BBVA FRANCÉS: Bank Posts Net Loss In Q2 After Tax Provision

(RTTNews) - Argentina's BBVA Francés reported a net loss of 282.9 million pesos (US$ 15.956 million) for the second quarter of 2017, after a 963.258 million pesos profit recorded a year earlier.

In the second quarter, BBVA Francés was forced by the Argentinean central bank to adopt a 1.185 billion pesos (US$ 66.88 million) tax provision. The monetary authority decision came after BBVA Francés adjusted its results for inflation and reduced the income tax provision in the first quarter by the same amount.

Disregarding that effect, the company had a net profit of 902.8 million pesos (US$ 50.92 million) in the second quarter.

Net financial revenue grew by 2.70% in the second quarter of 2017, to 3,432.9 million pesos (US$ 193.62 million), comparing to the same quarter of the previous year, due to the growth in activity and the improvement in the funding mix, as well as lower average balances in local currency.

Regarding activity, the loan portfolio to the private sector totaled 89,517.9 million pesos (US$ 5,048.95 million), growing 35.9% in the 12 months. The non-performing to total financing ratio remained at 0.85%, similar to the previous quarter and the same quarter of 2016, while the coverage ratio was at 243.3% on June 30.