4Q15 EARNINGS RELEASE OUTSTANDING DATA

Transcription

1 EARNINGS RELEASE Buenos Aires, Argentina, February 10, 2016 Banco Patagonia S.A. (BCBA: BPAT; BOVESPA: BPAT33) reports on the consolidated income of 4th quarter () for financial year OUTSTANDING DATA Banco Patagonia closed having ARS billion in Assets, ARS billion in Loans, ARS billion in Deposits, and ARS billion as Shareholders Equity. Consolidated figures exhibit Assets for ARS billion, Loans for ARS billion and Deposits for ARS billion. Net income for totaled ARS million, a figure 62.2 higher than in (ARS million), accounting for a 35.2 ROAE (Return On Average Equity) and a 4.8 year over year ROA (Return on Average Assets). Loans granted to the non-financial private sector on a consolidated basis amounted to ARS billion growing by 9.5 compared to the previous quarter (ARS billion) and 33.0 year-over-year increase ( ARS billion). Consolidated total deposits amounted to ARS billion, which accounts for a 20.9 in the previous quarter increase (ARS billion) and a 51.1 year-over-year increase (ARS billion). Regarding the portfolio quality indexes, the non-performing portfolio ratio is 1.2, and coverage of the nonperforming portfolio with provisions is The consolidated liquidity ratio was 52.4 (liquid assets on total deposits). Furthermore, aggregation of consolidated minimum capital records a surplus of ARS billion over the requirements set by BCRA regulations. As of December 31, 2015, Banco Patagonia S.A. employs 3,361 people and has a wide network made up of 197 customer desks all over the country, distributed in the capital and major cities in each province. Earnings Release Page 1

2 FINANCIAL REPORTING For the purposes of drafting this Report, Banco Patagonia S.A. has consolidated line by line its balance sheet and profit and loss statement with the financial statements of its subsidiaries: Patagonia Valores S.A., Patagonia Inversora S.A. Sociedad Gerente de Fondos Comunes de Inversión, Banco Patagonia (Uruguay) S.A.I.F.E. and GPAT Compañía Financiera S.A. GAINS (LOSSES) Summarized Statement of Income Intermediation Spread Uncollectibility Charge Net Fee Income Administrative Expenses Net Operating Income Miscellaneous Profits Income before Income Tax Income Tax Net Profit (Loss) of the Quarter 1, , , , (5.0) 1, Change () as of (59.0) (21.6) (55.2) (500.0) (15.1) Net income for was ARS million, accounting for a 22.1 increase as compared to the net income for (ARS million) and a 62.2 increase as compared to (ARS million). a) Earnings per Share Earnings per Share Net Income for the Quarter Quarterly Average Number of Outstanding Shares Quarterly Average Number of Treasury Shares Shares Issued at quarter-end Earnings per Share Amounts in pesos Earnings per BDR (*) Amounts in pesos Book value per share Amounts in pesos Change () as of (*) Each BDR is equivalent to 20 common shares. Earnings Release Page 2

3 b) Net Financial Income Gross Intermediation Spread Financial Income Financial Expenses Total Change () as of 3, , , , , , , , Gross interest income in amounted to ARS billion, accounting for a 8.5 increase as compared to the previous quarter (ARS billion) and a 63.7 increase as compared to (ARS million), as per the following table: Financial Income Interest on loans to the financial sector Interest on overdrafts Interest on documentary credits Interest on auto loans Interest on credit card loans Interest on other loans Interest on financial leasing Net income from government and private securities Exchange difference Other Total Banco Patagonia Consolidado , , ,986.3 Change () as of (30.2) Financial income reached ARS billion, accounting for a 14.4 rise compared to (ARS billion), and a 56.7 increase compared to (ARS billion). The most significant increases, compared to, are due to higher interest income generated by the loan portfolio, mainly from documentary credits and overdrafts, exhibiting a change of ARS million (31.2) and ARS 79.5 million (19.3), respectively, and by higher income due to the difference in the foreign currency exchange, which increased by ARS million (153.2). This higher income was partially set off by a lower yield in the government and private securities portfolio, which recorded ARS million (30.2). Financial Expenses Interest on term deposits Other interest Interest on other liabilities for financial intermediation Contribution to the deposit guarantee fund Other Total 1, Change () as of 22.7 (11.3) (2.3) , , , Financial expenses grew by 21.5 compared to (ARS million), mainly as a result of higher interest accrual on time deposits, which increased by 22.7 (ARS million). Earnings Release Page 3

4 c) Net Fee Income Net Fee Income Deposits Credit and Debit Cards Related to Loans Safe-deposit boxes Foreign Trade Capital and Securities Market Other Fee income Fee expense Total Change () as of (8.9) (245.4) (197.7) (150.4) Net fee income of the quarter reached ARS million, increasing by 1.4 compared to (ARS million) and by 18.0 compared to ARS million in. Furthermore, fee income reached ARS million, increasing by 7.8 (AR$ 54.9 million) as compared to (ARS million), mainly due to fees collected on credit and debit cards, which increased by ARS 29.3 million (13.4) as a result of the increased number of transactions with cards performed by our clients, boosted by promotions offered by the Bank. Fees charged on deposits increased by ARS 8.6 million (3.4), as compared to, fees related to foreign trade reached ARS 7.4 million (a 34.9 increase) and those charged on loans reached ARS 5.2 million (5.0 increase). In turn, service-fee expense of the quarter reached ARS million, increasing by 24.1 compared to (ARS million) and by 63.2 compared to ARS million in. Earnings Release Page 4

5 d) Administrative Expenses Payroll expenses Fees to directors and statutory auditors Other fees Advertising and publicity Taxes Other operating expenses Other Banco Patagonia Consolidated Total 1,016.8 AdministrativeExpenses Change () as of (12.2) Administrative expenses in the quarter reached ARS billion, 15.2 higher than in (ARS million) and 46.3 higher than in (ARS million). The main quarterly changes are associated to higher expenses in advertising and publicity (213.7), other fees (46.3) and other operating expenses (41.9). As of December 31, 2015 coverage of administrative expenses with net fee income reached 54.4, and the efficiency ratio, measured as the quotient between administrative expenses and total net income, reached Earnings Release Page 5

6 RELEVANT FINANCIAL INFORMATION a) Loan Portfolio Loans To the Non-Financial Public Sector To the Financial Sector To the Non-Financial Private Sector Overdrafts Documentary credits Auto loans Consumer loans Credit cards Other (Provisions) Total , , , , , , , , , , , , , , , , , , , , , ,643.4 (1,239.8) (1,207.2) (1,144.1) 33, , ,233.6 Change () as of (4.7) As of December 31, 2015 the non-financial private sector loan portfolio reached ARS billion, representing an increase of 9.5 compared to (ARS billion), and 33.0 compared to (ARS billion). In the consumer portfolio, there were an outstanding increase of 19.8 (ARS million) in financing through credit cards, and a rise of 12.2 (ARS million) in pledged loans, associated to the financing granted by GPAT Compañía Financiera S.A. for the purchase of Chevrolet automobiles. In turn, consumer loans rose by 8.5 (ARS million). Within the commercial portfolio, there was a quarter-on-quarter increase of 14.2 (ARS million) in documentary credits. As regards the credit facility for productive investment (LIP), intended to finance investment projects with specific purposes, both for SMEs and companies, it should be noted that Banco Patagonia attained the placement goals set since the establishment of the facility. Earnings Release Page 6

7 b) Exposure to the Public Sector Exposure to the Public Sector Government Securities (*) Loans to the Public Sector Exposure to the Public Sector Share on Total Assets 2, , , Change () as of (3.6) , , ,554.8 (0.1) (17.3) (15.6) (*) Includes "Equity Interest plus Loans and Spot Purchases to be Settled and Forward Purchases less Deposits and "Spot Sales to be Settled and Forward Sales. As of December 31, 2015, exposure in assets to the public sector reached ARS billion, decreasing by 0.1 compared to (ARS billion), increasing by 26.2 compared to (ARS billion), with a share on total assets of 5.2. c) Deposits Deposits Non-Financial Public Sector Checking Accounts Time deposits Financial Sector 2, , , , , , , , , Change () as of (0.4) (6.7) (0.3) (11.9) (81.2) To the Non-Financial Private Sector Checking Accounts Savings accounts Time deposits Other 39, , , , , , , , , , , , , , ,351.3 (0.4) Total 42, , , Total deposits reached ARS billion, rising by 20.9 compared to (ARS billion) and by 51.1 compared to (ARS billion). Deposits from the non-financial private sector totalled ARS billion, a 22.1 increase in the quarter (ARS billion) and a 59.1 increase (ARS billion) when compared with. Quarterly evolution shows that the main increases are linked to savings account deposits (38.4) and time deposits (24.7). Besides, the yearly change of time deposits was 77.6, while savings account deposits accounted for Total deposits at the close of accounted for 78.0 of the Entity s total funds. Time deposits represent 52.7 of total deposits. Earnings Release Page 7

8 d) Other Funding Sources Other Funding Sources Central Bank of the Republic of Argentina (BCRA) Banks and international organizations Unsubordinated corporate bonds , , , , ,235.4 Total 3, , ,944.4 Change () as of (7.6) (30.2) (14.3) The other funding sources totalled ARS billion, accounting for a 7.7 increase compared to (ARS bi), and for a 75.3 increase compared to, due to a higher use of credit facilities with International Banks and Agencies, related to a higher number of foreign trade lending transactions. e) Liquidity Liquid Assets Cash and Cash Equivalents Lebacs Other Government and Corporate Securities Liquid Assets Deposits 9, , , , , , , , , , , , , , ,822.0 Liquid Assets on Total Deposits Change () as of Banco Patagonia holds consolidated liquid assets for ARS billion, accounting for a 30.4 increase compared to (ARS billion), and a 70.9 increase compared to (ARS billion). The liquidity on total deposits ratio reached Earnings Release Page 8

9 f) Portfolio Quality Financing Portfolio Total financing Private sector financing Non-performing portfolio Provisions Non-performing portfolio as a of total financing Provisions as a of non-performing financing portfolio Change () as of , ,0 442, ,6 1, , ,9 448, ,2 1, , ,0 516, ,0 1,8 11,4 9,2-1,5 2,4-9,4 33,8 30,7-14,4 8,3-34,5 286,3 275,4 226,1 4,0 26,6 As of December 31, 2015 the non-performing portfolio index over total financing was 1.2, and coverage with provisions on the non-performing loan portfolio was Variation of indexes related to the portfolio is monitored on a permanent basis by the Bank s Management in order to take the corresponding steps in each scenario. g) Capitalization Capitalization Minimum Capital Requirement (A) Credit Risk. Market risk - Securities Market risk - Currencies Operational Risk Bad Debts Composition (B) Common Capital - Level 1 Deductible items COn1 Common Capital - Level 2 Difference (B) - (A) , , , , , , , , ,093.8 (28.4) (28.8) (38.9) , , ,322.9 Change () as of (66.3) (1.2) (26.9) As of December 31, 2015, Banco Patagonia had excess cash of ARS billion in its consolidated minimum capital over the requirements established in BCRA regulations, increasing by 1.5 compared to (ARS billion) and 1.92 compared to (ARS billion). Finally, the capitalization ratio (as a percentage of risk-weighted assets) was 14.4 (see Main Indicators). Earnings Release Page 9

10 MAIN INDICATORS Banco Patagonia Consolidado Detalle 4Q13 4Q12 4Q11 Profitability Indexes Return on average assets (1) Return on average shareholders' equity (2) Indexes on Financial Margin and by Service Total financial margin (net financial income, Average Assets) Margin on net services (net fee income, Average Assets) Total margin (net total income, average assets) (3) Net fee income on net total income (3) Shareholders' Equity Indexes Shareholders' equity on total assets Financial standing (shareholders' equity on total liabilities) Administrative expenses on total net income (3) Net fee income on administrative expenses Liquidity Ratios Liquid Assets on deposits (6) Loans (net of provisions) on assets Deposits on liabilities Loans on deposits Fixed assets (7) Total liabilities as a multiple of shareholders' equity RPC on risk-weighted assets (4) Portfolio Quality Ratio Non-performing portfolio on financing (before provisions) (5) Provisions on non-performing financing portfolio (5) Efficiency Index (1) defined as the quotient between income for the year, annualized period and average assets calculated according to monthly balances. (2) defined as the quotient between income for the year, annualized period and average shareholders' equity calculated according to monthly balances. (3) total net income defined as the sum total of financial income and net fee income. (4) RPC means accountable corporate liability. (5) non-performing portfolio is defined as loans classified as and 6 condition. (6) defined as the quotient between the sum total of cash and cash equivalents and government and corporate securities and total deposits. (7) defined as the quotient between the sum total of fixed, sundry and intangible assets and shareholders' equity. Earnings Release Page 10

11 SUMMARIZED ACCOUNTING INFORMATION a) Consolidated Financial Structure Statement of Financial Position Cash and Cash Equivalents Government and Corporate Securities Loans To the Non-Financial Public Sector Financial Sector To the Non-Financial Private Sector (Provisions) 4Q13 4Q12 4Q11 9, , , , , , , , , , , , , , , , , , , , , (1,239.8) (2.0) (1,144.1) (2.7) (967.0) (3.1) (507.1) (1.8) (230.5) (1.1) Other Receivables from Financial Intermediation 3, , , , , Receivables for Financial Leasing 1, , Other Assets 1, , , , , , ASSETS Statement of Financial Position 4Q13 4Q12 4Q11 Deposits Non-Financial Public Sector Financial Sector Non-Financial Private Sector 42, , , , , , , , , , , , , , , Other liabilities for financial intermediation 10, , , , , , , , , , , , , , , , , , , , , , , Other Liabilities LIABILITIES SHAREHOLDERS' EQUIT, Total Liabilities + Shareholders' Equity Earnings Release Page 11

12 b) Comparative Consolidated Profit and Loss Structure Statement of Income 4Q13 Financial Income Financial Expenses Gross Interest Income Uncollectible Charge Net Fee Income Administrative Expenses Net Operative Income Miscellaneous Income Loss 3, , , , , , , (5.0) (0.2) 1, , (5.5) (0.3) 4Q Q Income before Income Tax 1, Income Tax Net Income for the Quarter c) Consolidated Foreign Currency. Position Foreign Currency. Position Cash and Cash Equivalents Government and Corporate Securities Loans Other Receivables from Financial Intermediation 4, , , Q13 2, Q12 1, Q , , , , Receivables for Financial Leasing Other Assets ASSETS 9, , , , , Deposits 3, , , , ,927.1 Other liabilities for financial intermediation 3, , LIABILITIES 6, , , , ,599.8 Foreign Currency. Position in Pesos 2, , , , Benchmark Exchange Rate Other Liabilities Foreign Currency. Position in US Dollars Earnings Release Page 12

13 d) Comparative Individual Financial Structure Statement of Financial Position Banco Patagonia Standalone 4Q13 4Q12 4Q11 9, , , , , , , , , , , , , , , , ,776.3 (1,205.7) (2.0) ,171.0 (1,110.9) (2.7) ,086.3 (935.4) (3.1) ,634.2 (487.3) (2.0) ,520.3 (218.9) (1.1) Other Receivables from Financial Intermediation 3, , , , , Receivables for Financial Leasing 1, , Other Assets 2, , , , , , , , Cash and Cash Equivalents Government and Corporate Securities Loans To the Non-Financial Public Sector Financial Sector Non-Financial Private Sector (Provisions) ASSETS Statement of Financial Position Deposits Non-Financial Public Sector Financial Sector Non-Financial Private Sector Banco Patagonia Standalone 41, , , Q , , , , , , Q , , , Q , , , Other liabilities for financial intermediation 9, , , , , Other Liabilities 1, , , LIABILITIES SHAREHOLDERS' EQUIT. Total Liabilities + Shareholders' Equity. Earnings Release 52, , , , , , , , , , , , , , , Page 13

14 e) Comparative Individual Income and Loss Structure Statement of Income Statement of Income 4Q13 Financial Income Financial Expenses Gross Interest Income Uncollectible Charge Net Fee Income Administrative Expenses Net Operative Income Miscellaneous Income. Loss 2, , , , , , Income before Income Tax 1, Income Tax Net Income for the Quarter Earnings Release 4Q12 4Q11 Page 14

15 NOTE This report might include forward-looking statements. If included, these statements are mainly based on the current opinions, expectations and projections by the Bank and its management about future events and operating and financial trends that will affect the Bank's business. There are many important factors that could cause the Bank's actual results to differ substantially from those results anticipated in our forward-looking statements, such as, but not limited to: inflation; changes in interest rates and the costs of deposits; Argentine government regulations affecting the Bank's operations; adverse judicial or administrative decisions; general credit risks, such as increases in defaults by borrowers; unexpected increases in financing or other costs; fluctuation or depreciation of the value of the Argentine public debt held in treasury by the Bank; competition in the banking or financial market or in other related Argentine markets; withdrawal of deposits by Bank's clients; deterioration in the regional, national and international business and economic conditions; and fluctuations in the Argentine peso exchange rate. The words ''it is considered',' ''might, ''would',' ''estimate'', ''continue'', ''anticipate'', ''intend'', ''expect'', ''forecast'' and similar terms are intended to identify forward-looking statements. Such statements include information concerning results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, effects of future regulations and effects of competition that possibly or supposedly may happen in the future. These statements are valid only as of the date they were made, and the Bank assumes no obligation to publicly update or to revise any of the forward-looking statements after the distribution of this report as a result of new information, future events or other factors. These expectations and projections are subject to material risks and uncertainties and may not be accurate or may change significantly. In light of these risks and uncertainties, the future events and circumstances discussed in this report are not to be taken as guarantees of future performance. This report is a summary analysis of the results of Banco Patagonia and its subsidiaries. For a proper interpretation, this report must be read in conjunction with any other material periodically filed with the Comisión Nacional de Valores ( Comissão de Valores Mobiliários ( Bolsa de Comercio de Buenos Aires ( and Bolsa de Valores de São Paulo ( In addition, the Argentine Central Bank ( may publish information related to Banco Patagonia as of a date subsequent to the last date for which the Bank has published information. Earnings Release Page 15

16 CONFERENCE CALL Banco Patagonia S.A. will hold a conference call to discuss the profit, loss corresponding to on February 12, 2016 at 01:00 p.m. (Buenos Aires Time), a.m. (US Eastern Time). To participate, please dial: Participant Dial in (Toll Free): Participant International Dial In: Code: INVESTOR RELATIONS Banco Patagonia S.A. Adrián Sánchez Seoane Investor Relations Phone:(5411) Fax: (5411) investors@bancopatagonia.com.ar website: Earnings Release Page 16