o
|
REGISTRATION
STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE
ACT
OF 1934
|
|
OR
|
||
x
|
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
|
For
the fiscal year ended December 31, 2006
|
||
OR
|
||
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
|
For
the transition period
from to
|
||
OR
|
||
o
|
SHELL
COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE
ACT OF 1934
|
|
Date
of event requiring this shell company report
For
the transition period
from to
|
Title
of each
class
|
Name
of each exchange on
which registered
|
|
American
Depositary Shares, each representing the right to receive three ordinary
shares, par value Ps.1.00 per share
|
New
York Stock Exchange
|
|
Ordinary
shares, par value Ps.1.00 per share
|
New
York Stock Exchange*
|
|
* The
ordinary shares are not listed for trading, but are listed only in
connection with the registration of the American Depositary Shares,
pursuant to requirements of the New York Stock
Exchange.
|
Title
of
class
|
Number
of shares
outstanding
|
|
Ordinary
Shares, par value Ps.1.00 per share
|
471,361,306
|
Page
|
||
FORWARD-LOOKING
STATEMENTS
|
1
|
|
PRESENTATION
OF FINANCIAL INFORMATION
|
1
|
|
CERTAIN
TERMS AND CONVENTIONS
|
2
|
|
PART
I
|
||
ITEM
1.
|
IDENTITY
OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS
|
3
|
ITEM
2.
|
OFFER
STATISTICS AND EXPECTED TIMETABLE
|
3
|
ITEM
3.
|
KEY
INFORMATION
|
3
|
ITEM
4.
|
INFORMATION
ON THE COMPANY
|
14
|
ITEM
5.
|
OPERATING
AND FINANCIAL REVIEW AND PROSPECTS
|
88
|
ITEM
6.
|
DIRECTORS,
SENIOR MANAGEMENT AND EMPLOYEES
|
114
|
ITEM
7.
|
MAJOR
SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
|
129
|
ITEM
8.
|
FINANCIAL
INFORMATION
|
133
|
ITEM
9.
|
THE
OFFER AND LISTING
|
134
|
ITEM
10.
|
ADDITIONAL
INFORMATION
|
137
|
ITEM
11.
|
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
147
|
ITEM
12.
|
DESCRIPTION
OF SECURITIES OTHER THAN EQUITY SECURITIES
|
150
|
PART
II
|
||
ITEM
13.
|
DEFAULTS,
DIVIDEND ARREARAGES AND DELINQUENCIES
|
151
|
ITEM
14.
|
MATERIAL
MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF
PROCEEDS
|
151
|
ITEM
15.
|
CONTROLS
AND PROCEDURES
|
151
|
ITEM
16 A.
|
AUDIT
COMMITTEE FINANCIAL EXPERT
|
153
|
ITEM
16 B.
|
CODE
OF ETHICS
|
153
|
ITEM
16 C.
|
PRINCIPAL
ACCOUNTANT FEES AND SERVICES
|
154
|
ITEM
16 D.
|
EXEMPTIONS
FROM LISTING REQUIREMENTS FOR AUDIT COMMITTEES
|
154
|
ITEM
16 E.
|
PURCHASES
OF EQUITY SECURITIES BY ONE ISSUER AND AFFILIATED PERSONS
|
154
|
PART
III
|
||
ITEM
17.
|
FINANCIAL
STATEMENTS
|
155
|
ITEM
18.
|
FINANCIAL
STATEMENTS
|
155
|
ITEM
19.
|
EXHIBITS
|
155
|
|
§
|
Changes
in general economic, business or political or other conditions in
the
Republic of Argentina (“Argentina“) or changes in general economic or
business conditions in Latin
America;
|
|
§
|
Changes
in capital markets in general that may affect policies or attitudes
toward
lending to Argentina or Argentine
companies;
|
|
§
|
Increased
costs and decreased income related to macroeconomic variables such
us
exchange rates and the Consumer Price Index
(“CPI”);
|
|
§
|
Unanticipated
increases in financing and other costs or the inability to obtain
additional debt or equity financing on attractive terms;
and
|
|
§
|
The
factors discussed under “Risk
Factors”.
|
December
31,
|
||||||||||||
Entity
|
2006
|
2005
|
2004
|
|||||||||
PSA Finance Argentina Compañía Financiera S.A. |
X
|
X
|
X
|
|||||||||
Consolidar
AFJP S.A.
|
X
|
X
|
X
|
|||||||||
Consolidar
Compañía de Seguros de Vida S.A. and subsidiary (2)
|
X
|
X
|
X
|
|||||||||
Consolidar
Compañía de Seguros de Retiro S.A. and subsidiary (2)
|
X
|
X
|
X
|
|||||||||
Francés
Valores Sociedad de Bolsa S.A.
|
X
|
X
|
X
|
|||||||||
Credilogros Compañía Financiera S.A. and subsidiary (1) |
X
|
X
|
||||||||||
Atuel
Fideicomisos S.A. and subsidiary
|
X
|
X
|
X
|
(1)
|
The
Bank sold its entire equity interest in Credilogros Compañía Financiera
S.A. to Banco de Servicios y Transacciones S.A and Grupo de Servicios
y
Transacciones in March 2005 (see Note 1.4. to the Consolidated Financial
Statements).
|
(2)
|
In
December 2005, both Consolidar Compañía de Seguros de Vida S.A. and
Consolidar Compañía de Seguros de Retiro S.A., sold theirs entire equity
interest in Consolidar Comercializadora
S.A.
|
For
the Fiscal Year Ended December 31,
|
||||||||||||||||||||
2006
|
2005
|
2004(9)
|
2003(9)
|
2002(9)(10)
|
||||||||||||||||
(in
thousands of pesos)(1)
|
||||||||||||||||||||
CONSOLIDATED
INCOME STATEMENT
|
||||||||||||||||||||
Amounts
in accordance with Argentine Banking GAAP
|
||||||||||||||||||||
Financial
income
|
1,936,404
|
1,654,152
|
1,154,825
|
1,883,236
|
5,664,274
|
|||||||||||||||
Financial
expenses
|
(568,345 | ) | (608,949 | ) | (458,360 | ) | (1,711,293 | ) | (4,612,425 | ) | ||||||||||
Gross
intermediation margin
|
1,368,059
|
1,045,203
|
696,465
|
171,943
|
1,051,849
|
|||||||||||||||
Provision
for loan losses
|
(70,125 | ) | (114,628 | ) | (52,002 | ) | (77,506 | ) | (655,395 | ) | ||||||||||
Service
charge income
|
915,875
|
721,167
|
584,913
|
457,778
|
548,764
|
|||||||||||||||
Service
charge expenses
|
(110,199 | ) | (77,764 | ) | (54,829 | ) | (49,594 | ) | (58,031 | ) | ||||||||||
Operating
expenses
|
(927,404 | ) | (775,835 | ) | (679,829 | ) | (711,407 | ) | (869,188 | ) | ||||||||||
(Net
other expenses) / Net other income
|
(885,473 | ) | (645,076 | ) | (458,764 | ) |
43,937
|
(787,126 | ) | |||||||||||
Income
/ (Loss) before income tax
|
290,733
|
153,067
|
35,954
|
(164,849 | ) | (769,127 | ) | |||||||||||||
Income
tax
|
(71,680 | ) | (18,712 | ) | (77,099 | ) | (189,232 | ) | (8,976 | ) | ||||||||||
Monetary
loss
|
—
|
—
|
—
|
(1,091 | ) | (616,475 | ) | |||||||||||||
Net
income / (loss)
|
219,053
|
134,355
|
(41,145 | ) | (355,172 | ) | (1,394,578 | ) | ||||||||||||
Net
(loss) / income on minority interests in subsidiaries
|
(39,016 | ) | (17,151 | ) | (12,901 | ) |
4,844
|
60,069
|
||||||||||||
Final
consolidated income / (loss)
|
180,037
|
117,204
|
(54,046 | ) | (350,328 | ) | (1,334,509 | ) | ||||||||||||
Net
operating revenue (3)
|
2,173,735
|
1,688,606
|
1,226,549
|
580,127
|
1,542,582
|
|||||||||||||||
Operating
income (4)
|
1,176,206
|
798,143
|
494,718
|
(208,786 | ) |
17,999
|
||||||||||||||
Net
income / (loss) per ordinary shares (2) (11)
|
0.38
|
0.25
|
(0.14 | ) | (0.95 | ) | (4.84 | ) | ||||||||||||
Net
income / (loss) per ADS (2) (11)
|
1.14
|
0.75
|
(0.42 | ) | (2.85 | ) | (14.52 | ) | ||||||||||||
Cash
dividends per ordinary share (11)
|
0.19093
|
0.05728
|
—
|
—
|
—
|
|||||||||||||||
Cash
dividends per ADS (11)
|
0.57279
|
0.17184
|
—
|
—
|
—
|
|||||||||||||||
Net
operating income per ordinary shares (2) (11)
|
2.50
|
1.69
|
1.28
|
(0.57 | ) |
0.07
|
||||||||||||||
Net
operating income per ADS (2) (11)
|
7.50
|
5.07
|
3.84
|
(1.71 | ) |
0.21
|
||||||||||||||
Average
ordinary shares outstanding (000s) primary (11)
|
471,361
|
471,361
|
385,334
|
368,128
|
275,672
|
|||||||||||||||
Net
income / (loss) per ordinary shares (2) (12)
|
0.38
|
0.25
|
(0.13 | ) | (0.95 | ) | (4.62 | ) | ||||||||||||
Net
income / (loss) per ADS (2) (12)
|
1.14
|
0.75
|
(0.39 | ) | (2.85 | ) | (13.86 | ) | ||||||||||||
Cash
dividends per ordinary share (12)
|
0.19093
|
0.05728
|
—
|
—
|
—
|
|||||||||||||||
Cash
dividends per ADS (12)
|
0.57279
|
0.17184
|
—
|
—
|
—
|
|||||||||||||||
Net
operating income per ordinary shares (2) (12)
|
2.50
|
1.69
|
1.18
|
(0.57 | ) |
0.06
|
||||||||||||||
Net
operating income per ADS (2) (12)
|
7.50
|
5.07
|
3.54
|
(1.71 | ) |
0.18
|
||||||||||||||
Average
ordinary shares outstanding (000s) primary (12)
|
471,361
|
471,361
|
419,745
|
368,128
|
288,880
|
|||||||||||||||
Amounts
in accordance with U.S. GAAP:
|
||||||||||||||||||||
Net
income / (loss) (13)
|
977,543
|
1,634,612
|
1,407,519
|
(26,356 | ) | (2,922,578 | ) | |||||||||||||
Net
income / (loss) per ordinary share (2) (11)
|
2.07
|
3.47
|
3.65
|
(0.07 | ) | (10.60 | ) | |||||||||||||
Net
income / (loss) per ADS (2) (11)
|
6.21
|
10.41
|
10.95
|
(0.21 | ) | (31.80 | ) | |||||||||||||
Average
ordinary shares outstanding (000s) primary (11)
|
471,361
|
471,361
|
385,334
|
368,128
|
275,672
|
|||||||||||||||
Net
income / (loss) per ordinary share (2) (12)
|
2.07
|
3.47
|
3.35
|
(0.07 | ) | (10.12 | ) | |||||||||||||
Net
income / (loss) per ADS (2) (12)
|
6.21
|
10.41
|
10.05
|
(0.21 | ) | (30.36 | ) | |||||||||||||
Average
ordinary shares outstanding (000s) primary (12)
|
471,361
|
471,361
|
419,745
|
368,128
|
288,880
|
For
the Fiscal Year Ended December 31,
|
||||||||||||||||||||
2006
|
2005
|
2004(9)
|
2003(9)
|
2002(9)(10)
|
||||||||||||||||
(in
thousands of pesos)(1)
|
||||||||||||||||||||
CONSOLIDATED
BALANCE SHEET
|
||||||||||||||||||||
Amounts
in accordance with Argentine Banking GAAP
|
||||||||||||||||||||
Cash
and due from banks
|
2,558,484
|
1,611,506
|
1,666,617
|
1,639,154
|
1,050,636
|
|||||||||||||||
Government
and private securities
|
4,372,032
|
3,504,311
|
2,476,948
|
3,042,451
|
2,239,859
|
|||||||||||||||
Loans,
net of allowances
|
9,534,183
|
8,481,476
|
9,268,723
|
8,336,352
|
9,283,971
|
|||||||||||||||
Other
assets
|
2,369,930
|
2,386,455
|
2,629,384
|
3,339,882
|
3,588,352
|
|||||||||||||||
Total
assets
|
18,834,629
|
15,983,748
|
16,041,672
|
16,357,839
|
16,162,818
|
|||||||||||||||
Deposits
|
12,505,756
|
10,613,086
|
8,993,780
|
8,078,216
|
6,921,468
|
|||||||||||||||
Other
liabilities and minority interest in subsidiaries
|
4,374,289
|
3,569,115
|
5,363,549
|
6,705,646
|
7,317,045
|
|||||||||||||||
Total
liabilities and minority interest in subsidiaries
|
16,880,045
|
14,182,201
|
14,357,329
|
14,783,862
|
14,238,513
|
|||||||||||||||
Capital
stock
|
471,361
|
471,361
|
471,361
|
368,128
|
368,128
|
|||||||||||||||
Issuance
premiums
|
175,132
|
175,132
|
1,195,390
|
934,211
|
934,211
|
|||||||||||||||
Adjustments
to stockholders’ equity
|
312,979
|
312,979
|
769,904
|
769,904
|
769,904
|
|||||||||||||||
Retained
earnings
|
465,317
|
428,698
|
430,500
|
430,500
|
430,500
|
|||||||||||||||
Unrealized
valuation difference
|
—
|
230,282
|
230,282
|
430,282
|
430,282
|
|||||||||||||||
Unappropriated
earnings
|
529,795
|
183,095
|
(1,413,094 | ) | (1,359,048 | ) | (1,008,720 | ) | ||||||||||||
Total
stockholders’ equity
|
1,954,584
|
1,801,547
|
1,684,343
|
1,573,977
|
1,924,305
|
|||||||||||||||
Amounts
in accordance with U.S. GAAP
|
||||||||||||||||||||
Total
assets
|
19,230,659
|
15,421,682
|
14,069,122
|
12,440,507
|
12,467,287
|
|||||||||||||||
Total
stockholders’ equity
|
1,219,846
|
246,268
|
(1,325,801 | ) | (3,010,278 | ) | (2,824,245 | ) | ||||||||||||
SELECTED
RATIOS IN ACCORDANCE WITH ARGENTINE BANKING GAAP
|
||||||||||||||||||||
Profitability
and Performance
|
||||||||||||||||||||
Return
on average total assets (5)
|
1.03 | % | 0.73 | % | (0.33 | )% | (2.15 | )% | (6.93 | )% | ||||||||||
Return
on average stockholders’ equity (6)
|
9.59 | % | 6.72 | % | (3.32 | )% | (20.03 | )% | (67.13 | )% | ||||||||||
Services
charge income as a percentage of operating expenses
|
98.76 | % | 92.95 | % | 86.04 | % | 64.35 | % | 63.14 | % | ||||||||||
Operating
expenses as a percentage of average total assets
(7)
|
5.33 | % | 4.85 | % | 4.20 | % | 4.38 | % | 4.51 | % | ||||||||||
Capital
|
||||||||||||||||||||
Stockholders’
equity as a percentage of total assets
|
10.38 | % | 11.27 | % | 10.50 | % | 9.62 | % | 11.91 | % | ||||||||||
Total
liabilities as a multiple of stockholders’ equity
|
8.64
|
x |
7.87
|
x |
8.52
|
x |
9.39
|
x |
7.40
|
x | ||||||||||
Credit
Quality
|
||||||||||||||||||||
Allowances
for loan losses as a percentage of total loans
|
1.72 | % | 2.13 | % | 2.14 | % | 5.22 | % | 10.27 | % | ||||||||||
Non-performing
loans as a percentage of gross loans (8)
|
0.82 | % | 1.08 | % | 1.11 | % | 6.66 | % | 11.19 | % | ||||||||||
Allowances
for loan losses as a percentage of non-performing loans
(8)
|
209.20 | % | 197.80 | % | 192.79 | % | 78.39 | % | 91.79 | % |
(1) | Except per-share and per-ADS data and financial ratios. |
(2) | Assumes average ordinary shares outstanding in each period. The cash dividend amounts do not reflect any deduction for certain charges that are taken with regard to the “American Depositary Receipts”. |
(3) | Includes: financial income, financial expenses, service charge income and service charge expenses. |
(4) | Includes: financial income, financial expenses, provision for loan losses, services charge income, service charge expenses and operating expenses. |
(5) | Net income as a percentage of average total assets, computed as the average of fiscal-year-beginning and fiscal-year-ending balances. |
(6) | Net income as a percentage of average stockholders’ equity, computed as the average of fiscal-year-beginning and fiscal-year-ending balances. |
(7) | Operating expenses as a percentage of average total assets, computed as the average of fiscal-year-beginning and fiscal-year-ending balances. |
(8) | Non-performing loans include all loans to borrowers classified as “problem”, “deficient servicing”, “high insolvency risk”, “difficult recovery”, “irrecoverable” and “irrecoverable for technical decision” according to the Central Bank’s loan classification system as well as all loans contractually past due 90 days or more. See “Information on the Company—Selected Statistical Information—Allowance for Loan Losses and Loan Loss Experience”. |
(9) |
Restated
from its original version to apply the adjustments to prior years
income
to these Consolidated Financial Statements related with Argentine
Central
Bank regulations (see Note 3.4.18. to our Consolidated Financial
Statements).
|
(10)
|
The
Financial Statements for the fiscal year ended December 31, 2002
was
restated in the February 28, 2003 currency by applying the adjustment
rate
derived from the internal WPI published by
INDEC.
|
(11)
|
The
average ordinary shares outstanding was computed as the average of
the
previous twelve months.
|
(12)
|
The
average ordinary shares outstanding was computed as the average of
fiscal-year-beginning and
fiscal-year-ended.
|
Cash
Dividends
Per
Ordinary Share
|
Cash
Dividends Per
ADS
|
|||||||||||||||
Ps.(1)
|
US$
|
Ps.(1)
|
US$
|
|||||||||||||
December
31, 2006 (3)
(2)
|
0.19093
|
0.58816
|
0.57279
|
1.76448
|
||||||||||||
December
31, 2005 (3)
(2)
|
0.05728
|
0.17619
|
0.17184
|
0.52858
|
||||||||||||
December
31, 2004 (3)
|
—
|
—
|
—
|
—
|
||||||||||||
December
31, 2003 (3)
|
—
|
—
|
—
|
—
|
||||||||||||
December
31, 2002 (3)
|
—
|
—
|
—
|
—
|
||||||||||||
|
(1)
|
Historical
values.
|
(2)
|
Based
upon the reference exchange rate quoted by Central Bank on the date
of
payment.
|
(3)
|
On
April 2002, the Central Bank suspended the payment of dividends by
Argentine financial institutions. As of June 2, 2004 the Central
Bank will
make some exceptions to the suspension of profits distributions and
may
pre-authorize dividend payments under certain conditions. See
“Financial Information –
Dividends”.
|
Year
/Period
|
High
|
Low
|
Average
(1)
|
|||||||||||||
April
2007 (2)
|
Ps.
|
3.1008
|
Ps.
|
3.0808
|
Ps.
|
3.0891
|
||||||||||
March
2007 (2)
|
Ps.
|
3.1060
|
Ps.
|
3.0963
|
Ps.
|
3.1010
|
||||||||||
February
2007 (2)
|
Ps.
|
3.1058
|
Ps.
|
3.0975
|
Ps.
|
3.1026
|
||||||||||
January
2007 (2)
|
Ps.
|
3.1068
|
Ps.
|
3.0553
|
Ps.
|
3.0850
|
||||||||||
2006
(2)
|
Ps.
|
3.1072
|
Ps.
|
3.0305
|
Ps.
|
3.0741
|
||||||||||
December
2006 (2)
|
Ps.
|
3.0792
|
Ps.
|
3.0492
|
Ps.
|
3.0603
|
||||||||||
November
2006 (2)
|
Ps.
|
3.0887
|
Ps.
|
3.0680
|
Ps.
|
3.0757
|
||||||||||
2005
(2)
|
Ps.
|
3.0523
|
Ps.
|
2.8592
|
Ps.
|
2.9232
|
||||||||||
2004
(2)
|
Ps.
|
3.0718
|
Ps.
|
2.8037
|
Ps.
|
2.9415
|
||||||||||
2003
(2)
|
Ps.
|
3.3625
|
Ps.
|
2.7485
|
Ps.
|
2.9493
|
||||||||||
2002
(2)
|
Ps.
|
3.8675
|
Ps.
|
1.0000
|
Ps.
|
2.9793
|
||||||||||
|
(1)
|
The
average of monthly average rates during the
period.
|
(2)
|
Source:
Central Bank.
|
For
the Fiscal Year Ended December 31,
|
||||||||||||||||||||
2006
|
2005
|
2004
|
2003
|
2002
|
||||||||||||||||
Devaluation
Rate
|
1.25 | % | 1.94 | % | 1.39 | % | (12.71 | )% | 236.00 | % | ||||||||||
Exchange
Rate
|
3.0695
|
3.0315
|
2.9738
|
2.9330
|
3.3600
|
|||||||||||||||
Inflation
Rate (1)
|
7.17 | % | 10.59 | % | 7.92 | % | 1.84 | % | 118.21 | % | ||||||||||
|
(1)
|
The
inflation rate presented is the general WPI published by the
INDEC.
|
|
§
|
On
March 5, 2003, the action for the protection of constitutional rights
brought against the Federal Government by the Province of San Luis,
the
Banco de la Nación Argentina and the BCRA was declared to be
unconstitutional, ordering the return of the amounts deposited in
either
US dollars or the equivalent in pesos at the free market rate of
exchange.
|
|
§
|
On
July 13, 2004, in the case “CABRERA, GERÓNIMO RAFAEL V. ARGENTINE
EXECUTIVE BRANCH ON ACTION FOR THE PROTECTION OF CONSTITUTIONAL RIGHTS
(AMPARO)”, it rejected the claim of a depositor on the grounds that the
depositor had exercised his rights within the framework of the emergency
laws and collected a portion of his deposit in pesos without reserving
the
right to claim the difference in U.S. dollars at the exchange rate
prevailing in the open market.
|
|
§
|
On
September 14, 2004, in the case entitled “CAMPBELL, MARÍA ENRIQUETA VDA.
DE TUFIÑO Y OTRO C/ P.E.N. - BANCO DE SALTA S.A. GRUPO MACRO S/ AMPARO-
MEDIDA CAUTELAR”, the CSJN rejected the claim of a depositor which was
filed before the Court of original Jurisdiction and the Court of
appeal,
declaring the unconstitutionality of the emergency rule questioned
regarding the pesification of the deposit funds in foreign
currency.
|
|
§
|
On
October 26, 2004, in the case entitled “BUSTOS, ALBERTO ROQUE Y OTROS c/
P.E.N. Y OTROS s/ AMPARO”, the Supreme Court revoked a decision on the
protection of constitutional rights (amparo), declaring that such
action
is not adequate for such claim and upheld the constitutionality of
the
rule by which the Argentine economy was pesificated due to the economic,
financial and exchange emergency situation which the country is going
through, also confirmed by Congress Law. The revoked decision of
the
Original Jurisdiction does not state how the Judge of this jurisdiction
will resolve the fulfillment of the Court and for such reason proceed
to
the refund of the amount already paid due to the legal claims ordered
by a
Grade Judge.
|
|
§
|
On
December 27, 2006 in case “MASSA, JUAN AGUSTIN c/P.E.N. s/ AMPARO” the
Supreme Court confirmed the constitutionality of the emergency legislation
during 2001, 2002 regarding the pesification of the argentine economy
and
stated the calculation method applicable for the restitution of the
deposits in the financial system subject to the mentioned emergency
legislation. This calculation method is substantially different from
the
method that was originally enforced by the Executive Branch because
it
entitles each deposit holder to receive from the corresponding financial
institution the reimbursement of his deposit at an exchange rate
of Ps.1.4
= US$1, adjusted by the benchmark stabilization coefficient known
as and
herein referred to as “CER” until payment date, plus a 4% annual
compensatory interest for every concept which cannot be capitalized.
CER
is a stabilization coefficient applicable to debt obligations that
have
been pesificated as form February 4, 2002. This coefficient is calculated
according to the variation of the Consumer Price Index published
by a
government dependent organism known as INDEC. The Supreme Court also
stated that the already withdrawn amounts as result of judicial measures
shall be considered as partial payments, but the SCJN did not clarify
the
corresponding adjustment procedure.
|
|
§
|
On
March 20, 2007 the Supreme Court issued a final resolution in case
“EMM
S.R.L. c/ Tía S.A. s/ ordinario s/ incidente de medidas cautelares
(depósitos judiciales )” declaring that the dispositions of Decree No.
214/02 were not applicable to a judicial deposit that was ordered
in said
case, and therefore ordered Banco de la Ciudad de Buenos Aires to
maintain
in United Stated Dollars the funds of said judicial
deposit.
|
|
§
|
Consolidar
AFJP S.A.
|
|
§
|
Consolidar
Compañía de Seguros de Vida S.A.
|
|
§
|
Consolidar
Compañía de Seguros de Retiro S.A.
|
As
of December 31, 2006
(in
thousands of pesos)
|
||||||||||||||||||||
Banking
and
Financial
|
Pension
Fund
Management
|
Insurance
|
Eliminations(1)
|
Total
|
||||||||||||||||
Total
assets
|
16,403,914
|
373,844
|
2,204,731
|
(147,860 | ) |
18,834,629
|
||||||||||||||
Total
income (2)
|
2,186,127
|
421,256
|
794,161
|
(234,825 | ) |
3,166,719
|
||||||||||||||
Total
expenses (3)
|
(2,078,677 | ) | (421,169 | ) | (682,645 | ) |
234,825
|
(2,947,666 | ) | |||||||||||
Loss
on minority interest in subsidiaries
|
(1,453 | ) | (40 | ) | (37,523 | ) |
—
|
(39,016 | ) | |||||||||||
Total
net income
|
105,997
|
47
|
73,993
|
—
|
180,037
|
(1)
|
Includes
intercompany operations.
|
(2)
|
Includes:
financial income, service charge income and other
income.
|
(3)
|
Includes:
financial expenses, provision for loan losses, service charge expenses,
operating expenses, other expenses and income tax and tax on minimum
presumed income.
|
Loans
|
||||||||||||||||||||||||
December
31, 2006
|
December
31, 2005
|
December
31, 2004
|
||||||||||||||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||||||||||||||
Public
Sector
|
2,887,276
|
30.29 | % |
4,623,626
|
54.52 | % |
6,927,719
|
74.73 | % | |||||||||||||||
Corporate
|
3,309,501
|
34.71 | % |
1,786,387
|
21.06 | % |
1,093,271
|
11.80 | % | |||||||||||||||
Middle
market
|
1,488,459
|
15.61 | % |
880,266
|
10.38 | % |
462,995
|
5.00 | % | |||||||||||||||
Retail
|
1,848,947
|
19.39 | % |
1,191,197
|
14.04 | % |
784,738
|
8.47 | % | |||||||||||||||
Total
|
9,534,183
|
100.00 | % |
8,481,476
|
100.00 | % |
9,268,723
|
100.00 | % |
Deposits
|
||||||||||||||||||||||||
December
31, 2006
|
December
31, 2005
|
December
31, 2004
|
||||||||||||||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||||||||||||||
Corporate
|
2,216,764
|
17.73 | % |
2,788,669
|
26.28 | % |
2,712,696
|
30.16 | % | |||||||||||||||
Middle
market
|
1,502,736
|
12.01 | % |
1,106,171
|
10.42 | % |
1,023,288
|
11.38 | % | |||||||||||||||
Retail
|
8,786,256
|
70.26 | % |
6,718,246
|
63.30 | % |
5,257,796
|
58.46 | % | |||||||||||||||
Total
|
12,505,756
|
100.00 | % |
10,613,086
|
100.00 | % |
8,993,780
|
100.00 | % | |||||||||||||||
|
§
|
At
horizontal level, in terms of inter-area cooperation, in order
to ensure
that the value chain will find its way along an expected line of
action.
|
|
§
|
At
vertical level, by ensuring that all areas will participate and
be
involved in the attainment of those goals in which they are participants
in terms of creation.
|
|
§
|
Opening
of the Premier account,
|
|
§
|
Birthday
present card,
|
|
§
|
Specific
events (Avant Premier for successful movies, exclusive meeting
place at
the main beach of the Argentine coastline,
etc).
|
|
§
|
150
million transactions processed,
|
|
§
|
94%
of our general volume in comparable
transactions,
|
|
§
|
14%
increase over 2005.
|
|
§
|
Best
availability performance in its category during 2006 (according
to
Banelco)
|
|
§
|
A
total network with 566 operating
terminals
|
|
§
|
36
new ATMs in branches to increase or replace obsolete
terminals
|
|
§
|
23
ATMs established within companies which support the new
businesses
|
|
§
|
Pilot
implementation of animated propaganda and pre-printed publicity
rolls to
publicize our products and services
|
|
§
|
670
terminals to complement cashiers’
transactions
|
|
§
|
60,000
new customers
|
|
§
|
4.0
billion pesos transacted
|
|
§
|
25%
increase in operated volume
|
|
§
|
90%
of IVR usage
|
|
§
|
70,000
cutomer calls attended for Renault and Peugeot during the
year
|
|
§
|
10,000
foreign trade inquiries
|
|
§
|
9,000
service surveys
|
|
§
|
100%
of the claims received were processed within the established time
spans
established in the Code of Banking
Practices
|
|
§
|
Implementation
of Banca Móvil with a simpler operation concept in mobile
phones
|
|
§
|
400,000
messages sent out with banking information through Francés
Móvil
|
|
§
|
More
than 200,000 cellular navigation
transactions
|
Name
of Mutual Fund
|
Thousands
of
Pesos
|
|||
FBA
Acciones Globales
|
61,275
|
|||
FBA
Total
|
12,403
|
|||
FBA
Renta
|
14,327
|
|||
FBA
Renta Pesos
|
262,251
|
|||
FBA
Renta Dólares
|
4,300
|
|||
FBA
Bonos
|
11,249
|
|||
FBA
Calificado
|
442,297
|
|||
FBA
International
|
473
|
|||
FBA
Ahorro Dólares
|
12,615
|
|||
FBA
Ahorro Pesos
|
219,506
|
|||
FBA
Renta Fija
|
19,713
|
|||
FBA
Renta Premium
|
7,584
|
|||
FBA
Horizonte
|
74,846
|
|||
FBA
Acciones Latinoamericanas
|
8,868
|
|||
FBA
Bonos Argentina
|
16,578
|
|||
FBA
Brasil
|
900
|
|||
FBA
Europa
|
2,257
|
|||
FBA
EE.UU.
|
1,095
|
|||
FBA
Renta Corto Plazo
|
523
|
|||
Total
|
1,173,060
|
|||
Source: "Cámara Argentina de Fondos Comunes de Inversión" |
As
of December 31, 2006
|
||||||||||||||||||||||
Banking
Financial
|
||||||||||||||||||||||
BBVA
Banco Francés S.A.
|
PSA
Finance S.A.
|
Total
|
Pension
Fund Manager
|
Insurance
|
Eliminations
|
Total
|
||||||||||||||||
Total
assets
|
16,294,763
|
109,151
|
16,403,914
|
373,844
|
2,204,731
|
(147,860
|
)
|
18,834,629
|
||||||||||||||
Financial
income
|
1,514,699
|
7,030
|
1,521,729
|
44,237
|
384,026
|
(13,588
|
)
|
1,936,404
|
||||||||||||||
Service
charge income and other income
|
653,149
|
11,249
|
664,398
|
377,019
|
410,135
|
(221,237
|
)
|
1,230,315
|
||||||||||||||
Total
income (1)
|
2,167,848
|
18,279
|
2,186,127
|
421,256
|
794,161
|
(234,825
|
)
|
3,166,719
|
||||||||||||||
Financial
expenses
|
(581,603
|
)
|
(95
|
)
|
(581,698
|
)
|
(234
|
)
|
(1
|
)
|
13,588
|
(568,345
|
)
|
|||||||||
Allowances
for doubtful loans
|
(69,411
|
)
|
(714
|
)
|
(70,125
|
)
|
—
|
—
|
—
|
(70,125
|
)
|
|||||||||||
Operating
expenses
|
(711,655
|
)
|
(3,320
|
)
|
(714,975
|
)
|
(171,273
|
)
|
(43,750
|
)
|
2,594
|
(927,404
|
)
|
|||||||||
Other
expenses
|
(707,660
|
)
|
(4,219
|
)
|
(711,879
|
)
|
(249,662
|
)
|
(638,894
|
)
|
218,643
|
(1,381,792
|
)
|
|||||||||
Total
expenses (2)
|
(2,070,329
|
)
|
(8,348
|
)
|
(2,078,677
|
)
|
(421,169
|
)
|
(682,645
|
)
|
234,825
|
(2,947,666
|
)
|
|||||||||
Income
/ (Loss) on minority interest in subsidiaries
|
52
|
(1,505
|
)
|
(1,453
|
)
|
(40
|
)
|
(37,523
|
)
|
—
|
(39,016
|
)
|
||||||||||
Total
net income
|
97,571
|
8,426
|
105,997
|
47
|
73,993
|
—
|
180,037
|
(1)
|
Includes:
financial income, service charge income and other
income.
|
(2) | Includes: financial expenses, provision for loan losses, service charge expenses, operating expenses, other expenses and income tax and tax on minimum presumed income. |
As
of December 31, 2005
|
|||||||||||||||||||||||||
Banking
Financial
|
|||||||||||||||||||||||||
BBVA
Banco Francés S.A.
|
Credilogros
Cía. Financiera S.A.
|
PSA
Finance S.A.
|
Total
|
Pension
Fund Manager
|
Insurance
|
Eliminations
|
Total
|
||||||||||||||||||
Total
assets
|
13,839,847
|
86,734
|
64,107
|
13,990,688
|
346,858
|
1,787,736
|
(141,534
|
)
|
15,983,748
|
||||||||||||||||
Financial
income
|
1,412,036
|
27,469
|
3,093
|
1,442,598
|
40,067
|
183,627
|
(12,140
|
)
|
1,654,152
|
||||||||||||||||
Service
charge income and other income
|
757,620
|
16,267
|
5,965
|
779,852
|
294,071
|
299,133
|
(168,038
|
)
|
1,205,018
|
||||||||||||||||
Total
income (1)
|
2,169,656
|
43,736
|
9,058
|
2,222,450
|
334,138
|
482,760
|
(180,178
|
)
|
2,859,170
|
||||||||||||||||
Financial
expenses
|
(617,332
|
)
|
(3,551
|
)
|
(79
|
)
|
(620,962
|
)
|
(124
|
)
|
(3
|
)
|
12,140
|
(608,949
|
)
|
||||||||||
Allowances
for doubtful loans
|
(109,265
|
)
|
(4,970
|
)
|
(393
|
)
|
(114,628
|
)
|
—
|
—
|
—
|
(114,628
|
)
|
||||||||||||
Operating
expenses
|
(564,742
|
)
|
(24,751
|
)
|
(2,550
|
)
|
(592,043
|
)
|
(141,146
|
)
|
(44,302
|
)
|
1,656
|
(775,835
|
)
|
||||||||||
Other
expenses
|
(791,684
|
)
|
(3,703
|
)
|
(1,314
|
)
|
(796,701
|
)
|
(175,995
|
)
|
(419,089
|
)
|
166,382
|
(1,225,403
|
)
|
||||||||||
Total
expenses (2)
|
(2,083,023
|
)
|
(36,975
|
)
|
(4,336
|
)
|
(2,124,334
|
)
|
(317,265
|
)
|
(463,394
|
)
|
180,178
|
(2,724,815
|
)
|
||||||||||
Loss
on minority interest in subsidiaries
|
(1
|
)
|
(1,850
|
)
|
(999
|
)
|
(2,850
|
)
|
(7,843
|
)
|
(6,458
|
)
|
—
|
(17,151
|
)
|
||||||||||
Total
net income
|
86,632
|
4,911
|
3,723
|
95,266
|
9,030
|
12,908
|
—
|
117,204
|
As
of December 31, 2004
|
|||||||||||||||||||||||||
Banking
Financial
|
|||||||||||||||||||||||||
BBVA
Banco Francés S.A.
|
Credilogros
Cía. Financiera S.A.
|
PSA
Finance S.A.
|
Total
|
Pension
Fund Manager
|
Insurance
|
Eliminations
|
Total
|
||||||||||||||||||
Total
assets
|
14,275,608
|
98,603
|
29,119
|
14,403,330
|
311,420
|
1,545,654
|
(218,732
|
)
|
16,041,672
|
||||||||||||||||
Financial
income
|
951,586
|
23,915
|
1,251
|
976,752
|
35,812
|
148,700
|
(6,439
|
)
|
1,154,825
|
||||||||||||||||
Service
charge income and other income
|
675,257
|
14,191
|
1,340
|
690,788
|
245,905
|
514,454
|
(136,887
|
)
|
1,314,260
|
||||||||||||||||
Total
income (1)
|
1,626,843
|
38,106
|
2,591
|
1,667,540
|
281,717
|
663,154
|
(143,326
|
)
|
2,469,085
|
||||||||||||||||
Financial
expenses
|
(461,014
|
)
|
(1,727
|
)
|
(64
|
)
|
(462,805
|
)
|
(1,642
|
)
|
(352
|
)
|
6,439
|
(458,360
|
)
|
||||||||||
Allowances
for doubtful loans
|
(49,464
|
)
|
(2,260
|
)
|
(278
|
)
|
(52,002
|
)
|
—
|
—
|
—
|
(52,002
|
)
|
||||||||||||
Operating
expenses
|
(474,568
|
)
|
(26,907
|
)
|
(2,018
|
)
|
(503,493
|
)
|
(133,296
|
)
|
(44,143
|
)
|
1,103
|
(679,829
|
)
|
||||||||||
Other
expenses
|
(719,669
|
)
|
(5,495
|
)
|
(383
|
)
|
(725,547
|
)
|
(141,392
|
)
|
(588,884
|
)
|
135,784
|
(1,320,039
|
)
|
||||||||||
Total
expenses (2)
|
(1,704,715
|
)
|
(36,389
|
)
|
(2,743
|
)
|
(1,743,847
|
)
|
(276,330
|
)
|
(633,379
|
)
|
143,326
|
(2,510,230
|
)
|
||||||||||
Loss
on minority interest in subsidiaries
|
(7
|
)
|
(779
|
)
|
505
|
(281
|
)
|
(2,484
|
)
|
(10,136
|
)
|
—
|
(12,901
|
)
|
|||||||||||
Total
net (loss) / income
|
(77,879
|
)
|
938
|
353
|
(76,588
|
)
|
2,903
|
19,639
|
—
|
(54,046
|
)
|
(1)
|
Includes:
financial income, service charge income and other
income.
|
(2)
|
Includes:
financial expenses, provision for loan losses, service charge expenses,
operating expenses, other expenses and income tax and tax on minimum
presumed income.
|
(3)
|
Restated
from its original version to apply the adjustments to prior years
income
to these Consolidated Financial Statements relating to Argentine
Central
Bank regulations (see Note 3.4.18. to the Consolidated Financial
Statements).
|
Banco
Francés
|
69.5271
|
%
|
||
Banco
Bilbao Vizcaya Argentaria S.A.
|
29.9475
|
%
|
||
Inversora
Otar S.A.
|
0.5254
|
%
|
(1)
|
On
February 4, 2004, Atuel Fideicomisos S.A. acquired 95% of the capital
stock of Francés Administradora de Inversiones S.A. from Banco Francés
(Cayman) Limited.
|
Subsidiary
or Associated Company
|
Country
of
Incorporation/
Residence
|
Banco
Francés
Ownership
and
Voting Power
|
Principal
Activity
|
Stockholders’
Equity
(in
millions of pesos) (4)
|
|||||||||
Atuel
Fideicomisos S.A. and subsidiary (1)(3)
|
Argentina
|
99.99
|
%
|
Trust
services
|
20.2
|
||||||||
Francés
Valores Sociedad de Bolsa S.A. (1)(3)
|
Argentina
|
94.97
|
%
|
Stock
exchange brokerage
|
6.0
|
||||||||
Consolidar
Cía. de Seguros de Retiro S.A. (1)(3)
|
Argentina
|
66.67
|
%
|
Insurance
|
110.5
|
||||||||
Consolidar
Seguros de Vida S.A. (1)(3)
|
Argentina
|
65.96
|
%
|
Insurance
|
130.4
|
||||||||
Consolidar
AFJP S.A. (1)(3)
|
Argentina
|
53.89
|
%
|
Pension
and Retirement Fund Administrators
|
263.3
|
||||||||
PSA
Compañía Financiera S.A. (1)(3)
|
Argentina
|
50.00
|
%
|
Financial
Institution
|
27.1
|
||||||||
Rombo
Compañía Financiera S.A. (3)
|
Argentina
|
40.00
|
%
|
Financial
Institution
|
33.4
|
||||||||
Consolidar
ART S.A. (3)
|
Argentina
|
12.50
|
%
|
Workers
Compensation Insurance
|
173.0
|
||||||||
BBVA
Consolidar Seguros S.A. (3)
|
Argentina
|
12.22
|
%
|
Insurance
Company
|
48.6
|
||||||||
Assurex
S.A. (2)
|
Argentina
|
12.50
|
%
|
Insurance
Broker
|
0.3
|
(1)
|
For
information regarding the number of shares we hold in such entities,
see
Note 2. to the Consolidated Financial
Statements.
|
(2)
|
Total
stockholders’ equity as of June 30,
2005.
|
(3)
|
Total
stockholders’ equity as of December 31,
2006.
|
(4)
|
Statutory
Stockholders’ Equity, adjusted for purposes of consolidation so as to
apply an accounting criterion being uniform with that of Banco Francés, if
applicable.
|
Investment
|
Country
|
%
of Shares
Owned
|
Principal
Activity
|
Total
Stockholders’
Equity
(in
millions
of pesos)
|
|||||||||
Coelsa
S.A.(1)
|
Argentina
|
11.39
|
%
|
Clearing
house
|
1.6
|
||||||||
Interbanking
S.A. (1)
|
Argentina
|
9.09
|
%
|
Information
services for financial markets
|
12.5
|
||||||||
Argencontrol
S.A.
(1)
|
Argentina
|
7.77
|
%
|
Agent
Mandatary
|
0.9
|
||||||||
Sedesa
S.A. (1)
|
Argentina
|
12.57
|
%
|
Deposit
Guarantee Fund
|
12.0
|
||||||||
Banelco
S.A. (2)
|
Argentina
|
10.91
|
%
|
Nationwide
ATM network & credit card Adminstration
|
54.2
|
||||||||
Visa
Argentina S.A. (3)
|
Argentina
|
5.00
|
%
|
Credit
card issuer
|
24.2
|
||||||||
AIG
Latin American Fund (4)
|
Virgin
Islands
|
19.50
|
%
|
Investment
Funds
|
27.6
|
(1)
|
Total
Stockholders’ Equity as of December 31,
2005.
|
(2)
|
Total
Stockholders’ Equity as of November 30,
2006.
|
(3)
|
Total
Stockholders’ Equity as of May 31,
2006.
|
(4)
|
Total
Stockholders’ Equity as of December 31, 2000. The Bank maintains an
allowance for the 100% of the amounts.
|
Rp
=
|
1
+
Np
|
-
1
|
Rd
=
|
(1
+
Nd)(1 + D)
|
-
1
|
||
1
+
I
|
1
+
I
|
Rd=
|
(1+0.20)(1+0.15)
|
-
1
|
=
|
10.4%
per annum
|
||
1+0.25
|
Fiscal
Years ended December 31,
|
||||||||||||||||||||||||||||
2006
|
2005
|
2004
|
||||||||||||||||||||||||||
Average
balance (1)
|
Interest
earned/
paid
|
Average
real
rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
real
rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
real
rate (2)
|
||||||||||||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||||||
Interest-earning
assets
|
||||||||||||||||||||||||||||
Government
securities (3)
|
||||||||||||||||||||||||||||
Pesos
|
3,349,751
|
551,972
|
8.68
|
%
|
2,103,943
|
207,703
|
(0.65
|
)%
|
1,060,651
|
170,136
|
7.53
|
%
|
||||||||||||||||
Dollars
|
248,714
|
38,763
|
9.20
|
%
|
542,603
|
6,242
|
(6.76
|
)%
|
870,829
|
33,282
|
0.13
|
%
|
||||||||||||||||
Total
|
3,598,465
|
590,735
|
8.72
|
%
|
2,646,546
|
213,945
|
(1.90
|
)%
|
1,931,480
|
203,418
|
4.19
|
%
|
||||||||||||||||
Loans
(4)
|
||||||||||||||||||||||||||||
Private
Sector
|
||||||||||||||||||||||||||||
Pesos
|
4,098,288
|
514,875
|
5.03
|
%
|
2,640,539
|
304,134
|
0.84
|
%
|
1,680,780
|
229,900
|
5.34
|
%
|
||||||||||||||||
Dollars
|
1,190,840
|
62,930
|
(0.53
|
)%
|
695,066
|
37,074
|
(2.90
|
)%
|
496,364
|
26,471
|
1.59
|
%
|
||||||||||||||||
Total
|
5,289,128
|
577,805
|
3.78
|
%
|
3,335,605
|
341,208
|
0.06
|
%
|
2,177,144
|
256,371
|
4.48
|
%
|
||||||||||||||||
Public
Sector
|
||||||||||||||||||||||||||||
Pesos
|
3,444,212
|
548,763
|
8.18
|
%
|
6,150,407
|
899,429
|
3.65
|
%
|
6,561,812
|
555,672
|
0.51
|
%
|
||||||||||||||||
Dollars
|
—
|
—
|
—
|
49,099
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||||
Total
|
3,444,212
|
548,763
|
8.18
|
%
|
6,199,506
|
899,429
|
3.62
|
%
|
6,561,812
|
555,672
|
0.51
|
%
|
||||||||||||||||
Deposits
with the Central Bank
|
||||||||||||||||||||||||||||
Pesos
|
102,384
|
10,714
|
3.07
|
%
|
729,166
|
17,434
|
(7.41
|
)%
|
108,931
|
643
|
(6.79
|
)%
|
||||||||||||||||
Dollars
|
570,220
|
6,577
|
(4.43
|
)%
|
431,764
|
7,927
|
(6.13
|
)%
|
—
|
—
|
—
|
|||||||||||||||||
Total
|
672,604
|
17,291
|
(3.29
|
)%
|
1,160,930
|
25,361
|
(6.94
|
)%
|
108,931
|
643
|
(6.79
|
)%
|
||||||||||||||||
Other
assets
|
||||||||||||||||||||||||||||
Pesos
|
1,064,259
|
116,124
|
3.49
|
%
|
1,164,771
|
85,821
|
(2.91
|
)%
|
787,658
|
44,587
|
(2.09
|
)%
|
||||||||||||||||
Dollars
|
116,023
|
7,179
|
0.32
|
%
|
101,121
|
15,422
|
6.24
|
%
|
262,881
|
16,666
|
2.56
|
%
|
||||||||||||||||
Total
|
1,180,282
|
123,303
|
3.18
|
%
|
1,265,892
|
101,243
|
(2.18
|
)%
|
1,050,539
|
61,253
|
(0.93
|
)%
|
||||||||||||||||
Total
interest-earning assets
|
||||||||||||||||||||||||||||
Pesos
|
12,058,894
|
1,742,448
|
6.79
|
%
|
12,788,826
|
1,514,521
|
1.13
|
%
|
10,199,832
|
1,000,938
|
1.76
|
%
|
||||||||||||||||
Dollars
|
2,125,797
|
115,449
|
(0.39
|
)%
|
1,819,653
|
66,665
|
(4.44
|
)%
|
1,630,074
|
76,419
|
0.97
|
%
|
||||||||||||||||
Total
|
14,184,691
|
1,857,897
|
5.72
|
%
|
14,608,479
|
1,581,186
|
0.44
|
%
|
11,829,906
|
1,077,357
|
1.65
|
%
|
||||||||||||||||
Fiscal
Years ended December 31,
|
||||||||||||||||||||||||||||
2006
|
2005
|
2004
|
||||||||||||||||||||||||||
Average
balance (1) |
Interest
earned/
paid
|
Average
real
rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
real
rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
real
rate (2)
|
||||||||||||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||||||||||||||||||
Non
interest-earning assets
|
||||||||||||||||||||||||||||
Cash
and due from banks
|
||||||||||||||||||||||||||||
Pesos
|
1,140,970
|
—
|
—
|
323,807
|
—
|
—
|
1,000,398
|
—
|
—
|
|||||||||||||||||||
Dollars
|
385,450
|
— |
—
|
315,285
|
—
|
—
|
630,871
|
—
|
—
|
|||||||||||||||||||
Total
|
1,526,420
|
—
|
—
|
639,092
|
—
|
— |
1,631,269
|
—
|
—
|
|||||||||||||||||||
Investments
in other companies
|
|
|||||||||||||||||||||||||||
Pesos
|
51,153
|
—
|
—
|
62,218
|
—
|
—
|
295,773
|
—
|
—
|
|||||||||||||||||||
Dollars
|
820
|
—
|
—
|
783
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||||
Total
|
51,973
|
—
|
—
|
63,001
|
—
|
—
|
295,773
|
—
|
—
|
|||||||||||||||||||
Property
and equipment and miscellaneous and intangible assets and items
pending of
allocation
|
||||||||||||||||||||||||||||
Pesos
|
964,129
|
—
|
—
|
1,201,801
|
—
|
—
|
1,427,228
|
—
|
—
|
|||||||||||||||||||
Total
|
964,129
|
—
|
—
|
1,201,801
|
—
|
—
|
1,427,228
|
—
|
—
|
|||||||||||||||||||
Allowance
for loan losses
|
||||||||||||||||||||||||||||
Pesos
|
(105,136
|
)
|
—
|
—
|
(172,559
|
)
|
—
|
—
|
(192,320
|
)
|
—
|
—
|
||||||||||||||||
Dollars
|
(28,288
|
)
|
—
|
—
|
(69,057
|
)
|
—
|
—
|
(161,137
|
)
|
—
|
—
|
||||||||||||||||
Total
|
(133,424
|
)
|
—
|
—
|
(241,616
|
)
|
—
|
—
|
(353,457
|
)
|
—
|
—
|
||||||||||||||||
Other
assets
|
||||||||||||||||||||||||||||
Pesos
|
841,928
|
—
|
—
|
541,249
|
—
|
—
|
275,729
|
—
|
—
|
|||||||||||||||||||
Dollars
|
52,643
|
—
|
—
|
63,143
|
—
|
—
|
65,698
|
—
|
—
|
|||||||||||||||||||
Total
|
894,571
|
—
|
—
|
604,392
|
—
|
—
|
341,427
|
—
|
—
|
|||||||||||||||||||
Total
non interest-earning assets
|
||||||||||||||||||||||||||||
Pesos
|
2,893,044
|
—
|
—
|
1,956,516
|
—
|
—
|
2,806,808
|
—
|
—
|
|||||||||||||||||||
Dollars
|
410,625
|
—
|
—
|
310,154
|
—
|
—
|
535,432
|
—
|
—
|
|||||||||||||||||||
Total
|
3,303,669
|
—
|
—
|
2,266,670
|
—
|
—
|
3,342,240
|
—
|
—
|
|||||||||||||||||||
TOTAL
ASSETS
|
||||||||||||||||||||||||||||
Pesos
|
14,951,938
|
—
|
—
|
14,745,342
|
—
|
—
|
13,006,640
|
—
|
—
|
|||||||||||||||||||
Dollars
|
2,536,422
|
—
|
—
|
2,129,807
|
—
|
—
|
2,165,506
|
—
|
—
|
|||||||||||||||||||
Total
|
17,488,360
|
—
|
—
|
16,875,149
|
—
|
—
|
15,172,146
|
—
|
—
|
|||||||||||||||||||
(1)
|
Average
Balances are derived from month-end
balances.
|
(2)
|
Annualized
on a 360-day basis.
|
(3)
|
Includes
trading gains and losses in all fiscal years. Unrealized gains and
losses
arising from changes in the market value of our trading portfolio
of
Government Securities and yield on our investment portfolio of Government
Securities are included.
|
(4)
|
Loan
amounts are stated before deduction of the allowance for loan losses.
Non-accrual loans are included in loans as interest-earning
assets.
|
|
Fiscal
Years ended December 31,
|
|||||||||||||||||||||||||||
2006
|
2005
|
2004
|
||||||||||||||||||||||||||
Average
balance (1)
|
Interest
earned/
paid
|
Average
real
rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
real
rate (2)
|
Average
balance (1) |
Interest
earned/
paid
|
Average
real
rate (2)
|
||||||||||||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||||||||||||||||||
LIABILITIES
|
||||||||||||||||||||||||||||
Interest-bearing
liabilities
|
||||||||||||||||||||||||||||
Savings
accounts
|
||||||||||||||||||||||||||||
Pesos
|
2,342,303
|
4,224
|
(6.52
|
)%
|
2,189,515
|
5,536
|
(9.35
|
)%
|
2,061,226
|
10,652
|
(6.86
|
)%
|
||||||||||||||||
Dollars
|
772,591
|
587
|
(5.45
|
)%
|
583,270
|
379
|
(7.76
|
)%
|
363,986
|
306
|
(3.47
|
)%
|
||||||||||||||||
Total
|
3,114,894
|
4,811
|
(6.26
|
)%
|
2,772,785
|
5,915
|
(9.01
|
)%
|
2,425,212
|
10,958
|
(6.35
|
)%
|
||||||||||||||||
Time
deposits
|
||||||||||||||||||||||||||||
Pesos
|
5,112,665
|
425,598
|
1.08
|
%
|
4,852,674
|
332,452
|
(3.38
|
)%
|
3,972,531
|
176,391
|
(3.22
|
)%
|
||||||||||||||||
Dollars
|
737,069
|
12,119
|
(3.97
|
)%
|
379,025
|
4,244
|
(6.79
|
)%
|
195,105
|
1,925
|
(2.60
|
)%
|
||||||||||||||||
Total
|
5,849,734
|
437,717
|
0.44
|
%
|
5,231,699
|
336,696
|
(3.63
|
)%
|
4,167,636
|
178,316
|
(3.19
|
)%
|
||||||||||||||||
Borrowing
from the Central Bank
|
||||||||||||||||||||||||||||
Pesos
|
72,538
|
7,663
|
3.17
|
%
|
1,247,803
|
171,537
|
2.86
|
%
|
1,947,353
|
170,252
|
0.77
|
%
|
||||||||||||||||
Dollars
|
1,325
|
2
|
(5.38
|
)%
|
1,503
|
3
|
(7.63
|
)%
|
2,272
|
21
|
(2.66
|
)%
|
||||||||||||||||
Total
|
73,863
|
7,665
|
3.01
|
%
|
1,249,306
|
171,540
|
2.84
|
%
|
1,949,625
|
170,273
|
0.76
|
%
|
||||||||||||||||
Borrowings
from other financial institutions
|
||||||||||||||||||||||||||||
Pesos
|
98,702
|
9,046
|
1.86
|
%
|
38,267
|
1,483
|
(6.07
|
)%
|
67,013
|
1,727
|
(4.95
|
)%
|
||||||||||||||||
Dollars
|
306,806
|
19,243
|
0.40
|
%
|
257,832
|
13,373
|
(3.04
|
)%
|
469,015
|
13,690
|
(0.74
|
)%
|
||||||||||||||||
Total
|
405,508
|
28,289
|
0.76
|
%
|
296,099
|
14,856
|
(3.43
|
)%
|
536,028
|
15,417
|
(1.27
|
)%
|
||||||||||||||||
Corporate
bonds
|
||||||||||||||||||||||||||||
Pesos
|
—
|
—
|
—
|
—
|
—
|
—
|
8,573
|
1,232
|
5.98
|
%
|
||||||||||||||||||
Dollars
|
271,742
|
18,732
|
0.99
|
%
|
317,516
|
15,612
|
(3.29
|
)%
|
406,627
|
10,929
|
(0.96
|
)%
|
||||||||||||||||
Total
|
271,742
|
18,732
|
0.99
|
%
|
317,516
|
15,612
|
(3.29
|
)%
|
415,200
|
12,161
|
(0.82
|
)%
|
||||||||||||||||
Other
liabilities
|
||||||||||||||||||||||||||||
Pesos
|
428,426
|
26,932
|
(0.83
|
)%
|
391,081
|
31,522
|
(2.29
|
)%
|
528,554
|
25,426
|
(2.88
|
)%
|
||||||||||||||||
Dollars
|
37,512
|
10
|
(5.50
|
)%
|
37,018
|
43
|
(7.71
|
)%
|
143,762
|
2,318
|
(2.00
|
)%
|
||||||||||||||||
Total
|
465,938
|
26,942
|
(1.20
|
)%
|
428,099
|
31,565
|
(2.76
|
)%
|
672,316
|
27,744
|
(2.69
|
)%
|
||||||||||||||||
Total
interest-bearing liabilities
|
||||||||||||||||||||||||||||
Pesos
|
8,054,634
|
473,463
|
(1.21
|
)%
|
8,719,340
|
542,530
|
(3.95
|
)%
|
8,585,250
|
385,680
|
(3.17
|
)%
|
||||||||||||||||
Dollars
|
2,127,045
|
50,693
|
(3.27
|
)%
|
1,576,164
|
33,654
|
(5.85
|
)%
|
1,580,767
|
29,189
|
(1.77
|
)%
|
||||||||||||||||
Total
|
10,181,679
|
524,156
|
(1.64
|
)%
|
10,295,504
|
576,184
|
(4.24
|
)%
|
10,166,017
|
414,869
|
(2.96
|
)%
|
||||||||||||||||
Fiscal
Years ended December 31,
|
||||||||||||||||||||||||||||
2006
|
2005
|
2004
|
||||||||||||||||||||||||||
Average
balance (1)
|
Interest
earned/
paid
|
Average
real
rate (2)
|
Average
balance (1)
|
|
Interest
earned/
paid
|
Average
real
rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
real
rate (2)
|
|||||||||||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||||||||||||||||||
Non-interest
bearing
liabilities
and stockholders’
equity
|
||||||||||||||||||||||||||||
Demand
accounts
|
||||||||||||||||||||||||||||
Pesos
|
2,094,140
|
—
|
—
|
1,636,017
|
—
|
—
|
1,122,143
|
—
|
—
|
|||||||||||||||||||
Dollars
|
24,537
|
—
|
—
|
13,007
|
—
|
—
|
5,578
|
—
|
—
|
|||||||||||||||||||
Total
|
2,118,677
|
—
|
—
|
1,649,024
|
—
|
—
|
1,127,721
|
—
|
—
|
|||||||||||||||||||
Other
liabilities
|
||||||||||||||||||||||||||||
Pesos
|
2,917,529
|
—
|
—
|
2,789,191
|
—
|
—
|
2,100,406
|
—
|
—
|
|||||||||||||||||||
Dollars
|
290,635
|
—
|
—
|
210,525
|
—
|
—
|
180,886
|
—
|
—
|
|||||||||||||||||||
Total
|
3,208,164
|
—
|
—
|
2,999,716
|
—
|
—
|
2,281,292
|
—
|
—
|
|||||||||||||||||||
Minority
interest
|
||||||||||||||||||||||||||||
Pesos
|
197,278
|
—
|
—
|
182,288
|
—
|
—
|
167,069
|
—
|
—
|
|||||||||||||||||||
Total
|
197,278
|
—
|
—
|
182,288
|
—
|
—
|
167,069
|
—
|
—
|
|||||||||||||||||||
Stockholders’
equity
|
||||||||||||||||||||||||||||
Pesos
|
1,782,562
|
—
|
—
|
1,748,617
|
—
|
—
|
1,430,047
|
—
|
—
|
|||||||||||||||||||
Total
|
1,782,562
|
—
|
—
|
1,748,617
|
—
|
—
|
1,430,047
|
—
|
—
|
|||||||||||||||||||
Total
non-interest bearing liabilities and stockholders equity
|
||||||||||||||||||||||||||||
Pesos
|
6,991,509
|
—
|
—
|
6,356,113
|
—
|
—
|
4,819,665
|
—
|
—
|
|||||||||||||||||||
Dollars
|
315,172
|
—
|
—
|
223,532
|
—
|
—
|
186,464
|
—
|
—
|
|||||||||||||||||||
Total
|
7,306,681
|
—
|
—
|
6,579,645
|
—
|
—
|
5,006,129
|
—
|
—
|
|||||||||||||||||||
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||||||||||||||||||||||
Pesos
|
15,046,143
|
—
|
—
|
15,075,453
|
—
|
—
|
13,404,915
|
—
|
—
|
|||||||||||||||||||
Dollars
|
2,442,217
|
—
|
—
|
1,799,696
|
—
|
—
|
1,767,231
|
—
|
—
|
|||||||||||||||||||
Total
|
17,488,360
|
—
|
—
|
16,875,149
|
—
|
—
|
15,172,146
|
—
|
—
|
|||||||||||||||||||
(1)
|
Average
balances are derived from month-end
balances.
|
(2)
|
Annualized
on a 360-day basis.
|
Fiscal
Years ended December 31,
|
||||||||||||||||||||||||||||
2006
|
2005
|
2004
|
||||||||||||||||||||||||||
Average
balance (1) |
Interest
earned/
paid
|
Average
nominal
rate (2)
|
Average
balance (1) |
Interest
earned/
paid
|
Average
Nominal
rate (2)
|
Average
balance (1) |
Interest
earned/
paid
|
Average
nominal
rate (2)
|
||||||||||||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||||||
Interest-earning
assets
|
||||||||||||||||||||||||||||
Government
securities (3)
|
||||||||||||||||||||||||||||
Pesos
|
3,349,751
|
551,972
|
16.48
|
%
|
2,103,943
|
207,703
|
9.87
|
%
|
1,060,651
|
170,136
|
16.04
|
%
|
||||||||||||||||
Dollars
|
248,714
|
38,763
|
15.59
|
%
|
542,603
|
6,242
|
1.15
|
%
|
870,829
|
33,282
|
3.82
|
%
|
||||||||||||||||
Total
|
3,598,465
|
590,735
|
16.42
|
%
|
2,646,546
|
213,945
|
8.08
|
%
|
1,931,480
|
203,418
|
10.53
|
%
|
||||||||||||||||
Loans
(4)
|
||||||||||||||||||||||||||||
Private
Sector
|
||||||||||||||||||||||||||||
Pesos
|
4,098,288
|
514,875
|
12.56
|
%
|
2,640,539
|
304,134
|
11.52
|
%
|
1,680,780
|
229,900
|
13.68
|
%
|
||||||||||||||||
Dollars
|
1,190,840
|
62,930
|
5.28
|
%
|
695,066
|
37,074
|
5.33
|
%
|
496,364
|
26,471
|
5.33
|
%
|
||||||||||||||||
Total
|
5,289,128
|
577,805
|
10.92
|
%
|
3,335,605
|
341,208
|
10.23
|
%
|
2,177,144
|
256,371
|
11.78
|
%
|
||||||||||||||||
Public
Sector
|
||||||||||||||||||||||||||||
Pesos
|
3,444,212
|
548,763
|
15.93
|
%
|
6,150,407
|
899,429
|
14.62
|
%
|
6,561,812
|
555,672
|
8.47
|
%
|
||||||||||||||||
Dollars
|
—
|
—
|
—
|
49,099
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||||
Total
|
3,444,212
|
548,763
|
15.93
|
%
|
6,199,506
|
899,429
|
14.51
|
%
|
6,561,812
|
555,672
|
8.47
|
%
|
||||||||||||||||
Deposits
with the Central Bank
|
||||||||||||||||||||||||||||
Pesos
|
102,384
|
10,714
|
10.46
|
%
|
729,166
|
17,434
|
2.39
|
%
|
108,931
|
643
|
0.59
|
%
|
||||||||||||||||
Dollars
|
570,220
|
6,577
|
1.15
|
%
|
431,764
|
7,927
|
1.84
|
%
|
—
|
—
|
—
|
|||||||||||||||||
Total
|
672,604
|
17,291
|
2.57
|
%
|
1,160,930
|
25,361
|
2.18
|
%
|
108,931
|
643
|
0.59
|
%
|
||||||||||||||||
Other
assets
|
||||||||||||||||||||||||||||
Pesos
|
1,064,259
|
116,124
|
10.91
|
%
|
1,164,771
|
85,821
|
7.37
|
%
|
787,658
|
44,587
|
5.66
|
%
|
||||||||||||||||
Dollars
|
116,023
|
7,179
|
6.19
|
%
|
101,121
|
15,422
|
15.25
|
%
|
262,881
|
16,666
|
6.34
|
%
|
||||||||||||||||
Total
|
1,180,282
|
123,303
|
10.45
|
%
|
1,265,892
|
101,243
|
8.00
|
%
|
1,050,539
|
61,253
|
5.83
|
%
|
||||||||||||||||
Total
interest-earning assets
|
||||||||||||||||||||||||||||
Pesos
|
12,058,894
|
1,742,448
|
14.45
|
%
|
12,788,826
|
1,514,521
|
11.84
|
%
|
10,199,832
|
1,000,938
|
9.81
|
%
|
||||||||||||||||
Dollars
|
2,125,797
|
115,449
|
5.43
|
%
|
1,819,653
|
66,665
|
3.66
|
%
|
1,630,074
|
76,419
|
4.69
|
%
|
||||||||||||||||
Total
|
14,184,691
|
1,857,897
|
13.10
|
%
|
14,608,479
|
1,581,186
|
10.82
|
%
|
11,829,906
|
1,077,357
|
9.11
|
%
|
||||||||||||||||
Fiscal
Years ended December 31,
|
||||||||||||||||||||||||||||
2006
|
2005
|
2004
|
||||||||||||||||||||||||||
Average
balance (1)
|
Interest
earned/
paid
|
Average
nominal
rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
Nominal
rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
nominal
rate (2)
|
||||||||||||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||||||||||||||||||
Non
interest-earning assets
|
||||||||||||||||||||||||||||
Cash
and due from banks
|
||||||||||||||||||||||||||||
Pesos
|
1,140,970
|
—
|
—
|
323,807
|
—
|
—
|
1,000,398
|
—
|
—
|
|||||||||||||||||||
Dollars
|
385,450
|
—
|
—
|
315,285
|
—
|
—
|
630,871
|
—
|
—
|
|||||||||||||||||||
Total
|
1,526,420
|
—
|
—
|
639,092
|
—
|
—
|
1,631,269
|
—
|
—
|
|||||||||||||||||||
Investments
in other companies
|
||||||||||||||||||||||||||||
Pesos
|
51,153
|
—
|
—
|
62,218
|
—
|
—
|
295,773
|
—
|
—
|
|||||||||||||||||||
Dollars
|
820
|
—
|
—
|
783
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||||
Total
|
51,973
|
—
|
—
|
63,001
|
—
|
—
|
295,773
|
—
|
—
|
|||||||||||||||||||
Property
and equipment and miscellaneous and intangible assets and items pending
of
allocation
|
||||||||||||||||||||||||||||
Pesos
|
964,129
|
—
|
—
|
1,201,801
|
—
|
—
|
1,427,228
|
—
|
—
|
|||||||||||||||||||
Total
|
964,129
|
—
|
—
|
1,201,801
|
—
|
—
|
1,427,228
|
—
|
—
|
|||||||||||||||||||
Allowance
for loan losses
|
||||||||||||||||||||||||||||
Pesos
|
(105,136
|
)
|
—
|
—
|
(172,559
|
)
|
—
|
—
|
(192,320
|
)
|
—
|
—
|
||||||||||||||||
Dollars
|
(28,288
|
)
|
—
|
—
|
(69,057
|
)
|
—
|
—
|
(161,137
|
)
|
—
|
—
|
||||||||||||||||
Total
|
(133,424
|
)
|
—
|
—
|
(241,616
|
)
|
—
|
—
|
(353,457
|
)
|
—
|
—
|
||||||||||||||||
Other
assets
|
||||||||||||||||||||||||||||
Pesos
|
841,928
|
—
|
—
|
541,249
|
—
|
—
|
275,729
|
—
|
—
|
|||||||||||||||||||
Dollars
|
52,643
|
—
|
—
|
63,143
|
—
|
—
|
65,698
|
—
|
—
|
|||||||||||||||||||
Total
|
894,571
|
—
|
—
|
604,392
|
—
|
—
|
341,427
|
—
|
—
|
|||||||||||||||||||
Total
non interest-earning assets
|
||||||||||||||||||||||||||||
Pesos
|
2,893,044
|
—
|
—
|
1,956,516
|
—
|
—
|
2,806,808
|
—
|
—
|
|||||||||||||||||||
Dollars
|
410,625
|
—
|
—
|
310,154
|
—
|
—
|
535,432
|
—
|
—
|
|||||||||||||||||||
Total
|
3,303,669
|
—
|
—
|
2,266,670
|
—
|
—
|
3,342,240
|
—
|
—
|
|||||||||||||||||||
TOTAL
ASSETS
|
||||||||||||||||||||||||||||
Pesos
|
14,951,938
|
—
|
—
|
14,745,342
|
—
|
—
|
13,006,640
|
—
|
—
|
|||||||||||||||||||
Dollars
|
2,536,422
|
—
|
—
|
2,129,807
|
—
|
—
|
2,165,506
|
—
|
—
|
|||||||||||||||||||
Total
|
17,488,360
|
—
|
—
|
16,875,149
|
—
|
—
|
15,172,146
|
—
|
—
|
|||||||||||||||||||
(1)
|
Average
Balances are dived from month-end
balances.
|
(2)
|
Annualized
on a 360-day basis.
|
(3)
|
Includes
trading gains and losses in all fiscal years. Unrealized gains and
losses
arising from changes in the market value of our trading portfolio
of
Government Securities and yield on our investment portfolio of Government
Securities are included.
|
(4)
|
Loan
amounts are stated before deduction of the allowance for loan losses.
Non-accrual loans are included in loans as interest-earning
assets.
|
Fiscal
Years ended December 31,
|
||||||||||||||||||||||||||||
2006
|
2005
|
2004
|
||||||||||||||||||||||||||
Average
balance (1)
|
Interest
earned/
paid
|
Average
nominal
rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
Nominal
rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
nominal
rate (2)
|
||||||||||||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||||||||||||||||||
LIABILITIES
|
||||||||||||||||||||||||||||
Interest-bearing
liabilities
|
||||||||||||||||||||||||||||
Savings
accounts
|
||||||||||||||||||||||||||||
Pesos
|
2,342,303
|
4,224
|
0.18
|
%
|
2,189,515
|
5,536
|
0.25
|
%
|
2,061,226
|
10,652
|
0.52
|
%
|
||||||||||||||||
Dollars
|
772,591
|
587
|
0.08
|
%
|
583,270
|
379
|
0.07
|
%
|
363,986
|
306
|
0.08
|
%
|
||||||||||||||||
Total
|
3,114,894
|
4,811
|
0.15
|
%
|
2,772,785
|
5,915
|
0.21
|
%
|
2,425,212
|
10,958
|
0.45
|
%
|
||||||||||||||||
Time
deposits
|
||||||||||||||||||||||||||||
Pesos
|
5,112,665
|
425,598
|
8.32
|
%
|
4,852,674
|
332,452
|
6.85
|
%
|
3,972,531
|
176,391
|
4.44
|
%
|
||||||||||||||||
Dollars
|
737,069
|
12,119
|
1.64
|
%
|
379,025
|
4,244
|
1.12
|
%
|
195,105
|
1,925
|
0.99
|
%
|
||||||||||||||||
Total
|
5,849,734
|
437,717
|
7.48
|
%
|
5,231,699
|
336,696
|
6.44
|
%
|
4,167,636
|
178,316
|
4.28
|
%
|
||||||||||||||||
Borrowing
from the Central Bank
|
||||||||||||||||||||||||||||
Pesos
|
72,538
|
7,663
|
10.56
|
%
|
1,247,803
|
171,537
|
13.75
|
%
|
1,947,353
|
170,252
|
8.74
|
%
|
||||||||||||||||
Dollars
|
1,325
|
2
|
0.15
|
%
|
1,503
|
3
|
0.21
|
%
|
2,272
|
21
|
0.93
|
%
|
||||||||||||||||
Total
|
73,863
|
7,665
|
10.38
|
%
|
1,249,306
|
171,540
|
13.73
|
%
|
1,949,625
|
170,273
|
8.73
|
%
|
||||||||||||||||
Borrowings
from other financial institutions
|
||||||||||||||||||||||||||||
Pesos
|
98,702
|
9,046
|
9.16
|
%
|
38,267
|
1,483
|
3.87
|
%
|
67,013
|
1,727
|
2.58
|
%
|
||||||||||||||||
Dollars
|
306,806
|
19,243
|
6.27
|
%
|
257,832
|
13,373
|
5.19
|
%
|
469,015
|
13,690
|
2.92
|
%
|
||||||||||||||||
Total
|
405,508
|
28,289
|
6.98
|
%
|
296,099
|
14,856
|
5.02
|
%
|
536,028
|
15,417
|
2.88
|
%
|
||||||||||||||||
Corporate
bonds
|
||||||||||||||||||||||||||||
Pesos
|
—
|
—
|
—
|
—
|
—
|
—
|
8,573
|
1,232
|
14.37
|
%
|
||||||||||||||||||
Dollars
|
271,742
|
18,732
|
6.89
|
%
|
317,516
|
15,612
|
4.92
|
%
|
406,627
|
10,929
|
2.69
|
%
|
||||||||||||||||
Total
|
271,742
|
18,732
|
6.89
|
%
|
317,516
|
15,612
|
4.92
|
%
|
415,200
|
12,161
|
2.93
|
%
|
||||||||||||||||
Other
liabilities
|
||||||||||||||||||||||||||||
Pesos
|
428,426
|
26,932
|
6.29
|
%
|
391,081
|
31,522
|
8.06
|
%
|
528,554
|
25,426
|
4.81
|
%
|
||||||||||||||||
Dollars
|
37,512
|
10
|
0.03
|
%
|
37,018
|
43
|
0.12
|
%
|
143,762
|
2,318
|
1.61
|
%
|
||||||||||||||||
Total
|
465,938
|
26,942
|
5.78
|
%
|
428,099
|
31,565
|
7.37
|
%
|
672,316
|
27,744
|
4.13
|
%
|
||||||||||||||||
Total
interest-bearing liabilities
|
||||||||||||||||||||||||||||
Pesos
|
8,054,634
|
473,463
|
5.88
|
%
|
8,719,340
|
542,530
|
6.22
|
%
|
8,585,250
|
385,680
|
4.49
|
%
|
||||||||||||||||
Dollars
|
2,127,045
|
50,693
|
2.38
|
%
|
1,576,164
|
33,654
|
2.14
|
%
|
1,580,767
|
29,189
|
1.85
|
%
|
||||||||||||||||
Total
|
10,181,679
|
524,156
|
5.15
|
%
|
10,295,504
|
576,184
|
5.60
|
%
|
10,166,017
|
414,869
|
4.08
|
%
|
||||||||||||||||
Fiscal
Years ended December 31,
|
||||||||||||||||||||||||||||
2006
|
2005
|
2004
|
||||||||||||||||||||||||||
Average
balance (1)
|
Interest
earned/
paid
|
Average
nominal
rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
Nominal
rate (2)
|
Average
balance (1)
|
Interest
earned/
paid
|
Average
nominal
rate (2)
|
||||||||||||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||||||||||||||||||
Non
interest-bearing
liabilities
and stockholders’
equity
|
||||||||||||||||||||||||||||
Demand
deposits
|
||||||||||||||||||||||||||||
Pesos
|
2,094,140
|
—
|
—
|
1,636,017
|
—
|
—
|
1,122,143
|
—
|
—
|
|||||||||||||||||||
Dollars
|
24,537
|
—
|
—
|
13,007
|
—
|
—
|
5,578
|
—
|
—
|
|||||||||||||||||||
Total
|
2,118,677
|
—
|
—
|
1,649,024
|
—
|
—
|
1,127,721
|
—
|
—
|
|||||||||||||||||||
Other
liabilities
|
||||||||||||||||||||||||||||
Pesos
|
2,917,529
|
—
|
—
|
2,789,191
|
—
|
—
|
2,100,406
|
—
|
—
|
|||||||||||||||||||
Dollars
|
290,635
|
—
|
—
|
210,525
|
—
|
—
|
180,886
|
—
|
—
|
|||||||||||||||||||
Total
|
3,208,164
|
—
|
—
|
2,999,716
|
—
|
—
|
2,281,292
|
—
|
—
|
|||||||||||||||||||
Minority
interest
|
||||||||||||||||||||||||||||
Pesos
|
197,278
|
—
|
—
|
182,288
|
—
|
—
|
167,069
|
—
|
—
|
|||||||||||||||||||
Total
|
197,278
|
—
|
—
|
182,288
|
—
|
—
|
167,069
|
—
|
—
|
|||||||||||||||||||
Stockholders’
equity
|
||||||||||||||||||||||||||||
Pesos
|
1,782,562
|
—
|
—
|
1,748,617
|
—
|
—
|
1,430,047
|
—
|
—
|
|||||||||||||||||||
Total
|
1,782,562
|
—
|
—
|
1,748,617
|
—
|
—
|
1,430,047
|
—
|
—
|
|||||||||||||||||||
Total
non-interest-bearing liabilities and stockholders equity
|
||||||||||||||||||||||||||||
Pesos
|
6,991,509
|
—
|
—
|
6,356,113
|
—
|
—
|
4,819,665
|
—
|
—
|
|||||||||||||||||||
Dollars
|
315,172
|
—
|
—
|
223,532
|
—
|
—
|
186,464
|
—
|
—
|
|||||||||||||||||||
Total
|
7,306,681
|
—
|
—
|
6,579,645
|
—
|
—
|
5,006,129
|
—
|
—
|
|||||||||||||||||||
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||||||||||||||||||||||
Pesos
|
15,046,143
|
—
|
—
|
15,075,453
|
—
|
—
|
13,404,915
|
—
|
—
|
|||||||||||||||||||
Dollars
|
2,442,217
|
—
|
—
|
1,799,696
|
—
|
—
|
1,767,231
|
—
|
—
|
|||||||||||||||||||
Total
|
17,488,360
|
—
|
—
|
16,875,149
|
—
|
—
|
15,172,146
|
—
|
—
|
|||||||||||||||||||
(1)
|
Average
balances are derived from month-end
balances.
|
(2)
|
Annualized
on a 360-day basis.
|
December
2006/December 2005
Increase
(Decrease) Due to
Changes
in
|
December
2005/December 2004
Increase
(Decrease) Due to
Changes
in
|
December
2004/December 2003
Increase
(Decrease) Due to
Changes
in
|
||||||||||||||||||||||||||
Volume
|
Rate
|
Net
Change
|
Volume
|
Rate
|
Net
Change
|
Volume
|
Rate
|
Net
Change
|
||||||||||||||||||||
(in
thousands of pesos)
|
||||||||||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||||||
Interest-earning
assets
|
||||||||||||||||||||||||||||
Government
securities
|
||||||||||||||||||||||||||||
Pesos
|
205,284
|
138,985
|
344,269
|
102,995
|
(65,428
|
)
|
37,567
|
46,604
|
53,939
|
100,543
|
||||||||||||||||||
Dollars
|
(45,805
|
)
|
78,326
|
32,521
|
(3,776
|
)
|
(23,264
|
)
|
(27,040
|
)
|
(52,515
|
)
|
80,343
|
27,828
|
||||||||||||||
Total
|
159,479
|
217,311
|
376,790
|
99,219
|
(88,692
|
)
|
10,527
|
(5,911
|
)
|
134,282
|
128,371
|
|||||||||||||||||
Loans
|
||||||||||||||||||||||||||||
Private
sector
|
||||||||||||||||||||||||||||
Pesos
|
183,139
|
27,602
|
210,741
|
110,544
|
(36,310
|
)
|
74,234
|
56,009
|
(53,700
|
)
|
2,309
|
|||||||||||||||||
Dollars
|
26,199
|
(343
|
)
|
25,856
|
10,599
|
4
|
10,603
|
(21,900
|
)
|
13,912
|
(7,988
|
)
|
||||||||||||||||
Total
|
209,338
|
27,259
|
236,597
|
121,143
|
(36,306
|
)
|
84,837
|
34,109
|
(39,788
|
)
|
(5,679
|
)
|
||||||||||||||||
Public
sector
|
||||||||||||||||||||||||||||
Pesos
|
(431,175
|
)
|
80,509
|
(350,666
|
)
|
(60,163
|
)
|
403,920
|
343,757
|
(42,616
|
)
|
64,396
|
21,780
|
|||||||||||||||
Dollars
|
—
|
—
|
—
|
—
|
—
|
—
|
(11,615
|
)
|
—
|
(11,615
|
)
|
|||||||||||||||||
Total
|
(431,175
|
)
|
80,509
|
(350,666
|
)
|
(60,163
|
)
|
403,920
|
343,757
|
(54,231
|
)
|
64,396
|
10,165
|
|||||||||||||||
Deposits
with the Central Bank
|
||||||||||||||||||||||||||||
Pesos
|
(65,591
|
)
|
58,871
|
(6,720
|
)
|
14,829
|
1,962
|
16,791
|
(4,915
|
)
|
(3,165
|
)
|
(8,080
|
)
|
||||||||||||||
Dollars
|
1,597
|
(2,947
|
)
|
(1,350
|
)
|
7,927
|
—
|
7,927
|
—
|
—
|
—
|
|||||||||||||||||
Total
|
(63,994
|
)
|
55,924
|
(8,070
|
)
|
22,756
|
1,962
|
24,718
|
(4,915
|
)
|
(3,165
|
)
|
(8,080
|
)
|
||||||||||||||
Other
assets
|
||||||||||||||||||||||||||||
Pesos
|
(10,967
|
)
|
41,270
|
30,303
|
27,786
|
13,448
|
41,234
|
18.739
|
(26,487
|
)
|
(7,748
|
)
|
||||||||||||||||
Dollars
|
922
|
(9,165
|
)
|
(8,243
|
)
|
(24,670
|
)
|
23,426
|
(1,244
|
)
|
(3,931
|
)
|
(16,698
|
)
|
(20,629
|
)
|
||||||||||||
Total
|
(10,045
|
)
|
32,105
|
22,060
|
3,116
|
36,874
|
39,990
|
14,808
|
(43,185
|
)
|
(28,377
|
)
|
||||||||||||||||
Total
interest-earning assets
|
||||||||||||||||||||||||||||
Pesos
|
(119,310
|
)
|
347,237
|
227,927
|
195,991
|
317,592
|
513,583
|
73,821
|
34,983
|
108,804
|
||||||||||||||||||
Dollars
|
(17,087
|
)
|
65,871
|
48,784
|
(9,920
|
)
|
166
|
(9,754
|
)
|
(89,961
|
)
|
77,557
|
(12,404
|
)
|
||||||||||||||
Total
|
(136,397
|
)
|
413,108
|
276,711
|
186,071
|
317,758
|
503,829
|
(16,140
|
)
|
112,540
|
96,400
|
|||||||||||||||||
December
2006/December 2005
Increase
(Decrease) Due to
Changes
in
|
December
2005/December 2004
Increase
(Decrease) Due to
Changes
in
|
December
2004/December 2003
Increase
(Decrease) Due to
Changes
in
|
||||||||||||||||||||||||||
Volume
|
Rate
|
Net
Change
|
Volume
|
Rate
|
Net
Change
|
Volume
|
Rate
|
Net
Change
|
||||||||||||||||||||
(in
thousands of pesos)
|
||||||||||||||||||||||||||||
LIABILITIES
|
||||||||||||||||||||||||||||
Interest-bearing
liabilities
|
||||||||||||||||||||||||||||
Savings
accounts
|
||||||||||||||||||||||||||||
Pesos
|
275
|
(1,587
|
)
|
(1,312
|
)
|
324
|
(5,440
|
)
|
(5,116
|
)
|
6,862
|
(436
|
)
|
6,426
|
||||||||||||||
Dollars
|
144
|
64
|
208
|
142
|
(69
|
)
|
73
|
76
|
(1,352
|
)
|
(1,276
|
)
|
||||||||||||||||
Total
|
419
|
(1,523
|
)
|
(1,104
|
)
|
466
|
(5,509
|
)
|
(5,043
|
)
|
6,938
|
(1,788
|
)
|
5,150
|
||||||||||||||
Time
deposits
|
||||||||||||||||||||||||||||
Pesos
|
21,643
|
71,503
|
93,146
|
60,297
|
95,764
|
156,061
|
(26,255
|
)
|
(272,555
|
)
|
(298,810
|
)
|
||||||||||||||||
Dollars
|
5,887
|
1,988
|
7,875
|
2,059
|
260
|
2,319
|
(2,555
|
)
|
(1,215
|
)
|
(3,770
|
)
|
||||||||||||||||
Total
|
27,530
|
73,491
|
101,021
|
62,356
|
96,024
|
158,380
|
(28,810
|
)
|
(273,770
|
)
|
(302,580
|
)
|
||||||||||||||||
Borrowings
from the Central Bank
|
||||||||||||||||||||||||||||
Pesos
|
(124,148
|
)
|
(39,726
|
)
|
(163,874
|
)
|
(96,169
|
)
|
97,454
|
1,285
|
(19,259
|
)
|
65,836
|
46,577
|
||||||||||||||
Dollars
|
—
|
(1
|
)
|
(1
|
)
|
(2
|
)
|
(16
|
)
|
(18
|
)
|
(6
|
)
|
(97
|
)
|
(103
|
)
|
|||||||||||
Total
|
(124,148
|
)
|
(39,727
|
)
|
(163,875
|
)
|
(96,171
|
)
|
97,438
|
1,267
|
(19,265
|
)
|
65,739
|
46,474
|
||||||||||||||
Borrowings
from other financial institutions
|
||||||||||||||||||||||||||||
Pesos
|
5,539
|
2,024
|
7,563
|
(1,113
|
)
|
869
|
(244
|
)
|
(1,549
|
)
|
(7,820
|
)
|
(9,369
|
)
|
||||||||||||||
Dollars
|
3,072
|
2,798
|
5,870
|
(10,953
|
)
|
10,636
|
(317
|
)
|
(28,452
|
)
|
(17,590
|
)
|
(46,042
|
)
|
||||||||||||||
Total
|
8,611
|
4,822
|
13,433
|
(12,066
|
)
|
11,505
|
(561
|
)
|
(30,001
|
)
|
(25,410
|
)
|
(55,411
|
)
|
||||||||||||||
Corporate
bonds
|
||||||||||||||||||||||||||||
Pesos
|
—
|
—
|
—
|
—
|
(1,232
|
)
|
(1,232
|
)
|
(1,240
|
)
|
429
|
(811
|
)
|
|||||||||||||||
Dollars
|
(3,155
|
)
|
6,275
|
3,120
|
(4,382
|
)
|
9,065
|
4,683
|
(1,585
|
)
|
(4,937
|
)
|
(6,522
|
)
|
||||||||||||||
Total
|
(3,155
|
)
|
6,275
|
3,120
|
(4,382
|
)
|
7,833
|
3,451
|
(2,825
|
)
|
(4,508
|
)
|
(7,333
|
)
|
||||||||||||||
Other
liabilities
|
||||||||||||||||||||||||||||
Pesos
|
2,348
|
(6,938
|
)
|
(4,590
|
)
|
(11,081
|
)
|
17,177
|
6,096
|
(8,599
|
)
|
18,462
|
9,863
|
|||||||||||||||
Dollars
|
1
|
(34
|
)
|
(33
|
)
|
(125
|
)
|
(2,150
|
)
|
(2,275
|
)
|
(4,123
|
)
|
(379
|
)
|
(4,502
|
)
|
|||||||||||
Total
|
2,349
|
(6,972
|
)
|
(4,623
|
)
|
(11,206
|
)
|
15,027
|
3,821
|
(12,722
|
)
|
18,083
|
5,361
|
|||||||||||||||
Total
interest-bearing liabilities
|
||||||||||||||||||||||||||||
Pesos
|
(94,343
|
)
|
25,276
|
(69,067
|
)
|
(47,742
|
)
|
204,592
|
156,850
|
(50,040
|
)
|
(196,084
|
)
|
(246,124
|
)
|
|||||||||||||
Dollars
|
5,949
|
11,090
|
17,039
|
(13,261
|
)
|
17,726
|
4,465
|
(36,645
|
)
|
(25,570
|
)
|
(62,215
|
)
|
|||||||||||||||
Total
|
(88,394
|
)
|
36,366
|
(52,028
|
)
|
(61,003
|
)
|
222,318
|
161,315
|
(86,685
|
)
|
(221,654
|
)
|
(308,339
|
)
|
|||||||||||||
Fiscal
Years ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(in
thousands of pesos, except percentages)
|
||||||||||
Average
interest-earning assets
|
||||||||||
Pesos
|
12,058,894
|
12,788,826
|
10,199,832
|
|||||||
Dollars
|
2,125,797
|
1,819,653
|
1,630,074
|
|||||||
Total
|
14,184,691
|
14,608,479
|
11,829,906
|
|||||||
Net
interest income (1)
|
||||||||||
Pesos
|
1,268,986
|
971,991
|
615,258
|
|||||||
Dollars
|
64,758
|
33,011
|
47,230
|
|||||||
Total
|
1,333,744
|
1,005,002
|
662,488
|
|||||||
Net
interest margin (2)
|
||||||||||
Pesos
|
10.52
|
%
|
7.60
|
%
|
6.03
|
%
|
||||
Dollars
|
3.05
|
%
|
1.81
|
%
|
2.90
|
%
|
||||
Weighted
average rate
|
9.40
|
%
|
6.88
|
%
|
5.60
|
%
|
||||
Yield
spread nominal basis (3)
|
||||||||||
Pesos
|
8.57
|
%
|
5.62
|
%
|
5.32
|
%
|
||||
Dollars
|
3.05
|
%
|
1.52
|
%
|
2.84
|
%
|
||||
Weighted
average rate
|
7.95
|
%
|
5.22
|
%
|
5.03
|
%
|
(1)
|
Net
interest income is defined as interest earned less interest paid.
Trading
results from our portfolio of Government Securities are included
in
interest.
|
(2)
|
Net
interest margin is net interest income stated as a percentage of
average
interest-earning assets.
|
(3)
|
Yield
spread nominal basis is defined as the difference between the average
nominal rate on interest-earning assets and the average nominal rate
on
interest-bearing liabilities.
|
Fiscal
Years ended December 31,
|
||||||||||
2006
|
2005
|
2004
(3)
|
||||||||
(in
thousands of pesos, except percentages)
|
||||||||||
Net
(loss) / income
|
180,037
|
117,204
|
(54,046
|
)
|
||||||
Average
total assets (1)
|
17,409,189
|
16,012,710
|
16,199,756
|
|||||||
Average
stockholders’ equity (1)
|
1,878,066
|
1,742,945
|
1,629,160
|
|||||||
Stockholders’
equity at the end of the fiscal year
|
1,954,584
|
1,801,547
|
1,684,343
|
|||||||
Net
income as a percentage of:
|
||||||||||
Average
total assets
|
1.03
|
%
|
0.73
|
%
|
(0.33
|
)%
|
||||
Average
stockholders’ equity
|
9.59
|
%
|
6.72
|
%
|
(3.32
|
)%
|
||||
Declared
cash dividends
|
90,000
|
27,000
|
—
|
|||||||
Dividend
payout ratio (2)
|
49.99
|
%
|
23.04
|
%
|
—
|
|||||
Average
stockholders’ equity as a percentage of average total
assets
|
10.79
|
%
|
10.88
|
%
|
10.06
|
%
|
(1)
|
Computed
as the average of fiscal year-beginning and fiscal year-ending
balances.
|
(2)
|
Declared
cash dividends stated as percentage of net income. No cash dividend
was
declared for 2002 and 2001. Since April 2002, the Central Bank has
suspended the payment of dividends. As of June 2, 2004 financial
institutions are allowed to make distributions will have no effect
with
the prior authorization of the Central Bank and provided that certain
conditions are met. See “Financial
Information - Dividends”.
|
(3)
|
Restated
from its original version to apply the adjustments to prior years
income
to these Consolidated Financial Statements related with Argentine
Central
Bank regulations (see Note 3.4.18. to the Consolidated Financial
Statements).
|
Fiscal
Years ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(in
thousands of pesos)
|
||||||||||
Government
securities
|
||||||||||
In
pesos:
|
||||||||||
Investment
accounts
|
||||||||||
Argentine
Treasury bills
|
—
|
—
|
58,169
|
|||||||
Argentine
bonds
|
406,674
|
360,516
|
—
|
|||||||
Holding
for trading or financial transactions
|
||||||||||
Debt
consolidation bonds—Social security (BOCON)
|
16,465
|
45,238
|
1,670
|
|||||||
Argentine
bonds
|
238,981
|
456,637
|
54,453
|
|||||||
Argentine
Treasury bills
|
—
|
—
|
9,032
|
|||||||
Other
debt bonds
|
7,695
|
1,077
|
12,539
|
|||||||
Instruments
issued by the Argentine Central Bank
|
||||||||||
Argentine
Central Bank bills (LEBAC)
|
75,139
|
1,160,312
|
958,979
|
|||||||
Argentine
Central Bank notes (NOBAC)
|
2,445,767
|
1,088,526
|
40,584
|
|||||||
Unlisted
government securities
|
||||||||||
Argentine
bonds (BOGAR 2018)
|
—
|
—
|
451,121
|
|||||||
Argentine
bonds (BOGAR 2020)
|
843,792
|
—
|
630
|
|||||||
Tax
credit certificates
|
5
|
6
|
41,151
|
|||||||
Total
government securities in pesos
|
4,034,518
|
3,112,312
|
1,628,328
|
|||||||
In
foreign currency:
|
||||||||||
Investment
accounts
|
||||||||||
Argentine
bonds
|
108,622
|
74,588
|
78,384
|
|||||||
Argentine
external bills (VEY4D)
|
—
|
—
|
594,593
|
|||||||
Other
debt bonds
|
—
|
—
|
11,756
|
|||||||
Holding
for trading or financial transactions
|
||||||||||
Argentine
bonds
|
40,406
|
151,682
|
32,789
|
|||||||
Medium
term Treasury bonds (BONTE)
|
—
|
—
|
5,165
|
|||||||
Other
debt bonds
|
276
|
10,203
|
13,140
|
|||||||
Total
government securities in foreign currency
|
149,304
|
236,473
|
735,827
|
|||||||
Total
government securities
|
4,183,822
|
3,348,785
|
2,364,155
|
|||||||
Investments
in listed private securities
|
||||||||||
Shares
|
40,975
|
28,284
|
40,965
|
|||||||
Corporate
bonds—Listed
|
75,813
|
87,541
|
93,102
|
|||||||
Mutual
funds
|
35,650
|
18,925
|
45,145
|
|||||||
Certificates
of participation in financial trusts
|
50,958
|
21,099
|
—
|
|||||||
Total
private securities
|
203,396
|
155,849
|
179,212
|
|||||||
Subtotal
government and private securities
|
4,387,218
|
3,504,634
|
2,543,367
|
|||||||
Allowances
|
(15,186
|
)
|
(323
|
)
|
(66,419
|
)
|
||||
Total
government and private securities
|
4,372,032
|
3,504,311
|
2,476,948
|
|||||||
Corporate
bonds—Unlisted
|
58,684
|
78,228
|
99,691
|
Maturing
|
||||||||||||||||
Within
1 year
|
After
1 year but within 5 years
|
After
5 years but within 10 years
|
After
10 years
|
Total
|
||||||||||||
Book
value
|
||||||||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||||||
Government
securities
|
||||||||||||||||
In
Pesos:
|
||||||||||||||||
Investment
accounts
|
||||||||||||||||
Argentine
bonds (*)
|
1,823
|
—
|
—
|
404,851
|
406,674
|
|||||||||||
Holding
for trading on financial transactions
|
||||||||||||||||
Debt
consolidation bonds-Social security (BOCON) (*)
|
6,125
|
10,154
|
186
|
—
|
16,465
|
|||||||||||
Argentine
bonds (*)
|
13,711
|
52,163
|
48,791
|
124,316
|
238,981
|
|||||||||||
Other
debt bonds
|
434
|
7,261
|
—
|
—
|
7,695
|
|||||||||||
Instruments
issued by the Argentine Central Banks
|
||||||||||||||||
Argentine
Central Bank bills (LEBAC) (*)
|
75,139
|
—
|
—
|
—
|
75,139
|
|||||||||||
Argentine
Central Bank notes (NOBAC) (*)
|
918,812
|
1,526,955
|
—
|
—
|
2,445,767
|
|||||||||||
Unlisted
Government Securities
|
||||||||||||||||
Argentine
bonds (BOGAR 2020) (*)
|
6,750
|
205,885
|
249,425
|
381,732
|
843,792
|
|||||||||||
Tax
credit certificates
|
5
|
—
|
—
|
—
|
5
|
|||||||||||
Total
government securities in pesos
|
1,022,799
|
1,802,418
|
298,402
|
910,899
|
4,034,518
|
|||||||||||
In
foreign currency:
|
||||||||||||||||
Investment
accounts
|
||||||||||||||||
Argentine
bonds (*)
|
18,102
|
90,520
|
—
|
—
|
108,622
|
|||||||||||
Holding
for trading on financial transactions
|
||||||||||||||||
Argentine
bonds (*)
|
380
|
26,370
|
9,088
|
4,568
|
40,406
|
|||||||||||
Other
debt bonds
|
—
|
255
|
—
|
21
|
276
|
|||||||||||
Total
government securities in foreign currency
|
18,482
|
117,145
|
9,088
|
4,589
|
149,304
|
|||||||||||
Total
government securities
|
1,041,281
|
1,919,563
|
307,490
|
915,488
|
4,183,822
|
|||||||||||
Certificates
of participation on financial trust
|
2,408
|
42,017
|
6,533
|
—
|
50,958
|
|||||||||||
Corporate
bonds—Listed
|
18,150
|
45,666
|
8,280
|
3,717
|
75,813
|
|||||||||||
Corporate
bonds —Unlisted
|
704
|
57,814
|
166
|
—
|
58,684
|
|||||||||||
Weighted
average yield (for the securities indicated with * )
|
10.22
|
%
|
9.35
|
%
|
4.95
|
%
|
5.23
|
%
|
Fiscal
Years ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(in
thousands of pesos)
|
||||||||||
Principal
|
||||||||||
Advances
(1)
|
1,469,368
|
733,514
|
272,275
|
|||||||
Notes
discounted and purchased (2)
|
793,195
|
560,863
|
251,332
|
|||||||
Secured
with mortgages
|
460,559
|
394,678
|
401,064
|
|||||||
Consumer
loans (3)
|
1,313,816
|
962,281
|
572,675
|
|||||||
Financial
loans (4)
|
436,126
|
142,307
|
169,509
|
|||||||
Loans
to governmental sector (5)
|
2,887,276
|
4,623,626
|
6,927,719
|
|||||||
Other
loans
|
2,282,243
|
1,364,291
|
964,177
|
|||||||
Less:
Unaccrued interest and unused collections (6)
|
(5,543
|
)
|
(154,763
|
)
|
(112,764
|
)
|
||||
Less:
Difference arising from purchase of portfolio
|
(90
|
)
|
(89
|
)
|
(88
|
)
|
||||
Plus:
Interest and exchange differences receivable
|
64,330
|
39,653
|
25,517
|
|||||||
Less:
Allowance for loan losses
|
(167,097
|
)
|
(184,885
|
)
|
(202,693
|
)
|
||||
Total
|
9,534,183
|
8,481,476
|
9,268,723
|
|||||||
Fiscal
Years ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(in
thousands of pesos)
|
||||||||||
Liquid
guarantees
|
60,813
|
4,722,686
|
6,992,645
|
|||||||
Preferred
guarantees
|
517,028
|
483,234
|
445,306
|
|||||||
Total
|
577,841
|
5,205,920
|
7,437,951
|
|||||||
Fiscal
year ended December 31,
|
|||||||||||||||||||
2006
|
2005
|
2004
|
|||||||||||||||||
Loan
Portfolio
|
%
of Loan Portfolio
|
Loan
Portfolio
|
%
of Loan Portfolio
|
Loan
Portfolio
|
%
of Loan Portfolio
|
||||||||||||||
(in
thousands of pesos, except percentages)
|
|||||||||||||||||||
Agricultural
and livestock
|
185,041
|
1.91
|
%
|
238,549
|
2.75
|
%
|
96,136
|
1.02
|
%
|
||||||||||
Beverage
|
189,651
|
1.95
|
%
|
136,097
|
1.57
|
%
|
41,335
|
0.44
|
%
|
||||||||||
Chemicals
|
—
|
—
|
—
|
—
|
53
|
—
|
|||||||||||||
Construction
|
82,077
|
0.85
|
%
|
79,900
|
0.92
|
%
|
66,068
|
0.70
|
%
|
||||||||||
Consumer
|
1,721,651
|
17.75
|
%
|
1,336,441
|
15.42
|
%
|
941,556
|
9.94
|
%
|
||||||||||
Electrical
machinery
|
64,021
|
0.66
|
%
|
29,667
|
0.34
|
%
|
31,512
|
0.33
|
%
|
||||||||||
Financial
sector
|
436,126
|
4.50
|
%
|
142,307
|
1.64
|
%
|
169,509
|
1.79
|
%
|
||||||||||
Foodstuff
|
625,045
|
6.44
|
%
|
175,622
|
2.03
|
%
|
152,421
|
1.61
|
%
|
||||||||||
Government
services
|
2,887,276
|
29.76
|
%
|
4,623,626
|
53.35
|
%
|
6,927,719
|
73.14
|
%
|
||||||||||
Industrial
metals
|
129,272
|
1.33
|
%
|
70,012
|
0.81
|
%
|
106,839
|
1.13
|
%
|
||||||||||
Leather
and fur product
|
73,993
|
0.76
|
%
|
52,580
|
0.61
|
%
|
9,976
|
0.11
|
%
|
||||||||||
Mining
products
|
422,255
|
4.35
|
%
|
402,258
|
4.64
|
%
|
152,492
|
1.61
|
%
|
||||||||||
Oil
and carbon
|
448,322
|
4.62
|
%
|
351,029
|
4.05
|
%
|
173,849
|
1.84
|
%
|
||||||||||
Others
|
1,601,192
|
15.70
|
%
|
509,333
|
5.88
|
%
|
207,860
|
2.17
|
%
|
||||||||||
Other
manufacturing
|
99,885
|
1.03
|
%
|
76,672
|
0.88
|
%
|
11,409
|
0.12
|
%
|
||||||||||
Printers,
publishers and related industries
|
15,255
|
0.16
|
%
|
3,527
|
0.04
|
%
|
3,984
|
0.04
|
%
|
||||||||||
Rubber
products
|
69,291
|
0.71
|
%
|
42,366
|
0.49
|
%
|
23,263
|
0.25
|
%
|
||||||||||
Retail
trade
|
259,731
|
2.68
|
%
|
198,933
|
2.30
|
%
|
135,851
|
1.43
|
%
|
||||||||||
Services
|
10,591
|
0.11
|
%
|
256
|
—
|
111,322
|
1.18
|
%
|
|||||||||||
Shoes,
apparel and other textile products
|
11,670
|
0.12
|
%
|
7,660
|
0.09
|
%
|
5,144
|
0.05
|
%
|
||||||||||
Textile
|
26,751
|
0.28
|
%
|
13,336
|
0.15
|
%
|
8,278
|
0.09
|
%
|
||||||||||
Tobacco
|
8,214
|
0.08
|
%
|
11,927
|
0.14
|
%
|
2,523
|
0.03
|
%
|
||||||||||
Transportation
material
|
135,341
|
1.40
|
%
|
77,613
|
0.90
|
%
|
37,967
|
0.40
|
%
|
||||||||||
Wholesale
trade
|
171,592
|
1.77
|
%
|
78,267
|
0.90
|
%
|
48,030
|
0.51
|
%
|
||||||||||
Wood
products and cork
|
27,127
|
0.28
|
%
|
8,472
|
0.10
|
%
|
6,408
|
0.07
|
%
|
||||||||||
Total
|
9,701,370
|
100.00
|
%
|
8,666,450
|
100.00
|
%
|
9,471,504
|
100.00
|
%
|
||||||||||
Maturing
|
||||||||||||||||
Amount
at December 31,
2006
|
Within
3
months
|
After
3
months
but
within
1 year
|
After
1 year
but
within
5
years
|
After
5 years
|
||||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||||||
To
the non-financial public sector
|
2,887,276
|
3,931
|
216,559
|
2,287,402
|
379,384
|
|||||||||||
To
the financial sector
|
436,126
|
86,456
|
241,700
|
107,970
|
—
|
|||||||||||
To
the non-financial private sector and residents abroad
|
6,377,968
|
3,618,679
|
1,448,110
|
1,035,282
|
275,897
|
|||||||||||
Overdraft
|
1,483,874
|
1,305,710
|
174,472
|
3,692
|
||||||||||||
With
privileged guarantees
|
563,180
|
29,370
|
62,888
|
203,799
|
267,123
|
|||||||||||
Credit
cards
|
527,169
|
527,169
|
—
|
—
|
—
|
|||||||||||
Other
|
3,803,745
|
1,756,430
|
1,210,750
|
827,791
|
8,774
|
|||||||||||
Total
|
9,701,370
|
3,709,066
|
1,906,369
|
3,430,654
|
655,281
|
|||||||||||
Percentage
of total loan portfolio
|
100.00
|
%
|
38.23
|
%
|
19.65
|
%
|
35.36
|
%
|
6.76
|
%
|
|
Fiscal
Year Ended
December
31, 2006
|
|
(in
thousands of pesos)
|
Variable
Rate
|
|
Pesos
— including adjustable loans
|
3,069,071
|
Foreign
currency
|
89,498
|
3,158,569
|
|
Fixed
Rate
|
|
Pesos
|
5,078,256
|
Foreign
currency
|
1,384,669
|
6,462,925
|
|
Non-performing
(1)
|
|
Pesos
|
75,319
|
Foreign
currency
|
4,557
|
79,876
|
|
Total
|
9,701,370
|
(1) |
For
additional information on non-performing loans see “Information
on the Company—Selected Statistical
Information—Non-performing
and Restructured Loans”,
below in this section.
|
Interest
Sensitivity in
Outstanding
Loans Maturing
In
More Than One Year
|
|||||||
Fixed
Rate
|
Variable
Rate
|
||||||
(in
thousands of pesos)
|
|||||||
To
the non-financial public sector
|
—
|
2,666,786
|
|||||
To
the financial sector
|
107,970
|
—
|
|||||
To
the non-financial private sector and residents abroad
|
1,156,674
|
154,504
|
|||||
Total
|
1,264,644
|
2,821,290
|
§
|
The
allocation of their periodic income in relation to the totality of
credit
commitments assumed; or
|
§
|
Through
the use of the credit scoring
method.
|
1. |
“Normal”
if all payments on its loans are current or less than 31 days overdue
and,
in checking account overdrafts, less than 61 days
overdue;
|
2. |
“Inadequate
Servicing” if payments with respect to principal, interest or otherwise,
on any of its loans, are overdue for more than 31 and up to 90
days;
|
3. |
“Deficient
Servicing” if payments on any of its loans are overdue for more than 90
and up to 180 days;
|
4. |
“Difficult
Recovery” if payments on any of its loans are overdue for more than 180
days and up to one year or if it is subject to judicial proceedings
for
default on any of those loans;
|
5. |
“Irrecoverable”
if payments on any of its loans are overdue for more than one year,
if the
borrower is in bankruptcy or liquidation proceedings or if it is
insolvent; and
|
6. |
“Irrecoverable
for Technical Decision” if such borrower
is:
|
(a) |
In
arrears for more than 180 days according to a list provided by the
Central
Bank, which includes:
|
(b) |
A
foreign borrower (including banks or other financial institutions)
which
is not classified as “investment grade” by any of the rating agencies
admitted by the Central Bank pursuant to the Evaluation of Financial
Entities’s standards, except for the
following:
|
o
|
Secured
by foreign banks and classified as “Investment Grade” by any of the
international rating agencies admitted by the Central
Bank;
|
o
|
Related
to the buying or selling of securities through custodian banks admitted
by
the Central Bank (Caja de Valores, Cedel, Euroclear or the Depositary
Trust Company), arising from the usual business practices in the
market in
which they are made;
|
o
|
Related
to foreign trade transactions;
|
o
|
Entailing
swaps of dollars and domestic government bonds at market price, with
sufficient margins, involving custodians admitted by the Central
Bank;
|
o
|
Foreign
banks or financial institutions subject to the consolidated supervision
system which controls local financial institutions organized as
corporations (sociedades anónimas);
|
o
|
Other
foreign banks authorized to take part in reciprocal payment and credit
regimes to which the Central Bank is a party, to the extent the
controlling financial entity is subject to a consolidated supervision
system; and
|
o
|
Non-financial
private sector clients whose debt together with the amount of the
financing requested at the time of granting it, exceeds the lower
of 2.5%
of the bank’s computable equity responsibility as at the last day of the
preceding month or the equivalent to Ps.1,000,000, and who have not
submitted a sworn statement as to whether they are related or not
to the
respective financial agent, or whether their relationship with the
latter
implies the existence of controlling influence, or who have not updated
their previous statement.
|
i)
|
Eligible
borrowers:
|
ii)
|
Individual
limit:
|
iii)
|
Verification
of the method used.
|
Loan
Loss Provision Required
|
||||||||||
With
Preferred
“A”
Guarantees
|
With
Preferred
“B”
Guarantees
|
Without
Preferred
“A”
or
Preferred
“B”
Guarantees
|
||||||||
Normal
(1)
|
1
|
%
|
1
|
%
|
1
|
%
|
||||
Inadequate
servicing / Special tracking - under observation (3)
|
1
|
%
|
3
|
%
|
5
|
%
|
||||
Special
tracking - under negotiation or with refinancing agreements (3)
|
1
|
%
|
6
|
%
|
12
|
%
|
||||
Deficient
servicing / Problem
|
1
|
%
|
12
|
%
|
25
|
%
|
||||
Difficult
recovery / High risk of insolvency
|
1
|
%
|
25
|
%
|
50
|
%
|
||||
Irrecoverable
|
1
|
%
|
50
|
%
|
100
|
%
|
||||
Irrecoverable
for technical decision
|
1
|
%
|
100
|
%(2)
|
100
|
%(2)
|
||||
Additional
loans (4)
|
1
|
%
|
1
|
%
|
1
|
%
|
(1)
|
The
Bank accounted an aditional allowance of 0.25% over its loan portfolio
in
normal situation, respect of the minimum required by the Argentine
Central
Bank.
|
(2)
|
The
classification
of a debtor under this category will require a loan loss provision
of 100% of any financings, such as rollovers, extensions and express
or
implied waits, that may be granted after 90 days have elapsed since
the
day following the announcement by the Central Bank of the data base
that
includes the debtor. The presence of preferred guarantees does not
affect
this obligation.
|
(3)
|
The
entity has not yet classified its debtors in the “Special tracking -under
negotiation or with refinancing agreements”
category.
|
(4)
|
Extensions
of credit that do not surpass the result of applying the percentages
indicated below over the balance of the existing debt on the day
prior to
the extension of the additional
credit:
|
Irrecoverable
|
10%
|
Difficult
recovery/High risk of insolvency
|
20%
|
Deficient
servicing/Problem
|
30%
|
Inadequate
servicing/Potential risk
|
40%
|
§
|
Any
time the Central Bank modifies the definition of its borrower
classifications;
|
§
|
Any
time another bank downgrades a borrower whose loan standings are
greater
than 10% of the total loans outstanding in the Argentine financial
system;
|
§
|
Any
time a credit rating agency downgrades by more than one category
the
rating assigned to bonds issued by such
borrower;
|
§
|
If
the Central Bank requires it as a result of an inspection;
and
|
§
|
In
case of discrepancy by more than one level between the rating given
by the
financial entity and those granted by at least another two financial
entities or trusts in categories below that assigned by it, and whose
credits as a whole represent at least 20% and are below 40% of the
total
amount informed by all creditors, as per the latest information available
at the Debtors Department of the financial
system”.
|
Fiscal
Years Ended December 31,
|
|||||||||||||||||||
2006
|
%
|
2005
|
%
|
2004
|
%
|
||||||||||||||
(in
thousands of pesos, except percentages)
|
|||||||||||||||||||
Loan
Portfolio
|
|||||||||||||||||||
Categories
|
|||||||||||||||||||
Normal
|
9,573,812
|
98.68
|
%
|
8,489,941
|
97.96
|
%
|
9,190,677
|
97.04
|
%
|
||||||||||
Inadequate
servicing and potential risk
|
47,684
|
0.49
|
%
|
83,037
|
0.96
|
%
|
175,691
|
1.85
|
%
|
||||||||||
Deficient
servicing and with problem
|
13,273
|
0.14
|
%
|
11,829
|
0.14
|
%
|
52,118
|
0.55
|
%
|
||||||||||
Difficult
recovery and high risk of insolvency
|
29,733
|
0.31
|
%
|
68,160
|
0.79
|
%
|
21,965
|
0.23
|
%
|
||||||||||
Irrecoverable
|
36,041
|
0.37
|
%
|
13,362
|
0.15
|
%
|
30,921
|
0.33
|
%
|
||||||||||
Irrecoverable
for technical decision
|
827
|
0.01
|
%
|
121
|
—
|
132
|
—
|
||||||||||||
Total
|
9,701,370
|
100.00
|
%
|
8,666,450
|
100.00
|
%
|
9,471,504
|
100.00
|
%
|
||||||||||
§
|
5%
reduction in the percentage of cancellation determined for the different
categories (1 to 5), in order to reclassify a debtor to a higher
rating.
|
§
|
Private
or Judicial Arrangements: 20% cancellation is required (previously
30%)
for a debtor to be moved to Special tracking - under observation
situation.
|
§
|
Modification
in the conditions for preferred “A” guarantees - Credit Securities (checks
/ promissory notes/invoices).
|
§
|
Extension
to 18 months of the term for considering mortgage guarantees (in
force
until June 30, 2004).
|
§
|
Flexibility
of percentages for the granting of “additional
credit”.
|
§
|
It
extended until June 30, 2006 the temporary provisions of Communication
“A”
4060 which permits the reclassification of debtors restructured on
the
basis of their repayment capacity as being in normal situation, with
the
agreement of the Board of
Directors.
|
§
|
It
incorporated point 2.2.7 of the Allowances Exhibit, by which the
situation
of a debtor who has made a Refinancing with Capital Reduction is
determined by difference between the allowances net of debt and the
amount
of the referred reduction.
|
Fiscal
Years Ended December 31,
|
|||||||||||||||||||||||||||||||
2006
|
2005
|
2004
|
2003
|
2002
|
|||||||||||||||||||||||||||
Total
|
%
|
Total
|
%
|
Total
|
%
|
Total
|
%
|
Total
|
%
|
||||||||||||||||||||||
(in
thousands of pesos, except percentages) (1)
|
|||||||||||||||||||||||||||||||
Normal
(Consumer)
|
2,086,773
|
98.06
|
%
|
1,442,324
|
98.09
|
%
|
936,401
|
96.61
|
%
|
747,257
|
92.05
|
%
|
783,601
|
79.94
|
%
|
||||||||||||||||
Normal
(Commercial)
|
7,487,039
|
98.85
|
%
|
7,047,617
|
97.94
|
%
|
8,254,276
|
97.08
|
%
|
7,195,596
|
90.12
|
%
|
7,986,855
|
85.27
|
%
|
||||||||||||||||
9,573,812
|
98.69
|
%
|
8,489,941
|
97.96
|
%
|
9,190,677
|
97.04
|
%
|
7,942,853
|
90.30
|
%
|
8,770,456
|
84.77
|
%
|
|||||||||||||||||
Inadequate
servicing (Consumer)
|
20,138
|
0.95
|
%
|
8,518
|
0.58
|
%
|
7,576
|
0.78
|
%
|
8,892
|
1.10
|
%
|
21,528
|
2.20
|
%
|
||||||||||||||||
Special
tracking (Commercial)
|
27,546
|
0.36
|
%
|
74,519
|
1.04
|
%
|
168,115
|
1.98
|
%
|
257,948
|
3.23
|
%
|
396,957
|
4.24
|
%
|
||||||||||||||||
47,684
|
0.49
|
%
|
83,037
|
0.96
|
%
|
175,691
|
1.85
|
%
|
266,840
|
3.03
|
%
|
418,485
|
4.04
|
%
|
|||||||||||||||||
Deficient
servicing (Consumer)
|
8,062
|
0.38
|
%
|
5,040
|
0.34
|
%
|
11,115
|
1.15
|
%
|
10,660
|
1.31
|
%
|
17,229
|
1.76
|
%
|
||||||||||||||||
Problem
(Commercial)
|
5,212
|
0.07
|
%
|
6,789
|
0.09
|
%
|
41,003
|
0.48
|
%
|
241,717
|
3.03
|
%
|
245,855
|
2.62
|
%
|
||||||||||||||||
13,274
|
0.14
|
%
|
11,829
|
0.14
|
%
|
52,118
|
0.55
|
%
|
252,377
|
2.87
|
%
|
263,084
|
2.54
|
%
|
|||||||||||||||||
Difficult
recovery (Consumer)
|
6,358
|
0.30
|
%
|
6,395
|
0.43
|
%
|
4,351
|
0.45
|
%
|
6,587
|
0.81
|
%
|
62,302
|
6.36
|
%
|
||||||||||||||||
High
risk of insolvency (Commercial)
|
23,376
|
0.31
|
%
|
61,765
|
0.86
|
%
|
17,614
|
0.21
|
%
|
281,154
|
3.52
|
%
|
371,400
|
3.97
|
%
|
||||||||||||||||
29,734
|
0.31
|
%
|
68,160
|
0.79
|
%
|
21,965
|
0.23
|
%
|
287,741
|
3.27
|
%
|
433,702
|
4.19
|
%
|
|||||||||||||||||
Irrecoverable
(Consumer)
|
6,158
|
0.29
|
%
|
8,007
|
0.55
|
%
|
9,696
|
1.00
|
%
|
37,812
|
4.66
|
%
|
94,872
|
9.68
|
%
|
||||||||||||||||
Irrecoverable
(Commercial)
|
29,883
|
0.39
|
%
|
5,355
|
0.07
|
%
|
21,225
|
0.25
|
%
|
7,733
|
0.10
|
%
|
365,155
|
3.90
|
%
|
||||||||||||||||
36,041
|
0.37
|
%
|
13,362
|
0.15
|
%
|
30,921
|
0.33
|
%
|
45,545
|
0.52
|
%
|
460,027
|
4.45
|
%
|
|||||||||||||||||
Irrecoverable
for technical decision (Consumer)
|
827
|
0.04
|
%
|
121
|
0.01
|
%
|
132
|
0.01
|
%
|
569
|
0.07
|
%
|
729
|
0.06
|
%
|
||||||||||||||||
Irrecoverable
for technical decision (Commercial)
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||
827
|
0.01
|
%
|
121
|
—
|
132
|
—
|
569
|
0.01
|
%
|
729
|
0.01
|
%
|
|||||||||||||||||||
Total
consumer loans
|
2,128,314
|
100.00
|
%
|
1,470,405
|
100.00
|
%
|
969,271
|
100.00
|
%
|
811,777
|
100.00
|
%
|
980,261
|
100.00
|
%
|
||||||||||||||||
Total
commercial loans
|
7,573,056
|
100.00
|
%
|
7,196,045
|
100.00
|
%
|
8,502,233
|
100.00
|
%
|
7,984,148
|
100.00
|
%
|
9,366,222
|
100.00
|
%
|
||||||||||||||||
Total
|
9,701,370
|
100.00
|
%
|
8,666,450
|
100.00
|
%
|
9,471,504
|
100.00
|
%
|
8,795,925
|
100.00
|
%
|
10,346,483
|
100.00
|
%
|
||||||||||||||||
(1)
|
Percentages
for each category are of total consumer, commercial or total loans,
as the
context requires.
|
Fiscal
Years Ended December 31,
|
||||||||||||||||||||
2006
|
2005
|
2004
|
2003
|
2002
|
||||||||||||||||
(in
thousands of pesos)
|
||||||||||||||||||||
Non-performing
loans (1)
|
79,874
|
93,472
|
105,136
|
586,232
|
1,157,542
|
|||||||||||||||
Total
|
79,874
|
93,472
|
105,136
|
586,232
|
1,157,542
|
|||||||||||||||
With
preferred guarantees
|
3,778
|
7,008
|
16,179
|
34,596
|
95,648
|
|||||||||||||||
Unsecured
|
76,098
|
86,464
|
88,957
|
551,636
|
1,061,894
|
|||||||||||||||
Total
|
79,876
|
93,472
|
105,136
|
586,232
|
1,157,542
|
Fiscal
Years Ended December 31,
|
||||||||||||||||||||||||||||||||||||||||
2006
|
2005
|
2004
|
2003
|
2002
(1)
|
||||||||||||||||||||||||||||||||||||
Total
|
%
|
Total
|
%
|
Total
|
%
|
Total
|
%
|
Total
|
%
|
|||||||||||||||||||||||||||||||
(in
thousands of pesos, except percentages) (1)
|
||||||||||||||||||||||||||||||||||||||||
Agricultural
and livestock
|
412
|
0.52 | % |
20
|
0.02 | % |
15
|
0.01 | % |
17,357
|
2.96 | % |
37,546
|
3.24 | % | |||||||||||||||||||||||||
Beverage
|
5
|
0.01 | % |
1
|
—
|
—
|
—
|
4,105
|
0.70 | % |
11,418
|
0.99 | % | |||||||||||||||||||||||||||
Chemicals
|
—
|
—
|
—
|
—
|
—
|
—
|
5,881
|
1.00 | % |
19,559
|
1.69 | % | ||||||||||||||||||||||||||||
Construction
|
436
|
0.55 | % |
1,778
|
1.90 | % |
2,506
|
2.38 | % |
98,146
|
16.75 | % |
153,309
|
13.24 | % | |||||||||||||||||||||||||
Consumer
|
6,339
|
7.94 | % |
14,423
|
15.43 | % |
6,957
|
6.62 | % |
38,256
|
6.53 | % |
115,744
|
10.00 | % | |||||||||||||||||||||||||
Electrical
machinery
|
2
|
—
|
—
|
—
|
5
|
—
|
343
|
0.06 | % |
11,946
|
1.03 | % | ||||||||||||||||||||||||||||
Electricity,
oil, water and sanitary services
|
—
|
—
|
—
|
—
|
—
|
—
|
171,948
|
29.34 | % |
232,625
|
20.10 | % | ||||||||||||||||||||||||||||
Financial
sector
|
—
|
—
|
—
|
—
|
—
|
—
|
1,077
|
0.18 | % |
18,961
|
1.64 | % | ||||||||||||||||||||||||||||
Foodstuff
|
6
|
0.01 | % |
1
|
—
|
1
|
—
|
7,396
|
1.26 | % |
30,492
|
2.63 | % | |||||||||||||||||||||||||||
Furniture
and accessories
|
—
|
—
|
—
|
—
|
—
|
—
|
241
|
0.04 | % |
1,413
|
0.12 | % | ||||||||||||||||||||||||||||
Government
services
|
—
|
—
|
—
|
—
|
—
|
—
|
4
|
—
|
21
|
—
|
||||||||||||||||||||||||||||||
Industrial
metals
|
—
|
—
|
—
|
—
|
—
|
—
|
258
|
0.04 | % |
17,886
|
1.55 | % | ||||||||||||||||||||||||||||
Leather
and fur products
|
—
|
—
|
—
|
—
|
1
|
—
|
11
|
—
|
412
|
0.04 | % | |||||||||||||||||||||||||||||
Machinery
and tools
|
—
|
—
|
—
|
—
|
—
|
—
|
4
|
—
|
2,485
|
0.21 | % | |||||||||||||||||||||||||||||
Mining
products
|
—
|
—
|
—
|
—
|
6
|
0.01 | % |
28,999
|
4.95 | % |
65,392
|
5.65 | % | |||||||||||||||||||||||||||
Oil
and carbon
|
—
|
—
|
221
|
0.24 | % |
—
|
—
|
5,297
|
0.90 | % |
25,347
|
2.19 | % | |||||||||||||||||||||||||||
Others
|
67,205
|
84.14 | % |
61,268
|
65.54 | % |
87,930
|
83.63 | % |
190
|
0.03 | % |
1,312
|
0.12 | % | |||||||||||||||||||||||||
Other
manufacturing
|
—
|
—
|
—
|
—
|
7,671
|
7.30 | % |
312
|
0.05 | % |
7,227
|
0.62 | % | |||||||||||||||||||||||||||
Paper
products
|
—
|
—
|
—
|
—
|
—
|
—
|
11
|
—
|
2,758
|
0.24 | % | |||||||||||||||||||||||||||||
Printer,
publishers and related industries
|
1
|
—
|
—
|
—
|
1
|
—
|
22,272
|
3.80 | % |
99,883
|
8.63 | % | ||||||||||||||||||||||||||||
Rubber
products
|
—
|
—
|
—
|
—
|
1
|
—
|
14
|
—
|
169
|
0.01 | % | |||||||||||||||||||||||||||||
Retail
trade
|
3,711
|
4.65 | % |
13,142
|
14.06 | % |
6
|
0.01 | % |
1,042
|
0.18 | % |
11,322
|
0.98 | % | |||||||||||||||||||||||||
Services
|
19
|
0.02 | % |
—
|
—
|
14
|
0.01 | % |
109,087
|
18.62 | % |
139,876
|
12.08 | % | ||||||||||||||||||||||||||
Shoes,
apparel and other textile products
|
—
|
—
|
—
|
—
|
—
|
—
|
789
|
0.13 | % |
3,513
|
0.30 | % | ||||||||||||||||||||||||||||
Textile
|
1
|
—
|
—
|
—
|
—
|
—
|
6
|
—
|
3,169
|
0.27 | % | |||||||||||||||||||||||||||||
Transportation
material
|
—
|
—
|
1
|
—
|
—
|
—
|
1,719
|
0.29 | % |
3,426
|
0.30 | % | ||||||||||||||||||||||||||||
Wholesale
trade
|
1,737
|
2.18 | % |
2,614
|
2.81 | % |
22
|
0.03 | % |
70,241
|
11.98 | % |
138,513
|
11.97 | % | |||||||||||||||||||||||||
Wood
products and cork
|
—
|
—
|
3
|
—
|
—
|
—
|
1,226
|
0.21 | % |
1,818
|
0.16 | % | ||||||||||||||||||||||||||||
Total
|
79,874
|
100.00 | % |
93,472
|
100.00 | % |
105,136
|
100.00 | % |
586,232
|
100.00 | % |
1,157,542
|
100.00 | % |
(1)
|
The
financial statement for the fiscal year ended December 31, 2002 was
restated in the February 28, 2003 currency by applying the adjustments
rate derived from the internal Price Index published by
INDEC.
|
Fiscal
Years Ended December 31,
|
||||||||||||||||||||
2006
|
2005
|
2004
|
2003
|
2002
|
||||||||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||||||||||
Balance
at the beginning of the year
|
184,885
|
202,693
|
459,573
|
1,062,512
|
1,281,432
|
|||||||||||||||
Provisions
for loan losses
|
69,799
|
114,220
|
62,509
|
317,993
|
1,097,613
|
|||||||||||||||
Charge-offs
(1)
|
(87,587 | ) | (132,028 | ) | (319,389 | ) | (920,932 | ) | (1,316,533 | ) | ||||||||||
Advances
|
(3,513 | ) | (18,136 | ) | (10,545 | ) | (11,433 | ) | (91,197 | ) | ||||||||||
Consumer
|
(4,543 | ) | (39,081 | ) | (30,182 | ) | (38,146 | ) | (65,751 | ) | ||||||||||
Notes
discounted and purchased
|
(8,711 | ) | (17,418 | ) | (159 | ) | (30 | ) | (3,472 | ) | ||||||||||
Other
|
(70,820 | ) | (57,393 | ) | (278,503 | ) | (871,323 | ) | (1,156,113 | ) | ||||||||||
Balance
at the end of year
|
167,097
|
184,885
|
202,693
|
459,573
|
1,062,512
|
|||||||||||||||
Net
charge-off / average loans
|
0.97 | % | 1.49 | % | 3.63 | % | 7.72 | % | 1.35 | % |
(1)
|
Charge-offs
are not concentrated in any particular economic activity. Our management
estimates that of the Ps.87.6 million charged-off in the fiscal year
ended
December 31, 2006, Ps.69.1 million, or 78.90% were related to corporate
borrowers and Ps.18.5 million, or 21.10% were related to individual
consumers. Of the Ps.132.0 million charged-off in the fiscal year
ended
December 31, 2005, Ps.111.7 million, or 84.64% were related to corporate
borrowers and Ps.20.3 million, or 15.36% were related to individual
consumers. Of the Ps.319.4 million charged-off in the fiscal year
ended
December 31, 2004, Ps.281.4 million, or 88.09% were related to corporate
borrowers and Ps.38.0 million, or 11.91% were related to individual
consumers. Of the Ps.920.9 million charged-off in the fiscal year
ended
December 31, 2003, Ps.861.6 million, or 93.56% were related to corporate
borrowers and Ps.59.3 million, or 6.44% were related to individual
consumers. Of the Ps.1,316.5 million charged-off in the fiscal year
ended
December 31, 2002, Ps.1,157.7 million, or 87.94% were related to
corporate
borrowers and Ps.158.8 million, or 12.06% were related to individual
consumers. Charge-offs include reversal and
applications.
|
Fiscal
Years Ended December 31,
|
||||||||||||||||||||||||||||||||||||||||
2006
|
2005
|
2004
|
2003
|
2002
|
||||||||||||||||||||||||||||||||||||
Total
|
%
|
Total
|
%
|
Total
|
%
|
Total
|
%
|
Total
|
%
|
|||||||||||||||||||||||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||||||||||||||||||||||||||||||
Advances
|
19,947
|
19.02 | % |
11,550
|
11.24 | % |
14,707
|
2.90 | % |
7,903
|
1.77 | % |
81,721
|
1.60 | % | |||||||||||||||||||||||||
Notes
discounted and purchased
|
12,359
|
10.27 | % |
7,393
|
8.60 | % |
3,478
|
2.67 | % |
7,697
|
2.29 | % |
11,181
|
2.28 | % | |||||||||||||||||||||||||
Secured
with mortgages
|
8,081
|
5.96 | % |
7,082
|
6.05 | % |
13,310
|
4.27 | % |
17,857
|
4.97 | % |
32,055
|
4.96 | % | |||||||||||||||||||||||||
Chattel
mortgage
|
1,403
|
0.13 | % |
760
|
0.93 | % |
474
|
0.28 | % |
871
|
0.06 | % |
2,061
|
0.10 | % | |||||||||||||||||||||||||
Consumers
loans
|
23,296
|
15.73 | % |
14,664
|
11.49 | % |
10,343
|
4.64 | % |
16,623
|
3.42 | % |
66,052
|
3.34 | % | |||||||||||||||||||||||||
Financial
Loans
|
5,188
|
5.33 | % |
1,691
|
2.10 | % |
5
|
1.79 | % |
122
|
1.47 | % |
431,312
|
1.62 | % | |||||||||||||||||||||||||
Other
loans to governmental sector
|
—
|
14.18 | % |
49,324
|
38.67 | % |
80,729
|
73.14 | % |
103,417
|
76.10 | % |
200,298
|
72.35 | % | |||||||||||||||||||||||||
Other
|
96,823
|
29.38 | % |
92,421
|
20.92 | % |
79,647
|
10.31 | % |
305,083
|
9.92 | % |
237,832
|
13.75 | % | |||||||||||||||||||||||||
Total
|
167,097
|
100.00 | % |
184,885
|
100.00 | % |
202,693
|
100.00 | % |
459,573
|
100.00 | % |
1,062,512
|
100.00 | % |
Fiscal
Year ended December 31,
|
||||||||||||
2006
|
2005
|
2004
|
||||||||||
(in
thousands of pesos)
|
||||||||||||
Deposits
in domestic Bank’s offices
|
||||||||||||
Non-interest-bearing
demand deposits
|
||||||||||||
Average
|
||||||||||||
Pesos
|
2,094,140
|
1,636,017
|
1,122,143
|
|||||||||
Dollars
|
24,537
|
13,007
|
5,578
|
|||||||||
Total
|
2,118,677
|
1,649,024
|
1,127,721
|
|||||||||
Saving
accounts
|
||||||||||||
Average
|
||||||||||||
Pesos
|
2,342,303
|
2,189,515
|
2,061,226
|
|||||||||
Dollars
|
772,591
|
583,270
|
363,986
|
|||||||||
Total
|
3,114,894
|
2,772,785
|
2,425,212
|
|||||||||
Average
real rate
|
||||||||||||
Pesos
|
(6.52 | )% | (9.35 | )% | (6.86 | )% | ||||||
Dollars
|
(5.45 | )% | (7.76 | )% | (3.47 | )% | ||||||
Total
|
(6.26 | )% | (9.01 | )% | (6.35 | )% | ||||||
Time
deposits
|
||||||||||||
Average
|
||||||||||||
Pesos
|
5,112,665
|
4,852,674
|
3,972,531
|
|||||||||
Dollars
|
737,069
|
379,025
|
195,105
|
|||||||||
Total
|
5,849,734
|
5,231,699
|
4,167,636
|
|||||||||
Average
real rate
|
||||||||||||
Pesos
|
1.08 | % | (3.38 | )% | (3.22 | )% | ||||||
Dollars
|
(3.97 | )% | (6.79 | )% | (2.60 | )% | ||||||
Total
|
0.44 | % | (3.63 | )% | (3.19 | )% |
Maturing,
|
||||||||||||||||||||
Total
|
Within
3
months
|
After
3 but
within
6 months
|
After
6 but
within
12
months
|
After
12 months
|
||||||||||||||||
(in
thousands of pesos)
|
||||||||||||||||||||
Checking
|
2,374,689
|
2,374,689
|
—
|
—
|
—
|
|||||||||||||||
Savings
|
3,415,263
|
3,415,263
|
—
|
—
|
—
|
|||||||||||||||
Time
deposits
|
6,116,223
|
4,983,064
|
640,293
|
458,171
|
34,695
|
|||||||||||||||
Investment
accounts
|
145,337
|
13,996
|
131,069
|
272
|
—
|
|||||||||||||||
Other
|
454,244
|
424,583
|
8,322
|
21,339
|
—
|
|||||||||||||||
Total
|
12,505,756
|
11,211,595
|
779,684
|
479,782
|
34,695
|
Maturing,
|
||||||||||||||||||||
Total
|
Within
3
months
|
After
3 but
within
6 months
|
After
6 but
within
12
months
|
After
12 months
|
||||||||||||||||
(in
thousands of pesos)
|
||||||||||||||||||||
Domestic
offices
|
3,717,714
|
2,872,151
|
482,056
|
334,465
|
29,042
|
|||||||||||||||
Total
|
3,717,714
|
2,872,151
|
482,056
|
334,465
|
29,042
|
At
December 31,
|
||||||||||||||||||||||||
2006
|
2005
|
2004
|
||||||||||||||||||||||
Amount
|
Average
Annualized
Rate
|
Amount
|
Average
Annualized
Rate
|
Amount
|
Average
Annualized
Rate
|
|||||||||||||||||||
(in
thousands of pesos, except percentages)
|
||||||||||||||||||||||||
Total
amount outstanding at the end of the reported period
|
1,318,273
|
—
|
867,039
|
—
|
1,291,458
|
—
|
||||||||||||||||||
Average
during year
|
1,142,756
|
6.7 | % |
1,224,225
|
10.2 | % |
1,157,430
|
6.3 | % | |||||||||||||||
Maximum
month-end balance
|
1,318,273
|
—
|
2,049,672
|
—
|
1,291,458
|
—
|
§
|
Except
by express provision to the contrary established by-law, the Central
Bank
will not be affected by any regulations of a general character which
may
have been or shall have been enacted with reference to Public
Administration bodies and which may introduce limitations to the
authority
or powers of the Central Bank as set forth in its own
Charter.
|
§
|
The
Central Bank is empowered to make temporary advances to the Government
up
to an amount equivalent to 12% of the monetary base, which for this
purpose includes amounts constituted by the monetary circulation
plus the
sight deposits of the financial institutions with the Central Bank,
in
current account or in special accounts. It may also grant advances
up to
an amount not exceeding 10% of the cash resources obtained by the
Government in the past twelve months. At no time may the amount granted
as
temporary advances, excluding those exclusively allocated to the
payment
of obligations with the multilateral credit institutions, exceed
12% of
the monetary base. All advances so granted must be reimbursed within
the
next twelve months; should any of these advances remain unpaid after
its
due date, it will not be possible to use these powers again until
all owed
amounts shall have been reimbursed.
|
§
|
The
provisions of Decree No. 1131/01 are abrogated, and the validity
of
Articles 44, 46 paragraph (c), 47 and 48 of the Central Bank Charter,
regarding the powers and authority of the Superintendency of Financial
and
Foreign Exchange Entities, is reestablished in terms of the text
approved
as Article 1 of Law No. 24,144.
|
§
|
A
temporary regulation was introduced, applicable until December 2005,
authorizing the Central Bank to: (i) provide assistance to financial
institutions with liquidity and/or solvency problems, including those
undergoing restructuring by resolution of the Central Bank in terms
of
Article 35 bis of the Financial Institutions Law; and (ii) authorize
the
integration of the reserve requirements for financial institutions
with
financial assets other than cash, in the form of sight deposits with
the
Central Bank or in foreign currency accounts as per Art. 28 of the
Central
Bank Charter.
|
§
|
Decree
Nº 1599/05, modified the Law No. 23,928: by allowing reserves exceeding
100% of the monetary base may be allocated to the payment of obligations
assumed with international financial
entities.
|
§
|
Financial
statements and other quarterly and annual reports reflecting in
consolidated form the transactions of the financial entity, its local
and
foreign branches, and its local and foreign “significant subsidiaries” (as
defined below); and
|
§
|
Financial
statements and other quarterly and annual reports reflecting in
consolidated form the transactions of the financial entity, its local
and
foreign branches, its local and foreign “significant subsidiaries” (as
defined below), or entities or companies in the country and abroad
where
the financial entity has possession or control over more than 12.5%
of the
shares entitled to vote, in those cases determined by the Superintendency
of Financial and Foreign Exchange Institutions, and those companies
not
subject to consolidated supervision which the financial entity may
have
chosen to include with the prior approval of the Superintendency
of
Financial and Foreign Exchange
Institutions.
|
§
|
A
“subsidiary” of a local financial entity is any local or foreign financial
entity or company in any of the following
positions:
|
§
|
A
“significant subsidiary” is any subsidiary:
|
(1)
|
Whose
assets, possible commitments and other transactions recorded in memorandum
accounts represent 10% or more of the Computable Net Worth of the
local
financial entity and its subsidiaries abroad; or
|
(2)
|
Whose
results of operations corresponding to the current fiscal year represent
10% or more of the results of operations for the current fiscal year
of
the local financial entity and its subsidiaries abroad.
|
(i)
|
Cash
in the country;
|
(ii)
|
Current
accounts in Pesos, special guarantee accounts and accounts in connection
with the attention of pension benefits, of the financial entities
with the
Central Bank; and
|
(iii)
|
Minimum
cash accounts of the financial entities with the Central Bank, denominated
in U.S. dollars or other foreign
currencies.
|
Type
of Account
|
From
Dec-
2003
|
From
Jun-
2004
|
From
Aug-
2004
|
From
Jan-
2005
|
From
Jun-
2005
|
From
Jul-
2005
|
From
Aug-
2005
|
From
Dec-
2005
|
From
Feb-
2006
|
From
Apr-
2006
|
From
Aug-
2006
|
From
Oct-
2006
|
From
Dec-
2006
|
|||||||||||||
Mutual
Funds sight deposits (made accordingly CNV rules)
|
80%
|
80%
|
100%
|
100%
|
100%
|
100%
|
-(4)
|
-(4)
|
-(4)
|
-(4)
|
-(4)
|
-(4)
|
-(4)
|
|||||||||||||
Current
accounts
|
20%
|
18%
|
18%
|
16%
|
16%
|
16%
|
16%
|
15%
|
15%
|
17%
|
19%
|
19%
|
19%
|
|||||||||||||
Other
demand deposits
|
||||||||||||||||||||||||||
In
pesos
|
20%
|
18%
|
18%
|
16%
|
16%
|
16%
|
16%
|
15%
|
15%
|
17%
|
19%
|
19%
|
19%
|
|||||||||||||
In
foreign currency
|
20%
|
20%
|
30%
|
30%
|
30%
|
30%
|
30%
|
30%
|
30%
|
30%
|
30%
|
30%
|
30%
|
|||||||||||||
Savings
accounts
|
||||||||||||||||||||||||||
In
pesos
|
20%
|
18%
|
18%
|
16%
|
16%
|
16%
|
16%
|
15%
|
15%
|
17%
|
19%
|
19%
|
19%
|
|||||||||||||
In
foreign currency
|
20%
|
20%
|
30%
|
30%
|
30%
|
30%
|
30%
|
30%
|
30%
|
30%
|
30%
|
30%
|
30%
|
|||||||||||||
Current
accounts of financial institutions (1)
|
100%
|
100%
|
100%
|
100%
|
100%
|
100%
|
100%
|
100%
|
100%
|
100%
|
100%
|
100%
|
100%
|
|||||||||||||
Unused
balances from current-account advances effected
|
20%
|
18%
|
18%
|
16%
|
16%
|
16%
|
16%
|
15%
|
15%
|
17%
|
19%
|
19%
|
19%
|
|||||||||||||
Fixed-term
deposits (including “CEDROS ” and others with “CER” clauses), bonds for
acceptances—including liabilities for the sale or assignment of credits to
subjects other than financial institutions, reverse repurchases,
bonds and
stock-exchange reverse swaps, investments at constant term, with
advanced
cancellation or renewal option with the exception of fixed-term deposits
in US dollars payable in pesos and of sight and fixed-term deposits
made
under court order with funds allocated in cases under court jurisdiction,
and their immobilized balances by residual term
(3):
|
||||||||||||||||||||||||||
In
pesos
|
||||||||||||||||||||||||||
Up
to 29 days
|
18%
|
18%
|
18%
|
16%
|
16%
|
16%
|
16%
|
14%
|
14%
|
14%
|
14%
|
14%
|
14%
|
|||||||||||||
From
30 to 59 days
|
14%
|
14%
|
14%
|
13%
|
13%
|
13%
|
13%
|
11%
|
11%
|
11%
|
11%
|
11%
|
11%
|
|||||||||||||
From
60 to 89 days
|
10%
|
10%
|
10%
|
9%
|
9%
|
9%
|
9%
|
7%
|
7%
|
7%
|
7%
|
7%
|
7%
|
|||||||||||||
From
90 to 179 days
|
5%
|
5%
|
5%
|
4%
|
4%
|
4%
|
4%
|
2%
|
2%
|
2%
|
2%
|
2%
|
2%
|
|||||||||||||
From
180 to 365 days
|
3%
|
3%
|
3%
|
2%
|
2%
|
2%
|
2%
|
1%
|
1%
|
1%
|
0%
|
0%
|
0%
|
|||||||||||||
More
than 365 days (6)
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
-
|
-
|
-
|
|||||||||||||
In
foreign currency
|
||||||||||||||||||||||||||
Up
to 29 days
|
18%
|
18%
|
35%
|
35%
|
35%
|
35%
|
35%
|
35%
|
35%
|
35%
|
35%
|
35%
|
35%
|
|||||||||||||
From
30 to 59 days
|
14%
|
14%
|
28%
|
28%
|
28%
|
28%
|
28%
|
28%
|
28%
|
28%
|
28%
|
28%
|
28%
|
|||||||||||||
From
60 to 89 days
|
10%
|
10%
|
20%
|
20%
|
20%
|
20%
|
20%
|
20%
|
20%
|
20%
|
20%
|
20%
|
20%
|
|||||||||||||
From
90 to 179 days
|
5%
|
5%
|
10%
|
10%
|
10%
|
10%
|
10%
|
10%
|
10%
|
10%
|
10%
|
10%
|
10%
|
|||||||||||||
From
180 to 365 days
|
3%
|
3%
|
6%
|
6%
|
6%
|
6%
|
6%
|
6%
|
6%
|
6%
|
6%
|
6%
|
6%
|
|||||||||||||
More
than 365 days
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
|||||||||||||
Bonds
for foreign financial lines
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
|||||||||||||
Debt
securities (including corporate bonds)
|
||||||||||||||||||||||||||
a)
Debt issued as of January 1, 2002, including those from restructured
bonds, as per their residual term:
|
||||||||||||||||||||||||||
In
pesos
|
||||||||||||||||||||||||||
Up
to 29 days
|
18%
|
18%
|
18%
|
16%
|
16%
|
16%
|
16%
|
14%
|
14%
|
14%
|
14%
|
14%
|
14%
|
|||||||||||||
From
30 to 59
|
14%
|
14%
|
14%
|
13%
|
13%
|
13%
|
13%
|
11%
|
11%
|
11%
|
11%
|
11%
|
11%
|
|||||||||||||
From
60 to 89 days
|
10%
|
10%
|
10%
|
9%
|
9%
|
9%
|
9%
|
7%
|
7%
|
7%
|
7%
|
7%
|
7%
|
|||||||||||||
From
90 to 179 days
|
5%
|
5%
|
5%
|
4%
|
4%
|
4%
|
4%
|
2%
|
2%
|
2%
|
2%
|
2%
|
2%
|
|||||||||||||
From
180 to 365 days
|
3%
|
3%
|
3%
|
2%
|
2%
|
2%
|
2%
|
1%
|
1%
|
1%
|
0%
|
0%
|
0%
|
|||||||||||||
More
than 365 days (6)
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
-
|
-
|
-
|
Type
of Account
|
From
Dec-
2003
|
From
Jun-
2004
|
From
Aug-
2004
|
From
Jan-
2005
|
From
Jun-
2005
|
From
Jul-
2005
|
From
Aug-
2005
|
From
Dec-
2005
|
From
Feb-
2006
|
From
Apr-
2006
|
From
Aug-
2006
|
From
Oct-
2006
|
From
Dec-
2006
|
|||||||||||||
In
foreign currency
|
||||||||||||||||||||||||||
Up
to 29 days
|
18%
|
18%
|
35%
|
35%
|
35%
|
35%
|
35%
|
35%
|
35%
|
35%
|
35%
|
35%
|
35%
|
|||||||||||||
From
30 to 59
|
14%
|
14%
|
28%
|
28%
|
28%
|
28%
|
28%
|
28%
|
28%
|
28%
|
28%
|
28%
|
28%
|
|||||||||||||
From
60 to 89 days
|
10%
|
10%
|
20%
|
20%
|
20%
|
20%
|
20%
|
20%
|
20%
|
20%
|
20%
|
20%
|
20%
|
|||||||||||||
From
90 to 179 days
|
5%
|
5%
|
10%
|
10%
|
10%
|
10%
|
10%
|
10%
|
10%
|
10%
|
10%
|
10%
|
10%
|
|||||||||||||
From
180 to 365 days
|
3%
|
3%
|
6%
|
6%
|
6%
|
6%
|
6%
|
6%
|
6%
|
6%
|
6%
|
6%
|
6%
|
|||||||||||||
More
than 365 days
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
|||||||||||||
b)
Others
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
|||||||||||||
Fixed-term
deposits in US dollars, payable in pesos
|
0%
|
-(2)
|
-(2)
|
-(2)
|
-(2)
|
-(2)
|
-(2)
|
-(2)
|
-(2)
|
-(2)
|
-(2)
|
-(2)
|
-(2)
|
|||||||||||||
Bonds
with the Trust Fund for Assistance to Financial and Insurance
Institutions
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
0%
|
|||||||||||||
Sight
and term deposits made by judicial order with funds originated
in legal
actions currently under course and their immobilized
balances
|
||||||||||||||||||||||||||
In
pesos
|
10%
|
10%
|
10%
|
10%
|
10%
|
8%
|
8%
|
8%
|
8%
|
8%
|
10%
|
10%
|
10%
|
|||||||||||||
In
foreign currency
|
10%
|
10%
|
15%
|
15%
|
15%
|
15%
|
15%
|
15%
|
15%
|
15%
|
15%
|
15%
|
15%
|
|||||||||||||
Special
accounts in US dollars for the deposit of guarantees required in
futures
and options transactions at self-regulated markets subject to the
control
of the National Securities Commission
|
100%
|
100%
|
100%
|
100%
|
100%
|
100%
|
100%
|
100%
|
100%
|
100%
|
100%
|
100%
|
0%
|
|||||||||||||
Special
at-sight accounts in foreign currency
|
100%
|
100%
|
100%
|
100%
|
100%
|
100%
|
100%
|
100%
|
100%
|
100%
|
100%
|
100%
|
0%
|
|||||||||||||
Mutual
Funds deposits (except mutual funds sight deposits made accordingly
CNV
rules)
|
||||||||||||||||||||||||||
In
pesos
|
25%
|
25%
|
25%
|
25%
|
25%
|
18%
|
18%
|
18%
|
18%
|
18%
|
18%
|
|||||||||||||||
In
foreign currency
|
40%
|
40%
|
40%
|
40%
|
40%
|
40%
|
40%
|
40%
|
40%
|
40%
|
40%
|
|||||||||||||||
Special
deposits related to funds revenues from abroad – Decree No.
616/05
|
100%
|
100%
|
100%
|
100%
|
100%
|
100%
|
100%
|
100%
|
100%
|
|||||||||||||||||
Deposits
and other demand obligations in pesos, whose return exceeds 35%
(since
October 1, 2006) BADLAR rate of private financial institutions’ average
(5)
|
100%
|
100%
|
100%
|
100%
|
100%
|
(1)
|
Computable
for payment of their Minimum Required
Reserves.
|
(2)
|
This
type of funding was left without effect
as of May 15, 2004 by Communication “A” 4140 of Central Bank. The
different provisions derived from the applicability of this type
of
operation will remain effective until the maturity of existing
obligations
is reached.
|
(3)
|
Except,
term deposits made by judicial order with funds originated in
legal
actions currently under course and their immobilized balances,
mutual
funds term deposits and Special deposits related to funds revenues
from
abroad – Decree No. 616/05.
|
(4)
|
This
type of funding was left without effect
as of August 17, 2005 by Communication “A” 4406 of Central
Bank.
|
(5)
|
In
accordance with the Communication “A” 4532, effective as of April 1, 2006,
this concept not included the unemployment fund for the construction
workers.
|
(6)
|
This
classification was eliminated by Communication “A” 4549 of Central
Bank.
|
§
|
100%
reserve for any defect in the application of resources in foreign
currency
for the month in respect to which the calculation of the minimum
cash
requirement is made. See “Information on the Company—The
Argentine Banking System and its Regulatory Framework—Lending
Capacity Provided by Deposits in Foreign
Currency”.
|
(1)
|
Prefinancing
or financing of exports, carried out directly or through agents,
consignees or other proxies acting for the account and order of
the owner
of the goods. This comprises those operations for the purpose of
financing
working capital and/or the acquisition of objects related to the
production of goods to be exported, provided the flow of income
in foreign
currency deriving from such exports is sufficient to settle such
transactions.
|
(2)
|
Financing
transactions granted to goods, producers or processors, provided
they have
firm sale contracts for the goods to be produced for an exporter,
with
prices fixed in a foreign currency and involving fungible goods
with a
regular and customary quotation in foreign currency which is widely
known
and easily accessed by the public in local or international
markets.
|
(3)
|
Financing
transactions for producers of goods to be exported, either in the
same
condition or as part of other goods, by third-party purchasers,
provided
they have total pledges or guarantees in foreign currency from
such third
parties.
|
(4)
|
Financing
of investment projects, working capital and/or the acquisition
of any kind
of goods, including temporary importation of commodities, which
may
increase or be related to the production of goods for exportation.
Even
though income from exporter companies does not totally derive from
sales
abroad, financing may only be allocated if the income flow deriving
from
exportation is sufficient. It comprises those transactions where
financing
is granted via the Bank’s participation in “syndicated loans”, be they
with local or foreign entities (in force as from 23 September 2005
as per
Central Bank Communication “A”
4423).
|
(5)
|
Financing
to clients from the commercial portfolio and of a commercial nature
who
receive treatment for their consumption or housing credits –under the
provisions of the “Debtors’ Classification” regulations–destined for the
importation of capital goods (“BK” according to the Common Nomenclator for
the MERCOSUR attached as Annex I to Decree 690-02 and other complementary
provisions) which will result in an increase in the production
of goods
destined for domestic consumption. In order to grant such financing,
the
financial entities must verify that their clients have sufficient
paying
capacity considering at least two scenarios which contemplate significant
exchange rate variations within a term of up to one year and which,
in
either case, exceed the latest estimate available resulting from
the
“Market Expectations Survey” published by this institution (in force since
9 December 2005 under Central Bank Communication “A”
4453).
|
(6)
|
Debt
securities or certificates of participation in financial trusts
-including
other collection rights specifically acknowledged in the trust
agreement
to be constituted within the framework “IDB Loan Nº 1192/OC-AR“- whose
assets under management are loans originated by financial entities
under
the terms described in points (1) through (3)
above.
|
(7)
|
Debt
securities or certificates of participation in financial trusts,
issued in
foreign currency and with public offer authorized by the CNV, whose
assets
under management are documents guaranteed by mutual guarantee companies
or
by provincial funds created for the same purpose, and admitted
by the
Central Bank, acquired by the trustee for the purpose of financing
transactions under the terms and conditions described in points
(1)
through (3) above.
|
(8)
|
Financing
transactions for purposes other than those mentioned in the preceding
points, included in the credit program to which the IDB loan makes
reference as mentioned in the fourth point above, without exceeding
10% of
the lending capacity.
|
(9)
|
Interfinancing
loans (any interfinancing loans granted with such resources must
be
identified).
|
(10)
|
Central
Bank bills in U.S. dollars acquired by bidding or secondary negotiation
(such application must be as a minimum equivalent to the amount
of
deposits in U.S. dollars payable in pesos) ceased to be effective
on July
29, 2005 according to Communication "A" 4395 of the Banco
Central.
|
§
|
Contractual
cash flow of assets and
liabilities,
|
§
|
Current
cash flow to renew assets and
liabilities,
|
§
|
Cash
flow designed to prevent illiquidity of the bank,
and
|
§
|
Cash
flow designed to anticipate illiquidity in the financial system,
both with
and without compliance with minimum
requirements.
|
§
|
The
concentration of assets and liabilities in particular
clients;
|
§
|
The
general economic situation, probable trends and the impact on available
credit; and
|
§
|
The
ability to obtain funds through the sale of public debt instruments
and/or
liquid assets.
|
§
|
Make
loans in pesos and foreign
currency,
|
§
|
Receive
deposits in pesos and foreign
currency,
|
§
|
Issue
guarantees,
|
§
|
Underwrite,
place and broker equity and debt securities in the over-the-counter
market, subject to the prior approval of the
CNV,
|
§
|
Conduct
transactions in foreign currency,
|
§
|
Act
as fiduciary, and
|
§
|
Issue
credit cards.
|
§
|
The
prohibition of a bank from pledging its
shares,
|
§
|
Restriction
on incurring any liens upon its properties without prior approval
from the
Central Bank, and
|
§
|
Limitations
on transactions with directors or officers, including any company
or
person related to such directors or officers, on terms more favorable
than
those normally provided to clients. See “Information on the
Company—The Argentine Banking System and its Regulatory
Framework—Lending and Investment Limits—Related Persons”
below in this section.
|
§
|
Definitions
for Tier I (core) capital (“Tier I Capital”) and Tier II (supplemental)
capital (“Tier II Capital”),
|
§
|
A
system for weighing assets and off-balance sheet items according
to credit
risk (this weighted total referred to as the “Basle Risk Weighted
Assets”), and
|
§
|
As
of the end of 1992, a requirement that banks engaged in international
operations maintain
|
(1)
|
Tier
I Capital at least equal to 4.0% of Basle Risk Weighted Assets;
and
|
(2)
|
“Total
Capital”, equal to Tier I Capital plus up to an equal amount of Tier II
Capital, at least equal to 8.0% of Basle Risk Weighted
Assets.
|
§
|
“Basic
Net Worth”, which includes:
|
(1)
|
Capital
stock,
|
(2)
|
Capital
adjustments,
|
(3)
|
Reserves
and irrevocable capital
contributions,
|
(4)
|
Unappropriated
earnings,
|
(5)
|
Representative
instruments of debt, and
|
(6)
|
Third
parties’ participations for those corporations subject to a supervision
system on a consolidated basis;
|
§
|
Minimum
basic capital, and
|
§
|
Minimum
capital required for credit risk, which includes the minimum capital
requirement for market risk, plus the minimum capital requirement
for
interest rate risk.
|
(a)
|
10%
of the value of our fixed or illiquid
assets;
|
(b)
|
8%
of the value of certain categories of financial or liquid assets,
net of
certain allowances and reserves, multiplied by a coefficient based
on the
perceived risk of such assets; and
|
(c)
|
8%
of certain assets of the non-financial public sector as accounted
for in
investment accounts or under special valuation criteria determined
by the
Central Bank.
|
§
|
Cash,
gold, public securities subject to minimum capital requirements
for market
risk, and debt instruments issued by the Central Bank were assigned
a 0%
risk value;
|
§
|
Correspondents’
accounts and other accounts at sight with banks of the country
and abroad
rated as “investment grade” and bonds issued by governments of member
countries of the Organization of Economic Cooperation and Development
(“OECD”), which are internationally rated “AA” or higher, were assigned a
20% risk value;
|
§
|
Debt
instruments issued by Argentine provinces, municipalities or other
public
sector agencies, which are not expressly guaranteed by the national
government were assigned a 100% risk
value;
|
§
|
Loans
to the non-financial private sector with preferred guarantees in
cash,
gold or bonds on fixed-term deposit certificates issued by the
creditor
entity itself and with automatic reimbursements for export transactions
corresponding to multilateral and bilateral foreign trade agreements
were
assigned a 0% risk value;
|
§
|
Loans
to the non-financial private sector with preferred guarantees granted
by
mutual guarantee companies registered with the Central Bank, export
credit
insurance policies and documentary credits in use were assigned
a 50% risk
value;
|
§
|
Purchase
money, home mortgage loans and automobile-backed loans were assigned
a 50%
risk value, provided they do not exceed 75% of their appraisal
value;
|
§
|
The
amount of a loan exceeding 75% of their appraisal value and most
unsecured
loans and debt instruments as well as holdings of listed stock
were
assigned a 100% risk value; and
|
§
|
Loans
to the non-financial public sector not guaranteed by the national
government were assigned a 100% risk
value.
|
Period
|
ALFA1
|
January
/ December 2004
|
0.05
|
January
/ December 2005
|
0.15
|
January
/ December 2006
|
0.30
|
January
/ December 2007
|
0.50
|
January
/ December 2008
|
0.75
|
From
January 2009
|
1.00
|
§
|
Debt
securities issued by the National Government, except for those
held in
investment accounts, and quotas in common investment funds that
invest in
those securities; provided that, such securities and/or holdings
are
usually listed on a national securities exchange;
and
|
§
|
Shares
of capital stock of Argentine companies included in the Argentine
stock
market index (or “Merval Index”) and quotas in common investment funds
that invest in those shares.
|
§
|
Debt
securities (i.e., positions held in debt securities issued by foreign
companies, sovereign securities issued by foreign governments and
quotas
in common investment funds; provided that, such securities and/or
holdings
are usually listed on a national securities exchange);
and
|
§
|
Shares
(i.e., positions held in shares of capital stock of foreign companies,
quotas in common investment funds; provided that, such securities,
holdings and/or indexes are usually listed on a national securities
exchange). If any of the assets mentioned in this clause are listed
in
different stock markets in diverse foreign currencies, the listing
price
and foreign currency of the most representative stock market (in
terms of
the volume of transactions in the relevant asset) will be taken
into
consideration for purposes of these new capital
requirements.
|
§
|
Securities
and derivative instruments that are already subject to minimum
capital
requirements for market risk;
|
§
|
Holdings
in foreign currency not subject to minimum capital for market risk
as they
are below the minimum applicable
limits;
|
§
|
Banker’s
acceptances;
|
§
|
Assets
affected, covered by derivatives agreements made with foreign banks
with
international risk rate “A” or above, granted by international rating
agencies accepted by the Central
Bank;
|
§
|
Subordinated
debt that is included in the calculation of Complementary Net Worth,
and
other assets deductible from minimum capital integration;
and
|
§
|
Operations
for spot of securities and foreign
currency.
|
Period
|
ALFA2
|
January
/ December 2004
|
0.20
|
January
/ December 2005
|
0.40
|
January
/ December 2006
|
0.70
|
From
January 2007
|
1.00
|
§
|
Temporary
limitation on the amount of deposits a bank may
accept;
|
§
|
Institutional
restrictions as per expansion capacity and dividends distribution
in
cash;
|
§
|
Revocation
of the license of a bank to conduct foreign exchange transactions,
and in
some extreme cases; and
|
§
|
Revocation
of the license of a bank to
operate.
|
At
December 31, 2006
|
||||
(in
millions of Pesos,
except
percentages)
|
||||
Basle
Accord
|
||||
Total
capital
|
1,876.4
|
|||
Risk-weighted
asset
|
7,570.4
|
|||
Ratio
of total capital to risk-weighted assets (1)
|
24.8 | % | ||
Required
capital
|
605.6
|
|||
Excess
capital
|
1,270.8
|
|||
Central
Bank’s Rules(2)
|
||||
Total
capital
|
2,089.7
|
|||
Risk
and Fixed weighted assets
|
12,059.1
|
|||
Ratio
of total capital to risk-weighted assets (3)
|
17.3 | % | ||
Required
capital (4)
|
1,004.6
|
|||
Excess
capital
|
1,085.2
|
(1)
|
Under
the risk-based capital requirements of the Basle Accord, the Bank
would be
required to maintain a minimum ratio of total capital to risk-weighted
assets of 8%.
|
(2)
|
Calculated
on a consolidated basis in accordance with Central Bank
requirements.
|
(3)
|
Under
the risk-based capital requirements of the Central Bank, we are
required
to maintain a minimum ratio of total capital to risk and fixed
weighted
assets of 10% and 8% (depending upon the nature of the asset) by
application of an alpha correction factor equal to 0.05 over financing
to
the national public sector granted up to May 31,
2003.
|
(4)
|
The
Bank must maintain a surplus of minimum paid-in capital amounting
to at
least Ps.46,559 million, equivalent to 0.25% of the amount of values
under
custody for securities representing investments from pension funds,
as
well as in connection with its function as registrar of mortgage-backed
bonds, invested in national public securities and other destinations
authorized by the BCRA and guaranteed in favor of the said
Entity.
|
§
|
A
debt issue in a country which must be a member of the OECD and
at the same
time have an “AAA” rating in respect of its sovereign
debt;
|
§
|
An
issue of capital stock approved by the relevant local authorities
and
according to which the shares could be freely traded either in
such local
market or in the market of a member nation of the OECD with an
“AAA”
rating in respect of its sovereign
debt;
|
§
|
A
debt issue to an Argentine financial entity which complies with
the
alternative procedure described in (a) above;
or
|
§
|
A
transaction with a foreign bank with a minimum credit rating of
“A”, by
which the Argentine entity would receive deposits or take loans
from such
foreign bank. The purpose of such requirement was to have the Argentine
financial institutions exposed to scrutiny and analysis by third
parties
considered by the Central Bank to be rating demanding in matters
that have
to do with credit analysis and quality control. The need to respond
to the
expectations of such third parties at the same time created for
the
Central Bank an additional source of quality control over the Argentine
banking system. While this requirement remained in force the Bank
complied
with it at all times.
|
§
|
The
creation of a registry of auditors;
|
§
|
The
implementation of strict accounting procedures to be observed by
auditors;
|
§
|
The
payment of a guarantee of compliance by such auditors so as to
induce them
to fully comply with the procedures;
and
|
§
|
The
creation of a Central Bank division in charge of verifying the
observance
of the established regulations by the external
auditors.
|
§
|
15%
of the equivalent in dollars of their Bank’s Computable Net Worth
(Responsabilidad Patrimonial Computable or “RPC”), as registered at the
close of the month that is two months prior to the relevant month
plus the
amount that results from multiplying 5% of the total amount transacted
with clients in the purchase and sale of foreign currencies in
the month
|
§
|
And
a minimum equivalent to US$5,000,000 (for the banks), these minimum
limits
may be increased according to the number of establishments devoted
to
foreign exchange transactions and by operations with holdings in
foreign
currencies other than the dollar or the Euro and other permitted
transactions. Banco Francés maintains the limit indicated in the point
above mentioned.
|
§
|
Gold
and foreign currency resources available in the
country;
|
§
|
Gold
and foreign currency resources available
abroad;
|
§
|
Foreign
public and private securities;
|
§
|
Cash
or future foreign-exchange purchases pending
settlement;
|
§
|
Cash
or future public and private security purchases pending
settlement;
|
§
|
Cash
or future foreign-exchange sales pending
settlement;
|
§
|
Cash
or future public and private security sales pending settlement;
and
|
§
|
Foreign-exchange
holdings in the form of deposits and investments at any term in
banks from
abroad and all kinds of liquid investments
abroad.
|
§
|
Negative
global net position (liabilities exceeding assets), 30% of the
Computable
Net Worth until 31 December 2006. As from 1 January 2007 and according
to
the provisions of Communications “A” 4577 and 4598, 15% of the Computable
Net Worth liability, with the possibility of an additional 15%
to the
extent that the entity at the same time has recorded: a) medium
and long
term financings in pesos to non-financial private sector under
certain
conditions for an amount equivalent to the increase of said limit;
and b)
an increase in the minimum capital requirement equivalent to the
increase
of the general limit of the global negative net position in foreign
currency.
|
§
|
Positive
global net position (assets exceeding liabilities), the least of
the
following:
|
(1)
|
30%
of the Computable Net Worth.
|
(2)
|
Own
liquid resources.
|
§
|
Shares
of local companies.
|
§
|
Various
credits (including the net balance favorable to Entity corresponding
to
the Minimum Presumed Income Tax. Undeductible of Basic Net
Worth).
|
§
|
Property
for own use.
|
§
|
Various
property items.
|
§
|
Organization
and development expenses.
|
§
|
Goodwill.
|
§
|
Financing
transactions for related clients.
|
§
|
Any
individual or entity controlling a bank, controlled by a bank or
affiliated with a bank, as defined by the Central
Bank;
|
§
|
Any
entity that both controls the bank and has common directors to
the extent
such directors, voting together, will constitute a simple majority
of the
boards of directors of the bank and such entity;
or
|
§
|
In
certain exceptional cases, any individual or entity whom the Central
Bank
has determined to be in a position to adversely affect the financial
condition of the bank.
|
§
|
Holding
or controlling, directly or indirectly, 25% of the voting stock
of the
controlled person;
|
§
|
Having
held 50% or more of the voting stock of the controlled person at
the time
of the last election of that entity’s board of
directors;
|
§
|
Any
type of equity holding which creates the ability to vote or direct
the
vote so as to prevail on any issue considered at the controlled
person’s
general shareholders’ meeting or meeting of the board of directors;
or
|
§
|
When
a person is determined by the Board of Directors of the Central
Bank to be
exercising any influence, directly or indirectly, on the management
or
policies of the bank.
|
§
|
Local
financial institutions whose transactions are subject to consolidation
by
lender or borrower in terms of regulations on consolidated supervision
and
which are rated CAMEL 1 or 2:
|
(1)
|
100%
when the entity receiving the loan is rated
1.
|
(2)
|
If
the receiving entity is rated 2, 10% without limitations and an
additional
90% to be used if the term for the loans and other credit facilities
not
exceed 180 days.
|
§
|
Local
financial institution not included in the above definition:
10%.
|
§
|
Local
companies consolidated by the financial entity in terms of the
consolidated supervision regulations issued by the Central Bank
and whose
only object is one of the activities defined as “complementary services of
the financial activity” that are mentioned
below:
|
(1)
|
Stock-exchange
or over-the-counter agent in stock exchanges or
markets.
|
(2)
|
Issuance
of credit or debit or similar
cards.
|
(3)
|
Financial
assistance through lease transactions in capital goods, durable
goods or
real property acquired for such purpose or in connection with credits
from
sales.
|
(4)
|
Temporary
acquisition of shareholdings in companies to facilitate their development
in order to sell such holdings afterwards. The granting of financing
or
management and planning advice to such
companies.
|
(a)
|
If
the controlling financial entity is rated 1:
100%.
|
(b)
|
If
the rating is 2, 10% without limitations, plus an additional 90%
to be
used if the term of the loans and other credit facilities does
not exceed
180 days.
|
§
|
All
other domestic companies not complying with the provisions mentioned
in
the preceding point: 10%.
|
§
|
Foreign
financial institutions rated as “Investment Grade”: 10%; all others, 5%
for non-guaranteed operations and up to 10% for guaranteed operations,
without exceeding 10% as a whole.
|
§
|
All
other transactions: 5% without guarantee and up to 10% with guarantees,
without exceeding 10% as a whole.
|
§
|
Foreign
financial institutions which are subsidiaries of the domestic institution
subject to oversight on a consolidated basis (Communication “A” 2829 of
the Central Bank);
|
§
|
Foreign
banks controlling domestic financial institutions or their branches
or
subsidiaries abroad (Communication “A” 2829 of the Central
Bank);
|
§
|
When
the Related Person is a company that has been fully consolidated
by the
bank and is exclusively involved in certain activities that are
complementary to financial intermediation, the foregoing traditional
restrictions with regard to investments and loans apply;
and
|
§
|
When
the Related Person is a company expressly referred to as an exempted
entity under Article 28 of Law No. 21,726 and only in respect of
equity
investments, the bank is limited to lending to such Related Person
and
only in accordance with the previous traditional
restrictions.
|
§
|
National
Government;
|
§
|
Provincial
Governments;
|
§
|
City
of Buenos Aires;
|
§
|
Municipal
Governments; and
|
§
|
Central
administration, ministries, departments and their decentralized
and
autonomous entities and other official
bodies.
|
§
|
In
order to develop their activities, they should not require resources
from
the state budget –be it the national, municipal, provincial or belonging
to the Autonomous City of Buenos Aires– for such concepts as transfers,
capital contributions –excepting those corresponding to their
incorporation – or reimbursable financial assistance- destined for
covering expenses and/or investments made in the course of their
normal
and customary businesses, with the only exception of those which
may have
been contemplated in the 2001 and 2003
budgets;
|
§
|
Technical
and professional independence of their managerial bodies for implementing
corporate policies;
|
§
|
To
trade their goods and/or services at market
prices;
|
§
|
To
possess fixed assets; the use of which in the activity is not subject
to
any condition from their shareholders;
and
|
§
|
No
distribution of dividends among their
shareholders.
|
§
|
Their
creation must have been ordered by a national
law;
|
§
|
They
must create a stock corporation according to the rules of Chapter
II,
Sections V and VI of the Law of Corporations Number 19,550 (stock
corporations and corporations with majority state
partcipation);
|
§
|
They
must have majority National State participation, be it direct or
indirect,
according to the provisions of the said
Law;
|
§
|
They
must be for the specific purpose of developing activities in the
power
supply sector; and
|
§
|
They
must be subject to internal and external control by the National
Public
Sector in terms of the Financial Administration Law and the National
Public Sector’s Control System –Law No.
24,156-.
|
§
|
Transactions
of the national public sector: 50%, this limit include loans granted
to
governments from other jurisdictions guaranteed by their participation
in
the federal tax collection system;
|
§
|
Total
of transactions granted to each provincial jurisdiction and the
city of
Buenos Aires (excluding those comprised in the previous paragraph
which
must be guaranteed by the collection of local taxes or by pledge
or
implemented under leasing agreements: 10%. This limit includes
financing
operations granted to municipal governments in the respective jurisdiction
and guaranteed by their participation in the collection of provincial
taxes;
|
§
|
Total
of transactions with each municipal jurisdiction, which must be
guaranteed
by the collection of local taxes or by pledge, or implemented under
leasing agreements: 3%. Total financing granted to the above-mentioned
jurisdictions (excluding those mentioned in the previous paragraph)
: 15%;
and
|
§
|
Total
of transactions comprised in the first three points above:
75%.
|
§
|
Evidences
a cash reserve deficiency,
|
§
|
Has
not satisfied certain technical
standards,
|
§
|
Has
not maintained minimum net worth standards,
or
|
§
|
Is
deemed by the Central Bank to have impaired solvency or
liquidity.
|
§
|
Deposits
made by other financial institutions, including certificates of deposit
acquired by secondary trading;
|
§
|
Deposits
made by persons directly or indirectly related to the financial
institution;
|
§
|
Deposits
acquired by means of offering incentives, including deposits under
the El
Libretón program;
|
§
|
Certificates
of deposit of securities, acceptances or
guarantees;
|
§
|
Those
deposits made after July 1, 1995 and to September 17, 1998, at a
rate
exceeding by two percentage points per annum or more than paid by
the
Banco Nación for similar terms and, after such date, at a rate exceeding
by two percentage points per annum the rolling average for the last
five
banking days of the deposit rates found by the survey performed by
the
Central Bank; and
|
§
|
Certificates
of deposit transferable whose ownership has been acquired by way
of
endorsement.
|
§
|
“A”
3358 of November 9, 2001 of the Central Bank, contributions percentage
increased to 0.03% effective as of the contribution due December
2001.
|
§
|
“A”
4206 of September 14, 2004 of the Central Bank, contributions percentage
decreased to 0.02% effective as of the contribution due September
2004.
|
§
|
“A”
4271 of December 30, 2004 of the Central Bank, contributions percentage
decreased to 0.015% effective as of the contribution due January
2005.
|
§
|
Increase
private sector loans with a conservative risk assessment
strategy;
|
§
|
Reduce
our public sector exposure in order to comply with regulations that
limit
public sector holdings to 35% of total assets and to adequate our
balance
sheet to our historical
composition;
|
§
|
Increase
retail deposits, while limiting time deposits adjusted by CER
index;
|
§
|
Further
develop the transactional business as a source of fee income;
and
|
§
|
Improve
our assets and liabilities structure (including the sale of public
sector
assets, given the increase in public sector assets’ market value and the
marked to market of the remaining listed public sector
bonds).
|
§
|
Valuation
Criteria
|
(1)
|
National
Government Secured loans
|
(2)
|
Government
Securities and Other credit assistance to the Public
Sector
|
(3)
|
Effects
caused by court measures related to deposits (constitutional protection
actions)
|
(4)
|
Tax
Effects
|
Fiscal
Year Ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(in
thousands of pesos)
|
||||||||||
Interest
on cash and due from banks
|
17,353
|
25,364
|
12,641
|
|||||||
Interest
on loans to the financial sector
|
91,875
|
21,245
|
5,675
|
|||||||
Interest
on overdraft
|
102,072
|
41,346
|
25,184
|
|||||||
Interest
on loans with privileged guarantees
|
52,260
|
45,109
|
46,256
|
|||||||
Interest
on credit card loans
|
30,485
|
24,095
|
17,606
|
|||||||
Interest
on other loans
|
543,662
|
498,423
|
354,247
|
|||||||
Net
income from government and private securities
|
559,877
|
209,438
|
182,183
|
|||||||
Interest
from other receivables from financial transactions
|
35,314
|
10,374
|
6,921
|
|||||||
Indexation
by benchmark stabilization coefficient (CER)
|
354,566
|
663,743
|
375,921
|
|||||||
Other
|
148,940
|
115,015
|
128,191
|
|||||||
Total
|
1,936,404
|
1,654,152
|
1,154,825
|
|||||||
|
December
31 2006
vs.
December
31 2005
Increase
(Decrease)
|
December
31 2005
vs.
December
31 2004
Increase
(Decrease)
|
|||||
|
(in
thousands of pesos)
|
(in
thousands of pesos)
|
|||||
Financial
Income due to changes in the volume of interest-earning
assets
|
(45,870
|
)
|
253,128
|
||||
Financial
Income due to changes in average nominal rates of interest-earning
assets
|
332,526
|
202,735
|
|||||
Financial
Income due to changes in the volume and average nominal rates of
interest-earning assets
|
(9,945
|
)
|
47,966
|
||||
Net
Change
|
276,711
|
503,829
|
|||||
Fiscal
Year Ended December 31,
|
||||||||||
2006
|
2005
|
2004)
|
||||||||
(in
thousands of pesos)
|
||||||||||
Interest
on checking accounts
|
29,913
|
23,782
|
20,359
|
|||||||
Interest
on savings deposits
|
4,811
|
3,675
|
3,639
|
|||||||
Interest
on time deposit (1)
|
307,084
|
152,660
|
116,569
|
|||||||
Interest
from other liabilities from financial transactions
|
37,650
|
28,001
|
21,845
|
|||||||
Indexation
by benchmark stabilization coefficient (CER)
|
121,321
|
306,815
|
166,712
|
|||||||
Listed-price
differences
|
-
|
525
|
-
|
|||||||
Other
|
67,566
|
93,491
|
129,236
|
|||||||
Total
|
568,345
|
608,949
|
458,360
|
(1)
Includes
interest on “CEDROS”.
|
|
December
31, 2006
vs.
December
31, 2005
Increase
(Decrease)
|
December
31, 2005
vs.
December
31, 2004
Increase
(Decrease)
|
|||||
|
(in
thousands of pesos)
|
(in
thousands of pesos)
|
|||||
Financial
Expense due to changes in the volume of interest-bearing
liabilities
|
(6,370
|
)
|
5,283
|
||||
Financial
Expense due to changes in average nominal rates of interest-bearing
liabilities
|
(45,967
|
)
|
154,165
|
||||
Financial
Expense due to changes in the volume and average nominal rates of
interest-bearing liabilities
|
309
|
1,867
|
|||||
Net
Change
|
(52,028
|
)
|
161,315
|
||||
|
December
31, 2006
vs.
December
31, 2005
Increase
(Decrease)
|
December
31, 2005
vs.
December
31, 2004
Increase
(Decrease)
|
|||||
|
(in
thousands of pesos)
|
(in
thousands of pesos)
|
|||||
Gross
Intermediation Margin due to changes in the volume of interest-earning
assets and interest-bearing liabilities
|
(39,500
|
)
|
247,845
|
||||
Gross
Intermediation Margin due to changes in average nominal rates of
interest-earning assets and interest-bearing liabilities
|
378,493
|
48,570
|
|||||
Gross
Intermediation Margin due to changes in the volume and average nominal
rates of interest-earning assets and interest-bearing
liabilities
|
(10,254
|
)
|
46,099
|
||||
Net
Change
|
328,739
|
342,514
|
|||||
Fiscal
Year Ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
|
(in
thousands of pesos)
|
|||||||||
Service
charges on deposit accounts
|
175,121
|
141,885
|
136,537
|
|||||||
Credit
card operations
|
97,250
|
75,913
|
74,540
|
|||||||
Other
fees related to foreign trade
|
39,192
|
33,051
|
24,215
|
|||||||
Credit-related
fees
|
18,114
|
14,391
|
7,668
|
|||||||
Fund
management fees
|
401,107
|
317,633
|
257,520
|
|||||||
Capital
markets and securities activities
|
11,332
|
9,496
|
8,798
|
|||||||
Rental
of safety deposit boxes
|
14,038
|
11,419
|
9,210
|
|||||||
Fees
related to guarantees
|
1,093
|
1,791
|
2,547
|
|||||||
Insurance
agency
|
44,707
|
20,409
|
18,101
|
|||||||
Other
|
113,921
|
95,179
|
45,777
|
|||||||
Total
|
915,875
|
721,167
|
584,913
|
Fiscal
Year Ended December 31,
|
||||||||||
2006
|
2005
|
2004
(1)
|
||||||||
|
(in
thousands of pesos)
|
|||||||||
Personnel
expenses
|
452,919
|
372,128
|
308,400
|
|||||||
Fees
and external administrative services
|
17,492
|
10,852
|
10,226
|
|||||||
Taxes
|
46.937
|
37,818
|
30,949
|
|||||||
Utilities
|
21,216
|
20,989
|
19,860
|
|||||||
Depreciation
of Bank property and equipment
|
31,781
|
29,248
|
34,727
|
|||||||
Credit
card advertising and issuance expense
|
30,217
|
16,302
|
12,157
|
|||||||
Courier
transportation
|
10,631
|
7,213
|
11,688
|
|||||||
Advertising
and promotion (excluding credit card advertising)
|
38,918
|
34,146
|
23,433
|
|||||||
Maintenance
and repairs
|
30,712
|
26,157
|
23,656
|
|||||||
Business
travel and development
|
16,628
|
12,961
|
10,981
|
|||||||
Staff
welfare
|
32,094
|
25,565
|
21,411
|
|||||||
Amortization
of organization and development expenses
|
22,967
|
28,082
|
38,104
|
|||||||
Rentals
|
44,879
|
38,968
|
34,237
|
|||||||
Other
|
130,013
|
115,406
|
100,000
|
|||||||
Total
|
927,404
|
775,835
|
679,829
|
(1)
|
Restated
from its original version to apply the adjustments to prior years’ income
to these Consolidated Financial Statements based on Argentine Central
Bank’s regulations (see Note
3.4.18.).
|
Fiscal
Year Ended December
31,
|
||||||||||
2006
|
2005
|
2004
(2)
|
||||||||
(in
thousands of pesos, except percentages)
|
||||||||||
Net
Income before income tax and minority interest
|
290,733
|
153,067
|
35,954
|
|||||||
Statutory
tax rate
|
35
|
%
|
35
|
%
|
35
|
%
|
||||
Income
tax (at statutory rate)
|
101,757
|
53,573
|
12,584
|
|||||||
Deferred
tax
|
(8,050
|
)
|
(84,700
|
)
|
—
|
|||||
Inflation
adjustment not deductible
|
—
|
—
|
—
|
|||||||
Tax-exempt
income
|
(27,763
|
)
|
(54,363
|
)
|
(71,766
|
)
|
||||
Unrealized
valuation difference
|
—
|
—
|
||||||||
Loss
on capital contribution in kind to subsidiaries
|
—
|
—
|
||||||||
Allowances
on deferred tax assets
|
8,050
|
84,700
|
(23,624
|
)
|
||||||
Other
|
(145,674
|
)
|
(12,815
|
)
|
(73,881
|
)
|
||||
Income
tax (gain) / loss
|
(71,680
|
)
|
(13,605
|
)
|
(156,687
|
)
|
||||
(Allowances)
|
—
|
—
|
(83,552
|
)
|
||||||
Income
tax (gain) / loss, net
|
(71,680
|
)
|
(13,605
|
)
|
(73,135
|
)
|
||||
Actual
income tax
|
71,680
|
13,605
|
5,638
|
|||||||
Deferred
income tax (1)
|
—
|
—
|
67,497
|
(1)
|
Included
in Other Income and Income Tax.
|
(2)
|
Restated
from its original version to apply the adjustments to prior years’ income
to these Consolidated Financial Statements based on Argentine Central
Bank’s regulations (see Note
3.4.18.).
|
Remaining
Maturity or Earliest Repricing Intervals at December 31,
2006
|
|||||||||||||||||||
0-3
months
|
3
Months-
One
Year
|
1-5
Years
|
5-10
Years
|
Over
10 Years
|
Total
|
||||||||||||||
|
(in
thousands of pesos, except percentages)
|
||||||||||||||||||
Interest-earning
assets
|
|||||||||||||||||||
Interest
earning deposits in banks
|
1,866,100
|
—
|
—
|
—
|
—
|
1,866,100
|
|||||||||||||
Government
securities
|
4,092,148
|
63,922
|
22,177
|
815
|
4,760
|
4,183,822
|
|||||||||||||
Corporate
bonds
|
32,880
|
64,410
|
35,610
|
1,597
|
—
|
134,497
|
|||||||||||||
Loans
(1)
|
6,773,566
|
1,663,161
|
1,092,157
|
106,642
|
65,844
|
9,701,370
|
|||||||||||||
Total
|
12,764,694
|
1,791,493
|
1,149,944
|
109,054
|
70,604
|
15,885,789
|
|||||||||||||
Interest-bearing
liabilities
|
|||||||||||||||||||
Deposits
|
9,576,649
|
610,508
|
1,365
|
—
|
—
|
10,188,522
|
|||||||||||||
Corporate
bonds
|
—
|
248,638
|
—
|
—
|
—
|
248,638
|
|||||||||||||
Due
to other banks
|
897,531
|
—
|
—
|
—
|
—
|
897,531
|
|||||||||||||
Total
|
10,474,180
|
859,146
|
1,365
|
—
|
—
|
11,334,691
|
|||||||||||||
Asset/liability
gap
|
2,290,514
|
932,347
|
1,148,579
|
109,054
|
70,604
|
4,551,098
|
|||||||||||||
Cumulative
sensitivity gap
|
2,290,514
|
3,222,861
|
4,371,440
|
4,480,494
|
4,551,098
|
||||||||||||||
Cumulative
sensitivity gap as a percentage of total interest-earning
assets
|
14.42
|
%
|
20.29
|
%
|
27.52
|
%
|
28.20
|
%
|
28.65
|
%
|
Remaining
Maturity or Earliest Repricing Intervals at December 31,
2006
|
|||||||||||||||||||
0-3
months
|
3
Months-
One
Year
|
1-5
Years
|
5-10
Years
|
Over
10 Years
|
Total
|
||||||||||||||
(in
thousands of pesos, except percentages)
|
|||||||||||||||||||
Interest-earning
assets:
|
|
|
|
|
|
||||||||||||||
Interest
earning deposits in banks
|
1,289,073
|
—
|
—
|
—
|
—
|
1,289,073
|
|||||||||||||
Government
securities
|
3,958,753
|
63,541
|
11,733
|
239
|
192
|
4,034,458
|
|||||||||||||
Corporate
bonds
|
26,961
|
8,939
|
24,955
|
—
|
—
|
60,855
|
|||||||||||||
Loans
(1)
|
5,784,008
|
1,187,740
|
1,078,413
|
106,642
|
65,844
|
8,222,647
|
|||||||||||||
Total
|
11,058,795
|
1,260,220
|
1,115,101
|
106,881
|
66,036
|
13,607,033
|
|||||||||||||
Interest-bearing
liabilities:
|
|||||||||||||||||||
Deposits
|
8,066,204
|
376,517
|
828
|
—
|
—
|
8,443,549
|
|||||||||||||
Corporate
bonds
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||
Due
to other banks
|
389,872
|
—
|
—
|
—
|
—
|
389,872
|
|||||||||||||
Total
|
8,456,076
|
376,517
|
828
|
—
|
—
|
8,833,421
|
|||||||||||||
Asset/liability
gap
|
2,602,719
|
883,703
|
1,114,273
|
106,881
|
66,036
|
4,773,612
|
|||||||||||||
Cumulative
sensitivity gap
|
2,602,719
|
3,486,422
|
4,600,695
|
4,707,576
|
4,773,612
|
||||||||||||||
Cumulative
sensitivity gap as a percentage of total interest-earning
assets
|
19.13
|
%
|
25.62
|
%
|
33.81
|
%
|
34.60
|
%
|
35.08
|
%
|
|
Remaining
Maturity or Earliest Reprising Intervals at December 31,
2006
|
||||||||||||||||||
|
0-3
months
|
3
Months-
One
Year
|
1-5
Years
|
5-10
Years
|
Over
10 Years
|
Total
|
|||||||||||||
|
(in
thousands of pesos, except percentages)
|
||||||||||||||||||
Interest-earning
assets:
|
|||||||||||||||||||
Interest
earning deposits in banks
|
577,027
|
—
|
—
|
—
|
—
|
577,027
|
|||||||||||||
Government
securities
|
133,395
|
381
|
10,444
|
576
|
4,568
|
149,364
|
|||||||||||||
Corporate
bonds
|
5,919
|
55,471
|
10,655
|
1,597
|
—
|
73,642
|
|||||||||||||
Loans
(1)
|
989,558
|
475,421
|
13,744
|
—
|
—
|
1,478,723
|
|||||||||||||
Total
|
1,705,899
|
531,273
|
34,843
|
2,173
|
4,568
|
2,278,756
|
|||||||||||||
Interest-bearing
liabilities:
|
|||||||||||||||||||
Deposits
|
1,510,445
|
233,991
|
537
|
—
|
—
|
1,744,973
|
|||||||||||||
Corporate
bonds
|
—
|
248,638
|
—
|
—
|
—
|
248,638
|
|||||||||||||
Due
to other banks
|
507,659
|
—
|
—
|
—
|
—
|
507,659
|
|||||||||||||
Total
|
2,018,104
|
482,629
|
537
|
—
|
—
|
2,501,270
|
|||||||||||||
Asset/liability
gap
|
(312,205
|
)
|
48,644
|
34,306
|
2,173
|
4,568
|
(222,514
|
)
|
|||||||||||
Cumulative
sensitivity gap
|
(312,205
|
)
|
(263,561
|
)
|
(229,255
|
)
|
(227,082
|
)
|
(222,514
|
)
|
|||||||||
Cumulative
sensitivity gap as a percentage of total interest-earning
assets
|
(13.70
|
)%
|
(11.57
|
)%
|
(10.06
|
)%
|
(9.97
|
)%
|
(9.76
|
)%
|
At
December 31,
|
||||||||||
2006
(5)
|
2005
(5)
|
2004
(5)
|
||||||||
(in
thousands of pesos, except ratios and
percentages)
|
||||||||||
Calculation
of excess capital (1)
|
||||||||||
Allocated
to assets at risk
|
540,415
|
331,836
|
232,962
|
|||||||
Allocated
to Bank premises and equipment, intangible assets and equity investment
assets
|
116,944
|
132,125
|
137,918
|
|||||||
Interest
rate risk
|
98,833
|
97,950
|
35,612
|
|||||||
Incremental
minimum capital requirements originated in excesses in other
regulations
|
—
|
197,645
|
—
|
|||||||
Public
sector and securities in investment account
|
99,227
|
70,877
|
32,336
|
|||||||
A-
Minimal exigency by adds up risks
|
855,419
|
830,433
|
438,828
|
|||||||
B-
Basic exigency for custody of titles of the AFJP and / or agent of
record
of hypothecary letters
|
931,187
|
768,793
|
807,830
|
|||||||
Maximum
between A and B
|
931,187
|
830,433
|
807,830
|
|||||||
Market
risk
|
73,367
|
38,079
|
27,767
|
|||||||
Required
minimum capital under Central Bank rules
|
1,004,554
|
868,512
|
835,597
|
|||||||
Basic
net worth
|
1,774,548
|
1,684,343
|
1,703,124
|
|||||||
Complementary
net worth
|
190,866
|
122,207
|
(73,371
|
)
|
||||||
Deductions
|
(92,186
|
)
|
(105,617
|
)
|
(145,632
|
)
|
||||
Minority
interest
|
216,480
|
188,960
|
172,275
|
|||||||
Total
capital under Central Bank rules
|
2,089,708
|
1,889,893
|
1,656,396
|
|||||||
Excess
capital
|
1,085,154
|
1,021,381
|
820,799
|
|||||||
Selected
capital and liquidity ratios
|
||||||||||
Average
stockholders’ equity as a percentage of average total assets (1)(2)
|
10.79
|
%
|
10.88
|
%
|
10.06%(4
|
)
|
||||
Total
liabilities as a multiple of total stockholders’ equity
|
8.64x
|
7.77x
|
8.42x(4
|
)
|
||||||
Cash
and due from banks as a percentage of total deposits
|
20.46
|
%
|
15.18
|
%
|
18.53%(4
|
)
|
||||
Liquid
assets as a percentage of total deposits (1)(3)
|
55.42
|
%
|
48.20
|
%
|
46.07%(4
|
)
|
||||
Loans
as a percentage of total assets
|
50.62
|
%
|
53.06
|
%
|
57.78%(4
|
)
|
(1)
|
See
“Information on the Company—The Argentine Banking
System and its Regulatory Framework —Capital Adequacy Requirements”
for a discussion of the Central Bank’s capital
requirements.
|
(2) |
Average
stockholder’s equity and average total assets computed as the average of
period-beginning and period-ending
balances.
|
(3) |
At
December 31, 2006, 2005 and 2004, “Liquid Assets” includes cash and due
from banks and government and private
securities.
|
(4) |
Restated
from its original version to apply the adjustments to prior years
income
to these Consolidated Financial Statements related with Argentine
Central
Bank regulations (see Note 3.4.18. to the Consolidated Financial
Statements).
|
(5) |
The
Bank must maintain a surplus of minimum paid-in capital amounting
to at
least Ps.46,559, Ps.38,440 and Ps.40,392 as at December 31, 2006,
2005 and
2004, respectively, equivalent to 0.25% of the amount of values under
custody for securities representing
investments from pension funds, as well as in connection with its
function
as registrar of mortgage-backed bonds, invested in national public
securities and other destinations authorized by the BCRA and
guaranteed in favor of the said
Entity.
|
Payments
due by Period
(in
thousands of Pesos)
|
||||||||||||||||
Total
|
Less
than
1
year
|
1-3
years
|
4-5
years
|
After
5
years
|
||||||||||||
Contractual
obligations
|
||||||||||||||||
Long-term
debt
|
1,559,361
|
1,372,683
|
186,621
|
57
|
—
|
|||||||||||
Operating
leases
|
64,912
|
13,948
|
20,810
|
13,420
|
16,734
|
|||||||||||
Total
|
1,624,273
|
1,386,631
|
207,431
|
13,477
|
16,734
|
|||||||||||
Commercial
commitments
|
||||||||||||||||
Lines
of credit
|
13,695
|
13,695
|
—
|
—
|
—
|
|||||||||||
Standby
letters of credit
|
100,577
|
100,577
|
—
|
—
|
—
|
|||||||||||
Guarantees
|
178,079
|
163,730
|
3,315
|
2,430
|
8,604
|
|||||||||||
Total
|
292,351
|
278,002
|
3,315
|
2,430
|
8,604
|
|||||||||||
Name
|
Current
Term
Ends
|
Position
as of
December
31, 2004
|
Date
of Birth
|
Present
principal occupations outside Banco Francés
and
business experience
|
|
Jorge
Carlos Bledel
(*)
|
December
2008
|
Chairman
|
04/19/1954
|
Present
principal occupations:
Director,
Rombo Compañía Financiera S.A. (“Rombo Compañía Financiera”); Director,
Credilogros Compañía Financiera S.A. (“Credilogros”); Vice Chairman,
Francés Valores Sociedad de Bolsa S.A. (“Francés Valores”); Chairman,
Inversora Otar S.A. (“Inversora Otar ”); Chairman, Consolidar AFJP S.A.
(“Consolidar AFJP”); Chairman, Consolidar ART S.A. (“Consolidar ART”);
Chairman, Consolidar Compañía de Seguros de Vida S.A. (“Consolidar Seguros
de Vida”); Chairman, Consolidar Compañía de Seguros de Retiro S.A.
(“Consolidar Seguros de Retiro”); Chairman, BBVA Consolidar Seguros S.A.
(“BBVA Seguros”) and Chairman, Consolidar Salud S.A. (“Consolidar
Salud”).
Business
experience:
Credit Manager, Banco del Interior y Buenos Aires; Business Manager,
Corporación Metropolitana de Finanzas; Financial Manager, Banco Francés;
Wholesale Banking Director, Banco Francés and Retail Banking Director,
Banco Francés.
Mr.
Bledel joined the staff of Banco Francés in 1986 and was first elected to
the Board in March 2003.
|
|
José
Carlos
Plá Royo (*)
|
December
2008
|
Vice-chairman
|
02/10/1952
|
Present
principal occupations:
Director,
BBVA Provida S.A., Chile; Director, BBVA Seguros S.A., España; Director,
IBERDROLA S.A., España; Director
TICLIO
S.L., España.
Business
experience:
Corporate Banking Director, Banco Bilbao, España; Assitant Executive
General Director, Banco del Comercio, España; General Director, Banco del
Comercio, España; General Director, Banco Continental, Perú; Assitant
Executive General Director, BBVA, España; CEO, Banco Provincial,
Venezuela; Assitant Executive American Area, BBVA, España; Counselor, AFJP
Consolidar, Argentina; Counselor, AFP Crecer, El Salvador; Counselor,
AFP
Horizonte, Perú; Counselor, AFP Horizonte, Colombia; Counselor, AFP
Previsión, Bolivia; Counselor, BBVA Pensiones, Chile; Chairman, Gestión de
Previsión y Pensiones, España; Counselor, MAPFRE La Seguridad, Venezuela
and Vice Chairman, Provida Internacional, Chile.
|
|
Marcelo
Gustavo Canestri
(*)
|
December
2009
|
Director
|
04/23/1953
|
Present
principal occupations:
Director,
Francés Valores; Alternate Director, Consolidar AFJP; Alternate Director,
Consolidar Seguros de Vida; Alternate Director, Consolidar Seguros
de
Retiro; Alternate Director, Consolidar ART; Director, Inversora Otar;
and
Alternate Director, BBVA Seguros.
Business
experience:
Corporate Assistant Manager, Banco Francés; Wholesale Banking Assistant
Manager, Banco Francés; Asset Management Director, Banco Francés and
Financial Director, Banco Francés.
Mr.
Canestri joined the Bank in 1973 was first elected to the Board in
September 2001.
|
Name
|
Current
Term
Ends
|
Position
as of
December
31, 2004
|
Date
of Birth
|
Present
principal occupations outside Banco Francés
and
business experience
|
|
Javier
José D’Ornellas
(**)
|
December
2009
|
Director
|
06/07/1940
|
Present
principal occupations
Director,
Asociación Argentina Cultural Inglesa (AACI); Chairman, Rentar
S.A.
Business
experience:
Director Inversiones Robert S.A.;
Chairman,
Rentar S.A.; Chairman, VASA S.A.; Chairman, MASISA Argentina S.A.;
Chairman, Vidrios Lirquén S.A.; Chairman, Santa Lucía Cristal SACIF;
Director, Concord S.A. Colombia and Director, Santa Lucia Cristais
Brasil.
Mr.
D’Ornellas was elected as Director in 1998.
|
|
Oscar
Miguel Castro
(**)
|
December
2008
|
Director
|
12/04/1945
|
Present
principal occupations:
Statutory
auditor (síndico) of Grupo Orígenes: Origenes Retiro, Internacional Vida,
Origenes A.F.J.P. Independent director: Transportadora Gas del
Sur.
Business
experience:
Statutory auditor: Santander Sociedad de Bolsa, Banco Supervielle,
Banco
Rio, Banco Societe Generale S.A., Axa Inversora, BBVA Banco Francés.
Alternate statutory auditor: Banco Comafi, BNP Asset Management.
Executive
Committee of Financial Services member: Arthur Andersen Worldwide.
Partner
in charge of Financial Services division: Arthur Andersen Latinamerica
and
Argentina. International Partner: Arthur Andersen.
Mr.
Castro was elected as director in
2003.
|
(*) | According to the provisions of General Resolution No. 368 (New Text 2001), as amended by General Resolution No. 400 of the CNV, Messrs. Jorge Carlos Bledel, José Carlos Plá Royo and Marcelo Gustavo Canestri do not qualify as independent directors, as they are employees of the Bank. |
(**) | Mr. D’Ornellas and Mr. Castro qualify as independent directors according to the independence criteria established by General Resolution No. 368 (New Text 2001), as amended by General Resolution No. 400 of the CNV. |
Name
|
First
Appointed
|
Current
Position
|
Date
of Birth
|
Background
and Work Experience
|
|
Jorge
Carlos Bledel
|
2001
|
Executive
Chairman
|
04/19/1954
|
Director,
Rombo Compañía Financiera; Vice Chairman, Francés Valores; Chairman,
Inversora Otar; Chairman, Consolidar AFJP; Chairman, Consolidar ART;
Chairman, Consolidar Seguros de Vida; Chairman, Consolidar Seguros
de
Retiro; Chairman, Consolidar Seguros and Chairman, Consolidar
Salud.
Mr.
Bledel joined Banco Francés in 1986.
|
|
José
Carlos López Álvarez
|
2003
|
Assistant
Executive Director, Accounting and Risk Management
Director
|
03/15/1959
|
General
Assistant Director and Financial Director of Banco del Comercio (Spain)
and Vice-president, Risk Management Director and Financial Director
of
BBVA Brasil.
Mr.
López Alvarez joined the Bank in 2003.
|
|
Tomás
Deane
|
2003
|
Director,
Global Wholesale Banking
|
03/29/1967
|
Mr.
Deane joined the Bank in 1990, in the area of Financial Funds
Management.
|
|
Oscar
Hugo Fantacone
|
2002
|
Director,
Retail Banking
|
03/27/1951
|
Director,
Credilogros Compañía Financiera S.A.; Director, Rombo Compañía Financiera;
Regular Director, Banelco S.A.; Regular Director Visa Argentina
S.A.
Mr.
Fantacone joined Banco Francés in 1982, as Special Credits Manager.
He
also was Client Services Manager and was promoted to Regional Director
in
1997.
|
|
Marcelo
Gustavo Canestri
|
2001
|
Financial
Director
|
04/23/1953
|
Director,
Francés Valores; Alternate Director, Consolidar AFJP; Alternate Director,
Consolidar Seguros de Vida; Alternate Director, Consolidar Seguros
de
Retiro; Alternate Director, Consolidar ART; Alternate Director, BBVA
Consolidar Seguros S.A.; Regular Director, Inversora Otar S.A.; and
Alternate Director, BBVA Consolidar Seguros S.A.
Mr.
Canestri joined the Bank in 1973.
|
|
Gabriel
Milstein
|
2002
|
Media
Director
|
08/14/1958
|
Organization
Manager, Banco Francés.
Mr.
Milstein joined the Bank in 1995.
|
|
Carlos
E. Montoto
|
1998
|
Director,
Human Resources
|
08/10/1957
|
Director,
Atuel Fideicomisos S.A.; Chairman, Promoción y Servicios Financieros
S.A.
Mr.
Montoto joined Banco Francés in 1975.
|
|
Juan
Eugenio Rogero González
|
2005
|
Director,
Risk Management
|
06/20/1956
|
Mr.
Rogero González joined the BBVA in 1973, his background and work
experience includes: Branch Corporate Banking Director of Bilbao
BBVA;
Risk and Corporate Director, BBVA Puerto Rico; Insurance Development
Director, BBVA America and Global Corporate Risk Control Director,
BBVA.
Mr.
Rogero González joined the Bank in
2005.
|
|
Expiration
of term
|
|||
Regular
|
Mario
Rafael Biscardi
|
December
31, 2006
|
||
|
Carlos
Roberto Chiesa
|
December
31, 2006
|
||
|
Alejandro
Mosquera
|
December
31, 2006
|
||
Alternate
|
Osvaldo
Pablo Alejandro Jofré
|
December
31, 2006
|
||
|
Julieta
Paula Pariso
|
December
31, 2006
|
||
|
Paola
Lorena Rolotti
|
December
31, 2006
|
Expiration
of term
|
||||
Regular
|
Mario
Rafael Biscardi
|
December
31, 2007
|
||
|
Carlos
Roberto Chiesa
|
December
31, 2007
|
||
|
Alejandro
Mosquera
|
December
31, 2007
|
||
Alternate
|
Osvaldo
Pablo Alejandro Jofré
|
December
31, 2007
|
||
|
Julieta
Paula Pariso
|
December
31, 2007
|
||
|
Paola
Lorena Rolotti
|
December
31, 2007
|
§ |
Marcelo
Gustavo Canestri
|
§ |
José
Carlos Plá Royo
|
§ |
Oscar
Miguel Castro
|
§ |
Eduardo
Zerega
|
§ |
Supervise
the appropriate implementation of the internal control systems defined
in
the institution through a regular
evaluation;
|
§ |
Provide
assistance to improve the effectiveness of the internal
controls;
|
§ |
Inquire
about external audit planning and comment as necessary on the nature,
scope, and time for the performance of the audit
proceedings;
|
§ |
Revise
and approve the annual work program of the institution’s internal audit
area (“Internal Audit Planning Memorandum” or “Annual Planning”) to be
carried out under these rules, as well as the level of compliance
with
such program;
|
§ |
Revise
the reports issued by the internal auditors pursuant to the provisions
set
forth in these rules;
|
§ |
Consider
the observations made by the external and the internal auditors regarding
the internal control weaknesses found during the performance of their
duties, as well as the corrective measures implemented by the general
management to minimize or cure such
weaknesses;
|
§ |
Review
the results obtained by the Supervisory Committee of the Bank during
the
performance of its duties, as informed in the applicable
reports;
|
§ |
Maintain
a permanent communication with the officers of the Superintendency
of
Financial and Exchange Institutions in charge of the control of the
Bank,
so as to learn about their concerns, and the problems identified
during
the inspections conducted in the Bank, and control the actions adopted
to
solve such problems;
|
§ |
Keep
informed of the annual financial statements and the financial statements
for the respective three-month periods as well as the external auditors’
report issued with respect to the former, and any other applicable
accounting information; and
|
§ |
Regularly
control compliance with the independence rules applicable to external
auditors.
|
Members: | José Carlos Plá Royo | |
Oscar Miguel Castro | ||
Javier D’Ornellas |
§ |
To
render an opinion on the Board’s proposal to appoint the external auditors
to be retained by the company, and ensure their
independence.
|
§ |
To
supervise the operation of internal control and administrative accounting
systems, as well as ensure the reliability of the latter and of all
financial information or other significant facts submitted to the
CNV and
the self-regulated bodies in compliance with the applicable information
regulations.
|
§ |
To
supervise the application of policies as regards the information
about the
company’s risk management.
|
§ |
To
furnish the market with comprehensive information in respect of operations
which may involve conflicts of interest with members of the corporate
bodies or controlling shareholders.
|
§ |
To
render an opinion on the reasonableness of proposals concerning fees
and
share option plans for the company’s directors and managers as submitted
by the administration body.
|
§ |
To
render an opinion on the observance of legal requirements and the
reasonableness of the conditions for the issuance of shares or securities
convertible into shares in the event of a capital increase, with
exclusion
or limitation of preference rights.
|
§ |
To
verify the observance of the applicable standards of
behavior.
|
§ |
To
issue a duly grounded opinion with regard to operations with related
parties in those cases contemplated by the
Decree.
|
§ |
To
issue a duly grounded opinion and forward it to the self-regulated
entities as determined by the CNV whenever there is a conflict of
interests or the possibility of such a conflict in the
company.
|
§ |
To
prepare annually an action plan to be submitted to the Board and
the
Supervisory Committee.
|
§ |
To
examine the plans prepared by the external and internal auditors,
evaluate
their performance and issue an opinion on the matter on occasion
of the
presentation and publication of the annual financial
statements.
|
§ |
Management
Committee
|
§ |
Media
Committee
|
§ |
Risk
Committee
|
(1) |
Approve
ratings for amounts (regularly adjusted) and those which were delegated
as
being Special Risks (Multiple Risk Ratings or Risks related to the
media,
political parties, trade unions or related to Banco Francés or its
officers);
|
(2) |
If
it is a rating proposal for an amount exceeding the limit mentioned,
it
shall first be approved by the Operations Technical Committee (“OTC”) and
send it to the Credit Risk Central Unit (UCRC) for its
approval;
|
(3) |
If
the UCRC’s decision coincides with the decision taken by the OTC, the
committee shall register such resolution in the applicable record
of the
OTC, shall further inform the applicable area for the rating to be
included and shall send a copy to the applicable business
area;
|
(4) |
If
the UCRC decision differs from the decision made by the OTC, a new
rating
shall have to be effected and informed to a new
OTC;
|
(5) |
Decide
proposed refinancing for amounts (regularly adjusted) and as to any
relief
or fine pursuant to the rules in force;
and
|
(6) |
The
OTC’s decisions shall be adopted upon the consent of the committee; in
the
event the decision were not unanimous, such decision shall fall within
the
discretion of the Committee’s
Chairman.
|
§ |
Asset
and Liability Committee
|
(i) |
Establishes
specific limits with respect to risk
exposure;
|
(ii) |
Sets
policy with respect to pricing and approves commercial policies which
may
have a financial impact on our balance sheet;
and
|
(iii) |
It
is responsible for the follow-up of monetary aggregates and financial
variables, our liquidity position, regulations from the Central Bank
and
the competitive environment in assets, liabilities and interest
rates.
|
§ |
Disclosure
Committee
|
§ |
Terrorism
Assets and Money Laundering Prevention Committee
|
- |
To
deal with all matters related to the prevention of terrorism assets
laundering and financing.
|
- |
To
define operational policies and continuously monitor their degree
of
advancement.
|
- |
To
provide support for the terrorism assets laundering and financing
Sub-Committee in order to make decisions on reporting to the competent
authorities about any transactions which may appear unusual or suspicious,
or dismissing such action as may be
required.
|
- |
To
assign duties to the different areas
involved.
|
- |
To
render his or her area of activity more sensitive as to the importance
of
preventing terrorism assets laundering and financing.
|
- |
To
detect any relevant situation which may occur in his or her area
in this
connection.
|
- |
To
analyze any new product or service and evaluate potential asset laundering
risks.
|
- |
To
assume the necessary commitments in his or her area in order to implement
prevention systems in coordination with the officer responsible for
Asset
Laundering Prevention.
|
§ |
Terrorism
Assets Laundering and Financing
Committee
|
§ |
Corporate
Integrity Management Committee
|
- |
Convene
the Committee.
|
- |
Prepare
the agenda for the Committee meetings based on the proposals received
from
the different members.
|
(1) |
Board
of Directors or Auditing and Regulatory Compliance Commission as
the case
may be.
|
(2) |
Management
Committee.
|
(3) |
Officer
responsible for the preparation of financial statements, in order
to
ensure that such statements will reflect any relevant
facts.
|
§ |
Discipline
Committee
|
(1) |
Fraud,
violation of Bank regulations, negligence in their
compliance.
|
(2) |
Disloyalty
in the tasks requested.
|
(3) |
Confidence
abuse; theft or robbery of property belonging to the Bank, fellows,
clients or any person in the Bank’s
premises.
|
(4) |
Powers
abuse.
|
§ |
Computing
Security Committee
|
As
of December 31,
|
||||||||||||
2006
(1)
|
2005
(1)
|
2004
(1)
|
||||||||||
Main
office
|
1,376
|
1,218
|
1,221
|
|||||||||
Branches
|
2,303
|
2,400
|
2,320
|
|||||||||
Total
|
3,679
|
3,618
|
3,541
|
(1)
|
Excludes
2,053, 1,907 and 1,884 employees from non-banking subsidiaries as
of
December 31, 2006, 2005 and 2004,
respectively.
|
Ordinary
Shares Beneficially Owned At December 31,
2006
|
||||||||
Beneficial
Owner
|
Number
|
Percent
of class
|
||||||
Banco
Bilbao Vizcaya Argentaria (1)
|
215,195,798
|
45.65 | % | |||||
Bilbao
Vizcaya America BV (2)
|
98,596,099
|
20.92 | % | |||||
The
Bank of New York (4)
|
46,284,005
|
9.82 | % | |||||
Inversora
Otar S.A. (3)
|
44,301,125
|
9.40 | % |
Fiscal
Year ended December 31, 2006
|
Fiscal
Year ended December 31, 2005
|
|||||||||
Related
Party
|
Largest
Outstanding
Amount (1)(2) |
Interest
Rates
|
Amount
Outstanding
(2)
|
Interest
Rates
|
Nature
|
Largest
Outstanding
Amount
(1)(2)
|
Interest
Rates
|
Amount
Outstanding
(2)
|
Interest
Rates
|
Nature
|
Controlled,
Controlling and under common control Entities
|
||||||||||
BBVA
and subsidiaries
|
167,672
|
—
|
71,401
|
—
|
Guarantees
given, other loans
|
238,295
|
—
|
118,590
|
—
|
Guarantees
given, other loans
|
Credilogros
Cía. Financiera S.A.
|
50,655
|
9.35%
|
—
|
—
|
Advances,
call money, guarantees given and Equity investment
|
77,635
|
4.81%
|
47,339
|
7.59%
|
Call
money, credit card loans, guarantees given and Equity
investment
|
Francés
Valores Sociedad de Bolsa S.A.
|
19,881
|
—
|
6,654
|
—
|
Other
loans and Equity investment
|
28,016
|
45.00%
|
18,394
|
—
|
Advances,
other loans and Equity investment
|
Francés
Administradora de Inversión
|
5,719
|
50.00%
|
1,067
|
26.00%
|
Advances,
credit card loans and Equity investment
|
836
|
—
|
678
|
—
|
Other
loans and Equity investment
|
Consolidar
AFJP S.A.
|
34,009
|
26.00%
|
33,952
|
26.00%
|
Credit
card loans, other loans, guarantees given and Equity
investment
|
34,000
|
45.00%
|
34,000
|
45.00%
|
Advances,
credit card loans, guarantees given and Equity
investment
|
Consolidar
Seguros de Vida S.A.
|
9,353
|
—
|
9,348
|
—
|
Other
loans and Equity investment
|
9,973
|
45.00%
|
9,343
|
—
|
Advances,
other loans and Equity investment
|
Consolidar
Seguros de Retiro S.A.
|
12,962
|
45.00%
|
12,953
|
26.00%
|
Advances,
credit cards loans, other loans and Equity investment
|
13,147
|
45.00%
|
12,918
|
23.49%
|
Advances,
credit cards loans, other loans and Equity investment
|
Consolidar
ART S.A.
|
4,703
|
26.00%
|
4,652
|
26.00%
|
Credit
cards loans, other loans and Equity investment
|
4,753
|
45.00%
|
4,653
|
23.49%
|
Advances,
credit cards loans, other loans and Equity investment
|
Consolidar
Comercializadora S.A.
|
—
|
—
|
—
|
—
|
—
|
1,253
|
45.00%
|
1,253
|
45.00%
|
Advances
|
PSA
Finance
|
89,206
|
11.39%
|
89,206
|
11.51%
|
Call
money, other loans and Equity investment
|
49,346
|
9.02%
|
49,346
|
9.02%
|
Call
money, other loans and Equity investment
|
BBVA
Consolidar Seguros S.A.
|
7,386
|
45.00%
|
6,278
|
—
|
Advances,
credit cards loans and Equity investment
|
5,529
|
45.00%
|
5,341
|
45.00%
|
Advances,
credit cards loans and other loans
|
Assurex
S.A.
|
33
|
—
|
33
|
—
|
Equity
investment
|
303
|
—
|
—
|
—
|
Equity
investment
|
Inversora
Otar
|
3,093
|
—
|
3,093
|
—
|
Other
loans
|
—
|
—
|
—
|
—
|
—
|
Atuel
Fideicomisos S.A.
|
20,153
|
—
|
20,153
|
—
|
Equity
investment
|
16,292
|
—
|
13,507
|
—
|
Equity
investment
|
(1)
|
Largest
amount during the period indicated.
|
(2)
|
In
thousands of pesos.
|
(3)
|
On
March 18, 2004, the Bank sold to BBVA S.A. its 100% interest in Banco
Francés (Cayman) Limited (see Note 1.5. to our Consolidated Financial
Statements).
|
Fiscal
Year ended December 31, 2006
|
Fiscal
Year ended December 31, 2005
|
|||||||||
Related
Party
|
Largest
Outstanding
Amount (1)(2) |
Interest
Rates
|
Amount
Outstanding
(2)
|
Interest
Rates
|
Nature
|
Largest
Outstanding
Amount
(1)(2)
|
Interest
Rates
|
Amount
Outstanding
(2)
|
Interest
Rates
|
Nature
|
Associated
Entities
|
||||||||||
Consolidar
Salud S.A.
|
16
|
26.00%
|
16
|
26.00%
|
Credit
card loans
|
297
|
45.00%
|
97
|
—
|
Advances
and credit card loans
|
Clínica
Baxterrica
|
1
|
—
|
—
|
—
|
Advances
|
293
|
45.00%
|
293
|
45.00%
|
Advances
|
Rombo
Cia Financiera S.A.
|
161,169
|
12.81%
|
151,784
|
13.42%
|
Call
money, advances, other loans and Equity investment
|
84,638
|
8.71%
|
84,638
|
8.71%
|
Call
money and Equity investment
|
Key
Management Personnel (3)
|
978
|
28.96%
|
705
|
28.96%
|
Advances,
credit card loans, personal loans, real state mortgage and guarantees
given
|
883
|
28.00%
|
691
|
28.00%
|
Advances,
credit card loans, personal loans, real state mortgage and guarantees
given
|
(1)
|
Largest
amount during the period indicated.
|
(2)
|
In
thousands of pesos.
|
(3)
|
Includes
directors, senior managers, members of the audit committee and managers
with relevant authority.
|
Date
|
Description
|
Original
principal amount (1)
|
Outstanding
Amount at
December
31, 2006 (1)
|
Outstanding
Amount
at
December
31, 2005 (1)
|
||||||
March,
1998
|
Corporate
Bonds
|
130,000
|
—
|
Capitalized
in December, 2002
|
||||||
April,
2002
|
Loan
|
79,316
|
—
|
Capitalized
in December, 2002
|
||||||
April,
2002
|
Loan
|
80,000
|
—
|
Paid
in March, 2004
|
||||||
July,
2002
|
REPO
|
102,100
|
—
|
Paid
in May, 2004
|
||||||
March,
2004
|
Loan
|
77,701
|
—
|
Capitalized
in November, 2004
|
||||||
October,
2000
|
FRN
|
20,000
|
—
|
Paid
in March, 2005
|
||||||
May,
2004
|
Loan
|
64,000
|
—
|
Paid
in November, 2004 and in May, 2005
|
||||||
October,
2002
|
Loan
|
1,000
|
—
|
Paid
in May , 2006
|
||||||
April,
2003
|
Loan
|
1,000
|
—
|
Paid
in May, 2006
|
||||||
November,
2003
|
Loan
|
1,800
|
—
|
Paid
in May, 2006
|
||||||
October,
2004
|
Loan
|
900
|
—
|
Paid
in May, 2006
|
||||||
February,
2005
|
Loan
|
900
|
—
|
Paid
in May, 2006
|
||||||
May,
2005
|
Loan
|
900
|
—
|
Paid
in May, 2006
|
||||||
November,
2005
|
Loan
|
900
|
—
|
Paid
in December, 2006
|
(1)
|
In
thousands of US$.
|
1.
|
The
Bank falls under the provisions of articles 34 “Regularization and
restructuring” and 35 bis “Restructuring of the entity for the protection
of credit and bank deposits” of the Financial Entities
Law;
|
2.
|
The
Bank has received financial assistance from Banco Central de la República
Argentina, other than assistance received for lack of liquidity in
terms
of Decree 739/03 and its regulatory provisions (Communication “A” 3941 and
complementary ones), within the framework of article 17 of this Bank’s
Charter;
|
3.
|
The
Bank incurs delays or noncompliance with respect to the information
system
set forth by the BCRA; or
|
4.
|
The
Bank shows deficiencies as to the payment of its minimum capital,
either
individually or on a consolidated basis (without computing for such
purpose the effects of individual franchises granted by the
Superintendence of Financial and Foreign Exchange Entities) or as
regards its average minimum cash requirements in pesos or foreign
currencies.
|
Pesos
Per
Ordinary
Share (1)
|
||||||||
High
|
Low
|
|||||||
2007
|
||||||||
April
2007
|
13.05
|
12.00
|
||||||
March
2007
|
13.10
|
10.10
|
||||||
February
2007
|
13.20
|
11.00
|
||||||
January
2007
|
11.20
|
9.50
|
||||||
Fiscal
year ended December 31, 2006
|
9.60
|
6.90
|
||||||
Fourth
quarter
|
9.60
|
7.60
|
||||||
December,
2006
|
9.01
|
9.60
|
||||||
November,
2006
|
8.55
|
9.33
|
||||||
Third
quarter
|
8.00
|
6.97
|
||||||
Second
quarter
|
8.80
|
6.90
|
||||||
First
quarter
|
8.50
|
7.15
|
||||||
Fiscal
year ended December 31, 2005
|
8.13
|
5.60
|
||||||
Fourth
quarter
|
8.13
|
6.92
|
||||||
Third
quarter
|
7.80
|
6.18
|
||||||
Second
quarter
|
6.87
|
5.60
|
||||||
First
quarter
|
7.40
|
5.75
|
||||||
Fiscal
year ended December 31, 2004
|
9.95
|
4.80
|
||||||
Fiscal
year ended December 31, 2003
|
9.40
|
3.45
|
||||||
Fiscal
year ended December 31, 2002
|
4.49
|
1.60
|
(1)
|
Pesos
per ordinary share data reflect nominal prices at trading
date.
|
US$
Per ADS
|
||||||||
High
|
Low
|
|||||||
2007
|
||||||||
April
2007
|
12
17/20
|
11
2/25
|
||||||
March
2007
|
13
27/50
|
9
9/50
|
||||||
February
2007
|
13
|
10
44/53
|
||||||
January
2007
|
11
16/65
|
9
23/39
|
||||||
Fiscal
year ended December 31, 2006
|
9
7/10
|
6
7/10
|
||||||
Fourth
quarter
|
9
7/10
|
7
4/21
|
||||||
December,
2006
|
9
7/10
|
8
53/57
|
||||||
November,
2006
|
9
3/10
|
8
3/10
|
||||||
Third
quarter
|
7
44/53
|
6
7/10
|
||||||
Second
quarter
|
8
43/50
|
6
7/10
|
||||||
First
quarter
|
8
3/13
|
7
1/20
|
||||||
Fiscal
year ended December 31, 2005
|
8
1/4
|
5
39/50
|
||||||
Fourth
quarter
|
8
1/4
|
6
3/4
|
||||||
Third
quarter
|
8
7/50
|
6
8/89
|
||||||
Second
quarter
|
7
1/5
|
5
39/50
|
||||||
First
quarter
|
7
64/81
|
5
4/5
|
||||||
Fiscal
year ended December 31, 2004
|
10
3/20
|
4
46/63
|
||||||
Fiscal
year ended December 31, 2003
|
9
2/5
|
3
9/20
|
||||||
Fiscal
year ended December 31, 2002
|
7
21/64
|
1
9/31
|
§
|
the
“Floor”;
|
§
|
the
“SINAC”; and
|
§
|
the
“Continuous”.
|
Year
ended December 31,
|
||||||||||||
2006
|
2005
|
2004
|
||||||||||
Market
capitalization (US$ billion)
|
400.0
|
254.5
|
231.7
|
|||||||||
Number
of companies listed
|
106
|
104
|
108
|
|||||||||
Rate
of return in dollars (1)
|
33.58% | 10.60% | 26.67% | |||||||||
Market/book
ratio (2)
|
2.36
|
2.02
|
2.68
|
(1)
|
Based
on the Merval Index
|
(2)
|
Estimated
Source:
BCBA and Instituto Argentino de Mercados de Capitales
(IAMC).
|
§
|
Accept
term and demand deposits;
|
§
|
Grant
short-term bullet and other amortizable
loans;
|
§
|
Discount,
purchase and sell bills of exchange, promissory notes, pledges, checks,
drafts and other negotiable
instruments;
|
§
|
Grant
guarantees, bonds or other forms of collateral; accept bills of exchange,
drafts and other orders of payment, transfer funds and issue and
accept
letters of credit;
|
§
|
Grant
advances on credits from property sales, acquire the same and undertake
the risks resulting therefrom, take steps to collect them and offer
technical and administrative
assistance;
|
§
|
Invest
in Government securities;
|
§
|
Make
temporary investments in liquid
assets;
|
§
|
Invest
in new stock or securities issues, in pursuance of such regulations
as may
be set forth to that purpose;
|
§
|
Accept
securities in custody and provide other services related to the banking
business;
|
§
|
Manage,
on account of third parties, the purchase and sale of securities,
and act
as paying agents in relation to dividends, redemption and interest;
engage
in brokerage activities in the over-the-counter securities
market;
|
§
|
Perform
foreign exchange transactions;
|
§
|
Comply
with agencies related to its
operations;
|
§
|
Receive
deposits of participation in mortgage loans and in special
accounts;
|
§
|
Issue
mortgage obligations;
|
§
|
Grant
loans for the acquisition, construction, enlargement, repair, improvement
and maintenance of urban or rural real estate, and for the substitution
of
mortgages taken out for that same
purpose;
|
§
|
Receive
loans from abroad and act as intermediary in local or foreign
currency-denominated loans;
|
§
|
Issue
private bonds, and
|
§
|
Carry
out such lending, borrowing and service-related operations as are
not
forbidden under the Financial Institutions
Law.
|
1.
|
The
Bank falls under the provisions of articles 34 “Regularization and
restructuring” and 35 bis “Restructuring of the entity for the protection
of credit and bank deposits” of the Financial Entities
Law;
|
2.
|
The
Bank has received financial assistance from Banco Central de la República
Argentina, other than assistance received for lack of liquidity in
terms
of Decree 739/03 and its regulatory provisions (Communication “A” 3941 and
complementary ones), within the framework of article 17 of this Bank’s
Charter;
|
3.
|
The
Bank incurs delays or noncompliance with respect to the information
system
set forth by the BCRA; or
|
4.
|
The
Bank shows deficiencies as to the payment of its minimum capital,
either
individually or on a consolidated basis (without computing for such
purpose the effects of individual franchises granted by the
Superintendence of Financial and Foreign Exchange Entities) or as
regards
its average minimum cash requirements in pesos or foreign
currencies.
|
(i)
|
all
incoming and outgoing funds from the Argentine Exchange market, and
any
debt operation with non-residents which could demand future payments
in
foreign currency to non-residents, are subject to registration with
the
Central Bank for informative
purposes;
|
(ii)
|
any
debt entered into between non-governmental persons or entities and
non-residents must be agreed for a term of at least 365 days, except
for
the financing of import and export operations and the primary placements
of public debt listed in an authorized stock
exchange;
|
(iii)
|
all
incoming funds relating to foreign private debt, and all incoming
funds of
non-residents, excluding foreign direct investments and certain types
of
portfolio investments (purchases in the primary market of debt instruments
and equity, listed in authorized stock exchanges, etc) regardless
of the
agreed payment procedure, must be agreed for at least 365 days, and
30% of
incoming funds must be deposited with a bank in Argentina in a
non-interest bearing account, known as
“encaje”;
|
(iv)
|
Decree
616/05 also states certain exceptions for the “encaje” such as settlements
in foreign currency of resident loans granted by a local financial
entity,
certain capital contributions in local corporations,
etc.;
|
§
|
Pay
abroad interest on foreign debt at maturity or 15 days in advance,
without
prior Central Bank authorization. However, in case the proceeds of
the
loan were disbursed abroad, payment of interest would be restricted
to the
difference between: (i) the total interest accrued under the relevant
debt
until the date of payment, minus (ii) the interest obtained by the
local
borrower abroad on the loan proceeds between the date of disbursement
and
the date of effective transfer and exchange for pesos of the proceeds
of
the relevant loan.
|
§
|
Repay
principal of foreign debt at maturity (or 90 days in advance, to
the
extent that the amounts so prepaid were brought into the local market
and
exchanged for pesos, and repayment takes place at least 180 days
therefrom) without prior Central Bank authorization. Communication
“A”
4177 (as amended) also allows prepayment of principal with an anticipation
of more than 90 days, but subject to the following
conditions:
|
(1)
|
If
prepayment of principal is not made in the context of a debt restructuring
process, then the amount prepaid should not exceed the present value
of
such amount, calculated according to the formula provided by the
Central
Bank, unless the prepayment is coupled with the transfer and exchange
for
pesos of a new loan with a present value equal to the prepaid
amounts.
|
(2)
|
If
the prepayment is made within the context of a debt restructuring
process,
then the new terms and conditions of the debt after the restructuring,
including the amount prepaid, shall not result in an increase of
the
present value of the whole debt (according to the formula of the
Central
Bank).
|
A.
|
Local
individuals and companies
|
§
|
US$2,000,000
per month; or
|
§
|
The
aggregate equivalent amount in pesos paid by such individual or company
to
the Argentine tax authority (Administración Federal de Ingresos Públicos)
on the immediately preceding month in connection with export duties,
plus
three times the amount paid in connection with the tax on bank credits
and
debits.
|
B.
|
Non-residents
|
§
|
Transfers
abroad of an aggregate equivalent of up to US$2,000,000 per month
arising
out of:
|
(1)
|
Foreign
indebtedness of residents related to Argentine imports of goods and
services;
|
(2)
|
Recoveries
under local bankruptcy proceedings to the extent the foreign creditor
was
admitted as such by the bankruptcy
court;
|
(3)
|
Proceeds
of sales of direct investments in local non-financial companies;
and
|
(4)
|
Proceeds
of final winding up of direct investment in local non-financial
companies.
|
§
|
Transfers
abroad of an aggregate equivalent of up to US$500,000 per month arising
out of:
|
(1)
|
Proceeds
of sales of other portfolio investments and their revenues, such
as
investments in shares of local companies, investment funds and local
trusts;
|
(2)
|
Purchases
of loans granted to residents by local
banks;
|
(3)
|
Acquisition
of invoices and promissory notes for local commercial transactions,
investment in local bonds denominated in pesos;
and
|
(4)
|
The
acquisition of other local credits.
|
§
|
Direct
investments in Argentina of non-Argentine
residents
|
§
|
Direct
investments made abroad by Argentine
residents
|
§
|
Certain
financial institutions;
|
§
|
Insurance
companies;
|
§
|
Dealers
and traders in securities or foreign
currencies;
|
§
|
Holders
holding ADSs or ordinary shares as part of a hedge, straddle or conversion
transaction;
|
§
|
Holders
whose “functional currency” for U.S. federal income tax purposes is not
the U.S. dollar;
|
§
|
Holders
liable for alternative minimum tax;
|
§
|
Tax
exempt organizations;
|
§
|
Partnerships
or other entities classified as partnerships for U.S. federal income
tax
purposes;
|
§
|
Holders
that own or are deemed to own 10% or more of our voting shares;
or
|
§
|
Persons
who acquired our ADSs or ordinary shares pursuant to the exercise
of any
employee stock option or otherwise as
compensation.
|
§
|
A
citizen or resident of the United
States;
|
§
|
A
corporation, or other entity taxable as a corporation, created or
organized in or under the laws of the United States or of any political
subdivision thereof; or
|
§
|
An
estate or trust the income of which is subject to United States federal
income taxation regardless of its
source.
|
2006
|
2005
|
||||||||
Average
|
1.06
|
0.81
|
|||||||
Minimum
|
0.52
|
0.22
|
|||||||
Maximum
|
1.87
|
2.57
|
|||||||
Dec.31
|
1.46
|
0.98
|
Interest
Risk
VaR
|
2006
|
2005
|
|||||||
Average
|
0.99
|
0.76
|
|||||||
Minimum
|
0.48
|
0.12
|
|||||||
Maximum
|
1.70
|
2.57
|
|||||||
Dec.31
|
1.40
|
0.97
|
Currency
Risk
VaR
|
2006
|
2005
|
|||||||
Average
|
0.31
|
0.20
|
|||||||
Minimum
|
0.02
|
0.04
|
|||||||
Maximum
|
0.78
|
0.96
|
|||||||
Dec.31
|
0.48
|
0.10
|
At
December 31, 2006
|
||||||||||||||||||||||||||
Change
in base
interest
rates
(basis
points)
|
Net
portfolio
value
|
Percentage
change
|
Net
interest and
adjust
income
|
Percentage
change
|
Net
income of
adjustable
portfolio
|
Percentage
change
|
||||||||||||||||||||
(in
millions of pesos, except percentages)
|
||||||||||||||||||||||||||
100
|
2,205.3
|
(1.82) | % |
1,002.5
|
2.66% |
535.4
|
7.11% | |||||||||||||||||||
50
|
2,225.5
|
(0.92) | % |
989.5
|
1.33% |
517.6
|
3.56% | |||||||||||||||||||
0
|
2,246.2
|
0.00
|
% |
976.5
|
0.00% |
499.8
|
0.00% | |||||||||||||||||||
(50 | ) |
2,267.3
|
0.94
|
% |
963.6
|
(1.33)% |
482.1
|
(3.56)% | ||||||||||||||||||
(100 | ) |
2,288.9
|
1.90
|
% |
950.6
|
(2.66)% |
464.3
|
(7.11)% |
Peso
against all other currencies
|
Effect
on net income based on our position as of December 31,
2006
|
Effect
on net income based on our position as of December 31,
2005
|
||||||||
(in
millions of pesos, except percentages)
|
||||||||||
5%
|
(5)
|
(4)
|
||||||||
(5)%
|
5
|
4
|
§
|
Pertain
to the maintenance of records that, in reasonable detail, accurately
and
fairly reflect the transactions and dispositions of the assets of
the
Bank;
|
§
|
Provide
reasonable assurance that transactions are recorded as necessary
to permit
preparation of financial statements in accordance with generally
accepted
accounting principles, and that our receipts and expenditures are
being
made only in accordance with authorizations of the Bank’s management and
directors; and
|
§
|
Provide
reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of our assets that could
have
a material effect on the financial
statements.
|
2006
actual fees
|
2005
actual fees
|
|||||||
(in
millions of pesos)
|
||||||||
Audit
fees
|
2.72
|
2.06
|
||||||
Audit-related
fees
|
—
|
—
|
||||||
Tax
fees
|
0.13
|
0.13
|
||||||
All
other fees
|
—
|
—
|
||||||
Total
fees
|
2.85
|
2.19
|
§
|
Index
to Consolidated Financial
Statements:
|
Page
|
|
Report
of Independent Registered Public Accounting Firm
|
F-2
|
Consolidated
Balance Sheets as of December 31, 2006 and 2005
|
F-4
|
Consolidated
Statements of Operations for the fiscal years ended December 31,
2006,
2005 and 2004
|
F-8
|
Consolidated
Statements of Cash Flows for the fiscal years ended December 31,
2006,
2005 and 2004
|
F-10
|
Consolidated
Statements of Changes in Stockholders’ Equity for the fiscal years ended
December 31, 2006, 2005 and 2004
|
F-12
|
Notes
to the Consolidated Financial Statements
|
F-13
|
§
|
Index
to Exhibits:
|
Exhibit
Number
|
Description
|
1.1
|
Amended
and Restated By-Laws (Estatutos) of BBVA Banco Francés (*)
|
1.2
|
English
translation of the Amended and Restated By-Laws (Estatutos) of BBVA
Banco
Francés (*)
|
8.1
|
Subsidiaries
of the Company
|
12.1
|
Section
302 Certification of Chief Executive Officer
|
12.2
|
Section
302 Certification of Chief Financial Officer
|
13.1
|
Section
906 Certification
|
|
(*)
Incorporated
by reference to the
BBVA Banco Francés Annual Report on Form 20-F for the year ended December
31, 2005 filed with the Securities and Exchange Commission on June
29,
2006.
|
BBVA
BANCO FRANCÉS S.A.
|
|||
By:
|
/s/
Marcelo Gustavo Canestri
|
||
Name:
Marcelo Gustavo Canestri
|
|||
Title: Chief
Financial Officer
|
Page
|
|
Report
of Independent Registered Public Accounting Firm
|
F-2
|
Consolidated
Balance Sheets as of December 31, 2006 and 2005
|
F-4
|
Consolidated
Statements of Operations for the fiscal years ended December 31,
2006,
2005 and 2004
|
F-8
|
Consolidated
Statements of Cash Flows for the fiscal years ended December 31,
2006,
2005 and 2004
|
F-10
|
Consolidated
Statements of Changes in Stockholders’ Equity for the fiscal years ended
December 31, 2006, 2005 and 2004
|
F-12
|
Notes
to the Consolidated Financial Statements
|
F-13
|
December
31,
|
||||||||
2006
|
2005
|
|||||||
ASSETS
|
||||||||
CASH
AND DUE FROM BANKS
|
2,558,484
|
1,611,506
|
||||||
Cash
|
559,817
|
483,377
|
||||||
Due
from banks and correspondents
|
1,998,667
|
1,128,129
|
||||||
GOVERNMENT
AND PRIVATE SECURITIES (Note 6.a)
|
4,372,032
|
3,504,311
|
||||||
Holdings
in investment accounts
|
515,296
|
435,104
|
||||||
Holdings
for trading or financial transactions
|
303,823
|
664,837
|
||||||
Unlisted
Government Securities
|
843,797
|
6
|
||||||
Instruments
issued by the Argentine Central Bank
|
2,520,906
|
2,248,838
|
||||||
Investments
in listed private securities
|
203,396
|
155,849
|
||||||
Less:
Allowances
|
15,186
|
323
|
||||||
LOANS
|
9,534,183
|
8,481,476
|
||||||
To
government sector
|
2,887,276
|
4,623,626
|
||||||
To
financial sector
|
436,126
|
142,307
|
||||||
To
non-financial private sector and residents abroad:
|
6,377,968
|
3,900,517
|
||||||
Overdraft
|
1,469,368
|
733,514
|
||||||
Discounted
instruments
|
793,195
|
560,863
|
||||||
Real
estate mortgage
|
460,559
|
394,678
|
||||||
Collateral
loans
|
98,381
|
60,714
|
||||||
Consumer
|
689,019
|
355,649
|
||||||
Credit
cards
|
526,416
|
545,918
|
||||||
Other
(Note 6.b)
|
2,282,243
|
1,364,291
|
||||||
Interest
and listed-price differences accrued and pending
collection
|
64,330
|
39,653
|
||||||
Less:
Unused collections
|
—
|
152,186
|
||||||
Less:
Interest documented together with main obligation
|
5,543
|
2,577
|
||||||
Less:
Difference arising from purchase of portfolio
|
90
|
89
|
||||||
Less:
Allowances
|
167,097
|
184,885
|
||||||
Carried
forward
|
16,464,699
|
13,597,293
|
||||||
December
31,
|
||||||||
2006
|
2005
|
|||||||
Brought
forward
|
16,464,699
|
13,597,293
|
||||||
OTHER
RECEIVABLES FROM FINANCIAL TRANSACTIONS
|
917,532
|
831,450
|
||||||
Argentine
Central Bank
|
423,032
|
286,206
|
||||||
Amounts
receivable for spot and forward sales to be settled
|
45,535
|
158,120
|
||||||
Instruments
to be received for spot and forward purchases to be
settled
|
334,324
|
35,730
|
||||||
Unlisted
corporate bonds
|
58,684
|
78,228
|
||||||
Non-deliverable
forward transactions balances to be settled
|
1,052
|
281
|
||||||
Other
receivables not covered by debtor classification
regulations
|
18,066
|
130,321
|
||||||
Other
receivables covered by debtor classification regulations
|
30,894
|
21,538
|
||||||
Interest
accrued and pending collection not covered by debtor classification
regulations
|
6,973
|
121,104
|
||||||
Interest
accrued and pending collection covered by debtor classification
regulations
|
—
|
3,020
|
||||||
Less:
Allowances
|
1,028
|
3,098
|
||||||
ASSETS
SUBJECT TO FINANCIAL LEASING
|
235,188
|
130,165
|
||||||
Assets
subject to financial leasing
|
238,672
|
131,650
|
||||||
Less:
Allowances
|
3,484
|
1,485
|
||||||
INVESTMENTS
IN OTHER COMPANIES
|
54,438
|
50,297
|
||||||
In
financial institutions
|
14,135
|
12,859
|
||||||
Other
(Note 6.c)
|
43,356
|
49,377
|
||||||
Less:
Allowances
|
3,053
|
11,939
|
||||||
OTHER
RECEIVABLES
|
283,023
|
238,961
|
||||||
Receivables
from sale of property assets
|
129
|
2,257
|
||||||
Tax
on minimum presumed income – Tax credit
|
118,746
|
90,094
|
||||||
Other
(Note 6.d)
|
525,209
|
535,708
|
||||||
Interest accrued and
pending collection on receivables from sale of property
assets
|
—
|
41
|
||||||
Other
accrued interest receivable
|
1
|
10
|
||||||
Less:
Allowances
|
361,062
|
389,149
|
||||||
PREMISES
AND EQUIPMENT
|
397,896
|
375,797
|
||||||
OTHER
ASSETS
|
35,211
|
63,246
|
||||||
INTANGIBLE
ASSETS
|
407,463
|
655,336
|
||||||
Goodwill
|
18,831
|
25,459
|
||||||
Organization
and development expenses
|
388,632
|
629,877
|
||||||
SUSPENSE
ITEMS
|
12,980
|
948
|
||||||
SUBSIDIARIES’
OTHER ASSETS (Note 6.e)
|
26,199
|
40,255
|
||||||
TOTAL
ASSETS
|
18,834,629
|
15,983,748
|
||||||
December
31,
|
||||||||
2006
|
2005
|
|||||||
LIABILITIES
|
||||||||
DEPOSITS
|
12,505,756
|
10,613,086
|
||||||
Government
sector
|
73,150
|
102,848
|
||||||
Financial
sector
|
156,412
|
27,695
|
||||||
Non
financial private sector and residents abroad:
|
12,276,194
|
10,482,543
|
||||||
Checking
accounts
|
2,206,362
|
1,841,450
|
||||||
Savings
deposits
|
3,415,210
|
3,000,466
|
||||||
Time
deposits
|
5,948,768
|
4,855,393
|
||||||
Investments
accounts
|
144,286
|
210,575
|
||||||
Other
|
452,479
|
477,880
|
||||||
Interest
and listed—price differences accrued payable
|
109,089
|
96,779
|
||||||
OTHER
LIABILITIES FROM FINANCIAL TRANSACTIONS
|
1,484,007
|
1,244,795
|
||||||
Argentine
Central Bank—Other
|
1,761
|
100,745
|
||||||
Banks
and International Institutions
|
178,943
|
224,311
|
||||||
Non—subordinated
corporate bonds
|
248,638
|
286,486
|
||||||
Amounts
payable for spot and forward purchases to be settled
|
303,368
|
26,165
|
||||||
Instruments
to be delivered for spot and forward sales to be settled
|
34,264
|
165,727
|
||||||
Non-deliverable
forward transactions balances to be settled
|
206
|
150
|
||||||
Financing
received from Argentine financial institutions
|
235,868
|
74,927
|
||||||
Other
(Note 6.f)
|
474,523
|
359,875
|
||||||
Interest
and listed—Price differences accrued payable
|
6,436
|
6,409
|
||||||
OTHER
LIABILITIES
|
340,129
|
251,979
|
||||||
Fees
payable
|
156
|
156
|
||||||
Other
(Note 6.g)
|
339,973
|
251,823
|
||||||
ALLOWANCES
|
493,848
|
263,191
|
||||||
SUSPENSE
ITEMS
|
3,957
|
2,299
|
||||||
SUBSIDIARIES’
OTHER LIABILITIES (Note 6.h)
|
1,835,871
|
1,617,891
|
||||||
TOTAL
LIABILITIES
|
16,663,568
|
13,993,241
|
||||||
MINORITY
INTEREST IN SUBSIDIARIES
|
216,477
|
188,960
|
||||||
STOCKHOLDERS’
EQUITY
|
1,954,584
|
1,801,547
|
||||||
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
18,834,629
|
15,983,748
|
||||||
December
31,
|
||||||||
2006
|
2005
|
|||||||
DEBIT
ACCOUNTS
|
||||||||
Contingent
|
3,895,647
|
3,360,940
|
||||||
Guaranties
received
|
3,550,553
|
3,035,165
|
||||||
Contra
contingent debit accounts
|
345,094
|
325,775
|
||||||
Control
|
30,192,581
|
24,379,460
|
||||||
Receivables
classified as non recoverable
|
332,529
|
393,234
|
||||||
Other
(Note 6.i)
|
29,566,991
|
23,666,953
|
||||||
Contra
control debit accounts
|
293,061
|
319,273
|
||||||
Derivatives
|
701,020
|
140,143
|
||||||
“Notional” amount
of non-deliverable forward transactions
|
387,777
|
46,982
|
||||||
Interest
rate SWAP
|
30,000
|
—
|
||||||
Contra
debit derivatives accounts
|
283,243
|
93,161
|
||||||
For
trustee activities
|
32,716
|
29,896
|
||||||
Funds
in trust
|
32,716
|
29,896
|
||||||
TOTAL
|
34,821,964
|
27,910,439
|
||||||
CREDIT
ACCOUNTS
|
||||||||
Contingent
|
3,895,647
|
3,360,940
|
||||||
Credit
lines granted (unused portion) covered by debtor classification
regulations
|
13,695
|
3,827
|
||||||
Guaranties
provided to the Argentine Central Bank
|
52,743
|
70,293
|
||||||
Other
guaranties given covered by debtor classification
regulations
|
169,825
|
171,022
|
||||||
Other
guarantees given non covered by debtor classification
regulations
|
8,254
|
62
|
||||||
Other
covered by debtor classification regulations
|
100,577
|
80,571
|
||||||
Contra
contingent credit accounts
|
3,550,553
|
3,035,165
|
||||||
Control
|
30,192,581
|
24,379,460
|
||||||
Items
to be credited
|
228,192
|
134,517
|
||||||
Other
|
64,869
|
184,756
|
||||||
Contra
control credit accounts
|
29,899,520
|
24,060,187
|
||||||
Derivatives
|
701,020
|
140,143
|
||||||
“Notional” amount
of non-deliverable forward transactions
|
283,243
|
93,161
|
||||||
Contra
debit derivatives accounts
|
417,777
|
46,982
|
||||||
For
trustee activities
|
32,716
|
29,896
|
||||||
Contra
credit accounts for trustee activities
|
32,716
|
29,896
|
||||||
TOTAL
|
34,821,964
|
27,910,439
|
||||||
Fiscal
year ended December 31,
|
||||||||||||
2006
|
2005
|
2004
|
||||||||||
FINANCIAL
INCOME
|
1,936,404
|
1,654,152
|
1,154,825
|
|||||||||
Interest
cash and due from banks
|
17,353
|
25,364
|
12,641
|
|||||||||
Interest
on loans to the financial sector
|
91,875
|
21,245
|
5,675
|
|||||||||
Interest
on overdraft
|
102,072
|
41,346
|
25,184
|
|||||||||
Interest
on discounted instruments
|
55,699
|
22,989
|
10,867
|
|||||||||
Interest
on real estate mortgage
|
44,894
|
41,487
|
44,886
|
|||||||||
Interest
on collateral loans
|
7,366
|
3,622
|
1,370
|
|||||||||
Interest
on credit card loans
|
30,485
|
24,095
|
17,606
|
|||||||||
Interest
on other loans
|
190,495
|
151,583
|
96,688
|
|||||||||
Interest
on other receivables from financial transactions
|
35,314
|
10,374
|
6,921
|
|||||||||
Income
from secured loans—Decree No. 1387/01
|
297,468
|
323,851
|
246,692
|
|||||||||
Net
income from government and private securities
|
559,877
|
209,438
|
182,183
|
|||||||||
Indexation
by benchmark stabilization coefficient (CER)
|
354,566
|
663,743
|
375,921
|
|||||||||
Indexation
by salaries variation index (CVS)
|
—
|
—
|
37,740
|
|||||||||
Other
|
148,940
|
115,015
|
90,451
|
|||||||||
FINANCIAL
EXPENSES
|
568,345
|
608,949
|
458,360
|
|||||||||
Interest
on checking accounts
|
29,913
|
23,782
|
20,359
|
|||||||||
Interest
on savings deposits
|
4,811
|
3,675
|
3,639
|
|||||||||
Interest
on time deposit
|
307,084
|
151,034
|
104,963
|
|||||||||
Interest
on financing to the financial sector
|
2,314
|
1,325
|
1,111
|
|||||||||
Interest
on other liabilities from financial transactions
|
37,650
|
28,001
|
21,845
|
|||||||||
Other
interest
|
18,960
|
61,665
|
91,475
|
|||||||||
Indexation
by CER
|
121,321
|
306,815
|
166,712
|
|||||||||
Other
|
46,292
|
32,652
|
48,256
|
|||||||||
GROSS
INTERMEDIATION MARGIN—GAIN
|
1,368,059
|
1,045,203
|
696,465
|
|||||||||
ALLOWANCES
FOR DOUBTFUL LOANS
|
70,125
|
114,628
|
52,002
|
|||||||||
SERVICE
CHARGE INCOME
|
915,875
|
721,167
|
584,913
|
|||||||||
Related
to lending transactions
|
106,893
|
84,055
|
72,276
|
|||||||||
Related
to liability transactions
|
246,506
|
195,470
|
157,815
|
|||||||||
Other
commissions
|
430,102
|
334,254
|
282,855
|
|||||||||
Other
|
132,374
|
107,388
|
71,967
|
|||||||||
Carried
forward
|
2,213,809
|
1,651,742
|
1,229,376
|
Fiscal
year ended December 31,
|
||||||||||||
2006
|
2005
|
2004
|
||||||||||
Brought
forward
|
2,213,809
|
1,651,742
|
1,229,376
|
|||||||||
SERVICE
CHARGE EXPENSES
|
110,199
|
77,764
|
54,829
|
|||||||||
Commissions
|
76,538
|
52,821
|
33,176
|
|||||||||
Other
(Note 6.j)
|
33,661
|
24,943
|
21,653
|
|||||||||
OPERATING
EXPENSES
|
927,404
|
775,835
|
679,829
|
|||||||||
Payroll
expenses
|
523,904
|
423,013
|
351,694
|
|||||||||
Fees
to Bank Directors and Statutory Auditors
|
446
|
329
|
291
|
|||||||||
Other
professional fees
|
28,178
|
27,149
|
27,863
|
|||||||||
Advertising
and publicity
|
46,050
|
39,757
|
27,266
|
|||||||||
Taxes
|
46,937
|
37,818
|
30,949
|
|||||||||
Other
operating expenses (Note 6.k)
|
183,740
|
172,414
|
178,351
|
|||||||||
Other
|
98,149
|
75,355
|
63,415
|
|||||||||
NET
GAIN FROM FINANCIAL TRANSACTIONS
|
1,176,206
|
798,143
|
494,718
|
|||||||||
NET
LOSS ON MINORITY INTEREST IN SUBSIDIARIES
|
(39,016 | ) | (17,151 | ) | (12,901 | ) | ||||||
OTHER
INCOME
|
314,440
|
483,851
|
729,347
|
|||||||||
Income
from long-term investments
|
19,941
|
2,870
|
20,029
|
|||||||||
Punitive
interests
|
537
|
2,868
|
2,478
|
|||||||||
Loans
recovered and reversals of allowances
|
86,543
|
87,857
|
314,885
|
|||||||||
Other
(Note 6.l)
|
207,419
|
390,256
|
391,955
|
|||||||||
OTHER
EXPENSES
|
1,199,913
|
1,128,927
|
1,188,111
|
|||||||||
Punitive
interests and charges paid to Argentine Central Bank
|
475
|
67
|
108
|
|||||||||
Charge
for uncollectibility of other receivables and other
allowances
|
312,485
|
422,924
|
351,542
|
|||||||||
Amortization
of difference arising from judicial resolutions
|
262,312
|
219,961
|
203,428
|
|||||||||
Other
(Note 6.m)
|
624,641
|
485,975
|
633,033
|
|||||||||
NET
GAIN BEFORE INCOME TAX AND TAX ON MINIMUM PRESUME
INCOME
|
251,717
|
135,916
|
23,053
|
|||||||||
INCOME
TAX AND TAX ON MINIMUM PRESUME INCOME
|
71,680
|
18,712
|
77,099
|
|||||||||
NET
INCOME / (LOSS) FOR THE FISCAL YEAR
|
180,037
|
117,204
|
(54,046 | ) | ||||||||
NET
INCOME / (LOSS) PER ORDINARY SHARE (1)
|
0.38
|
0.25
|
(0.14 | ) | ||||||||
(1)
|
See
Note 16.14.
|
Fiscal
year ended December 31,
|
||||||||||||
2006
|
2005
|
2004
|
||||||||||
Cash
provided by operating activities
|
||||||||||||
Financial
income collected
|
2,026,792
|
1,545,426
|
1,353,146
|
|||||||||
Service
charge income collected
|
913,907
|
720,291
|
583,689
|
|||||||||
Other
sources of funds
|
262,124
|
214,596
|
476,348
|
|||||||||
Less:
|
||||||||||||
Financial
expenses paid
|
556,654
|
807,599
|
458,620
|
|||||||||
Operating
expenses paid
|
823,918
|
676,039
|
565,011
|
|||||||||
Other
expenses paid
|
719,330
|
528,799
|
665,907
|
|||||||||
Net
cash provided by operating activities
|
1,102,921
|
467,876
|
723,645
|
|||||||||
Less:
|
||||||||||||
Cash
used in / (provided by) investing activities
|
||||||||||||
Increase /
(Decrease) in government and private securities
|
307,844
|
431,297
|
(654,438 | ) | ||||||||
Increase /
(Decrease) in loans
|
1,734,612
|
(81,130 | ) |
1,657,800
|
||||||||
(Decrease)
in other receivables from financial transactions
|
(63,475 | ) | (27,678 | ) | (345,916 | ) | ||||||
(Decrease)
in investments in other companies
|
(15,800 | ) | (113 | ) | (15,209 | ) | ||||||
Increase
in premises and equipment, other fixed assets and intangible
assets
|
79,236
|
60,758
|
137,235
|
|||||||||
Increase
in other assets
|
153,022
|
163,472
|
52,928
|
|||||||||
Net
cash used in investing activities
|
2,195,439
|
546,606
|
832,400
|
|||||||||
Plus:
|
||||||||||||
Cash
provided by / (used in) financing activities
|
||||||||||||
Increase
in deposits
|
1,879,771
|
1,758,934
|
1,047,191
|
|||||||||
Increase /
(Decrease) in other liabilities from financial
transactions
|
98,682
|
(1,718,058 | ) | (701,124 | ) | |||||||
Increase /
(Decrease) in other liabilities
|
60,526
|
(16,788 | ) | (341,687 | ) | |||||||
Dividends
paid in cash
|
(27,000 | ) |
—
|
—
|
||||||||
Increase /
(Decrease) in minority interest in subsidiaries
|
27,517
|
(469 | ) | (1,971 | ) | |||||||
Cash
capital contributions
|
—
|
—
|
133,809
|
|||||||||
Net
cash provided by financing activities
|
2,039,496
|
23,619
|
136,218
|
|||||||||
Increase /
(Decrease) in cash and cash equivalents
|
946,978
|
(55,111 | ) |
27,463
|
||||||||
Cash
and cash equivalents at the beginning of the fiscal year
|
1,611,506
|
1,666,617
|
1,639,154
|
|||||||||
Increase /
(Decrease) in cash and cash equivalents
|
946,978
|
(55,111 | ) |
27,463
|
||||||||
Cash
and cash equivalents at the end of the fiscal year
|
2,558,484
|
1,611,506
|
1,666,617
|
|
a)
|
Swap
of Federal Government Secured loans in pesos held by Banco Francés
(Cayman) Limited for private sector loans denominated in US dollars
belonging to BBVA Banco Francés S.A. at market
value.
|
|
b)
|
Swap
of financial loans granted to BBVA Banco Francés S.A. by BBVA S.A. and
Banco Francés (Cayman) Limited for equal
halves.
|
|
c)
|
Finally
Banco Francés (Cayman) Limited sold Federal Government Secured loans to
BBVA S.A. at market value for the latter to pay for the purchase
of the
participation to BBVA Banco Francés S.A. through the transfer of those
loans. The sale price amounted to
US$238,462,142.
|
Non-capitalized
contributions |
Retained
earnings
|
|||||||||||||||||||||||||||||||
Capital
Stock(1)
|
Issuance
premiums(1)
|
Adjustments
to
stockholders’ equity(1)
|
Legal
|
Other
|
Unrealized
valuation
difference
|
Unappropriated
earnings
|
Total
|
|||||||||||||||||||||||||
Balances
at December 31, 2003
|
368,128
|
934,211
|
769,904
|
428,698
|
1,802
|
430,282
|
(1,359,048 | ) |
1,573,977
|
|||||||||||||||||||||||
Decisions
of Stockholders’ Meeting of April 22, 2004:
|
||||||||||||||||||||||||||||||||
-
Capital increase for the subscription of shares
|
103,233
|
261,179
|
—
|
—
|
—
|
—
|
—
|
364,412
|
||||||||||||||||||||||||
Absorption
approved by BCRA Resolution
No.
52/04
|
—
|
—
|
—
|
—
|
—
|
(200,000 | ) |
—
|
(200,000 | ) | ||||||||||||||||||||||
Net
loss for the fiscal year (2)
|
—
|
—
|
—
|
—
|
—
|
—
|
(54,046 | ) | (54,046 | ) | ||||||||||||||||||||||
Balances
at December 31, 2004
|
471,361
|
1,195,390
|
769,904
|
428,698
|
1,802
|
230,282
|
(1,413,094 | ) |
1,684,343
|
|||||||||||||||||||||||
Cumulative
losses absorption approved by
Stockholders’ Meeting held on April
28, 2005 (Communication “A”
4294 as supplemented of the BCRA)
|
—
|
(1,020,258 | ) | (456,925 | ) |
—
|
(1,802 | ) |
—
|
1,478,985
|
—
|
|||||||||||||||||||||
Net
income for the fiscal year
|
—
|
—
|
—
|
—
|
—
|
—
|
117,204
|
117,204
|
||||||||||||||||||||||||
Balances
at December 31, 2005
|
471,361
|
175,132
|
312,979
|
428,698
|
—
|
230,282
|
183,095
|
1,801,547
|
||||||||||||||||||||||||
Decisions
of Stockholders’ Meeting of April 27, 2006:
|
||||||||||||||||||||||||||||||||
-
Dividends paid in cash
|
—
|
—
|
—
|
—
|
—
|
—
|
(27,000 | ) | (27,000 | ) | ||||||||||||||||||||||
Statutory
Reserve
|
—
|
—
|
—
|
36,619
|
—
|
—
|
(36,619 | ) |
—
|
|||||||||||||||||||||||
Reversal
of “Unrealized valuation difference” due to foreign currency compensation
(Notes 3.4.2. and 4.2.)
|
—
|
—
|
—
|
—
|
—
|
(230,282 | ) |
230,282
|
—
|
|||||||||||||||||||||||
Net
income for the fiscal year
|
—
|
—
|
—
|
—
|
—
|
—
|
180,037
|
180,037
|
||||||||||||||||||||||||
Balances
at December 31, 2006
|
471,361
|
175,132
|
312,979
|
465,317
|
—
|
—
|
529,795
|
1,954,584
|
(1)
|
See
Note 1.2.
|
NOTE 1 | — CORPORATE SITUATION AND BANK’S ACTIVITIES |
1.1.
|
Corporate situation | ||
Banco
Francés has its main place of business in Buenos Aires and operates a
232-branch network.
As
from December, 1996 Banco Francés is part of Banco Bilbao Vizcaya
Argentaria S.A. (BBVA) global strategy, which controls the Bank,
direct
and indirectly, with 75.97% of the corporate stock as of December
31,
2006.
Part
of Banco Francés’ 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.
|
Stockholders´ Equity | ||
1.2.1.
|
Capital
stock
|
||
Changes in the Bank’s capital stock during the last 5 fiscal years are as follows: |
Date
of
|
|||||||||
Stockholders’
Meeting deciding on the issuance |
Registration
with the
Public Registry of Commerce |
Form
of
placement
|
Amount
(in
thousands)
|
Total
|
|||||
Capital
Stock as of December 31, 1999:
|
209,631
|
||||||||
08-07-2002
|
02-06-2003
|
(1)
|
158,497
|
368,128
|
(2)
|
||||
04-22-2004
|
01-25-2005
|
(1)
|
103,233
|
471,361
|
(2)
|
_______________ | |||
(1)
|
Through public subscription of shares. | ||
(2)
|
The
amount of Capital Stock is fully paid in and authorized for public
offering by National Securities Commission (“CNV”).
|
||
1.2.2.
|
Authorized and issued shares | ||
The capital stock of the Bank consists of 471,361,306 Ordinary Shares, par value 1.00 each, all of which are issued and available to stockholders. At July 1, 1992 there were 58,099,410 Ordinary Shares, par value 1.00 each. Following a stock distribution and a share subscription in September 1993, the total number of authorized and issued Ordinary Shares, par value 1.00 each, increased by 34,859,700 Ordinary Shares and by 18,539,914 Ordinary Shares, respectively. Furthermore, following stock distributions in September 1995 and October 1996, the total number of authorized and issued Ordinary Shares, par value 1.00 each, increased by 16,724,854 and 19,233,582 Ordinary Shares, respectively. At March 1998, the total number of authorized and issued Ordinary Shares, par value 1.00 each, increased by 25,000,000 and 14,174,432, respectively, as a result of the issuance of common stock originated by share subscription and by the exchange share rate by merger with Banco de Crédito Argentino (BCA), for a total of 186,631,892 Ordinary Shares, par value 1.00 each. In April 1999, the total number of authorized and issued Ordinary Shares, par value 1.00 each, increased by 23,000,000 as a result of the issuance of common stock by a share subscription. In August 2002, the total number of authorized and issued Ordinary Shares, par value 1.00 each, increased by 158,496,540 as a result of the issuance of common stock by a share subscription. Finally, the total number of authorized and issued ordinary shares, par value 1.00 each, increased by 103,232,874 as a result of the issuance of common stock above mentioned. |
1.2.3.
|
Adjustments to stockholders’ equity | ||
The “Adjustments to stockholders’ equity” caption in the Consolidated Statement of Changes in Stockholders’ Equity represents: | |||
|
a)
The balance of the surplus of the technical valuation on the Bank’s
properties made in 1,981, which is available to absorb losses on
the
disposal or devaluation of such properties restated by inflation
as
mentioned in Note 3.2.
|
||
|
b)
The inflation adjustment related to capital stock at the beginning
of each
year, restated as mentioned in Note 3.2.; capital stock maintains
its
nominal (par) value at each balance sheet date.
|
||
|
c)
The inflation adjustment related to the increase in capital stock
restated
as mentioned in Note 3.2. This adjustment represents the effect of
inflation from the date on which the capital stock was increased
to the
end of each fiscal year.
|
||
The composition of “Adjustments to stockholders’ equity” is as follows: |
|
December
31, 2006
and 2005 |
||
Adjustment
to equity fund appraisal revaluation
|
41,285
|
||
Adjustments
to capital stock (including Issuance Premiums)
|
728,619
|
||
Cumulative
losses absorption
|
(456,925)
|
||
Total
|
312,979
|
1.2.4. |
Issuance
Premiums
|
|
In
August 2002 due to the issuance of 158,496,540 shares subscription
in
(value 1 per share), at 3.59 each, the Bank received 590,996 over
the
nominal value of the shares that has been recorded under the “Issuance
Premiums” account. Finally, due to the issuance of 103,232,874 shares
subscription in April 2004 (value 1 per share) at 3.53 each, the
Bank
received 261,179 over the nominal value of the shares that has been
recorded under the “Issuance Premiums” account.
|
||
1.3. |
Responsibility
of stockholders
|
|
Banco
Francés 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.
|
||
1.4. |
Sale
of Credilogros Cía. Financiera S.A.
|
|
On
March 9, 2005, Banco Francés, Inversora Otar S.A. and BBVA sold their
aggregate shareholdings in Credilogros Cía. Financiera S.A. to Banco de
Servicios y Transacciones S.A. and Grupo de Servicios y Transacciones
S.A.
The amount of the transaction was US$16,900,000, based on the financial
statements as of December 31, 2004 (upon entering into the sale agreement,
an advance payment was made for 20% of the price) plus the accrued
results
during the period between that day and the closing date of the
operation.
As
of June 28, 2006 BCRA approved this operation by Resolution No. 146.
This
transaction was performed on July 11, 2006 and the shares of Credilogros
Cía. Financiera S.A. were transferred, originating an income of
12,979.
|
1.5. |
Sale
of Banco Francés (Cayman) Limited
|
|
On
March 18, 2004, the Bank sold to BBVA its 100% interest in Banco
Francés
(Cayman) Limited.
The
sale price amounted to US$238,462,142, and it was collected through
Federal Government secured loans previously purchased by BBVA from
Banco
Francés (Cayman) Limited. Banco Francés has recorded such secured loans in
conformity with Communication “A” 3911 and supplementary regulations. The
negative result of the transaction was 210,978 (see Note
4.2.).
|
NOTE 2 | — EQUITY INVESTMENTS |
2.1. |
In
controlled majority-owned subsidiaries
|
|
The
following summarizes the investment in, and related information of,
controlled majority-owned subsidiaries which are
consolidated.
|
Shares
|
Percentage
participation
|
|||||||||||||||
Principal
Activity
|
Type
|
Quantity
|
Capital
|
Votes
|
||||||||||||
December
31,
|
December
31,
|
December
31,
|
||||||||||||||
Companies
|
2006
|
2005
|
2006
|
2005
|
2006
|
2005
|
||||||||||
Francés
Valores Sociedad de Bolsa S.A
|
Stockholder
|
Common
|
12,137
|
12,137
|
94.9687
|
99.9700
|
94.9687
|
99.9700
|
||||||||
Atuel
Fideicomisos S.A.
|
Trust
manager
|
Common
|
13,099,869
|
13,099,869
|
99.9999
|
99.9999
|
99.9999
|
99.9999
|
||||||||
Consolidar
A.F.J.P. S.A.
|
Pensions
fund manager
|
Common
|
75,842,839
|
75,842,839
|
53.8892
|
53.8892
|
53.8892
|
53.8892
|
||||||||
Consolidar
Cía. de Seguros de Vida S.A.
|
Insurance
company
|
Common
|
7,383,921
|
7,383,921
|
65.9600
|
65.9600
|
65.9600
|
65.9600
|
||||||||
Consolidar
Cía. de Seguros de Retiro S.A.
|
Insurance
company
|
Common
|
25,033,832
|
25,033,832
|
66.6666
|
66.6666
|
66.6666
|
66,6666
|
||||||||
PSA
Finance Argentina Cía. Financiera S.A.
|
Financial
institution
|
Common
|
9,000
|
9,000
|
50.0000
|
50.0000
|
50.0000
|
50.0000
|
||||||||
Credilogros
Cía. Financiera S.A.
|
Financial
institution
|
Common
|
—
|
39,700,000
|
—
|
69.5271
|
—
|
69,5271
|
2.2. |
Non-controlling
equity investments
|
|
The
following are all positions that the Bank holds in financial and
non-financial institutions wherever such a position represented
an
ownership in excess of 2% of the invested companies’ capital stock as of
December 31, 2006.
|
Investment
|
Country
|
%
of Shares
Owned
|
Principal
Activity
|
Investment
in Other Subsidiaries
(in
thousands of pesos)
|
Rombo
Compañía Financiera S.A.
|
Argentina
|
40.00%
|
Financial
institution
|
13,362
|
Consolidar
ART S.A.
|
Argentina
|
12.50%
|
Workers
compensation
|
21,613
|
BBVA
Consolidar Seguros S.A.
|
Argentina
|
12.22%
|
Insurance
|
5,940
|
Assurex
S.A.
|
Argentina
|
12.50%
|
Insurance
|
33
|
Coelsa
S.A.
|
Argentina
|
11.39%
|
Clearing
house
|
117
|
Interbanking
S.A.
|
Argentina
|
9.09%
|
Information
services for financial markets
|
1,048
|
Argencontrol
S.A.
|
Argentina
|
7.77%
|
Agent
Mandatary
|
54
|
Sedesa
S.A.
|
Argentina
|
12.57%
|
Deposit
Guarantee Fund
|
126
|
Banelco
S.A.
|
Argentina
|
10.91%
|
Nationwide
ATM network & credit card administrating
|
5,911
|
Visa
Argentina S.A.
|
Argentina
|
5.00%
|
Credit
card issuer
|
1,160
|
NOTE 3 | — SIGNIFICANT ACCOUNTING POLICIES |
3.1. | Basis of presentation | |||
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 (“FACPCE”), the Bank has consolidated - line by line - its balance sheets and statements of operations as of December 31, 2006, 2005 and 2004, as per the following detail: | ||||
- | As of December 31, 2006: | |||
a)
|
With
the financial statements of Francés Valores Sociedad de Bolsa S.A., Atuel
Fideicomisos S.A. and its subsidiary and PSA Finance Argentina Cía.
Financiera S.A., for the fiscal year ended December 31,
2006.
|
|||
b)
|
With
the financial statements of Consolidar Administradora de Fondos de
Jubilaciones y Pensiones S.A., Consolidar Cía. de Seguros de Vida S.A. and
Consolidar Cía. de Seguros de Retiro S.A., for the six month period ended
December 31, 2006.
|
|||
- |
As
of December 31, 2005:
|
|||
c)
|
With
the Financial Statements of Credilogros Cía. Financiera S.A., Francés
Valores Sociedad de Bolsa S.A., Atuel Fideicomisos S.A. and its subsidiary
and PSA Finance Argentina Cía. Financiera S.A., for the fiscal year ended
December 31, 2005.
|
|||
d)
|
With
the Financial Statements of Consolidar Administradora de Fondos de
Jubilaciones y Pensiones S.A., Consolidar Cía. de Seguros de Vida S.A. and
Consolidar Cía. de Seguros de Retiro S.A., for the six-month period ended
December 31, 2005.
|
|||
- | As of December 31, 2004: | |||
a)
|
With
the Financial Statements of Credilogros Cía. Financiera S.A., Francés
Valores Sociedad de Bolsa S.A., Atuel Fideicomisos S.A. and its subsidiary
and PSA Finance Argentina Cía Financiera S.A., for the fiscal year ended
December 31, 2004.
|
|||
b)
|
With
the Financial Statements of Consolidar Administradora de Fondos de
Jubilaciones y Pensiones S.A., Consolidar Cía. de Seguros de Vida S.A. and
its subsidiary and Consolidar Cía. de Seguros de Retiro S.A. and its
subsidiary, for the six-month period ended December 31,
2004.
|
|||
The
income / (loss) of Consolidar Administradora de Fondos de Jubilaciones
y
Pensiones S.A., Consolidar Cía. de Seguros de Vida S.A. and its subsidiary
and Consolidar Cía. de Seguros de Retiro S.A. and its subsidiary, have
been adjusted in order to homogenize the periods of companies
consolidating on the basis of a twelve-month period ended on December
31,
2006, 2005 and 2004.
Interests
in subsidiaries are listed in Note 2.
|
||||
3.2. | 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 the FACPCE Technical Pronouncement
No. 6
(modified by the Technical Pronouncement No.19), using inflation
rates
derived from the Internal Wholesale Price Index published by the
National
Institute of Statistics and Census
(I.N.D.E.C.).
|
Accordingly
to the above mentioned method, the accounting figures were restated
due to
the purchasing power changes through August 31, 1995. As from that
date,
based on the prevailing economic stability conditions and accordingly
with
CNV General Resolution No. 272 and BCRA Communication “A” 2365, the
accounting figures were not restated through December 31, 2001. In
view of
CNV General Resolution No. 415 and BCRA Communication “A” 3702, the method
was reinstated effective as from January 1, 2002, considering the
previous
accounting figures as restated as of December 31, 2001.
By
Communication “A” 3921 of the BCRA and General Resolution No. 441/03 of
the CNV, in compliance with Decree No. 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.
Accordingly, Banco Francés applied the mentioned restatement by inflation
until February 28, 2003.
|
||
3.3. |
Comparative
information
|
|
The
Consolidated Financial Statements as of December 31, 2006 include
comparative information with the Consolidated Financial Statements
for the
fiscal years ended December 31, 2005 and December 31, 2004.
The
Consolidated Financial Statements and notes for the fiscal year ended
December 31, 2004 have been modified due to adjustments to prior
year’s
income / (loss) (see Note 3.4.18.).
|
||
3.4. |
Valuation
methods
|
|
The
main valuation methods used in the preparation of the Financial Statements
have been as follows:
|
||
3.4.1. |
Foreign
currency assets and liabilities
|
|
As
of December 31, 2006 and 2005, such amounts were converted at the
benchmark exchange rate of the BCRA as of the closing date of transactions
on the last business day of each fiscal year. The exchange differences
were charged to income (loss) for each fiscal year.
|
||
3.4.2. |
Government
and private securities
|
|
Government
securities:
|
||
§
|
Holdings in investment accounts: | |||
- |
Discount
Bonds and GDP- linked Securities in pesos: as of December 31, 2006
and
2005 were recorded at the book value of the instruments delivered
for
exchange less payments received during 2004 and 2005, without exceeding
the nominal cash flow amount until maturity applicable under the
terms and
conditions of the bonds received.
|
|||
As
of December 31, 2006, the Company has set up allowances to cover
the
difference between the amounts recorded as described above and the
market
value.
|
||||
- |
Federal
Government Bonds in US Dollars LIBOR 2012 - Compensation:
|
|||
As
of December 31, 2006 and 2005 they were valued based on the quotation
prevailing at the end of the fiscal year plus outstanding
coupons.
The
outstanding compensation amounting as of December 31, 2005 (resulting
from
the redenomination into US dollars of the liabilities with the Financial
and Insurance Institutions Assistance Trust Fund detailed in Note
12) was
valued pursuant to the same criterion and was recorded under Other
receivables from financial transactions, in the line Other receivables
not
covered by debtor classification
regulations.
|
On
October 13 and 23, 2006, the Bank received the Bonds related to
compensation and hedging as well as the amounts reflecting principal
and
interest outstanding as of the date they were received. The Bank
subscribed BODEN 2012, the Bond related to “hedging” in cash and with
these two occurrences the compensation issue was considered complete
in
accordance with applicable regulations.
Therefore,
the balance under “Unrealized valuation difference” has been reclassified
as “Unappropriated earnings”.
|
||||
- |
Holdings
for trading or financial transactions and instruments issued by the
BCRA:
they were valued based on current listed prices for each security
as of
December 31, 2006 and 2005. Differences in listed prices were
credited/charged to income for each fiscal year then
ended.
|
|||
- |
Unlisted
government securities: this includes the Guaranteed Bonds issued
by the
National Government, maturing in 2020 and received in relation to
the
restructuring of the Provincial Development Trust Fund’s indebtedness (see
Note 3.4.3.). As of December 31, 2006 these bonds were valued at
the lower
of present or face value (including adjustment and accrued interest),
as
established by Communication “A” 3911 as amended of the BCRA, less of the
estimated allowance to impairment value.
|
|||
Investments in listed private securities: | ||||
|
§
|
Equity and debt instruments: they were valued based on current listed prices as of December 31, 2006 and 2005. Differences in listed prices were charged to income for each fiscal year then ended. | ||
3.4.3. |
Government
loans
|
|||
Federal
Government secured loans - Decree No. 1387/01:
|
||||
As
of December 31, 2006 and 2005, these loans were valued at the lower
of
present or face value, as established by Communication “A” 3911 of the
BCRA.
The
present value as of December 31, 2006 and 2005 was calculated by
discounting the cash flows as per the relevant contracts at an annual
rate
of 5% and 4% respectively, in accordance with the provisions of the
abovementioned Communication for December, 2006 and 2005.
The
face value was calculated in accordance with the swap values established
by the Ministry of Economy at November 6, 2001 converted into pesos
at
rate of Ps.1.40 per dollar plus CER plus interest accrued through
the end
of each fiscal year.
The
net effect of differences between the value determined for each loan
(the
lower of present or face value) and their theoretical value was charged
to
the balancing account under Loans established by Communication “A”
3911.
In
accordance with the abovementioned Communication, the theoretical
value
was calculated based on the book value at February 28, 2003, net
of the
balancing account derived from the swap set forth by Decree No. 1387/01
and restated by the CER through the end of the fiscal year.
Consolidar
A.F.J.P. S.A., Consolidar Cía. de Seguros de Retiro S.A. and Consolidar
Cía. de Seguros de Vida S.A.: loans secured by the National Government
-
Decree No. 1387/01 held by these subsidiaries amounting to 768,514
and
666,029 were valued in accordance with the regulations of the
Superintendence of Pension Fund Administrators (A.F.J.P) and the
National
Superintendence of Insurance.
|
Provincial
Governments loans and other Government loans
As of December 31, 2005 these loans were valued at the lower of present or face value (including adjustment and accrued interest), as established by Communication “A” 3911 of the BCRA. The
present value at the end of the prior fiscal year was calculated
by
discounting the estimated cash flows at an annual rate of 4% respectively,
in accordance with the provisions of the abovementioned Communication
for
December, 2005.
As
the present value determined was lower than the face value (which
agrees
with the theoretical value), this difference was recognized against
the
balancing account under Loans established by Communication “A”
3911.
In
accordance with the abovementioned Communication, the theoretical
value
was calculated based on the book value at February 28, 2003 restated
by
the CER through the end of the fiscal year.
This
item includes 812,165 at the end of the prior fiscal year, corresponding
to Provincial Development Trust Fund Corporate Bonds, and in exchange
for
which BOGAR 2020 has been received during the fiscal
year.
|
|||
3.4.4. | Benchmark stabilization coefficient (CER) | ||
As of December 31, 2006 and 2005, receivables and payables have been adjusted to the CER as follows: | |||
§
|
Federal
government guaranteed loans have been adjusted under Resolution No.
50/02
of the Ministry of Economy, which resolved that the CER effective
10 (ten)
days prior to the maturity date of the related service will be considered
for yield and repayments of the loans.
|
||
§
|
Loans
to private sector and receivables from sale of assets (subject to
conversion into pesos): they have been adjusted in accordance with
Communication “A” 3507 of the BCRA and supplementary regulations, which
resolved that the payments through September 30, 2002, were made
under the
original terms of each transaction and were booked as prepayments,
where
as from February 3, 2002, the principal was adjusted to the CER prevailing
on December 31, 2006 and 2005, deducting the prepayments mentioned
above
as from the payment date, except those subject to the provisions
of
Decrees No. 762/02 and 1242/02, which excluded the application of
that
coefficient from some mortgage, pledge, personal and other lines
of
credit.
|
||
§
|
Federal
government secured bonds due in 2020 and Provincial Development Trust
Fund
Corporate Bonds: have been adjusted under Resolution No. 539/02 of
the
Ministry of Economy, which resolved that the CER effective 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 December 31, 2006 and 2005.
|
||
In November 2003, the Bank accrued the C.V.S. (Salary Variation Coefficient) accumulated through that date for accounting purposes and has applied this coefficient on balances until its repeal in May 2004. | |||
3.4.5. |
Allowance
for loans losses and contingent commitments
|
||
For
loans, other receivables from financial transactions, assets subject
to
financing leasing, 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.
|
3.4.6. |
Interest
income recognition
|
||
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 and loans to financial sector which were
apportioned on a linear basis.
The
Bank suspends the accrual of interest generally when the related
loan is
non-performing and the collection of interest and principal is in
doubt.
Accrued interest remains on the Bank’s books and is considered a part of
the loan balance when determining the allowances for loan losses.
Interest
is then recognized on a cash basis after reducing the balance of
accrued
interest, if applicable.
|
|||
3.4.7. |
Unlisted
Corporate Bonds
|
||
They
were valued at acquisition cost plus income accrued but not collected
as
of December 31, 2006 and 2005.
|
|||
3.4.8. |
Instruments
to be received and delivered for spot and forward transactions to
be
settled
|
||
The
Bank enters into forward contracts to buy or sell foreign currencies,
listed Government securities and other securities at future dates.
Both a
receivable and a payable are recognized at the time of the agreement,
which reflects the amounts of cash, currency or listed securities
to be
exchanged at the closing date. The difference between the receivable
and
payable at the original transaction date (premiums) is deferred and
amortized over the contract’s life.
The
Bank purchases and sells foreign currencies, listed Government and
other
securities on behalf of its customers which settle another day. An
asset
or liability is reflected for the amount due from or to the customer
and a
corresponding asset or liability is reflected for the currency or
listed
securities to be exchanged.
The
Bank’s receivables or payables representing the future receipt or delivery
of currencies or securities are adjusted to reflect the current market
price of such currencies or securities. The amount of such market
price
differences is recorded in income for the fiscal year.
Forward
sales and purchases of securities associated with repurchase agreements
were valued as follows:
|
|||
§
|
In
foreign currency: as of December 31, 2006 and 2005, they were valued
according to the benchmark exchange rate of the BCRA for each currency
determined on the last business day of each fiscal
year.
|
||
§
|
Holdings
in investment accounts and for trading transactions: according to
the
method described in Note 3.4.2.
|
||
3.4.9. |
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 December 31, 2006 and 2005. | |||
3.4.10. |
Assets
subject to financing leasing
|
||
As
of December 31, 2006 and 2005, they have been valued at the present
value
of unaccrued installments calculated as per the conditions agreed-upon
in
the respective contracts, applying the imputed interest rate
thereto.
|
3.4.11. |
Investments
in other companies
|
||
They
have been valued according to the following methods:
|
|||
§ | VISA Argentina S.A., Banelco S.A., Consolidar A.R.T. S.A., Rombo Cía. Financiera S.A., BBVA Consolidar Seguros S.A. and Interbanking S.A.: as of December 31, 2006 and 2005 were valued by the equity method at the end of each fiscal years. | ||
§ |
Other:
as of December 31, 2006 and 2005 were valued at acquisition cost,
without
exceeding their recoverable value.
|
||
3.4.12. |
Premises
and equipment and Other assets
|
||
They
have been valued at acquisition cost plus increases from prior year
appraisal revaluations, restated by inflation as explained in Note
3.2.,
less related accumulated depreciation calculated in proportion to
the
months of estimated useful life of items concerned.
|
|||
3.4.13. |
Intangible
assets
|
||
They
have been valued at acquisition cost restated by inflation as explained
in
Note 3.2., less related accumulated depreciation calculated in proportion
to the months of estimated useful life of the items
concerned.
This
caption includes 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) is amortized within the 60 monthly installments starting
in
April 2003 in accordance with Communication “A” 3916 of the Argentine
Central Bank.
As
of December 31, 2006 and 2005, the Bank recorded assets amounting
to
343,450 and 565,352, respectively to reflect the above items (after
deduction of accumulated amortization for 816,103 and 554,036,
respectively), under the caption Intangible Assets and in the account
Organization and development expenses.
The
Bank, however, notifies that such amortization is 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.
In
its decision in case “Massa, Juan Agustín versus National Executive Branch
- Decree No. 1570/01 and others following petitions for protection
of
civil rights under Law No. 16,986” dated December 27, 2006, the Argentine
Supreme Court of Justice confirmed by the majority vote of its members
the
validity of the emergency legislation enacted during 2001, 2002 and
subsequent years; i.e., the Supreme Court accepted the re-denomination
into Pesos of deposits as well as the calculation methodology for
the
reimbursement of the bank deposits subject to the emergency regime
imposed
by the Argentine Government which unconstitutionality was claimed
in the
case mentioned. This decision by the Supreme Court of Justice establishes
a calculation modality different from the modality decreed by the
Executive Branch, establishing in this particular case the following
criteria: each depositor is entitled to receive from the banking
institution a reimbursement of the amount deposited converted into
Pesos
at the US$1 = AR$ 1.40 exchange rate, adjusted by CER until the date
of
effective payment, plus compensatory interest at the annual, non
compoundable 4% interest rate accruing as from the establishment
of
restrictions upon the availability of bank deposits or as from the
date of
maturity of the deposit if it was subsequent to February 28, 2002
subject
to the monetary limit resulting from the decision handed down by
the Court
of Appeals, provided that the latter’s decision had not been appealed by
the plaintiff. In addition, it has been established that the amounts
withdrawn from the bank in the framework of court rulings or out-of-court
arrangements shall be considered to be advanced payments with no
specifications about adjustment modalities in that respect. As regards
court costs, they are to be borne as incurred by each party in that
stage
of the proceedings. After such decision was rendered, judgments have
been
applying this legal
|
precedent
and they hold that court costs are to be borne as incurred by each
party
at all stages of the proceedings. As of December 31, 2006, BF has
estimated this contingency and it has raised allowances for the total
amount.
In
the opinion of the Bank’s Board of Directors and its legal advisors there
exists compensation or recovery probabilities for such equity
loss.
Consolidar
AFJP S.A.: the intangible assets of this subsidiary were amortized
in
accordance with the standards of the A.F.J.P.’s
Superintendence.
|
||||
3.4.14. |
Employee
termination pay
|
|||
The
Bank expenses employee termination pay as disbursed.
|
||||
3.4.15. |
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 December 31, 2006 and
2005.
|
||||
3.4.16. |
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.
|
||||
3.4.17. |
Stockholders’
equity accounts
|
|||
They
are restated by inflation as explained in Note 3.2., except for the
“Capital Stock” and “Non-capitalized contributions” accounts which have
been kept at original value. The adjustment resulting from the restatement
is included in the “Adjustment to Stockholders’ Equity”
account.
The
Stockholders’ Meeting held on April 27, 2006 decided to paid dividends in
cash as detailed in the Consolidated Financial Statements of Changes
in
Stockholders' Equity.
|
||||
3.4.18. |
Adjustments
to prior years income
|
|||
Following
we present a summary of the adjustments recorded by the Bank in fiscal
year 2005, under BCRA rules, to prior years income which affect fiscal
year 2004:
|
Items
|
Adjustments
|
Investments
in other companies
|
The
Bank recorded an adjustment to earnings of prior years of 115 (loss)
due
to adjustments of certain investments in other companies. This adjustment
affected the items Investments in Other Companies of the balance
sheet as
of December 31, 2004 by 115 (decrease) and Other Income of the income
statement as that date by 90 (decrease).
|
Intangible
assets
|
The
Bank recorded an adjustment to earnings of prior years of 18,167
(loss)
due to a change in the accounting criteria applied to certain projects.
Said adjustment affected the item Intangible Assets of the Balance
Sheet
as of December 31, 2004 by 18,167 (decrease) and the item Operating
Expenses - Other Operating Expenses of the statement of income as
of that
date by 12,119 (decrease).
|
Items
|
Adjustments
|
Other
liabilities
|
The
Bank recorded an adjustment to earnings of prior years for 8,040
(loss) to
reflect expenses of software maintenance and transport of values
corresponding to the fiscal year ended December 31, 2004. This adjustment
affected the item Other Liabilities from the balance sheet as of
December
31, 2004 in 8,040 (increase), the item Administrative Expenses -
Other
Operating Expenses of the statement of income in 7,390 (increase)
and the
item Operating Expenses - Other in 650 (increase).
|
Tax
on minimum presumed income (“TOMPI”)
|
On
February 11, 2005, the BCRA issued Communication “A” 4295 whereby it
allowed, under certain guidelines, to record TOMPI credit balances
as long
as this tax exceeded income tax. Therefore, on December 31, 2005,
the
Entity recorded this asset for 118,494 (90,094 in the items Other
Receivables - Tax on minimum presumed income and 28,400 in Other
Receivables - Other) and included an adjustment to earnings of prior
years
for a total amount of 92,631 (gain). In the balance sheet as of December
31, 2004, presented for comparative purposes, such adjustment affected
the
item Other receivables by 92,631 (increase) and in the statement
of income
as of that date affected the items Income Tax and Tax on Minimum
Presumed
Income and Other Income by 26,406 (decrease), whereas an adjustment
of
65,631 affected the book value at the beginning of fiscal year
2004.
|
Portfolio
variation coefficient
|
On
June 30, 2004, in compliance with the provisions under Communication
“A”
4114 of the BCRA and Resolution No. 302/04 of the Ministry of Economy
and
Production, the Bank proceeded to write off the asset representing
the
nominal difference generated by the application of CVS instead of
CER and
booked an adjustment of earnings of prior years for 141,064 (loss).
Under
no circumstances does such de-registration mean a waiver of
compensation.
|
3.4.19. |
Statements
of Operations Accounts
|
||
§ |
As
of December 31, 2006, 2005 and 2004, accounts accruing monetary
transactions (Financial Income (Expense), Service Charge Income (Expense),
Provision for Loan Losses, Operating 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 3.2.
|
||
§ |
Income
from investments in subsidiaries was computed based on such companies’
income adjusted as explained in Note 3.2.
|
||
3.4.20. |
Consolidated
statements of cash flows
|
||
For
purposes of reporting cash flows, cash and cash equivalents include
amounts set forth under “Cash and due from banks”. The Consolidated
Statement of Cash Flows was prepared using the measurement methods
prescribed by the BCRA, but in accordance with the SEC’s presentation
requirements.
|
|||
3.4.21. |
Other
assets and other liabilities from subsidiaries (Consolidar
Group)
|
||
They
have been valued in accordance with the accounting standards established
by the National Superintendence of Insurance and National Superintendence
of Pension Funds Managers.
|
3.4.22. |
Use
of estimates
|
||
The
preparation of the Consolidated Financial Statements in accordance
with
the standards set forth by the BCRA require the Bank’s Board of Directors
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 income/loss generated during
the
fiscal years being reported. Final income/loss may differ from such
estimates.
|
|||
NOTE 4 |
—
DIFFERENCIES BETWEEN BCRA ACCOUNTING STANDARDS AND GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES ACCEPTED
IN
BUENOS AIRES CITY
- ARGENTINA
|
||
By
Resolution No. 93/05 the Professional Council in Economic Sciences
of the
Autonomous City of Buenos Aires (CPCECABA) adopted, with certain
explanations, Technical Pronouncements Nos. 16 to 22 of the FACPCE
incorporating certain changes to the professional accounting valuation
and
disclosure standards. Furthermore, by General Resolutions No. 485/05
y
487/06, the CNV adopted, with certain amendments, those Technical
Pronouncements based on the resolutions of the CPCECABA.
The
Bank has prepared these Consolidated Financial Statements by applying
the
regulations of the BCRA, which do not contemplate some of the valuation
criteria incorporated to the accounting principles generally accepted
in
Buenos Aires City.
The
main differences between the regulations of the BCRA and the accounting
principles generally accepted in Buenos Aires City are detailed
below:
|
|||
4.1. |
Valuation
criteria
|
||
a) |
National
Government Secured Loans
|
||
During
the year ended on December 31, 2001, as a consequence of the provisions
of
Decree No. 1387/01, on November 6, 2001, the Bank exchanged national
government securities, bonds, treasury bills and/or unsecured loans
with
the National Government for a face value of US$3,291,795 thousands
for
Secured loans. At December 31, 2006 and 2005, those loans are recorded
under “Loans - to the Public Sector” amounting to 2,886,767 and 3,809,264,
respectively, in accordance with the criterion described in Note
3.4.3.
In
accordance with Resolution No. 290/01 of the CPCECABA, at December
31,
2006 and 2005, these assets should have been valued considering the
respective quotation values of the swapped bonds at November 6, 2001,
delivered in exchange. However, as of December 31, 2006 and 2005,
the book
value of these assets does not exceed their reasonable realization
value.
|
|||
b) |
Government
Securities and Other Credit Assistance to the Public
Sector
|
||
As
of December 31, 2005 the Bank kept other assets with the Public Sector
amounting to 1,172,681, in accordance with the criterion described
in
Notes 3.4.2., 3.4.3. and 3.4.8.
In
accordance with accounting principles generally accepted in Buenos
Aires
City, these assets must be valued at recoverable value and would
have
implied a decrease in stockholders’ equity in approximately 265,000 as of
December 31, 2005, whereas as of December 31, 2006 these holdings
did not
give raise to significant valuation differences compared to said
accounting standards.
|
|||
c) |
Effects
caused by court measures related to deposits (constitutional protection
actions)
|
||
As
mentioned in Note 3.4.13., as of December 31, 2006 and 2005, the
Bank
recorded assets amounting to 343,450 and 565,352 (whose original
values
had been 1,159,553 and 1,119,388) respectively, under “Intangible Assets -
Organization and Development Non Deductible Expenses” account
corresponding to differences resulting from compliance with the court
measures generated by the payment of deposits in the financial system
within the framework of Law No. 25,561, Decree No. 214/02 and
complementary regulations, as established by Communication “A” 3916 of the
BCRA. In accordance with professional accounting standards currently
in
force
|
in Buenos Aires City, the amounts detailed above should have been covered by an allowance up to the concurrence of the balance that represents the best possible estimate of the amounts to be recovered, an amount that may not be objectively determined as of the date of issuance of these statements. | |||
d) |
Tax
effects
|
||
As
already indicated in Note 5.1., 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 professional accounting
standards currently in force in Buenos Aires City, 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 337,000
and
360,000 as of December 31, 2006 and 2005, respectively, should be
recovered.
|
|||
4.2. |
Disclosure
aspects
|
||
Unrealized
valuation difference
According
to accounting principles generally accepted in Buenos Aires City,
the
amount recorded on December 31, 2005 should be recorded into
unappropriated earnings account of the stockholders´ equity.
In
accordance with Note 3.4.2. and due to the completion of the compensation
process in October 2006, the Bank recorded this amount under the
caption
Unappropriated earnings, as established by the rules of the Argentine
Central Bank.
During
the fiscal year 2004, the Bank absorbed 200,000 of the loss from
the sale
operation of the subsidiary of Banco Francés (Cayman) Limited and charged
to the account “Unrealized Valuation Difference” of the stockholders’
equity, according to what was authorized in the Resolution No. 52/04
of
the Superintendent of Financial and Exchange Institutions.
According
to accounting principles generally accepted in Buenos Aires City,
such
amount should have been charged to income (loss) for the fiscal year
ended
on December 31, 2004, while the remaining balance of the mentioned
account
should have been recorded into unappropriated earnings account of
the
stockholders’ equity.
|
|||
4.3. |
Other
differences with respect to generally accepted accounting principles
effective in Buenos Aires City, related to Consolidar Cía. de Seguros de
Retiro S.A.
|
||
The
Company included the balance from the technical commitments incurred
with
the insured in the Other Liabilities caption. The abovementioned
caption
includes 25,947 and 29,819 at December 31, 2006 and 2005, respectively,
corresponding to the regularizing account called “Unaccrued secured loans
valuation difference” which, as established by the Superintendence of
Insurance, will be settled through subsequent accrual of the regularizing
accounts of secured loans. In accordance with professional accounting
standards currently in force in Buenos Aires City, such amount should
have
been recorded as a loss for the fiscal year ended December 31,
2003.
|
|||
NOTE 5 | — TAX MATTERS | ||
5.1. |
Income
tax
|
||
The
Bank determined the charge for income tax by applying the effective
35%
rate to taxable income estimated for each period or fiscal year
considering the effect of temporary differences between accounting
and
taxable income. The Bank considered as temporary differences those
that
have a definitive reversal date in subsequent years. As of December
31,
2006 and at the end of the prior fiscal year, the Bank has estimated
that
there shall be no charge for income tax as the Bank is in a position
to
absorb the tax loss carryforwards from previous fiscal years.
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.
|
5.2. |
Tax
on minimum presumed income
|
5.3. |
Other
tax issues
|
NOTE 6 | — BREAKDOWN OF MAIN ITMES AND ACCOUNTS |
2006
|
2005
|
||||||
a)
GOVERNMENT AND PRIVATE SECURITIES
|
|||||||
Holdings
in investment accounts
|
|||||||
Federal
Government Bonds (LIBOR 2012) - Compensation
|
108,622
|
74,075
|
|||||
Discount
Bonds in pesos
|
406,674
|
360,516
|
|||||
Other
|
—
|
513
|
|||||
Total
|
515,296
|
435,104
|
|||||
Holdings
for trading or financial transactions
|
|||||||
Federal
Government Bonds 2008 (BODEN 2008)
|
8,748
|
54,723
|
|||||
Federal
Government Bonds LIBOR 2012
|
24,018
|
52,786
|
|||||
Buenos
Aires City Bond
|
6,648
|
7,358
|
|||||
Federal
Government Bonds LIBOR 2015
|
—
|
10,036
|
|||||
Federal
Government Bonds LIBOR 2014
|
22,094
|
3,036
|
|||||
Discount
Bonds in pesos
|
85,947
|
246,447
|
|||||
Discount
Bonds in US dollar
|
—
|
88,122
|
|||||
Peso-denominated
GDP-related securities
|
20,476
|
40,074
|
|||||
Cuasipar
Bonds in pesos
|
8,104
|
7,033
|
|||||
Secured
Bonds due in 2018
|
93,602
|
105,283
|
|||||
Federal
Government Bocon PRE8
|
15,910
|
45,196
|
|||||
Federal
Government Bonds in US dollar 7% due in 2011
|
9,807
|
—
|
|||||
Other
|
8,469
|
4,743
|
|||||
Total
|
303,823
|
664,837
|
|||||
Unlisted
government securities
|
|||||||
Secured
Bonds due in 2020
|
843,792
|
—
|
|||||
Tax
credit certificates due in 2003/2006
|
5
|
6
|
|||||
Total
|
843,797
|
6
|
|||||
Instruments
issued by the BCRA
|
|||||||
BCRA
Bills (LEBAC)
|
75,139
|
1,160,312
|
|||||
BCRA
Notes (NOBAC)
|
2,445,767
|
1,088,526
|
|||||
Total
|
2,520,906
|
2,248,838
|
2006
|
2005
|
Investments
in listed private securities
|
|||||||
Edesur
S.A. Corporate Bonds
|
16,755
|
28,530
|
|||||
Telefónica
de Argentina S.A. Corporate Bonds
|
9,405
|
36,280
|
|||||
Telecom
Personal Corporate Bonds
|
9,605
|
9,206
|
|||||
Camuzzi
Gas Pampeana Corporate Bonds
|
10,057
|
—
|
|||||
Rombo
Compañía Fianciera Corporate Bonds
|
6,906
|
—
|
|||||
Tarjeta
Naranja Trust
|
3,797
|
5,775
|
|||||
Acindar
S.A.
|
3,487
|
—
|
|||||
Telecom
|
4,280
|
1,738
|
|||||
Galtrust
1 Financial Trust
|
10,941
|
9,204
|
|||||
Milennium
Trust Financial Trust
|
5,281
|
—
|
|||||
Petrobrás
Energía S.A.
|
6,616
|
7,175
|
|||||
FBA
Bonos Argentina
|
6,608
|
—
|
|||||
FBA
Ahorro Pesos
|
7,592
|
—
|
|||||
Fideicomiso
de Gas
|
30,391
|
—
|
|||||
Grupo
Concesionario del Oeste Corporate Bonds
|
10,095
|
—
|
|||||
1784
Inversión Pesos FCI
|
3,906
|
1,182
|
|||||
Pionero
Pesos FCI
|
4,068
|
—
|
|||||
Banco
Macro Corporate Bonds
|
3,718
|
—
|
|||||
Other
|
49,888
|
56,759
|
|||||
Sub-Total
|
203,396
|
155,849
|
|||||
Allowances
|
(15,186
|
)
|
(323
|
)
|
|||
Total
|
4,372,032
|
3,504,311
|
|||||
b)
LOANS - Other
|
|||||||
Loans
granted to pre-finance and finance exports
|
1,109,307
|
466,875
|
|||||
Fixed-rate
financial loans
|
926,097
|
744,217
|
|||||
Other
|
246,839
|
153,199
|
|||||
Total
|
2,282,243
|
1,364,291
|
|||||
c)
INVESTMENTS IN OTHER COMPANIES - Others
|
|||||||
In
other non-controlled companies- unlisted
|
27,586
|
24,498
|
|||||
In
non-controlled companies-supplementary activities
|
12,860
|
12,894
|
|||||
Other
- unlisted
|
3,090
|
11,985
|
|||||
Total
|
43,356
|
49,377
|
|||||
d)
OTHER RECEIVABLES - Others
|
|||||||
Prepayments
|
22,602
|
28,213
|
|||||
Loans
to personnel
|
201
|
1,051
|
|||||
Guarantee
deposits
|
27,059
|
20,629
|
|||||
Miscellaneous
receivables
|
64,193
|
65,691
|
|||||
Tax
prepayments
|
372,364
|
389,534
|
|||||
Other
|
38,790
|
30,590
|
|||||
Total
|
525,209
|
535,708
|
2006
|
2005
|
e)
SUBSIDIARIES’ OTHER ASSETS
|
|||||||
Premium
receivables from insurance companies
|
25,749
|
23,461
|
|||||
Complementary
Capital - Insurance Company
|
—
|
13,226
|
|||||
Others
related to insurance business
|
450
|
3,568
|
|||||
Total
|
26,199
|
40,255
|
|||||
f)
OTHER LIABILITIES FROM FINANCIAL
|
|||||||
TRANSACTIONS
- Other
|
|||||||
Correspondents
- our account
|
23,746
|
16,622
|
|||||
Collections
and other operations for the account of third parties
|
29,815
|
44,633
|
|||||
Other
withholdings and collections at source
|
57,461
|
39,279
|
|||||
Accounts
payable for consumption
|
108,636
|
74,190
|
|||||
Money
orders payable
|
203,635
|
148,728
|
|||||
Other
|
51,230
|
36,423
|
|||||
Total
|
474,523
|
359,875
|
|||||
g)
OTHER LIABILITIES - Other
|
|||||||
Accrued
salaries and payroll taxes
|
150,102
|
101,364
|
|||||
Accrued
taxes
|
119,964
|
57,438
|
|||||
Miscellaneous
payables
|
65,532
|
84,909
|
|||||
Other
|
4,375
|
8,112
|
|||||
Total
|
339,973
|
251,823
|
|||||
h)
SUBSIDIARIES’ OTHER LIABILITIES
|
|||||||
Insurance
companies, claims in adjustment process
|
98,077
|
128,339
|
|||||
Fluctuation
fund - Consolidar Cía de Seguros de Retiro S.A.
|
108,585
|
79,887
|
|||||
Insurance
companies, mathematical reserve
|
1,574,374
|
1,367,010
|
|||||
Insurance
companies, reinsurer’s reserve
|
(301
|
)
|
(244
|
)
|
|||
Difference
arising from secured loans accrued valuation Consolidar
|
(25,947
|
)
|
(29,819
|
)
|
|||
Benefit
pending of integration - Resolution No. 29,796 Consolidar Cía de Seguros
de Retiro S.A.
|
(607
|
)
|
(2,203
|
)
|
|||
Others
related to insurance business
|
81,717
|
74,921
|
|||||
Total
|
1,835,871
|
1,617,891
|
|||||
i)
MEMORANDUM ACCOUNTS - DEBIT - CONTROL - Others
|
|||||||
Items
in safekeeping
|
28,347,949
|
22,672,909
|
|||||
Collections
items
|
512,838
|
528,885
|
|||||
Checks
drawn on the Bank pending clearing
|
157,409
|
105,251
|
|||||
Checks
not yet credited
|
521,952
|
341,081
|
|||||
Other
|
27,298
|
18,827
|
|||||
Total
|
29,566,991
|
23,666,953
|
2006
|
2005
|
2004
|
||||||||
j)
SERVICE CHARGE EXPENSE - Others
|
||||||||||
Turnover
tax
|
27,574
|
22,541
|
21,064
|
|||||||
Other
|
6,087
|
2,402
|
589
|
|||||||
Total
|
33,661
|
24,943
|
21,653
|
|||||||
k)
OPERATING EXPENSES - Other operating expenses
|
||||||||||
Rent
|
44,879
|
38,968
|
34,237
|
|||||||
Depreciations
of premises and equipment
|
31,781
|
29,248
|
34,727
|
|||||||
Amortizations
of organization and development expenses
|
22,967
|
28,082
|
38,104
|
|||||||
Maintenance,
conservation and repair expenses
|
30,712
|
26,157
|
23,656
|
|||||||
Electric
power and communications
|
21,714
|
21,440
|
20,569
|
|||||||
Security
services
|
19,340
|
17,251
|
14,557
|
|||||||
Other
|
12,347
|
11,268
|
12,501
|
|||||||
Total
|
183,740
|
172,414
|
178,351
|
|||||||
l)
OTHER INCOME - Others
|
||||||||||
Premiums
- Insurance companies
|
181,662
|
125,861
|
355,425
|
|||||||
Deferred
income tax
|
—
|
242,000
|
645
|
|||||||
Others
|
25,757
|
22,395
|
35,885
|
|||||||
Total
|
207,419
|
390,256
|
391,955
|
|||||||
m)
OTHER EXPENSE - Others
|
||||||||||
Insurance
companies, mathematical reserve
|
246,181
|
127,172
|
211,669
|
|||||||
Life
Annuities - Consolidar Cía. de Seguros de Retiro
|
98,279
|
85,312
|
71,067
|
|||||||
Tax
on bank credits and debits
|
24,189
|
17,670
|
17,311
|
|||||||
Deferred
tax expenses
|
23,000
|
—
|
—
|
|||||||
Losses
arising from transactions with fixed assets and
miscellaneous
|
8,484
|
27,034
|
13,111
|
|||||||
Claims
paid - Insurance companies
|
192,122
|
170,452
|
97,319
|
|||||||
Others
|
32,386
|
58,335
|
222,556
|
|||||||
Total
|
624,641
|
485,975
|
633,033
|
NOTE 7 |
—
RESTRICTIONS ON ASSETS
|
a)
|
The
Government and Private Securities account includes 51,503 in Guaranteed
Bonds maturing in 2018, allocated to the guarantee required to act
as
custodian of investment securities related to pension
funds.
|
b)
|
The
Bank appropriated loan funds of its active portfolio in an amount
of 1,228
to secure debts with the Argentine Central
Bank.
|
c)
|
Francés
Valores Sociedad de Bolsa S.A. (stock broking company) holds two
shares of
Mercado de Valores de Buenos Aires S.A, booked in the amount of 4,240.
These shares have been pledged in favour 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 non-compliance of stock broking companies with their
obligations.
|
NOTE 8 | — CONTINGENCIES |
NOTE 9 | — BANK DEPOSIT GUARANTEE INSURANCE SYSTEM |
NOTE 10 | — TRUST ACTIVITIES |
10.1.
|
Financial
Trusts
|
§
|
Corp
Banca Trust: it was created by an agreement dated May 13, 1997, executed
by Atuel Fideicomisos S.A. as trustee, Corp. Banca S.A. (later BBVA
Banco
Francés S.A.) as trustor and beneficiary, the Argentine Central Bank and
Seguro de los Depósitos S.A. as
beneficiaries.
|
§
|
Banco
Francés Trust: it was created by an agreement dated on May 12, 2000,
executed by Atuel Fideicomisos S.A. as trustee, and BBVA Banco Francés
S.A. as trustor and beneficiary. As from January 1, 2002, by an assignment
made by BBVA Banco Francés S.A., the beneficiary of the Trust Certificate
is Banco Bilbao Vizcaya Argentaria S.A.
(BBVA).
|
10.2.
|
Non-Financial
Trusts
|
NOTE 11 | — CORPORATE BONDS |
Global
program
amount |
Date
of
issuance |
Features
|
Face
value
|
Currency
|
Price
of
issue |
Nominal
annual rate |
Payment
of
interest |
Book
balance
(in thousands) |
Capital
expiration Date
|
|||||||||
US$1,000,000,000
|
11/26/2003
|
Non-subordinated
|
81,002,700
|
US$
|
100%
|
(1)
|
Semiannual
|
251,650
|
10/31/2008
(2)
|
NOTE 12 |
—
FUNDING OF THE FINANCIAL AND INSURANCE INSTITUTIONS ASSISTANCE TRUST
FUND
(FFAEFS)
|
12.1.
|
On
November 22, 1996, the ex-BCA requested the Board of the FFAEFS for
a
US$60,000,000 loan to finance the purchase of certain assets and
liabilities to be excluded from ex - Banco Caseros S.A. Such request
was
granted and the respective agreement was signed on December 18,
1996.
|
12.2.
|
On
December 22, 1997, Corp Banca (CB) executed with the FFAEFS a loan
for
consumption agreement in the amount of US$30,000,000, to be reimbursed
in
five annual, equal and consecutive installments starting as from
the
disbursement date. The first one would be paid three years after
such
date.
|
NOTE 13 | — COMPLIANCE WITH CNV REQUIREMENTS |
13.1.
|
Compliance
with the requirements to act as agent in the over-the-counter
market
|
13.2.
|
Investment
Funds custodian
|
NOTE 14 | — RESTRICTIONS ON EARNINGS DISTRIBUTIONS |
a)
|
In
accordance with the provisions of the Argentine Central Bank, the
next
Shareholders’ Meeting must appropriate the amount of 82,064 currently
included under Unappropriated earnings to the Statutory
reserve.
|
b)
|
As
stated in Note 12, the Bank may not distribute as dividends in cash
an
amount exceeding 50% of liquid and realized income related to each
one of
the financial statements regularly
prepared.
|
c)
|
In
accordance with Communication “A” 4589 of the Argentine Central Bank,
issued on October 29, 2006, in order to calculate the balances of
earnings
available for distribution the Bank has to deduct, on an off-balance
sheet
basis, point 2.1 of said Communication (see Earnings Distribution
Project), from the balance under Unappropriated earnings. In addition,
the
authorization of the Superintendent of Financial and Exchange Institutions
shall be required in order to verify that the procedure established
in
Communication “A” 4589 for earnings distribution has been properly
applied.
|
d)
|
As
stated in the Offering Memorandum of the Bank's outstanding corporate
bonds, the Bank may pay dividends or other distributions only with
ordinary shares.
|
NOTE 15 | — CONSOLIDAR A.F.J.P S.A. |
NOTE 16 |
—
OTHER REQUIERED DISCLOSURES IN ACCORDANCE WITH THE SEC’S
REQUIREMENTS
|
16.1.
|
Transactions
with related parties
|
Balance
Sheet
|
Memorandum
Accounts (1)
|
||||||||||||||||||
Assets
|
Liabilities
|
||||||||||||||||||
Company
|
2006
|
2005
|
2006
|
2005
|
2006
|
2005
|
|||||||||||||
BBVA
S.A.
|
2,351
|
6,237
|
—
|
22,985
|
1,276
|
31,951
|
|||||||||||||
Consolidar
A.R.T. S.A.
|
151
|
180
|
20,235
|
27,999
|
344,167
|
243,912
|
|||||||||||||
BBVA
Consolidar Seguros S.A.
|
4
|
188
|
3,801
|
2,381
|
58,031
|
41,662
|
|||||||||||||
Rombo
Cía. Financiera S.A.
|
130,643
|
72,323
|
1,014
|
721
|
30,000
|
—
|
|||||||||||||
Inversora
Otar S.A.
|
3,093
|
—
|
372
|
890
|
439,602
|
336,391
|
|||||||||||||
Consolidar
Salud S.A.
|
108
|
—
|
—
|
840
|
—
|
—
|
|||||||||||||
Consolidar
Comercializadora S.A.
|
—
|
—
|
291
|
—
|
—
|
—
|
(1)
|
Includes
items in safekeeping, Credit lines granted (unused portion) covered
by
debtor classification regulations and Guaranties given covered by
debtor
classification regulations.
|
Net
Income (2)
|
||||||||||
2006
|
2005
|
2004
|
||||||||
Income
|
62,807
|
22,659
|
2,404
|
|||||||
Expenses
|
(9,117
|
)
|
(3,871
|
)
|
(9,743
|
)
|
||||
53,690
|
18,788
|
(7,339
|
)
|
|||||||
(2) |
All
the concerted operations have been contracted according with market’s
conditions.
|
|
December
31,
|
||||||
|
2006
|
2005
|
|||||
Peso
and Foreign Currency Balances
|
1,813,695
|
1,449,832
|
a)
|
Included
in “Cash and Due from Banks” there are: (1) interest-bearing deposits with
the BCRA totaling 1,748,436 and 919,932 as of December 31, 2006 and
2005,
respectively; (2) interest-bearing deposits in foreign banks totaling
18,014 and 5,742 as of December 31, 2006 and 2005, respectively,
and (3)
interest-bearing deposits in local banks totaling 408 and 2,513 as
of
December 31, 2006 and 2005,
respectively.
|
b)
|
Included
in “Loans” there are: overnight foreign bank interest-bearing deposits
totaling 9,839 as of December 31, 2005. As of December 31, 2006 the
Bank
did not register amounts for this kind of
operations.
|
c)
|
Included
in “Other Receivables from Financial Transactions” there are other
interest-bearing deposits with the BCRA totaling 99,242 and 107,198
as of
December 31, 2006 and 2005,
respectively.
|
|
December
31,
|
||||||||||||||||||||||||
2006
|
2005
|
2006
|
2005
|
2006
(*)
|
2005
|
2006
|
2005
|
||||||||||||||||||
Book
value
|
Gross
unrealized
gains |
Gross
unrealized
losses
|
Market
value
|
||||||||||||||||||||||
Argentine
Bonds
|
515,296
|
435,104
|
—
|
—
|
61,852
|
170,271
|
453,444
|
264,833
|
|||||||||||||||||
Total
|
515,296
|
435,104
|
—
|
—
|
61,852
|
170,271
|
453,444
|
264,833
|
December
31, 2006
|
|||||||
Book
value
|
Market
value
|
||||||
Due
in one year or less
|
18,102
|
18,102
|
|||||
Due
after one year through five years
|
90,520
|
90,520
|
|||||
Due
after five years through ten years
|
—
|
—
|
|||||
Thereafter
|
406,674
|
344,822
|
|||||
Total
|
515,296
|
453,444
|
|||||
16.5.
|
Loans
|
December
31,
|
|||||||
2006
|
2005
|
||||||
Government
sector
|
2,887,276
|
4,623,626
|
|||||
Financial
sector
|
436,126
|
142,307
|
|||||
Non-financial
private sector and residents abroad
|
6,377,968
|
3,900,517
|
|||||
—Commercial
portfolio
|
|||||||
With
self-liquidating preferred guarantees
|
52,128
|
92,092
|
|||||
With
other preferred guarantees
|
42,395
|
44,036
|
|||||
Without
preferred guarantees
|
4,155,131
|
2,293,984
|
|||||
—Consumer
portfolio
|
|||||||
With
self-liquidating preferred guarantees
|
8,682
|
6,968
|
|||||
With
other preferred guarantees
|
474,633
|
439,198
|
|||||
Without
preferred guarantees
|
1,644,999
|
1,024,239
|
|||||
Less:
Difference arising from purchase of portfolio
|
(90
|
)
|
(89
|
)
|
|||
Less:
Allowances for loan losses
|
(167,097
|
)
|
(184,885
|
)
|
|||
Total
|
9,534,183
|
8,481,476
|
Industry
Segment
|
Percentage
of
Total Loans |
Governmental
Services
|
29.76%
|
Other
|
19.55%
|
Consumer
|
17.75%
|
Food
Stuff
|
6.44%
|
Oil
and Carbon
|
4.62%
|
Financial
Sector
|
4.50%
|
Mining
Products
|
4.35%
|
Retail
Trade
|
2.68%
|
Beverage
|
1.95%
|
Agricultural
Livestock
|
1.91%
|
Wholesale
Trade
|
1.77%
|
Transportation
Material
|
1.40%
|
Industrial
Metals
|
1.33%
|
Other
Manufacturing
|
1.03%
|
Services
|
0.11%
|
Construction
|
0.85%
|
Total
|
100.00%
|
|
2006
|
Balance
at the beginning of the fiscal year
|
83,653
|
New
Loans
|
75,995
|
Repayments
|
(4,435)
|
Balance
at the end of the fiscal year
|
155,213
|
16.6.
|
Allowance
for loan losses
|
|
Year
ended
December 31, 2006 |
Year
ended
December 31, 2005 |
Year
ended
December 31, 2004 |
|||||||
Balance
at the beginning of the fiscal year
|
184,885
|
202,693
|
459,573
|
|||||||
Provision
for loan losses
|
69,799
|
114,220
|
62,509
|
|||||||
Write-offs
|
(87,587
|
)
|
(132,028
|
)
|
(319,389
|
)
|
||||
Balance
at the end of the fiscal year
|
167,097
|
184,885
|
202,693
|
16.7.
|
Other
receivables from financial
transactions
|
|
December
31,
|
||||||
Description
|
2006
|
2005
|
|||||
With
self-liquidating guarantees
|
1,397
|
—
|
|||||
With
preferred guarantees
|
423,032
|
286,185
|
|||||
Without
preferred guarantees
|
494,131
|
548,363
|
|||||
Allowances
|
(1,028
|
)
|
(3,098
|
)
|
|||
|
917,532
|
831,450
|
December
31,
|
|||||||
Description
|
2006
|
2005
|
|||||
Forward
Purchases and Sales
|
|||||||
“Notional”
amount of non-deliverable forward purchases
|
387,777
|
46,982
|
|||||
Contra
debit derivatives accounts
|
417,777
|
46,982
|
|||||
Interest
rate SWAP
|
30,000
|
—
|
|||||
“Notional”
amount of non-deliverable forward sales
|
283,243
|
93,161
|
|||||
Contra
debit derivatives accounts
|
283,243
|
93,161
|
|||||
Non-deliverable
forward transactions balances pending
settlement-Receivables
|
1,052
|
281
|
|||||
Non-deliverable
forward transactions balances pending settlement-Liability
|
206
|
150
|
|||||
Forward
sales of government securities
|
|||||||
Forward
sales of government securities (1)
|
—
|
2
|
|||||
Forward
sales of securities
|
|||||||
Debtors
under forward sales of securities
|
41
|
6
|
|||||
Forward
sales of foreign exchange
|
|||||||
Debtors
under forward sales of foreign exchange
|
61
|
—
|
|||||
Forward
purchases of securities
|
|||||||
Creditors
under other forward purchases
|
41
|
—
|
|||||
Repurchase
and reverse repurchase agreements with government
securities
|
|||||||
Forward
purchases of government securities under repurchase agreements
with
holdings
available for sale
|
307,900
|
—
|
|||||
Creditors
under government securities repurchase agreements with
holdings
available
for sale
|
277,035
|
—
|
|||||
Debtors
under reverse repurchase agreements
|
—
|
99,762
|
|||||
Forward
sales under reverse repurchase agreements
|
—
|
110,680
|
(1)
|
These
accounts include the contract amount of the transactions expressed
in
thousand of Pesos using the closing exchange rate or quoted market
value.
|
December
31,
|
||||
Description
|
2006
|
2005
|
||
Spot
transactions with pending settlement
|
||||
Unsettled
spot securities purchases
|
20,233
|
16,960
|
||
Creditors
under unsettled spot securities purchases
|
20,263
|
18,169
|
||
Debtors
under unsettled spot securities sales
|
20,907
|
38,006
|
||
Unsettled
spot securities sales
|
19,513
|
9,311
|
||
Unsettled
spot foreign exchange purchases
|
6,075
|
—
|
||
Creditors
under unsettled spot foreign exchange purchases
|
5,913
|
3,025
|
||
Debtors
under unsettled spot foreign exchange sales
|
5,972
|
1,286
|
||
Unsettled
spot foreign exchange sales
|
6,000
|
3,169
|
||
Unsettled
spot Government securities purchases
|
116
|
18,770
|
||
Creditors
under unsettled spot Government securities purchases
|
116
|
4,971
|
||
Debtors
under unsettled spot Government securities sales
|
18,554
|
19,060
|
||
Unsettled
spot Government securities sales
|
8,751
|
42,565
|
16.8.
|
Premises
and equipment and other
assets
|
16.8.1.
|
Premises
and equipment
|
Estimated
useful
|
December
31,
|
|||||||||
Description
|
life
(years)
|
2006
|
2005
|
|||||||
Land
and buildings
|
50
|
465,568
|
448,338
|
|||||||
Furniture
and facilities
|
10
|
67,589
|
81,441
|
|||||||
Machinery
and equipment
|
5
|
82,163
|
64,742
|
|||||||
Vehicles
|
5
|
4,276
|
3,921
|
|||||||
Accumulated
depreciation
|
(221,700
|
)
|
(222,645
|
)
|
||||||
Total
|
397,896
|
375,797
|
16.8.2.
|
Other
assets
|
Estimated
useful
|
December
31,
|
|||||||||
Description
|
life
(years)
|
2006
|
2005
|
|||||||
Rent
assets
|
50
|
6,771
|
9,230
|
|||||||
Works
of art
|
—
|
983
|
983
|
|||||||
Assets
acquired for secure loans
|
50
|
6,283
|
—
|
|||||||
Stationery
and office supplies
|
—
|
2,380
|
1,610
|
|||||||
Land
and buildings not affected by banking activities
|
50
|
17,942
|
50,398
|
|||||||
Vehicles
to deliver for leasing
|
852
|
1,025
|
||||||||
Total
|
35,211
|
63,246
|
16.9.
|
Intangible
assets
|
|
December
31,
|
||||||
Description
|
2006
|
2005
|
|||||
Goodwill
for the purchase of Corp Banca S.A., net of accumulated amortization
of
47,628 at December 31, 2006
|
18,831
|
25,459
|
Estimated
useful
|
December
31,
|
|||||||||
Description
|
life
(years)
|
2006
|
2005
|
|||||||
Start-up
expenses of Consolidar AFJP
|
11
|
—
|
29,687
|
|||||||
Organization
and development non - deductible expenses (1)
|
5
|
343,450
|
565,352
|
|||||||
Computer
software acquisition expenses and computer programs development
expenses
|
5
|
7,942
|
6,087
|
|||||||
Other
intangible assets
|
5
|
37,240
|
28,751
|
|||||||
Total
|
388,632
|
629,877
|
(1)
|
See
Note 3.4.13.
|
|
2006
|
|||
Balance
at January 1, 2006
|
629,877
|
|||
—Additions
|
53,284
|
|||
—Decreases
|
9,250
|
|||
—Period
amortization
|
285,279
|
|||
Balance
at December 31, 2006
|
388,632
|
16.10.
|
Other
liabilities from financial transactions - Argentine Central
Bank
|
|
December
31,
|
||||||
Description
|
2006
|
2005
|
|||||
Short-term
liabilities
|
1,761
|
22,143
|
|||||
Long-term
liabilities
|
—
|
78,602
|
|||||
Total
|
1,761
|
100,745
|
16.11.
|
Other
liabilities from financial transactions - Banks and international
institutions and financing received from financial
institutions
|
|
December
31,
|
||||||
Description
|
2006
|
2005
|
|||||
Short-term
liabilities
|
|||||||
Other
lines of credit from local and foreign banks
|
418,234
|
249,626
|
|||||
Total
short-term liabilities
|
418,234
|
249,626
|
|||||
Long-term
liabilities
|
|||||||
Other
lines of credit from local and foreign banks
|
—
|
53,636
|
|||||
Total
long-term liabilities
|
—
|
53,636
|
|||||
Total
|
418,234
|
303,262
|
16.12.
|
Balances
in foreign currency
|
|
December
31,
|
||||||
Description
|
2006
|
2005
|
|||||
Assets
|
|||||||
Cash
and due from Banks
|
973,034
|
1,027,697
|
|||||
Government
and private securities
|
182,292
|
265,080
|
|||||
Loans
|
1,455,091
|
641,172
|
|||||
Other
receivables from financial transactions
|
85,069
|
226,298
|
|||||
Assets
subject to financial leasing
|
69
|
78
|
|||||
Investments
in other companies
|
810
|
809
|
|||||
Other
receivables
|
17,266
|
13,569
|
|||||
Suspense
items
|
103
|
97
|
|||||
Total
|
2,713,734
|
2,174,800
|
|||||
Liabilities
|
|||||||
Deposits
|
1,817,414
|
1,285,196
|
|||||
Other
liabilities from financial transactions
|
784,915
|
802,090
|
|||||
Other
liabilities
|
12,862
|
15,072
|
|||||
Suspense
items
|
66
|
6
|
|||||
Total
|
2,615,257
|
2,102,364
|
16.13.
|
Minimum
capital requirements
|
|
Required
Minimum
Capital
|
Computable
Capital
|
Excess
of actual
Minimum
Capital
over
Required
Minimum
Capital (1)
|
|||||||
December
31, 2006
|
1,004,554
|
2,089,708
|
1,085,154
|
|||||||
December
31, 2005
|
868,512
|
1,889,893
|
1,021,381
|
(1)
|
The
Bank must maintain a surplus of minimum paid-in
capitals amounting to at least Ps.46,559 and Ps.38,440 as at
December 31, 2006 and 2005, respectively, equivalent to 0.25% of
the
amount of values under custody for securities representing
investments from pension funds, as well as in connection
with its function as registrar of mortgage-backed bonds, invested in
national public securities and other destinations authorized by the
BCRA and guaranteed in favour of the said
Entity.
|
16.14.
|
Earnings
per share
|
16.15.
|
Employee
benefit plans
|
16.16.
|
Business
segment consolidated
information
|
|
As
of December 31, 2006
|
|||||||||||||||||||||||||||
Banking
Financial
|
||||||||||||||||||||||||||||
BBVA
Banco
Francés
S.A.(3)
|
PSA
Finance S.A.
|
Total
|
Pension
Fund
Manager
|
Insurance
|
Eliminations
|
Total
|
||||||||||||||||||||||
Total
assets
|
16,294,763
|
109,151
|
16,403,914
|
373,844
|
2,204,731
|
(147,860 | ) |
18,834,629
|
||||||||||||||||||||
Financial
income
|
1,514,699
|
7,030
|
1,521,729
|
44,237
|
384,026
|
(13,588 | ) |
1,936,404
|
||||||||||||||||||||
Service
charge income and other income
|
653,149
|
11,249
|
664,398
|
377,019
|
410,135
|
(221,237 | ) |
1,230,315
|
||||||||||||||||||||
Total
income (1)
|
2,167,848
|
18,279
|
2,186,127
|
421,256
|
794,161
|
(234,825 | ) |
3,166,719
|
||||||||||||||||||||
Financial
expenses
|
(581,603 | ) | (95 | ) | (581,698 | ) | (234 | ) | (1 | ) |
13,588
|
(568,345 | ) | |||||||||||||||
Allowances
for doubtful loans
|
(69,411 | ) | (714 | ) | (70,125 | ) |
—
|
—
|
—
|
(70,125 | ) | |||||||||||||||||
Operating
expenses
|
(711,655 | ) | (3,320 | ) | (714,975 | ) | (171,273 | ) | (43,750 | ) |
2,594
|
(927,404 | ) | |||||||||||||||
Other
expenses
|
(707,660 | ) | (4,219 | ) | (711,879 | ) | (249,662 | ) | (638,894 | ) |
218,643
|
(1,381,792 | ) | |||||||||||||||
Total
expenses (2)
|
(2,070,329 | ) | (8,348 | ) | (2,078,677 | ) | (421,169 | ) | (682,645 | ) |
234,825
|
(2,947,666 | ) | |||||||||||||||
Gain/(Loss)
on minority interest in subsidiaries
|
52
|
(1,505 | ) | (1,453 | ) | (40 | ) | (37,523 | ) |
—
|
(39,016 | ) | ||||||||||||||||
Total
net income
|
97,571
|
8,426
|
105,997
|
47
|
73,993
|
—
|
180,037
|
(1)
|
Includes:
financial income, service charge income and other
income.
|
(2)
|
Includes:
financial expenses, provision for loan losses, service charge expenses,
operating expenses, other expenses and income
tax.
|
(3)
|
Includes:
Atuel Fideicomisos S.A. and Francés Valores Sociedad de Bolsa
S.A.
|
As
of December 31, 2005
|
||||||||||||||||||||||||||||||||
Banking
Financial
|
||||||||||||||||||||||||||||||||
BBVA
Banco
Francés
S.A.(3)
|
Credilogros
Cía.
Financiera
S.A.
|
PSA
Finance
S.A.
|
Total
|
Pension
Fund
Manager
|
Insurance
|
Eliminations
|
Total
|
|||||||||||||||||||||||||
Total
assets
|
13,839,847
|
86,734
|
64,107
|
13,990,688
|
346,858
|
1,787,736
|
(141,534 | ) |
15,983,748
|
|||||||||||||||||||||||
Financial
income
|
1,412,036
|
27,469
|
3,093
|
1,442,598
|
40,067
|
183,627
|
(12,140 | ) |
1,654,152
|
|||||||||||||||||||||||
Service
charge income and other income
|
757,620
|
16,267
|
5,965
|
779,852
|
294,071
|
299,133
|
(168,038 | ) |
1,205,018
|
|||||||||||||||||||||||
Total
income (1)
|
2,169,656
|
43,736
|
9,058
|
2,222,450
|
334,138
|
482,760
|
(180,178 | ) |
2,859,170
|
|||||||||||||||||||||||
Financial
expenses
|
(617,332 | ) | (3,551 | ) | (79 | ) | (620,962 | ) | (124 | ) | (3 | ) |
12,140
|
(608,949 | ) | |||||||||||||||||
Allowances
for doubtful loans
|
(109,265 | ) | (4,970 | ) | (393 | ) | (114,628 | ) |
—
|
—
|
—
|
(114,628 | ) | |||||||||||||||||||
Operating
expenses
|
(564,742 | ) | (24,751 | ) | (2,550 | ) | (592,043 | ) | (141,146 | ) | (44,302 | ) |
1,656
|
(775,835 | ) | |||||||||||||||||
Other
expenses
|
(791,684 | ) | (3,703 | ) | (1,314 | ) | (796,701 | ) | (175,995 | ) | (419,089 | ) |
166,382
|
(1,225,403 | ) | |||||||||||||||||
Total
expenses (2)
|
(2,083,023 | ) | (36,975 | ) | (4,336 | ) | (2,124,334 | ) | (317,265 | ) | (463,394 | ) |
180,178
|
(2,724,815 | ) | |||||||||||||||||
Loss
on minority interest in subsidiaries
|
(1 | ) | (1,850 | ) | (999 | ) | (2,850 | ) | (7,843 | ) | (6,458 | ) |
—
|
(17,151 | ) | |||||||||||||||||
Total
net income
|
86,632
|
4,911
|
3,723
|
95,266
|
9,030
|
12,908
|
—
|
117,204
|
(1)
|
Includes:
financial income, service charge income and other
income.
|
(2)
|
Includes:
financial expenses, provision for loan losses, service charge expenses,
operating expenses, other expenses and income
tax.
|
(3)
|
Includes:
Atuel Fideicomisos S.A. and Francés Valores Sociedad de Bolsa
S.A.
|
As
of December 31, 2004
|
||||||||||||||||||||||||||||||||
Banking
Financial
|
||||||||||||||||||||||||||||||||
BBVA
Banco
Francés
S.A. (3)
|
Credilogros
Cía.
Financiera
S.A.
|
PSA
Finance
S.A.
|
Total
|
Pension
Fund
Manager
|
Insurance
|
Eliminations
|
Total
|
|||||||||||||||||||||||||
Total
assets
|
14,275,608
|
98,603
|
29,119
|
14,403,330
|
311,420
|
1,545,654
|
(218,732 | ) |
16,041,672
|
|||||||||||||||||||||||
Financial
income
|
951,586
|
23,915
|
1,251
|
976,752
|
35,812
|
148,700
|
(6,439 | ) |
1,154,825
|
|||||||||||||||||||||||
Service
charge income and other income
|
675,257
|
14,191
|
1,340
|
690,788
|
245,905
|
514,454
|
(136,887 | ) |
1,314,260
|
|||||||||||||||||||||||
Total
income (1)
|
1,626,843
|
38,106
|
2,591
|
1,667,540
|
281,717
|
663,154
|
(143,326 | ) |
2,469,085
|
|||||||||||||||||||||||
Financial
expenses
|
(461,014 | ) | (1,727 | ) | (64 | ) | (462,805 | ) | (1,642 | ) | (352 | ) |
6,439
|
(458,360 | ) | |||||||||||||||||
Allowances
for doubtful loans
|
(49,464 | ) | (2,260 | ) | (278 | ) | (52,002 | ) |
—
|
—
|
—
|
(52,002 | ) | |||||||||||||||||||
Operating
expenses
|
(474,568 | ) | (26,907 | ) | (2,018 | ) | (503,493 | ) | (133,296 | ) | (44,143 | ) |
1,103
|
(679,829 | ) | |||||||||||||||||
Other
expenses
|
(719,669 | ) | (5,495 | ) | (383 | ) | (725,547 | ) | (141,392 | ) | (588,884 | ) |
135,784
|
(1,320,039 | ) | |||||||||||||||||
Total
expenses (2)
|
(1,704,715 | ) | (36,389 | ) | (2,743 | ) | (1,743,847 | ) | (276,330 | ) | (633,379 | ) |
143,326
|
(2,510,230 | ) | |||||||||||||||||
(Loss)/Gain
on minority interest in subsidiaries
|
(7 | ) | (779 | ) |
505
|
(281 | ) | (2,484 | ) | (10,136 | ) |
—
|
(12,901 | ) | ||||||||||||||||||
Total
net income / (loss)
|
(77,879 | ) |
938
|
353
|
(76,588 | ) |
2,903
|
19,639
|
—
|
(54,046 | ) |
(1)
|
Includes:
financial income, service charge income and other
income.
|
(2)
|
Includes:
financial expenses, provision for loan losses, service charge expenses,
operating expenses, other expenses and income
tax.
|
(3)
|
Includes:
Atuel Fideicomisos S.A. and Francés Valores Sociedad de Bolsa
S.A.
|
16.17.
|
Consolidated
income statements and balance
sheets
|
Year
ended December 31,
|
||||||||||||
2006
|
2005
|
2004
|
||||||||||
Consolidated
Income Statements
|
||||||||||||
Interest
and fees on loans
|
1,132,766
|
1,254,007
|
887,998
|
|||||||||
Dividends
on investment securities
|
—
|
—
|
214
|
|||||||||
Interest
on investment securities
|
43,684
|
3,586
|
3,513
|
|||||||||
Trading
account interest
|
580,901
|
243,751
|
180,161
|
|||||||||
Total
interest income
|
1,757,351
|
1,501,344
|
1,071,886
|
|||||||||
Interest
on deposits
|
471,763
|
365,106
|
316,082
|
|||||||||
Interest
on short-tern borrowings
|
50,036
|
210,300
|
92,835
|
|||||||||
Interest
on long-term debt
|
265
|
891
|
3,856
|
|||||||||
Total
interest expense
|
522,064
|
576,297
|
412,773
|
|||||||||
Net
interest income
|
1,235,287
|
925,047
|
659,113
|
|||||||||
Provision
for loan losses
|
70,125
|
114,628
|
52,002
|
|||||||||
Net
interest gain after provision for loan losses
|
1,165,162
|
810,419
|
607,111
|
|||||||||
Service
charges on deposit accounts
|
165,776
|
143,933
|
125,877
|
|||||||||
Credit
card service charges and fees
|
127,481
|
102,050
|
66,837
|
|||||||||
Fees
on securities activities
|
12,600
|
15,598
|
9,152
|
|||||||||
Other
commissions
|
640,702
|
539,462
|
380,792
|
|||||||||
Income
from investment in equity securities
|
19,941
|
2,870
|
20,029
|
|||||||||
Foreign
currency gains net
|
78,655
|
72,407
|
76,943
|
|||||||||
Other
|
363,386
|
480,349
|
716,890
|
|||||||||
Total
other income
|
1,408,541
|
1,356,669
|
1,396,520
|
|||||||||
Consolidated
Expenses Statements
|
||||||||||||
Commissions
|
76,538
|
52,821
|
33,176
|
|||||||||
Personnel
expenses
|
485,013
|
397,693
|
329,811
|
|||||||||
Fees
and external administrative services
|
50,887
|
39,837
|
39,056
|
|||||||||
Depreciation
of bank premises and equipment and other fixed assets
|
32,653
|
30,592
|
36,827
|
|||||||||
Business
travel and development
|
16,628
|
12,961
|
10,981
|
|||||||||
Utilities
|
21,714
|
21,440
|
20,569
|
|||||||||
Advertising
and promotion
|
46,050
|
39,757
|
27,266
|
|||||||||
Contributions
and taxes
|
118,847
|
92,564
|
95,064
|
|||||||||
Maintenance
and repairs
|
30,712
|
26,157
|
23,656
|
|||||||||
Amortization
of Goodwill
|
6,629
|
6,629
|
6,768
|
|||||||||
Provision
for loss contingencies
|
312,485
|
422,924
|
351,542
|
|||||||||
Loss
on disposal of fixed and other assets
|
7,657
|
26,402
|
12,432
|
|||||||||
Minority
interest in subsidiaries—loss
|
39,016
|
17,151
|
12,901
|
|||||||||
Other
|
1,077,157
|
844,244
|
980,529
|
|||||||||
Total
other expenses
|
2,321,986
|
2,031,172
|
1,980,578
|
|||||||||
Income
before income tax and tax on minimum presume income
expenses
|
251,717
|
135,916
|
23,053
|
|||||||||
Income
tax and tax on minimum presume income expenses (see Note 5.1. and
5.2.)
|
71,680
|
18,712
|
77,099
|
|||||||||
Net
gain / (loss)
|
180,037
|
117,204
|
(54,046 | ) | ||||||||
Net
gain / (loss) per Ordinary Share
|
0.38
|
0.25
|
(0.14 | ) |
December
31,
|
||||||||
2006
|
2005
|
|||||||
Assets
|
||||||||
Cash
and due from banks
|
791,626
|
683,267
|
||||||
Interest
bearing deposits in other banks
|
1,866,100
|
1,035,385
|
||||||
Forward
purchases and under reverse repurchase agreements
|
307,900
|
—
|
||||||
Unsettled
spot purchases
|
26,424
|
35,730
|
||||||
Debtors
under forward sales and under reverse repurchase
agreements
|
102
|
99,768
|
||||||
Debtors
under unsettled spot sales
|
45,433
|
58,352
|
||||||
Trading
account assets
|
3,856,736
|
3,069,207
|
||||||
Investments
securities
|
569,734
|
485,401
|
||||||
Loans
|
9,701,280
|
8,666,361
|
||||||
Allowance
for loan losses
|
(167,097 | ) | (184,885 | ) | ||||
Premises
and equipment
|
397,896
|
375,797
|
||||||
Intangible
assets
|
407,463
|
655,336
|
||||||
Other
assets
|
1,031,032
|
1,004,029
|
||||||
Total
assets
|
18,834,629
|
15,983,748
|
||||||
Liabilities
and Stockholders’ Equity
|
||||||||
Interest
bearing deposits
|
10,207,814
|
8,616,985
|
||||||
Non
interest bearing deposits
|
2,297,942
|
1,996,101
|
||||||
Creditors
under forward purchases and under reverse repurchase
agreements
|
277,282
|
150
|
||||||
Creditors
under unsettled spot purchases
|
26,292
|
26,165
|
||||||
Forward
sales and under repurchase agreements
|
—
|
110,682
|
||||||
Unsettled
spot sales
|
34,264
|
55,045
|
||||||
Other
short-term borrowings
|
959,491
|
674,997
|
||||||
Other
liabilities
|
2,179,957
|
1,872,169
|
||||||
Long-term
debt
|
186,678
|
377,756
|
||||||
Commitments
and contingent liabilities
|
493,848
|
263,191
|
||||||
Minority
Interest in subsidiaries
|
216,477
|
188,960
|
||||||
Common
Stock
|
471,361
|
471,361
|
||||||
Non-capitalized
contributions
|
175,132
|
175,132
|
||||||
Other
stockholders’ equity
|
1,308,091
|
1,155,054
|
||||||
Total
liabilities and stockholders’ equity
|
18,834,629
|
15,983,748
|
16.18.
|
Off-Balance
sheet financial instrument
|
a)
|
Derivatives
|
§
|
Options:
they confer the right on the buyer, but no obligation, to receive
or pay a
specific quantity of an asset or financial instrument for specified
price
at or before a specified date. Options may be exchange traded or
Over the
Counter (OTC) agreements. The Bank principally buys and sells interest
options on an index. As December 31, 2006, 2005 and 2004 the Bank
does not
have outstanding options.
|
§
|
Futures
and Forwards: they are agreements to deliver or take delivery of
a
specified rate, price or index applied against the underlying asset
or
financial instrument, at a specific date. Futures are exchange traded
at
standardized amounts of the underlying asset or financial instrument.
Forward contracts are OTC agreements and are principally dealt in
by the
Bank in securities/foreign exchange as forward
agreements.
|
§
|
Swaps:
they are agreements between two parts with the intention to exchange
cash
flows and risks at a specific date and for a period in the future.
Swaps
may be exchange traded or OTC
agreements.
|
December
31, 2006
|
December
31, 2005
|
|||||||||||||||||||||||
Hedging
|
Trading
|
Total
|
Hedging
|
Trading
|
Total
|
|||||||||||||||||||
Forward
sales and purchases of foreign exchange
|
671,020
|
—
|
671,020
|
138,041
|
—
|
138,041
|
||||||||||||||||||
Forward
sales and purchases of government and private securities
|
—
|
—
|
—
|
—
|
2
|
2
|
||||||||||||||||||
Other
forward sales and purchases
|
—
|
—
|
—
|
—
|
2,102
|
2,102
|
||||||||||||||||||
Interest
rate SWAP
|
—
|
30,000
|
30,000
|
—
|
—
|
—
|
b)
|
Credit-related
financial instruments
|
December
31,
|
||||||||
2006
|
2005
|
|||||||
Credit
lines granted (unused portion) cover by debtor
classification
|
13,695
|
3,827
|
||||||
Foreign
trade acceptances and standby letters of credit
|
100,577
|
80,571
|
||||||
Guarantees
granted
|
178,079
|
171,084
|
||||||
_____________ | ||||||||
(*) A significant portion of the Bank’s guarantees as of December 31, 2006 and 2005, have a remaining maturity of less than one year. |
December
31,
|
||||||||
2006
|
2005
|
|||||||
Self-liquidating
counter guarantees
|
12,000
|
13,112
|
||||||
Preferred
counter guarantees
|
5,579
|
74
|
December
31,
|
||||||||
2006
|
2005
|
|||||||
Checks
drawn on the Bank pending clearing
|
157,409
|
105,251
|
||||||
Checks
drawn against other Banks
|
228,192
|
134,517
|
||||||
Drafts
and notes for collection
|
512,838
|
528,885
|
c)
|
Trust
activities
|
NOTE 17 |
—
SUMMARY OF SIGNIFICANT DIFFERENCES BETWEEN THE ARGENTINE CENTRAL
BANK
RULES AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING
PRINCIPLES
|
17.1.
|
Income
taxes
|
Year
ended December 31,
|
||||||||||||
Description
|
2006
|
2005
|
2004
|
|||||||||
Statutory
income tax rate
|
35.00 | % | 35.00 | % | 35.00 | % | ||||||
Income
tax (benefit) provision computed at statutory rate
|
513,990
|
623,328
|
514,532
|
|||||||||
Tax
exempt income
|
(14,257 | ) | (494,422 | ) | (488,239 | ) | ||||||
Non-deductible
items
|
—
|
84,700
|
233,323
|
|||||||||
Other,
net
|
(11,391 | ) | (30,890 | ) |
22,006
|
|||||||
Income
tax computed in accordance with U.S. GAAP
|
487,822
|
182,716
|
281,622
|
|||||||||
Initial
adjustments to net deferred tax assets
|
(104,431 | ) | (77,258 | ) | (218,651 | ) | ||||||
Income
tax computed in accordance with BCRA rules
|
23,000
|
(242,000 | ) |
67,497
|
||||||||
Adjustments to reconcile income tax (benefit) to U.S. GAAP |
360,391
|
347,458
|
(4,526
|
) | ||||||||
(Recover)
of allowances on deferred tax assets
|
(325,939 | ) | (366,801 | ) |
(509,158
|
) |
§
|
The
effect of the conversion into pesos and the adjustment through the
CER,
over the difference between book value under U.S. GAAP and face value
of
Federal Government loans carried by the Bank and domestic subsidiaries
which were not deductible from income tax (84,505, 251,375 and 233,323
for
the years ended December 31, 2006, 2005 and 2004,
respectively).
|
§
|
The
allowances booked under BCRA rules (84,700 for the fiscal year ended
December 31, 2005).
|
December
31,
|
||||||||||||
Description
|
2006
|
2005
|
2004
|
|||||||||
Deferred
tax assets:
|
||||||||||||
Government
and private securities valuation
|
89,485
|
—
|
34,437
|
|||||||||
Loans
|
—
|
219,506
|
163,042
|
|||||||||
Loan
origination and issuance credit card’s fees
|
14,733
|
9,241
|
7,379
|
|||||||||
Property,
equipment and miscellaneous assets
|
11,575
|
5,962
|
—
|
|||||||||
Intangible
assets
|
—
|
—
|
167
|
|||||||||
Other
liabilities
|
26,151
|
29,589
|
35,093
|
|||||||||
Allowance
for loss contingencies
|
563,672
|
614,194
|
561,120
|
|||||||||
Reserves
from insurance activities
|
80,515
|
72,549
|
68,070
|
|||||||||
Net
operating loss
|
562,780
|
766,673
|
914,384
|
|||||||||
Other
|
12,834
|
575
|
2,811
|
|||||||||
1,361,745
|
1,718,289
|
1,786,503
|
||||||||||
Deferred
tax liabilities:
|
||||||||||||
Government
and private securities valuation
|
—
|
(14,135 | ) |
—
|
||||||||
Loans
|
(43,251 | ) |
—
|
—
|
||||||||
Foreign
exchange difference
|
(10,839 | ) | (1,087 | ) | (10,134 | ) | ||||||
Property,
equipment and miscellaneous assets
|
—
|
—
|
(2,120 | ) | ||||||||
Intangible
assets
|
(982 | ) | (599 | ) |
—
|
|||||||
(55,072 | ) | (15,821 | ) | (12,254 | ) | |||||||
Net
deferred tax asset under U.S. GAAP
|
1,306,673
|
1,702,468
|
1,774,249
|
|||||||||
Net
deferred tax asset in accordance with BCRA’s rules
|
337,000
|
360,000
|
118,000
|
|||||||||
Adjustment
to reconcile net deferred tax assets / liabilities to U.S.
GAAP
|
969,673
|
1,342,468
|
1,656,249
|
|||||||||
Allowances
on deferred tax assets in accordance with BCRA’s rules
|
(337,000 | ) | (360,000 | ) | (118,000 | ) | ||||||
Adjustment
to reconcile Allowances on deferred tax assets to U.S.
GAAP
|
(479,934 | ) | (805,873 | ) | (1,172,674 | ) |
§
|
Government
and private securities: as mentioned in Note 17.5. all unlisted government
and private securities and those with non-representative valuation,
were
adjusted at fair value, thus causing a increase/decrease in their
accounting value, which does not comply with the conditions required
for
them to be tax-deductible in the fiscal years ended December 31,
2006,
2005 and 2004.
|
§
|
Loans:
as regards deduction of uncollectible accounts, effective Argentine
tax
rules require the existence of certain uncollectibility indicators
defined
in the Income Tax Law (i.e.: to begin court proceedings or bankruptcy
adjudication), whereas under accounting criteria uncollectibility
charges
are recorded on the basis of assessing the debtor’s payment capacity. This
difference principally relates to the accounting registration of
the
impairment that
|
§
|
Loan
origination and issuance credit card’s fees: deferred assets result from
differences in the U.S. GAAP accounting and tax criteria used to
assess
expense accruals of them (Note
17.2.).
|
§
|
Property,
Equipment and miscellaneous assets: under tax criteria, PP&E
depreciation is determined on values equivalent to the acquisition
cost of
the respective PP&E items and by the full-year-of-addition
depreciation method. Under accounting criteria, depreciation is determined
on values equivalent to the acquisition cost restated by inflation
as
explained in Note 3.2. and on the basis of the months of useful life
elapsed from addition date through valuation
date.
|
§
|
Intangible
assets: under tax criteria, the amortization of these assets is determined
by the full-year-of-addition method, whereas accounting criteria
contemplate the calculation of amortization on the basis of the months
of
useful life elapsed from addition through valuation
date.
|
§
|
Other
liabilities: deferred assets/liabilities result from differences
in the
accounting and tax criteria used to assess expense accruals such
as
accrual for dismissals calculation.
|
§
|
Allowance
for loss contingencies: as regards deduction of loss contingencies,
effective Argentine tax rules require the existence of certain indicators
defined in the Income Tax Law (i.e. final judgment), whereas under
accounting criteria, loss contingencies charges are recorded on the
basis
of the estimated amounts necessary to meet contingencies of probable
occurrence.
|
§
|
Pension
and retirement obligations’ activities: deferred assets result from
differences in the U.S. GAAP accounting and tax criteria applying
to
certain allowances related with Consolidar A.F.J.P.’s activities (see Note
17.15.1.)
|
Amount
|
|
2007
|
158,843
|
2008
|
316,543
|
2009
|
87,394
|
Amount
|
|
2011
|
17,115
|
2012
|
24,519
|
2013
|
23,997
|
2014
|
24,462
|
2015
|
28,653
|
2016
|
34,000
|
17.2.
|
Loan
origination and issuance credit card’s
fees
|
17.3.
|
Intangible
assets
|
17.4.
|
Loan
loss reserve
|
|
Fiscal
year ended December 31,
|
|||||||||
|
2006
|
2005
|
2004
|
|||||||
—Total
amount of loans considered as impaired
|
129,953
|
990,854
|
1,068,695
|
|||||||
Amount
of loans considered as impaired for which there is a related allowance
for
credit losses
|
129,953
|
990,854
|
1,068,695
|
|||||||
Amount
of loans considered as impaired for which there is no related allowance
for credit losses
|
—
|
—
|
—
|
|||||||
—Reserves
allocated to impaired loans
|
105,847
|
297,667
|
363,685
|
|||||||
—Average
balance of impaired loans during the fiscal year
|
279,495
|
1,033,864
|
1,201,999
|
|
Year
ended
December
31, 2006
|
Year
ended
December
31, 2005
|
Year
ended
December
31, 2004
|
|||||||
Balance
at the beginning of the fiscal year
|
284,327
|
340,402
|
799,011
|
|||||||
Provision
for loan losses
|
49,124
|
102,251
|
24,908
|
|||||||
Charge-offs
|
(236,599
|
)
|
(158,326
|
)
|
(483,517
|
)
|
||||
Balance
at the end of the fiscal year
|
96,852
|
284,327
|
340,402
|
17.4.1.
|
Interest
recognition—non-accrual
loans
|
17.4.2.
|
Impaired
loans—Non-Financial Private Sector and residents
abroad
|
17.4.3.
|
Federal
Government Secured
Loans
|
17.4.4.
|
Loans—Non-Financial
Provincial Governmental Sector and other governmental sector
agencies
|
17.5.
|
Government
and private securities
valuation
|
17.5.1.
|
Government
securities—Available for
sale
|
December
31,
|
|||||||
2006
|
2005
|
||||||
Amortized
cost
|
954,929
|
330,316
|
|||||
Gross
Unrealized Gain
|
25,245
|
(10,194
|
)
|
||||
Fair
Value
|
980,174
|
320,122
|
|||||
Number
of Positions
|
3
|
3
|
17.5.2.
|
Government
and private securities—Trading
Account
|
17.6.
|
Gain
contingencies
|
17.7.
|
Investment
in other companies
|
17.8.
|
Foreign
currency
translation
|
17.9.
|
Vacation
expense
|
17.10.
|
Items
in process of
collection
|
17.11.
|
Forward
and unsettled spot
transactions
|
17.12.
|
Technical
Valuation - Inflation
adjustments
|
17.13.
|
Acceptances
|
17.14.
|
Variable
- income
investments
|
17.15.
|
Provisions
and technical commitments related to insurance
activities
|
17.15.1.
|
Provision
related to insurance
activities
|
17.15.2.
|
Technical
Commitments
|
17.16.
|
Fair Value
of Financial
Investments
|
§ |
Listed-Investment
accounts: fair value for these securities is based upon quoted
market
prices (if available) at December 31, 2006 and
2005
|
§ |
Unlisted
government securities: fair value for these securities was taken
to be
equal to the present value of future cash flows discounted at the
average
year-end market interest rates for securities of similar interest
rate,
credit risk and maturity.
|
§ |
Forward
purchases of Government securities under repurchase agreements with
holdings in investment accounts: fair value for these receivables
were
based upon quoted market prices (if available) at December 31, 2006
and
2005 of the securities to be received after the fiscal
year-end.
|
§ |
Unlisted
corporate bonds: fair value for these securities was taken to be
equal to
the present value of future cash flows discounted at the average
year-end
market interest rates for securities of similar interest rate, credit
risk
and maturity.
|
December
31,
|
||||||||||||||
|
2006
|
2005
|
||||||||||||
|
Carrying
Amount
|
Estimated
Fair
Value
|
Carrying
Amount
|
Estimated
Fair
Value
|
||||||||||
Financial
assets
|
||||||||||||||
Cash
and due from banks
|
2,558,484
|
2,558,484
|
1,611,506
|
1,611,506
|
||||||||||
Government
and private securities (1)
|
4,372,032
|
4,230,294
|
3,504,311
|
3,309,544
|
||||||||||
Loans
(2)
|
9,534,183
|
9,300,353
|
8,481,476
|
8,349,742
|
||||||||||
Other
receivables from financial transactions
|
917,532
|
917,532
|
831,450
|
831,450
|
||||||||||
Assets
subject to financial leasing
|
235,188
|
235,188
|
130,165
|
130,165
|
||||||||||
Investments
in other companies
|
54,438
|
54,438
|
50,297
|
50,297
|
||||||||||
|
17,671,857
|
17,296,289
|
14,609,205
|
14,282,704
|
||||||||||
Financial
liabilities
|
||||||||||||||
Deposits
|
12,505,756
|
12,505,756
|
10,613,086
|
10,613,086
|
||||||||||
Other
liabilities from financial transactions
|
1,484,007
|
1,484,085
|
1,244,795
|
1,244,569
|
||||||||||
13,989,763
|
13,989,841
|
11,857,881
|
11,857,655
|
(1) |
Includes
the effect described in Note 17.5.
|
(2) |
Includes
the effects described in Notes 17.4.2., 17.4.3. and
17.4.4.
|
17.17.
|
Goodwill
|
§ |
On
May 4, 1998, the General and Special Stockholder’s Meeting approved (to be
effective on April 30, 1998) the reversal of the shares issuance
premium
in the amount of 428,661 related to the capital increase with
face value
25,000 thousand paid in on December 19, 1997, and bearing up
to 428,661 of
the Business Goodwill from the acquisition of 71.754% of the
capital stock
of Banco de Crédito Argentino S.A. The mentioned reversal is not allowed
in accordance with US. GAAP. Under US. GAAP, the Bank should
recognize the
issuance premium under “Issuance premiums” and capitalize the related
amount under Intangible
Assets.
|
§ |
On
May 13, 1999, BBVA (majority owner of BF) acquired CB and Atuel
Fideicomisos S.A. and on September, 13, 1999, BBVA sold its interests
in
both companies to BF. For the difference between the definitive price
of
the transaction and the incorporation value of both companies, the
Bank
recognized goodwill and amortized it in proportion to the months
of
estimated useful life (120-month period). Under U.S. GAAP, the Bank
would
be required to account for the acquisition of the mentioned companies
at
BBVA’s book balance. Had U.S. GAAP been applied, the Bank’s assets would
have increased by 35,866, 29,236 and 22,607 at December 31, 2006,
2005 and
2004, respectively. Additionally, the income would have increased
by
6,630, 6,629 and 6,630 for the years ended December 31, 2006, 2005
and
2004, respectively.
|
§ |
SFAS
No. 142 requires, effective January 1, 2002, that goodwill is no
longer
amortized, but is subject to impairment test annually or more frequently
if events or changes in circumstances indicate that the asset may
be
impaired. In 2001 the Bank had recognized an impairment loss and
wrote off
the entire balance of the U.S. GAAP goodwill. Had U.S. GAAP been
applied,
the Bank’s assets would have decreased by 309,577 as of December 31, 2006,
2005 and 2004, respectively.
|
17.18.
|
Transfers
and servicing of financial Assets and Extinguishment of
Liabilities
|
17.19
|
Earnings
Per
Share
|
17.20
|
Reporting
on Comprehensive Income
(loss)
|
17.21
|
Accounting
for Derivative Instruments and Hedging
Activities
|
17.22
|
Foreign
exchange
difference
|
17.23
|
Allowance
for other
contingencies
|
17.24
|
Set
forth below are the significant adjustments to consolidated
net income and
consolidated stockholders’ equity which would have been required if U.S.
GAAP had been applied instead of Argentine Central Bank’s
rules:
|
Consolidated
Net Income
Years ended December 31, |
|||||||||||||
Ref.
|
2006
|
2005
|
2004
|
||||||||||
Net
income / (loss) as stated
|
180,037
|
117,204
|
(54,046
|
)
|
|||||||||
Deferred
taxes
|
17.1
|
(360,391
|
)
|
(347,458
|
)
|
4,526
|
|||||||
Allowances
on deferred tax assets
|
17.1
|
325,939
|
366,801
|
509,158
|
|||||||||
Tax
on minimum presumed income
|
17.1
|
—
|
(1,003
|
)
|
62,642
|
||||||||
Loan
origination and issuance credit card’s fees
|
17.2
|
(15,587
|
)
|
(2,270
|
)
|
(9,698
|
)
|
||||||
Intangible
assets
|
17.3
|
5,518
|
(472
|
)
|
2,443
|
||||||||
Non
Financial Private Sector and residents abroad loans
|
17.4.2
|
20,676
|
11,968
|
48,431
|
|||||||||
Federal
Government secured loans
|
17.4.3
|
350,286
|
912,300
|
183,692
|
|||||||||
Provincial
Government loans
|
17.4.4
|
149,012
|
26,298
|
153,298
|
|||||||||
Government
securities
|
17.5
|
55,710
|
395,752
|
531,630
|
|||||||||
Gain
contingencies
|
17.6
|
222,647
|
152,755
|
72,268
|
|||||||||
Investment
in other companies
|
17.7
|
(3,068
|
)
|
(5,924
|
)
|
(4,271
|
)
|
||||||
Foreign
currency translation to reporting currency (Argentine
Peso)
|
17.8
|
—
|
—
|
143,371
|
|||||||||
Vacation
expense
|
17.9
|
(3,565
|
)
|
(8,756
|
)
|
(2,487
|
)
|
||||||
Provision
related to insurance activities
|
17.15.1
|
(21,155
|
)
|
(36,109
|
)
|
(48,260
|
)
|
||||||
Technical
Commitments
|
17.15.2
|
20,036
|
46,897
|
4,574
|
|||||||||
Goodwill
Amortization
|
17.17
|
6,630
|
6,629
|
6,630
|
|||||||||
Gain
on extinguishment of liabilities
|
17.18
|
—
|
—
|
3,618
|
|||||||||
Unrealized
valuation difference
|
17.22
|
—
|
—
|
(200,000
|
)
|
||||||||
Allowance
for other contingencies
|
17.23
|
44,818
|
—
|
—
|
|||||||||
Approximated
net income in accordance with U.S. GAAP
|
977,543
|
1,634,612
|
1,407,519
|
||||||||||
Approximated
net income per share in accordance with U.S. GAAP (1)
|
2.07
|
3.47
|
3.65
|
||||||||||
Weighted
average number of shares Outstanding (in thousands)
|
471,631
|
471,361
|
385,334
|
(1) |
See
Note 17.19.
|
Consolidated
Stockholders' Equity
Years ended December 31, |
|||||||||||||
Ref.
|
2006
|
2005
|
2004
|
Stockholders’
equity as stated
|
1,954,584
|
1,801,547
|
1,684,343
|
||||||||||
Deferred
taxes
|
17.1
|
969,673
|
1,342,468
|
1,656,249
|
|||||||||
Allowances
on deferred tax assets
|
17.1
|
(479,934
|
)
|
(805,873
|
)
|
(1,172,674
|
)
|
||||||
Tax
on minimum presumed income
|
17.1
|
—
|
—
|
1,003
|
|||||||||
Loan
origination and issuance credit card’s fees
|
17.2
|
(38,638
|
)
|
(23,051
|
)
|
(20,781
|
)
|
||||||
Intangible
assets
|
17.3
|
(11,372
|
)
|
(16,890
|
)
|
(16,418
|
)
|
||||||
Non
Financial Private Sector and residents abroad loans
|
17.4.2
|
70,245
|
49,569
|
37,601
|
|||||||||
Federal
Government secured loans
|
17.4.3
|
(559,214
|
)
|
(909,500
|
)
|
(1,821,800
|
)
|
||||||
Provincial
Government loans
|
17.4.4
|
—
|
(149,012
|
)
|
(175,310
|
)
|
|||||||
Government
securities
|
17.5
|
(77,328
|
)
|
(168,477
|
)
|
(468,009
|
)
|
||||||
Gain
contingencies
|
17.6
|
(363,887
|
)
|
(586,534
|
)
|
(739,289
|
)
|
||||||
Investment
in other companies
|
17.7
|
(21,834
|
)
|
(18,766
|
)
|
(12,842
|
)
|
||||||
Vacation
expense
|
17.9
|
(48,394
|
)
|
(44,829
|
)
|
(36,073
|
)
|
||||||
Provision
related to insurance activities
|
17.15.1
|
(230,194
|
)
|
(209,039
|
)
|
(172,930
|
)
|
||||||
Technical
Commitments
|
17.15.2
|
30,150
|
10,114
|
(36,783
|
)
|
||||||||
Goodwill
|
17.17
|
(18,829
|
)
|
(25,459
|
)
|
(32,088
|
)
|
||||||
Allowance
for other contingencies
|
17.23
|
44,818
|
—
|
—
|
|||||||||
Approximated
consolidated Stockholders’ (deficit) equity in accordance with U.S.
GAAP
|
1,219,846
|
246,268
|
(1,325,801
|
)
|
For
the fiscal years ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
Assets
|
19,230,659
|
15,421,682
|
14,069,122
|
|||||||
Liabilities
|
18,010,813
|
15,175,414
|
15,394,923
|
17.25. |
The
following presents the consolidated statement of operations adjusted
to
reflect the application of U.S. GAAP using the Argentine Central
Bank
format:
|
Consolidated
Net Income
|
||||||||||
Year
ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
Financial
income
|
2,028,677
|
2,113,219
|
1,640,306
|
|||||||
Financial
expenses
|
(568,345
|
)
|
(608,949
|
)
|
(458,360
|
)
|
||||
Allowances
for doubtful loans
|
(49,450
|
)
|
(102,659
|
)
|
(3,571
|
)
|
||||
Service
charge income
|
900,764
|
721,510
|
574,606
|
|||||||
Service
charge expenses
|
(110,199
|
)
|
(77,764
|
)
|
(54,829
|
)
|
||||
Operating
expenses
|
(920,608
|
)
|
(781,067
|
)
|
(670,064
|
)
|
||||
Net
Monetary loss
|
—
|
—
|
—
|
|||||||
Other
income
|
1,129,778
|
1,187,397
|
1,640,769
|
|||||||
Other
expenses
|
(942,073
|
)
|
(670,751
|
)
|
(1,198,765
|
)
|
||||
Income
before income tax
|
1,468,544
|
1,780,936
|
1,470,092
|
|||||||
Income
tax
|
(455,071
|
)
|
(124,170
|
)
|
(72,573
|
)
|
||||
Net
income
|
1,013,473
|
1,656,766
|
1,397,519
|
|||||||
(Loss)
/ Gain on minority interest in subsidiaries
|
(35,930
|
)
|
(22,154
|
)
|
10,000
|
|||||
Total
consolidated income
|
977,543
|
1,634,612
|
1,407,519
|
|||||||
Comprehensive
income
|
||||||||||
Net
income in accordance with U.S. GAAP
|
977,543
|
1,634,612
|
1,407,519
|
|||||||
Other
comprehensive income / (loss), net of tax (1)
(2)
|
23,035
|
(62,543
|
)
|
(87,454
|
)
|
|||||
Comprehensive
net income in accordance with U.S. GAAP
|
1,000,578
|
1,572,069
|
1,320,065
|
(1) |
See
Note 17.26.
|
(2) |
The
minority interest represents the effect of the U.S. GAAP adjustments
in
the Group's consolidated subsidiaries (see Note
2.1.).
|
17.26. |
Set
forth below are the related tax effects allocated to each component
of
other comprehensive income (loss) and the accumulated other comprehensive
income (loss) balances, as of December 31, 2006, 2005 and
2004:
|
Year
ended
December
31, 2006
|
Year
ended
December
31, 2005
|
Year
ended
December
31, 2004
|
|||||||||||||||
Before
Tax
Amount
|
Tax
(Expense)
or
Benefit
|
Net
of Tax Amount
|
Before
Tax
Amount
|
Tax
(Expense)
or
Benefit
|
Net
of Tax Amount
|
Before
Tax
Amount
|
Tax
(Expense)
or
Benefit
|
Net
of Tax Amount
|
|||||||||
Foreign
currency translation adjustments
|
—
|
—
|
—
|
—
|
—
|
—
|
(143,371)
|
—
|
(143,371)
|
||||||||
Unrealized
gains/(losses) on securities
|
35,439
|
(12,404)
|
23,035
|
(96,220)
|
33,677
|
(62,543)
|
86,026
|
(30,109)
|
55,917
|
||||||||
Other
comprehensive income gain/(loss)
|
35,439
|
(12,404)
|
23,035
|
(96,220)
|
33,677
|
(62,543)
|
(57,345)
|
(30,109)
|
(87,454)
|
Year
ended
December
31, 2006
|
Year
ended
December
31, 2005
|
Year
ended
December
31, 2004
|
|||||||||||||||
Foreign
Currency
Items
|
Unrealized
Gains/
(Losses)
on securities
|
Accumulated
Other Comprehensive Income/(Loss)
|
Foreign
Currency
Items
|
Unrealized
Gains/
(Losses)
on securities
|
Accumulated
Other Comprehensive Income/(Loss)
|
Foreign
Currency
Items
|
Unrealized
Gains/
(Losses)
on securities
|
Accumulated
Other Comprehensive Income/(Loss)
|
|||||||||
Beginning
balance
|
—
|
(6,626)
|
(6,626)
|
—
|
55,917
|
55,917
|
143,371
|
—
|
143,371
|
||||||||
Current-fiscal
year change
|
—
|
23,035
|
23,035
|
—
|
(62,543)
|
(62,543)
|
(143,371)
|
55,917
|
(87,454)
|
||||||||
Ending
balance
|
—
|
16,409
|
16,409
|
—
|
(6,626)
|
(6,626)
|
—
|
55,917
|
55,917
|
||||||||
17.27. |
Cash
flows information
|
December
31, 2006
|
December
31, 2005
|
December
31, 2004
|
|||||||||
Cash
and cash equivalents at the end of the fiscal year
|
2,558,484
|
1,611,506
|
1,666,617
|
||||||||
Cash
and cash equivalents at beginning of the fiscal year
|
1,611,506
|
1,666,617
|
1,639,154
|
||||||||
Increase
/ (Decrease) in cash and cash equivalents
|
946,978
|
(55,111
|
)
|
27,463
|
|||||||
CAUSES
OF CHANGES IN CASH AND CASH EQUIVALENTS
|
|||||||||||
Cash
provided by operating activities
|
1,102,921
|
467,876
|
723,645
|
||||||||
Cash
used in investing activities
|
2,183,393
|
534,780
|
824,038
|
||||||||
Cash
provided by financing activities
|
2,039,496
|
23,619
|
136,218
|
||||||||
Effect
of exchange rate changes on cash
|
12,046
|
11,826
|
8,362
|
||||||||
Increase
/ (Decrease) in cash and cash equivalents
|
946,978
|
(55,111
|
)
|
27,463
|
Year
ended December 31,
|
|||||||||||
2006
|
2005
|
2004
|
|||||||||
Net
gain / (loss) for the fiscal year
|
180,037
|
117,204
|
(54,046
|
)
|
|||||||
Adjustments
to reconcile net income to net cash from operating
activities:
|
|||||||||||
Amortization
and depreciation
|
333,045
|
312,298
|
298,328
|
||||||||
Provision
for loan losses and special reserves, net of reversals
|
350,185
|
513,160
|
170,561
|
||||||||
Net
income from government and private securities
|
(559,877
|
)
|
(209,438
|
)
|
(182,183
|
)
|
|||||
Foreign
exchange differences
|
(78,666
|
)
|
(72,942
|
)
|
(76,943
|
)
|
|||||
Minority
interests in subsidiaries
|
39,016
|
17,151
|
12,901
|
||||||||
Deferred
taxes
|
116,016
|
50,917
|
120,150
|
||||||||
Equity
(loss) of unconsolidated subsidiaries
|
(19,941
|
)
|
(2,870
|
)
|
(20,029
|
)
|
|||||
Net
(increase) / decrease in interest receivable and payable and other
accrued
income and expenses
|
743,106
|
(257,604
|
)
|
454,996
|
|||||||
Net
cash provided by operating activities
|
1,102,921
|
467,876
|
723,645
|
17.28. |
New
accounting pronouncements (U.S.
GAAP)
|
§ |
Permits
fair value remeasurement for any hybrid financial instrument that
contains
an embedded derivative that otherwise would require
bifurcation.
|
§ |
Clarifies
which interest-only strips and principal-only strips are not subject
to
the requirements of Statement No.
133.
|
§ |
Establishes
a requirement to evaluate interests in securitized financial assets
to
identify interests that are freestanding derivatives or that are
hybrid
financial instruments that contain an embedded derivative requiring
bifurcation.
|
§ |
Clarifies
that concentrations of credit risk in the form of subordination are
not
embedded derivatives.
|
§ |
Amends
Statement No. 140 to eliminate the prohibition on a qualifying
special-purpose entity from holding a derivative financial instrument
that
pertains to a beneficial interest other than another derivative financial
instrument.
|
§ |
Requires
an entity to recognize a servicing asset or servicing liability each
time
it undertakes an obligation to service a financial asset by entering
into
a servicing contract in any of the following situations:
|
- |
A
transfer of the servicer’s financial assets that meets the requirements
for sale accounting.
|
- |
A
transfer of the servicer’s financial assets to a qualifying
special-purpose entity in a guaranteed mortgage securitization in
which
the transferor retains all of the resulting securities and classifies
them
as either available-for-sale securities or trading securities in
accordance with FASB Statement No. 115, “Accounting for Certain
Investments in Debt and Equity
Securities”.
|
- |
An
acquisition or assumption of an obligation to service a financial
asset
that does not relate to financial assets of the servicer or its
consolidated affiliates.
|
§ |
Requires
all separately recognized servicing assets and servicing liabilities
to be
initially measured at fair value, if
practicable.
|
§ |
Permits
an entity to choose either of the following subsequent measurement
methods
for each class of separately recognized servicing assets and servicing
liabilities:
|
- |
Amortization
method—Amortize
servicing assets or servicing liabilities in proportion to and over
the
period of estimated net servicing income or net servicing loss and
assess
servicing assets or servicing liabilities for impairment or increased
obligation based on fair value at each reporting date.
|
- |
Fair
value measurement method—Measure
servicing assets or servicing liabilities at fair value at each reporting
date and report changes in fair value in earnings in the period in
which
the changes occur.
|
§ |
At
its initial adoption, permits a one-time reclassification of
available-for-sale securities to trading securities by entities with
recognized servicing rights, without calling into question the treatment
of other available-for-sale securities under Statement 115, provided
that
the available-for-sale securities are identified in some manner as
offsetting the entity’s exposure to changes in fair value of servicing
assets or servicing liabilities that a servicer elects to subsequently
measure at fair value.
|
§ |
Requires
separate presentation of servicing assets and servicing liabilities
subsequently measured at fair value in the statement of financial
position
and additional disclosures for all separately recognized servicing
assets
and servicing liabilities.
|
d) |
Employers’
Accounting for Defined Benefit Pension and Other
Postretirement
|
e) |
The
Fair Value Option for Financial Assets and Financial
Liabilities
|
1. |
May
be applied instrument by instrument, with a few exceptions, such
as
investments otherwise accounted for by the equity
method.
|
2. |
Is
irrevocable (unless a new election date occurs).
|
3. |
Is
applied only to entire instruments and not to portions of
instruments.
|
f) |
Considering
the Effects of Prior Year Misstatements when Quantifying Misstatements
in
Current
Year Financial Statements
|
g) |
Accounting
for Uncertainty in Income Taxes
|
NOTE 18 |
—
SUBSEQUENT EVENTS
|
a) |
On
February 15, 2007 the Board of Directors resolved to propose to the
shareholders the distribution of dividends in cash for a total amount
of
Ps.90,000
to be distributed in proportion to the nominal holding of each shareholder
equivalent to Ps.0.19093 per share.
|
b) |
On
November 2006, the Bank submitted to the Trust Fund for Reconstruction
of
Companies (FFRE) a proposal consisting in a settlement and total
payment
for the purpose of fully and totally repaying the amounts owed by
the Bank
to the Trust Fund (see Note 12.2.), offering to pay for all purposes
the
total amount of Ps.84,337. Since January 22, 2007 the Trust Fund
has
requested several extensions, the last until April 15, 2007 to serve
notice as to whether the proposal submitted has been accepted or
rejected.
On April 13, 2007 the FFRE accepted the proposal of cancellation
above
mentioned for an amount of Ps.88,462, for which the Bank proceeded
to
transfer the funds corresponding to cancel fully
and totally the debt on April 20, 2007. The difference of Ps.4,125
was
absorbed with allowances recorded to such purpose at the end of the
prior
year.
|
c) |
On
March 7, 2007, the Argentine Congress promulgated the Law No. 26,222
that
modified partially the Argentine social security system, regulated
by Law
No. 24,241. On the other hand, Decree No. 313/07 regulates certain
aspects
modified by Law No. 26,222, including the following: i) the possibility
for the affiliates currently covered by the individually funded scheme
to
choose to adhere to the pay-as-you-go scheme managed by the Argentine
State. This option will be available from April 12, 2007 to December
31,
2007 and will be effective from January 1, 2008. The above mentioned
option will be able to be exercised every 5 years; ii) workers who
within
90 days from the commencement of their labour relation have not chosen
a
social security regime shall be presumed to have chosen the pay-as-you-go
system managed by the Argentine State, effective from April 1, 2007;
iii)
men older than 55 and women older than 50, who are currently affiliated
to
the capitalization system and whose balances in the individually
funded
account do not exceed Ps.20,000 shall be transferred to the pay-as-you-go
system unless they expressly state their intent to remain affiliated
to
the capitalization system. In case of not choosing for last this
one, the
individually funded account must be transfer to the pay-as-you-go
system
within 90 days from April 12, 2007 or from the date when the people
including in this items reach the mentioned age; iv) a limitation
upon the
fees charged by the Pension Fund Managers (AFJP) for managing their
affiliates’ contributions to 1% of the basis on which they were
calculated. Nevertheless until December 31, 2007 the AFJP will be
able to
add the cost of the assurance for invalid and death; v) an increase
in the
maximum amount used to calculate social security contributions from
Ps.4,800 to Ps.6,000; vi) the establishment of a fund made up by
mutual
contributions with the resources held by the retirement and pension
fund
in order to ensure full financing of any temporary retirement benefits
in
the event of disability and supplementary and re-composition capitals
corresponding to the capitalization regime, from February 1, 2008.
To the
date of issue of the present Consolidated Financial Statements, the
Executive Power do not issue the corresponding regulation that fix
the
mechanistic to determinates its calculate and for the eventual
compensations of results that should be effected between different
AFJP,
in order to achieve the uniformity of the cost for all the included
populations, as well as the controls that should realize respect
of the
management in the administration of each one of the contributions’ funds;
vii) an amount ranging from 5% to 20% of the assets held in the retirement
and pension funds are to be invested in short- and long-term production
or
infrastructure projects; and viii) To unify in 11% the personal
contribution of the workers in relation of dependence from January
1,
2008, and for those that join to the system from May 28, 2007, anyone
was
the regime for the one that they choose. However, to the date of
the
present financial statements the National Government has not issued
the
totality of the respective regulatory aspects and therefore at this
date it is not possible to quantify the effects of the changes.
The Company’s Board of Directors is analyzing the effects of the
above-mentioned legal changes and making adjustments to Consolidar
AFJP
SA’s operations to accommodate them with the new legal framework.
Likewise, provided that the mentioned reform has a significant effect
on
the social security system and it will involve a material change
in the
business of Consolidar Cía. de Seguros de Vida
|
d) |
On
February 9, 2007, the Bank’s Board of Directors decided to repay in
advance the total amount of Series 15 Corporate Bonds and delegated
on the
Bank’s officials the powers to determine the manner, terms and conditions
for said repayment (see Note 12). Such payment was made effective
on March
15, 2007, by a total amount of US$121,504,050.
|
Exhibit
Number
|
Description
|
1.1
|
Amended
and Restated By-Laws (Estatutos) of BBVA Banco Francés S.A. (*)
|
1.2
|
English
translation of the Amended and Restated By-Laws (Estatutos) of BBVA
Banco
Francés S.A. (*)
|
8.1
|
Subsidiaries
of the Company
|
12.1
|
Section
302 Certification of Chief Executive Officer
|
12.2
|
Section
302 Certification of Chief Financial Officer
|
13.1
|
Section
906 Certification
|
(*)
|
Incorporated
by reference to the BBVA Banco Francés Annual Report on Form 20-F for the
year ended December 31, 2005 filed with the Securities and Exchange
Commission on June 29, 2006.
|