Memoria Anual ABA 2011 Ingles

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ANNUAL REPORT 2011

ACTIVE MEMBERS American Express Bank Ltd. S.A.

Banco Bradesco Argentina S.A.

Banco de la República Oriental del Uruguay

Banco Itaú Argentina S.A.

Banco Santander Río S.A.

BBVA Banco Francés S.A.

BNP Paribas

Citibank N.A.

Deutsche Bank S.A.

HSBC Bank Argentina S.A.

JPMorgan Chase Bank, National Association (Buenos Aires Branch)

Standard Bank Argentina S.A.

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

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ANNUAL REPORT 2011

ASSOCIATED MEMBERS Banco Latinoamericano de Exportaciones

Bank of America N.A.

Crédit Agricole Corporate and Investiment Bank

Commerzbank AG

Coöperatieve Centrale Raiffeisen-Boerenleebank B.A. (Rabobank)

ING Bank N.V.

Lloyds TSB Bank PLC

Société Générale Société Anonyme

Standard Chartered Bank

The Bank of New York

Wachovia Bank, N.A.

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ANNUAL REPORT 2011

BOARD OF DIRECTORS President Claudio Cesario (*) 1st Vicepresident BANCO SANTANDER RÍO S.A. Enrique Cristofani 2nd Vicepresident CITIBANK N.A. Juan J. Bruchou 3rd Vicepresident BBVA BANCO FRANCÉS S.A.

Ricardo Enrique Moreno 4th Vicepresident HSBC BANK ARGENTINA S.A. Antonio Losada Secretary DEUTSCHE BANK S.A. Marcelo Blanco Pro Secretary JPMORGAN CHASE BANK, National Association

(Sucursal Buenos Aires) Facundo D. Gómez Minujín

Treasurer BANCO ITAÚ ARGENTINA S.A. Sergio Feldman Pro Treasurer BNP PARIBAS Tullio Lanari Directors STANDARD BANK ARGENTINA S.A.

Alejandro Ledesma THE BANK OF TOKYO-MITSUBISHI UFJ, Ltd. Yoshikazu Takeuchi

Alternate Directors BANCO DE LA REPÚBLICA ORIENTAL DEL URUGUAY Alejandro Álvarez Izetta

Honorary President Julio J. Gómez (*) Mario Vicens, until April 27th

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ANNUAL REPORT 2011

ACCOUNTS AUDITORS Titular BANCO BRADESCO ARGENTINA S.A.

Helio A. Antonio

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ANNUAL REPORT 2011

SPECIAL COMMITTEES FINANCIAL AFFAIRS AND CAPITAL MARKETS Coordinating Secretaries Alberto Estrada - BBVA Banco Francés S.A. Gabriel Ribisich - Banco Santander Río S.A. Alternate Coordinating Secretary Fabio Saraniti - Banco Itaú Argentina S.A. LEGAL AFFAIRS Coordinating Secretary Analía Schnaidman - HSBC Bank Argentina S.A. Alternate Coordinating Secretary Fabián Montiel - BBVA Banco Francés S.A. BANK AUDITING Coordinating Secretaries Diego Gagliano - Standard Bank Argentina S.A. Eduardo José Zerega - BBVA Banco Francés S.A. RETAIL BANKING Coordinating Secretary Pío Rueda - Banco Santander Río S.A. INSURANCE BANKING Coordinating Secretary Enrique Schneider - American Express Bank 1 BASEL II Alternate Coordinating Secretary Adrián Sciarreta - Standard Bank Argentina S.A. TRUSTS Coordinating Secretary Atilio Serenelli - HSBC Bank Argentina S.A. 1 Until October 2011

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ANNUAL REPORT 2011

TAXATION Coordinating Secretary Luis Irigoyen - BBVA Banco Francés S.A. Alternate Coordinating Secretaries Fernando Alesón - Citibank N.A. Claudio Di Lello - HSBC Bank Argentina S.A. ACCOUNTING AND REPORTING STANDARDS Coordinating Secretary Juan José Pardo - HSBC Bank Argentina S.A. Alternate Coordinating Secretary Jorge Achával - Banco Santander Río S.A. TRANSACTIONS Coordinating Secretary Pedro Telwak - Banco Santander Río S.A. Alternate Coordinating Secretary Javier Michelesi - BBVA Banco Francés S.A. FOREIGN TRADE TRANSACTIONS Coordinating Secretary Luis Martínez - HSBC Bank Argentina S.A. Alternate Coordinating Secretaries Alejandro Chiaradía - BBVA Banco Francés S.A. Luis Demarco - Banco Santander Río S.A. SECURITIES TRANSACTIONS Coordinating Secretary María Rosa Eiras - Standard Bank Argentina S.A. PREVENTION OF BANK CRIME AND FRAUD Coordinating Secretary Roberto Veltri - Citibank N.A. Alternate Coordinating Secretary Roberto Fernández Latorre - Standard Bank Argentina S.A.

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PREVENTION OF MONEY LAUNDERING AND TERRORIST FINANCING Coordinating Secretary Graciela F. Rosich - Standard Bank Argentina S.A. Alternate Coordinating Secretary Leonardo Vio - Banco Santander Río S.A. SMALL AND MEDIUM SIZED COMPANIES Coordinating Secretary Hernán Caballero - Banco Santander Río S.A. LABOR RELATIONS Coordinating Secretary Daniel Agudo - BBVA Banco Francés S.A Alternate Coordinating Secretaries Sergio Scattolini - Banco Santander Río S.A. 2 Diego Sanz - Banco Santander Río S.A. 3 RELATIONS AND COMMUNICATIONS Coordinating Secretary Oscar Correa - Banco Santander Río S.A. Alternate Coordinating Secretary Alejandro Cerviño - Citibank N.A. CREDIT RISK Coordinating Secretary Darío Mangano - HSBC Bank Argentina S.A. BANK SECURITY Coordinating Secretary Daniel Alí - Banco Itaú Argentina S.A. Alternate Coordinating Secretary Roberto Veltri - Citibank N.A.

2 Until July 2011 3 Until December 2011

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TECHNOLOGY, ORGANIZATION AND SYSTEMS Coordinating Secretary To be appointed SUBCOMMITTEE OF OPERATIONAL RISK Coordinating Secretary Ismael Albert - Standard Bank Argentina S.A. Alternate Coordinating Secretaries Santiago Loza - Banco Santander Río S.A. Fernando Lapajne - HSBC Bank Argentina S.A. SUBCOMMITTE OF TREASURER Coordinating Secretaries Julián Bianchi - Banco Santander Río S.A. Rubén Pécora - Citibank N.A. Alternate Coordinating Secretaries Oscar Baravalle - HSBC Bank Argentina S.A. Alejandro Casola - Banco Itaú Argentina S.A. IT SECURITY SUBCOMMITTEE Coordinating Secretary Enrique Rubinstein - Standard Bank Argentina S.A.

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REPRESENTATIVES BEFORE INSTITUTIONS NATIONAL CUSTOMS ADMINISTRATION Customs Consulting Board Luis Martínez - HSBC Bank Argentina S.A. (Incumbent) Salvador Ilaria - Deutsche Bank S.A. (Alternate) ARGENTINE SOYA ASSOCIATION (ACSOJA) Pablo Bullrich - Banco Santander Río S.A. ARGENTINE BANK MARKETING ASSOCIATION (AMBA) Claudio Cesario - ABA President (Member) CENTRAL BANK OF ARGENTINA Argentine Interbank Committee on Means of Payment Directors: Pedro Telwak - Banco Santander Río S.A. Javier Aníbal Michelesi - BBVA Banco Francés S.A. Technical Committee: Incumbents Pedro Telwak - Banco Santander Río S.A. Javier Aníbal Michelesi - BBVA Banco Francés S.A. Alternate Juan Carlos Aguilera - Standard Bank Argentina S.A. Commercial Committee: Incumbent Julia Langwagen - Standard Bank Argentina S.A. Alternates Daniel Pokay y/o Pío Rueda - Banco Santander Río S.A. Legal Committee: Incumbent Analía Schnaidman - HSBC Bank Argentina S.A. Sub-committe on Fixed Term Deposits: Incumbent Ricardo Leggieri - Standard Bank Argentina S.A. Alternate Daniel Víctor Martínez - Banco Santander Río S.A. Sub-committee on Electronic Means of Payment: Incumbent Renato Otmarich - Banco Santander Río S.A. Alternate Carlos Daniel Bestilleiro - BBVA Banco Francés S.A.

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ANNUAL REPORT 2011

Sub-committee on Direct Debit: Incumbent Julia Langwagen - Standard Bank Argentina S.A. Alternate Christian Ruiz - Banco Santander Río S.A. Sub-committee on Transfers: Incumbent Flavio Jesús Boncore - Standard Bank Argentina S.A. Alternate Christian Ruiz - Banco Santander Río S.A. Sub-committee of Treasurers: Incumbents Julián Bianchi - Banco Santander Río S.A. Rubén Osvaldo Pécora - Citibank NA. Alternates Carlos D’Elío - BBVA Banco Francés S.A. Alejandro Casola - Banco Itaú Argentina S.A. BUENOS AIRES STOCK EXCHANGE Board Claudio Cesario - ABA President SELF-REGULATING BOARD - BANK PRACTICES CODE María Elena Deligiannis - ABA Technical Manager (Incumbent) Rubén Mattone - ABA Communications and Institutional Relations Manager (Alternate) STRATEGIC PLANNING BOARD OF THE GOVERNMENT OF THE AUTONOMOUS CITY OF BUENOS AIRES (CoPE) Guillermo Glattstein - Banco Santander Río S.A. Subcommittee on Tax Reform Natalia Miranda - ABA Committees Coordinator ARGENTINE EPISCOPATE "Turning Inhabitants into Citizens" Forum - Justice and Peace Committee Claudio Cesario - ABA President (Incumbent) Rubén Mattone - ABA Communications and Institutional Relations Manager (Alternate) FELABAN Incumbent Governor in Argentina: Claudio Cesario - ABA President

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ANNUAL REPORT 2011

AFIP SOCIAL SECURITY PARTICIPATION FORUM Natalia Miranda - ABA Committees Coordinator (Incumbent) Pablo Cattarelli - Banco Santander Rio S.A. (Alternate) AFIP TAX PARTICIPATION FORUM Luis Irigoyen - BBVA Banco Francés S.A. (Incumbent) Lisandro López - Tax Advisory Firm (Alternate) EXPORT.AR FOUNDATION Claudio Cesario - ABA President (Alternate) Small and Medium - Sized Companies Board Incumbent Members Arnaldo Prieto - BBVA Banco Francés S.A. Marcelo Santoro - Banco Santander Río S.A. Alternate Member Andrea Rupp - ABA Committees Coordinator ARGENTINE FEDERAL POLICE FOUNDATION Board of Directors Claudio Cesario - ABA President (Member) MERCOSUR Group of Mercosur Bank Associations María Elena Deligiannis - ABA Technical Manager Mercosur No. 4 "Financial Affairs" Working Sub Group Financial System Committee María Elena Deligiannis - ABA Technical Manager Andrea Rupp - ABA Committees Coordinator Prevention of Money Laundering and the Financing of Terrorism Committee Natalia Miranda - ABA Committees Coordinator

MINISTRY OF LABOR, EMPLOYMENT AND SOCIAL SECURITY Negotiating Committee of the Collective Bargaining Agreement for the Banking Sector Incumbent Members Daniel Agudo - BBVA Banco Francés S.A. María Elena Deligiannis - ABA Technical Manager Julián Arturo de Diego - Labor Adviser Alternate Member Alejandro Ortiz Quintero - HSBC Bank Argentina S.A.

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ANNUAL REPORT 2011

Follow up Committee on the Solidary Contribution and Union Dues Auditing Agreement María Elena Deligiannis - ABA Technical Manager Diego Sanz - Banco Santander Río S.A. MINISTRY OF INTERNAL AFFAIRS - STANDING COMMITTEE ON BANK SECURITY Daniel Alí - Banco Itaú Argentina S.A. (Incumbent) Roberto Veltri - Citibank N.A. (Alternate) MUNICIPALITY OF GENERAL PUEYRREDÓN - BANK SECURITY COMMISSION Martín Zaballa - Banco Itaú Argentina S.A. UNITED NATIONS GLOBAL COMPACT - BOARD OF DIRECTORS OF THE LOCAL NETWORK Claudio Cesario - ABA President (Incumbent) Rubén Mattone - ABA Communications and Institutional Relations Manager (Alternate) ARGENTINE UNION OF SERVICE ENTITIES (UDES) Claudio Cesario - ABA President (1st Vicepresident) Rubén Mattone - ABA Communications and Institutional Relations Manager (Alternate)

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ANNUAL REPORT 2011

AREAS AND PERSONS IN CHARGE BOARD President Claudio Cesario TECHNICAL MANAGEMENT Manager María Elena Deligiannis Committees Coordination Natalia Miranda Andrea Rupp INSTITUTIONAL RELATIONS AND COMMUNICATIONS MANAGEMENT Manager Rubén Mattone ADMINISTRATIVE MANAGEMENT Manager José Luis Prado ECONOMIST Damián Wilson CONSULTANTS Labour Consultancy: Estudio de Diego & Asociados Legal Consultancy: Estudio Bruchou, Fernández Madero & Lombardi Task Consultancy: Price Waterhouse & Co.

ANNUAL REPORT 2011

LETTER FROM THE PRESIDENT 2011 was marked by a typical election atmosphere, which was naturally reflected in the development of the economy over the year. The pre-election expectations on how the political landscape would unfold after October 26 were mainly felt in the foreign exchange market. As it usually happens in the run-up to presidential elections, there was pressure by individuals and companies towards the dollarization of bank portfolios. Authorities reacted swiftly to such pressure and, with the support and follow-up of banks, adopted a number of measures intended to prevent larger effects. Added to our domestic environment was a complex international landscape, particularly in the euro-zone, where some States with serious financial problems sparked uncertainty about the global economic outlook for fear of potential "contagion" effects. However, the Latin American region so far has either come away unscathed or proved partially insulated from such effects; as a result, much of the activity performed by global corporations was targeted to these emerging economies. The performance of the Argentine financial system in 2011 should therefore be analyzed in this context: despite the challenges raised by various international crises and domestic problems, the system has successfully managed to overcome them. The system’s sound health is based on the absence of currency mismatches and on low household and corporate debt levels. In fact, the debt ratio with the public sector was one of the lowest ever recorded, just 10% of all assets (3% in private banks), which made it possible to channel any excess to increase funding to the private sector, a situation which has been observed over the last years. This increase should not be underestimated as it was funded with deposits that, on average, did not exceed 35 days. Looking forward, banks are faced with the challenge of fostering savings and making them grow. This objective is vital and necessary for the development of the country. If savings do not increase, credit to the private sector is unlikely to continue growing. More importantly, there can be no credit without savings; if there is no credit, then investments cannot be promoted and Argentina becomes less competitive and fails to pursue its development path. Savings and credit as a percentage of GDP are still very low and far from the levels observed in comparable countries of the region. Hence, this situation is an opportunity for growth, in line with the objective of sustainable economic development. Yet, this savings growth process will unfold over time and so long as it is understood that deposits are owned by depositors who, in placing their money with the bank, should get a yield compared to other investment opportunities, or at the very least, should find capital preservation. A second significant challenge is to increase bank service penetration, which has the potential to fight against the informal economy; if unsuccessful, an important segment of the population is deprived of the benefits of bank services. ABA is strongly committed to this

ANNUAL REPORT 2011

objective and has been actively working with the Central Bank to such end. In 2011, the entity submitted to the Argentine monetary authority a paper that is based on a study of the geographic outreach of the financial system in the country. The study proposes a number of alternatives to further bank service penetration that go beyond the opening of traditional branches. The proposal promotes channeling certain bank services through external merchants, mini-agencies, mobile branches, etc. in order to provide such services to less densely populated areas, and to give the public immediate direct access without time restrictions in densely populated areas. This scheme -which might be implemented shortly- supplements and enhances the tools already promoted by the Central Bank, such as the universal free account, the financial payment check, and zero or low cost bank transfers. ABA proposal draws on successful experiences in Brazil, Peru and Colombia. As a matter of fact, the drive towards bank service penetration into underbanked or unbanked segments is one of the three major commitments I assumed when I succeeded Mario Vicens as president of ABA on April 27. The other two commitments are built on the importance of contributing to better understand the problems that affect the corporate sector in the country and on deepening our professional support towards shedding light on and addressing sector related issues. In this sense, we at ABA have interacted actively with other associations of the corporate sector not only to tighten institutional relations but also to offer sector-wide solutions and specific knowledge of regulations. As regards efforts to enhance legislative actions, the contributions made towards anti-money laundering and counter terrorism financing legislation are especially noteworthy. ABA bank members have more than 20 years international experience in this field, and many of them apply more stringent rules in this area due to internal bank policies. As a matter of fact, there is a lot they can contribute in this field. By way of example, a consensus was reached with lawmakers in order to extend from 30 to 150 days the period required by law to report suspicious transactions; this extension was key to making bank controls more operationally efficient. The House of Deputies has yet to approve an amending bill -already approved by the Senate- which introduces the necessary adjustments to add predictability and transparency to regulations in force. Such amendments were the result of collaborative work between ABA and other trade and professional associations and are mostly intended to avoid duplication of penalties which are borne by the person required to report and the compliance officer, the need to apply a progressive penalty system, eliminate the obstacles imposed to car manufacturers and to clarify what the role of accountants and notaries public should be in this respect. On the other hand, as regards the search for consensus called for by the Argentine President in the Industrial Conference at the UIA (Argentine Industrial Association), it should be

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noted that ABA has renewed its commitment to continue working with authorities so that savings and credit growth become key drivers of the country’s sustainable development. We, at ABA, firmly believe that a country’s economic development should be built on an adequate interaction of the industrial, agricultural, service, bank and other sectors, as well as the indispensable role played by the labor sector.

Claudio Cesario

President

ANNUAL REPORT 2011

Index

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Chapter 1: Performance of the Argentine Economy .................................................... 1 Introduction ............................................................................................................................................. 1 The Macroeconomic Environment ................................................................................................... 2 The Balance of Payments ..................................................................................................................... 2 Foreign Trade .......................................................................................................................................... 2 Employment and Wages ....................................................................................................................... 3 Government Accounts ......................................................................................................................... 3 Government Debt .................................................................................................................................. 3

Chapter 2: Monetary Policy and Changes in Central Bank Regulations .................... 5 Monetary Policy Performance ............................................................................................................. 5 Interest Rates ........................................................................................................................................... 5 Central Bank Reserves ........................................................................................................................... 6 Monetary Base Development .............................................................................................................. 7 Outcome of the 2011 Monetary Program ........................................................................................ 7 Monetary Program 2012 ....................................................................................................................... 8 Major Regulatory Changes ................................................................................... 9

Increase in the Coverage Limit of the Deposit Guarantee Insurance .............................. 9 New Regulations on the Valuation of Government Securities .......................................... 9 Immediate Fund Transfers ....................................................................................................... 10 Guidelines for Financial Entities Governance ..................................................................... 10 Risk Management Guidelines for Financial Entities .......................................................... 11 Truncated Checks and Image Transmission - National Payment System .................... 11 Financing Limit for Micro-Businesses ................................................................................... 12 Payment of Salaries, Social Security Benefits and Social Aid Plans ................................ 12 Access to the Single Free Exchange Market ........................................................................ 12

Chapter 3: The Financial System ............................................................................... 14 Introduction ........................................................................................................................................... 14 Financial System Performance ........................................................................................................... 15 Share of Loans and Deposits by Group of Entities ..................................................................... 19 Financing for SMEs ............................................................................................................................. 19

Statistic Appendix: Tables 1 to 49 .............................................................................. 22 EXHIBIT ................................................................................................................... 72

Principal Banking, Exchange and Financial Policy Measures ..................................................... 72

Chapter I: Performance of the Argentine Economy

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Chapter 1: Performance of the Argentine Economy Introduction The economic path followed by Argentina by the end of 2010 continued in the first half of 2011. Output continued to grow, coupled with a decline in the unemployment rate and an external trade surplus. On the other hand, the general public followed an increasing trend toward dollarization of their investments, which boosted bank deposits in foreign currency. On the political front, there were open primary elections for the nomination of the candidates to run for the elections that would be held in October. Both during primary elections and in the October elections, the Frente para la Victoria (governing party) won the elections and Cristina Fernández de Kirchner was elected for a second term, together with Amado Boudou (who had been Minister of Economy and Finance until then), as Vicepresident. When Boudou took office as Vicepresident, Hernán Lorenzino -who had been Secretary of Finance- was appointed to head the Ministry of Economy. As a result of the outcome of the elections, the governing party obtained most seats at both houses of Congress, which helped speed up certain laws after they took office. Before yearend, many bills were enacted -all of them during extraordinary sessions called by the Executive Power, including the 2012 Budget Act, the extension of economic emergency law, extension of the tax on bank credits and debits (financial transactions tax), the excise tax on cigarettes and export duties on hydrocarbons, the amendment to the Criminal Code (as part of the fight against money laundering), the power to modify through an executive order the tax free allowance for income tax purposes, and the declaration of public interest for the manufacturing and marketing of newsprint paper. On the national front, the Frente para la Victoria maintained its leadership in many provinces, while in other districts, such as the City of Buenos Aires, San Luis and Santa Fe, candidates of opposing parties were elected. Hence, the new term of office which started on December 10 reaffirmed the economic path that had been pursued. Internationally, global economic activity slowed down more than expected. In many developed economies, financial markets were weak and some euro zone countries had difficulty obtaining financing. Against this backdrop, the Federal Reserve announced that it would keep interest rates low at least through 2013. In the Euro zone, actions were taken including medium term liquidity facilities offered at a low cost by the European Central Bank, Greece debt exchange with private sector bondholders and the anticipated implementation of the European Stability Facility. On the other hand, in the second half of the year, commodity prices fell although they ended the year in positive territory, compared to the end of the previous year. These conditions bode for more uncertainty in the international landscape over the following year.


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The Macroeconomic Environment Based on recent preliminary data, the GDP for 2011 grew by 8.9%, slightly below the 9.2% rate in 2010, but above the growth rate experienced in prior years. Thus, GDP growth has averaged an annual 7.7% since 2002. Private consumption continued to be the main driver of aggregate demand, although in the last quarter of the year, its growth rate declined on a year-on-year basis. Yet, private consumption accounts for 78.9% of the GDP. On the other hand, gross fixed investment increased to a share of 24.5% of GDP although it also slowed in the fourth quarter of the year. Industrial output -as measured by the Industrial Monthly Estimate prepared by the INDEC-increased by 6.5% over 2011, below the 9.7% of 2010 but above the 0.1% of 2009. Installed capacity utilization reached its high since 2002, with an average 78.7% in 2011, above the 77.7% recorded in 2010. Yet, it should be noted that performance has been mixed among sectors both in terms of installed capacity utilization and their development over the year. The Balance of Payments The current account broke even in 2011. Even though trade in goods ran a surplus of USD 13.5 billion, the services and income subaccounts recorded deficits of USD 2.23 billion and USD 10.82 billion, respectively. The capital and financial account recorded a deficit of USD 2.2 billion, mainly due to capital flight from the non-financial private sector in the amount of USD 10.26 billion. Finally, despite the controls established by the AFIP (Argentine Revenue Administration) to access the exchange market, the Banco Central reserves shrank by USD 6.108 billion, particularly in the second half of the year. Foreign Trade Argentine exports increased by 24% to USD 84.3 billion between 2010 and 2011. Unlike the previous year, most of the increase was attributable to a combined rise in prices, which contributed to a 16% increase, whereas the volume exported has contributed the other 6%. Imports grew by 31% to USD 73.9 billion. This increase results mostly from a rise in the quantities imported (19%) and, to a lesser extent, from price increases (10%). Consequently, the balance of trade for the full year stood at a USD 10.3 billion, an 11% decline on the previous year. As regards foreign trade with different trade blocs, it should be noted that the major regional trade partners (both related to imports and exports) are members of the MERCOSUR, where the balance of trade recorded a USD 1.9 billion deficit. They are followed by the major Asian countries (with a deficit of USD 2.4 billion), the European Union (with a surplus worth USD 2.6 billion) and the NAFTA (deficit of USD 3.2 billion). Also worthy of


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note is the significant trade surplus with Chile (USD 3.66 billion), which accounts for a 35% of the overall balance for 2011. Employment and Wages The sustained increase of business activity proved decisive in supporting a high level of employment. In the fourth quarter of the year, the employment rate (percentage of the working age population currently employed) increased to 43.0%, slightly above the level recorded at the end of last year. On the other hand, unemployment -which stood at 6.7% down from 7.3% in 2010- was among the historically lowest levels. Underemployment was 8.5%, slightly above the 8.4% level recorded at the end of 2010. According to the index prepared by the INDEC, there was a noticeable improvement in average wages. The general wage level increased by 29.5% y-o-y, the largest increase since 2011. Unlike previous years, wages in the formal private sector grew at the fastest rate (35.6%) followed by the informal private sector (32.8%) and the public sector (9.7%). On the other hand, based on the data gathered from the Integrated Pension Scheme as of the third quarter 2010, there was an increase of 31.3% in total remuneration of employees contributing to the system, which means an increase of the monthly salary to ARS 5,318 for the period. Government Accounts In 2011, the national tax revenue (excluding nontax revenue) reached 30.0% of the GDP against 28.4% for the prior year. In nominal terms, total tax revenues increased by 31.8% per year, down from 34.4% in 2010. Especially worthy of note was the increase in VAT (32.5%) and income tax (41.7%) revenue. Both taxes account for 78% of the Argentine Tax Administration’s revenue, excluding the social security system. Revenue from the tax on bank debits and credits increased by 34.6% and represents 6.7% of overall tax revenue. Current expenditure increased by 36.5% (against 30.4% last year), thus recording the largest rise over the past years. The primary surplus narrowed to ARS 4.921 billion (0.3% of GDP) from ARS 25.10 billion in 2010. The financial result showed a deficit of ARS 30.66 billion, against a surplus of ARS 3.068 billion in 2010. Government Debt Until the third quarter, government debt amounted to USD 175 billion (excluding holdout debt which was not tendered in 2005 and 2010 debt exchanges), which means an increase of almost USD 11 billion in the period (6.7%). Including holdout debt, total government debt would rise to USD 186.5 billion.


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Thirty eight per cent of total debt is denominated in pesos (21% is CER-indexed debt while most of the other 17% is floating-rate debt). Forty nine per cent is denominated in US Dollars followed by an 11% which is denominated in Euros. Government debt average life is 11.1 years, with government securities and Treasury bills averaging 13.2 years. On the other hand, the weighted average interest rate of non-CER indexed debt amounted to 14% while CER-indexed debt was priced at 3.4%. Meanwhile, the average interest rate on USD and EUR denominated debt stood at 3.5% and 4.8%, respectively. It should be noted that a major part of debt maturing in 2011 was repaid out of the proceeds of Non-Transferable Bills in exchange of free available international reserves of the BCRA that were used to fund the Argentine Debt Repayment Fund created by Executive Order 2054/2010 and the Fund for the service of debt owed to international organizations (Executive Order 276/2011) in the amount of USD 7.504 billion and USD 2.212 billion, respectively. During the first quarters of the year, USD 6.719 million of such funds was used for debt servicing. It should also be noted that 52.5% of debt is held by the public sector, such as the Anses (through the Guarantee Fund for the Sustainability of the Argentine Integrated Retirement System), the Central Bank and the Banco de la Nación Argentina. Based on the amount of debt, it is followed by the private sector that holds 33%, while the remaining debt is held by bilateral and multilateral organizations and the Paris Club.

Chapter II: Monetary Policy and Changes in Central Bank Regulations

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Chapter 2: Monetary Policy and Changes in Central Bank Regulations Monetary Policy Performance Year 2011 was featured by growth in loans to the private sector, which in the first half was driven by an increase in private sector deposits, a trend seen in late 2010. However, there was a flattening out in the second half, with the rate of growth of private sector deposits declining from around 35% per annum in the first half to 25% in the second half. This trend was seen both in term deposits and in savings accounts. On the other hand, loans to the private sector grew at a somewhat higher rate compared to deposits. In 2011, total loans to the private sector increased by 48.1%, led mainly by business credit facilities which grew around 60% on a year basis. Consumer loans (both personal and credit card loans) also had a dynamic performance although at lower rates and for smaller amounts, compared to commercial loans. Finally, there was a notable recovery in secured loans (both mortgage and pledge loans) which reached annualized growth rates of up to 50%, and ended the year with rates of approximately 45%. It should be noted that the higher growth of loans to the private sector vis-a-vis growth in private sector deposits was sustainable thanks to the liquidity margins in the financial system. However, in the fourth quarter, the lending capacity of private sector deposits fell short of granted loans, which led to less available credit and higher interest rates, with the consequent accommodation of loan growth to the actual resources available in the financial system. During the last two months of the year, the financial system was once again faced with and had to weather challenging events that affected some variables involved with its business. The prior validation requirement imposed by the Argentine Revenue Administration (AFIP) in order to have access to the foreign exchange market led to a mass withdrawal of foreign currency deposits by the non-financial private sector. Despite the withdrawal of almost one fifth of deposits in two months, the system was not seriously affected, thanks to the coordinated work of financial entities and the Central Bank, who provided the necessary funds to face such withdrawals. Since 2002, foreign currency resources can only be lent to debtors who generate revenues in the same currency; thus, the bank system does not experience currency mismatches, although term mismatches are possible. Given the liquidity of this segment, mainly through deposits held by financial entities with the Central Bank, it was possible to honor all such withdrawals in due time and course, which was fundamental for this trend to revert. Interest Rates In the first half of the year, interest rates hovered around the same levels seen in late 2010. However, there were two facts that changed this situation. On the one hand, loans to the private sector increased at a faster rate than deposits, and thus the excess liquidity was absorbed. On the other hand, the National Administration of Social Security (Anses)


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increased the resources of the Guarantee Fund for Sustainability invested in term deposits with banks. However, effective August, the Anses decided to modify the structure of investments by reducing deposits with banks, mainly private sector entities. Both factors caused a shortage of funds which led banks to pursue a more aggressive approach to deposit-taking, translating into increased rates on deposits. Such increase was mainly seen in the wholesale sector and weighted on the BADLAR1 rate of private sector banks, which rose from around 11% p.a.to more than 20% p.a. in the last quarter of the year. Rates on term deposits also increased from around 9.5% p.a. in the first half of the year to 14/15% p.a. in the last quarter. This increase tickled through, though to a lower degree, to the lending rates. In the case of loan advances to companies for up to ARS 10 million, rates rose from 11% p.a. in the first half of the year to more than 23% in November, but then started to decline. As regards new loans granted to the non-financial private sector, rates rose with respect to the average recorded a year earlier as a result of increases over the last months of the year.

INTEREST RATES ON LOANS IN PESOS In Annual Nominal %

Type of Loan Year

2003 Year 2004

Year 2005

Year 2006

Year 2007

Year 2008

Year 2009

Year 2010

Year 2011

2011-2010 Change

Overdrafts 40.6 16.3 15.8 17.1 17.4 21.7 23.1 19.2 20.3 1.1

Other advances 24.7 11.6 10.1 12.7 15.3 20.8 23.4 19.2 18.4 -0.9

Promissory notes 17.7 10.8 10.3 12.6 14.1 19.3 19.8 15.2 16.5 1.3

Mortgage loans 18.0 12.0 11.3 11.7 11.2 12.8 15.8 14.4 14.9 0.4

Pledge loans 19.7 13.3 10.3 9.9 11.3 17.5 22.2 17.4 19.1 1.7

Consumer loans 54.3 30.4 27.3 26.5 26.0 28.3 31.1 30.7 31.0 0.3

Credit cards 45.9 29.7 25.9 24.7 25.7 30.8 34.3 30.3 30.6 0.2

Central Bank Reserves By the end of 2011, the Central Bank reserves reached around USD 46 billion, which means a USD 5.8 billion decline over the year. Even though there were net purchases in the amount of USD 3.3 billion, mainly derived from the trade balance, there was also a decline of USD 9.4 billion, which mostly pertain to resources transferred to the Argentine Debt Repayment Fund (created by Executive Order 298/10).

1 BADLAR: Rate on term deposits with denominations higher than one million pesos, for a term of 30 to 35 days.


ANNUAL REPORT 2011

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The flight of foreign currency deposits referred to at the beginning of this chapter led to a decline of USD 6.4 billion over the last quarter of the year, even though this trend had reverted in the last days of the year. Monetary Base Development The monetary base increased by 39% over 2011, which represents approximately 62.5% million. The major development factor was the national public sector, both through temporary transfers and from the transfer of resources intended to fund the Argentine Debt Repayment Fund, which overall explains the 52% annual change in the monetary base. The other significant factors were the bills and notes issued by the Central Bank. Throughout the year, the Central Bank raised ARS 4.2 billion on a net basis; after paying the relevant interest, the effect was almost ARS 15 billion (which accounts for a 24% change in the monetary base). The net purchase of foreign currency to the private sector led to an increase in the monetary base of ARS 13.3 billion, or 21%. Sixty per cent of the increase in the monetary base pertains to cash held by the public, which means a 33% rise in this indicator. The remaining 40% came to form part of financial institutions reserve requirements, whether in the form of cash held at the branches to maintain the technical reserve requirement or in the form of deposits with the Central Bank. Outcome of the 2011 Monetary Program In 2011, the Central Bank met the Monetary Program targets, both on a quarterly and annual basis. The M2 recorded an increase of 29% over the year, higher than the figure established in the base scenario which foresaw a rise of 27.9% over the period. Thus it falls within the range defined by the monetary authority. In turn, the M2 for the private sector increased 30.7% over the year, in excess of the estimates for the base scenario, but within the established guidelines. The above cited increase in loans to the private sector in national currency (49.2%) over the year, driven mainly by commercial facilities, helped foster growth of monetary aggregates. Moreover, the Central Bank continued to call for bids under the Bicentenary Program for Production Financing and by the end of 2011 ARS 4.11 billion had been assigned to financial entities, ARS 1.943 billion of which have already been disbursed. Interventions by the monetary authority in the FX market accumulated purchases for USD 3.335 billion. The public sector also drove the increase in monetary aggregates, both through Temporary Transfers granted to them and through the transfer of earnings from the monetary authority to the Treasury. Growth in term deposits by the private sector accelerated to 31.8% p.a. by the end of 2011, and contributed to the M3 increase, which expanded by 30.4% over the year.


ANNUAL REPORT 2011

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Monetary Program 2012 The Central Bank was based on seven major lines of action in devising the Monetary Program 2012: 1) to control of monetary aggregates; 2) to increase credit to production sectors; 3) to pursue a policy of managed flotation of the exchange rate; 4) to build up international reserves; 5) to establish a prudential macroregulation of short-term financial flows; 6) to pursue regulation and supervision of the financial system; and, 7) to promote universal access to financial services. It should be noted that the Monetary Program 2012 was performed at the end of 2011 when the new Central Bank Charter had not yet been approved. The base scenario was prepared using the main economic variables included in the 2012 National Budget Bill. The scenario foresees global growth slowing, particularly in the developed economies, although it did not resemble the scenario in 2008. This means moderate growth is expected in business activity and trade. The scenario also factors in potentially high volatility of commodities and other assets, although the probability of a significant fall off current levels is low. A more pessimistic scenario -compared to the base case used in the Monetary Program- estimates that major trading partners may actively apply policies to foster business activity. In this context, the local level of business activity continues to be driven by the domestic market, supported by the continued increase in the wage bill (as a result of both a higher payroll and higher salaries), investment, and various economic policy measures intended to sustain the level of business activity. A lower level of external asset accumulation is expected in a context of continued household and corporate financing. The investment rate would stand at around 25% of GDP, following a higher reinvestment of profits. GDP would grow between 4.5% and 7.5%, with growth in industrial activity (as a result of import substitution), agriculture and the service industry. The GDP deflator index would increase between 12% and 17% while the CPI computed by the Index would rise 9.2%, as indicated in the 2012 Budget Bill. On the other hand, exports would rise 7% while imports would grow 10%, with a trade balance of approximately USD 8.9 billion. Credit to the private sector would grow by around ARS 80 billion, which would lead to high growth albeit at a lower rate than 2011. Moreover, net FX purchases are estimated at USD 9 billion, together with the transfer of the Central Bank 2011 earnings to the Treasury and Temporary Transfers. Moreover, the 2012 Budget provides for the use of reserves for repayment of government debt in a maximum amount of USD 5.6 billion. Monetary easing resulting from these factors would be partly sterilized through repos and the placement of LEBAC and NOBAC (bills and notes issued by the Central Bank) in an amount estimated at approximately 30% of FX purchases. In turn, the calls for bids would continue under the Bicentenary Program for Financing Productive Activities, at the same rate seen in the second half of 2011.


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Hence, the base scenario set an M2 growth target of 26.4% in 2012 (26.2% in M2 of the private sector), with a performance range of ±4%.

2012 MONETARY PROGRAM – BASE SCENARIO (In Million Pesos and % Change)

Target Total M2 M2 Private

Sector

Mar. 2012

Jun. 2012

Sep. 2012

Dec. 2012

Dec. 2012

Monthly average balance (in millions ARS) 265,452 281,433 297,122 322,351 285,189

Quarterly change 6.2% 6.3% 4.6% 7.0% …

Rate of growth against Dec-10 (in %) 6.2% 12.9% 18.1% 26.4% 26.2%

Nominal values are adjusted considering final values for 2011.

To verify compliance with the Monetary Program, a ±4% performance range will be considered in respect of the monthly averages of the M2 and M2 of the private sector under the Base Scenario.

As regards M2 of the private sector, only annual targets are set. Major Regulatory Changes Increase in the Coverage Limit of the Deposit Guarantee Insurance (Communication "A" 5170) In early 2011, the Central Bank decided to increase the coverage limit of the Deposit Guarantee Insurance by ARS 30,000 to ARS 120,000. The prior increase had been set in 1998. Following this decision, the coverage amount approximates that of other countries in the region, such as Uruguay or Brazil. New Regulations on the Valuation of Government Securities (Communication "A" 5180/5188) Effective March 2011, the Central Bank established new valuation rules applicable to government securities, which replaced all valuation criteria then in force, and allowing financial entities to start applying the new criteria back to balance sheets closed as of December 2010.


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The new regulations defined two asset groups: those accounted for at fair market value, and those accounted for at acquisition cost plus yield, thus making a distinction between assets used in trading and those used in long-term investments. Basically, government securities (including LEBACS and NOBACS) whose volatility and present value are published by the Central Bank, and the trusts who hold them as underlying assets, shall be accounted for at fair market value. An allowance not to exceed 10% may be established if the Board of Directors of the entity has a policy in place in this respect. In addition, the asset group valued at acquisition cost plus yield includes medium term and long term securities held to maturity, such as loans and government bonds to be held to maturity. Should the financial entity record a tax loss as a result of applying the new valuation criteria, entities may choose to defer such loss in 60 monthly equal and consecutive installments. Immediate Fund Transfers (Communication "A" 5194/6) For the purpose of reducing the use of cash, the Central Bank provided that financial entities should adopt the necessary procedures for their clients to carry out immediate fund transfers through ATMs and via Internet ("home banking"). In the case of peso transactions, this possibility became effective as from April 25 2011, where transfers were allowed in the amount of ARS 10,000 per day, per account through ATMs, and ARS 50,000 via home banking. The deadline for implementation of USD transfers was May 31, 2011, with maximum amounts of USD 2,500 in the case of ATMs and USD 12,500 via home banking. These transactions may be carried out 24 hours a day, provided they are performed between same denomination accounts; they are credited immediately during working days, between 8 a.m. and 6 p.m. Financial entities may extend business hours as well as allow transfers of higher amounts. Guidelines for Financial Entities Governance (Communication "A" 5201) Effective 2012, banks are required to have a corporate governance code in line with the guidelines established by the Central Bank, which are based on best practices applied in developed countries. The corporate governance code should be entity-wide as an integral part of risk management, taking into account the guidelines established by regulations, depending on the size, complexity, economic weight and risk profile of the financial entity and economic group it belongs to.


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The corporate governance code defines how the Board of Directors and Senior Management of a financial entity manage their business and activities, all of which has an impact on how they:

Define the policies to meet corporate objectives.

Ensure that the entity’s activities are compliant with the security and solvency levels required and with applicable rules and regulations.

Define the risks to be assumed by the entity.

Protect the interests of depositors.

Are accountable to shareholders and take into account other relevant stakeholders’ interests.

Conduct their daily operations.

The regulations establish the features that should be met by the Board, Senior Management, committees, internal and external audits, incentive policies to employees, other personnel, other organizational policies. Risk Management Guidelines for Financial Entities (Communication "A" 5203) The Central Bank also determined that financial entities should have an integral process for risk management in place as from 2012, based on the guidelines set forth in Communication "A" 5203 The guidelines established by the Central Bank are based on best practices applied to risk management, including credit, liquidity, market, interest rate and operational risk, as well as conducting stress tests. Truncated Checks and Image Transmission - National Payment System (Communication "A" 5224) Effective September 30, 2011, the Central Bank decided no image would be transmitted for truncated checks up to ARS 10,000. In other words, financial entities that accept check deposits should retain items and transmit only the relevant electronic information to the Clearing House when the amount does not exceed ARS 10,000. In the event of checks for larger denominations, front and back images of the items are to be transmitted.


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Financing Limit for Micro-Businesses was Increased from ARS 15,000 to ARS 30,000 (Communication "A" 5226) The Central Bank raised from ARS 15,000 to ARS 30,000 the maximum outstanding principal for loans to micro-businesses, that is, loans granted to low-income individuals to meet their cash needs related to productive, commercial and service activities, training of micro-entrepreneurs and funding to be applied to improvement of single family home. Payment of Salaries, Social Security Benefits and Social Aid Plans by the National Government (Communication "A" 5231, implementing Act 26,704) The Central Bank issued Communication "A" 5231 implementing Act 26,704 and regulated the operation of free accounts for payment of social benefits by the Argentina Integrated Social Security System, the Non-Contributory Pension System, and for payment of salaries, pensions or social security benefits by the provinces of the City of Buenos Aires. In the case of payroll and social security accounts, withdrawals shall be made at the counter, through ATMs, home banking transfers, debit card purchases, etc. It should be noted accountholders may withdraw money through ATMs operated throughout the country by any financial entity, with no limits on withdrawal amounts (except where expressly agreed upon for safety reasons and/or as a result of equipment operational restrictions), number of withdrawals, or any distinction between clients and non-clients. A semi-annual statement of account will be issued for free including the detailed activity of the account; it is to be sent to the accountholder’s address unless otherwise expressly indicated by the account-holder. Additionally, the ATM system of the depository financial entity shall provide without cost a printout including the balance of the account and the last ten transactions, and a copy of the social security payment receipts for the amounts credited to the account over the past two months, if so required by the Anses or any other payment administration entity. In the savings accounts for payment of social aid plans or programs, only universal allowance per child may be credited (Dec 1602/09 or benefits from social aid programs implemented by the National Government or other jurisdictions (sections 3 and 4 of Act 26.704), tax refunds, promotions by the financial entity and any other related items, in pesos. Access to the Single Free Exchange Market The most important measures related to the FX market adopted during 2011 are described below:

Obligation to convert export proceeds from the oil, gas and mining industries into local currency (Communication "A" 5235 and Decree 1722/11).


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Repatriation of investments held by insurance companies offshore. (Ruling 36,162 by the Superintendency of Insurance).

Obligation to ask for the AFIP's authorization to acquire FX through financial entities duly authorized by the Central Bank to operate in the FX market. (Communication "A" 5239 and Ruling 3210/11, AFIP).

Requirements were set for the purchase of USD 20,000 per calendar month and new requirements for the repayment of foreign indebtedness (Communication "A" 5198).

External asset accumulation by residents (Communication "A" 5236) Purchase of foreign currency with no specific purpose (Communication "A" 5198).

Advances were no longer necessary prerequisites for loan transactions to be converted into the local FX market and for the conversion of export proceeds into local currency (Communication "A" 5225).

Follow up of the obligation to convert export proceeds into local currency (Communication "A" 5233).

Further requirements were imposed for those acquiring external assets at more than USD 250,000 per annum, who are supposed to show evidence that such resources are financially and fiscally justified (Communication "A" 5236).

More regulations to govern non-resident investments, so that in order to purchase local companies, make capital contributions or invest in real estate, non residents shall have to convert FX into local currency in the local FX market at the time of the investment in order to be able to later repatriate funds without the need to have the Central Bank authorization (Communication "A" 5237).

Chapter III: The Financial System

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14

Chapter 3: The Financial System Introduction The year 2011 saw a steady increase in loans to the private sector, with resources coming from private sector deposits, which are the main funding source for the financial system. In the first six months, deposits grew more strongly only to slow a little in the second half. This situation caused a mismatch between the larger growth in loans and the lower growth in deposits, which fostered an increase in interest rates -mainly on deposits. Towards the end of the year, interest rates went down when bank deposits resumed their growth momentum. In the fourth quarter, the conditions imposed by the AFIP (Revenue Administration) to purchase foreign currency in the FX market led some depositors to withdraw their deposits in foreign currency. The joint efforts of entities and authorities to provide the necessary liquidity in foreign currency in bank branches helped overcome this situation fast and, before yearend, it was almost back to normal.

STAGES IN THE RECOVERY OF THE FINANCIAL SYSTEM

Stage Developments

Year 2002 Late in the year, deposits started to grow.

Year 2003 By mid’ year credit to the private sector started to recover and delinquency rates declined.

Year 2004 Credit to the private sector continued to recover to include the business and housing segments.

Year 2005 First year of profitable income statements. The repayment of restructured deposits was completed.

Year 2006 Medium-term credit grew and the capitalization of profits reinforced banks’ financial strength.

Year 2007 Credit continued to grow despite the international financial crisis; deposit growth resumed and profitability declined.

Year 2008 The international crisis intensified and the government conflict with the agricultural sector complicated the local landscape. At the end of 2008, the government nationalized individual pension accounts and abolished the private pension fund system. Deposits grew more volatile; interest rates went up and there were signs of economic slowdown. The banking system maintained liquidity and solvency levels despite the fast slowdown of business activity.

Year 2009 Liquidity, solvency and profitability of the banking system strengthened despite a slower growth of deposits in the first half of the year. In the second half, interest rates decline due to the recovery of deposits and the weak demand for credit.

Year 2010 Strong growth of loans and deposits as from the second half, even though international developments increased market volatility and despite the situation of financial systems in many euro zone countries.

Year 2011 The fast growth in loans is attributable to the application of the lending capacity resulting from private sector deposits in pesos. On the other hand, the withdrawal of almost 20% of private sector deposits in foreign currency was overcome seamlessly.


ANNUAL REPORT 2011

15

Many initiatives promoted by the Central bank and implemented by financial entities to foster the use of bank payment methods, such as immediate transfers, reduction of costs in online banking, financial payment checks, and free universal accounts, are tools that contribute to improve access to bank services, as well as increase the use of bank instruments by sectors that do not use them regularly.

However, there still are factors that continue to hinder these objectives, such as the tax on bank credit and debits, which is an incentive to continue to operate in cash. In turn, in order for the financial system to continue to provide credit to the private sector, a larger share of domestic savings should necessarily be channeled through the formal markets, as it happens in countries with highly developed banking systems. Financial System Performance The large increase in loans during 2011 was the major driver behind the improvement in the net interest income margin in the financial system. Interest income reached 4.6% of net assets, against 4.3% recorded in 2010. This increase was mainly attributable to the significant rise in loans over the year. Despite this improved interest income, the financial margin of the banking system declined from 8.5% of net assets

Debits / Private Sector Current Accounts Balances and Debits and Credits Tax Revenue

0

5

10

15

20

25

0

0.5

1.0

1.5

2.0

%

1997 1999 2001 2003 2005 2007 2011 2009

Debits / Current Accounts Balances

Tax Revenue /GDP (%)


ANNUAL REPORT 2011

16

in 2010 to 8% in 2011, as a result of lower returns on government securities and the CER and CVS adjustments.

Main Sources of Income and Expenses

Financial System

Description 2010 2011 Change In Millions of Pesos (%)

Financial Margin 35,490 43,665 23.0 Financial Margin excl. Securities 22,041 29,445 33.6 Fee Income 16,089 21,407 33.1 Total Income 51,579 65,072 26.2 Total Income excl. Securities 38,130 50,852 33.4 Administration Expenses -28,756 -36,353 26.4

Private Sector Banks

Description 2010 2011 Change In Millions of Pesos (%)

Financial Margin 21,837 27,234 24.7 Financial Margin excl. Securities 14,373 20,876 45.2 Fee Income 11,345 15,243 34.4 Total Income 33,182 42,477 28.0 Total Income excl. Securities 25,718 36,119 40.4 Administration Expenses -18,819 -23,821 26.6

Given the increase in loans to the private sector in an economic growth environment, the delinquency rate in the financial system's loan portfolio has been kept at all-time lows. The non-performing private sector loan portfolio was reduced to 1.4% with a provisioning level which largely exceeds the delinquency levels, which has supported the solvency of the financial system. As to the financial system performance, bad debt write-offs amounted to 0.7% of net assets, slightly below last year's 0.8%, although they are still higher than the 0.5% recorded in 2006. On the other hand, administration expenses increased by 26.4% over the year, against a 23% increase in the financial margin, and a 26.2% growth in total income. Given that 75% of administration costs relate to both direct and indirect labor costs, most of the increase relates


ANNUAL REPORT 2011

17

to salary increases. The incidence of administration expenses reached 6.7% of net assets for the whole financial system and 7.8% in the case of private sector banks, against 4.1% and 4.6%, respectively, in 2004. As it can be seen over the past years, the banking sector has one of the highest average salaries in the economy. In 2011, the average total salary of banking sector employees topped the ARS 11,000 per month, in an environment of increased hiring. It should also be noted that since late 2004 until late 2011, the financial system added 340 branches, 98 of which were opened over the past year. In addition, in 2011 1,900 ATMs were installed to reach a network of 14700 ATMs. The increase in ATMs is significant since by late 2004 there were little over 6,100 units, which makes an increase of 140% by late 2011.

Number of Branches

3,600

3,700

3,800

3,900

4,000

4,100

4,200

Dec. 2004

Dec. 2005

Dec. 2006

Dec. 2007

Dec. 2008

Dec. 2009

Dec. 2010

Dec. 2011

3,822

3,879

3,923

3,989 4,009 4,035

4,064

4,162


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18

During 2011, the financial system contributed ARS 12.8 billion to public revenue, 52% of which related to income tax, followed by turnover tax, with a 31%. Hence, the lower financial margin coupled with a heavier tax burden and higher administration expenses led to a net income of 2.7% of net assets in 2011, somewhat below 2.8% recorded in 2010. In the private sector banks, net income declined slightly from 3.2% to 3% of net assets, while return on equity amounted to 25.3% for the whole financial system, in line with the 25.6% recorded by private sector banks. The financial system is sound as reflected by the capitalization levels of banking entities which largely exceed the Central Bank requirements. By the end of 2011, the capital-to-risk-weighted assets ratio amounted to 15.5%, which is 62% higher than the regulatory requirement. Finally, it should be noted that as loans to private sector increases as a percentage of bank assets, the exposure to the public sector is reduced. In this respect, at the end of 2011, the public sector (excluding Central Bank notes) only accounted for 10,2% of the net assets of the overall financial system, and only 2,8% in the case of private banks.

Number of ATMs

0

2,000

4,000

6,000

8,000

12,000

10,000

14,000

16,000

Dec. 2004

Dec. 2005

Dec. 2006

Dec. 2007

Dec. 2008

Dec. 2009

Dec. 2010

Dec. 2011

6,121 6,521 7,362

8,377

9,808 11,144

12,806

14,707


ANNUAL REPORT 2011

19

Share of Loans and Deposits by Group of Entities Based on information available as of December 2011, international banks take 37.3% of private sector deposits in the financial system, against 31.6% by state-owned banks. They are followed by local private sector banks with 30.7%, whereas the remaining 0,5% remains with non-banking financial institutions, such as financial companies and credit unions.

As regards loans to the private sector, international banks account for a 34.0% share of the system, whereas local private banks and State-owned banks have 32.2% and 30.3% shares, respectively, with non-banking financial institutions representing the remaining 3.5%. The largest share of international banks is attributable to two factors. For one thing, growth over the past year has been larger than the financial system average. Added to this is the acquisition of a private sector local financial entity by an international bank. Financing for SMEs The new loans granted to legal entities in amounts that are less than one million pesos or dollars are the best proxy available to estimate loans to SMEs and analyze the development of this type of financing. Between 2002 and 2011, it has increased steadily at an average rate of 33% per annum, with broad-based growth across all types of credit facilities. In 2011, such financing has increased by 25% against 2010 and account for 30% of total new loans granted to companies and 18% of new loans as a whole. These figures bear witness to

Deposits of Private Sector December 2011

Loans to the Private Sector December 2011

Local Private Banks 31%

Non-Banking Financial Institutions

0%

International Banks 37%

Public Banks 32%

Local Private Banks 32%

Non-Banking Financial Institutions

4%

International Banks 34%

Public Banks 30%


ANNUAL REPORT 2011

20

the increasing importance that banks are giving to SMEs financial aid, as compared to companies and total financing. Another figure that confirms the importance of SMEs in the whole financial system is that although corporate loans below ARS 2.5 million represent 10% of total financing granted to the corporate sector, they are granted to 95% of the client base (legal persons).

New Loans for Less than a Million Pesos or Dollars Granted to Companies

0

5,000

10,000

15,000

20,000

25,000

30,000

Millions of Pesos

Year 2002

Year 2003

Year 2004

Year 2005

Year 2006

Year 2007

Year 2008

Year 2009

Year 2010

35,000

Year 2011


ANNUAL REPORT 2011

21

Loans to Companies for less than a Million Pesos or Dollars

Dec. 2002 = 100

Dec. 2002

Dec. 2003

Dec. 2004

Dec. 2005

Dec. 2006

Dec. 2007

Dec. 2008

Dec. 2009

Dec. 2010

SMB

Companies - Total

Dec. 2011

280

260 240 220

200

180 160 140

120 100 80 60

22

STATISTICAL APPENDIX

ANNUAL REPORT 2011

TABLE 1: Deposits in Domestic Currency Monthly average of daily balances (in millions of Pesos)

Period Current Accounts

Savings Accounts

Time Deposits (1)

Total

1991 December 3,129 1,980 2,955 8,064 1992 December 4,909 2,758 5,998 13,665 1993 December 6,214 4,653 8,903 19,770 1994 December 6,993 5,242 9,622 21,858 1995 December 7,011 4,688 7,343 19,042 1996 December 10,514 5,936 8,756 25,207 1997 December 12,178 7,601 12,057 31,836 1998 December 12,648 8,206 13,577 34,432 1999 December 12,580 8,347 12,791 33,719 2000 December 11,952 7,924 12,024 31,900 2001 December 8,309 4,499 5,872 18,681 2002 December 23,305 9,144 33,435 65,885 2003 December 24,720 14,554 38,150 77,424 2004 December 32,581 21,616 41,783 95,980 2005 December 40,595 26,039 48,572 115,206 2006 December 47,485 30,168 64,968 142,621 2007 December 57,143 37,851 79,446 174,439 2008 December 77,026 39,394 83,023 199,443 2009 December 81,712 45,394 90,100 217,206

2010 January 82,674 46,106 90,878 219,659 February 83,712 46,259 93,572 223,543 March 82,895 46,146 101,213 230,254 April 86,477 45,894 104,746 237,117 May 91,208 45,824 113,022 250,053 June 94,291 47,630 117,199 259,120 July 96,897 51,944 120,404 269,245 August 98,734 49,970 128,637 277,341 September 100,764 50,866 134,613 286,243 October 105,540 52,649 137,877 296,067 November 106,745 52,912 141,615 301,272 December 112,070 58,034 138,366 308,470

2011 January 117,966 59,384 138,938 316,288 February 116,731 59,757 153,079 329,566 March 119,200 60,291 158,946 338,438 April 123,155 61,741 163,135 348,031 May 129,940 63,602 166,557 360,099 June 134,148 64,759 170,257 369,165 July 131,590 74,742 175,020 381,352 August 135,023 72,812 180,092 387,926 September 137,731 69,574 187,688 394,992 October 139,070 70,477 189,021 398,568 November 139,006 68,928 194,068 402,002 December 143,330 75,626 186,047 405,003

(1) Starting on March 2002, it includes rescheduled deposits. Source: ABA based on "Statistical Bulletin", "Daily Information on Deposits, Credit and Cash in Domestic Currency" and "Main Financial System Liabilities", Central Bank.

23


ANNUAL REPORT 2011

TABLE 2: Deposits in Foreign CurrencyMonthly average of daily balances (in millions of dollars)

Period Current Accounts

Demand Deposits

Saving Accounts

Time Deposits

Deposits on behalf of

Central Bank

Total

1987 December … 12 … … 994 1,006 1988 December … 16 … … 1,487 1,503 1989 December … 42 … 1,063 538 1,644 1990 December … 597 … 2,069 177 2,843 1991 December … 782 1,137 4,641 145 6,705 1992 December … 839 1,866 8,037 … 10,742 1993 December 292 392 3,698 13,711 … 18,093 1994 December 351 482 4,032 18,122 … 22,986 1995 December 441 493 3,445 18,321 … 22,699 1996 December 472 1,092 4,529 22,273 … 28,366 1997 December 646 1,528 5,330 29,666 … 37,169 1998 December 684 2,119 5,304 34,435 … 42,542 1999 December 829 1,695 6,146 38,475 … 47,145 2000 December 781 1,162 5,602 44,155 … 51,700 2001 December 2,442 2,385 9,772 33,116 … 47,715 2002 December 26 327 83 427 … 863 2003 December 52 218 457 1,041 … 1,768 2004 December 25 249 1,848 1,646 … 3,768 2005 December 10 266 1,459 2,090 … 3,825 2006 December 4 312 1,937 3,055 … 5,308 2007 December 4 … 2,400 4,179 … 6,583 2008 December 11 … 3,578 5,097 … 8,687 2009 650,11 310,6 430,5… 8 rebmeceD

2010 January 8 … 4,957 6,056 … 11,022 February 9 … 4,749 5,908 … 10,666 March 9 … 5,096 5,882 … 10,987 April 10 … 8,665 5,901 … 14,576 May 12 … 9,391 5,984 … 15,386 June 13 … 8,784 6,089 … 14,886 July 13 … 8,416 6,109 … 14,538 August 13 … 7,307 6,166 … 13,486 September 13 … 7,551 6,213 … 13,777 October 14 … 8,319 6,257 … 14,590 November 15 … 8,773 6,219 … 15,006 December 17 … 8,661 6,316 … 14,994

2011 January 17 … 8,584 6,509 … 15,110 February 8 … 8,199 6,480 … 14,687 March 5 … 7,950 6,476 … 14,432 April 6 … 8,142 6,496 … 14,645 May 7 … 8,344 6,609 … 14,960 June 8 … 7,998 6,731 … 14,736 July 7 … 7,786 6,893 … 14,686 August 8 … 7,810 7,054 … 14,872 September 7 … 7,371 7,274 … 14,651 October 7 … 7,376 7,396 … 14,778 November 6 … 6,062 7,043 … 13,111 December 6 … 5,624 6,492 … 12,122

Source: ABA based on "Statistical Bulletin", "Daily Information on Deposits, Credit and Cash in Foreign Currency" and "Main Liabilities of Financial System", Central Bank.

24


ANNUAL REPORT 2011

TABLE 3: Monetary Aggregates(in millions of Pesos of December of 2011)

Period M1 M2 M3 M1 + Foreign

Currency Demand Deposits

M3 + Total Deposits in

Foreign Currency

1995 December 64,927 82,541 110,129 65,860 105,240 1996 December 80,435 102,450 134,926 81,999 130,816 1997 December 93,570 121,887 166,804 95,744 159,057 1998 December 99,774 131,541 184,101 102,578 174,083 1999 December 98,151 130,434 179,905 100,675 177,579 2000 December 90,877 121,151 167,091 92,820 172,850 2001 December 66,345 84,237 107,589 71,173 131,952 2002 December 69,273 89,277 162,614 70,505 92,289 2003 December 106,842 137,852 219,138 107,642 143,086 2004 December 127,964 170,996 254,174 128,778 182,194 2005 December 146,300 192,819 279,594 147,131 204,347 2006 December 162,231 211,949 319,017 163,197 228,192 2007 December 178,283 234,144 351,394 178,297 254,821 2008 December 202,024 255,826 369,214 202,063 285,582 2009 December 204,576 261,443 374,316 204,607 303,522

2010 January 207,405 264,481 376,980 207,436 306,413 February 204,318 260,794 375,031 204,353 301,881 March 199,868 255,465 377,406 199,903 297,901 April 201,442 256,189 381,139 201,480 312,677 May 207,053 261,185 394,696 207,099 321,214 June 211,873 267,593 404,697 211,926 326,041 July 219,254 279,486 419,102 219,305 336,691 August 220,915 278,359 426,233 220,967 331,457 September 223,140 281,132 434,603 223,190 335,564 October 229,099 288,603 444,432 229,155 346,333 November 231,181 290,486 449,209 231,241 350,030 December 243,544 308,015 461,727 243,612 367,650

2011 January 253,746 319,120 472,072 253,814 379,279 February 250,017 315,256 482,379 250,051 374,330 March 251,344 316,577 488,553 251,364 374,831 April 254,641 320,834 495,731 254,667 380,382 May 261,692 329,282 506,285 261,722 390,378 June 268,128 336,315 515,585 268,159 396,666 July 270,904 348,900 531,539 270,935 409,519 August 274,240 349,526 535,735 274,272 411,520 September 274,918 346,192 538,466 274,946 407,799 October 275,069 346,716 538,873 275,098 409,095 November 276,769 346,304 542,080 276,796 402,157 December 287,646 363,272 549,319 287,672 415,249

Note: Monetary aggregates include public sector´s deposits.Source:

25


ANNUAL REPORT 2011

TABLE 4: Monetary AggregatesAnnual averages (as a percentage of GDP)

Period M1 M2 M3

M1 + Foreign

Currency Demand Deposits

M3 + Total Deposits in

Foreign Currency

1985 3.7 5.1 9.3 3.7 5.2 1986 5.0 6.8 13.8 5.0 6.8 1987 3.9 5.5 12.3 3.9 5.5 1988 2.6 3.6 10.8 2.6 3.6 1989 2.6 3.2 8.3 2.9 9.8 1990 2.2 3.5 4.2 2.4 4.5 1991 2.9 3.9 5.2 3.3 6.5 1992 4.3 5.5 7.5 4.7 9.3 1993 5.7 7.4 10.7 5.9 13.6 1994 6.4 8.4 12.0 6.6 16.5 1995 6.4 8.2 11.0 6.7 16.5 1996 7.3 9.3 12.5 7.8 19.0 1997 8.0 10.4 14.3 8.6 21.5 1998 8.5 11.1 15.7 9.2 24.6 1999 8.8 11.7 16.4 9.6 27.9 2000 8.3 11.1 15.8 8.9 28.6 2001 7.6 10.0 13.9 8.5 28.8 2002 10.2 13.6 22.6 12.0 18.1 2003 10.4 13.4 23.8 10.7 14.4 2004 12.8 17.1 25.9 13.0 19.1 2005 13.5 18.0 27.0 13.6 20.1 2006 13.4 17.7 26.5 13.5 20.0 2007 13.4 17.5 26.8 13.4 19.7 2008 12.9 16.7 25.6 12.9 19.0 2009 12.7 16.3 24.0 12.7 19.8 2010 16.2 20.6 30.9 16.2 25.2 2011 22.2 28.1 43.1 22.2 33.3

Source: ABA based on data from "Statistical Bulletin", "Daily Information on Deposits, Loans and Cash in Domestic and Foreign Currency", "Main Financial System Liabilities" and "Annual Estimates of Global Supply and Demand. Period 1980-1992", Central Bank and "Economic Report", Ministry of Economy and Production.

26


ANNUAL REPORT 2011

TABLE 5: Monetary Aggregates in Real Terms (1)

Monthly average of daily balances (in millions of Pesos of December of 2011)

Period Cash Held by Public

Current Account

M1 Savings Account

M2 Time Deposits

M3

1985 December 18,823 24,255 43,078 14,612 57,690 45,680 103,370 1986 December 21,858 21,740 43,599 14,850 58,449 66,050 124,499 1987 December 18,169 14,170 32,338 12,825 45,163 58,179 103,342 1988 December 16,030 11,222 27,253 9,512 36,765 74,563 111,328 1989 December 15,308 15,696 31,005 4,625 35,629 36,268 71,897 1990 December 13,933 8,201 22,134 11,580 33,714 10,617 44,330 1991 December 21,574 14,300 35,874 9,050 44,923 13,507 58,430 1992 December 28,628 20,780 49,408 11,673 61,081 25,388 86,468 1993 December 37,523 25,607 63,130 19,175 82,305 36,685 118,991 1994 December 40,733 27,415 68,147 20,550 88,698 37,719 126,417 1995 December 38,587 26,339 64,927 17,614 82,541 27,588 110,129 1996 December 41,439 38,996 80,435 22,015 102,450 32,476 134,926 1997 December 48,200 45,370 93,570 28,317 121,887 44,916 166,804 1998 December 50,811 48,963 99,774 31,767 131,541 52,560 184,101 1999 December 49,499 48,653 98,151 32,283 130,434 49,470 179,905 2000 December 45,215 45,662 90,877 30,274 121,151 45,940 167,091 2001 December 33,301 33,044 66,345 17,892 84,237 23,353 107,589 2002 December 33,745 51,023 84,768 20,020 104,788 73,201 177,989 2003 December 54,171 52,672 106,842 31,009 137,852 81,286 219,138 2004 December 63,106 64,858 127,964 43,032 170,996 83,178 254,174 2005 December 73,777 72,523 146,300 46,519 192,819 86,775 279,594 2006 December 83,975 78,257 162,231 49,718 211,949 107,068 319,017 2007 December 93,949 84,334 178,283 55,862 234,144 117,249 351,394 2008 December 96,827 105,197 202,024 53,802 255,826 113,388 369,214 2009 December 102,212 102,364 204,576 56,867 261,443 112,873 374,316

2010 January 105,061 102,344 207,405 57,076 264,481 112,499 376,980 February 102,118 102,200 204,318 56,476 260,794 114,237 375,031 March 99,997 99,871 199,868 55,596 255,465 121,941 377,406 April 98,283 103,158 201,442 54,747 256,189 124,951 381,139 May 99,311 107,742 207,053 54,131 261,185 133,511 394,696 June 101,568 110,305 211,873 55,720 267,593 137,104 404,697 July 106,897 112,357 219,254 60,232 279,486 139,615 419,102 August 107,415 113,500 220,915 57,443 278,359 147,875 426,233 September 108,260 114,879 223,140 57,992 281,132 153,471 434,603 October 109,817 119,282 229,099 59,504 288,603 155,829 444,432 November 111,541 119,641 231,181 59,305 290,486 158,723 449,209 December 119,045 124,499 243,544 64,470 308,015 153,713 461,727

2011 January 123,882 129,864 253,746 65,374 319,120 152,952 472,072 February 122,577 127,440 250,017 65,239 315,256 167,123 482,379 March 122,372 128,972 251,344 65,234 316,577 171,976 488,553 April 122,606 132,035 254,641 66,193 320,834 174,898 495,731 May 123,602 138,090 261,692 67,590 329,282 177,003 506,285 June 126,878 141,249 268,128 68,187 336,315 179,269 515,585 July 133,586 137,318 270,904 77,995 348,900 182,639 531,539 August 134,631 139,610 274,240 75,285 349,526 186,209 535,735 September 133,821 141,097 274,918 71,274 346,192 192,275 538,466 October 133,692 141,377 275,069 71,647 346,716 192,157 538,873 November 136,540 140,229 276,769 69,535 346,304 195,776 542,080 December 144,316 143,330 287,646 75,626 363,272 186,047 549,319

(1) Deflated by the combined price index. Source: ABA based on "Statistical Bulletin" and "Daily Information on Deposits, Loans and Cash in Domestic Currency", Central Bank and INDEC.

27


ANNUAL REPORT 2011

TABLE 6: Central Bank´s Monetary and Financial Liabilities Monthly average of daily balances (in millions of Pesos)

Period Currency Financial Institutions Deposits in the Central

Bank

Monetary Liabilities

Net Position of Repos

Financial Liabilities (1)

Government Deposits in the Central

Bank

1994 December 12,346 3,872 16,218 ... 16,218 ... 1995 December 12,025 716 12,741 1,494 15,010 456 1996 December 13,131 27 13,158 4,961 18,137 1,049 1997 December 15,174 47 15,221 6,315 21,536 478 1998 December 15,520 31 15,551 9,347 24,898 1,620 1999 December 15,048 91 15,139 9,662 24,802 1,827 2000 December 14,205 88 14,293 9,248 23,541 1,016 2001 December 10,173 6,703 16,876 -4,773 12,123 171 2002 December 17,766 10,953 28,719 -233 28,486 79 2003 December 28,717 20,396 49,112 -46 49,066 559 2004 December 35,838 22,988 58,826 5,491 64,317 486 2005 December 46,008 15,972 61,980 5,422 67,403 1,227 2006 December 56,158 28,660 84,818 1,666 86,484 2,041 2007 December 70,577 34,297 104,874 2,240 107,114 3,232 2008 December 80,247 43,413 123,660 7,885 131,546 1,118 2009 December 92,793 55,105 147,898 6,925 154,823 6,300 2010 January 95,667 55,655 151,322 11,430 162,752 1,574 February 93,943 53,292 147,234 17,024 164,258 1,059 March 93,297 55,078 148,375 13,535 161,910 25,706 April 92,744 68,828 161,572 14,766 176,339 12,543 May 94,856 73,237 168,093 16,088 184,182 12,129 June 97,868 71,852 169,721 15,802 185,522 12,390 July 103,404 72,139 175,542 15,021 190,563 9,752 August 104,858 68,438 173,296 13,267 186,563 10,871 September 106,245 69,380 175,625 13,087 188,712 7,517 October 110,620 73,843 184,463 12,220 196,683 5,724 November 112,839 75,965 188,804 12,407 201,211 9,750 December 119,694 77,086 196,780 9,376 206,156 6,871

2011 January 126,740 76,432 203,173 11,787 214,960 28,466 February 127,658 74,758 202,417 11,113 213,530 39,198 March 128,825 72,291 201,116 12,947 214,063 36,427 April 129,874 74,017 203,891 13,385 217,276 35,301 May 131,576 77,431 209,008 13,645 222,653 33,324 June 137,194 74,442 211,636 10,311 221,947 33,165 July 145,175 75,153 220,328 6,911 227,239 28,735 August 147,649 77,665 225,314 12,034 237,349 16,457 September 148,677 75,596 224,273 10,590 234,863 15,540 October 149,277 75,511 224,788 9,834 234,622 13,652 November 152,703 70,426 223,129 9,797 232,926 11,482 December 165,181 70,868 236,049 12,071 248,120 7,986

(1) Financial liabilities do not include the stock of LEBAC and NOBAC. Source: ABA based on "Statistical Bulletin", "Central Bank´s Monetary Liabilities", Central Bank.

28


ANNUAL REPORT 2011

TABLE 7: Central Bank´s Reserves (1) Monthly average of daily balances

Period Liquid Reserves

(2)

Government Securities

(3)

Total Monetary Liabilities

(4)

In Millions of US Dollars In Millions

of Pesos 1996 December 17 503 1 793 19 296 14 059 1997 December 20 871 1 746 22 618 14 190 1998 December 24 975 1 683 26 658 15 551 1999 December 24 910 1 456 26 366 15 139 2000 December 24 077 1 314 25 391 14 293 2001 December 14 815 4 534 19 349 16 876 2002 December 10 265 ... 10 265 28 719 2003 December 13 820 ... 13 820 49 112 2004 December 19 310 ... 19 310 58 826 2005 December 27 262 ... 27 262 61 980 2006 December 31 167 ... 31 167 84 818 2007 December 45 711 ... 45 711 104 874 2008 December 46 198 ... 46 198 123 660 2009 December 47 717 ... 47 717 147 898

2010 January 48,116 ... 48,116 151,322 February 47,959 ... 47,959 147,234 March 47,682 ... 47,682 148,375 April 47,552 ... 47,552 161,572 May 48,471 ... 48,471 168,093 June 49,229 ... 49,229 169,721 July 50,449 ... 50,449 175,542 August 50,210 ... 50,210 173,296 September 50,920 ... 50,920 175,625 October 51,607 ... 51,607 184,463 November 52,236 ... 52,236 188,804 December 52,132 ... 52,132 196,780

2011 January 52,365 ... 52,365 203,173 February 52,427 ... 52,427 202,417 March 52,287 ... 52,287 201,116 April 51,637 ... 51,637 203,891 May 51,987 ... 51,987 209,008 June 52,094 ... 52,094 211,636 July 51,852 ... 51,852 220,328 August 50,388 ... 50,388 225,314 September 49,421 ... 49,421 224,273 October 48,038 ... 48,038 224,788 November 46,465 ... 46,465 223,129 December 45,983 ... 45,983 236,049

(1) Market values. (2) Bills, deposits in current accounts, demand and time deposits, gold and ALADI. (3) It includes bonds used as collateral for repos transactions. (4) Currency + Financial institutions deposits in Central Bank. Source: ABA based on "Reserves and Monetary Base" and "Foreign Currency Assets and Monetary Liabilities", Central Bank.

,,,,

,,,,,,

,,,,,,,,,,

,,,,,,,,,,,,,,

,,,,,,,,,,,,,,

29


ANNUAL REPORT 2011

TABLE 8: Loans to Private SectorMonthly average of daily balances (in millions of Pesos)

Period Overdrafts Promissory Notes

Mortgage Loans

Pledge Loans

Consumer Loans

Credit Card Financing

Others Total

2000 December 63,330.6 2001 December 51,462.6 2002 December 36,041.7 2003 December 30,927.3 2004 December 38,941.6 2005 December 52,829.7 2006 December 74,884.7 2007 December 105,466.1 2008 December 129,721.5 2009 December 140,319.5 2010 January 142,022.6 February 142,542.1 March 144,738.8 April 149,523.1 May 154,422.3 June 157,903.0 July 161,735.1 August 165,943.7 September 170,675.5 October 177,951.2 November 184,057.2 December 192,393.1 2011 January 198,599.7 February 203,351.0 March 208,017.8 April 214,117.4 May 221,767.1 June 229,944.2 July 241,734.6 August 249,644.8 September 261,248.2 October 271,119.4 November 279,073.8 December 284,970.8

Source: ABA based on "Main Assets of Financial System", B.C.R.A.

30


ANNUAL REPORT 2011

TABLE 9: Loans to Private Sector Change in the last 12 months (as a percentages)

Period Overdrafts PromissoryNotes

MortgageLoans

PledgeLoans

ConsumerLoans

Others Total

2001 December -26.7 -29.1 -4.7 -25.0 -10.9 -9.2 -26.1 -18.7 2002 December -23.0 -33.4 -28.6 -38.9 -45.1 -42.8 -5.8 -30.0 2003 December -6.9 -10.2 -18.6 -41.5 -13.1 9.4 -15.5 -14.2 2004 December 41.8 41.1 -6.1 26.3 79.3 38.7 18.0 25.9 2005 December 32.8 61.0 0.2 39.6 70.9 64.0 4.1 35.7 2006 December 34.1 47.8 14.6 61.1 82.0 42.1 18.4 41.7 2007 December 21.1 39.6 42.4 58.6 61.8 48.8 16.1 40.8 2008 December 10.9 15.3 29.6 31.9 31.5 35.9 15.8 23.0 2009 December 16.2 2.5 -0.5 -7.2 8.6 20.9 27.6 8.2

2010 January 10.4 6.4 -1.4 -5.3 10.3 23.3 33.7 9.6 February 6.2 6.1 -1.2 -3.3 11.9 25.1 33.4 9.6 March 4.9 4.1 -0.5 0.0 13.2 28.8 32.4 9.8 April 9.0 9.2 0.3 2.7 14.9 32.0 35.3 13.0 May 13.3 12.2 1.1 6.1 16.9 34.1 36.0 15.5 June 13.5 12.8 2.0 8.4 18.4 39.5 34.5 16.8 July 12.2 20.3 2.4 12.1 20.7 41.8 28.3 19.3 August 13.1 30.0 3.3 14.8 22.4 43.8 27.9 23.0 September 8.5 40.6 6.4 17.0 24.5 44.2 29.9 26.4 October 17.6 46.9 7.8 23.1 26.7 44.3 35.8 30.9 November 19.0 52.8 9.7 26.8 28.8 44.6 41.5 34.0 December 18.2 57.7 11.6 31.6 31.0 48.7 45.5 37.1

2011 January 21.9 63.2 14.3 36.9 33.3 47.0 39.9 39.8 February 30.0 67.2 15.0 43.3 35.2 49.0 35.1 42.7 March 29.3 68.0 15.2 47.9 36.5 51.6 34.7 43.7 April 24.7 67.0 15.2 52.0 38.5 46.9 37.2 43.2 May 23.6 67.0 16.6 55.9 40.2 45.5 38.2 43.6 June 27.8 68.5 18.4 61.8 43.0 45.2 38.6 45.6 July 32.7 67.3 21.2 65.2 44.9 46.6 66.5 49.5 August 31.4 64.3 24.5 70.3 46.8 46.4 75.9 50.4 September 40.2 62.2 26.8 73.9 48.8 50.8 81.0 53.1 October 38.1 60.2 29.1 75.2 49.6 48.2 79.9 52.4 November 40.7 55.6 31.3 77.6 49.9 50.5 72.1 51.6 December 40.3 46.4 33.2 74.4 47.7 51.6 65.5 48.1

Source: ABA based on "Main Assets of Financial System", B.C.R.A.

Credit CardsFinancing

31


ANNUAL REPORT 2011

TABLE 10: Bank Credit (in millions of Pesos)

End of: To Public Sector To Private Sector In

Domestic Currency

InForeign

Currency

Total In Domestic Currency

In Foreign

Currency

Total

1990 December 5,325 1,647 6,972 7,238 3,515 10,753 1991 December 6,596 3,736 10,332 13,180 9,573 22,753 1992 December 5,076 5,545 10,621 19,055 15,933 34,988 1993 December 6,541 6,652 13,193 21,766 21,477 43,244 1994 December 5,734 5,898 11,631 23,931 28,282 52,212 1995 December 5,426 10,622 16,048 21,819 29,686 51,506 1996 December 6,289 12,647 18,936 21,980 32,958 54,939 1997 December 6,098 15,075 21,172 24,745 39,489 64,234 1998 December 4,797 18,862 23,659 27,420 44,786 72,206 1999 December 5,481 22,790 28,272 26,659 43,919 70,578 2000 December 3,715 25,063 28,778 25,688 42,221 67,910 2001 December 3,392 26,722 30,114 15,626 40,353 55,979 2002 December 57,744 37,538 95,282 41,175 6,749 47,924 2003 December 67,798 28,425 96,223 34,975 5,483 40,458 2004 December 78,743 25,639 104,382 41,422 5,549 46,971 2005 December 86,251 14,919 101,170 54,163 7,898 62,061 2006 December 77,869 11,252 89,120 72,778 12,488 85,266 2007 December 78,321 5,178 83,499 100,117 17,374 117,491 2008 December 79,651 8,061 87,712 120,098 21,469 141,567 2009 December 101,102 12,910 114,013 133,118 21,827 154,945 2010 January 108,225 9,746 117,971 132,078 21,881 153,959

February 114,477 10,452 124,929 133,614 22,294 155,907 March 115,984 10,253 126,236 136,295 23,507 159,801 April 126,278 10,155 136,433 140,528 24,739 165,267 May 134,280 9,782 144,062 145,092 24,940 170,032 June 135,298 10,032 145,330 148,559 24,261 172,820 July 138,898 10,087 148,985 150,942 25,478 176,420 August 145,882 9,212 155,094 154,681 26,686 181,367 September 147,323 9,539 156,862 160,558 27,597 188,155 October 154,589 9,286 163,876 165,902 28,584 194,486 November 154,680 9,321 164,001 171,424 29,762 201,186 December 143,744 10,319 154,063 179,455 31,420 210,874

2011 January 164,109 7,193 171,302 182,855 33,355 216,210 February 166,780 7,255 174,035 186,371 34,486 220,857 March 178,750 7,029 185,780 189,466 35,692 225,158 April 177,285 6,722 184,007 195,663 36,882 232,545 May 178,979 6,728 185,707 203,701 37,470 241,172 June 183,963 8,336 192,299 212,278 38,784 251,062 July 182,057 7,058 189,115 220,972 40,370 261,342 August 183,308 6,946 190,253 228,806 42,070 270,876 September 177,362 7,086 184,448 239,919 42,510 282,428 October 175,213 7,701 182,915 248,709 43,601 292,309 November 174,784 7,666 182,450 254,157 43,893 298,050 December 150,002 9,821 159,823 262,484 42,782 305,266

Source: ABA based on "Statistical Bulletin", Central Bank.

32


ANNUAL REPORT 2011

TABLE 11: Nominal Bank Credit by Currency(in millions of Pesos)

End of: In Domestic Currency In Foreign Currency Total

Loans Resources Earned on

Loans

Total Loans Resources Earned on

Loans

Total

1990 December 5,856 6,707 12,563 4,768 394 5,162 17,725 1991 December 12,228 7,549 19,776 12,548 761 13,309 33,085 1992 December 18,729 5,402 24,131 20,642 835 21,478 45,609 1993 December 23,693 4,614 28,307 27,338 791 28,129 56,436 1994 December 25,824 3,840 29,664 33,202 977 34,179 63,844 1995 December 24,402 2,844 27,246 39,147 1,161 40,308 67,554 1996 December 26,916 1,353 28,269 44,575 1,030 45,605 73,874 1997 December 29,479 1,364 30,843 53,485 1,079 54,564 85,406 1998 December 31,540 677 32,217 62,542 1,106 63,647 95,865 1999 December 31,541 599 32,141 65,574 1,135 66,710 98,850 2000 December 28,848 556 29,404 66,073 1,212 67,285 96,688 2001 December 18,560 459 19,018 65,730 1,344 67,075 86,093 2002 December 84,510 14,409 98,919 44,080 207 44,287 143,206 2003 December 90,727 12,045 102,773 33,804 105 33,908 136,681 2004 December 107,961 12,204 120,165 31,093 95 31,188 151,353 2005 December 129,174 11,240 140,413 22,726 91 22,817 163,231 2006 December 141,234 9,413 150,647 23,592 147 23,739 174,386 2007 December 170,585 7,854 178,438 22,307 246 22,552 200,991 2008 December 191,236 8,513 199,749 29,191 340 29,530 229,279 2009 December 229,049 5,172 234,221 34,451 287 34,737 268,958

2010 January 234,991 5,312 240,303 31,335 292 31,627 271,930 February 242,789 5,302 248,091 32,458 288 32,746 280,837 March 246,921 5,358 252,279 33,458 301 33,759 286,038 April 261,383 5,423 266,806 34,604 290 34,894 301,700 May 273,822 5,550 279,372 34,441 281 34,722 314,094 June 278,427 5,430 283,857 34,044 249 34,293 318,151 July 284,230 5,610 289,840 35,327 238 35,564 325,405 August 294,675 5,888 300,563 35,664 234 35,898 336,461 September 301,968 5,913 307,881 36,888 247 37,136 345,017 October 314,126 6,365 320,492 37,619 251 37,870 358,362 November 319,598 6,506 326,104 38,829 254 39,082 365,187 December 316,565 6,633 323,198 41,476 262 41,739 364,937

2011 January 340,068 6,897 346,965 40,277 271 40,547 387,512 February 346,153 6,997 353,151 41,467 275 41,742 394,892 March 361,654 6,562 368,216 42,427 294 42,721 410,937 April 366,213 6,734 372,947 43,305 299 43,604 416,552 May 375,876 6,804 382,680 43,909 289 44,198 426,879 June 389,573 6,668 396,241 46,854 267 47,120 443,362 July 395,983 7,046 403,029 47,153 275 47,428 450,457 August 405,024 7,090 412,113 48,731 285 49,016 461,129 September 410,031 7,250 417,280 49,301 295 49,596 466,876 October 416,265 7,657 423,922 50,992 310 51,302 475,224 November 421,363 7,578 428,941 51,223 337 51,560 480,501 December 404,712 7,774 412,486 52,261 342 52,603 465,089

Source: ABA based on "Statistical Bulletin", Central Bank..

33


ANNUAL REPORT 2011

TABLE 12: Bank Credit in Real Terms (1)

(in millions of Pesos of December of 2011)

End of: In Domestic Currency In Foreign Currency Total

Loans Resources Earned on

Loans

Total Loans Resources Earned on

Loans

Total

1990 December 45,171 51,733 96,904 36,782 3,040 39,821 136,726 1991 December 55,886 34,500 90,386 57,350 3,478 60,828 151,214 1992 December 79,275 22,867 102,141 87,376 3,536 90,912 193,053 1993 December 97,633 19,014 116,647 112,653 3,258 115,911 232,558 1994 December 101,232 15,053 116,285 130,154 3,829 133,983 250,269 1995 December 91,679 10,685 102,363 147,077 4,363 151,440 253,803 1996 December 99,827 5,018 104,845 165,318 3,822 169,140 273,985 1997 December 109,822 5,082 114,905 199,257 4,019 203,276 318,181 1998 December 122,095 2,622 124,717 242,108 4,280 246,388 371,105 1999 December 121,983 2,318 124,301 253,605 4,390 257,995 382,296 2000 December 110,215 2,124 112,339 252,438 4,629 257,067 369,405 2001 December 73,807 1,824 75,631 261,394 5,346 266,739 342,371 2002 December 185,021 31,547 216,568 96,507 452 96,959 313,527 2003 December 193,312 25,665 218,977 72,025 223 72,248 291,225 2004 December 214,918 24,295 239,213 61,898 189 62,087 301,300 2005 December 230,770 20,080 250,849 40,601 162 40,764 291,613 2006 December 232,758 15,512 248,270 38,880 243 39,123 287,393 2007 December 251,757 11,591 263,348 32,921 362 33,284 296,631 2008 December 261,179 11,626 272,806 39,867 464 40,331 313,136 2009 December 286,939 6,479 293,418 43,158 359 43,517 336,936

2010 January 290,898 6,576 297,474 38,789 361 39,151 336,625 February 296,410 6,473 302,883 39,626 352 39,978 342,861 March 297,489 6,455 303,944 40,310 363 40,673 344,617 April 311,803 6,469 318,272 41,279 346 41,625 359,896 May 323,463 6,556 330,019 40,685 332 41,017 371,036 June 325,715 6,352 332,068 39,826 292 40,118 372,185 July 329,581 6,505 336,086 40,963 276 41,239 377,325 August 338,745 6,768 345,513 40,997 269 41,267 386,780 September 344,271 6,742 351,012 42,056 282 42,338 393,351 October 355,026 7,194 362,221 42,517 284 42,801 405,022 November 358,210 7,292 365,502 43,519 285 43,804 409,306 December 351,675 7,369 359,044 46,077 291 46,368 405,412 2011 January 374,367 7,593 381,960 44,339 298 44,637 426,597 February 377,911 7,639 385,550 45,271 300 45,571 431,122 March 391,301 7,100 398,401 45,905 318 46,223 444,624 April 392,618 7,220 399,838 46,427 321 46,748 446,586 May 399,450 7,231 406,681 46,663 307 46,970 453,651 June 410,195 7,021 417,216 49,334 281 49,615 466,831 July 413,221 7,353 420,574 49,206 287 49,492 470,067 August 418,782 7,330 426,113 50,387 295 50,681 476,794 September 420,051 7,427 427,478 50,506 302 50,808 478,286 October 423,171 7,784 430,956 51,838 316 52,153 483,109 November 425,072 7,644 432,716 51,674 340 52,014 484,730 December 404,712 7,774 412,486 52,261 342 52,603 465,089

(1) Deflated by the combined price index. Source: ABA based on "Statistical Bulletin", Central Bank. e INDEC.

34


ANNUAL REPORT 2011

TABLE 13: Interest Rates (Annual nominal, as a percentage)

Period On Deposits On Loans Interbank Rate

In Domestic Currency

In Foreign Currency Overdrafts to Companies

up to $10 Millions

(1 to 7 days)

Domestic Prime Rate

Savings Accounts

Time Deposits

(1)

BADLAR Private Banks

Savings Accounts

Time Deposits

(1)



In Foreign Currency

30 days

30 days

30 days

90 days

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

2011

(1) Corresponds to average term. Source: ABA based on "Survey on Interest Rates on Deposits", "Domestic Prime Rate" and "Statistical Information on Interest Rates", Central Bank.

14.59.48.09.29.3

10.018.9

35


ANNUAL REPORT 2011

TABLE 14: Lending Rates in Pesos(Annual nominal, as a percentage)



Mortgage Loans

Pledge Loans

Consumer Loans and

Credit Cards

Consumer Loans

Credit Cards

Financing

1995 Average 41.6 20.0 15.4 26.3 44.8 ... ... 1996 Average 32.7 13.3 12.4 22.2 40.7 ... ... 1997 Average 28.2 11.1 13.2 18.9 38.2 ... ... 1998 Average 28.8 11.6 14.3 20.5 34.7 ... ... 1999 Average 30.6 12.1 14.4 20.6 32.7 ... ... 2000 Average 30.0 12.2 15.0 21.4 33.0 ... ... 2001 Average 40.4 28.0 15.3 21.1 34.3 ... ... 2002 Average 60.3 38.8 29.4 19.1 51.0 40.7 51.4 2003 Average 37.7 17.7 18.0 19.7 54.3 45.9 54.8 2004 Average 15.7 10.8 12.0 13.3 30.4 29.7 30.7 2005 Average 14.9 10.3 11.3 10.3 27.3 25.9 27.7 2006 Average 16.6 12.6 11.7 9.9 26.5 24.7 27.2 2007 Average 17.2 14.1 11.2 11.3 26.0 25.7 26.1 2008 Average 21.6 19.3 12.8 17.5 28.3 30.8 27.4 2009 Average 23.1 19.8 15.8 22.2 31.0 34.3 30.2

2010 January 20.8 16.0 14.2 17.6 31.1 32.8 30.5 February 20.4 15.8 14.5 17.9 30.3 31.9 29.7 March 20.1 15.3 14.7 17.4 30.0 31.5 29.3 April 19.7 15.4 13.7 17.8 29.5 30.7 29.0 May 19.1 14.7 13.9 17.5 29.6 30.4 29.3 June 18.6 15.0 13.9 17.3 29.7 29.8 29.6 July 18.6 15.2 14.2 17.1 31.9 29.4 32.9 August 18.7 15.1 14.6 17.2 31.7 28.9 33.0 September 18.5 15.6 15.2 17.0 31.1 29.3 32.3 October 18.5 14.9 14.7 17.3 31.1 29.6 32.0 November 19.1 14.7 14.9 17.1 31.6 30.9 32.1 December 26.3 22.1 16.5 24.9 33.9 36.4 33.1

Average 19.9 15.8 14.6 18.0 31.0 31.0 31.1

2011 January 18.8 15.3 14.0 16.8 30.4 29.2 30.8 February 18.5 15.3 14.2 17.1 29.6 29.2 29.9 March 19.2 15.2 14.0 17.3 30.3 29.4 30.8 April 18.9 14.7 14.9 17.3 30.1 29.3 30.5 May 18.8 15.5 14.4 17.8 30.1 29.3 30.5 June 18.3 15.0 14.9 18.0 29.7 29.1 30.0 July 18.5 15.4 14.9 18.0 31.2 29.5 32.1 August 18.9 15.6 14.8 18.9 31.2 29.8 32.3 September 19.1 15.6 15.1 19.4 31.0 30.3 31.4 October 21.4 18.2 15.1 20.4 31.6 31.4 31.7 November 25.2 20.5 15.8 22.9 32.7 33.9 32.0 December 26.3 22.1 16.5 24.9 33.9 36.4 33.1

Average 20.2 16.5 14.9 19.1 31.0 30.6 31.3

Corresponds to weighted averages of loans granted within the month of the report. Source: ABA based on "Statistical Bulletin", Central Bank.

36


ANNUAL REPORT 2011

TABLE 15: Lending Rates in Foreign Currency (Annual nominal, as a percentage)

In Foreign Currency


Mortgage Loans

Pledge Loans

Consumer Loans and

Credit Cards

Consumer Loans

Credit Cards

Financing

1995 Average 23.8 41.6 20.0 15.4 26.3 44.8 ... 1996 Average 23.5 32.7 13.3 12.4 22.2 40.7 ... 1997 Average 23.3 28.2 11.1 13.2 18.9 38.2 ... 1998 Average 23.4 28.8 11.6 14.3 20.5 34.7 ... 1999 Average 24.8 30.6 12.1 14.4 20.6 32.7 ... 2000 Average 25.6 30.0 12.2 15.0 21.4 33.0 ... 2001 Average 28.2 40.4 28.0 15.3 21.1 34.3 ... 2002 Average ... 60.3 30.1 9.8 19.1 51.0 40.7 2003 Average ... 37.7 7.7 18.0 19.7 54.3 45.9 2004 Average ... 15.7 10.8 12.0 13.3 30.4 29.7 2005 Average ... 14.9 10.3 11.3 10.3 27.3 25.9 2006 Average ... 16.6 12.6 11.7 9.9 26.5 24.7 2007 Average ... 17.2 14.1 11.2 11.3 26.0 25.7 2008 Average ... 21.6 19.3 12.8 17.5 28.3 30.8 2009 Average 23.1 19.8 15.8 22.2 31.0 34.3

2010 January ... 20.8 16.0 14.2 17.6 31.1 32.8 February ... 20.4 15.8 14.5 17.9 30.3 31.9 March ... 20.1 15.3 14.7 17.4 30.0 31.5 April ... 19.7 15.4 13.7 17.8 29.5 30.7 May ... 19.1 14.7 13.9 17.5 29.6 30.4 June ... 18.6 15.0 13.9 17.3 29.7 29.8 July ... 18.6 15.2 14.2 17.1 31.9 29.4 August ... 18.7 15.1 14.6 17.2 31.7 28.9 September ... 18.5 15.6 15.2 17.0 31.1 29.3 October ... 18.5 14.9 14.7 17.3 31.1 29.6 November ... 19.1 14.7 14.9 17.1 31.6 30.9 December ... 26.3 22.1 16.5 24.9 33.9 36.4

Average ... 19.9 15.8 14.6 18.0 31.0 31.0

2011 January ... 18.8 15.3 14.0 16.8 30.4 29.2 February ... 18.5 15.3 14.2 17.1 29.6 29.2 March ... 19.2 15.2 14.0 17.3 30.3 29.4 April ... 18.9 14.7 14.9 17.3 30.1 29.3 May ... 18.8 15.5 14.4 17.8 30.1 29.3 June ... 18.3 15.0 14.9 18.0 29.7 29.1 July ... 18.5 15.4 14.9 18.0 31.2 29.5 August ... 18.9 15.6 14.8 18.9 31.2 29.8 September ... 19.1 15.6 15.1 19.4 31.0 30.3 October ... 21.4 18.2 15.1 20.4 31.6 31.4 November ... 25.2 20.5 15.8 22.9 32.7 33.9 December ... 26.3 22.1 16.5 24.9 33.9 36.4

Average ... 20.2 16.5 14.9 19.1 31.0 30.6

Corresponds to weighted averages of loans granted within the month of the report. Source: ABA based on "Statistical Bulletin", Central Bank.

37


ANNUAL REPORT 2011

TABLE 16: Number of Institutions

End of: Public Banks

Private Banks

Non-Banking Financial

Institutions

Total Financial System

December 1985 37 161 117 315 December 1986 37 154 105 296 December 1987 36 142 89 267 December 1988 36 139 69 244 December 1989 36 141 59 236 December 1990 36 134 51 221 December 1991 35 134 50 219 December 1992 36 131 44 211 December 1993 34 133 39 206 December 1994 33 135 37 205 December 1995 31 96 30 157 December 1996 24 96 26 146 December 1997 19 95 25 139 December 1998 16 86 23 125 December 1999 16 76 24 116 December 2000 14 75 24 113 December 2001 13 72 22 107 December 2002 16 62 21 99 December 2003 15 60 21 96 December 2004 14 59 18 91 December 2005 13 58 18 89 December 2006 12 60 18 90 December 2007 12 55 18 85 December 2008 12 55 17 84 December 2009 12 54 17 83 December 2010 12 52 16 80 September 2011 12 52 16 80

Source: ABA based on Central Bank's data.

38


ANNUAL REPORT 2011

TABLE 17: Employees

Period Public Banks Private Banks Total

1980 79,714 66,426 146,140 1981 78,973 63,106 142,079 1982 78,346 62,543 140,889 1983 79,409 65,496 144,905 1984 80,710 67,877 148,587 1985 81,200 63,788 144,988 1986 80,380 60,741 141,121 1987 80,581 57,880 138,461 1988 81,680 61,171 142,851 1989 82,666 64,365 147,031 1990 75,710 57,876 133,586 1991 67,706 54,375 122,081 1992 58,984 58,464 117,448 1993 56,169 62,660 118,829 1994 56,127 65,126 121,253 1995 53,483 56,331 109,814 1996 48,434 57,384 105,818 1997 40,696 62,557 103,253 1998 40,041 63,571 103,612 1999 40,042 61,976 102,018 2000 39,986 60,597 100,583 2001 38,302 57,971 96,273 2002 44,289 60,318 104,607 2003 40,903 40,928 81,831 2004 39,499 43,433 82,932 2005 38,442 46,763 85,205 2006 37,788 51,387 89,175 2007 38,348 56,512 94,860 2008 38,363 57,023 95,386 2009 38,025 56,013 94,038 2010 37,660 58,988 96,648 2011( 1 ) 37,968 61,274 99,242

(1) Corresponds to September. Source: ABA based on Central Bank's data.

39


ANNUAL REPORT 2011

TABLE 18: Number of Accounts

Period Time Deposits

Savings Accounts

Current Accounts

1989 December 914,703 4,590,900 1,567,078 1990 December 821,084 5,550,187 1,507,362 1991 December 786,613 4,530,047 1,536,493 1992 December 1,064,878 4,191,733 1,755,346 1993 December 1,176,916 4,861,662 1,744,156 1994 December 1,318,297 5,931,610 1,861,979 1995 December 1,304,517 6,059,221 1,703,932 1996 December 1,521,687 6,712,506 1,881,238 1997 December 1,643,408 8,742,034 2,286,945 1998 December 1,848,985 12,084,360 2,908,606 1999 December 1,928,096 13,196,919 3,221,887 2000 December 2,080,318 13,790,783 3,204,233 2001 December 1,593,350 17,764,496 3,260,707 2002 December 1,256,816 11,329,351 2,638,476 2003 December 937,550 12,571,963 2,032,786 2004 December 902,696 14,093,178 2,286,472 2005 December 915,960 16,612,092 2,600,613 2006 March 970,244 16,613,368 2,569,251 June 1,034,620 17,067,082 2,638,351 September 1,114,441 17,525,072 2,658,044 December 1,331,322 18,143,891 2,725,302 2007 March 1,423,693 18,571,899 2,849,496 June 1,473,840 18,979,879 2,835,035 September 1,457,850 19,415,880 2,944,744 December 1,401,380 20,040,778 3,055,815 2008 March 1,442,142 20,326,072 3,138,950 June 1,364,026 20,394,806 3,236,852 September 1,418,959 20,797,243 3,348,293 December 1,355,674 18,729,168 3,354,292 2009 March 1,380,922 21,107,896 3,353,989 June 1,319,198 21,630,541 3,414,936 September 1,365,309 22,162,091 3,460,996 December 1,399,150 21,239,897 3,197,251 2010 March 1,385,185 21,039,240 3,232,356 June 1,414,353 21,205,567 3,322,853 September 1,484,154 22,009,238 3,196,732 December 1,480,857 22,761,084 3,262,965 2011 March 1,528,345 22,939,343 3,315,151 June 1,569,750 23,536,492 3,418,234 September 1,598,052 23,992,028 3,473,972

Source: ABA based on "Financial System Indicators", "Statistical Bulletin" and Information on Financial Institutions, Central Bank.

40


ANNUAL REPORT 2011

(1)

End of: Public Banks

Private Banks


Institutions


December 1987 2,005 2,553 227 4,785 December 1988 2,026 2,597 160 4,783 December 1989 2,039 2,622 107 4,768 December 1990 1,970 2,471 87 4,528 December 1991 1,905 2,345 75 4,325 June 1993 1,776 2,481 60 4,317 December 1994 1,710 2,535 59 4,304 December 1995 1,621 2,397 51 4,069 December 1996 1,455 2,563 45 4,063 December 1997 1,461 2,659 45 4,165 December 1998 1,391 2,946 42 4,379 December 1999 1,358 2,967 56 4,381 December 2000 1,377 2,862 63 4,302 December 2001 1,391 2,809 73 4,273 December 2002 1,733 2,155 58 3,946 December 2003 1,737 2,080 59 3,876 December 2004 1,608 2,161 53 3,822 December 2005 1,561 2,218 100 3,879 December 2006 1,412 2,412 99 3,923 December 2007 1,428 2,451 110 3,989 December 2008 1,421 2,480 108 4,009 December 2009 1,436 2,491 108 4,035 December 2010 1,443 2,528 79 4,050 Nov ember 2011 1,462 2,609 80 4,151

(1) Including head offices. Source: ABA based on Central Bank's data.

TABLE 19: Number of Branches

41


ANNUAL REPORT 2011

TABLE 20: Branches, Geographical Distribution (1) As of November 30, 2011

Provinces Public Banks

Private Banks

Total Banking System


Institutions


Capital Federal 160 612 772 17 789 Provinces 1,302 1,997 3,299 63 3,362

Buenos Aires 515 736 1,251 37 1,288 Catamarca 14 9 23 1 24 Córdoba 232 182 414 4 418 Corrientes 41 23 64 1 65 Chaco 43 16 59 1 60 Chubut 59 33 92 0 92 Entre Ríos 25 96 121 1 122 Formosa 5 13 18 0 18

13 1 03 52 5 yujuJLa Pampa 91 14 105 0 105 La Rioja 12 13 25 1 26 Mendoza 35 113 148 4 152 Misiones 14 50 64 1 65 Neuquén 60 25 85 1 86 Río Negro 23 45 68 0 68

45 1 35 44 9 atlaSSan Juan 7 28 35 2 37 San Luis 6 37 43 2 45 Santa Cruz 11 28 39 0 39 Santa Fe 70 354 424 3 427 Santiago del Estero 8 43 51 1 52 Tierra del Fuego 5 12 17 0 17 Tucumán 12 58 70 1 71

151,4 08 170,4 906,2 264,1 latoT

(1) Including head offices. Source: ABA based on "Information on Financial Institutions", Central Bank.

42


ANNUAL REPORT 2011

TABLE 21: ATMs, Geographical Distribution As of November 30, 2011

Provinces Public Banks

Private Banks

Total Banking System


Institutions


Capital Federal 578 2,555 3,133 3 3,136 Provinces 3,001 8,446 11,447 5 11,452

Buenos Aires 1,378 3,204 4,582 0 4,582 Catamarca 59 36 95 0 95 Córdoba 570 737 1,307 1 1,308 Corrientes 101 78 179 0 179 Chaco 139 64 203 0 203 Chubut 98 133 231 0 231 Entre Ríos 32 337 369 0 369 Formosa 7 73 80 0 80 Jujuy 13 162 175 0 175 La Pampa 70 34 104 0 104 La Rioja 11 60 71 0 71 Mendoza 92 419 511 3 514 Misiones 18 213 231 0 231 Neuquén 103 110 213 0 213 Río Negro 50 220 270 0 270 Salta 23 290 313 0 313 San Juan 11 164 175 1 176 San Luis 13 120 133 0 133 Santa Cruz 18 118 136 0 136 Santa Fe 119 1,402 1,521 0 1,521 Santiago del Estero 11 147 158 0 158 Tierra del Fuego 40 39 79 0 79 Tucumán 25 286 311 0 311

Total 3,579 11,001 14,580 8 14,588

Source: ABA based on "Information on Financial Institutions", Central Bank.

43


ANNUAL REPORT 2011

TABLE 22: Assets and Liabilities Structure

Item December 2008 December 2009 December 2010 November 2011

In Millionsof Pesos

% In Millionsof Pesos

% In Millions of Pesos


%

0.001 166,716 0.001 403,015 0.001 283,783 0.001 267,643 stessA

Cash and due from banks 55,491 16.0 67,474 17.4 88,213 17.3 88,281 14.3 Public Bonds 65,458 18.9 86,625 22.4 118,160 23.2 113,533 18.4

3.24 440,461 3.34 579,941 snaoL 223,896 43.9 318,051 51.5 Non-Financial Private Sector 132,844 38.3 145,247 37.5 199,202 39.0 284,818 46.1 Financial Sector 4,793 1.4 4,052 1.0 5,018 1.0 9,109 1.5 Public Sector 17,083 4.9 20,570 5.3 25,907 5.1 31,157 5.0

428,5- 4.1- 447,4- snoisivorP -1.5 -6,232 -1.2 -7,033 -1.1 Other Credits through Financial Intermediation 41,336 11.9 37,091 9.6 43,882 8.6 53,755 8.7

.1 099,6 0.2 397,6 stessA dexiF 8 7,377 1.4 8,063 1.3 5.6 851,52 0.8 907,72 srehtO 28,777 5.6 35,977 5.8

0.98 406,945 7.88 257,254 5.78 740,933 1.88 283,503 seitilibaiL

2.07 358,172 1.86 712,632 stisopeD 376,344 73.7 449,619 72.8 Non-Financial Private Sector 167,260 48.2 200,109 51.7 258,528 50.7 313,891 50.8 Financial Sector 1,309 0.4 1,828 0.5 919 0.2 1,001 0.2 Public Sector 67,648 19.5 69,916 18.0 116,898 22.9 134,727 21.8 Other Credits through Financial Intermediation 57,662 16.6 52,114 13.5 60,029 11.8 81,087 13.1 Promissory Notes 6,113 1.8 5,150 1.3 3,483 0.7 6,923 1.1 Foreign Credit Lines 4,670 1.3 3,458 0.9 4,019 0.8 6,416 1.0 Forwards and other Operations 8,578 2.5 4,478 1.2 4,832 0.9 6,508 1.1

.01 820,93 0.11 103,83 rehtO 1 47,694 9.3 61,240 9.9 9.3 080,51 3.3 305,11 srehtO 16,379 3.2 18,898 3.1

Stockholders' Equity 41,380 11.9 48,335 12.5 57,552 11.3 68,057 11.0


44


ANNUAL REPORT 2011

TABLE 23: Terms for Assets and Liabilities As of November 30, 2011 (in millions of Pesos)

Assets Due Portfolio

1 Month

3 Months

6 Months

12 Months

24 Months

More than 24

Months

Total

,4 174,1 983 62 rotceS cilbuP 843 432 5,840 21,451 34,451 114,1 612,6 74 rotceS laicnaniF 1,512 2,263 2,372 1,320 15,141

Non-Financial Private Sector and Foreign 596,73 135,93 345,28 867,3 stnediseR 36,446 39,589 92,808 332,380

... stessA diuqiL 88,281 ... ... ... ... ... 88,281

352,074 975,511 208,74 141,93 050,44 214,24 824,771 148,3 latoT

Liabilities 1 Month

3 Months

6 Months

12 Months

24 Months

More than 24

Months

Total

779,21 805,87 842,542 stisopeD 9,897 1,093 101,896 449,619 ... ... 778,101 stisopeD dnameD ... ... 101,877 203,753 779,21 805,87 173,341 srehtO 9,897 1,093 19 245,866

Other Financial Intermediation Obligations 28,389 2,101 2,296 4,662 4,349 5,351 47,147 358,1 918 933 942 84 6 393 knaB lartneC

International Banks and Institutions 122 187 121 35 25 57 547 329,6 239,2 786,1 103,1 763 064 671 setoN detanidrobusnU

Financing Received by Local Financial Institutions 4,643 1,354 1,582 2,824 2,156 1,108 13,668

851,42 634 241 352 871 39 650,32 srehtO 499,1 909,1 35 3 0 82 1 setoN detanidrobuS

Total 273,638 80,638 15,273 14,562 5,495 109,155 498,761


45


ANNUAL REPORT 2011

TABLE 24: Terms for Assets and Liabilities As of November 30, 2011 (as % of liabilities)


1 Month

3 Months

6 Months

12 Months

24 Months

More than 24

Months

Total

.1 3.0 1.0 0.0 rotceS cilbuP 0 0.1 1.2 4.3 6.9 3.0 2.1 0.0 rotceS laicnaniF 0.3 0.5 0.5 0.3 3.0

Non-Financial Private Sector and Foreign 6.66 6.81 9.7 3.7 6.7 9.7 5.61 8.0 stnediseR

7.71 ... ... ... ... ... 7.71 ... stessA diuqiL 3.49 2.32 6.9 8.7 8.8 5.8 6.53 8.0 latoT

Liabilities 1 Month

3 Months

6 Months

12 Months

24 Months

More than 24

Months

Total

6.2 7.51 2.94 stisopeD 2.0 0.2 20.4 90.1 Demand Deposits 20.4 ... ... ... ... 20.4 40.9

6.2 7.51 7.82 srehtO 2.0 0.2 0.0 49.3 Other Financial Intermediation Obligations 5.7 0.4 0.5 0.9 0.9 1.1 9.5

0.0 0.0 1.0 knaB lartneC 0.0 0.1 0.2 0.4 International Banks and Institutions 0.0 0.0 0.0 0.0 0.0 0.0 0.1 Unsubordinated Notes 0.0 0.1 0.1 0.3 0.3 0.6 1.4 Financing Received by Local Financial Institutions 0.9 0.3 0.3 0.6 0.4 0.2 2.7

0.0 0.0 6.4 srehtO 0.1 0.0 0.1 4.8 4.0 4.0 0.0 0.0 0.0 0.0 0.0 setoN detanidrobuS

0.001 9.12 1.1 9.2 1.3 2.61 9.45 latoT

Assets / Liabilities Ratio 0.6 0.5 2.9 2.7 8.7 1.1 0.9


46


ANNUAL REPORT 2011

TABLE 25: Terms for Assets and Liabilities As of November 30, 2011 (Percentage term structure)


1 Month

3 Months

6 12 24 More than 24

Months

Total

1.41 3.4 1.1 1.0 rotceS cilbuP 1.3 17.0 62.3 100.0 .01 3.9 1.14 3.0 rotceS laicnaniF 0 14.9 15.7 8.7 100.0

Non-Financial Private Sector and Foreign 3.11 9.11 8.42 1.1 stnediseR 11.0 11.9 27.9 100.0 ... ... 0.001 ... stessA diuqiL ... ... ... 100.0

0.001 6.42 2.01 3.8 4.9 0.9 7.73 8.0 latoT

Liabilities 1 3 6 12 24 More

than 24

Months

Total

.2 9.2 5.71 5.45 stisopeD 2 0.2 22.7 100.0 Demand Deposits 50.0 ... ... ... ... 50.0 100.0

.4 3.5 9.13 3.85 srehtO 0 0.4 0.0 100.0 Other Financial Intermediation Obligations 60.2 4.5 4.9 9.9 9.2 11.3 100.0

Central Bank 21.2 0.3 2.6 13.4 18.3 44.2 100.0 International Banks and Institutions 22.3 34.3 22.1 6.4 4.5 10.4 100.0 Unsubordinated Notes 2.5 6.6 5.3 18.8 24.4 42.4 100.0 Financing Received by Local Financial Institutions 34.0 9.9 11.6 20.7 15.8 8.1 100.0 Others 95.4 0.4 0.7 1.0 0.6 1.8 100.0

0.001 7.59 7.2 2.0 0.0 4.1 0.0 setoN detanidrobuS

0.001 9.12 1.1 9.2 1.3 2.61 9.45 latoT


Months Months Months

Month Months Months Months Months

47


ANNUAL REPORT 2011

TABLE 26: Loans and Deposits (in millions of Pesos)

Period Loans Deposits

Public Banks

Private Banks


Institutions


Public Banks

Private Banks


Institutions


1990 December 9,557 4,984 86 14,627 7,462 3,414 60 10,936 1991 December 19,952 11,415 279 31,646 6,793 9,300 223 16,316 1992 December 18,409 21,713 599 40,721 10,547 16,013 451 27,011 1993 December 21,543 25,433 722 47,698 17,324 23,347 490 41,162 1994 December 23,286 32,614 860 56,759 18,562 28,521 588 47,670 1995 December 23,580 31,702 666 55,948 17,730 27,178 324 45,233 1996 December 22,255 38,312 781 61,347 19,789 34,631 371 54,791 1997 December 23,379 45,590 1,022 69,991 24,023 46,169 336 70,527 1998 December 25,153 50,402 1,524 77,080 27,254 50,676 390 78,320 1999 December 22,060 53,732 1,907 77,699 26,946 54,275 352 81,573 2000 December 21,700 52,707 1,745 76,152 28,498 57,679 393 86,570 2001 December 20,388 48,291 1,494 70,173 21,454 44,767 226 66,447 2002 December 28,429 43,958 453 72,840 32,851 41,954 196 75,001 2003 December 17,529 40,647 492 58,668 44,732 49,687 216 94,635 2004 December 19,096 46,155 866 66,117 55,680 60,765 211 116,655 2005 December 24,472 53,326 1,444 79,241 61,708 74,495 289 136,492 2006 December 30,211 67,066 2,663 99,940 76,307 94,095 496 170,898 2007 December 37,247 86,533 4,150 127,931 88,065 116,719 767 205,550 2008 December 49,258 95,658 5,059 149,975 99,818 135,711 688 236,217 2009 December 61,231 98,069 4,744 164,044 116,292 154,387 1,173 271,853 2010 December 78,418 139,276 6,150 223,844 176,465 198,662 1,217 376,344 2011 November 115,243 193,094 9,715 318,051 205,251 242,903 1,465 449,619

Source: ABA based on "Statements of Financial Institutions", "Financial Statements of Financial Institutions" and Information on Financial Institutions, Central Bank.

48


ANNUAL REPORT 2011

TABLE 27: Loans and Deposits: Share by Groups (as a percentage)

Period Loans Deposits

Public Banks

Private Banks


Institutions


Public Banks

Private Banks


Institutions


1990 December 65.3 34.1 0.6 100.0 68.2 31.2 0.5 100.0 1991 December 63.0 36.1 0.9 100.0 41.6 57.0 1.4 100.0 1992 December 45.2 53.3 1.5 100.0 39.0 59.3 1.7 100.0 1993 December 45.2 53.3 1.5 100.0 42.1 56.7 1.2 100.0 1994 December 41.0 57.5 1.5 100.0 38.9 59.8 1.2 100.0 1995 December 42.1 56.7 1.2 100.0 39.2 60.1 0.7 100.0 1996 December 36.3 62.5 1.3 100.0 36.1 63.2 0.7 100.0 1997 December 33.4 65.1 1.5 100.0 34.1 65.5 0.5 100.0 1998 December 32.6 65.4 2.0 100.0 34.8 64.7 0.5 100.0 1999 December 28.4 69.2 2.5 100.0 33.0 66.5 0.4 100.0 2000 December 28.5 69.2 2.3 100.0 32.9 66.6 0.5 100.0 2001 December 29.1 68.8 2.1 100.0 32.3 67.4 0.3 100.0 2002 December 39.0 60.3 0.6 100.0 43.8 55.9 0.3 100.0 2003 December 29.9 69.3 0.8 100.0 47.3 52.5 0.2 100.0 2004 December 28.9 69.8 1.3 100.0 47.7 52.1 0.2 100.0 2005 December 30.9 67.3 1.8 100.0 45.2 54.6 0.2 100.0 2006 December 30.2 67.1 2.7 100.0 44.7 55.1 0.3 100.0 2007 December 29.1 67.6 3.2 100.0 42.8 56.8 0.4 100.0 2008 December 32.8 63.8 3.4 100.0 42.3 57.5 0.3 100.0 2009 December 37.3 59.8 2.9 100.0 42.8 56.8 0.4 100.0 2010 December 35.0 62.2 2.7 100.0 46.9 52.8 0.3 100.0 2011 November 36.2 60.7 3.1 100.0 45.7 54.0 0.3 100.0

Source: ABA based on "Statements of Financial Institutions", "Financial Statements of Financial Institutions" and Information on Financial Institutions, Central Bank.

49


ANNUAL REPORT 2011

TABLE 28: Information by Group of Institutions November 2011 (in millions of Pesos)

Group Assets Stockholders' Equity

Loans To Private Sector

Deposits of Private Sector

Public Federal Banks 160,627 15,866 43,063 45,866 Public Provincial and Municipal 92,393 7,965 43,482 55,058

429,001 545,68 138,32 910,352 sknaB cilbuPInternational Banks 181,654 21,053 97,591 116,458

229,81 286,051 etavirP lacoL 80,204 79,409 415,1 416,02 sevitarepooC 10,757 15,636

305,112 255,881 984,14 949,253 sknaB etavirP 724,213 790,572 913,56 969,506 latoT sknaB

Non-Banking Financial Institutions 11,692 2,737 9,722 1,465

Total Financial System 617,661 68,057 284,818 313,891

(1) Net of provisions. Source: ABA based on "Information on Financial Institutions", Central Bank.

(1)

50


ANNUAL REPORT 2011

TABLE 29: Information by Group of Institutions November 2011 (as a percentages)

Group

Assets Stockholders' Equity


(1)

Deposits of Private Sector

Public Federal Banks 26.0 23.3 15.1 14.6 Public Provincial and Municipal 15.0 11.7 15.3 17.5

2.23 4.03 0.53 0.14 sknaB cilbuPInternational Banks 29.4 30.9 34.3 37.1

8.72 4.42 etavirP lacoL 28.2 25.3 2.2 3.3 sevitarepooC 3.8 5.0

4.76 2.66 0.16 1.75 sknaB etavirP 5.99 6.69 0.69 1.89 latoT sknaB

Non-Banking Financial Institutions 1.9 4.0 3.4 0.5

Total Financial System 100.0 100.0 100.0 100.0

(1) Net of provisions. Source: ABA based on "Information on Financial Institutions", Central Bank.

51


ANNUAL REPORT 2011

TABLE 30: Income Statement – Financial System (as a percentage of net assets)

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

(1)

Financial Margin 5.7 5.7 6.5 1.1 3.1 4.6 5.8 5.7 6.7 8.6 8.5 8.0 Interest Income 4.0 3.8 -1.7 -0.5 0.9 1.5 1.8 2.2 3.1 4.3 4.3 4.6 CER and CVS Return ... ... 3.9 1.3 1.0 1.5 1.3 1.0 0.9 0.4 0.6 0.3 Difference in Valuation 0.1 0.2 2.8 -0.5 0.4 0.4 0.4 0.5 0.8 0.8 0.5 0.6 Public Bonds Return 1.2 1.2 1.7 1.1 1.0 1.2 2.2 1.9 1.4 3.3 3.2 2.6 Other Financial Income 0.4 0.5 -0.1 -0.3 -0.2 0.1 0.1 0.1 0.4 -0.1 -0.1 ...

Net Income on Services 2.8 3.0 1.9 1.9 2.0 2.3 2.7 3.1 3.6 3.9 3.8 3.9 Non-Collectibility Expenses -2.4 -2.6 -4.7 -1.1 -0.8 -0.6 -0.5 -0.7 -0.9 -1.1 -0.8 -0.7 Operating Expenses -5.8 -6.1 -4.4 -4.2 -4.1 -4.6 -5.1 -5.5 -6.1 -6.7 -6.9 -6.7 Tax Burdens -0.4 -0.5 -0.3 -0.3 -0.3 -0.4 -0.5 -0.6 -0.8 -1.0 -1.0 -1.1 Income Tax -0.3 -0.2 -0.2 -0.2 -0.1 -0.3 -0.3 -0.4 -0.4 -1.3 -1.2 -1.2 Adjustments on Public Debt Valuation (2) ... ... ... -0.4 -0.2 -0.2 -0.3 -0.3 -0.6 -0.1 -0.1 -0.1 Judicial Injunctions Amortization ... ... ... -0.6 -0.9 -0.9 -1.1 -0.7 -0.3 -0.2 -0.2 -0.1 Miscellaneous 0.4 0.6 -1.8 0.9 0.8 0.8 1.2 0.9 0.5 0.3 0.5 0.5 Monetary Adjustments ... ... -5.8 ... ... ... ... ... ... ... ... ... Total Return (3 ) Adjusted Return (4 ) ... ...

ROE (3) (1) In Pesos of December 2002. (2) Communication "A" 3911. Valuation adjustments according to Communication "A" 4084 are included in "Public bonds

return". (3) As of January 2008, data to calculate financial system consolidated result is available. This indicator excludes results and asset

headings related to shares and participation in other local financial institutions.. (4) Judicial injunctions amortization and Public Sector revaluation are not included.

Source: "Report on Banks", Central Bank.

... -0.2 -59.2 -22.7 -4.2 7.0 14.3 11.0 13.4 19.2 24.4 25.3

52


ANNUAL REPORT 2011

TABLE 31: Ratios - Financial System (as a percentage)

Liquidity Credit to Public Sector


Private Sector Non-Performing

Loans

Capital Exposure to Private

Sector

ROA

ROE

Efficiency

Capital Requirement Compliance

Excess of Minimum

Capital Requirement

Minimum Capital

Requirement (estimated)

1996 22.3 16.9 50.8 16.2 24.9 0.6

1997 26.1 16.2 47.7 13.8 22.5 1.0

1998 23.1 16.2 48.4 12.2 20.6 0.5

1999 25.0 18.0 44.9 14.0 24.7 0.2

2000 23.4 17.3 39.9 16.0 26.2 …

2001 19.6 23.0 42.7 19.1 21.9 …

2002 22.8 48.9 20.8 38.6 16.6 -8.9

2003 29.1 47.0 18.1 33.5 11.5 -2.9

2004 29.6 40.9 19.6 18.6 1.1 -0.5

2005 20.1 31.5 25.8 7.6 -2.5 0.9

2006 22.5 22.5 31.0 4.5 -0.8 1.9

2007 23.0 16.3 38.2 3.2 -1.5 1.5

2008 27.9 12.7 39.4 3.1 -1.7 1.6

2009 28.6 14.4 38.3 3.5 -1.3 2.3

2010 28.0 12.2 39.8 2.1 -3.2 2.8

2011 24.7 10.4 47.4 1.4 -4.3 2.7 (1) (Liquid assets in Central Bank + Other liquid assets + LEBAC/NOBAC from repos) / Total deposits. (2) (Public bonds (LEBAC/NOBAC not included) + Loans to Public Sector + Compensations) / Total Assets. (3) (Loans to Private Sector + leasing) / Total Assets. (4) Private Sector Non-performing loans / Loans to Private Sector. (5) (Non-performing - provisions) / Equity. Non-performing includes categories 3 to 6. (6) Total Return / Net Assets. (7) Total Return / Equity. (8) (Financial Margin (Net interest income + CER/CVS Return + Other assets return + Differences in valuation + Other financial return) + Net Non-interest income) / Operating expenses. (9) Minimum capital requirement compliance / Risk weighted assets (according to Central Bank regulations). (10) (Minimum capital compliance - requirement (considering forbearances) / Requirement. (11) Minimum capital compliance / Risk Weighted Assets (estimated). Source: "Report on Banks", Central Bank.

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)

53


ANNUAL REPORT 2011

TABLE 32: Non-Performing Loans - Financial System (as a percentage)

Dec. 2000

Dec.2001

Dec.2002

Dec.2003

Dec.2004

Dec.2005

Dec.2006

Dec. 2007

Dec.2008

Dec. 2009

Dec. 2010

Dec.2011

Non-performing Loans 12.9 13.1 18.1 17.7 10.7 5.2 3.4 2.7 2.7 3.0 1.8 1.2

Non-performing - Private Sector 16.0 19.1 38.6 33.5 18.6 7.6 4.5 3.2 3.1 3.5 2.1 1.4

Commercial Loans 14.9 20.7 44.0 38.0 22.8 9.3 5.0 3.1 … … … …

Consumer and Mortgage 17.3 17.5 31.4 28.0 11.0 4.8 3.5 3.4 … … … …

Provisions / Non-performing Loans 61.1 66.4 72.0 77.0 98.0 115.0 108.0 115.0 117.0 115.0 148.0 176.0

(Non-performing Loans - Provisions) / Total Financing 5.0 4.4 5.0 4.1 0.2 -0.8 -0.3 -0.4 -0.5 -0.5 -0.9 -0.9

(Non-performing Loans - Provisions) / Equity 26.2 21.6 18.2 13.3 0.8 -2.6 -0.9 -1.6 -1.8 -1.7 -3.6 -4.6


54


ANNUAL REPORT 2011

TABLE 33: Income Statement - Private Banks (as a percentage of net assets)

2000 2001 2002

(1) 2003 2004 2005 2006 2007 2008 2009 2010 2011

6.7 4.6 2.6 nigram laicnaniF 2.3 2.9 4.3 5.9 5.8 7.3 9.8 9.3 9.0 Interest Income 4.1 4.3 -0.2 0.1 1.0 1.7 2.1 2.7 4.4 5.3 5.5 6.1 CER and CVS Return ... ... 1.1 0.9 0.8 1.0 0.6 0.4 0.4 0.1 0.1 0.1 Difference in Valuation 0.2 0.3 4.4 -0.3 0.6 0.5 0.6 0.6 0.9 0.8 0.6 0.7 Public Bonds Return 1.4 1.2 2.5 1.7 0.8 1.0 2.4 1.9 0.9 3.7 3.2 2.1 Other Financial Income 0.5 0.7 -0.1 -0.2 -0.3 0.1 0.2 0.1 0.8 ... -0.1 ...

Net Income on Services 2.9 3.2 2.0 2.0 2.4 2.7 3.4 3.8 4.3 4.6 4.8 5.0 Non-Collectibility Expenses -2.5 -3.0 -5.0 -1.3 -0.9 -0.6 -0.6 -0.8 -1.1 -1.4 -1.0 -0.9 Operating Expenses -6.0 -6.4 -4.8 -4.6 -4.6 -5.1 -5.9 -6.3 -7.0 -7.4 -8.0 -7.8

4.0- 3.0- 3.0- 4.0- 5.0- 4.0- snedruB xaT -0.6 -0.7 -1.0 -1.2 -1.2 -1.4 3.0- 2.0- 3.0- 4.0- xaT emocnI -0.2 -0.2 -0.3 -0.2 -0.7 -1.5 -1.2 -1.4

Adjustments on Public Debt Valuation (2) 2.0- ... 6.0- ... ... ... -0.1 -0.1 -0.2 ... ... ... Judicial Injunctions Amortization ... ... ... -0.7 -1.0 -1.0 -0.9 -0.9 -0.4 -0.2 -0.2 ...

0.3- 7.0 4.0 suoenallecsiM 1.0 0.7 0.9 1.2 1.0 0.5 0.2 0.6 0.6 Monetary Adjustments ... ... -7.5 ... ... ... ... ... ... ... ... ... Total Return (3 ) 0.1 0.2 -11.3 -2.5 -1.0 0.5 2.2 1.6 1.9 3.0 3.2 3.0 Adjusted Return (4 ) 0.1 0.2 -11.3 -1.2 0.2 1.6 3.2 2.6 2.5 3.2 3.3 3.0

ROE (3 ) 1.4 1.8- 1.91- 0.97- 4.1 8.0 15.3 10.9 15.2 22.9 24.5 25.6

(1) In Pesos of December 2002. (2) Communication "A" 3911. Valuation adjustments according to Communication "A" 4084 are included in "Public bonds return". (3) As of January 2008, data to calculate financial system consolidated result is available. This indicator excludes results and asset

headings related to shares and participation in other local financial institutions. (4) Judicial injunctions amortization and Public Sector revaluation are not included.


55


ANNUAL REPORT 2011

TABLE 34: Ratios - Private Banks (as a percentages)

Liquidity Credit to Public Sector


Private Sector Non-Performing

Loans

Capital Exposure to Private

Sector

ROA

ROE

Efficiency

Capital Requirement Compliance

Excess of Minimum

Capital Requirement

Minimum Capital

Requirement (estimated)

1996 23.6 13.5 51.0 11.1 21.6 0.6

1997 26.9 13.7 46.7 8.5 14.3 0.7

1998 22.8 13.6 47.6 7.7 13.2 0.5

1999 24.3 16.1 44.6 8.9 11.5 0.3

2000 24.1 14.7 38.4 9.8 13.4 0.1

2001 23.6 20.8 45.4 14.0 11.4 0.2

2002 24.8 50.0 22.4 37.4 19.0 -11.3 -79.0 168.0 ...

2003 27.6 47.7 19.9 30.4 12.9 -2.5

2004 29.2 41.6 22.5 15.3 3.6 -1.0

2005 21.5 28.5 31.1 6.3 -0.4 0.

2006 23.7 16.3 37.9 3.6 -1.4 2.

2007 25.7 9.5 46.6 2.5 -2.0 1.

2008 34.1 6.3 44.0 2.8 -1.8 1.

2009 29.8 6.1 43.3 3.3 -1.6 3.

2010 26.0 4.4 50.3 2.0 -3.4 3.

2011 26.7 3.2 54.5 1.4 -4.3 3. (1) (Liquid assets in Central Bank + Other liquid assets + LEBAC/NOBAC from repos) / Total deposits. (2) (Public bonds (LEBAC/NOBAC not included) + Loans to Public Sector + Compensations) / Total Assets. (3) (Loans to Private Sector + leasing) / Total Assets. (4) Private Sector Non-performing loans / Loans to Private Sector. (5) (Non-performing - provisions) / Equity. Non-performing includes categories 3 to 6. (6) Total Return / Net Assets. (7) Total Return / Equity. (8) (Financial Margin (Net interest income + CER/CVS Return + Other assets return + Differences in valuation + Other financial return) + Net Non-interest income) / Operating expenses. (9) Minimum capital requirement compliance / Risk weighted assets (according to Central Bank regulations). (10) (Minimum capital compliance - requirement (considering forbearances) / Requirement. (11) Minimum capital compliance / Risk Weighted Assets (estimated). Source: "Report on Banks", Central Bank.

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)

56


ANNUAL REPORT 2011

TABLE 35: Non-Performing Loans - Private Banks (as a percentage)

Dec. 2000

Dec.2001

Dec.2002

Dec.2003

Dec.2004

Dec.2005

Dec.2006

Dec. 2007

Dec. 2008

Dec.2009

Dec.2010

Dec.2011

Non-performing Loans 8.3 9.9 19.8 15.7 8.9 4.4 2.9 2.2 2.5 3.1 1.9 1.3

Non-performing - Private Sector 9.8 14.0 37.4 30.4 15.3 6.3 3.6 2.5 2.8 3.3 2.0 1.4

Commercial Loans 8.4 15.4 44.7 39.0 18.2 7.3 3.8 2.0 ... ... ... ...

Consumer and Mortgage 11.9 12.4 26.0 17.2 10.0 4.2 3.2 3.2 ... ... ... ...

Provisions / Non-performing Loans 67.7 75.7 71.0 73.0 89.0 103.0 114.0 123.0 119.0 116.0 144.0 167.0

(Non-performing loans - Provisions) / Total Financing 2.7 2.4 5.7 4.2 1.0 -0.1 -0.4 -0.5 -0.5 -0.5 -0.8 -0.9

(Non-performing Loans - Provisions) /Equity 13.4 11.4 20.0 14.4 3.4 -0.4 -1.4 -2.1 -1.9 -1.7 -3.4 -4.4


57


ANNUAL REPORT 2011

TABLE 36: Concentration of Deposits (as a percentage)

End of: Top 5 Top 10 Top 15 Top 20 Others Number of Banks

1988 December 37.11 50.72 ... 65.34 34.66 175 1989 December 35.96 49.76 ... 67.46 32.54 176 1990 December 36.17 49.39 ... 65.63 34.37 170 1991 December 35.63 49.78 ... 67.68 32.32 166 1992 December 34.96 48.62 ... 66.25 33.75 167 1993 December 38.68 51.69 60.56 66.77 33.23 167 1994 December 36.85 50.18 58.73 65.14 34.86 168 1995 December 42.61 58.21 68.13 74.34 25.66 127 1996 December 42.33 58.40 68.76 75.25 24.75 120 1997 December 45.18 61.62 71.43 78.30 21.70 113 1998 December 48.91 70.51 79.54 84.46 15.54 104 1999 December 50.26 71.74 80.37 85.87 14.13 92 2000 December 52.33 73.18 82.77 88.55 11.45 89 2001 December 49.92 73.42 83.66 89.51 10.49 85 2002 December 54.16 77.04 85.31 90.25 9.75 78 2003 December 55.65 75.49 85.17 90.31 9.69 75 2004 December 55.16 73.72 85.02 89.99 10.01 73 2005 December 54.52 72.80 84.16 89.32 10.68 71 2006 December 55.95 73.73 84.53 89.47 10.53 72 2007 December 54.97 75.69 86.42 90.90 9.10 72 2008 December 54.06 75.62 86.24 91.03 8.97 72 2009 December 54.15 76.10 86.50 91.44 8.56 72 2010 December 56.71 76.96 87.26 92.06 7.94 72 2011 November 56.80 77.13 87.20 92.17 7.83 72

Source: ABA based on "Statements of Financial Institutions", "Financial Statements of Financial Institutions" and "Information on Financial Institutions", Central Bank.

58


ANNUAL REPORT 2011

TABLE 37: Concentration of Assets (as a percentage)

End of: Top 5 Top 10 Top 15 Top 20 Others Number of Banks

1993 December 38.19 51.28 59.73 65.71 34.29 167 1994 December 36.43 50.57 58.83 64.89 35.11 168 1995 December 39.88 55.18 64.00 69.29 30.71 127 1996 December 38.71 55.67 66.37 72.38 27.62 120 1997 December 40.89 57.73 67.64 74.05 25.95 113 1998 December 42.82 64.03 73.56 80.03 19.97 104 1999 December 45.64 68.20 77.44 83.23 16.77 92 2000 December 45.63 69.35 79.00 85.09 14.91 89 2001 December 48.71 70.90 80.97 87.01 12.99 85 2002 December 57.16 77.72 86.10 90.38 9.62 78 2003 December 57.85 76.89 85.12 89.90 10.10 75 2004 December 55.64 73.44 83.75 88.96 11.04 73 2005 December 54.80 71.59 82.19 87.54 12.46 71 2006 December 52.23 69.85 80.64 86.61 13.39 72 2007 December 50.81 70.97 82.47 87.62 12.38 72 2008 December 49.96 70.54 82.64 87.80 12.20 72 2009 December 50.96 71.95 83.54 88.28 11.72 72 2010 December 54.02 73.66 84.50 89.34 10.66 72 2011 November 52.71 73.54 83.84 89.08 10.92 72

Source: ABA based on "Statements of Financial Institutions", "Financial Statements of Financial Institutions" and "Information on Financial Institutions", Central Bank.

59


ANNUAL REPORT 2011

TABLE 38: Tranches of Deposits As of November 30, 2011

Tramos Individual Legal Persons Total

From To Number Amount Number Amount Number Amount

In

Millions of Pesos

In Millions of Pesos


0 300 15,022,945 698 1,305,438 147 16,328,383 845 301 500 835,614 334 149,937 53 985,551 387 501 1,000 1,224,303 920 215,475 141 1,439,778 1,062

1,001 2,500 2,043,954 3,436 232,010 342 2,275,964 3,778 2,501 5,000 1,803,011 6,440 147,841 488 1,950,852 6,928 5,001 10,000 1,582,642 10,983 121,633 792 1,704,275 11,774

10,001 25,000 1,535,732 23,460 126,332 1,837 1,662,064 25,297 25,001 50,000 766,002 25,495 78,114 2,638 844,116 28,134 50,001 100,000 444,135 28,551 65,034 4,368 509,169 32,919

100,001 250,000 242,869 32,504 64,761 9,675 307,630 42,179 250,001 500,000 50,728 14,931 32,288 10,433 83,016 25,364 500,001 1,000,000 15,346 8,762 20,357 12,936 35,703 21,698

1,000,001 2,500,000 5,087 6,031 15,032 21,001 20,119 27,033 2,500,001 5,000,000 1,034 2,831 6,115 18,788 7,149 21,619 5,000,001 10,000,000 331 1,879 3,546 21,859 3,877 23,738

10,000,001 25,000,000 116 1,533 2,357 31,898 2,473 33,431 25,000,001 50,000,000 26 699 757 28,482 783 29,182 50,000,001 100,000,000 8 328 253 15,537 261 15,865

100,000,001 2 225 203 99,926 205 100,152

Total 25,573,885 170,042 2,587,483 281,343 28,161,368 451,385


60


ANNUAL REPORT 2011

TABLE 39: Deposits of Private Sector, Geographical Distribution

Province IV Q2010

IV Q 2011

Change Change Share

In Millions of Pesos %

Total del País 255,831.8 324,274.4 68,442.6 26.8 100.0 Capital Federal 120,096.7 151,547.9 31,451.2 26.2 46.7 Buenos Aires 58,254.6 74,372.0 16,117.4 27.7 22.9

Greater Buenos Aires 29,823.0 37,498.7 7,675.7 25.7 11.6 Rest of Buenos Aires 28,431.6 36,873.3 8,441.7 29.7 11.4

3.0 2.73 1.242 5.298 4.056 acramataCCórdoba 17,094.9 20,881.7 3,786.8 22.2 6.4 Corrientes 1,752.8 2,412.7 659.9 37.7 0.7

9.0 2.02 7.764 9.487,2 1.713,2 ocahC 6.1 6.44 5.055,1 9.920,5 4.974,3 tubuhC

Entre Ríos 3,970.4 5,056.6 1,086.2 27.4 1.6 3.0 1.44 0.062 1.948 1.985 asomroF 6.0 2.33 1.654 6.828,1 5.273,1 yujuJ

La Pampa 1,670.8 2,168.1 497.3 29.8 0.7 2.0 9.83 0.402 8.727 8.325 ajoiR aL 6.2 5.23 2.301,2 2.965,8 0.664,6 azodneM 7.0 0.42 3.334 7.042,2 4.708,1 senoisiM 1.1 2.13 1.538 4.015,3 3.576,2 néuqueN

Río Negro 2,495.5 3,243.4 747.9 30.0 1.0 1.1 9.71 8.325 2.244,3 4.819,2 atlaS 8.0 9.52 4.335 4.195,2 0.850,2 nauJ naS 5.0 7.92 3.453 1.845,1 8.391,1 siuL naS

Santa Cruz 1,965.2 2,356.4 391.3 19.9 0.7 1.6 0.32 2.886,3 8.496,91 6.600,61 eF atnaS

Santiago del Estero 1,692.9 2,119.3 426.4 25.2 0.7 Tierra del Fuego 1,434.4 2,070.1 635.8 44.3 0.6

3.1 6.92 6.099 6.633,4 0.643,3 námucuT


61


ANNUAL REPORT 2011

TABLE 40: Loans by Type

Type of Loan December 2008 December 2009 December 2010 November 2011




% In Millions of Pesos

%

Public Sector 17,083 11.4 20,570 12.5 25,907 11.6 31,157 9.8

Financial Sector 4,793 3.2 4,052 2.5 5,018 2.2 9,109 2.9

Private Sector ( 1 ) 132,844 88.6 145,247 88.5 199,202 89.0 284,818 89.6

Overdrafts 15,503 10.3 17,798 10.8 20,680 9.2 31,031 9.8

Promissory Notes 24,628 16.4 27,041 16.5 42,093 18.8 60,253 18.9

Mortgage Loans 18,861 12.6 18,572 11.3 21,101 9.4 27,227 8.6

Pledge Loans 7,799 5.2 7,367 4.5 9,836 4.4 16,386 5.2

Consumer Loans 26,874 17.9 29,314 17.9 38,688 17.3 55,911 17.6

Others 36,534 24.4 42,597 26.0 63,853 28.5 89,829 28.2

Interest Accrued 2,645 1.8 2,558 1.6 2,953 1.3 4,183 1.3

Provisions -4,744 -3.2 -5,824 -3.6 -6,232 -2.8 -7,033 -2.2

Total 149,975 100.0 164,044 100.0 223,896 100.0 318,051 100.0

(1) It includes loans to foreign residents. Source: ABA based on "Information on Financial Institutions", Central Bank.

62


ANNUAL REPORT 2011

TABLE 41: Financing by Activity

Activity Amounts Interest Rates

Change Non-

Performing Loans

IV Q2010

IV Q2011

Millions of Pesos

% Share %

IV Q 2010

IV Q 2011

IV Q 2010

IV Q 2011

Difference %

Change %

Differerence from

Average %

Unidentified 6,857.3 9,721.1 2,863.8 41.8 3.0 10.2 9.4 22.5 27.3 4.8 21.3 2.0

Indiviual Employees 71,467.8 104,163.5 32,695.7 45.7 32.2 5.0 4.3 28.2 29.2 1.0 3.6 3.9

Primary Production 27,614.2 40,780.3 13,166.1 47.7 12.6 2.1 1.7 15.9 19.0 3.1 19.2 -6.3

Manufacturing Industry 35,520.3 52,966.8 17,446.5 49.1 16.4 2.7 2.9 14.3 20.0 5.8 40.5 -5.3

Electricity, gas and water 3,399.3 4,625.0 1,225.6 36.1 1.4 2.2 1.8 20.4 24.9 4.5 22.0 -0.4

Construction 5,042.6 7,088.3 2,045.7 40.6 2.2 6.9 4.9 20.2 27.7 7.5 37.1 2.4

Commerce 15,753.9 23,321.9 7,568.0 48.0 7.2 2.6 2.2 17.7 24.6 6.8 38.5 -0.7

Services 24,461.5 33,764.4 9,302.9 38.0 10.4 6.7 5.4 20.9 28.1 7.2 34.3 2.8

Public Administration, Defense and Social Security

22,044.8 28,707.5 6,662.7 30.2 8.9 0.1 0.2 28.5 29.8 1.2 4.3 4.5

Financial Intermediation 10,263.2 17,990.4 7,727.2 75.3 5.6 4.5 2.7 17.2 18.8 1.6 9.2 -6.5

Total 222,425.0 323,129.1 100,704.2 45.3 100.0 3.9 3.4 22.0 25.3 3.3 15.1 ...

Private Sector 190,116.9 276,431.2 86,314.3 45.4 85.5 4.3 3.8 21.4 25.2 3.8 17.6 -0.0


63


ANNUAL REPORT 2011

TABLE 42: Financing by Activity (as a percentage)

Primary Production

Manufacturing Industry

Electricity, Gas and Water

Construction Commerce Services Individual Employees

Non-Identified

Total

1990 9.0 23.9 7.4 5.9 6.6 23.3 21.7 2.2 100.0 1991 11.1 20.8 3.0 6.4 11.4 21.5 22.6 3.2 100.0 1992 12.6 20.6 1.3 5.1 15.1 20.1 20.7 4.5 100.0 1993 12.4 19.5 2.5 4.2 17.0 21.5 18.1 4.8 100.0 1994 10.8 18.0 2.0 4.2 15.7 23.6 20.2 5.5 100.0 1995 10.3 18.5 2.1 4.3 13.9 25.0 20.2 5.7 100.0 1996 9.2 19.4 2.1 4.1 12.3 26.8 21.7 4.5 100.0 1997 9.1 18.1 2.0 3.5 11.6 27.1 23.9 4.7 100.0 1998 9.1 16.5 2.2 3.6 10.5 26.5 24.9 6.8 100.0 1999 8.1 14.6 1.8 3.7 9.8 28.0 28.3 5.7 100.0 2000 8.9 11.5 1.6 3.5 8.7 37.7 24.8 3.2 100.0 2001 8.2 9.3 1.5 3.0 6.3 42.2 24.1 5.4 100.0 2002 5.7 7.7 2.2 2.5 4.3 54.6 16.6 6.4 100.0 2003 6.6 8.8 1.2 2.2 4.5 52.0 16.4 8.2 100.0 2004 7.8 12.6 1.1 2.4 5.2 46.4 16.6 8.0 100.0 2005 10.4 16.2 0.9 2.3 6.2 36.5 23.4 4.1 100.0 2006 10.9 17.0 1.2 2.2 6.9 32.4 26.0 3.3 100.0 2007 11.5 16.5 1.4 2.1 7.5 26.4 31.3 3.4 100.0 2008 12.5 16.4 1.4 2.0 6.6 23.0 33.9 4.3 100.0 2009 12.9 15.5 1.4 2.3 6.2 25.4 33.1 3.3 100.0 2010 12.4 16.0 1.5 2.3 7.1 25.6 32.1 3.1 100.0 2011 12.6 16.4 1.4 2.2 7.2 24.9 32.2 3.0 100.0


64


ANNUAL REPORT 2011

TABLE 43: Non-Performing Loans by Activity As a percentage on total financing of each activity

Primary

Production Manufacturing

Industry Electricity,

Gas and Water

Construction Commerce Services Individual Employees

Non-Identified

Total

1990 27.0 23.1 3.3 13.6 19.7 17.8 2.8 45.9 16.0 1991 24.4 17.7 62.8 10.7 18.1 26.9 7.6 26.6 19.4 1992 23.4 18.4 7.4 13.4 16.8 16.2 7.2 15.8 15.5 1993 22.1 21.1 3.3 16.5 18.0 13.1 9.1 17.5 15.8 1994 30.5 23.7 4.1 19.7 23.9 10.0 12.5 17.6 18.0 1995 33.0 21.4 1.3 23.8 31.9 10.8 29.9 21.4 22.7 1996 24.6 15.9 1.8 15.9 25.5 6.9 22.7 20.5 16.8 1997 21.7 14.7 0.8 14.0 22.8 6.2 15.0 18.4 13.9 1998 17.4 14.6 1.2 11.5 20.0 4.7 14.7 11.2 12.1 1999 23.4 15.7 1.3 12.1 22.4 4.7 15.0 18.3 13.4 2000 27.2 20.7 2.1 22.3 28.1 6.9 21.8 25.3 16.9 2001 30.6 29.0 2.7 24.9 30.1 10.3 25.8 30.8 20.1 2002 50.2 48.3 59.1 58.0 49.7 11.6 37.8 39.5 26.6 2003 42.1 41.8 68.6 75.2 45.1 8.7 24.3 41.8 22.9 2004 21.9 20.0 56.1 54.6 27.8 5.3 17.5 24.6 14.9 2005 7.5 7.0 45.9 43.9 8.5 3.5 10.2 23.8 8.5 2006 4.3 5.8 25.5 29.9 3.7 5.3 10.2 15.6 7.6 2007 2.5 3.6 12.2 18.3 2.1 4.6 7.5 31.1 6.2 2008 3.1 2.4 4.3 8.5 3.2 4.1 6.7 22.0 5.4 2009 4.0 4.4 3.1 13.6 4.9 4.1 8.0 21.9 6.3 2010 2.1 2.7 2.2 6.9 2.6 3.7 5.0 10.1 3.9 2011 1.7 2.9 1.8 4.9 2.2 2.9 4.3 9.4 3.4


65


ANNUAL REPORT 2011

TABLE 44: Loans to Private Sector, Geographical Distribution

Province

Montos

IV Q 2010

IV Q2011

Change Change Share Non-Performing

In Millions of Pesos %

Total 190,116.9 276,431.2 86,314.3 45.4 100.0 3.8 Capital Federal 96,427.0 135,420.2 38,993.2 40.4 49.0 3.9 Buenos Aires 34,761.1 51,978.7 17,217.6 49.5 18.8 3.8

Greater Buenos Aires 17,689.2 26,805.5 9,116.2 51.5 9.7 5.0 Rest of Buenos Aires 17,071.9 25,173.2 8,101.3 47.5 9.1 2.6

1.573 acramataC 487.2 112.2 29.9 0.2 3.1 Córdoba 12,195.5 18,578.9 6,383.4 52.3 6.7 2.4 Corrientes 1,048.8 1,868.4 819.6 78.2 0.7 3.6

.207,2 8.426,1 ocahC 5 1,077.7 66.3 1.0 2.7 .899 1.363,3 9.463,2 tubuhC 2 42.2 1.2 4.0

Entre Ríos 3,019.3 4,653.8 1,634.6 54.1 1.7 2.9 9.032 8.586 9.454 asomroF 50.8 0.2 5.6

,1 8.610,1 yujuJ 452.9 436.1 42.9 0.5 2.8 La Pampa 1,480.4 2,183.7 703.3 47.5 0.8 2.6

4.771 7.266 4.584 ajoiR aL 36.5 0.2 10.8 Mendoza 3,915.5 6,006.5 2,091.0 53.4 2.2 4.2

,3 2.442,2 senoisiM 464.1 1,219.9 54.4 1.3 2.1 Neuquén 2,293.5 3,426.7 1,133.1 49.4 1.2 3.5 Río Negro 1,363.8 2,004.8 641.0 47.0 0.7 9.0

.933,4 4.217,2 atlaS 9 1,627.5 60.0 1.6 3.4 .325 4.964,1 4.649 nauJ naS 1 55.3 0.5 4.5

8.482 2.909 3.426 siuL naS 45.6 0.3 7.7 Santa Cruz 1,268.9 1,476.2 207.3 16.3 0.5 4.0 Santa Fe 13,762.3 20,329.8 6,567.6 47.7 7.4 2.4 Santiago del Estero 1,081.3 1,518.7 437.4 40.5 0.5 5.8 Tierra del Fuego 1,079.8 1,748.5 668.7 61.9 0.6 4.0 Tucumán 3,570.3 5,699.0 2,128.7 59.6 2.1 8.9


66


ANNUAL REPORT 2011

TABLE 45: Interest Rates on Loans to Private Sector, Geographical Distribution

Province IV Q2010

IV Q 2011

Difference Change Difference from

Average %

Total 21.4 25.2 3.8 17.6 … Capital Federal 19.7 23.7 4.0 20.0 -1.5 Buenos Aires 25.2 28.1 2.9 11.4 2.9

Greater Buenos Aires 25.2 28.3 3.1 12.2 3.1 Rest of Buenos Aires 25.3 28.0 2.6 10.4 2.7

Catamarca 25.3 27.3 2.0 8.0 2.1 .3 0.42 0.12 abodróC 1 14.7 -1.2

Corrientes 20.5 25.3 4.8 23.3 0.1 .5 3.92 9.32 ocahC 4 22.6 4.1

2.62 0.42 tubuhC 2.2 9.2 1.0 Entre Ríos 24.2 26.4 2.2 9.0 1.1

6.92 1.52 asomroF 4.6 18.2 4.4 .7 9.03 4.32 yujuJ 5 32.2 5.6

La Pampa 18.9 22.3 3.4 18.2 -2.9 3.72 1.62 ajoiR aL 1.1 4.4 2.0 3.52 5.32 azodneM 1.8 7.6 0.1 2.92 2.22 senoisiM 7.0 31.6 4.0 1.62 7.52 néuqueN 0.4 1.5 0.9

Río Negro 26.1 29.2 3.1 12.1 4.0 .5 3.82 6.22 atlaS 7 25.3 3.1

7.82 0.42 nauJ naS 4.6 19.2 3.4 9.0 7.0- 2.0- 1.62 3.62 siuL naS

Santa Cruz 28.9 30.6 1.7 5.9 5.4 2.52 2.91 eF atnaS 6.0 31.4 0.0

Santiago del Estero 31.2 33.4 2.2 6.9 8.2 Tierra del Fuego 23.6 25.7 2.1 8.7 0.5

9.0- 2.22 4.4 3.42 9.91 námucuT


67


ANNUAL REPORT 2011

TABLE 46: Financing by Tranches As of November 30, 2011

Tranches Individual Legal Persons Individual Legal Persons

From To Number Amount Number Amount Number Amount Number Amount

In Millionsof Pesos

In Millionsof Pesos

% % % %

0 300 308,880 81.7 9,774 2.4 3.0 0.1 7.3 0.0 301 500 374,539 168.2 5,176 2.3 3.7 0.1 3.9 0.0 501 1,000 835,614 662.7 6,094 4.7 8.2 0.5 4.6 0.0

1,001 2,500 1,792,755 3,136.0 8,824 15.2 17.6 2.1 6.6 0.0 2,501 5,000 1,796,791 6,621.9 9,236 34.4 17.7 4.5 6.9 0.0 5,001 10,000 1,798,817 12,950.8 11,983 86.3 17.7 8.8 9.0 0.0

10,001 25,000 1,858,639 29,688.8 14,841 242.6 18.3 20.2 11.1 0.1 25,001 50,000 883,712 30,741.7 11,196 405.9 8.7 21.0 8.4 0.2 50,001 100,000 352,799 23,836.6 11,346 817.9 3.5 16.2 8.5 0.3

100,001 200,000 123,286 16,904.3 11,576 1,662.3 1.2 11.5 8.7 0.7 200,001 500,000 44,195 12,447.3 13,578 4,373.1 0.4 8.5 10.1 1.9 500,001 1,000,000 5,604 3,750.3 7,542 5,304.8 0.1 2.6 5.6 2.3

1,000,001 2,500,000 1,905 2,770.4 6,154 9,586.2 0.0 1.9 4.6 4.1 2,500,001 5,000,000 318 1,081.3 2,630 9,280.3 0.0 0.7 2.0 3.9 5,000,001 10,000,000 113 762.8 1,600 11,260.6 0.0 0.5 1.2 4.8

10,000,001 25,000,000 44 654.8 1,169 18,275.5 0.0 0.4 0.9 7.8 25,000,001 50,000,000 7 226.4 498 17,516.6 0.0 0.2 0.4 7.4 50,000,001 100,000,000 1 72.9 287 19,725.2 0.0 0.0 0.2 8.4

100,000,001 1 148.7 296 136,668.1 0.0 0.1 0.2 58.1

Total 10,178,020 146,707.5 133,800 235,264.4 100.0 100.0 100.0 100.0


68


ANNUAL REPORT 2011

TABLE 47: Financing by Tranches and Situation As of November 30, 2011 (as a percentages)

Tranches(1) Performing (1) Non-Performing (2) Non-Collectible (3) From

To Number of

Debtors

Debt Amount

Number of

Debtors

Debt Amount

Number of

Debtors

Debt Amount

0 300 83.3 83.1 3.6 3.6 13.1 13.3 301 500 84.1 84.1 3.3 3.3 12.6 12.6 501 1,000 85.1 85.2 3.2 3.2 11.7 11.6

1,001 2,500 87.5 87.7 3.2 3.1 9.3 9.1 2,501 5,000 89.6 89.7 2.9 2.8 7.5 7.5 5,001 10,000 90.4 90.5 2.7 2.7 6.8 6.7

10,001 25,000 93.1 93.4 2.0 1.9 4.9 4.7 25,001 50,000 95.5 95.6 1.2 1.2 3.2 3.2 50,001 100,000 95.3 95.3 1.0 1.0 3.7 3.8

100,001 200,000 95.6 95.7 0.7 0.7 3.7 3.7 200,001 500,000 95.6 95.5 0.7 0.8 3.7 3.7 500,001 1,000,000 96.1 96.1 0.9 0.9 3.0 3.0

1,000,001 2,500,000 95.8 95.9 0.9 0.9 3.3 3.3 2,500,001 5,000,000 96.3 96.3 0.6 0.6 3.0 3.0 5,000,001 10,000,000 97.3 97.4 0.4 0.4 2.3 2.2

10,000,001 25,000,000 97.8 97.8 0.6 0.6 1.7 1.7 25,000,001 50,000,000 98.0 98.1 0.7 0.7 1.3 1.2 50,000,001 100,000,000 97.6 98.0 ... ... 2.4 2.0

100,000,001 99.5 99.7 ... ... 0.5 0.3 Total 8.2 1.8 8.0 7.2 4.69 2.98

(1) Includes categories 1 and 2. (2) Includes categories 3 and 4. (3) Includes categories 5 and 6. Source: ABA based on "Information on Financial Institutions", Central Bank.

69


ANNUAL REPORT 2011

TABLE 48: Concentration of Credit Assistance As of November 30, 2011

Number of Institutions

Individual Legal Persons Individual Legal Persons

Number Amount Number Amount Number Amount Number Amount

In

Millions of Pesos


% % % %

1 6,595,458 55,064.1 95,592 33,261.9 64.8 37.5 71.4 14.1 2 2,391,417 47,886.8 22,366 41,530.2 23.5 32.6 16.7 17.7 3 808,000 24,976.5 8,295 20,493.0 7.9 17.0 6.2 8.7 4 263,348 11,007.3 3,477 20,450.5 2.6 7.5 2.6 8.7 5 or more 119,797 7,772.7 4,070 119,528.7 1.2 5.3 3.0 50.8

Total 10,178,020 146,707.5 133,800 235,264.4 100.0 100.0 100.0 100.0


70


ANNUAL REPORT 2011

TABLE 49: Minimum Reserves Requirements (as a percentage)

Since

Item January 2008

November2008

1. Deposits in current accounts and demand deposits in cooperative credit unions. 19 19

2. Deposits in savings accounts .stnuocca cisab dna 91 91 .)41 tpecxe( .soseP nI .1.2 02 03 .ycnerruC ngieroF nI .2.2

3. Custody accounts, special accounts for closed savings groups, "Unemployment fund for construction workers", "Salaries", "Special current accounts for legal persons" and "Savings accounts to universal assitance for social protection of children - Dec. 1602/09".

91 91 .)41 tpecxe( soseP nI .1.3 02 03 .ycnerruC ngieroF nI .2.3

4. Other demand deposits and obligations, pension payments granted by ANSES outstanding payment and immobilized funds corresponding to obligations comprised in these rules.

91 91 .)41 tpecxe( .soseP nI .1.4 02 03 .ycnerruC ngieroF nI .2.4

91 91 .sdnuf stfardrevo desunU .5

6. Deposits in current accounts made by non-banking financial institutions computable for compliance of their minimum reserves requirements.

100 100

7. Time deposits, "acceptance" obligations -including liabilities for credit sale or assignment to persons other than financial institutions-, repos, stockrelated collaterals and repos, constant term investments, with advance settlement option or with renewal term for a fixed term and with variable compensation, and other term obligations, except for deposits comprised in items 11, 12, 13 and 15, according to their remaing term:

:soseP nI .1.7 41 41 .syad 92 ot pU )i 11 11 .syad 95 ot 03 morF )ii 7 7 .syad 98 ot 06 morF )iii 2 2 .syad 971 ot 09 morF )vi 0 0 .syad 081 naht eroM )v

Deposits with "CER" indexation clause are included in this item. :ycnerruC ngieroF nI .2.7 02 53 .syad 92 ot pU )i 51 82 .syad 95 ot 03 morF )ii 01 02 .syad 98 ot 06 morF )iii 5 01 .syad 971 ot 09 morF )vi 2 6 .syad 563 ot 081 morF )v 0 0 .syad 563 naht eroM )iv

8. Obligations under foreign lines of credit (except those included in items 7 and 9) 0 0

71


ANNUAL REPORT 2011

TABLE 49: Minimum Reserves Requirements (continued)(as a percentage)

.)seton gnidulcni( seitiruces tbeD .9a) Debt issued as of 01.01.02, including debts arising from restructured obligations, according to their remaining term:

:soseP nI .1.9 41 41 .syad 92 ot pU )i 11 11 .syad 95 ot 03 morF )ii 7 7 .syad 98 ot 06 morF )iii 2 2 .syad 971 ot 09 morF )vi 0 0 .syad 081 naht eroM )v

:ycnerruC ngieroF nI .2.9 02 53 .syad 92 ot pU )i 51 82 .syad 95 ot 03 morF )ii 01 02 .syad 98 ot 06 morF )iii 5 01 .syad 971 ot 09 morF )vi 2 6 .syad 563 ot 081 morF )v 0 0 .syad 563 naht eroM )iv 0 0 .srehtO )b

10. Obligations towards the Trust Fund For Assistance to Financial Institutions and Insurance Companies.

0 0

11. Demand an time deposits made under Court order with funds originating in lawsuits, and their immobilized funds.

01 01 :soseP nI .1.11 01 51 :ycnerruC ngieroF nI .2.11

.sdnuF tsurT fo stisopeD .21 91 91 :soseP nI .1.21 02 04 :ycnerruC ngieroF nI .2.21

13. Special deposits linked to foreign capital inflows -Decree 616/05- 100 100

14. Deposits and other demand obligations in pesos (except "Unemployment fund for construction workers"), which interest rate were higher than 15% of the average BADLAR interest rate of private banks.

100

100

15. Transferable time deposits certificates of public sector, denominated in pesos, with an option to be payed off in the next 30 days since its initial date. 16 16

Note: The Central Bank determine a temporary reduction of daily minimum requirement from 50% to 30%since 12-6-2010 to 4-30-2011.

EXHIBIT

ANNUAL REPORT, 2011

72

EXHIBIT Principal Banking, Exchange and Financial Policy Measures Communication "B" 9991. (January 3, 2011) The Argentine Central Bank (BCRA) reminded the effectiveness of the new provisions enabling the implementation of the Universal Free Bank Account; the provisions that set maximum charges and/or commissions applicable to the transfer of funds service between peso-denominated accounts; and those relative to the provision and use of the financial payment check, known as cheque cancelatorio. Communication "B" 9994. (January 3, 2011) The BCRA called for the Third Auction of funds for general purpose loans to be held on January 7, 2011, under the BCRA Advance Scheme which provides resources to financial entities to be used for financing the productive sector. Press release 49797. (January 7, 2011) It published the outcome of the third auction of funds under the BCRA Advance Scheme which provides resources to financial entities to be used for financing the productive sector. The total amount of auctioned resources amounted to ARS 470 million against aggregate bids of ARS 455 million, and was awarded to 5 financial entities. Communication "B" 9999. (January 7, 2011) It provided that, effective January 10, 2011, it would be possible to conduct transactions to settle DVP (Delivery Versus Payment) through the SIOPEL system of the Argentina Over-the-Counter market known as (MAE), with all items being authorized to being held at the Center for the Registration and Settlement of Public Debt Instruments (CRyL). Communication "A" 5170. OPASI - 2 - 424. (January 11, 2011) The Central Bank increased the coverage limit of the Deposit Guarantee Insurance from ARS 30,000 to ARS 120,000.

EXHIBIT

ANNUAL REPORT, 2011

73

Communication "B" 10007. (January 19, 2011) The Central Bank reminded the effectiveness of Communication "B" 9932 regarding upgrade of the Central Bank’s private external communications network. In this respect, it was informed that upon expiration of the term established for the implementation of such Communication, the BCRA cannot assure resources and applications will either operate or be available for use by entities who fail to finalize the upgrade of their communications links with the BCRA by April 30, 2011. Communication "A" 5175. RUNOR - 1 - 959. (January 24, 2011) The BCRA published the regulatory operating instructions of Ley 26,637 relative to the implementation of security measures to be complied with by financial entities. The requirements to be complied with by financial entities are: installation of side partitions at tellers and ATMs; application of technical requirements already in force for the construction of armored-plated treasury rooms to the facilities used to provide safe deposit boxes for rent; and adoption of different technical means and rules to effect the prohibition of mobile equipment use. Communication "B" 10010. (January 24, 2011) It clarified matters related to the effective rules of the safety device control, operation and maintenance program and security cabin instructions and orders, respectively, to be included in each financial entity's safety/security plan. In this respect, and in light of the current dynamics of crime, it clarified that such provisions call for an ongoing revision of the safety/security plan to include any mechanism/procedures designed to assure the effective and timely articulation of all the measures needed to facilitate the immediate intervention of jurisdictional security bodies in order to aid effectively in the compliance of such bodies' mission, in the face of any specific situation or potential risk affecting or likely to affect the security of the institution, the staff, the clients, and the public at large. Communication "A" 5177. RUNOR - 1 - 960. (January 27, 2011) The Regulatory Authority made some clarifications regarding the BCRA’s Advance Scheme which provides resources to financial entities to be used for financing the productive sector, and extended the expiration date for presentation of the Regime until February 21, 2011.

EXHIBIT

ANNUAL REPORT, 2011

74

Communication "B" 10012. (January 27, 2011) With relation to the Credit Facility for Production Development and Competitiveness in Mendoza province, the BCRA held the first auction of the Facility Funds on February 16, 2011, whereby it distributed a total amount of ARS 18 million to be onlent for financing investment projects, capital goods, working capital or technical assistance. Communication "A" 5179. RUNOR - 1 - 864. (January 28, 2011) The temporary reduction of the daily minimum requirement in pesos to 30% was extended until April 30, 2011. Communication "A" 5180. LISOL - 1 - 531, OPRAC - 1 - 652 and CONAU - 1 - 943. (February 14, 2011) The rules on valuation of non-financial public debt instruments and the Central Bank’s monetary regulation were amended. Among the major changes was the substitution of the valuation criteria applicable to such instruments as from March 1, 2011 and the elimination of the total value limitation on government securities held in Investment Accounts and Special Investment Accounts relative to total assets. It also provided that financial entities will be able to capitalize any loss that may arise as of March 1, 2011 from the application of the valuation rules, and write it off over 60 equal and consecutive monthly installments, at most, starting April 2011, with an annual write off of at least 1% against Adjusted Stockholders Equity (locally called Responsabilidad Patrimonial Computable or RPC) as of December 31, 2010. Communication "A" 5181. CAMEX -1 - 667. (February 14, 2011) Effective February 15, 2011, changes were made to the transfers of funds received and transferred abroad. In this regard, minimum identification guidelines were established for transferors and transferees that are to be used in this type of transactions. Communication "A" 5183. RUNOR - 1 - 961, LISOL - 1 - 532, OPASI - 2 - 425 and OPRAC - 1 - 653. (February 16, 2011). The BCRA modified the rules governing the performance of custodian and registrar functions. In this respect, certain parts of the consolidated text concerning Minimum Capital Requirement of financial entities were updated and modified to incorporate the Guarantee Fund for the Sustainability of the Argentine Integrated Retirement System (FGS) in place of

EXHIBIT

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the retirement and pension funds. In addition, the rules on Investments made with funds from the Retirement and Pension Funds were repealed. Asset rating. On the other hand, for as long as the suspension of the Financial Entities Assessment system subsists, new provisions will apply in order to comply with the rating requirements, insofar as they are applicable. The changes also affect the rules on collateral asset allocation in particular, temporary rating requirements, and supplementary services of financial activity and permitted activities. Communication "A" 5184. CAMEX - 1 - 668. (February 17, 2011) New provisions were announced regarding the regulatory framework for access to the local exchange market for payments made by or to be made to Official Export Credit Agencies deriving from transactions made under ALADI's Agreement on Reciprocal Payments, service of principal and related income, financing disbursed by the Agency abroad to finance infrastructure works in the country in respect of completed works, works in progress and future works, upon completion of a series of conditions established in this Circular. Press release 49819. (February 17, 2011) It published the outcome of the first auction of funds under the Credit Program for Production Development and Competitiveness of Mendoza province, held on February 16, 2011. The total funds auctioned with IDB Funds amounted to ARS 18 million. The auction was oversubscribed by 92% at ARS 34.48 million. As a consequence, the funds offered were awarded in full. Seven (7) entities were awarded. Communication "A" 5188. CONAU - 1 - 948 and LISOL - 1 - 533. (February 25, 2011)

Clarifications were made regarding the valuation of non-financial public debt instruments and monetary regulation of such Institution, as follows:

Financial entities should specify the business model upon which management of their government securities is based, indicating the proportion of securities that may be valued at fair market value when using the margin indicated in 2.2.9 of Section 2 (government securities that may be valued market fair value but are accounted for at cost plus yield) but are valued at cost plus yield method instead.

Securities which cease to appear in the lists of volatilities or present values published by the BCRA should be classified under "Cost plus Yield" segment and recorded at book value.

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Securities received through exchange, datio in solutum or swap of other

government debt securities expressly admitted for such purposes by the competent national authority, which as of February 28, 2011 are classified under "Investment accounts" may be accounted for at book value in accordance with the valuation method set forth in 2.2.3 of the rule referred to above, upon incorporation.

Assets delivered as collateral for advances granted by the BCRA for underwriting of bonds contemplated in sections 10, 11 and 12 of Executive Order No. 905/02 registered as per the provisions of section 17 of the above cited executive order may continue to be valued under such method (value admitted for collateralization purposes, adjusted for inflation by application of the CER, where necessary).

National government securities allocated to margin accounts for securities trading and intermediation transactions, provided for entities recording permissible excesses to the limits of credit risk partition for financing the non-financial government sector shall be registered in accordance with Section 1 (market fair value and allowance for valuation fluctuations), notwithstanding its computation at cost plus yield for purposes of determining the margin.

Communication "B" 10033. (March 3, 2011) The BCRA held the fourth Auction of funds for general purpose loans on March 4, 2011 under the BCRA Advance Scheme which provides resources to financial entities to be used for financing the productive sector. The total disbursable amount is ARS 260 million. Communication "A" 5190. CONAU - 1 - 950. (March 10, 2011) The term for submitting the Business and Projection Plan corresponding to, 2011-2013 period was extended until April 18, 2011. Press release No. 49829. (March 10, 2011) The BCRA released the results of the fourth auction of funds for general purpose loans under the BCRA Advance Scheme which provides resources to financial entities to be used for financing the productive sector. The total amount of auctioned resources amounted to ARS 260 million and bids were received for ARS 231.7 million. The amounts were awarded to six (6) entities.

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Communication "A" 5192. SINAP - 1 - 23. (March 11, 2011) It updated the form of registered fixed-term deposit certificates established by the rules on Payment instrument characteristics issued by financial entities. Communication "A" 5193. LISOL -1 - 534. (March 14, 2011) The Rules on Credit Risk Exposure Limits were amended in respect of the limits to be observed by any one financial entity providing financing to another local financial entity, within the country or to foreign branches, including balances in correspondent accounts, excluding accounts that are computed for purposes of the minimum cash requirement in local or foreign currency. Communications "A" 5194. SINAP - 1 - 24, LISOL - 1 - 535 and OPASI - 2 - 426. (March 18, 2011) The Central Bank authorized immediate transfers of funds, both in pesos and in dollars, through automatic tellers and "home banking" sites. The deadline for entities to complete the implementation of peso- and dollar-denominated transfers was April 25, 2011 and May 31, 2011, respectively. Furthermore, maximum amounts were fixed for each type of transfer, which amounts may be increased by financial entities. Entities shall transfer up to ARS 10,000 per day and account for transactions originated in automatic tellers, and up to ARS 50,000 for transactions conducted via Internet-"home banking". In addition, entities shall transfer up to USD 2,500 per day and account for transactions originated in automatic tellers, and up to USD 12,500 for transactions conducted via Internet-"home banking". Communication "A" 5195. SINAP - 1 - 25. (March 18, 2011) It set forth the operating instructions that should be followed by financial entities regarding immediate fund transfers provided for by the BCRA through Communication "A" 5194. In this regard, it was established that each financial entity shall define the authentication mechanism users should employ to operate in each such channel, in accordance with the entity’s security measures. The communication also established that participating entities and clearing service providers shall conduct a series of controls over on-line transactions and set out the distribution of responsibilities between financial entities and the above mentioned providers.

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Communication "A" 5196. SINAP - 1 - 26. (March 18, 2011) It informed the provisions that will rule the guarantees to be granted in favor of Electronic Clearing Houses as from the implementation of immediate fund transfers. Communication "C" 58265. (April 4, 2011) The BCRA established that in respect of guarantees granted by the funds specified below, the entities shall apply the specific treatment contemplated for funds issued by reciprocal guarantee companies filed with the Registry of Reciprocal Guarantee Companies at the Superintendency of Financial and Exchange Entities, namely: Fondo de Garantías Buenos Aires S.A.P.E.M. (FOGABA); System of guarantees of Entre Ríos province (SIGAER), through the Guarantee fund of Entre Ríos province (FOGAER); Guarantee fund for micro, small and medium-sized companies (FoGaPyME). Communication "A" 5200. CIRMO - 3 - 43. (April 8, 2011) The Central Bank informed the issuance of 100-peso bills Series T, which shall incorporate the change in typography introduced for already printed Series "S" bills. They are characterized by: horizontal numbering - with equally sized digits - visible on the bottom left angle and the upper right angle on the front of each bill. Communication "B" 10065. (April 8, 2011) The BCRA recommended that entities should exhibit -in the area of tellers of all their branches- an information poster specifying the characteristics of 100-peso bills Series "T". Communication "B" 10073. (April 25, 2011) A new procedure was created to register the returns of immediate fund transfers. Communication "B" 10086. (May 5, 2011) The Regulatory Authority called the Seventh Auction of Funds of the Credit Program for Production and Employment Promotion in San Juan province (IDB loan) -in this case with IDB’s resources- scheduled for May 11, 2011.

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Press release 49682. (May 20, 2011) The BCRA released the results of the Seventh Auction of Funds of the Credit Program for Production and Employment Promotion in San Juan province (IDB loan). Auctioned resources totaled ARS 18,1 million. Bids received (ARS 19,275 million) exceeded the auctioned amount by 6.5%. Funds were awarded to eight (8) banks. Communication "B" 10087. (May 5, 2011) The Central Bank requested that the relevant tests be conducted on the new institutional scheme of courier service and file transfer. To such aim, the homologation environment was set up on March 28, 2011 for the performance of free tests. Every entity had to verify that it met the conditions for utilizing the services available in such environment, contemplating technical aspects and changes to be made in their internal processes and/or procedures. Communication "A" 5201. RUNOR - 1 - 964. (May 9, 2011) It provided that financial entities should have effectively implemented a Corporate Governance Code as from January 2, 2012, which takes into consideration the guidelines established in this regulation. Such Code shall specify the manner the entity’s Board of Directors and the Upper Management run their activities and businesses. Communication "B" 10091. (May 13, 2011) The Central Bank held the fifth auction of funds under the Program for financing the productive sector, which awarded the full auction amount, i.e.: ARS 280 million. Press release 49867. (May 20, 2011) The BCRA released the results of the fifth auction of funds intended for general purpose loans targeted at the productive sector for ARS 280 million, held on May 20, 2011. Bids were received for ARS 305.1 million in excess of the auctioned amount. Communication "B" 10095. (May 17, 2011) The Regulatory Authority communicated that based upon the information as of January 2, 2012, in the task SISCEN-0018 "Interest rates on loans", entities should state the purpose of personal loans as specified by borrower.

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Communication "A" 5203. RUNOR - 1 - 965, LISOL - 1 - 537 and OPRAC - 1 - 654. (May 23, 2011) The Central Bank approved the Guidelines for risk management of financial entities and established that, effective January 2, 2012, entities should have in place a comprehensive process for risk management that should include supervision by the Board of Directors and the Upper Management in order to identify, assess, follow up, control and mitigate all material risks, to wit: credit, liquidity, market, interest rate and operating risk for managing: credit, liquidity, market, interest rate and operational risks. Such guidelines constitute risk management good practices and are not substitutes for the specific requirements established by Central Bank Regulations; in addition, they should be implemented in conformity with the powers conferred upon the Board of Directors by the Shareholders’ Meeting or the corporation’s management body exercising similar functions and within the context of the legal provisions in force. Interbank Committee on Means of Payment of Argentina Bulletin 436. (June 10, 2011) The Central Bank informed that the new methodology and price scale for direct debits will apply to debits submitted as from June, 2011 and settled as from July, 2011. Communication "A" 5204. OPASI - 2 - 427. (June 14, 2011) The Regulatory Authority modified the procedure for closing Savings Accounts used to pay the Universal Allowance per Child for Social Protection purposes. In this regard, it indicated that closing of such accounts shall operate as indicated by the ANSES, as opposed to presently automatic closing when the account remains dormant for 180 running days. Communication "B" 10117. (June 23, 2011) The Regulatory Authority released Ruling UIF 62/11 to the financial system, whereby it extends the term for making the regulatory changes required to meet the provisions in section 37 of Ruling 37/11 of the Financial Information Unit (UIF) until August 15, 2011. Importantly, though the cited section, the UIF established that pursuant to the regulatory functions of the BCRA, Communication "A" 5162 is supplementary to Ruling 37/11 of the Financial Information Unit, and paragraphs 1.3.2.1 and 1.6.3 concerning KYC rules and control and preventive procedures, respectively, should be amended.

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Press release. (June 27, 2011) The Central Bank decided to consolidate and publicize through the Internet the financing offer for small and medium-sized companies available in the financial system. To this aim, it will publish both in its institutional website www.bcra.gov.ar and in the site targeted at financial consumer education (Bank Client Portal,www.clientebancario.gov.ar ) a list of links to the websites of each financial entity that holds active credit lines intended for small and medium-sized companies (SMEs). Communication "A" 5207. SINAP - 1 - 27, OPASI - 2 - 428. (June 27, 2011) Effective July 1, 2011, the entities having automatic teller machines and/or allowing their clients to operate through the home banking system should exhibit at all their branches and near their automatic tellers - as permitted by the physical space available - information posters on the basic characteristics of immediate fund transfers. Communication "C" 58880. (June 28, 2011) Within the framework of the Agreement on Reciprocal Payments and Credits of ALADI, the presidents of the Central Banks of Argentina and Brazil signed a bilateral agreement that allows execution under the Agreement of international trade service operations required to carry out civil engineering works intended for the construction of infrastructure and industrial facilities. Communication "B" 10120. (June 29, 2011) Effective July 1, 2011, the Central Bank of Brazil modified the methodology to calculate the real/dollar exchange rate (PTAX), which is to be published after 1:00 p.m. Consequently, the time for acceptance of payment records was established between 08:00 a.m. and 1:00 p.m. By around 05:00 p.m., the BCRA will announce the amount in pesos that the entity should pay through the electronic payment system (MEP) on the following business day. Communication "A" 5208. CAMEX - 1 - 670. (July 1, 2011) A series of provisions were issued regarding payments made abroad for the importation of goods. Communication "A" 5210. RUNOR - 1 - 966. (July 12, 2011) It modified the procedure for the transfer of funds seized by the Ministry of Labor, Employment and Social Security ordered through the Judicial Service of Notice System.

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Communication "C" 59003. (July 14, 2011) The Regulatory Authority extended the term for termination of the operational procedure DK6 - Judicial Payments until September 30, 2011. Further, the rule requested that entities should provide any means necessary to finalize adaptation of procedures to applicable regulations with the established term. Communication "B" 10137. (July 22, 2011) The Central Bank called entities to participate in the sixth auction of funds under the BCRA Advance Scheme which provides resources to financial entities to be used for financing the productive sector, which auction would be held on July 29, 2011, for a total disbursable amount of ARS 300 million. Press release 49901. (July 29, 2011) The BCRA released the results of the sixth auction of funds under BCRA Advance Scheme which provides resources to financial entities to be used for financing the productive sector. A total of ARS 292 million was awarded. The amounts were awarded to six (6) entities. The six auctions conducted awarded a total of ARS 1,828.7 million among 12 financial entities. Communication "A" 5212. OPASI - 2 - 429. (August 1, 2011) It established that funds credited in accounts for judicial use shall be at no cost to the originator and/or depositor, irrespective of the means employed and the credit amount involved. Furthermore, the transfer of funds intended for judicial use accounts shall be at no cost or commissions to the originator. The receiving entity shall verify that the account receiving the funds is classified as an account for judicial use. It further provided that as from September 1, 2011, the transfers made from sight accounts for judicial use shall be treated as immediate fund transfers. In addition, the Communication stated that financial entities should adjust their transfer commission collection scheme to the regulation in force, notwithstanding any additional services offered to facilitate mass charging of such transactions in the systems offered to clients (and providing no charge is made to amounts related to the transferred amounts) and any charges passed on to clients for applicable taxes, withholdings, etc. Communication "B" 10154. (August 10, 2011) Financial entities were informed on Ruling No.3,552 of the Supreme Court of Justice of Buenos Aires province, which modified the procedure to handle judicial accounts, deposits and orders of payment so that the relevant communications should include the CBU number and the consolidated text of the cited Court’s Ruling on the matter.

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Communication "B" 10157. (August 12, 2011) The seventh auction of funds for general purpose loans was held under the BCRA Advance Scheme which provides resources to financial entities to be used for financing the productive sector. Press release 49911. (August 19, 2011) The Seventh Auction of funds for general purpose loans was held on August 19, 2011. A total of ARS 834.80 million was awarded out of a total bid of ARS 850 million. The amounts were awarded to four (4) entities. The seven auctions conducted awarded a total of ARS 2,663.50 million among 12 financial entities. Communication "A" 5218. RUNOR - 1 - 971. (August 19, 2011) It provided that financial and currency exchange entities, as well as exchange brokers and representatives of foreign financial entities not authorized to operate in the country should abide by the provisions of Act 25,246, as amended, on the Prevention of Money Laundering, the supplementary rules issued by the UIF and the provisions on this matter issued by the BCRA. In this regard, from the time of this Communication, the consolidated BCRA’s text on the matter only establishes: a) the obligation to forward to the BCRA a certified copy of the compliance officer appointment at the UIF; b) maintenance of the database: "Information system for the prevention of money laundering and other illegal activities (LAVDIN)", increasing the amount of individual transactions to be included therein from ARS 30,000 to ARS 40,000 and those accumulated daily from ARS 1,000 to ARS 5,000; and c) limitations to the payment of checks over the counter in excess of ARS 50,000 and disbursements of cash financing in excess of ARS 50,000. Elsewhere in the rules on Corporate Governance, a "Committee on Control and Prevention of Asset Laundering and Terrorism Financing" is included in the list of recommended specialized committees. Importantly, the rules on the matter provide that in order to maximize the impartiality of the Specialized Committees, it is recommended that most of its members be independent. Communication "A" 5219. RUNOR - 1 - 972. (August 30, 2011) The entities offering credit to SMEs and having a website should post information on this type of financing. This requirement has to be complied with within 10 business days from the issue date of this Communication.

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The entities without a webpage or which do not offer credit to SMEs had to send an e-mail to the BCRA within the term indicated above informing the inapplicability of this Communication. Communication "A" 5220. CAMEX - 1 - 671. (August 30, 2011) The BCRA extended for 180 successive days as from September 1, 2011 (formerly effective until August 31, 2011) the provision allowing access to the local exchange market to make deposits abroad, where foreign currency is purchased by legal persons residing in the country other than entities authorized to operate in the exchange market, for the subsequent application to a specific purpose, provided certain conditions are met. Furthermore, it extended for 180 successive days effective September 1, 2011 (formerly effective until August 31, 2011) the provision allowing access to the local exchange market where foreign currency is purchased by companies residing in the country, subject to no amount limitation, in order to perform direct investments abroad in the production of goods and provision of non-financial services, without any requirement of further specific application, provided certain conditions established in this Circular are met. Communication "A" 5222. CONAU - 1 - 954. (September 6, 2011) The BCRA published the External Auditor Special Report form to be submitted quarterly to the ANSES by entities that hold assets of the Guarantee Fund for the Sustainability of the Argentine Integrated Retirement System (FGS) under custody, where such assets exceed five times the adjusted stockholders equity at the end of each reporting period. Filing of the cited report should take place within 45 days following each quarter end. Communication "A" 5224. SINAP - 1 - 28. (September 9, 2011) The amount of truncated checks without image available. As from September 30, 2011, check depositary entities have to retain documents and transfer the relevant electronic information to the Clearing House for amounts less than or equal to ARS 10,000 (ten thousand pesos). For checks in excess of that amount, depositary entities have to retain the documents and transfer, in addition to the electronic record, the front and back images of the check. Also, the depositary entities, regardless of the amount, have to send the front and back image of all the other documents subject to clearing. Communication "B" 10174. (September 9, 2011) The Central Bank held the eighth auction of funds for general purpose loans intended to finance the productive sector on September 6, 2011, for a total disbursable amount of ARS 300 million, under the Productive Financing Program.

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Press release 49925. (September 16, 2011) The result of the Eighth Auction of funds was released. A total amount of ARS 253 million was awarded to four financial entities. The 8 auctions conducted to that date awarded a total of ARS 2,916.50 million among 12 entities. Communication "A" 5225. CAMEX - 1 - 672. (September 12, 2011) Effective September 13, 2011, the rules set forth by Communication "A" 4443 and supplementary rules were modified in respect of advance revenues and export pre-financing. In this regard, it clarified that as of the settlement date of pre-financing proceeds, the exporter should not delay in relevant shipments within the established terms (there was no indication as to the specific items this requirement applied to, so it would also apply to export advance payments). Communication "A" 5226. OPRAC - 1 - 658. (September 16, 2011) The Central Bank restated the individual loan limit for micro-entrepreneurs. The principal owed by any client at any time should not exceed ARS 30,000 (formerly ARS 15,000). Communication "A" 5227. CONAU - 1 - 955. (September 23, 2011) An item was added into Section B "General Exchange Position" of the "Exchange Transaction Reporting Regime", related to daily negotiations and expirations of foreign currency forward transactions, for USD equivalent, conducted and cash settled in the country in local currency. The incorporation of this information did not modify the definition, or the limits, or the manner to calculate the General Exchange Position. As for the "Forward Transactions" Reporting Regime, trades should be reported by aggregating the transactions conducted each day which share the requested attributes; tax identification and denomination of the counterparty to the transaction were added as attributes. The amendments to the Exchange Transaction Reporting Regime came into effect for information released as from October 11, 2011, and the Term Transaction Reporting Regime became effective for the information corresponding to the second statistical week of October.

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Communication "A" 5230. SINAP - 1 - 29. (September 26, 2011) In furtherance of the "Know your client" policy, the BCRA recommended that special precautions be adopted prior to conducting a transfer in order to continue to pursue the computer fraud mitigation risk policy. It also recommended that mechanisms be in place to strengthen the authentication of transferors and transferees and to follow up on transactions in order to detect identity alterations and unusual behavior, with even greater emphasis where an entity decides to increase the amounts for immediate transfers.

Additionally, it allowed entities to adopt, under its own responsibility, the following courses of action:

Deferral of the effective transfer (debits and/or credits) where the transaction is found to be inconsistent with the security parameters adopted by the entity: until 06:00 p.m., at the latest, of the same day, for transfers ordered before 01:00 p.m.; or until 01:00 p.m. of the following business day for transfers ordered after 01:00 p.m. Within the times specified above the entity shall proceed to conduct or reject the transfer, depending on the outcome of such evaluation.

The reversal of debits and/or credits where the inconsistency of the transaction with respect to the above cited parameters is detected after effecting the relevant debit and/or credit.

Communication "B" 10185. (September 26, 2011) Based on the information corresponding to January 1, 2012, the daily task SISCEN-0001 "Interbank interest rate" will be discontinued. As a consequence, the BAIBOR rate for all terms will no longer be published as from such date. Communication "B" 10189. (October 3, 2011) The Eighth Auction of Funds -this time with provincial resources- was held on October 12, 2011 under the Credit Program for Production and Employment Promotion in San Juan province. Communication "A" 5231. OPASI - 2 - 431. (October 18, 2011) Pursuant to Act 26,704, the BCRA modified the rules applicable to payroll accounts, effective October 20, 2011. The social security accounts were created with the same characteristics as the payroll accounts, which will be denominated in pesos and opened at the branch or office of the

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paying financial entity in which the beneficiary receives its pay. Should the beneficiary receive more than one benefit at the same paying entity, a single account must be opened. With relation to the withdrawals of funds from payroll and social security accounts, it was established that in order to allow full withdrawal of the account balance through the automatic tellers, the financial entities may contemplate, with no cost to the worker or beneficiary, rounding up of the payable amount, advancing funds for up to ARS 49.99 as per the money available at the automatic tellers, and discounting this amount from the following pay credited to the account. Furthermore, the obligation was established for financial entities to provide, as from January 2, 2012, free of charge, at the entity's automatic tellers, the certificates of liquidation of social security benefits credited in the last twelve months. Furthermore, the provisions on the special savings account created to pay the Universal Allowance per Child were modified in order that the same be used to pay any of the social aid plans or programs implemented by the National Government and the different provinces. Importantly, the rule increases the activity free of charge conducted in these accounts to all transactions performed through the automatic tellers of any entity in the country, and adds the possibility to withdraw cash over the counter at the depositary entity without any limits on the amount or the number of withdrawals when it is conducted at the account holding branch. Additionally, effective January 2, 2012, the obligation is established that each entity’s automatic tellers should inform the effective date of the following payment of the universal allowance per child as indicated by the ANSES. Communication "A" 5233. CAMEX - 1 - 673. (October 24, 2011) Some provisions were established relative to the follow up of the obligation to convert export proceeds into local currency as from October 25, 2011. Communication "B" 10209. (October 24, 2011) The Central Bank introduced a number of amendments to the regulations announced through Communication "B" 9911 regarding the BCRA Advance Scheme which provides resources to financial entities to be used for financing the productive sector. As for the crediting of funds, financial entities shall have an additional term of up to 360 successive days to make any relevant disbursements (the term was originally 180 days) whenever, given the particulars of a project, there remain any outstanding stages for the crediting of the relevant funds. The paragraph on Global Amortization Schedules was modified. In the case of loans with successive disbursements requested within the term of 180 running days calculated from the

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business day following notice of the results of each auction and/or the additional term of 360 successive days (previously 180 days), the different payment schedules of each stage shall maintain the expiration dates reported -in the relevant part- in the first global schedule. Lastly, it established that in the case of a shared loan, the first request for funds made by any one of the participating financial entities shall proceed upon submission by all of them of the Affidavit provided for in Exhibit IX of Communication "B" 9911. Communication "A" 5235. CAMEX - 1 - 674. (October 28, 2011) It issued the measures related to the follow-up mechanism of the obligation to trade foreign currency export proceeds as per the provisions in the Executive Order 1722/11. In this regard, Communications "A" 3971, "A" 3978, as supplemented, were repealed - for exports of goods related to mining and hydrocarbon undertakings formalized as from October 26, 2011. For transactions formalized on or before October 25, 2011, the entities in charge of following them up may consider the obligation to convert foreign currency proceeds into local currency duly met under the terms of Communications "A" 3971, "A" 3978 as supplemented, only on condition that reliable evidence is provided to support actual collection of the relevant shipment on or before October 25, 2011. Communication "A" 5236. CAMEX - 1 - 675. (October 28, 2011) It issued a series of provisions effective October 28, 2011 relative to external asset accumulation by residents. Among the measures adopted, the BCRA tightened the requirements already applicable to the buyers of external assets in excess of USD 250,000 over one calendar year; such requirements intend to demonstrate that the funds applied to the purchase are supported both from the tax and financial points of view. It further specified the requirements for non-business legal persons to have access to the local FX market, making it clear that civil code partnerships not filed with any mandatory non-tax public registry cannot access the local FX market without prior authorization of the BCRA. Communication "A" 5237. CAMEX - 1 - 676. (October 28, 2011) Effective October 28, 2011, it issued the provisions relative to access to the local exchange market for: repatriation of direct investments in the country under various types of arrangements; transfer of investment rights among residents abroad; direct investments in the country for acquisitions of local assets by nonresidents from foreign companies which are directly or indirectly owned by Argentine residents; and repatriation operations of direct

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investments which are subject to the established requirements and cannot demonstrate compliance as of the date of access to the local exchange market. Communication "A" 5238. CIRMO - 3 - 44. (October 28, 2011) It was established that, during November 2011, financial entities - upon prior authorization of the BCRA, may surrender damaged bills of ARS 2, ARS 5, ARS 10 and ARS 20 denominations and keep them under their custody in their respective vaults in the city of Buenos Aires on behalf and account of the BCRA until the monetary authority orders the transfer of such bills to the Central Treasury. The amount corresponding to the damaged bills surrendered by financial entities to the BCRA shall be credited to the financial entities’ corresponding current accounts. To such end, for purposes of identifying each set of bills under custody of financial entities, the latter shall follow a clear relation between the information on the bills surrendered, which are to be assigned a sequential order number, and the lots of bills included in such set, which should be kept under certain conditions established by the relevant regulation. Communication "A" 5239. CAMEX - 1 - 677. (October 28, 2011) A regulation was issued for the implementation of General Ruling 3210/11 by the AFIP, related to the FX Transactions Validation Scheme (known as COC in Spanish) effective October 31, 2011. It was established that, as from October 31, 2011, financial entities should consult and record all FX sale transactions made by their clients subject to the COC Scheme implemented by the Federal Revenue Administration (AFIP), whose system will indicate whether the transaction is "Validated" or "Inconsistent". International organizations, official export credit agencies, diplomatic and consular authorities registered in the country, or local governments shall not be subject to this Scheme. Sales of foreign currency for external asset formation by residents without obligation to apply them later for specific purposes should also be validated by the AFIP. Communication "A" 5240. CAMEX - 1 - 678. (October 31, 2011) Effective November 1, 2011, the validation requirement established by the FX Transaction Validation Scheme implemented by the AFIP through General Ruling 3210/11 was exempted for transactions carried out by individuals within 15 running days as from October 31, 2011 for purposes of applying the proceeds of mortgage loans in local currency granted by local financial entities for the purchase of a home, and insofar as the amount acquired is applied simultaneously to payment of home being financed with the loan.

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Communication "A" 5241. CAMEX - 1 - 679. (October 31, 2011) Effective November 1, 2011 a number of rules were put in place that govern FX transactions for tourism and trips by nonresidents. Communiqué "A" 5242. CAMEX - 1 - 680. (November 1, 2011) The regulatory entity provided a thirty (30) day exemption from FX transaction controls established by the AFIP applicable to the proceeds of pension entitlements collected abroad. Communiqué "C" 59839 (November 4, 2011) In view of the inconveniences that still remained for payment of certain benefits/entitlements being disputed in court-mainly benefits payable by the National Social Security Administration and the Ministry of Social Development- via direct crediting to bank accounts, the Central Bank reestablished the "Operations DK6 - Judicial Payments" for a term of 90 days as from November 7, 2011, in order to make the corresponding transfers. Furthermore, the rule established that financial entities should put in place, as soon as possible, all necessary means to open accounts with the corresponding CBU so as to facilitate payment to beneficiaries via credit to their respective accounts. Communication "A" 5244. CAMEX - 1 - 681. (November 10, 2011) Effective November 11, 2011, new regulations superseded Communication A 4970 as regards application of FX proceeds of goods and service exports to the service of principal and interest of new financial debt. Communication "A" 5245. CAMEX - 1 - 682. (November 11, 2011) The Central Bank consolidated in one same text the various Communications issued in order to implement the FX Transaction Control Scheme established by AFIP under General Ruling 3210/11. This new consolidated text clarified that all FX transactions should be validated and recorded in the COC Scheme, with some exceptions listed in which the validation requirement shall not apply. Communication "A" 5246. REMON - 1 - 867. (November 11, 2011) Effective November 1, 2011, the daily minimum cash contribution in FX was modified.

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Communication "B" 10224 (November 11, 2011) and Press Release 49953. (November 21, 2011) The BCRA informed that the Ninth Auction of funds for general purpose loans was held on November 18, 2011 under the BCRA Advance Scheme which provides resources to financial entities to be used for financing the productive sector. A total amount of ARS 498.4 million was awarded to three financial entities out of a ARS 550 million total offer. The 9 auctions conducted during the year awarded a total sum of ARS 3,414.90 million among 13 financial entities. Communication "A" 5248. CREFI - 2 - 75 y RUNOR - 1 - 976. (November 14, 2011) Various regulations were consolidated in one text in order to include as part of track records to directors, managers and financial entities as well as representatives of foreign financial institutions the verification that they have not been convicted of money laundering and/or the financing of terrorism. It also includes the obligation to verify they are not included in lists of terrorists prepared by the UN Security Council. Communication "A" 5249. CAMEX - 1 - 683. (November 14, 2011) As part of the FX Transactions Validation Scheme (General Ruling AFIP 3210/11) the exemption established for local currency mortgage loans was extended as from November 15, 2011, until an information system is implemented for local financial entities to inform the AFIP of any extension of housing mortgage loans. Communication "A" 5254. CAMEX - 1 - 684. (November 17, 2011) Effective November 8,, 2011, the Central Bank established that conversion of FX proceeds through the Single Free Exchange Market made by insurance companies for purposes of complying with Ruling 36.162/11 of the Superintendencia de Seguro de la Nación (Argentine Insurance Commission) would not be taken into consideration in computing the 2,000,000 USD limitation per calendar month set forth under section 1.b. of Communication A 4377. Communication "A" 5256. CAMEX - 1 - 685. (November 29, 2011) The exemption of FX controls provided by the AFIP through General Ruling 3210/2011 applicable to FX proceeds of pension entitlements/benefits collected abroad was extended from November 30, 2011 through December 30, 2011.

EXHIBIT

ANNUAL REPORT, 2011

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Communication "B" 10226 (November 14, 2011) It set forth the operational rules to be complied with in surrendering and holding under custody damaged bills, pursuant to the provisions of Communication "A" 5238. Communication "B" 10231 (November 18, 2011) It informed the technical aspects applicable the Messaging Scheme for Reporting Excess Pesos and Surrendering Damaged Bills under Custody. It detailed effective dates, registry design, technical specifications and errors reported by the system and the template of documents of the new application. Amendments came into force effective November 18, 2011. Communication "A" 5258. CIRMO - 3 - 45. (December 7, 2011) The Central Bank announced that it would print the ARS 2 denominated coin in commemoration of the two-hundredth anniversary of the May Revolution. Communication "B" 10246 and Press Release 49967. (December 13, 2011) The BCRA called the Tenth Auction of funds for general purpose loans to be held on December 16, 2011, under the BCRA Advance Scheme which provides resources to financial entities to be used for financing the productive sector. The total of ARS 740 million was auctioned, and ARS 700 million (or 95%) were awarded only to one financial entity. The 10 auctions conducted during the year awarded a total sum of ARS 4,114.90 million among 13 financial entities. Communication "B" 10248. (December 15, 2011) Due to Christmas and New Year Eve, the Central Bank established that on December 23 and 30, 2011, banks will operate until 3 pm, and December 26 and January 2, 2012 would be bank holiday. Communication "B" 10255 (December 22, 2011) Financial entities were advised to post in the cash sector of all of their branches an information poster describing the characteristics of ARS 2, which shall be no less than 21 cm wide x 29.7 cm height.

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Communication "A" 5259. OPRAC - 1 - 662 and LISOL - 1 - 543. (December 27, 2011) Pursuant to the provisions on non-financial public sector financing, the BCRA decided not to impose limitations on financial entitites buying Municipal Treasury Bills to be issued by the Municipality of Río Cuarto, province of Córdoba, in the amount of USD 12,000,000, provided they do not exceed the maximum limits applicable to credit aids to the non-financial public sector. Communication "C" 60197 (December 27, 2011) The Central Bank announced bank holidays during 2012. Communication "A" 5260. CAMEX - 1 - 686. (December 28, 2011) The exemption of FX transaction controls established by the AFIP was extended as from January 3, 2012, until all specific arrangements are in place, as determined by the Federal Revenue Administration (AFIP), for the FX pensions collected abroad.

Communication "A" 5261. CAMEX - 1 - 687. (December 29, 2011) The BCRA established that as from January 1, 2012, the sale of foreign currency to clients for "tourism and recreational purposes" shall be subject to prior authorization pursuant to the FX Transaction Validation Scheme implemented by AFIP. Such validation shall not be required when the sale of foreign currency pertains to: Transfers abroad to pay for purchases made by credit card or funds withdrawn from ATMs abroad via debited to local accounts, sales to nonresidents contemplated in section I of Communication "A" 5241 as supplemented, and sales to tour operators registered as such with AFIP.

Documents

Memoria Anual ABA 2011 Ingles