

�%�of�total��
portfolio

10 largest clients

��

�

4,602,030

�

��

�

10.59%

�

��

�

4,236,449

�

��

�

11.00%

�

50 next largest clients

��

�

6,962,438

�

��

�

16.02%

�

��

�

5,680,349

�

��

�

14.75%

�

100 following clients

��

�

4,377,795

�

��

�

10.07%

�

��

�

3,998,701

�

��

�

10.39%

�

Remaining clients

��

�

27,512,926

�

��

�

63.32%

�

��

�

24,588,307

�

��

�

63.86%

�

��

�

��

�

��

�

��

�

Total (1)

��

�

��43,455,189

�

��

�

100.00%

�

��

�

��38,503,806

�

��

�

100.00%

�

��

�

��

�

��

�

��

�

(1)	See (1)�in Exhibit B.


	�	- 34 -	�

�

EXHIBIT D

BREAKDOWN BY FINANCING TERMS AS OF SEPTEMBER 30, 2014

(Translation of financial statements originally issued in Spanish - See note 19)

- Stated in thousands of pesos -

�

Term remaining to maturity

�

Description

�

Past-due
��portfolio��

�

��1�month��

�

��3�months��

�

��6�months��

�

��12�months��

�

��24�months��

�

�More�than�24�
months

�

��Total��

�

Government sector

�

--,--

�

467

�

--,--

�

--,--

�

--,--

�

--,--

�

51,478

�

51,945

�

Financial sector

�

--,--

�

653,488

�

168,956

�

339,534

�

682,917

�

432,040

�

18,500

�

2,295,435

�

Non financial private sector and residents abroad

�

140,596

�

17,761,806

�

4,670,255

�

4,719,423

�

3,789,206

�

4,674,330

�

5,352,193

�

41,107,809

�

TOTAL

�

140,596

�

18,415,761

�

4,839,211

�

5,058,957

�

4,472,123

�

5,106,370

�

5,422,171

�

43,455,189

�

(1)

�

(1)	See (1)�in Exhibit B.


	�	- 35 -	�

�

EXHIBIT E

DETAIL OF INVESTMENTS IN OTHER COMPANIES

AS OF SEPTEMBER 30, 2014 AND DECEMBER 31, 2013

(Translation of financial statements originally issued in Spanish � See note 19)

- Stated in thousands of pesos -

�

Information about the issuer

�

Concept

�

Shares

�

Amount

�

Data�from�last�published�financial�statements

�

Identification

�

Description

�

��Class��

�

�Unit�face�value�

�

Votes
per
�share�

�

��Number��

�

��09-30-2014��

�

��12-31-2013��

�

��Main�business��

�

Period�/�Fiscal
year end

�

��Capital��
stock

�

��Stockholders��
equity

�

Income/
(Loss)
for the
period�/
�fiscal�year�

�

FINANCIAL INSTITUTIONS, SUPPLEMENTARY AND AUTHORIZED

��

�

Controlled

�

Local

�

thousands��

of pesos��

��

�

33642192049

�

BBVA Franc�s Valores S.A.

�

Common

�

500$�

��

�

12,396��

��

�

23,640

��

�

17,960

��

�

Stockholder

�

09-30-2014

�

6,390��

��

�

24,372��

��

�

5,855��

��

30663323926

�

Consolidar Administradora de Fondos de Jubilaciones y Pensiones S.A. (undergoing liquidation proceedings)

�

Common

�

1$�

��

�

35,425,947��

��

�

5,611

��

�

8,272

��

�

Pensions fund manager

�

09-30-2014

�

65,739��

��

�

10,413��

��

�

2,670��

��

30707847367

�

PSA Finance Arg. C�a Financiera S.A.

�

Common

�

1,000$�

��

�

26,089��

��

�

241,090

��

�

164,652

��

�

Financial institution

�

09-30-2014

�

52,178��

��

�

482,180��

��

�

152,876��

��

30548590163

�

BBVA Franc�s Asset Management S.A. Sociedad Gerente de Fondos Comunes de Inversi�n

�

Common

�

1$�

��

�

230,398��

��

�

68,378

��

�

68,967

��

�

Investment Fund Manager

�

09-30-2014

�

243��

��

�

118,197��

��

�

45,601��

��

33707124909

�

Rombo C�a. Financiera S.A.

�

Common

�

1,000$�

��

�

24,000��

��

�

225,996

��

�

150,396

��

�

Financial Institution

�

09-30-2014

�

60,000��

��

�

564,991��

��

�

189,001��

��

�

Subtotal controlled

��

�

564,715

��

�

410,247

��

�

Non controlled

�

Local

�

30598910045

�

Visa Argentina S.A.

�

Common

�

1$�

��

�

1,571,996��

��

�

6,428

��

�

6,428

��

�

Services to companies

�

05-31-2014

�

15,000��

��

�

356,378��

��

�

295,046��

��

30690783521

�

Interbanking S.A.

�

Common

�

1$�

��

�

149,556��

��

�

5,111

��

�

3,571

��

�

Services

�

12-31-2013

�

1,346��

��

�

161,375��

��

�

129,239��

��

30604796357

�

Banelco S.A.

�

--,--

��

�

8,654

��

�

Information services

�

Other

�

250

��

�

257

��

�

Foreign

�

30710156561

�

Banco Lat. de Comercio Exterior S.A.

�

Common�B

�

43$�

��

�

20,221��

��

�

2,130

��

�

1,640

��

�

Banking institution

�

12-31-2013

�

1,824,910��

��

�

5,592,131��

��

�

552,420��

��

�

Subtotal noncontrolled

�

13,919

��

�

20,550

��

�

Total in financial institutions, supplementary and authorized

��

�

578,634

��

�

430,797

��

�

IN OTHER COMPANIES

�

Non controlled

�

Local

�

30500064230

�

BBVA Consolidar Seguros S.A.

�

Common

�

1$�

��

�

1,301,847

��

�

38,947

��

�

29,220

��

�

Insurance

�

09-30-2014

�

10,651��

��

�

318,714��

��

�

15,616��

��

�

Foreign

�

Other

�

106

��

�

��

�

Subtotal non controlled

�

39,053

��

�

29,302

��

�

Total in other companies

��

�

39,053

��

�

29,302

��

�

Total investments in other companies

��

�

617,687

��

�

460,099

��

�


	�	- 36 -	�

�

EXHIBIT F

MOVEMENT OF PREMISES AND EQUIPMENT AND OTHER ASSETS

FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2014

AND THE FISCAL YEAR ENDED DECEMBER 31, 2013

(Translation of financial statements originally issued in Spanish - See note 19)

- Stated in thousands of pesos -

�

Description

��

Net book
value at
�beginning�of�
fiscal year

��

��Additions��

��

�Transfers�

��

��Decreases��

��

Depreciation for
the period

��

�Net�book�value�at�
09-30-2014

��

�Net�book�value�at�
12-31-2013

��

Years of
�useful�life�

��

��Amount��

��

PREMISES AND EQUIPMENT

��

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

Real Estate

��

�

370,879

�

��

�

8,132

�

��

�

42,070��

�

��

�

33,810

�

��

�

��

�

18,541

�

��

�

368,730

�

��

�

370,879

�

Furniture and Facilities

��

�

208,917

�

��

�

114,983

�

��

�

1,239��

�

��

�

��

�

��

�

25,734

�

��

�

299,397

�

��

�

208,917

�

Machinery and Equipment

��

�

119,477

�

��

�

30,742

�

��

�

35,535��

�

��

�

--,--

�

��

�

3�&�5

�

��

�

52,060

�

��

�

133,694

�

��

�

119,477

�

Automobiles

��

�

5,133

�

��

�

1,205

�

��

�

--,--

�

��

�

��

�

��

�

1,182

�

��

�

5,142

�

��

�

5,133

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

Total

��

�

704,406

�

��

�

155,062

�

��

�

78,844��

�

��

�

33,832

�

��

�

��

�

97,517

�

��

�

806,963

�

��

�

704,406

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

OTHER ASSETS

��

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

Construction in progress

��

�

80,662

�

��

�

98,001

�

��

�

(43,324)��

��

�

29,523

�

��

�

--,--

�

��

�

--,--

�

��

�

105,816

�

��

�

80,662

�

Advances to suppliers of goods

��

�

486,010

�

��

�

407,981

�

��

�

--,--��

�

��

�

51,278

�

��

�

--,--

�

��

�

--,--

�

��

�

842,713

�

��

�

486,010

�

Works of Art

��

�

992

�

��

�

--,--

�

��

�

--,--��

�

��

�

--,--

�

��

�

--,--

�

��

�

--,--

�

��

�

992

�

��

�

992

�

Leased assets

��

�

2,294

�

��

�

--,--

�

��

�

--,--��

�

��

�

--,--

�

��

�

��

�

��

�

2,259

�

��

�

2,294

�

Property taken as security for loans

��

�

2,423

�

��

�

617

�

��

�

--,--��

�

��

�

468

�

��

�

��

�

��

�

2,501

�

��

�

2,423

�

Stationery and office supplies

��

�

7,844

�

��

�

25,271

�

��

�

--,--��

�

��

�

13,994

�

��

�

--,--

�

��

�

--,--

�

��

�

19,121

�

��

�

7,844

�

Other

��

�

66,477

�

��

�

25,359

�

��

�

(35,520)��

��

�

--,--

�

��

�

��

�

143

�

��

�

56,173

�

��

�

66,477

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

Total

��

�

646,702

�

��

�

557,229

�

��

�

(78,844)��

��

�

95,263

�

��

�

��

�

249

�

��

�

1,029,575

�

��

�

646,702

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�


	�	- 37 -	�

�

EXHIBIT G

MOVEMENT OF INTANGIBLE ASSETS

FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2014

AND THE FISCAL YEAR ENDED DECEMBER 31, 2013

(Translation of financial statements originally issued in Spanish - See note 19)

- Stated in thousands of pesos -

�

Description

��

Net�book
value at
beginning�of
fiscal year

��

Additions��

��

��Amortization�for�the��
period

��

�

��

�

��

Years of

useful�life

��

��Amount��

��

Net�book�value��

at�09-30-2014��

��

�Net�book�value�
at 12-31-2013

Organization and development expenses (1)

��

�

120,637

�

��

�

65,203

�

��

�

1�&�5

�

��

�

42,881

�

��

�

142,959

�

��

�

120,637

�

Organization and development non-deductible expenses

��

�

--,--

�

��

�

11,139

�

��

�

--,--

�

��

�

11,139

�

��

�

--,--

�

��

�

--,--

�

��

�

��

�

��

�

��

�

��

�

��

�

Total

�

��

�

120,637

�

��

�

76,342

�

��

�

��

�

��

�

54,020

�

��

�

142,959

�

��

�

120,637

�

��

�

��

�

��

�

��

�

��

�

��

�

(1) This caption mainly includes costs from information technology projects and leasehold improvements.


	�	- 38 -	�

�

EXHIBIT H

CONCENTRATION OF DEPOSITS

AS OF SEPTEMBER 30, 2014 AND DECEMBER 31, 2013

(Translation of financial statements originally issued in Spanish - See note 19)

- Stated in thousands of pesos -

�

��

09-30-2014

��

12-31-2013

Number of clients

��

��Outstanding��
balance

��

��%�of�total��
portfolio

��

��Outstanding��
balance

��

��%�of�total��
portfolio

10 largest clients

��

�

6,562,805

�

��

�

13.22%

��

�

4,549,211

�

��

�

10.39%

��

50 next largest clients

��

�

4,826,916

�

��

�

9.72%

��

�

5,081,876

�

��

�

11.61%

��

100 following clients

��

�

2,937,406

�

��

�

5.92%

��

�

3,051,769

�

��

�

6.97%

��

Remaining clients

��

�

35,316,070

�

��

�

71.14%

�

��

�

��

�

31,091,918

�

��

�

71.03%

�

��

�

��

�

��

�

��

�

��

�

TOTAL

�

��

�

49,643,197

�

��

�

100.00%

�

��

�

��

�

43,774,774

�

��

�

100.00%

�

��

�

��

�

��

�

��

�

��

�


	�	- 39 -	�

�

EXHIBIT I

BREAKDOWN OF MATURITY TERMS OF DEPOSITS AND

OTHER LIABILITIES FROM FINANCIAL TRANSACTIONS

AS OF SEPTEMBER 30, 2014

(Translation of financial statements originally issued in Spanish - See note 19)

- Stated in thousands of pesos -

�

��

Terms remaining to maturity

��

�

Description

��

1�month

��

3�months

��

6�months

��

12�months

��

24�months

��

More�than
24 months

��

Total

Deposits

�

��

�

44,909,698

�

��

�

4,035,975

�

��

�

590,106

�

��

�

106,611

�

��

�

807

�

��

�

--,--

�

��

�

49,643,197

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

Other liabilities from financial transactions

��

�

��

�

��

�

��

�

��

�

��

�

��

�

Argentine Central Bank

��

�

4,210

�

��

�

3,942

�

��

�

6,067

�

��

�

12,154

�

��

�

25,454

�

��

�

26,448

�

��

�

78,275

�

Banks and International Institutions

��

�

274,724

�

��

�

222,995

�

��

�

--,--

�

��

�

--,--

�

��

�

--,--

�

��

�

--,--

�

��

�

497,719

�

Unsubordinated corporate bonds

��

�

30,206

�

��

�

27,592

�

��

�

250,000

�

��

�

380,237

�

��

�

233,750

�

��

�

561,016

�

��

�

1,482,801

�

Other

�

��

�

3,559,555

�

��

�

2,481

�

��

�

4,370

�

��

�

7,592

�

��

�

14,517

�

��

�

13,528

�

��

�

3,602,043

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

Total

��

�

3,868,695

�

��

�

257,010

�

��

�

260,437

�

��

�

399,983

�

��

�

273,721

�

��

�

600,992

�

��

�

5,660,838

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

TOTAL

�

��

�

48,778,393

�

��

�

��4,292,985

�

��

�

��850,543

�

��

�

��506,594

�

��

�

��274,528

�

��

�

600,992

�

��

�

55,304,035

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�


	�	- 40 -	�

�

EXHIBIT J

MOVEMENT OF ALLOWANCES

FOR NINE MONTH PERIOD ENDED SEPTEMBER 30, 2014 AND

THE FISCAL YEAR ENDED DECEMBER 31, 2013

(Translation of financial statements originally issued in Spanish - See note 19)

- Stated in thousands of pesos -

�

Decreases

�

Book value

�

Description

�

Book�value�at
�beginning�of�fiscal�
year

�

Increases

(5)

�

��Reversals��

�

��Applications��

�

��09-30-2014��

�

��12-31-2013��

�

DEDUCTED FROM ASSETS

�

Government securities

�

��For impairment value

�

196

�

��

�

(4)

��

�

--,--

��

�

--,--

�

204

��

�

196

��

Loans

�

��Allowance for doubtful loans

�

680,651

�

417,700

��

�

(1)

��

�

--,--

��

�

258,639

�

839,712

��

�

680,651

��

Other receivables from financial transactions

�

��Allowance for doubtful receivables and impairment

�

1,209

�

366

��

�

(1)

��

�

--,--

��

�

--,--

�

1,575

��

�

1,209

��

Receivables from financial leases

�

��Allowance for doubtful receivables and impairment

�

21,186

�

9,303

��

�

(1)

��

�

--,--

��

�

5,171

�

25,318

��

�

21,186

��

Other receivables

�

��Allowance for doubtful receivables�(2)

�

277,334

�

35,110

��

�

2,604

��

�

163

�

309,677

��

�

277,334

��

�

Total

�

980,576

�

462,487

��

�

2,604

��

�

263,973

�

1,176,486

��

�

980,576

��

�

LIABILITIES-ALLOWANCES

�

��Contingents commitments (1)

�

539

�

��

�

--,--

��

�

--,--

�

573

��

�

539

��

��Other contingencies

�

622,165

�

125,152

��

�

(3)

��

�

5,138

��

�

49,933

�

692,246

��

�

622,165

��

�

Total

�

622,704

�

125,186

��

�

5,138

��

�

49,933

�

692,819

��

�

622,704

��

�

(1)	Recorded in compliance with the provisions of Communication �A� 3918, as supplemented, of the BCRA, taking into account note 2.3.f).

(2)	Includes mainly the potential loan loss risk arising from the amounts booked as Miscellaneous receivables relating to the petitions for the protection of constitutional rights (Amparos) paid and the deferred tax asset (See note 4.1).

(3)	Recorded to cover possible contingencies that were not considered in other accounts (court orders corresponding to petitions for protection of civil rights, labor, commercial and other lawsuits). (See note 2.3.q).

(4)	Recorded in compliance with the provisions of Communication �A� 4084 of the BCRA.

(5)	Includes exchange differences generated as allowances in foreign currency, booked in the �Financial income - Gold and foreign currency exchange difference� account, as follow:


�	��	Government Securities	��	�	8	��
�	��	Loans	��	�	4,551	��
�	��	Other receivables from financial transaction	��	�	4��	��
�	��	Other receivables	��	�	3,170	��


	�	- 41 -	�

�

EXHIBIT K

CAPITAL STRUCTURE AS OF SEPTEMBER 30, 2014

(Translation of financial statements originally issued in Spanish - See note 19)

- Stated in thousands of pesos -

�

SHARES

��

CAPITAL STOCK

�

��

�

Class

��

Quantity

�

��

Votes�per
share

��

Issued

�

��

�

Pending

issuance or

�

Paid in

�

��

�

��

Outstanding

�

��

In�portfolio

�

��

distribution

�

��

Common

��

�

536,877,850��

��

�

536,833��

��

�

--,--��

��

�

45��

��

�

)�

�

536,878��

��

�

)�

(1)��Shares issued and available to stockholders but not as yet withdrawn.

(2)��Fully registered with the Public Registry of Commerce (See note 1.2.).


	�	- 42 -	�

�

EXHIBIT L

FOREIGN CURRENCY BALANCES AS OF

SEPTEMBER 30, 2014 AND DECEMBER 31, 2013

(Translation of financial statements originally issued in Spanish - See note 19)

-Stated in thousands of pesos-

�

Accounts

��

�

��

09-30-2014

��

12-31-2013

�

��

�

��

�

��

�

��

�

��

Total of the period (per type of currency)

��

�

��

�

��

�

��

Total of
the period

��

Euro

��

US�Dollars

��

Pounds
Sterling

��

Swiss
Franc

��

Yen

��

Other

��

Total�of�the
fiscal year

ASSETS

��

Cash and due from banks

��

5,362,225

��

236,133

��

5,106,243

��

3,995

��

706

��

397

��

14,751

��

5,912,615

Government and private securities

��

252,432

��

--,--��

��

252,392

��

--,--

��

--,--

��

--,--

��

871,680

Loans

��

2,819,889

��

--,--

��

2,819,889

��

--,--

��

--,--

��

--,--

��

--,--

��

1,134,400

Other receivables from financial transactions

��

389,693

��

389,681

��

--,--

��

--,--

��

--,--

��

--,--��

��

100,620

Receivables from financial leases

��

--,--

��

--,--��

��

--,--

��

--,--

��

--,--

��

--,--

��

--,--

��

Investments in other companies

��

2,236

��

106

��

2,130

��

--,--

��

--,--

��

--,--

��

--,--

��

1,722

Other receivables

��

141,915

��

13,415

��

128,500

��

--,--

��

--,--

��

--,--

��

--,--

��

135,361

Suspense items

��

450

��

--,--

��

450

��

--,--

��

--,--

��

--,--

��

--,--

��

562

��

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

TOTAL

��

8,968,840

��

249,666

��

8,699,285

��

��3,995

��

��706

��

��397

��

��14,791

��

8,157,021

��

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

LIABILITIES

��

Deposits

��

5,105,827

��

81,247

��

5,024,580

��

--,--

��

--,--

��

--,--

��

--,--

��

4,720,888

Other liabilities from financial transactions

��

1,966,393

��

120,794

��

1,840,845

��

2,031

��

136

��

2,488

��

816,105

Other liabilities

��

149,104

��

6,456

��

142,648

��

--,--

��

--,--

��

--,--

��

--,--

��

118,440

Suspense items

��

1,042

��

--,--

��

1,042

��

--,--

��

--,--

��

--,--

��

--,--

��

571

��

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

TOTAL

��

7,222,366

��

208,497

��

7,009,115

��

2,031

��

136

��

2,488

��

5,656,004

��

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

MEMORANDUM ACCOUNTS

��

Debit accounts (except contra debit accounts)

��

Contingent

��

2,606,836

��

139,661

��

2,467,175

��

--,--

��

--,--

��

--,--

��

--,--

��

1,873,226

Control

��

39,684,033

��

243,119

��

39,438,663

��

--,--

��

--,--

��

954

��

1,297

��

95,729,619

��

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

TOTAL

��

42,290,869

��

382,780

��

41,905,838

��

--,--

��

--,--

��

954

��

1,297

��

97,602,845

��

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

Credit accounts (except contra credit accounts)

��

Contingent

��

508,918

��

82,995

��

421,873

��

--,--

��

--,--

��

4,050

��

--,--

��

620,570

Control

��

42,001��

��

747

��

41,254

��

--,--

��

--,--

��

--,--

��

--,--

��

268,945��

��

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�

TOTAL

��

550,919

��

83,742

��

463,127

��

--,--

��

--,--

��

��4,050

��

--,--

��

889,515

��

�

��

�

��

�

��

�

��

�

��

�

��

�

��

�


	�	- 43 -	�

�

EXHIBIT N

ASSISTANCE TO RELATED CLIENTS AND AFFILIATES

AS OF SEPTEMBER 30, 2014 AND DECEMBER 31, 2013

(Translation of financial statements originally issued in Spanish - See note 19)

- Stated in thousands of pesos -

�

Status

�

Concept

�

Normal

�

With�special
follow-up�/
Low�risk

�

With�problems�/
Medium�risk

�

With�high�risk�of
uncollectibility�/�High
risk

�

Uncollectible

�

Classified
uncollectible
as�such
under
regulatory
requirements

�

Total (1)

�

Not�yet
matured

�

Past-due

�

Not�yet
matured

�

Past-due

�

09-30-2014

�

12-31-2013

�

1.��Loans

�

1,935,657

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

1,935,657��

��

�

2,109,132

��

- ��Overdraft

�

6,883

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

6,883

��

�

151

��

Without senior security or counter guaranty

�

6,883

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

6,883

��

�

151

��

- ��Discounted Instruments

�

2,602

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

2,602

��

�

--,--

��

Without senior security or counter guaranty

�

2,602

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

2,602

��

�

--,--

��

- ��Real Estate Mortgage and Collateral Loans

�

2,413

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

2,413

��

�

2,488

��

Other collaterals and counter guaranty �B�

�

2,413

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

2,413

��

�

2,488

��

- ��Consumer

�

4,287

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

4,287

��

�

3,504

��

Without senior security or counter guaranty

�

4,287

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

4,287

��

�

3,504

��

- ��Credit Cards

�

4,062

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

4,062

��

�

3,906

��

Without senior security or counter guaranty

�

4,062

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

4,062

��

�

3,906

��

- ��Other

�

1,915,410

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

1,915,410��

��

�

2,099,083

��

�Without senior security or counter guaranty

�

1,915,410

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

1,915,410��

��

�

2,099,083

��

2.��Other receivables from financial transactions

�

38,543

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

38,543��

��

�

37,835

��

3.��Receivables from financial leases and other

�

372

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

372

��

�

171

��

4.��Contingent commitments

�

60,996

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

60,996��

��

�

109,297

��

5.��Investments in other companies and private securities

�

571,401

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

571,401��

��

�

442,054

��

�

Total

�

2,606,969

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

2,606,969��

��

�

2,698,489

��

�

Total Allowances

�

19,397

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

--,--

��

�

19,397��

��

�

20,878

��

�

(1) Maximum amount granted to related clients during September 2014 and December 2013, respectively, according to BCRA rules.


	�	- 44 -	�

�

EXHIBIT O

�

FINANCIAL DERIVATIVES INSTRUMENTS

AS OF SEPTEMBER 30, 2014

(Translation of financial statements originally issued in Spanish - See note 19)

- Stated in thousands of pesos -

�

Type of

contract

��

Purpose of
transactions

��

Underlying
asset

��

Type�of�Settlement

��

Traded�at�/�Counterparty

��

Weighted
average�term�as
originally
agreed

(months)

��

Weighted
average
residual
term

(months)

��

Weighted
average�term
for
difference
settlements

(days)

��

Amount

�

Swaps

��

Financial
transactions��own
account

��

Upon expiration of
differences

��

Residents�in�Argentina��

Financial sector

��

�

1,132,103��

��

Swaps

��

Interest rate hedge

��

Upon expiration of
differences

��

Residentes�in�Argentina��

Non�-�financial sector

��

122

��

�

38,102��

��

Futures

��

Financial
transactions��own
account

��

Foreign
currency

��

Upon expiration of
differences

��

MAE

��

�

7,454,354��

��

Futures

��

Financial
transactions��own
account

��

Foreign
currency

��

Upon expiration of
differences

��

ROFEX

��

�

886,220��

��

Repo

transactions

��

Financial
transactions��own
account

��

Federal

Government

Bonds

��

Upon expiration of
differences

��

Residents�in�Argentina��

Financial sector

��

�

134,502��

��

Repo

transactions

��

Financial
transactions��own
account

��

Other

��

Upon�expiration�of
differences

��

Residents in Argentina �

Financial sector

��

�

1,760,610��

��

�

TOTAL

��

�

11,405,891��

��

�


	�	- 45 -	�

�

CONSOLIDATED BALANCE SHEETS AS OF

SEPTEMBER 30, 2014 AND DECEMBER 31, 2013

(Art. 33 of Law No.�19,550)

(Translation of financial statements originally issued in Spanish - See note 19 to the stand-alone Financial Statements)

-Stated in thousands of pesos-

�

ASSETS:

��

09-30-2014

�

��

12-31-2013

�

A. CASH AND DUE FROM BANKS:

��

�

��

�

�Cash

��

�

2,320,900

��

�

2,063,205

��

�Due from banks and correspondents

��

�

10,218,539

��

�

10,818,576

��

�

��

�

Argentine Central Bank (BCRA)

��

�

9,863,256

��

�

10,576,744

��

Other local

��

�

2,522

��

�

2,846

��

Foreign

��

�

352,761

��

�

238,986

��

�

��

�

��

�

12,539,439

��

�

12,881,781

��

�

��

�

B. GOVERNMENT AND PRIVATE SECURITIES (Note 7.a):

��

�

��

�

Holdings booked at fair value

��

�

2,563,512

��

�

1,982,431

��

Holdings booked at amortized cost

��

�

164

��

�

164

��

Instruments issued by the BCRA

��

�

7,031,106

��

�

1,408,487

��

Investments in listed private securities

��

�

64,504

��

�

69,049

��

Less: Allowances

��

�

204

��

�

196

��

�

��

�

��

�

9,659,082

��

�

3,459,935

��

�

��

�

C. LOANS:

��

�

��

�

To government sector (Exhibit 1)

��

�

51,945

��

�

40,915

��

To financial sector (Exhibit 1)

��

�

1,169,624

��

�

1,871,093

��

�

��

�

Interfinancial � (Call granted)

��

�

60,000

��

�

313,500

��

Other financing to local financial institutions

��

�

892,622

��

�

1,328,346

��

Interest and listed-price differences accrued and pending collection

��

�

217,002

��

�

229,247

��

To non financial private sector and residents abroad (Exhibit 1)

��

�

��40,219,570

��

�

��35,278,648

��

�

��

�

Overdraft

��

�

7,311,296

��

�

6,552,258

��

Discounted instruments

��

�

6,303,691

��

�

5,476,961

��

Real estate mortgage

��

�

1,387,004

��

�

1,243,900

��

Collateral Loans

��

�

3,641,853

��

�

3,479,820

��

Consumer

��

�

5,977,116

��

�

5,998,744

��

Credit cards

��

�

9,383,445

��

�

7,429,187

��

Other

��

�

5,708,632

��

�

4,647,736

��

Interest and listed-price differences accrued and pending collection

��

�

637,706

��

�

582,255

��

Less: Interest documented together with main obligation

��

�

131,173

��

�

132,213

��

Less: Allowances

��

�

876,623

��

�

722,462

��

�

��

�

��

�

40,564,516

��

�

36,468,194

��

�

��

�

D. OTHER RECEIVABLES FROM FINANCIAL TRANSACTIONS:

��

�

��

�

Argentine Central Bank (BCRA)

��

�

452,910

��

�

624,368

��

Amounts receivable for spot and forward sales to be settled

��

�

3,805,054

��

�

260,046

��

Instruments to be received for spot and forward purchases to be settled

��

�

1,965,684

��

�

72,567

��

Unlisted corporate bonds (Exhibit 1)

��

�

40,397

��

�

3,401

��

Non-deliverable forward transactions balances to be settled

��

�

88,648

��

�

6,744

��

Other receivables not covered by debtor classification regulations

��

�

1,454

��

�

4,135

��

Other receivables covered by debtor classification regulations (Exhibit 1)

��

�

284,482

��

�

202,274

��

Less: Allowances

��

�

5,589

��

�

5,044

��

�

��

�

��

�

6,633,040

��

�

1,168,491

��

�

��

�

E. RECEIVABLES FROM FINANCIAL LEASES:

��

�

��

�

Receivables from financial leases (Exhibit 1)

��

�

1,995,083

��

�

1,778,235

��

Interest accrued pending collection (Exhibit 1)

��

�

27,371

��

�

22,040

��

Less: Allowances

��

�

26,573

��

�

22,497

��

�

��

�

��

�

1,995,881

��

�

1,777,778

��

�

��

�

F. INVESTMENTS IN OTHER COMPANIES:

��

�

��

�

In financial institutions

��

�

228,126

��

�

152,036

��

Other (Note 7.b)

��

�

61,320

��

�

58,621

��

�

��

�

��

�

289,446

��

�

210,657

��

�

��

�

G. OTHER RECEIVABLES:

��

�

��

�

Other (Note 7.c)

��

�

1,583,501

��

�

1,359,404

��

Other interest accrued and pending collection

��

�

658

��

�

3,478

��

Less: Allowances

��

�

345,511

��

�

297,585

��

�

��

�

��

�

1,238,648

��

�

1,065,297

��

�

��

�

H. PREMISES AND EQUIPMENT:

��

�

812,537

��

�

704,995

��

�

��

�

I. OTHER ASSETS:

��

�

1,063,345

��

�

659,997

��

�

��

�

J. INTANGIBLE ASSETS:

��

�

��

�

Organization and development expenses

��

�

143,124

��

�

120,755

��

�

��

�

��

�

143,124

��

�

120,755

��

�

��

�

K. SUSPENSE ITEMS:

��

�

7,764

��

�

5,294

��

�

��

�

L. OTHER SUBSIDIARIES� ASSETS (Note 7.d):

��

�

450

��

�

450

��

�

��

�

TOTAL ASSETS:

��

�

74,947,272

��

�

58,523,624

��

�

��

�


	�	- 46 -	�

�

(Contd.)

�

CONSOLIDATED BALANCE SHEETS AS OF

SEPTEMBER 30, 2014 AND DECEMBER 31, 2013

(Art. 33 of Law No.�19,550)

(Translation of financial statements originally issued in Spanish - See note 19 to the stand-alone Financial Statements)

-Stated in thousands of pesos-

LIABILITIES:

��

09-30-2014

�

��

12-31-2013

�

M. DEPOSITS:

��

�

��

�

Government sector

��

�

3,835,304

��

�

2,780,304

��

Financial sector

��

�

32,224

��

�

45,961

��

Non financial private sector and residents abroad

�

��

�

45,869,065

��

�

40,933,200

��

�

��

�

Checking accounts

��

�

13,146,444

��

�

9,947,241

��

Savings deposits

��

�

12,624,616

��

�

11,902,472

��

Time deposits

��

�

18,791,556

��

�

17,910,820

��

Investments accounts

��

�

677

��

�

4,027

��

Other

��

�

984,806

��

�

916,985

��

Interest and listed-price differences accrued payable

�

��

�

320,966

��

�

251,655

��

�

��

�

��

�

49,736,593

��

�

43,759,465

��

�

��

�

N. OTHER LIABILITIES FROM FINANCIAL TRANSACTIONS:

��

�

��

�

Argentine Central Bank

�

��

�

78,275

��

�

93,746

��

�

��

�

Other

��

�

78,275

��

�

93,746

��

Banks and International Institutions

��

�

492,815

��

�

106,178

��

Unsubordinated corporate bonds

��

�

1,761,479

��

�

1,190,761

��

Amounts payable for spot and forward purchases to be settled

��

�

1,966,265

��

�

63,298

��

Instruments to be delivered for spot and forward sales to be settled

��

�

3,830,247

��

�

273,672

��

Financing received from Argentine financial institutions

�

��

�

261,811

��

�

426,238

��

�

��

�

Interfinancial (call borrowed)

��

�

102,800

��

�

--,--

��

Other financings from local financial institutions

��

�

158,967

��

�

426,238

��

Interest accrued payable

��

�

��

�

--,--

��

Non-deliverable forward transactions balances to be settled

��

�

573

��

�

47,245

��

Other (Note 7.e)

��

�

3,743,360

��

�

2,648,545

��

Interest and listed�price differences accrued payable

�

��

�

99,056

��

�

93,577

��

�

��

�

��

�

12,233,881

��

�

4,943,260

��

�

��

�

O. OTHER LIABILITIES:

��

�

��

�

Fees payable

��

�

149

��

�

189

��

Other (Note 7.f)

�

��

�

2,422,591

��

�

1,752,778

��

�

��

�

��

�

2,422,740

��

�

1,752,967

��

�

��

�

P. ALLOWANCES:

�

��

�

755,887

��

�

709,343

��

�

��

�

Q. SUSPENSE ITEMS:

�

��

�

33,513

��

�

29,677

��

�

��

�

R. OTHER SUBSIDIARIES� LIABILITIES (Note 7.g):

�

��

�

337

��

�

337

��

�

��

�

TOTAL LIABILITIES:

�

��

�

65,182,951

��

�

51,195,049

��

�

��

�

S. MINORITY INTEREST IN SUBSIDIARIES (Note 4):

�

��

�

246,802

��

�

172,395

��

�

��

�

STOCKHOLDERS� EQUITY:

�

��

�

9,517,519

��

�

7,156,180

��

�

��

�

TOTAL LIABILITIES AND STOCKHOLDERS� EQUITY:

�

��

�

74,947,272

��

�

58,523,624

��

�

��

�


	�	- 47 -	�

�

MEMORANDUM ACCOUNTS

(Translation of financial statements originally issued in Spanish - See note 19 to the stand-alone Financial Statements)

- Stated in thousands of pesos -

�

��

09-30-2014

�

��

12-31-2013

�

DEBIT ACCOUNTS

��

�

��

�

Contingent

��

�

��

�

� ��Guaranties received

��

�

13,456,632

��

�

12,125,408

��

� ��Contra contingent debit accounts

��

�

1,483,744

��

�

1,290,370

��

�

��

�

��

�

14,940,376

��

�

13,415,778

��

�

��

�

Control

��

�

��

�

� ��Receivables classified as irrecoverable

��

�

572,490

��

�

432,256

��

� ��Other (Note 7.h)

��

�

131,640,900

��

�

153,384,808

��

� ��Contra control debit accounts

��

�

1,217,774

��

�

1,544,001

��

�

��

�

��

�

133,431,164

��

�

155,361,065

��

�

��

�

Derivatives

��

�

��

�

� ��Notional� amount of non-deliverable forward transactions

��

�

4,387,582

��

�

5,414,377

��

� ��Interest rate swap

��

�

1,058,986

��

�

1,367,098

��

� ��Contra debit derivatives accounts

��

�

3,952,992

��

�

1,871,743

��

�

��

�

��

�

9,399,560

��

�

8,653,218

��

�

��

�

For trustee activities

��

�

��

�

� ��Funds in trust

��

�

6,605��

��

�

6,582��

��

�

��

�

��

�

6,605

��

�

6,582

��

�

��

�

TOTAL

��

�

157,777,705

��

�

177,436,643

��

�

��

�

CREDIT ACCOUNTS

��

�

��

�

Contingent

��

�

��

�

� ��Credit lines granted (unused portion) covered by debtor classification regulations (Exhibit 1)

��

�

514,182

��

�

453,478

��

� ��Guaranties provided to the BCRA

��

�

198,013

��

�

191,303

��

� ��Other guaranties given covered by debtor classification regulations (Exhibit 1)

��

�

325,859

��

�

287,575

��

� ��Other guaranties given non covered by debtor classification regulations

��

�

198,541

��

�

158,783

��

� ��Other covered by debtor classification regulations (Exhibit 1)

��

�

247,149

��

�

199,231

��

� ��Contra contingent credit accounts

��

�

13,456,632

��

�

12,125,408

��

�

��

�

��

�

14,940,376��

��

�

13,415,778��

��

�

��

�

Control

��

�

��

�

� ��Items to be credited

��

�

1,007,989

��

�

1,186,195

��

� ��Other

��

�

209,785

��

�

357,806

��

� ��Contra control credit accounts

��

�

132,213,390

��

�

153,817,064

��

�

��

�

��

�

133,431,164

��

�

155,361,065

��

�

��

�

Derivatives

��

�

��

�

� ��Notional� amount of non-deliverable forward transactions

��

�

3,952,992

��

�

1,871,743

��

� ��Contra credit derivatives accounts

��

�

5,446,568

��

�

6,781,475

��

�

��

�

��

�

9,399,560

��

�

8,653,218

��

�

��

�

For trustee activities

��

�

��

�

� ��Contra credit accounts for trustee activities

��

�

6,605

��

�

6,582

��

�

��

�

��

�

6,605

��

�

6,582

��

�

��

�

TOTAL

��

�

157,777,705

��

�

177,436,643

��

�

��

�

The accompanying notes 1 through to 7 to the consolidated financial statements with subsidiaries and the Exhibit 1 are an integral part of these statements, which in turn are part of the stand-alone Financial Statements of BBVA Banco Franc�s S.A. and are to be read in conjunction therewith.


	�	- 48 -	�

�

CONSOLIDATED STATEMENTS OF INCOME

FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2014 AND 2013

(Art. 33 of Law No.�19,550)

(Translation of financial statements originally issued in Spanish - See note 19 to the stand-alone Financial Statements)

- Stated in thousands of pesos -

�

��

09-30-2014

�

��

09-30-2013

�

A. FINANCIAL INCOME

��

�

��

�

Interest on cash and due from banks

��

�

--,--

��

�

��

Interest on loans to the financial sector

��

�

274,681

��

�

225,629

��

Interest on overdraft

��

�

1,541,444

��

�

882,149

��

Interest on discounted instruments

��

�

900,901

��

�

537,418

��

Interest on real estate mortgage

��

�

170,660��

��

�

115,432��

��

Interest on collateral loans

��

�

589,638��

��

�

426,140��

��

Interest on credit card loans

��

�

1,369,713

��

�

674,299

��

Interest on other loans

��

�

2,023,070

��

�

1,577,757

��

Interest from other receivables from financial transactions

��

�

3,795

��

�

29,425

��

Interest on financial leases

��

�

245,513

��

�

168,837

��

Income from secured loans - Decree 1387/01

��

�

12,727

��

�

6,553

��

Net income from government and private securities

��

�

1,167,292

��

�

322,483

��

Indexation by CER

��

�

252,211

��

�

100,130

��

Gold and foreign currency exchange difference

��

�

760,205

��

�

273,949

��

Other

��

�

592,452

��

�

255,875

��

�

��

�

��

�

9,904,302

��

�

5,596,130

��

�

��

�

B. FINANCIAL EXPENSE

��

�

��

�

Interest on savings deposits

��

�

14,104

��

�

10,536

��

Interest on time deposits

��

�

3,178,676

��

�

1,606,592

��

Interest on interfinancial financing (call borrowed)

��

�

14,537

��

�

4,898

��

Interest on other financing from financial institutions

��

�

59,950

��

�

69,865

��

Interest on other liabilities from financial transactions

��

�

326,978

��

�

106,801

��

Other interest

��

�

6,296

��

�

4,877

��

Indexation by CER

��

�

142

��

�

��

Contribution to the deposit guaranty fund

��

�

58,885

��

�

45,783

��

Other

��

�

606,080

��

�

355,862

��

�

��

�

��

�

4,265,648

��

�

2,205,293

��

�

��

�

GROSS INTERMEDIATION MARGIN � GAIN

��

�

5,638,654

��

�

3,390,837

��

�

��

�

C. ALLOWANCES FOR LOAN LOSSES

��

�

422,340

��

�

311,521

��

�

��

�

D. SERVICE CHARGE INCOME

��

�

��

�

Related to lending transactions

��

�

1,450,471

��

�

1,039,483

��

Related to liability transactions

��

�

1,087,394

��

�

827,347

��

Other commissions

��

�

136,975

��

�

89,015

��

Other (Note 7.i)

��

�

666,704

��

�

543,704

��

�

��

�

��

�

3,341,544

��

�

2,499,549

��

�

��

�

E. SERVICE CHARGE EXPENSE

��

�

��

�

Commissions

��

�

580,084

��

�

433,450

��

Other (Note 7.j)

��

�

330,887

��

�

235,029

��

�

��

�

��

�

910,971��

��

�

668,479��

��

�

��

�


	�	- 49 -	�

�

(Contd.)

�

CONSOLIDATED STATEMENTS OF INCOME

FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2014 AND 2013

(Art. 33 of Law No.�19,550)

(Translation of financial statements originally issued in Spanish - See note 19 to the stand-alone Financial Statements)

- Stated in thousands of pesos -

�

��

09-30-2014

�

��

09-30-2013

�

F. ADMINISTRATIVE EXPENSES

��

�

��

�

Payroll expenses

��

�

2,404,697

��

�

1,643,760

��

Fees to Bank Directors and Supervisory Committee

��

�

3,911

��

�

2,968

��

Other professional fees

��

�

48,342

��

�

44,581

��

Advertising and publicity

��

�

164,639

��

�

136,252

��

Taxes

��

�

353,862

��

�

244,763

��

Fixed assets depreciation

��

�

97,620

��

�

72,887

��

Organizational expenses amortization

��

�

42,911

��

�

35,822

��

Other operating expenses

��

�

563,958

��

�

409,448

��

Other

��

�

448,917

��

�

314,229

��

�

��

�

��

�

4,128,857��

��

�

2,904,710��

��

�

��

�

NET GAIN FROM FINANCIAL TRANSACTIONS

��

�

3,518,030

��

�

2,005,676

��

�

��

�

RESULTS OF MINORITY INTEREST IN SUBSIDIARIES

��

�

(74,407)��

��

�

(38,343)��

��

�

��

�

G. OTHER INCOME

��

�

��

�

Income from long-term investments

��

�

159,724

��

�

79,791

��

Punitive interests

��

�

20,389

��

�

11,017

��

Loans recovered and reversals of allowances

��

�

103,261

��

�

71,535

��

Other (Note 7.k)

��

�

145,883

��

�

237,465

��

�

��

�

��

�

429,257

��

�

399,808

��

�

��

�

H. OTHER EXPENSE

��

�

��

�

Punitive interests and charges paid to BCRA

��

�

��

�

��

Charge for uncollectibility of other receivables and other allowances

��

�

159,441

��

�

290,668

��

Amortization of difference arising from judicial resolutions

��

�

11,139

��

�

20,970

��

Depreciation and losses from miscellaneous assets

��

�

549

��

�

229

��

Other (Note 7.l)

��

�

61,968

��

�

46,653

��

�

��

�

��

�

233,112��

��

�

358,539��

��

�

��

�

NET GAIN BEFORE INCOME TAX AND TAX ON MINIMUM PRESUMED INCOME

��

�

3,639,768

��

�

2,008,602

��

�

��

�

I. INCOME TAX AND TAX ON MINIMUM PRESUMED INCOME

��

�

1,249,629

��

�

848,289

��

�

��

�

NET INCOME FOR THE PERIOD

��

�

2,390,139

��

�

1,160,313

��

�

��

�

The accompanying notes 1 through 7 to the consolidated financial statements with subsidiaries and the Exhibit 1 are an integral part of these statements, which in turn are part of the stand-alone Financial Statements of BBVA Banco Franc�s S.A. and are to be read in conjunction therewith.


	�	- 50 -	�

�

CONSOLIDATED STATEMENTS OF CASH AND CASH EQUIVALENTS FLOW

FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2014 AND 2013

(ART. 33 OF LAW No.�19,550)

(Translation of financial statements originally issued in Spanish - See note 19 to the stand-alone Financial Statements)

-Stated in thousands of pesos-

�

09-30-2014

�

09-30-2013

�

CHANGES IN CASH AND CASH EQUIVALENTS

�

Cash and cash equivalents at the beginning of the fiscal year

�

13,603,620

��

�

(1)

�

9,048,450��

��

�

(1)

��

Cash and cash equivalents at the end of the period

�

13,314,787

��

�

(1)

�

8,404,135��

��

�

(1)

��

�

Net decrease in cash and cash equivalents

�

(288,833)

��

�

(644,315)

��

�

REASONS FOR CHANGES IN CASH AND CASH EQUIVALENTS

�

Operating activities

�

Net collections/ (payments) from:

�

-�Government and private securities

�

(4,601,567)

��

�

(1,331,632)

��

�

-�Loans

�

3,837,553

��

�

(176,923)

��

�

��to financial sector

�

312,224

��

�

(84,645)

��

�

��to non-financial public sector

�

(414)

��

�

(40,059)

��

�

��to non-financial private sector and residents abroad

�

3,525,743

��

�

(52,519)

��

�

-�Other receivables from financial transactions

�

6,002

��

�

7,045

��

�

-�Receivables from financial leases

�

(218,103)

��

�

(446,007)

��

�

-�Deposits

�

2,043,846

��

�

3,331,510

��

�

��to financial sector

�

(13,737)

��

�

(1,861)

��

�

��to non-financial public sector

�

1,060,741

��

�

280,454

��

�

��to non-financial private sector and residents abroad

�

996,842

��

�

3,052,917

��

�

-�Other liabilities from financial transactions

�

1,169,187

��

�

376,975

��

�

��Financing from financial or interfinancial sector (call borrowed)

�

102,800

��

�

23,600

��

�

��Others (except liabilities included in Financing Activities)

�

1,066,387

��

�

353,375

��

�

Collections related to service charge income

�

3,312,913

��

�

2,485,776

��

�

Payments related to service charge expense

�

(907,798)

��

�

(667,470)

��

�

Administrative expenses paid

�

��(3,946,909)

��

�

(2,748,569)

��

�

Organizational and development expenses paid

�

(28,129)

��

�

(34,562)

��

�

Net collections from punitive interest

�

18,539

��

�

9,833

��

�

Differences from judicial resolutions paid

�

(11,139)

��

�

(20,970)

��

�

Collections of dividends from other companies

�

54,716

��

�

33,654

��

�

Other collections related to other income and expenses

�

336,027

��

�

331,243

��

�

Net cash flows provided by operating activities

�

1,065,138

��

�

1,149,903

��

�

Investment activities

�

Net payments from premises and equipment

�

(152,287)

��

�

(78,227)

��

�

Net payments from other assets

�

(484,106)

��

�

(497,466)

��

�

Other payments from investment activities

�

(354,465)

��

�

(417,276)

��

�

Net cash flows used in investment activities

�

(990,858)

��

�

(992,969)

��

�

Financing activities

�

Net collections / (payments) from:

�

-�Unsubordinated corporate bonds

�

570,718

��

�

156,674

��

�

-�Argentine Central Bank

�

(15,336)

��

�

31,841

��

�

��Other

�

(15,336)

��

�

31,841

��

�

-�Banks and international agencies

�

386,637

��

�

(262,770)

��

�

-�Financing received from local financial institutions

�

(267,271)

��

�

123,350

��

�

Cash dividends

�

(28,800)

��

�

--,--

��

�

Other payments from financing activities

�

(1,009,061)

��

�

(850,398)

��

�

Net cash flows used in financing activities

�

(363,113)

��

�

(801,303)

��

�

Financial results and results from holdings of cash and cash equivalents (including interest)

�

--,--

��

�

��

�

Net decrease in cash and cash equivalents

�

(288,833)

��

�

(644,315)

��

�

(1) See note 6 �Statement of cash and cash equivalents flow�.


	�	- 51 -	�

�

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

WITH SUBSIDIARIES AS OF SEPTEMBER 30, 2014, PRESENTED IN COMPARATIVE FORM

WITH THE BALANCE SHEET AS OF DECEMBER 31, 2013, AND THE STATEMENTS OF

INCOME AND CASH AND CASH EQUIVALENTS FLOW AS OF SEPTEMBER 30, 2013

(Art. 33 of Law No.�19,550)

(Translation of financial statements originally issued in Spanish - See note 19 to the stand-alone Financial Statements)

-Stated in thousands of pesos-

�

SIGNIFICANT ACCOUNTING POLICIES AND SUBSIDIARIES

General rule

In accordance with the procedures set forth in BCRA�s regulations and Technical Pronouncement No.�21 of the Argentine Federation of Professional Councils in Economic Sciences, BBVA Banco Franc�s S.A. (hereinafter indistinctly referred to as either �BBVA Franc�s� or the �Bank�) has consolidated - line by line � its balance sheets as of September�30, 2014 and the end of the previous fiscal year, and the statements of income and cash and cash equivalents flow for the nine month periods ended September�30, 2014 and 2013, as per the following detail:

�

As of September�30, 2014:

�

With the financial statements of BBVA Franc�s Valores S.A., PSA Finance Argentina C�a. Financiera S.A. and BBVA Franc�s Asset Management S.A. Sociedad Gerente de Fondos Comunes de Inversi�n for the nine month periods ended September�30, 2014 and 2013.

�

With the financial statements of Consolidar Administradora de Fondos de Jubilaciones y Pensiones S.A. (undergoing liquidation proceedings) for the three month periods ended September�30, 2014 and 2013.

�

As of December�31, 2013:

�

With the financial statements of Consolidar Administradora de Fondos de Jubilaciones y Pensiones S.A. (undergoing liquidation proceedings) for the six month period ended December�31, 2013.

The results and cash and cash equivalents flow of Consolidar Administradora de Fondos de Jubilaciones y Pensiones S.A. (undergoing liquidation proceedings) have been adjusted for purposes of comparison of the fiscal years of companies consolidating on the basis of a nine month period ended on September�30, 2014 and 2013.

Interests in subsidiaries as of September�30, 2014 and the end of the previous fiscal year are listed below:

�

Shares

�

Interest percentage in

�

Type

�

Quantity

�

Total Capital

�

Possible Votes

�

Companies

�

��09-30-2014��

�

��12-31-2013��

�

09-30-2014

�

12-31-2013

�

��09-30-2014��

�

�12-31-2013�

�

BBVA Franc�s Valores S.A.

�

Common

��

�

12,396�

��

�

12,396�

��

�

96.9953�

��

�

96.9953�

��

�

96.9953�

��

�

96.9953�

��

Consolidar A.F.J.P. S.A. (undergoing liquidation proceedings)

�

Common

��

�

35,425,947�

��

�

35,425,947�

��

�

53.8892�

��

�

53.8892�

��

�

53.8892�

��

�

53.8892�

��

PSA Finance Argentina C�a Financiera S.A.

�

Common

��

�

26,089�

��

�

26,089�

��

�

50.0000�

��

�

50.0000�

��

�

50.0000�

��

�

50.0000�

��

BBVA Franc�s Asset Management S.A. Sociedad Gerente de Fondos Comunes de Inversi�n

�

Common

��

�

230,398�

��

�

230,398�

��

�

95.0000�

��

�

95.0000�

��

�

95.0000�

��

�

95.0000�

��


	�	- 52 -	�

�

Total assets, liabilities and stockholders� equity in accordance with the criteria defined in note 2 below, as of September�30, 2014 and the end of the previous fiscal year and net income balances for the nine month periods ended September�30, 2014 and 2013, are listed below:

�

��

Assets

�

��

Liabilities

�

��

Stockholders� Equity

�

��

Net income/
gain-(loss)

�

Companies

��

�09-30-2014�

�

��

�12-31-2013�

�

��

�09-30-2014�

�

��

�12-31-2013�

�

��

�09-30-2014�

�

��

12-31-2013

�

��

09-30-2014

�

��

09-30-2013

�

BBVA Franc�s Valores S.A.

��

�

33,814�

��

�

25,477�

��

�

9,442�

��

�

6,960�

��

�

24,372�

��

�

18,517�

��

�

5,855�

��

�

1,559�

��

Consolidar A.F.J.P. S.A. (undergoing liquidation proceedings)

��

�

69,273�

��

�

97,950�

��

�

58,860�

��

�

82,600�

��

�

10,413�

��

�

15,350�

��

�

(4,937)�

��

�

(3,056)�

��

PSA Finance Argentina C�a Financiera S.A.

��

�

2,544,780�

��

�

2,692,580�

��

�

2,062,600�

��

�

2,363,276�

��

�

482,180�

��

�

329,304�

��

�

152,876�

��

�

79,390�

��

BBVA Franc�s Asset Management S.A. Sociedad Gerente de Fondos Comunes de Inversi�n

��

�

144,444�

��

�

80,684�

��

�

26,247�

��

�

8,088�

��

�

118,197�

��

�

72,596�

��

�

45,601�

��

�

6,541�

��

�

VALUATION METHODS

The financial statements of the subsidiaries have been prepared based on similar methods to those applied by the Bank for preparing its own financial statements, in connection with assets and liabilities valuation, income measurement and restatement procedure as explained in note 2 to the stand-alone financial statements of the Bank. The following are the main differences with the Argentine professional accounting standards:

Arising from the application of the accounting standards laid down by BCRA and the Argentine professional accounting standards:

�

The commissions paid by PSA Finance Argentina C�a. 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 BCRA are charged to the Income Statement, should be accrued throughout the duration of the loans generated by said dealers in accordance with Argentine professional accounting standards. Had this criterion been applied, shareholders� equity would have been increased by 8,928 and 11,146 as of September�30, 2014 and the end of the previous fiscal year, respectively.

�

The Bank has not made disclosures required by Argentine professional accounting standards on discontinued operations or discontinuation in relation to the process of liquidating its subsidiary Consolidar A.F.J.P. S.A. (undergoing liquidation proceedings)

�

REFORM OF THE INTEGRATED RETIREMENT AND PENSION SYSTEM

Law No.�26,425- Dissolution and liquidation of Consolidar A.F.J.P. S.A.:

Law No.�26,425, which came into force on December�4, 2008, mandated that the capitalization system that used to be an integral part of the Integrated Retirement and Pension System was to be suppressed and replaced by a single pay-as-you-go system that is now known as the Argentine Integrated Social Security System (SIPA). As a consequence, Consolidar A.F.J.P. S.A. ceased to manage the funds held in the individual capitalization accounts opened by the members and beneficiaries of the Integrated Retirement and Pension System. Said funds were transferred to the Fund to Guarantee the Sustainability of the State-run Social Security System exactly as they had been invested and it is now the Argentine Social Security Authority (ANSES) the only and sole holder of said assets and funds.

Besides, on October�29, 2009, ANSES issued its Resolution No.�290/2009 whereby it granted a term of 30 working days to the pension fund managers that could be interested in re-converting their corporate purpose in order to manage the funds held as voluntary term deposits and as agreed-upon deposits in capitalization accounts for them to express their decision to do so.


	�	- 53 -	�

�

Given the above situation and the inability of Consolidar A.F.J.P. S.A. to attain the corporate purpose and conduct the business for which it had been formed, on December�28, 2009, its Extraordinary General Unanimous Shareholders� Meeting adopted the resolution to dissolve and subsequently liquidate Consolidar A.F.J.P. S.A. effective as of December�31, 2009 on the understanding that such will be the best alternative to safeguard the interests of both the creditors and the shareholders of the Company. In addition, as set forth in the Argentine Companies Law, the Shareholders� Meeting decided to appoint Accountant Mr.�Gabriel Orden and Mr.�Rub�n Lamandia to act as liquidators of Consolidar A.F.J.P. S.A. As of December�31, 2009 these gentlemen have been designated as the Company�s legal representatives. As of the date of issuance of these financial statements, they are moving forward with all the actions necessary to proceed with the liquidation of Consolidar A.F.J.P. S.A.

On January�28, 2010, the dissolution of Consolidar A.F.J.P. S.A. as well as the list of designated liquidators were registered with the Supervisory Board of Companies (IGJ)

In addition, the Extraordinary General Shareholders� Meeting of Consolidar A.F.J.P. S.A. approved a voluntary reduction in capital stock for 75,000 on October�19, 2009. In turn, the IGJ conferred its approval to the capital reduction mentioned on January�11, 2010. In this respect, on January�19, 2010 the shareholders were transferred their capital contributions in conformity with the above-mentioned reduction.

BBVA Franc�s, in its capacity as shareholder requested that Consolidar A.F.J.P. S.A. (undergoing liquidation proceedings) should file a note with the Argentine Ministry of Economy and Public Finance and with the Argentine Social Security Authority to commence discussions within the framework of Law No.�26,425 in order to identify one or more resolution alternatives in connection with the consequences resulting from the events caused by the enactment of that Law. This note was filed by Consolidar A.F.J.P. S.A. (undergoing liquidation proceedings) on June�11, 2010.

On December�7, 2010, Consolidar A.F.J.P. S.A. (undergoing liquidation proceedings) filed an action for damages against the National State and the Ministry of Labor, Employment and Social Security with the court of original Federal Jurisdiction over Contentious Administrative Matters No.�4, Clerk of Court�s Office No.�7, case file No.�40,437/2010. The complaint was ratified by BBVA Franc�s in its capacity as majority shareholder in that Company. On July�15, 2011, Consolidar A.F.J.P. S.A. (undergoing liquidation proceedings) and BBVA Franc�s filed with the same court an enhanced complaint for determining the amounts claimed as damages. On March�9, 2012, the Court ordered the service of process on the National State. On November�23, 2012, the Court handed down a resolution demanding the production of evidence within a term of forty days. On May�13, 2013, the Court hearing in the case ordered that evidence be produced. The Company is providing depositions, documentary evidence and expert witnesses� reports. On May�28, 2013, the Company accompanied the statements and the testimony of witnesses, as the case is currently at the evidence production stage.

�

MINORITY INTEREST IN SUBSIDIARIES

The breakdown of balances in the �Minority interest in subsidiaries� account is as follows:

�


�	�	09-30-2014			�	�	�	12-31-2013
Consolidar Administradora de Fondos de Jubilaciones y Pensiones S.A. (undergoing liquidation proceedings)	�		�	4,802	�		�		�	7,078
BBVA Franc�s Valores S.A.	�		�	732	�		�		�	557
PSA Finance Argentina C�a Financiera S.A.	�		�	241,090	�		�		�	164,652
BBVA Franc�s Asset Management S.A. Sociedad Gerente de Fondos Comunes de Inversi�n	�		�	178 �	�		�		�	108 �
	�		�	�	�		�		�	�

Total	�		�	��246,802	�		�		�	��172,395

	�		�	�	�		�		�	�


	�	- 54 -	�

�

RESTRICTIONS ON ASSETS

�

BBVA Franc�s Valores S.A. holds two shares of Mercado de Valores de Buenos Aires S.A, booked in the amount of 10,300 as of September�30, 2014 and the end of the previous fiscal year. 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 the company with their obligations.

�

See note 7 to the stand-alone financial statements of the Bank.

�

STATEMENT OF CASH AND CASH EQUIVALENTS FLOW

The Statements of Cash and cash equivalents flow explains the changes in cash and cash equivalents. For such purpose, a detail is supplied of the items that the Bank considers to be cash and cash equivalents:

�

��

��09-30-2014��

�

��

��12-31-2013��

�

��

��09-30-2013��

�

��

��12-31-2012��

�

Cash and due from banks

��

�

12,538,623��

��

�

12,880,744��

��

�

7,768,277��

��

�

8,613,997��

��

�

Government securities

��

�

546,164��

��

�

115,876��

��

�

260,358��

��

�

102,453��

��

�

Loans to financial sectors, call granted maturity date less than three months as from the end of the period or fiscal year

��

�

230,000��

��

�

607,000��

��

�

375,500��

��

�

332,000��

��

�

��

�

��

�

��

�

��

�

CASH AND CASH EQUIVALENTS

��

�

13,314,787��

��

�

13,603,620�

��

�

8,404,135��

��

�

9,048,450��

��

�

��

�

��

�

��

�

��

�

BREAKDOWN OF MAIN ITEMS

The detail of the main items included in financial statements is as follows:

�


�	��	09-30-2014			��	12-31-2013

a) GOVERNMENT AND PRIVATE SECURITIES	��		�		��		�

* Holdings booked at fair value	��		�		��		�

Secured Bonds due in 2020	��		�	1,146,234	��		�	891,894
Peso-denominated Discount governed by Argentine Law maturing in 2033	��		�	451,091	��		�	80,980
Federal Government Bonds in Pesos Badlar + 200 bp due 2016	��		�	388,400	��		�	--,--
Argentine Bond of Saving towards economic development	��		�	193,147	��		�	121,110
Federal Government Bonds in Pesos Badlar + 200 bp due 2017	��		�	189,684	��		�	--,--
Federal Government Bonds in Pesos Badlar + 300 bp due 2015	��		�	91,048	��		�	5,103
Federal Government Bonds in US Dollars 7% due 2015	��		�	27,940	��		�	--,--
Par Securities denominated in US Dollars and governed by Argentine Law	��		�	--,--	��		�	42,300
Consolidation Bonds � sixth series	��		�	--,--	��		�	31,040
Secured Bonds due in 2018	��		�	--,--	��		�	89,114
Federal Government Bonds in US Dollars 7% 2017	��		�	--,--	��		�	708,180
Federal Government Bonds in Pesos Badlar + 275 bp due 2014	��		�	--,--	��		�	12,317
Other	��		�	75,968 �	��		�	393 �
	��		�	�	��		�	�

Total	��		�	�2,563,512 �	��		�	�1,982,431 �
	��		�	�	��		�	�


	�	- 55 -	�

�

��

09-30-2014

�

��

12-31-2013

�

* Holdings booked at amortized cost

��

Other

��

�

164

��

�

164

��

�

��

�

Total

��

�

164

��

�

164

��

�

��

�

* Instruments issued by the BCRA

��

BCRA Bills (LEBAC)

��

�

6,979,223

��

�

1,273,092

��

BCRA Notes (NOBAC)

��

�

51,883

��

�

135,395

��

�

��

�

Total

��

�

7,031,106

��

�

1,408,487

��

�

��

�

* Investments in listed private securities

��

FBA Ahorro Pesos Investment Fund

��

�

53,218

��

�

64,525

��

FBA Bonos Argentina Investment Fund

��

�

9,624

��

�

--,--

��

FBA Acciones Globales Investment Fund

��

�

--,--

��

�

3,849

��

Other

��

�

1,662

��

�

675

��

�

��

�

Total

��

�

64,504

��

�

69,049

��

�

��

�

- Allowances

��

�

(204)

��

�

(196)

��

�

��

�

Total

��

�

9,659,082

��

�

3,459,935

��

�

��

�

b) INVESTMENTS IN OTHER COMPANIES � Other

��

In other companies - unlisted

��

�

39,053

��

�

29,302

��

In companies-supplementary activities

��

�

22,267

��

�

29,319

��

�

��

�

Total

��

�

61,320

��

�

58,621

��

�

��

�


	�	- 56 -	�

�

��

09-30-2014

�

��

12-31-2013

�

c) OTHER RECEIVABLES � Other

��

Miscellaneous receivables

��

�

419,945

��

�

284,581

��

Guarantee deposits

��

�

341,184

��

�

309,390

��

Prepayments

��

�

330,092

��

�

309,925

��

Tax prepayments

��

�

271,117

��

�

258,899

��

Loans to personnel

��

�

185,421

��

�

189,700

��

Advances to personnel

��

�

27,873

��

�

6,238

��

Other

��

�

7,869

��

�

671

��

�

��

�

Total

��

�

1,583,501

��

�

1,359,404

��

�

��

�

d) OTHER SUBSIDIARIES� ASSETS

��

Other related to pension fund management business

��

�

450

��

�

450

��

�

��

�

Total

��

�

450

��

�

450

��

�

��

�

e) OTHER LIABILITIES FROM FINANCIAL TRANSACTIONS - Other

��

Accounts payable for consumption

��

�

1,837,926

��

�

1,193,215

��

Other withholdings and collections at source

��

�

595,171

��

�

457,246

��

Collections and other operations for the account of third parties

��

�

509,957

��

�

342,912

��

Money orders payable

��

�

468,080

��

�

327,967

��

Fees collected in advance

��

�

118,204

��

�

105,860

��

Social security payment orders pending settlement

��

�

80,942

��

�

6,484

��

Loans received from Fondo Tecnol�gico Argentina (FONTAR) and Banco de Inversi�n y Comercio Exterior (BICE)

��

�

38,241

��

�

46,882

��

Pending Banelco debit transactions

��

�

34,728

��

�

120,570

��

Funds raised from third parties

��

�

16,725

��

�

17,255

��

Accrued commissions payable

��

�

8,781

��

�

5,608

��

Loans received from Interamerican Development Bank (IDB)

��

�

5,522

��

�

3,229

��

Other

��

�

29,083

��

�

21,317

��

�

��

�

Total

��

�

3,743,360

��

�

2,648,545

��

�

��

�

f) OTHER LIABILITIES � Other

��

Accrued taxes

��

�

935,248

��

�

674,707

��

Miscellaneous payables

��

�

719,883

��

�

509,472

��

Accrued salaries and payroll taxes

��

�

439,430

��

�

398,013

��

Amounts collected in advance

��

�

325,837

��

�

169,278

��

Other

��

�

2,193

��

�

1,308

��

�

��

�

Total

��

�

2,422,591

��

�

1,752,778

��

�

��

�

g) OTHER SUBSIDIARIES� LIABILITIES

��

Other related pension fund management business

��

�

337

��

�

337

��

�

��

�

Total

��

�

337

��

�

337

��

�

��

�


	�	- 57 -	�

�

��

09-30-2014

�

��

12-31-2013

�

h) MEMORANDUM ACCOUNTS � DEBIT � CONTROL � Other

��

Securities representative of investment in custody safekeeping on behalf of the Guarantee Fund for the Sustainability of the Pay-as-you-go System managed by the Argentine Republic

��

�

68,303,382

��

�

121,633,179

��

Items in safekeeping

��

�

56,939,700

��

�

26,289,843

��

Checks not yet credited

��

�

3,996,067

��

�

3,347,400

��

Collections items

��

�

840,229

��

�

686,371

��

Checks drawn on the Bank pending clearing

��

�

696,567

��

�

602,976

��

Cash in custody on behalf of the BCRA

��

�

297,943

��

�

52,144

��

Other

��

�

567,012

��

�

772,895

��

�

��

�

Total

��

�

131,640,900

��

�

153,384,808

��

�

��

�

��

09-30-2014

�

��

09-30-2013

�

i) SERVICE CHARGE INCOME - Other

��

Commissions for hiring of insurances

��

�

375,479

��

�

246,003

��

Rental of safe-deposit boxes

��

�

107,202

��

�

82,266

��

Commissions for loans and guaranties

��

�

28,654

��

�

97,807

��

Commissions on debit and credit cards

��

�

36,710

��

�

31,389

��

Commissions for transportations of values

��

�

20,066

��

�

15,262

��

Commissions for escrow

��

�

15,077

��

�

14,608

��

Commissions for capital market transactions

��

�

9,086

��

�

10,746

��

Commissions for salary payment

��

�

6,914

��

�

6,944

��

Commissions for trust management

��

�

1,459

��

�

922

��

Other

��

�

66,057

��

�

37,757

��

�

��

�

Total

��

�

666,704

��

�

543,704

��

�

��

�

j) SERVICE CHARGE EXPENSE - Other

��

Turn-over tax

��

�

235,983

��

�

180,271

��

Insurance paid on lease transactions

��

�

83,158

��

�

40,387

��

Other

��

�

11,746

��

�

14,371

��

�

��

�

Total

��

�

330,887

��

�

235,029

��

�

��

�

k) OTHER INCOME � Other

��

Income from the Credit Card Guarantee Fund

��

�

44,481

��

�

13,894

��

Interest on loans to personnel

��

�

23,246

��

�

21,184

��

Related parties expenses recovery

��

�

22,075

��

�

3,006

��

Deferred income tax (1)

��

�

14,300

��

�

164,500

��

Other

��

�

41,781

��

�

34,881

��

�

��

�

Total

��

�

145,883

��

�

237,465

��

�

��

�

(1) Offset by a charge for the same amount in the line Charge for uncollectibility of other receivables and other allowances under the caption Other expense item.


	�	- 58 -	�

�

09-30-2014

�

��

09-30-2013

�

l) OTHER EXPENSE � Other

�

��

Donations

�

��

�

11,039

��

�

9,366

��

Turn-over tax

�

��

�

7,774

��

�

5,794

��

Insurance losses

�

��

�

7,681

��

�

8,894

��

Private health insurance for former employees

�

��

�

7,279

��

�

5,965

��

Other

�

��

�

28,195

��

�

16,634

��

�

��

�

��

�

Total

�

��

�

61,968

��

�

46,653

��

�

��

�

��

�


	�	- 59 -	�

�

EXHIBIT 1

CONSOLIDATED CLASSIFICATION OF FINANCING FACILITIES BY

CATEGORIES AND GUARANTIES RECEIVED

AS OF SEPTEMBER 30, 2014 AND DECEMBER 31, 2013

�

(Translation of financial statements originally issued in Spanish - See note 19 to the stand-alone Financial Statements)

-Stated in thousands of pesos-

�


�	��	��09-30-2014��		�	�	��12-31-2013��		�

COMMERCIAL PORTFOLIO	��				�

Normal performance	��	�	23,023,436	��	�	�	20,260,306	��
	��	�	�	�	�	�	�	�

Preferred collaterals and counter guaranties �A�	��	�	934,280	��	�	�	779,621	��
Other collaterals and counter guaranties �B�	��	�	817,579	��	�	�	595,147	��
Without senior security or counter guaranties	��	�	21,271,577	��	�	�	18,885,538	��

With special follow-up	��	�	5,246	��	�	�	19,473	��
	��	�	�	�	�	�	�	�
Under observation	��	�	5,246��	��	�	�	15,428��	��
	��	�	�	�	�	�	�	�
Other collaterals and counter guaranties �B�	��	�	2,555��	��	�	�	--,--	��
Without senior security or counter guaranties	��	�	2,691��	��	�	�	15,428��	��
Negotiations for recovery or re-financing agreements underway	��	�	--,--	��	�	�	4,045��	��
	��	�	�	�	�	�	�	�
Preferred collaterals and counter guaranties �B�	��	�	--,--	��	�	�	786	��
Without senior security or counter guaranties	��	�	--,--	��	�	�	3,259��	��

Non-performing	��	�	15,361��	��	�	�	2,717��	��
	��	�	�	�	�	�	�	�

Preferred collaterals and counter guaranties �B�	��	�	829	��	�	�	--,--	��
Without senior security or counter guaranties	��	�	14,532��	��	�	�	2,717��	��

With high risk of uncollectibility	��	�	3,544	��	�	�	27,632	��
	��	�	�	�	�	�	�	�

Other collaterals and counter guaranties �B�	��	�	--,--	��	�	�	338	��
Without senior security or counter guaranties	��	�	3,544	��	�	�	27,294	��

Uncollectible	��	�	28,586	��	�	�	10,035	��
	��	�	�	�	�	�	�	�

Other collaterals and counter guaranties �B�	��	�	4,088	��	�	�	--,--	��
Without senior security or counter guaranties	��	�	24,498	��	�	�	10,035	��

	��	�	�	�	�	�	�	�

Total	��	�	23,076,173	��	�	�	20,320,163	��

	��	�	�	�	�	�	�	�


	�	- 60 -	�

�

EXHIBIT 1

(Contd.)��

�

CONSOLIDATED CLASSIFICATION OF FINANCING FACILITIES BY

CATEGORIES AND GUARANTIES RECEIVED

AS OF SEPTEMBER 30, 2014 AND DECEMBER 31, 2013

(Translation of financial statements originally issued in Spanish - See note 19 to the stand-alone Financial Statements)

-Stated in thousands of pesos-

�


�	��	��09-30-2014��		�	�	��12-31-2013��		�

CONSUMER AND HOUSING PORTFOLIO	��				�

Normal performance	��	�	21,189,457��	��	�	�	19,339,695��	��
	��	�	�	�	�	�	�	�

Preferred collaterals and counter guaranties �A�	��	�	18,835��	��	�	�	20,369��	��
Other collaterals and counter guaranties �B�	��	�	3,812,872��	��	�	�	3,821,776��	��
Without senior security or counter guaranties	��	�	17,357,750��	��	�	�	15,497,550��	��

Low risk	��	�	255,693��	��	�	�	222,672��	��
	��	�	�	�	�	�	�	�

Other collaterals and counter guaranties �B�	��	�	71,624	��	�	�	64,575	��
Without senior security or counter guaranties	��	�	184,069	��	�	�	158,097	��

Medium risk	��	�	192,088	��	�	�	140,262	��
	��	�	�	�	�	�	�	�

Other collaterals and counter guaranties �B�	��	�	18,819	��	�	�	19,317	��
Without senior security or counter guaranties	��	�	173,269	��	�	�	120,945	��

High risk	��	�	126,384	��	�	�	82,219	��
	��	�	�	�	�	�	�	�

Other collaterals and counter guaranties �B�	��	�	35,305	��	�	�	27,635	��
Without senior security or counter guaranties	��	�	91,079	��	�	�	54,584	��

Uncollectible	��	�	35,761	��	�	�	31,742	��
	��	�	�	�	�	�	�	�

Other collaterals and counter guaranties �B�	��	�	20,359	��	�	�	21,254	��
Without senior security or counter guaranties	��	�	15,402	��	�	�	10,488	��

Uncollectible, classified as such under regulatory requirements	��	�	106	��	�	�	137	��
	��	�	�	�	�	�	�	�

Other collaterals and counter guaranties �B�	��	�	--,--	��	�	�	37	��
Without senior security or counter guaranties	��	�	106	��	�	�	100	��

	��	�	�	�	�	�	�	�

Total	��	�	21,799,489	��	�	�	19,816,727	��

	��	�	�	�	�	�	�	�

General Total (1)	��	�	44,875,662	��	�	�	40,136,890	��

	��	�	�	�	�	�	�	�

(1) Items included: Loans (before allowances); Other receivables from financial transactions: Unlisted corporate bonds and Other receivables covered by debtor classification regulations; Receivables from financial leases (before allowances); Memorandum accounts � Credit � Contingent: Credit lines granted (unused portion) covered by debtor classification regulations, Other guaranties given covered by debtor classification regulations and Other covered by debtor classification regulations.


	�	- 61 -	�

�

INFORMATIVE SUMMARY OF ACTIVITY FOR THE NINE MONTH PERIOD

ENDED ON SEPTEMBER 30, 2014

(Consolidated amounts � Stated in thousand Pesos)

In accordance with the guidelines laid down by Grupo BBVA, BBVA Franc�s has added a Digital Banking division to the Transformation Department for the purpose of improving customer experience in all channels. Besides, in the course of this three month period, 3 new branches were opened, thus broadening the network to 278 customer service points, 248 of which are retail branches and 30 are devoted to small and medium enterprises and institutions, together with 7 business units divided by industry that provide personalized service to corporate customers. Besides, the Bank�s distribution network is further supplemented by 13 in-store banks, 2 points of sales, 669 ATMs and 723 self-service terminals.

In terms of activity, the Bank�s portfolio of loans to the private sector totaled 41,389,194 as of September�30, 2014, which points to an 20.9% growth rate in the last twelve months of the year, while during the quarter the growth rate was of 6.9%.

Efforts to boost the credit card product continued: the Visa Xeneize and River LANPASS cards were launched, together with a new program of LANPASS retail stores that allows customers to earn kilometers for the stores� sales credited to their checking accounts. In the past twelve months, the credit card product grew by 57.1% whilst growth in the period was 8.5%. In addition, pledge and consumer loans both grew by 9.4% and 5.6% respectively in the past twelve months, whilst both products rose less in this quarter, reflecting the decrease in the level of activity.

Besides, in the commercial segment, the Bank continues to play a leading role in the agriculture and livestock sector with major brand presence and exclusive products. As concerns credit lines aimed at production activities in accordance with the Central Bank�s rules and regulations and with a primary focus on investment projects, the entity�s management actions in this respect attained the objectives proposed regarding the placement of loan and lease with option to purchase transactions.

As to portfolio quality, the Bank has been able to maintain the best indicators in the Argentine financial system within an environment that has shown signs of deterioration. The portfolio quality ratio (Non-performing loans/Total loans) was 0.90% with a level of coverage (Total loan loss provisions/Non-performing loans) of 226.3% at the end of the period.

As of September�30, 2014, the portfolio of Government securities, net of repurchase agreements, totaled 2,429,010 and represented 3.2% of the Bank�s Total assets. Besides, the instruments issued by the Argentine Central Bank, net of repurchase agreements, totaled 5,270,496 as of that date and since they are short-term, they are used in order to allocate liquidity.

Total clients� resources totaled 49,736,593, indicative of 25.7% growth in the last twelve months. In the same period, sight deposits grew by 28.7% whilst term deposits grew by 16.8%. Whilst total deposits in the quarter grew by 3.5% with sight balances increasing by 8.7% whilst term deposits dropped slightly, which thus improved the funding mix.

BBVA Franc�s maintains sufficient levels of liquidity and solvency. As of September�30, 2014, liquid assets (Cash and cash equivalents plus Government and Private securities) represented 44.6% of the Bank�s deposits. Besides, the capital ratio was at 16.2% of risk-weighted assets. The Bank surpassed capital minimum requirements by 4,724,666.

BBVA Franc�s� net income was of 2,390,139, as of September�30, 2014.

As of September�30, 2014 the Financial income - net totaled 5,638,654, which points to 66.3% growth compared to the accumulated amount as of September 2013. The reasons for such growth are to be found mainly in the major increase in intermediation with the private sector and the increase in prices and also in the major increase in the line Foreign exchange gains and other, which includes forward transactions in foreign currency. Meanwhile, during the quarter there was a 21.7% increase resulting from intermediation with the private sector and income from the portfolio of Government securities.

Income from services � net totaled 2,430,573, which points to 32.7% compared to accumulated amount as of September�30, 2013, whilst, compared to the previous quarter, the increase was 9.1%. These increases were mainly driven by credit card consumptions and increases in activities recorded in deposit accounts, as well as in the commissions provided by PSA Finance. Whilst expenses from services reflect an increase in the fees paid associated to promotions with debit and credit cards.


	�	- 62 -	�

�

Administrative expenses, again, recorded a balance of 4,128,857 at the end of September 2014, growing by 42.1% compared to the prior year and 19.0% in the quarter. The increase in personnel expenses registers the salary raises agreed with the working union, , in addition to the charge for severance pays booked in the quarter and caused by the downsizing in structure whilst overhead reflects the impact of an intensified level of activity and the adjustment in general prices.

Outlook

In creating the Digital Banking division, the Bank is firmly poised not only to develop products that are more suitable and fitting to its customers but also to inject dynamism into the conduct of business by implementing increasingly innovative channels of communication.

To attain this objective, BBVA Franc�s will focus on improving both the processes and the design of products, including not only new digital products but also analogical products (those sold through the networks).

In addition, to supplement the creation of the Digital Banking division, the Bank has also introduced a number of organizational changes, redefining roles and simplifying the organization chart in order to adapt its internal structure to the business needs.


	�	- 63 -	�

�

CONSOLIDATED BALANCE SHEET STRUCTURE COMPARED TO THE SAME PERIODS IN PRIOR FISCAL YEARS

(Stated in thousands of pesos)

�

��

��09-30-2014��

�

��

��09-30-2013��

�

��

��09-30-2012��

�

��

��09-30-2011��

�

��

��09-30-2010��

�

Total Assets

��

�

74,947,272�

��

�

54,978,499�

��

�

41,584,172�

��

�

36,467,322�

��

�

34,121,464�

��

Total Liabilities

��

�

65,182,951

��

�

48,529,926

��

�

36,617,481

��

�

33,017,956

��

�

30,594,284

��

Minority Interest in subsidiaries

��

�

246,802

��

�

156,324

��

�

109,689

��

�

79,491

��

�

232,053

��

Stockholders� Equity

��

�

9,517,519

��

�

6,292,249

��

�

4,857,002

��

�

3,369,875

��

�

3,295,127

��

Total Liabilities + Minority Interest in subsidiaries + Stockholders� Equity

��

�

74,947,272

��

�

54,978,499

��

�

41,584,172

��

�

36,467,322

��

�

34,121,464

��


	�	- 64 -	�

�

CONSOLIDATED STATEMENT OF INCOME STRUCTURE COMPARED TO THE SAME PERIODS IN PRIOR FISCAL YEARS

(Stated in thousands of pesos)

�

��

��09-30-2014��

�

��

��09-30-2013��

�

��

��09-30-2012��

�

��

��09-30-2011��

�

��

��09-30-2010��

�

Financial income

��

�

5,638,654�

��

�

3,390,837�

��

�

2,687,626�

��

�

1,488,936�

��

�

2,135,261�

��

Allowances for loan losses

��

�

(422,340)

��

�

(311,521)

��

�

(156,033)

��

�

(92,466)

��

�

(115,066)

��

Income from services

��

�

2,430,573

��

�

1,831,070

��

�

1,329,835

��

�

1,035,882

��

�

788,548

��

Administrative expenses

��

�

(4,128,857)

��

�

(2,904,710)

��

�

(2,194,323)

��

�

(1,677,861)

��

�

(1,504,938)

��

�

��

�

��

�

��

�

��

�

Net gain from financial transactions

��

�

3,518,030

��

�

2,005,676

��

�

1,667,105

��

�

754,491

��

�

1,303,805

��

Miscellaneous income and expenses � net

��

�

196,145

��

�

41,269

��

�

16,446

��

�

134,567

��

�

(278,643)

��

Results of minority interest in subsidiaries

��

�

(74,407)

��

�

(38,343)

��

�

(25,951)

��

�

(5,842)

��

�

(18,873)

��

Income tax

��

�

(1,249,629)

��

�

(848,289)

��

�

(668,855)

��

�

(376,021)

��

�

(205,982)

��

�

��

�

��

�

��

�

��

�

Net income for the period

��

�

2,390,139

��

�

1,160,313

��

�

988,745

��

�

507,195

��

�

800,307

��

�

��

�

��

�

��

�

��

�


	�	- 65 -	�

�

CONSOLIDATED CASH FLOWS STRUCTURE COMPARED TO THE SAME PERIODS IN PRIOR FISCAL YEARS

(Stated in thousands of pesos)

�

��

��09-30-2014��

�

��

��09-30-2013��

�

��

��09-30-2012��

�

��

��09-30-2011��

�

��

��09-30-2010��

�

Net cash flow provided by operating activities

��

�

1,065,138�

��

�

1,149,903�

��

�

1,133,705�

��

�

5,570,077�

��

�

1,522,591�

��

Net cash flow used in investment activities

��

�

(990,858)

��

�

(992,969)

��

�

(425,122)

��

�

(299,713)

��

�

(242,181)

��

Net cash flow used in financing activities

��

�

(363,113)

��

�

(801,303)

��

�

(578,978)

��

�

(3,803,518)

��

�

(268,193

��

Financial results and results from holdings of cash and cash equivalents (including interest)

��

�

--,--

��

�

��

�

--,--

��

�

��

�

��

�

��

�

��

�

��

�

��

�

Total cash (used) / provided during the period

��

�

(288,833)

��

�

(644,315)

��

�

129,605

��

�

1,466,848

��

�

1,012,230

��

�

��

�

��

�

��

�

��

�


	�	- 66 -	�

�

STATISTICAL DETAILS COMPARED TO THE SAME PERIODS IN PRIOR FISCAL YEARS

(year-over-year variations in balances)

�

��

��09-30-2014/13��

�

��

��09-30-2013/12��

�

��

��09-30-2012/11��

�

��

��09-30-2011/10��

�

��

��09-30-2010/09��

�

Total Loans

��

�

20.81%�

��

�

31.24%�

��

�

22.61%�

��

�

40.84%�

��

�

28.56%�

��

Total Deposits

��

�

25.72%

��

�

27.34%

��

�

9.28%

��

�

31.29%

��

�

20.12%

��

Net Income

��

�

105.99%

��

�

17.35%

��

�

94.94%

��

�

(36.62%)

��

�

75.04%

��

Stockholders� Equity

��

�

51.26%�

��

�

29.55%

��

�

44.13%

��

�

2.27%

��

�

25.54%

��


	�	- 67 -	�

�

RATIOS COMPARED TO THE SAME PERIODS IN PRIOR FISCAL YEARS

�

��

��09-30-2014��

�

��

��09-30-2013��

�

��

��09-30-2012��

�

��

��09-30-2011��

�

��

��09-30-2010��

�

Solvency (1)

��

�

14.55%�

��

�

12.92%�

��

�

13.22%�

��

�

10.18%�

��

�

10.69%�

��

Liquidity (2)

��

�

44.63%

��

�

34.59%

��

�

37.45%

��

�

42.53%

��

�

63.51%

��

Tied-up capital (3)

��

�

2.69%

��

�

2.32%

��

�

1.71%

��

�

1.83%

��

�

1.81%

��

Indebtedness (4)

��

�

6.87

��

�

7.74

��

�

7.56

��

�

9.82

��

�

9.36

��

�

(1) Total Shareholders� equity/Liabilities (including minority interests in subsidiaries)

(2) Sum of Cash and cash equivalents and Government and Private securities/Deposits

(3) Sum of Premises and equipment, other assets and Intangible assets/Assets

(4) Total Liabilities (including minority interests in subsidiaries)/Shareholders� equity

INDEPENDENT AUDITORS� LIMITED REVIEW REPORT

To the President and the Board of Directors of

BBVA BANCO FRANC�S S.A.

Reconquista 199

City of Buenos Aires

�

1.	Identification of the financial statements subject to our review

We have reviewed:

�

the accompanying interim financial statements of BBVA BANCO FRANC�S S.A. (�BBVA Franc�s� or the �Bank�), which comprise the balance sheet as of September�30, 2014 and the statement of income, statement of changes in stockholders� equity and cash and cash equivalents flow for the nine-month period then ended, with their notes 1 to 19 (notes 2 and 4.1 describe a summary of significant accounting policies), and supplemental Exhibits �A� through �L�, �N� and �O�; and

�

the accompanying consolidated financial statements of BBVA Franc�s and its subsidiaries (listed in note 1 to the consolidated financial statements), which comprise the consolidated balance sheet as of September�30, 2014 and the consolidated statement of income and the consolidated cash and cash equivalents flow for the nine-month period then ended, with their notes 1 to 7 (note 2 describe a summary of significant accounting policies) and the supplemental Exhibit 1.

The interim financial statements and certain related supplemental information detailed in paragraphs a) and b) above, are presented for comparative purposes with the financial statements (both stand-alone and the consolidated financial statements) and supplemental information for the year ended December�31, 2013 and for the nine-month period ended September�30, 2013.

The Bank is responsible for the preparation and fair presentation of such financial statements in conformity with applicable accounting standards. It is also responsible for the existence of internal control considered necessary to enable the presentation of financial statements free from material misstatement, whether due to errors or to irregularities. Our responsibility is to issue a limited review report on such interim financial statements, based on our limited review performed in accordance with the scope described in caption 2 of this report.

�

2.	Scope of our review

Our review was conducted in accordance with standards set forth by Technical Pronouncement N� 7 of the Argentine Federation of Professional Councils in Economic Sciences and the �Minimum Standards applicable for External Audits� established by the Argentine Central Bank (B.C.R.A.) for the limited reviews of interim financial statements. These standards determine a scope which is substantially less than the application of all auditing procedures necessary to be able to issue an audit opinion on financial statements taken as a whole. Accordingly, we do not express an opinion on the financial position of the Bank as of September�30, 2014, on the results of its operations, the changes in its stockholders� equity and its cash and cash equivalents flow for the nine-month period then ended.

�

3.	Explanatory paragraph

The interim stand-alone and consolidated financial statements referred to in paragraphs a) and b) of caption 1 of this report have been prepared by the Bank in accordance with the accounting standards established by the B.C.R.A., which differ from the Argentine professional accounting standards concerning the matters indicated in note 3 to the stand-alone financial statements and in note 2 to the consolidated financial statements.

�

4.	Limited review report

Based on our limited review procedures performed with the scope indicated in caption 2 of this report, we are in position to report that:

�

the interim financial statements of BBVA Franc�s both individually and consolidated with its subsidiaries companies mentioned in paragraphs a) and b) of caption 1 of this report, give consideration to all the significant facts and circumstances of which we are aware of, and

�

we have no observations to present on the referred financial statements, other than those indicated under caption 3.

Our Independent Auditors� Report on the financial statements for the year ended December�31, 2013, whose figures are presented for comparative proposes and relate to those included in the financial statements corresponding to such fiscal year, was issued on February�19, 2014 and was qualified due to certain departures from Argentine professional accounting standards, described in note 3 to the stand-alone financial statements and in note 2 to the consolidated financial statements.

Our Independent Auditors� Limited Review Report on the interim financial statements for the nine-month period ended September�30, 2013, whose figures are presented for comparative proposes and relate to those included in the financial statements corresponding to such interim period, was issued on November�7, 2013, including an observation referred to certain departures from Argentine professional accounting standards, described in note 3 to the stand-alone financial statements and in note 2 to the consolidated financial statements.

�

5.	English translation of statutory financial statements

This report and the financial statements referred to in caption 1 have been translated into English for the convenience of English-speaking readers. As further explained in note 19 to the accompanying stand-alone financial statements, the financial statements (both the stand-alone and the consolidated financial statements) are the English translation of those originally prepared by the Bank in Spanish and presented in accordance with the accounting standards of B.C.R.A. and except for the matters described in caption 3, with the Argentine professional accounting standards. The effects of the differences between the accounting standards of B.C.R.A. and the Argentine professional accounting standards, and the accounting principles generally accepted in the countries in which the financial statements are to be used have not been quantified. Accordingly, the accompanying financial statements are not intended to present the financial position, results of operations, stockholders� equity or cash and cash equivalents flow in accordance with accounting principles generally accepted in the countries of users of the financial statements, other than Argentina.

�

City of Buenos Aires, November�7, 2014.

MARCELO BASTANTE

Partner

�

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.

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 French Bank S.A.

Date:	�	November 18, 2014	�	�	By:	�	/s/ Ignacio Sanz y Arcelus
	�		�	�		�	Name:	�	Ignacio Sanz y Arcelus
	�		�	�		�	Title:	�	Chief Financial Officer

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