Creación de cubos

We prepare our Consolidated Financial Statements in accordance with the rules of the Central Bank related thereto, which differ from U.S. GAAP in certain respects, as discussed in Note 24 to the Consolidated Financial Statements. The differences and the most significant effects on our net income and Stockholders’ Equity over the fiscal years ended December 31, 2014, 2013 and 2012 are described below.

Under accounting rule ASC 740-10, Income Taxes: Overall, deferred tax assets or liabilities are recorded for temporary differences between the financial reporting basis and the tax basis of assets and liabilities at statutory tax rates expected to be in effect when such amounts will be realized. Deferred tax assets are recognized if it is more likely than not that such assets will be realized. As explained in Note 5.1 to the Consolidated Financial Statements, we applied this method during 2014 to determine the charge for income tax. The adjustments required in order to reconcile assets and liabilities with U.S. GAAP, as detailed in the following paragraph, are shown without considering their effect on income tax. The effect over continued operations of reflecting such adjustments on the Bank’s net assets is increase by Ps.243.6 million, Ps.265.7 million and Ps.271.4 million as of December 31, 2014, 2013 and 2012, respectively. In addition, income over continued operations would have increased by Ps.26.4 million and Ps.137.7 million as of December 31, 2012, respectively and would have decreased by Ps.59.0 million at December 31, 2013. The effect over discontinued operations of reflecting such adjustments on the Bank’s net assets causes them to increase by Ps.17.1 million and Ps.17.4 million as of December 31, 2013 and 2012, respectively. On the other hand, income over discontinued operations would have decreased by Ps.17.1 million, Ps.0.3 million and Ps.2.3 million as of December 31, 2014, 2013 and 2012, respectively.

Under Argentine Banking GAAP, loan origination and credit card issuance fees are recognized when collected. Under accounting rule ASC 310-20, Receivables: Nonrefundable Fees and Other Costs, these fees are recognized over the life of the related loan as an adjustment to yield. The effect of applying U.S. GAAP to continued operations would be to decrease our net income by Ps.101.3 million, Ps.90.7 million and Ps.36.1 million for the fiscal years ended December 31, 2014, 2013 and 2012, respectively. The effect of U.S. GAAP treatment would have been to decrease the principal balance of outstanding loans to our Consolidated Financial Statements over continued operations by Ps.336.7 million, Ps.235.4 million and Ps.144.6 million for the fiscal years ended December 31, 2014, 2013 and 2012, respectively. These adjustments do not have effects over discontinued operations.

According to U.S. GAAP, the Bank decided to classify Government Securities as available for sale and carried at fair value (market value if available) with unrealized gains and losses reported as a net amount, net of income tax within the stockholder’s equity accounts. However, ASC 320-10, Investments-Debt and Equity Securities: Overall, requires that if the decline in fair value is judged to be other than temporary, the cost of the security shall be written down to fair value, and the amount of the write-down shall be included in earnings / (losses). Under BCRA regulations, the securities included in this category are carried at fair values with changes in fair value recognized in net income. The losses or (gains) recognized under U.S. GAAP for securities classified as available for sale are mainly related to realized gains (or losses) for securities at fair values under BCRA regulations (whose results are recognized as losses / gains for the fiscal year). Under U.S. GAAP, the difference between fair value and amortized cost is recognized in Other Comprehensive Income (OCI) until the securities are realized. Therefore the results of continued operations under U.S. GAAP mainly correspond to realized gains and losses from the sale of securities, plus interest income on such securities. In addition, under BCRA regulations the bank holds instruments issued by such BCRA at amortized cost. According to U.S. GAAP, the Bank decided to classify these securities as available for sale and carried at fair value (market value if available), with unrealized gains and losses reported as a net amount, net of income tax, within the stockholder’s equity accounts. Had U.S. GAAP been applied, our assets over continued operations would have decreased by Ps.28.1 million, Ps.7.5 million and Ps.3.4 million as of December 31, 2014, 2013 and 2012, respectively. Our net income over continued operations would had decreased by Ps.159 million for the fiscal year ended December 31, 2014 and would have increased by Ps.147.9 million and Ps.16.1 million for the fiscal years ended December 31, 2013 and 2012, respectively. These adjustments do not have effects over discontinued operations.

Under Argentine Banking GAAP, the allowance for loans has been calculated based on the Bank’s estimated loan loss risk in light of debtor compliance and the collateral supporting the respective transactions, as provided by Communication “A” 2950 and supplemented by the Central Bank. ASC 310-10, Receivables: Overall, requires a creditor to measure impairment of a loan based on the present value of expected future cash flows discounted at the loan’s effective interest rate, or at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. This statement is applicable to all loans (including those restructured in a troubled debt restructuring involving a modification of terms), except large groups of smaller-balance homogenous loans that are collectively evaluated for impairment. Had U.S. GAAP been applied over continued operations the Bank’s assets would have increased by Ps.418.6 million, Ps.307.4 million and Ps.198.0 million at December 31, 2014, 2013 and 2012, respectively. On the

Pursuant to Argentine Banking GAAP, at December 31, 2003 the Bank recorded as assets the difference between the paid amounts for constitutional protection actions and the deposit amounts registered in accordance with the existing regulations. The Government has not indicated that it will compensate the Bank for the difference between the amounts paid for constitutional protection actions and the deposit amounts registered in accordance with the existing regulations. ASC 450-30, Contingencies: Gain Contingencies, requires that contingencies that might result in gains should not be reflected in the accounts since to do so might be to recognize revenue prior to its realization. Had U.S. GAAP been applied, our assets over continued operations would have decreased by Ps.37.0 million, Ps.31.0 million and Ps.29.8 million at December 31, 2014, 2013 and 2012, respectively. On the other hand net income over continued operations would have decreased by Ps.6.0 million, Ps.1.3 million and Ps.6.1 million at December 31, 2014, 2013 and 2012, respectively. These adjustments do not have effects over discontinued operations.

Under Argentine Banking GAAP the Bank accounted for its investment in the Buenos Aires Stock Exchange at market value. Under U.S. GAAP, such investments would have been valued at cost or at a lesser amount where there is a non-temporary impairment in value. Additionally, the companies that are under 20% were valued by the equity method in accordance with Central Bank rules. Under U.S. GAAP, those investments that are non-marketable securities would have been valued at cost. Had U.S. GAAP been applied, the Bank’s assets over continued operations would have decreased by Ps.61.7 million, Ps.49.7 million and Ps.38.2 million at December 31, 2014, 2013 and 2012, respectively. On the other hand, the income over continued operations would have decreased by Ps.12.1 million and Ps.11.5 million at December 31, 2014 and 2013, respectively and would had increased by Ps.13.7 million at December 31, 2012. These adjustments do not have effects over discontinued operations.

Pursuant to Argentine Banking GAAP, we generally record the cost of vacation payments earned by employees when paid, U.S. GAAP requires that this expense be recorded on an accrual basis as the vacations are earned. If U.S. GAAP had been applied, our liabilities over continued operations would have increased by Ps.0.5 million, Ps.0.4 million and Ps.0.4 million for the fiscal years ended December 31, 2014, 2013 and 2012, respectively. Net income over continued operations would have decreased by Ps.0.1 million and Ps.0.04 million at December 31, 2014 and 2013, respectively and would had increased by Ps.36.3 million at December 31, 2012. These adjustments do not have effects over discontinued operations.

Pursuant to Argentine Banking GAAP, we do not give accounting recognition to checks drawn against the Bank or other banks or other items to be collected, until such time as the related item clears or is accepted. Such items are recorded by the Bank in memorandum accounts. U.S. banks, however, account for such items through balance sheet clearing accounts at the time the items are presented. Had U.S. GAAP been applied, the Bank’s assets and liabilities would have increased by approximately Ps.2,103.5 million and Ps.2,475.5 million at December 31, 2014 and 2013, respectively.

Under Argentine Banking GAAP, the Bank recognizes forward and unsettled spot transactions as receivable and payable at the time of the agreement, which reflect the amount of cash, currency or securities to be exchanged at the closing date. The receivable or payable representing the receipt or delivery of securities or currency is stated at the quoted market value of such securities or currency. Under U.S. GAAP, in general entities would not recognize a receivable or payable but would recognize the differences arising from changes in the market price of securities or currency to be received or delivered if the transaction did not qualify as a hedge. Had U.S. GAAP been applied, the Bank’s assets and liabilities would have decreased by approximately Ps.852.2 million and Ps.156.4 million at December 31, 2014 and 2013, respectively.

Under Argentine Banking GAAP, foreign trade acceptances are not recorded on the balance sheet by the Bank. In accordance with Regulation S-X, acceptances and related customer liabilities should be recorded on the balance sheet. The effect of the adjustment required to state balance sheets in accordance with Regulation S-X would be to increase assets (due from customers on acceptances) and increase liabilities (bank acceptances outstanding) by Ps.290.7 million and Ps.199.2 million at December 31, 2014 and 2013, respectively.

On May 4, 1998, our shareholders approved the reversal of the shares issuance premium related to the capital increase paid on December 19, 1997 and relating to the business goodwill from the acquisition of 71.754% of the capital stock of Banco de Crédito Argentino. Under Argentine Banking GAAP, we recognize the issuance premium under “Issuance premiums” and capitalize the related amount under Intangible assets. The effect of adjustments required to state such amounts in accordance with U.S. GAAP would have been to increase assets over continued operations by Ps.254.9 million for the fiscal years ended December 31, 2014, 2013 and 2012. On May 13, 1999, BBVA acquired Corp Banca S.A. and Atuel Fideicomisos S.A. and on September 13, 1999, BBVA sold its interests in both companies to BBVA Francés. For the difference between the definitive price of the transaction and the incorporation value of both companies, the Bank recognized a goodwill and amortized it in proportion to the months of estimated

applied over continued operations our assets would have decreased by Ps.309.6 million as of December 31, 2014, 2013 and 2012. These adjustments do not have effects over discontinued operations.

ASC 815, Derivatives and Hedging, establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts (collectively referred to as derivatives) and for hedging activities. Had U.S. GAAP been applied, the assets and liabilities over continued operations would have increased by Ps.9.7 million and Ps.0.9 million at December 31, 2014, respectively. At December 31, 2013 the assets and liabilities over continued operations would have increased by Ps.8.2 million and Ps.25.8 million, respectively,. And at December 31, 2012 the assets and liabilities over continued operations would have increased by Ps.7.8 million and Ps.1.8 million, respectively. On the other hand, income would have increased by Ps.26.4 million and Ps.17.3 million for the fiscal years ended December 31, 2014 and 2012, respectively and would had decreased by Ps.23.6 million for the fiscal year December 31, 2013. These adjustments do not have effects over discontinued operations.

The Bank acquired Consolidar AFJP S.A. and Consolidar Cía. de Seguros de Retiro S.A.’s undivided interest in a piece of real estate. Accounting rule ASC 810-10, Consolidation: Overall, established that any intercompany profit or loss on assets remaining within the Group should be eliminated. Had U.S. GAAP been applied income over continued operations would have increased by Ps.48.6 million at December 31, 2012. These adjustments do not have effects over discontinued operations.

The Bank discloses its non-controlling interests in consolidated subsidiaries like a caption outside its equity. In accordance with accounting rule ASC 810-10, Consolidation: Overall, non-controlling interests in consolidated subsidiaries shall be reported in the consolidated balance sheets within equity and separately from the parent’s equity. Had U.S. GAAP been applied over continued operations, the Bank’s stockholders’ equity would have increased by Ps.291.5 million, Ps.203.4 million and Ps.119.5 million at December 31, 2014, 2013 and 2012, respectively. In addition, income over continued operations for the fiscal years ended at December 31, 2014, 2013 and 2012 would have increased by Ps.88.0 million, Ps.83.9 million and Ps.36.8 million, respectively. Had U.S. GAAP been applied over discontinued operations, the Bank’s stockholders’ equity would have increased by Ps.3.9 million, Ps.7.1 million and Ps.7.7 million at December 31, 2014, 2013 and 2012, respectively. In addition, income over discontinued operations for the fiscal years ended at December 31, 2014, 2013 and 2012 would have decreased by Ps.3.1 million, Ps.0.6 million and Ps.1.7 million, respectively.

Calculated in accordance with U.S. GAAP, our net income over continued operations for the fiscal years ended December 31, 2014, 2013 and 2012 would have been Ps.3,181.7 million, Ps.2,180.2 million and Ps.1,547.1 million, respectively. Under Argentine Banking GAAP, our net income over continued operations was Ps.3,208.2 million, Ps.2,024.9 million and Ps.1,265.6 million for the same respective periods. In addition our net income over discontinued operations applying U.S. GAAP for the fiscal years ended December 31, 2014, 2013 and 2012 would have been Ps.(23.9) million, Ps.(1.6) million and Ps.(6.0) million, respectively. Under Argentine Banking GAAP, our net income over discontinued operations was Ps.(3.7) million, Ps.(0.7) million and Ps.(2.0) million for the same respective periods.

Credit Ratings

As a consequence of the Argentine Crisis and the downgrade of the sovereign ceiling, the international rating agencies downgraded our ratings in 2001 and 2002. Standard & Poor’s downgraded our counterparty credit risk rating to “SD” (selective default) and our senior debt rating to “CC”, while Moody’s Investors Service downgraded our financial strength credit rating to “E” and our senior debt rating to “Ca”.

In light of the deep crisis in Argentina and the financial system, in 2002, we asked the international rating agencies to temporarily suspend the ratings of BBVA Francés. The decision was made as a measure to reduce costs and because we believed that our ratings would not improve in the medium term.

In 2005, with the completion of the sovereign debt restructuring, Standard & Poor’s upgraded the new sovereign debt to “B- ”from “SD”. As a result, it rated BBVA Banco Francés’ local counterparty credit risk and its senior debt as “AA”.

In November 2012, Standard & Poor’s downgraded the ratings of 15 financial institutions that operated in Argentina after downgrading the sovereign rating. As a consequence, the Bank´s rating was changed to “raA” with negative outlook and Fitch Ratings downgraded the rating of the Bank´s shares from “1” with stable outlook to “1” with negative outlook and its senior long term debt

It is important to highlight that in November 2013, Fitch Ratings sold 70% of its capital stock to a local investor group and changed its name to “Fix SCR”. This new group has been responsible for the Bank´s local rating since. As of December 31, 2013, Fix SCR made no changes to the Bank´s local ratings and maintained the Bank’s share rating at “1” with negative outlook, its senior long term debt at “AA(arg)” with negative outlook and its short term debt at “A1+(arg)”.

On August 20, 2014, Standard & Poor’s downgraded the Bank’s rating following the downgrade of the sovereign risk. As a result, BBVA Francés long term institutional rating as well as the negotiable obligations Program (US$750,000,000) and Class IV notes were downgraded to “raB+” with negative outlook from “raBB+” with negative outlook while its short term institutional rating was maintained at “raB”.

As of March 2015, FIX SCR and S&P made no changes to the Bank’s existing rating. C. Research and Development, Patents and Licenses

We incur research and development expenses in connection with technology information systems. We hold no material patents and do not license to others any of our intellectual property. We plan infrastructure development (processing, telecommunications, Internet, information security) based upon present and projected future demand of such services. We acquire the necessary technology, and equipment from third parties.