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Higher financial, service income boost BBVA Francés Q1 income

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Higher financial, service income boost BBVA Francés Q1 income

BBVA Banco Francés SA's net income for the first quarter nearly tripled from the year-ago period as the Argentine bank saw an increase in its net financial and service income.

The lender reported net income of about 1.55 billion Argentine pesos for the three-month period, 178.3% higher year over year from the 555.2 million pesos. The amount corresponded to net income per share of 2.52 pesos, up from 1.03 pesos a year earlier.

Net financial income went up 52.2% yearly to 5.52 billion pesos, from 3.63 billion pesos, as income from financial intermediation rose 40.2% to about 6.30 billion pesos from nearly 4.49 billion pesos a year earlier.

Banco Francés' net interest margin without foreign exchange differences was 12.34% in the quarter, down from 12.56% in the linked quarter and 14.03% in the year-ago period.

Net income from services also grew 36.2% to 859.8 million pesos, from 631.4 million pesos a year earlier. Service charges on deposit accounts also grew 62.3% to 858.3 million pesos while fees from collection services soared 138.6% to 84.5 million pesos.

Administrative expenses, on the other hand, grew 25.8% to 3.66 billion pesos from 2.91 billion pesos a year earlier as personnel expenses also rose to 2.08 billion pesos and general expenses went up to 1.58 billion pesos.

Provisions for loan losses also grew 67.3% over the year to 526.1 million pesos from 314.4 million pesos.

Net total loans for the bank reached 139.44 billion pesos at the end of the quarter, 69.4% higher year over year from 82.32 billion pesos. The ratio of non-performing loans to the total number of loans was at 0.72% during the three-month period, compared to 0.67% in the linked quarter and 0.81% in the year-ago period.

The bank's return on assets was at 2.9% in the quarter, up from 1.4% last year. Return on equity was at 20.3% during the period, up from 12.7% during the period.

As of May 31, US$1 was equivalent to 24.96 Argentine pesos.