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BBVA Banco Francés posts loss in Q2


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BBVA Banco Francés posts loss in Q2

BBVA Banco Francés SA posted a net loss of about 283.0 million Argentine pesos for the second quarter of 2017, down from a profit of 963.26 million pesos in the same quarter in 2016.

Net loss per share equated to 53 centavos in the quarter, compared to 1.79 pesos a year earlier, according to a Form 6-K filed Aug. 11.

In explaining the loss, the bank said that while it earned about 1.19 billion pesos net in the first quarter of 2017 due to a lower provision for income tax, Banco Central de la República Argentina in May required Banco Francés "to record a provision for possible contingencies for the same amount."

Had it not been for the fiscal provisions, the bank would have posted an income of 902.8 million pesos in the second quarter.

Net financial income ticked at 3.43 billion pesos in the quarter, up 2.7% year over year from 3.34 billion pesos. Net income from services jumped up 17.4% annually to 1.20 billion pesos, from 1.01 billion pesos. The bank's net interest margin was 11.4% for the period, compared to 12.5% in the year-ago quarter.

Provision for loan losses, meanwhile, rose 6.0% to 356.4 million pesos from 336.1 million pesos year over year. Nonperforming loans as a ratio of net total loans stood at 0.85%, unchanged from a year earlier.

Administrative expenses at the bank increased 36.9% to 3.03 billion pesos in the period from 2.21 billion pesos a year earlier.

Net total loans grew 35.8% annually, hitting 89.52 billion pesos at June 30 compared to 65.93 billion pesos a year earlier.

As of Aug. 10, US$1 was equivalent to 17.72 Argentine pesos.