BBVA BANCO FRANCES S A : 3Q19 Corporate Presentation

BBVA Argentina

3Q 2019 Corporate Presentation

December 2019

Corporate Presentation 3Q 2019

1

Safe Harbour Statement

This presentation contains certain forward-looking statements that reflect the current views and/or expectations of Banco BBVA Argentina and its management with respect to its performance, business and future events. We use words such as "believe," "anticipate," "plan," "expect," "intend," "target," "estimate," "project," "predict," "forecast," "guideline," "seek," "future," "should" and other similar expressions to identify forward- looking statements, but they are not the only way we identify such statements. Such statements are subject to a number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this release. Actual results, performance or events may differ materially from those in such statements due to, without limitation, (i) changes in general economic, financial, business, political, legal, social or other conditions in Argentina or elsewhere in Latin America or changes in either developed or emerging markets, (ii) changes in regional, national and international business and economic conditions, including inflation, (iii) changes in interest rates and the cost of deposits, which may, among other things, affect margins, (iv) unanticipated increases in financing or other costs or the inability to obtain additional debt or equity financing on attractive terms, which may limit our ability to fund existing operations and to finance new activities, (v) changes in government regulation, including tax and banking regulations, (vi) changes in the policies of Argentine authorities, (vii) adverse legal or regulatory disputes or proceedings, (viii) competition in banking and financial services, (ix) changes in the financial condition, creditworthiness or solvency of the customers, debtors or counterparties of Banco BBVA Argentina, (x) increase in the allowances for loan losses, (xi) technological changes or an inability to implement new technologies, (xii) changes in consumer spending and saving habits, (xiii) the ability to implement our business strategy and (xiv) fluctuations in the exchange rate of the Peso. The matters discussed herein may also be affected by risks and uncertainties described from time to time in Banco BBVA Argentina's filings with the U.S. Securities and Exchange Commission (SEC) and Comision Nacional de Valores (CNV). Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as the date of this document. Banco BBVA Argentina is under no obligation and expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Corporate Presentation 3Q 2019

2

BBVA Argentina 3Q19 highlights

branches	In-company			Loans to the	Total
251	branches	Total assets		private sector	Deposits
13	AR$414.1 bn		AR$211.8 bn	AR$274.5 bn
ATMs	Customer
845	service booths	Interest Results			Net Income
2	Commissions	Op. Expenses
	AR$15.6bn	AR$1.6bn	AR$7.1bn	AR$11.1bn
ATSs	Employees

857 6,242

		ROE	ROA	NPL ratio	Coverage ratio Efficiency ratio	NIM*
		81.3%	11.0%	%	105.08%	35.9%	20.4%
			3.31
TOTAL CUSTOMERS			DIGITAL SALES
SEPTEMBER 2019					Digital Customers1
RETAIL	SMEs	CIB			Mobile Customers2
+2.6 m	+50,450	+800			+1.2 m	+0.9 m

PRV3

56.9%

1. Digital Customers: We consider a customer to be an active user of online banking when they have been logged at least once within the last three months using the internet or a cell phone and SMS banking
2. Mobile Customers: Customers who have been active in online banking at least once in the last three months using a mobile device
3. PRV: Product Relative Value as a proxy of a better economic representation of units sold

*NIM: without FX difference.

01

BBVA Purpose

We are BBVA. We create opportunities

OUR PURPOSE

To bring the age of opportunity

to everyone

Corporate Presentation 3Q 2019

4

SIX STRATEGIC PRIORITIES

New standard in customer experience

Digital sales

New business models

Optimize capital allocation

Unrivaled efficiency

A first class workforce

Corporate Presentation 3Q 2019

5

New value proposition

Based on our customers' real needs

Helping our customers

to make the best financial decisions offering relevant advice

Providing the best	Through an easy and
solutions	convenient experience
that generate trust for our	DIY through digital
customers, being clear,	channels or human
transparent and based	interaction
on integrity

Our aspiration is to strengthen the relationship with the customer

Corporate Presentation 3Q 2019 6

Our Values

Customercomes first	We think big	We areone team
We are empathetic	We are ambitious	I am committed
We have integrity	We break the mold	I trust others
We meet their needs	We amaze our customers	I am BBVA

02

BBVA Argentina

3Q19 Highlights

01Net Income

02Net Interest Income

03Net Fee Income

04Administrative + Personnel Expenses

05Risk indicators

06Strong capital position

07Focus on shareholder value

AR$ 11.1bn

AR$ 15.6bn

AR$ 1.6bn

AR$ 7.1bn

NPL ratio 3.31%

Capital Ratio 17.1%

ROE 81.3%

Corporate Presentation 3Q 2019

8

+264.6% YoY

+129.2% YoY

(11.0%) YoY

+64.1% YoY

Coverage ratio 105.08%

TIER I 16.4%

ROA

11.0%

	Corporate Presentation 3Q 2019 9
A leading bank…
Assets (AR$ bn- % Market Share)	Liabilities (AR$ bn - % Market Share)
6,308	5,520

19.6%	9.5%	8.8%	8.3%						27.0%
		6.4%	6.1%				1,700
1,234				4.0%	3.6%
602	557	526	402	383	3.4%	3.3%
	253	225	215	211

Nación	Galicia	Santander	Provincia	BBVA	Macro	HSBC	Ciudad	ICBC	Credicoop	Rest of the System	Financial System

Equity (AR$ bn- % Market Share)

787

15.4%									31.6%
	9.7%	8.9%	7.3%	7.1%	6.6%				249
121			3.7%	3.3%	3.2%	3.1%
77	70	57	56	52
	29	26	26	25

Nacion	Macro	Galicia	Santander	BBVA	Provincia	ICBC	Patagonia	Citi	Credicoop	Rest of the System	Financial System

20.2%	9.6%							26.2%
9.1%
8.6%	6.3%					1,444
1,113			5.5%	4.2%
			3.6%	3.4%	3.4%
500	532	474	346
306	232	201	186	185

Nacion	Santander	Galicia	Provincia	BBVA	Macro	HSBC	Ciudad	Credicoop	ICBC	Rest of the System	Financial System

Earnings (AR$ bn - % Market Share)

187.2

14.6%	15.0%									25.3%
		11.4%	7.9%	6.6%			4.5%
27.4	28.1		3.8%	3.4%	4.9%	2.5%	47.4
21.4
14.8	12.4			8.4	9.1
		7.2	6.4	4.6

Galicia	Macro	BBVA	Santander	CITI	Patagonia	HSBC	ICBC	Credicoop	Provincia	Rest of the System	Financial System

Public Banks

Private Banks

Source: "Información de entidades financieras", BCRA, as of September 2019

Corporate Presentation 3Q 2019 10

…in the Argentine financial system,…

Total Loans (AR$ bn - % Market Share)Total Deposits (AR$ bn - % Market Share)

2,363	4,555

16.0%
	10.2%	9.8%		7.9%*						25.2%
	9.0%	7.7%
			6.9%
378						4.1%	4.1%	3.7%	3.2%	597
241	231	213	182	164
	97	97	89	75

Nacion	Galicia	Santander	Provincia	BBVA	Macro	HSBC	Ciudad	ICBC	Patagonia	Rest of the System	Financial System

22.6%	9.4%			7.7%*					24.2%
1,031	9.4%	8.4%	6.0%	5.3%				1,102
	4.2%	3.8%	3.8%
	429	429	383		2.8%
	275	241	191
	172	172	130

Nacion	Provincia	Santander	Galicia	BBVA	Macro	HSBC	Credicoop	Ciudad	ICBC	Rest of the System	Financial System

*Includes PSA + Volkswagen + Rombo.
Source: "Información de entidades financieras", BCRA, as of September 2019	Public Banks	Private Banks

Corporate Presentation 3Q 2019 11

• with a diversified business model.

MULTICHANNEL STRUCTURE

Physical	Digital	Exclusive
Infrastructure	Channels	Partnerships

BRANCHES	WEB	JV'S	ALLIANCES
ATM/ATS	MOBILE

• CALL CENTER
• IN-COMPANY
  BANKS

Corporate Presentation 3Q 2019 12

Geographic distribution of branches as of September 2019

	BBVA			SUPV				GAL				BMA
CABA					33%	CABA				23%	CABA					32%	CABA				7%
Prov Bs. As						34%Prov Bs. As						39%Prov Bs. As						38%	Prov Bs. As						16
																			%
Litoral							Litoral							Litoral							Litoral						36
			10%				2%							10%
																				%
NOA		4%			NOA		1%				NOA				3%			NOA					15
															%
Cuyo							Cuyo							Cuyo							Cuyo
														5%						4%
	6%							28%
Centro			7%			Centro							Centro				6%			Centro							17
						6%
																			%
															Patagonia							Patagonia
Patagonia			7%			Patagonia		1%							6%						5%
Total:
251							179				325						425
YoY Chg*:	+0								+0					+13						-14

*Annual variation in number of branches.

Source: "Información de entidades financieras", BCRA, as of September 2019

Corporate Presentation 3Q 2019 13

and a growth strategy focused on two key goals

TRANSFORMATION

OPEN MARKET

Differentiated commercial offering

Digitalization

Servicing	Digital acquisition engines
	Development of key digital competences

Equity Ownership

OWNERSHIP STRUCTURE

6.9%

6.2%

Free Float20.3% 26,55%

66,55%

ANSES		ByMA*		NYSE

As of September 30th, 2019

*Includes 0.07% in LATIBEX

Corporate Presentation 3Q 2019 14

SUBSIDIARIES AND EQUITY

PARTICIPATIONS

BBVA Asset Management

95%

BBVA Francés Valores**

97%

PSA Finance*

50%

Volkswagen Financial Services*

51%

Rombo Compañía Financiera*

40%

BBVA Seguros

12.22%

*As of July 1st 2019 the Bank returns to report the activity of PSA, Rombo and VWFS on a consolidated basis with BBVA Argentina.

**As of October 1st, 2019, the merger between BBVA Argentina S.A. And BBVA Francés Valores S.A. was put into effect (merger by absorption process)

Net Income & Main Quarterly Ratios

NET INCOME	ROE (%)
(AR$ billions)

+265%

11.1 10.7

6.8		35.2%
3.0

3Q18	2Q19	3Q19	3Q18
ROA (%)			EFFICIENCY (%)
		11.0%	44.8%
	6.6%
4.1%

3Q18

2Q19

3Q19

3Q18

Corporate Presentation 3Q 2019 15

81.3%

58.4%

2Q19 3Q19

34.2%35.9%

2Q19 3Q19

Pro-forma results .Excludes consolidation with PSA, Rombo and VWFS as of July 1st 2019.

Net Interest Margin

NET INTEREST MARGIN

(AR$ billions)

+133%

8.7	16.5	20.4
19%	8%	17%
13%
4%	7%

Corporate Presentation 3Q 2019 16

23.1%25.6%

NIM	15.6%
W/ FX
difference

78%

79%

76%

NIM

20.0%20.4%

3Q18

2Q19

3Q19

FX difference

Net income/loss from measurement of financial instruments at fair value Net Interest Income

W/o FX

difference 12.3%

Corporate Presentation 3Q 2019 17

Net Interest Income

NET INTEREST INCOME

(AR$ billions)

100%

50%

0%

-50%

-100%

6.8	13.0	15.6		Interest Income
	4%	3%	8%	2%			From Private and Public Securities
	9%	11%	27%				Financial Sector
	31%	28%
		21%	28%				Retail
					Commercial
	40%
	37%	36%				Other Interest Income
	17%
		-8%	-4%
	-20%			Interest Expense
			-77%				Sight Deposits
	-66%	-79%				Time Deposits
	-14%	-12%	-19%				Other Interest Expense

3Q18

2Q19

3Q19

Fees & Expenses

NET FEE INCOME

(AR$ billions)

-11%

3.7	4.4	4.7
	1.8	1.9
		1.6

ADMINISTRATIVE EXPENSES

(AR$ billions)

+64%

2.4

Corporate Presentation 3Q 2019 18

3.5

-2.0-2.4

-3.1

1.8

2.5

3.2

3.6

3Q182Q193Q19

3Q182Q19

3Q19

Fee Income		Fee Expenses		Net Fee Income		Personnel Expenses		Administrative Expenses

Solid Balance Sheet Structure

Corporate Presentation 3Q 2019 19

ASSETS

(AR$ billions)

213

9%

60%

13%

18%

355	393	414
8%	8%	9%
51%	47%	50%
12%	21%	18%
28%	23%	23%

LIABILITIES & EQUITY

(AR$ billions)

213 355

7%	9%
7%	13%
0%	1%

37%63%

393 414

12%	14%
13%	17%
	1%
	2%

69%66%

2017

2018

2Q19

3Q19

2017 2018 2Q19 3Q19

Cash

Government & Private Securities

Loans

Other Assets

Deposits

Corporate Bonds

Other Liabilities

Equity

Total Loans/Total Deposits 75%	Leverage	7.1x	Liquid Assets/Deposits 62%

Loans

TOTAL LOAN PORTFOLIO

(AR$ billions)

+18%

214.6

201.6

192.4

182.6

	3Q18	2Q19	3Q19
	Pro-forma results .Excludes consolidation with PSA, Rombo and VWFS as of July 1st 2019.
PRIVATE SECTOR LOANS	3Q19	2Q19	3Q18
MARKET SHARE %*
Bank	7.34%	7.64%	7.34%
Consolidated	8.13%	8.51%	8.28%

Corporate Presentation 3Q 2019 20

NET PRIVATE LOANS STRUCTURE

24.3%
AR$ 207,172 bn	50.4%
23.9%				Personal Loans
	1.3%
			22.4%
Public + Financial	Corporate	SMEs	Retail*	Mortgages
*Corporate credit cards included			12.0%

Car Loans

15.5%

PRIVATE LOANS BY CURRENCY

29%

71%

AR$ USD

*Based on daily information from BCRA. Capital values as of last day of every quarter.

Loans by segment

BBVA (%)

		8%
30%			10%
			6%
			8%
25%			11%
Overdrafts		Documents	Mortgage
Pledge		Personal	Credit Card
Other Loans
FINANCIAL SYSTEM* (%)
	4%	13%
			6%
29%
			15%
25%		7%
Overdrafts	Documents	Mortgage	Pledge
Personal	Credit Card	Other Loans

Corporate Presentation 3Q 2019 21

RETAIL

12%

16%

50%

22%

Mortgage Pledge Personal Credit Card

COMMERCIAL

17%

21%

62%

Overdrafts

Documents

Other Loans

*Source: "Información de entidades financieras", BCRA, as of September 2019

Retail loan portfolio

PERSONAL LOANS

(AR$ billions)

+8.7%

24.4

23.8

21.9

3Q18 2Q19 3Q19

PERSONAL LOANS MARKET SHARE*

5.02% 5.22% 5.16%

*Based on daily information from BCRA. Capital values as of last day of every quarter.

Corporate Presentation 3Q 2019 22

CREDIT CARDS

(AR$ billions)

+43%

53.4

47.8

37.4

1,991 2,107 2,150

3Q18 2Q19 3Q19

Volume (billions)

Credit card stock (million cards)

CREDIT CARD CONSUPTION MARKET SHARE*

13.57% 15.15% 14.93%

*Credit cards: Consumption market share. Based on information provided by Visa and

Mastercard administrators. Spending is considered as of the end of the last month of the quarter.

Retail loan portfolio

PLEDGE LOANS

(AR$ billions)

+830%

16.5

1.8

1.5

1.5

3Q18 2Q19 3Q19

Pro-forma results .Excludes consolidation with PSA, Rombo and VWFS as of July 1st 2019.

PLEDGE LOANS MARKET SHARE**

16.51% 15.14% 13.01%

MORTGAGES

(AR$ billions)

+47%

12.0

8.7

3Q18 2Q19

MORTGAGE LOANS MARKET SHARE

3.35% 3.35%

Corporate Presentation 3Q 2019 23

12.8

3Q19

3.25%

**Consolidated market share. Based on daily information from BCRA. Capital values as of last day of every quarter.

*Based on daily information from BCRA. Capital values as of last day of every quarter.

Corporate Presentation 3Q 2019 24

Commercial banking loan portfolio

COMMERCIAL LOANS	COMMERCIAL LOANS BY CURRENCY (%)
(Overdrafts+Documents+Other, AR$ billions)

+2.8%

103.3

43%

100.5

57%

96.9

AR$ USD

3Q18 2Q19 3Q19

COMMERCIAL LOANS MARKET SHARE*

9.01% 9.10% 8.31%

*Based on daily information from BCRA. Capital values as of last day of every quarter.

Risk Indicators

NPL & COVERAGE (%)

	3.3%
220.6%
2.7%
112.9%	105.1%

1.0%

3Q18			2Q19		3Q19
			Coverage		NPL
NPL BY SEGMENT (%)
Retail	2.87%		SMEs

Corporate Presentation 3Q 2019 25

NPL PEER GROUP & FINANCIAL SYSTEM (%)

System 4.6%

BBAR 3.3%

BMA1.8%

GGAL 3.5%

SAN4.0%

6.63%

CIB 0.91%

Source: "Información de Entidades Financieras", BCRA, as of September 2019

Corporate Presentation 3Q 2019 26

Asset Quality

NPLs AS A % OF TOTAL LENDING

							4.5%	4.3%	4.8%	4.4%
					3.1%	3.1%	2.7%		3.3%
1.8%	1.6%		1.8%	1.8%	1.9%
1.3%
0.8%
2016			2017		2018		2Q19		3Q19

ALLOWANCES AS A % OF NPLs

263%		262%
140%	145%	151%	132%	119%	121%	106%	113%	93%	107%	105%	93%	111%
2016		2017			2018			2Q19			3Q19

BBVA

System

Private Banks

Source: "Informe sobre bancos", BCRA, as of September 2019

Corporate Presentation 3Q 2019 27

Public Sector Exposure excluding BCRA risk

					BBVA PUBLIC SECTOR EXPOSURE
					100%
		10.4%			36%	23.2%
				9.7%
			9.4%	75%		50.2%
8.9%
8.4%				2%	39.4%
				50%		1.4%
					36%
	6.7%			25%	8.5%
				48.3%
			6.1%		26%	28.6%
	5.4%				0%
				4.3%	3Q18	2Q19	3Q19
				Public Debt in pesos	Public Debt in US dollars
3.5%					Public Debt in pesos, US dollar-Linked	Repo
					Provinces and Public Sector loans amount for 0.1% in 3Q19
					BBVA BCRA EXPOSURE
					1%
					6%		11%
2016	2017	2018	2Q19	3Q19	LEBAC
					Repo	100%
	BBVA	Financial System*		93%
		LELIQ		89%

Source: "Informe sobre bancos", BCRA, as of September 2019

3Q18

2Q19

3Q19

Deposits

TOTAL DEPOSITS

(AR$ billions)

+11%

285.2

274.5

247.2

3Q18 2Q19 3Q19

PRIVATE DEPOSITS MARKET SHARE*

8.42% 7.35% 7.14%

Corporate Presentation 3Q 2019 28

DEPOSITS STRUCTURE

50.6%31.9%

1.9%

15.6%

Current accounts		Savings accounts		Time deposits		Others

DEPOSITS BY CURRENCY

44%

56%

*Based on daily information from BCRA. Capital values as of last day of
every quarter.	AR$	USD

Liquid assets

TOTAL LIQUID ASSETS

(%)

7%

3%

4%

14%

33%32%

11%

11%9%

68%

53%56%

3Q18	2Q19		3Q19
Cash and deposits in banks			Government securities
Liquidity bills of B. C. R. A.			Net REPO transactions

TOTAL LIQUID ASSETS/TOTAL DEPOSITS

Corporate Presentation 3Q 2019 29

DEPOSIT BASE

(%)

2%

2%

2%

59%	54%	51%			68%
							LOW COST OF
							FUNDING
	11%	16%
10%
29%	33%	32%
3Q18		2Q19		3Q19
Time deposits		Checking accounts		Savings accounts		Other

52% 61% 62%

Corporate Presentation 3Q 2019 30

Strong Capital Position

	16.7%	17.1%
14.1%		16.4%
	16.0%
12.9%
		Additional buffer
Minimum Capital		(+3,5%)
Requirement
(8%)
3Q18	2Q19	3Q19

Capital Ratio

Tier I

					Corporate Presentation 3Q 2019 31
BBVA 3Q19 Highlights vs. Peers
		BBAR	GGAL	BMA	SUPV
	Profitability
	ROA	11.0%	7.1%	9.4%	0,7%
	ROE	81.3%	58.2%	57.3%	6.2%
	Efficiency Ratio	35.9%	37.3%	32.5%	70.4%
	Liquidity
	Liquid assets/Total Deposits	61.7%	49.0%	61.0%	52.1%
	Loans/Total Deposits	75.5%	89.2%	75.0%	95.9%
	Capital
	Total Regulatory Capital Ratio	17.1%	16.4%	26.5%	12.9%
	Ratio TIER 1	16.4%	12.2%	18.9%	11,8%
	Asset Quality
	NPL*	3.24%	5.25%	2.02%	7.59%
	Allowances/NPL	105.08%	106.01%	124.16%	86.10%

*Over private sector loans Source: Banks' Press Releases

										Corporate Presentation 3Q 2019 32
BBVA P&L Breakdown
Income Statement	BBVA ARG consolidated			Chg%			Proforma (2)
In millions $ except EPS and ADS	3Q19	2Q19	3Q18		QoQ	YoY		3Q19
Net Interest Income	15,611	13,036	6,811	19.8%			129.2%	14,849
Net Fee Income	1,564	1,944	1,758	(19.5%)			(11.0%)	1,625
Net income/loss from measurement of financial instruments at fair	1,432	2,115	323	(32.3%)			343.3%	1,225
value
Net loss from write-down of assets at amortized cost and at fair	3	(36)	13	108.3%			(76.9%)	4
value through OCI
Foreign exchange and gold gains	3,403	1,322	1,624	157.4%			109.5%	3,414
Other operating income	1,123	4,390	1,004	(74.4%)			11.9%	1,131
Loan loss allowances	(1,851)	(1,865)	(1,033)	(0.8%)			79.2%	(1,822)
Net operating income	21,285	20,906	10,500	1.8%			102.7%	20,426
Personnel benefits	(3,649)	(3,242)	(2,504)		12.6%			45.7%		(3,581)
Adminsitrative expenses	(3,455)	(2,421)	(1,826)	42.7%			89.2%	(3,364)
Depreciation and amortization	(423)	(394)	(220)		7.4%			92.3%		(418)
Other operating expenses	(3,218)	(6,074)	(1,636)	(47.0%)			96.7%	(2,987)
Operating income	10,540	8,775	4,314	20.1%			144.3%	10,076
Income from associates	(7)	312	(135)	(102.2%)			(94.8%)	323
Net income before income tax	10,533	9,087	4,179	15.9%			152.0%	10,399
Income tax	576	(2,306)	(1,132)	125.0%			150.9%	337
Net Income for the period	11,109	6,781	3,047	63.8%			264.6%	10,736
Total Other Comprehensive Income for the period	(3,425)	27	(153)		n.m	n.m	(3,420)
Outstanding common shares (in thousands)	612,660	612,660	612,660	-			-	612,660
Basic earnings per share	17.5	11.1	4.9		58.3%			256.9%		17.5
Earnings per ADS (1)	52.6	33.2	14.7	58.3%			256.9%	52.6
(1) Each ADS represents three ordinary shares

(2) Excludes consolidation with PSA, Rombo and VWFS as of July 1st 2019

Corporate Presentation 3Q 2019 33

Outstanding corporate bond debt

Series	Issue Date	Nominal Amount	Maturity	Coupon	Coupon	Rating
(thousands AR$)	Frequency	(FixCSR)
Clase 23	12/27/2017	553.125	12/27/2019	Floating +3,20% (TM20)	Quarterly	AAA(arg)
Clase 24	12/27/2017	546.5	12/27/2020	Floating +4,25% (Badlar -	Quarterly	AAA(arg)
Private Banks)
Clase 25	11/8/2018	784.334	11/8/2020	Floating + 9,50% (UVA)	Quarterly	AAA(arg)
Clase 27	2/28/2019	1.090.000	8/28/2020	Floating +6,25% (Badlar -	Quarterly	AAA(arg)
Private Banks)

TM20 rate: it is calculated as the volume weighted average interest rates for deposits equal or over 20 million pesos with a maturity of 30-to-35 days.

BADLAR- Private Banks rate : interest rate for fixed term deposits over 1 million pesos with a maturity of 30-to-35 days.

UVA rate: unit measure that is daily adjusted to the CER index, according to the consumer price index.

03

Financial System

Corporate Presentation 3Q 2019 35

Adequate systemic levels of liquidity and solvency

CAPITAL

Capital/RWA according to BCRA regulation

13.3%	16.7%	15.6%	15.8%

LIQUIDITY

Cash + net repos with BCRA+ BCRA bills/Total Deposits

46.7%	49.0%	42.6%	56.6%

NPL

Irregular non-financial private sector portfolio/Financing to the non-financial private sector

1.7%	1.8%	1.7%	3.0%

16.3%16.3%

60.4%57.6%

4.7%

4.8%

2015

2016

2017

2018

2Q19

3Q19

Source: "Informe sobre bancos", BCRA, as of September, 2019

Corporate Presentation 3Q 2019 36

Positive nominal and real profitability for private banks

ROE AND INFLATION

				58.3%	55.8%	55.6%	53.5%
				47.6%
		39.4%	36.1%	41.1%		42.0%
		35.6%
32.4%	31.2%
29.6% 29.4%	26.6% 24.8%
	26.9%	23.4%

2015	2016	2017	2018	2Q19	3Q19
		System ROE			Private Banks ROE			Inflation YoY

Source: BCRA and IPC CABA (from Jan-13 to Apr-16) - IPC GBA INDEC (from May -16 to May -17) - IPC Nacional INDEC (from June -17)

ROE: "Informe sobre bancos" BCRA as of September, 2019

Corporate Presentation 3Q 2019 37

A small financial system with good infrastructure, prepared for potential growth

LATAM PRIVATE LOANS AND TOTAL DEPOSITS

(% OF GDP)

100%

87.3%

BRANCHES AND ATMs/100,000 ADULT POPULATION

125

114.7

75%

74.4%

100

75

50%45.8%

40.6%

36.6%

50

58.9

49.9

25%

32.9%

18.2%

25

42.3

12.4%

0%

Crédit (%GDP)			Deposits (%GDP)
		Argentina			Chile		Colombia		Peru

13.5 14.0 14.9

7.4

0

Branches of Commercial Banks		ATM per 100,000 adults
per 100,000 adults
		Argentina		Chile		Colombia		Peru

Source: IMF, December 2018

Corporate Presentation 3Q 2019 38

LATAM financial concentration

TOTAL LOANS MARKET SHARE

# OF FINANCIAL INSTITUTIONS PER COUNTRY

100%

75%							28.9%
									16.2%
			13.1%
17.2%							16.0%	10.1%
		7.4%
50%
									15.8%
9.9%			9.5%
						13.6%
11.1%			22.6%				12.1%
25%			16.9%
8.9%
										26.1%
16.5%			18.0%	17.4%
0%
Argentina	Brasil	Chile	Colombia
		Top 1			Top 2			Top 3			Top 4

16.2%

12.6%

17.2%

20.4%

33.6%

Perú

Top 5

19.5%	63
11.8%		50
16.8%
20.0%			25
				19
					15
29.0%
Uruguay	ARG	MEX	COL	CHI	PER

Source: Central Banks, Bankscope, IMF

Corporate Presentation 3Q 2019 39

Financial System Private Loans trend

RETAIL & COMMERCIAL LOANS GROWTH

(YoY %)

80%

60%

40%

20%

20%

16.4%

13.2%

0%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

	Commercial			Total		Retail
Var YoY%	2016	2017	2018	2019	2019 YTD
Commercial	35%	53%	37%	20%	24%
Retail	29%	51%	30%	13%	11%
Total	32%	52%	33%	16%	17%

TOTAL PRIVATE LOANS / GDP

20%

15%

	13.4 %
	11.8 %	11.6 %
10.6 %	10.7 %

10%

7.6 %

5%

0%

2004 2007 2010 2013 2016 2019

Sources: BCRA as of September, 2019, INDEC, BBVA Research estimates

Corporate Presentation 3Q 2019 40

Financial System Private Deposits trend

SIGHT & TIME DEPOSITS GROWTH

(YoY %)

80%

60%

40%

									31.1%
									27.0%
20%									21.1%
0%
2010	2011	2012	2013	2014	2015	2016	2017	2018	2019
	Time Deposits		Side Deposits		Total
Var YoY%	2016	2017	2018		2019	2019 YTD
Time Deposits	14%	22%	77%		21%	2%
Sight Deposits	71%	34%	52%		31%	18%
Total		44%	44%	44%		27%	11%

TOTAL PRIVATE DEPOSITS / GDP

AR$+USD

25%

20.4%

20%

	16.3%	16.8%
		15.3%
15%		14.7%
	14.0%

10%

5%
2004	2007	2010	2013	2016	2019

Sources: BCRA as of September, 2019, INDEC, BBVA Research estimates

Corporate Presentation 3Q 2019 41

Financial System Private Deposits and Loans growth

DEPOSITS AND LOAN GROWTH

(YoY %)

80%

60%

40%

27.0%

20%

16.4%

0%
2010	2013	2016	2019
			Total Private Deposits			Total Private Loans

DEPOSITS AND LOANS / GDP

AR$+USD

24%

20.4%

18%

12%	11.6 %
6%

0%
2004	2007	2010	2013	2016	2019

DepositsLoans

Source: INDEC, BBVA Research estimates, September 2019