Obbligazione Banco Hipoteca S.A. 9.75% ( USP1330HBF03 ) in USD

Emittente Banco Hipoteca S.A.
Prezzo di mercato 100 USD  ▲ 
Paese  Argentina
Codice isin  USP1330HBF03 ( in USD )
Tasso d'interesse 9.75% per anno ( pagato 2 volte l'anno)
Scadenza 29/11/2020 - Obbligazione è scaduto



Prospetto opuscolo dell'obbligazione Banco Hipotecario S.A USP1330HBF03 in USD 9.75%, scaduta


Importo minimo 50 000 USD
Importo totale 280 701 000 USD
Cusip P1330HBF0
Standard & Poor's ( S&P ) rating CCC+ ( Substantial risks )
Moody's rating N/A
Descrizione dettagliata Banco Hipotecario S.A. è una banca uruguaiana specializzata in finanziamenti ipotecari e altri servizi finanziari.

The Obbligazione issued by Banco Hipoteca S.A. ( Argentina ) , in USD, with the ISIN code USP1330HBF03, pays a coupon of 9.75% per year.
The coupons are paid 2 times per year and the Obbligazione maturity is 29/11/2020
The Obbligazione issued by Banco Hipoteca S.A. ( Argentina ) , in USD, with the ISIN code USP1330HBF03, was rated CCC+ ( Substantial risks ) by Standard & Poor's ( S&P ) credit rating agency.







Supplement to Offering Memorandum dated December 1, 2015
US$200,000,000
BANCO HIPOTECARIO S.A.
9.750% Notes Due 2020, Series No. 29
__________________
This Pricing Supplement relates to a series of notes to be issued under our Global Note Program for the issuance of notes in one or
more series up to an aggregate principal amount at any time outstanding of US$800,000,000, which we refer to as our "Global Note Program".
This Pricing Supplement is supplementary to, and should be read in conjunction with, the Offering Memorandum dated November 24, 2015
relating to the Global Note Program, which we refer to as the "Offering Memorandum". To the extent that information contained in this Pricing
Supplement is not consistent with the Offering Memorandum, this Pricing Supplement will be deemed to supersede the Offering Memorandum
with respect to the Notes offered hereby.
We are offering US$200,000,000 aggregate principal amount of our 9.750% Notes Due 2020, Series No. 29, which we refer to as our
"Notes". The Notes will mature on November 30, 2020. The Notes will accrue interest at a fixed rate of 9.750% per year, payable semi-annually
in arrears on May 30 and November 30 of each year, commencing on May 30, 2016. Payment of principal, interest, additional amounts and any
other amounts in respect of the Notes will be made in U.S. dollars.
We may redeem the Notes, in whole or in part, at any time by paying the greater of 100% of the outstanding principal amount of the
Notes and the applicable "make whole" premium amount plus any accrued and unpaid interest and any additional amounts. In the event of certain
changes in Argentine withholding taxes, we may redeem the Notes, in whole but not in part, at any time at a price equal to 100% of the
outstanding principal amount plus accrued and unpaid interest and any additional amounts.
The Notes will constitute our unsecured and unsubordinated obligations and will rank at all times pari passu in right of payment with
our other unsecured and unsubordinated indebtedness (other than obligations preferred by statute or by operation of law), including deposits.
An investment in the Notes involves significant risks. See "Risk Factors" commencing on page 13 of the Offering
Memorandum for a description of certain material risks related to an investment in the Notes.
We have applied to have the Notes listed on the Official List of the Luxembourg Stock Exchange and to trading on the Euro MTF
Market. We have also applied to have the Notes listed and admitted for trading on the Mercado de Valores de Buenos Aires S.A. ("MVBA") on
the Mercado Abierto Electrónico S.A. ("MAE").
The Notes will constitute non-convertible notes, or obligaciones negociables simples no convertibles en acciones under the Argentine
Negotiable Obligations Law No. 23,576, as amended (the "Negotiable Obligations Law"), will be issued and placed in accordance with such law,
Law No. 26,831 on Capital Markets (the "Capital Markets Law"), Decree No. 1023/2013 implementing the Capital Markets Law, Joint
Resolution Nos. 470.1738/2004, 500.2222/2007 and 521.2352/2007, as amended and supplemented, issued by the Comisión Nacional de Valores
(the "CNV") and the Argentine tax authority (the "AFIP"), which resolutions we refer to together as the "Joint Resolutions" and the rules of the
CNV (as approved by General Resolution No. 622/13, as amended and supplemented (collectively, the "CNV Rules"), and will have the benefits
provided thereby and will be subject to the procedural requirements therein set forth.
The Notes will not benefit from the Argentine deposit insurance system established pursuant to Argentine Law No. 24,485, as
amended, or the exclusive priority right granted to depositors pursuant to Article 49(d) and (e) of Argentine Law No. 21,526, as amended (the
"Financial Institutions Law"). The Notes will not be secured by any security interest or guarantee and will not be guaranteed by any other means
or by any other entity or person.
The public offering of Notes under the Global Note Program has been authorized by the CNV pursuant to Resolution No. 16,573
dated May 24, 2011. This authorization means only that the information requirements of the CNV have been satisfied. The CNV has not rendered
any opinion in respect of the accuracy of the information contained in this Pricing Supplement or in the Offering Memorandum.
The Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or any
state securities laws. The Notes may not be offered or sold within the U.S. or to U.S. persons, except to qualified institutional buyers in reliance
on the exemption from registration provided by Rule 144A under the Securities Act and to certain non-U.S. persons in offshore transactions in
reliance on Regulation S under the Securities Act. For a description of certain restrictions on resales and transfers see "Subscription and Sale" and
"Transfer Restrictions" in the Offering Memorandum.
This Pricing Supplement and the Offering Memorandum constitute a prospectus for purposes of part IV of the Luxembourg law on
prospectuses for securities dated July 10, 2015, as amended.
Price: 100.000%, plus accrued interest, if any, from November 30, 2015.
We expect that delivery of the Notes will be made to investors in book-entry form through the facilities of The Depository Trust
Company and its direct and indirect participants, including Clearstream Banking, société anonyme and Euroclear Bank S.A./N.V., on November
30, 2015.
Joint Book-Running Managers
BofA Merrill Lynch
Itaú BBA
December 1, 2015


Unless otherwise defined herein, capitalized terms used in this Pricing Supplement shall have the meanings
given to them in the Offering Memorandum. In this Pricing Supplement, unless the context requires otherwise,
references to "we", "our", or "us" mean Banco Hipotecario S.A. and its consolidated subsidiaries.
We have translated some of the peso amounts contained in this Pricing Supplement into U.S. dollars for
convenience purposes only. Unless otherwise specified, our assets and liabilities in foreign currency are valued at
the exchange rate as of each relevant date on period-end according to the Central Bank reference exchange rate for
U.S. dollar. The exchange rates used for purposes of translation of balances as of December 31, 2014 and June 30,
2015 were Ps.8.5520 = US$1.00 and Ps.9.0865 = US$1.00, respectively, in accordance with the Reference
Exchange Rate (Tipo de Cambio Referencia) published by the Central Bank (Banco Central de la República
Argentina) (the "Central Bank") as of such dates. The Federal Reserve Bank of New York does not report a noon
buying rate for pesos. The U.S. dollar equivalent information presented in this Pricing Supplement is provided solely
for the convenience of investors and should not be construed as implying that the peso amounts represent, or could
have been or could be converted into, U.S. dollars at such rates or at any other rate. See "Exchange Rates and
Exchange Controls" in the Offering Memorandum.
The information provided in this Pricing Supplement or in the Offering Memorandum that relates to
Argentina and its economy is based upon publicly available information, and neither we nor the initial purchasers
and the Argentine Placement Agent appointed in connection with the issuance of the Notes make any representation
or warranty with respect thereto. Argentina, and any governmental agency or political subdivision thereof, does not
in any way guarantee, and their credit does not otherwise back, our obligations in respect of the Notes.
You should rely only on the information contained in this Pricing Supplement and the Offering
Memorandum. Neither we, nor the Initial Purchasers or the Argentine Placement Agent, have authorized anyone to
provide you with information that is different from the information contained in this Pricing Supplement and the
Offering Memorandum. The information in this Pricing Supplement and the Offering Memorandum is accurate only
as of the date of this Pricing Supplement.
The offer of the Notes in Argentina shall be conducted by means of an offering that qualifies as a public
offering under Argentine law and the Rules of the CNV. In order to comply with those regulations, the placement of
the Notes in the Republic of Argentina will be done through a public auction (Subasta Pública) under the tender
module of the SIOPEL system (the "SIOPEL System") of the MAE, in accordance with applicable CNV tender
rules. See "Placement Efforts and Allocation Process."
In making your decision whether to invest in the Notes, you must rely on your own examination of us and
the terms of the offering, including the merits and risks involved. You should not construe the contents of this
Pricing Supplement or the Offering Memorandum as legal, business or tax advice. You should consult your own
attorney, business advisor or tax advisor.
The accuracy of any accounting, financial and economic information as well as any other information
provided in this Pricing Supplement and in the Offering Memorandum is the sole responsibility of our Board of
Directors, and our Supervisory Committee and our external auditors as to any aspect within their competence and to
the extent of their respective reports on the accompanying financial statements, and other responsible persons
referred to in Sections 119 and 120 of the Capital Markets Law. Our Board of Directors hereby expresses as a sworn
statement that this Pricing Supplement and the Offering Memorandum contains, as of the date of publication hereof,
accurate and sufficient information concerning any significant events that may affect our financial and economic
condition and any other information that must be made known to investors under applicable law.
The distribution of this Pricing Supplement and the Offering Memorandum, or any part thereof, and the
offering, sale and delivery of the Notes in certain jurisdictions may be restricted by law. We, the Initial Purchasers
and the Argentine Placement Agent require persons into whose possession this Pricing Supplement or the Offering
Memorandum come to become familiar with and to observe such restrictions. Neither this Pricing Supplement nor
the Offering Memorandum constitute an offer to sell or a solicitation of an offer to buy any Notes in any jurisdiction
to any person to whom it is unlawful to make the offer or solicitation, nor do this Pricing Supplement or the Offering
Memorandum constitute an invitation to subscribe for or purchase any Notes. For a description of restrictions on
offers, sales and deliveries of the Notes and on the distribution of this Pricing Supplement and the Offering
Memorandum, see "Transfer Restrictions" and "Subscription and Sale" in the Offering Memorandum and
"Subscription and Sale" in this Pricing Supplement.
S-i


TABLE OF CONTENTS
Pricing Supplement
Page
Page
Summary................................................................ S-1
Capitalization....................................................... S-14
Risk Factors ........................................................... S-8
Description of the Notes ...................................... S-15
Terms and Conditions of the Notes ....................... S-9
Placement Efforts and Allocation Process........... S-34
Use of Proceeds ................................................... S-13
Subscription and Sale .......................................... S-39
Offering Memorandum
Page
Page
Enforcement of Civil Liabilities ........................... iv
Management ......................................................... 134
Disclosure Regarding Forward-Looking Statements
Principal Shareholders.......................................... 152
.............................................................................. v
Related Party Transactions ................................... 154
Available Information........................................... vi
Argentine Banking System and Regulation.......... 157
Presentation of Financial and Other Information.. vii
Argentine Insurance System and Regulation........ 187
Summary............................................................... 1
Description of the Notes ....................................... 192
Risk Factors .......................................................... 13
Subscription and Sale ........................................... 208
Capitalization........................................................ 36
Transfer Restrictions............................................. 212
Use of Proceeds .................................................... 37
Description of Capital Stock................................. 214
Ratings.................................................................. 37
Taxation................................................................ 226
Exchange Rates and Exchange Controls .............. 38
Independent Accountants...................................... 241
Selected Financial and Other Information ............ 43
Legal Matters........................................................ 241
Management's Discussion and Analysis of Financial
General Information ............................................. 242
Condition and Results of Operations .................... 47
Form of Pricing Supplement................................. 243
Quantitative and Qualitative Disclosures About
Annex I ­ Summary of Significant Differences
Market Risk .......................................................... 80
Between Central Bank Accounting Rules and IFRS
The Argentine Banking Industry .......................... 82
.............................................................................. A-1
Business................................................................ 88
Index to the Financial Statements......................... F -1
Selected Statistical Information ............................ 107


SUMMARY
This summary highlights selected information regarding us. It does not contain all of the information that
an investor should consider before making an investment decision. For a complete understanding, you should read
carefully this Pricing Supplement, as well as the Offering Memorandum, including the information included in
"Risk Factors", "Management's Discussion and Analysis of Financial Condition and Results of Operations" and
"Business" of the Offering Memorandum and our financial statements.
Overview
Established in 1886 by the Argentine government and privatized in 1999, we are a full-service, inclusive
commercial bank, offering a wide range of banking products such as personal and corporate loans, deposits, credit
and debit cards, and activities and related financial services to individuals, small and medium-sized companies and
large corporations. All of our operations are located in Argentina, where we operate through a nationwide network
of 60 branches in all 23 provinces and the City of Buenos Aires, and 15 additional points of sale across Argentina.
We seek to distinguish ourselves from other Argentine banks through our focus on household and consumer loans,
which we believe offers attractive opportunities for continued growth.
We have historically been Argentina's leading mortgage lender and provider of mortgage-related insurance and
mortgage loan services, according to the Central Bank. As of December 31, 2014, we ranked 12th among Argentine
banks in terms of total shareholders' equity with Ps.4,396.9 million in total shareholders' equity and 13th in terms of
unconsolidated assets, with assets of Ps.29,336.1 million. Our unconsolidated net income for the years ended
December 31, 2012, 2013 and 2014 was Ps.343.6 million, Ps.421.0 million and Ps.550.0 million, respectively,
which represented a return on average equity of 10.3%, 11.5% and 13.3%, respectively, and a return on average
assets of 2.4%, 2.3% and 2.1%, respectively. As of June 30, 2015, we had Ps.4,700.7 million of total shareholders'
equity and assets of Ps.33,321.4 million. Our consolidated net income for the six months ended June 30, 2015 was
Ps.345.6 million.
In line with our strategy to continue diversifying our loan portfolio, our non-mortgage loans increased from
Ps.7,676.1 million as of December 31, 2012 to Ps.10,708.0 million as of December 31, 2013 to Ps.14,845.9 million
as of December 31, 2014, and Ps.16,551.9 million as of June 30, 2015, representing an increase in loans granted to
the non-financial private sector from 80.4% to 87.0%, from December 31, 2012 to June 30, 2015, respectively. Non-
performing loans represented 2.3% of our total loan portfolio as of December 31, 2012, 2.2% as of December 31,
2013, 2.3% as of December 31, 2014 and 2.3% as of June 30, 2015.
The table below shows our shareholders' equity, assets and loan portfolio (unconsolidated) ranking compared to
other Argentine commercial banks as of March 31, 2015.
Category
Amount as of March 31, 2015
Ranking as of March 31, 2015
(in millions of pesos)
Shareholders' equity....................................
Ps.
4,531.0
13th
Assets ...........................................................
Ps. 28,549.9
13th
Loan portfolio ..............................................
Ps. 16,212.7
13th
Source: Central Bank.
We have diversified our funding base, reduced our international financial borrowings and became one of the most
frequent domestic issuers of corporate debt in Argentina in terms of our total funding by developing our presence in
the domestic capital markets and increasing our deposit base. Our financial indebtedness as a percentage of our total
funding was 22.4% as of December 31, 2012, 22.4% as of December 31, 2013, 20.7% as of December 31, 2014 and
22.5% as of June 30, 2015.
Our subsidiaries include BACS, a bank specialized in investment banking, assets securitization and asset
management, BHN Vida S.A. ("BHN Vida"), a life insurance company, BHN Seguros Generales S.A. ("BHN
Seguros Generales"), a homeowners' insurance company, and Tarshop, a company focused on selling consumer
finance products and making cash advances to unbanked clients.
S-1


Our principal shareholders are the Argentine government and IRSA Inversiones y Representaciones Sociedad Anónima
("IRSA"), a leading real estate company in Argentina listed on the MVBA and on the New York Stock Exchange
("NYSE"). See "Principal Shareholders".
Our Strategy
In 2004, we started refocusing our business, by developing and releasing new products, modernizing our systems
and transforming our target markets. This has allowed us to evolve from a financial institution focused on mortgage
loans to a full-service inclusive commercial bank. We intend to continue to strengthen our position as a leading
universal bank in Argentina through the following strategic initiatives:

Continued Focus on Consumer Finance. We intend to continue to enhance the scope and quality of the
financial services provided to our individual clients and aim to acquire new clients. We intend to
continue to use direct marketing to acquire new clients and improving our database processing to
identify potential customers. We will also continue to develop e-channels in order to enhance our net
distribution capabilities, such as home and internet banking.

Further Development of Corporate Banking Business. We intend to complement our consumer finance
activities with a substantial commercial loan portfolio. We seek to identify growth-oriented companies
and to play an active role in their development by providing loans, cash management and other
commercial banking services and assisting them to gain access to capital markets. We intend to
increase our exposure to industry sectors that we believe have promising prospects for growth, such as
the oil and gas sector.

Universal Banking with Continuing Focus on Housing Solutions. We intend to maintain our leading
position in the mortgage loan market and to offer a wide range of products to meet our customers'
mortgage finance needs. In addition to traditional mortgage lending and securitization activities, we
intend to take advantage of new opportunities that arise in the mortgage finance sector such as acting
as trustee for the government-sponsored Argentine Bicentennial Credit Program for Family Housing
(Programa Crédito Argentino del Bicentenario para la Vivienda Única Familiar) program, which
contemplates the promotion of up to 200,000 mortgage loans to individuals and the construction of
new urban residential developments.

Diversifying Funding Sources. We intend to continue to improve our funding mix by diversifying our
short-term funding and to enhance long-term funding in order to align ourselves to the industry
standards and take advantage of capital markets opportunities. In this regard, we will continue to focus
on attracting demand deposits and issuing debt in capital markets.

Rigorous Risk Management. Rigorous credit and risk management policies are essential for the
successful implementation of our business strategy. We seek to continuously improve our risk
management processes and overall asset quality by adopting and adhering to international best
practices. We also intend to focus on monitoring the respective risks and profitability of our business
units (applying raroc models), selectively originating new loans, segmenting our retail banking
portfolio to identify client risks and price loans accordingly and maintaining a well-diversified
portfolio of corporate loans. We are also Basel II compliant, and are in the process of implementing
Basel III.

Enhance Profitability by Enhancing Customer Loyalty. We seek to expand and strengthen our
relationship with our existing customers which we believe represent a source of stable, recurring
revenues and opportunities for further growth. We seek to establish ourselves as our customers'
preferred provider of diversified financial services by cross-selling a wide range of services and multi-
product offerings and by focusing on opportunities to increase our income from fees.

Promotional Activities to Reinforce Brand. We intend to emphasize promotional activities and loyalty
campaigns to continue to foster our image as a contemporary, simple and inclusive bank. We will do
S-2


so by creative use of social media and marketing strategies designed to position us as a modern bank
and to appeal to a younger client base.

Growth Opportunities. In accordance with our internal growth plan, we expect to open at least six
additional branches during 2015 also started an internal reorganization, reducing employee headcount
in certain non-core activities, while increasing it in other core activities such as PROCREAR and our
main office. In addition, we continuously explore the possibility of selectively acquiring other banks or
financial institutions to improve our distribution channels, diversify our sources of funding and take
advantage of operational synergies, but we cannot assure you that we will be able to do so.
S-3


SUMMARY FINANCIAL AND OPERATING DATA
The following table presents our summary consolidated financial and other information as of and for the
years ended December 31, 2010, 2011, 2012, 2013 and 2014 and as of and for the six months ended June 30, 2014
and 2015. This information should be read in conjunction with, and is qualified in its entirety by reference to, our
financial statements included in the Offering Memorandum and the sections entitled "Management's Discussion and
Analysis of Financial Condition and Results of Operations" and "Selected Statistical Information" of the Offering
Memorandum.
The summary consolidated financial information as of December 31, 2013 and 2014, and for each of the
years ended December 31, 2012, 2013 and 2014 has been derived from our consolidated financial statements
included in the Offering Memorandum which have been audited by Price Waterhouse & Co. S.R.L. The report of
Price Waterhouse & Co. S.R.L. on our audited consolidated financial statements appears elsewhere in the Offering
Memorandum. The summary consolidated financial information as of December 31, 2010, 2011 and 2012, and for
the year ended December 31, 2010 and 2011 have been derived from our audited consolidated financial statements
not included in the Offering Memorandum.
The consolidated financial information as of June 30, 2015 and for the six months ended June 30, 2014 and
2015 has been derived from our unaudited consolidated financial statements included in the Offering Memorandum.
Our results of operations for the six months ended June 30, 2015 are not necessarily indicative of the results to be
expected for year ended December 31, 2015 or for any other period.
Our audited and unaudited financial statements have been prepared in accordance with the accounting rules
established by the Central Bank, which we refer to as "Central Bank Accounting Rules", through Circular CONAU
1, as supplemented and amended ("Central Bank Accounting Rules"), which differ in certain significant respects
from the standards generally accepted as in effect in Argentina from time to time, which we refer to as "Argentine
GAAP", and from international financial reporting standards, which we refer to as "IFRS". We have included a
description of certain significant differences between IFRS and Central Bank Accounting Rules, as applied to us in
"Annex 1--Summary of Significant Differences Between Central Bank Accounting Rules and IFRS". Our financial
statements do not contain any reconciliation to Argentine GAAP or IFRS of our shareholders' equity or our net
income. Potential investors should consult with their professional advisors for an understanding of the differences
between our accounting policies and the Argentine GAAP and IFRS, and how those differences affect the financial
information herein.
Effective January 1, 1995, pursuant to Resolution No. 388 of the Central Bank's Financial
Superintendence, we discontinued our prior practice of adjusting our financial statements for inflation. Effective
January 1, 2002, we resumed the application of the adjustment for inflation, as a result of the application of
Communication "A" 3702 of the Central Bank which repealed any regime that did not allow companies to restate
their accounting balances at period-end currency values. On March 25, 2003, Decree No. 664/03 rescinded the
requirement that financial statements be prepared in constant currency, effective for financial periods on or after
March 1, 2003 and on April 8, 2003, the Central Bank issued Communication "A" 3921 discontinuing inflation
accounting effective as of March 1, 2003. As a result, our unaudited financial statements as of June 30, 2014 and
2015 and our audited financial statements as of December 31, 2010, 2011, 2012, 2013 and 2014 do not include the
effects of inflation.
The exchange rate used for purposes of translation of balances as of December 31, 2014 was
Ps.8.5520=US$1.00, in accordance with the Reference Exchange Rate published by the Central Bank as of such
date.
The exchange rate used for purposes of translation of balances as of June 30, 2015 was
Ps.9.0865=US$1.00, in accordance with the Reference Exchange Rate published by the Central Bank as of such
date.
S-4


Year ended December 31,
Six months ended June 30,
2010
2011
2012
2013
2014
2014
2014
2015
2015
(in thousands of pesos)
(US$(1))
(in thousands of pesos)
(US$(1))
CONSOLIDATED BALANCE SHEET DATA
Assets:
Cash and due from banks ..................
849,067
658,005
1,450,494
2,240,567
5,368,514
627,750
3,008,168
3,201,575
352,344
Government and corporate
securities(2)....................................
2,682,377
1,807,319
2,078,936
1,740,587
4,518,035
528,302
3,395,192
5,271,583
580,156
Loans:
0
To the non-financial public sector ....
49,856
50,768
91,806
139,373
112,131
13,112
130,925
90,231
9,930
To the financial sector .......................
71,894
146,776
391,343
379,308
339,190
39,662
384,448
351,000
38,629
To the non-financial private
sector and foreign residents:
5,651,221
7,540,694
9,544,383 12,928,639 17,195,344
2,010,681
15,060,872 19,025,739
2,093,847
Overdraft facilities .....................
316,231
635,090
1,031,178
792,178
1,173,527
137,223
1,139,629
685,978
75,494
Promissory notes........................
159,629
250,736
229,629
371,267
369,360
43,190
257,286
238,162
26,211
Mortgage loans ..........................
1,741,901
1,705,635
1,868,330
2,220,627
2,349,468
274,727
2,202,867
2,473,874
272,258
Pledge loans ...............................
11,615
22,933
55,346
42,460
103,576
12,111
84,748
432,994
47,652
Personal loans ............................
472,878
788,256
1,199,211
1,822,810
2,354,793
275,350
2,040,282
2,650,126
291,655
Credit card loans .......................
1,813,442
2,701,531
3,551,203
5,181,068
7,155,260
836,677
5,950,266
8,500,601
935,520
Unallocated collections .............
(37,766)
(5,271)
(1,723)
(8,007)
(34,565)
(4,042)
(5,536)
(60,472)
(6,655)
Other loans .................................
1,135,348
1,388,722
1,538,527
2,380,749
3,536,442
413,522
3,253,923
3,889,938
428,102
Accrued interest and
quotation differences
receivable ...............................
50,660
77,398
87,837
144,807
213,947
25,017
160,816
231,916
25,523
Documented interest..................
(12,717)
(24,336)
(15,155)
(19,320)
(26,464)
(3,094)
(23,409)
(17,378)
(1,913)
Allowances.........................................
(216,609)
(223,904)
(273,101)
(308,632)
(407,140)
(47,608)
(356,267)
(433,825)
(47,744)
Loans (net of allowances)..........
5,556,362
7,514,334
9,754,431 13,138,688 17,239,525
2,015,847
15,219,978 19,033,145
2,094,662
Other receivables from financial
transactions....................................
1,599,701
1,991,407
1,695,702
1,824,334
2,366,225
276,687
2,573,443
3,378,146
371,776
Assets under financial leases.............
--
--
10,810
58,851
107,520
12,572
71,907
125,461
13,807
Investments in other companies........
4,066
4,066
4,066
19,241
47,918
5,603
19,241
70,806
7,792
Miscellaneous receivables.................
501,595
571,355
760,833
993,319
1,134,524
132,662
1,117,890
1,559,217
171,597
Bank premises and equipment ..........
96,613
101,775
109,819
122,684
165,159
19,312
150,489
186,320
20,505
Miscellaneous assets..........................
41,517
37,768
40,216
47,508
59,790
6,991
50,483
60,413
6,649
Intangible assets.................................
85,303
76,929
96,602
198,587
342,928
40,099
244,540
426,148
46,899
Items pending allocation ...................
761
684
1,765
3,527
1,373
161
4,254
8,542
940
Total assets ................................. 11,417,362 12,763,642 16,003,674 20,387,893
31,351,511
3,665,986
25,855,585 33,321,356
3,667,128
Liabilities
Deposits:
Non-financial public sector ...............
1,900,857
2,378,275
2,990,892
4,142,809
9,100,822
1,064,175
6,108,730
6,597,313
726,057
Financial sector ..................................
12,341
11,540
8,563
8,109
7,416
867
7,252
10,783
1,187
Non-financial private sector and
residents abroad:
2,924,966
3,061,948
5,011,674
6,738,876
9,225,875
1,078,798
7,791,172
11,820,735
1,300,912
Checking accounts .....................
73,354
58,744
595,564
526,413
760,533
88,930
538,020
1,097,843
120,821
Savings accounts ........................
362,596
505,781
741,892
1,443,467
2,479,643
289,949
1,662,444
2,953,065
324,995
Time deposits..............................
2,405,033
2,407,108
3,355,131
4,265,680
4,983,820
582,767
4,579,249
6,518,386
717,370
Investment accounts...................
14,056
40
160,035
304,241
713,438
83,424
680,326
940,401
103,494
Others..........................................
44,754
65,526
101,650
126,748
156,068
18,249
170,234
174,986
19,258
Interest and quotation
gains/(losses) payable ................
25,173
24,749
57,402
72,327
132,373
15,479
160,899
136,054
14,973
Total deposits .....................................
4,838,164
5,451,763
8,011,129 10,889,794
18,334,113
2,143,840
13,907,154 18,428,831
2,028,156
Other liabilities for financial
transactions(3) ................................
2,956,878
3,205,324
3,539,730
4,137,110
6,475,372
757,176
6,066,310
7,689,843
846,293
Miscellaneous liabilities ....................
418,402
595,401
726,885
1,173,058
1,781,556
208,320
1,255,847
2,066,760
227,454
Provisions...........................................
166,283
203,312
158,274
148,340
236,117
27,610
152,789
221,950
24,426
Subordinated bonds ...........................
--
--
--
--
--
--
--
100,452
11,055
Items pending allocation ...................
2,930
17,336
43,637
121,345
59,855
6,999
208,293
44,847
4,936
Non-controlling interest ....................
60,472
78,131
68,034
71,311
67,591
7,904
59,849
67,957
7,479
Total liabilities............................
8,443,129
9,551,267 12,547,689 16,540,958 26,954,604
3,151,848
21,650,242 28,620,640
3,149,799
Shareholders' equity..........................
2,974,233
3,212,375
3,455,985
3,846,935
4,396,907
514,138
4,205,343
4,700,716
517,329
S-5


Year ended December 31,
Six months ended June 30,
2010
2011
2012
2013
2014
2014
2014
2015
2015
(in thousands of pesos)
(US$(1))
(in thousands of pesos)
(US$(1))
CONSOLIDATED INCOME STATEMENT DATA
Financial income...............................
1,320,337
1,562,782
2,180,725
3,232,073
5,294,899
619,142
2,731,976
2,953,427
325,035
Financial expenses............................
(727,291)
(832,645) (1,138,629) (1,602,511) (2,973,378)
(347,682) (1,500,628) (1,814,561)
(199,699)
Net financial income....................
593,046
730,137
1,042,096
1,629,562
2,321,521
271,459
1,231,348
1,138,866
125,336
Provision for loan losses ..................
(96,783)
(119,292)
(200,922)
(264,290)
(343,437)
(40,159)
(166,646)
(198,479)
(21,843)
Income from services .......................
609,861
974,098
1,172,154
1,737,320
2,609,450
305,127
1,079,248
1,753,821
193,014
Expenses for services .......................
(162,847)
(182,859)
(191,331)
(518,039)
(699,632)
(81,809)
(274,797)
(344,035)
(37,862)
Administrative expenses ..................
(709,009) (1,104,980) (1,440,391) (1,896,956) (2,855,738)
(333,926) (1,293,865) (1,805,016)
(198,648)
Net income from financial
transactions..................................
234,268
297,104
381,606
687,597
1,032,164
120,693
575,288
545,157
59,997
Miscellaneous income .....................
151,486
276,935
209,427
177,082
280,534
32,803
130,830
218,742
24,073
Miscellaneous expenses ...................
(162,642)
(272,390)
(182,761)
(242,428)
(361,738)
(42,299)
(137,937)
(245,533)
(27,022)
Income tax .........................................
(22,092)
(41,335)
(55,096)
(194,123)
(426,641)
(49,888)
(221,240)
(172,212)
(18,953)
Non-controlling interest ...................
(5,705)
(8,797)
(9,569)
(7,178)
25,653
3,000
11,467
(528)
(58)
Net income ...................................
195,315
251,517
343,607
420,950
549,972
64,309
358,408
345,626
38,037
CASH FLOW DATA
Cash flows from operating
activities ......................................
553,144
(919,087)
(285,781) (1,358,932)
(760,949)
(88,979) (1,352,069) (3,925,046)
(431,965)
Cash flows from investing
activities ......................................
(100,734)
(1,413)
(8,044)
(20,157)
(54,757)
(6,403)
(30,780)
(21,784)
(2,397)
Cash flows from financing
activities ......................................
(987,740)
58,758
165,203
604,752
1,698,654
198,627
853,282
669,554
73,687
Financial gain (loss), holding of
cash and cash equivalents
(including interest and
monetary results) ......................
577,526
709,756
879,945
1,605,576
2,244,999
262,512
1,297,168
1,110,337
122,196
Net increase/(decrease) in cash
and cash equivalents ...................
42,196
(151,986)
751,323
831,239
3,127,947
365,756
767,601 (2,166,939)
(238,479)
SELECTED RATIOS(4)
Profitability
Return on average assets(5)...............
1.71%
2.08%
2.39%
2.31%
2.13%
--
3.10%
2.14%
--
Return on average
shareholders'
equity(6)..........................................
6.79%
8.13%
10.31%
11.53%
13.34%
--
17.80%
15.20%
--
Net financial margin(7)......................
6.36%
6.04%
7.24%
8.96%
8.97%
--
10.65%
7.04%
--
Efficiency(8) .......................................
68.17%
72.63%
71.20%
66.59%
67.49%
--
63.56%
70.82%
--
Capital
Total shareholders' equity as
a % of total assets .........................
26.05%
25.17%
21.59%
18.87%
14.02%
--
16.26%
14.11%
--
Total shareholders' equity as
a % of total liabilities....................
35.48%
33.91%
27.69%
23.36%
16.35%
--
19.48%
16.46%
--
Other assets as a % of assets(9).........
6.39%
6.21%
6.33%
6.79%
5.59%
--
6.14%
6.49%
--
Liquidity
Cash and cash resources plus
government and corporate
securities as a % of
deposits..........................................
72.99%
45.22%
44.06%
36.56%
53.92%
--
46.04%
45.98%
--
Net loans as a % of deposits.............
115.42%
138.34%
121.99%
121.30%
94.68%
--
110.04%
104.02%
--
Asset Quality
Non-performing loans as a %
of total loans..................................
2.99%
2.28%
2.31%
2.17%
2.34%
--
2.40%
2.26%
--
Non-performing consumer
loans as a % of total
consumer loans(10).........................
3.62%
2.96%
3.20%
3.15%
3.41%
--
3.69%
3.16%
--
Non-performing commercial
loans as a % of total
commercial loans(11) .....................
1.58%
0.84%
0.57%
0.51%
0.58%
--
0.39%
0.62%
--
Allowances as a % of total
loans...............................................
3.28%
2.54%
2.37%
2.20%
2.24%
--
2.22%
2.17%
--
Allowances as a % of non-
performing loans(12) ......................
112.62%
111.42%
102.64%
101.62%
95.89%
92.52%
95.93%
--
S-6


Year ended December 31,
Six months ended June 30,
2010
2011
2012
2013
2014
2014
2014
2015
2015
(in thousands of pesos)
(US$(1))
(in thousands of pesos)
(US$(1))
OTHER DATA
Operations
Number of branches..........................
50
50
55
60
60
--
60
60
--
Number of employees.......................
1,766
1,892
1,980
2,488
2,608
--
2,577
2,497
--
(1)
The exchange rate used for purposes of translation of balances as of December 31, 2014 and as of June 30, 2015 was Ps.8.5520 =
US$1.00 and Ps. 9.0865 = US$1.00, respectively, in accordance with the Reference Exchange Rate published by the Central Bank
as of such date.
(2)
Includes Ps.1,008.3 million, Ps.1,049.6 million, Ps.972.1 million, Ps.29.9 million and Ps.2,524.7 million from instruments issued by
the Central Bank as of December 31, 2010, 2011, 2012, 2013 and 2014, respectively and Ps.1,697.0 million and Ps.2,422.2 million
as of June 30, 2014 and June 30, 2015, respectively.
(3)
Includes Ps.1,689.7 million, Ps.1,748.5 million, Ps.2,013.7 million, Ps.2,660.1 million and Ps.4,347.1 million in unsubordinated
negotiable obligations as of December 31, 2010, 2011, 2012, 2013 and 2014, respectively and Ps.3,501.7 million and Ps.4,926.7
million as of June 30, 2014 and June 30, 2015, respectively.
(4)
Selected ratios were prepared in accordance with Central Bank Accounting Rules. Pursuant to those standards, current and non-
current assets as well as current and non-current liabilities are not presented as separate line items. Consequently, it is impossible to
calculate ratios such as "Capital Immobilization", which differs from CNV Rules and Argentine GAAP.
(5)
Consists of net income as a percentage of average total assets. Average assets are a regular average between the balance of
consolidated assets at the beginning of the period and the balance of consolidated assets at the end of the period, as it arises from
our financial statements.
(6)
Consists of net income as a percentage of average total shareholders' equity. Average net shareholders' equity is a regular average
between the balance of consolidated net shareholders' equity at the beginning of the period and the balance of consolidated net
shareholders' equity at the end of the period, as it arises from our financial statements.
(7)
Consists of financial margin as a percentage of average assets.
(8)
Ratio of administrative expenses to the sum of net financial margin, net contribution from insurance and other income from
services, net.
(9)
Other Assets consist of the sum of "Investments in other Companies"; "Miscellaneous Receivables", "Bank Premises and
Equipment", "Miscellaneous Assets", "Intangible Assets" and "Items pending Allocation".
(10)
"Consumer loans" consist of our mortgage loans, personal loans and credit card loans. Non-performing consumer loans consist of
those loans classified as "Medium Risk", "High Risk", "Uncollectible" and "Uncollectible for Technical Reasons" in accordance
with the Central Bank loan classification standards.
(11)
"Commercial loans" consist of overdraft facilities loans, promissory notes loans, pledge loans and other loans. Non-performing
commercial loans consist of those loans classified as "Problematic", "High Risk of Insolvency", "Uncollectible" and "Uncollectible
for Technical Reasons" in accordance with the Central Bank loan classification standards.
(12)
Consists of allowances as a percentage of non-performing consumer and commercial loans which are those loans classified as
"Problematic", "High Risk of Insolvency", "Uncollectible" and "Uncollectible for Technical Reasons", in accordance with the
Central Bank loan classification standards.
S-7


Document Outline