Translation from the original prepared in Spanish for publication in Argentina

Condensed Interim Consolidated Financial Statements as of September 30, 2018 Jointly with the Independent Auditors’ and Supervisory Audit Committee’s Reports on interim financial statements

Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2018

CONTENTS Page Limited Review Report on Condensed Interim Consolidated Financial Statements Independent auditors’ report on review of condensed interim separate financial statements Cover page ...... 1 Condensed interim consolidated statements of financial position ...... 2 Condensed interim consolidated statements of income ...... 4 Condensed interim consolidated statements of income - Earnings per share...... 5 Condensed interim consolidated statements of other comprehensive income...... 6 Condensed interim consolidated statements of changes in shareholders’ equity ...... 7 Condensed interim consolidated statements of cash flows ...... 9 Notes to the condensed interim consolidated financial statements ...... 11 Note 1 – General information Note 2 – Basis for the preparation of the financial statements Note 3 – Functional and presentation currency Note 4 – Accounting estimates Note 5 – Significant accounting policies Note 6 – IFRS issued but not yet in force Note 7 – Cash and bank deposits Note 8 – Debt securities measured at fair value with changes through profit or loss Note 9 – Derivative instruments Note 10 – Repo transactions Note 11 – Other financial assets Note 12– Loans and other financing facilities Note 13 – Other debt securities Note 14 – Financial assets granted as collateral Note 15– Income tax Note 16– Investments in equity instruments Note 17– investment in subsidiaries, associates and joint ventures Note 18– Property, plant and equipment Note 19 – Intangible assets Note 20 – Other non financial assets Note 21– Non-current assets held for sale Note 22 - Deposits Note 23 – Other financial liabilities Note 24– Financing facilities received from the BCRA and other financial institutions

Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2018

CONTENTS Note 25– Corporate bonds issued Note 26 - Allowances and provisions Note 27 – Other non financial liabilities Note 28- Share capital Note 29 – Interest income Note 30 – Interest expense Note 31 – Fee income Note 32 – Fee expenses Note 33 – Net gain/loss from financial instruments measured at fair value with changes through profit or loss Note 34– Gold and foreign currency quoted price difference Note 35 – Other operating income Note 36 – Employee benefits Note 37 - Administrative expenses Note 38 – Other operating expenses Note 39– Fair value of financial instruments Note 40 – Transfer of financial assets Note 41 – Segment reporting Note 42 - Subsidiaries Note 43– Related parties Note 44– Distribution of earnings and restrictions Note 45– Restricted assets Note 46– Deposit Guarantee Insurance System Note 47– Minimum cash and capital requirements Note 48– Trust activities Note 49– Custodian agent of mutual funds Note 50– Sanctions imposed and proceedings filed by the BCRA Note 51– BCRA accounting framework applied for the first time Note 52– Financial agent of the Province of Río Negro Note 53– CNV requirements to act as an Over-the-counter Broker Note 54– Transactions with directors

Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2018

CONTENTS

Note 55– CNV requirement– Custody of the Group’s Documentation Note 56– Compliance with provisions set forth by Law No. 25738 Note 57 – Publication of the financial statements Note 58– Subsequent events Exhibit B - Loans and other financing facilities classified by status and guarantees received ...... 108 Exhibit C - Loans and other financing facilities concentration...... 111 Exhibit D - Loans and other financing facilities broken down by term...... 112 Exhibit F - Changes in property, plant and equipment...... 114 Exhibit F - Revaluation table of property, plant and equipment ...... 116 Exhibit F - Changes in investment property ...... 117 Exhibit G - Changes in intangible assets ...... 118 Exhibit H - Deposits concentration ...... 119 Exhibit I - Financial liabilities broken down by terms remaining to maturity ...... 120 Exhibit J - Changes in allowances and provisions ...... 123 Exhibit L - Balances in foreign currency ...... 124 Exhibit R– Loss impairment adjustment – Allowances for loan losses ...... 127 Condensed Interim Separate Financial Statements ...... 129 Reporting Summary Supervisory Audit Committee’s Review on Condensed Interim Financial Statements

Translation from the original prepared in Spanish for publication in Argentina

LIMITED REVIEW REPORT ON CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

To the President and Directors of Banco Patagonia S.A. Registered office: Avenida de Mayo 701, Floor 24 – City of Buenos Aires – Argentina Taxpayer Identification No. [C.U.I.T.] No. 30 -50000661 -3

Report on interim financial statements

We have reviewed the accompanying consolidated interim financial statements of Banco Patagonia S.A.(the “Bank”) and its subsidiaries, which include the condensed consolidated statement of financial position as of September 30, 2018, the condensed consolidated statements of income, other comprehensive income, changes in shareholders’ equity and cash flows for the nine-month period then ended, and explanatory notes and exhibits.

The balances and other information for fiscal year 2017 and its interim periods are an integral part of the referred financial statements and, therefore, shall be considered in the light of these financial statements.

Board of Directors’ and Management responsibility for the financial statements

The Board of Directors and Management of the Bank are responsible for the preparation and fair presentation of the accompanying financial statements in accordance with the accounting standards established by the Argentine Central Bank (“BCRA”), which, as described in note 2 to the accompanying financial statements, are based on the International Financial Reporting Standards ("IFRS") and, particularly, on International Accounting Standard 34 "Interim Financial Reporting" (“IAS 34”), as issued by the International Accounting Standards Board ("IASB"), and adopted by the Argentine Federation of Professional Councils of Economic Sciences (“FACPCE”), subject to the temporary exception of section 5.5.“Impairment of Value” of IFRS 9 “Financial Instruments”, which was excluded by the BCRA from the accounting standards applicable to financial institutions. In addition, since Communication “A” 3921 issued by the BCRA is in force, the Bank has not applied International Accounting Standard 29 (IAS 29) “Financial Reporting in Hyperinflationary Economies” for the purposes of preparing the accompanying financial statements. The Bank's Board of Directors and Management are also responsible for the internal control deemed necessary to enable the preparation of interim financial information free from material misstatements, whether due to fraud or error.

Scope of the review

Our responsibility is to issue a conclusion on these condensed interim consolidated financial statements based on our review. We conducted our review in accordance with the standards set forth by Technical Resolution No. 37 of the FACPCE and the “Minimum Standards applicable to External Audits” set forth by the BCRA for the review of interim financial statements. In accordance with such standards, a review is limited primarily to the performance of analytical and other review procedures applied to financial data included in the interim financial statements and inquiries of personnel responsible for the preparation thereof. A review is substantially less in scope than an audit conducted in accordance with auditing standards in force, and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion on the accompanying condensed interim consolidated financial statements.

Translation from the original prepared in Spanish for publication in Argentina

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim consolidated financial statements of Banco Patagonia S.A. have not been prepared, in all material respects, in accordance with the BCRA accounting framework, as described in note 2 to the consolidated financial statements.

Emphasis of matter

Without modifying our conclusion, we draw users’ attention to the following information disclosed in the accompanying condensed interim consolidated financial statements: a) as explained in Note 2 to the accompanying financial statements , the financial statements have been prepared by the Bank's Board of Directors and Management in accordance with the accounting standards established by the BCRA, which differ from IFRS in relation to the application of section 5.5. “Impairment of Value” of IFRS 9 “Financial Instruments”, which was temporarily excluded by the BCRA from the accounting framework applicable to financial institutions; b) As explained in Note 2 to the accompanying financial statements, since Communication “A” 3921 issued by the BCRA is in force, the Bank has not applied International Accounting Standard 29 (IAS 29) “Financial Reporting in Hyperinflationary Economies” for the purposes of preparing the accompanying financial statements.

To the date of this report, the Bank is analyzing the effects on the accompanying financial statements of the application of the standards mentioned in paragraphs a) and b) above, and it estimates that such effects might be significant. These situations do not modify the conclusion above but should be considered by those users that apply IFRS to the interpretation of the accompanying financial statements, and c) as explained in note 5 to the accompanying financial statements, they are issued for an interim period of the first fiscal year in which the Bank applies the new accounting framework established by the BCRA. The effects of the changes derived from the application of this new accounting framework are presented in Note 51 to the accompanying financial statements. The items and amounts contained in the reconciliation included in such note are subject to the changes that may occur as a consequence of the variations in the IFRS to be eventually applied, and can only be considered final when the annual financial statements for this fiscal year are prepared. This situation does not modify our conclusion stated in the paragraph above.

Report on other legal and regulatory requirements

In compliance with legal provisions in force, we report that: a. The accompanying condensed interim consolidated financial statements have been transcribed into the Inventory Book, and arise from the Bank’s accounting records, which, in their formal aspects, are kept pursuant to the legal provisions in force; b. As of September 30, 2018, as disclosed in note 53 to the accompanying condensed interim consolidated financial statements, the Bank’s equity and its eligible assets exceed the minimum amounts required by the regulations of the Argentine Securities and Exchange Commission (CNV); c. we have read the reporting summary (sections “Financial position”, “income/loss”, “Cash flows”, “Statistical data”, and “Ratios) and the additional information required by section 12 of chapter III, title IV of CNV regulations, based on which, as far as it relates to our area of responsibility, we have no observations; and

Translation from the original prepared in Spanish for publication in Argentina d. as of September 30, 2018, the accrued liability for retirement and pension contributions payable to the Argentine Pension Fund System arising from the accounting records of the Bank amounts to $78,480,214 no amounts being due as of that date.

City of Buenos Aires, November 22, 2018.

KPMG Reg. de Asoc. Prof. CPCECABA Tº 2 Fº 6

Mauricio G. Eidelstein Partner Public Accountant (UBA) CPCECABA Tº CXX Fº 228

Translation from the original prepared in Spanish for publication in Argentina

INDEPENDENT AUDITORS’ REPORT ON REVIEW OF CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS

To the President and Directors of Banco Patagonia S.A. Registered office: Av. de Mayo 701, Floor 24 City of Buenos Aires, Argentina Taxpayer Identification Number: No. 30 -50000661 -3

Report on interim financial statements

We have reviewed the accompanying condensed interim separate financial statements of Banco Patagonia S.A.(the “Bank”), which include the condensed statement of financial position as of September 30, 2018, the condensed statements of income, other comprehensive income, changes in shareholders’ equity and cash flows for the nine-month period then ended, and explanatory notes and exhibits.

The balances and other information for fiscal year 2017 and its interim periods are an integral part of the referred financial statements and, therefore, shall be considered in the light of these financial statements.

Board of Directors’ and Management responsibility for the financial statements

The Board of Directors and Management of the Bank are responsible for the preparation and fair presentation of the accompanying financial statements in accordance with the accounting standards established by the Argentine Central Bank (“BCRA”), which, as described in note 2 to the accompanying financial statements, are based on the International Financial Reporting Standards ("IFRS") and, particularly, on International Accounting Standard 34 "Interim Financial Reporting" (“IAS 34”), as issued by the International Accounting Standards Board ("IASB"), and adopted by the Argentine Federation of Professional Councils of Economic Sciences (“FACPCE”), subject to the temporary exception of section 5.5.“Impairment of Value” of IFRS 9 “Financial Instruments”, which was excluded by the BCRA from the accounting standards applicable to financial institutions. In addition, since Communication “A” 3921 issued by the BCRA is in force, the Bank has not applied International Accounting Standard 29 (IAS 29) “Financial Reporting in Hyperinflationary Economies” for the purposes of preparing the accompanying financial statements. The Board of Directors and Management are also responsible for such internal control as they determine is necessary to enable the preparation of the interim financial statements that are free from material misstatement whether due to error or fraud.

Scope of the review

Our responsibility is to issue a conclusion on these condensed interim separate financial statements based on our review. We conducted our review in accordance with the standards set forth by Technical Resolution No. 37 of the FACPCE and the “Minimum Standards applicable to External Audits” set forth by the BCRA for the review of interim financial statements. In accordance with such standards, a review is limited primarily to the performance of analytical and other review procedures applied to financial data included in the interim financial statements and inquiries of personnel responsible for the preparation thereof. A review is substantially less in scope than an audit conducted in accordance with auditing standards in force, and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion on the accompanying condensed interim separate financial statements.

Translation from the original prepared in Spanish for publication in Argentina

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim separate financial statements of Banco Patagonia S.A. have not been prepared, in all material respects, in accordance with the BCRA accounting framework, as described in note 2 to the separate condensed financial statements.

Emphasis of matter

Without modifying our conclusion, we draw users’ attention to the following information disclosed in the accompanying condensed interim separate financial statements: a) as explained in Note 2 to the accompanying financial statements, the financial statements have been prepared by the Bank's Board of Directors and Management in accordance with the accounting standards established by the BCRA, which differ from IFRS in relation to the application of section 5.5. “Impairment of Value” of IFRS 9 “Financial Instruments”, which was temporarily excluded by the BCRA from the accounting framework applicable to financial institutions; b) As explained in Note 2 to the accompanying financial statements, since Communication “A” 3921 issued by the BCRA is in force, the Bank has not applied International Accounting Standard 29 (IAS 29) “Financial Reporting in Hyperinflationary Economies” for the purposes of preparing the accompanying financial statements.

To the date of this report, the Bank is analyzing the effects on the accompanying financial statements of the application of the standards mentioned in paragraphs a) and b) above, and it estimates that such effects might be significant. These situations do not modify the conclusion above but should be considered by those users that apply IFRS to the interpretation of the accompanying financial statements, and c) as explained in note 3 to the accompanying financial statements, they are issued for an interim period of the first fiscal year in which the Bank applies the new accounting framework established by the BCRA. The effects of the changes derived from the application of this new accounting framework are presented in Note 38 to the accompanying financial statements. The items and amounts contained in the reconciliation included in such note are subject to the changes that may occur as a consequence of the variations in the IFRS to be eventually applied, and can only be considered final when the annual financial statements for this fiscal year are prepared. This situation does not modify our conclusion stated in the paragraph above.

Report on other legal and regulatory requirements

In compliance with legal provisions in force, we report that: a. The accompanying condensed interim separate financial statements have been transcribed into the Inventory Book, and arise from the Bank’s accounting records, which, in their formal aspects, are kept pursuant to the legal provisions in force; b. As of September 30, 2018, as disclosed in note 41 to the accompanying condensed interim separate financial statements, the Bank’s equity and its eligible assets exceed the minimum amounts required by the regulations of the Argentine Securities and Exchange Commission (CNV); and

Translation from the original prepared in Spanish for publication in Argentina c. as of September 30, 2018, the accrued liability for retirement and pension contributions payable to the Argentine Pension Fund System arising from the accounting records of the Bank amounts to $ 77,104,862 no amounts being due as of that date.

City of Buenos Aires, November 22, 2018.

KPMG Reg. de Asoc. Prof. CPCECABA Tº 2 Fº 6

Mauricio G. Eidelstein Partner Public Accountant (UBA) CPCECABA Tº CXX Fº 228

Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

Legal address:

Avenida de Mayo 701, Floor 24 – City of Buenos Aires – Argentina

Main business activity: commercial bank Taxpayer identification No. [C.U.I.T.] : 30 - 50000661 - 3

Incorporation date: May 4, 1928

of the articles of incorporation: 09/18/28 Date Registration with the Public Of the latest amendment : 07/13/17 Registry of Commerce of the City of Buenos Aires Stock Corporations Book: 85 Book Number: 13826

Expiry of articles of incorporation: August 29, 2038

Fiscal year No. 95

Beginning date: January 1, 2018 Closing date: December 31, 2018

Capital structure (Note 28)

In Argentine pesos Number and characteristics of shares Subscribed Paid in 719,145,237 registered, common shares, with a nominal value of ARS 1, and entitled to one vote 719,145,237 719,145,237 each Information required by the BCRA (Central Bank of Argentina)

Name of the undersigned auditor: Mauricio G. Eidelstein

Professional firm: KPMG

Report for the nine-month period ended September 30, 8 – (quarterly closing – Unqualified conclusion) 2018

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/2018 with our report dated 11/22/2018

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Certified Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 1 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS STATEMENTS OF FINANCIAL POSITION AS OF 9/30/2018, 12/31/17 AND 12/31/16 (Stated in thousands of pesos)

ITEM NOTES 9/30/2018 12/31/2017 12/31/2016

ASSETS Cash and bank deposits 7 30,435,608 14,422,402 10,885,200 Cash on hand 3,744,534 3,075,161 2,489,434 Financial institutions and correspondents 26,691,074 11,347,241 8,395,766 BCRA 24,762,690 10,893,579 7,416,575 Other in Argentina and abroad 1,928,384 453,662 979,191 Debt securities measured at fair value with changes through 8 116,006 438,106 946,733 profit or loss Derivative financial instruments 9 400,648 34,201 10,312 Repo transactions 10 877,206 952,850 453,901 Other financial assets 11 2,284,374 1,725,203 322,415 Loans and other financing facilities (Exhibits B, C and D) 12 77,739,435 61,623,720 44,812,000 Non-financial government sector 303,855 450,660 479,860 Other financial institutions 3,289,682 2,139,251 1,428,530 Nonfinancial private sector and foreign residents 74,145,898 59,033,809 42,903,610 Other debt securities 13 16,045,322 13,184,641 11,515,909 Financial assets granted as collaterals 14 3,127,646 1,736,636 1,114,082 Current income tax assets 15 a) 40,734 188 128 Investments in equity instruments 16 7,273 13,673 3,452 Investments in subsidiaries, associates and joint ventures 17 108,808 188,710 114,490 Property, plant and equipment (Exhibit F) 18 2,529,777 2,595,416 2,624,044 Intangible assets (Exhibit G) 19 67,322 46,774 26,368 Deferred income tax assets 510,132 60,246 76,674 Other non financial assets 20 315,994 263,019 214,165 Non-current assets held for sale 21 136,083 34,383 -

TOTAL ASSETS 134,742,368 97,320,168 73,119,873

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/2018 with our report dated 11/22/2018

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Certified Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 2 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS STATEMENTS OF FINANCIAL POSITION AS OF 9/30/2018, 12/31/17 AND 12/31/16 (Stated in thousands of pesos)

ITEM NOTES 9/30/2018 12/31/2017 12/31/2016

LIABILITIES

Deposits (Exhibits H and I) 22 99,620,501 69,062,590 52,219,646 Nonfinancial government sector 10,157,530 4,666,896 3,297,391 Financial sector 72,732 13,179 6,030 Nonfinancial private sector and foreign residents 89,390,239 64,382,515 48,916,225 Liabilities measured at fair value with changes through profit or 172,481 124,934 - loss Derivative instruments (Exhibit I) 9 1,113,876 14,058 11,606 Repo transactions (Exhibit I) 10 183,611 1,857,080 135,238 Other financial liabilities (Exhibit I) 23 7,243,712 6,020,069 3,226,977 Financing facilities received from the BCRA and other financial 24 5,409,522 2,372,762 2,303,547 institutions (Exhibit I) Corporate bonds issued 25 2,352,174 2,231,014 1,579,937 Current income tax liabilities 15 a) 1,027,791 871,381 843,630 Allowances and provisions (Exhibit J) 26 393,609 214,139 140,635 Deferred income tax liabilities - - 210,074 Other nonfinancial liabilities 27 2,956,642 2,088,859 1,703,917 120,473,91 TOTAL LIABILITIES 84,856,886 62,375,207 9 SHAREHOLDERS’ EQUITY Share capital 28 719,145 719,145 719,145 Non-capitalized contributions 217,191 217,191 217,191 Retained earnings 8,442,024 6,664,419 5,029,804 Unappropriated retained earnings (170,594) 266,820 267,728 Other comprehensive income 1,573,268 1,477,910 1,231,652 Income for the period/ year 3,487,415 3,117,797 3,268,992 Equity attributable to the owners of the parent company 14,268,449 12,463,282 10,734,512 Equity attributable to non controlling interests (*) - - 10,154

TOTAL SHAREHOLDERS’ EQUITY 14,268,449 12,463,282 10,744,666 134,742,36 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 97,320,168 73,119,873 8

(*) As of September 30, 2018 and December 31, 2017, the net equity attributable to non controlling interests amounts to $83,25 and $74,27, respectively.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/2018 with our report dated 11/22/2018

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Certified Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 3 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS STATEMENTS OF INCOME AS OF 9/30/2018 AND 9/30/2017 (Stated in thousands of pesos)

THREE-MONTH PERIOD ENDED NINE-MONTH PERIOD ENDED ITEM NOTES 9/30/2018 9/30/2017 9/30/2018 9/30/2017 Interest income 29 6,154,345 3,157,834 15,082,970 9,691,084 Interest expense 30 (2,951,328) (1,367,149) (6,439,801) (3,589,462) Interest income/loss 3,203,017 1,790,685 8,643,169 6,101,622

Fee income 31 1,063,311 830,582 2,936,951 2,312,250 Fee expenses 32 (144,054) (102,124) (359,750) (266,292) Fee income/loss 919,257 728,458 2,577,201 2,045,958

Net gain on financial instruments measured at fair 33 727,854 554,288 1,060,583 880,273 value through profit or loss Gold and foreign currency quoted price difference 34 215,990 69,668 601,351 343,162 Other operating income 35 488,017 422,821 1,512,655 1,216,659 Charge for Loan Losses (621,811) (168,927) (1,392,199) (468,909) Net operating income 4,932,324 3,396,993 13,002,760 10,118,765

Benefits to personnel 36 (1,142,792) (836,923) (3,362,088) (2,615,238) Administrative expenses 37 (861,442) (601,081) (2,267,878) (1,736,194) Assets depreciation and impairment of value (51,596) (42,591) (147,524) (122,709) Other operating expenses 38 (1,045,117) (672,234) (2,452,973) (1,826,418) Operating income 1,831,377 1,244,164 4,772,297 3,818,206

Gain/loss on associates and joint ventures 73,219 14,213 258,810 100,959 Income before tax relating to continuing 1,904,596 1,258,377 5,031,107 3,919,165 operations

Income tax relating to continuing operations 15 b) (554,821) (405,055) (1,543,692) (1,347,662) Net income from continuing operations 1,349,775 853,322 3,487,415 2,571,503

INCOME FOR THE PERIOD 1,349,775 853,322 3,487,415 2,571,503

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/2018 with our report dated 11/22/2018

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Certified Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 4 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS STATEMENTS OF INCOME AS OF 9/30/2018 AND 9/30/2017 (Stated in thousands of pesos)

THREE-MONTH PERIOD ENDED NINE-MONTH PERIOD ENDED INCOME FOR THE PERIOD 9/30/2018 9/30/2017 9/30/2018 9/30/2017 Income for the period attributable to the owners of the 1,349,775 853,322 3,487,415 2,571,503 parent company

Income for the period attributable to non controlling interests - - - - (*)

(*) As of September 30, 2018 and 2017, income for the nine-month period attributable to non controlling interests amounts to $41.44 and $23.61, respectively.

THREE-MONTH PERIOD ENDED NINE-MONTH PERIOD ENDED EARNINGS PER SHARE 9/30/2018 9/30/2017 9/30/2018 9/30/2017

NUMERATOR Net income attributable to the shareholders of the parent 1,349,775 853,322 3,487,415 2,571,503 company Net income attributable to the shareholders of the parent 1,349,775 853,322 3,487,415 2,571,503 company adjusted to reflect dilution

DENOMINATOR Weighted average outstanding common shares for the year 719,145 719,145 719,145 719,145 Weighted average outstanding common shares for the 719,145 719,145 719,145 719,145 period adjusted to reflect dilution

Earnings per basic share 1.877 1.187 4.849 3.576

Earnings per diluted share 1.877 1.187 4.849 3.576

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/2018 with our report dated 11/22/2018

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Certified Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 5 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS STATEMENTS OF OTHER COMPREHENSIVE INCOME AS OF 9/30/2018 AND 9/30/2017 (Stated in thousands of pesos)

THREE-MONTH PERIOD ENDED NINE-MONTH PERIOD ENDED ITEM 9/30/2018 9/30/2017 9/30/2018 9/30/2017

INCOME FOR THE PERIOD 1,349,775 853,322 3,487,415 2,571,503

Components of other comprehensive income that will be reclassified to income for the period

Exchange differences on translation of financial 91,505 5,669 177,777 11,664 statements Exchange differences for the period 122,007 8,722 237,036 17,945 Income tax (30,502) (3,053) (59,259) (6,281)

Gains or losses on financial instruments carried at (30,206) 3,311 (82,419) 12,572 fair value through OCI (paragraph 4.1.2 of IFRS 9) Gains on financial instruments carried at fair value (40,351) 4,528 (102,961) 12,368 through OCI Income tax 10,145 (1,217) 20,542 204 TOTAL OTHER COMPREHENSIVE INCOME THAT WILL BE RECLASSIFIED TO INCOME FOR THE 61,299 8,980 95,358 24,236 PERIOD TOTAL OTHER COMPREHENSIVE INCOME 61,299 8,980 95,358 24,236

TOTAL OTHER COMPREHENSIVE INCOME 1,411,074 862,302 3,582,773 2,595,739

Attributable to the owners of the parent company 1,411,074 862,302 3,582,773 2,595,739

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/2018 with our report dated 11/22/2018

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Certified Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 6 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

CONDENSED INTERIM CONSOLIDATED STATEMENTS STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY AS OF 9/30/2018 (Stated in thousands of pesos)

Non - Capital capitalized Other comprehensive income Retained earnings stock (1) contributions Accumulated Total equity Total Unappropriated Exchange Revaluation gains/losses attributable to shareholders’ Changes retained differences on of property, from financial controlling equity as of Additional earnings Outstanding translation of plant and instruments at Legal Other interests 9/30/2018 paid-in capital financial equipment fair value with statements (4) changes through OCI Balances at beginning of 719,145 217,191 27,031 1,411,184 39,695 2,541,788 4,122,631 3,384,617 12,463,282 12,463,282 the year

Distribution of unappropriated retained earnings as approved by the Annual Shareholders’ Meeting held on 4/25/2018 (2) - Legal reserve - - - - - 711,042 - (711,042) - - - Optional reserve – Future distribution of ------1,066,563 (1,066,563) - - earnings - Cash dividends (3) ------(1,777,606) (1,777,606) (1,777,606)

Income for the period ------3,487,415 3,487,415 3,487,415

Other comprehensive income for the period - - 177,777 - (82,419) - - - 95,358 95,358

Balances at period-end 719,145 217,191 204,808 1,411,184 (42,724) 3,252,830 5,189,194 3,316,821 14,268,449 14,268,449

(1) See Note 28 (2) See Note 44 (3) It relates to $2,4718 per share (4) See Note 51.1.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/2018 with our report dated 11/22/2018

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Certified Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 7 Translation from the original prepared in Spanish for publication in Argentina BANCO PATAGONIA S.A.

CONDENSED INTERIM CONSOLIDATED STATEMENTS STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY AS OF 9/30/2017 (Stated in thousands of pesos) Non - Capital capitalized Other comprehensive income Retained earnings stock (1) contributions Accumulated Total equity Total equity Total Exchange gains/losses Unappropriat Attributable Attributable shareholders Changes differences Revaluation of from financial ed retained to non Additional to controlling ’ equity as of Outstandin on property, plant instruments earnings controlling paid-in Legal Other interests 9/30/2017 g translation and equipment carried at fair interests capital of financial (4) value with statements changes through OCI

Balances at beginning of 719,145 217,191 - 1,231,305 347 1,887,990 3,141,814 3,536,720 10,734,512 10,154 10,744,666 the year Distribution of unappropriated retained earnings as approved by the Annual Shareholders’ Meeting held on 4/26/2017 (2) - Legal reserve - - - - - 653,798 - (653,798) - - - - Optional reserve – Future distribution of ------980,817 (980,817) - - - Earnings - Cash dividends (3) ------(1,634,497) (1,634,497) - (1,634,497)

Income for the period ------2,571,503 2,571,503 - 2,571,503

Other comprehensive income for the period - - 11,664 - 12,572 - - - 24,236 - 24,236

Acquisition of non controlling interest (5) - - - 248 - - - (788) (540) (10,154) (10,694)

Balances at period-end 719,145 217,191 11,664 1,231,553 12,919 2,541,788 4,122,631 2,838,323 11,695,214 - 11,695,214

(1) See Note 28 (2) See Note 44 (3) It relates to $2,2728 per share (4) See Note 51.1. (5) See Note 43

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/2018 with our report dated 11/22/2018

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Certified Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 8 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS STATEMENTS OF CASH FLOWS AS OF 9/30/2018 AND 9/30/2017 (Stated in thousands of pesos)

ITEM 9/30/2018 9/30/2017

Cash flows from operating activities

Income for the period before income tax 5,031,107 3,919,165

Adjustments to obtain cash flows from operating activities: (1,528,415) (1,914,479) Amortization and impairment of value 147,524 122,709 Charge for Loan Losses 1,392,199 468,909 Other adjustments (3,068,138) (2,506,097)

Net increases / (decreases) from operating assets: (12,922,479) (8,926,062) Debt securities measured at fair value with changes through profit or loss 346,147 (6,920,113) Derivative instruments (366,447) (44,959) Repo transactions 75,644 (562,343) Loans and other financing facilities (8,559,470) (5,978,675) Non-financial government sector (36,204) (38,765) Other financial institutions (393,314) (184,714) Nonfinancial private sector and foreign residents (8,129,952) (5,755,196) Other debt securities (2,195,517) 5,734,745 Financial assets granted as collaterals (1,391,010) (405,537) Investments in equity instruments 6,400 2,000 Other assets (838,226) (751,180)

Net increases / (decreases) from operating liabilities: 24,007,707 8,779,764 Deposits 22,016,886 8,057,521 Non-financial government sector 2,963,170 685,397 Financial sector 21,944 2,390 Nonfinancial private sector and foreign residents 19,031,772 7,369,734 Liabilities measured at fair value with changes through profit or loss 47,547 77,291 Derivative financial instruments 1,099,818 (9,384) Repo transactions (1,673,469) 288,720 Financing facilities received from the BCRA and other financial institutions 2,217,468 879,977 Other liabilities 299,457 (514,361)

Income tax payments (1,655,813) (1,146,946)

TOTAL OPERATING ACTIVITIES (A) 12,932,107 711,442

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/2018 with our report dated 11/22/2018

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Certified Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 9 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS STATEMENTS OF CASH FLOWS AS OF 9/30/2018 AND 9/30/2017 (Stated in thousands of pesos)

ITEM 9/30/2018 9/30/2017

(260,287) (140,684) Cash flows from investing activities

Payments: Purchase of property, plant and equipment, intangible assets and other assets 284,033 46,032

Collections: Sale of property, plant and equipment, intangible assets and other assets

TOTAL INVESTING ACTIVITIES (B) 23,746 (94,652)

Cash flows from financing activities

Payments: Unsubordinated corporate bonds (1,354,393) (1,192,410) Financing facilities from local financial institutions (174,565) (51,787)

Collections: Unsubordinated corporate bonds 945,640 1,326,181

TOTAL FINANCING ACTIVITIES (C) (583,318) 81,984

EFFECTS OF EXCHANGE RATE CHANGES (D) 3,640,671 410,720

TOTAL CHANGES IN CASH FLOWS 9/30/2018 9/30/2017

NET INCREASE IN CASH AND CASH EQUIVALENTS 16,013,206 1,109,494 (A + B + C + D)

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 14,422,402 10,885,200

CASH AND CASH EQUIVALENTS AT PERIOD-END 30,435,608 11,994,694

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/2018 with our report dated 11/22/2018

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Certified Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 10 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 1 - GENERAL INFORMATION Banco Patagonia S.A. (the “Bank”) is a corporation organized in Argentina that operates as a universal bank and has a nationwide distribution network. The Bank is controlled by Banco do Brasil S.A.

These financial statements include the Bank and its subsidiaries (collectively, the Group). The subsidiaries of the Bank are:

• Patagonia Inversora S.A. Sociedad Gerente de Fondos Comunes de Inversión: it is the company engaged in the mutual funds management business. Mutual funds are traded exclusively through the Bank, which, in turn, operates as a mutual funds custodian.

• Patagonia Valores S.A.: it is the company authorized to trade securities on the Buenos Aires Securities Market (Mercado de Valores de Buenos Aires). At present, the Company does not have a significant level of activity.

• Banco Patagonia (Uruguay) S.A.I.F.E.: it is a Uruguayan corporation authorized to conduct financial intermediation activities in Uruguay between nonresidents exclusively and in any foreign currency other than the Uruguayan peso, under the supervision of Banco Central del Uruguay (Uruguayan Central Bank).

• GPAT Compañía Financiera S.A.U. (GPAT): it is a company authorized to act as a financial institution, specialized in wholesale and retail financing for the acquisition of new automobiles, from both dealers - especially in the General Motors network in Argentina— and private customers.

Since July 20, 2007, Banco Patagonia S.A.’s shares have been publicly offered and listed on Bolsa y Merados Argentinos (BYMA) and BOVESPA (São Paulo Stock Exchange) (b3). Locally, on December 27, 2012, the Capital Markets Law No. 26831, regulated by Executive Decree No. 1023/13, issued on July 29, 2013, became effective. This Law, effective as from January 28, 2013, considers the comprehensive reform of the current public offering system (Law No. 17811).

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/2018 with our report dated 11/22/2018

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Certified Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 11 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Through the provisions of General Resolution No. 622/13 dated September 9, 2013, and subsequent administrative criteria, the CNV adapted its regulations to respond to new circumstances for the purposes of securing the regular performance of the various agents operating in the Capital Market, with the aim of ensuring compliance with the principles established in the new Capital Market Law. The companies of the Group are registered with the CNV for the purposes of acting in the following capacities:

Banco Patagonia S.A.

- Financial and non-financial trustee: authorized through Resolution No. 17418, issued by the CNV on August 8, 2014.

- Mutual fund custodian: authorized through Order No. 2081 of the CNV dated September 18, 2014.

- Settlement and clearing agent and comprehensive trading agent: authorized through Order No. 2095 of the CNV dated September 19, 2014.

Patagonia Valores S.A.

- Settlement and clearing agent and comprehensive trading agent: authorized through Order No. 2114 of the CNV dated November 11, 2014.

Patagonia Inversora S.A. Sociedad Gerente de Fondos Comunes de Inversión

- Management Agent of Mutual Funds: authorized by CNV Provision No. 2013, dated August 7, 2014.

NOTE 2 – BASIS FOR THE PREPARATION OF THE FINANCIAL STATEMENTS

These condensed consolidated financial statements for the period ended September 30, 2018 are part of the period covered by the first annual financial statements prepared in accordance with the regulations of the Argentine Central Bank (BCRA) (hereinafter, “BCRA accounting information framework”), which state that the institutions under its supervision should submit financial statements prepared under the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), subject to the following exceptions:

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 12 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

a) Application of the impairment model of section 5.5. “Impairment of Value” of IFRS 9 “Financial Instruments”, applicable to “Allowance for loan losses” to be implemented as from January 1, 2020.

b) Application of International Accounting Standard 29 (IAS 29) “Financial Reporting in Hyperinflationary Economies” due to the effectiveness of Communication “A” 3921 issued by the BCRA (see Note 3).

As the financial statements are issued for an interim period, the Bank opted to present condensed information, in accordance with the guidelines of the International Accounting Standard (IAS) No. 34 “Interim Financial Reporting” and, therefore, they do not include all the information required for the preparation of annual financial statements under IFRS. Consequently, these financial statements must be read together with the interim financial statements as of March 31, 2018. However, notes explaining the events and transactions that are significant to understand the changes in the financial position as from March 31, 2018 are included.

Additionally, BCRA Communications “A” 6323 and “A” 6324 set forth the guidelines for the preparation and presentation of the financial institutions’ financial statements for fiscal years beginning on or after January 1, 2018, including the information additional requirements as well as the information to be disclosed in the Exhibits.

NOTE 3 – FUNCTIONAL AND PRESENTATION CURRENCY

The Bank considers the Argentine peso as its functional and presentation currency. Figures are stated in thousands of pesos, unless otherwise stated. IAS 29 - “Financial Reporting in Hyperinflationary Economies” requires that the financial statements of an entity whose functional currency corresponds to a hyperinflationary economy should be stated in terms of the measuring unit current at the end of the reporting period, notwithstanding whether they are based on the historic cost method or the current cost method. Accordingly, inflation is computed in the non-monetary items as from acquisition date or revaluation date, as applicable. In order to determine whether an economy is hyperinflationary, the IAS describes a number of guidelines to be considered, including the cumulative inflation rate over three years approaching, or exceeding 100%. As a result of the devaluation of the Argentine peso in the last months and the increase in the overall price level during this period, the accumulated inflation for the last three years exceeds 100% as of September 30, 2018. According to the evaluation performed by various market players, the Argentine economy should be classified as a hyperinflationary economy as from July 1, 2018.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 13 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

However, in accordance with Decree 664/2003 issued by the Argentine Executive Branch, Communication “A” 3921 of the BCRA and General Resolution No. 441/2003 of the CNV, as amended, the Bank has discontinued any inflation restatement method as from March 1, 2003. Up to such date, the inflation restatement method set forth by the Technical Resolutions issued by the Argentine Federation of Professional Councils of Economic Sciences (FACPCE) has been applied, using adjustment indexes derived from the Internal Wholesale Price Index (IPIM), prepared by the National Institute of Statistics and Censuses.

Due to the increase in inflation levels experienced by the Argentine economy in the first months of 2018, a general consensus has been reached over the fact that Argentina meets the requirements established by Technical Resolution 39 to determine the existence of an inflationary context as from July 1, 2018.

However, to the extent Decree 664/2003, BCRA Communication “A” 3921 and I.G.J. General Resolution 441/2003., which do not authorize the presentation of accounting information including monetary restatement, remain effective, the Bank will not present financial statements adjusted for inflation as the application of Technical Resolution 39 would require.

In addition, to the date of issuance of these financial statements, the Executive Branch has not yet passed Law No. 27468, which, among other provisions, repeals Decree 1269/2002, as amended (including Decree 664/2003). Law No. 27468 further sets forth that the corresponding controlling authorities and the BCRA shall define the date as from which the financial statements of banking institutions must be prepared by applying constant currency.

Finally, the Bank’s Management is analyzing the effects on the accompanying financial statements of the application of these standards, and it estimates that such effects might be significant.

The existence of this inflationary context affects the financial position, income/loss and cash flows of the Bank, and, therefore, the effects of inflation should be considered upon interpreting these financial statements.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 14 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 4 – JUDGMENTS AND ACCOUNTING ESTIMATES In preparing the consolidated financial statements, the Bank’s Management is required to make judgments, estimates and assumptions that may affect the accounting policies applied and the amounts of assets, liabilities, revenues and expenses reported. The related estimates and assumptions are based on expectations and other factors deemed reasonable in the circumstances, the results of which are the basis of judgment on the value of assets and liabilities not easily evident from other sources. Actual results may differ from these estimates. The underlying estimates and assumption are continuously reviewed. The effect of reviews of accounting estimates is prospectively recognized. 4.1. Judgments Information about judgments in applying the accounting policies that may significantly affect the amounts recognized in the consolidated financial statements is described in Note 5 “Significant accounting policies” under the following sections: • 5.1. “Consolidation bases” as to the existence of control over other entities. • 5.4.b) “Classification of financial assets”. • 5.4.g) “Impairment of financial assets”. • 5.11 “Allowances and provisions”. • 5.16. a) “Contracts including a lease”. 4.2. Assumptions and estimates on uncertainties Information on assumptions and estimates about uncertainties, which are more likely to turn into a material adjustment to these consolidated financial statements is included in the following notes:

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 15 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Note 39.b.3) “Valuation techniques of Levels 2 and 3”. • Note 12 “Loans and other financing facilities”, as it relates to impairment of financial assets. • Note 15 “Income tax” and Note 5.17 “Current and deferred income tax”, as to the availability of future taxable income against which deferred tax assets can be used. • Note 26 “Allowances and provisions”, as to the likelihood and size of the disbursements. 4.3. Measurement at fair value The fair value is the price that would be received from the sale of an asset or paid for the transfer of a liability in an orderly transaction between market participants at the measurement date. When available, the Group measures the fair value of a financial instrument by using the quoted prices in active markets. A market is considered active if there are transactions with sufficient frequency and volume to provide continuous information about prices. If there are no quoted prices in the active markets, the Group uses valuation techniques, which maximize the use of significant market data and minimize the use of unobservable input. The selection of the valuation technique includes all factors that the market participants would consider in order to define the price of the transaction. The fair value is categorized in different hierarchy levels based on the input used in the measurement techniques, as detailed below: • Level 1: Inputs that are quoted prices (unadjusted) for identical instruments. • Level 2: valuation techniques that use observable market data as significant inputs. • Level 3: valuation techniques that use unobservable market data as significant inputs.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 16 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 5 – SIGNIFICANT ACCOUNTING POLICIES

The Group has consistently applied the following accounting policies for all the reporting periods included in these consolidated financial statements and for the preparation of the Statement of financial position as of December 31, 2016 for the purposes of the transition to the “BCRA accounting information framework” Note 51 details the impact of transition in relation to the accounting standards previously applied.

The items and amounts contained in the reconciliation included in such note are subject to changes, and can only be considered final when the annual financial statements for fiscal 2018 are prepared.

5.1. Consolidation bases a) Subsidiaries Subsidiaries are all entities over which the Group has control. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. The Group reassess whether it keeps the control over the entity when any of the conditions above changes. Subsidiaries are fully consolidated from the date on which control is transferred to the group and until such control ceases. b) Non-controlling interest Non-controlling interests account for the portion of profit or loss and equity not owned by the Group, and they are presented separately in the consolidated statement of income, of other comprehensive income, of financial position and of changes in shareholders’ equity. c) Mutual funds The Group acts as a mutual fund manager (see Note 49). Upon determining whether the Group controls such funds, the Group’s aggregate interest in the mutual fund (including the interest in the mutual fund return and management fees) is assessed and it is also considered that the shareholders are not entitled to remove the manger for no cause. Whenever interest in the mutual fund is lower than 37%, the Group concludes that it acts as an agent of the shareholders and, therefore, such mutual funds are not consolidated.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 17 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos) d) Loss of control When the Group loses the control of any subsidiary, it derecognizes the assets and liabilities of the subsidiary, any non-controlling interest and the other related components of equity. Any surplus or deficit arising from the loss of control is recognized in profit or loss. If the Group holds any interest in the referred subsidiary, such interest is measured at fair value at the date when the control is lost. e) Transactions eliminated for consolidation purposes Intra-group balances and transactions, and any unrealized income and expenses arising from intra-group transactions, are eliminated upon preparing the consolidated financial statements. Unrealized gains on transactions between the Group and its associates are eliminated to the extent of the group’s interest in these entities. Unrealized losses are also eliminated but only to the extent that there is no evidence of impairment. 5.2) Foreign currency a) Transactions in foreign currency Foreign currency transactions are translated into the functional currency of the Group entities using the exchange rates published by the BCRA at the dates of the transactions. Monetary assets and liabilities denominated in foreign currency are translated into the functional currency at the benchmark exchange rate prevailing at period or year-end. Non monetary assets and liabilities that are measured at fair value in a foreign currency are translated into functional currency using the benchmark exchange rates at the date when the fair value was determined. Non monetary items that are measured at historical cost in foreign currency are translated by using the benchmark exchange rate prevailing at the date of the transaction. Foreign exchange differences are recognized in the Consolidated statement of income in the line “Gold and foreign currency quoted price difference”.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 18 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos) b) Foreign operations Foreign currency transactions are translated into the functional currency of the Group entities using the exchange rates published by the BCRA at the dates of the transactions. Monetary assets and liabilities denominated in foreign currency at period-end were translated into the functional currency at the exchange rate prevailing at such date. The exchange difference from monetary assets and liabilities is the difference between the amortized cost in functional currency at beginning of the year, adjusted by the effective interest rate, and payments for the year and the amortized cost in foreign currency at the exchange rate prevailing at period-end. Non monetary assets and liabilities that are measured at fair value in a foreign currency are measured at functional currency using the exchange rates at the date when the fair value was determined. Non monetary items that are measured at historical cost in foreign currency are translated by using the exchange rate prevailing at the date of the transaction. Foreign exchange differences are recognized in the consolidated statement of comprehensive income in the line “Exchange differences on translation of financial statements”. 5.3 – Cash and bank deposits Cash and cash equivalents include cash and unrestricted balances held in the Central Banks and the demand deposit accounts in local and foreign financial institutions.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 19 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos) 5.4 - Financial assets and liabilities a) Recognition The Group initially recognizes loans, deposits, debt securities issued and liabilities at the date they were originated. All other financial instruments (including ordinary purchases and sales of financial assets) are recognized at the transaction trading date, that is, the date on which the Group becomes part of the contractual provisions of the instrument. The Group recognizes the purchases of financial instruments under a non-optional agreement to repurchase the instruments at a fixed price (repos) as financing facilities granted in the line “Repo transactions” in the Consolidated statement of financial position. The difference between the purchase and sale prices of those instruments is recorded as interest, which is accrued over the effective term of transactions using the effective interest rate method. The financial assets and liabilities are initially recognized at fair value. Those instruments that are not measured at fair value with changes through profit or loss are recognized at their fair value plus (in the case of assets) or less (in the case of liabilities) the transactions costs directly attributable to the acquisitions of assets or the issuance of liabilities. The transaction price is usually the best evidence of its fair value at initial recognition. However, if the Group determines that fair value at initial recognition differs from the consideration received or paid, when the fair value is determined according to hierarchies 1 or 2, the financial instrument is initially measured at fair value and the different is recognized in profit or loss. If the fair value at initial recognition is determined according to hierarchy 3, the difference between the fair value and the consideration is deferred over the term of the instrument. b) Classification of financial assets At initial recognition, financial assets are classified and measured at amortized cost, fair value with changes in other comprehensive income (OCI) or at fair value with changes in profit or loss. A financial asset is measured at amortized cost if the following conditions are met: • it is held within a business model whose objective is to hold assets to collect the contractual cash flows; and • the contractual terms of the financial asset give rise to cash flows that meet the “solely payments of principal and interest” criterion.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 20 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

A debt instrument is measured at fair value with changes through OCI if the following conditions are met: • it is held within a business model whose objective is to collect the contractual cash flows and sell the financial asset; and • the contractual terms of the financial asset give rise to cash flows that meet the “solely payments of principal and interest” criterion. At initial recognition of an equity instrument not held for trading purposes, the Group may elect, for each instrument individually, to present fair value with changes through OCI. The other financial assets are classified as measured at fair value with changes recognized through profit or loss. This category includes derivative financial instruments. The Group assesses the business model objective under which it holds an asset at portfolio level. The information considered includes: • The policies and objectives established for the portfolio and the way in which such policies are implemented. Particularly, if Management is focused on income arising from contractual interest; • How portfolio income is measured and reported to Management; • Risks affecting the business model proceeds and how such risks are managed; • How the portfolio managers are remunerated (based on the fair value of the assets managed or cash flows received); and • The frequency, volume and timing of the sale in prior periods, the reasons for such sales and the expectations for future sales. However, information about sales is not separately considered but as part of the general assessment of how the Group establishes the objectives for managing the financial assets. The financial assets held for trading or managed within a portfolio whose performance is measured at fair value are measured at fair value with changes through profit or loss.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 21 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Upon assessing whether the contractual cash flows meet the “solely payments of principal and interest” criterion, the Group defines as “principal”, the fair value of the financial asset at initial recognition date, and as “interest”, the consideration for the time value of money and the credit risks associated with principal pending payment and other risks inherent to a loan. The assessment considers whether the financial asset includes contractual conditions that may change timing or the amount of contractual cash flows leading to noncompliance with the criterion mentioned above. Financial assets are not reclassified after initial recognition, except for a change in the business model of the Group. c) Classification of financial liabilities The Group classifies its financial liabilities, other than derivative financial instruments, guarantees issues and loans, as measured at amortized cost. Derivative financial instruments are measured at fair value with changes through profit or loss. Financial guarantees are contracts whereby the Group is required to make specific payments to reimburse the holder for any loss to be incurred if a given debtor defaults on payments when due under the contractual conditions of the debt instrument. The debt arising from financial guarantees issued is initially recognized at fair value. Subsequent to initial recognition, liabilities for each guarantee are recognized at the highest amount between the amortized amount and the present value of any payment required to settle the debt when the referred payment is deemed to be probable. d) Derecognition of financial assets and liabilities A financial asset is derecognized by the Group when the rights to receive cash flows from the asset have expired; or if the rights to the cash flows from the asset were transferred within a transaction in which substantially all of the risks and rewards of the asset have been transferred or, otherwise, the control of the asset has been relinquished. When the Group derecognizes a financial asset, the difference between the book value of the asset and the consideration received and any other balance in OCI is recognized in profit or loss. The Group performs transactions in which financial assets are transferred but it holds substantially all of the risks and rewards of the asset transferred. In such cases, the financial assets transferred are not derecognized.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 22 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

The Group recognizes the sales of financial instruments under a non-optional agreement to repurchase the instruments at a fixed price (repos) as financing facilities received in the line “Repo transactions” in the Consolidated statement of financial position. The difference between the purchase and sale prices of those instruments is recorded as interest, which is accrued over the effective term of transactions using the effective interest rate method. A financial liability is derecognized when the payment obligation is either discharged or settled or expires. Where an existing financial liability is exchanged for other of the same borrower with substantially different terms and conditions, or the terms and conditions haven been substantially modified, such exchange or modification are considered as the derecognition of the original financial liability and the recognition of a new financial liability. Any gain or loss is recognized in the line “Other operating income– due to derecognition or substantial modification of financial liabilities” of the Consolidated statement of income. e) Offsetting financial assets and liabilities Financial assets and liabilities are offset and the net amount is presented in the Consolidated statement of financial position, when, and only when, the Group has a legally enforceable right to offset the amounts; and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. Income and expenses are reported on a net basis only when allowed by the IFRS, or in the case of gains and losses arising from a group of similar transactions. f) Measured at amortized cost The amortized cost of a financial asset or liability is the amount at initial recognition, less principal reimbursement, plus or less the amortization, using the effective interest rate method, of any difference between the initial amount and the amount at maturity. In the case of financial assets, it also includes any impairment correction (uncollectibility).

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 23 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos) g) Impairment of financial assets As indicated in Note 2, the BCRA, through the provisions of Communication “A” 2950 and amendments, stated that financial institutions should continue applying the model for the recognition of impairment of financial assets effective as of December 31, 2017. Such regulations require the financial institutions to: • Provide a debtors’ classification by status in accordance with the BCRA guidelines; and • Recognize an allowance for loan losses based on a table that determines the percentage subject to the allowance considering the debtors’ classification and the existence of guarantees. The BCRA requires that clients included in the “commercial portfolio” be separately analyzed and classified by status. The commercial portfolio includes receivables over a certain amount determined by the BCRA, the payment of which is related to the changes in the production or commercial activity of the client. The assessment of the debtor’s repayment capacity is based on the estimated cash flows considering the updated financial information and the related sector parameters as well as other circumstances of the economic activity. The “consumer portfolio” is globally analyzed and debtors are classified according to their past due status. The consumer portfolio includes home loans, and loans below a given amount determined by the BCRA. The increases in the allowance for loan losses related to “Loans and other financing facilities” are recognized in the line “Charge for loan losses” of the Consolidated statement of income. Finally, the Group considers that the effect on the financial statements that would derive from applying section 5.5. “Impairment of Value” of IFRS 9 “Financial Instruments”, which was temporarily excluded by the BCRA from the accounting framework applicable to financial institutions, might be material. 5.5 Investment in associates and joint ventures An associate is an entity over which the group has significant influence but not control or joint control over its financial and operating policies. A joint venture is an arrangement, whereby the Group has a joint control and rights to the net assets of the arrangement instead of rights to the assets and liabilities of the business.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 24 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Interests in associates are recognized by the using the equity method. They are initially recognized at cost, including the transactions costs. After the initial recognition, the consolidated financial statements include the Group’s share in profit or loss and in OCI of the investments recognized under the equity method until significant influence or joint control cease. 5.6 Property, plant and equipment The Group applies the revaluation model as the accounting policy for the real estate classified as property, plant and equipment (PP&E). For the other class of assets, the cost model is applied.

Based on the significant increases in prices of real estate over the last years, the Group considers that the revaluation model fairly reflects the value of these assets.

According to the revaluation method, after the initial recognition, assets are measured at fair value at the revaluation date less accumulated depreciation and the accumulated impairment losses, if applicable.

Measurement at fair value is conducted by independent experts in appraisals, whose selection is made on the basis of their knowledge of the market, reputation, independence and compliance with professional standards.

Frequency of revaluations will depend on the changes in fair value of the items subject to revaluation. When the fair value of the asset revalued significantly differs from the book value, a new revaluation shall be made.

The increase in the book value of an asset as a consequence of the revaluation is recognized in OCI, under Revaluation of property, plant and equipment.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 25 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Depreciation is determined by applying the straight line method in accordance with the fair value and remaining useful life estimated upon revaluation and it is fully recognized in profit or loss. Depreciation methods and useful lives are reviewed at each reporting date and adjusted, if appropriate. 5.7 Intangible assets Intangible assets comprise the costs of information systems acquisition and implementation, which are measured at cost less accumulated amortization and any impairment losses, if applicable. Subsequent disbursements on information systems are capitalized only when they increase the economic benefits embodied in the specific asset to which they relate. All other disbursements are expensed as incurred. Information systems are amortized on a straight-line basis over its estimated useful life, estimated in five years. Amortization methods and useful lives are reviewed at each reporting date and adjusted, if appropriate. 5.8 – Other non financial assets a) Works of art and collection items The works of art and collection items are measured at their cost. b) Investment property The Group applies the fair value model as the accounting policy to investment property. The fair value was determined based on the appraisal conducted by an independent professional, by applying Level 3 valuation techniques. A market approach was used. 5.9 Non-current assets held for sale Non financial assets are classified as held for sale if their carrying amount will be recovered primarily through sale and the asset is available for immediate sale under ordinary sale conditions, and Management is committed to an active plan for trading them at a fair price. Therefore, sales are considered highly probable and it is expected that they will be completed within a year following classification as held for sale. Such assets are measured at the lower of their carrying amount and fair value less costs to sell upon reclassification.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 26 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

When an investment in an associate or joint venture measured by applying the equity method is classified as “non current assets held for sale”, the equity method is no longer applied. 5.10 Impairment of non financial assets At least, at each reporting date, the Group assesses whether there are any indications that the value of non- financial assets may be impaired (except for deferred tax assets). If there is an indication, the asset’s recoverable amount is estimated. For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that is largely independent of the cash inflows of other assets or cash-generating units (CGU). The “recoverable amount” of an asset or CGU is the greater of its value in use and its fair value less costs to sell. ‘Value in use’ is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of the money and the risks specific to the asset or CGU. If the accounting balance of an asset (or CGU) is higher than its recoverable value, the asset (or CGU) is considered impaired, its accounting balance is reduced to its recoverable value and the difference is recognized in profit or loss. An impairment loss is reversed only to the extent that the carrying amount of assets does not exceed the amount they should have had if the impairment had not been recognized. The Group has made these estimates and, given that the recoverable value of assets (value in use) exceeds their carrying amount, it has determined that no adjustment for impairment has to be recognized. 5.11 Allowances and provisions The Group recognizes a provision if and only if: (a) the Group has a present legal or constructive obligation resulting from past events; (b) it is probable (i.e. more likely than not) that an outflow of resources will be required to settle the obligation; and (c) the amount payable can be estimated reliably. In order to assess the provisions, the existing risks and uncertainties were considered taking into account the opinion of the Group’s external and internal legal counsel. Based on the analysis performed, the Group recognized a provision in the amount considered to be the best estimate of the potential expenditure required to settle the present obligation at each reporting date.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 27 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

The provisions recognized by the Group are reviewed at each reporting date and adjusted to reflect the current best estimate available. Additionally, provisions are allocated to a specific item so that they only be used for the purpose for which they were originally recognized. In the event a) the obligation is possible; or b) it is not probable that an outflow of resources will be required to settle the obligation; or c) the amount of the obligation cannot be reliably measurable, such contingent liability is not recognized and is disclosed in the notes. However, disclosure is not required if payment is remote. 5.12 Employee benefits Short term employee benefits Short term employee benefits are recognized in profit or loss when the employee provides the related services. A provision is recognized if the Group has the legal or implied obligation, based on past services provided by the employee, to pay an amount that can be reliably estimated. 5.13 Share capital The incremental transaction costs directly attributable to the issue of common shares are recognized as a reduction in the contributions received net of the related income tax. 5.14 Interest income and expenses Interest income and expenses are recognized in profit or loss using the effective interest rate method. The effective interest rate is the rate that exactly discounts contractual cash payments and receipts, throughout the expected life of the financial instrument, from the accounting balance of the financial asset or liability. The calculation of the effective interest rate includes transaction costs, commissions and other items paid or received that are an integral part of the effective interest rate. Transaction costs include incremental costs that are directly attributable to the acquisition of a financial asset or the issuance of a financial liability. Interest income and expenses presented in the Consolidated statement of income include interest on: • Financial assets and liabilities measured at amortized cost; and • Financial assets measured at fair value with changes recognized in OCI.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 28 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos) 5.15 Fee income and expenses Commissions, fees and the like that are part of the effective interest rate of a financial asset or liability are included in measuring the effective interest rate (see Note 5.14). Other fee income, including fees for services, mutual fund management, service commission is recognized when the related service is provided.

The Bank has a customer loyalty program in place consisting in the accumulation of points through credit and/or debit card consumptions. They can be exchanged for products or services to be furnished by the Bank. At each reporting date, the Bank measures the rewards to be granted as an identifiable component of the main transaction, the fair value of which, i.e. the amount at which the reward may be sold separately, is recorded under "Other liabilities – Customer loyalty program". Other fee expenses are recognized in profit or loss when the related service is received. 5.16 Leases a) Contracts including a lease At beginning of the contract, the Group determines whether it includes a lease. If this is the case, the lease payments are separated between those related to leases and other items, based on the relative fair values. b) Classification of leases When the lease transfers substantially all the risks and rewards incidental to ownership of an asset, it is classified as a finance lease. Otherwise, it is classified as an operating lease. c) operating leases in which the Group is a lessee In an operating lease, the leased asset is not recognized for accounting purposes. Lease payments under an operating lease shall be recognized in profit or loss on a straight-line basis over the lease term. In a finance lease, the asset and the liability for the future lease payments are recognized in the statement of financial position. The leased asset is initially recognized at the lower of its fair value and the present value of the minimum lease payments. Then, the leased asset is recorded in accordance with the accounting policy applicable to the related asset.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 29 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Payments made under a finance lease are separated between interest and the reduction in the liability for lease payments. Interest is recognized over the lease term by applying a constant interest rate. Contingent lease payments are recognized in profit or loss as incurred. d) Finance lease leases in which the Group is a lessor The leased asset under a finance lease is derecognized and a receivable equal to the amount of the net investment in the lease is recognized in the line “Loans and other financing facilities” Payments received under a finance lease are separated between interest and the reduction in the net investment in the lease. Interest is recognized over the lease term by applying a constant interest rate. Contingent leases are not considered to determine the net investment in the lease. 5.17 Current and deferred income tax Income tax expense for each period comprises current and deferred tax. It is recognized in profit or loss except to the extent that it relates to items recognized directly in equity or in Other Comprehensive Income. a) Current tax Current income tax comprises the tax payable or advances made in connection with the taxable income for the period and any adjustment to the tax payable or receivable related to prior years. The current tax payable (or recoverable) is the best estimate of the amount expected to be paid (or recovered) that is measured using tax rates enacted or substantively enacted at the reporting date. b) Deferred tax Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 30 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos) Deferred tax is not recognized for: • Temporary differences on the initial recognition of assets or liabilities in the transaction that is not a business combination and that affects neither accounting nor taxable profit or loss; • Temporary differences related to investments in subsidiaries to the extent that it is probable that they will not reverse in the foreseeable future; and • Taxable temporary differences arising on the initial recognition of goodwill. Deferred tax assets are recognized for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be used. Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer probable that the related tax benefit will be realized. Unrecognized deferred tax assets are reassessed at each reporting date and recognized to the extent that that future taxable income against which they may be used is likely to be available. Deferred tax assets and liabilities are presented in net amounts in the Consolidated statement of financial position when deferred tax assets and liabilities are related to taxes imposed by the same tax authorities and belong to the same taxpayer. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date. The measurement of deferred tax reflects the tax consequences that would follow the manner in which the Group expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 31 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

In determining the amount of current and deferred tax, the Group considers the impact of different tax legislation interpretation, including any additional taxes and interest that may be due. The assessment relies on estimates and assumptions and may involve a series of value judgments about future events. New information may become available that causes the Group to change its position regarding the adequacy of existing tax liabilities; such changes to tax liabilities would impact tax expense in the period in which such assessment is made. c) Tax Reform On December 29, 2017, Tax Reform Law No. 27430 was enacted through Decree No. 1112/2017. Among other aspects, this Law provides for the reduction in the corporate income tax rate applicable to unappropriated retained earnings and affects the measurement of deferred tax assets and liabilities. The reduction in the corporate income tax rate will be gradually implemented over a term of four years from 35% in year 2017 to 25% in 2020. Its effects will be considered as from deferred taxes assessed as of December 31, 2017, as follows: if the reversal takes place as from January 1, 2018 and until December 31, 2019, the applicable rate is 30%. If the reversal takes place as from January 1, 2020 onwards, the applicable rate is 25%. Additionally, the tax reform provides for the following aspects, among others: amendments to the equalization tax, inflation adjustment for tax purposes, treatment to acquisitions and investments made as from January 1, 2018, revaluation for tax purposes and employers’ contributions. d) Uncertain tax exposures In determining the amounts of current and deferred income tax, the Group considers the impact of uncertain tax exposures involving the income tax, including any additional taxes and interest that may be due. The assessment relies on estimates and assumptions and may involve a series of value judgments about future events. New information may become available that causes the Group to change its value judgments regarding the adequacy of existing tax liabilities; such changes to tax liabilities would impact tax expense in the period in which such assessment is made.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 32 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos) e) Minimum presumed income tax The minimum presumed income tax was established during fiscal year 1998 by Law No. 25063 for a ten-year term. At present, after successive extensions, and as provided for by Law 27260, such tax is effective for fiscal years ending on December 31, 2018, included. This tax is supplementary to the income tax because, whereas the latter is levied on taxable income for the year, minimum presumed income tax is a minimum levy on the potential income of certain productive assets at a 1% rate. Therefore, each Entity’s tax liability will be represented by the highest of both taxes. In the case of institutions governed by the Financial Institutions Law, the abovementioned law sets forth that they shall consider as taxable income 20% of their taxable assets, after deducting those assets defined as non-computable. However, should minimum presumed income tax exceed income tax in a given fiscal year, such excess may be computed as a credit towards future income taxes occurring in any of the next ten fiscal years, once the accumulated tax losses are exhausted. As of September 30, 2018 and 2017, the amounts assessed for income tax were higher than those assessed for minimum presumed income tax for those periods. 5.18 Earnings per share Basic and diluted earnings per share are calculated by dividing net income attributable to the shareholders of the Group by the weighted average number of outstanding common shares during each year or period. In the fiscal years ended December 31, 2017 and 2016 and in the nine-month period ended September 30, 2018, the Group does not hold diluted financial instruments, therefore, basic and diluted earnings per share are the same.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 33 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos) NOTE 6 – IFRS ISSUED BUT NOT YET IN FORCE A number of new standards and amendments will be applicable after January 1, 2019 and early adoption is permitted. As provided for by the BCRA, the Group cannot early adopt new standards or amendments to effective standards for the preparation of these consolidated financial statements, unless specifically stated by the BCRA. The Group considers that the only standard that may have a potential material effect on the financial position or profit or loss of the Group is IFRS 16 - Leases, which will replace the current standards about leases as from the annual period beginning on or after January 1, 2019. IFRS 16 introduced an accounting model only applicable to lessees, whereby it requires recognition of a right-of- use asset and a lease liability reflecting future lease payments. There are recognition exemptions for short term leases and leases where the underlying asset has a low value. IFRS 16 does not include amendments to the lessors’ recognition, that is, the classification of leases as an operating lease or a finance lease continues. The Bank and its subsidiaries lease a number of branches and offices. Therefore, the Group is expected to recognize new right-of-use assets in connection with these pieces of real estate and the related lease liability. The Group has not yet determined the amounts to be recognized in the following year as a result of the applicability of IFRS 16.

NOTE 7 – CASH AND BANK DEPOSITS Cash and cash equivalents computed for the purposes of preparing the Consolidated statement of cash flows include the following items.

Item 9/30/2018 12/31/2017 9/30/2017 12/31/2016 Cash on hand 3,744,534 3,075,161 2,898,330 2,489,434 BCRA - Current account 24,762,690 10,893,579 8,392,743 7,416,575 Balances with financial institutions in 1,928,384 453,662 703,621 979,191 Argentina and abroad Tota l 30,435,608 14,422,402 11,994,694 10,885,200

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 34 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 8 – DEBT SECURITIES MEASURED AT FAIR VALUE WITH CHANGES THROUGH PROFIT OR LOSS Breakdown is as follows:

Item 9/30/2018 12/31/2017 12/31/2016 Government securities 115,155 191,843 518,193 Instruments issued by the BCRA 336 235,385 381,752 Other 515 10,878 46,788 Total 116,006 438,106 946,733

Information as of September 30, 2018

Government securities in Argentina measured at fair value with changes through profit or loss

Book Position as Fair value balances Description Identification of level as of 9/30/2018 9/30/2018 - Argentine Government Bond in USD 8.75%, maturity 2024 5458 1 108,235 108,235 - Debt security, Class 1, Province of Rio Negro, maturity 2020 32922 2 5,999 5,999 - International bonds of Argentina 6,25% in USD, maturity 2019 92581 1 717 717 - Discount Bond in USD 8,28%, maturity 2033 45700 1 204 204 - Other - (172,481) Sub – Total 115,155 (57,326)

BCRA Bills in Argentina measured at fair value with changes through profit or loss

Book Position as Fair value balances Description Identification of level as of 9/30/2018 9/30/2018 - BCRA Bills- Maturity 10/17/2018 46831 1 204 204 - BCRA Bills- Maturity 11/21/2018 46832 1 132 132 Sub – Total 336 336

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 35 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Corporate securities in Argentina measured at fair value with changes through profit or loss Book Position as Fair value balances Description Identification of level as of 9/30/2018 9/30/2018 - Other - 2 515 515 Sub – Total 515 515

Total 116,006 (56,475)

Information as of December 31, 2017

Government securities in Argentina measured at fair value with changes through profit or loss

Fair Position as Book balances as Description Identification value of of 12/31/2017 level 12/31/2017 - Discount bond in $ gov. by de argentine Law, maturing in 2033 45696 1 151.878 151.878 - Treasury bond in $ Benchmark rete-Monetary Policy, maturity 5327 1 27.899 27.899 2020 - Argentine government Bond in USD 8.75% maturity 2024 5458 1 6.608 6.608 - International Government Bond in USD , Maturity 2021 92582 1 2.295 2.295 - Argentine Treasury Bond in $ maturity 9/19/2018 5317 1 1.547 1.547 - Par securities I $ 2038 45695 1 1.096 1.096 - Argentine Gov. Bond in $ private BALDAR + 250.B.P 2019 5454 1 514 514 - Other 6 6 Sub - Total 191.843 191.843 BCRA Bills in Argentina measured at fair value with changes through profit or loss

Fair Position as Book balances Description Identification value of as of 12/31/2017 level 12/31/2017 - BCRA Bills- Maturity 1/17/2018 46821 1 178,295 178,295 - BCRA Bills- Maturity 2/21/2018 46822 1 35,950 35,950 - BCRA Bills- Maturity 9/19/2018 46830 2 20,182 20,182 - BCRA Bills- Maturity 7/18/2018 46828 1 471 471 - BCRA Bills- Maturity 4/18/2018 46824 1 263 263 - BCRA Bills- Maturity 5/16/2018 46825 1 112 112 - BCRA Bills- Maturity 8/15/2018 46829 1 93 93 - BCRA Bills- Maturity 3/21/2018 46823 1 19 19 Sub - Total 235,385 235,385

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 36 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Corporate securities in Argentina measured at fair value with changes through profit or loss

Book Position as Fair value balances Description Identification of level as of 12/31/2017 12/31/2017 - Fideicomiso Financiero Ribeiro Minicréditos 3rd Class 2 10,008 10,008 B - Other 870 870 Sub - Total 10,878 10,878

Total 438,106 438,106

Information as of December 31, 2016

Government securities in Argentina measured at fair value with changes through profit or loss

Book Position Fair value balances as of Description Identification level as of 12/31/201 12/31/2016 6 - Discount bond in $ governed by the Argentine Law, maturing 45696 1 139,010 139,010 in 2033 - Dollar-linked Argentine Government Bond - 0.75% rate, 5465 1 121,600 121,600 maturity 2017 - Dollar-linked Argentine Government Bond - 0.75% rate, 5464 1 69,383 69,383 maturity 2017 - Argentine Treasury Bonds in $ - 2.5% rate, maturity 2021 5315 1 42,602 42,602 - Argentine Government Bond in USD, maturity 2017 5436 1 55,452 55,452 - Dollar-linked Argentine Government Bond - 0.75% rate, 5466 2 28,537 28,537 maturity 06/ 2017 - Par Bonds in $, maturity 2038 45695 2 25,111 25,111 - Argentine Treasury Bonds - 22.75% rate, maturity 2018 5316 1 18,428 18,428 - Argentine bond quasi-par $ 3.31, maturity 2045 45697 2 10,061 10,061 - Consolidation bond 6th series class 2 2420 1 4,096 4,096 Other 3,913 3,913 Sub - Total 518,193 518,193

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 37 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

BCRA Bills in Argentina measured at fair value with changes through profit or loss

Book Position as Fair value balances Description Identification of level as of 12/31/2016 12/31/2016 - BCRA Bills- Maturity 1/4/2017 46790 2 162,345 162,345 - BCRA Bills- Maturity 1/18/2017 46796 2 115,729 115,729 - BCRA Bills- Maturity 1/11/2017 46793 2 34,906 34,906 - BCRA Bills- Maturity 2/1/2017 46773 2 32,020 32,020 - BCRA Bills- Maturity 1/25/2017 46799 2 22,038 22,038 - BCRA Bills- Maturity 2/15/2017 46786 2 12,505 12,505 - BCRA Bills- Maturity 5/31/2017 46812 2 1,832 1,832 - BCRA Bills- Maturity 3/15/2017 46800 1 377 377 Sub - Total 381,752 381,752

Corporate securities in Argentina measured at fair value with changes through profit or loss

Book Position as Fair value balances Description Identification of level as of 12/31/2016 12/31/2016 - ON Banco Patagonia Class 3 50615 2 10,481 10,481 - ON Banco Santander Río Class 10 51196 2 10,477 10,477 - ON Tarjetas Cuyanas Class 21 50728 2 6,226 6,226 - ON Grupo Financiero Galicia Class 7 1st series 50629 2 5,227 5,227 - ON Banco Hipotecario Series 34 51263 2 5,176 5,176 - ON Banco Hipotecario Series 36 51499 2 5,149 5,149 - ON Petroquímica Rivadavia Class 3 50150 2 2,426 2,426 - ON Rombo Compañía Financiera Class 29 50623 2 1,048 1,048 Other 578 578 Sub - Total 46,788 46,788

Total 946,733 946,733

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 38 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 9 – DERIVATIVE INSTRUMENTS In the ordinary course of business, the Group completed forward foreign currency transactions with daily or monthly settlement of differences without delivery of the underlying assets and forward foreign currency transactions. Such transactions do not qualify as hedging as per IFRS 9 Financial Instruments. These instruments are measured at fair value with changes recognized in the Consolidated statement of income in the line “Gain/ loss on financial instruments measured at fair value through profit or loss”. Breakdown is as follows: Item 9/30/2018 12/31/2017 12/31/2016 Effective securities Assets 400,648 34,201 10,312 Forward foreign currency transactions 391,636 28,102 7,291 Forward foreign currency 9,012 6,099 3,021

Liabilities 1,113,876 14,058 11,606 Forward foreign currency 1,113,876 14,058 11,606

Notional securities Assets 118,902 49,770 75,583 Forward foreign currency transactions 118,533 48,850 66,583 Forward foreign currency 369 920 9,000

Liabilities 123,476 48,886 137,886 Forward foreign currency transactions 3,000 - 92,299 Forward foreign currency 120,476 48,886 45,587

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 39 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos) NOTE 10 – REPO TRANSACTIONS

Breakdown is as follows: 9/30/2018 12/31/2017 12/31/2016 Assets Government securities 202,158 21,044 272,671 Instruments issued by the BCRA 675,048 931,806 181,230 Total 877,206 952,850 453,901 Liabilities Government securities 183,611 28,764 20,518 Instruments issued by the BCRA - 1,828,316 114,720 Total 183,611 1,857,080 135,238

NOTE 11 – OTHER FINANCIAL ASSETS

Breakdown is as follows: 9/30/2018 12/31/2017 12/31/2016 Measured at amortized cost Receivables from spot sales of foreign 1,255,551 765,659 - currency to be settled Receivables from spot sales of government 401,997 411,187 32,809 securities to be settled Sundry receivables 432,499 379,033 200,340 Sub - Total 2,090,047 1,555,879 233,149 Measured at fair value with changes through

profit or loss Mutual fund shares 212,722 184,671 112,689 Sub - Total 212,722 184,671 112,689 Less: Allowance for loan losses (Exhibit R) (18,395) (15,347) (23,423) Total 2,284,374 1,725,203 322,415

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 40 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos) NOTE 12 – LOANS AND OTHER FINANCING FACILITIES

The Group holds loans and other financing facilities under a business model whose objective is to collect the contractual cash flows. Consequently, loans and other financing facilities are measured at amortized cost, unless the conditions thereof do not meet the “solely payments of principal and interest” criterion; then, they are measured at fair value with changes in profit or loss. Loans and other financing facilities classified on the basis of their measurement are as follows:

Breakdown 9/30/2018 12/31/2017 12/31/2016 Measured at amortized cost 80,909,949 63,572,860 46,230,806 Less: Allowance for loan losses (Exhibit R) (3,170,514) (1,949,140) (1,418,806) Total 77,739,435 61,623,720 44,812,000

Breakdown is as follows: Breakdown 9/30/2018 12/31/2017 12/31/2016 Overdrafts 10,295,973 7,440,601 5,137,362 Notes 27,450,730 19,253,518 16,409,822 Mortgage loans 766,393 111,453 66,160 Car loans 4,836,628 5,118,119 3,454,192 Consumer 9,925,188 9,305,796 6,385,742 Credit cards 11,558,250 10,300,060 7,246,768 Finance lease 1,143,475 1,369,775 1,455,861 Other 14,933,312 10,673,538 6,074,899 Sub - Total 80,909,949 63,572,860 46,230,806 Less: Allowance for loan losses (Exhibit R) (3,170,514) (1,949,140) (1,418,806) Total 77,739,435 61,623,720 44,812,000

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 41 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Loans and financing facilities classified by status (determined according to the BCRA criteria) and guarantees received as well as the reconciliation of information and accounting balances are reported in Exhibit “B”. Information about loan and other financing facilities concentration as well as the reconciliation of information and accounting balances is reported in Exhibit “C”. Finance lease The Group provides financing under finance leases. The following table shows total gross investment in finance leases and the present value of minimum payments to be received therefrom:

9/30/2018 12/31/2017 12/31/2016 Present Present value Present value value of Total of minimum Investments of minimum Investments Term minimum investment lease Total lease Total lease payments payments payments Up to 1 year 802,764 567,000 867,680 613,437 821,572 540,660 From 1 to 5 719,983 593,713 888,605 768,567 1,121,028 929,982 years Over 5 year 336 271 4,508 4,082 539 406 Total 1,523,083 1,160,984 1,760,793 1,386,086 1,943,139 1,471,048

Principal 1,143,475 1,369,775 1,455,861 Accrued interest 17,509 16,311 15,187 Total 1,160,984 1,386,086 1,471,048

Quality of loans and other financing facilities The Bank manages the quality of loans through ratings established by the BCRA. The following table classifies loans into delinquent, impaired or neither delinquent nor impaired:

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 42 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Neither delinquent Delinquent, not Total as of Item Impaired nor impaired impaired 9/30/2018 Overdrafts 9,624,692 700,690 103,510 10,428,892 Notes 27,161,209 772,343 338,238 28,271,790 Mortgage loans 871,396 15,939 4,317 891,652 Car loans 3,765,844 912,607 121,510 4,799,961 Consumer 8,917,720 744,319 585,665 10,247,704 Credit cards 10,539,084 898,526 120,640 11,558,250 Finance lease 1,073,097 64,436 12,274 1,149,807 Other 12,121,015 221,109 280,510 12,622,634 Total 74,074,057 4,329,969 1,566,664 79,970,690

Neither delinquent Delinquent, not Total as of Item Impaired nor impaired impaired 12/31/2017 Overdrafts 7,069,943 311,879 58,779 7,440,601 Notes 18,737,696 377,045 138,777 19,253,518 Mortgage loans 108,239 3,035 179 111,453 Car loans 3,609,654 1,405,860 102,605 5,118,119 Consumer 8,490,331 489,983 325,482 9,305,796 Credit cards 9,732,365 521,196 46,499 10,300,060 Finance lease 1,295,497 61,119 13,159 1,369,775 Other 9,372,475 1,131,652 169,411 10,673,538 Total 58,416,200 4,301,769 854,891 63,572,860

Neither delinquent Delinquent, not Total as of Item nor impaired impaired Impaired 12/31/2016 Overdrafts 4,969,901 121,715 45,746 5,137,362 Notes 15,984,728 334,893 90,201 16,409,822 Mortgage loans 64,525 1,033 602 66,160 Car loans 2,556,248 841,696 56,248 3,454,192 Consumer 5,478,946 764,455 142,341 6,385,742 Credit cards 5,950,802 1,258,870 37,096 7,246,768 Finance lease 1,396,065 51,397 8,399 1,455,861 Other 5,905,190 52,943 116,766 6,074,899 Total 42,306,405 3,427,002 497,399 46,230,806

The other financial assets are neither delinquent nor impaired.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 43 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Allowances for loan and other financing facilities losses Changes in allowances according to the financing classification are reported in Exhibit “R”, Loss impairment adjustment–Allowance for loan losses NOTE 13 – OTHER DEBT SECURITIES Breakdown is as follows:

Information as of September 30, 2018

Government securities in Argentina measured at fair value with changes through OCI Book Position as Fair value balances Description Identification of level as of 9/30/2018 9/30/2018 - Argentine Treasury Bond in $ - Fixed Rate, maturity 5330 2 3,028,125 3,028,125 2020 Treasury bills in USD, maturity 3/15/2019 5261 1 1,431,827 1,431,827 - Treasury bills in USD, maturity 2/8/2019 5250 1 560,704 1,321,659 - Argentine Bond in USD - 6.875%, maturity 2021 91663 1 509,827 509,827 - Debt security, Class 1, Province of Rio Negro, 42016 1 183,233 183,233 maturity 2021 - Treasury bills in USD, maturity 1/25/2019 5249 1 152,533 152,533 - Treasury bills in USD, maturity 12/12/2018 5229 1 80,509 80,509 - Treasury bills in USD, maturity 11/30/2018 5259 1 79,767 79,767 - Debt security, Class 1, Province of Rio Negro, 32922 2 71,993 71,993 maturity 2020 - Neuquén Treasury Bills C.1 S.1, maturity 2020 32777 2 50,409 50,409 - Chubut debt security in USD - Class 2 32487 2 5,922 5,922 - Consolidation bond 8th Series 2571 2 1,959 1,959 - Treasury bills in USD, maturity 1/11/2019 5248 1 1,865 1,865 - Other 3,090 3,090 Sub - Total 6,161,763 6,922,718

BCRA Bills in Argentina measured at fair value with changes through OCI

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 44 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Book Position as Fair value balances Description Identification of level as of 9/30/2018 9/30/2018 - BCRA Liquidity Bills, maturity 10/3/2018 13253 1 5,454,172 5,454,172 - BCRA Liquidity Bill, maturity 10/4/2018 13254 1 3,961,096 3,961,096 - BCRA Liquidity Bill, maturity 10/1/2018 13251 1 149,258 149,258 - BCRA Bills, maturity 10/17/2018 46831 1 9,682 774,597 - BCRA Liquidity Bill, maturity 10/3/2018 13253 1 992 992 Sub - Total 9,575,200 10,340,115

Corporate securities in Argentina measured at fair value with changes through OCI

Book Position as Fair value balances Description Identification of level as of 9/30/2018 9/30/2018 - Fideicomiso Financiero CMR Falabella 70 Class B 53185 1 12,188 12,188 Sub - Total 12,188 12,188

Government securities abroad measured at fair value with changes through OCI

Book Position as Fair value balances Description Identification of level as of 9/30/2018 9/30/2018 - US Treasury Bill due, maturity 12/6/2018 - 1 119,673 119,673 Sub - Total 119,673 119,673

Government securities in Argentina measured at amortized cost

Book Position as Fair value balances Description Identification of level as of 9/30/2018 9/30/2018 - International Government Bonds of Argentina in US$ - 92581 - 67,200 67,200 6.25%, maturity 2019 - Córdoba Bills - Series 30, maturity 4/28/2019 42043 - 10,199 10,199 - International Government Bonds of Argentina in US$ - 92582 - 5,110 5,110 6.875%, maturity 2021 - Argentine Government Bonds in USD - 8.75%, 5458 - 3,021 3,021 maturity 2024 Sub - Total 85,530 85,530

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 45 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

BCRA bills in Argentina measured at amortized cost

Book Fair value Position as Description Identification balances as level of 9/30/2018 of 9/30/2018 - BCRA Bills, maturity 10/17/2018 46831 - 36,328 36,328 Sub - Total 36,328 36,328

Corporate securities Book Fair value Position as Description Identification balances as level of 9/30/2018 of 9/30/2018 - Fideicomiso Financiero Ribeiro 102 - Class “A” 53715 - 42,251 42,251 - Fideicomiso Financiero Ribeiro 101 - Class “A” 53644 12,389 12,389 Sub - Total 54,640 54,640

Total other debt securities as of 9/30/2018 16,045,322 17,571,192

Information as of December 31, 2017 Government securities in Argentina measured at fair value with changes through OCI Book Position as Fair value balances Description Identification of level as of 12/31/2017 12/31/2017 - Treasury bills in USD, maturity 4/13/2018 5230 1 481,119 481,119 - Treasury bills in USD, maturity 1/26/2018 5224 2 467,748 467,748 - International Government Bonds of Argentina in US$ 92582 1 269,774 269,774 6.875%, maturity 2021 - Treasury bills in USD, maturity 2/9/2018 5227 2 254,234 254,234 - Treasury bill in USD, maturity 6/29/2018 5228 1 212,557 212,557 - Treasury bill in USD, maturity 3/16/2018 5235 1 142,312 142,312 - Treasury bill in USD, maturity 6/15/2018 5225 1 141,346 141,346 - Argentine Government Bond in $ - private BADLAR + 5454 2 85,082 85,082 250.B.P, maturity 2019 - Debt security, Class 1, Province of Rio Negro, 32922 2 58,449 58,449 maturity 2020 - Debt security, Province of Río Negro, C.1 S.6, 32970 2 58,283 58,283 maturity 2018 - Other 187,194 187,194 Sub - Total 2,358,098 2,358,098

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 46 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

BCRA Bills in Argentina measured at fair value with changes through OCI

Book Position as Fair value balances Description Identification of level as of 12/31/2017 12/31/2017 - BCRA Bills- Maturity 6/21/2018 46827 1 6,059,256 6,314,669 - BCRA Bills- Maturity 1/17/2018 46821 1 4,049,762 4,049,762 - BCRA Bills- Maturity 5/16/2018 46825 1 468,289 638,368 - BCRA Bills- Maturity 2/21/2018 46822 1 96,472 125,413 - BCRA Bills- Maturity 3/21/2018 46823 1 2,557 69,123 Sub - Total 10,676,336 11,197,335

Government securities in Argentina measured at amortized cost Book Position as Fair value balances Description Identification of level as of 12/31/2017 12/31/2017 - - International Government Bonds of Argentina in 92581 - 29,634 29,634 US$ - 6.25%, maturity 2019 Sub - Total 29,634 29,634

BCRA bills in Argentina measured at amortized cost

Book Fair value balances as Position as Description Identification level of of 12/31/2017 12/31/2017 - BCRA Bills- Maturity 5/16/2018 46825 - 46,038 46,038 - BCRA Bills, maturity 6/21/2018 46827 - 20,036 20,036 - BCRA Bills, maturity 1/17/2018 46821 - 7,712 7,712 Sub - Total 73,786 73,786

Government securities abroad measured at fair value with changes through OCI

Book Position as Fair value balances Description Identification of level as of 12/31/2017 12/31/2017 - US Treasury Bill due, maturity 2018 - 1 46,787 46,787 Total 46,787 46,787

Total other debt securities as of 12/31/2017 13,184,641 13,705,640

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 47 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos) Information as of December 31, 2016 Government securities in Argentina measured at fair value with changes through OCI

Book Position as Fair value balances Description Identification of level as of 12/31/2016 12/31/2016 Treasury bills in USD, maturity 3/20/2017 5199 2 1,274,244 1,274,244 Treasury bills in USD, maturity 04/ 2017 5200 1 315,455 315,455 - Argentine Government Bond in USD - 0.75%, maturity 5466 2 297,912 297,912 2017 - International bonds of Argentina In USD 6.875%, 92582 1 222,888 222,888 maturity 2021 - Argentine Treasury Bonds in $, maturity 2017 5477 2 104,570 104,570 - Dollar-linked Argentine Government Bond - 0.75%, 5464 1 57,404 57,404 maturity 2017 - Treasury Bills, Class 1, 1st Series, maturity 2020 32777 2 50,578 50,578 - Argentine Government Bond in $ - Badlar, maturity 5476 1 25,782 25,782 2035 - Bills of Entre Ríos 2016 Series IX - Class A, maturity 32821 2 17,621 17,621 2017 Treasury bills in USD, maturity 1/30/2017 5193 1 25,781 25,781 - Other 84,475 182,930 Sub - Total 2,476,710 2,575,165

BCRA Bills in Argentina measured at fair value with changes through OCI Book Position as Fair value balances Description Identification of level as of 12/31/2016 12/31/2016 - BCRA Bills- Maturity 1/18/2017 46796 2 1,606,729 1,606,729 - BCRA Bills, maturity 1/4/2017 46790 2 1,014,538 1,014,538 - BCRA Bills maturity 2/1/2017 46773 2 923,154 923,154 - BCRA Bills, maturity 5/31/2017 46812 2 748,417 748,417 - BCRA Bills, maturity 1/25/2017 46799 2 717,472 717,472 - BCRA Bills, maturity 5/24/2017 46811 2 597,684 689,635 - BCRA Bills, maturity 1/11/2017 46793 2 572,207 572,207 - BCRA Bills, maturity 3/22/2017 46802 2 550,175 550,175 - BCRA Bills, maturity 7/19/2017 46814 2 517,681 535,532 - BCRA Bills, maturity 4/26/2017 46807 2 438,799 466,807 - Other 1,298,010 1,298,010 Sub - Total 8,984,866 9,122,676

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 48 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Corporate securities in Argentina measured at fair value with changes through OCI

Book Position as Fair value balances Description Identification of level as of 12/31/2016 12/31/2016 - Fideicomiso Financiero CMR Falabella 58 51450 2 148 148 Sub - Total 148 148

Corporate securities abroad measured at fair value with changes through OCI

Book Position as Fair value balances Description Identification of level as of 12/31/2016 12/31/2016 - ON Banco do Brasil 3.875% - Maturity 1/23/2017 - 2 24,212 24,212 Sub - Total 24,212 24,212

BCRA bills in Argentina measured at amortized cost

Book Fair value balances as Position as Description Identification level of of 12/31/2016 12/31/2016 - BCRA Bills- Maturity 1/11/2017 46793 - 26,835 26,835 - BCRA Bills, maturity 2/1/2017 46773 - 3,138 3,138 Sub - Total 29,973 29,973

Total other debt securities as of 12/31/2016 11,515,909 11,752,174

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 49 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 14 – FINANCIAL ASSETS GRANTED AS COLLATERAL Financial assets granted as collaterals as of September 30, 2018, December 31, 2017 and 2016 are broken down as follows: 9/30/2018 12/31/2017 12/31/2016 Special guarantee accounts (*) 1,166,557 895,593 641,528 BCRA - Financial trust under guarantee of OCT 1,256,083 300,875 153,087 - Treasury bills in USD, maturity 2/8/2019 760,955 - - - BCRA Bills- Maturity 10/17/2018 487,028 - - - Pesos under guarantee 8,100 - - - Other - 300,875 153,087 Security deposits – Credit and debit card 412,721 291,862 189,215 managers

Government securities – IADB loan – Global Credit Program for micro-, small- and medium- 277,887 225,811 111,910 sized enterprises - BCRA Bills, maturity 10/17/2018 277,887 - - - Other - 225,811 111,910 Other security deposits 14,398 22,495 18,342 Total 3,127,646 1,736,636 1,114,082

(*) Granted as collateral and held with the BCRA and Banco Central de Uruguay (see Note 45).

NOTE 15 - INCOME TAX a) Current income tax assets and liabilities; Breakdown is as follows: 9/30/2018 12/31/2017 12/31/2016 Current income tax assets 40,734 188 128

Current income tax liabilities 1,027,791 871,381 843,630 Tax provision 1,976,797 1,975,067 1,602,113 Advances (943,973) (1,099,847) (758,366) Withholdings and collections (5,033) (3,839) (117)

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 50 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos) b) Income tax expense: The income tax expense is assessed by multiplying the income before income tax for the interim period by the best estimate made by Management of the annual effective tax rate that is expected for the fiscal year, adjusted by the effect for tax purposes of certain items fully recognized during the period The Group's effective rate for the nine-month periods ended September 30, 2018 and 2017 was 29.6% and 34.5%, respectively. The change in the effective rate was mainly caused by the reduction in the income tax rate on unappropriated retained earnings established on December 29, 2017 within the framework of the tax reform. The reduction in the corporate income tax rate will be gradually implemented from 35% in year 2017 to 25% in 2020. Income tax expense is broken down as follows: 9/30/2018 9/30/2017 Current tax 2,032,207 1,646,753 Deferred tax (488,515) (299,019) Income tax expense 1,543,692 1,347,662

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 51 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 16 – INVESTMENTS IN EQUITY INSTRUMENTS

Investments in equity instruments, in which the Group does not have control, joint control or significant influence are measured at fair value with changes through profit or loss. Breakdown is as follows: Information as of September 30, 2018 Fair value Book balances Position as of Description level as of 9/30/2018 9/30/2018 - Banco Latinoamericano de Comercio Exterior S.A. 1 4,294 4,294 - Mercado de Valores de Buenos Aires S.A. 1 2,095 2,095 - Seguro de Depósitos S.A. 2 493 493 - Society for Worldwide Interbank Financial Telecommunication 2 149 149 - Mercado a Término de Buenos Aires S.A. 2 73 73 - Bolsa de Comercio de Mar del Plata S.A. 2 56 56 - Argencontrol S.A. 2 53 53 - Sanatorio Las Lomas S.A. 2 47 47 - Celta Coop. Obras Ser. Tres Arroyos 2 12 12 - Coop. Eléctrica Ltda. de Claromecó 2 1 1 - Banelsip S.A. (*) 2 - - Total 7,273 7,273

(*) As of September 30, 2018, the investment in such company is recorded in the amount of $375.00, and it was sold on October 5, 2018.

Information as of December 31, 2017 Book balances Position as of Description Fair value level as of 12/31/2017 12/31/2017 - Grupo Financiero Valores S.A. 2 12,361 12,361 - Seguros de Depósitos S.A. 2 493 493 - Banco Latinoamericano de Comercio Exterior S.A. 2 344 344 - Compensadora Electrónica S.A. 2 89 89 - Miralejos S.A.C.F. y Agropecuaria 2 78 78 - Mercado a Término de Buenos Aires S.A. 2 73 73 Society for Worldwide Interbank Financial Telecommunication 2 66 66 - Bolsa de Comercio de Mar del Plata S.A. 2 56 56 - Argencontrol S.A. 2 53 53 - Sanatorio Las Lomas S.A. 2 47 47 - Celta Coop. Obras Ser. Tres Arroyos 2 12 12 - Coop. Eléctrica Ltda. de Claromecó 2 1 1 - Banelsip S.A. (*) 2 - - Total 13,673 13,673

(*) As of December 31, 2017, the investment in such company is recorded in the amount of $375.00.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 52 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Information as of December 31, 2016 Book Position as Fair value balances Description of level as of 12/31/2016 12/31/2016 - Grupo Financiero Valores S.A. 2 2,064 2,064 - Seguros de Depósitos S.A. 2 493 493 - Banco Latinoamericano de Comercio Exterior S.A. 2 291 291 - Compensadora Electrónica S.A. 2 89 89 - Miralejos S.A.C.F. y Agropecuaria 2 76 76 - Mercado a Término de Buenos Aires S.A. 2 73 73 - Mercado Abierto Electrónico S.A. 2 65 65 - Bolsa de Comercio de Mar del Plata S.A. 2 56 56 - Argencontrol S.A. 2 53 53 - Sanatorio Las Lomas S.A. 2 47 47 - SWIFT - Society for Worldwide Interbank Financial Telecommunication 2 49 49 - Banelsip S.A. (*) 2 - - - Other 2 96 96 Total 3,452 3,452

(*) As of December 31, 2016, the investment in such company is recorded in the amount of $375.00.

NOTE 17 – INVESTMENT IN SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES

The Group holds investments in the following entities over which it has significant influence, therefore, they are measured by applying the equity method:

Breakdown 9/30/2018 12/31/2017 12/31/2016 Interbanking S.A. 89,090 79,949 67,836 Mercado Abierto Electrónico S.A. 16,167 9,220 3,809 Compensadora Electrónica S.A. 2,483 - - Provincanje S.A. 1,068 72 271 Prisma Medios de Pago S.A. (*) - 99,469 42,574 Total 108,808 188,710 114,490

(*) As of March 31, 2018, the investment in Prisma Medios de Pago S.A. was classified as Non current assets held for sale (see Note 21).

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 53 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 18 – PROPERTY, PLANT AND EQUIPMENT

The changes in this account as of September 30, 2018, December 31, 2017 and December 31, 2016 are disclosed in Exhibit “F”– Changes in property, plant and equipment to these financial statements.

Additionally, as mentioned in Note 5.6 to these financial statements, the Group adopted the revaluation method as the accounting policy applicable to all real estate of its own.

In compliance with the referred accounting policy, the Group hired the services of an independent expert in appraisals for the determination of the fair values and revaluation of the useful life of the real estate.

To determine the useful life, the market approach was used, which assumes that a well-informed purchaser shall not pay for an asset more than the purchase price of another similar asset, that is, the value is indicated by comparing the asset with other similar assets.

The assets subject to revaluation are frequently negotiated, and to the date of this analysis, units with market prices were available, or else, the independent appraiser was able to obtain the opinion of brokers or real estate professionals in the areas surrounding each piece of property. Therefore, there was a stable market of real estate of a similar nature offered for sale in order to determine the fair value by using the market approach.

Given that the revaluation of real estate (considered as a non recurrent valuation) is based on unobservable market data, a level 3 Fair value is provided.

Changes in the residual value of real estate compared to the residual value thereof if stated by applying the cost model and also considering the impact of re-estimating the related useful lives are shown in Exhibit “F”– Revaluation table, included in these consolidated financial statements.

NOTE 19 – INTANGIBLE ASSETS

Changes in this account as of September 30, 2018 and 2017 are disclosed in Exhibit “G”– Changes in Intangible assets to these financial statements.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 54 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos) NOTE 20 – OTHER NON FINANCIAL ASSETS

Item 9/30/2018 12/31/2017 12/31/2016 Advance payments 234,917 221,219 160,076 Assets acquired as security for loans 45,440 - - Investment property 13,650 13,650 11,370 Other miscellaneous assets 8,319 13,150 13,639 Works of art 3,691 3,691 3,649 Other 9,977 11,309 25,431 Total 315,994 263,019 214,165

Changes in the account Investment property including in Other non financial assets as of September 30, 2018 and 2017 are shown in Exhibit “F” – Changes in Investment property to these financial statements.

Additionally, for the valuation thereof, the criteria informed in Note 18 above have been applied.

NOTE 21 – NON CURRENTASSETS HELD FOR SALE Investment in associates:

As of September 30, 2018, the Group has recorded its interest in Prisma Medios de Pago S.A. in the amount of 136,083 as an asset held for sale, as approved by the Board of Directors of Banco Patagonia at the meeting held on November 7, 2017.

Land and buildings:

As of December 31, 2017, the Group held a piece of property located in the City of Buenos Aires, registered as an asset held for sale in the amount of 34,383, which was carried out in May 2018.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 55 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos) NOTE 22 - DEPOSITS Information about this account as of September 30, 2018, December 31, 2017 and 2016 is disclosed in Exhibit “H”– Deposits concentration to these financial statements.

Breakdown of deposits of nonfinancial private sector and foreign residents is as follows:

Item 9/30/2018 12/31/2017 12/31/2016 Checking accounts 9,049,234 9,178,556 7,104,149 Savings accounts 40,817,909 30,054,516 18,272,215 Time deposit and investments 34,132,555 22,518,949 18,502,171 Investment accounts 805 673 6,209 Other 4,531,022 2,150,867 4,603,706 Interest and adjustment 858,714 478,954 427,775 Total 89,390,239 64,382,515 48,916,225

NOTE 23 – OTHER FINANCIAL LIABILITIES Other financial liabilities are measured at amortized cost and they are broken down as follows:

Item 9/30/2018 12/31/2017 12/31/2016 Credit card charges payable 2,913,985 3,044,454 1,885,381 Payables from spot purchase of government 350,361 538,402 10,535 securities to be settled Payables from spot purchase of foreign currency to 39,800 18,885 - be settled Payables from foreign trade transactions 1,420,000 648,934 475,493 Collections on account and on behalf of third parties 1,513,964 173,255 161,673 Sundry payables 1,005,602 1,596,139 693,895 Total 7,243,712 6,020,069 3,226,977

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 56 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 24 – FINANCING FACILITIES RECEIVED FROM BCRA AND OTHER FINANCIAL INSTITUTIONS Financial facilities received from BCRA and other financial institutions are measured at amortized cost and they are broken down as follows: Breakdown 9/30/2018 12/31/2017 12/31/2016 Financing facilities received from foreign financial institutions 4,053,159 1,164,678 1,556,011 Financing facilities received from local financial institutions 1,339,377 1,195,080 735,023 BCRA 16,987 13,004 12,513 Total 5,409,522 2,372,762 2,303,547

NOTE 25 – CORPORATE BONDS ISSUED The programs for the issue of corporate bonds currently in force are as follows: 1. Program for the issue of corporate bonds of Banco Patagonia S.A. approved by the CNV on October 25, 2012

The Annual Shareholders’ Meeting of Banco Patagonia S.A., held on April 26, 2012, approved the creation of a Global Program for the Issue of Simple Corporate Bonds for a maximum amount, outstanding at any time, of up to USD 250,000,000 or its equivalent in other currencies.

The Program has a duration of 5 years as from CNV’s authorization or for the maximum term that may be established by future applicable regulations; in that case, the Board of Directors of the Bank may decide to extend the effective term thereof.

In addition, the Bank’s Board of Directors decided that the funds from corporate bonds issued under such program shall be used for one or more of the purposes under section 36, Law No. 23576, and BCRA Communication “A” 3046, or as established in applicable regulations, depending on the related pricing appendix.

Due to the expiration of the term of the Global Program for the Issue of Simple Corporate Bonds in force, the Annual Shareholders’ Meeting held on April 26, 2017 approved the extension of such program pursuant to CNV rules, as well as an increase in the maximum amount, outstanding, as follows: a) Duration of 5 years as from CNV’s authorization or the maximum term that may be established by future applicable regulations;

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 57 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos) b) Different classes and/or series of corporate bonds may be issued, denominated in US dollars or other currencies and the successive classes or series amortized may be re-issued; c) The amount of U$S 500,000,000 or its equivalent in other currencies shall be the maximum amount outstanding during the effective term of the program; and d) The funds from the placement of corporate bonds to be issued under the program shall be used for one or more of the purposes under section 36, Law No. 23576, as amended, and the Borrowing Transactions Rules, Placement of Debt Securities, of the BCRA or any applicable regulations, depending on the related pricing appendix.

On September 14, 2017 the CNV issued Resolution 18933 by which it decided the increase in the maximum amount and the extension of such program.

2. GPAT´s program for the issue of corporate bonds approved by CNV on February 11, 2011

The Argentine Securities Commission Resolution No. 15868, dated April 30, 2008, authorized the initial public offering of GPAT Compañía Financiera S.A.U. through the establishment of a global program for the issuance of simple, non-convertible into stock, corporate bonds up to the amount of $ 400,000,000, or its equivalent in other currencies.

On July 24, 2008, the Argentine Securities Commission was informed that the Corporate Bonds subscription period would be suspended and that GPAT may, at its sole discretion, restart it.

On January 4, 2011, the Board of Directors of GPAT decided to revive the simple corporate bonds program and to make an addendum to the Prospectus that had been duly published. Additionally, the Board decided to apply to the CNV for authorization of the global program for the issue of corporate bonds and the issuance of short-term corporate bonds under such program.

On January 26, 2012, the Board of Directors of GPAT requested the CNV to enlarge the program from $ 400,000,000 to $ 800,000,000, being approved by the CNV on February 28, 2012.

Lately, on October 25, 2012, the CNV approved the enlargement of the program for the issue of corporate bonds from $ 800,000,000 to $ 1,500,000,000 and its extension for a 5-year term as from the above date. Funds obtained under this issuance were applied to grant consumer loans.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 58 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

On January 3, 2017, the Board of Directors of GPAT proposed the enlargement of the global program for the issue of simple corporate bonds in force from $ 1,500,000,000 to $ 3,000,000,000 and its extension for a 5-year term. The enlargement and extension were approved by the Shareholders’ Annual General Meeting called on January 18, 2017 and approved by the CNV on April 12, 2017.

The issues in force under both programs are as follows:

Issued Balance as Balance as Date of Maturity Balance as Issue value Annual nominal rate of of issue date of 9/30/2018 ARS 12/31/2017 12/31/2016 Banco Patagonia S.A. Series I, Class III 332,200 Badlar + 3.75% 7/21/2015 1/23/2017 - - 348,168

GPAT Compañía Financiera S.A.U. Series XX Mixed 28.50% (3/11/2016) - 125,000 9/11/2015 3/11/2017 - - 116,362 Class Badlar + 4.25% Series XXI Class B 250,000 Badlar + 4.25% 1/22/2016 7/22/2017 - - 262,041 Series XXII Class B 155,000 Badlar + 5.00% 4/8/2016 10/8/2017 - - 163,196 32.00% (9/14/2016) - Series XXIII Class A 106,500 6/14/2016 12/14/2017 - - 104,230 Badlar + 3.25% 33.00% (9/14/2016) - Series XXIII Class B 188,889 6/14/2016 6/14/2019 177,536 180,236 179,968 Badlar + 3.50% Series XXIV 200,000 23,95% 9/23/2016 9/23/2017 - - 200,197 Series XXV 221,000 24,00% 11/8/2016 5/8/2018 - 207,264 205,775 Series XXVI Class A 197,143 22,49% 1/24/2017 1/24/2018 - 205,266 - Series XXVI Class B 52,857 Badlar + 3.44% 1/24/2017 1/24/2019 57,011 55,191 - Series XXVII Class A 120,556 Badlar + 2.99% 5/10/2017 11/10/2018 106,359 124,307 - Series XXVII Class B 177,500 Badlar + 3.50% 5/10/2017 5/10/2020 167,801 162,201 - Series XXVIII Class 276,667 Badlar + 3.48% 6/27/2017 12/27/2018 242,783 251,473 - A Series XXVIII Class 123,333 Badlar + 3.97% 6/27/2017 6/27/2020 123,495 123,148 - B Series XXIX 378,125 26,00% 8/4/2017 8/4/2018 - 392,220 - Series XXX Class A 308,889 27,45% 10/5/2017 10/5/2018 327,971 327,918 - 27.50% (04/05/18) - Series XXX Class B 191,111 10/5/2017 10/5/2020 209,485 201,790 - Badlar + 4.17% Series XXXI Class A 500,000 25,77% 2/6/2018 2/6/2019 476,027 - - Series XXXII Class A 450,000 25,75% 4/25/2018 10/25/2019 463,706 - - Total 2,352,174 2,231,014 1,579,937

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 59 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 26 - ALLOWANCES AND PROVISIONS They have been set up to cover the amounts estimated necessary to face risks of probable occurrence, which, if verified, will result in a loss to the Group. Changes in allowances and provisions for the nine-month period ended September 30, 2018 and 2017 are disclosed in Exhibit “J” Changes in allowances and provisions to these financial statements.

Due to the nature of its business, the Group has several pending lawsuits, for which provisions are set up when, in the opinion of Management and its legal counsels, it is likely that they may result in an additional liability and the amount may be reasonably estimated. According to the Group’s Management and its legal counsels, no provision has been set up for all other legal actions against the Group because they will not result in additional liabilities to those already recorded or will not have a material impact on the Group's financial statements.

Note 50 includes, as requested by the BCRA, all administrative, disciplinary and criminal sanctions, with or without judgment rendered in a court of original jurisdiction, imposed by the BCRA, UIF, CNV and SSN regardless of whether they are probable, possible or remote.

The Group’s Management and its legal counsels consider that in the cases where the possibility of any outflow in settlement is possible, none of these matters are material and there are no significant effects other than those disclosed in these financial statements.

NOTE 27 – OTHER NON FINANCIAL LIABILITIES

Other non financial liabilities are measured at amortized cost and they are broken down as follows:

Item 9/30/2018 12/31/2017 12/31/2016 Withholdings and collections 480,787 480,896 517,067 Payroll and social security contributions 671,243 517,324 367,506 payable Other taxes payable 468,963 283,872 203,301 Other short term employees’ benefits payable 296,517 211,253 121,318 Social security payment orders 203,545 125,440 105,549 Advance payments received 332,495 20,298 31,642 Prepayments received for sale of assets 6,580 70,604 407 Payroll withholdings payable 32,453 44,026 58,720 Directors and supervisory auditors’ fees 1,864 2,919 1,932 payable Other 462,195 332,227 296,475 Total 2,956,642 2,088,859 1,703,917

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 60 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 28 – SHARE CAPITAL a) Capital structure

The Bank’s capital stock is made up of 719,145,237 shares, comprising 22,768,818 Class "A" shares and 696,376,419 Class "B" shares, all of them registered, common shares with a nominal value of ARS 1, and one vote per share.

Class “A” shares represent the ownership interest held by the Province of Río Negro, whereas Class “B” shares account for the ownership interest held by private capital.

As from April 12, 2011, the Bank's controlling shareholder is Banco do Brasil S.A., which has a shareholding of 58.97% of the total capital stock. b) Call and put options

On April 12, 2011, under the Stock Purchase Agreement entered into between Banco do Brasil S.A. and the group of former controlling shareholders of the Bank (Sellers), both parties signed a Shareholders' Agreement whereby, among other rights and duties, the parties granted certain call and put options to be exercised as from the third anniversary of such date, so that Banco do Brasil S.A. may acquire the ownership interest held by the Sellers in the Bank at the strike price equivalent to the US dollar price per share established in the Offering.

On June 15, 2018, the former group of controlling shareholders (Sellers) informed the Bank about the exercise of the put option of the total 154,014,912 shares entitled to them for the purchase by the controlling shareholder at the value agreed in the Shareholders’ Agreement referred to above.

Finally, having the conditions to exercise the put option been met, on September 6, 2018, the controlling shareholder increased its interest in the Bank, thus holding a total of 578,116,870 registered common class “B” shares with a nominal value of ARS 1 each and granting one vote per share, representing 80.39% of the outstanding capital stock and voting rights.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 61 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos) NOTE 29 – INTEREST INCOME

Breakdown is as follows:

Interest income 9/30/2018 9/30/2017 Notes 2,900,803 1,984,728 Consumer loans 2,610,119 1,829,582 Overdrafts 2,517,294 1,129,363 Government securities measured at fair value with changes 2,322,292 846,536 through OCI Credit cards 1,504,695 1,100,824 Other loans 1,090,774 468,917 Car loans 1,015,667 1,011,139 Loans to the financial sector 385,084 243,831 Finance lease 233,882 232,750 Premium on reverse repo transactions with the financial 141,176 730,875 sector Other 361,184 112,539 Total 15,082,970 9,691,084

NOTE 30 –INTEREST EXPENSE Breakdown is as follows:

Interest expense 9/30/2018 9/30/2017 Time deposits 4,659,087 2,811,206 Corporate bonds 529,913 294,516 Deposits in savings accounts 392,297 44,712 Financing facilities received from local financial institutions 241,179 174,702 (call) Premium on repo transactions with the financial sector 161,369 89,120 Other financing facilities received from financial institutions 68,041 53,418 Other 387,915 121,788 Total 6,439,801 3,589,462

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 62 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos) NOTE 31 – FEE INCOME Breakdown is as follows:

Fee income 9/30/2018 9/30/2017 Deposits 992,349 712,995 Credit and debit cards 817,853 748,900 Packages of products 523,546 365,980 Collections 233,677 154,531 Foreign trade 151,058 114,931 Insurance 90,112 83,308 Securities 42,468 21,049 Loans 41,680 89,827 Other 44,208 20,729 Total 2,936,951 2,312,250

NOTE 32 – FEE EXPENSES Breakdown is as follows:

Fee expenses 9/30/2018 9/30/2017 Government sector 128,276 65,787 Related to credit and debit cards 68,840 39,291 Collections 41,994 27,903 Transfers 25,853 19,496 Related to securities 20,792 11,202 Other 73,995 102,613 Total 359,750 266,292

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 63 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos) NOTE 33 – NET GAIN ON FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE WITH CHANGES THROUGH PROFIT OR LOSS

Breakdown is as follows: Net gain on financial instruments measured at fair value with changes through profit or loss 9/30/2018 9/30/2017 Government securities and instruments issued by the BCRA 932,267 722,395 Forward foreign currency transactions 116,852 138,570 Corporate bonds 10,081 9,802 Corporate securities 1,383 9,506 Total 1,060,583 880,273

NOTE 34 – GOLD AND FOREIGN CURRENCY QUOTED PRICE Breakdown is as follows:

Gold and foreign currency quoted price difference 9/30/2018 9/30/2017 Gains from purchase-sale of foreign currency 756,100 328,000 Translation into Argentine pesos of foreign currency assets (154,749) 15,162 and liabilities Total 601,351 343,162

NOTE 35 – OTHER OPERATING INCOME Breakdown is as follows:

Other operating income 9/30/2018 9/30/2017 Commission-related 670,613 604,424 Commissions from lease of safe-deposit boxes 151,880 121,349 Recovered receivables 96,865 39,730 Proceeds from the sale of property, plant and equipment 94,671 7,890 Punitive interest 46,006 29,204 Other 452,620 414,062 Total 1,512,655 1,216,659

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 64 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 36 – EMPLOYEE BENEFITS Breakdown is as follows:

Employee benefits 9/30/2018 9/30/2017 Salaries 2,515,821 2,008,517 Social security contributions 532,695 433,916 Other benefits 121,467 43,102 Services to personnel 101,085 70,556 Severance payments 91,020 59,147 Total 3,362,088 2,615,238

NOTE 37 – ADMINISTRATIVE EXPENSES Breakdown is as follows:

Administrative expenses 9/30/2018 9/30/2017 Taxes 396,110 294,446 Maintenance, conservation and repair expenses 395,191 245,777 Armored vehicle services 208,827 193,630 Fees 196,271 165,393 Advertising and marketing 174,156 136,669 Leases 170,990 131,609 Surveillance services 158,637 142,602 Electric power and communications 153,723 100,022 Entertainment and per diem expenses 26,340 21,072 Other 387,633 304,974 Total 2,267,878 1,736,194

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 65 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 38 – OTHER OPERATING EXPENSES Breakdown is as follows:

Other operating expenses 9/30/2018 9/30/2017 Turnover tax 1,268,743 838,813 Commission-related 689,093 585,341 Charge for other allowances 195,586 39,631 Contribution to the deposit guarantee fund 92,369 69,757 Other 207,182 292,876 Total 2,452,973 1,826,418 NOTE 39 – FAIR VALUE OF FINANCIAL INSTRUMENTS a) Assets and liabilities measured at fair value The fair value hierarchy of assets and liabilities measured at fair value as of September 30, 2018 is as follows: Fair value Fair value with Book Amortized with changes Item changes Level 1 Level 2 Level 3 balance cost through through profit or loss OCI Financial assets Debt securities measured at fair 116,006 - - 116,006 109,492 6,514 - value with changes through profit or loss Derivative financial 400,648 - - 400,648 - 400,648 - instruments Other debt securities 16,045,322 176,498 15,868,824 - 12,709,409 3,159,415 - Financial assets 3,127,646 1,931,228 - 1,196,418 - 1,196,418 - granted as collaterals Investments in equity 7,273 - - 7,273 2,095 5,178 - instruments Total 19,696,895 2,107,726 15,868,824 1,720,345 12,820,996 4,768,173 -

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 66 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Fair value Fair value with with Book Amortized changes Level Item changes Level 1 Level 2 balance cost through 3 through profit or OCI loss Financial liabilities Liabilities measured at fair value with 172,481 - - 172,481 172,481 - - changes through profit or loss Derivative financial 1,113,876 - - 1,113,876 - 1,113,876 - instruments Total 1,286,357 - - 1,286,357 172,481 1,113,876

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 67 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

The fair value hierarchy of assets and liabilities measured at fair value as of December 31, 2017 is as follows: Fair value Fair value with with Book Amortized changes Level Item changes Level 1 Level 2 balance cost through 3 through profit or OCI loss Financial assets Debt securities measured at fair value with changes 438,106 - - 438,106 417,924 20,182 - through profit or loss Derivative financial 34,201 - - 34,201 - 34,201 - instruments Other debt securities 13,184,641 150,207 13,034,434 - 12,171,138 863,296 - Financial assets granted 1,736,636 1,196,936 539,700 - 539,700 - - as collaterals Investments in equity 13,673 - - 13,673 2,889 10,784 - instruments Total 15,407,257 1,347,143 13,574,134 485,980 13,131,651 928,463 -

Financial liabilities Liabilities measured at fair value with changes 124,934 - - 124,934 124,934 - - through profit or loss Derivative financial 14,058 - - 14,058 - 14,058 - instruments Total 138,992 - - 138,992 124,934 14,058 -

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 68 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

The fair value hierarchy of assets and liabilities measured at fair value as of December 31, 2016 is as follows: Fair value Fair value with with Book Amortized changes Item changes Level 1 Level 2 Level 3 balance cost through through profit or OCI loss Financial assets Debt securities measured at fair value 946,733 - - 946,733 451,969 494,764 - with changes through profit or loss Derivative financial 10,312 - - 10,312 - 10,312 - instruments Other debt securities 11,515,909 29,973 11,485,936 - 1,103,799 10,382,137 - Financial assets 1,114,082 877,817 236,265 - 98,455 137,810 - granted as collaterals Investments in equity 3,452 - - 3,452 - 3,452 - instruments Total 13,590,488 907,790 11,722,201 960,497 1,654,223 11,028,475 -

Financial liabilities Derivative financial 11,606 - - 11,606 - 11,606 - instruments Total 11,606 - - 11,606 - 11,606 -

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 69 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos) b) Transfers between hierarchy levels b.1) Transfers from level 1 to level 2 The following instruments measured at fair value were transferred from Level 1 to Level 2 of the fair value hierarchy: Breakdown 9/30/2018 12/31/2017 Consolidation bonds 8th Series 1,959 - Argentine Government Bond in ARS - Private Badlar + 325 bps. 737 - Maturity 2020 Argentine Treasury Bonds in $ adjusted by CER, maturity 2020 74 - Total 2,770 - These holdings were included in hierarchy level 1 as of December 31, 2017, and as of September 30, 2018, they were measured at fair value using yield curves for securities related to the same type of instrument, with the regular and habitual quoted price and of similar duration. b.2) Transfers from level 2 to level 1 The following instruments measured at fair value were transferred from Level 2 to Level 1 of the fair value hierarchy: Breakdown 9/30/2018 12/31/2017 Guaranteed Bond – Decree No. 1579/02 - 19,799 Consolidation bonds 8th Series - 1,915 Par bonds $ STEP UP 2038 - 1,096 Argentine Treasury Bonds in $ adjusted by CER, maturity 2020 - 60 Total - 22,870 These holdings were included in hierarchy level 2 as of December 31, 2016, and as of December 31, 2017; they were carried at fair value by using the quoted prices in active markets. b.3) Valuation techniques of Levels 2 and 3 Below is a description of the financial instruments carried at fair value using valuation techniques based on observable market data (Level 2):

Financial assets and liabilities measured at fair value : it mainly includes provincial debt securities and Treasury Bills in USD carried at fair value using yield curves for securities related to the same type of instrument, with the regular and habitual quoted price of similar duration.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 70 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos) Derivative financial instruments: it includes the fair value of forward transactions with settlement upon maturity of the transaction, estimated as the difference between the agreed-upon values and market prices, discounted at measurement date.

The Group’s portfolio does not include financial instruments carried at fair value determined by applying Level 3 valuation techniques. Fair value of financial assets and liabilities not measured at fair value Below we describe the main financial instruments not measured at fair value, when there are no quoted prices in the active markets for such instrument, and the methodologies and assumptions used to determine their fair value. • Assets and liabilities whose fair value is similar to the carrying amount For financial assets and liabilities that have short-term maturities (less than three months), it is considered that the carrying amount is similar to the fair value. This assumption is also applied to savings accounts, checking accounts and other deposits. • Fixed-rate financial instruments The fair value of financial assets was determined by discounting future cash flows at the market rates offered at each measurement date, for financial instruments of similar characteristics. The estimated fair value of fixed-interest rate deposits was determined by discounting future cash flows by using market interest rates for deposits with maturities similar to those of the Bank’s portfolio. • Variable-rate financial instruments The fair value of financial assets and liabilities accruing a variable rate was determined by discounting the estimated future cash flows considering the variable rate contractually applicable at measurement date, discounted by applying the market rates for financial instruments of similar characteristics and credit risk. The fair value hierarchy of assets and liabilities not measured at fair value as of September 30, 2018 is as follows:

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 71 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Accounting balance as FV FV FV FV Item of 09/30/2018 Total Level 1 Level 2 Level 3 Financial assets Cash and bank deposits 30,435,608 (1) - - - Repo transactions 877,206 (1) - - - Other financial assets 2,284,374 2,283,911 - - 2,283,911 Loans and other financing facilities 77,739,435 71,951,731 - - 71,951,731

Financial liabilities Deposits 99,620,501 97,587,278 - - 97,587,278 Repo transactions 183,611 (1) - - - Other financial liabilities 7,243,712 (1) - - - Financing facilities received from the (1) - - - BCRA and other financial institutions 5,409,522 Corporate bonds issued 2,352,174 2,079,066 - - 2,079,066

(1) The fair value is not reported because it is deemed to be similar to the carrying amount. The fair value hierarchy of assets and liabilities not measured at fair value as of December 31, 2017 is as follows: Accounting Total fair Item balance as of FV level 1 FV level 2 FV level 3 value 12/31/2017 Financial assets Cash and bank deposits 14,422,402 (1) - - - Repo transactions 952,850 (1) - - - Other financial assets 1,725,203 1,724,830 - - 1,724,830 Loans and other financing facilities 61,623,720 61,435,285 - - 61,435,285 Financial liabilities Deposits 69,062,590 69,479,982 - - 69,479,982 Repo transactions 1,857,080 (1) - - - Other financial liabilities 6,020,069 (1) - - - Financing facilities received from the BCRA and other financial 2,372,762 (1) - - - institutions Corporate bonds issued 2,231,014 2,150,015 - - 2,150,015

(1) The fair value is not reported because it is deemed to be similar to the carrying amount.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 72 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

The fair value hierarchy of assets and liabilities not measured at fair value as of December 31, 2016 is as follows: Accountin g balance Total fair Item FV level 1 FV level 2 FV level 3 as of value 12/31/2016 Financial assets Cash and bank deposits 10,885,200 (1) - - - Repo transactions 453,901 (1) - - - Other financial assets 322,415 311,590 - - 311,590 Loans and other financing facilities 44,812,000 42,986,822 - - 42,986,822 Financial liabilities Deposits 52,219,646 51,950,032 - - 51,950,032 Repo transactions 135,238 (1) - - - Other financial liabilities 3,226,977 (1) - - - Financing facilities received from the BCRA and other financial 2,303,547 (1) - - - institutions Corporate bonds issued 1,579,937 1,582,752 - - 1,582,752

(1) The fair value is not reported because it is deemed to be similar to the carrying amount.

NOTE 40 – TRANSFER OF FINANCIAL ASSETS

During the regular course of business, the Group performs transactions that involve the transfer of financial assets, mainly, loans and government securities. In accordance with the accounting policy described in Note 5.4 d), based on the transaction terms and conditions, the financial asset is still fully recognized or derecognized. A transferred asset that is not derecognized arises from repo transactions representing sales agreements with subsequent repurchase. In these transactions, the Group sells financial instruments (usually, government securities) and simultaneously agrees to repurchase them at a fixed price at a given date. The Group still recognizes the instruments as a whole in the consolidated statement of financial position because it substantially holds all the risks and rewards of ownership. The consideration received is recognized as a financial asset and the obligation to repurchase the instrument is recognized as a financial liability.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 73 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos) The financial assets that have been transferred but not derecognized, together with the related financial liabilities as of September 30, 2018, December 31, 2017, and December 31, 2016 are reported below.

Item 9/30/2018 12/31/2017 12/31/2016 Securities receivable from repo transactions

involving government securities Government securities measured at fair value with 25,057 - - changes through profit or loss Government securities measured at fair value with 179,704 32,311 22,968 changes through OCI BCRA Bills measured at fair value with changes through 992 2,032,959 127,579 OCI Total 205,753 2,065,270 150,547

Sundry payables from repo transactions involving

government securities Government securities 182,711 28,764 20,518 BCRA Bills 900 1,828,316 114,720 Total 183,611 1,857,080 135,238

NOTE 41 – SEGMENT REPORTING The Group presents information to the highest authorities in terms of operating decision taking based on the following operating segments: - Individuals: this segment groups transactions of customers that are individuals. These customers mainly acquire the following products, among others: personal loans, credit cards, time deposits, and demand deposit accounts.

- Commercial: it groups transactions relating to credit facilities, transactional services and deposits granted to large, micro, medium and small-sized companies, and transactions performed with the Bank by the different national, provincial and municipal government agencies.

- Treasury and others: it groups transactions performed by customers from the financial sector, investment activities, derivatives, other funding transactions and subsidiaries.

For management information purposes, the balance sheet balances are those related to the average month and not those at period end, and the profit or loss for each segment were determined using the Bank's internal transfer rate. In order to reconcile the amounts with the financial statements, the difference between segment reporting and period-end balances is included in “Treasury and others”.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 74 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos) For the nine-month periods ended September 30, 2018 and 2017, there are no transactions with individual customers accounting for 10% or more of the Bank’s total revenues, or exploitations in geographical areas significant different from the country of main residence of the Bank (Argentina).

The following tables show information related to the Bank’s business segments:

• As of September 30, 2018, and December 31, 2017 and 2016 for the information related to the Bank’s financial position;

• For the nine-month periods ended September 30, 2018 and 2017 for the information related to the Bank's profit or loss.

Information as of September 30, 2018 Treasury Total Individuals Commercial and others as of 9/30/2018 Interest income/loss 3,451,002 3,021,401 2,278,975 8,751,378 Fee income/loss 975,400 1,433,285 108,232 2,516,917 Net gain on financial instruments measured at - 13,923 1,056,020 1,069,943 fair value through profit or loss Gold and foreign currency quoted price 322,851 310,440 138,090 771,381 difference Other operating income – net 75,184 53,138 344,863 473,185 Charge for Loan Losses (494,603) (483,591) (411,001) (1,389,195)

TOTAL OPERATING INCOME 4,329,834 4,348,596 3,515,179 12,193,609 Operating and administrative expenses (7,540,804)

Gain/loss on associates and joint ventures 310,885

Income tax (1,543,692) INCOME FOR THE PERIOD 3,419,998

Reconciliation with the statement of income Net income for the period as of 9/30/2018 as per statement of income 3,487,415 Reconciliation between management information and regulatory information (67,417) Total profit or loss reported in segments 3,419,998

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 75 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Treasury Total Individuals Commercial and others as of 9/30/2018 Loans 20,889,095 47,091,512 7,751,773 75,732,380 Other assets 2,096,178 839,606 50,473,988 53,409,772 TOTAL ASSETS 22,985,273 47,931,118 58,225,761 129,142,152

Deposits 50,385,632 30,288,672 12,903,422 93,577,726 Other liabilities 44,484 17,103 21,711,432 21,773,019 TOTAL LIABILITIES 50,430,116 30,305,775 34,614,854 115,350,745

Reconciliation with the statement of financial position

Assets as of 9/30/2018 as per the statement of financial position 134,742,368 Reconciliation between management information and regulatory information: - Loans - Other assets (2,007,055) (3,593,161) Total assets reported in segments 129,142,152

Liabilities as of 9/30/2018 as per the statement of financial position 120,473,919 Reconciliation between management information and regulatory information: - Deposits (6,042,775) - Other liabilities 919,601

Total liabilities reported in segments 115,350,745

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 76 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Information as of September 30, 2017 Treasury Total Individuals Commercial and others as of 9/30/2017 Interest income/loss 2,292,488 1,813,859 2,238,466 6,344,813 Fee income/loss 1,432,018 1,189,676 64,529 2,686,223 Net gain on financial instruments measured at - 3,055 885,959 889,014 fair value through profit or loss Gold and foreign currency quoted price 160,937 176,457 23,712 361,106 difference Other operating income – net 48,105 24,503 309,451 382,059 Charge for Loan Losses (290,117) (50,158) (125,333) (465,608)

TOTAL OPERATING INCOME 3,643,431 3,157,392 3,396,784 10,197,607 Operating and administrative expenses (6,173,335)

Gain/loss on associates and joint ventures 144,266

Income tax (1,645,007) INCOME FOR THE PERIOD 2,523,531

Reconciliation with the statement of income

2,571,503 Net income for the period as of 9/30/2017 as per statement of income Reconciliation between management information and regulatory information (47,972) Total profit or loss reported in segments 2,523,531

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 77 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Information as of December 31, 2017 Treasury Total Individuals Commercial and others as of 12/31/2017 Loans 18,087,187 33,542,594 8,644,793 60,274,574 Other assets 1,345,806 605,508 31,133,646 33,084,960 TOTAL ASSETS 19,432,993 34,148,102 39,778,439 93,359,534

Deposits 37,479,959 19,871,841 7,632,614 64,984,414 Other liabilities 40,918 17,792 16,614,611 16,673,321 TOTAL LIABILITIES 37,520,877 19,889,633 24,247,225 81,657,735

Reconciliation with the statement of financial position

Assets as of 12/31/2017 as per the statement of financial position 97,320,168 Reconciliation between management information and regulatory information: - Loans (1,349,146) - Other assets (2,611,488)

Total assets reported in segments 93,359,534

Liabilities as of 12/31/2017 as per the statement of financial position 84,856,886 Reconciliation between management information and regulatory information: - Deposits (4,078,176) - Other liabilities 879,025

Total liabilities reported in segments 81,657,735

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 78 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Information as of December 31, 2016

Treasury Total Individuals Commercial and others as of 12/31/2016 Loans 12,468,420 27,339,580 5,360,016 45,168,016 Other assets 1,630 1 27,687,601 27,689,232 TOTAL ASSETS 12,470,050 27,339,581 33,047,617 72,857,248

Deposits 28,614,677 15,872,010 6,421,033 50,907,720 Other liabilities 21,600 13,003 12,125,733 12,160,336 TOTAL LIABILITIES 28,636,277 15,885,013 18,546,766 63,068,056

Reconciliation with the statement of financial position

Assets as of 12/31/2016 as per the statement of financial position 73,119,873 Reconciliation between management information and regulatory information: - Loans 356,016 - Other assets (618,641)

Total assets reported in segments 72,857,248

Liabilities as of 12/31/2016 as per the statement of financial position 62,375,207 Reconciliation between management information and regulatory information: - Deposits (1,311,926) - Other liabilities 2,004,775

Total liabilities reported in segments 63,068,056

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 79 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 42 - SUBSIDIARIES Below there is information about the Bank’s subsidiaries as of September 30, 2018 and December 31, 2017:

Shares Percentage of Company Total capital Class Amount Possible votes stock Common Patagonia Valores S.A. 13,862,667 99,99% 99,99% stock Patagonia Inversora S.A. Sociedad Common 13,317,237 99,99% 99,99% Gerente Fondos Comunes de Inversión stock Common Banco Patagonia (Uruguay) S.A. I.F.E. 50,000 100,00% 100,00% stock Common GPAT Compañía Financiera S.A.U. (*) 86,837,083 100,00% 100,00% stock

Below there is information about the Bank’s subsidiaries as of December 31, 2016:

Shares Percentage of Company Total capital Class Amount Possible votes stock Common Patagonia Valores S.A. 13,862,667 99,99% 99,99% stock Patagonia Inversora S.A. Sociedad Common 13,317,237 99,99% 99,99% Gerente Fondos Comunes de Inversión stock Common Banco Patagonia (Uruguay) S.A. I.F.E. 50,000 100,00% 100,00% stock Common GPAT Compañía Financiera S.A.U. (**) 86,837,083 99,00% 99,00% stock

(*) On February 15, 2017, the Bank acquired the registered, common shares of GPAT Compañía Financiera S.A.U. with a nominal value of $836,700 that represent 1% of the Company’s share capital and obtained an ownership interest and voting stock equivalent to 100%.

(**) On July 11, 2018, the Supervisory Board of Companies registered the change of corporate name of the Company to “GPAT Compañía Financiera S.A.U.” in Book No. 90 of Corporations, under No. 12415. In addition, on September 19, 2018, the BCRA notified such change of corporate name through Communication “C” 80419.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 80 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 43 – RELATED PARTIES

All transactions with related parties (individuals and companies related to the Group) are described below.

Key management personnel

Pursuant to IAS 24, key management personnel are those persons having authority and responsibility for planning, directing, and controlling the activities of Banco Patagonia S.A., directly or indirectly. According to that definition, Directors are deemed as key personnel by the Bank.

The number of regular directors of the Board is established by the Shareholders’ Meeting, and ranges from seven to nine directors, appointed for a term of three fiscal years, with the possibility of being reappointed indefinitely. At present, the Board of Directors is made up of nine members.

Section 9 of the Bylaws sets forth that the Directors’ fees are established by the Shareholders’ Meeting, taking into account their responsibilities, the time devoted to the fulfillment of duties, their experience and professional reputation and the value of services provided by directors for the Bank's performance in the market. Additionally, Directors do not assume any executive positions at the Bank and, therefore, they do not earn any other remuneration, and the Bank's policy does not contemplate the possibility of granting other benefits such as equity interests.

The transactions with key management personnel, including their close relatives and related entities are as follows:

Item Balances as of Highest balance for the period/year (1) 9/30/2018 12/31/2017 12/31/2016 9/30/2018 12/31/2017 12/31/2016 Loans – loans to personnel - - 153 2 154 274 Loans – Credit cards 2,512 824 1,301 2,742 1,592 1,345 Loans - Other advances - 213 - 8 580 2,729 Loans – documented loans - - - - - 27,035 Deposits received 508,058 17,771 12,213 538,673 55,094 12,213

Guarantees granted - - 119 - - 119

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 81 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

(1) Due to the large quantity of transactions, particularly, in the checking accounts and deposits, the Bank considers that presenting the maximum balance for the period is the best indicator of the transactions performed during the period.

The loans and deposits were agreed in accordance with the market conditions applicable to other clients of the Bank. Total fees received by the Board of Directors for the nine-month period ended September 30, 2018 and 2017 amounted to 69,393 and 59,493, respectively.

Banco do Brasil S.A.

Banco do Brasil S.A. is a financial institution organized under the laws of Brazil and is the Bank's majority shareholder. Balances as of Highest balance for the period/year (1) Item 9/30/2018 12/31/2017 12/31/2016 9/30/2018 12/31/2017 12/31/2016 Cash and cash equivalents– balances in other financial 103,597 4,890 38,718 103,597 51,604 60,857 institutions Other receivables 368 94,772 79,694 258,918 260,173 107,148 Deposits 8,259 4,498 213 8,274 21,267 24,041 Financing facilities received 41,014 - - 41,014 - 1,731,561 from financial institutions Guarantees granted (2) 70,751 17,460 30,179 70,751 31,604 30,179 Guarantees received (3) 163,587 75,097 58,646 163,587 75,097 178,280

(1) Due to the large quantity of transactions, the Bank considers that presenting the maximum balance for the period is the best indicator of the transactions performed during the period. (2) It is related to guarantees granted to Banco do Brasil S.A. (3) It is related to credit letter granted by Banco do Brasil S.A. to clients of the Bank.

Transactions with Banco do Brasil S.A. are performed on an arm’s length basis.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 82 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Profit or loss for the nine-month periods ended September 30, 2018 and 2017 were as follows:

Nine-month period ended Item 9/30/2018 9/30/2017

Interest income 7,034 2,425 Interest expense 47 - Fee income 1 3 Fee expenses 12 - Other operating income 406 399

Province of Río Negro

As provided for in the Bank’s by-laws, the province of Río Negro, sole shareholder holding Class A shares, is empowered to appoint a director for Class A shares, as long as it owns, at least, one share of that class. Since 1996, the Bank has been acting as financial agent of the Province of Río Negro, by virtue of the agreement signed in 1996.

On December 22, 2016, the Executive Branch of the Province of Rio Negro issued Decree 2140 whereby, it organized a bidding process for the selection and subsequent hiring of the Financial Agent of the Province of Río Negro for a term of ten years, to be extended for a five-year period, unless otherwise decided by any of the parties.

The bidding process schedule establishes that the award date is April 6, 2017 and the date of execution of the Agreements is April 28, 2017. Finally, as a result of the bidding process referred to above, on April 28, 2017, the Bank was again awarded the financial agent duties for the Province of Río Negro, and the Río Negro Province Banking and Financial Services Agreement was signed.

As a provincial financial agent, the Bank may provide several services to meet the financial and service needs of the different government areas in the province (central management, agencies and affiliates, as well as municipalities) such as tax revenue, salary crediting, among others. The financial agent duties do not include the obligation to provide financial assistance to the Province of Río Negro under conditions other than those consistent with the Bank’s nature as private bank.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 83 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos) Highest balance for the period/year Balances as of Item (1) 9/30/2018 12/31/2017 12/31/2016 9/30/2018 12/31/2017 12/31/2016 Financial assets measured at fair value– securities issued 261,421 117,561 226 279,985 117,561 227 by the Province of Río Negro Loans - advances - - - 873,389 699,245 909,585 Loans – syndicated loan 91,440 144,746 216,856 138,691 210,794 254,177 Loans – documented loans - - - - 415 - Deposits 471,175 46,668 57,580 553,421 1,377,692 950,470

(1) Due to the large quantity of transactions, particularly, in the checking accounts and deposits, the Bank considers that presenting the maximum balance for the period is the best indicator of the transactions performed during the period.

Transactions with the Province of Río Negro are performed on an arm’s length basis.

Profit or loss for the nine-month periods ended September 30, 2018 and 2017 were as follows:

Nine-month period ended Item 9/30/2018 9/30/2017 Interest income 108,316 65,480 Fee income 35,220 40,300

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 84 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Associates

Transactions with the Group’s associates are as follows: Highest balance for the period/year Balances as of (1) Item 9/30/2018 12/31/2017 12/31/2016 9/30/2018 12/31/2017 12/31/2016

Deposits 275,648 1,009,311 433,711 920,133 1,093,371 438,958

(1) Due to the large quantity of transactions, the Bank considers that presenting the maximum balance for the period is the best indicator of the transactions performed during the period.

NOTE 44 – DISTRIBUTION OF EARNINGS AND RESTRICTIONS

Banco Patagonia S.A.

In accordance with the BCRA rules, 20% of income for the year shall be allocated to the Legal Reserve.

Under the provisions of Law No. 25063, dividends distributed in cash or in kind, in excess of accumulated taxable income determined at the end of the fiscal year immediately prior to the date of payment or distribution will be subject to the income tax withholding at the general rate prevailing in such fiscal year as a one-off payment (the current rate is 30%). The amount of income to be considered in each fiscal year shall be that resulting from deducting the amount of taxes paid for the year or years in which such income, or the relevant proportionate amount thereof, was originated or distributed plus dividends or earnings from corporations not considered when determining such income in the same fiscal periods. Such distribution of dividends is not subject to the previously mentioned withholding because it does not exceed the earnings determined based on the application of the referred regulations. Notwithstanding the foregoing, the tax reform introduced by Law No. 27430, dated December 29, 2017, reduces the income tax rate applicable to corporations from 35% to 30% during two fiscal years, as from January 1, 2018. This reduction is supplemented with a 7% withholding on the payment of dividends. As from fiscal years beginning on January 1, 2020, the income tax rate applicable to corporations is reduced to 25%, and supplemented with a 13% withholding on the payment of dividends.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 85 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

BCRA’s rules set forth the general procedure for the distribution of earnings. According to such procedure, a distribution may only be made with the express authorization of the BCRA, provided that there are no records of financial assistance from that entity due to illiquidity or shortfalls as regards minimum capital requirements or minimum cash requirements, and other sort of penalties imposed by specific regulators, which are deemed to be material, and/or where no corrective measures have been implemented, among other previous conditions included in the Communication that must be met.

Additionally, earnings may only be distributed as long as a positive balance remains after deducting –on an off- balance sheet basis– from the unappropriated retained earnings and optional reserve for future distribution of earnings, the amounts of the mandatory legal reserves and those set forth by the by-laws, the positive net difference between the carrying amount and market value or present value established by the BCRA, as applicable, of government securities and/or monetary regulation instruments governed by the BCRA that are not valued at market prices and the amounts capitalized as a result of legal actions related to deposits, among others.

On the other hand, the Bank shall verify that after the distribution of earnings is conducted, a capital margin reserve on its assets weighed according to risk be maintained, which is added to the minimum capital requirement, and shall be set up exclusively with level 1 ordinary capital net of deductible items.

On January 12, 2018, the BCRA issued Communication "A" 6428 whereby the provisions about “Distribution of Earnings” were tailored to be in line with the IFRS, effective as from January 1, 2018.

As provided for by General Resolution No. 593 of CNV, the Shareholders at the Meeting held to consider the annual financial statements shall resolve on the allocation of accumulated earnings of the Bank, through either the effective distribution of dividends, the capitalization thereof with the delivery of bonus shares, by setting up optional reserves in addition to the Legal Reserve, or a combination of any of the aforementioned.

Finally, based on the aforementioned, the Bank proposed the following distribution of earnings for fiscal year ended December 31, 2017:

- Optional Reserve for future distribution of earnings 1,066,563 - Cash dividends 1,777,606 Total 2,844,169

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 86 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

This proposal was approved by the Annual General Shareholders’ Meeting held on April 25, 2018. The corresponding dividends in cash were authorized by the Foreign Exchange and Financial Institutions Regulatory Agency (SEFyC) on May 14, 2018 and made available to shareholders on May 30, 2018.

GPAT Compañía Financiera S.A.U.

In accordance with BCRA rules, 20% of income for the year shall be allocated to the legal reserve. As GPAT is a financial institution, it shall comply with the same regulations applicable to Banco Patagonia and, accordingly, the Annual General Shareholders’ Meeting held on April 19, 2018 approved the following distribution of earnings:

- Cash dividends 228,794 Total 228,794

As provided for by BCRA Communication "A" 6328, whereby the provisions about “Distribution of Earnings” were tailored to be in line with the IFRS, effective as from January 1, 2018, for the case of GPAT, the prior authorization of SEFyC is not required.

Finally, it is informed that dividends were paid on May 10, 2018.

Patagonia Valores S.A.

As provided for by section 70 of Law 19550, 5% of income for the year shall be allocated to set up the legal reserve until 20% of the subscribed capital is reached.

The Annual General Shareholders’ Meeting held on April 24, 2018 approved the following distribution of earnings, for the fiscal year ended December 31, 2017:

Income for the year

- Legal Reserve 5% of 50,439 (*) 1,679 - Optional Reserve for future distribution of earnings 8,409 - Cash dividends 40,351 Total 50,439

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 87 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

(*) Although it is an amount lower than 5% of income for the year ended December 31, 2017, it is enough to reach 20% of the subscribed capital (maximum limit established by applicable regulations).

Finally, it is informed that such dividends were paid on May 15, 2018.

Patagonia Inversora S.A. Sociedad Gerente de Fondos Comunes de Inversión

As provided for by section 70 of Law 19550, 5% of income for the year shall be allocated to set up the legal reserve until 20% of the subscribed capital is reached. As of December 31, 2017, such limit has been reached, then, no amount shall be allocated to this account.

The Annual General Shareholders’ Meeting held on April 24, 2018 approved the following distribution of earnings, for the fiscal year ended December 31, 2017:

- Cash dividends 69,426 - Optional Reserve for future distribution of earnings 17,357 Total 86,783

Finally, it is informed that such dividends were paid on May 15, 2018.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 88 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 45 – RESTRICTED ASSETS

The Group has the following restricted assets: 9/30/2018 12/31/2017 12/31/2016

Special guarantee accounts (*) 1,166,557 895,593 641,528

BCRA - Financial trusts under guarantee of OCT 1,256,083 300,875 153,087 - Treasury bills, maturity 2/8/2019 760,955 - - - BCRA Bills- Maturity 10/17/2018 487,028 - - - Pesos under guarantee 8,100 - - - Other - 300,875 153,087 Security deposits – Credit and debit card 412,721 291,862 189,215 managers

Government securities – IADB loan – Global Credit Program for micro-, small- and medium- 277,887 225,811 111,910 sized enterprises - BCRA Bills, maturity 10/17/2018 277,887 - - - Pesos under guarantee - 225,811 111,910 Other security deposits 14,398 22,495 18,342 Sub - Total 3,127,646 1,736,636 1,114,082

Security deposits for repurchase agreements 20,575 206,527 15,055 Sub - Total 20,575 206,527 15,055

Total 3,148,221 1,943,163 1,129,137

(*) Granted as collateral and held with the BCRA and in Banco Central de Uruguay (see Note 14).

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 89 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 46 – DEPOSIT GUARANTEE INSURANCE SYSTEM

Law No. 24485 and Decree No. 540/95 created a limited and mandatory Deposit Guarantee Insurance System for valuable consideration to provide coverage for risks inherent in bank deposits, supplementary to the bank deposit privileges and protection system established by the Financial Institutions Law.

Such law provided for the creation of Seguros de Depósitos S.A. (SEDESA) for the sole purpose of managing the Deposit Guarantee Fund, the shareholders of which, as amended by Presidential Decree No. 1292/96, shall be the BCRA, with at least one share, and the trustees of the trust agreement executed by financial institutions in the proportion established by the BCRA based on their contributions to the Deposit Guarantee Fund. Such company was created in August 1995. The Bank's equity interest therein is 4.3580% as informed by the BCRA in Communication “B” 11681 issued on March 20, 2018.

As of September 30, 2018, and December 31, 2017 and 2016, this system shall cover the deposits in Argentine pesos and foreign currency with the participating institutions, such as checking accounts, savings accounts, time deposits, investments, payroll account, social security contributions account, basic accounts, free of charge and special accounts, the tied-up funds of the accounts above or any other determined by the BCRA up to the amount of 450, subject to certain exclusions determined by such organization.

As of September 30, 2018 and 2017, the contributions made have been recorded in “Other operating expenses – Contributions to the deposit guarantee fund” in the amount of 92,369 and 69,757, respectively (see Note 38).

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 90 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 47 – MINIMUM CASH AND CAPITAL REQUIREMENTS

Minimum cash requirements

The BCRA establishes different requirements that should be met by financial institutions regarding solvency, liquidity, maximum amount of loans that may be granted, among others.

The minimum cash requirement establishes that a financial institution shall keep liquid assets on deposits and other obligations recorded in each period. The following table shows the items computed as minimum cash requirements:

Minimum cash requirements 9/30/2018 12/31/2017 12/31/2016 Cash and bank deposits BCRA - Current account 24,762,690 10,893,579 7,416,575 Other debt securities Argentine Treasury Bond in $ - Fixed Rate, maturity 2,879,375 - - 2020 Financial assets granted as collaterals BCRA - Special guarantee accounts 1,166,557 895,593 641,528 Total 28,808,622 11,789,172 8,058,103 Minimum capital requirements

The minimum capital requirements is as follows at each reporting date:

Minimum capital requirements 9/30/2018 12/31/2017 12/31/2016 Minimum capital requirements (A) 9,243,765 7,099,903 5,451,025 Credit risk 7,207,942 5,551,911 4,134,464 Market risk – Securities 98,106 35,961 57,591 Market risk - Currencies 148,512 46,529 84,216 Operational risk 1,789,205 1,465,502 1,174,754 Payment (B) 12,865,415 11,095,525 9,186,318 SURPLUS (B - A) 3,621,650 3,995,622 3,735,293

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 91 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos) NOTE 48 – TRUST ACTIVITIES

The Bank executed a number of agreements with other companies, whereby it was appointed trustee of certain financial trusts. The assets held in trust were mainly loans. As of September 30, 2018, the Bank manages the following financial trusts subject to public offering:

Equity as Date of Assets as of Financial trust Trustor Assets held in trust of agreement 9/30/2018 9/30/2018 Loans resulting from the CMR Falabella LXIX CMR Falabella 11/7/2017 (*) 64,043 use of credit - cards Loans resulting from the CMR Falabella LXX CMR Falabella 12/27/2017 105,892 use of credit - cards Loans resulting from the CMR Falabella LXXI CMR Falabella 12/28/2018 152,551 use of credit - cards Loans resulting from the CMR Falabella LXXII CMR Falabella 3/21/2018 115,386 use of credit - cards Ribeiro Minicreditos 4 Ribeiro S.A.C.I.F.A. e l. 2/26/2018 111,530 Consumer loans 81,731

Mercado Crédito I Mercado Libre S.R.L. 7/11/2018 217,958 Loans granted electronically 44,522

Serie Ribeiro XCIV Ribeiro S.A.C.I.F.A. e l. 5/17/2017 (*) 7,604 Consumer loans -

Serie Ribeiro XCV Ribeiro S.A.C.I.F.A. e l. 6/30/2017 (*) 7,685 Consumer loans -

Serie Ribeiro XCVI Ribeiro S.A.C.I.F.A. e l. 9/12/2017 60,023 Consumer loans 59,744

Serie Ribeiro XCVII Ribeiro S.A.C.I.F.A. e l. 11/1/2017 69,481 Consumer loans 56,035

Serie Ribeiro XCVIII Ribeiro S.A.C.I.F.A. e l. 12/15/2017 98,686 Consumer loans 60,078

Serie Ribeiro XCIX Ribeiro S.A.C.I.F.A. e l. 1/29/2018 167,890 Consumer loans 70,745

Serie Ribeiro C Ribeiro S.A.C.I.F.A. e l. 4/12/2018 311,765 Consumer loans 98,286

Serie Ribeiro CI Ribeiro S.A.C.I.F.A. e l. 7/16/2018 288,223 Consumer loans 71,495

Serie Ribeiro CII Ribeiro S.A.C.I.F.A. e l. 4/12/2018 321,972 Consumer loans 54,620

Total 2,100,689 597,256

(*) As per financial statements as of 6/30/2018.

(**) As per financial statements for liquidation purposes as of 8/31/2018

Financial trusts in escrow

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 92 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Date of Financial trust Trustor Assets held in trust agreement Percentage of the daily provincial Bogar Clase II Serie II Province of Río Negro 6/11/2009 tax revenues Percentage of the daily provincial Bogar Clase II Serie III Province of Río Negro 7/30/2013 tax revenues Fondo Fiduciario de - Funds received from government desarrollo Rionegrino Province of Río Negro 11/24/2017 loan transactions authorized by Plan Gobernador Castello section 1 of Law No. 5201 Assignment and transfer of Fideicomiso de Garantía All rights, securities and interests, Energía San Juan – Energía San Juan S.A. 3/23/2017 either current or future, arising from SEPSA/Caja the SEPSA Collection Agreements

The Bank acts as a trustee of the abovementioned trusts, and in no case will it meet the obligations assumed in executing these trusts with its own assets; these obligations will only be satisfied with and up to the amount of the assets held in trust and the proceeds therefrom. In addition, the trustee shall not encumber the assets held in trust or dispose of them beyond the limits established in the related trust agreements.

The commissions earned by the Bank upon fulfilling its trustee’s duties are calculated under the terms of the related agreements.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 93 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 49 – CUSTODIAN AGENT OF MUTUAL FUNDS

Banco Patagonia S.A., in its capacity as a custodian agent of mutual funds, keeps the custody of shares subscribed by third parties and assets in the following Mutual Funds:

Information as of September 30, 2018 Total Sharehold Name Deposits Other assets ers’ Equity Lombard Renta en Pesos Fondo Común de Inversión 5,900,122 353,910 6,254,032 6,253,871 Lombard Capital F.C.I. 419,024 3,495,406 3,914,430 3,883,494 Fondo Común de Inversión Lombard Renta Fija 10,127 551,976 562,103 556,812 Fondo Común de Inversión Lombard Pesos Plus (*) - - - - Fondo Común de Inversión Lombard Ahorro 7,374 - 7,374 7,374 Fondo Común de Inversión Lombard Abierto Plus 85,202 482,815 568,017 568,011 Fondo Común de Inversión Lombard Acciones Líderes 3,257 107,551 110,808 109,069 Lombard Renta Fija en Dólares F.C.I. 371,355 3,447,578 3,818,933 3,770,998 Lombard Ahorro Plus F.C.I. 18,279 883,430 901,709 901,699 TOTAL 6,814,740 9,322,666 16,137,406 16,051,328

(*) To the date of issuance of these financial statements, the Board of Directors of the Management Company is analyzing market conditions to proceed to the relaunching of the Lombard Pesos Plus whenever those conditions are deemed as adequate.

Information as of December 31, 2017 Total Sharehold Name Deposits Other assets ers’ Equity Lombard Renta en Pesos Fondo Común de Inversión 3,811,902 571,483 4,383,385 4,383,294 Lombard Capital F.C.I. 50,682 9,286,128 9,336,810 8,956,358 Fondo Común de Inversión Lombard Renta Fija 11,307 134,423 145,730 145,408 Fondo Común de Inversión Lombard Pesos Plus 370 - 370 370 Fondo Común de Inversión Lombard Ahorro 6,814 - 6,814 6,811 Fondo Común de Inversión Lombard Abierto Plus 112,525 600,868 713,393 713,385 Fondo Común de Inversión Lombard Acciones Líderes 752 81,360 82,112 75,262 Lombard Renta Fija en Dólares F.C.I. 359,163 1,935,790 2,294,953 2,259,520 Lombard Ahorro Plus F.C.I. 189 2,285,014 2,285,203 2,285,183 TOTAL 4,353,704 14,895,066 19,248,770 18,825,591

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 94 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Fondo Común de Inversión Lombard Pesos Plus

On February 23, 2017, the Company's and the Custodian Agent’s Board of Directors approved the amendment to the management rules of Fondo Común de Inversión Lombard Pesos Plus and the change of the mutual fund name so that the fund become a fixed income fund, as documented in Minutes No. 545 and No. 2706, respectively.

On November 24, 2017, based on Resolution RESFC-2017-19119-APN-DIR#CNV, the CNV approved the change of name from “Fondo Común de Inversión Lombard Pesos Plus” to “Lombard Pesos Plus FCI”, and the amendment to the management rules. This was registered with the Supervisory Board of Companies on February 20, 2018.

On December 14, 2017, the CNV issued Resolution RESFC-2017-19182-APN-DIR#CNV, by which it approved the amendment to the specific clauses of the management rules of Lombard Ahorro Plus F.C.I., Lombard Renta Fija en Dólares F.C.I., Lombard Acciones Líderes F.C.I., Lombard Capital F.C.I., Lombard Renta Fija F.C.I., and Lombard Abierto Plus F.C.I.

On April 16, 2018, such amendments were registered with the IGJ.

NOTE 50 – SANCTIONS IMPOSED AND PROCEEDINGS FILED BY THE BCRA

Banco Patagonia S.A.

On January 8, 2015, the BCRA issued Communication “A” 5689 whereby it established that financial institutions shall recognize and report the administrative, disciplinary and criminal sanctions imposed by the BCRA, the UIF, the CNV, or the SSN, with judgment rendered in a court of original jurisdiction.

All the sanctions shall be taken into account, and an allowance shall be set up for 100% of each sanction, which shall be kept until the payment is made or a final judgment is rendered. As of June 30, 2016, the Bank set up an allowance for the following proceedings:

Exchange proceedings No. 4969 notified on April 17, 2012; ruling passed on July 4, 2015 by Court in Economic Criminal Matters No. 6, Court Clerk’s Office No 12: on charges of the lack of authorization by the BCRA for the sale of foreign currency to a client in excess of the monthly limit of USD 2,000,000. The persons subject to these proceedings are Banco Patagonia S.A., Ariel Aranda, David Rodríguez, and Santiago Miñana. An appeal was filed with the Supreme Court of Justice and, within that context, on May 12, 2016 a filing of a new event was made to request the acquittal of the defendants by the application of the less severe criminal law in relation to Communication “A” 5963, which extended the maximum limit for the acquisition of foreign currency without prior approval of the BCRA to US$ 5,000,000.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 95 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Exchange proceedings No. 4974 notified on April 25, 2012; ruling passed on July 4, 2015 by Court in Economic Criminal Matters No. 6, Court Clerk’s Office No 12: on charges of the failure to make the restricted deposit established by BCRA Communication "A" 4359 in connection with the purchase of bills held by an individual residing in the country in excess of the monthly limit of USD 2,000,000. The persons subject to the proceedings are Banco Patagonia S.A., David Rodríguez, and Ariel Aranda. The sanction imposed was appealed, leading to the suspension thereof. Finally, on August 29, 2016, the Court in Economic Criminal Matters No. 8 ordered the acquittal of Banco Patagonia S.A. and the persons subject to the proceedings. (Ended).

As of September 30, 2018, the Bank set up a provision in the amount of 33 to bear both sanctions.

The proceedings file by the BCRA that are still in process are as follows:

Exchange proceedings No. 4783 notified on October 28, 2011: on charges of the failure to make the restricted deposit established by Communication "A"4359 in connection with 30% of a transaction performed by a non- resident to bring foreign currency into the country under Investments made by Non-residents applied to the purchase of real property. The persons subject to these proceedings are Banco Patagonia S.A., Juan Jorge Laguzzi, and Osvaldo Coloccini. In May 2016, a filing was made to request the acquittal of defendants by the application of the less severe law. No decision has been issued yet.

Financial proceedings No. 1438 notified on April 14, 2015: on charges of the outdated filing of a report relating to an exchange transaction and its improper registration with the Exchange Transactions Reporting Regime. The persons subject to these proceedings are Banco Patagonia S.A., Adrián Pablo Gómez, Rubén Miguel Iparraguirre, and Jorge Rubio. On October 9, 2018, through Resolution No. 491, the Foreign Exchange and Financial Institutions Regulatory Agency imposed a fine of 275,000 Argentine pesos, which was paid on October 22, 2018.

Financial proceedings No. 1447 notified on July 14, 2015: on charges of service of office as Director without authorization from the BCRA, noncompliance with the obligation to report the appointment of a new Director, and late filing of documentation on the appointment of new authorities. The persons subject to these proceedings are Banco Patagonia S.A., Jorge Guillermo Stuart Milne, Renato Luiz Belineti Naegele, Héctor Osvaldo Rossi Camilion, Alberto Mario Tenaillon, and María Lucía Denevi Artola. An appeal was filed with the Supreme Court of Justice which has not been solved to date.

Financial proceedings No. 1543 notified on March 5, 2018: on the charges of noncompliance with the duty to include in the Transfers menu of Home Banking the item “Wages”. The persons subject to these proceedings are Banco Patagonia S.A. Oswaldo Parré Dos Santos, Gerardo Adrián Aguzzi, Marcio Takeda, Karina Guadalupe Gomez Vara, and Paulo Previdelli.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 96 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

On October 30, 2018, through Resolution No. 536, the Foreign Exchange and Financial Institutions Regulatory Agency imposed a fine of thousands of pesos 1,754, which was paid on November 9, 2018.

Notwithstanding the foregoing, the Bank estimates that the impact on equity from the proceedings referred to above will not be significant.

Afterwards, through the provisions of Communication “A” 5940 dated April 1, 2016, the BCRA set forth that the financial institutions having provisions recorded for the sanctions mentioned above at such date shall analyze, based on the attorney’s letters in force, whether they meet the conditions to be fully or partially recorded. In case of sanctions not meeting the conditions for the allowance to be set up, the Bank shall reverse such balances and recognize them in “Adjustments to prior-year profit or loss” or in the other expenses account: “Expenses from administrative, disciplinary and criminal sanctions”, as applicable.

For sanctions pending payment not meeting the conditions for the provision to be set up, the next Shareholders’ Meeting shall set up a special reserve in the amount of the sanctions imposed for which no provision has been set up, provided the Bank has unappropriated retained earnings. If the balance is not sufficient, the Special reserve shall be set up to the extent the unappropriated retained earnings are generated.

GPAT Compañía Financiera S.A.U.

As of September 30, 2018, GPAT Compañía Financiera S.A.U. has not received any notice of administrative, disciplinary or criminal sanctions, or of any proceedings.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 97 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 51 – BCRA ACCOUNTING FRAMEWORK APPLIED FOR THE FIRST TIME This note includes the reconciliations of the Shareholders’ equity statement balances as of December 31, 2017 and 2016 and as of September 30, 2017 and the income statement balances as of September 30, 2017 determined in accordance with the BCRA regulations in force at such reporting dates with the amounts resulting from applying the IFRS with the scope established by BCRA Communication “A” 6114 and supplementary rules.

Shareholders’ equity reconciliation Item Ref. 12/31/2017 9/30/2017 12/31/2016 Shareholders’ equity as per prior financial statements 11,155,964 10,124,287 9,235,252

Adjustments under BCRA accounting framework applied for the first time Property, plant and equipment 1 1,840,274 1,852,604 1,880,348 Investment property 2 11,827 9,500 9,485 Loans and other financing facilities 3 (625,948) (544,352) (394,038) Debt securities 4 1,125 (44,588) 6,783 Deferred tax 5 73,068 172,436 (121,473) Investments in subsidiaries and associates 6 - 118,094 111,840 Corporate bonds 7 10,630 9,094 4,218 Other adjustments (3,658) (1,861) 2,097 Shareholders’ equity under the new 12,463,282 11,695,214 10,734,512 BCRA accounting framework

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 98 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Reconciliation of income as of September 30, 2017 Net Other Total income/loss comprehensive comprehensive Item Ref. for the income for the income for the period period period

Income/loss as per prior financial statements 2,523,532 - 2,523,532 Adjustments under IFRS applied for the first time as adapted

by the BCRA Interest income 3.4 38,488 - 38,488 Interest expense 7 (5,113) - (5,113) Fee income 3 (131,356) - (131,356) Administrative expenses 1 (43,714) - (43,714) Income tax 5 299,091 - 299,091 Gain/loss on investment in subsidiaries and associates 6 6,240 - 6,240 Other adjustments 2 (115,665) - (115,665) Gains on financial instruments carried at fair value 4 - 12,572 12,572 through OCI Foreign exchange differences arising from the translation - 11,664 11,664 of financial statements Shareholders’ equity under the new BCRA accounting 2,571,503 24,236 2,595,739 framework

The main reconciling adjustments made to adopt the BCRA accounting framework are as follows:

1. Property, plant and equipment:

The Group has opted for applying the revaluation model in accordance with IAS 16 “Property, plant and equipment” to all real estate used for business purposes, which, under the BCRA rules were recognized in Property, plant and equipment at cost.

Based on the significant increases in prices of real estate over the last years, the Group considers that the revaluation model fairly reflects the value of these assets.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 99 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

According to the revaluation method, after the initial recognition of assets, it is measured at fair value at the revaluation date less accumulated depreciation and the accumulated impairment, if applicable.

For the rest of the Property, plant and equipment items, the cost model is applied.

2. Investment property

In the case of leased assets, the Group has opted for applying the fair value in accordance with IAS 40 “Investment property”. The assets under this category are revalued, while under BCRA former rules were recognized at cost in Miscellaneous assets.

For the rest of the Property, plant and equipment items, the cost model is applied.

3. Loans and other financing facilities:

The Group identifies the loan portfolio as a set of financial assets held within a business model whose objective is to hold assets in order to collect contractual cash flows over the life of the instrument. In accordance with IFRS 9 “Financial instruments”, such assets shall be carried at amortized cost, by using for the recognition of interest income the effective interest method, which considers the expected cash flows according to the contractual terms of the financial instrument, the commissions paid or received by the parties to the contract, the costs of the transaction (incremental costs directly attributable to the acquisition or disposal of an asset) and any other premium or discount.

Under the referred IFRS, incremental interest and costs attributable to each financing facilities are recognized at an effective interest rate, while under the BCRA former rules, interest was recognized by considering its accrual and the incremental costs and commissions when incurred.

Additionally, for financing facilities granted at rates lower than market rates, an initial recognition has been made at fair value by recognizing a loss.

4. Debt securities

In accordance with IFRS 9, the financial assets can be classified in three categories: at amortized cost, at fair value with changes through other comprehensive income and at fair value with changes through profit or loss, based on the business model of the Group and the characteristics of the cash flows of each asset.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 100 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

The adjustment determined herein for those assets not included in the volatility listings published by the BCRA corresponds to the valuation difference between the monthly acquisition value increased in terms of the internal rate of return (BCRA valuation) and the fair value (IFRS valuation).

Additionally, for those financial assets carried at fair value with changes through other comprehensive income, the Group has recorded and disclosed in such OCI the difference between their valuation at amortized cost and fair value.

5. Deferred tax

In accordance with IAS 12, the income tax has been calculated by applying the deferred tax method, recognizing (i) the current tax that is expected to be paid or recovered and (ii) the deferred tax, that is, the income tax to be calculated or recovered as a result of the temporary differences and the accumulated tax loss carryforwards. The temporary differences are differences between the tax base of an asset or liability and its carrying amount. Under the former BCRA rules, such recognitions were not required.

6. Investments in subsidiaries and associates

Investments in other companies– Investments in associates

As provided for by IAS 28 “Investments in associates and Joint ventures”, an associate is an entity over which the investor has significant influence. The significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control of those policies.

The Group has identified companies in which it has significant influence and therefore, investments in these companies have been measured by the equity method described in IAS 28.

Translation of foreign currency - IAS 21

As provided for by IAS 21 “Effects of changes in foreign exchange rates”, the translation differences related to the Bank’s interest in Banco Patagonia (Uruguay) S.A.I.F.E. were recognized and reclassified to “Other comprehensive income”.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 101 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

7. Corporate bonds

The Group measures its corporate bonds as financial liabilities at amortized cost, using the effective interest method, considering the incremental costs of the issue of those instruments. Interest and expenses related to the issue of corporate bonds are recognized in profit or loss at the effective interest rate of each issue. Under previous BCRA rules, interest was recognized at the contractual rate, and expenses related to the issue were recognized upon occurrence.

NOTE 52 – FINANCIAL AGENT OF THE PROVINCE OF RÍO NEGRO Under Law No. 2929 of the Province of Río Negro, and the agreement signed on May 27, 1996, the Bank acts as a financial agent of the Provincial Government, being in charge of the banking duties set forth in article 1.2 of the aforementioned agreement. On February 28, 2006, such agreement expired, which remained effective up to December 31, 2006, through successive extensions, under the same terms and conditions as those of the abovementioned agreement. Thereafter, the Bank was awarded the financial agent duties, and on December 14, 2006, the Río Negro Province Banking and Financial Services Agreement was signed for a 10-year term, which expired on December 13, 2016. On December 29, 2016, Law No. 5187 was enacted by the Legislature of the Province of Rio Negro, which extended the agreement referred to above for a term of 180 days, to be automatically extended, or for a lower term, in case the bidding process for the selection of a bank providing financial agency services ends before such term. On December 22, 2016, the Executive Branch of the Province of Rio Negro issued Decree 2140, whereby it organized a bidding process for the selection and subsequent hiring of the Financial Agent of the Province of Río Negro for a term of ten years, to be extended for a five-year period, unless otherwise decided by any of the parties. The bidding process schedule established that the award date is April 6, 2017 and the date of execution of the Agreements is April 28, 2017.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 102 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Finally, as a result of the bidding process referred to above, on April 28, 2017, the Bank was again awarded the financial agent duties for the Province of Río Negro, and the Río Negro Province Banking and Financial Services Agreement was signed for a 10-year term, with the possibility of an extension for other five years. Such duties do not include the obligation to provide financial aid to the Province of Río Negro under conditions other than those consistent with the private banking nature of this bank.

NOTE 53 – CNV REQUIREMENT TO ACT AS AN OVER-THE-COUNTER BROKER Pursuant to the provisions established by the CNV in General Resolution No. 622/13, as amended by CNV General Resolution No. 731/18, a breakdown of the minimum capital and cash contra-account requirements for each broker category is as follows: Banco Patagonia S.A.

Minimum Minimum cash Role capital contra-account Settlement and Clearing Agent and Comprehensive Trading Agent 18,000 9,000 Custodian agent of mutual funds 2,750 2,750 Financial and Non-financial trustee 3,000 3,000 Total 23,750 14,750 As of September 30, 2018, the Bank’s capital exceeds CNV's requirements, and the minimum cash contra-account required is made up of funds deposited with the BCRA in current account No. 034 of Banco Patagonia S.A.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 103 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Patagonia Inversora S.A. Sociedad Gerente de Fondos Comunes de Inversión The minimum shareholders’ equity required to act as Management Agent of Mutual Funds amounts to 500 plus 100 per additional Mutual Fund managed. The minimum equity required amounts to 1400, which is lower than the Company's shareholders’ equity. Cash contra-account requirements amount to 700 and are met by the Company, and as of September 30, 2018 they are composed as follows:

Breakdown Amount Demand deposit accounts in local and foreign banks 2,417 Mutual Funds 212,722 Argentine Government Securities 75,331 Total 290,470 Patagonia Valores S.A. The minimum shareholders’ equity required to act as a Comprehensive Settlement and Clearing Agent amounts to 18,000, and is lower than the Company's shareholders’ equity. Cash contra-account requirements amount to 9,000 and are met by the Company, and as of September 30, 2018 they are composed as follows:

Breakdown Amount Demand deposit accounts in local and foreign banks 808 Instruments issued by the BCRA 36,328 Total 37,136

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 104 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 54 – TRANSACTIONS WITH DIRECTORS No transactions falling under the provisions of section 271 of Law No. 19550 have been identified.

NOTE 55 – CNV REQUIREMENT - CUSTODY OF THE GROUP'S DOCUMENTATION Pursuant to the provisions of General Resolution No. 629 issued by the CNV on August 14, 2014, it is informed that the Group companies have entrusted the custody of supporting documentation related to accounting transactions and other management documentation, not included in article 5 a.3), Section I, Chapter V, Title II of the CNV Rules (2013 consolidated text and amendments), to the third parties listed below: Banco Patagonia S.A.

GPAT Company Responsible for the Deposit Address

Route 36 - Km. 31.5 - Florencio Varela – Province of AdeA Administradora de Archivos S.A. Buenos Aires

Amancio Alcorta 2482 – City of Buenos Aires.

Azara 1245 - City of Buenos Aires.

San Miguel de Tucumán 601 - Carlos Spegazzini – Province of Buenos Aires. Iron Mountain Argentina S.A.

San Miguel de Tucumán 1800 - Carlos Spegazzini – Province of Buenos Aires.

Puente del Inca 2450 – Tristan Suárez – Province of Buenos Aires.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 105 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos) Compañía Financiera S.A.U.

Company responsible for the deposit Address AdeA Administradora de Archivos S.A. Route 36 - Km. 31.5 - Florencio Varela – Province of Buenos Aires

Unamuno 2095 - Quilmes - Province of Buenos Aires

Diógenes Taborda 73 - City of Buenos Aires

Carlos Pellegrini 1401 – Dock Sur – Province of Buenos Aires

Bank S.A. Av. Fleming 2190 - Munro - Province of Buenos Aires

Ruta Panamericana Km 37.5 – Garín – Province of Buenos Aires

Ruta Panamericana Km 31.5 – Talar, Tigre – Province of Buenos Aires

Iron Mountain Argentina S.A. Amancio Alcorta 2482 – City of Buenos Aires

Patagonia Inversora S.A. Sociedad Gerente de Fondos Comunes de Inversión

Company responsible for the deposit Address

Route 36 - Km. 31.5 - Florencio Varela – Province of Buenos AdeA Administradora de Archivos S.A. Aires

Patagonia Valores S.A.

Company responsible for the deposit Address

Route 36 - Km. 31.5 - Florencio Varela – Province of Buenos AdeA Administradora de Archivos S.A. Aires

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 106 BANCO PATAGONIA S.A.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

In addition, all the aforementioned companies keep a detail of the documents entrusted to such custodians for review by the controlling bodies at their registered office.

NOTE 56 – COMPLIANCE WITH PROVISIONS SET FORTH BY LAW No. 25738

Banco Patagonia S.A. is a stock company organized under the laws of Argentina, the shareholders of which limit their liability to the paid-in shares subscribed in accordance with Law No. 19550. Therefore, in compliance with Law No. 25738, we report that neither the foreign majority shareholders nor the local or foreign shareholders are liable, in excess of such paid-in shares, for the obligations arising from the transactions performed by the Bank.

NOTE 57 – PUBLICATION OF FINANCIAL STATEMENTS

Under Communication “A” 2813 and supplementary BCRA rules, the BCRA’s prior involvement is not required for the publication of these financial statements.

NOTE 58 – SUBSEQUENT EVENTS No events or transactions have occurred from period-end to the date of issuance of these financial statements that would have a material effect on the financial position of the Bank or the results of its operations as of September 30, 2018.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 107 BANCO PATAGONIA S.A.

EXHIBIT B LOANS AND OTHER FINANCING FACILITIES CLASSIFIED BY STATUS AND OTHER GUARANTEES RECEIVED AS OF 09/30/2018, 12/31/17 AND 12/31/16 (Amounts stated in thousands of pesos)

COMMERCIAL LOAN PORTFOLIO 09/30/2018 12/31/2017 12/31/2016

Performing 50,019,094 35,790,506 29,409,666

- With “A” preferred guarantees and counter-guarantees 2,443,351 1,707,995 1,171,828 - With “B” preferred guarantees or counter-guarantees 3,990,462 3,160,134 2,823,160 - Without preferred guarantees or counter-guarantees 43,585,281 30,922,377 25,414,678

Subject to special monitoring 466,420 153,482 266,340

In observation 1 848 13,060

- With “B” preferred guarantees or counter-guarantees 1 1 3,374 - Without preferred guarantees or counter-guarantees - 847 9,686

In negotiation or under refinancing agreements 466,419 152,634 253,280

- With “B” preferred guarantees or counter-guarantees 424,474 146,460 234,376 - Without preferred guarantees or counter-guarantees 41,945 6,174 18,904

Troubled 12,420 8,778 44,004

- With “B” preferred guarantees or counter-guarantees - 5,806 23,468 - Without preferred guarantees or counter-guarantees 12,420 2,972 20,536

With high risk of insolvency 1,720 7,215 19,458

- With “B” preferred guarantees or counter-guarantees - 111 7,538 - Without preferred guarantees or counter-guarantees 1,720 7,104 11,920

Irrecoverable 333,796 131,088 55,466

- With “A” preferred guarantees and counter-guarantees 12,308 - 208 - With “B” preferred guarantees or counter-guarantees 190,622 83,268 9,128 - Without preferred guarantees or counter-guarantees 130,866 47,820 46,130

TOTAL COMMERCIAL LOAN PORTFOLIO 50,833,450 36,091,069 29,794,934

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 108 BANCO PATAGONIA S.A.

EXHIBIT B LOANS AND OTHER FINANCING FACILITIES CLASSIFIED BY STATUS AND OTHER GUARANTEES RECEIVED AS OF 09/30/2018, 12/31/17 AND 12/31/16 (Amounts stated in thousands of pesos)

CONSUMER AND/OR HOME LOAN PORTFOLIO 09/30/2018 12/31/2017 12/31/2016

Performing 29,504,228 27,231,736 18,769,182

- With “A” preferred guarantees and counter- 285,250 100,841 guarantees 640,234 - With “B” preferred guarantees or counter-guarantees 5,889,160 5,472,370 3,605,554 - Without preferred guarantees or counter-guarantees 22,974,834 21,474,116 15,062,787

Low risk 1,026,242 701,599 350,866

- With “A” preferred guarantees and counter- 800 128 guarantees 13,110 - With “B” preferred guarantees or counter-guarantees 241,136 253,932 115,037 - Without preferred guarantees or counter-guarantees 771,996 446,867 235,701

Medium risk 492,776 282,107 75,609

- With “A” preferred guarantees and counter- 1,449 169 guarantees 4,126 - With “B” preferred guarantees or counter-guarantees 51,513 61,731 26,836 - Without preferred guarantees or counter-guarantees 437,137 218,927 48,604

High risk 513,179 306,883 266,759

- With “A” preferred guarantees and counter- 135 397 guarantees 3,049 - With “B” preferred guarantees or counter-guarantees 4,749 3,209 3,120 - Without preferred guarantees or counter-guarantees 505,381 303,539 263,242

Irrecoverable 235,367 135,390 46,782

- With “A” preferred guarantees and counter- 125 - guarantees 261 - With “B” preferred guarantees or counter-guarantees 5,190 2,693 2,634 - Without preferred guarantees or counter-guarantees 229,916 132,572 44,148

Irrecoverable according to BCRA regulations 248 159 370

- With “B” preferred guarantees or counter-guarantees 185 90 149 - Without preferred guarantees or counter-guarantees 63 69 221

TOTAL CONSUMER AND/OR HOME LOAN 31,772,040 28,657,874 19,509,568 PORTFOLIO

TOTAL GENERAL 82,605,490 64,748,943 49,304,502

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 109 BANCO PATAGONIA S.A.

EXHIBIT B LOANS AND OTHER FINANCING FACILITIES CLASSIFIED BY STATUS AND OTHER GUARANTEES RECEIVED AS OF 09/30/2018, 12/31/17 AND 12/31/16 (Amounts stated in thousands of pesos)

RECONCILIATION OF LOANS AND OTHER FINANCING FACILITIES AS PER CONSOLIDATED STATEMENT OF FINANCIAL POSITION

BREAKDOWN 09/30/2018 12/31/2017 12/31/2016

BALANCE AS PER EXHIBIT “B” 82,605,490 64,748,943 49,304,502 Items included in Exhibit “B” and not included in Loans and other (1,376,403) (653,434) (2,752,385) financing facilities Off-balance sheet items– loans granted (unused balances), other guarantees provided and others covered by debtors classification (1,309,575) (652,013) (2,691,260) standards Other items (66,828) (1,421) (61,125)

Items not included in Exhibit “B” and included in Loans and other (3,489,652) (2,471,789) (1,740,117) financing facilities

Loans and other financing facilities- loans to personnel 333,974 289,739 218,466

Loans and other financing facilities–IFRS adjustment at effective (660,742) (812,388) (539,777) interest rate

Loans and other financing facilities– Allowances for loan losses (3,162,884) (1,949,140) (1,418,806)

BALANCE AS PER STATEMENT OF FINANCIAL POSITION 77,739,435 61,623,720 44,812,000

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 110 BANCO PATAGONIA S.A.

EXHIBIT C LOANS AND OTHER FINANCING FACILITIES CONCENTRATION AS OF 09/30/2018, 12/31/17 AND 12/31/16 (Amounts stated in thousands of pesos)

FINANCING FACILITIES

Number of customers 09/30/2018 12/31/2017 12/31/2016 Outstanding % of total Outstanding % of total Outstanding % of total amount portfolio amount portfolio amount portfolio

10 largest customers 12,654,299 15.3% 5,488,880 8.5% 4,665,414 9.5%

50 next largest customers 16,489,075 20.0% 9,746,121 15.0% 7,943,734 16.1%

100 next largest customers 8,880,585 10.8% 7,268,675 11.2% 6,006,358 12.2%

Rest of customers 44,581,531 53.9% 42,245,267 65.3% 30,688,996 62.2%

TOTAL 82,605,490 100.0% 64,748,943 100.0% 49,304,502 100.0%

RECONCILIATION OF LOANS AND OTHER FINANCING FACILITIES AS PER CONSOLIDATED STATEMENT OF FINANCIAL POSITION

BREAKDOWN 09/30/2018 12/31/2017 12/31/2016

BALANCE AS PER EXHIBIT “C” 82,605,490 64,748,943 49,304,502 Items included in Exhibit “C” and not included in Loans and other (1,376,403) (653,434) (2,752,385) financing facilities Off-balance sheet items– loans granted (unused balances), other guarantees provided and others covered by debtors classification (1,309,575) (652,013) (2,691,260) standards Other items (66,828) (1,421) (61,125)

Items not included in Exhibit “C” and included in Loans and other (3,489,652) (2,471,789) (1,740,117) financing facilities

Loans and other financing facilities- loans to personnel 333,974 289,739 218,466

Loans and other financing facilities–IFRS adjustment at effective (660,742) (812,388) (539,777) interest rate

Loans and other financing facilities– Allowances for loan losses (3,162,884) (1,949,140) (1,418,806)

BALANCE AS PER STATEMENT OF FINANCIAL POSITION 77,739,435 61,623,720 44,812,000

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228

111 BANCO PATAGONIA S.A.

EXHIBIT D LOANS AND OTHER FINANCING FACILITIES BROKEN DOWN BY TERM AS OF 09/30/2018, 12/31/17 AND 12/31/16 (Amounts stated in thousands of pesos)

INFORMATION AS OF 09/30/2018

Terms remaining to maturity Total as of Item Matured Over 24 9/30/2018 1 month 3 months 6 months 12 months 24 months months Nonfinancial government - 92,204 32,087 23,596 122,103 125,439 1,495 396,924 sector Financial sector - 1,208,898 828,063 856,985 602,711 220,805 296,854 4,014,316 Nonfinancial private sector 707,519 33,625,665 8,032,039 12,272,209 11,480,273 11,325,446 15,135,642 92,578,793 and foreign residents

TOTAL 707,519 34,926,767 8,892,189 13,152,790 12,205,087 11,671,690 15,433,991 96,990,033

INFORMATION AS OF 12/31/2017

Terms remaining to maturity Total as of Item Matured Over 24 12/31/17 1 month 3 months 6 months 12 months 24 months months Nonfinancial government - 11,319 105,010 26,742 42,711 381,725 520 568,027 sector Financial sector - 1,783,023 971,887 1,213,361 1,415,595 490,496 637,959 6,512,321 Nonfinancial private sector 728,700 22,282,328 6,466,806 11,444,038 7,428,664 8,397,459 11,277,730 68,025,725 and foreign residents

TOTAL 728,700 24,076,670 7,543,703 12,684,141 8,886,970 9,269,680 11,916,209 75,106,073

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228

112 BANCO PATAGONIA S.A.

EXHIBIT D LOANS AND OTHER FINANCING FACILITIES BROKEN DOWN BY TERM AS OF 09/30/2018, 12/31/17 AND 12/31/16 (Amounts stated in thousands of pesos) INFORMATION AS OF 12/31/2016

Terms remaining to maturity Total as of Item Matured Over 24 12/31/2016 1 month 3 months 6 months 12 months 24 months months Nonfinancial government - 8 - 746 17,477 45,137 74,727 88,847 454,686 689,620 sector Financial sector - 456,954 173,348 419,956 872,804 365,056 98,537 2,386,655

Nonfinancial private sector 641,917 17,536,883 6,211,913 6,948,554 5,299,707 6,790,131 9,301,186 52,730,291 and foreign residents

TOTAL 641,917 18,002,583 6,402,738 7,413,647 6,247,238 7,244,034 9,854,409 55,806,566

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228

113 BANCO PATAGONIA S.A. EXHIBIT F CHANGES IN PROPERTY, PLANT AND EQUIPMENT AS OF 9/30/2018 AND 9/30/2017 (Amounts stated in thousands of pesos)

CHANGES IN PROPERTY, PLANT AND EQUIPMENT AS OF 09/30/2018

Original Estimated Original Depreciation Residual value at Accumulated Item useful life Additions Retirements value as of Accumulated as For the value as of beginning Retirements as of in years 09/30/2018 of 12/31/17 period 09/30/18 of year 09/30/2018 Measured at cost 846,137 150,239 114,966 881,410 401,619 11,469 102,107 492,257 389,153 Land and buildings 128,139 50 65,710 - 193,849 81,295 - 34,387 115,682 78,167 - Furniture and fixture 152,845 10 13,632 2 166,475 77,320 - 9,720 87,040 79,435 - Machinery and equipment 443,028 5 53,564 - 496,592 224,008 - 54,979 278,987 217,605 - Vehicles 36,897 5 7,886 22,098 22,685 18,357 11,469 2,990 9,878 12,807 - Other 716 5 - - 716 639 - 31 670 46 - Works in progress 84,512 - 9,447 92,866 1,093 - - - - 1,093 Revaluation model 2,196,758 110,048 86,715 2,220,091 45,860 1,133 34,740 79,467 2,140,624 Land and buildings 2,196,758 50 110,048 86,715 2,220,091 45,860 1,133 34,740 79,467 2,140,624

TOTAL 3,042,895 260,287 201,681 3,101,501 447,479 12,602 136,847 571,724 2,529,777

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228

114 BANCO PATAGONIA S.A. EXHIBIT F CHANGES IN PROPERTY, PLANT AND EQUIPMENT AS OF 9/30/2018 AND 9/30/2017 (Amounts stated in thousands of pesos)

CHANGES IN PROPERTY, PLANT AND EQUIPMENT AS OF 09/30/2017

Original Depreciation Estimated Original Residual value at Accumulated Accumulated Item useful life Additions Retirements value as of For the value as of beginning as of Retirements as of in years 09/30/17 period 09/30/2017 of year 12/31/16 09/30/2017 Measured at cost 693,578 - 106,513 2,123 797,968 291,034 1,198 81,591 371,427 426,541 Land and buildings 97,445 50 30,694 - 128,139 53,904 - 20,068 73,972 54,167 - Furniture and fixture 135,480 10 11,869 4 147,345 65,338 - 8,371 73,709 73,636 - Machinery and equipment 398,795 5 24,836 62 423,569 154,726 11 50,879 205,594 217,975 - Vehicles 26,086 5 3,951 2,057 27,980 16,472 1,187 2,237 17,522 10,458 - Other 718 5 - - 718 594 - 36 630 88 - Works in progress 35,054 - 35,163 - 70,217 - - - - 70,217 Revaluation model 2,221,500 11,043 1,008 2,231,535 0 229 35,121 34,892 2,196,643 Land and buildings 2,221,500 50 11,043 1,008 2,231,535 0 229 35,121 34,892 2,196,643

TOTAL 2,915,078 117,556 3,131 3,029,503 291,034 1,427 116,712 406,319 2,623,184

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228

115 BANCO PATAGONIA S.A. EXHIBIT F REVALUATION TABLE OF PROPERTY, PLANT AND EQUIPMENT AS OF 9/30/2018 AND 9/30/2017 (Amounts stated in thousands of pesos)

REVALUATION TABLE AS OF 09/30/2018

Revaluation adjustment - OCI Accumulated Amount as Revaluation per cost Description Appraiser date Balance at Changes Balance as model as of beginning in the of 09/30/2018 of year period 09/30/2018 Organización Buildings Levin de Argentina 01/01/2017 1,893,964 - 1,893,964 353,590 S.A.

TOTAL 1,893,964 - 1,893,964 353,590

REVALUATION TABLE AS OF 09/30/2017

Revaluation adjustment - OCI Accumulated Amount as Revaluation per cost Description Appraiser date Balance at Changes Balance as model as of beginning in the of 09/30/2017 of year period 09/30/2017 Organización Buildings Levin de Argentina 01/01/2017 1,893,964 - 1,893,964 325,266 S.A.

TOTAL 1,893,964 - 1,893,964 325,266

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228

116 BANCO PATAGONIA S.A.

EXHIBIT F CHANGES ON INVESTEMENT PROPERTY AS OF 9/30/2018 AND 9/30/2017 (Amounts stated in thousands of pesos)

CHANGES IN INVESTEMENT PROPERTY AS OF 09/30/2018

Net gain/loss Original value Estimated Residual on Item at beginning of useful life in value as of measurement year years 09/30/2018 at fair value Measured at fair value

- Leased property 13,650 25 - 13,650

TOTAL INVESTMENT PROPERTY 13,650 25 - 13,650

CHANGES IN INVESTEMENT PROPERTY AS OF 09/30/2017

Net gain/loss Original value Estimated Residual on Item at beginning of useful life in value as of measurement year years 09/30/2017 at fair value Measured at fair value

- Leased property 11,370 25 - 11,370

TOTAL INVESTMENT PROPERTY 11,370 25 - 11,370

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228

117 BANCO PATAGONIA S.A. EXHIBIT G CHANGES IN INTANGIBLE ASSETS AS OF 09/30/2018 AND 9/30/2017 (Amounts stated in thousands of pesos)

CHANGES IN INTANGIBLE ASSETS AS OF 09/30/2018

Original Total Amortization Residual value at estimated Accumulated Accumulated Item Additions Retirements Amortization value as of beginning of useful life as of Retirements as of for the period 09/30/2018 year in years 12/31/17 09/30/2018 Measured at cost In-house systems development expenses 57,610 5 31,506 - 10,836 - 10,958 21,794 67,322

TOTAL INTANGIBLE ASSETS 57,610 5 31,506 - 10,836 - 10,958 21,794 67,322

CHANGES IN INTANGIBLE ASSETS AS OF 09/30/2017

Original Total Amortization Residual value at estimated Accumulated Accumulated Item Additions Retirements Amortization value as of beginning of useful life as of Retirements as of for the period 09/30/2017 year in years 12/31/2016 9/30/2017

Measured at cost In-house systems development expenses 28,457 5 16,139 - 2,089 - 5,922 8,011 36,585

TOTAL INTANGIBLE ASSETS 28,457 5 16,139 - 2,089 - 5,922 8,011 36,585

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228

118 BANCO PATAGONIA S.A.

EXHIBIT H DEPOSITS CONCENTRATION AS OF 09/30/2018, 12/31/17 AND 12/31/16 (Amounts stated in thousands of pesos)

09/30/2018 12/31/2017 12/31/2016 Number of customers Outstanding % of total Outstanding % of total Outstanding % of total amount portfolio amount portfolio amount portfolio

10 largest customers 9,453,171 9.49% 7,807,427 11.30% 5,258,463 10.00%

50 next largest customers 12,887,911 12.94% 7,806,441 11.30% 5,489,787 10.50%

100 next largest customers 7,605,761 7.63% 3,790,023 5.50% 3,278,081 6.30%

Rest of customers 69,673,658 69.94% 49,658,699 71.90% 38,193,315 73.20%

TOTAL 99,620,501 100.00% 69,062,590 100.00% 52,219,646 100.00%

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/2018 with our report dated 11/22/2018

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Certified Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 119 BANCO PATAGONIA S.A.

EXHIBIT I FINANCIAL LIABILITIES BROKEN DOWN BY TERMS REMAINING TO MATURITY AS OF 09/30/2018, 12/31/17 AND 12/31/16 (Amounts stated in thousands of pesos)

BREAKDOWN BY TERM AS OF 09/30/2018

Terms remaining to maturity Item 12 24 over 24 Total as of 1 month 3 months 6 months months months months 09/30/2018 Deposits 86,923,404 7,603,528 3,872,476 1,803,877 1,136,998 385 101,340,668 Nonfinancial government sector 7,082,040 1,845,539 1,743,948 5,772 - - 10,677,299 Financial sector 72,732 - - - - - 72,732 Nonfinancial private sector and foreign 79,768,632 5,757,989 2,128,528 1,798,105 1,136,998 385 90,590,637 residents Liabilities measured at fair value with 172,481 - - - - - 172,481 changes through profit or loss Derivative financial instruments 1,113,876 - - - - - 1,113,876 Repo transactions 183,611 - - - - - 183,611 Other financial institutions 183,611 - - - - - 183,611 Other financial liabilities 7,243,712 - - - - - 7,243,712 Financing facilities received from the 1,477,908 936,354 1,480,780 197,667 367,747 1,388,366 5,848,822 BCRA and other financial institutions Corporate bonds issued 241,878 511,124 975,718 84,036 920,804 211,331 2,944,891

TOTAL 97,356,870 9,051,006 6,328,974 2,085,580 2,425,549 1,600,082 118,848,061

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/2018 with our report dated 11/22/2018

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Certified Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 120 BANCO PATAGONIA S.A.

EXHIBIT I FINANCIAL LIABILITIES BROKEN DOWN BY TERMS REMAINING TO MATURITY AS OF 09/30/2018, 12/31/17 AND 12/31/16 (Amounts stated in thousands of pesos)

BREAKDOWN BY TERM AS OF 12/31/2017

Terms remaining to maturity Items 24 over 24 Total as of 1 month 3 months 6 months 12 months months months 12/31/2017 Deposits 42,004,360 25,416,748 2,291,298 546,927 122,740 1,052 70,383,125 Nonfinancial government sector 4,562,104 59,331 26,120 19,341 - - 4,666,896 Financial sector 13,179 - - - - - 13,179 Nonfinancial private sector and foreign 37,429,077 25,357,417 2,265,178 527,586 122,740 1,052 65,703,050 residents Liabilities measured at fair value with 124,934 - - - - - 124,934 changes through profit or loss Derivative financial instruments 14,058 - - - - - 14,058 Repo transactions 1,857,080 - - - - - 1,857,080 Other financial institutions 1,857,080 - - - - - 1,857,080 Other financial liabilities 6,020,069 - - - - - 6,020,069 Financing facilities received from the 962,937 189,185 219,553 97,748 - 903,339 2,372,762 BCRA and other financial institutions Corporate bonds issued 240,773 157,215 297,483 1,247,129 529,421 369,161 2,841,182

TOTAL 51,224,211 25,763,148 2,808,334 1,891,804 652,161 1,273,552 83,613,210

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/2018 with our report dated 11/22/2018

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Certified Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 121 BANCO PATAGONIA S.A.

EXHIBIT I FINANCIAL LIABILITIES BROKEN DOWN BY TERMS REMAINING TO MATURITY AS OF 09/30/2018, 12/31/17 AND 12/31/16 (Amounts stated in thousands of pesos)

BREAKDOWN BY TERM AS OF 12/31/2016

Terms remaining to maturity Item over 24 Total as of 1 month 3 months 6 months 12 months 24 months months 12/31/2016

Deposits 44,434,058 7,383,811 410,964 778,145 9,943 - 53,016,921 Nonfinancial government sector 2,681,340 573,120 42,931 - - - 3,297,391 Financial sector 6,030 - - - - - 6,030 Nonfinancial private sector and 41,746,688 6,810,691 368,033 778,145 9,943 - 49,713,500 foreign residents Derivative financial instruments 11,606 - - - - - 11,606 Repo transactions 135,238 - - - - - 135,238

Other financial institutions 135,238 - - - - - 135,238 Other financial liabilities 3,226,977 - - - - - 3,226,977 Financing facilities received from the BCRA and other financial 486,512 343,745 460,854 420,826 - 709,774 2,421,711 institutions Corporate bonds issued 25,659 508,459 197,429 707,451 298,371 210,911 1,948,280

TOTAL 48,320,050 8,236,015 1,069,247 1,906,422 308,314 920,685 60,760,733

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/2018 with our report dated 11/22/2018

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Certified Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 122 BANCO PATAGONIA S.A.

EXHIBIT J CHANGES IN ALLOWANCES AND PROVISIONS AS OF 09/30/2018 AND 09/30/2017 (Amounts stated in thousands of pesos)

CHANGES IN ALLOWANCES AND PROVISIONS AS OF 09/30/2018

Balances at Decreases Balance as of Item beginning of Increases Reversals 09/30/2018 year Uses

INCLUDED IN LIABILITIES

For contingent commitments - 1,464 - - 1,464 For administrative, disciplinary and 33 - - - 33 criminal sanctions Other 214,106 194,122 8,487 7,629 392,112

Labor lawsuits 32,862 8,949 - 1,400 40,411

Complaints, proceedings, appeals 57,816 165,936 8,313 1,088 214,351

Tax lawsuits 123,428 19,237 174 5,141 137,350

TOTAL ALLOWANCES AND PROVISIONS 214,139 195,586 8,487 7,629 393,609

CHANGES IN ALLOWANCES AND PROVISIONS AS OF 09/30/2017

Balances at Decreases Balance as of Item beginning of Increases Reversals 09/30/17 year Uses

INCLUDED IN LIABILITIES

For administrative, disciplinary and 33 - - - 33 criminal sanctions Other 140,602 39,631 18,027 3,828 158,378

Labor lawsuits 34,744 5,088 - - 39,832

Complaints, proceedings, appeals 59,503 3,005 6,142 3,790 52,576

Tax lawsuits 46,355 31,538 11,885 38 65,970

TOTAL ALLOWANCES AND PROVISIONS 140,635 39,631 18,027 3,828 158,411

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/2018 with our report dated 11/22/2018

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Certified Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 123 BANCO PATAGONIA S.A.

EXHIBIT L BALANCES IN FOREIGN CURRENCY AS OF 09/30/2018, 12/31/17 AND 12/31/16 (Amounts stated in thousands of pesos)

INFORMATION AS OF 09/30/2018

Head office and Brazilian Item Total as of US dollar Euro Other branches in 09/30/2018 real Argentina ASSETS Cash and bank deposits 16,233,765 16,233,765 15,174,266 964,706 16,611 78,182 Debt securities measured at fair value with 109,156 109,156 109,156 - - - changes through profit or loss Other financial assets 104,320 104,320 104,296 24 - - Loans and other financing facilities 24,726,166 24,726,166 24,425,549 300,617 - - Nonfinancial government sector 59,469 59,469 59,469 - - - Other financial institutions 637,687 637,687 637,687 - - - Nonfinancial private sector and foreign 24,029,010 24,029,010 23,728,393 300,617 - - residents Other debt securities 3,019,359 3,019,359 3,019,359 - - - Financial assets granted as collaterals 812,835 812,835 812,835 - - - Investments in equity instruments 4,443 4,443 4,304 139 - - TOTAL ASSETS 45,010,044 45,010,044 43,649,765 1,265,486 16,611 78,182

LIABILITIES Deposits 36,585,122 36,585,122 35,955,918 629,204 - - Nonfinancial government sector 469,842 469,842 469,842 - - - Financial sector 67 67 67 - - - Nonfinancial private sector and foreign 36,115,213 36,115,213 35,486,009 629,204 - - residents Other financial liabilities 3,432,920 3,432,920 3,254,541 78,852 - 99,527 Financing facilities received from the BCRA 4,258,856 4,258,856 3,966,397 292,459 - - and other financial institutions Other nonfinancial liabilities 30,699 30,699 30,150 549 - -

TOTAL LIABILITIES 44,307,597 44,307,597 43,207,006 1,001,064 - 99,527

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/2018 with our report dated 11/22/2018

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Certified Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 124 BANCO PATAGONIA S.A.

EXHIBIT L BALANCES IN FOREIGN CURRENCY AS OF 09/30/2018, 12/31/17 AND 12/31/16 (Amounts stated in thousands of pesos)

INFORMATION AS OF 12/31/2017

Head office and Brazilian Item Total as of US dollar Euro Other branches in 12/31/17 real Argentina ASSETS Cash and bank deposits 6,112,068 6,112,068 5,797,534 293,317 4,446 16,771 Debt securities measured at fair value with 8,909 8,909 8,909 - - - changes through profit or loss Other financial assets 167,114 167,114 167,103 11 - - Loans and other financing facilities 10,714,078 10,714,078 10,699,251 14,827 - - Nonfinancial government sector 90,203 90,203 90,203 - - - Other financial institutions 266,044 266,044 266,044 - - - Nonfinancial private sector and foreign 10,357,831 10,357,831 10,343,004 14,827 - - residents Other debt securities 2,128,901 2,128,901 2,128,901 - - - Financial assets granted as collaterals 25,440 25,440 25,440 - - - Investments in equity instruments 410 410 410 - - - TOTAL ASSETS 19,156,920 19,156,920 18,827,548 308,155 4,446 16,771

LIABILITIES Deposits 15,793,394 15,793,394 15,594,370 199,024 - - Nonfinancial government sector 142,197 142,197 142,197 - - - Financial sector 31 31 31 - - - Nonfinancial private sector and foreign 15,651,166 15,651,166 15,452,142 199,024 - - residents Repo transactions 4,551 4,551 4,551 - - - Other financial liabilities 1,585,724 1,585,724 1,563,598 22,126 - - Financing facilities received from the BCRA 1,185,704 1,185,704 1,179,363 6,341 - - and other financial institutions Other nonfinancial liabilities 77,024 77,024 77,024 - - - TOTAL LIABILITIES 18,646,397 18,646,397 18,418,906 227,491 - -

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/2018 with our report dated 11/22/2018

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Certified Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 125 BANCO PATAGONIA S.A.

EXHIBIT L BALANCES IN FOREIGN CURRENCY AS OF 09/30/2018, 12/31/17 AND 12/31/16 (Amounts stated in thousands of pesos)

INFORMATION AS OF 12/31/2016

Head office and Brazilian Item Total as of US dollar Euro Other branches in 12/31/16 real Argentina ASSETS Cash and bank deposits 4,640,889 4,640,889 4,489,764 129,473 2,845 18,807 Debt securities measured at fair value with 276,971 276,971 276,971 - - - changes through profit or loss Other financial assets 6,322 6,322 6,320 - 2 - Loans and other financing facilities 8,501,346 8,501,346 8,496,121 5,225 - - Other financial institutions 110,986 110,986 110,986 - - - Nonfinancial private sector and foreign 8,390,360 8,390,360 8,385,135 5,225 - - residents Other debt securities 2,249,999 2,249,999 2,249,999 - - - Financial assets granted as collaterals 16,009 16,009 16,009 - - - Investments in equity instruments 340 340 340 - - - TOTAL ASSETS 15,691,876 15,691,876 15,535,524 134,698 2,847 18,807

LIABILITIES Deposits 11,350,153 11,350,153 11,231,671 118,482 - - Nonfinancial government sector 90,641 90,641 90,641 - - - Financial sector 38 38 38 - - - Nonfinancial private sector and foreign 11,259,474 11,259,474 11,140,992 118,482 - - residents Other financial liabilities 622,383 622,383 604,445 17,938 - - Financing facilities received from the BCRA 1,843,968 1,843,968 1,842,265 1,703 - - and other financial institutions Other nonfinancial liabilities 8,872 8,872 8,872 - - - TOTAL LIABILITIES 13,825,376 13,825,376 13,687,253 138,123 - -

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228

126 BANCO PATAGONIA S.A.

EXHIBIT R LOSS IMPAIRMENT ADJUSTMENT - ALLOWANCE FOR LOAN LOSSES AS OF 09/30/2018 AND 09/30/2017 (Amounts stated in thousands of pesos)

INFORMATION AS OF 09/30/2018

Decreases Balances at Balances as Item Increases (*) beginning of of 09/30/2018 period Reversals Uses

Other financial assets 8,477 6,324 1,613 2,423 10,765 Loans and other financing 2,506,692 817,652 54,962 98,868 3,170,514 facilities Other financial institutions 21,665 9,941 - 7 31,599 Nonfinancial private sector and 2,485,027 807,711 54,962 98,861 3,138,915 foreign residents Overdrafts 135,674 65,116 176 10,981 189,633

Notes 413,665 213,083 - 8,578 618,170

Mortgage loans 6,753 3,057 - - 9,810

Car loans 108,548 45,869 4,186 7,535 142,696

Consumer 474,675 83,527 - 25,987 532,215

Credit cards 168,639 2,962 - 60 171,541

Finance lease 19,239 3,077 - 499 21,817

Other 1,157,834 391,020 50,600 45,221 1,453,033

TOTAL ALLOWANCES AND 2,515,169 823,976 56,575 101,291 3,181,279 PROVISIONS

(*) It includes quotation gains.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/2018 with our report dated 11/22/2018

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Certified Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 127 BANCO PATAGONIA S.A.

EXHIBIT R LOSS IMPAIRMENT ADJUSTMENT - ALLOWANCE FOR LOAN LOSSES AS OF 09/30/2018 AND 09/30/2017 (Amounts stated in thousands of pesos)

INFORMATION AS OF 09/30/2017

Decreases Balances at Balances as Item Increases beginning of of 09/30/2017 period Reversals Uses

Other financial assets 5,747 4,295 - 1,419 8,623

Loans and other financing facilities 1,578,914 222,592 3,021 81,629 1,716,856

Other financial institutions 16,932 684 - 272 17,344

Nonfinancial private sector and 1,561,982 221,908 3,021 81,357 1,699,512 foreign residents Overdrafts 92,280 17,523 152 7,673 101,978

Notes 217,692 26,132 - 7,842 235,982

Mortgage loans 25,145 - - 3,463 21,682

Car loans 72,456 59,456 2,869 13,757 115,286

Consumer 309,299 53,277 - 19,879 342,697

Credit cards 110,976 5,459 - 58 116,377

Finance lease 17,490 5,809 - 116 23,183

Other 716,644 54,252 - 28,569 742,327

TOTAL ALLOWANCES AND 1,584,661 226,887 3,021 83,048 1,725,479 PROVISIONS

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228

128 BANCO PATAGONIA S.A.

CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2018

CONTENTS Page

Condensed interim separate statements of financial position ...... 132 Condensed interim separate statements of income ...... 134 Condensed interim separate statements of income - Earnings per share ...... 135 Condensed interim separate statements of other comprehensive income ...... 136 Condensed interim separate statements of changes in shareholders’ equity ...... 137 Condensed interim separate statements of cash flows 139 ...... Notes to the condensed interim separate financial statements ...... 141 Note 1– Reason for the preparation of separate financial statements Note 2 – Basis for the preparation of the financial statements Note 3 – Significant accounting policies Note 4 – Cash and bank deposits Note 5 – Debt securities measured at fair value with changes through profit or loss Note 6 – Derivative instruments Note 7 – Repo transactions Note 8 – Other financial assets Note 9– Loans and other financing facilities Note 10 – Other debt securities Note 11 – Financial assets granted as collaterals Note 12– Income tax Note 13– Investments in equity instruments Note 14– investment in subsidiaries, associates and joint ventures Note 15– Property, plant and equipment Note 16 – Intangible assets Note 17 – Other non financial assets Note 18– Non-current assets held for sale

129

BANCO PATAGONIA S.A.

CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2018

CONTENTS Page

Note 19 - Deposits Note 20 – Other financial liabilities Note 21– Financing facilities received from the BCRA and other financial institutions Note 22– Corporate bonds issued Note 23 – Other non financial liabilities Note 24 - Allowances and provisions Note 25 – Interest income Note 26 – Interest expense Note 27 – Fee income Note 28 – Fee expenses Note 29 – Net gain/loss on financial instruments measured at fair value with changes through profit or loss Note 30– Gold and foreign currency quoted price difference Note 31 – Other operating income Note 32 – Employee benefits Note 33 - Administrative expenses Note 34 – Other operating expenses Note 35– Fair value of financial instruments Note 36– Restricted assets Note 37– Minimum cash and capital requirements Note 38– BCRA accounting framework applied for the first time Note 39 - Transactions with Companies included in section 33, Companies Law No. 19550 Note 40– Compliance with provisions set forth by Law No. 25738 Note 41–CNV requirements to act as an Over-the-counter Broker Note 42 – Publication of the financial statements Note 43– Subsequent events

130

BANCO PATAGONIA S.A.

CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2018

CONTENTS Page

Exhibit A - Breakdown of government and corporate securities ...... 169 Exhibit B - Loans and other financing facilities classified by status and guarantees received ...... 172 Exhibit C - Loans and other financing facilities concentration...... 175 Exhibit D - Loans and other financing facilities broken down by term...... 176 Exhibit F– Changes in property, plant and equipment ...... 177 Exhibit F– Revaluation table of property, plant and equipment ...... 178 Exhibit F– Changes in investment property ...... 179 Exhibit H - Deposits concentration ...... 180 Exhibit I – Financial liabilities broken down by terms remaining to maturity ...... 181 Exhibit J - Changes in allowances and provisions ...... 182 Exhibit L - Balances in foreign currency ...... 183 Exhibit O - Derivative financial instruments ...... 184 Exhibit R– Loss impairment adjustment – Allowances for loan losses ...... 185

131

BANCO PATAGONIA S.A.

CONDENSED INTERIM SEPARATE STATEMENTS OF FINANCIAL POSITION AS OF 09/30/18, 12/31/17 AND 12/31/16 (Amounts stated in thousands of pesos)

ITEMS NOTES 09/30/2018 12/31/2017 12/31/2016

ASSETS Cash and bank deposits 4 29,152,785 14,134,281 10,665,233 Cash on hand 3,741,454 3,073,675 2,488,186 Financial institutions and correspondents 25,411,331 11,060,606 8,177,047 BCRA 24,562,726 10,742,091 7,343,095 Other in Argentina and from abroad 848,605 318,515 833,952 Debt securities measured at fair value with changes through 5 166,857 469,542 942,728 profit or loss (Exhibit A) Derivative financial instruments 6 400,648 34,201 10,312 Repo transactions 7 877,206 952,850 453,901 Other financial assets 8 2,007,353 1,488,176 169,307 Loans and other financing facilities (Exhibits B, C and D) 9 73,871,718 57,650,056 41,894,232 Nonfinancial government sector 303,855 450,660 479,860 Other financial institutions 4,392,274 3,235,857 2,195,114 Nonfinancial private sector and foreign residents 69,175,589 53,963,539 39,219,258 Other debt securities (Exhibit A) 10 15,233,985 12,748,115 11,179,799 Financial assets granted as collaterals 11 3,107,198 1,727,249 1,106,157 Investments in equity instruments (Exhibit A) 13 5,178 1,312 1,388 Investments in subsidiaries, associates and joint ventures 14 1,595,091 1,621,872 1,474,421 Property, plant and equipment (Exhibit F) 15 2,508,017 2,584,494 2,575,167 Intangible assets (Exhibit G) 16 67,322 46,774 26,368 Deferred income tax assets 449,471 - - Other non financial assets 17 307,536 259,074 213,394 Non-current assets held for sale 18 136,083 - -

TOTAL ASSETS 129,886,448 93,717,996 70,712,407

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228

132

BANCO PATAGONIA S.A.

CONDENSED INTERIM SEPARATE STATEMENTS OF FINANCIAL POSITION AS OF 09/30/18, 12/31/17 AND 12/31/16 (Amounts stated in thousands of pesos)

ITEM NOTES 09/30/2018 12/31/2017 12/31/2016

LIABILITIES Deposits (Exhibit H and I) 19 97,748,984 68,685,412 51,788,413 Nonfinancial government sector 10,157,530 4,666,896 3,297,391 Financial sector 100,195 46,607 35,410 Nonfinancial private sector and foreign residents 87,491,259 63,971,909 48,455,612 Liabilities measured at fair value with changes through profit 172,481 124,934 - or loss Derivative financial instruments (Exhibits I and O) 6 1,125,130 31,272 11,606 Repo transactions (Exhibit I) 7 183,611 1,857,080 135,238 Other financial liabilities (Exhibit I) 20 6,867,092 5,582,009 2,869,678 Financing facilities received from the BCRA and other financial 21 5,308,774 1,999,505 2,087,744 institutions (Exhibit I) Corporate bonds issued 22 - - 348,168 Current income tax liabilities 12 a) 983,540 759,303 735,917 Allowances and provisions (Exhibit J) 24 391,777 208,480 134,846 Deferred income tax liabilities - 19,226 210,074 Other nonfinancial liabilities 23 2,836,610 1,987,493 1,656,211

TOTAL LIABILITIES 115,617,999 81,254,714 59,977,895

SHAREHOLDERS’ EQUITY Share capital 719,145 719,145 719,145 Non-capitalized contributions 217,191 217,191 217,191 Retained earnings 8,442,024 6,664,419 5,029,804 Unappropriated retained earnings (170,594) 266,820 267,728 Other comprehensive income 1,573,268 1,477,910 1,231,652 Income for the period 3,487,415 3,117,797 3,268,992

TOTAL SHAREHOLDERS’ EQUITY 14,268,449 12,463,282 10,734,512

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 129,886,448 93,717,996 70,712,407

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228

133

BANCO PATAGONIA S.A.

CONDENSED INTERIM SEPARATE STATEMENTS OF INCOME AS OF 09/30/18 AND 09/30/17 (Amounts stated in thousands of pesos)

THREE-MONTH PERIOD ENDED NINE-MONTH PERIOD ENDED ITEMS NOTES 09/30/2018 09/30/2017 09/30/2018 09/30/2017

Interest income 25 5,836,230 2,819,227 14,110,768 8,681,691 Interest expense 26 (2,732,362) (1,178,868) (5,809,002) (3,165,396) Interest income/loss 3,103,868 1,640,359 8,301,766 5,516,295

Fee income 27 1,066,607 835,124 2,951,664 2,322,920 Fee expenses 28 (150,320) (107,681) (378,729) (281,785) Fee income/loss 916,287 727,443 2,572,935 2,041,135

Net gain on financial instruments measured at fair 29 717,937 546,187 1,028,031 860,939 value through profit or loss Gold and foreign currency quoted price difference 30 215,264 58,617 600,086 319,201 Other operating income 31 423,406 346,844 1,275,881 975,977 Charge for Loan Losses (624,278) (149,943) (1,331,580) (397,841) Net operating income 4,752,484 3,169,507 12,447,119 9,315,706

Benefits to personnel 32 (1,116,845) (815,497) (3,277,356) (2,554,144) Administrative expenses 33 (832,268) (576,060) (2,183,948) (1,671,185) Assets depreciation and impairment of value (51,191) (42,199) (146,419) (121,366) Other operating expenses 34 (1,007,279) (627,857) (2,334,380) (1,701,156) Operating income 1,744,901 1,107,894 4,505,016 3,267,855

Gain/loss on associates and joint ventures 134,288 97,816 447,951 447,703 Income before tax relating to continuing 1,879,189 1,205,710 4,952,967 3,715,558 operations Income tax relating to continuing operations 12 (b) (529,414) (352,388) (1,465,552) (1,144,055) Net income from continuing operations 1,349,775 853,322 3,487,415 2,571,503

INCOME FOR THE PERIOD 1,349,775 853,322 3,487,415 2,571,503

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228

134

BANCO PATAGONIA S.A.

CONDENSED INTERIM SEPARATE STATEMENTS OF INCOME AS OF 09/30/18 AND 09/30/17 (Amounts stated in thousands of pesos)

THREE-MONTH PERIOD ENDED NINE-MONTH PERIOD ENDED EARNINGS PER SHARE 09/30/2018 09/30/2017 09/30/2018 09/30/2017

NUMERATOR Net income attributable to the shareholders of the parent 1,349,775 853,322 3,487,415 2,571,503 company Net income attributable to the shareholders of the parent 1,349,775 853,322 3,487,415 2,571,503 company adjusted to reflect dilution

DENOMINATOR Weighted average outstanding common shares for the year 719,145 719,145 719,145 719,145 Weighted average outstanding common shares for the 719,145 719,145 719,145 719,145 period adjusted to reflect dilution

Earnings per basic share 1.877 1.187 4.849 3.576

Earnings per diluted share 1.877 1.187 4.849 3.576

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228

135

BANCO PATAGONIA S.A.

CONDENSED INTERIM SEPARATE STATEMENTS OF OTHER COMPREHENSIVE INCOME AS OF 09/30/18 AND 09/30/17 (Amounts stated in thousands of pesos)

THREE-MONTH PERIOD ENDED NINE-MONTH PERIOD ENDED ITEM 09/30/2018 09/30/2017 09/30/2018 09/30/2017 INCOME FOR THE PERIOD 1,349,775 853,322 3,487,415 2,571,503

Components of other comprehensive income that will be reclassified to income for the period

Exchange differences on translation of financial 91,505 5,669 177,777 11,664 statements Exchange differences for the period 122,007 8,722 237,036 17,945 Income tax (30,502) (3,053) (59,259) (6,281)

Gains or losses on financial instruments carried at fair (23,674) 2,271 (47,933) (380) value through OCI (paragraph 4.1.2 of IFRS 9) Gains on financial instruments carried at fair value (33,819) 3,488 (68,475) (584) through OCI Income tax 10,145 (1,217) 20,542 204

Equity in other comprehensive income of associates and joint ventures recognized by using the equity (6,532) 1,040 (34,486) 12,952 method

Income for the period arising from the equity in other comprehensive income of associates and joint ventures (6,532) 1,040 (34,486) 12,952 recognized by using the equity method

TOTAL OTHER COMPREHENSIVE INCOME THAT WILL 61,299 8,980 95,358 24,236 BE RECLASSIFIED TO INCOME FOR THE PERIOD

TOTAL OTHER COMPREHENSIVE INCOME 61,299 8,980 95,358 24,236

TOTAL OTHER COMPREHENSIVE INCOME 1,411,074 862,302 3,582,773 2,595,739

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228

136

BANCO PATAGONIA S.A.

CONDENSED INTERIM SEPARATE STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY AS OF 09/30/18 (Amounts stated in thousands of pesos)

Non - Capital capitalized Other comprehensive income Retained earnings stock (1) contributions Accumulated gains/losses Total equity Total Exchange Unappropriat Revaluation from Attributable to shareholders’ Changes differences ed retained Additional of property, financial controlling equity as of Outstandin on earnings paid-in plant and instruments Other Legal Other interests 09/30/2018 g translation of capital equipment carried at fair financial (4) value with statements changes through OCI

Balances at beginning of 719,145 217,191 27,031 1,383,087 37,644 30,148 2,541,788 4,122,631 3,384,617 12,463,282 12,463,282 the year

Distribution of unappropriated retained earnings as approved by the Annual Shareholders’ Meeting held on 04/25/18 (2) - Legal reserve ------711,042 - (711,042) - - - Optional reserve – Future distribution of ------1,066,563 (1,066,563) - - earnings - Cash dividends (3) ------(1,777,606) (1,777,606) (1,777,606)

Income for the period ------3,487,415 3,487,415 3,487,415

Other comprehensive income for the period - - 177,777 - (47,933) (34,486) - - - 95,358 95,358

Balances at period-end 719,145 217,191 204,808 1,383,087 (10,289) (4,338) 3,252,830 5,189,194 3,316,821 14,268,449 14,268,449

(1) See Note 28 to the consolidated financial statements. (2) See Note 44 to the consolidated financial statements. (3) It corresponds to $2.4718 per share. (4) See Note 38.1. Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228

137

BANCO PATAGONIA S.A.

CONDENSED INTERIM SEPARATE STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY AS OF 09/30/17 (Amounts stated in thousands of pesos)

Capital Non -capitalized Other comprehensive income Retained earnings stock (1) contributions Accumulated Total gains/losses Total equity Exchange Revaluation Unappropriat shareholder from financial Attributable to Changes differences on of property, ed retained s’ equity as Outstandin Additional instruments controlling translation of plant and Other Legal Other earnings of g paid-in capital carried at fair interests financial equipment 09/30/2017 value with statements (4) changes through OCI

Balances at beginning of 719,145. 217,191 - 1,205,366 4,373 21,913 1,887,990 3,141,814 3,536,720 10,734,512 10,734,512 the year

Distribution of unappropriated retained earnings as approved by the Annual Shareholders’ Meeting held on 04/26/17 (2) - Legal reserve ------653,798 - (653,798) - - - Optional reserve – Future distribution of ------980,817 (980,817) - - earnings - Cash dividends (3) ------(1,634,497) (1,634,497) (1,634,497)

Income for the period ------2,571,503 2,571,503 2,571,503

Other comprehensive income for the period - - 11,664 - (380) 12,952 - - - 24,236 24,236

Acquisition of non controlling interest (5) - - - 248 - - - - (788) (540) (540)

Balances at period-end 719,145 217,191 11,664 1,205,614 3,993 34,865 2,541,788 4,122,631 2,838,323 11,695,214 11,695,214 (1) See Note 28 to the consolidated financial statements. (2) See Note 46 to the consolidated financial statements. (3) It corresponds to $2.4718 per share. (4) See Note 38.1. (5) See Note 45 to the consolidated financial statements.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 22 138 BANCO PATAGONIA S.A.

CONDENSED INTERIM SEPARATE STATEMENTS OF CASH FLOWS FOR THE NINE-MONTH PERIOD ENDED 09/30/18 AND 09/30/17 (Amounts stated in thousands of pesos)

ITEM 09/30/18 09/30/17

Cash flows from operating activities

Income for the period before income tax 4,952,967 3,715,558

Adjustments to obtain cash flows from operating activities: (1,981,542) (1,180,591) Amortization and impairment of value 146,419 121,366 Charge for Loan Losses 1,331,580 397,841 Other adjustments (3,459,541) (1,699,798)

(Net increases) / decreases from operating assets: (11,931,173) (8,218,992) Debt securities measured at fair value with changes through profit or loss 331,041 (6,486,797) Derivative financial instruments (366,447) (44,959) Repo transactions 75,644 (562,343) Loans and other financing facilities (7,818,872) (5,464,400) Nonfinancial government sector (37,167) (38,999) Other financial institutions (594,906) (269,498) Nonfinancial private sector and foreign residents (7,186,799) (5,155,903) Other debt securities (1,926,257) 5,427,455 Financial assets granted as collaterals (1,379,949) (404,803) Investments in equity instruments (3,866) - Other assets (842,467) (683,145)

Net increases / (decreases) from operating liabilities: 21,639,595 7,894,714 Deposits 19,571,968 8,035,658 Nonfinancial government sector 2,848,052 692,008 Financial sector 29,280 5,327 Nonfinancial private sector and foreign residents 16,694,636 7,338,323 Liabilities measured at fair value with changes through profit or loss 47,547 77,291 Derivative financial instruments 1,093,858 7,080 Repo transactions (352,254) 288,720 Financing facilities received from the BCRA and other financial institutions (920,629) 116,153 Other liabilities 289,608 (630,188)

Income tax payments (1,535,374) (978,138)

TOTAL OPERATING ACTIVITIES (A) 11,144,473 1,232,551

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 139

BANCO PATAGONIA S.A.

CONDENSED INTERIM SEPARATE STATEMENTS OF CASH FLOWS FOR THE NINE-MONTH PERIOD ENDED 09/30/18 AND 09/30/17 (Amounts stated in thousands of pesos)

ITEM 09/30/18 09/30/17

Cash flows from investing activities

Payments: Purchase of property, plant and equipment, intangible assets and other assets (247,351) (140,684)

Collections: Sale of property, plant and equipment, intangible assets and other assets 281,428 43,377

TOTAL INVESTING ACTIVITIES (B) 34,077 (92,307)

Cash flows from financing activities

Payments: Unsubordinated corporate bonds - (358,314) Financing facilities from local financial institutions (162,127) (35,476)

TOTAL FINANCING ACTIVITIES (C) (162,127) (393,790)

EFFECTS OF EXCHANGE RATE CHANGES (D) 4,002,081 298,428

TOTAL CHANGES IN CASH FLOWS 09/30/18 09/30/17

NET INCREASE IN CASH AND CASH EQUIVALENTS 15,018,504 1,044,882 (A + B + C + D)

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 14,134,281 10,665,233

CASH AND CASH EQUIVALENTS AT PERIOD-END 29,152,785 11,710,115

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar

Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 22 140 BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE NINE- MONTH PERIOD ENDED 09/30/18 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 1 – REASON FOR THE PREPARATION OF SEPARATE FINANCIAL STATEMENTS

As indicated in Note 2 to the Consolidated financial statements, Banco Patagonia S.A. (the “Bank”) prepares its consolidated financial statements under IFRS as adapted by the BCRA. These financial statements of the Bank are presented as supplementary to the referred consolidated financial statements in order to meet the legal and regulatory requirements.

NOTE 2 – BASIS FOR THE PREPARATION OF THE FINANCIAL STATEMENTS

These condensed separate financial statements have been prepared in accordance with BCRA rules (hereinafter, BCRA accounting framework) which establish that the entities under its supervision must present financial statements prepared under IFRS, subject to the following exceptions:

a) Application of the impairment model of section 5.5. “Impairment of Value” of IFRS 9 “Financial Instruments”, applicable to “Allowance for loan losses” to be implemented as from January 1, 2020.

b) Application of IAS 29 “Financial Reporting in Hyperinflationary Economies” based on the enforcement of BCRA Communication “A” 3921. (See Note 3 to the consolidated financial statements)

Additionally, these separate financial statements include the additional information and exhibits required by the BCRA .

In order to avoid duplicating information already provided, please, refer to the consolidated financial statements in connection with the following aspects:

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 141 BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE NINE- MONTH PERIOD ENDED 09/30/18 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

• Functional and presentation currency (Note 3 to the consolidated financial statements) • Accounting estimates (Note 4 to the consolidated financial statements) • Significant accounting policies (Note 5 to the consolidated financial statements), except for the measurement of interests in subsidiaries. • IFRS issued but not yet in force (Note to the consolidated financial statements) • Share capital (Note 28 to the consolidated financial statements) • Transfer of financial assets (Note 40 to the consolidated financial statements) • Segment reporting (Note 41 to the consolidated financial statements) • Subsidiaries (Note 42 to the consolidated financial statements) • Related parties (Note 43 to the consolidated financial statements) • Distribution of earnings and restrictions (Note 44 to the consolidated financial statements) • Deposit Guarantee Insurance System (Note 46 to the consolidated financial statements) • Trust activity (Note 48 to the consolidated financial statements) • Custodian agent of mutual funds (Note 49 to the consolidated financial statements) • Sanctions imposed and proceedings filed by the BCRA (Note 50 to the consolidated financial statements) • Transactions with directors (Note 54 to the consolidated financial statements) • CNV requirement– Custody of the Bank’s Documentation (Note 55 to the consolidated financial statements)

NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES

The Bank has consistently applied the following accounting policies for all the reporting periods included in these financial statements and for the preparation of the Statement of financial position as of December 31, 2016 for the purposes of the transition to IFRS as adapted by the BCRA. Note 38 details the impact of transition in relation to the accounting standards established by the BCRA and previously applied. The items and amounts contained in the reconciliation included in this note are subject to change, and can only be considered final when the annual financial statements for fiscal 2018 are prepared.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 142 BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE NINE- MONTH PERIOD ENDED 09/30/18 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

The accounting policies applied are consistent with those considered for the preparation of the consolidated financial statements (see Note 5 to the consolidated financial statements), except for the disclosures made in the following paragraph: 3.1. Investments in subsidiaries Subsidiaries are all entities over which the Bank has control. The Bank controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. The Bank reassess whether it keeps the control over the entity when any of the conditions above changes. Interests in subsidiaries are recognized by the using the equity method. They are initially recognized at cost, including the transactions costs. After the initial recognition, the financial statements include the Bank’s share in profit or loss and in OCI of the investments recognized under the equity method until significant influence or joint control cease.

NOTE 4 – CASH AND BANK DEPOSITS

Cash and cash equivalents and bank deposits computed for the purposes of preparing the statement of cash flows include the following items: Item 09/30/18 12/31/17 09/30/17 12/31/16 Cash on hand 3,741,454 3,073,675 2,896,363 2,488,186 BCRA - Current account 24,562,726 10,742,091 8,296,390 7,343,095 Balances with financial institutions in Argentina 848,605 318,515 517,362 833,952 and abroad Total 29,152,785 14,134,281 11,710,115 10,665,233

NOTE 5 – DEBT SECURITIES MEASURED AT FAIR VALUE WITH CHANGES THROUGH PROFIT OR LOSS Information about debt securities measured at fair value with changes through profit or loss as of September 30, 2018 and December 31, 2017 is detailed in Exhibit “A” Breakdown of government and corporate securities to this separate financial statements. NOTE 6 – DERIVATIVE FINANCIAL INSTRUMENTS In the ordinary course of business, the Group completed forward foreign currency transactions with daily or monthly settlement of differences without delivery of the underlying assets, forward of foreign currency transactions as well as interest rates swap. Such transactions do not qualify as hedging as per IFRS 9 Financial Instruments. The referred instruments are measured at fair value and changes in fair value are recognized in the Consolidated statement of income in the lines “Net Gain/ loss on financial assets carried at fair value with changes recognized through profit or loss”. Breakdown is as follows: Item 09/30/18 12/31/17 12/31/16 Effective securities

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 143 BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE NINE- MONTH PERIOD ENDED 09/30/18 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Assets 400,648 34,201 10,312 Forward foreign currency transactions 391,636 28,102 7,291 Forward Foreign currency 9,012 6,099 3,021 Liabilities 1,125,130 31,272 11,606 Forward foreign currency transactions - 14,058 - Forward Foreign currency 1,113,876 17,214 11,606 Interest rate swaps 11,254 - - Notional securities Assets 318,902 849,770 75,583 Forward foreign currency transactions 118,533 48,850 66,583 Forward Foreign currency 369 920 9,000 Interest rate swaps 200,000 800,000 - Liabilities 123,476 48,886 137,886 Forward foreign currency transactions 3,000 - 92,299 Forward Foreign currency 120,476 48,886 45,587

NOTE 7 – REPO TRANSACTIONS The repo transactions of the Bank are included in Note 10 to the consolidated financial statements, as it is the only entity of the Group that performs these transactions. NOTE 8 – OTHER FINANCIAL ASSETS Breakdown is as follows: 09/30/18 12/31/17 12/31/16 Measured at amortized cost Receivables from spot sales of foreign currency 1,255,551 765,659 - and government securities to be settled Receivables from spot sale of government 401,997 411,187 32,816 securities to be settled Sundry receivables 368,109 326,586 159,823 2,025,657 1,503,432 192,639 Less: Allowance for loan losses (18,304) (15,256) (23,332) (Exhibit R) Total 2,007,353 1,488,176 169,307

NOTE 9 – LOANS AND OTHER FINANCING FACILITIES The Bank holds loans and other financing facilities under a business model whose objective is to collect the contractual cash flows. Consequently, loans and other financing facilities are measured at amortized cost, unless the conditions thereof do not meet the “solely payments of principal and interest” criterion; then, they are measured at fair value with changes in profit or loss.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 144 BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE NINE- MONTH PERIOD ENDED 09/30/18 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Loans and other financing facilities classified on the basis of their measurement are as follows:

Breakdown 09/30/18 12/31/17 12/31/16 Measured at amortized cost 76,878,233 59,467,146 43,225,428 Less: Allowance for loan losses (3,006,515) (1,817,090) (1,331,196) Total 73,871,718 57,650,056 41,894,232

Breakdown is as follows: Breakdown 09/30/18 12/31/17 12/31/16 Overdrafts 10,146,613 7,153,943 4,748,317 Notes 27,450,730 19,253,518 16,409,822 Mortgage loans 766,393 111,453 66,160 Consumer 9,925,188 9,305,796 6,385,742 Credit cards 11,558,250 10,300,060 7,246,768 Finance lease 1,143,475 1,369,775 1,455,861 Other 15,887,584 11,972,601 6,912,758 Sub - Total 76,878,233 59,467,146 43,225,428 Less: Allowance for loan losses (Exhibit R) (3,006,515) (1,817,090) (1,331,196) Total 73,871,718 57,650,056 41,894,232 Loans and financing facilities classified by status (determined according to the BCRA criteria) and guarantees received as well as the reconciliation of information and accounting balances are reported in Exhibit “B”. Information about loan and other financing facilities concentration as well as the reconciliation of information and accounting balances is reported in Exhibit “C”.

Allowances for loan and other financing facilities losses Changes in allowances according to the financing classification are reported in Exhibit “R”, Loss impairment adjustment–Allowance for loan losses NOTE 10 – OTHER DEBT SECURITIES

Information about other debt securities measured at fair value with changes through OCI as of September 30, 2018 and December 31, 2017 is detailed in Exhibit “A” Breakdown of government and corporate securities to this separate financial statements.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 145 BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE NINE- MONTH PERIOD ENDED 09/30/18 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 11 – FINANCIAL ASSETS GRANTED AS COLLATERALS

Financial assets granted as collaterals as of September 30, 2018, December 31, 2017 and 2016 are broken down as follows: 09/30/18 12/31/17 12/31/16 Special guarantee accounts 1,146,109 886,206 633,603 BCRA - Financial trusts under guarantee of OCT 1,256,083 300,875 153,087 Treasury bills in USD, maturity 02/08/19 760,955 - - - BCRA Securities- Maturity 10/17/18 487,028 - - - Pesos offered as security 8,100 - - - Other - 300,875 153,087 Security deposits – Credit and debit card 412,721 291,862 189,215 managers

Government securities – IADB loan – Global Credit Program for micro-, small- and 277,887 225,811 111,910 medium-sized enterprises - BCRA Bills- Maturity 10/17/18 277,887 - - - Other - 225,811 111,910 Other security deposits 14,398 22,495 18,342 Total 3,107,198 1,727,249 1,106,157

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 146 BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE NINE- MONTH PERIOD ENDED 09/30/18 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 12 – INCOME TAX a) Current income tax assets and liabilities: Breakdown is as follows: 09/30/18 12/31/17 12/31/16 Current income tax liabilities 983,540 759,303 735,917 Tax provision 1,937,668 1,862,989 1,494,400 Tax advances (948,907) (1,099,847) (758,366) Tax withholding (5,221) (3,839) (117) b) Income tax expense The income tax expense is assessed by multiplying income before income tax for the interim period by the best estimate made by Management of the annual effective tax rate that is expected for the fiscal year, adjusted by the effect for tax purposes of certain items fully recognized during the period.

The Group’s effective rate for the nine-month period ended September 30, 2016 was 28.88%, while for the nine-month period ended September 30, 2017, the rate accounted for 30.79%. The change in the effective rate was mainly caused by the reduction in the corporate income tax rate on unappropriated retained earnings established on December 29, 2017 within the framework of the tax reform. The reduction in the corporate income tax rate will be gradually implemented, going from 35% in year 2017 to 25% in 2020.

Income tax expense is broken down as follows:

09/30/18 09/30/17 Current tax 1,972,967 1,441,400 Deferred tax (507,415) (297,345) Income tax expense 1,465,552 1,144,055

NOTE 13 – INVESTMENTS IN EQUITY INSTRUMENTS

Information about investments in equity instruments as of September 30, 2018 and December 31, 2017 is detailed in Exhibit “A” Breakdown of government and corporate securities to this separate financial statements.

NOTE 14 – INVESTMENT IN SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 147 BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE NINE- MONTH PERIOD ENDED 09/30/18 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Investments in subsidiaries, associates and joint ventures as of September 30, 2018, December 31, 2017 and 2016 is broken down as follows: Breakdown 09/30/18 12/31/17 12/31/16

GPAT Compañía Financiera S.A.U. 773,056 952,086 1,005,208 Banco Patagonia (Uruguay) S.A. I.F.E. 436,015 232,046 190,915 Patagonia Inversora Sociedad Gerente de FCI 241,846 179,635 132,852 Interbanking S.A. 89,090 79,949 67,836 Patagonia Valores S.A. 35,366 69,395 30,956 Mercado Abierto Electrónico S.A. 16,166 9,220 3,809 Compensadora Electrónica S.A. 2,483 - - Provincanje S.A. 1,069 72 271 Prisma Medios de Pago S.A. (*) - 99,469 42,574 Total 1,595,091 1,621,872 1,474,421

(*) As of September 30, 2018, the investment in Prisma Medios de Pago S.A. was classified as Non current Assets held for sale (see Note 18).

NOTE 15 – PROPERTY, PLANT AND EQUIPMENT

The breakdown of property, plant and equipment of the Bank is disclosed in Exhibit “F” to the separate financial statements.

NOTE 16 – INTANGIBLE ASSETS

The breakdown of Intangible assets of the Bank is disclosed in note 19 and Exhibit “G” to the consolidated financial statements, as it is the only entity of the Group that holds such assets.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 148 BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE NINE- MONTH PERIOD ENDED 09/30/18 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 17 – OTHER NON FINANCIAL ASSETS Item 09/30/18 12/31/17 12/31/16 Advance payments 226,565 221,219 160,076 Assets acquired as security for loans 45,440 - - Investment property 13,650 13,650 11,370 Other miscellaneous assets 8,319 11,417 13,639 Works of art 3,691 3,691 3,649 Other 9,871 9,097 24,660 Total 307,536 259,074 213,394

Changes in the account Investment property including in Other non financial assets as of September 30, 2018 are shown in Exhibit “F” – Changes in Investment property to these financial statements.

Additionally, for the valuation thereof, the criteria informed in Note 18 to the consolidated financial statements have been applied.

NOTE 18 – NON CURRENT ASSETS HELD FOR SALE Breakdown is as follows:

Investment in associates

The Bank has recorded its interest in Prisma Medios de Pago S.A. in the amount of 136,083 as an asset held for sale, as approved by the Board of Directors at the meeting held on November 7, 2017.

NOTE 19 – DEPOSITS Information about deposits is disclosed in Exhibit “H”– Deposits concentration to these separate financial statements and the breakdown of deposits related to the nonfinancial private sector is as follows:

Item 09/30/18 12/31/17 12/31/16 Checking accounts 9,050,141 9,179,610 7,104,464 Savings accounts 40,817,973 29,873,681 18,053,859 Time deposit and investments 34,132,555 22,518,949 18,502,171 Investment accounts 805 673 6,209 Other 2,631,071 1,920,042 4,361,134 Interest and adjustment 858,714 478,954 427,775 Total 87,491,259 63,971,909 48,455,612

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 149 BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE NINE- MONTH PERIOD ENDED 09/30/18 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 20 – OTHER FINANCIAL LIABILITIES

Other financial liabilities are measured at amortized cost and they are broken down as follows:

Item 09/30/18 12/31/17 12/31/16 Credit card charges payable 2,913,985 3,044,454 1,885,381 Payables from spot purchase of government securities to be 350,361 538,402 10,535 settled Payables from spot purchase of foreign currency to be settled 39,800 18,885 - Payables from foreign trade transactions 1,420,000 648,934 475,493 Collections on account and on behalf of third parties 1,440,410 173,156 160,661 Sundry payables 702,536 1,158,178 337,608 Total 6,867,092 5,582,009 2,869,678

NOTE 21 – FINANCING FACILITIES RECEIVED FROM BCRA AND OTHER FINANCIAL INSTITUTIONS

Financial facilities received from BCRA and other financial institutions are measured at amortized cost and they are broken down as follows:

Breakdown 09/30/18 12/31/17 12/31/16 Financing facilities received from foreign financial institutions 4,053,159 1,164,678 1,556,011 Financing facilities received from local financial institutions 1,238,629 821,823 519,221 BCRA 16,987 13,004 12,513 Total 5,308,774 1,999,505 2,087,744

NOTE 22 – CORPORATE BONDS ISSUED

The Bank’s Corporate bonds program in force is described in Note 25 to the consolidated financial statements and to date, no corporate bonds series have been issued under the referred Program.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 150 BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE NINE- MONTH PERIOD ENDED 09/30/18 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 23 – OTHER NON FINANCIAL LIABILITIES

Other non financial liabilities are measured at amortized cost and they are broken down as follows:

Item 09/30/18 12/31/17 12/31/16 Payroll and social security contributions payable 651,909 502,235 359,912 Other withholdings and collections 479,699 480,107 515,915 Other taxes payable 444,174 283,872 203,301 Other nonfinancial liabilities 388,465 247,439 258,168 Advance payments received 332,495 20,298 31,642 Other short term employees’ benefits payable 295,790 211,253 121,318 Social security payment orders pending settlement 203,545 125,440 105,549 Payroll withholdings payable 32,089 43,326 58,067 Prepayments received for sale of other assets 6,580 70,604 407 Directors and supervisory auditors’ fees payable 1,864 2,919 1,932 Total 2,836,610 1,987,493 1,656,211

NOTE 24– ALLOWANCES AND PROVISIONS They have been set up to cover the amounts estimated necessary to face risks of probable occurrence, which, if verified, will result in a loss to the Bank. Changes in allowances and provisions for the nine-month period ended September 30, 2018 are disclosed in Exhibit “J” Changes in allowances and provisions to these financial statements.

Due to the nature of its business, the Bank has several pending lawsuits, for which provisions are set up when, in the opinion of Management and its legal counsel, it is likely that they may result in an additional liability and the amount may be reasonably estimated. According to the Bank’s Management and its legal counsel, no provision has been set up for all other legal actions against the Bank because they will not result in additional liabilities to those already recorded or will not have a material impact on the Bank's financial statements.

The Bank’s Management and its legal counsels consider that the cases of any potential disbursement for settlement are not material and there are no significant effects other than those disclosed in these financial statements.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 151 BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE NINE- MONTH PERIOD ENDED 09/30/18 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 25 – INTEREST INCOME

Breakdown is as follows:

Interest income 09/30/18 09/30/17 Notes 2,900,803 1,984,728 Consumer loans 2,610,119 1,829,582 Overdrafts 2,486,612 1,084,380 Government securities measured at fair value with changes through 2,247,978 834,792 OCI Credit cards 1,504,695 1,100,824 Other loans 1,090,774 468,917 Loans to the financial sector 452,399 303,667 Finance lease 233,882 232,750 Premium on reverse repo transactions with the financial sector 141,176 730,875 Other 442,330 111,176 Total 14,110,768 8,681,691

NOTE 26 –INTEREST EXPENSE Breakdown is as follows:

Interest expense 09/30/18 09/30/17 Time deposits 4,659,087 2,811,206 Deposits in savings accounts 392,297 44,712 Premium on repo transactions with the financial sector 161,369 89,120 Financing facilities received from financial institutions (Call) 144,189 56,985 Other financing facilities received from financial institutions 64,195 32,762 Other 387,865 130,611 Total 5,809,002 3,165,396

NOTE 27 – FEE INCOME Breakdown is as follows: Fee income 09/30/18 09/30/17 Deposits 992,349 712,995 Credit and debit cards 817,853 748,900 Packages of products 523,546 365,980 Collections 249,915 152,437 Foreign trade 151,058 114,931 Loans 40,155 89,827 Insurance 90,112 83,308 Securities 42,468 21,049 Other 44,208 33,493 Total 2,951,664 2,322,920

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 152 BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE NINE- MONTH PERIOD ENDED 09/30/18 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 28 – FEE EXPENSES Breakdown is as follows:

Fee expenses 09/30/18 09/30/17 Government sector 128,276 65,787 Related to credit and debit cards 68,840 39,291 Collections 41,994 27,903 Transfers 25,853 19,496 Related to securities 20,792 11,202 Other 92,974 118,106 Total 378,729 281,785

NOTE 29 – NET GAIN ON FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE WITH CHANGES THROUGH PROFIT OR LOSS Breakdown is as follows:

Net gain on financial instruments measured at fair value with 09/30/18 09/30/17 changes through profit or loss Government securities and instruments issued by the BCRA 932,267 722,395 Forward foreign currency transactions 84,300 119,236 Corporate bonds 10,081 9,802 Corporate securities 1,383 9,506 Total 1,028,031 860,939

NOTE 30 – GOLD AND FOREIGN CURRENCY QUOTED PRICE Breakdown is as follows:

Gold and foreign currency quoted price difference 09/30/18 09/30/17 Gains from purchase-sale of foreign currency 765,100 328,000 Translation into Argentine pesos of foreign currency assets and (165,014) (8,799) liabilities Total 600,086 319,201

NOTE 31 – OTHER OPERATING INCOME

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 153 BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE NINE- MONTH PERIOD ENDED 09/30/18 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Breakdown is as follows:

Other operating income 09/30/18 09/30/17 Related to other commissions 562,159 456,413 Commissions from lease of safe-deposit boxes 151,880 121,349 Proceeds from the sale of property, plant and equipment 93,058 7,653 Recovered receivables 78,793 33,573 Punitive interest 37,018 17,390 Other 352,973 339,599 Total 1,275,881 975,977

NOTE 32 – EMPLOYEE BENEFITS Breakdown is as follows:

Employee benefits 09/30/18 09/30/17 Salaries 2,461,189 1,965,445 Social security contributions 517,700 422,094 Services to personnel 99,356 69,235 Severance payments 77,644 54,268 Other benefits 121,467 43,102 Total 3,277,356 2,554,144

NOTE 33 – ADMINISTRATIVE EXPENSES Breakdown is as follows:

Administrative expenses 09/30/18 09/30/17 Taxes 377,842 280,772 Maintenance, conservation and repair expenses 369,325 228,497 Armored vehicle services 208,827 193,630 Rentals 170,287 130,779 Advertising and marketing 169,815 134,400 Surveillance services 157,838 142,190 Electric power and communications 150,813 98,106 Fees 107,512 89,798 Directors and supervisory auditors’ fees 73,099 63,694 Entertainment and per diem expenses 23,781 18,659 Other 374,809 290,660 Total 2,183,948 1,671,185

NOTE 34 – OTHER OPERATING EXPENSES

Breakdown is as follows:

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 154 BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE NINE- MONTH PERIOD ENDED 09/30/18 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Other operating expenses 09/30/18 09/30/17 Turnover tax 1,193,176 749,357 Related to commissions 689,093 585,341 Charge for other allowances 193,057 39,380 Contribution to the deposit guarantee fund 92,369 69,757 Other 166,685 257,321 Total 2,334,380 1,701,156

NOTE 35 – FAIR VALUE OF FINANCIAL INSTRUMENTS a) Assets and liabilities measured at fair value The fair value hierarchy of assets and liabilities measured at fair value as of September 30, 2018 is as follows: Fair value Fair value with with Book Amortized changes Item changes Level 1 Level 2 Level 3 balance cost through through profit or OCI loss Financial assets Debt securities measured at fair 166,857 - - 166,857 109,492 57,365 - value with changes through profit or loss Derivative financial 400,648 - - 400,648 - 400,648 - instruments Other debt securities 15,233,985 64,839 15,169,146 - 11,907,445 3,261,701 - Financial assets granted as 3,107,198 1,581,328 1,525,870 - 1,525,870 - - collaterals Investments in 5,178 - - 5,178 - 5,178 - equity instruments Total 18,913,866 1,646,167 16,695,016 572,683 13,542,807 3,724,892 -

Fair value Fair value with with Book Amortized changes changes Level 1 Level 2 Level 3 balance cost through through Item profit or OCI loss

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 155 BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE NINE- MONTH PERIOD ENDED 09/30/18 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Financial liabilities Liabilities measured at fair value with 172,481 - 172,481 172,481 - - changes through - profit or loss Derivative financial 1,125,130 - - 1,125,130 - 1,125,130 - instruments Total 1,297,611 - - 1,297,611 - 1,125,130 - The fair value hierarchy of assets and liabilities measured at fair value as of December 31, 2017 is as follows: Fair value Fair value with with Book Amortized changes Level Item changes Level 1 Level 2 balance cost through 3 through profit or OCI loss Financial assets Debt securities measured at fair value with changes 469,542 - - 469,542 449,360 20,182 - through profit or loss Derivative financial 34,201 - - 34,201 - 34,201 - instruments Other debt securities 12,748,115 - 12,748,115 - 11,895,215 852,900 - Financial assets granted as 1,727,249 1,187,549 539,700 - 539,700 - - collaterals Investments in equity 1,312 - - 1,312 1,312 - - instruments Total 14,980,419 1,187,549 13,287,815 505,055 12,885,587 907,283 -

Financial liabilities Liabilities measured at fair value with changes through 124,934 - - 124,934 124,934 - - profit or loss Derivative financial 31,272 - - 31,272 - 31,272 - instruments Total 156,206 - - 156,206 124,934 31,272 -

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 156 BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE NINE- MONTH PERIOD ENDED 09/30/18 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

The fair value hierarchy of assets and liabilities measured at fair value as of December 31, 2016 is as follows: Fair value Fair value with with Book Amortized changes Level Item changes Level 1 Level 2 balance cost through 3 through profit or OCI loss Financial assets Debt securities measured at fair value 942,728 - - 942,728 425,754 517,120 - with changes through profit or loss Derivative financial 10,312 - - 10,312 - 10,312 - instruments Other debt securities 11,179,799 - 11,179,799 - 791,631 10,388,168 - Financial assets 1,106,157 869,892 236,265 - 98,455 137,810 - granted as collaterals Investments in equity 1,388 - - 1,388 1,388 - - instruments Total 13,240,384 869,892 11,416,064 954,428 1,317,228 11,053,410 -

Financial liabilities Liabilities measured at fair value with changes ------through profit or loss Derivative financial 11,606 - - 11,606 - 11,606 - instruments Total 11,606 - - 11,606 - 11,606 - b)Transfers between hierarchy levels b.1) Transfers from level 1 to level 2 The following instruments measured at fair value were transferred from Level 1 to Level 2 of the fair value hierarchy:

Breakdown 09/30/18 12/31/17 Consolidation bonds 8th Series 1,959 - Argentine Government Bond in $ Private Badlar + 325 Maturity 737 - 2020 Argentine Treasury Bonds in $ adjusted by CER, maturity 2020 74 - Total 2,770 -

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 157 BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE NINE- MONTH PERIOD ENDED 09/30/18 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

These holdings were included in hierarchy level 1 as of December 31, 2017, and as of September 30, 2018, they were measured at fair value using yield curves for securities related to the same type of instrument, with the regular and habitual quoted price and of similar duration. b.2) Transfers from level 2 to level 1 The following instruments measured at fair value were transferred from Level 2 to Level 1 of the fair value hierarchy:

Breakdown 09/30/18 12/31/17 Guaranteed Bond – Decree No. 1579/02 - 19,799 Consolidation bonds 8th Series - 1,915 Par bonds $ STEP UP 2038 - 1,096 Argentine Treasury Bonds in $ adjusted by CER, maturity 2020 - 60 Total - 22,870

These holdings were included in hierarchy level 2 as of December 31, 2016, and as of December 31, 2017, they were carried at fair value by using the quoted prices in active markets. b.3) Valuation techniques of Levels 2 and 3 Below is a description of the financial instruments carried at fair value using valuation techniques based on observable market data (Level 2):

Financial assets and liabilities measured at fair value : it includes provincial debt securities and Treasury Bills in USD carried at fair value using yield curves for securities related to the same type of instrument, with the regular and habitual quoted price of similar duration.

Derivative financial instruments: it includes the fair value of forward transactions with settlement upon maturity of the transaction, estimated as the difference between the agreed-upon values and market prices, discounted at measurement date.

The Bank’s portfolio does not include financial instruments at fair value determined by applying Level 3 valuation techniques.

c) Fair value of financial assets and liabilities not measured at fair value

Below we describe the methodologies and assumptions used to determine the fair values of the main financial instruments not measured at fair value, when there are no quoted prices in the active markets for such instrument. • Assets and liabilities whose fair value is similar to the carrying amount

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 158 BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE NINE- MONTH PERIOD ENDED 09/30/18 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

For financial assets and liabilities that have short-term maturities (less than three months), it is considered that the carrying amount is similar to the fair value. This assumption is also applied to savings accounts, checking accounts and other deposits. • Fixed-rate financial instruments The fair value of financial assets was determined by discounting future cash flows at the market rates offered at each measurement date, for financial instruments of similar characteristics. The estimated fair value of fixed-interest rate deposits was determined by discounting future cash flows by using market interest rates for deposits with maturities similar to those of the Bank’s portfolio. • Variable-rate financial instruments The fair value of financial assets and liabilities accruing a variable rate was determined by discounting the estimated future cash flows considering the variable rate contractually applicable at measurement date, discounted by applying the market rates for financial instruments of similar characteristics and credit risk. The fair value hierarchy of assets and liabilities not measured at fair value as of Sunday, September 30, 2018 is as follows: Carrying Total fair Item FV level 1 FV level 2 FV level 3 amount value Financial assets Cash and bank deposits 29,152,785 (1) - - - Repo transactions 877,206 (1) - - - Other financial assets 2,007,353 2,006,890 - - 2,006,890 Loans and other financing facilities 73,871,718 69,570,304 - - 69,570,304 Financial liabilities Deposits 97,748,984 95,715,761 - - 95,715,761 Repo transactions 183,611 (1) - - - Other financial liabilities 6,867,092 (1) - - - Financing facilities received from the BCRA and other financial 5,308,774 (1) - - - institutions (1) The fair value is not reported because it is deemed to be similar to the carrying amount. The fair value hierarchy of assets and liabilities not measured at fair value as of December 31, 2017 is as follows: Carrying Total fair Item FV level 1 FV level 2 FV level 3 amount value Financial assets Cash and bank deposits 14,134,281 (1) - - - Repo transactions 952,850 (1) - - - Other financial assets 1,488,176 1,487,803 - - 1,487,803 Loans and other financing facilities 57,650,056 57,883,979 - - 57,883,979 Financial liabilities Deposits 68,685,412 69,102,804 - - 69,102,804 Repo transactions 1,857,080 (1) - - - Other financial liabilities 5,582,009 (1) - - -

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 159 BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE NINE- MONTH PERIOD ENDED 09/30/18 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Financing facilities received from the BCRA and other financial 1,999,505 (1) - - - institutions (1) The fair value is not reported because it is deemed to be similar to the carrying amount. The fair value hierarchy of assets and liabilities not measured at fair value as of December 31, 2016 is as follows: Carrying Total fair Item FV level 1 FV level 2 FV level 3 amount value Financial assets Cash and bank deposits 10,665,233 (1) - - - Repo transactions 453,901 (1) - - - Other financial assets 169,307 158,482 - - 158,482 Loans and other financing facilities 41,894,232 40,277,118 - - 40,277,118 Financial liabilities Deposits 51,788,413 51,788,413 - - 51,788,413 Repo transactions 135,238 (1) - - - Other financial liabilities 2,869,678 (1) - - - Financing facilities received from the BCRA and other financial 2,087,744 (1) - - - institutions (1) The fair value is not reported because it is deemed to be similar to the carrying amount.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 160 BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE NINE- MONTH PERIOD ENDED 09/30/18 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 36 – RESTRICTED ASSETS Item 09/30/18 12/31/17 12/31/16 Special guarantee accounts 1,146,109 886,206 633,603 BCRA - Financial trusts under guarantee of 1,256,083 300,875 153,087 OCT Treasury bills in USD, maturity 02/08/19 760,955 - - - BCRA Securities- Maturity 10/17/18 487,028 - - - Pesos offered as security 8,100 - - - Other - 300,875 153,087 Security deposits – Credit and debit card 412,721 291,862 189,215 managers

Government securities – IADB loan – Global Credit Program for micro-, small- and 277,887 225,811 111,910 medium-sized enterprises - BCRA Bills- Maturity 10/17/18 277,887 - - - Other - 225,811 111,910 Other security deposits 14,398 22,495 18,342 Sub - Total 3,107,198 1,727,249 1,106,157

Security deposits for repurchase agreements 20,575 206,527 15,055 Sub - Total 20,575 206,527 15,055

Total 3,127,773 1,933,776 1,121,212

NOTE 37 – MINIMUM CASH AND CAPITAL REQUIREMENTS The BCRA establishes different requirements that should be met by financial institutions regarding solvency, liquidity, maximum amount of loans that may be granted, among others.

The minimum cash requirement establishes that a financial institution shall keep liquid assets on deposits and other obligations recorded in each period. The following table shows the items computed as minimum cash requirements:

Minimum cash requirements 09/30/18 12/31/17 12/31/16 Cash and bank deposits BCRA - Current account 24,562,726 10,742,091 7,343,095 Other debt securities Argentine Treasury Bond in $ Fixed Rate, Maturity 2020 2,879,375 - - Financial assets granted as collaterals BCRA - Special guarantee accounts 1,146,109 886,206 633,603 Total 28,588,210 11,628,297 7,976,698

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 161 BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE NINE- MONTH PERIOD ENDED 09/30/18 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Minimum capital requirements breakdown is as follows:

Minimum capital requirements 09/30/18 12/31/17 12/31/16 Minimum capital requirements (A) 8,503,657 6,566,120 5,003,241 Credit risk 6,721,878 5,146,156 3,816,139 Market risk – Securities 26,915 17,312 27,345 Market risk - Currencies 49,710 21,734 46,021 Operational risk 1,705,154 1,380,918 1,113,736 Payment 11,731,021 9,782,507 7,959,307 SURPLUS (B - A) 3,227,364 3,216,387 2,956,066

NOTE 38 – BCRA ACCOUNTING FRAMEWORK APPLIED FOR THE FIRST TIME This note includes the reconciliations of the Shareholders’ equity statement balances as of December 31, 2017 and 2016 and as of September 30, 2017 and the income statement balances as of September 30, 2017 determined in accordance with the BCRA regulations in force at such reporting dates with the amounts resulting from applying the IFRS with the scope established by BCRA Communication “A” 6114 and supplementary rules.

Shareholders’ equity reconciliation Item Ref. 12/31/17 09/30/17 12/31/16

Shareholders’ equity as per prior financial statements 11,155,964 10,124,287 9,235,252

Adjustments under BCRA accounting framework applied for the first time Property, plant and equipment 1 1,817,923 1,826,859 1,854,409 Investment property 2 11,827 9,500 9,485 Loans and other financing facilities 3 (384,033) (346,600) (222,542) Debt securities 4 1,125 (44,588) 6,783 Deferred tax 5 (19,226) 81,194 (210,074) Investments in subsidiaries and associates 6 (101,684) 60,844 59,432 Other adjustments (18,614) (16,282) 1,767 Shareholders’ equity under the new BCRA accounting 12,463,282 11,695,214 10,734,512 framework

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 162 BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE NINE- MONTH PERIOD ENDED 09/30/18 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Reconciliation of profit or loss as of September 30, 2017

Other Total comprehen comprehen Net income for the Item Ref. sive income sive period for the income for period the period

Net income as per prior financial statements 2,523,532 - 2,523,532 Adjustments under IFRS applied for the first time as adapted by the BCRA Interest income 3.4 76,370 - 76,370 Interest expense (3,543) - (3,543) Fee income 3 (131,356) - (131,356) Administrative expenses 1 (49,686) - (49,686) Income tax 5 297,345 - 297,345 Gain/loss on investment in subsidiaries and associates 6 (11,000) - (11,000) Other adjustments 2 (130,159) - (130,159) Gains on financial instruments carried at fair value 4 - (380) (380) through OCI Foreign exchange differences arising from the conversion 6 - 11,664 11,664 of financial statements Equity in OCI of subsidiaries 6 - 12,952 12,952 Shareholders’ equity under the new BCRA accounting 2,571,503 24,236 2,595,739 framework

The main reconciling adjustments made to adopt the BCRA accounting framework are as follows:

1. Property, plant and equipment:

The Bank has opted for applying the revaluation model in accordance with IAS 16 “Property, plant and equipment” to all real estate used for business purposes, which, under the BCRA rules were recognized in Property, plant and equipment at cost.

Based on the significant increases in prices of real estate over the last years, the Bank considers that the revaluation model fairly reflects the value of these assets.

According to the revaluation method, after the initial recognition of assets, it is measured at fair value at the revaluation date less accumulated depreciation and the accumulated impairment, if applicable.

For the rest of the Property, plant and equipment items, the cost model is applied.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 163 BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE NINE- MONTH PERIOD ENDED 09/30/18 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

2. Investment property

In the case of leased assets, the Bank has opted for applying the fair value in accordance with IAS 40 “Investment property”. The assets under this category are revalued, while under BCRA former rules were recognized at cost in Miscellaneous assets.

For the rest of the Property, plant and equipment items, the cost model is applied.

3. Loans and other financings:

The Bank identifies the loan portfolio as a set of financial assets held within a business model whose objective is to hold assets in order to collect contractual cash flows over the life of the instrument. In accordance with IFRS 9 “Financial instruments”, such assets shall be carried at amortized cost, by using for the recognition of interest income the effective interest method, which considers the expected cash flows according to the contractual terms of the financial instrument, the commissions paid or received by the parties to the contract, the costs of the transaction (incremental costs directly attributable to the acquisition or disposal of an asset) and any other premium or discount.

Under the referred IFRS, incremental interest and costs attributable to each financing facilities are recognized at an effective interest rate, while under the BCRA former rules, interest was recognized by considering its accrual and the incremental costs and commissions when incurred.

Additionally, for financing facilities granted at rates lower than market rates, an initial recognition has been made at fair value by recognizing a loss.

4. Debt securities

In accordance with IFRS 9, the financial assets can be classified in three categories: at amortized cost, at fair value with changes through other comprehensive income and at fair value with changes through profit or loss, based on the business model of the Bank and the characteristics of the cash flows of each asset.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 164 BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE NINE- MONTH PERIOD ENDED 09/30/18 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

The adjustment determined herein for those assets not included in the volatility listings published by the BCRA corresponds to the valuation difference between the monthly acquisition value increased in terms of the internal rate of return (BCRA valuation) and the fair value (IFRS valuation).

Additionally, for those financial assets carried at fair value with changes through other comprehensive income, the Bank has recorded and disclosed in such OCI the difference between their valuation at amortized cost and fair value.

5. Deferred tax

In accordance with IAS 12, the income tax has been calculated by applying the deferred tax method, recognizing (i) the current tax that is expected to be paid or recovered and (ii) the deferred tax, that is, the income tax to be calculated or recovered as a result of the temporary differences and the accumulated tax loss carryforwards. The temporary differences are differences between the tax base of an asset or liability and its carrying amount. Under the former BCRA rules, such recognitions were not required.

6. Investments in subsidiaries and associates

Interests in subsidiaries –IFRS 10

As of September 30, 2018, the Bank has interests in the subsidiaries mentioned in Note 1 to the Consolidated Financial Statements.

The Bank has defined as an accounting policy that investments in subsidiaries, associates and joint ventures recorded in the statement of financial position shall be measured by using the equity method provided for by IAS 28.

The adjustment to such account arises from calculating the equity value by applying the equity method by considering the net equity of GPAT and de Banco Patagonia (Uruguay) S.A.I.F.E. under IFRS.

Investments in other companies– Investments in associates

As provided for by IAS 28 “Investments in associates and Joint ventures”, an associate is an entity over which the investor has significant influence. The significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control of those policies.

The Bank has identified companies in which it has significant influence and therefore, investments in these companies have been measured by the equity method described in IAS 28.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 165 BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE NINE- MONTH PERIOD ENDED 09/30/18 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Translation of foreign currency-IAS 21

As provided for by IAS 21 “Effects of changes in foreign exchange rates”, the translation differences related to the Bank’s interest in Banco Patagonia (Uruguay) S.A.I.F.E. were recognized and reclassified to “Other comprehensive income”.

NOTE 39 – TRANSACTIONS WITH COMPANIES INCLUDED IN SECTION 33, COMPANIES LAW No. 19550

The following table shows the Bank’s receivables from/payables to its subsidiaries and affiliates, and its parent company as of September 30, 2018 and December 31, 2017:

09/30/18 12/31/17 Patagonia Valores S.A. Other financial assets– sundry debtors 180 210 Deposits – Checking accounts 733 299 Deposits – Special checking account 2 35 Off-balance sheet accounts – Checks and securities in custody - 2,061

Patagonia Inversora S.A. Sociedad Gerente de F.C.I. Deposits – Checking accounts 168 749 Memorandum accounts – Checks and securities in custody 212,722 182,609

Banco Patagonia (Uruguay) S.A. I.F.E. Deposits – Checking accounts 6 6 Deposits – Special checking account 62 9 Off-balance sheet accounts – Checks and securities in custody 2,592,374 920,703 Off-balance sheet accounts – Guarantees received 30,922 29,748

GPAT Compañía Financiera S.A.U. Loans And other financing facilities– interbank loans (call options granted) 734,158 795,549 Loans and other financing facilities–Other financing facilities granted to local 368,437 301,057 financial institutions Debt securities– corporate bonds 140,949 77,130 Deposits – Checking accounts 27,463 33,428 Derivative financial liabilities 11,254 3,151 Off-balance sheet accounts–Derivatives –swap from variable to fixed 200,000 800,000 interest rate

Banco do Brasil S.A. Cash and bank deposits –Financial institutions and correspondents 99,507 3,013 Deposits – Checking accounts 8,259 4,498 Off-balance sheet accounts – Guarantees received 163,587 75,097 Off-balance sheet accounts – Guarantees received 70,751 17,460 Off-balance sheet accounts – Checks and securities in custody 19,851 20,053

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 166 BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE NINE- MONTH PERIOD ENDED 09/30/18 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

The Bank’s income (losses) for the nine-month period ended September 30, 2018 and 2017 resulting from transactions with its subsidiaries, related companies and its parent company is as follows:

09/30/18 09/30/17 Patagonia Valores S.A. Fees and other operating income - 2 Other operating income–other earnings 642 438

Patagonia Inversora S.A. Sociedad Gerente de F.C.I. Fees and other operating income - 4 Other operating income–other earnings 254 235

Banco Patagonia (Uruguay) S.A. I.F.E. Other operating income– fees 1 4

GPAT Compañía Financiera S.A.U. Interest income– Financial sector 202,937 130,245 Interest income– corporate bonds 28,876 8,592 Interest income– advances 649 231 Interest expense-Income/loss on interest rate swap 32,552 4,843 Interest expense– interest from financing facilities to local financial 701 2,440 institutions Fees and other operating income 21,666 16,757 Fee expenses 23,543 19,704 Other operating income–other earnings 6,353 2,755

Banco do Brasil S.A. Financial expenses – Interest on other loans from financial institutions 47 - Fees and other operating income 1 3 Fee expenses 12 - Other operating income–other earnings 406 319

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 167 BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE NINE- MONTH PERIOD ENDED 09/30/18 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 40 – COMPLIANCE WITH PROVISIONS SET FORTH BY LAW No. 25738 Banco Patagonia S.A. is a stock company organized under the laws of Argentina, the shareholders of which limit their liability to the paid-in shares subscribed in accordance with Law No. 19550. Therefore, in compliance with Law No. 25738, we report that neither the foreign majority shareholders nor the local or foreign shareholders are liable, in excess of such paid-in shares, for the obligations arising from the transactions performed by the Bank. NOTE 41 – CNV REQUIREMENT TO ACT AS AN OVER-THE-COUNTER BROKER Pursuant to the provisions established by the CNV in General Resolution No. 622/13, as amended by CNV General Resolution No. 731/2018, a breakdown of the minimum capital and cash contra-account requirements for each broker category is as follows:

Minimum Minimum cash Role capital contra-account Settlement and Clearing Agent and Comprehensive Trading Agent 18,000 9,000 Custodian agent of mutual funds (1) 2,750 2,750 Financial and Non-financial trust 3,000 3,000 Total 23,750 14,750

As of September 30, 2018, the Bank’s capital exceeds CNV's requirements and the minimum cash contra- account required is made up of funds deposited with the BCRA in current account No. 034 of Banco Patagonia S.A.

NOTE 42 – PUBLICATION OF FINANCIAL STATEMENTS Under Communication “A” 2813 and supplementary BCRA rules, the BCRA’s prior involvement is not required for the publication of these financial statements. NOTE 43 – SUBSEQUENT EVENTS No other events or transactions have occurred from period-end to the date of issuance of these financial statements that would have a material effect on the financial position of the Bank or the results of its operations as of September 30, 2018.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 168 BANCO PATAGONIA S.A.

EXHIBIT “A” BREAKDOWN OF GOVERNMENT AND CORPORATE SECURITIES AS OF 09/30/2018, 12/31/17 AND 12/31/16 (Amounts stated in thousands of pesos)

Holding Position Identifica Item tion Level Balance as of Balance as without Fair value Final Fair value 09/30/2018 of 12/31/17 Balance as options (1) of 12/31/16

DEBT SECURITIES MEASURED AT FAIR VALUE WITH CHANGES THROUGH PROFIT OR LOSS 166,857 166,857 469,542 942,728 (5,624) (5,624) In Argentina 166,857 166,857 469,542 942,728 (5,624) (5,624) Government securities 115,155 115,155 187,994 489,838 (57,326) (57,326) - Argentine Government Bond in USD 8.75%, 5458 108,235 1 108,235 5,054 - 108,235 108,235 maturity 2024 - Debt security, Class 1, Province of Rio Negro 2020 32922 5,999 2 5,999 - - 5,999 5,999 - International bonds of Argentina 6.25% % USD - 92581 717 1 717 - - 717 717 Maturity 2019 - Discount Bond in USD 8.28%, maturity 2033 45700 204 1 204 - - 204 204 - Other - 182,940 489,838 (172,481) (172,481) BCRA Bills 336 336 235,385 381,752 336 336 - BCRA Bills- Maturity 10/17/18 46831 204 1 204 - - 204 204 - BCRA Bills- Maturity 11/21/18 46832 132 1 132 - - 132 132 - Other - - 235,385 381,752 - - Corporate securities 51,366 51,366 46,163 71,138 51,366 51,366 - ON GPAT Compañía Financiera Series 28 Class 52583 24,988 2 24,988 25,045 - 24,988 24,988 “A” - ON GPAT Compañía Financiera Series 27 Class 52448 15,887 2 15,887 - - 15,887 15,887 “A” - ON GPAT Compañía Financiera Series 23 Class 51579 9,977 2 9,977 10,240 - 9,977 9,977 “B” - Other 514 514 10,878 71,138 514 514

(1) It includes “Holding” plus Deposits offered as security” “Loans" less “Deposits”.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 169 BANCO PATAGONIA S.A.

EXHIBIT “A” BREAKDOWN OF GOVERNMENT AND CORPORATE SECURITIES AS OF 09/30/2018, 12/31/17 AND 12/31/16 (Amounts stated in thousands of pesos)

Holding Position Identificati Balance as Item on Level Balance as without Fair value of Final Fair value of 12/31/17 Balance as options (1) 09/30/2018 of 12/31/16

MEASURED AT FAIR VALUE WITH CHANGES 15,169,146 15,169,146 12,748,115 11,179,799 16,759,855 16,759,855 THROUGH OCI In Argentina 15,169,146 15,169,146 12,748,115 11,179,799 16,695,016 16,695,016 Government securities 5,491,660 5,491,660 2,029,934 2,173,039 6,252,615 6,252,615 Argentine Treasury Bond, Fixed Rate, Maturity 2020 5330 3,028,125 2 3,028,125 - - 3,028,125 3,028,125 Treasury bills in USD, maturity 03/15/19 5261 1,431,827 1 1,431,827 - - 1,431,827 1,431,827 Treasury bills in USD, maturity 08/ 0272019 5250 560,704 1 560,704 - - 1,321,659 1,321,659 TD Prov. of Río Negro Class 1, 04/18/21 42016 183,233 1 183,233 - - 183,233 183,233 Treasury bills in USD, maturity 01/25/19 5249 152,533 1 152,533 - - 152,533 152,533 - TD Prov. of Río Negro Class 1, Maturity 2020 32922 71,993 2 71,993 58,449 - 71,993 71,993 - Treasury Bill of Neuquén C. 1 S.1 - Maturity 2020 32777 50,409 2 50,409 50,450 50,578 50,409 50,409 - TD Chubut in USD - Class 2 32487 5,922 2 5,922 - - 5,922 5,922 - Consolidation bond in $ Series 8 2571 1,959 2 1,959 - - 1,959 1,959 Treasury bills in USD, maturity 01/11/19 5248 1,865 1 1,865 - - 1,865 1,865 - Other 3,090 3,090 1,921,035 2,122,461 3,090 3,090 BCRA Bills 9,575,200 9,575,200 10,676,336 8,984,866 10,340,115 10,340,115 - BCRA Bills- Maturity 10/03/18 13253 5,454,172 1 5,454,172 - - 5,454,172 5,454,172 - BCRA Bills- Maturity 10/04/18 13254 3,961,096 1 3,961,096 - - 3,961,096 3,961,096 - BCRA Bills- Maturity 10/01/18 13251 149,258 1 149,258 . - 149,258 149,258 - BCRA Bills- Maturity 10/17/18 46831 9,682 1 9,682 - - 774,597 774,597 - BCRA Bills- Maturity 10/03/18 13253 992 1 992 - - 992 992 -Other - 10,676,336 8,984,866 - - Corporate securities 102,286 102,286 41,845 21,894 102,286 102,286 - ON GPAT Compañía Financiera Series 31 Class “A” 53266 42,615 1 42,615 - - 42,615 42,615 - ON GPAT Compañía Financiera Series 27 Class “B” 52449 19,992 1 19,992 20,815 - 19,992 19,992 - Fideicomiso Financiero CMR Falabella 70 Class B 53185 12,188 1 12,188 - - 12,188 12,188 - ON GPAT Compañía Financiera Series 28 Class “A” 52583 9,995 1 9,995 - - 9,995 9,995 - ON GPAT Compañía Financiera Series 32 Class “A” 53468 6,145 1 6,145 - - 6,145 6,145 - ON GPAT Compañía Financiera Series 27 Class “A” 52448 5,296 1 5,296 - - 5,296 5,296 - ON GPAT Compañía Financiera Series 23 Class “B” 51579 4,988 1 4,988 - - 4,988 4,988 - ON GPAT Compañía Financiera Series 30 Class “A” 52896 1,067 1 1,067 - - 1,067 1,067 - Other - 21,030 21,894 - -

(1) It includes “Holding” plus Deposits offered as security” “Loans" less “Deposits”.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 170 BANCO PATAGONIA S.A.

EXHIBIT “A” BREAKDOWN OF GOVERNMENT AND CORPORATE SECURITIES AS OF 09/30/2018, 12/31/17 AND 12/31/16 (Amounts stated in thousands of pesos)

Holding Position Identification Balance as Item Level Balance as Balance as of without Fair value of Final Fair value of 12/31/17 12/31/16 options (1) 09/30/2018

OTHER DEBT SECURITIES MEASURED AT - - 64,839 - - 64,839 64,839 AMORTIZED COST In Argentina - - 64,839 - - 64,839 64839 Government securities - - 10,199 - - 10,199 10,199 Bill of Córdoba 30th Series – Maturity 04/28/19 42043 - - 10,199 - - 10,199 10,199 Corporate securities - - 54,640 - - 54,640 54,640 - Fideicomiso Financiero Ribeiro 102 - Class “A” 53715 - - 42,251 - - 42,251 42,251 - Fideicomiso Financiero Ribeiro 101 - Class “A” 53644 - - 12,389 - - 12,389 12,389

Holding Position Identificatio Balance as Item n Level Balance as Balance as of without Fair value of Final Fair value of 12/31/17 12/31/16 options (1) 09/30/2018

EQUITY INSTRUMENTS 5,178 5,178 1,312 1,388 5,178 5,178

MEASURED AT FAIR VALUE WITH CHANGES 5,178 5,178 1,312 1,388 5,178 5,178 THROUGH PROFIT OR LOSS In Argentina 735 735 902 1,048 735 735 - Seguros de Depósitos S.A. - 493 2 493 493 493 493 493 - Compensadora Electrónica S.A. - - 2 - 89 89 - - - Miralejos S.A.C.F. y Agropecuaria - - 2 - 76 76 - - - Mercado a Término de Buenos Aires S.A. - 73 2 73 73 73 73 73 - Bolsa de Comercio de Mar del Plata S.A. - 56 2 56 56 56 56 56 - Argencontrol S.A. - 53 2 53 53 53 53 53 - Sanatorio Las Lomas S.A. - 47 2 47 47 47 47 47 - Celta Coop. Obras Ser. Tres Arroyos - 12 2 12 12 12 12 12 - Banelzip S.A. (2) - - 2 ------Other - 1 2 1 3 149 1 1 From abroad 4,443 4,443 410 340 4,443 4,443 - Banco Latinoamericano de Comercio Exterior S.A. - 4,294 2 4,294 344 291 4,294 4,294 Society for Worldwide Interbank Financial 149 2 149 66 49 149 149 Telecommunication -

(1) It includes “Holding” plus Deposits offered as security” and “Loans" less “Deposits”. (2) As of September 30, 2018, December 31, 2017 and 2016, the investment in such company amounts to $ 375.00.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 171 BANCO PATAGONIA S.A.

EXHIBIT B LOANS AND OTHER FINANCING FACILITIES CLASSIFIED BY STATUS AND GUARANTEES RECEIVED AS OF 09/30/2018, 12/31/17 AND 12/31/16 (Amounts stated in thousands of pesos)

COMMERCIAL LOAN PORTFOLIO 09/30/18 12/31/17 12/31/16

Performing 50,729,137 36,793,250 29,981,804

- With “A” preferred guarantees and counter- 2,443,351 1,707,995 1,171,828 guarantees - With “B” preferred guarantees or counter-guarantees 3,990,462 3,160,134 2,823,160 - Without preferred guarantees or counter-guarantees 44,295,324 31,925,121 25,986,816

Subject to special monitoring 466,420 153,482 266,340

In observation 1 848 13,060

- With “B” preferred guarantees or counter-guarantees 1 1 3,374 - Without preferred guarantees or counter-guarantees 847 9,686

In negotiation or under refinancing agreements 466,419 152,634 253,280

- With “B” preferred guarantees or counter-guarantees 424,474 146,460 234,376 - Without preferred guarantees or counter-guarantees 41,945 6,174 18,904

Troubled 12,420 8,778 44,004

- With “B” preferred guarantees or counter-guarantees - 5,806 23,468 - Without preferred guarantees or counter-guarantees 12,420 2,972 20,536

With high risk of insolvency 1,720 7,215 19,458

- With “B” preferred guarantees or counter-guarantees - 111 7,538 - Without preferred guarantees or counter-guarantees 1,720 7,104 11,920

Irrecoverable 333,796 131,088 55,465

- With “A” preferred guarantees and counter- 12,308 - 208 guarantees - With “B” preferred guarantees or counter-guarantees 190,622 83,268 9,128 - Without preferred guarantees or counter-guarantees 130,866 47,820 46,129

TOTAL COMMERCIAL LOAN PORTFOLIO 51,543,493 37,093,813 30,367,071

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 172 BANCO PATAGONIA S.A.

EXHIBIT B LOANS AND OTHER FINANCING FACILITIES CLASSIFIED BY STATUS AND GUARANTEES RECEIVED AS OF 09/30/2018, 12/31/17 AND 12/31/16 (Amounts stated in thousands of pesos)

CONSUMER AND/OR HOME LOAN PORTFOLIO 09/30/18 12/31/17 12/31/16

Performing 24,823,999 22,106,589 15,023,005 - With “A” preferred guarantees and counter- 640,234 285,250 100,841 guarantees - With “B” preferred guarantees or counter- 1,442,526 683,243 291,782 guarantees - Without preferred guarantees or counter- 22,741,239 21,138,096 14,630,382 guarantees Low risk 786,280 436,415 230,797 - With “A” preferred guarantees and counter- 13,110 800 128 guarantees - With “B” preferred guarantees or counter- 17,601 1,983 1,433 guarantees - Without preferred guarantees or counter- 755,569 432,632 229,235 guarantees Medium risk 440,593 218,108 46,065 - With “A” preferred guarantees and counter- 4,126 1,449 169 guarantees - With “B” preferred guarantees or counter- 5,261 2,957 238 guarantees - Without preferred guarantees or counter- 431,206 213,702 45,658 guarantees High risk 474,370 258,819 237,805 - With “A” preferred guarantees and counter- 3,049 135 397 guarantees - With “B” preferred guarantees or counter- 937 1,365 1,891 guarantees - Without preferred guarantees or counter- 470,384 257,319 235,517 guarantees Irrecoverable 190,954 134,093 41,871 - With “A” preferred guarantees and counter- 261 125 - guarantees - With “B” preferred guarantees or counter- 4,635 2,291 1,932 guarantees - Without preferred guarantees or counter- 186,058 131,677 39,939 guarantees Irrecoverable according to BCRA regulations 58 66 75 - Without preferred guarantees or counter- 58 66 75 guarantees TOTAL CONSUMER AND/OR HOME LOAN 26,716,254 23,153,090 15,579,617 PORTFOLIO

TOTAL GENERAL 78,259,747 60,246,903 45,946,688

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 173 BANCO PATAGONIA S.A.

EXHIBIT B LOANS AND OTHER FINANCING FACILITIES CLASSIFIED BY STATUS AND GUARANTEES RECEIVED AS OF 09/30/2018, 12/31/17 AND 12/31/16 (Amounts stated in thousands of pesos)

RECONCILIATION OF LOANS AND OTHER FINANCING FACILITIES AS PER SEPARATE STATEMENT OF FINANCIAL POSITION

BREAKDOWN 09/30/18 12/31/17 12/31/16

BALANCE AS PER EXHIBIT “B” 78,259,747 60,246,903 45,946,688

Items included in Exhibit “B” and not included in Loans and other (1,466,177) (728,958) (2,743,954) financing facilities

Off-balance sheet items– loans granted (unused balances), other guarantees provided and others covered by debtors classification (1,309,251) (651,007) (2,661,424) standards Other items (156,926) (77,951) (82,530)

Items not included in Exhibit “B” and included in Loans and other (2,921,852) (1,867,889) (1,308,502) financing facilities

Loans and other financing facilities- loans to personnel 333,974 289,648 218,375

Loans and other financing facilities–IFRS adjustment at effective (267,615) (340,447) (195,681) interest rate

Loans and other financing facilities– Allowances for loan losses (2,988,211) (1,817,090) (1,331,196)

BALANCE AS PER STATEMENT OF FINANCIAL POSITION 73,871,718 57,650,056 41,894,232

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 174 BANCO PATAGONIA S.A.

EXHIBIT C LOANS AND OTHER FINANCING FACILITIES CONCENTRATION AS OF 09/30/2018, 12/31/17 AND 12/31/16 (Amounts stated in thousands of pesos)

FINANCING FACILITIES

Number of customers 09/30/18 12/31/17 12/31/16 Outstanding % of total Outstanding % of total Outstanding % of total amount portfolio amount portfolio amount portfolio

10 largest customers 13,026,525 16.7% 6,261,237 10.4% 5,195,157 11.3%

50 next largest customers 17,148,938 21.9% 10,019,759 16.7% 8,162,865 17.8%

100 next largest customers 8,989,955 11.5% 7,284,300 12.0% 6,065,318 13.2%

Rest of customers 39,094,329 49.9% 36,681,607 60.9% 26,523,348 57.7%

TOTAL 78,259,747 100,0% 60,246,903 100.0% 45,946,688 100.0%

RECONCILIATION OF LOANS AND OTHER FINANCING FACILITIES AS PER SEPARATE STATEMENT OF FINANCIAL POSITION

BREAKDOWN 09/30/18 12/31/17 12/31/16

BALANCE AS PER EXHIBIT “C” 78,259,747 60,246,903 45,946,688 Items included in Exhibit “C” and not included in Loans and other (1,466,177) (728,958) (2,743,954) financing facilities Off-balance sheet items– loans granted (unused balances), other guarantees provided and others covered by debtors classification (1,309,251) (651,007) (2,661,424) standards Other items (156,926) (77,951) (82,530)

Items not included in Exhibit “C” and included in Loans and other (2,921,852) (1,867,889) (1,308,502) financing facilities

Loans and other financing facilities- loans to personnel 333,974 289,648 218,375

Loans and other financing facilities–IFRS adjustment at effective (267,615) (340,447) (195,681) interest rate

Loans and other financing facilities– Allowances for loan losses (2,988,211) (1,817,090) (1,331,196)

BALANCE AS PER STATEMENT OF FINANCIAL POSITION 73,871,718 57,650,056 41,894,232

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 175 BANCO PATAGONIA S.A.

EXHIBIT D LOANS AND OTHER FINANCING FACILITIES BROKEN DOWN BY TERM AS OF 09/30/2018 (Amounts stated in thousands of pesos)

INFORMATION AS OF

09/30/2018

Terms remaining to maturity Total as of Item Matured Over 24 09/30/2018 1 month 3 months 6 months 12 months 24 months months

Nonfinancial government sector 92,204 32,087 23,596 122,103 125,439 1,495 396,924

Financial sector 1,943,188 1,196,365 856,985 602,711 220,805 296,854 5,116,908 Nonfinancial private sector and foreign residents 529,433 33,267,433 7,370,266 11,340,805 9,931,762 9,805,446 14,636,920 86,882,065

TOTAL 529,433 35,302,825 8,598,718 12,221,386 10,656,576 10,151,690 14,935,269 92,395,897

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 176 BANCO PATAGONIA S.A. EXHIBIT F CHANGES IN PROPERTY, PLANT AND EQUIPMENT AS OF 09/30/2018 (Amounts stated in thousands of pesos)

CHANGES IN PROPERTY, PLANT AND EQUIPMENT AS OF 09/30/2018

Original Depreciation Estimated Original Residual value at Accumulated Accumulated Item useful life Additions Retirements value as of For the value as of beginning as of Retirements as of in years 09/30/2018 period 09/30/2018 of year 12/31/17 09/30/2018 Measured at cost 833,243 146,065 114,503 864,805 392,521 11,298 100,340 481,563 383,242 Land and buildings 128,139 50 65,709 - 193,848 81,294 - 34,387 115,681 78,167 - Furniture and fixture 148,155 10 10,671 2 158,824 73,504 - 9,121 82,625 76,199 - Machinery and equipment 438,186 5 52,353 - 490,539 219,861 - 54,217 274,078 216,461 - Vehicles 33,535 5 7,885 21,635 19,785 17,223 11,298 2,584 8,509 11,276 - Other 716 5 - - 716 639 - 31 670 46 - Works in progress 84,512 - 9,447 92,866 1,093 - - - - 1,093 Revaluation model 2,188,524 - 101,286 86,715 2,203,095 44,752 1,133 34,701 78,320 2,124,775 Land and buildings 2,188,524 50 101,286 86,715 2,203,095 44,752 1,133 34,701 78,320 2,124,775

TOTAL 3,021,767 247,351 201,218 3,067,900 437,273 12,431 135,041 559,883 2,508,017

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 177 BANCO PATAGONIA S.A.

EXHIBIT F REVALUATION TABLE OF PROPERTY, PLANT AND EQUIPMENT AS OF 09/30/2018 (Amounts stated in thousands of pesos)

REVALUATION TABLE AS OF 9/30/2018

Revaluation adjustment - OCI Accumulated Amount as Revaluation per cost Description Appraiser Balance date Changes Balance model as of at in the as of 09/30/18 beginning period 09/30/18 of year Organización Buildings Levin de 01/01/17 1,854,409 - 350,250 350,250 Argentina S.A.

TOTAL 1,854,409 - 350,250 350,250

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 178 BANCO PATAGONIA S.A.

EXHIBIT F CHANGES ON INVESTEMENT PROPERTY AS OF 09/30/2018 (Amounts stated in thousands of pesos)

CHANGES IN INVESTEMENT PROPERTY AS OF 09/30/2018

Net gain/loss Original value Estimated Residual on Item at beginning of useful life in value as of measurement year years 09/30/2018 at fair value Measured at fair value

- Leased property 13,650 25 - 13,650

TOTAL INVESTMENT PROPERTY 13,650 25 - 13,650

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228 179 BANCO PATAGONIA S.A.

EXHIBIT H DEPOSITS CONCENTRATION AS OF 9/30/2018, 12/31/17 AND 12/31/16 (Amounts stated in thousands of pesos)

09/30/18 12/31/17 12/31/16 Number of customers Outstanding % of total Outstanding % of total Outstanding % of total amount portfolio amount portfolio amount portfolio

10 largest customers 9,453,171 9,67% 7,807,427 11.3% 5,258,463 10.1%

50 next largest customers 12,887,911 13.18% 7,806,441 11.3% 5,489,787 10.6%

100 next largest customers 7,605,761 7.78% 3,780,103 5.6% 3,243,751 6.3%

Rest of customers 67,802,141 69.37% 49,291,441 71.8% 37,796,412 73.0%

TOTAL 97,748,984 100.00% 68,685,412 100.0% 51,788,413 100.0%

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228

180 BANCO PATAGONIA S.A.

EXHIBIT I FINANCIAL LIABILITIES BROKEN DOWN BY TERMS REMAINING TO MATURITY AS OF 9/30/2018 (Amounts stated in thousands of pesos)

INFORMATION AS OF 09/30/2018

Terms remaining to maturity

over 24 Total as of Item 1 month 3 months 6 months 12 months 24 months months 09/30/2018

Deposits 85,051,887 7,603,528 3,872,476 1,803,877 1,136,998 385 99,469,151

Nonfinancial government sector 7,082,040 1,845,539 1,743,948 5,772 - - 10,677,299

Financial sector 100,195 - - - - - 100,195

Nonfinancial private sector and foreign residents 77,869,652 5,757,989 2,128,528 1,798,105 1,136,998 385 88,691,657

Liabilities measured at fair value with changes 172,481 - - - - - 172,481 through profit or loss

Derivative financial instruments 1,125,130 - - - - - 1,125,130

Repo transactions 183,611 - - - - - 183,611

Other financial institutions 183,611 - - - - - 183,611

Other financial liabilities 6,867,092 - - - - - 6,867,092

Financing facilities received from the BCRA and other 1,377,160 936,354 1,480,780 197,667 367,747 1,388,366 5,748,074 financial institutions

TOTAL 94,777,361 8,539,882 5,353,256 2,001,544 1,504,745 1,388,751 113,565,539

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228

181 BANCO PATAGONIA S.A.

EXHIBIT J CHANGES IN ALLOWANCES AND PROVISIONS AS OF 9/30/2018 (Amounts stated in thousands of pesos)

INFORMATION AS OF 09/30/2018

Decreases Balances at Balance as of Item beginning of Increases Reversals 09/30/2018 year Uses

INCLUDED IN LIABILITIES

For contingent commitments - 1,464 - - 1,464 For administrative, disciplinary and 33 - - - 33 criminal sanctions Other 208,447 191,593 876 8,884 390,280

Labor lawsuits 32,862 8,949 - 1,400 40,411

Complaints, proceedings, appeals 56,284 165,936 876 1,088 220,256

Tax lawsuits 119,301 16,708 - 6,396 129,613

TOTAL ALLOWANCES AND PROVISIONS 208,480 193,057 876 8,884 391,777

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228

182 BANCO PATAGONIA S.A.

EXHIBIT L BALANCES IN FOREIGN CURRENCY AS OF 09/30/18 AND 12/31/17 (Amounts stated in thousands of pesos)

INFORMATION AS OF 09/30/2018

Head office and Brazilian Items Total as of US dollar Euro Other Total as of branches in 09/30/18 real 12/31/17 Argentina ASSETS Cash and bank deposits 15,153,879 15,153,879 14,094,380 964,706 16,611 78,182 5,984,008 Debt securities measured at fair value with 109,156 109,156 109,156 - - - 5,060 changes through profit or loss Other financial assets 102,659 102,659 102,635 24 - - 166,017 Loans and other financing facilities 24,268,925 24,268,925 23,968,308 300,617 - - 10,581,827 Nonfinancial government sector 59,469 59,469 59,469 - - - 90,203 Other financial institutions 637,687 637,687 637,687 - - - 266,044 Nonfinancial private sector and foreign 23,571,769 23,571,769 23,271,152 300,617 - - 10,225,580 residents Other debt securities 2,154,252 2,154,252 2,154,252 - - - 1,724,316 Financial assets granted as collaterals 792,387 792,387 792,387 - - - 16,053 Investments in equity instruments 4,443 4,443 4,304 139 - - 410 Investments in subsidiaries, associates and joint 436,015 436,015 436,015 - - - 232,046 ventures

TOTAL ASSETS 43,021,716 43,021,716 41,661,437 1,265,486 16,611 78,182 18,709,737

LIABILITIES Deposits 34,685,235 34,685,235 34,056,031 629,204 - - 15,381,748 Nonfinancial government sector 469,842 469,842 469,842 - - - 142,197 Financial sector 67 67 67 - - - 31 Nonfinancial private sector and foreign 34,215,326 34,215,326 33,586,122 629,204 - - 15,239,520 residents Repo transactions ------4,551 Other financial liabilities 3,432,920 3,432,920 3,254,541 78,852 - 99,527 1,585,724 Financing facilities received from the BCRA and 4,258,856 4,258,856 3,966,397 292,459 - - 1,185,704 other financial institutions Other nonfinancial liabilities 9,477 9,477 8,928 549 - - 66,402

TOTAL LIABILITIES 42,386,488 42,386,488 41,285,897 1,001,064 - 99,527 18,224,129

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228

183 BANCO PATAGONIA S.A. EXHIBIT O DERIVATIVE FINANCIAL INSTRUMENTS AS OF 9/30/2018 (Amounts stated in thousands of pesos)

Weighted average Weighted average Type of Negotiation term for the Amount as of Type of contract Purpose of transactions Underlying asset term Residual weighted settlement environment or settlement of 09/30/2018 Originally agreed average term counter-party differences

Intermediation on own Daily settlement Futures Foreign currency ROFEX 3 3 1 3,767,045 account of differences

Intermediation on own Daily settlement Futures Foreign currency MAE 1 1 1 1,707,100 account of differences

OTC -residents in Upon maturity of Forwards Intermediation on own Foreign currency Argentina 4 2 63 5,405,573 differences account Nonfinancial sector Government securities

and instruments Delivery of Repo transactions Intermediation on own MAE - - - 1,163,886 issued by the BCRA underlying asset account

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228

184 BANCO PATAGONIA S.A.

EXHIBIT R LOSS IMPAIRMENT ADJUSTMENT– ALLOWANCE FOR LOAN LOSSES AS OF 09/30/2018 (Amounts stated in thousands of pesos)

INFORMATION AS OF 09/30/2018

Decreases Balances at Increases Balance as of Item beginning of (*) 09/30/2018 period Reversals Uses

Other financial assets - - - - -

Loans and other financing facilities 2,386,225 760,154 50,600 89,264 3,006,515

Other financial institutions 21,665 9,941 - 7 31,599 Nonfinancial private sector and foreign 2,364,560 750,213 50,600 89,257 2,974,916 residents Overdrafts 132,689 60,881 - 8,226 185,344

Notes 413,665 213,083 - 8,578 618,170

Mortgage loans 6,753 3,057 - - 9,810

Consumer 474,675 83,527 - 25,987 532,215

Credit cards 168,639 2,962 - 60 171,541

Finance lease 19,239 3,077 - 499 21,817

Other 1,148,900 383,626 50,600 45,907 1,436,019

TOTAL ALLOWANCES AND 2,386,225 760,154 50,600 89,264 3,006,515 PROVISIONS

(*) It includes quotation gains

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes Signed for identification purposes with our report dated 11/22/18 with our report dated 11/22/18

KPMG By Supervisory Committee C.P.C.E.C.A.B.A. T° 2 F° 6

Mónica M. Cukar Regular Supervisory Auditor Mauricio G. Eidelstein (Partner) Public Accountant (UBA) Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66 C.P.C.E.C.A.B.A. Tº CXX Fº 228

185

Reporting summary For the nine-month period ended September 30, 2018

BANCO PATAGONIA S.A.

REPORTING SUMMARY FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2018

RELEVANT ASPECTS:

This reporting summary was prepared on the basis of the consolidated financial information and under the new accounting framework based on the International Financial Reporting Standards (“IFRS”) established by the BCRA effective as from January 1, 2018 and, therefore, the comparative accounting information for the periods/years required by the BCRA has been reprocessed. The adoption of the referred rules implies changes to the valuation and disclosure of assets and liabilities and profit or loss as well as the determination of indicators and other related information.

For the third quarter of 2018, Banco Patagonia recorded Assets in the amount of $ 134,742.3 million, Loans (net of allowances) in the amount of $ 77,739.5 million, Deposits in the amount of $ 99,620.4 million and Shareholders’ equity in the amount of $ 14,268.4 million.

Net income for the nine-month period amounted to $ 3,487.4 million, recording a $ 35.6% ($ 915.9 million) increase compared with the third quarter of 2017 ($ 2,571.5 million), with a ROE of 36.8% and a ROA of 4.8%.

Loans granted to the nonfinancial private sector amounted to $ 77,277.2 million, accounting for an increase of 50.4% ($ 26,946.1 million) compared with the third quarter of 2017 ($ 51,393.0 million).

Total deposits amounted to $ 99,620.4 million, which accounts for an increase of 67.8% ($ 40,238.2 million) compared with the third quarter of 2017 ($ 59,382.2 million),

Regarding portfolio quality ratios, the non-performing portfolio ratio is 1.9%, and coverage with provisions on the non-performing loan portfolio was 199.1%.

The liquidity ratio was 46.8% (liquid assets on total deposits). In addition, the minimum capital exceeds in the amount of $ 3,621.7 million the amount required by BCRA regulations.

As of September 30, 2018, Banco Patagonia S.A. employs 3,427 people, and has a wide network made up of 206 client service points all over the country, distributed in the capital cities and major cities of each province.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes with our report dated 11/22/2018 KPMG C.P.C.E.C.A.B.A. T° 2 F° 6

Mauricio G. Eidelstein (Partner) Public Accountant (UBA) C.P.C.E.C.A.B.A. Tº CXX Fº 228 1

BANCO PATAGONIA S.A.

REPORTING SUMMARY FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2018

Presentation of information

For the preparation of this reporting summary, Banco Patagonia S.A. consolidated its statement of financial position and statement of income on a line-by-line basis with the financial statements of its subsidiaries: Patagonia Valores S.A., Patagonia Inversora S.A. Sociedad Gerente de Fondos Comunes de Inversión, Banco Patagonia (Uruguay) S.A.I.F.E. and GPAT Compañía Financiera S.A.U.

The consolidated financial statements have been prepared in accordance with the regulations of the Argentine Central Bank (BCRA), which state that the institutions under its supervision should submit financial statements prepared under the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), subject to the temporary exception of section 5.5.“Impairment of Value” of IFRS 9 “Financial Instruments”, applicable to “Allowance for loan losses” to be implemented as from January 1, 2020. On the other hand, based on the enforcement of BCRA Communication “A” 3921, the Bank has not applied IAS 29 “Financial Reporting in Hyperinflationary Economies”.

The existence of an inflationary context affects the financial position, income/loss and cash flows of the Bank, and, therefore, the effects of inflation should be considered upon interpreting this Reporting Summary.

As a result of the adoption of the new accounting framework effective for fiscal years beginning on or after January 1, 2018, this information for the nine-month period ended September 9, 2018 has been prepared by applying the referred standards and by adjusting the comparative information available for the periods/years as specifically required by the BCRA.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes with our report dated 11/22/2018 KPMG C.P.C.E.C.A.B.A. T° 2 F° 6

Mauricio G. Eidelstein (Partner) Public Accountant (UBA) C.P.C.E.C.A.B.A. Tº CXX Fº 228 2

BANCO PATAGONIA S.A.

REPORTING SUMMARY FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2018 a) b) Summary comparative consolidated financial position

Information for periods ended September 30, 2018 and 2017:

Consolidated Financial Statements (In Millions of Pesos) 09/30/18 09/30/17 Cash and bank deposits 30,435.6 11,994.7 Debt securities 16,161.3 13,618.7 Other financial assets 6,689.8 3,609.7 Loans and other financing facilities 77,739.5 51,800.0 Nonfinancial government sector 303.9 364.4 Other financial institutions 3,289.7 1,736.6 Nonfinancial private sector net of allowances 74,145.9 49,699.0 Nonfinancial private sector 77,277.2 51,393.0 (Allowances) (3,131.3) (1,694.0) Property, plant and equipment 2,529.8 2,623.2 Other assets 1,186.3 581.2 TOTAL ASSETS 134,742.3 84,227.5 Deposits 99,620.4 59,382.2 Nonfinancial government sector 10,157.5 5,051.2 Financial sector 72.7 17.6 Nonfinancial private sector 89,390.2 54,313.4 Other financial liabilities 8,713.7 5,248.5 Financing facilities received from the BCRA and other financial 5,409.5 3,208.3 institutions Corporate bonds issued 2,352.2 1,887.8 Other liabilities 4,378.1 2,805.5 TOTAL LIABILITIES 120,473.9 72,532.3 SHAREHOLDERS’ EQUITY 14,268.4 11,695.2 TOTAL LIABILITIES + SHAREHOLDERS’ EQUITY 134,742.3 84,227.5

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes with our report dated 11/22/2018 KPMG C.P.C.E.C.A.B.A. T° 2 F° 6

Mauricio G. Eidelstein (Partner) Public Accountant (UBA) C.P.C.E.C.A.B.A. Tº CXX Fº 228 3

BANCO PATAGONIA S.A.

REPORTING SUMMARY FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2018 b) b) Summary comparative consolidated income/loss

Information for periods ended September 30, 2018 and 2017:

Consolidated Statement of Income (In Millions of Pesos) 3T18 3T17 Interest income/loss 8,643.2 6,101.6 Fee income/loss 2,577.2 2,046.0 Net gain on financial instruments measured at fair value through profit or loss 1,060.6 880.3 Gold and foreign currency quoted price difference 601.4 343.2 Other operating income 1,512.6 1,216.6 Charge for Loan Losses (1,392.2) (468.9) Net operating income 13,002.8 10,118.8 Administrative expenses (8,230.5) (6,300.6) Operating income 4,772.3 3,818.2 Gain/loss on associates and joint ventures 258.8 101.0 Income before tax relating to continuing operations 5,031.1 3,919.2 Income tax relating to continuing operations (1,543.7) (1,347.7) Income for the period 3,487.4 2,571.5

Statement of comprehensive income (In Millions of Pesos) 3T18 3T17 Exchange differences on translation of financial statements 177.8 11.6 Gain/loss on financial instruments carried at fair value with changes through OCI (82.4) 12.6 Total other comprehensive income 95.4 24.2

Total comprehensive income 3,582.8 2,595.7

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes with our report dated 11/22/2018 KPMG C.P.C.E.C.A.B.A. T° 2 F° 6

Mauricio G. Eidelstein (Partner) Public Accountant (UBA) C.P.C.E.C.A.B.A. Tº CXX Fº 228 4

BANCO PATAGONIA S.A.

REPORTING SUMMARY FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2018 c) Comparative consolidated statement of cash flows

Information for periods ended September 30, 2018 and 2017:

Consolidated Statement of Cash Flows (In Millions of Pesos) 09/30/18 09/30/17 Cash flows provided by operating activities 12,932.1 711.4 Cash flows provided by/ (used in) investment activities 23.7 (94.6) Cash flows (used in)/provided by financing activities (583.3) 81.9 Financial and Holding gains/losses on Cash and Cash Equivalents 3,640.7 410.7 Total cash flows provided in the year 16,013.2 1,109 - 4 d) Summary of statistical data

Summary of statistical data Item 09/30/18 09/30/17 Number of time deposit transactions – Individuals 80,372 87,052 Number of time deposit transactions – Entities 3,179 2,827 Number of loan transactions – Individuals 1,167,653 1,128,921 Number of loan transactions – Entities 68,190 111,561 Number of customer desks 206 206 Number of automatic teller machines (ATMs) 601 597 Number of self-service terminals (SSTs) 391 382 Payroll 3,427 3,378

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes with our report dated 11/22/2018 KPMG C.P.C.E.C.A.B.A. T° 2 F° 6

Mauricio G. Eidelstein (Partner) Public Accountant (UBA) C.P.C.E.C.A.B.A. Tº CXX Fº 228 5

BANCO PATAGONIA S.A.

REPORTING SUMMARY FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2018

As of September 30: Breakdown 2018 2017 Profitability Ratios Return on average assets (1) 4.2% 4.6% Return on average shareholders’ equity (2) 35.8% 34.2% Interest and fee margin ratios Total financial margin (interest income-loss/average assets) 10.5% 10.8% Margin on net services (fee income / Average Assets) (3) 3.1% 3.8% Total margin (total revenues / average assets) (4) 13.6% 14.6% Net fee income on net total revenues (4) 22.6% 25,8% Shareholders’ Equity Ratios Shareholders' equity on total assets 10.6% 13.9% Financial standing (shareholders' equity on total liabilities) 11.8% 16.1% Total liabilities as a multiple of shareholders' equity 8.44 6.20 RPC on risk-weighted assets (5) 11.4% 13.1% Portfolio Quality Ratio Non-performing portfolio on financing (before allowances) (6) 1.9% 1.4% Allowances on non-performing financing portfolio (6) 199.1% 224.8% Cost of Risk (7) 2.9% 1.4% Efficiency Ratio Total expenses on total net revenues (4) 51.7% 54.4% Net fee income on administrative expenses 43.8% 47.4% Liquidity Ratios Liquid Assets on deposits (8) 46.8% 43.1% Loans (net of allowances) on assets 57.7% 61.5% Deposits on liabilities 82.7% 81.9% Loans on deposits 78.0% 87.2% Fixed assets to equity (9) 18.2% 22.7%

References:

(1) Defined as the quotient between total annualized comprehensive income and average assets.

(2) Defined as the quotient between total annualized comprehensive income and average shareholders’ equity.

(3) Total fee income defined as net fee income plus fee income/loss included in other operating income and other operating expenses.

(4) Total net revenue defined as the addition of interest income and total fee income.

(5) RPC means computable equity.

(6) Non-performing portfolio is defined as loans classified as 3 – 4 – 5 and 6 condition under BCRA regulations.

(7) Defined as the annualized charge for loan losses divided by average loans without allowances.

(8) Defined as the addition of cash and bank deposits, debt securities and investments in equity instruments divided by total deposits.

(9) Defined as the quotient between the addition of property, plant and equipment and intangible assets on shareholders' equity.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes with our report dated 11/22/2018 KPMG C.P.C.E.C.A.B.A. T° 2 F° 6

Mauricio G. Eidelstein (Partner) Public Accountant (UBA) C.P.C.E.C.A.B.A. Tº CXX Fº 228 6

BANCO PATAGONIA S.A.

REPORTING SUMMARY FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2018

e) Outlook

At a worldwide level, short term prospects are favorable. Global growth is expected to continue in 2018 and 2019 estimated at 3.7% for both years.

As to the emerging market economies, there are mixed mid-term prospects. Optimistic projections are made for developing economies in Asia and Europe, except for Turkey, and less optimistic for Africa, Latin America and the Middle East.

With regard to Brazil, the main business partner of Argentina, the IMF projects a 1.4% growth in 2018 and 2.4% in 2019. This increase, together with prospective stable prices for commodities, entail the most favorable aspects for Argentina.

Locally, an agreement was entered into with the International Monetary Fund. The challenge lying ahead 2018 is to balance the exchange rate and meet the goals set by the IMF, mainly, as to fiscal deficit.

Banco Patagonia confirms its strategic priorities aimed at achieving a position within the main private banks of the Argentine Financial System.

The Bank continues focusing on all the business segments by means of its network of branches, settled in all the provinces of the country, its specialized corporate assistance centers in the main markets, and its renewed online and mobile banking platforms.

As a universal bank, Banco Patagonia will keep on working several aspects: the sustained growth of all its business units and segments, the necessary digital transformation to focus on the most demanded market segments, policy adjustment to minimize risks, optimization of resources and driving human potential, among others.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes with our report dated 08/23/2018 KPMG C.P.C.E.C.A.B.A. T° 2 F° 6

Mauricio G. Eidelstein (Partner) Public Accountant (UBA) C.P.C.E.C.A.B.A. Tº CXX Fº 228 7

BANCO PATAGONIA S.A.

REPORTING SUMMARY FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2018

Additional information required by section 12 of chapter III, title IV of CNV regulations (General Resolution No. 622/13) – Information in thousands of pesos

1. General background on the Company's business

a) Specific and significant legal regimes that entail the contingent loss or acquisition of legal benefits.

None.

b) Significant amendments to the company's business or other similar circumstances occurring during the periods included in the financial statements that affect their comparability to prior-year financial statements, or that might affect their comparability to financial statements to be published in the future.

None.

2. Classification of loan (financing) and debt (deposits and liabilities) balances as per their maturities.

See Exhibit “D”– Breakdown of loans and other financing facilities and Exhibit “I”–Financial liabilities broken down by term remaining to maturity to the Bank’s consolidated financial statements.

3. Classification of receivables and payables to disclose the financial effects derived from the maintenance thereof.

Local currency Foreign currency Item CER With no With (In thousands of pesos) With interest Adjustment interest interest With no clause Clause clause clause interest clause Loans and other financing facilities 53,491,958 163 - 24,247,314 - TOTAL 53,491,958 163 - 24,247,314 -

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes with our report dated 11/22/2018 KPMG C.P.C.E.C.A.B.A. T° 2 F° 6

Mauricio G. Eidelstein (Partner) Public Accountant (UBA) C.P.C.E.C.A.B.A. Tº CXX Fº 228 8

BANCO PATAGONIA S.A.

REPORTING SUMMARY FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2018

Local currency Foreign currency Item With CER With no With With no Kind (In thousands of pesos) interest Adjustme interest interest interest clause nt Clause clause clause clause Deposits and Liabilities Deposits 51,669,141 - 11,366,238 36,181,793 403,329 - Liabilities measured at fair value with - - - - - 172,481 changes through profit or loss Derivative financial instruments - - 1,113,876 - - - Repo transactions 183,611 - - - - - Other financial liabilities 24,814 - 3,785,978 33,503 3,399,417 - Financing facilities received from the BCRA 1,133,679 - 16,987 4,258,842 14 - and other financial institutions Corporate bonds issued 2,352,174 - - - - - TOTAL 55,363,419 - 16,283,079 40,474,138 3,802,760 172,481

4. Breakdown of ownership interest and votes in companies under section 33 of Law No. 19550 and debit and/or credit balances per company.

Shares Percentage of Company Principal Possible Class Amount Total votes Common GPAT Compañía Financiera S.A.U. 86,837,083 100.00% 100.00% stock Common Patagonia Valores S.A. 13,862,507 99,99% 99.99% stock Patagonia Inversora S.A. Sociedad Gerente Common 13,317,233 99,99% 99.99% Fondos Comunes de Inversión stock Common Banco Patagonia (Uruguay) S.A. I.F.E. 50,000 100.00% 100.00% stock

For debit and credit balances per company, see Note 39 to the separate financial statements of the Bank.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes with our report dated 11/22/2018 KPMG C.P.C.E.C.A.B.A. T° 2 F° 6

Mauricio G. Eidelstein (Partner) Public Accountant (UBA) C.P.C.E.C.A.B.A. Tº CXX Fº 228 9

BANCO PATAGONIA S.A.

REPORTING SUMMARY FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2018

5. Trade receivables or loans with directors, supervisory auditors, members of the supervisory audit committee, and relatives up to and including the second degree

Financing Maximum In thousands of pesos 09/30/18 Financing Directors and relatives 2,431 3,242 Supervisory auditors and relatives 853 853 TOTAL 3,284 4,095

Such financial aid is represented by loans in pesos, granted under similar terms and conditions as those applied to the other clients of the Bank, with no monetary adjustment clause.

6. Physical count of inventories Frequency and scope of physical counts of inventories.

Not applicable.

7. Investments in other companies exceeding the limits established in section 31, Law No. 19550, and plans to regularize the situation.

None.

8. Recoverable value: Criteria followed to assess the significant "recoverable value" of inventories, fixed assets, and other assets, used as a limit to their valuation for accounting reporting purposes.

See Note 5.4.g) “Impairment of financial assets” and 5.10 “Impairment of non-financial assets” to the Consolidated Financial Statements of the Bank.

9. Insurance taken in relation to tangible assets.

Property insured Amount Book Risk In thousands of pesos insured value Fraud, theft, security deposit boxes, Cash, checks, and securities 1,635,868 3,744,534 and transportation Buildings, machines, equipment, furniture, Fire, vandalism, and earthquake 8,115,482 2,515,831 fixtures, and works of art Cars All risk and third-party insurance 17,085 12,807

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes with our report dated 11/22/2018 KPMG C.P.C.E.C.A.B.A. T° 2 F° 6

Mauricio G. Eidelstein (Partner) Public Accountant (UBA) C.P.C.E.C.A.B.A. Tº CXX Fº 228 10

BANCO PATAGONIA S.A.

REPORTING SUMMARY FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2018

10. Negative and positive contingencies

a) Items considered to calculate the allowances, the balances of which considered either individually or as a whole, exceed two percent (2%) of the shareholders' equity

See Note 5.4.g) “Impairment of financial assets” and 5.11 “allowances and provisions” to the Consolidated Financial Statements of the Bank.

b) Contingencies as of the date of the financial statements the likelihood of occurrence of which is not remote, and the financial effects of which have not been recorded, stating whether lack of accounting is based on the likelihood of occurrence or on any difficulties in quantifying its effects.

None.

11. Irrevocable contributions for future subscriptions Status of procedures aimed at capitalization.

None.

12. Unpaid cumulative dividends on preferred shares.

None.

13. Conditions, circumstances, or terms for the removal of restrictions on the distribution of unappropriated retained earnings.

See Note 44) “Distribution of earnings and restrictions” to the Consolidated Financial Statements of the Bank.

Marcelo A. Iadarola Juan M. Trejo João Carlos de Nobrega Pecego Executive Manager of Administration Superintendent President Finance, Administration and Public Sector

Signed for identification purposes with our report dated 11/22/2018 KPMG C.P.C.E.C.A.B.A. T° 2 F° 6

Mauricio G. Eidelstein (Partner) Public Accountant (UBA) C.P.C.E.C.A.B.A. Tº CXX Fº 228 11

SUPERVISORY AUDIT COMMITTEE’S REVIEW ON CONDENSED INTERIM FINANCIAL STATEMENTS

To the Shareholders and Directors of Banco Patagonia S.A. Legal address: Av. de Mayo 701, Floor 24 Taxpayer Identification No. [C.U.I.T.] No. 30-50000661-3 City of Buenos Aires

I. Report on the interim financial statements

We have reviewed the accompanying separate interim financial statements of Banco Patagonia S.A. (“the Bank”), which include the statement of financial position as of September 30, 2018, the statements of income, other comprehensive income, changes in shareholders’ equity and cash flows for the nine-month period then ended, and explanatory notes and exhibits. We have reviewed the accompanying condensed interim consolidated financial statements of Banco Patagonia S.A. and its subsidiaries, which include the consolidated statement of financial position as of September 30, 2018, the consolidated statements of income, other comprehensive income, changes in shareholders’ equity and cash flows for the nine-month period then ended, and explanatory notes and exhibits.

II. Board of Directors’ and Management responsibility for the financial statements

The Board of Directors and Management of the Bank are responsible for the preparation and fair presentation of the accompanying consolidated and separate financial statements in accordance with the accounting standards established by the Argentine Central Bank (“BCRA”), which, as indicated in note 2 to the accompanying financial statements, are based on the International Financial Reporting Standards ("IFRS") and, particularly, for interim financial statements, on International Accounting Standard 34 "Interim Financial Reporting" (“IAS 34”), as issued by the International Accounting Standards Board ("IASB"), and adopted by the Argentine Federation of Professional Councils of Economic Sciences (“FACPCE”), except for section 5.5. “Impairment of Value” of IFRS 9 “Financial Instruments”, which was temporarily excluded by the BCRA from the accounting framework applicable to financial institutions. On the other hand, based on the enforcement of BCRA Communication “A” 3921, the Bank has not applied IAS 29 “ Financial Reporting in Hyperinflationary Economies” to the preparation of the accompanying financial statements. The Board of Directors and Management are also responsible for such internal control as they determine is necessary to enable the preparation of the interim financial statements that are free from material misstatement whether due to error or fraud.

III. Supervisory Audit Committee’s responsibility

Our responsibility is to express a conclusion on the accompanying condensed interim consolidated and separate financial statements based on our review. We performed this examination in accordance with supervisory audit rules in force. To perform our professional task on the documents mentioned in the first paragraph, we have reviewed the audit conducted by the firm KPMG, in their capacity as external auditors, who issued their report on November 22, 2018, in accordance with the standards set forth by Technical Resolution No. 37 of the Argentine Federation of Professional Councils of Economic Sciences (“FACPCE”) and the “Minimum Standards applicable to External Audits” set forth by the BCRA for the review of interim financial statements. In accordance with such rules, a review is substantially less in scope than an audit conducted in accordance with auditing standards in force, and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion on the accompanying interim financial statements. As a management control is outside the scope of the Supervisory Audit Committee’s responsibilities, we have

not evaluated the business, management and finance criteria and decisions taken by the Bank, since it is the exclusive responsibility of the Board of Directors.

IV. Conclusion

Based on our review, and on the report dated November 22, 2018, issued by Mauricio G. Eidelstein (Partner of KPMG, member firm of KPMG International), nothing has come to our attention that causes us to believe that the accompanying condensed interim consolidated and separate financial statements of Banco Patagonia S.A. are not presented fairly, in all material respects, in accordance with accounting standards set forth by the BCRA, as indicated in Note 2 to the referred financial statements.

V. Other matters disclosed in the financial statements

Without modifying our conclusion, we draw users’ attention to the information presented in the Notes to the accompanying condensed financial statements: a) As explained in Note 2 to the accompanying consolidated financial statements, they have been prepared by the Bank’s Board of Directors and Management in accordance with the BCRA accounting framework, which differs from IFRS as to the application of section 5.5 “Impairment of Value” of IFRS 9 “Financial Instruments”; such section was temporarily excluded by the BCRA from the accounting framework applicable to financial institutions; b) As explained in Note 2 to the accompanying consolidated financial statements, based on the enforcement of BCRA Communication “A” 3921, the Bank has not applied IAS 29 “ Financial Reporting in Hyperinflationary Economies” to the preparation of the accompanying financial statements.

To this reporting date, the Bank has informed us that it is analyzing the effects of applying the rules, as mentioned in paragraphs a) and b) above and it estimates that the effects on the accompanying consolidated and separate financial statements may be significant. This situation does not modify the conclusion stated in paragraph IV above but it should be considered by those users that apply IFRSs to the interpretation of the accompanying financial statements, and c) As indicated in Note 5 to the accompanying consolidated financial statements, they are issued for an interim period of the first fiscal year in which the Bank applies the BCRA accounting framework. The effects of changes arising from applying this new accounting framework are disclosed in Notes 38 and 51 to the consolidated and separate financial statements, respectively. The items and amounts contained in the reconciliation included in such Notes are subject to the changes that may occur as a consequence of the variations in the IFRS to be eventually applied, and can only be considered final when the annual financial statements as of December 31, 2018 and for the year then ended are prepared. This situation does not modify our conclusion stated in the paragraph IV above.

VI. Report on other legal and regulatory requirements

In compliance with legal provisions in force, we report that:

1. The accompanying condensed interim financial statements indicated in paragraph I have been transcribed into the Inventory Book, and arise from the Bank’s accounting records, which, in their formal aspects, are kept pursuant to the legal provisions in force.

2. In performing our legal supervisory duties, during the nine-month period ended September 30, 2018, we conducted the remaining procedures set forth in section 294 of Law 19550 that we considered necessary in accordance with the circumstances and, in this respect, we have no observations to make.

3. As of September 30, 2018, the Bank records the minimum shareholders’ equity and counterparty required by the Argentine Securities Commission (CNV), as mentioned in Note 53 and 41 to the accompanying consolidated and separate financial statements, respectively.

City of Buenos Aires, November 22, 2018.

By Supervisory Committee

Mónica M. Cukar Regular Supervisory Auditor Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66