bbva francés - bbva argentina - bbva...2015/12/03 · corporate presentation 3 quarter 2015 new...

BBVA FrancésCorporate Presentation

3°Quarter 2015

New standard in customer experience

Drive digital sales

New business models

Optimize capital

allocation

Unrivalled efficiency

A first class

workforce

1,3 1,0 1,2

dic14' sep15'

7.79.5

10.9

2009 2010 2011 2012 2013

CPI Monthly CPI.Nu

0,05%

9,45%8,39%

0,80%

2,89%

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

2009 2010 2011 2012 2013 2014 2015e 2016e dic14’ mar15’ jun15’ sep15’ dic15’ dic16’

2009 2011 2013 2015e

2009 2011 2013 2015e 2009 2011 2013 2015e

2009 2011 2013 2015e

2009 2010 2011 2012 2013 2014 2015e 2016e

Private Sector Deposits/GDP Private Sector Loans/GDP

Source: BCRA

Expansion of the retail loan portfolio

Source: BCRA.

0

40.000

80.000

120.000

160.000

200.000

240.000

280.000

320.000

360.000

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

Car loans Personal Credit Cards Mortgages

An important player with capacity to increase its participation

Financial system as of July 2015; Private MS as of September 2015

27,55

9,51

7,41

6,76

5,38

5,14

4,16

3,68

3,51

2,89

NACION

PROVINCIA

SAN

GALI

BBVA FRANCES

MACRO

CREDICCOP

HSBC

CIUDAD

PATAGONIA

6.43%6.75%Deposits Loans

18,17

9,05

8,95

7,76

6,37

6,15

4,20

4,14

3,44

3,17

NACION

PROVINCIA

SAN

GALI

MACRO

BBVA FRANCES

CIUDAD

HSBC

ICBC

BPAT

Private market share Private market share

00000

75,95

24,0710,17

13,79

Equity Ownership

ADRs

ORDs

Since 1996

Mkt Cap $ 38,816 MMUS$ 4,272 MM

P/E $ 9,72

BV/ Share $ 23.34

Mkt data as of September 30, 2015Exchange rate: 9.42$/US$

Floating

Mkt Data

Av. Volume (3 mths) NYSE US$ 2.7 MMBCBA $ 6.2 MM

Indicators

ORDs

Ratings

Fix SCR* Shares 1 Negative

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

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

S&P Institutional Rating Long Term raB+ Negative

Institutional Rating ShortTerm raB

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

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

Income growth Risks

Liquidity Profitability

3Q-15Remarks

Key lever

Digital transformation

Strong fundamentals

Net IncomeNPL

Liquid Assets/Deposits

$ 998,1

+59% vs 3Q14’

0.74%

42.6%

3Q-15Remarks

Key lever

Digital transformationCoverage

269.69%

Strong fundamentals

ROE

30.3%

ROA

4.2%

Liquidity Profitability

Income growth Risks

Digital transformation framework

Digital Sales

Distribution Model

DigitalCapabilities

InfraestructureDevelopment

Organization & Culture

Customer Experience

Figures in thousands of pesos 3°Q-15 2°Q-15 3°Q-14 ∆ Y/Y

Net Financial Income 2,326,603 1,973,233 1,749,510 33.0%

Provision for Loan Losses (115,201) (181,178) (151,867) -24.1%

Net Income from Services 953,272 800,607 887,922 7.4%

Administrative Expenses (1,645,376) (1,472,263) (1,582,636) 4.0%

Operating Income 1,519,298 1,120,399 902,929 68.3%

Income tax (549,658) (452,932) (345,100) 59.3%

Net Income 998,070 667,210 628,970 58.7%

P&L breakdown

+10%adjusted

+32%adjusted

*During 2°Q 2015, the Bank

1.7501.973

2.327

Sep.14 Jun.15 Sep.15

NIM

Figures in millions of pesos

Net financialincome

16,36%

15,70%

15,16%


Private SpreadAverage spread ($)

- 120 pb - 54 pb

YoY QoQ

Sep15’ vs Sep14’

+33%

888

801

953


Fees and Expenses


971862

911


611 610735

Sep.14 Mar.15 Jun.15

Net Income from Services

Personnel expenses dropped 4%(adjusted) compared to 3Q-14which included the impact of theorganizational changesimplemented. All of these, partiallyoffset by the salary increase agreedwith the union and a higher numberof employees (internalization),

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

Personnel expenses

General expenses

32% 9.2%

YoY QoQ

AssetsLiabilities + Equity

12.475

49.918

12.979

13.937

12.528

16.388

63.216

Solid balance sheet structure


Cash and Banks

Private Loans

Deposits

Others

Net Worth

BCRA Notes

Public sector assets

92,133 92,133

Others

14%

14%

54%

3%

15%

69%

18%

14%

Leverage 6.4xLoans/

Deposits 79.0%LiquidAssets/

Deposits42.6%

53%

32%

15%

40.51347.014 49.918


Private loan portfolio with a diversified structure


Credit Cards29%

Personal Loans14%

Car Loans 8%Mortgages 4%

Corporate

Middle-Market

Retail

+24%YoY

AverageLending Rate ($) 24.9%

6.0655.965

6.809


5.977

6.353

6.805


Market Share (%) 18.61 17.07 18.22

Market Share (%) 5.74 4.91 4.69

(*) Car loans include joint ventures


Personal Loans

Car Loans (*)

Retail Banking

+ 14 % + 7 %

YoY QoQ

+ 12 % + 14 %

YoY QoQ

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

Market Shareof total purchasings

Advertising + Promotions /Income

12,06%

12,33%12,11%


46,5%

64,0% 61,7%


Middle-Market

Commercial loan portfolio

Market Share (%) 10.19 10.02 9.76

Corporate

Market Share (%) 15.24 13.15 11.97

12.72414.956

16.746


8.7098.388

7.567


+32 % +12%

YoY QoQ

-13% -10%

YoY QoQ


2.510 2.662 2.760

5.270

11.554 11.076

Others

BCRA Bills & Notes(own portfolio)

Public bonds

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

7,832 14,276 13,900

3.4% 3.1% 3.1%


Important participation of bills & notes issued by the Central Bank

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

NPL peer group and Financial System(Jul-15’)

NPL by business areas

Retail 1.25% Middle-Market 0.19% Corporate 0.00%

225,89% 235,99%269,69%

0,94% 0,89%

0,74%

0%

0%

0%

0%

0%

1%

1%

1%

1%

1%

1%

Coverage NPL

1,72

0,72

1,2

1,7

1,72

System

BBVA

Peer 1

Peer 2

Peer 3

Deposits: improving the funding mix


49.737

60.016 63.217


Sightaccounts

55% 63%

37%

TD < 1MM

TD > 1MM

Averagecost of funds ($) 9.7%

+27%YoY

+28%

Negotiable Obligations

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

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

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

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

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

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

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

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

Fix Rating AA (Arg)

Efficiency and coverage ratios

Efficiency Ratio (1)

Coverage ratio (2)

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

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

58,80%

50,30%51,70%


56,10%

54,40%

57,90%


- 710 pb + 140 pb

YoY QoQ

+ 180 pb + 350 pb

YoY QoQ

38,23 36,60

30,30

ROE

4,90 4,90

4,20

ROA

* Accumulated ratios

Intermediation with theprivate sector

Good asset qualityEfficient operating

structureBalance sheet strength

(Capital & Liquidity)

BBVA FrancésCorporate Presentation

3°Quarter 2015

bbva francés - bbva argentina - bbva...2015/12/03 · corporate presentation 3 quarter 2015 new...

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