memoria anual aba 2009 inglés

LISTS

ANNUAL REPORT 2009

ACTIVE MEMBERS Banco Bradesco Argentina S.A.

Banco de la República Oriental del Uruguay

Banco do Brasil S.A.

Banco Itaú Argentina S.A.

Banco Santander Río S.A.

BBVA Banco Francés S.A.

BNP Paribas

Citibank N.A.

Deutsche Bank S.A.

GE Compañía Financiera S.A.

HSBC Bank Argentina S.A.

JP Morgan Chase Bank, National Association (Buenos Aires Branch)

Standard Bank Argentina S.A.

The Bank of Tokyo-Mitsubishi Ufj, Ltd.

LISTS

ANNUAL REPORT 2009

ASSOCIATED MEMBERS ABN AMRO Bank N.V.

American Express Bank Ltd. S.A.

Banco Latinoamericano de Exportaciones

Banco Santander Central Hispano S.A.

Bank of America N.A.

Bayerische Hypo-Und Vereinsbank AG

BSI Banca Della Svizzera Italiana

Calyon Argentina S.A.

Commerzbank AG

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

Credit Suisse

ING Bank N.V.

Lloyds TSB Bank PLC

Sanpaolo IMI S.p.A.

Société Générale Société Anonyme

Standard Chartered Bank

The Bank of New York

Wachovia Bank, N.A.

LISTS

ANNUAL REPORT 2009

BOARD OF DIRECTORS President Mario Vicens 1st Vicepresident BANCO SANTANDER RÍO S.A. Enrique Cristofani 2nd Vicepresident CITIBANK N.A. Juan J. Bruchou 3rd Vicepresident BBVA BANCO FRANCÉS S.A.

Jorge Bledel 4th Vicepresident HSBC BANK ARGENTINA S.A. Antonio Losada Secretary DEUTSCHE BANK S.A. Marcelo Blanco Deputy Secretary JP MORGAN CHASE BANK, National Association

(Buenos Aires Branch) Facundo D. Gómez Minujín

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

Eduardo Spangenberg THE BANK OF TOKYO-MITSUBISHI UFJ, Ltd. Yoshikazu Takeuchi

Alternate Directors BANCO DO BRASIL S.A. Maelcio Mauricio Soares BANCO DE LA REPÚBLICA ORIENTAL DEL URUGUAY Alejandro Álvarez Izetta

Honorary President Julio J. Gómez

LISTS

ANNUAL REPORT 2009

ACCOUNTS AUDITORS Titular BANCO BRADESCO ARGENTINA S.A.

Arnaldo Silva Alternate GE COMPAÑÍA FINANCIERA S.A. Luís Fernández López

LISTS

ANNUAL REPORT 2009

SPECIAL COMMITTEES FINANCIAL AFFAIRS AND CAPITAL MARKETS Coordinating Secretary Gabriel Martino - HSBC Bank Argentina S.A. LEGAL AFFAIRS

Coordinating Secretary Analía Schnaidman - HSBC Bank Argentina S.A. Alternate Coordinating Secretaries Pablo Antao - Banco Itaú Argentina S.A. Fabián Montiel - BBVA Banco Francés S.A. BANK AUDITING Coordinating Secretaries José Luis Estella de Noriega - Banco Santander Río S.A. 1 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 Ltd. S.A. 2 Alternate Coordinating Secretaries Gastón Bunge - Standard Bank Argentina S.A. 3 Adrián Flint - Banco Itaú Argentina S.A. 4 1 Until October 2009 2 Since October 2009 3 Until June 2009 4 Since October 2009

LISTS

ANNUAL REPORT 2009

BASEL II

Coordinating Secretary Martín Svarzman - Banco Itaú Argentina S.A. 5 Alternate Coordinating Secretary Adrián Sciarreta - Standard Bank Argentina S.A. TRUSTS

Coordinating Secretary Atilio Serenelli - HSBC Bank Argentina S.A. Alternate Coordinating Secretaries Hernán Carassai - HSBC Bank Argentina S.A. Eduardo Rodríguez Sapey - Banco Santander Río S.A. 6 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.

5 Until December 2009 6 Until June 2009

LISTS

ANNUAL REPORT 2009

FOREIGN TRADE TRANSACTIONS

Coordinating Secretary Luis Martínez - HSBC Bank Argentina S.A. Alternate Coordinating Secretaries Hermine Espiñeira - Deutsche Bank S.A. Miguel Angel Zarlenga - ABN AMRO Bank N.V. 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. 7 Alternate Coordinating Secretary Roberto Fernández Latorre - Standard Bank Argentina S.A. 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 Secretary Sergio Scattolini - Standard Bank Argentina S.A.

7 Since March 2009

LISTS

ANNUAL REPORT 2009

RELATIONS AND COMMUNICATIONS

Coordinating Secretary Oscar Correa - Banco Santander Río S.A. Alternate Coordinating Secretary Alejandro Cerviño - Citibank N.A. CREDIT RISK

Alternate Coordinating Secretaries Darío Mangano - HSBC Bank Argentina S.A. Jorge Bertoni - BBVA Banco Francés S.A. 8 BANK SECURITY

Coordinating Secretary Daniel Alí - Banco Itaú Argentina S.A. Alternate Coordinating Secretary Jorge D. Sande - BBVA Banco Francés S.A. TECHNOLOGY, ORGANIZATION AND SYSTEMS

Alternate Coordinating Secretary Enrique Rubinstein - Standard Bank Argentina S.A. 9 SUBCOMMITTEE ON 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. TREASURERS’ SUBCOMMITTEE

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.

8 Until August 2009 9 Until February 2009

LISTS

ANNUAL REPORT 2009

IT SECURITY SUBCOMMITTEE

Coordinating Secretary Enrique Rubinstein - Standard Bank Argentina S.A. 10 Alternate Coordinating Secretary Héctor Ponce- Citibank N.A. 11

10 Since March 2009 11 Since March 2009

LISTS

ANNUAL REPORT 2009

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) Mario Vicens - ABA President (Member) CENTRAL BANK OF ARGENTINE Argentine Interbank Committee for Means of Payment Directors: Pedro Telwak - Banco Santander Río S.A. Javier Aníbal Michelesi - BBVA Banco Francés S.A. Technical Committee: Incumbent Members Pedro Telwak - Banco Santander Río S.A. Javier Aníbal Michelesi - BBVA Banco Francés S.A. Alternate Member Juan Carlos Aguilera - Standard Bank Argentina S.A. Commercial Committee: Incumbent Member: Julia Langwagen - Standard Bank Argentina S.A. Alternate Members Daniel Pokay and/or Pío Rueda - Banco Santander Río S.A. Legal Committee: Incumbent Members Analía Schnaidman - HSBC Bank Argentina S.A. Eduardo Ayerra - Standard Bank Argentina S.A. Fixed-Term Deposits Subcommittee: Incumbent Member Ricardo Leggieri - Standard Bank Argentina S.A. Alternate Member Daniel Víctor Martínez - Banco Santander Río S.A. Electronic Means of Payment Subcommittee: Incumbent Member Renato Otmarich - Banco Santander Río S.A. Alternate Member Carlos Daniel Bestilleiro - BBVA Banco Francés S.A.

LISTS

ANNUAL REPORT 2009

Direct Debit Subcommittee: Incumbent Member Julia Langwagen - Standard Bank Argentina S.A. Alternate Member Christian Ruiz - Banco Santander Río S.A. Transfers Subcommittee: Incumbent Member Flavio Jesús Boncore - Standard Bank Argentina S.A. Alternate Member Christian Ruiz - Banco Santander Río S.A. Treasurers Subcommittee: Incumbent Members Julián Bianchi - Banco Santander Río S.A. Rubén Osvaldo Pécora - Citibank N.A. Alternate Members Carlos D’Elío - BBVA Banco Francés S.A. Alejandro Casola - Banco Itaú Argentina S.A. BUENOS AIRES STOCK EXCHANGE Board: Mario Vicens - ABA President SELF-REGULATION BOARD - BANKING 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. ARGENTINE EPISCOPATE Justice and Peace Committee - "Turning Inhabitants into Citizens" Forum Mario Vicens - ABA President FELABAN Alternate Governor: Mario Vicens - ABA President AFIP TAX PARTICIPATION FORUM Luis Irigoyen - BBVA Banco Francés S.A. (Incumbent) Lisandro López - Tax Adviser (Alternate)

LISTS

ANNUAL REPORT 2009

EXPORT.AR FOUNDATION Mario Vicens - ABA President (Member) 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 Mario Vicens - ABA President (Member) MERCOSUR Group of Mercosur Bank Associations María Elena Deligiannis - ABA Technical Manager Mercosur No. 4 "Financial Affairs" Working Subgroup Financial System Commission María Elena Deligiannis - ABA Technical Manager Andrea Rupp - ABA Committees Coordinator Money Laundering and Terrorist Financing Prevention Commission Natalia Miranda - ABA Committees Coordinator MINISTRY OF LABOR, EMPLOYMENT AND SOCIAL SECURITY Negotiating Commission for the Collective Bargaining Agreement on Banking Incumbent Members Daniel Agudo - BBVA Banco Francés S.A. Sergio Scattolini - Standard Bank Argentina S.A. María Elena Deligiannis - ABA Technical Manager Julián Arturo de Diego - Labor Adviser Alternate Member Alejandro Ortiz Quintero - HSBC Bank Argentina S.A. Follow-Up Committee on the Solidary Contribution and Union Dues Auditing Agreement María Elena Deligiannis - ABA Technical Manager Sergio Scattolini - Standard Bank Argentina S.A. Diego Sanz - Banco Santander Río S.A. MINISTRY OF THE INTERIOR - PERMANENT COMMISSION ON BANK SAFETY Daniel Alí - Banco Itaú Argentina S.A. (Incumbent) Roberto Veltri - Citibank N.A. (Alternate)

LISTS

ANNUAL REPORT 2009

MUNICIPALITY OF GENERAL PUEYRREDÓN - BANK SAFETY COMMISSION Martín Zaballa - Banco Itaú Argentina S.A. NETWORK OF COMPANIES - YOUNG PEOPLE WITH PROMISING FUTURE Mario Vicens - ABA President (Incumbent) Rubén Mattone - ABA Communications and Institutional Relations Manager (Alternate) ARGENTINE UNION OF SERVICE ENTITIES (UDES) Mario Vicens - ABA President (1st Vice-president) Rubén Mattone - ABA Communications and Institutional Relations Manager (Alternate) UNITED NATIONS GLOBAL COMPACT - BOARD OF DIRECTORS OF THE LOCAL NETWORK Mario Vicens - ABA President (Incumbent) Rubén Mattone - ABA Communications and Institutional Relations Manager (Alternate)

LISTS

ANNUAL REPORT 2009

AREAS AND PERSONS IN CHARGE BOARD President Mario Vicens 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 2009

LETTER FROM THE PRESIDENT During 2009 the Argentine banking system confirmed that it capable of withstanding, with reasonable success, the toughest tests to which its stability can be subjected – the combination of a crisis situation on international financial markets and uncertainty in the local scene. Indeed, it was only towards the middle of the first part of the year that international financial markets began to recover from the problems generated by the collapse of mortgage debt markets in 2007 and by Lehman’s fall with 2008 already well underway. On the local level, the conflict between the Government and the farming sector was followed by the nationalization of pension funds in 2008 and by the election process in the first part of 2009, situations which, to a greater or lesser degree, injected great volatility in the banking deposits market and which, in the end, effectively arrested its growth during the first part of the year. Once the election process was over and the doubts, which had set in regarding exchange policy and the payment of the public debt, had been dispelled, deposits returned to sustained growth, thus creating the conditions for a normalization of the credit market and a reduction in interest rates. Although two full years of unease have elapsed since the irruption of the crisis in subprime mortgages, the system continues to exhibit very good indicators in all dimensions of its economic and financial activity. It offers adequate levels of liquidity, a low level of arrears in its credit portfolios, generous provisions made, very limited disjunctions and, especially among private banks, a clear and drastic reduction in the exposure to the public sector, making it possible, over the last few years, to steadily increase credit support for the private sector. The fact of having traversed this stage of negative events without a significant deterioration in liquidity and solvency is a very clear proof of the solidity it enjoys and, at the same time, of the prudence and responsibility with which all actors in this market have handled themselves, be they bankers, debt takers or regulators. In the case of the bankers, it stands out clearly that they have handled depositors’ funds with efficiency and prudence, carefully choosing which projects and whom to give financing to, in a framework of limited and diversified credit risk. At the same time, bank shareholders have proceeded to capitalize virtually all the profits obtained in recent years, so as to strengthen the entities’ assets and thus be in a better condition in which to face unexpected situations. Moreover, the idea that banks have proceeded cautiously, taking care at all times over the liquidity of their investments and the quality of their credits, giving preference to credit to the private sector above financing for the government, is sure to have likewise contributed to depositors reacting with restraint in the face of each event. The situation would certainly have been a different one if the idea had been prevalent among them that the handling of their savings hadn’t been carried out as counseled by good banking practice.

ANNUAL REPORT 2009

It may be pointed out, at the same time, that both corporations and consumers have handled themselves with great caution in these circumstances. This is demonstrated by the levels of arrears, which remain at historical minimums despite the drop in income and in sales, and by the evolution of the demand for financing, in line with the fall in the level of activity and the reduction in investment. In the SME market in particular, the "SME Bank Financing and Corporate Dynamics" 1 survey corresponding to the year 2009 shows that the share of surveyed companies that requested credit fell abruptly from 34.5% at the beginning of 2008 to 19.5% in mid-2009, after having risen steadily over a greater part of the previous period. In counterpart to this, the share of companies consulted in the survey that received credit assistance has returned to levels of close to 90%. In turn, when they were asked regarding the reasons for not applying for banking credit, the answers referring to demand -the need for financing and availability of other sources- are increasing in a distinct and sustained manner, while those that represent supply factors are diminishing. In fact, these latter -interest rate levels, information requirements, mistrust of banks, deadlines and guarantors- represented, in the last survey corresponding to the second quarter of 2009, 15.4% against a historical average that tops 26% both for the second annual wave and for the total of surveys carried out between 2006 and now. Additionally, 80% of the companies that declared having received bank financing allocated it to financing current expenditure or working capital, which represents a significant change with regard to the 55% that corresponded to the period prior to the onset of the financial turbulence. This indicates that in the latest period of economic difficulties, banking credit is acting counter-cyclically as a dampener of the impact caused by the drop or deceleration in sales, in a framework in which employment practically hasn’t dropped and costs have risen. Any attempt at a balance would be incomplete without a mention of the role of the regulator in this performance. Independently of the appropriateness of the regulatory framework and of the efficacy of the supervision over financial entities, it is important to stress the significance acquired on this occasion by the exchange policy and by the Central Bank’s international reserves. Indeed, recent and not so recent history shows that demand for money and, particularly, the behavior of depositors are intimately connected to the behavior of the foreign currency market. In fact, there is an almost perfect correlation between the demand for foreign currencies and a loss of deposits by the banking system. Thus, an erratic evolution in the value of the peso in the market, without the limitations imposed by the interventions to moderate fluctuations that may be exercised by the monetary authority, may end up leading to a generalized contraction in credit and in economic activity should banks lack the appropriate liquidity. 1 Capital Foundation.

ANNUAL REPORT 2009

The managed float of the peso at this stage of the Argentine economy and the very timely implementation of mechanisms of financial assistance of last resort for banks -even though they remained unused- represented two key components of a policy of preservation of banking stability, the latter being an indispensable condition for mitigating the impact of the crisis on production and on employment. The recovery in the world and regional economies, plus the good outlook enjoyed by the 2009-2010 harvest season along with the expectations of a total normalization of government debt and the low levels of indebtedness exhibited by both the private and the public sectors, constitute a very positive framework for renewed growth by the Argentine economy. Naturally, causing this to happen and getting it to last over time depends, to a great extent, on a reduction in uncertainty and a strengthening of the institutional framework. In the banking sphere, having successfully weathered this crisis does not mean that pending matters have been solved. There is still much to be done especially as regards inducing Argentines’ savings to be channeled though local institutionalized financial markets. With deposits growing steadily and with low volatility, banking credit will be abundant and cheaper. In this regard, having maintained the stability of the banking system over the last two years, within a setting of many difficulties, is undoubtedly a very valuable step in favor of achieving the country’s sustained economic growth.

Mario Vicens

President

ANNUAL REPORT 2009

Index

Page

Chapter 1: Evolution of Argentine Economy.............................................................. 1

Introduction..............................................................................................................................................1

The Macroeconomic Context ...............................................................................................................2

Balance of Payments ...............................................................................................................................2

Foreign Trade ...........................................................................................................................................3

Employment .............................................................................................................................................3

Public Sector Accounts...........................................................................................................................4

Public Debt ...............................................................................................................................................4

Chapter 2: Monetary Evolution and Changes in Central Bank Rules ........................ 5

Monetary Evolution ................................................................................................................................5

The 2010 Monetary Program ................................................................................................................6

Central Bank Reserves ............................................................................................................................7

Evolution of the Monetary Base...........................................................................................................7

Deposits and Loans.................................................................................................................................8

Interest Rates ............................................................................................................................................8

Chapter 3: Financial System.......................................................................................11

Introduction........................................................................................................................................... 11

Profitability, Efficiency and Intermediation Margins..................................................................... 12

Portfolio Quality ................................................................................................................................... 13

Exposure to the Public Sector............................................................................................................ 14

Capitalization ......................................................................................................................................... 15

The Financial System´s Tax Load ..................................................................................................... 17

Participation in Loans and Deposits by Groups of Banks........................................................... 18

Financing for SMEs ............................................................................................................................. 20

Statistical Appendix: Tables 1 to 49 .......................................................................... 23

Appendix ................................................................................................................... 73

Principal Banking, Exchange and Financial Measures .................................................................. 73

Chapter I: Evolution of Argentine Economy

ANNUAL REPORT 2009

Chapter 1: Evolution of Argentine Economy Introduction In the first half of the year 2009 the Argentine economy continued to evince the impact of the worsening of the international financial crisis and of the nationalization of the pension funds, situations which, albeit having taken place during the second part of the year 2008, continued to affect the behavior of the markets over the course of several months. Also, the election process that led up to the legislative polls at the end of June added a certain dose of uncertainty that caused volatility in financial markets, capital outflows, and stagnation in banking deposits and loans. As of the second half of the year, markets stabilized, deposits took up their upward path again in a context of interest rates exhibiting sustained drops, and credit gradually accelerated its growth within a context of weakness in demand that did not allow it to repeat the levels of increase it had recorded until the middle of the second part of 2008. Unlike the case in previous crises, the combination of the high liquidity enjoyed by banks, a prudent handling by the authorities of the main monetary and exchange variables during the period, and an efficient administration of credit risk, have made it possible, on this occasion, for the financial system to emerge as a dampener of the crisis rather than as a factor in the spread of the latter, expanding its negative consequences to the rest of the economy and, in particular, to production and employment. The second half of the year began with the replacement of several Ministers, including the Cabinet Chief and the head of Economy, and with the government announcement that it would issue an offer to swap the sovereign debt still in default, as part of an initiative the final aim of which was the placement of new debt in financial markets under more favorable conditions than those applicable until then. At the same time, the economy began to recover, to a large extent as a result of an international economic context that continues to favor the Argentine economy as refers both to the terms of exchange and to demand from neighboring countries, the outlook of a record harvest, and the absence in the country of the indebtedness problems that in other countries have conditioned the recovery of their economies after the financial crisis that affected the world over the last two years. Within this framework, aggregate demand began to recover in a sustained manner, boosted by the improvement in consumer expectations -the reflection of which was the sudden drop in capital outflow- and other factors which, as in the case of the deterioration in public accounts derived from the rapid increase in public expenditure and of wage improvements higher than the increase in productivity, led to the reappearance of stronger and more generalized inflationary pressures. Toward year’s end, the Presidency launched a new subsidy, of a generalized nature, for the children under 18 years of age of the family groups that are unemployed or work in the

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ANNUAL REPORT 2009

informal economy, an outlay that was not explicit in the budged submitted for the year 2010, and, after the conclusion of the ordinary sessions of the National Congress, created, through a need-and-urgency decree, a fund to guarantee the payment of the public debt with part of the Central Bank of Argentina’s reserves. The institutional and political conflict unleashed by the second of these initiatives led to the departure of the president of the Central Bank, interrupting, in turn, the clearly positive trend that had set in in financial markets after the legislative elections of June 2009. The Macroeconomic Context According to the latest preliminary data, the GDP corresponding to the year 2009 increased 0.8%, a figure that was much lower than the 6.8% of the previous year but, at the same time, a change in trend with regard to the drop seen in the last quarter of 2008. Consumption, for its part, fell during the first half of the year with regard to the same period of the previous year but recovered as of the third quarter, while investment exhibited a strong volatility in the framework of a certain reversal in the deep fall it experienced in the three last quarters of 2008. In fact, during the first nine months of the year it reached 20.3% of the GDP, a level that is twice the minimum observed in the year 2002 but is much below the 23.1% recorded during 2008. Industrial production, measured by means of INDEC’s Monthly Industrial Estimator (MIE), saw an increase of 0.4% during the year 2009, markedly lower than that which was attained in the year 2008 when it rose 4.9%. The utilization of installed capacity (UIC) stood at an average of 74.0% during the year 2009, lower than the 74.8% recorded the year before, with a great dispersion among the different sectors. The situation of the car sector should, however, be pointed out -having been one of the sectors hardest hit by the crisis during 2008, in 2009 it led the increase in production as a result of the recovery in exports to neighboring markets. Balance of Payments The current account surplus in the first nine months of the year rose to u$s 7,260 million, which implies a 24% variation with regard to the same period of the previous year. The growth in the result for trade in merchandise up to the third quarter is the factor explaining the bigger balance in the current account. At the same time, the capital and financial account of the balance of payments exhibited a negative result of u$s 3,800 million, owing mainly to the capital outflows of the private sector for approximately u$s 9,200 million. The Central Bank’s international reserves, for their part, rose u$s 1,400 million in this period (including exchange rate adjustments).

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ANNUAL REPORT 2009

Foreign Trade Argentine exports shrank 20.4% in the year 2009 in relation to 2008 and reached an amount of u$s 55,750 million. Most of this reduction was explained by the drop in prices (-14%) while the rest was due to the smaller amounts exported in the period (-7%). Imports were reduced by 32.5%, reaching a level of u$s 38,771 million. In this case, the reduction is to a greater extent explained by the reduction in amounts exported (-23%), while the decrease in prices was of 12%. Changes in export and import prices caused a deterioration in the terms of exchange (relationship between the two prices) of 4.6%, on average, during the year 2009 in comparison with the average for the year before. As a result, the balance of foreign trade for the year as a whole reached the sum of u$s 16,980 million, 35% higher than that which was recorded the previous year. With regard to trade with the diverse economic areas, it may be pointed out that the region that recorded the highest volume of transactions is composed of MERCOSUR member countries, trade with which reached a surplus of u$s 700 million. It was followed in importance by the European Union, the main Asian countries and NAFTA. Another standout was trade carried out with Chile, which exhibited the largest trade surplus with any country or region, representing 22% of the balance for the year 2009. Employment The sustained growth in economic activity turned out to be decisive in keeping the level of employment high. In the fourth quarter of the year, the rate of employment (employed population with regard to total population) diminished to 42.4%, slightly below the level of 42.6% seen at the end of the previous year. Unemployment, for its part, increased to 8.4% when a year earlier it had been of 7.3%. Underemployment remained at 9.1%, the same level recorded at the end of the year before. According to the index prepared by INDEC, wages also improved. The overall level recorded an increase of 16.7% between December 2009 and the same month a year later. As happened in previous years, wages in the unregistered private sector were those which rose the most, with an increase of 21.5%, followed by those in the registered private sector with 17.3%, while those in the public sector increased 11.4%. At the same time, considering the data derived from the Retirement and Pension Payments through the third quarter of the year, there was a 19.0% increase in the total remuneration of the employees paying into the system, with which the average wage to rise to 3,231 pesos in that period.

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ANNUAL REPORT 2009

4

Public Sector Accounts In the year 2009, national tax revenue (excluding non-tax income) reached 25.9% of the GDP while the year before it had been of 24.6%. In nominal terms, total tributary revenues rose 52.6% during the year, higher than the 79.6% recorded the year before with the contribution of the dues paid into the pension funds nationalized during the period. The standouts were the increases in the collection of VAT (39.4%) and income tax (29.6%). The two levies represent 75.5% of the IRS’s income excluding the social security system. Collection of the tax on banking account debits and credits rose 36.5% and represents 6.7% of the total collected. Public Debt During the year 2009, swap operations were carried out with the aim of extending payment deadlines, exchanging debt subjected to adjustment according to the CER for other securities with a variable rate according to the evolution of the BADLAR. After these operations, the national government’s public debt amounted to almost u$s 172 billion at the end of the third quarter of 2009, u$s 135 billion of which corresponded to debt with regular payments, u$s 6 billion to debt in arrears (mainly to the Paris Club) and around u$s 30 billion to the debt not submitted to the swap. Of the performing debt, 46% is denominated in pesos while 59% of this amount corresponds to debt adjustable by the CER, after the swap of guaranteed loans that was carried out in early 2009. This is followed by the debts denominated in U.S. dollars and in euros, which continue to represent 42% and 10%, respectively, while the rest is distributed among other currencies. The average life of the debt in a regular situation is of 11.7 years, which ensues from the combination of the average deadlines of 14.7% for government bonds and Treasury bills, and 5.6% for loans (including the guaranteed ones). In consequence, total public debt represented 59% of the GDP at the end of the third quarter of 2009.

Chapter II: Monetary Evolution and Changes in Central Bank Rules

ANNUAL REPORT 2009

Chapter 2: Monetary Evolution and Changes in Central Bank Rules Monetary Evolution After successfully withstanding the impact of the diverse events that affected the economy, such as the international financial crisis that began in the second half of 2007 with the collapse in the market for subprime mortgages, the change in expectations that took place due to the conflict with the farming sector, the worsening of the international crisis and the modification in the Argentine social security system during the year 2008, the local financial system began the year 2009 with a certain stagnation in deposits and, as was to be expected, in loans. Its sustained recovery in the post-elections period and the strong capital outflow recorded during the period lead to the idea that the main cause of the phenomenon was the uncertainty generated by the election process itself. The policy adopted by the Central Bank concentrated in forestalling and mitigating the impact of the instability and uncertainty that swept over local and international financial markets, employing the following to this end: (1) an exchange policy with a floating exchange rate, handled without surprises; (2) a system of prudent regulation and supervision oriented towards guaranteeing the solvency and liquidity of the financial system; (3) anti-cyclic measures aimed at dampening the effects of the volatility in capital flows, and (4) a policy of monetary emission designed on the basis of inflation being a phenomenon basically exogenous to the monetary market. During the year 2009, this strategy translated into the adaptation and expansion of the set of monetary and financial policy instruments by means of the following measures:

Liquidity in pesos

New lines of short-term market operations offered (at fixed and variable interest rates).

Advance buybacks of LEBAC and NOBAC: secondary market, automatic facility and put option.

Over-the-Counter Market operations (government bonds). Liquidity window employing non-traditional collaterals (Bogar and PG). Discount window: prior rating of guarantees, including all sources of funding

(not only deposits). Admission of the totality of cash in banks for the computation of the minimum

Two-monthly positions for minimum liquidity requirements. Tenders for options to access to short-term market operations offered (2009).

cash requirements.

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ANNUAL REPORT 2009

rs, along with a specific line of ks that provide export

Lower dollar minimum liquidity requirements. of China (2009).

Swap tenders with fixed interest rates per variable for the purpose of helping banks minimize mismatches between fixed and variable interest rates (2009).

interest rate futures market (2009).

ed. The global economic recovery along with the positive

he M2 between a maximum of

ns, the expansion in the lending capacity derived om the expected behavior of deposits, of the evolution of the loans to the public sector in anks’ portfolios and of the other sources of funding, should allow an increase in credit to e private sector of 24.7.% over the year.

Liquidity in dollars

Operations on the exchange market. Short-term market operations offered in dolla

short-term market operations offered in dollars for banfinancing (the latter in 2009).

Currency swaps with the Popular Bank

Other

Development of the

The 2010 Monetary Program In late 2009, the Central Bank presented the Monetary Program for the year 2010. To this end it employed the macroeconomic projections included in the 2010 National Budget, with the information that became known after that also being taken into account. A real GDP rowth rate of 2.5% was envisiong

outlook for the prices of raw materials should induce a rise in exports, while the expansion in domestic activity should also increase imports, leading to expectations of a trade balance surplus of around u$s 14 billion. For the year 2010, goals were established that imply an average growth of 14.3% and 14.0%, respectively, in the monetary aggregates M2 and M2 of the private sector, in both cases comparing the values for December of each year. These goals imply a recovery in monetization after the impact of the international crisis and of the successive shocks suffered by the economy over the last two years, subject always to the trajectory of inflation.

he monetary program contemplates a range of variation of tT18.9% and a minimum of 11.9% in the year 2010, with quarterly goals. In the case of the M2 of the private sector, the goals for this indicator contemplate a wide range, with a growth of between 12.1% and 19.1% but only for the annual guideline.

ccording to the Central Bank’s calculatioAfrbth

6


ANNUAL REPORT 2009

2010 Monetary Progra

ons of pesos and % variatim

on) (In milli

Year 2010 Go

March June als

Sept. Dec.

Upper range 202,918 21.2%

209,132 19.4%

214,409 20.0%

234,075 18.9%

Base 195,790 16.9%

201,269 14.9%

205,931 15.3%

225,010 14.3%

Total M2

Lower range 191,366 14.3%

196,871 12.4%

201,902 13.0%

220,295 11.9%

Upper range 171,951 22.6%

176,811 21.4%

181,696 22.1%

197,400 19.1%

Base 166,055 18.4%

170,244 16.6%

174,673 17.4%

188,971 14.0%

Private M2

15.8% 14.4% 15.1% 12.1% Lower range 162,414 166,616 171,280 185,798

Note: The shaded cells correspond to estimates. For the private M2, only annual goals were established.

her concepts were taken into account, including differences in

aluation due to variations in the exchange rate which contributed approximately an ditional u$s 1.8 billion.

rrencies that were carried out by the Central Bank, which became the main source of pansion. Unlike the previous year, in 2009 the Central Bank absorbed monetary base by

Central Bank Reserves The Central Bank reserves reached an amount of almost u$s 48 billion in late 2009, which represents an increase of 3.4% in the period. This growth is the result of the purchases of foreign currencies carried out by the Central Bank over the course of the year (approximately u$s 3.3 billion), the operations with international organizations that include the net flow of the national Government and Central Bank and the rotating funds (some u$s 3.4 billion in total), net of the operations of the public sector which reduced them by approximately u$s 6.9 billion. Lastly, otvad Evolution of the Monetary Base During the year 2009, the monetary base recorded in increase of 12.9 billion pesos, which represents a growth of 11.8%. This variation is mainly explained by the purchases of foreign cuex

7


ANNUAL REPORT 2009

issuing LEBAC and NOBAC for an amount of 7.4 billion pesos which were added to what had been previously issued, while short-term market operations with the financial system were reduced by 800 million pesos. It may be pointed out that December 2009 saw the ancellation of the debt of the last bank that still maintained rediscounts with the entral Bank under the system that was established during the 2001-02 crisis.

uch higher than the 7.7% recorded in 2008. The first art of the year was characterized by a dollarization of the deposits of the private sector and

ate sector’s foreign-currency deposits increased 7.7% in the year, which, converted into pesos, is transformed into an increase of 40.4%

the levels of indebtedness both of families and of orporations continue to be low in international terms and in relation to the levels

tly reduced in comparison with the year before, may be pointed out that several banks issued new financing lines for housing in pesos at a xed rate with maturities of up to 15 years.

anuary, shrinking rapidly to vels of between 12% and 12.5% between February and September. As of that moment, ey began to drop again, to stand at around 10% at year’s end.

cC Deposits and Loans Although the total deposits of the private sector increased 20.5% during the year, the trajectory in the first half of the year was markedly different from that of the second part of the year. The recovery exhibited in the second part of the year contributed to the growth in the private sector’s deposits being mpa clear stagnation in time deposits. Current account balances increased 16.1%, while deposits in peso-denominated savings accounts rose 25.7%. Time deposits in pesos were 20.7% higher than at the end of the year before. For its part, the total of the priv2through the effect of the rate of exchange. The higher volatility exhibited by the sources of funding, and the higher interest rates that were seen in the first part of the year, had an impact on the evolution of loans to the private sector. After growing at an annual pace of 40% in recent years, as of the year 2008 these rates began to stabilize at lower levels. In the year 2009, loans to the private sector rose 9.7%. It should be stressed that chistorically recorded in the country. Among the lines that grew the most during the years are document discounts (19.3%), credit card financing (21.6%), current account advances (9.8%) and personal loans (9.5%). Although mortgage loan balances were slighitfi Interest Rates Interest rates ended the year 2008 at the highest levels of recent years since the crisis of 2001-02 as a consequence of the episodes, international and local, that affected them. Nevertheless, as of early 2009 they began to settle down towards lower values. In this way, rates for the private sector’s time deposits stood at 14.9% in Jleth

8


ANNUAL REPORT 2009

Similarly, although the rates for new loans awarded to the non-financial private sector began the year at high levels, over the course of 2009 they gradually resettled and, in the majority of ases, recorded significant reductions.

at 31.6% (+1.4 points), in the only case in which increases ere recorded during the year.

t a fixed rate or a combination of fixed tes in the first years and variable ones afterwards.

Interest Rates on Loans in Pesos

In nomina nnual %

c The largest lowering was recorded in rates for discounts of promissory notes, a commercial line that is also much used by small and medium enterprises (SMEs), which in December 2009 stood at 16% while 12 months earlier it had been of 26% (financing for companies for less than 1 million pesos). In the same way, rates for current account advances diminished to 21.4% from the 27.9% recorded at the end of the year before. With regard to rates for credits for consumption, a more moderate reduction was seen than for commercial lines. While the rates for credit card financing were reduced to 32.3% (-3.1 points in the year), those for personal rates stood w For financing with real guarantees, rates for pledge loans reached 18.3% (-2.7 points with regard to 2008) while for mortgage loans the reduction was of 0.7 points in the year, standing at 15.5%. It should be underlined that, over the course of the year, several banks issued new mortgage lines with financing in pesos ara

l a

70

60

50

40

30

20

10

0

80

Credit Card Financ

ing Consumer Loans Promissor

Overdraftsy Notes

2003 2004 2005 2006 2007 2008 2009

9


ANNUAL REPORT 2009

Interest Rates on Loans in Pesos

In nominal annual %

32

30

28

26

24

22

20

18

16

14

12

Interest Rates for Loans in Pesos m n

Type of loan Dec. Dec. Dec. Dec.

Dec. 2009-Dec. 2008

In no inal an ual %

2003 2004 Dec. 2005 2006

Dec. 2007 2008

Dec. 2009

Difference

Overdrafts 23.5 14.3 18.0 16.8 19.0 27.9 21.4 -6.5

Other advances 15.9 9.4 10.4 13.4 18.2 26.4 21.3 -5.1

Promissory notes 10.9 10.7 11.5 12.9 17.0 26.0 16.0 -10.0

Mortgage loans 13.7 11.5 11.6 11.7 12.4 16.2 15.5 -0.7

Pledge loans 16.2 11.7 9.9 11.1 15.5 21.0 18.3 -2.7

Consumer loans 33.3 28.9 26.8 25.5 27.5 30.2 31.6 1.4

Credit card financing 36.5 26.7 24.6 27.7 35.4 -3.1 24.9 32.3

Source: ABA on the basis of Central Bank data.

1

8

2003 2004 2006 2008 2009

0

2005 2007

Pledge Loans Mortgage Loans

10

Chapter III: Financial System

ANNUAL REPORT 2009

Chapter 3: Financial System Introduction The local financial system is leaving behind a period of more than two years during which it was subjected to situations that put its stability to the test. After the crisis over subprime mortgages in mid-2007 and the fall of Lehman Brothers a year later, in the international sphere; and the conflict between the government and the farming sector and the nationalization of pension funds, in the local arena, 2009 saw the addition of the election process culminating at mid-year, which, as was to be expected, also generated a certain market unease.

On the strictly financial level, it must be recognized that the combination of appropriate monetary and financial policies and of prudent and responsible work by all financial market agents were key factors in making it possible for these situations to be traversed without suffering major consequences.

Unlike what happened on other occasions, the exchange policy and the amount of reserves accumulated by the Central Bank enabled the impact of the crisis to be dampened rather than expanded. The managed float of the exchange rate, the existence of an appropriate regulatory and bank supervision framework, and the timely implementation of financial assistance mechanisms of last resort, have been the principal components of a financial policy strategy that allowed financial stability to be successfully preserved.

At the same time, over the last years the banking system has exhibited a very solid position with regard to its economic and financial situation: liquidity and solvency far above international standards, low level of arrears in the credit portfolio, credit risk that is very diversified and with ample loan-loss provisions, limited mismatches, a drastic reduction in credit exposure to the public sector especially among private banks, etc. As a symbol of this healthy condition, it may be mentioned than in December the sole remaining bank with a debt for Central Bank rediscounts awarded in 2001-02 cancelled its entire obligations with the monetary entity.

Despite having successfully withstood these crisis episodes, a hurdle remains to be overcome which appears to be the most significant one on the path to having a broader, continuous and attainable supply of financing and financial services on offer. This is the restricted share of the savings of the population that are channeled through institutionalized financial markets, which causes the available financing and the supply to transactional services to still be scarce and relatively expensive in comparison with the historical values of the Argentina financial system itself and with the levels that might be attained according to international experience. The amount of savings deposited by the public in banks or channeled through capital markets, and the volatility of their behavior, in the ultimate instance determine the scale of the financial system and, therefore, the size of the credit supply. They are, in turn, one of the main determining factors of the cost of the financial and transactional services that banks provide.

11


ANNUAL REPORT 2009

12

Stages in the Recovery of the Financial System

Stage Characteristics

Year 2002 At year’s end, the recovery of deposits begins.

Year 2003 At mid-year, the recomposition of credit to the private sector begins, and the level of arrears drops.

Year 2004 The recomposition of credit to the private sector spreads to the corporate and housing segments.

Year 2005 First year with positive balance-sheet results. The repayment of the restructured deposits ends.

Year 2006 Medium-term credit grows than the capitalization of profits consolidates the improvement in assets.

Year 2007 Credit continues to grow despite the international financial crisis; the rise in deposits recovers and profitability is reduced.

Year 2008

The international crisis worsens and the conflict between the Government and the agricultural sector entangles the local situation. Toward year’s end the Government nationalizes individual social security savings accounts and eliminates the capitalization system. The volatility of deposits rises, interest rates increase and the economy begins to show signs of decelerating. The banking system maintains its levels of liquidity and solvency within a framework of fast deceleration of the growth in activity.

Year 2009

Banks’ liquidity, solvency and profitability are consolidated in a context of a slowdown in the growth of deposits during the first half of the year. In the second part, interest rates shrink in line with the recovery in deposits and the weakness in demand for credit.

Profitability, Efficiency and Intermediation Margins The annual result reached 2.4% of assets (ROA), higher than the 1.6% obtained the year before. In terms of equity (ROE), the result reached 19.6% in 2009, also above the 13.4% recorded in 2008.

Analyzing the structure of profitability, an increase can be noted in the financial margin, mainly fostered by net income from interest. A major part of this effect is due to the trajectory recorded by loans, which, as mentioned earlier, rose very slowly during the period. The financial margin rose in the year 2009 to 8.6% of net assets, from 6.7%, almost half of this corresponding to net income from interest.


ANNUAL REPORT 2009

Another factor that contributed to the positive result was the net income from non-financial services, which over the last year rose to 3.9% of net assets, from 3.6% of the latter.

The incidence of administrative expenditures also rose during the year 2009 to 6.7% of net assets, from 6.1% in 2008, mainly as an effect of the increase in the payment of wages and social security dues. Charges for uncollectability rose to 1.1% of assets, from 0.9%.

Lastly, the virtual disappearance may be pointed out of the effect of the losses caused by the 2001-02 crisis, and during the year 2009 the redemption of the exchange differences of the judicial injunctions paid out and the adjustments in the valuation of the public sector’s assets were reduced to 0.2% of net assets, below the 0.9% of the year before. Portfolio Quality The non-performing loans rose to 3.5% of the financing to the private sector at the end of 2009, above the 3.1% recorded at the end of the previous year. Although a slight increase in this indicator was perceived in the last year, the value reached in December still remains within minimum historical values.

Unlike what has happened historically, the level of arrears of the private banks’ portfolio is somewhat higher than that which was seen for Public banks. Nevertheless, in the second half of the year this indicator began to converge, considerably reducing the differences between the two groups of institutions. In actual fact this phenomenon that took place during the year 2009 is closely related to the growth in government banks’ financing for the private sector over the course of the year; these credits, being new, are not overdue nor reflect the impact of the crisis in their condition of compliance, which causes the indicator to descend at least until the maturity of both portfolios balances out.

Non-Performing Loans to Private Sector

%

40

35

30

25 38.6

20 33.5

15

19.1 10 18.6

16.05 7.64.5 3.5 3.2 3.1

0 Dec.

2000 Dec. 2001

Dec. 2002

Dec. 2003

Dec. 2004

Dec. 2005

Dec. 2006

Dec. 2007

Dec. 2008

Dec. 2009

13


ANNUAL REPORT 2009

Exposure to the Public Sector The financial system’s exposure to the public sector rose slightly during 2009, after having dropped in sustained fashion in recent years from the level of almost 40% of assets reached in the year 2002, to a great extent as a result of the compensatory securities, for the shortfalls caused by the asymmetrical pesification, received by the banks, and the contraction in the portfolios of credit to the private sector. The increase seen in 2009 was concentrated in the loans and securities in the portfolios of government banks.

Current Central Bank regulations establish that the maximum limit that this exposure may reach is of 35% of total assets, without including the holdings of the securities issued by the Central Bank (LEBAC and NOBAC) under the headings both of their own portfolios and as counterpart in short-term market operations.

For the financial system as a whole, this indicator increased slightly to 14.5% during 2009, from 12.8%, while remaining, for private banks, far below that level, at 6.3% -the same as the year before.

Exposure to Public Sector

As a % of Assets

50

45

40

35

30

25

20

15

10

5

0 Dec. 2000

Dec. 2001

Dec. 2002

Dec. 2003

Dec. 2004

Dec. 2005

Dec. 2006

Dec. 2007

Dec. 2008

Sep. 2009

Bonds + Loans CompensationLEBAC/NOBAC

14


ANNUAL REPORT 2009

Capitalization In the year 2009, the financial system’s net assets rose 17.1%, reaching a total of 48.5 billion pesos basically through the capitalization of the profits accrued.

Stockholders’ Equity

In billions of Pesos

50

45

40

35

30

25

20

15

10

5

0 Dec.

2009 Dec. 2000

Dec. 2001

Dec. 2002

Dec. 2003

Dec. 2004

Dec. 2005

Dec. 2006

Dec. 2007

Dec. 2008

Cumulative Capitalizations 2002 - 2009

In millions of Pesos

18,000

16,000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0 2002 2003 2004 2005 2006 2007 2008 2009

15


ANNUAL REPORT 2009

Since the 2001-02 crisis the capitalizations carried out by the financial entities have reached a total of around 18 billion pesos; 54% of this corresponded to international banks, which have capitalized debts and/or injected new funds amounting to approximately 9.7 billion pesos since the beginning of the crisis.

Financial Institution Capitalizations 2002 - 2009 By type of institution - In millions of Pesos

10,000

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0 Public

Banks Local Private

Banks International

Banks Non-Banking

Financial Institutions

The capitalized profits and the injection of new funds are allowing banks to comply with the increase in requirements implied by the elimination of the regulatory exceptions and the modifications established by the Central Bank after the crisis. In fact, during 2009 compliance under the heading of capital reached 18.7% and 22.5% of assets weighted by risk for the total system and for private banks, respectively, a level which, in both cases, comfortably fulfills the minimum requirements in force.

16


ANNUAL REPORT 2009

Financial Institution Capitalizations 2002 - 2009 Market Share

Local Private

Banks 21% International

Banks 54%

Public Banks 17%

Non-Banking Financial Institutions

8% .

The Financial System’s Tax Load The financial system is burdened by a vast variety of taxes -direct and indirect, of a general and of a specific character- which form part of the costs that it must absorb in order to offer banking services, both financial and transactional.

In the first nine months of 2009, the total amount of taxes paid by banks as a whole recorded an increase of 125% in comparison with the same period of the year before. This load represents 1.74% of total assets, higher than the 1.17% corresponding to all of the year 2008 and the 0.95% of 2007.

This total includes the taxes on gross income, income, the levies included within administrative expenses such as the real estate tax on branches and office buildings, and SEDESA dues.

Income tax was the largest in the first nine months of 2009, with a significant increase with regard to the same period of the previous year and a 57% share of the total tax load. The second position corresponded to the amount paid on account of the tax on gross income, which represented 27% of the total, followed by the taxes included in administrative expenses, which represented 11%. The remaining 5% corresponded to the dues paid to SEDESA for deposits guarantee insurance.

17


ANNUAL REPORT 2009

Tax Burden

As a % of Assets

1.8

1.6

1.4

1.2

1.0

0.8

0.6

0.4

0.2

0.0

2001 2002 2003 2004 2005 2006 2007 9 months 2009

2008

Administrative Taxes

SEDESA Contribution Income Tax

Gross Income Tax Participation in Loans and Deposits by Groups of Banks According to the information as of November 2009, international banks attract 33.4% of the private sector’s deposits in the financial system, a similar proportion to that which is recorded by private banks with national capital. They are followed by government banks with 32.7%, the remaining 0.5% corresponding to non-banking financial entities, such as financial companies and credit funds.

18


ANNUAL REPORT 2009

Deposits of Private Sector November 2009


0.5%

Local Private Banks 33.4%

International Banks 33.4%

Public

Banks 32.7%

Loans to Private Sector

November 2009


3,5%

Local Private Banks 34,9%

International Banks 31,2%

Public

Banks 30,4%

19


ANNUAL REPORT 2009

With regard to loans to the private sector, international banks participate with 31.2% of the total of the system, while local private banks and government banks have 34.9% and 30.4%, respectively. Non-banking financial entities, for their part, participate with 3.5%. Financing for SMEs New loans for less than a million pesos or dollars awarded to legal entities (bodies corporate) -the best available approximation for estimating loans to SMEs- have grown in a sustained manner between 2002 and 2009 at an average rate higher than 30% a year, and constitute a third of the total loans given to legal entities during that period. The increase has been a generalized one, encompassing all lines of commercial loans.

At the same time, the evolution in the number of debtors given credit service by banks has experienced a sustained recovery in recent years. At the present time the number of companies financed for amounts lower than a million pesos/dollars is higher than that which was serviced before the 2001-02 crisis and has not ceased to grow during the last six years, according to the information available through December 2009.

In the same way, interest rates in this segment of credit have recorded a significant reduction between the levels in force in the year 2002 and those seen in the year 2009, that is, 21.1% and 7.8% for loans in pesos and in a foreign currency, respectively, exhibiting a decreasing trend in the second part of the year.

More remarkable still, the gap between the average interest rates on the new loans surpassing a million pesos/dollars, and those that do not exceed that amount, has shrunk drastically, falling to levels of a nominal annual 1.2% in the year 2009.

The "SME Bank Financing and Corporate Dynamics" survey carried out by a specialized foundation with a respected marketplace trajectory (*) allows the available information to be complemented and contributes to clarifying the factors that have been instrumental in this last period in determining the behavior of credit for this segment of corporations.

According to the survey, during the second quarter of 2009, 33.5% of SMEs surveyed resorted to bank financing, a significantly improved share in relation both to the previous quarter (24.7%) and to the same period of the year before (22.3%). In this way, a return is being seen to the share of companies using banking credit in the year 2006, before the beginning of this last period of financial turbulence in the world and on the local market.

The use of credit is ultimately the result of the evolution in the demand for financing and in the share by which the latter is serviced by the banks. The survey reveals that the share of companies included in the sample which requested credit fell abruptly from 34.5% in early 2008 to 19.5% in mid-2009, after having grown in a sustained manner during a major part of the period covered by the study.

(*) Capital Foundation

20


ANNUAL REPORT 2009

This behavior reflects the fact that the economic situation in general and, more specifically, the uncertainty that settled in as of the second quarter of 2008, has had a direct impact on the demand for credit by the SME segment. In counterpart to this, the share of enterprises surveyed that obtained credit assistance has returned to levels of close to 90%. When the question of the reasons for not requesting a banking loan was posed, the replies referring to demand -the need for financing and availability of other sources- were on the upswing in a clear and sustained fashion, while those representing supply factors diminished. In fact, these latter -interest rate levels, information requirements, mistrust in banks, deadlines and guarantors- represented, in the last survey, corresponding to the second quarter of 2009, 15.4% against a historical average that exceeds 26% both for the second annual wave and for the total of surveys carried about from 2006 until now.

In particular, it should be pointed out that the importance that the companies surveyed attach to interest rate levels and to information requirements as dissuasive factors, when it comes to resorting to banks, exhibits a slight but sustained downward trend.

At the same time, 80% of the companies that stated they had received bank financing allocated it to financing current expenditure or working capital, which represents a significant change with respect to the 55% that corresponded to the period prior to the onset of the financial turbulence. This indicates that during the recent times of economic difficulties, banking credit is acting as a dampener of the impact caused by the fall or deceleration in sales within a framework in which employment practically hasn’t shrunk and costs have risen.

In sum, the information submitted indicates that banks’ financial assistance to SMEs has also suffered the impact of the economic and financial turbulence, of both international and local origin. Everything points to the demand for financing having weakened in line with the drop in the level of activity and the reduction in investment. This circumstance has interrupted -momentarily, it is assumed- a process of gradual increase in the utilization of banking credit by this segment of companies.

Acting in favor of the consolidation of this process in the future is the fact that the rate of rejection of credit requests is very low and continues to drop and that, at the current time, banks appear to be acting counter-cyclically in that they have not ceased to finance the working capital and other current expenditures of SMEs.

21


ANNUAL REPORT 2009

22

Loans to Companies for Less than a Million Pesos or Dollars

Millions of Pesos Number of debtors

140,000 12,000

120,000 10,000

100,000 8,000

80,000

6,000

60,000

4,000 40,000

2,000 20,000

0 0 Jul.

2001 Dec. 2001

Dec. 2002

Dec. 2003

Dec. 2004

Dec. 2005

Dec. 2006

Dec. 2007

Dec. 2008

Dec. 2009

Number of SME debtors Amount of SME debt

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

Millions of Pesos

% a.n. 60 12,000

50 10,000

40 8,000

30 6,000

4,000 20

2,000 10

0 0 Year 2002

Year 2003

Year 2004

Year 2005

Year 2006

Year 2007

Year 2008

Year 2009

Amount in Foreign Currency Amount in Pesos

Average interest rates in Pesos

Average interest rates in Foreign Currency

23

STATISTICAL APPENDIX

ANNUAL REPORT 2009

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 30,825 14,554 38,472 83,851 2004 December 38,630 21,616 42,179 102,4252005 December 47,386 25,965 49,253 122,604 2006 December 55,386 30,157 65,906 151,449 2007 December 61,611 37,849 80,809 180,268 2008 January 64,934 39,257 83,128 187,319 February 62,248 40,420 89,055 191,722 March 61,224 39,350 92,957 193,531 April 63,170 39,236 92,874 195,280 May 65,813 38,611 91,216 195,640 June 65,695 38,146 91,168 195,009 July 66,989 39,748 92,627 199,364 August 64,827 38,390 99,516 202,733 September 70,651 38,191 98,070 206,912 October 70,444 37,702 98,576 206,722 November 68,487 37,411 97,721 203,620 December 77,639 39,392 82,928 199,959 2009 January 79,539 40,111 82,650 202,300 February 74,446 39,435 87,752 201,634 March 72,987 38,527 88,790 200,304 April 72,945 39,025 87,068 199,038 May 75,044 39,202 88,146 202,392 June 77,770 40,737 85,320 203,827 July 73,750 42,305 84,772 200,827 August 74,823 40,639 88,656 204,118 September 77,559 40,924 90,694 209,177 October 77,118 41,156 93,031 211,304 November 77,601 41,735 95,152 214,488 December 84,361 45,386 90,100 219,847

(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.

24


ANNUAL REPORT 2009

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

Period Current Accounts

Demand Deposits

Savings Accounts

Time Deposits

Deposits on Behalf of Central

Bank

Total

1985 December … 40 … … 553 593 1986 December … 11 … … 820 831 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 52 349 457 1,041 … 1,899 2004 December 25 417 1,848 1,646 … 3,936 2005 December 10 455 1,455 2,236 … 4,157 2006 December 4 518 1,937 3,227 … 5,686 2007 December 4 690 2,400 4,870 … 7,964 2008 January 5 696 2,681 5,351 … 8,734 February 5 654 2,512 5,068 … 8,239 March 6 675 2,568 5,102 … 8,350 April 6 665 2,603 5,357 … 8,631 May 8 641 2,691 5,438 … 8,778 June 10 675 2,742 5,419 … 8,846 July 10 669 2,820 5,453 … 8,952 August 9 673 2,927 5,602 … 9,211 September 8 630 2,925 5,723 … 9,286 October 9 684 3,001 5,900 … 9,595 November 10 672 3,357 5,821 … 9,861 December 11 718 3,579 5,815 … 10,124 2009 January 12 715 3,648 6,019 … 10,394 February 11 754 3,723 6,195 … 10,683 March 15 714 4,188 6,386 … 11,303 April 17 732 4,477 6,695 … 11,921 May 17 743 4,723 6,884 … 12,367 June 13 778 4,785 6,840 … 12,416 July 14 805 4,846 6,939 … 12,604 August 12 765 4,928 7,101 … 12,807 September 4 742 5,161 7,078 … 12,985 October 6 734 4,838 6,974 … 12,551 November 7 756 4,753 6,871 … 12,387 December 8 766 5,034 6,779 … 12,587

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

25


ANNUAL REPORT 2009

TABLE 3: Monetary Aggregates (in millions of pesos of December 2009)

Period M1 M2 M1 + Foreign Currency Demand Deposits

M2 + Total Deposits in

Foreign Currency

1994 December 53,936 100,055 54,769 123,041 1995 December 51,419 87,218 52,353 109,917 1996 December 63,720 106,888 65,284 135,254 1997 December 74,112 132,116 76,286 169,286 1998 December 78,943 145,663 81,746 188,205 1999 December 77,693 142,406 80,217 189,551 2000 December 71,968 132,325 73,911 184,024 2001 December 52,511 85,154 57,338 132,870 2002 December 67,540 141,816 68,772 144,828 2003 December 95,467 185,464 96,655 191,087 2004 December 111,553 212,741 112,866 224,438 2005 December 126,144 233,186 127,545 245,713 2006 December 139,549 265,611 141,148 283,012 2007 December 147,424 286,987 149,605 312,001 2008 January 151,951 294,671 154,156 322,131 February 147,072 297,009 149,153 323,028 March 144,733 296,246 146,880 322,587 April 145,989 295,728 148,115 323,058 May 148,348 294,306 150,392 321,973 June 147,191 291,248 149,277 318,179 July 149,667 296,309 151,719 323,363 August 145,552 297,328 147,621 325,270 September 150,986 300,155 152,952 328,783 October 149,913 298,372 152,158 329,409 November 147,471 294,640 149,743 327,495 December 161,729 294,897 164,229 329,574 2009 January 164,954 298,308 167,472 334,304 February 157,461 295,233 160,148 332,743 March 152,478 289,165 155,141 330,457 April 150,463 285,292 153,229 329,303 May 153,020 288,643 155,851 334,730 June 157,199 290,408 160,180 337,200 July 154,654 287,697 157,773 335,706 August 153,662 287,772 156,645 336,938 September 155,215 290,542 158,082 340,440 October 154,037 290,824 156,868 338,855 November 154,167 292,406 157,073 339,615 December 166,048 301,534 168,993 349,442

Note: Monetary aggregates include public sector´s deposits. Source: ABA based on "Statistical Bulletin", "Daily Information on Deposits, Loans and Cash in Domestic and Foreign Currency" and "Main Financial System Liabilities", Central Bank and INDEC.

26


ANNUAL REPORT 2009

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

Period M1 M2 M1 + Foreign Currency Demand Deposits

M2 + Total Deposits in Foreign

Currency

1985 3.7 9.3 3.7 9.4 1986 5.0 13.8 5.0 13.8 1987 3.9 12.3 3.9 12.4 1988 2.6 10.8 2.6 10.8 1989 2.6 8.3 2.9 14.9 1990 2.2 4.2 2.4 5.2 1991 2.9 5.2 3.3 7.8 1992 4.3 7.5 4.7 11.4 1993 5.7 10.7 5.9 16.9 1994 6.4 12.0 6.6 20.2 1995 6.4 11.0 6.7 19.3 1996 7.3 12.5 7.8 22.3 1997 8.0 14.3 8.6 25.4 1998 8.5 15.7 9.2 29.1 1999 8.8 16.4 9.6 32.7 2000 8.3 15.8 8.9 33.2 2001 7.6 13.9 8.5 32.7 2002 10.2 22.6 12.0 27.1 2003 11.9 25.3 12.2 26.3 2004 14.1 27.3 14.4 29.4 2005 14.4 28.0 14.6 30.2 2006 14.4 27.7 14.6 30.1 2007 14.2 27.7 14.4 30.3 2008 12.9 25.7 13.1 28.4 2009 13.3 24.9 13.6 28.9

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.

27


ANNUAL REPORT 2009

TABLE 5: Monetary Aggregates in Real Terms (1) Monthly average of daily balances (in millions of pesos of December 2009)

Period Cash Held by Public

Current Accounts

M1 Savings Accounts

Time Deposits

M2

1985 December 15,071 19,420 34,491 11,699 36,574 82,765 1986 December 17,457 17,363 34,820 11,860 52,751 99,431 1987 December 14,518 11,322 25,840 10,248 46,488 82,576 1988 December 12,820 8,975 21,795 7,607 59,630 89,032 1989 December 12,194 12,503 24,697 3,684 28,889 57,270 1990 December 11,085 6,525 17,610 9,213 8,447 35,269 1991 December 17,124 11,351 28,474 7,183 10,721 46,379 1992 December 22,675 16,459 39,134 9,246 20,109 68,489 1993 December 29,690 20,262 49,952 15,172 29,027 94,151 1994 December 32,239 21,698 53,936 16,265 29,853 100,055 1995 December 30,560 20,860 51,419 13,950 21,849 87,218 1996 December 32,828 30,892 63,720 17,440 25,727 106,888 1997 December 38,177 35,935 74,112 22,429 35,576 132,116 1998 December 40,203 38,740 78,943 25,134 41,586 145,663 1999 December 39,182 38,512 77,693 25,554 39,159 142,406 2000 December 35,807 36,161 71,968 23,975 36,382 132,325 2001 December 26,357 26,154 52,511 14,161 18,483 85,154 2002 December 26,887 40,654 67,540 15,951 58,324 141,816 2003 December 43,150 52,317 95,467 24,701 65,296 185,464 2004 December 50,281 61,272 111,553 34,286 66,902 212,741 2005 December 58,709 67,435 126,144 36,951 70,092 233,186 2006 December 66,868 72,682 139,549 39,575 86,487 265,611 2007 December 74,959 72,465 147,424 44,517 95,046 286,987 2008 January 76,228 75,723 151,951 45,780 96,940 294,671 February 74,987 72,085 147,072 46,808 103,129 297,009 March 74,622 70,111 144,733 45,063 106,451 296,246 April 74,390 71,599 145,989 44,472 105,267 295,728 May 74,358 73,990 148,348 43,409 102,549 294,306 June 74,007 73,184 147,191 42,495 101,562 291,248 July 75,459 74,208 149,667 44,032 102,610 296,309 August 74,205 71,347 145,552 42,251 109,525 297,328 September 73,642 77,343 150,986 41,809 107,360 300,155 October 73,172 76,741 149,913 41,072 107,387 298,372 November 72,884 74,587 147,471 40,743 106,425 294,640 December 77,205 84,525 161,729 42,885 90,282 294,897 2009 January 78,551 86,403 164,954 43,573 89,782 298,308 February 76,820 80,641 157,461 42,717 95,055 295,233 March 74,119 78,359 152,478 41,362 95,325 289,165 April 72,464 77,999 150,463 41,729 93,100 285,292 May 73,101 79,920 153,020 41,749 93,874 288,643 June 75,017 82,182 157,199 43,048 90,160 290,408 July 77,441 77,213 154,654 44,291 88,752 287,697 August 76,052 77,610 153,662 42,152 91,958 287,772 September 75,471 79,744 155,215 42,077 93,250 290,542 October 75,424 78,613 154,037 41,953 94,834 290,824 November 75,800 78,368 154,167 42,147 96,092 292,406 December 81,687 84,361 166,048 45,386 90,100 301,534 (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.

28


ANNUAL REPORT 2009

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 ... ... ... 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 January 71,897 34,518 106,415 7,262 113,676 5,580 February 70,976 33,185 104,161 10,414 114,574 4,865 March 72,141 35,455 107,596 8,348 115,945 5,243 April 71,991 36,647 108,638 7,719 116,357 5,613 May 72,711 36,520 109,231 6,158 115,389 5,566 June 73,532 36,965 110,497 4,666 115,163 7,670 July 75,130 36,052 111,183 9,599 120,782 5,718 August 74,509 37,973 112,482 10,965 123,447 3,920 September 74,121 39,324 113,445 10,951 124,396 2,725 October 74,463 40,856 115,319 8,852 124,172 892 November 74,437 42,149 116,586 9,053 125,639 458 December 80,247 43,413 123,660 7,885 131,546 1,118 2009 January 80,919 43,151 124,070 13,174 137,244 1,463 February 79,053 43,580 122,634 14,443 137,076 1,754 March 77,190 45,394 122,584 15,909 138,493 3,133 April 76,423 47,146 123,569 15,048 138,618 2,438 May 76,859 49,412 126,271 16,225 142,496 5,358 June 79,526 49,653 129,179 14,847 144,026 7,790 July 82,999 50,427 133,426 11,798 145,224 9,241 August 82,062 53,154 135,216 12,520 147,735 1,792 September 81,784 55,375 137,159 10,342 147,501 1,141 October 82,777 53,624 136,401 10,566 146,967 835 November 84,136 53,619 137,755 9,703 147,458 2,229 December 92,793 55,105 147,898 6,925 154,823 6,300

(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.

29


ANNUAL REPORT 2009

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 January 46,910 ... 46,910 106,415 February 48,407 ... 48,407 104,161 March 50,039 ... 50,039 107,596 April 50,330 ... 50,330 108,638 May 49,449 ... 49,449 109,231 June 47,918 ... 47,918 110,497 July 47,600 ... 47,600 111,183 August 47,300 ... 47,300 112,482 September 47,072 ... 47,072 113,445 October 46,608 ... 46,608 115,319 November 45,664 ... 45,664 116,586 December 46,198 ... 46,198 123,660

2009 January 46,789 ... 46,789 124,070 February 47,058 ... 47,058 122,634 March 46,934 ... 46,934 122,584 April 46,268 ... 46,268 123,569 May 46,556 ... 46,556 126,271 June 46,385 ... 46,385 129,179 July 45,993 ... 45,993 133,426 August 44,851 ... 44,851 135,216 September 45,193 ... 45,193 137,159 October 45,733 ... 45,733 136,401 November 46,805 ... 46,805 137,755 December 47,717 ... 47,717 147,898

(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.

30


ANNUAL REPORT 2009

TABLE 8: Loans to Private Sector Monthly 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 9,125.5 15,840.1 16,986.1 4,942.2 5,489.2 4,027.8 6,919.7 63,330.6 2001 December 6,691.8 11,223.7 16,183.9 3,707.5 4,889.3 3,656.0 5,110.4 51,462.6 2002 December 5,150.1 7,479.7 11,554.6 2,264.3 2,685.9 2,091.2 4,815.9 36,041.7 2003 December 4,793.9 6,716.7 9,401.0 1,324.5 2,332.9 2,288.7 4,070.5 30,927.3 2004 December 6,796.0 9,479.9 8,830.5 1,672.3 4,184.0 3,175.5 4,803.6 38,941.6 2005 December 9,028.2 15,266.4 8,845.5 2,335.2 7,148.7 5,206.7 4,999.4 52,829.7 2006 December 12,107.6 22,558.1 10,132.6 3,761.4 13,009.3 7,399.8 5,916.8 74,884.7 2007 December 14,662.4 31,479.8 14,432.2 5,964.6 21,044.6 11,010.3 6,872.0 105,466.1 2008 January 15,383.9 32,005.6 14,717.0 6,100.8 21,772.5 11,681.6 7,123.2 108,785.4 February 15,150.7 32,095.8 15,046.9 6,302.6 22,603.7 12,014.9 7,043.8 110,256.6 March 15,143.9 32,291.5 15,368.0 6,456.5 23,311.8 12,115.3 7,054.7 111,742.5 April 15,871.5 33,167.1 15,645.0 6,601.7 24,085.2 12,468.1 7,165.5 115,004.7 May 16,664.7 34,210.5 16,033.7 6,851.4 25,141.6 12,870.1 7,163.3 118,935.6 June 16,499.9 33,482.3 16,396.8 7,105.6 25,666.4 13,151.5 7,366.2 119,668.4 July 16,816.4 33,561.5 16,740.4 7,233.1 26,046.3 13,047.0 7,379.9 120,826.4 August 16,720.0 34,041.0 17,087.9 7,398.9 26,358.1 13,517.3 7,393.9 122,518.6 September 17,486.2 34,753.4 17,400.9 7,508.0 26,767.8 13,596.4 7,549.8 125,063.5 October 17,326.2 36,601.9 17,784.3 7,679.5 27,253.4 14,265.8 7,659.2 128,570.9 November 16,429.4 36,774.8 18,216.0 7,836.7 27,617.1 14,546.1 7,732.5 129,153.8 December 16,263.1 36,295.4 18,704.6 7,868.9 27,668.5 14,963.3 7,959.1 129,721.5 2009 January 16,356.9 35,468.9 18,887.1 7,740.7 27,610.2 15,496.2 8,016.8 129,576.9 February 16,876.3 35,635.6 18,947.0 7,670.2 27,620.3 15,233.6 8,037.4 130,020.5 March 17,256.9 37,160.0 18,991.1 7,482.0 27,658.8 15,036.0 8,217.8 131,802.6 April 17,504.3 37,054.4 18,972.7 7,405.6 27,867.1 15,268.8 8,268.3 132,339.5 May 18,483.8 37,157.3 18,915.0 7,303.9 27,964.1 15,525.6 8,400.5 133,748.8 June 19,151.5 37,406.9 18,893.0 7,233.5 27,945.1 15,507.0 9,007.6 135,144.8 July 19,536.2 37,170.1 18,876.0 7,183.6 27,833.1 15,531.1 9,441.4 135,574.0 August 19,180.9 36,601.0 18,729.6 7,136.2 28,069.7 15,717.8 9,517.6 134,952.9 September 19,156.2 36,097.3 18,457.0 7,229.6 28,532.5 16,087.7 9,501.6 135,062.2 October 18,510.5 36,013.5 18,557.5 7,201.4 29,079.0 16,985.0 9,620.5 135,969.8 November 18,320.7 36,231.6 18,627.8 7,251.5 29,604.1 17,360.3 9,918.6 137,313.7 December 18,905.1 37,190.4 18,616.0 7,303.4 30,057.2 18,084.6 10,158.4 140,317.3

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

31


ANNUAL REPORT 2009

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


Mortgage Loans

Pledge Loans

Consumer Loans

Credit Card Financing

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 January 32.4 36.2 41.8 57.0 60.8 48.8 27.3 42.5 February 32.1 34.6 41.5 57.4 59.9 47.7 26.8 41.8 March 31.2 32.6 41.3 56.1 58.9 47.3 20.2 40.3 April 33.2 33.1 40.8 55.0 59.3 47.1 21.9 40.8 May 31.0 34.9 41.1 55.1 62.0 48.8 27.2 42.2 June 26.1 31.0 40.7 55.5 58.1 45.2 26.5 39.2 July 20.5 25.5 38.6 53.1 54.3 46.1 24.5 35.4 August 22.7 21.7 35.6 48.6 48.5 45.8 21.3 32.8 September 31.4 19.4 32.8 43.3 43.2 38.9 17.9 30.8 October 27.9 22.6 30.7 39.6 39.6 41.1 15.4 30.2 November 16.2 21.1 30.1 36.1 35.6 36.0 16.5 26.7 December 10.9 15.3 29.6 31.9 31.5 35.9 15.8 23.0

2009 January 6.3 10.8 28.3 26.9 26.8 32.7 12.5 19.1 February 11.4 11.0 25.9 21.7 22.2 26.8 14.1 17.9 March 14.0 15.1 23.6 15.9 18.6 24.1 16.5 18.0 April 10.3 11.7 21.3 12.2 15.7 22.5 15.4 15.1 May 10.9 8.6 18.0 6.6 11.2 20.6 17.3 12.5 June 16.1 11.7 15.2 1.8 8.9 17.9 22.3 12.9 July 16.2 10.8 12.8 -0.7 6.9 19.0 27.9 12.2 August 14.7 7.5 9.6 -3.6 6.5 16.3 28.7 10.1 September 9.6 3.9 6.1 -3.7 6.6 18.3 25.9 8.0 October 6.8 -1.6 4.3 -6.2 6.7 19.1 25.6 5.8 November 11.5 -1.5 2.3 -7.5 7.2 19.3 28.3 6.3 December 16.2 2.5 -0.5 -7.2 8.6 20.9 27.6 8.2

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

32


ANNUAL REPORT 2009

TABLE 10: Bank Credit (in millions of Pesos)

To Public Sector To Private Sector End of:

In Domestic Currency

In Foreign

Currency

Total In Domestic Currency

In Foreign

Currency

Total

1989 December 233 756 989 605 684 1,288 1990 December 5,291 1,647 6,938 7,238 3,515 10,753 1991 December 6,548 3,736 10,284 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 January 98,891 5,233 104,124 101,887 18,193 120,081

February 96,016 5,232 101,248 103,165 18,083 121,248 March 97,198 4,916 102,114 105,374 17,948 123,322 April 96,829 4,647 101,476 109,259 18,860 128,119 May 93,459 4,025 97,485 111,586 18,835 130,421 June 89,926 4,050 93,976 112,803 18,889 131,693 July 100,289 3,930 104,220 113,296 19,401 132,698 August 101,189 2,645 103,834 115,657 19,732 135,389 September 100,207 2,632 102,840 117,540 20,412 137,952 October 89,904 2,626 92,531 118,903 22,171 141,074 November 93,641 6,173 99,814 119,582 21,469 141,051 December 79,651 8,061 87,712 120,098 21,469 141,567

2009 January 88,001 7,191 95,192 119,295 21,834 141,130 February 88,002 6,903 94,905 120,037 23,242 143,279 March 88,503 8,525 97,027 121,034 23,846 144,880 April 90,280 8,681 98,960 121,829 23,618 145,446 May 93,732 8,747 102,479 122,826 24,599 147,425 June 92,946 8,749 101,695 124,446 23,837 148,283 July 98,405 8,826 107,232 123,970 23,285 147,255 August 96,425 8,734 105,159 124,579 22,648 147,226 September 104,023 8,751 112,775 125,877 21,665 147,542 October 103,907 8,890 112,796 127,708 21,621 149,329 November 104,654 8,599 113,253 129,427 21,785 151,213 December 99,648 12,910 112,558 133,206 21,827 155,034

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

33


ANNUAL REPORT 2009

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

In Domestic Currency In Foreign Currency End of:

Loans Resources Earned on

Loans

Total Loans Resources Earned on

Loans

Total

Total

1989 December 426 412 838 1,330 109 1,439 2,277 1990 December 5,822 6,707 12,529 4,768 394 5,162 17,691 1991 December 12,179 7,549 19,728 12,548 761 13,309 33,036 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 January 192,610 8,168 200,779 23,170 256 23,426 224,205 February 191,042 8,140 199,182 23,060 255 23,314 222,496 March 194,292 8,279 202,572 22,609 255 22,864 225,435 April 197,867 8,221 206,088 23,245 262 23,507 229,595 May 196,897 8,148 205,045 22,602 258 22,860 227,905 June 194,618 8,112 202,730 22,700 239 22,939 225,669 July 205,417 8,168 213,586 23,087 244 23,332 236,917 August 208,579 8,266 216,846 22,117 260 22,377 239,223 September 209,504 8,244 217,748 22,771 274 23,044 240,792 October 200,481 8,327 208,808 24,494 303 24,797 233,605 November 204,714 8,508 213,222 27,315 327 27,643 240,865 December 191,236 8,513 199,749 29,191 340 29,530 229,279

2009 January 200,606 6,690 207,296 28,661 364 29,026 236,321 February 202,331 5,708 208,039 29,749 395 30,145 238,184 March 203,759 5,778 209,537 31,956 414 32,371 241,907 April 206,343 5,766 212,108 31,911 387 32,298 244,406 May 210,713 5,845 216,558 32,949 397 33,346 249,904 June 211,448 5,945 217,393 32,218 368 32,586 249,979 July 216,375 6,000 222,375 31,742 370 32,111 254,487 August 214,896 6,108 221,004 31,027 354 31,381 252,385 September 225,114 4,786 229,900 30,095 321 30,416 260,316 October 226,701 4,914 231,614 30,199 313 30,511 262,126 November 228,845 5,235 234,081 30,087 297 30,384 264,465 December 227,682 5,172 232,854 34,450 287 34,737 267,592


34


ANNUAL REPORT 2009

TABLE 12: Bank Credit in Real Terms (1) (in millions of Pesos of December 2009)

In Domestic Currency In Foreign Currency End of:

Loans Resources Earned on

Loans

Total Loans Resources Earned on

Loans

Total

Total

1989 December 36,267 35,015 71,282 113,140 9,295 122,435 193,717 1990 December 35,730 41,159 76,888 29,264 2,418 31,682 108,570 1991 December 44,183 27,384 71,567 45,521 2,761 48,282 119,849 1992 December 62,791 18,112 80,903 69,208 2,801 72,008 152,911 1993 December 77,252 15,045 92,297 89,137 2,578 91,714 184,011 1994 December 80,122 11,914 92,036 103,013 3,031 106,043 198,079 1995 December 72,606 8,462 81,068 116,479 3,455 119,934 201,002 1996 December 79,082 3,976 83,058 130,964 3,028 133,992 217,050 1997 December 86,984 4,026 91,010 157,821 3,184 161,004 252,014 1998 December 96,603 2,075 98,678 191,559 3,387 194,946 293,624 1999 December 96,558 1,835 98,393 200,745 3,475 204,220 302,613 2000 December 87,283 1,682 88,964 199,913 3,666 203,579 292,543 2001 December 58,417 1,444 59,860 206,887 4,231 211,118 270,978 2002 December 147,419 25,135 172,554 76,893 360 77,254 249,808 2003 December 153,985 20,444 174,429 57,372 178 57,550 231,979 2004 December 171,240 19,358 190,597 49,318 150 49,469 240,066 2005 December 183,826 15,995 199,821 32,342 129 32,471 232,293 2006 December 185,339 12,352 197,691 30,959 193 31,153 228,843 2007 December 200,638 9,237 209,876 26,237 289 26,526 236,402 2008 January 224,614 9,526 234,140 27,020 298 27,318 261,458 February 221,235 9,426 230,661 26,704 295 26,999 257,660 March 222,497 9,481 231,978 25,891 292 26,183 258,161 April 224,270 9,318 233,587 26,347 297 26,644 260,231 May 221,362 9,160 230,522 25,410 290 25,701 256,222 June 216,806 9,037 225,843 25,288 266 25,555 251,397 July 227,556 9,049 236,605 25,576 271 25,846 262,451 August 229,557 9,098 238,655 24,341 287 24,628 263,283 September 229,350 9,025 238,375 24,928 300 25,227 263,602 October 218,401 9,071 227,472 26,683 330 27,014 254,486 November 222,948 9,266 232,214 29,748 356 30,105 262,318 December 208,196 9,268 217,464 31,779 370 32,149 249,613 2009 January 217,917 7,267 225,184 31,135 396 31,530 256,714 February 219,168 6,184 225,352 32,225 428 32,653 258,005 March 218,755 6,203 224,958 34,308 445 34,753 259,711 April 220,639 6,165 226,804 34,122 414 34,536 261,340 May 224,404 6,225 230,629 35,090 423 35,513 266,142 June 223,444 6,282 229,726 34,046 389 34,435 264,161 July 226,535 6,282 232,817 33,232 387 33,619 266,436 August 222,899 6,336 229,235 32,183 367 32,550 261,784 September 231,456 4,921 236,377 30,943 331 31,273 267,650 October 231,095 5,009 236,103 30,784 319 31,103 267,206 November 231,106 5,287 236,393 30,384 300 30,685 267,078 December 227,682 5,172 232,854 34,450 287 34,737 267,592

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

35


ANNUAL REPORT 2009

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

On Deposits On Loans


In Foreign Currency

In Foreign Currency

Savings Accounts

Time Deposits

(1)

Savings Accounts

Time Deposits

(1)


In Foreign

Currency

Period

30

days 30

days 90

days

Interbank Rate

1995 Average 3.7 12.5 2.7 8.4 19.1 14.6 16.0 9.7 1996 Average 3.5 7.6 2.6 6.3 10.9 9.4 10.1 6.3 1997 Average 3.3 7.2 2.5 6.0 9.5 8.0 8.6 6.8 1998 Average 3.0 7.8 2.4 6.5 11.0 9.2 10.1 6.9 1999 Average 2.9 8.5 2.5 6.5 11.4 9.3 10.2 7.1 2000 Average 2.8 8.7 2.7 7.2 11.5 10.0 10.6 8.4 2001 Average 3.2 17.4 3.4 9.9 32.4 18.9 19.8 29.9 2002 Average 6.4 46.9 2.0 3.9 66.6 22.4 26.7 47.7 2003 Average 1.3 10.8 0.9 0.8 20.7 ... ... 3.9 2004 Average 0.7 2.8 0.1 0.4 6.9 ... ... 2.0 2005 Average 0.8 3.9 0.1 0.5 6.2 ... ... 4.1 2006 Average 0.8 6.7 0.1 0.9 8.8 ... ... 7.4 2007 Average 0.6 8.4 0.1 1.4 11.4 ... ... 9.0 2008 January 0.5 9.0 0.1 1.5 15.3 ... ... 8.4 February 0.5 8.1 0.1 1.4 12.2 ... ... 7.5 March 0.5 8.3 0.1 1.5 11.6 ... ... 8.0 April 0.5 8.3 0.1 1.4 11.6 ... ... 8.1 May 0.5 10.1 0.1 1.4 15.6 ... ... 10.0 June 0.5 13.5 0.1 1.5 23.8 ... ... 10.4 July 0.6 12.0 0.1 1.5 22.6 ... ... 9.7 August 0.6 10.9 0.1 1.7 18.8 ... ... 9.2 September 0.6 10.9 0.1 1.6 17.9 ... ... 9.5 October 0.6 12.9 0.1 1.6 23.8 ... ... 13.6 November 0.7 17.2 0.1 1.8 32.2 ... ... 15.5 December 0.8 16.2 0.1 1.8 27.7 ... ... 14.7 Average 0.6 11.9 0.1 1.6 20.9 ... ... 10.7 2009 January 0.7 14.0 0.1 1.7 26.2 ... ... 12.7 February 0.6 11.8 0.1 1.7 22.0 ... ... 11.5 March 0.6 11.9 0.1 1.5 20.4 ... ... 11.2 April 0.5 12.0 0.2 1.3 20.3 ... ... 11.5 May 0.5 12.2 0.2 1.1 20.2 ... ... 11.3 June 0.5 12.2 0.1 1.0 20.1 ... ... 11.0 July 0.5 12.1 0.1 1.0 20.1 ... ... 10.7 August 0.5 12.1 0.1 0.9 ... ... ... 9.9 September 0.5 11.6 0.1 0.8 ... ... ... 9.5 October 0.5 11.4 0.1 0.7 ... ... ... 9.3 November 0.5 10.7 0.1 0.6 ... ... ... 9.0 December 0.5 9.8 0.1 0.5 ... ... ... 9.1 Average 0.5 12.3 0.1 1.1 ... ... ... 10.9

(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.

36


ANNUAL REPORT 2009

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

1994 Average 34.7 19.6 16.3 24.2 37.1 ... ... 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 January 18.1 16.5 11.7 14.1 26.6 27.7 26.1 February 17.3 14.9 11.4 14.9 26.6 28.2 26.0 March 17.9 14.6 11.2 15.2 26.5 28.8 25.7 April 18.1 14.6 11.6 15.2 26.9 28.6 26.2 May 20.4 17.3 12.0 15.7 26.9 28.7 26.2 June 23.2 21.1 12.6 16.8 27.5 30.0 26.8 July 22.3 20.9 12.2 18.7 29.6 31.8 28.8 August 21.0 19.0 12.5 19.0 29.5 32.4 28.6 September 20.6 18.9 12.9 19.2 29.7 32.5 28.6 October 24.6 22.1 13.2 18.9 29.0 31.5 28.2 November 28.1 25.2 16.0 20.6 30.0 34.3 28.9 December 27.7 26.0 16.2 21.0 30.2 35.4 29.0

Average 21.6 19.3 12.8 17.5 28.3 30.8 27.4

2009 January 26.6 24.4 16.1 26.3 30.4 37.4 28.9 February 24.8 21.8 15.1 26.1 30.7 36.8 29.3 March 24.4 20.8 15.7 25.9 30.2 33.7 29.2 April 24.1 21.0 15.4 23.8 30.8 35.2 29.5 May 23.4 20.5 15.9 23.4 30.7 33.9 29.9 June 22.8 19.5 15.9 22.6 30.4 34.0 29.6 July 22.5 19.8 15.6 22.1 31.4 34.3 30.6 August 22.5 20.0 15.4 21.8 31.5 34.3 30.6 September 22.1 18.7 16.4 18.7 31.6 33.9 30.8 October 21.7 17.9 16.0 19.2 31.5 33.0 31.0 November 21.5 17.2 16.1 18.4 31.8 32.6 31.5 December 21.4 16.0 15.5 18.3 31.6 32.3 31.4

Average 23.1 19.8 15.8 22.2 31.0 34.3 30.2

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

37


ANNUAL REPORT 2009

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


Mortgage Loans

Pledge Loans

Consumer Loans and

Credit Cards

Consumer Loans

Credit Cards

Financing

1994 Average 19.4 34.7 19.6 16.3 24.2 37.1 ... 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 January ... 18.1 16.5 11.7 14.1 26.6 27.7 February ... 17.3 14.9 11.4 14.9 26.6 28.2 March ... 17.9 14.6 11.2 15.2 26.5 28.8 April ... 18.1 14.6 11.6 15.2 26.9 28.6 May ... 20.4 17.3 12.0 15.7 26.9 28.7 June ... 23.2 21.1 12.6 16.8 27.5 30.0 July ... 22.3 20.9 12.2 18.7 29.6 31.8 August ... 21.0 19.0 12.5 19.0 29.5 32.4 September ... 20.6 18.9 12.9 19.2 29.7 32.5 October ... 24.6 22.1 13.2 18.9 29.0 31.5 November ... 28.1 25.2 16.0 20.6 30.0 34.3 December ... 27.7 26.0 16.2 21.0 30.2 35.4

Average ... 21.6 19.3 12.8 17.5 28.3 30.8

2009 January ... 26.6 24.4 16.1 26.3 30.4 37.4 February ... 24.8 21.8 15.1 26.1 30.7 36.8 March ... 24.4 20.8 15.7 25.9 30.2 33.7 April ... 24.1 21.0 15.4 23.8 30.8 35.2 May ... 23.4 20.5 15.9 23.4 30.7 33.9 June ... 22.8 19.5 15.9 22.6 30.4 34.0 July ... 22.5 19.8 15.6 22.1 31.4 34.3 August ... 22.5 20.0 15.4 21.8 31.5 34.3 September ... 22.1 18.7 16.4 18.7 31.6 33.9 October ... 21.7 17.9 16.0 19.2 31.5 33.0 November ... 21.5 17.2 16.1 18.4 31.8 32.6 December ... 21.4 16.0 15.5 18.3 31.6 32.3

Average ... 23.1 19.8 15.8 22.2 31.0 34.3

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

38


ANNUAL REPORT 2009

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 November 2009 12 54 17 83

Source: ABA based on Central Bank's data.

39


ANNUAL REPORT 2009

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 95,3862009( 1 ) 38,415 56,020 94,435

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

40


ANNUAL REPORT 2009

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 21,250,950 3,350,053 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

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

41


ANNUAL REPORT 2009

TABLE 19: Number of Branches (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 November 2009 1,436 2,491 108 4,035

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

42


ANNUAL REPORT 2009

TABLE 20: Branches, Geographical Distribution (1) As of November 30, 2009

Provinces Public Banks

Private Banks

Total Banking System


Institutions


Capital Federal 161 593 754 21 775 Provinces 1,275 1,898 3,173 87 3,260

Buenos Aires 513 694 1,207 52 1,259 Catamarca 14 7 21 1 22 Córdoba 232 165 397 5 402 Corrientes 40 19 59 1 60 Chaco 43 16 59 2 61 Chubut 58 32 90 0 90 Entre Ríos 25 93 118 1 119 Formosa 5 13 18 0 18 Jujuy 5 25 30 1 31 La Pampa 91 12 103 0 103 La Rioja 12 13 25 1 26 Mendoza 35 105 140 5 145 Misiones 14 48 62 2 64 Neuquén 39 24 63 1 64 Río Negro 21 45 66 0 66 Salta 9 41 50 2 52 San Juan 7 25 32 3 35 San Luis 6 35 41 3 44 Santa Cruz 11 27 38 0 38 Santa Fe 70 355 425 5 430 Santiago del Estero 8 42 50 1 51 Tierra del Fuego 5 12 17 0 17 Tucumán 12 50 62 1 63

Total 1,436 2,491 3,927 108 4,035

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

43


ANNUAL REPORT 2009

TABLE 21: ATMs, Geographical Distribution As of November 30, 2009

Provinces Public Banks

Private Banks

Total Banking System


Institutions


Capital Federal 471 2,070 2,541 4 2,545 Provinces 2,449 5,961 8,410 9 8,419

Buenos Aires 1,146 2,492 3,638 3 3,641 Catamarca 47 26 73 0 73 Córdoba 409 427 836 1 837 Corrientes 89 59 148 1 149 Chaco 132 49 181 0 181 Chubut 72 99 171 0 171 Entre Ríos 23 258 281 0 281 Formosa 6 63 69 0 69 Jujuy 6 111 117 0 117 La Pampa 56 27 83 0 83 La Rioja 9 48 57 0 57 Mendoza 77 300 377 2 379 Misiones 18 116 134 0 134 Neuquén 109 74 183 0 183 Río Negro 41 164 205 0 205 Salta 18 206 224 0 224 San Juan 8 121 129 1 130 San Luis 9 93 102 1 103 Santa Cruz 15 97 112 0 112 Santa Fe 101 755 856 0 856 Santiago del Estero 5 121 126 0 126 Tierra del Fuego 37 27 64 0 64 Tucumán 16 228 244 0 244

Total 2,920 8,031 10,951 13 10,964

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

44


ANNUAL REPORT 2009

TABLE 22: Assets and Liabilities Structure

December 2006 December 2007 December 2008 November 2009 Item


% In millions of Pesos



%

Assets 258,384 100.0 297,840 100.0 346,762 100.0 377,066 100.0

Cash and due from banks 36,001 13.9 43,673 14.7 55,491 16.0 65,135 17.3 Public bonds 65,405 25.3 63,104 21.2 65,458 18.9 83,449 22.1 Loans 99,940 38.7 127,931 43.0 149,975 43.3 159,538 42.3

Non-financial private sector 77,832 30.1 110,406 37.1 132,844 38.3 141,168 37.4 Financial sector 4,962 1.9 5,030 1.7 4,793 1.4 3,801 1.0 Public sector 20,874 8.1 16,583 5.6 17,083 4.9 20,268 5.4 Provisions -3,728 -1.4 -4,088 -1.4 -4,744 -1.4 -5,699 -1.5

Other credits through financial intermediation 28,030 10.8 32,311 10.8 41,336 11.9 36,091 9.6 Fixed assets 6,174 2.4 6,286 2.1 6,793 2.0 6,986 1.9 Others 22,835 8.8 24,536 8.2 27,709 8.0 25,869 6.9

Liabilities 225,369 87.2 261,082 87.7 305,382 88.1 329,425 87.4

Deposits 170,898 66.1 205,551 69.0 236,217 68.1 264,074 70.0 Non-financial private sector 124,345 48.1 155,248 52.1 167,260 48.2 192,490 51.0 Financial sector 944 0.4 1,147 0.4 1,309 0.4 1,984 0.5 Public sector 45,610 17.7 49,156 16.5 67,648 19.5 69,600 18.5

Other obligations through financial intermediation 46,037 17.8 46,156 15.5 57,662 16.6 50,723 13.5 Promissory Notes 6,762 2.6 7,068 2.4 6,113 1.8 5,524 1.5 Foreign Credit Lines 4,618 1.8 4,315 1.4 4,670 1.3 3,688 1.0 Forwards and other operations 6,008 2.3 8,273 2.8 8,578 2.5 4,796 1.3 Other 28,649 11.1 26,500 8.9 38,301 11.0 36,715 9.7 Others 8,434 3.3 9,376 3.1 11,503 3.3 14,628 3.9

Stockholders' Equity 33,015 12.8 36,758 12.3 41,380 11.9 47,641 12.6


45


ANNUAL REPORT 2009

TABLE 23: Terms for Assets and Liabilities As of October 31, 2009 (in millions of Pesos)

Assets Due Portfolio

1 Month

3 Months

6 Months

12 Months

24 Months

More than 24

Months

Total

Public Sector Loans 71 2,437 921 1,559 417 1,341 16,553 23,299 Financial System 20 3,336 1,057 768 1,140 632 835 7,789 Non-financial Private Sector and Foreign Residents 5,061 46,543 21,252 18,739 18,317 18,903 42,294 171,110 Liquid Assets ... 65,135 ... ... ... ... ... 65,135

Total 5,152 117,451 23,230 21,065 19,875 20,877 59,683 267,333

Liabilities 1 Month

3 Months

6 Months

12 Months

24 Months

More than 24

Months

Total

Deposits 162,823 26,153 10,942 9,669 1,082 52,893 263,562

Demand Deposits 52,800 ... ... ... ... 52,800 105,600 Others 110,023 26,153 10,942 9,669 1,082 94 157,963

Other Financial Intermediation Obligations

15,789 1,489 1,358 2,570 1,769 3,733 26,707

Central Bank 149 153 1 46 47 98 493 International Banks and Institutions 53 25 89 12 22 55 256 Unsubordinated Notes 184 214 298 992 1,039 2,766 5,492

Financing Received by Local Financial Institutions 2,360 1,025 752 1,311 492 343 6,284 Others 13,044 72 219 208 169 471 14,182

Subordinated Notes 1 16 24 62 17 1,767 1,887

Total 178,613 27,658 12,324 12,300 2,868 58,393 292,156


46


ANNUAL REPORT 2009

TABLE 24: Terms for Assets and Liabilities As of October 31, 2009 (as % of liabilities)


1 Month

3 Months

6 Months

12 Months

24 Months

More than 24 Months

Total

Public Sector Loans 0.0 0.8 0.3 0.5 0.1 0.5 5.7 8.0 Financial System 0.0 1.1 0.4 0.3 0.4 0.2 0.3 2.7

Non-financial Private Sector and Foreign Residents 1.7 15.9 7.3 6.4 6.3 6.5 14.5 58.6 Liquid Assets ... 22.3 ... ... ... ... ... 22.3

Total 1.8 40.2 8.0 7.2 6.8 7.1 20.4 91.5

Liabilities 1 Month

3 Months

6 Months

12 Months

24 Months

More than 24 Months

Total

Deposits 55.7 9.0 3.7 3.3 0.4 18.1 90.2 Demand Deposits 18.1 ... ... ... ... 18.1 36.1 Others 37.7 9.0 3.7 3.3 0.4 0.0 54.1

Other Financial Intermediation Obligations 5.4 0.5 0.5 0.9 0.6 1.3 9.1 Central Bank 0.1 0.1 0.0 0.0 0.0 0.0 0.2 International Banks and Institutions 0.0 0.0 0.0 0.0 0.0 0.0 0.1 Unsubordinated Notes 0.1 0.1 0.1 0.3 0.4 0.9 1.9

Financing Received by Local Financial Institutions

0.8 0.4 0.3 0.4 0.2 0.1 2.2

Others 4.5 0.0 0.1 0.1 0.1 0.2 4.9 Subordinated Notes 0.0 0.0 0.0 0.0 0.0 0.6 0.6

Total 61.1 9.5 4.2 4.2 1.0 20.0 100.0

Assets/Liabilities Ratio 0.7 0.8 1.7 1.6 7.3 1.0 0.9


47


ANNUAL REPORT 2009

TABLE 25: Terms for Assets and Liabilities As of October 31, 2009 (Percentage term structure)


1 Month

3 Months

6 Months

12 Months

24 Months

More than 24 Months

Total

Public Sector Loans 0.3 10.5 4.0 6.7 1.8 5.8 71.0 100.0 Financial System 0.3 42.8 13.6 9.9 14.6 8.1 10.7 100.0

Non-financial Private Sector and Foreign Residents 3.0 27.2 12.4 11.0 10.7 11.0 24.7 100.0 Liquid Assets ... 100.0 ... ... ... ... ... 100.0

Total 1.9 43.9 8.7 7.9 7.4 7.8 22.3 100.0

Liabilities 1 Month

3 Months

6 Months

12 Months

24 Months

More than 24 Months

Total

Deposits 61.8 9.9 4.2 3.7 0.4 20.1 100.0 Demand Deposits 50.0 ... ... ... ... 50.0 100.0 Others 69.7 16.6 6.9 6.1 0.7 0.1 100.0

Other Financial Intermediation Obligations 59.1 5.6 5.1 9.6 6.6 14.0 100.0 Central Bank 30.1 31.1 0.1 9.3 9.6 19.8 100.0 International Banks and Institutions 20.6 9.7 34.8 4.9 8.6 21.3 100.0 Unsubordinated Notes 3.4 3.9 5.4 18.1 18.9 50.4 100.0

Financing Received by Local Financial Institutions

37.6 16.3 12.0 20.9 7.8 5.5 100.0

Others 92.0 0.5 1.5 1.5 1.2 3.3 100.0 Subordinated Notes 0.1 0.9 1.3 3.3 0.9 93.6 100.0

Total 61.1 9.5 4.2 4.2 1.0 20.0 100.0


48


ANNUAL REPORT 2009

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

Loans Deposits Period

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 37,248 86,533 4,150 127,931 88,065 116,719 767 205,551 2008 December 49,258 95,658 5,059 149,975 99,818 135,711 688 236,217 2009 November 60,339 94,438 4,760 159,538 114,644 148,284 1,146 264,074

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

49


ANNUAL REPORT 2009

TABLE 27: Loans and Deposits (as a percentage)

Loans Deposits Period

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 November 37.8 59.2 3.0 100.0 43.4 56.2 0.4 100.0


50


ANNUAL REPORT 2009

TABLE 28: Information by Group of Institutions November 2009 (in millions of Pesos)

Group Assets Stockholders' Equity

Loans to Private

Sector (1)

Deposits of Private Sector

Public Federal Banks 87,832 10,036 20,574 28,090 Public Provincial and Municipal 59,709 4,779 20,704 34,815 Public Banks 147,541 14,815 41,277 62,905

International Banks 104,010 13,570 42,595 64,241 Local Private 106,548 15,954 42,348 54,337 Cooperatives 12,462 1,037 4,839 9,976 Private Banks 223,020 30,560 89,782 128,554

Banks Total 370,561 45,375 131,060 191,458

Non-Banking Financial Institutions 6,505 2,266 4,410 1,031

Total Financial System 377,066 47,641 135,469 192,490

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

51


ANNUAL REPORT 2009

TABLE 29: Information by Group of Institutions November 2009 (as a percentage)

Group Assets Stockholders' Equity

Loans to Private

Sector (1)

Deposits of Private Sector

Public Federal Banks 23.3 21.1 15.2 14.6 Public Provincial and Municipal 15.8 10.0 15.3 18.1 Public Banks 39.1 31.1 30.5 32.7

International Banks 27.6 28.5 31.4 33.4 Local Private 28.3 33.5 31.3 28.2 Cooperatives 3.3 2.2 3.6 5.2 Private Banks 59.1 64.1 66.3 66.8

Banks Total 98.3 95.2 96.7 99.5

Non-Banking Financial Institutions 1.7 4.8 3.3 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.

52


ANNUAL REPORT 2009

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

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Financial margin 5.7 5.7 6.5 1.1 3.1 4.6 5.8 5.7 6.7 8.6

Interest income 4.0 3.8 -1.7 -0.5 0.9 1.5 1.8 2.2 3.1 4.1 CER and CVS return ... ... 3.9 1.3 1.0 1.5 1.3 1.0 0.9 0.4 Assets return 0.1 0.2 2.8 -0.5 0.4 0.4 0.4 0.5 0.8 0.7 Differences in valuation 1.2 1.2 1.7 1.1 1.0 1.2 2.2 1.9 1.5 3.3 Other financial income 0.4 0.5 -0.1 -0.3 -0.2 0.1 0.1 0.1 0.4 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 Non-collectibility expenses -2.4 -2.6 -4.7 -1.1 -0.8 -0.6 -0.5 -0.7 -0.9 -1.1 Operating expenses -5.8 -6.1 -4.4 -4.2 -4.1 -4.6 -5.1 -5.5 -6.1 -6.7 Tax burdens -0.4 -0.5 -0.3 -0.3 -0.3 -0.4 -0.5 -0.6 -0.8 -1.0 Income tax -0.3 -0.2 -0.2 -0.2 -0.1 -0.3 -0.3 -0.4 -0.4 -1.2 Adjustments on Public Debt Valuation (1) ... ... ... -0.4 -0.2 -0.2 -0.3 -0.3 -0.6 -0.1 Judicial Injunctions Amortization ... ... ... -0.6 -0.9 -0.9 -1.1 -0.7 -0.3 -0.1 Miscellaneous 0.4 0.6 -1.8 0.9 0.8 0.8 1.2 0.9 0.4 0.1 Monetary adjustments ... ... -5.8 ... ... ... ... ... ... ... Total Return ... ... -8.9 -2.9 -0.5 0.9 1.9 1.5 1.6 2.4 Adjusted Return ( 2 ) ... ... -8.9 -1.9 0.7 2.0 3.4 2.5 2.5 2.6 ROE ... -0.2 -59.2 -22.7 -4.2 7.0 14.3 11.0 13.4 19.6

(1) Communication "A" 3911. Valuation adjustments according to Communication "A" 4084 are included in "Assets Return". (2) Judicial injunctions amortization and Public Sector revaluation are not included. Source: "Report on Banks", Central Bank.

53


ANNUAL REPORT 2009

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

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

1 - Liquidity 23.1 25.0 23.4 19.6 22.8 29.1 29.6 20.1 22.5 23.0 27.9 28.6

2 - Credit to Public Sector 16.2 18.0 17.3 23.0 48.9 47.0 40.9 31.5 22.5 16.3 12.8 14.5

3 - Loans to Private Sector 48.4 44.9 39.9 42.7 20.8 18.1 19.6 25.8 31.0 38.2 39.4 38.4

4 - Private Sector Non performing Loans 12.2 14.0 16.0 19.1 38.6 33.5 18.6 7.6 4.5 3.2 3.1 3.5

5 - Capital Exposure to Private Sector 20.6 24.7 26.2 21.9 17.3 12.4 -1.0 -4.1 -3.3 -3.0 -3.3 -2.8

6 - ROA 0.5 0.2 ... ... -8.9 -2.9 -0.5 0.9 1.9 1.5 1.6 2.4

7 - ROE 3.9 1.7 ... -0.2 -59.2 -22.7 -4.2 7.0 14.3 11.0 13.4 19.6

8 - Efficiency 138.0 142.0 147.0 143.0 189.0 69.0 125.0 151.0 167.0 160.0 167.0 185.0

9 - Capital requirement compliance 20.3 21.0 20.1 21.4 ... 14.5 14.0 15.3 16.8 16.9 16.8 18.7

10 - Excess of minimum capital requirement 49.0 54.0 58.0 54.0 ... 116.0 185.0 173.0 134.0 93.0 90.0 99.0

11 - Minimum capital requirement (estimated) 13.6 13.6 12.7 13.9 ... 6.7 4.9 5.6 7.2 8.8 8.8 9.4

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) / Net Asset. 3 - Loans to Private Sector / Net Asset. 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. Source: "Report on Banks", Central Bank.

54


ANNUAL REPORT 2009

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

Non-performing loans 12.9 13.1 18.1 17.7 10.7 5.2 3.4 2.7 2.7 3.0

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

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 73.8 79.2 102.9 124.5 129.9 129.6 131.4 125.7

(Non-performing loans - Provisions) / Total financing 5.0 4.4 4.7 3.7 -0.3 -1.3 -1.0 -0.8 -0.8 -0.8 (Non-performing loans - Provisions) / Equity 26.2 21.6 17.2 11.9 -1.0 -4.1 -3.3 -3.0 -3.3 -2.8

Source: "Report on Banks", Central Bank.

55


ANNUAL REPORT 2009

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

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Financial margin 6.2 6.4 7.6 2.3 2.9 4.3 5.9 5.8 7.3 9.9

Interest income 4.1 4.3 -0.2 0.1 1.0 1.7 2.1 2.7 4.4 5.0 CER and CVS return ... ... 1.1 0.9 0.8 1.0 0.6 0.4 0.4 0.1 Assets return 0.2 0.3 4.4 -0.3 0.6 0.5 0.6 0.6 0.9 0.8 Differences in valuation 1.4 1.2 2.5 1.7 0.8 1.0 2.4 1.9 0.9 3.7 Other financial income 0.5 0.7 -0.1 -0.2 -0.3 0.1 0.2 0.1 0.8 0.3

Net income on services 2.9 3.2 2.0 2.0 2.4 2.7 3.4 3.8 4.3 4.6 Non-collectibility expenses -2.5 -3.0 -5.0 -1.3 -0.9 -0.6 -0.6 -0.8 -1.1 -1.4 Operating expenses -6.0 -6.4 -4.8 -4.6 -4.6 -5.1 -5.9 -6.3 -7.0 -7.4 Tax burdens -0.4 -0.5 -0.4 -0.3 -0.3 -0.4 -0.6 -0.7 -1.0 -1.2 Income tax -0.4 -0.3 -0.2 -0.3 -0.2 -0.2 -0.3 -0.2 -0.7 -1.5 Adjustments on Public Debt valuation ( 1 ) ... ... ... -0.6 ... -0.2 -0.1 -0.1 -0.2 ... Judicial Injunctions Amortization ... ... ... -0.7 -1.0 -1.0 -0.9 -0.9 -0.4 -0.1 Miscellaneous 0.4 0.7 -3.0 1.0 0.7 0.9 1.2 1.0 0.5 0.1 Monetary adjustments ... ... -7.5 ... ... ... ... ... ... ...

Total Return 0.1 0.2 -11.3 -2.5 -1.0 0.5 2.2 1.6 1.9 3.0

Adjusted Return ( 2 ) 0.1 0.2 -11.3 -1.2 0.2 1.6 3.2 2.6 2.5 3.2

ROE 0.8 1.4 -79.0 -19.1 -8.1 4.1 15.3 10.9 15.2 23.3

(1) Communication "A" 3911. Valuation adjustments according to Communication "A" 4084 are included in "Assets Return". (2) Judicial injunctions amortization and Public Sector revaluation are not included. Source: "Report on Banks", Central Bank.

56


ANNUAL REPORT 2009

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

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

1 - Liquidity 22.8 24.3 24.1 23.6 24.8 27.6 29.2 21.5 23.7 25.7 34.1 29.8

2 - Credit to Public Sector 13.6 16.1 14.7 20.8 50.0 47.7 41.6 28.5 16.3 9.5 6.3 6.3

3 - Loans to Private Sector 47.6 44.6 38.4 45.4 22.4 19.9 22.5 31.1 37.9 46.6 44.0 43.2

4 - Private Sector Non-performing Loans 7.7 8.9 9.8 14.0 37.4 30.4 15.3 6.3 3.6 2.5 2.8 3.3

5 - Capital Exposure to Private Sector 13.2 11.5 13.4 11.4 18.6 11.2 1.9 -2.2 -3.0 -3.6 -3.4 -3.1

6 - ROA 0.5 0.3 0.1 0.2 -11.3 -2.5 -1.0 0.5 2.2 1.6 1.9 3.0

7 - ROE 4.3 2.3 0.8 1.4 -79.0 -19.1 -8.1 4.1 15.3 10.9 15.2 23.3

8 - Efficiency 139.0 146.0 152.0 151.0 168.0 93.0 115.0 136.0 158.0 152.0 166.0 196.0

9 - Capital requirements compliance 14.6 18.9 18.0 17.6 ... 14.0 15.1 17.8 18.6 19.2 18.3 22.5

10 - Excess of minimum capital requirement 27.0 60.0 49.0 43.0 ... 88.0 157.0 155.0 116.0 87.0 86.0 120.0

11 - Minimum capital requirement (estimated) 11.5 11.8 12.1 12.3 ... 7.4 5.9 7.0 8.6 10.3 9.8 10.2

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) / Net Asset. 3 - Loans to Private Sector / Net Asset. 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. Source: "Report on Banks", Central Bank.

57


ANNUAL REPORT 2009

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

Non-performing loans 8.3 9.9 19.8 15.7 8.9 4.4 2.9 2.2 2.5 3.1

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

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 73.4 79.0 97.0 114.3 129.3 141.3 134.1 128.9

(Non-performing loans - Provisions) / Total financing 2.7 2.4 5.3 3.3 0.4 -0.6 -0.9 -0.9 -0.9 -0.9

(Non-performing loans - Provisions) / Equity 13.4 11.4 18.6 11.2 1.3 -2.2 -3.0 -3.6 -3.4 -3.1

Source: "Report on Banks", Central Bank.

58


ANNUAL REPORT 2009

TABLE 36: Concentration of Deposits (as a percentage)

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

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 November 54.31 76.03 86.49 91.62 8.38 72


59


ANNUAL REPORT 2009

TABLE 37: Concentration of Assets (as a percentage)

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

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 November 50.68 71.50 83.30 88.34 11.66 72


60


ANNUAL REPORT 2009

TABLE 38: Tranches of Deposits As of October 31, 2009

Tranches Individual Legal Persons Total

From To Number Amount Number Amount Number Amount

In

millions of Pesos



0 300 14,638,094 402 1,071,197 72 15,709,291 474

301 500 789,513 292 123,101 57 912,614 349 501 1,000 1,231,571 855 221,615 197 1,453,186 1,052

1,001 2,500 2,001,958 3,118 156,433 281 2,158,391 3,399 2,501 5,000 1,480,179 4,943 127,927 528 1,608,106 5,470 5,001 10,000 1,200,607 7,605 83,791 644 1,284,398 8,249

10,001 25,000 1,097,451 15,272 99,833 1,685 1,197,284 16,956 25,001 50,000 492,867 14,887 61,648 2,257 554,515 17,143 50,001 100,000 259,479 14,944 50,357 3,517 309,836 18,461

100,001 250,000 125,495 14,953 47,171 7,212 172,666 22,164 250,001 500,000 24,728 6,523 21,964 6,961 46,692 13,483 500,001 1,000,000 7,294 3,764 14,465 8,357 21,759 12,121

1,000,001 2,500,000 2,861 2,853 11,104 14,354 13,965 17,207 2,500,001 5,000,000 647 1,639 4,433 12,002 5,080 13,641 5,000,001 10,000,000 357 889 2,599 13,412 2,956 14,301

10,000,001 25,000,000 367 682 1,986 19,487 2,353 20,170 25,000,001 50,000,000 265 341 649 11,934 914 12,275 50,000,001 100,000,000 248 146 299 14,578 547 14,723

100,000,001 201 71 246 40,078 447 40,150

Total 23,354,182 94,177 2,100,818 157,611 25,455,000 251,788


61


ANNUAL REPORT 2009

TABLE 39: Deposits of Private Sector, Geographical Distribution

Provinces

IV Q 2008

IV Q 2009

Change Change Share

In millions of Pesos %

Total 164,228.5 197,378.2 33,149.7 20.2 100.0 Capital Federal 81,133.6 96,713.1 15,579.5 19.2 49.0 Buenos Aires 35,392.8 41,714.9 6,322.0 17.9 21.1

Greater Buenos Aires 18,136.1 21,811.4 3,675.3 20.3 11.1 Rest of Buenos Aires 17,256.7 19,903.5 2,646.8 15.3 10.1

Catamarca 437.8 497.5 59.7 13.6 0.3 Córdoba 10,300.4 12,796.4 2,496.0 24.2 6.5 Corrientes 1,110.5 1,246.3 135.7 12.2 0.6 Chaco 1,454.3 1,579.2 124.8 8.6 0.8 Chubut 2,079.3 2,584.5 505.2 24.3 1.3 Entre Ríos 2,388.6 2,990.1 601.5 25.2 1.5 Formosa 390.6 383.4 -7.2 -1.8 0.2 Jujuy 859.4 1,136.2 276.8 32.2 0.6 La Pampa 1,040.3 1,333.0 292.7 28.1 0.7 La Rioja 374.8 425.8 51.0 13.6 0.2 Mendoza 4,458.0 5,477.7 1,019.7 22.9 2.8 Misiones 996.8 1,319.3 322.6 32.4 0.7 Neuquén 1,734.5 2,202.3 467.8 27.0 1.1 Río Negro 1,590.0 1,916.8 326.7 20.5 1.0 Salta 1,596.3 2,212.9 616.6 38.6 1.1 San Juan 1,223.4 1,520.8 297.4 24.3 0.8 San Luis 717.4 880.3 163.0 22.7 0.4 Santa Cruz 1,189.4 1,408.0 218.6 18.4 0.7 Santa Fe 10,124.3 12,440.5 2,316.2 22.9 6.3 Santiago del Estero 887.2 1,125.3 238.1 26.8 0.6 Tierra del Fuego 777.2 918.1 140.9 18.1 0.5 Tucumán 1,971.5 2,555.8 584.3 29.6 1.3


62


ANNUAL REPORT 2009

TABLE 40: Loans by Type

December 2006 December 2007 December 2008 November 2009 Type of Loan

Millions of Pesos

% Millions of Pesos

% Millions of Pesos

% Millions of Pesos

%

Public Sector 20,874 20.9 16,583 13.0 17,083 11.4 20,268 12.7

Financial Sector 4,962 5.0 5,030 3.9 4,793 3.2 3,801 2.4

Private Sector ( 1 ) 77,832 77.9 110,406 86.3 132,844 88.6 141,168 88.5

Overdraft 11,012 11.0 14,295 11.2 15,503 10.3 17,949 11.3

Promissory Notes 17,220 17.2 23,218 18.1 24,628 16.4 25,783 16.2

Mortgage Loans 10,345 10.4 14,616 11.4 18,861 12.6 18,630 11.7

Pledge Loans 3,824 3.8 6,041 4.7 7,799 5.2 7,304 4.6

Consumer Loans 12,716 12.7 20,760 16.2 26,874 17.9 29,010 18.2

Others 20,954 21.0 29,364 23.0 36,534 24.4 39,903 25.0

Interest accrued 1,760 1.8 2,112 1.7 2,645 1.8 2,590 1.6

Provisions -3,728 -3.7 -4,088 -3.2 -4,744 -3.2 -5,699 -3.6

Total 99,940 100.0 127,931 100.0 149,975 100.0 159,538 100.0

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

63


ANNUAL REPORT 2009

TABLE 41: Financing by Activity

Amounts Interest Rates

Change Non-

Performing Loans

Activity

III Q 2008

III Q 2009

Millions of Pesos

% Share %

% III Q 2008

% III Q 2009

III Q 2008

III Q 2009

Difference %

Change%

Difference from

average %

Unidentified 5,502.6 7,328.2 1,825.6 33.2 4.7 31.6 20.5 19.3 23.3 4.0 20.5 -0.1

Individual Employees 45,754.5 50,165.0 4,410.5 9.6 32.4 7.5 8.3 27.6 28.8 1.3 4.5 5.4

Primary Production 16,187.9 19,177.3 2,989.4 18.5 12.4 3.4 3.7 17.0 18.2 1.2 6.9 -5.3

Manufacturing Industry 22,406.3 24,671.5 2,265.2 10.1 16.0 3.7 5.2 15.5 16.4 0.9 5.9 -7.0

Electricity, gas and water 1,846.6 2,238.4 391.8 21.2 1.4 6.7 4.0 18.3 18.4 0.1 0.8 -5.0

Construction 3,181.8 3,403.6 221.9 7.0 2.2 8.3 11.7 23.1 23.6 0.5 2.1 0.1

Commerce 10,505.9 9,197.5 -1,308.4 -12.5 5.9 2.1 5.6 20.1 20.5 0.4 2.1 -3.0

Services 18,862.7 16,149.6 -2,713.1 -14.4 10.4 10.7 7.8 22.5 24.3 1.8 7.9 0.8

Public Administration, Defense and Social Security 11,427.1 16,933.5 5,506.4 48.2 10.9 1.0 0.7 28.9 26.4 -2.5 -8.6 2.9

Financial Intermediation 6,698.8 5,395.3 -1,303.5 -19.5 3.5 2.8 5.0 17.8 20.2 2.4 13.6 -3.3

Total 142,374.2 154,660.1 12,285.9 8.6 100.0 6.7 6.7 22.3 23.5 1.1 5.0 ...

Private Sector 124,248.2 132,331.2 8,082.9 6.5 85.6 7.4 7.5 22.0 23.2 1.2 5.6 -0.2


64


ANNUAL REPORT 2009

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 16.0 1.4 2.0 6.6 23.2 34.0 4.3 100.0 2009 12.9 15.0 1.3 2.4 6.1 25.0 32.5 4.8 100.0


65


ANNUAL REPORT 2009

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 3.3 3.7 5.5 9.2 3.2 4.7 7.8 22.6 6.2 2009 4.0 5.7 4.1 14.2 5.4 4.7 8.9 17.3 7.0


66


ANNUAL REPORT 2009

TABLE 44: Loans to Private Sector, Geographical Distribution

Amounts Provinces

III Q 2008

III Q 2009

Change Change Share Non-performing

Loans

Millions of Pesos %

Total 124,248.2 132,331.2 8,082.9 6.5 100.0 7.2

Capital Federal 64,096.9 69,778.2 5,681.3 8.9 52.7 8.0 Buenos Aires 21,178.2 21,764.8 586.6 2.8 16.4 6.1

Greater Buenos Aires 11,106.7 10,612.8 -493.9 -4.4 8.0 7.2 Rest of Buenos Aires 10,071.5 11,152.0 1,080.5 10.7 8.4 4.8

Catamarca 291.8 297.2 5.4 1.9 0.2 5.5 Córdoba 7,472.0 8,233.1 761.1 10.2 6.2 5.4 Corrientes 729.6 712.8 -16.8 -2.3 0.5 17.2 Chaco 1,077.7 1,313.0 235.2 21.8 1.0 5.7 Chubut 1,552.8 1,694.7 142.0 9.1 1.3 7.3 Entre Ríos 2,119.0 2,156.7 37.7 1.8 1.6 3.5 Formosa 301.6 320.1 18.5 6.1 0.2 6.2 Jujuy 702.6 680.5 -22.1 -3.1 0.5 5.1 La Pampa 1,025.4 1,101.0 75.6 7.4 0.8 3.3 La Rioja 391.7 398.7 7.0 1.8 0.3 20.7 Mendoza 2,954.9 2,900.7 -54.2 -1.8 2.2 8.7 Misiones 1,475.7 1,509.7 34.0 2.3 1.1 5.8 Neuquén 1,646.8 1,604.4 -42.5 -2.6 1.2 6.3 Río Negro 847.7 1,010.0 162.3 19.1 0.8 6.6 Salta 1,661.0 1,837.6 176.6 10.6 1.4 5.9 San Juan 692.9 687.7 -5.2 -0.8 0.5 17.9 San Luis 380.0 408.9 28.9 7.6 0.3 7.0 Santa Cruz 702.4 847.9 145.5 20.7 0.6 4.1 Santa Fe 9,160.3 9,106.5 -53.9 -0.6 6.9 3.9 Santiago del Estero 735.5 772.3 36.8 5.0 0.6 10.2 Tierra del Fuego 704.1 732.7 28.6 4.1 0.6 6.6 Tucumán 2,347.3 2,461.8 114.5 4.9 1.9 10.7


67


ANNUAL REPORT 2009

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

Provinces

III Q 2008

III Q 2009

Difference Change Difference from

Average

In %

Total 22.0 23.2 1.2 5.6 ...

Capital Federal 20.2 21.5 1.3 6.4 -1.7 Buenos Aires 24.7 27.2 2.6 10.3 4.0

Greater Buenos Aires 25.6 28.4 2.8 10.9 5.2 Rest of Buenos Aires 23.6 26.0 2.4 10.1 2.8

Catamarca 23.9 26.8 2.9 12.2 3.6 Córdoba 22.1 22.7 0.6 2.8 -0.5 Corrientes 23.9 28.9 4.9 20.5 5.6 Chaco 22.7 22.4 -0.3 -1.4 -0.9 Chubut 24.2 24.7 0.5 2.0 1.5 Entre Ríos 23.3 24.8 1.6 6.8 1.6 Formosa 26.2 27.3 1.1 4.0 4.1 Jujuy 27.1 28.0 0.9 3.4 4.8 La Pampa 23.5 23.0 -0.6 -2.4 -0.3 La Rioja 24.7 25.3 0.6 2.3 2.1 Mendoza 22.5 24.4 1.8 8.0 1.1 Misiones 24.9 25.0 0.2 0.7 1.8 Neuquén 25.0 25.7 0.7 3.0 2.5 Río Negro 25.2 23.2 -1.9 -7.7 0.0 Salta 26.1 25.8 -0.3 -1.1 2.6 San Juan 26.0 26.1 0.1 0.3 2.9 San Luis 29.5 28.9 -0.6 -2.0 5.7 Santa Cruz 27.0 30.9 3.9 14.5 7.7 Santa Fe 20.9 21.5 0.5 2.6 -1.7 Santiago del Estero 27.0 30.2 3.1 11.6 7.0 Tierra del Fuego 26.0 27.3 1.3 4.9 4.1 Tucumán 26.7 24.0 -2.6 -9.8 0.8


68


ANNUAL REPORT 2009

TABLE 46: Financing by Tranches As of October 31, 2009

Tranches Individual Legal Persons Individual Legal Persons

From To Number Amount Number Amount Number Amount Number Amount



% % % %

0 300 799,380 158.4 29,890 4.1 8.8 0.2 22.4 0,0

301 500 501,974 225.8 3,612 1.6 5.5 0.3 2.7 0,0 501 1,000 1,049,402 828.0 4,566 3.6 11.6 1.1 3.4 0,0

1,001 2,500 1,907,716 3.281.2 7,863 13.6 21.0 4.2 5.9 0,0 2,501 5,000 1,573,390 5.739.2 8,887 32.9 17.3 7.3 6.7 0,0 5,001 10,000 1,395,356 10.021.9 10,013 73.1 15.4 12.7 7.5 0,1

10,001 25,000 1,245,952 19.360.4 13,897 228.9 13.7 24.6 10.4 0,2 25,001 50,000 382,581 13.011.9 10,960 396.4 4.2 16.5 8.2 0,3 50,001 100,000 135,742 9.327.4 10,937 786.4 1.5 11.8 8.2 0,6

100,001 200,000 62,214 8.554.8 10,251 1.467.7 0.7 10.9 7.7 1,2 200,001 500,000 17,075 4.794.0 10,230 3.259.8 0.2 6.1 7.7 2,6 500,001 1,000,000 2,354 1.581.1 4,926 3.472.2 0.0 2.0 3.7 2,8

1,000,001 2,500,000 694 1.003.0 3,614 5.620.7 0.0 1.3 2.7 4,6 2,500,001 5,000,000 122 413.2 1,496 5.298.6 0.0 0.5 1.1 4,3 5,000,001 10,000,000 34 232.8 911 6.353.8 0.0 0.3 0.7 5,2

10,000,001 25,000,000 17 248.8 681 10.564.8 0.0 0.3 0.5 8,6 25,000,001 50,000,000 2 54.8 277 9.630.1 0.0 0.1 0.2 7,8 50,000,001 100,000,000 ... ... 157 10.937.4 ... ... 0.1 8,9

100,000,001 ... ... 162 65.216.2 ... ... 0.1 52,9

Total 9,074,005 78,836.4 133.330 123,361.8 100,0 100.0 100.0 100.0


69


ANNUAL REPORT 2009

TABLE 47: Financing by Tranches and Situation As of October 31, 2009 (as percentages)

Tranches 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 85.3 85.1 4.7 4.6 10.0 10.3

301 500 85.3 85.3 4.5 4.5 10.2 10.2 501 1,000 84.5 84.5 4.7 4.7 10.8 10.7

1,001 2,500 84.7 84.8 5.0 5.0 10.2 10.2 2,501 5,000 84.7 84.7 5.3 5.3 10.0 10.0 5,001 10,000 85.7 85.9 5.0 4.9 9.3 9.2

10,001 25,000 89.0 89.2 3.6 3.4 7.4 7.3 25,001 50,000 88.0 87.8 2.6 2.6 9.4 9.6 50,001 100,000 87.4 87.6 1.9 1.8 10.7 10.6

100,001 200,000 90.5 90.6 1.4 1.4 8.1 8.1 200,001 500,000 88.9 89.0 2.1 2.1 9.0 8.9 500,001 1,000,000 91.1 91.2 2.0 2.0 6.9 6.9

1,000,001 2,500,000 90.3 90.5 3.0 3.0 6.7 6.6 2,500,001 5,000,000 91.6 91.6 2.9 2.8 5.6 5.5 5,000,001 10,000,000 93.8 94.0 1.4 1.4 4.8 4.6

10,000,001 25,000,000 95.5 95.1 1.3 1.6 3.2 3.2 25,000,001 50,000,000 95.8 96.0 1.5 1.5 2.7 2.5 50,000,001 100,000,000 94.3 94.8 0.6 0.6 5.0 4.5

100,000,001 99.1 99.4 ... ... 0.9 0.6

Total 85.5 92.4 4.7 2.0 9.8 5.6

(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.

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ANNUAL REPORT 2009

TABLE 48: Concentration of Credit Assistance As of October 31, 2009

Individual Legal Persons Individual Legal Persons

Number Amount Number Amount Number Amount Number Amount

Number of Institutions

In

millions of Pesos


% % % %

1 5,995,259 30,347.4 98,643 22,113.3 66.1 38.5 74.0 17.9 2 2,095,283 25,927.9 21,260 21,996.7 23.1 32.9 15.9 17.8 3 683,744 13,247.6 7,265 8,994.1 7.5 16.8 5.4 7.3 4 210,647 5,525.1 2,941 9,596.5 2.3 7.0 2.2 7.8 5 o más 89,072 3,788.4 3,221 60,661.2 1.0 4.8 2.4 49.2

Total 9,074,005 78,836.4 133,330 123,361.8 100.0 100.0 100.0 100.0


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ANNUAL REPORT 2009

TABLE 49: Minimum Reserve Requirements (as a percentage)

Since

Item January 2009

November2009

1. Deposits in current accounts (except 16) and demand deposits in cooperative credit unions.

19

19

2. Deposits in savings accounts. 2.1. In Pesos (except 16). 19 19 2.2. In Foreign Currency. 30 20 3. Custody accounts, special accounts for closed savings groups, "Unemployment fund for construction workers", "Accounts for salaries payments", special current accounts for legal persons and pension savings accounts.

3.1. In Pesos (except 16). 19 19 3.2. In Foreign Currency. 30 20 4. Other demand deposits and obligations, pension payments granted by ANSES outstanding payment and immobilized funds corresponding to obligations comprised in these rules.

4.1. In Pesos (except 16). 19 19 4.2. In Foreign Currency. 30 20 5. Unused overdraft funds. 19 19 6. Deposits in current accounts made by non-banking financial institutions computable for compliance of their minimum reserve 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:

7.1. In Pesos: i) Up to 29 days. 14 14 ii) From 30 to 59 days. 11 11 iii) From 60 to 89 days. 7 7 iv) From 90 to 179 days. 2 2 v) More than 180 days. 0 0 Deposits with "CER" indexation clause are included in this item. 7.2. In Foreign Currency: i) Up to 29 days. 35 20 ii) From 30 to 59 days. 28 15 iii) From 60 to 89 days. 20 10 iv) From 90 to 179 days. 10 5 v) From 180 to 365 days. 6 2 vi) More than 365 days. 0 0 8. Obligations under foreign lines of credit (except those included in items 7 and 9) 0 0

72


ANNUAL REPORT 2009

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

9. Debt securities (including notes). a) Debt issued as of 01.01.02, including debts arising from restructured obligations, according to their remaining term:

9.1. In Pesos: i) Up to 29 days. 14 14 ii) From 30 to 59 days. 11 11 iii) From 60 to 89 days. 7 7 iv) From 90 to 179 days. 2 2 v) More than 180 days. 0 0 9.2. In Foreign Currency: i) Up to 29 days. 35 20 ii) From 30 to 59 days. 28 15 iii) From 60 to 89 days. 20 10 iv) From 90 to 179 days. 10 5 v) From 180 to 365 days. 6 2 vi) More than 365 days. 0 0 b) Others. 0 0 10. Obligations towards the Trust Fund For Assistance to Financial Institutions and Insurance Companies.

0

0

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

11.1. In Pesos. 10 10 11.2. In Foreign Currency. 15 10 12 Deposits of Trust Funds. 12.1. In Pesos: 19 19 12.2. In Foreign Currency: 40 20 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") the interest rates for which were higher than 35% of the average BADLAR interest rate of private banks

100

100 15. Transferable time deposit certificates of public sector, denominated in pesos, with an option to be payed off within 30 days of its initial date. 16

16

Note: A two-month period was complied with as regards the averages for June-July and October-November.

APPENDIX

ANNUAL REPORT 2009

APPENDIX Principal Banking, Exchange and Financial Measures. Communication "A" 4895. RUNOR - 1 - 872. (Jan. 12, 2009). The Argentine Central Bank (B.C.R.A.) modified the negulations on Prevention of money laundering and of other illegal activities. In this regard, it extended, until April 1, 2009, the demand for identification of the depositor when the latter isn’t the account holder, as well as the determination of "Politically Exposed People" (PEPs). Additionally, it flexibilized some aspects of the rules regarding PEPs, sworn statements and already linked clientele (stocks).

Communication "A" 4898. CONAU - 1 - 876, LISOL - 1 - 496 and OPRAC - 1 - 621. (Jan. 23, 2009). This communication established the accounting valuation of the instruments of the national public debt and of the refinancing of Guaranteed Loans issued by the national government (Decree 1387/01 and complementary decrees). Communication "A" 4901. CAMEX - 1 - 631. (Feb. 6, 2009). The B.C.R.A. excepted from setting up the 30% reserve requirement foreseen in Decree 616/05 on non-residents’ inflow of foreign currency on the exchange market, when it is verified that the pesos resulting from the exchange operation are applied within the following ten working days to a series of concepts included in the classification of current transactions in international accounts. Communication "A" 4902. CAMEX - 1 - 632. (Feb. 6, 2009). As of Feb. 6, 2009, a series of measures were ordered related to export prefinancing. In this regard, there was a reduction from 3 years to 1 year in the minimum length of the average duration demanded for loans from abroad awarded by International Organizations, Credit Agencies or foreign banks to enter the local exchange market under the heading of export prefinancing. Additionally, it was decided to allow the entry into the local exchange market of indebtedness operations with the exporter’s overseas head offices or branches, under the heading of export prefinancing.

73

APPENDIX

ANNUAL REPORT 2009

Communication "A" 4904. CONAU - 1 - 880. (Feb. 6, 2009). The B.C.R.A. added a new Information System called "Data Base on Operational Risk Events" which banks must comply with on a quarterly basis. Banks were ordered to set up the data base as of Jan. 1, 2010. The first submission was to correspond to the quarter ending on March 31, 2010, the deadline being April 20, 2010. Nevertheless, the B.C.R.A. considered it desirable for banks which have made progress in the matter to move forward with the setting up of the base. The System comes under the rulings on "information reprocessing expenses" as of the submission on Sept. 30, 2010. Communication "A" 4907. CAMEX - 1 - 633. (Feb. 12, 2009). Starting on Feb. 13, 2009, the Central Bank extended to 180 calendar days, from 60, the additional time limit that may be issued by the financial entities in charge of monitoring export advances and prefinancing for the shipment to take place, when there are causes beyond the exporter’s power that justify the delays in carrying out the shipments, such as plant paralysis caused by strikes, problems with domestic transport, lack of ship holds, weather-related disasters. Communication "A" 4916. LISOL - 1 - 497, OPASI - 2 - 396 and OPRAC - 1 - 622. (Feb. 26, 2009). The guiding institution regulated term deposits to be set up with the repatriation of capital through the transfers from abroad and deposits in the country contemplated in art. 29 of Law 26,476. It also established that the destination of these loans should be special lines of credit to the productive sector in accordance with enabling regulations issued by the national presidency. Lastly, it specified that until those regulations are issued, the loan capacity may not be applied. Communication "A" 4917. CAMEX - 1 - 634. (Feb. 26, 2009). In relation to the rules on declaring unreported capital, the B.C.R.A. established the norms to take into account for the entry through the local exchange market of transfers from abroad. It established that transfers from abroad must correspond to holdings as of Dec. 31, 2007, of: external assets in banking, financial or other institutions under the supervision of Central Banks and/or Securities Commissions; external assets in financial institutions that carry out investment banking operations; other assets acquired prior to Dec. 31, 2007, the sale or

74

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disposal of which, after that date, gave rise to holdings of external assets at one of the institutions foreseen under the two previous headings. The funds from abroad must originate in accounts in foreign banks subjected to the rules on the Prevention of money laundering and of the financing of terrorism. At the same time, the foreign currency transferred to the correspondent account of the local banks must be sold on the Sole and Free Exchange Market. Communication "A" 4918. CAMEX - 1 - 635. (Feb. 26, 2009). Modifications were instituted, applicable as of Feb. 27, 2009, linked to external financing funds for the non-financial private sector and for the financial sector. Communication "A" 4920. REMON - 1 - 847. (March 5, 2009). It was decided to carry out, effective March 6, 2009, with the frequency considered appropriate, tenders for access options to short-term operations in foreign currencies at a pre-established rate, restricted to financial institutions that, having increased their financing of exports, have suffered drops in their deposits in foreign currencies. Communication "A" 4921. REMON - 1 - 848. (March 5, 2009). In relation to the B.C.R.A.’s participation in the OCT-MAE markets in interest rates swaps, the formula for the drafts function was modified to include mortgage loans on real estate with purposes other than housing. The following were excluded: personal loans (without chattel mortgage security or mortgage guarantee), those for small amounts, financing employing credit cards, mortgage loans on real estate with purposes other than housing, and chattel mortgage loans for the purchasing of cars or vans with loads of up to 1,500 kg. Communication "A" 4922. CAMEX - 1 - 636. (March 19, 2009). A series of rulings were issued linked to tax withholdings on the collection of money for exports. Communication "A" 4923. CAMEX - 1 - 637. (March 19, 2009). Modifications were introduced, effective March 20, 2009, in aspects related to the entry of foreign currency because of non-residents’ investments applied to the purchase of real estate.

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Communication "A" 4925. REMON - 1 - 849. (March 25, 2009). The B.C.R.A. announced that of March 25, 2009, it would participate in the Cleared Term Operations Market of the Electronic Over-the-Counter Market in Interest Rate Futures Operations in pesos through the "Draft Function". Communication "A" 4926. OPRAC - 1 - 623. LISOL - 1 - 498, COPEX - 1 - 271, OPASI - 2 - 397. (March 25, 2009). The rules were modified in reference to the financing of the non-financial public sector, in particular with regard to the financial assistance that financial institutions award to trusts and/or the certificates of participation and/or debt securities they underwrite, which are issued by public trusts or fiduciary funds, established by national law or presidential decree, existing or to be set up.

Communication "A" 4927. CAMEX - 1 - 638. (March 26, 2009). The B.C.R.A. allowed access to the local exchange market for the payment of services on capital and interest on locally issued debt securities, when the conditions for the entire issue, specified in this Circular Letter, are met. Communication "A" 4928. RUNOR - 1 - 880. (March 31, 2009). Clarifications were issued with regard to the demand for identification of depositors in the regulations on Prevention of money laundering and of other illegal activities, and this requirement was again extended, to July 1, 2009. In this regard, it was established that the identification of depositors should be carried out for cash deposits for amounts of 30,000 pesos or more, and that deposits made with magnetic cards or in escrow accounts are to be excepted from the identification procedure. Communication "A" 4929. OPASI - 2 - 398 and SINAP - 1 - 14. (April 8, 2009). The guiding institution allowed financial institutions to operate the peso-denominated "Nominative Official Order of Payment" (in Spanish, OPON) through the Electronic Clearing Chambers. The former may be issued by entities of the non-financial public sector against accounts in their name, when this has been expressly agreed upon with the financial entity in which the account is located. The orders of payment must be issued in pesos and to the order of specific persons; they may not be endorsed and the rules that govern checks, bills of exchange, and other circulatory or credit bonds, do not apply to them.

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Communication "A" 4930. REMON - 1 - 850. (April 9, 2009). The creation was ordered of a market for swaps at a fixed interest rate per variable. Additionally, it was established that, in these tenders, only those financial entities may participate that commit themselves to allocate, as a minimum and during the following calendar quarter, an equivalent amount of the notional capital that was allocated to them, to increasing medium and long-term credits to productive activities and infrastructure works.

Communication "A" 4933. CAMEX - 1 - 639. (April 17, 2009). The Central Bank modified, effective April 20, 2009, the stipulations referring to exchange operations corresponding to the inflow of foreign currencies in the exchange market that are carried out for direct investments in the country and the sale to direct investors of participations in local companies. Communication "A" 4936. OPASI - 2 - 399. (April 28, 2009). The Nominative Official Order of Payment (in Spanish, OPON) incorporated those documents that may be deposited in savings accounts, basic accounts, special current accounts, bank checking accounts and sight accounts opened in cooperative credit funds. Communication "A" 4938. CAMEX - 1 - 640. (April 30, 2009). Modifications were issued regarding bank’s obligation to exhibit, in the location where exchange operations are carried out with customers, for each currency, during the hours in which operations are carried out, the retail exchange rates offered, net of expenses or commission, for the purchase and sale of banknotes and travelers’ checks in the following currencies: United States dollars, euros, pounds sterling, Swiss francs, and the currencies of bordering countries. It was established as a new measure that the signs must be located in places easily visible by customers and their lettering must be of an appropriate size. They must be posted in all places where exchange operations with banknotes and travelers’ checks are carried out with customers. Banks must abstain from operating with banknotes and travelers’ checks in offices where it isn’t possible to comply with this requirement. Additionally, the retail rates of exchange must be uniform in all branches in the Autonomous City of Buenos Aires.

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Communication "A" 4940. CAMEX - 1 - 641. (May 12, 2009). Measures were established as of May 13, 2009, in relation to access to the exchange market by non-residents and to dollar sale operations. In this regard, it was established that local entities may employ the funds of their General Exchange Position to gain access to the exchange market to cover their needs for foreign currencies for the purchasing and sale of securities on holdings of their own that may be registered in the country’s self-regulating stock exchanges and markets, within specific maximum limits for net purchases or net sales of foreign currencies. Previously it was also permissible to apply those funds to cover the operations of resident and non-resident customers. Communication "A" 4941. SINAP - 1 - 15. (May 15, 2009). The guiding institution established that the Nominative Official Order of Payment (OPON) is to be included in the roster of instruments subject to clearing. The OPON are to be processed through the Electronic Clearing Chambers according to procedures and operational timeframes similar to those applicable to checks, including as pertains to the transmission of the images. Communication "A" 4943. REMON - 1 - 851. (May 15, 2009). The B.C.R.A. decided to carry out, effective as of May 15, 2009, and with the frequency considered appropriate, tenders for options to access short-term market operations offered in pesos at a pre-established rate, under the conditions that are established in this Communication. Communication "A" 4949. CAMEX - 1 - 642. (May 28, 2009). Modifications were introduced in rulings linked to access to the exchange market by non-residents and to dollar sale operations. Communication "A" 4950. CAMEX - 1 - 643. (May 28, 2009). Effective May 29, 2009, prior authorization was established for access to the local exchange market for the purchase of foreign currency by the non-financial private sector, when the funds purchased are allocated to the purchase, on the secondary market, of securities and bonds issued by residents or their representatives, and this allocation is instrumented, in a direct or indirect manner, with a settlement of the purchase of the securities within 20 working days of the date of access to the local exchange market.

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Communication "A" 4951. CAMEX - 1 - 644. (June 5, 2009). The B.C.R.A. ordered that, in the case of export pre-financing operations that are entered and applied within the framework of the Act of Agreement of May 4, 2009, reached by the national government and representatives of the grain exports sector, the financial institutions in charge of handling the local advances and pre-financing may award extensions of the deadlines for the shipment of wheat or other goods covered by Law 21,453 and its modifications referring to exports of farm products. Communication "A" 4952. REMON - 1 - 852. (June 5, 2009). The Central Bank ordered the launching of tenders for options to access short-term market operations offered in pesos at a pre-established rate. Additionally, it issued the conditions for these tenders, a standout among them being that banks’ participation shall be subject to their demonstrating, during the period of exercising the option to participate, an increase in their peso-denominated loans to the private sector, concurrently with drops in their peso deposits. Communication "B" 9566. (June 18, 2009). It was announced that on June 8, 2009, the Government Bulletin published, effective as of that date, Resolution 280/09 of the Economy and Public Finances Ministry establishing the exclusion from application of the need to set up the 30% deposit instituted by Decree 616/05, of all forms of entry into the country of funds ordered by Multilateral and Bilateral Credit Organizations and Official Credit Agencies, directly or though the agencies linked to them, subject to these funds being linked to operations carried out in furtherance of their purpose. Communication "A" 4954. RUNOR - 1 - 884. (June 19, 2009). Tourism operations were added to the list of operations covered by the data base foreseen in the Regulations on the Prevention of money laundering and of other illegal activities. Communication "B" 9567 (June 19, 2009). (Nov. 13, 2009). The rules on "Prevention of the Financing of Terrorism" were updated in the light of Resolution 25/09 of the Financial Information Unit - in Spanish, UIF- concerning the guidelines and instructions that must be complied with and implemented by the subjects coming under the obligation to report activities susceptible to suspicion of financing terrorism.

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Communication "A" 4957. LISOL - 1 - 502 and OPASI - 2 - 401. (June 26, 2009). Modifications were introduced in the rules on "Term deposits and investments", "Regulations on the bank checking account" and "Guarantees" as refers to reports on the loss of assets. In the case of term deposits, the rules were divided according to whether they are transferable or non-transferable, establishing, for the latter, that if the financial entity has not been informed of their assignment by the owner, they must be paid to the latter, after receiving authentic proof of the corresponding report before the pertinent authority, in accordance with the stipulations of the rules in force in the jurisdiction in question. The rules on the "Bank Checking Account" were likewise modified in the sense of ordering that the owner or, when applicable, the holder dispossessed of the lost, stolen or falsified check or similar instrument must, within 48 working hours of submitting the ratification of the report by means of the respective notice, comply with the obligation to add the verifiable accreditation of the corresponding report before the pertinent authority, in accordance with the stipulations of the rules in force in the jurisdiction in question. Communication "A" 4958. REMON - 1 - 853. (June 26, 2009). Effective as of June 26, 2009, the B.C.R.A. modified the procedure for the tenders for options to access short-term market operations in pesos at a pre-established rate. In this regard, it established that the short-term market operations offered that may in due course be accepted under this procedure must be open to cancellation beforehand, it being possible to institute them anew within a maximum timeframe of 365 days, provided that, at the moment of again requesting the short-term market operations offered that may have been cancelled beforehand, the same conditions are complied with that were necessary for awarding the original short-term market operation offered. The requirement was likewise eliminated that, to gain access to this procedure, a drop in peso deposits must take place (only an increase in loans in the national currency will be demanded), the increase in the latter operations being precisely the maximum amount of the short-term market operation that the bank may request. Communiqué 49,513. (July 7, 2009). The Central Bank announced changes in the operation of short-term market operations, offered and taken, that the Central Bank offers to financial entities. Basically, there was a 50-point reduction in the rates on 1-day and 7-day short-term market operations offered and taken, and the terms of 14-, 21- and 28-day operations, established the previous year in transitory fashion, were eliminated.

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Communication "A" 4963. CAMEX - 1 - 647. (July 8, 2009). Communication "A" 4951 was modified, establishing that in the cases of entry of foreign funds under the heading of the advance payment and pre-financing of local and foreign exports, which enter through the local exchange market and are in fact applied to the purposes established within the framework of the Agreements signed by the national government with grain, oilseed and edible oil exporters on April 5 and June 16, 2009, the financial entities in charge of the handling of the advances and pre-financing may award extensions of the deadlines for shipment, provided two conditions are complied with: that they correspond to shipments of wheat, corn or other goods encompassed in Law 21,453 and its modifications, which form part of compliance with the above-mentioned agreements; and that the term between the date of agreement on the sale of the foreign currency on the exchange market and the shipment date, including the term established in the exchange rules for the type of product exported and its extension, does not exceed 365 calendar days. Communication "A" 4965. CAMEX - 1 - 648. (July 14, 2009). The B.C.R.A. modified, effective Aug. 3, 2009, the information that must be provided for transfers to and from abroad. Communication "C" 54,015. (Aug. 6, 2009). It was made clear that access to the exchange market for the handling of the servicing of interest and capital on bonds and other debt instruments issued abroad is, in all cases, independent of the place of residence of their holder. Communication "A" 4970. CAMEX - 1 - 649. (Aug. 14, 2009). A reordering was instituted in Communication "A" 4420 referring to the financing of investment projects in order to increase export capacity, including modifications in the area of minimum financing periods and for the submission of the operation to the B.C.R.A., to be applicable to the new operations submitted as of August 18, 2009. Communication "A" 4971. OPASI - 2 - 402 and RUNOR - 1 - 887. (Aug. 18, 2009). The provisions on Regulation of the Bank Checking Account were modified as regards check deposits for the handling of their collection, and the "Registry of Instruments Reported as Lost, Stolen or Falsified" was created. The Communication established, effective Nov.1, 2009, that, in the summary that must be sent to the holder of the checking account, the operations carried out on own account and on account of others must be identified by a specific code.

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In the cases of checks made out to bearer or in favor of a specific person, which their beneficiary turns over to a third party to place for collection through their presentation at the teller’s window or through their deposit in an account for their electronic clearing, it was ordered that the back of the checks must record the signature and name of the mandators or principals and their personal ID number in the case of individuals or the CUIT or CDI number in the case of companies or other entities. Additionally, one of the following phrases is to be inserted: "under procurement" "value for collection" or "placed for collection, " as an expression of the effects of the endorsement. At the same time, it was pointed out that in the case of escrow accounts, banks must monitor that those accounts aren’t used for other ends, such as the placing of checks for collection. It was also established that when deposit slips are employed, the clearing period for the values deposited must be indicated. Additionally, it was announced that, effective Nov. 1, 2009, the B.C.R.A. will run the "Registry of instruments reported as lost, stolen or falsified", which will include information on the checks, on the check formulas that have or have not been delivered to customers, and, when applicable, on nominative registration certificates. The Central Bank shall not be held in any way liable for the potential inconsistencies, falsehoods or mistakes in the data included in this base, since that information is supplied by the banks. Communication "A" 4972. LISOL - 1 - 504 and OPRAC - 1 - 629. (Aug. 20, 2009). Press release 49,543. (Aug. 21, 2009). The rules were modified on the classification of debtors; credit graduation; fractionating of credit risk; minimum capital; non-compliance with minimum capital and technical ratios; encumbrance of assets in guarantee and credit handling. The main modifications are:

Regarding credit graduation, the amount of the option on treatment of the portfolio related to consumption was raised to 750,000 pesos from 500,000 pesos.

Regarding classification of debtors and credit handling:

The periodicity demand for review of half-yearly classification of economic groups was raised to 2 million pesos from 1 million pesos.

Additional assistance up to 10% of the financing limit awarded to the customer is not considered refinancing.

The refinancing of corporate customers that is achieved through an Non-judicial Preventive Agreement shall receive the same treatment as a meeting of creditors.

For customers whose wages are deposited in a Wage Plan account, the deposit is accepted as proof of income. With this, the customers in question

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may be removed from the calculation by statistical methods (Credit Scoring and Screening).

The demand was removed for the presentation of the sworn statement on links to the bank, or lack of them, by customers who have been served with lawsuits, approved bankruptcy proceedings, or request for Non-judicial Preventive Agreement. It must be replaced by a Lawyers’ Report.

A modification was introduced in the limit on assistance to linked companies for

financial entities and companies providing complementary services. A modification was introduced in the percentages of capital amortization on debts of

the commercial and consumption portfolios with a periodicity higher than every two months or irregular, as of the date that the B.C.R.A. determines should be demandable.

A modification was introduced in the Technical graduation Ratios for the consumption portfolio as of the installment/income ratio (maximum 30%) and the financial system (maximum 50%).

Communication "A" 4973. REMON - 1 - 854. (Aug. 21, 2009). The Central Bank’s participation was announced, as of Aug. 20, 2009, in the interest rates futures market in pesos through the Drafts Function. It was established that the maximum exposed position that a bank may adopt with the Central Bank is 100% of the Computable Pecuniary Liability, not to exceed a notional 600 million pesos. It was specified that that the operations are carried out with guarantees established by the Central Bank, the participants also being able to opt to negotiate among themselves with the guarantees that they determine or applying the guarantees that are determined by the Electronic Over the Counter Market’s (in Spanish, MAE) calculation engine. The maturity of the operations is monthly and the term is of up to one year, while the value of each contract is of 100,000 pesos. Communication "C" 54,134. (Aug. 24, 2009). The guiding entity clarified that the enabling regulations of the special credit lines to the productive sector that are referred to in art. 29 of Law 26,476 must be issued by the national presidency. Additionally, it was specified that the non-application of the deposits referred to in Communication "A" 4916 to those loans to the productive sector has no other consequence than the increase in the minimum cash demand by an amount equivalent to the balance of the shortfall in application that is recorded.

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In addition, in relation to the disappropriation of deposits received by virtue of the declaration of unreported assets for the specific purposes foreseen in c), d) and e) of art. 27 of Law 26,476, the B.C.R.A. issued a reminder that by means of Communication "A" 4916 (point 5.6 of Section 5 of the rules on "Term deposits and investments") the advance cancellation of those deposits has been instituted, and that for the purpose of carrying out the above-mentioned disappropriation the procedure foreseen by AFIP in its General Resolution 2650/09 must be followed. Communication "A" 4974. CAMEX - 1 - 650 (Aug. 28, 2009). Effective Aug. 31, 2009, the B.C.R.A. exempted from making the 30% deposit stipulated by Decree 616/05 for the inflow of foreign funds, those that are employed by banks as credit lines from abroad that are contracted and cancelled with an average life of not less than 2 years including in their calculation the payment of capital and interest, the obligation remaining to apply them, within 5 days of registering their entry through the exchange market, to the awarding of local loans to the non-financial private sector. Communication "A" 4975. LISOL - 1 - 505 and OPRAC - 1 - 630. (Aug. 28, 2009). Communication "A" 4972 was modified as regards, mainly, the Rules on classification of debtors and credit handling. Among the principal provisions, the following stand out:

The system for the determination of credit margins on the basis of the installment/income ratio of debtors of the consumption portfolio in the credit graduation technical ratio was eliminated as of Aug. 20, 2009.

The increase in the option on treatment of the portfolio related to consumption to 750,000 pesos, from 500,000 pesos, was added to the Rule on classification of debtors.

The application of the new minimum debt cancellation percentages required for recategorization in the commercial and consumption portfolios was postponed until January 2010.

Communication "A" 4976. CONAU - 1 - 895, LISOL - 1 - 506 and OPRAC - 1 - 631. (Aug. 31, 2009). The accounting and normative treatment was established that is to be given to the national government’s public debt instruments that are purchased by financial entities as a consequence of the recent swap ordered by the joint Resolution of the Treasury and Finance Secretariats, respectively 197/09 and 52/09. The new instruments must be recorded at accounting value on the day before the date of subscription. After that date and up to the entry of the month in question into the Monthly

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Informative Accounting System on Trial Balance, the institutions must opt for the definitive accounting of these instrument on the basis of two possible criteria. The institutions that wish to participate in the swap may replace the instruments that are under B.C.R.A. guarantee. Communication "B" 9631. RUNOR - 1 - 487. (Sept. 3, 2009). The B.C.R.A. extended the deadline that expired on Aug. 15, 2009, to comply with Communication "A" 4778, which had ordered the implementation of new security measures at windows for dealing with customers. The regulation in question had established that offices in operation had to comply within 180 days of its publication, giving priority to those where express-style robberies had taken place in the last 3 years, having a final deadline of a further 12 months (Aug. 15, 2009) to comply in all offices. The new deadlines established by the new Circular Letter depend on the number of offices each bank has. It was also established that non-compliance with the deadlines will be reflected in the CAMELBIG rating, in addition to the corresponding summary-based penalties. Communication "C" 54,352. (Sept. 23, 2009). Rules were issued, starting Nov. 2, 2009, in the area of registration of exchange operations due to the collection of exports and payment of imports. Communication "A" 4981. RUNOR - 1 - 889. (Oct. 1, 2009). The ordered text on the rules on "Representatives of foreign financial entities without authorization to operate in the country" was replaced. Communication "A" 4982. OPASI - 2 - 403. (Oct. 1, 2009). An extension was established from Aug. 24, 2009, through July 2, 2010, of the issuing of fines and exclusions with regard to instruments rejected for reasons of lack of sufficient available funds in the accept, formal defects or rejection of registration that have been presented for collection at the teller’s window or deposited in account for their electronic clearing within the above-mentioned period of extension and that have been issued prior to Aug. 24, 2009, and against accounts whose owners reside in the districts of the province of Buenos Aires that are listed in this Circular Letter.

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Communication "A" 4990. REMON - 1 - 855. (Oct. 14, 2009). The B.C.R.A. modified Communication "A" 4925 establishing that banks’ participation implies accepting that the final clearing of the operations entered into with the Central Bank through the "Draft Function" is carried out against the simple arithmetical average of the last five available figures of the Badlar Private Banks rate published on the date of maturity of each contract, or in accordance with the simple arithmetical average of the Badlar Private Banks rate in pesos corresponding to the period ranging between two working days before the beginning of the month of maturity and two working days before the date of final settlement of the contracts, in accordance with the provisions on the subject that are issued by Mercado Abierto Electrónico S.A.

Communication "A" 4992. REMON - 1 - 856 and OPRAC - 1 - 632. (Oct. 16, 2009). The B.C.R.A. announced that the IDB awarded the province of Mendoza a loan to implement that province’s Credit Program for Productive Development and Competitiveness, which has the aim of awarding credit to micro-, small- and medium-sized companies that launch or carry out, in the territory of that province, primary production or industrial, commercial or service activities (save of a financial nature). The total amount allocated to the Subprogram Credits is of up to US$ 17 million, respecting the percentages of the funding contributions of the IDB Loan and the Local Counterpart. The resources contributed by the government of the province of Mendoza are regarded as the Local Counterpart. The Subprogram’s resources may be used to finance investment, working capital and technical assistance projects. The maximum amount of each subloan with Subprogram resources may not exceed US$ 500,000. Financial entities rated 1 to 3 on the CAMELBIG scale are eligible for participation in the Subprogram, as well as public banks whose operations are guaranteed by the national and provincial governments and the government of the city of Buenos Aires. The calling process is through a system of auctions, by which the Executing Authority allocates quotas to the eligible banks, through the B.C.R.A., giving access to the Subprogram’s resources for a given period, in proportion to the borrowing rates offered.

Communication "A" 4995. REMON - 1 - 857. (Oct. 20, 2009). The Central Bank issued modifications with regard to the notional capital that must be disbursed as a minimum by financial entities that wish to participate in the market for swaps at a fixed interest rate per variable. The formulas were also defined for the calculation of the average term of the financing and of the portfolio.

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Lastly, it was specified that the verification of compliance with the disbursement commitment undertaken as of the date of allocation of the swap will be performed as of the last day of the calendar quarter that follows the quarter corresponding to the allocation of the swap. Communiqué 49,581. (Oct. 21, 2009). There was a reduction of 25 basis points in the interest rates on the short-term market operations, offered and taken, that the Central Bank offers to financial entities.

Communication "A" 4998. RUNOR - 1 - 894. (Oct. 29, 2009). The guiding entity proceeded to add the numbers of the branch and of the account to which consulted instrument belongs, as data in the answers to the queries made to the Registry of Instruments Reported as Lost, Stolen or Falsified. Communication "A" 5000. OPASI - 2 - 404. (Oct. 29, 2009). A postponement was ordered of the entry into operation of the "Registry of Instruments Reported as Lost, Stolen or Falsified" and of the addition of the data that must be recorded on the back of checks when the latter are turned over by their beneficiary to a third party to handle the collection, to Dec. 1, 2009, and Jan. 4, 2010, respectively. Communication "A" 5004. RUNOR - 1 - 897. (Nov. 13, 2009). The guiding entity added fund remitting companies and stockbrokers to the list of customers for whom special precautions must be adopted in the field of Prevention of money laundering and of the financing of terrorism.

Communication "A" 5006. CREFI - 2 - 63 and RUNOR - 1 – 899. (Nov. 19, 2009). Modifications were instituted with regard to the information to be sent to the guiding entity and the precautions that must be adopted when performing transfers of share packets of financial and exchange entities. Additional requirements were also established for the setting up of new banking institutions to verify they are not "shell banks".

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Communication "A" 5007. OPASI - 2 - 405 and LISOL - 1 - 509. (Nov. 20, 2009). Regulations were established for the savings account that must be employed for the payment of the Universal Child Allowance for Social Protection established by Decree 1602/09. Communication "B" 9687. (Nov. 23, 2009). The B.C.R.A. established that compliance with the census statement in the National Farming Census is proven by presentation of the "Certificate of Census Compliance", which must be demanded by financial entities as a prior requirement to any procedure, as of Nov. 1, 2009, and for a period of one year. The lack of this certificate precludes the performance of the procedure in question. Communication "A" 5012. CAMEX - 1 - 653. (Dec. 1, 2009). Access was allowed to the local exchange market for the payment of the service on capital and interest to governmental export credit agencies, for operations referring to the undertakings completed or underway and to the new ones that may be broached, for disbursements applied to the payment of the importation of services and/or to inflows through the local exchange market, received or entered by third parties to the local debtor who enters the exchange market for the payment of the debt with abroad, provided all the conditions established in this Circular Letter are met. Communication "B" 9699. (Dec. 3, 2009). It was specified that for the treatment of the owners of the savings accounts into which the Universal Child Allowance is paid, the provisions apply that are included in point 1.1.5. of Section1 of the Rules on Prevention of money laundering and of other illegal activities, which indicate that for the purpose of verifying compliance with the "know your customer" principle in accounts linked to the payment of social welfare plans, the information supplied by the pertinent national, provincial or municipal organizations is considered sufficient, insofar as the amount of the credits does not exceed 30,000 pesos a month. Communication "A" 5015. OPRAC - 1 - 635 and LISOL - 1 - 511. (Dec. 10, 2009). The rules were modified on the Financing of the non-financial public sector regarding the financing and underwriting of debt securities issued by Financial Trusts, Public Trusts and Fiduciary Funds.

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Communiqué No. 49,611. (Dec. 17, 2009). As of Dec. 17, 2009, the B.C.R.A. implemented the "Registry of Instruments Reported as Lost, Stolen or Falsified". This new tool makes it possible for people to know, every time they receive a check, whether it has been reported as lost, stolen or falsified. To this end, they must enter the Central Bank’s web page (www.bcra.gov.ar) and, in the "Central de Información/Cheques Denunciados" option, choose the name of the bank from a list that they can open, and write in the check’s number. Each bank informs the Registry of the reports received of the loss or theft of checks and checkbooks, whether they have been delivered to the customer or not. The mechanism for receiving the information at the B.C.R.A. and the updating of the base operate on a daily frequency. The data are sent by the financial entities according to the established procedure. Each bank - which is responsible for the data included in the Registry - provides the data of the account to which the reported check belongs, the person who made the report (owner, third party or bank in which the account is located) and the numbers of the checks. Communication "A" 5020. CAMEX - 1 - 655. (Dec. 18, 2009). Effective Dec. 12, 2009, the guiding institution excepted from specific limits established in exchange regulations those exchange operations carried out by stockbrokers residing in the country, when the funds ensuing from such operations are applied, within the following 24 working hours of the date of the exchange operation, to cancel purchases of securities issued by non-residents that are quoted in the country and abroad, in operations agreed on not more than 72 working hours previously, and to be settled in a foreign currency within the country. Communication "B" 9712. (Dec. 21, 2009). The announcement was made of the special working hours of the Electronic Clearing Chambers (in Spanish, CEC) and Electronic Means of Payment (MEP) by virtue of the Christmas and New Year’s festivities. Communication "A" 5022. OPASI - 2 - 406 and RUNOR - 1 - 902. (Dec. 22, 2009). The Central Bank announced that banks must identify the operations carried out on their own account or on account of third parties, with regard to deposits of checks for amounts above 1,000 pesos identified by the corresponding endorsement, in accordance with the sole procedure that each bank chooses to implement, such as the identification of those movements in the same account used by the mandatories for depositing their own checks or by opening an additional account for providing the service of handling the collection of instruments, or other alternative procedures that they decide on to this end. Compliance with the above requirements is to be demanded as of April 1, 2010.

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Additionally, the Circular Letter issued a reminder that April 1, 2010, is the date for the entry into force of the incorporation of the data to be provided on the back of the securities that are turned over by their beneficiary to a third party for the handling of the collection, the obligation falling, without distinction, to the mandator or principal and the mandatory or agent. Consequently, banks must provide the necessary means to make the above measures known to their customers, as much in advance as possible of the above-mentioned date of entry into force. Communication "A" 5024. LISOL - 1 - 512 and CONAU - 1 - 907. (Dec. 22, 2009). The System of Special Investment Accounts (which was to end on Dec. 31, 2009) was extended for one year, a minimum of 25% having to be disaffected per quarter during the year and having to be fully cancelled by Dec. 31, 2010. Therefore, no new debt instruments may be brought into this system as of Jan. 1, 2010. This applies to national public securities acquired by means of primary underwriting as of June 1, 2007, denominated in pesos, with a maturity equal to or higher than 5 years, at a fixed rate without adjustment according to the Reference Stabilization Coefficient (in Spanish, CER). Communication "A" 5025. OPASI - 2 - 407. (Dec. 22, 2009). The B.C.R.A. extended, until Dec. 31, 2011, the limitations in force regarding the number of endorsements on ordinary checks (up to one endorsement) and on deferred-payment checks (up to two endorsements) envisaged in the rules on the Regulation of the bank checking account. Communication "B" 9717. (Dec. 24, 2009). In relation to the participation of financial institutions in the verification of compliance with the 2008 National Farming Census, the B.C.R.A. pointed out that the submission of the "Certificate of Census Compliance" must be demanded by the financial entities as a prior requirement to proceeding with a series of operations that are listed in the Circular Letter.

Communication "B" 9719. (Dec. 28, 2009). It was announced that the National Statistics and Census Institute issued Resolution 994/09 which approved farmers’ spontaneous presentation for belated participation in the census, according to which, once complied with, the institutions taking part will issue the "Certificate of Request for Belated Participation in the Census" which will enable the farmer, for a period of 120 days as of the Dec. 18, 2009, to carry out the procedures mentioned in article 18 of Decree 1764/07.

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Additionally, the above-mentioned resolution specified that the presentation in question does not free the farmer who must participate in the census from the potential application of the penalties foreseen in article 17 of the Decree mentioned. Communication "A" 5027. CONAU - 1 - 908. (Dec. 28, 2009). The B.C.R.A. introduced modifications in the section on Debtors of the Financial System of the Monthly Accounting Information System, which are to be in force for the information corresponding to January 2010 and for that which corresponds to previous periods and that is provided as of Feb. 22, 2010.

memoria anual aba 2009 inglés

Documents

bank of tokyo

bank of america

uruguay banco

banco latinoamericano

bank of new york wachovia

noriega banco santander

maelcio mauricio soares

gmez lists annual report