EEFF Banco Patagonia S.A. NIIF 30.06.2019 Eng V1

Translation from the original prepared in Spanish for publication in Argentina

Condensed Interim Consolidated Financial Statements as of June 30, 2019 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 JUNE 30, 2019

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 – Changes in accounting policies Note 6 – Basis of consolidation 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 collaterals 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 JUNE 30, 2019

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 – Other operating income Note 35 – Employee benefits Note 36 - Administrative expenses Note 37 – Other operating expenses Note 38– Fair value of financial instruments Note 39 – Transfer of financial assets Note 40 – Segment reporting Note 41 - Subsidiaries Note 42– Related parties Note 43– Distribution of earnings and restrictions Note 44– Restricted assets Note 45– Deposit Guarantee Insurance System Note 46– Minimum cash and capital requirements Note 47– Trust activities Note 48 – Custodian agent of mutual funds Note 49– Sanctions imposed and proceedings filed by the BCRA Note 50– Financial agent of the Province of Río Negro Note 51– CNV requirements to act as an Over-the-counter Broker Note 52– 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 JUNE 30, 2019

CONTENTS

Note 53– CNV requirement– Custody of the Group’s Documentation Note 54– Compliance with provisions set forth by Law No. 25738 Note 55 – Publication of the financial statements Note 56– Subsequent events Exhibit B - Loans and other financing facilities classified by status and guarantees received ...... 70 Exhibit C - Loans and other financing facilities concentration...... 73 Exhibit D - Loans and other financing facilities broken down by term...... 74 Exhibit H - Deposits concentration ...... 75 Exhibit I – Financial liabilities broken down by terms remaining to maturity 76 Exhibit J - Changes in allowances and provisions ...... 77 Exhibit R– Loss impairment adjustment – Allowances for loan losses ...... 78 Condensed Interim Separate Financial Statements ...... 79 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 number [C.U.I.T.] 30 -50000661 -3

Report on interim financial statements

We have reviewed the accompanying interim consolidated financial statements of Banco Patagonia S.A.(the “Bank”), which include the condensed consolidated statement of financial position as of June 30, 2019, the condensed consolidated statements of income, other comprehensive income, changes in shareholders’ equity and cash flows for the six-month period then ended, and explanatory notes and exhibits.

The balances and other information as of December 31, 2018, and for the six-month period ended June 30, 2018, 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 Entity are responsible for the preparation of the accompanying financial statements in accordance with the accounting standards established by the Argentine Central Bank (“BCRA”), which, as indicated in note 2 to the accompanying consolidated financial statements, are based on the International Financial Reporting Standards ("IFRS"), particularly, on International Accounting Standard 34 "Interim Financial Reporting" (“IAS 34”), as approved 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” and IAS 29 “Financial Reporting in Hyperinflationary Economies”. 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.

Auditors’ responsibility and 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 auditing standards set forth by the BCRA applicable to the audit of financial statements (“Minimum Standards applicable to External Audits”). 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.

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 accompanying consolidated financial statements.

Translation from the original prepared in Spanish for publication in Argentina

Emphasis of matter Without further modifying our conclusion, we draw users’ attention to the following information disclosed in the accompanying condensed interim consolidated financial statements, which should be considered for the interpretation thereof: a) as explained in note 2.1.a) the condensed interim separate financial statements have been prepared by the Entity’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. However, the Bank has estimated the impact as of June 30, 2019 as per the IFRS 9, as indicated such note; and b) as explained in 2.1.b) and 3, although as of June 30, 2019, the conditions for the restatement of financial statements in constant currency set forth by IAS 29 are met, as provided for by BCRA Communication “A” 6651, the Entity has not applied such restatement. The existence of an inflationary context affects the Entity’s financial position and results of its operations and, therefore, the inflation impact may distort the financial information, which should be considered in the interpretation of the information provided by the Entity in these condensed interim consolidated financial statements in respect of its financial position, comprehensive income and cash flows. The Bank has estimated the impact as of June 30, 2019 as per the IFRS 29 as explained in Note 3.; and c) as explained in notes 2.1.c) and 16 by virtue of the partial sale of the shared held in Prisma Medios de Pago S.A., the remaining shareholding was reclassified in line “investments in equity instruments” and was measured at fair value with changes through profit or loss, based on a valuation report on the Company performed by independent professionals, to which the valuation adjustment set by the BCRA was deducted. The accounting criterion applied departs from the provisions of IFRS 9 as to the measurement of equity instruments measured at fair value. 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 June 30, 2019, the Entity records the minimum shareholders’ equity and counterparty required by the Argentine Securities Commission (CNV) to the settlement and clearing agents, as mentioned in note 51 to the accompanying condensed interim consolidated financial statements; c. we have reviewed the reporting summary required by CNV regulations, based on which, as far as it relates to our area of responsibility, we have no observations; d. as of June 30, 2019, 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 $ 147,199,693 no amounts being due as of that date. City of Buenos Aires, August 8, 2019. KPMG Reg. de Asoc. Prof. CPCECABA Tº 2 Fº 6

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

Translation from the original prepared in Spanish for publication in Argentina

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

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 June 30, 2019, the condensed statements of income, other comprehensive income, changes in shareholders’ equity and cash flows for the six-month period then ended, and explanatory notes and Exhibits.

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”, and IAS 29 “Financial Reporting in Hyperinflationary Economies”. 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.

Auditors’ responsibility and 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 auditing standards set forth by the BCRA applicable to the audit of financial statements (“Minimum Standards applicable to External Audits”). 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.

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.

Translation from the original prepared in Spanish for publication in Argentina

Emphasis of matter Without further modifying our opinion, we draw users’ attention to the following information disclosed in the accompanying condensed interim separate financial statements, which should be considered for the interpretation thereof: a) as explained in note 2.a), the condensed interim separate financial statements have been prepared by the Entity’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. However, the Bank has quantified the impact as per the IFRS 9, as indicated such note; and b) as explained in 2.b) and although as of June 30, 2019, the conditions for the restatement of financial statements in constant currency set forth by IAS 29 are met, as provided for by BCRA Communication “A” 6651, the Entity has not applied such restatement. The existence of an inflationary context affects the Entity’s financial position and results of operations and, therefore, the inflation impact may distort the financial information, which should be considered in the interpretation of the information provided by the Entity in these condensed interim consolidated financial statements in respect of its financial position, comprehensive income and cash flows. The Bank has estimated the impact as of June 30, 2019 as per the IFRS 29 as explained in Note 2.; and c) as explained in notes 2.c) and 15 by virtue of the partial sale of the shared held in Prisma Medios de Pago S.A., the remaining shareholding was reclassified in line “investments in equity instruments” and was measured at fair value with changes through profit or loss, based on a valuation report on the Company performed by independent professionals, to which the valuation adjustment set by the BCRA was deducted. The accounting criterion applied departs from the provisions of IFRS 9 as to the measurement of equity instruments measured at fair value. 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 June 30, 2019, the Entity records the minimum shareholders’ equity and counterparty required by the Argentine Securities Commission (CNV) to the settlement and clearing agents, as mentioned in Note 36 to the accompanying condensed interim separate financial statements; c. we have reviewed the reporting summary required by CNV regulations, based on which, as far as it relates to our area of responsibility, we have no observations; d. as of June 30, 2019, 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 $ 144,345,473 no amounts being due as of that date.

City of Buenos Aires, August 8, 2019.

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

Mauricio G. Eidelstein Partner Public Accountant (UBA) Tº CLXIX 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: Friday, May 4, 1928

of the articles of incorporation: 9/18/1928 Date Registration with the Public Of the latest amendment : 07/13/17 Registry of Commerce of the City of Buenos Aires Stock Companies Book: 85 Book Number: 13,826

Expiry of articles of incorporation: August 29, 2038

Fiscal year No. 96

Beginning date: January 1, 2019 Closing date: December 31, 2019

Capital structure (Note 28)

In Argentine pesos Number and characteristics of shares Subscribed Paid in

719,145,237 registered, common shares, 719,145,237 719,145,237 with a nominal value of ARS 1, one vote each

Information required by the BCRA (Central Bank of Argentina)

Name of the undersigned auditor: Mauricio G. Eidelstein

Professional firm: KPMG

Report for the six-month period ended June 30, 2019 8 – (quarterly closing – Unqualified conclusion)

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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS OF 6/30/2019 AND 12/31/2018 (Stated in thousands of pesos)

ITEM NOTES 6/30/2019 12/31/2018

ASSETS Cash and bank deposits 7 35,884,402 34,940,609 Cash on hand 3,708,757 4,752,520 Financial institutions and correspondents 32,175,645 30,188,089 BCRA 30,863,932 29,379,307 Other in Argentina and abroad 1,311,713 808,782 Debt securities measured at fair value with changes through profit or loss 8 194,088 182,928 Derivative instruments 9 526,339 148,988 Repo transactions 10 1,246,249 663,435 Other financial assets 11 2,539,988 3,158,092 Loans and other financing facilities (Exhibits B, C and D) 12 79,311,391 82,549,304 Non-financial government sector 279,337 221,825 Other financial institutions 3,102,627 3,617,245 Nonfinancial private sector and foreign residents 75,929,427 78,710,234 Other debt securities 13 47,336,254 23,649,064 Financial assets granted as collaterals 14 2,926,456 2,797,674 Current income tax assets 15 a) 39,596 40,396 Investments in equity instruments 16 843,887 6,347 Investments in subsidiaries, associates and joint ventures 17 134,630 146,853 Property and equipment 18 5,771,046 5,494,066 Intangible assets 19 148,634 62,630 Deferred income tax assets 84,804 72,611 Other non financial assets 20 356,699 347,178 Non-current assets held for sale 21 - 234,831

TOTAL ASSETS 177,344,463 154,495,006

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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS OF 6/30/2019 AND 12/31/2018 (Stated in thousands of pesos)

ITEM NOTES 6/30/2019 12/31/2018

LIABILITIES

Deposits (Exhibits H and I) 22 122,580,924 109,117,039 Nonfinancial government sector 11,551,651 11,995,436 Financial sector 43,038 38,330 Nonfinancial private sector and foreign residents 110,986,235 97,083,273 Liabilities measured at fair value with changes through profit or loss (Exhibit I) 34,353 - Derivative instruments (Exhibit I) 9 96,399 74,331 Repo transactions (Exhibit I) 10 1,615,832 916,010 Other financial liabilities (Exhibit I) 23 8,296,350 9,321,695 Financing facilities received from the BCRA and other financial institutions (Exhibit I) 24 13,733,973 9,358,048 Corporate bonds issued (Exhibit I) 25 1,544,386 1,678,055 Current income tax liabilities 15 a) 2,898,227 1,757,878 Allowances and provisions (Exhibit J) 26 378,120 402,073 Deferred income tax liabilities 43,609 184,956 Other nonfinancial liabilities 27 3,483,728 3,391,701

TOTAL LIABILITIES 154,705,901 136,201,786

SHAREHOLDERS’ EQUITY Share capital 28 719,145 719,145 Non-capitalized contributions 217,191 217,191 Retained earnings 10,946,765 8,442,024 Unappropriated retained earnings 43 - (170,594) Other comprehensive income 3,719,882 3,734,784 Income for the period 7,035,579 5,350,670 Equity attributable to the owners of the parent company 22,638,562 18,293,220 Equity attributable to non controlling interests (*) - -

TOTAL SHAREHOLDERS’ EQUITY 22,638,562 18,293,220

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 177,344,463 154,495,006

(*) As of June 30, 2019, and December 31, 2018, the net equity attributable to non controlling interests amounts to $ 124.01 and $ 90.94, 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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME AS OF 6/30/2019 AND 6/30/2018 (Stated in thousands of pesos)

THREE-MONTH PERIOD SIX-MONTH PERIOD ENDED ITEM NOTES ENDED 6/30/2019 6/30/2018 6/30/2019 6/30/2018 Interest income 29 14,142,412 4,882,967 24,471,068 8,928,625 Interest expense 30 ( 6,649,071) (2,017,354) (11,468,264) (3,488,473) Interest income/loss 7,493,341 2,865,613 13,002,804 5,440,152

Fee income 31 1,529,260 1,175,890 2,970,230 2,242,201 Fee expenses 32 ( 421,111) (461,794) (812,564) (567,794) Fee income/loss 1,108,149 714,096 2,157,666 1,674,407

Net gain on financial instruments measured at fair value through profit or loss 33 700,496 86,357 751,758 332,729 Gold and foreign currency quoted price difference 523,263 378,869 965,006 385,361 Other operating income 34 558,276 386,683 2,434,955 656,077 Charge for loan losses (534,360) (549,395) (2,193,266) (770,388) Net operating income 9,849,165 3,882,223 17,118,923 7,718,338

Benefits to personnel 35 ( 1,654,987) (1,150,996) (3,156,092) (2,219,296) Administrative expenses 36 (1,014,456) (777,095) (1,959,266) (1,406,436) Assets depreciation and impairment of value (114,135) (47,821) (228,932) (95,928) Other operating expenses 37 ( 773,746) (384,979) (1,687,863) (1,055,758) Operating income 6,291,841 1,521,332 10,086,770 2,940,920

Gain/loss on associates and joint ventures 405,865 136,887 446,683 185,591 Income before tax relating to continuing operations 6,697,706 1,658,219 10,533,453 3,126,511

Income tax relating to continuing operations 15 b) (2,279,137) (510,857) (3,497,874) (988,871) Net income from continuing operations 4,418,569 1,147,362 7,035,579 2,137,640

INCOME FOR THE PERIOD 4,418,569 1,147,362 7,035,579 2,137,640

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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME AS OF 6/30/2019 AND 6/30/2018 (Stated in thousands of pesos)

THREE-MONTH PERIOD SIX-MONTH PERIOD ENDED INCOME FOR THE PERIOD ENDED 6/30/2019 6/30/2018 6/30/2019 6/30/2018 Income for the period attributable to the owners of the 4,418,569 1,147,362 7,035,579 2,137,640 parent company

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

(*) As of June 30, 2019, and 2018, income for the six-month period attributable to non controlling interests amounts to $ 33.08 and $ 25.09, respectively.

THREE-MONTH PERIOD SIX-MONTH PERIOD ENDED ENDED EARNINGS PER SHARE 6/30/2019 6/30/2018 6/30/2019 6/30/2018

NUMERATOR Net income attributable to the shareholders of the parent 4,418,569 1,147,362 7,035,579 2,137,640 company Net income attributable to the shareholders of the parent 4,418,569 1,147,362 7,035,579 2,137,640 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 6.144 1.595 9.783 2.972

Earnings per diluted share 6.144 1.595 9.783 2.972

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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME AS OF 6/30/2019 AND 6/30/2018 (Stated in thousands of pesos)

THREE-MONTH PERIOD ENDED SIX-MONTH PERIOD ENDED ITEM 6/30/2019 6/30/2018 6/30/2019 6/30/2018

INCOME FOR THE PERIOD 4,418,569 1,147,362 7,035,579 2,137,640

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

Exchange differences on translation of financial (7,001) 73,870 37,364 86,272 statements Exchange differences for the period (9,334) 98,493 49,819 115,029 Income tax 2,333 ( 24,623) (12,455) (28,757)

Gains or losses on financial instruments carried at (125,799) (16,038) (52,266) (52,213) fair value through OCI (paragraph 4.1.2 of IFRS 9) Gains on financial instruments carried at fair value (172,581) (14,343) (69,402) (62,610) through OCI Income tax 46,782 ( 1,695) 17,136 10,397 TOTAL OTHER COMPREHENSIVE INCOME THAT WILL BE RECLASSIFIED TO INCOME FOR THE (132,800) 57,832 ( 14,902) 34,059 PERIOD TOTAL OTHER COMPREHENSIVE INCOME (132,800) 57,832 ( 14,902) 34,059

TOTAL COMPREHENSIVE INCOME 4,285,769 1,205,194 7,020,677 2,171,699

Attributable to the owners of the parent company 4,285,769 1,205,194 7,020,677 2,171,699

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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

CONDENSED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY AS OF 6/30/2019 (Stated in thousands of pesos)

Non - Capital capitalized Other comprehensive income Retained earnings stock (1) contributions Total equity Accumulated Total Unappropriated attributable Exchange gains/losses shareholders’ Changes Revaluation retained to Additional differences on from financial equity as of of property, earnings controlling Outstanding paid-in translation of instruments at Legal Other 6/30/2019 plant and interests capital financial fair value with equipment statements changes through OCI Balances at beginning of 719,145 217,191 180,067 3,664,657 (109,940) 3,252,830 5,180,076 18,293,220 18,293,220 the year 5,189,194

Distribution of unappropriated retained earnings as approved by the Annual Shareholders’ Meeting held on 4/25/2019 (2) - Legal reserve - - - - - 1,070,134 - (1,070,134) - - - Optional reserve – Future distribution of ------1,605,201 (1,605,201) - - earnings - Offsetting the adjustment due to first-time application of IFRS ------(170,594) 170,594 - - - Cash dividends (3) ------(2,675,335) (2,675,335) (2,675,335) Income for the period ------7,035,579 7,035,579 7,035,579

Other comprehensive income for the period - - 37,364 - (52,266) - - - (14,902) (14,902)

Balances at period-end 719,145 217,191 217,431 3,664,657 (162,206) 4,322,964 6,623,801 7,035,579 22,638,562 22,638,562

(1) See Note 28 (2) See Note 43. (3) It corresponds to $ 3.7202 per share.

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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

CONDENSED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY AS OF 6/30/2018 (Stated in thousands of pesos)

Non - Capital capitalized Other comprehensive income Retained earnings stock (1) contributions Accumulated Total equity Total Unappropriated Exchange gains/losses attributable to shareholders’ Changes Revaluation retained differences on from financial controlling equity as of Additional of property, earnings Outstanding translation of instruments at Legal Other interests 6/30/2018 paid-in capital plant and financial fair value with equipment statements 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 -Legal reserve - - - - - 711,042 - (711,042) - - - Optional reserve – Future distribution of ------1,066,563 (1,066,563) - - earnings - Cash dividends (2) ------(1,777,606) (1,777,606) (1,777,606) Income for the period ------2,137,640 2,137,640 2,137,640

Other comprehensive income for the period - - 86,272 - (52,213) - - - 34,059 34,059

Balances at period-end 719,145 217,191 113,303 1,411,184 (12,518) 3,252,830 5,189,194 1,967,046 12,857,375 12,857,375

(1) See Note 28 (2) It relates to $2,4718 per share

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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS AS OF 6/30/2019 AND 6/30/2018 (Stated in thousands of pesos)

ITEM 6/30/2019 6/30/2018

Cash flows from operating activities

Income for the period before income tax 10,533,45 3 3,126,511

Adjustments to obtain cash flows from operating activities: 1,305,483 (1,035,057) Assets depreciation and impairment of value 228,932 95,928 Charge for loan losses 2,193,266 770,388 Other adjustments (1,116,715) (1,901,373)

Ne t decreases from operating assets: (20,200,284) (11,281,115) Debt securities measured at fair value with changes through profit or loss (7,832) (43,480) Derivative instruments (377,351) 27,567 Repo transactions (582,814) 813,131 Loans and other financing facilities 4,360,478 (5,407,193) Non-financial government sector 12,692 ( 28,588) Other financial institutions 206,849 (147,397) Nonfinancial private sector and foreign residents 4,140,937 (5,231,208) Other debt securities (23,407,532) (4,511,877) Financial assets granted as collaterals (128,782) (1,072,363) Investments in equity instruments (837,540) 5,398 Other assets 781,089 (1,092,298)

Net increases from operating liabilities: 12,527,178 14,275,352 Deposits 9,905,784 10,426,596 Non-financial government sector 1,074,361 1,165,663 Financial sector 4,739 9,504 Nonfinancial private sector and foreign residents 8,826,684 9,251,429 Liabilities measured at fair value with changes through profit or loss 34,353 (102,626) Derivative instruments 22,068 259,463 Repo transactions 699,822 (562,297) Financing facilities received from the BCRA and other financial 3,360,910 2,562,854 institutions Other liabilities (1,495,759) 1,691,362

Income tax payments (1,599,670) (1,302,563)

TOTAL OPERATING ACTIVITIES (A) 2,566,160 3,783,128

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 08/08/2019 with our report dated 08/08/2019

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 STATEMENTS OF CASH FLOWS AS OF 6/30/2019 AND 6/30/2018 (Stated in thousands of pesos)

ITEM 6/30/2019 6/30/2018

Cash flows from investing activities

Payments: Purchase of property, plant and equipment, intangible assets and other assets (249,219) (207,865)

Collections: Sale of property, plant and equipment, intangible assets and other assets 49,357 282,585

TOTAL INVESTING ACTIVITIES (B) (199,862) 74,720

Cash flows from financing activities

Payments: Dividends (2,675,335) (1,777,606) Unsubordinated corporate bonds (938,283) (721,013) Financing facilities from local financial institutions (265,608) (96,042) Lease payments (117,866) -

Collections: Unsubordinated corporate bonds 497,548 945,640

TOTAL FINANCING ACTIVITIES (C) (3,499,544) (1,649,021)

EFFECTS OF EXCHANGE RATE CHANGES (D) 2,077,039 3,104,123

TOTAL CHANGES IN CASH FLOWS 6/30/2019 6/30/2018

NET INCREASE IN CASH AND CASH EQUIVALENTS 943,793 5,312,950 (A + B + C + D)

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 34,940,609 14,422,402

CASH AND CASH EQUIVALENTS AT PERIOD-END 35,884,402 19,735,352

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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 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:

• 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.

• 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 for trading securities on the Buenos Aires Securities Market (Mercado de Valores de Buenos Aires). At present, the Company has non material activity level.

• 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).

Since July 20, 2007, Banco Patagonia S.A.’s shares have been publicly offered and listed on the BYMA (Argentine Stock Exchange and Markets) 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).

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:

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 08/08/2019 with our report dated 08/08/2019

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 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

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 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.

Patagonia Valores S.A.

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

NOTE 2 – BASIS FOR THE PREPARATION OF THE FINANCIAL STATEMENTS

2.1 Basis for presentation

These condensed consolidated financial statements for the six-month period ended June 30, 2019 have been prepared in accordance with the regulations of the Argentine Central Bank (BCRA) (hereinafter, Accounting framework established by the 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), except for the following exceptions to be implemented as from January 1, 2020:

a) Application of the impairment model of section 5.5. “Impairment of Value” of IFRS 9 “Financial Instruments”, applicable to “Allowance for loan losses”. On December 14, 2018, the Bank filed with the BCRA the impairment model to be applied under IFRS 9 as from January 1, 2020. As of June 30, 2019, such allowance for loan losses amounts to 3,719,887.

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 08/08/2019 with our report dated 08/08/2019

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

12 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

b) Application of International Accounting Standard IAS 29 “Financial Reporting in Hyperinflationary Economies” as provided for by BCRA Communication “A” 6651. (See Note 3).

c) As to the valuation of Prisma Medios de Pago S.A., these condensed consolidated financial statements for the six-month period ended June 30, 2019 have considered the outlines set by the BCRA, regarding the accounting treatment given to the remaining investment being held by the Bank in such company, which was registered in line “Investments in equity instruments” as of June 30, 2019 (See Notes 16 and 21).

The exceptions described imply departure from the IFRS.

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 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 consolidated financial statements as of December 31, 2018. However, notes explaining the events and transactions that are significant to understand the changes in the financial position as from December 31, 2018 are included.

Additionally, BCRA Communications “A” 6323 and “A” 6324 set forth the guidelines for the preparation and presentation of financial institutions’ financial statements, including any requirement for additional information as well as the information to be disclosed in the Exhibits.

2.2 Seasonal effects on transactions

The activities of the Group are not subject to seasonal effects.

2.3 Comparative information

The Condensed Interim Consolidated Statement of Financial Position as of June 30, 2019 is comparatively presented with the prior year, whereas the Condensed Interim Consolidated Statements of Income, Other Comprehensive Income, Changes in Shareholders’ Equity and Cash Flows and the related Notes for the six- month period ended June 30, 2019 are comparatively presented with those of the same period of the prior year.

For comparative purposes necessary reclassifications were made on prior-year/period financial statements in order to disclose the figures on a consistent basis. The modification of the comparative information does not imply changes in the decisions taken based thereon.

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 08/08/2019 with our report dated 08/08/2019

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

13 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

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%.

Due to the increase in inflation levels experienced by the Argentine economy, a general consensus has been reached over the fact that Argentina meets the requirements established to be considered a highly inflationary economy under IAS 29. Based on the aforementioned, it is necessary to apply IAS 29 to present the financial information under IFRS for the annual or interim periods as from July 1, 2018.

Should IAS 29 be applied, the monetary restatement of the financial information shall be retroactively made as if the economy has always been hyperinflationary. Items of property, plant and equipment are restated from revaluation date or from acquisition date, as applicable. In addition, prior fiscal year or period figures presented for comparative purposes shall be restated for inflation, which does not imply changes in the decisions taken based on the financial information for such fiscal years or periods.

On December 3, 2018, Law No. 27468 repealed Decree 1269/2002, as amended, whereby the companies did not apply any inflation accounting method as from March 1, 2003. Additionally, it further sets forth that the Executive Branch through the corresponding controlling authorities and the BCRA shall define the date as from which the financial statements must be prepared by applying constant currency.

Through the amendments to Chapter III, section 3, paragraph 1 of Title IV of the Standards (N.T. 2013 and amendments) published on December 26, 2018, the CNV states that it is mandatory to file the financial information in constant currency applicable to annual, interim or special-purpose financial statements for fiscal years ended on or after December 31, 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 08/08/2019 with our report dated 08/08/2019

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

14 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

As indicated in 2.1.b) and as provided for by BCRA Communication “A” 6651 issued on February 22, 2019, which established the adoption of IAS 29 for fiscal years beginning on or after January 1, 2020, the Entity does not restate its financial statements to reflect the effects of inflation.

The interim financial statements as of June 30, 2019 of the subsidiaries of Patagonia Inversora S.A. and Patagonia Valores S.A. were prepared in constant currency as provided for by CD Resolution 107/18 of the Professional Council of Economic Sciences of Buenos Aires (CPCECABA), which established the need for restating in constant currency the financial statements for fiscal years ended on or after July 1, 2018 in line with JG FACPCE Resolution 539/18 dated September 29, 2018.

For the purposes of preparing the condensed interim consolidated financial statements in accordance with the BCRA accounting framework, the Entity has made the necessary adjustments to eliminate any inflation accounting during the process for consolidating subsidiaries.

The existence of an inflationary context affects the Entity’s financial position and results of operations and, therefore, the inflation impact may distort the financial information, which should be considered upon interpreting the information provided by the Entity in these financial statements in respect of its financial position, comprehensive income and cash flows.

For such purposes, as of June 30, 2019, and for the six-month period then ended, the Entity has estimated the impact that the restatement in constant currency would have on the financial statements, which would result in an increase in net equity of 1,524,046 and a decrease in comprehensive income of 2,953,922.

NOTE 4 – JUDGMENTS AND ACCOUNTING ESTIMATES

In preparing the condensed interim 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.

Significant estimates have been prepared by the Bank’s Management by applying the same accounting policies as those applied by the Group, and the same underlying premises applied to the Consolidated Financial Statements ended December 31, 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 08/08/2019 with our report dated 08/08/2019

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

15 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 5 - CHANGES IN ACCOUNTING POLICIES

The Group has consistently applied the accounting policies described in the consolidated financial statements as of December 31, 2018, except for the recognition and valuation of leases, as from January 1, 2019, as a result of the applicability of IFRS 16.

The new or revised IFRS and IAS effective as from January 1, 2019 have no effects on these condensed interim consolidated financial statements, except as mentioned above.

Recognition and valuation of leases

IFRS 16 defines a lease as an agreement whereby the lessor conveys to the lessee, in return for a payment or series of payments, the right to use an asset for an agreed period of time.

The Group as lessee

The Group acts as lessee in the lease agreements of certain branches.

As of the date on which the Group takes possession of the underlying asset, they recognize a right-of-use asset and a lease liability.

Such asset is valued at cost, which includes the initial value of lease liabilities, the lease payments already made, the initial direct costs, and an estimate of the expenses to be incurred to return the underlying assets in the conditions required by the lease agreement, if applicable.

Lease liabilities are recognized as the present value of any lease payments outstanding at the time of registering the agreement, discounted at the incremental borrowing rate in force.

After their initial recognition, the Group measures assets by right-of-use under the cost model, by deducting the initial value, the amount of the accumulated depreciation and the accumulated losses due to impairment.

Depreciation is calculated by applying the straight-line method, based on the entire term of the lease agreement.

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 08/08/2019 with our report dated 08/08/2019

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

16 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Lease liabilities accrue interest at the discount rate with impact on profit or loss, and they decrease with every contract payment effectively made.

Short-term leases or leases involving assets of low value

Pursuant to IFRS 16, in short-term leases or leases where the underlying asset is of low value, the Group recognizes payments related to those contracts on a line-by-line basis as expenses in profit/loss.

This method is applied to all leases.

The Group as lessor

Pursuant to IFRS 16, lessors must classify leases as “finance” or “operating”. The former is defined as “a lease that transfers substantially all the risks and rewards incidental to ownership of the underlying asset". If such transfer does not take place, the lease will be “operating”.

- Finance lease

Finance leases are recognized as a receivable equal to the amount of the net investment in the lease, including commissions, fees and transaction costs, which are those directly related to the negotiation and execution of the lease.

Finance leases are recognized at the current value of the future payments that will be received from lessee, including the price set for the final purchase of the asset upon termination of the agreement, if there is reasonable assurance that such option will be exercised. In order to determine such current value, cash flows are discounted by applying the implicit lease rate. Interest on finance leases are recognized in line Financial gains on interest.

The net investment in the lease is subject to an impairment analysis on financial assets.

- Operating leases

Payments from operating leases are recognized as income on a straight-line basis in the income for the period.

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 08/08/2019 with our report dated 08/08/2019

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

17 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Initial impact

Regarding the estimated impact of the above mentioned standard on these Financial Statements, the Group has decided to apply the modified retrospective method consisting in recognizing lease liabilities in the amount equivalent to the current amount of the future payments agreed as of January 1, 2019, introducing no changes in the comparative information. Based on this approach, the Bank estimates it will recognize a right-of-use asset and a lease liability in the amount of approximately 283,724, mainly from the lease contracts of offices for its network of branches.

NOTE 6 – BASIS OF CONSOLIDATION

As of June 30, 2019, and December 31, 2018, the Bank’s financial statements were consolidated with the financial statements of the following companies:

6/30/2019 12/31/2018 Shares Percentage of Percentage of Company Total Total Voting Voting Class Amount capital capital rights rights stock stock Common GPAT Compañía Financiera S.A.U. 86,837,083 100.00% 100.00% 100.00% 100.00% stock Patagonia Inversora S.A. Sociedad Common 13,317,237 99.99% 99.99% 99.99% 99.99% Gerente Fondos Comunes de Inversión stock Common Patagonia Valores S.A. 13,862,667 99.99% 99.99% 99.99% 99.99% stock Common Banco Patagonia (Uruguay) S.A. I.F.E. 50,000 100.00% 100.00% 100.00% 100.00% stock

The subsidiaries’ financial statements have been prepared as of the same dates and for the same fiscal periods as those of the Bank, and the accounting policies have been consistently applied.

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 condensed interim consolidated statement of financial position, of income, of other comprehensive income, and of changes in shareholders’ equity.

The Bank’s Board of Directors considers that no other companies or special-purpose entities should be included in the condensed consolidated financial statements as of June 30, 2019, December 31, 2018, and June 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 08/08/2019 with our report dated 08/08/2019

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

18 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 7 – CASH AND BANK DEPOSITS

Cash and cash equivalents computed for the purposes of preparing the condensed consolidated statement of cash flows include the following items:

6/30/2019 12/31/2018 Cash on hand 3,708,757 4,752,520 BCRA - Current account 30,863,932 29,379,307 Balances with financial institutions in Argentina and abroad 1,311,713 808,782 Total 35,884,402 34,940,609

NOTE 8 – DEBT SECURITIES MEASURED AT FAIR VALUE WITH CHANGES THROUGH PROFIT OR LOSS

Breakdown is as follows:

6/30/2019 12/31/2018 Argentine Government Securities 81,108 110,946 Argentine Treasury Securities 106,964 65,835 Provincial Government Securities 5,458 5,632 National Corporate Securities 558 515 Total 194,088 182,928

NOTE 9 – DERIVATIVE INSTRUMENTS

In the ordinary course of business, the Group completed forward foreign currency transactions with daily settlement of differences or settlement upon maturity, without delivery of the underlying assets and forward foreign currency transactions. Such transactions do not qualify as hedging as per IFRS 9 Financial Instruments.

The above mentioned instruments are measured at fair value and changes in fair value are recognized in the consolidated statement of income in the lines “Gain/ loss on financial instruments carried at fair value with changes recognized 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 08/08/2019 with our report dated 08/08/2019

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

19 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Breakdown is as follows:

6/30/2019 12/31/2018 Effective securities

Assets Forward foreign currency 526,339 148,988 Total 526,339 148,988

Liabilities Forward foreign currency 77,114 57,990 Forward foreign currency transactions 19,285 16,341

Total 96,399 74,331 Notional securities

Assets Forward foreign currency transactions 67,936 73,999 Forward foreign currency 33,200 2,243 Total 101,136 76,242

Liabilities Forward foreign currency transactions 10,795 2,000 Forward foreign currency 89,985 64,542

Total 100,780 66,542

NOTE 10 – REPO TRANSACTIONS

Breakdown is as follows: 6/30/2019 12/31/2018 Assets Government securities 410,006 15,935 Instruments issued by the BCRA 836,243 647,500 Total 1,246,249 663,435 Liabilities Government securities 29,736 20,865 Instruments issued by the BCRA 1,586,096 895,145 Total 1,615,832 916,010

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 08/08/2019 with our report dated 08/08/2019

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

20 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 11 – OTHER FINANCIAL ASSETS

Breakdown is as follows: 6/30/2019 12/31/2018 Measured at amortized cost Sundry debtors Prisma Medios de Pago S.A. (Note 21) 580,510 - Receivables from spot sales of foreign currency to be settled 1,143,688 1,980,578 Receivables from spot sales of government securities to be settled 639,545 286,222 Sundry receivables 522,695 665,315 Subtotal 2,886,438 2,932,115 Measured at fair value with changes through profit or loss Mutual fund shares 344,157 244,451 Subtotal 344,157 244,451 Less: Allowance for loan losses (Exhibit R) ( 690,607) (18,474) Total 2,539,988 3,158,092

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:

6/30/2019 12/31/2018 Measured at amortized cost 84,300,554 86,415,663 Less: Allowance for loan losses (Exhibit R) ( 4,989,163) (3,866,359) Total 79,311,391 82,549,304

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 08/08/2019 with our report dated 08/08/2019

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

21 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

The breakdown of loans and other financings is as follows:

6/30/2019 12/31/2018 Overdrafts 9,286,093 11,227,037 Notes 30,993,430 29,902,692 Mortgage loans 1,096,492 950,139 Car loans 3,633,874 4,256,974 Consumer 9,724,953 9,829,349 Credit cards 12,243,603 12,766,498 Finance lease 762,233 998,913 Interest and adjustment 1,970,513 1,969,193 Other 14,589,363 14,514,868 Subtotal 84,300,554 86,415,663 Less: Allowance for loan losses (Exhibit R) ( 4,989,163) (3,866,359) Total 79,311,391 82,549,304

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 loans 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:

6/30/2019 12/31/2018 Present value of Present value of Investments Term Total investment minimum lease minimum lease Total payments payments Up to 1 year 642,989 482,331 755,390 530,644 From 1 to 5 years 367,900 294,516 602,657 486,628 Total 1,010,889 776,847 1,358,047 1,017,272

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 08/08/2019 with our report dated 08/08/2019

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

22 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

The present value of minimum payments to be received is as follows:

6/30/2019 12/31/2018 Principal 762,233 998,913 Accrued interest 14,614 18,359 Total 776,847 1,017,272

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:

MEASURED AT FAIR VALUE WITH CHANGES THROUGH OCI

6/30/2019 12/31/2018 BCRA Instruments 40,050,715 17,446,079 Argentine Government Securities 3,775,078 446,674 Argentine Treasury Securities 2,744,461 5,166,380 Provincial Government Securities 323,382 288,418 USA Treasury Bonds 126,279 112,086 Subtotal 47,019,915 23,459,637 Measured at amortized cost 6/30/2019 12/31/2018 Argentine Government Securities 58,673 67,135 Argentine Treasury Securities 125,072 37,469 Provincial Government Securities 41,271 10,462 National Corporate Securities 91,323 74,361

Subtotal 316,339 189,427 Total 47,336,254 23,649,064

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 08/08/2019 with our report dated 08/08/2019

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

23 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 14 – FINANCIAL ASSETS GRANTED AS COLLATERAL

Financial assets granted as collaterals as of June 30, 2019 and December 31, 2018 are broken down as follows:

6/30/2019 12/31/2018 Special guarantee accounts (*) 1,220,381 1,077,553 BCRA - Financial trusts under guarantee of forward 1,139,157 983,324 transactions - Treasury bills in USD, maturity 8/16/2019 548,929 - - Treasury bills in USD, maturity 10/11/2019 168,095 - - Treasury bills in USD, maturity 9/27/2019 126,392 - - Treasury bills in USD, maturity 9/13/2019 126,188 - - Treasury bills in USD, maturity 8/30/2019 84,508 - - Treasury bills in USD, maturity 10/25/2019 83,840 - US dollars as security 1,205 - - Other - 938,234 Security deposits – Credit and debit card managers 324,394 451,702 Security deposits – IADB loan – Global Credit Program for 227,884 270,507 micro-, small- and medium-sized enterprises - Treasury bills in USD, maturity 8/16/2019 227,884 - -Other - 270,507 Other security deposits 14,640 14,588 Total 2,926,456 2,797,674

(*) Granted as collateral and held with the BCRA and Banco Central de Uruguay (see Note 44).

NOTE 15 - INCOME TAX a) Current income tax assets and liabilities:

Breakdown is as follows: 6/30/2019 12/31/2018 Current income tax assets 39,596 40,396

Current income tax liabilities Tax provision 3,634,541 3,248,857 Advances (733,955) (1,485,758) Withholdings and collections (2,359) (5,221) Total 2,898,227 1,757,878

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 08/08/2019 with our report dated 08/08/2019

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

24 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos) b) Income tax expense:

The income tax expense for the interim period 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.

In this regard, Law No. 27430, amended by Law No. 27468, states that it is mandatory to deduct or add to income for tax purposes the inflation adjustment calculated as provided for by the Income Tax Law. However, in light of the different interpretations existing as to the inflation levels required to apply such regulation, and the legislative precedents, there is uncertainty as to the applicability of such adjustment. Therefore, the impact of the inflation adjustment for tax purposes on the effective annual rate as of year-end has not been recognized as of June 30, 2019.

The Group's effective rate for the six-month periods ended June 30, 2019, and 2018 was 33.2% and 31.6%, respectively.

Income tax expense is broken down as follows:

6/30/2019 6/30/2018 Current tax 3,634,541 1,301,001 Deferred tax ( 136,667) (312,130) Income tax expense 3,497,874 988,871

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:

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 08/08/2019 with our report dated 08/08/2019

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

25 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Information as of June 30, 2019 Fair value Book balances Position as of Description level as of 6/30/2019 6/30/2019 Prisma Medios de Pago S.A. (*) 3 835,625 835,625 - Banco Latinoamericano de Comercio Exterior S.A. 2 4,432 4,432 - Grupo Financiero Valores S.A. 2 2,847 2,847 - Seguro de Depósitos S.A. 2 493 493 - Society for Worldwide Interbank Financial Telecommunication 2 142 142 - Miralejos S.A.C.I.F.I. y A. 2 106 106 - 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. Service works Tres Arroyos 2 12 12 - Coop. Eléctrica Ltda. de Claromecó 2 1 1 - Other 2 - - Total 843,887 843,887

Information as of December 31, 2018 Book balances Fair value Position as of Description as of level 12/31/2018 12/31/2018 - Banco Latinoamericano de Comercio Exterior S.A. 2 3,284 3,284 - Grupo Financiero Valores S.A. 2 1,834 1,834 - Seguro de Depósitos S.A. 2 492 492 - Miralejos S.A.C.I.F.I. y A. 2 366 366 - Society for Worldwide Interbank Financial Telecommunication 2 127 127 - 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. Service works Tres Arroyos 2 12 12 - Coop. Eléctrica Ltda. de Claromecó 2 3 3 Total 6,347 6,347

(*) It relates to the remaining shareholding after 51% of shares were transferred to AI ZENITH (Netherlands) B.V. (See Note 21).

It was valued based on a report prepared by independent professionals, net of a valuation adjustment as provided for 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 Signed for identification purposes with our report dated 08/08/2019 with our report dated 08/08/2019

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

26 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

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:

6/30/2019 12/31/2018 Interbanking S.A. 102,190 122,100 Mercado Abierto Electrónico S.A. 27,013 20,940 Compensadora Electrónica S.A. 3,918 2,483 Provincanje S.A. 1,509 1,330 Total 134,630 146,853

NOTE 18 – PROPERTY, PLANT AND EQUIPMENT

Additionally, as mentioned in Note 5.6 to the consolidated financial statements as of December 31, 2018, 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.

The table below shows a summary of changes in intangible assets.

Rights of Remaining Buildings use assets Total Residual value as of January 1, 2019 5,113,836 - 380,230 5,494,0 66 Additions 2,956 342,788 140,277 486,021 Retirements - (41) (50) (91) Depreciation expense (36,248) (89,718) (82,984) (208,950) Residual value as of June 30, 2019 5,080,544 253,029 437,473 5,771,046

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 08/08/2019 with our report dated 08/08/2019

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

27 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 19 – INTANGIBLE ASSETS

The table below shows a summary of changes in intangible assets. Total Residual value as of January 1, 2019 62,630 Additions 105,986 Retirements - Depreciation expense (19,982) Residual value as of June 30, 2019 148,634

NOTE 20 – OTHER NON FINANCIAL ASSETS

Breakdown is as follows:

6/30/2019 12/31/2018 Advance payments 237,004 238,739 Assets acquired as security for loans 58,459 58,459 Investment property 25,710 25,710 Other miscellaneous assets 11,744 8,869 Works of art 3,691 3,691 Other 20,091 11,710 Total 356,699 347,178

The criteria informed in Note 18 above have been applied to the valuation of Investment property.

NOTE 21 – NON CURRENTASSETS HELD FOR SALE

Breakdown is as follows:

Investment in associates:

As of December 31, 2018, the Group had registered as held for sale their shareholdings in Prisma Medios de Pago S.A. in the amount of 212,791.

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 08/08/2019 with our report dated 08/08/2019

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

28 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

On February 1, 2019, AI ZENITH (Netherlands) B.V. (company related to Advent International Corporation), received 1,153,706 registered, common shares of Prisma Medios de Pago S.A., with a nominal value of $ 1 each and one vote per share, accounting for 51% of interest in such company’s capital stock. The price offered for such shares amounted to USD 38,520,752 payable as follows: (i) 60% upon transfer of shares and (ii) 40% within the term of 5 years considered as from the transfer.

To the date of issuance of these financial statements, the Entity is the holder of 1,108,462 shares of Prisma Medios de Pago S.A. that account for 2,6822% of its capital stock and are registered in line “Investments in equity instruments”. (See Note 16).

Land and buildings:

As of June 30, 2019, the Group records no items of real property held for sale.

As of December 31, 2018, the Group held a piece of property located in Vicente López, province of Buenos Aires, in the amount of 22,040, which was sold in January 2019.

NOTE 22 - DEPOSITS

Information about this account as of June 30, 2019 and December 31, 2018 is disclosed in Exhibit “H”– Deposits concentration to these condensed interim consolidated financial statements.

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

6/30/2019 12/31/2018 Checking accounts 11,130,163 10,149,168 Time deposit and investments 46,944,781 37,935,565 Savings accounts 46,358,912 44,273,423 Investment accounts 755 805 Interest and adjustment 1,425,444 1,305,575 Other 5,126,180 3,418,737 Total 110,986,235 97,083,273

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 08/08/2019 with our report dated 08/08/2019

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

29 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 23 – OTHER FINANCIAL LIABILITIES

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

6/30/2019 12/31/2018 Credit and debit card charges payable 3,534,703 4,672,778 Collections on account and on behalf of third parties 1,430,603 1,066,106 Payables from spot purchase of foreign currency to be settled 1,282,413 1,947,127 Payables from spot purchase of government securities to be settled 609,852 416,912 Payables from foreign trade transactions 198,457 359,039 Sundry payables 1,240,322 859,733 Total 8,296,350 9,321,695

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:

6/30/2019 12/31/2018 Financing facilities received from foreign financial institutions 12,360,124 8,281,573 Financing facilities received from local financial institutions 1,363,521 1,060,872 BCRA 10,328 15,603 Total 13,733,973 9,358,048

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 provides for 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.

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 08/08/2019 with our report dated 08/08/2019

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

30 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

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.

By virtue of the maturity of the Global Program for the Issuance of Simple Corporate Bonds in force, the Annual Shareholders’ Meeting held on April 26, 2017 approve the extension of such program in accordance with the CNV rules, as well as the increase in the maximum outstanding amount, as described below. a) Effective for 5 years from CNV authorization or the maximum term to be established by the future applicable regulations; 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 USD 500,000,000 or its equivalent in other currencies will be the maximum outstanding amount during the effective term of the program; and d) The funds to be obtained from placement of the Corporate Bonds issued under such Program shall be used for one or more of the purposes under section 36, Law No. 23576, as amended and BCRA rules on Repo Transactions, Placement of Securities and Debt section, or as established in applicable regulations, depending on the related pricing appendix.

On September 14, 2017, CNV authorized the increase in the maximum amount and the extension of the program through the provisions of Resolution No. 18933.

2. GPAT´s Global corporate bond issuance program approved by CNV on February 11, 2011

The Argentine Securities Commission Resolution No. 15868, dated April 30, 2008, authorized the initial public offering of GMAC Compañía Financiera S.A. (Pre-existing company of GPAT Compañía Financiera S.A.U.), through the establishment of a global program for the issuance of simple, non-convertible corporate bonds into stock, up to the amount of 400,000 or the equivalent thereof 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.

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 08/08/2019 with our report dated 08/08/2019

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

31 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

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 to 800,000, being approved by the CNV on February 28, 2012.

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

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 and its extension for a 5-year term. The enlargement and extension were approved by the Shareholders’ Annual Meeting called on January 18, 2017, and approved by the CNV on April 12, 2017.

The issues in force are as follows:

Issue Issued value Annual nominal Date of Maturity Balance Balance rate issue date as of as of 6/30/2019 12/31/2018 GPAT Compañía Financiera S.A.U. 33.00% Series XXIII Class B 188,889 (9/14/2016) - 6/14/2016 6/14/2019 - 177,858 Badlar + 3.50% Series XXVI Class B 52,857 Badlar + 3.44% 1/24/2017 1/24/2019 - 58,108 Series XXVII Class B 177,500 Badlar + 3.50% 5/10/2017 5/10/2020 162,449 161,887 Series XXVIII Class B 123,333 Badlar + 3.97% 6/27/2017 6/27/2020 123,728 124,203 27.50% (04/05/18) Series XXX Class B 191,111 10/5/2017 10/5/2020 215,472 215,434 - Badlar + 4.17% Series XXXI Class A 500,000 25.77% 2/6/2018 2/6/2019 - 476,673 Series XXXII Class A 450,000 25.75% 4/25/2018 10/25/2019 464,328 463,892 Series XXXIII Class A 500,000 45.00% 2/5/2019 2/5/2020 578,409 - Total 1,544,386 1,678,055

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 08/08/2019 with our report dated 08/08/2019

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

32 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 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 six-month period ended June 30, 2019 are disclosed in Exhibit “J” Changes in allowances and provisions to these condensed interim consolidated 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 49 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 condensed interim consolidated financial statements.

NOTE 27 – OTHER NON FINANCIAL LIABILITIES

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

6/30/2019 12/31/2018 Other short term employees’ benefits payable 704,768 759,291 Withholdings and collections 614,842 633,116 Other taxes payable 533,058 586,956 Advance payments received 458,282 418,670 Payroll and social security contributions payable 321,596 235,032 Social security payment orders 310,463 116,552 Payroll withholdings payable 99,892 64,436 Prepayments received for sale of assets 3,809 28,274 Other 437,018 549,374 Total 3,483,728 3,391,701

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 08/08/2019 with our report dated 08/08/2019

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

33 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 28 – SHARE CAPITAL a) Capital structure

The Entity’s share capital 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 companies.

The Bank's controlling shareholder is Banco do Brasil S.A., which has a shareholding of 80.39% of the total capital stock.

NOTE 29 – INTEREST INCOME

Breakdown is as follows:

Interest income 6/30/2019 6/30/2018 Government securities measured at fair value with changes through 12,293,119 1,458,764 OCI Notes 3,000,907 1,665,481 Consumer loans 2,134,158 1,699,243 Overdrafts 2,045,822 1,272,979 Credit cards 2,015,374 851,471 Other loans 624,413 685,059 Car loans 576,712 676,697 Premium on reverse repo transactions with the financial sector 437,945 86,553 Loans to the financial sector 379,635 206,776 Finance lease 139,141 150,947 Other 823,842 174,655 Total 24,471,068 8,928,625

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 08/08/2019 with our report dated 08/08/2019

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

34 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 30 – INTEREST EXPENSE

Breakdown is as follows:

Interest expense 6/30/2019 6/30/2018 Time deposits 9,319,459 2,588,818 Premium on repo transactions with the financial sector 536,809 89,243 Financing facilities received from local financial institutions (Call) 468,333 143,756 Deposits in savings accounts 398,046 107,153 Corporate bonds 307,066 339,167 Other financing facilities received from financial institutions 56,012 41,803 Other 382,539 178,533 Total 11,468,264 3,488,473

NOTE 31 – FEE INCOME

Breakdown is as follows:

Fee income 6/30/2019 6/30/2018 Credit and debit cards 767,309 626,517 Deposits 760,364 627,824 Packages of products 483,338 331,637 Insurance 452,960 339,769 Collections 250,622 137,160 Foreign trade 145,628 87,599 Securities 36,343 25,838 Loans 34,948 37,672 Other 38,718 28,185 Total 2,970,230 2,242,201

NOTE 32 – FEE EXPENSES

Breakdown is as follows:

Fee expenses 6/30/2019 6/30/2018 Related to credit and debit cards 513,363 392,354 Government sector 138,696 77,445 Related to securities 17,104 12,031 Collections 12,167 24,788 Transfers 9,051 16,432 Other 122,183 44,744 Total 812,564 567,794

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 08/08/2019 with our report dated 08/08/2019

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

35 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 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 6/30/2019 6/30/2018 changes through profit or loss Corporate securities 626,920 9,579 Gain/loss on the sale or derecognition of financial assets at fair value 78,044 34,657 Government securities and instruments issued by the BCRA 63,682 315,852 Forward foreign currency transactions (16,888) (27,359) Total 751,758 332,729

NOTE 34 – OTHER OPERATING INCOME

Breakdown is as follows:

Other operating income 6/30/2019 6/30/2018 Gain/loss on the sale of non current assets held for sale 1,409,675 - Commissions from lease of safe-deposit boxes 125,417 98,939 Recovered receivables 119,087 43,402 Management fees (FCI manager company) 103,266 79,362 Punitive interest 62,179 26,566 Proceeds from the sale of property, plant and equipment 55,745 94,028 Other 559,586 313,780 Total 2,434,955 656,077

NOTE 35 – EMPLOYEE BENEFITS

Breakdown is as follows:

Employee benefits 6/30/2019 6/30/2018 Salaries 2,440,449 1,666,342 Social security contributions 477,150 354,939 Services to personnel 94,511 64,003 Severance payments 70,586 51,529 Other benefits 73,396 82,483 Total 3,156,092 2,219,296

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 08/08/2019 with our report dated 08/08/2019

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

36 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 36 – ADMINISTRATIVE EXPENSES

Breakdown is as follows:

Administrative expenses 6/30/2019 6/30/2018 Maintenance, conservation and repair expenses 395,951 238,098 Taxes 368,416 262,073 Fees 213,591 124,724 Electric power and communications 158,335 92,429 Armored vehicle services 150,444 110,388 Advertising and marketing 142,066 114,941 Surveillance services 133,192 93,246 Entertainment and per diem expenses 29,327 16,897 Leases 27,777 107,492 Other 340,167 246,148 Total 1,959,266 1,406,436

NOTE 37 – OTHER OPERATING EXPENSES

Breakdown is as follows:

Other operating expenses 6/30/2019 6/30/2018 Turnover tax 1,173,780 756,077 ATM expenses 176,442 122,074 Contribution to the deposit guarantee fund (Note 45) 98,293 57,873 Charge for other allowances 42,339 22,681 Other 197,009 97,053 Total 1,687,863 1,055,758

NOTE 38 – 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 June 30, 2019 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 08/08/2019 with our report dated 08/08/2019

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

37 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

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 194,088 - - 194,088 185,569 8,519 - with changes through profit or loss Derivative financial 526,339 - - 526,339 - 526,339 - instruments Other debt securities 47,336,254 316,339 47,019,915 - 2,857,290 44,162,625 - Financial assets granted 2,926,456 772,576 2,153,880 - - 2,153,880 - as collaterals Investments in equity 843,887 - - 843,887 - 8,262 835,625 instruments Total 51,827,024 1,088,915 49,173,795 1,564,314 3,042,859 46,859,625 835,625

Fair value Fair value with with Book Amortized Item changes changes Level 1 Level 2 Level 3 balance cost through through OCI profit or loss Financial liabilities Liabilities measured at fair value with changes 34,353 - - 34,353 34,353 - - through profit or loss Derivative financial 96,399 - - 96,399 - 96,399 - instruments Total 130,752 - - 130,752 34,353 96,399 -

The fair value hierarchy of assets and liabilities measured at fair value as of December 31, 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 08/08/2019 with our report dated 08/08/2019

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

38 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

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 182,928 - - 182,928 140,215 42,713 - with changes through profit or loss Derivative financial 148,988 - - 148,988 - 148,988 - instruments Other debt securities 23,649,064 189,427 23,459,637 - 18,819,887 4,639,750 - Financial assets 2,797,674 1,551,843 1,245,831 - 465,092 780,739 - granted as collaterals Investments in equity 6,347 - - 6,347 5,118 1,229 - instruments Total 26,785,001 1,741,270 24,705,468 338,263 19,430,312 5,613,419 -

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 liabilities Derivative financial 74,331 - - 74,331 - 74,331 - instruments Total 74,331 - - 74,331 - 74,331 -

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:

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 08/08/2019 with our report dated 08/08/2019

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

39 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

6/30/2019 12/31/2018 Breakdown Argentine Treasury Bond in ARS, maturity 2020 4,223 33,087 Argentine Government Bond in ARS - Private Badlar + 325 bps. - 726 Maturity 2020 Argentine Treasury Bonds in ARS adjusted by CER, maturity 202 0 - 78 Total 4,223 33,891 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 6/30/2019 12/31/2018 Argentine Treasury Bond in ARS, fixed rate, maturity 2020 3,771,900 - Debt securities of the province of Río Negro, Class I 46,160 - Argentine Treasury Bond in ARS, maturity 2020 1,887 - Debt securities of the province of Chubut, Class II - 227 Total 3,819,947 227

These holdings were included in hierarchy level 2 as of December 31, 2018, and as of June 30, 2019, 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 08/08/2019 with our report dated 08/08/2019

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

40 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 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.

Investments in equity instruments The Group includes in Level 3, its interest in Prisma Medios de Pago S.A., registered in line “investments in equity instruments”, as the valuation calculated by independent professionals was applied to determine its fair value, adjusting such valuation as per the BCRA requirements. Assets stated at fair value based on unobservable data is registered in line “Net gain on financial instruments measured at fair value through profit or loss”.

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 June 30, 2019 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 08/08/2019 with our report dated 08/08/2019

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

41 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Accounting FV FV FV FV Item balance as of Total Level 1 Level 2 Level 3 6/30/2019 Financial assets Cash and bank deposits 35,884,402 ( 1) - - - Repo transactions 1,246,249 ( 1) - - - Other financial assets 2,539,988 2,236,539 - - 2,236,539 Loans and other financing facilities 79,311,391 72,281,586 - - 72,281,586 Financial liabilities Deposits 122,580,924 122,466,754 - - 122,466,754 Repo transactions 1,615,832 ( 1) - - - Other financial liabilities 8,296,350 ( 1) - - - Financing facilities received from the BCRA and other financial 13,733,973 ( 1) - - - institutions Corporate bonds issued 1,544,386 1,389,354 - - 1,389,354

(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, 2018 is as follows:

Accounting FV FV FV FV Item balance as of Total Level 1 Level 2 Level 3 12/31/2018

Financial assets

Cash and bank deposits 34,940,609 ( 1) - - -

Repo transactions 663,435 (1) - - -

Other financial assets 3,158,092 3,157,443 - - 3,157,443

Loans and other financing facilities 82,549,304 75,504,706 - - 75,504,706

Financial liabilities

Deposits 109,117,039 107,488,272 - - 107,488,272

Repo transactions 916,010 ( 1) - - -

Other financial liabilities 9,321,695 ( 1) - - - Financing facilities received from the BCRA and other financial 9,358,048 ( 1) - - - institutions Corporate bonds issued 1,678,055 1,561,863 - - 1,561,863

(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 08/08/2019 with our report dated 08/08/2019

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

42 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 39 – 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) to the consolidated financial statements as of December 31, 2018, 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.

The financial assets that have been transferred but not derecognized, together with the related financial liabilities as of June 30, 2019 and December 31, 2018 are reported below.

Item 6/30/2019 12/31/2018 Securities receivable from repo transactions involving government securities Government securities measured at fair value with changes through profit 33,192 5,450 or loss Government securities measured at fair value with changes through OCI - 17,100 Liquidity bills measured at fair value with changes through OCI 1,762,537 989,310 Total 1,795,729 1,011,860

Sundry payables from repo transactions involving government securities Government securities 29,736 20,865 Liquidity bills 1,586,096 895,145 Total 1,615,832 916,010

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 08/08/2019 with our report dated 08/08/2019

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

43 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 40 – 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 other: it includes transactions with financial sector customers, investment activities, derivatives and funding transactions.

For management information purposes, the balance sheet balances are those corresponding to the average month and not those at period-end and profit or loss of each segment were determined by using the internal transfer rate of the Bank.

For the six-month periods ended June 30, 2019 and 2018, there are no transactions with individual customers accounting for 10% or more of the Bank’s total revenues, or exploitations in geographical areas significantly different from the Bank’s country of main residence (Argentina).

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

• As of June 30, 2019, and December 31, 2018 for the information related to the Bank’s financial position;

• For the six-month periods ended June 30, 2019 and 2018, for the information related to the Bank's 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 08/08/2019 with our report dated 08/08/2019

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

44 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Information as of June 30, 2019

Treasury Total Individuals Commercial and others as of 6/30/2019 Interest income/loss 3,553,000 3,030,015 6,155,733 12,738,748 Fee income/loss 825,268 1,072,966 101,607 1,999,841 Net gain on financial instruments measured at - 17,517 734,241 751,758 fair value through profit or loss Gold and foreign currency quoted price 334,160 311,463 319,383 965,006 difference Other operating income – net 63,182 104,135 2,002,294 2,169,611 Charge for loan losses (655,962) (508,923) (1,028,381) (2,193,266)

TOTAL OPERATING INCOME 4,119,648 4,027,173 8,284,877 16,431,698 Operating and administrative expenses ( 6,335,409)

Gain/loss on associates and joint ventures 446,683

Income tax (3,497,874) NET INCOME 7,045,098

Reconciliation with the statement of income Net income as of 6/30/2019 as per statement of income 7,035,579 Reconciliation between management information and regulatory information 9,519 Total profit or loss reported in s egments 7,045,098

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 08/08/2019 with our report dated 08/08/2019

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

45 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Treasury Total Individuals Commercial and others as of 6/30/2019 Loans 21,332,238 45,492,675 6,422,973 73,247,886 Other assets 1,822,678 951,386 87,616,935 90,390,999 TOTAL ASSETS 23,154,916 46,444,061 94,039,908 163,638,885

Deposits 60,617,735 40,522,338 19,183,106 120,323,179 Other liabilities - - 27,184,634 27,184,634 TOTAL LIABILITIES 60,617,735 40,522,338 46,367,740 147,507,813

Reconciliation with the statement of financial position

Assets as of 6/30/2019 as per the statement of financial position 177,344,463 Reconciliation between management information and regulatory information: - Loans (6,063,505) - Other assets (7,642,073)

Total assets reported in segments 163,638,885

Liabilities as of 6/30/2019 as per the statement of financial position 154,705,901 Reconciliation between management information and regulatory information: - Deposits (2,257,745) - Other liabilities (4,940,343)

Total liabilities reported in segments 147,507,813

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 08/08/2019 with our report dated 08/08/2019

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

46 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Information as of June 30, 2018

Treasury Total Individuals Commercial and others as of 6/30/2018 Interest income/loss 2,106,644 1,692,952 1,514,174 5,313,770 Fee income/loss 660,529 909,049 71,627 1,641,205 Net gain on financial instruments measured at - 3,890 594,328 598,218 fair value through profit or loss Gold and foreign currency quoted price 174,342 173,860 37,283 385,485 difference Other operating income – net 38,155 19,493 274,095 331,743 Charge for loan losses (373,127) (191,069) (205,577) (769,773)

TOTAL OPERATING INCOME 2,606,543 2,608,175 2,285,930 7,500,648 Operating and administrative expenses ( 4,620,732)

Gain/loss on associates and joint ventures 214,229

Income tax (988,871) NET INCOME 2,105,274

Reconciliation with the statement of income

Net income as of 6/30/2018 as per statement of income 2,137,640

Reconciliation between management information and regulatory information (32,366)

Total profit or loss reported in segments 2,105,274

Treasury Total Individuals Commercial and others as of 6/30/2018 Loans 20,454,808 38,674,905 8,261,484 67,391,197 Other assets 1,782,574 688,057 40,399,688 42,870,319 TOTAL ASSETS 22,237,382 39,362,962 48,661,172 110,261,516

Deposits 42,953,910 24,222,337 11,444,988 78,621,235 Other liabilities 42,206 16,347 18,102,529 18,161,082 TOTAL LIABILITIES 42,996,116 24,238,684 29,547,517 96,782,317

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 08/08/2019 with our report dated 08/08/2019

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

47 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Information as of December 31, 2018

Treasury Total Individuals Commercial and others as of 12/31/2018 Loans 21,799,979 49,932,226 6,862,147 78,594,352 Other assets 1,876,826 960,002 66,373,539 69,210,367 TOTAL ASSETS 23,676,805 50,892,228 73,235,686 147,804,719

Deposits 54,132,315 37,902,727 15,065,466 107,100,508 Other liabilities 43,115 20,622 25,060,260 25,123,997 TOTAL LIABILITIES 54,175,430 37,923,349 40,125,726 132,224,505

Reconciliation with the statement of financial position

Assets as of 12/31/2018 as per the statement of financial position 154,495,006 Reconciliation between management information and regulatory information: - Loans (3,954,952) - Other assets (2,735,335)

Total assets reported in segments 147,804,719

Liabilities as of 12/31/2018 as per the statement of financial position 136,201,786 Reconciliation between management information and regulatory information: - Deposits (2,016,531) - Other liabilities (1,960,750)

Total liabilities reported in segments 132,224,505

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 08/08/2019 with our report dated 08/08/2019

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

48 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 41 - SUBSIDIARIES

Below there is information about the Bank’s subsidiaries as of June 30, 2019 and December 31, 2018:

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

Structured entities not consolidated

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. Those loans were not recorded in the financial statements, since they are not the Bank’s assets and, therefore, they are not consolidated.

NOTE 42 – 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.

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 08/08/2019 with our report dated 08/08/2019

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

49 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

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 Entity'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:

Highest balance for the period/year Item Balances as of (1) 6/30/2019 12/31/2018 6/30/2019 12/31/2018 Loans – loans to personnel - - - 2 Loans – Credit cards 2,277 2,760 3,087 4,017 Loans - Other advances - - - 8 Deposits received 49,082 48,672 64,195 549,867

(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. Loans are classified as performing in accordance with the BCRA standards on debtors classification. Total fees received by the Board of Directors for the six-month period ended June 30, 2019 and 2018 amounted to 90,208 and 56,604, respectively.

Banco do Brasil S.A.

Banco do Brasil S.A. is a financial institution organized under the laws of Brazil and is the Entity's majority shareholder.

The equity balances with Banco do Brasil S.A. as of June 30, 2019 and December 31, 2018 are detailed below:

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 08/08/2019 with our report dated 08/08/2019

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

50 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Balances as of Hig hest balance for the period/year (1) Item 6/30/2019 12/31/2018 6/30/2019 12/31/2018 Cash and cash equivalents– balances in 36,573 16,337 158,056 103,597 other financial institutions Other receivables 381,765 338,914 389,215 338,914 Deposits 33,232 30,107 33,278 30,107 Financing facilities received from financial 2,556,753 378,140 2,556,753 378,140 institutions Guarantees granted (2) 39,477 65,408 41,729 70,751 Guarantees received (3) 339,586 151,233 358,960 163,587

(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 letters 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.

Profit or loss for the six-month period ended June 30, 2019 and 2018 were as follows:

SIX-MONTH PERIOD ENDED Item 6/30/2019 6/30/2018

Interest income 6,110 2,193 Interest expense 30,189 - Fee income 1 1 Fee expenses - 12 Other operating income 251 202

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.

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 08/08/2019 with our report dated 08/08/2019

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

51 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

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.

Highest balance for the Balances as of Item period/year (1) 6/30/2019 12/31/2018 6/30/2019 12/31/2018 Financial assets measured at fair value– securities issued by the Province of Río 278,458 294,244 289,681 294,244 Negro Loans - advances - - 1,500,000 - Loans – syndicated loan 36,875 86,266 67,618 138,691 Deposits 56,886 268,973 1,029,377 885,436

Transactions with the Province of Río Negro 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 08/08/2019 with our report dated 08/08/2019

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

52 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Profit or loss for the six-month period ended June 30, 2019 and 2018 were as follows:

SIX-MONTH PERIOD ENDED Item 6/30/2019 6/30/2018 Interest income 46,158 53,453 Fee income 29,713 24,095

Associates

Transactions with the Group’s associates are as follows:

Highest balance for the period/year Balances as of Item (1) 6/30/2019 12/31/2018 6/30/2019 12/31/2018 Deposits 899,513 629,977 1,869,804 922,237

(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 43 – 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 as a one-off payment in accordance with the general rate in force in such year. 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 other stock companies not considered when determining such income in the same fiscal periods.

However, the referred Law 27430 reduced the income tax rate applicable to corporations from 35% to 30% during the two fiscal years beginning on or after December 1, 2018. This reduction is supplemented with a 7% income tax withholding on the payment of dividends paid out of income for the year. 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 08/08/2019 with our report dated 08/08/2019

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

53 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 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 if certain circumstances are not verified, such as having received financial assistance from that entity due to illiquidity or shortfalls as regards minimum capital requirements or minimum cash requirements, and having been subject to penalties imposed by specific regulators, which are deemed to be material, and/or having implemented no corrective measures, 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 Entity 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.

As provided for by General Resolution No. 593 of the CNV, the Shareholders’ Meeting held to consider the annual financial statements shall resolve on the allocation of accumulated earnings of the Entity, 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 Entity proposed the following distribution of earnings for fiscal year ended December 31, 2018:

- Legal Reserve (20% of 5,350,670) 1,070,134 - Optional Reserve for future distribution of earnings 1,605,201 - Cash dividends 2,675,335 Total 5,350,670

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 08/08/2019 with our report dated 08/08/2019

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

54 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

For the purposes of recognition of unappropriated retained earnings as of December 31, 2018, it was proposed that the optional reserves be used to absorb the loss in the amount of 170,594 arising from the adjustment related to the IFRS first-time adoption.

Such proposal was approved by the Annual and Extraordinary Shareholders’ Meeting held on April 25, 2019, and the related dividends in cash were made available to the shareholders on May 10, 2019.

On July 15, 2019, the Annual Shareholders’ Meeting resolved the partial reversal of the Optional Reserve for Future Distribution of Earnings, which had been set before fiscal year 2018, to be allocated to the payment of cash dividends in the amount of 442,323 that were made available to the shareholders on July 29, 2019.

GPAT Compañía Financiera S.A.U.

Finally, taking into account the rules on distribution of earnings mentioned above, distributable earnings amount to 17,180, and it is proposed that they be allocated as follows:

- Legal Reserve (20% of 17,180) 3,436 - Optional Reserve for future distribution of earnings 13,744 Total 17,180

On April 17, 2019, the Shareholders’ Meeting approved that losses in the amount of 130,014 resulting from the adjustment due to first-time adoption of IFRS be offset by optional reserves.

Patagonia Valores S.A.

The Annual Shareholders’ Meeting held on April 24, 2019 approved that unappropriated retained losses accumulated in the amount of 125,120, as of fiscal year ended December 31, 2018, be absorbed by the Optional Reserve in the amount of 17,230 and the Legal Reserve in the amount of 3,876, and that the remaining balance of 104,014 be offset by partially applying the Capital Adjustment. All such figures are stated at the value of currency at the fiscal year ended December 31, 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 capital stock is reached plus the capital adjustment.

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 08/08/2019 with our report dated 08/08/2019

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

55 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

The Annual General Shareholders’ Meeting held on April 24, 2019 approved the following distribution of earnings, for the fiscal year ended December 31, 2018:

- Legal reserve 2,034 - To Unappropriated retained earnings 91,437 Total 93,471

NOTE 44 – RESTRICTED ASSETS

The Group has the following restricted assets:

Government securities – IADB loan – Global Credit 227,884 270,507 Program for micro-, small- and medium-sized enterprises - Treasury bills in USD, maturity 8/16/2019 227,884 - - Other - 270,507 Other security deposits 14,640 14,588 Subtotal 2,926,456 2,797,674

Security deposits for repurchase agreements 179,646 101,186 Subtotal 179,646 101,186

Total 3,106,102 2,898,860

(*) 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 08/08/2019 with our report dated 08/08/2019

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

56 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 45 – 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 June 30, 2019 and December 31, 2018, 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 per Communication “A” 6654, dated February 28, 2019, in force as from March 1, 2019, the BCRA has increased the maximum amount covered by the Deposit Guarantee Insurance System to thousand Argentine pesos 1,000.

As of June 30, 2019 and 2018, the contributions made have been recorded in “Other operating expenses – Contributions to the deposit guarantee fund” in the amount of 98,293 and 57,873, respectively (see Note 37).

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 08/08/2019 with our report dated 08/08/2019

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

57 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 46 – 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.

Minimum cash requirements 6/30/2019 12/31/2018 Cash and bank deposits BCRA - Current account 30,863,932 29,379,307 Other debt securities Argentine Treasury Bond in ARS - Fixed Rate, maturity 2020 3,771,900 3,243,600 Financial assets granted as collaterals BCRA - Special guarantee accounts 1,220,381 1,077,553 Total 35,856,213 33,700,460 Minimum capital requirements

The minimum capital requirements are as follows at each reporting date:

Minimum capital requirements 6/30/2019 12/31/2018 Minimum capital requirements (A) 10,707,725 9,804,468 Credit risk 7,859,986 7,659,221 Market risk – Securities 64,184 68,461 Market risk - Currencies 191,249 113,658 Operational risk 2,592,306 1,963,128 Payment (B) 21,481,632 15,258,552 Surplus (B - A) 10,773,907 5,454,084

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 08/08/2019 with our report dated 08/08/2019

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

58 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 47 – 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 June 30, 2019, the Entity manages the following financial trusts subject to public offering:

Eq uity as Date of Assets as of Financial trust Trustor Assets held in trust of agreement 6/30/2019 6/30/2019 Loans resulting from the CMR Falabella LXXIII CMR Falabella 11/12/2018 179,460 use of credit - cards Loans resulting from the CMR Falabella LXXIV CMR Falabella 2/5/2019 210,098 use of credit - cards Ribeiro Minicreditos 4 Ribeiro S.A.C.I.F.A. e l. 2/26/2018 23,298 Consumer loans 23,099

Ribeiro Minicreditos 5 Ribeiro S.A.C.I.F.A. e l. 10/31/2018 169,498 Consumer loans 122,621

Mercado Crédito I Mercado Libre S.R.L. 7/11/2018 (*) 21,321 Loans granted electronically -

Mercado Crédito II Mercado Libre S.R.L. 11/14/2018 136,627 Loans granted electronically 46,988

Mercado Crédito III Mercado Libre S.R.L. 2/13/2019 307,408 Loans granted electronically 58,309

Serie Ribeiro XCVIII Ribeiro S.A.C.I.F.A. e l. 12/15/2017 (*) 8,132 Consumer loans -

Serie Ribeiro XCIX Ribeiro S.A.C.I.F.A. e l. 1/29/2018 54,738 Consumer loans 54,408

Serie Ribeiro C Ribeiro S.A.C.I.F.A. e l. 4/12/2018 146,841 Consumer loans 105,510

Serie Ribeiro CI Ribeiro S.A.C.I.F.A. e l. 7/16/2018 126,507 Consumer loans 70,915

Serie Ribeiro CII Ribeiro S.A.C.I.F.A. e l. 4/12/2018 179,409 Consumer loans 52,603

Serie Ribeiro CIII Ribeiro S.A.C.I.F.A. e l. 12/12/2018 159,459 Consumer loans 46,693

Serie Ribeiro CIV Ribeiro S.A.C.I.F.A. e l. 12/12/2018 294,821 Consumer loans 75,006

Total 2,017,617 656,152

(*) As per financial statements for liquidation purposes as of 3/31/2019

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 08/08/2019 with our report dated 08/08/2019

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

59 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Public financial trusts authorized by the CNV, the financial statements of which are required after 6/30/2019:

Date of Financial trust Trustor Assets held in trust agreement Serie Ribeiro CV Ribeiro S.A.C.I.F.A. e I. 5/28/2019 Consumer loans

Mercado Crédito IV Mercado Libre S.R.L. 5/8/2019 Loans granted electronically

Financial trusts in escrow

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 - Funds received from government Fondo Fiduciario de loan transactions authorized by desarrollo Rionegrino Province of Río Negro 11/24/2017 section 1 of Law No. 5201 Plan Gobernador Castello

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 above mentioned 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 08/08/2019 with our report dated 08/08/2019

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

60 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 48 – 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 June 30, 2019 Total Shareholders’ Name Deposits Other assets Equity Lombard Renta en Pesos Fondo Común de Inversión 10,396,847 1,026,007 11,422,854 11,422,541 Lombard Capital F.C.I. 2,082,386 3,519,621 5,602,007 5,373,269 Fondo Común de Inversión Lombard Renta Fija 940 216,551 217,491 216,197 Fondo Común de Inversión Lombard Pesos Plus (*) - - - - Fondo Común de Inversión Lombard Ahorro 8,821 - 8,821 8,821 Fondo Común de Inversión Lombard Abierto Plus 145,578 597,552 743,130 741,754 Fondo Común de Inversión Lombard Acciones Líderes 1,267 80,060 81,327 80,823 Lombard Renta Fija en Dólares F.C.I. 1,897,859 2,627,660 4,525,519 4,516,506 Lombard Ahorro Plus F.C.I. 185 935,984 936,169 936,158 TOTAL 14,533,883 9,003,435 23,537,318 23,296,069

Information as of December 31, 2018 Shareholders’ Name Deposits Other Total assets Equity Lombard Renta en Pesos Fondo Común de Inversión 11,020,675 29,364 11,050,039 11,049,834 Lombard Capital F.C.I. 1,866,639 4,714,049 6,580,688 6,485,506 Fondo Común de Inversión Lombard Renta Fija 1,536 324,906 326,442 325,070 Fondo Común de Inversión Lombard Pesos Plus - - - - Fondo Común de Inversión Lombard Ahorro 7,853 - 7,853 7,853 Fondo Común de Inversión Lombard Abierto Plus 1,316,155 1,852,756 3,168,911 3,168,902 Fondo Común de Inversión Lombard Acciones Líderes 259 71,805 72,064 71,755 Lombard Renta Fija en Dólares F.C.I. 1,268,244 2,176,009 3,444,253 3,373,800 Lombard Ahorro Plus F.C.I. 116,365 777,387 893,752 893,742 TOTAL 15,597,726 9,946,276 25,544,002 25,376,462

(*) 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.

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 08/08/2019 with our report dated 08/08/2019

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

61 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 49 – 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, 2019, 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 the 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 USD 5,000,000.

As of June 30, 2019, the Entity set up a provision in the amount of ARS 33 thousand to bear such sanction.

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. The proceedings were brought to an end on January 15, 2019.

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 08/08/2019 with our report dated 08/08/2019

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

62 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

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. The proceedings were brought to an end on February 19, 2019.

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. The proceedings were brought to an end on April 24, 2019.

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 Entity estimates that the impact on equity from the proceedings referred to above will not be significant.

Through the provisions of Communication “A” 5940 dated April 1, 2016, 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 June 30, 2019, GPAT Compañía Financiera S.A.U. has not received any notice of administrative, disciplinary or criminal sanctions, or 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 08/08/2019 with our report dated 08/08/2019

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

63 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 50 – 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 above mentioned agreement.

Thereafter, the Entity 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.

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.

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.

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 08/08/2019 with our report dated 08/08/2019

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

64 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 51 – 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.

Shareholders’ Minimum cash Role Equity contra-account capital 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 June 30, 2019, the Entity’s capital exceeds CNV's requirements and the minimum cash contra-account required is made up of funds deposited with the BCRA in its current account No. 034.

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

As from the date on which General Resolution No. 792 of the CNV dated April 26, 2019 came into effect, the minimum shareholders’ equity required to act as Management Company increased to the amount of Units of Purchasing Power adjusted by the indexation rate known as “CER” (Law No. 25827) UVA150, which shall be increased by an amount equivalent to UVA 20 per every Mutual Fund managed (equivalent to a minimum shareholders’ equity of 11,789 as of June 30, 2019). The minimum contra-account requirements increase to 50% of the minimum shareholders’ equity. To the date of issuance of these financial statements, the Company meets the minimum requirements set forth by the new regulation..

The cash contra-account requirements are met by the Company as of June 30, 2019, and they are composed as follows:

Breakdown Amount Demand deposit accounts in local and foreign banks 74,711 Mutual Funds 340,101 Argentine Government Securities 6,607 Total 421,419

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 08/08/2019 with our report dated 08/08/2019

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

65 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

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, which are met by the Company, and as of June 30, 2019 they are composed as follows:

Breakdown Amount Demand deposit accounts in local and foreign banks 813 Instruments issued by the BCRA 33,084 Total 33,897

NOTE 52 – TRANSACTIONS WITH DIRECTORS

No transactions falling under the provisions of section 271 of Law No. 19550 have been identified.

NOTE 53 – 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’s 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:

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 08/08/2019 with our report dated 08/08/2019

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

66 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

Banco Patagonia S.A.

Company responsible for the deposit Address

Route 36 - Km. 31.5 - Florencio Varela – Province of AdeA Administradora de Archivos S.A. Buenos Aires

Av. 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.

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 AdeA Administradora de Archivos S.A. Buenos Aires

Patagonia Valores S.A.

Company responsible for the deposit Address

Route 36 - Km. 31.5 - Florencio Varela – Province of AdeA Administradora de Archivos S.A. 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 08/08/2019 with our report dated 08/08/2019

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

67 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

GPAT Compañía Financiera S.A.U.

Company responsible for the deposit Address

Route 36 - Km. 31.5 - Florencio Varela – Province of AdeA Administradora de Archivos S.A. 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. Av. Amancio Alcorta 2482 – City of Buenos Aires

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.

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 08/08/2019 with our report dated 08/08/2019

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

68 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED JUNE 30, 2019 COMPARATIVELY PRESENTED (Amounts stated in thousands of pesos)

NOTE 54 – 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 55 – 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 56 – 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 June 30, 2019.

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 08/08/2019 with our report dated 08/08/2019

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

69 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

EXHIBIT “B” LOANS AND OTHER FINANCING FACILITIES CLASSIFIED BY STATUS AND GUARANTEES RECEIVED AS OF 6/30/2019 AND 12/31/2018 (Amounts stated in thousands of pesos)

COMMERCIAL LOAN PORTFOLIO 6/30/2019 12/31/2018

Performing 53,624,496 54,961,890

- With “A” preferred guarantees and counter-guarantees 2,322,788 2,183,702 - With “B” preferred guarantees and counter-guarantees 4,149,709 3,813,188 - Without preferred guarantees or counter-guarantees 47,151,999 48,965,000

Subject to special monitoring 89,701 358,583

In observation 54,147 89,913

- With “B” preferred guarantees and counter-guarantees 53,490 51,810 - Without preferred guarantees or counter-guarantees 657 38,103

In negotiation or under refinancing agreements 35,554 268,670

- With “B” preferred guarantees and counter-guarantees 24,869 192,791 - Without preferred guarantees or counter-guarantees 10,685 75,879

Troubled 243,930 226,104

- With “B” preferred guarantees and counter-guarantees 240,155 223,823 - Without preferred guarantees or counter-guarantees 3,775 2,281

With high risk of insolvency 1,404 1,643

- With “B” preferred guarantees and counter-guarantees - 758 - Without preferred guarantees or counter-guarantees 1,404 885

Irrecoverable 489,780 139,800

- With “A” preferred guarantees and counter-guarantees 3,629 11,454 - With “B” preferred guarantees and counter-guarantees 230,368 41,479 - Without preferred guarantees or counter-guarantees 255,783 86,867

TOTAL COMMERCIAL LOAN PORTFOLIO 54,449,311 55,688,020

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 08/08/2019 with our report dated 08/08/2019

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

70 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

EXHIBIT “B” LOANS AND OTHER FINANCING FACILITIES CLASSIFIED BY STATUS AND GUARANTEES RECEIVED AS OF 6/30/2019 AND 12/31/2018 (Amounts stated in thousands of pesos)

CONSUMER AND/OR HOME LOAN PORTFOLIO 6/30/2019 12/31/2018

Performing 27,914,541 29,584,190

- With “A” preferred guarantees and counter-guarantees 577,106 607,945 - With “B” preferred guarantees and counter -guarantees 5,118,371 5,383,413 - Without preferred guarantees or counter-guarantees 22,219,064 23,592,832

Low risk 1,175,113 1,168,722

- With “A” preferred guarantees and counter-guarantees 19,335 18,787 - With “B” preferred guarantees and counter-guarantees 257,740 252,496 - Without preferred guarantees or counter-guarantees 898,038 897,439

Medium risk 698,763 616,610

- With “A” preferred guarantees and counter-guarantees 10,786 5,584 - With “B” preferred guarantees and counter-guarantees 35,801 49,498 - Without preferred guarantees or counter-guarantees 652,176 561,528

High risk 902,655 635,794

- With “A” preferred guarantees and counter-guarantees 11,037 3,676 - With “B” preferred guarantees and counter-guarantees 11,390 4,894 - Without preferred guarantees or counter-guarantees 880,228 627,224

Irrecoverable 472,508 291,706

- With “A” preferred guarantees and counter-guarantees 3,167 1,941 - With “B” preferred guarantees and counter-guarantees 978 5,314 - Without preferred guarantees or counter-guarantees 468,363 284,451

Irrecoverable according to BCRA regulations 127 210

- With “B” preferred guarantees and counter-guarantees 109 165 - Without preferred guarantees or counter-guarantees 18 45

TOTAL CONSUMER AND/OR HOME LOAN PORTFOLIO 31,163,707 32,297,232

TOTAL GENERAL 85,613,018 87,985,252

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 08/08/2019 with our report dated 08/08/2019

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

71 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

EXHIBIT “B” LOANS AND OTHER FINANCING FACILITIES CLASSIFIED BY STATUS AND GUARANTEES RECEIVED AS OF 6/30/2019 AND 12/31/2018 (Stated in thousands of pesos)

RECONCILIATION OF LOANS AND OTHER FINANCING FACILITIES AS PER CONSOLIDATED STATEMENT OF FINANCIAL POSITION

BREAKDOWN 6/30/2019 12/31/2018

BALANCE AS PER EXHIBIT “B” 85,613,018 87,985,252 Items included in Exhibit “B” and not included in Loans and other (1,057,194) (1,278,989) financing facilities Off-balance sheet items– agreed-upon loans (unused balances), other (965,872) (1,204,628) guarantees granted and other covered by Debtor Classification Standards

Other items (91,322) (74,361)

Items not included in Exhibit “B” and included in Loans and other (5,244,433) (4,156,959) financing facilities

Loans and other financing facilities- loans to personnel 295,218 313,845

Loans and other financing facilities–IFRS adjustment at effective interest (550,488) (604,445) rate

Loans and other financing facilities– Allowances for loan losses (4,989,163) (3,866,359)

BALANCE AS PER STATEMENT OF FINANCIAL POSITION 79,311,391 82,549,304

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 08/08/2019 with our report dated 08/08/2019

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

72 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

EXHIBIT C LOANS AND OTHER FINANCING FACILITIES CONCENTRATION AS OF 6/30/2019 AND 12/31/2018 (Amounts stated in thousands of pesos)

FINANCING FACILITIES

Number of customers 6/30/2019 12/31/2018 Outstanding % of total Outstanding % of total amount portfolio amount portfolio

10 largest customers 13,616,249 15.9% 12,922,426 14.7%

50 next largest customers 22,823,633 26.7% 19,792,298 22.5%

100 next largest customers 8,298,597 9.7% 10,542,866 11.9%

Rest of customers 40,874,539 47.7% 44,727,662 50.9%

TOTAL 85,613,018 100.0% 87,985,252 100.0%

RECONCILIATION OF LOANS AND OTHER FINANCING FACILITIES AS PER CONSOLIDATED STATEMENT OF FINANCIAL POSITION

BREAKDOWN 6/30/2019 12/31/2018

BALANCE AS PER EXHIBIT “C” 85,613,018 87,985,252 Items included in Exhibit “C” and not included in Loans and other (1,057,194) (1,278,989) financing facilities Off-balance sheet items– agreed-upon loans (unused balances), other (965,872) (1,204,628) guarantees granted and other covered by Debtor Classification Standards

Other items (91,322) (74,361)

Items not included in Exhibit “C” and included in Loans and other (5,244,433) (4,156,959) financing facilities

Loans and other financing facilities- loans to personnel 295,218 313,845

Loans and other financing facilities–IFRS adjustment at effective interest (550,488) (604,445) rate

Loans and other financing facilities– Allowances for loan losses (4,989,163) (3,866,359)

BALANCE AS PER STATEMENT OF FINANCIAL POSITION 79,311,391 82,549,304

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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

EXHIBIT D LOANS AND OTHER FINANCING FACILITIES BROKEN DOWN BY TERM AS OF 6/30/2019 (Amounts stated in thousands of pesos)

Nonfinancial private sector 3,198,436 31,990,179 13,477,320 11,047,540 11,367,248 10,519,488 12,670,087 94,270,298 and foreign residents

TOTAL 3,198,436 33,347,489 14,109,852 11,745,894 12,125,125 11,093,947 12,760,948 98,381,691

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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

EXHIBIT H DEPOSITS CONCENTRATION AS OF 6/30/2019 AND 12/31/2018 (Amounts stated in thousands of pesos)

6/30/2019 12/31/2018 Number of customers Outstanding % of total Outstanding % of total amount portfolio amount portfolio

10 largest customers 14,593,090 11.9% 10,839,861 9.9%

50 next largest customers 14,311,000 11.7% 13,632,718 12.5%

100 next largest customers 8,745,629 7.1% 8,585,965 7.9%

Rest of customers 84,931,205 69.3% 76,058,495 69.7%

TOTAL 122,580,924 100.0% 109,117,039 100.0%

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 08/08/2019 with our report dated 08/08/2019

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

75 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

EXHIBIT I FINANCIAL LIABILITIES BROKEN DOWN BY TERMS REMAINING TO MATURITY AS OF 6/30/2019 (Amounts stated in thousands of pesos)

Terms remaining to maturity Item over 24 Total as of 1 month 3 months 6 months 12 months 24 months months 6/30/2019 Deposits 112,269,267 9,275,505 2,378,887 228,955 2,113 735 124,155,462 Non-financial government sector 10,718,555 966,407 61,006 - - - 11,745,968 Financial sector 69,448 - - - - - 69,448 Nonfinancial private sector and 101,481,264 8,309,098 2,317,881 228,955 2,113 735 112,340,046 foreign residents Liabilities measured at fair value 34,353 - - - - - 34,353 with changes through profit or loss Derivative instruments 96,399 - - - - - 96,399 Repo transactions 1,615,832 - - - - - 1,615,832 Other financial institutions 1,615,832 - - - - - 1,615,832 Other financial liabilities 8,296,350 - - - - - 8,296,350 Financing facilities received from the BCRA and other financial 2,439,071 1,432,102 4,585,740 3,077,475 769,171 2,646,881 14,950,440 institutions Corporate bonds issued 20,813 37,162 720,105 958,658 243,610 - 1,980,348

TOTAL 124,772,085 10,744,769 7,684,732 4,265,088 1,014,894 2,647,616 151,129,184

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 08/08/2019 with our report dated 08/08/2019

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

76 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

EXHIBIT J CHANGES IN ALLOWANCES AND PROVISIONS AS OF 6/30/2019 (Amounts stated in thousands of pesos)

Balances at Decreases Balance as of Item beginning of Increases 6/30/2019 year Reversals Uses

INCLUDED IN LIABILITIES Contingent commitments 1,366 - - 1,366 - For administrative, disciplinary and 33 - - - 33 criminal sanctions Other 400,674 42,339 8,855 56,071 378,087

Labor lawsuits 43,913 9,749 620 2,044 50,998

Complaints, proceedings, appeals 222,241 11,232 8,235 6,695 218,543

Tax lawsuits 134,520 21,358 - 47,332 108,546

TOTAL ALLOWANCES AND 402,073 42,339 8,855 57,437 378,120 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 08/08/2019 with our report dated 08/08/2019

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

77 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

EXHIBIT R LOSS IMPAIRMENT ADJUSTMENT - ALLOWANCE FOR LOAN LOSSES AS OF 6/30/2019 (Amounts stated in thousands of pesos)

Decreases Balances at Balances as Item Increases (*) beginning of of 6/30/2019 period Reversals Uses

Other financial assets 18,474 675,519 - 3,386 690,607 Loans and other financing 3,866,359 1,587,636 24,774 440,058 4,989,163 facilities Other financial institutions 30,575 31,087 - 21,766 39,896 Nonfinancial private sector and 3,835,784 1,556,549 24,774 418,292 4,949,267 foreign residents Overdrafts 241,350 158,690 1,025 75,799 323,216

Notes 445,213 312,098 - 57,788 699,523

Mortgage loans 13,355 3,492 - 115 16,732

Car loans 129,365 1,196 20,487 13,228 96,846

Consumer 646,347 397,115 - 131,759 911,703

Credit cards 225,792 57,189 - 86,132 196,849

Finance lease 20,179 17,700 - 5,258 32,621

Other 2,114,183 609,069 3,262 48,213 2,671,777

TOTAL ALLOWANCES AND 3,884,833 2,263,155 24,774 443,444 5,679,770 PROVISIONS

(*) It includes increases from quotation gains/losses.

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 08/08/2019 with our report dated 08/08/2019

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

78 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS AS OFJUNE 30, 2019

CONTENTS Page

Condensed interim separate statements of financial position ...... 79 Condensed interim separate statements of income ...... 81 Condensed interim separate statements of income Earnings per share ...... 82 Condensed interim separate statements of other comprehensive income ...... 83 Condensed interim separate statements of changes in shareholders’ equity ...... 84 Condensed interim separate statements of cash flows ...... 86 Notes to the condensed interim separate financial statements ...... 88 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 – Derivative instruments Note 6 – Repo transactions Note 7 – Other financial assets Note 8– Loans and other financing facilities Note 9 – Financial assets granted as collaterals Note 10– Income tax Note 11– investment in subsidiaries, associates and joint ventures Note 12– Property, plant and equipment Note 13 – Intangible assets Note 14 – Other non financial assets Note 15– Non-current assets held for sale

Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS AS OFJUNE 30, 2019

CONTENTS Page

Note 16 – Deposits Note 17 – Other financial liabilities Note 18 – Financing facilities received from the BCRA and other financial institutions Note 19 – Corporate bonds issued Note 20 – Other non financial liabilities Note 21 – Allowances and provisions Note 22 – Interest income Note 23 – Interest expense Note 24 – Fee income Note 25 – Fee expenses Note 26 – Net gain/loss on financial instruments measured at fair value with changes through profit or loss Note 27 – Other operating income Note 28 – Employee benefits Note 29 – Administrative expenses Note 30 – Other operating expenses Note 31 – Fair value of financial instruments Note 32 – Restricted assets Note 33 – Minimum cash and capital requirements Note 34 – Transactions with Companies included in section 33, Companies Law No. 19550 Note 35 – Compliance with provisions set forth by Law No. 25738 Note 36 – CNV requirements to act as an Over-the-counter Broker Note 37 – Publication of the financial statements Note 38 – Subsequent events

Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS AS OFJUNE 30, 2019

CONTENTS Page

Exhibit A – Breakdown of government and corporate securities ...... 112 Exhibit B – Loans and other financing facilities classified by status and guarantees received ...... 115 Exhibit C – Loans and other financing facilities concentration...... 118 Exhibit D – Loans and other financing facilities broken down by term...... 119 Exhibit H – Deposits concentration ...... 120 Exhibit I – Financial liabilities broken down by terms remaining to maturity ……………….. 121 Exhibit J – Changes in allowances and provisions ...... 122 Exhibit L – Balances in foreign currency ...... 123 Exhibit O – Derivative financial instruments ...... 124 Exhibit R – Loss impairment adjustment – Allowances for loan losses ...... 125

Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

CONDENSED INTERIM SEPARATE STATEMENTS OF FINANCIAL POSITION AS OF 6/30/2019 AND 12/31/2018 (Stated in thousands of pesos)

ITEMS NOTES 6/30/2019 12/31/2018

ASSETS Cash and bank deposits 4 35,556,584 34,377,288 Cash on hand 3,704,430 4,749,594 Financial institutions and correspondents 31,852,154 29,627,694 BCRA 30,781,061 29,124,719 Other in Argentina and abroad 1,071,093 502,975 Debt securities measured at fair value with change through profit or loss (Exhibit A) 194,088 186,641 Derivative instruments 5 526,339 154,379 Repo transactions 6 1,246,249 663,435 Other financial assets 7 2,151,514 2,836,300 Loans and other financing facilities (Exhibits B, C and D) 8 76,054,244 79,592,194 Non-financial government sector 279,337 221,825 Other financial institutions 4,548,111 5,316,621 Nonfinancial private sector and foreign residents 71,226,796 74,053,748 Other debt securities (Exhibit A) 46,701,443 23,069,847 Financial assets granted as collaterals 9 2,905,232 2,778,770 Investments in equity instruments (Exhibit A) 841,040 4,513 Investments in subsidiaries, associates and joint ventures 11 1,677,545 1,572,647 Property and equipment 12 5,749,292 5,473,624 Intangible assets 13 148,634 62,630 Other non financial assets 14 351,684 346,999 Non-current assets held for sale 15 - 234,831

TOTAL ASSETS 174,103,888 151,354,098

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 08/08/2019 with our report dated 08/08/2019

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 79

Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

CONDENSED INTERIM SEPARATE STATEMENTS OF FINANCIAL POSITION AS OF 6/30/2019 AND 12/31/2018 (Stated in thousands of pesos)

ITEM NOTES 6/30/2019 12/31/2018

LIABILITIES Deposits (Exhibits H and I) 16 121,421,531 108,183,827 Nonfinancial government sector 11,551,651 11,995,436 Financial sector 69,448 54,499 Nonfinancial private sector and foreign residents 109,800,432 96,133,892 Liabilities measured at fair value with changes through profit or loss (EXHIBIT I) 34,353 - Derivative instruments (Exhibit I) 5 96,399 78,312 Repo transactions (Exhibit I) 6 1,615,832 916,010 Other financial liabilities (Exhibit I) 17 7,929,425 8,945,619 Financing facilities received from the BCRA and other financial institutions (Exhibit I) 18 13,733,973 9,358,048 Current income tax liabilities 10 a) 2,842,800 1,714,871 Allowances and provisions (Exhibit J) 21 374,672 399,065 Deferred income tax liabilities 43,609 184,956 Other nonfinancial liabilities 20 3,372,732 3,280,170

TOTAL LIABILITIES 151,465,326 133,060,878

SHAREHOLDERS’ EQUITY Share capital 719,145 719,145 Non-capitalized contributions 217,191 217,191 Retained earnings 10,946,765 8,442,024 Unappropriated retained earnings - (170,594) Other comprehensive income 3,719,882 3,734,784 Income for the period 7,035,579 5,350,670

TOTAL SHAREHOLDERS’ EQUITY 22,638,562 18,293,220

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 174,103,888 151,354,098

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 08/08/2019 with our report dated 08/08/2019

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 80

Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

CONDENSED INTERIM SEPARATE STATEMENTS OF INCOME AS OF 6/30/2019 AND 6/30/2018 (Stated in thousands of pesos)

THREE-MONTH PERIOD SIX-MONTH PERIOD ENDED ITEMS NOTES ENDED 6/30/2019 6/30/2018 6/30/2019 6/30/2018

Interest income 22 13,838,579 4,527,792 23,895,725 8,274,538 Interest expense 23 (6,422,901) (1,793,020) (11,029,353) (3,076,640) Interest income/loss 7,415,678 2,734,772 12,866,372 5,197,898

Fee income 24 1,531,992 1,179,747 2,975,686 2,253,618 Fee expenses 25 ( 839,891) (468,960) (818,660) (580,507) Fee income/loss 692,101 710,787 2,157,026 1,673,111

Net gain on financial instruments measured at fair 26 696,657 63,689 753,380 310,094 value through profit or loss Gold and foreign currency quoted price difference 523,317 378,345 964,326 384,822 Other operating income 27 450,100 295,263 2,221,568 483,914 Charge for loan losses (531,412) (531,696) (2,184,717) (707,302) Net operating income 9,246,441 3,651,160 16,777,955 7,342,537

Benefits to personnel 28 ( 1,621,862) (1,115,799) (3,089,888) (2,160,511) Administrative expenses 29 ( 979,601) (748,742) (1,895,436) (1,351,680) Assets depreciation and impairment of value (113,679) (47,470) (228,045) (95,228) Other operating expenses 30 ( 308,383) (344,724) (1,601,822) (975,003) Operating income 6,222,916 1,394,425 9,962,764 2,760,115

Gain/loss on associates and joint ventures 456,277 235,555 526,268 313,663 Income before tax relating to continuing 6,679,193 1,629,980 10,489,032 3,073,778 operations Income tax relating to continuing operations 10 b) (2,260,624) (482,618) (3,453,453) (936,138) Net income from continuing operations 4,418,569 1,147,362 7,035,579 2,137,640

INCOME FOR THE PERIOD 4,418,569 1,147,362 7,035,579 2,137,640

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 08/08/2019 with our report dated 08/08/2019

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 81

Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

CONDENSED INTERIM SEPARATE STATEMENTS OF INCOME AS OF 6/30/2019 AND 6/30/2018 (Stated in thousands of pesos)

THREE-MONTH PERIOD SIX-MONTH PERIOD ENDED EARNINGS PER SHARE ENDED 6/30/2019 6/30/2018 6/30/2019 6/30/2018

NUMERATOR Net income attributable to the shareholders of the parent 4,418,569 1,147,362 7,035,579 2,137,640 company PLUS: Diluted common shares Net income attributable to the shareholders of the parent 4,418,569 1,147,362 7,035,579 2,137,640 company adjusted to reflect dilution

Earnings per basic share 6.144 1.595 9.783 2.972

Earnings per diluted share 6.144 1.595 9.783 2.972

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 08/08/2019 with our report dated 08/08/2019

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 82

Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

CONDENSED INTERIM SEPARATE STATEMENTS OF OTHER COMPREHENSIVE INCOME AS OF 6/30/2019 AND 6/30/2018 (Stated in thousands of pesos)

THREE-MONTH PERIOD ENDED SIX-MONTH PERIOD ENDED ITEM 6/30/2019 6/30/2018 6/30/2019 6/30/2018 INCOME FOR THE PERIOD 4,418,569 1,147,362 7,035,579 2,137,640

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

Exchange differences on translation of financial (7,001) 73,870 37,364 86,272 statements Exchange differences for the period (9,334) 98,493 49,819 115,029 Income tax 2,333 ( 24,623) (12,455) (28,757)

Gains or losses on financial instruments carried at fair (109,156) 3,956 ( 39,983) (24,259) value through OCI (paragraph 4.1.2 of IFRS 9) Gains on financial instruments carried at fair value (155,938) 5,651 ( 57,119) (34,656) through OCI Income tax 46,782 ( 1,695) 17,136 10,397

Equity in other comprehensive income of associates and joint ventures recognized by using the equity (16,643) (19,994) (12,283) (27,954) method

Income for the period arising from the equity in other comprehensive income of associates and joint ventures (16,643) (19,994) (12,283) (27,954) recognized by using the equity method

TOTAL OTHER COMPREHENSIVE INCOME THAT WILL (132,800) 57,832 ( 14,902) 34,059 BE RECLASSIFIED TO INCOME FOR THE PERIOD

TOTAL OTHER COMPREHENSIVE INCOME (132,800) 57,832 ( 14,902) 34,059

TOTAL COMPREHENSIVE INCOME 4,285,769 1,205,194 7,020,677 2,171,699

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 08/08/2019 with our report dated 08/08/2019

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 83

Translation from the original prepared in Spanish for publication in Argentina BANCO PATAGONIA S.A.

CONDENSED INTERIM SEPARATE STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY AS OF 6/30/2019 (Stated in thousands of pesos)

Non - Capital stock capitalized Other comprehensive income Retained earnings (1) contributions Accumulated gains/losses Total equity Total Exchange Unappropriat from Attributable to shareholders Changes differences Revaluation ed retained Additional financial controlling ’ equity as of on of property, earnings Outstanding paid-in instruments Other Legal Other interests 6/30/2019 translation of plant and capital carried at fair financial equipment value with statements changes through OCI Balances at beginning of 719,145 217,191 180,067 3,636,023 (51,017) (30,289) 3,252,830 5,189,194 5,180,076 18,293,220 18,293,220 the year

Distribution of unappropriated retained earnings Approved by the Annual Shareholders’ Meeting on 4/25/2019 (2) -Legal reserve ------1,070,134 - (1,070,134) - - - Optional reserve – Future distribution of ------1,605,201 (1,605,201) - - earnings - Adjustment due to IFRS first-time adoption------(170,594) 170,594 - - absorption of losses - Cash dividends (3) ------(2,675,335) (2,675,335) (2,675,335)

Income for the period ------7,035,579 7,035,579 7,035,579

Other comprehensive income for the period - - 37,364 - (39,983) (12,283) - - - (14,902) (14,902) Balances at period-end 719,145 217,191 217,431 3,636,023 (91,000) (42,572) 4,322,964 6,623,801 7,035,579 22,638,562 22,638,562

(1) See note 28 to these condensed interim consolidated financial statements. (2) See note 28 to these condensed interim consolidated financial statements. (3) It corresponds to $3.7202 per share.

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 08/08/2019 with our report dated 08/08/2019

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 84

Translation from the original prepared in Spanish for publication in Argentina BANCO PATAGONIA S.A.

CONDENSED INTERIM SEPARATE STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY AS OF 6/30/2018 (Stated in thousands of pesos)

Non - Capital capitalized Other comprehensive income Retained earnings stock (1) contributions Accumulated gains/losses Total equity Total Unappropriated Exchange from Attributable to shareholders’ Changes Revaluation retained Additional differences on financial controlling equity as of of property, earnings Outstanding paid-in translation of instruments Other Legal Other interests 6/30/2018 plant and capital financial carried at fair equipment statements value with 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 Approved by the Annual Shareholders’ Meeting held on 04/25/2018 - Legal reserve ------711,042 - (711,042) - - - Optional reserve – Future distribution of ------1,066,563 (1,066,563) - - earnings - Cash dividends (2) ------(1,777,606) (1,777,606) (1,777,606)

Income for the period ------2,137,640 2,137,640 2,137,640

Other comprehensive income for the period - - 86,272 - (24,259) (27,954) - - - 34,059 34,059 Balances at period-end 719,145 217,191 113,303 1,383,087 13,385 2,194 3,252,830 5,189,194 1,967,046 12,857,375 12,857,375

(1) See note 28 to these condensed interim consolidated financial statements. (2) It corresponds to $2.4718 per share. 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 08/08/2019 with our report dated 08/08/2019

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

85 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

CONDENSED INTERIM SEPARATE STATEMENTS OF CASH FLOWS FOR THE SIX-MONTH PERIOD ENDED 6/30/2019 AND 6/30/2018 (Stated in thousands of pesos)

ITEM 6/30/2019 6/30/2018 Cash flows from operating activities Income for the period before income tax 10,489,032 3,073,778

Adjustments to obtain cash flows from operating 1,166,083 ( 1,278,077) activities: Assets depreciation and impairment of value 228,045 95,228 Charge for loan losses 2,184,717 707,302 Other adjustments ( 1,246,679) (2,080,607) Net decreases (increases) from operating assets: ( 19,697,192) (10,134,118) Debt securities measured at fair value with changes (3,852) (62,287) through profit or loss Derivative instruments (371,960) 27,567 Repo transactions ( 582,814) 813,131 Loans and other financing facilities 4,702,467 ( 4,424,577) Non-financial government sector 13,891 ( 23,997) Other financial institutions 297,329 ( 171,135) Nonfinancial private sector and foreign residents 4,391,247 ( 4,229,445) Other debt securities ( 23,392,597) (4,347,129) Financial assets granted as collaterals ( 126,462) (1,067,319) Investments in equity instruments ( 836,527) (3,147) Other assets 914,553 ( 1,070,357) Net increases / (decreases) from operating liabilities: 12,004,014 13,366,567 Deposits 9,509,322 9,583,338 Non-financial government sector 1,048,989 1,119,338 Financial sector 7,595 12,584 Nonfinancial private sector and foreign residents 8,452,738 8,451,416 Liabilities measured at fair value with changes through 34,353 ( 102,626) profit or loss Derivative instruments 18,087 259,668 Repo transactions 699,822 ( 562,297) Financing facilities received from the BCRA and other 3,267,695 2,372,715 financial institutions Other liabilities (1,525,265) 1,815,769 Income tax payments (1,571,121) (1,198,306)

TOTAL OPERATING ACTIVITIES (A) 2,390,816 3,829,844

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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

CONDENSED INTERIM SEPARATE STATEMENTS OF CASH FLOWS FOR THE SIX-MONTH PERIOD ENDED 6/30/2019 AND 6/30/2018 (Stated in thousands of pesos)

ITEM 6/30/2019 6/30/2018

Cash flows from investing activities

Payments: Purchase of property, plant and equipment, intangible assets and other assets (247,020) (201,401)

Collections: Sale of property, plant and equipment, intangible assets and other assets 49,358 280,836

TOTAL INVESTING ACTIVITIES (B) (197,662) 79,435

Cash flows from financing activities

Payments: Dividends (2,675,335) (1,777,606) Financing facilities from local financial institutions (265,608) (83,602) Operating leases (117,866) -

TOTAL FINANCING ACTIVITIES (C) (3,058,809) (1,861,208)

EFFECTS OF EXCHANGE RATE CHANGES (D) 2,044,951 2,964,097

TOTAL CHANGES IN CASH FLOWS 6/30/2019 6/30/2018

NET INCREASE IN CASH AND CASH EQUIVALENTS 1,179,296 5,012,168 (A + B + C + D)

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 34,377,288 14,134,281

CASH AND CASH EQUIVALENTS AT PERIOD-END 35,556,584 19,146,449

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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED 6/30/2019, COMPARATIVELY PRESENTED (Stated in thousands of pesos)

NOTE 1 – REASON FOR THE PREPARATION OF SEPARATE FINANCIAL STATEMENTS

As indicated in Note 2 to the condensed interim consolidated financial statements, Banco Patagonia S.A. (the “Bank”) prepares its consolidated financial statements under IFRS, as adapted by the BCRA.

These financial statements are presented as supplementary to the referred consolidated financial statements of the Bank , in order to meet the legal and regulatory requirements.

NOTE 2 – BASIS FOR THE PREPARATION OF THE FINANCIAL STATEMENTS

These condensed interim separate financial statements for the six-month period ended June 30, 2019 have been prepared in accordance with the regulations of the Argentine Central Bank (BCRA) (hereinafter, Accounting framework established by the 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), except for the following exceptions to be implemented as from January 1, 2020:

a) Application of the impairment model of section 5.5. “Impairment of Value” of IFRS 9 “Financial Instruments”, applicable to “Allowance for loan losses”. On December 14, 2018, the Entity filed with the BCRA the impairment model to be applied under IFRS 9 as from January 1, 2020. As of June 30, 2019, such allowance for loan losses amounts to 3,598,962.

b) Application of International Accounting Standard 29 (IAS 29) “Financial Reporting in Hyperinflationary Economies” as provided for by BCRA Communication “A” 6651.

c) As to the valuation of Prisma Medios de Pago S.A., these condensed interim separate financial statements for the six-month period ended June 30, 2019 have considered the outlines set by the BCRA, regarding the accounting treatment given to the remaining investment being held by the Entity in such company, which was registered in line “Investments in equity instruments” as of June 30, 2019.

The exceptions described imply departure from the IFRS.

Management estimates that both the Entity’s equity and income may differ significantly, should the related standards be 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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED 6/30/2019, COMPARATIVELY PRESENTED (Stated in thousands of pesos)

The existence of an inflationary context affects the Entity’s financial position and results of its operations and, therefore, the inflation impact may distort the financial information, which should be considered in the interpretation of the information provided by the Entity in these financial statements in respect of its financial position, comprehensive income and cash flows.

Additionally, BCRA Communications “A” 6323 and “A” 6324 set forth the guidelines for the preparation and presentation of the financial institutions’ financial statements, including the additional information requirements, as well as the information to be disclosed in the Exhibits..

In order to avoid duplicating information already provided, please, refer to the condensed interim consolidated financial statements in connection with the following aspects: • Functional and presentation currency (Note 3 to the consolidated financial statements) • Accounting estimates (Note 4 to the consolidated financial statements) • Share capital (Note 28 to the consolidated financial statements) • Transfer of financial assets (Note 39 to the consolidated financial statements) • Segment reporting (Note 40 to the consolidated financial statements) • Subsidiaries (Note 41 to the consolidated financial statements) • Related parties (Note 42 to the consolidated financial statements) • Distribution of earnings and restrictions (Note 43 to the consolidated financial statements) • Deposit Guarantee Insurance System (Note 45 to the consolidated financial statements) • Trust activity (Note 47 to the consolidated financial statements) • Custodian agent of mutual funds (Note 48 to the consolidated financial statements) • Sanctions imposed and proceedings filed by the BCRA (Note 49 to the consolidated financial statements) • Transactions with directors (Note 52 to the consolidated financial statements) • CNV requirement– Custody of the Entity’s Documentation (Note 53 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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED 6/30/2019, COMPARATIVELY PRESENTED (Stated in thousands of pesos)

NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES

The Bank has consistently applied the accounting policies described in the separate financial statements as of December 31, 2018, except for the new IFRS applied as from January 1, 2019, as explained in Note 5 to the condensed interim consolidated financial statements.

NOTE 4 – CASH AND BANK DEPOSITS

Cash and bank deposits computed for the purposes of preparing the statement of cash flows include the following items.

6/30/2019 12/31/2018 Cash on hand 3,704,430 4,749,594 BCRA - Current account 30,781,061 29,124,719 Balances with financial institutions in Argentina and abroad 1,071,093 502,975 Total 35,556,584 34,377,288

NOTE 5 – DERIVATIVE FINANCIAL INSTRUMENTS

In the ordinary course of business, the Entity 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.

6/30/2019 12/31/2018 Effective securities Assets Forward foreign currency 526,339 148,988 Interest rate swaps - 5,391

Total 526,339 154,379

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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED 6/30/2019, COMPARATIVELY PRESENTED (Stated in thousands of pesos)

6/30/2019 12/31/2018 Effective securities

Liabilities Forward foreign currency transactions 19,285 57,990 Forward foreign currency 77,114 16,341 Interest rate swaps - 3,981

Total 96,399 78,312

Notional securities 6/30/2019 12/31/2018

Assets Forward foreign currency transactions 67,936 73,999 Forward foreign currency 33,200 2,243 Interest rate swaps - 500,000

Total 101,136 576,242

Liabilities Forward foreign currency transactions 10,795 2,000 Forward foreign currency 89,985 64,542

Total 100,780 66,542

NOTE 6 – REPO TRANSACTIONS

The repo transactions of the Entity are included in Note 10 to the consolidated financial statements, as it is the only Entity of the Group that performs these transactions.

NOTE 7 – OTHER FINANCIAL ASSETS

Breakdown is as follows: 6/30/2019 12/31/2018 Measured at amortized cost Sundry debtors Prisma Medios de Pago S.A. (Prisma) (Note 15) 580,510 - Receivables from spot sales of forei gn currency and government securities 1,143,688 1,980,578 to be settled Receivables from spot sales of government securities to be settled 639,545 286,222 Sundry receivables 478,378 587,883 2,842,121 2,854,683 Less: Allowance for loan losses (690,607) (18,383) (Exhibit R) Total 2,151,514 2,836,300

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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED 6/30/2019, COMPARATIVELY PRESENTED (Stated in thousands of pesos)

NOTE 8 – 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.

Loans and other financing facilities classified on the basis of their measurement are as follows:

6/30/2019 12/31/2018 Measured at amortized cost 80,919,190 83,281,727 Less: Allowance for loan losses (Exhibit R) ( 4,864,946) (3,689,533) Total 76,054,24 4 79,592,194 Breakdown is as follows: 6/30/2019 12/31/2018 Overdrafts 9,162,826 11,146,936 Notes 30,993,430 29,902,692 Mortgage loans 1,096,492 950,139 Consumer 9,724,953 9,829,349 Credit cards 12,243,603 12,766,498 Finance lease 762,233 998,913 Interest and similar items payable 1,795,737 1,845,142 Other 15,139,916 15,842,058 Subtotal 80,919,190 83,281,727 Less: Allowance for loan losses (Exhibit R) ( 4,864,946) (3,689,533) Total 76,054,2 44 79,592,194

Information about loans 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

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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED 6/30/2019, COMPARATIVELY PRESENTED (Stated in thousands of pesos)

NOTE 9 – FINANCIAL ASSETS GRANTED AS COLLATERAL

Financial assets granted as collaterals as of June 30, 2019 and December 31, 2018 are broken down as follows:

Government securities – IADB loan – Global Credit Program for 227,884 270,507 micro-, small- and medium-sized enterprises - Treasury bills in USD, maturity 8/16/2019 227,884 - - Other - 270,507 Other security deposits 14,640 14,588 Total 2,905,232 2,778,770

NOTE 10 – INCOME TAX a) Current income tax assets and liabilities:

Breakdown is as follows: 6/30/2019 12/31/2018 Current income tax liabilities Tax provision 3,590,120 3,178,657 Tax advances (744,961) (1,458,565) Tax withholding ( 2,359) (5,221) 2,842,800 1,714,871

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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED 6/30/2019, COMPARATIVELY PRESENTED (Stated in thousands of pesos) b) Income tax expense:

The Bank's effective rate for the six-month periods ended June 30, 2019 and 2018 was 32.9% and 29.3%, respectively.

Income tax expense is broken down as follows:

6/30/2019 6/30/2018 Current tax 3,590,120 1,260,967 Deferred tax ( 136,667) (324,829) Income tax expense 3,453,453 936,138

NOTE 11 – INVESTMENT IN SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES

Investments in subsidiaries, associates and joint ventures as of June 30, 2019, and December 31, 2018 is broken down as follows: 6/30/2019 12/31/2018

GPAT Compañía Financiera S.A.U. 704,126 740,473 Banco Patagonia (Uruguay) S.A. I.F.E. 425,873 382,529 Patagonia Inversora Sociedad Gerente de FCI 371,675 265,100 Interbanking S.A. 102,190 122,101 Patagonia Valores S.A. 41,242 37,692 Mercado Abierto Electrónico S.A. 27,013 20,939 Compensadora Electrónica S.A. 3,918 2,482 Provincanje S.A. 1,508 1,331 Total 1,677,545 1,572,647

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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED 6/30/2019, COMPARATIVELY PRESENTED (Stated in thousands of pesos)

Note 12 – Property, plant and equipment

The table below shows a summary of changes in property, plant and equipment.

Rights of Remaining Buildings use assets Total Residual value as of January 1, 2019 5,098,714 - 374,910 5,473,624 Additions 1,557 342,788 139,477 483,822 Retirements - (41) (50) (91) Depreciation expense (36,555) (89,718) (81,790) (208,063) Residual value as of June 30, 2019 5,063,716 253,029 432,547 5,749,292

NOTE 13 – INTANGIBLE ASSETS

The table below shows a summary of changes in intangible assets.

Total Residual value as of January 1, 2019 62,630 Additions 105,986 Retirements - Depreciation expense (19,982) Residual value as of June 30, 2019 148,634

NOTE 14 – OTHER NON FINANCIAL ASSETS

6/30/2019 12/31/2018 Advance payments 232,080 238,739 Assets acqui red as security for loans 58,459 58,459 Investment property 25,710 25,710 Other miscellaneous assets 11,744 8,869 Works of art 3,691 3,691 Other 20,000 11,531 Total 351,684 346,999

Additionally, for the valuation thereof, the criteria informed in Note 18 to the condensed interim consolidated financial statements have been 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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED 6/30/2019, COMPARATIVELY PRESENTED (Stated in thousands of pesos)

NOTE 15 – NON CURRENTASSETS HELD FOR SALE

Breakdown is as follows:

Investment in associates:

As of June 30, 2019, the Entity records no Investment in associates held for sale.

As of December 31, 2018, the Entity had registered as held for sale their shareholdings in Prisma Medios de Pago S.A. in the amount of 212,791.

To the date of issuance of these financial statements, the Entity is the holder of 1,108,462 shares of Prisma Medios de Pago S.A., which account for 2,6822% of its capital stock. The remaining shareholding was reclassified in line “investments in equity instruments” and was measured at fair value, based on a valuation report on the Company performed by independent professionals, to which the valuation adjustment set by the BCRA was deducted.

Land and buildings:

As of June 30, 2019, the Entity records no items of real property held for sale.

As of December 31, 2018, the Entity held a piece of property located in Vicente López, province of Buenos Aires, in the amount of 22,040, which was sold in January 2019.

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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED 6/30/2019, COMPARATIVELY PRESENTED (Stated in thousands of pesos)

NOTE 16 - DEPOSITS

Information about deposits is disclosed in Exhibit H– Deposits concentration to these separate financial statements, and the breakdown of deposits related to the non-financial private sector is as follows:

6/30/2019 12/31/2018 Checking accounts 11,131,509 10,149,481 Savings accounts 46,358,994 44,273,495 Time deposit and investments 46,944,781 37,935,565 Investment accounts 755 805 Other 3,938,949 2,468,971 Interest and adjustment 1,425,444 1,305,575 Total 109,800,432 96,133,892

NOTE 17 – OTHER FINANCIAL LIABILITIES

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

6/30/2019 12/31/2018

Credit and debit card charges payable 3,534,703 4,672,778 Collections on account and on behalf of third parties 1,426,206 1,053,168 Payables from spot purchase of foreign currency to be settled 1,282,413 1,947,127 Payables from spot purchase of government securities to be settled 609,852 416,912 Payables from foreign trade transactions 198,457 359,039 Sundry payables 877,794 496,595 Total 7,929,425 8,945,619

NOTE 18 – 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:

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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED 6/30/2019, COMPARATIVELY PRESENTED (Stated in thousands of pesos)

NOTE 19 – CORPORATE BONDS ISSUED

The Entity’s Corporate bonds program in force is described in Note 25 to the condensed interim consolidated financial statements and to date, no corporate bonds series have been issued under the referred Program.

NOTE 20 – OTHER NON FINANCIAL LIABILITIES

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

6/30/2019 12/31/2018 Other short term employees’ benefits payable 703,986 758,577 Other withholdings and collections 613,736 632,620 Other taxes payable 506,942 566,176 Advances collected 458,282 418,670 Payroll and social security contributions payable 313,230 214,743 Social security payment orders to be settled 310,463 116,552 Payroll withholdings payable 98,520 63,777 Prepayments received for sale of assets 3,809 28,274 Other non-financial liabilities 363,764 480,781 Total 3,372,732 3,280,170

NOTE 21 - 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 Entity. Changes in allowances and provisions for the six-month period ended June 30, 2019 are disclosed in Exhibit “J” Changes in allowances and provisions” to these separate financial statements.

Due to the nature of its business, the Entity 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 Entity’s Management and its legal counsel, no provision has been set up for all other legal actions against the Entity because they will not result in additional liabilities to those already recorded or will not have a material impact on the Entity's financial statements.

The Entity’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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED 6/30/2019, COMPARATIVELY PRESENTED (Stated in thousands of pesos)

NOTE 22 – INTEREST INCOME

Breakdown is as follows:

Interest income 6/30/2019 6/30/2018 Government securities measured at fair value with changes through 12,262,595 1,419,658 OCI Notes 3,000,907 1,665,481 Consumer loans 2,134,158 1,699,243 Overdrafts 2,035,417 1,249,534 Credit cards 2,015,374 851,471 Other loans 624,413 685,059 Premium on reverse repo transactions with the financial sector 437,945 86,553 Loans to the financial sector 407,994 251,406 Finance lease 139,141 150,947 Other 837,781 215,186 Total 23,895,725 8,274,538

NOTE 23 –INTEREST EXPENSE

Breakdown is as follows:

Interest expense 6/30/2019 6/30/2018 Time deposits 9,319,459 2,588,818 Premium on repo transactions with the financial sector 536,809 89,243 Deposits in savings accounts 398,046 107,153 Financing facilities received from local financial institutions (Call) 336,492 74,550 Other financing facilities received from financial institutions 56,012 38,393 Other 382,535 178,483 Total 11,029,353 3,076,640

NOTE 24 – FEE INCOME

Breakdown is as follows:

Fee income 6/30/2019 6/30/2018 Credit and debit cards 767,309 626,517 Deposits 760,364 627,824 Packages of products 483,338 331,637 Insurance 452,960 339,769 Collections 256,754 149,941 Foreign trade 145,628 87,599 Securities 36,343 25,838 Loans 34,272 36,308 Other 38,718 28,185 Total 2,975,686 2,253,618

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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED 6/30/2019, COMPARATIVELY PRESENTED (Stated in thousands of pesos)

NOTE 25 – FEE EXPENSES

Breakdown is as follows:

NOTE 26 – 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 6/30/2019 6/30/2018 changes through profit or loss Corporate securities 626,920 9,579 Gain/loss on the sale or derecognition of financial assets at fair 78,044 34,657 value Government securities and instruments issued by the BCRA 60,771 315,852 Forward foreign currency transactions (12,355) (49,994) Total 753,380 310,094

NOTE 27 – OTHER OPERATING INCOME

Breakdown is as follows:

Other operating income 6/30/2019 6/30/2018 Gain/loss on the sale of non current assets held for sale 1,409,682 - Commissions from lease of safe-deposit boxes 125,417 98,939 Recovered receivables 78,254 30,974 Proceeds from the sale of property, plant and equipment 55,567 92,415 Punitive interest 51,220 20,740 Other 501,428 240,846 Total 2,221,568 483,914

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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED 6/30/2019, COMPARATIVELY PRESENTED (Stated in thousands of pesos)

NOTE 28 – EMPLOYEE BENEFITS

Breakdown is as follows:

Employee benefits 6/30/2019 6/30/2018 Salaries 2,391,470 1,630,200 Social security contributions 463,651 344,696 Services to personnel 92,611 62,983 Severance payments 68,760 40,149 Other benefits 73,396 82,483 Total 3,089,888 2,160,511

NOTE 29 – ADMINISTRATIVE EXPENSES

Breakdown is as follows:

Administrative expenses 6/30/2019 6/30/2018 Maintenance, conservation and repair expenses 374,026 220,957 Taxes 358,427 248,211 Electric power and communications 155,355 90,609 Armored vehicle services 150,444 110,388 Advertising and marketing 141,609 112,019 Surveillance services 132,365 92,775 Fees 101,401 58,369 Directors and supervisory auditors’ fees 93,672 56,604 Entertainment and per diem expenses 27,212 15,412 Leases 26,962 107,096 Other 333,963 239,240 Total 1,895,436 1,351,680

NOTE 30 – OTHER OPERATING EXPENSES

Breakdown is as follows:

Other operating expenses 6/30/2019 6/30/2018 Turnover tax 1,124,619 705,256 ATM expenses 176,442 122,074 Contribution to the deposit guarantee fund 98,293 57,873 Charge for other allowances 40,604 20,442 Other 161,864 69,358 Total 1,601,822 975,003

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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED 6/30/2019, COMPARATIVELY PRESENTED (Stated in thousands of pesos)

NOTE 31 – 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 June 30, 2019 is as follows:

Fair value Fair value Book Amortized with with changes Item Level 1 Level 2 Level 3 balance cost changes through profit through OCI or loss

Financial assets Debt securities measured at fair value 194,088 - - 194,088 185,569 8,519 - with changes through profit or loss Derivative financial 526,339 - - 526,339 - 526,339 - instruments Other debt securities 46,701,443 273,425 46,428,018 - 6,070,207 40,357,811 - Financial assets 2,905,232 772,576 2,132,656 - - 2,132,656 - granted as collaterals Investments in equity 841,040 - - 841,040 - 5,415 835,625 instruments Total 51,168,142 1,046,001 48,560,674 1,561,467 6,255,776 43,030,740 835,625

Fair value Fair value with with Book Amortized changes Level changes Level 1 Level 2 Item balance cost through 3 through profit or OCI loss Financial liabilities Liabilities measured at fair value with changes 34,353 - - 34,353 34,353 - - through profit or loss Derivative financial 96,399 - - 96,399 - 96,399 - instruments Total 130,752 - - 130,752 34,353 96,399 -

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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED 6/30/2019, COMPARATIVELY PRESENTED (Stated in thousands of pesos)

The fair value hierarchy of assets and liabilities measured at fair value as of December 31, 2018 is as follows:

Fair value Fair value with Book Amortized with changes Level Item Level 1 Level 2 balance cost changes through 3 through OCI profit or loss Financial assets Debt securities measured at fair value 186,641 - - 186,641 166,731 19,910 - with changes through profit or loss Derivative financial 154,379 - - 154,379 - 154,379 - instruments Other debt securities 23,069,847 91,439 22,978,408 - 18,263,135 4,715,273 - Financial assets 2,778,770 1,532,939 1,245,831 - 465,092 780,739 - granted as collaterals Investments in equity 4,513 - - 4,513 - 4,513 - instruments Total 26,194,150 1,624,378 24,224,239 345,533 18,894,958 5,674,814 -

Fair value Fair value with with Amortized changes Level Book balance changes Level 1 Level 2 cost through 3 through Item profit or OCI loss Financial liabilities Derivative financial 78,312 - - 78,312 - 78,312 - instruments Total 78,312 - - 78,3 12 - 78,312 -

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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED 6/30/2019, COMPARATIVELY PRESENTED (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:

6/30/2019 12/31/2018 Argentin e Treasury Bond, maturity 2020 4,223 33,087 Argentine Government Bond in ARS - Private Badlar + 325 bps. - 726 Maturity 2020 Argentine Treasury Bonds in ARS adjusted by CER, maturity 2020 - 78 Total 4,223 33,891 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:

6/30/2019 12/31/2018 Argentine Treasury Bond in ARS, fixed rate, maturity 2020 3,771,900 - Neuquén Treasury Bills C.1 S.1, maturity 2020 46,160 - Argentine Government Bonds in USD 6.875% maturity 2027 1,887 - Debt securities of the province of Chubut, Class II - 227 Total 3,819,947 227

Below is a description of the financial instruments carried at fair value using valuation techniques based on observable market data (Level 2):

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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED 6/30/2019, COMPARATIVELY PRESENTED (Stated in thousands of pesos)

The Group includes in Level 3, its interest in Prisma Medios de Pago S.A., registered in line “investments in equity instruments”, as the valuation calculated by independent professionals was applied to determine its fair value, adjusting such valuation as per the BCRA requirements. Assets stated at fair value based on unobservable data are registered in line “Net gain on financial instruments measured at fair value through profit or loss”. 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

• 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 hierarchy of assets and liabilities not measured at fair value as of June 30, 2019 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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED 6/30/2019, COMPARATIVELY PRESENTED (Stated in thousands of pesos)

Accounting balance Item VR Total VR Level 1 VR Level 2 VR Level 3 as of 6/30/2019

Financial assets

Cash and bank deposits 35,556,584 (1) - - -

Repo transactions 1,246,249 ( 1) - - -

Other financial assets 2,151,514 2,151,098 - - 2,151,098

Loans and other financing facilities 76,054,244 69,491,823 - - 69,491,823

Financial liabilities

Deposits 121,421,531 121,307,361 - - 121,307,361

Repo transactions 1,615,832 ( 1) - - -

Other financial liabilities 7,929,425 ( 1) - - - Financing facilities received from the 13,733,973 ( 1) - - - BCRA and other financial 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, 2018 is as follows:

Accounting balance Item VR Total VR Level 1 VR Level 2 VR Level 3 as of 12/31/2018 Financial assets

Cash and bank deposits 34,377,288 ( 1) - - -

Repo transactions 663,435 ( 1) - - -

Other financial assets 2,836,300 2,835,846 - - 2,835,846

Loans and other financing facilities 79,592,194 73,454,222 - - 73,454,222

Financial liabilities Deposits 108,183,827 107,488,272 - - 107,488,272 Repo transactions 916,010 ( 1) - - - Other financial liabilities 8,945,619 ( 1) - - - Financing facilities received from the 9,358,048 ( 1) - - - BCRA and other financial 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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED 6/30/2019, COMPARATIVELY PRESENTED (Stated in thousands of pesos)

NOTE 32 – RESTRICTED ASSETS

6/30/2019 12/31/2018 Special guarantee accounts 1,199,157 1,058,649 BCRA - Financial trusts under guarantee of OCT 1,139,157 983,324 - Treasury bills in USD, maturity 8/16/2019 548,929 - - Treasury bills in USD, maturity 10/11/2019 168,095 - - Treasury bills in USD, maturity 9/27/2019 126,392 - - Treasury bills in USD, maturity 9/13/2019 126,188 - - Treasury bills in USD, maturity 8/30/2019 84,508 - - Treasury bills in USD, maturity 10/25/2019 83,8 40 - US dollars as security 1,205 - - Other - 983,324 Security deposits – Credit and debit card managers 324,394 451,702 Government securities – IADB loan – Global Credit Program for micro-, 227,884 270,507 small- and medium-sized enterprises - Treasury bills in USD, maturity 8/16/2019 227,884 - - Other - 270,507 Other security deposits 14,640 14,588 Total 2,905,232 2,778,770

NOTE 33 – 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 6/30/2019 12/31/2018 Cash and bank deposits BCRA - Current account 30,781,061 29,124,719 Other debt securities Argentine Treasury Bond in ARS - Fixed Rate, maturity 2020 3,771,900 3,243,600 Financial assets granted as collaterals BCRA - Special guarantee accounts 1,199,157 1,058,649 Total 35,752,118 33,426,968

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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED 6/30/2019, COMPARATIVELY PRESENTED (Stated in thousands of pesos)

Minimum capital requirements breakdown is as follows:

Minimum capital requirements 6/30/2019 12/31/2018 Minimum capital requirements (A) 10,113,278 9,264,737 Credit risk 7,478,835 7,330,871 Market risk – Securities 8,654 15,690 Market risk - Currencies 102,814 34,506 Operational risk 2,522,975 1,883,670 Payment (B) 18,231,623 14,166,472 Surplus (B - A) 8,118,345 4,901,735

NOTE 34 – TRANSACTIONS WITH COMPANIES INCLUDED IN SECTION 33, COMPANIES LAW No. 19.550

The following table shows the Entity’s receivables from/payables to its subsidiaries and affiliates, and its parent company as of June 30, 2019 and December 31, 2018:

6/30/2019 12/31/2018 Patagonia Valores S.A. Other financial assets– sundry debtors 665 360 Deposits – Checking accounts 733 15 Deposits – Special checking account 80 70 Checks and securities in custody 26,618 1,702

Patagonia Inversora S.A. Sociedad Gerente de F.C.I. Deposits – Checking accounts 607 292 Checks and securities in custody 350,100 242,749

Banco Patagonia (Uruguay) S.A. I.F.E. Deposits – Checking accounts 6 6 Deposits – Special checking account 2 2 Checks and securities in custody 2,170,641 3,943,139 Guarantees received 11,249 13,800

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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED 6/30/2019, COMPARATIVELY PRESENTED (Stated in thousands of pesos)

6/30/2019 12/31/2018 GPAT Compañía Financiera S.A.U. Loans and other financings - Other loans 1,279,461 - Loans and other financing facilities– interbank loans (call options granted) 165,868 1,699,238 Loans and other financing facilities – Other financing facilities granted to local 155 138 financial institutions Debt securities– corporate bonds 34,182 85,818 Deposits – Checking accounts 26,410 16,169 Derivative financial liabilities - 3,981 Other financial liabilities 971 4,034 Derivatives – swap from variable to fixed interest rate - 500,000

Banco do Brasil S.A. Cash and bank deposits –Financial institutions and correspondents 32,328 12,556 Deposits – Checking accounts 33,232 30,107 Financing facilities received from financial institutions 2,556,753 378,140 Guarantees received 339,586 151,233 Other Guarantees Granted 39,477 65,408 Checks and securities in custody 2 2

The Entity’s income (losses) for the six-month period ended June 30, 2019 and 2018 resulting from transactions with its subsidiaries, related companies and its parent company is as follows:

6/30/2019 6/30/2018 Patagonia Valores S.A. Fees and other operating income 1 - Other operating income–other earnings 1,192 409

Patagonia Inversora S.A. Sociedad Gerente de F.C.I. Other operating income–other earnings 169 169

Banco Patagonia (Uruguay) S.A. I.F.E. Other operating income– fees - 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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED 6/30/2019, COMPARATIVELY PRESENTED (Stated in thousands of pesos)

6/30/2019 6/30/2018 GPAT Compañía Financiera S.A.U. Interest income– Financial sector 289,677 110,880 Interest income– corporate bonds 10,725 12,007 Interest income– advances 562 520 Interest expense-Income/loss on interest rate swap 4,533 22,635 Interest expense– interest from financing facilities to local financial institutions 1,638 648 Fees and other operating income 7,935 17,301 Fee expenses 8,447 15,769 Other operating income–other earnings 3,760 4,966

Banco do Brasil S.A. Interest income 6,110 2,193 Financial expenses – Interest on other loans from financial institutions 30,189 - Fee income 1 1 Fee expenses - 12 Other operating income–other earnings 251 202

NOTE 35 – COMPLIANCE WITH PROVISIONS SET FORTH BY LAW No. 25738

NOTE 36 – 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:

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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

NOTES TO THE CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS FOR THE SIX- MONTH PERIOD ENDED 6/30/2019, COMPARATIVELY PRESENTED (Stated in thousands of pesos)

Shareholders ’ Minimum cash Role Equity contra-account capital 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 June 30, 2019, the Entity’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 37 – 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 38 – SUBSEQUENT EVENTS

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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

EXHIBIT A BREAKDOWN OF GOVERNMENT AND CORPORATE SECURITIES AS OF 6/30/2019 AND 12/31/2018 (Amounts stated in thousands of pesos)

Holding Position Identification Balance without Item Level Balance as Fair value as of options Final Fair value of 6/30/2019 12/31/2018 (1)

DEBT SECURITIES MEASURED AT FAIR VALUE WITH CHANGES 193,530 194,088 186,641 159,736 159,736 THROUGH PROFIT OR LOSS In Argentina 193,530 194,088 186,641 159,736 159,736 Government securities 193,530 193,530 175,842 159,178 159,178 - Treasury bills (to be capitalized), maturity 7/19/2019 5297 53,829 1 53,829 - 53,829 53,829 – Treasury bills (to be capitalized), maturity 7/31/2019 5295 52,245 1 52,245 - 52,245 52,245 - Boncer Bond - Maturity 2020 5321 28,984 1 28,984 - 28,984 28,984 - Argentine Treasury Bonds 2.5% $, maturity 2021 5315 16,668 1 16,668 13,668 16,668 16,668 - Discount Bond in USD 8.28% maturity 2033 45700 14,424 1 14,424 96,899 14,424 14,424 - Argentine Government Bond in USD 8, maturity 2020 5468 11,900 1 11,900 - 11,900 11,900 - Argentine Government Bond in USD 8.75%, maturity 2024 5458 6,550 1 6,550 - 6,550 6,550 – Debt security, Class 1, Province of Rio Negro, maturity 2020 32922 5,458 2 5,458 5,458 5,458 5,458 - Republic of Argentina bond in USD 6.875%, maturity 2027 92585 1,887 1 1,887 1,706 1,887 1,887 - Treasury bills in USD, maturity 7/26/2019 5258 848 1 848 - 848 848 - Other 737 737 58,429 ( 33,615) (33,615) Corporate securities - 558 10,799 558 558 - Other - 558 10,799 558 558

(1) It includes “Holding” plus “Deposits offered as security” and “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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

EXHIBIT A BREAKDOWN OF GOVERNMENT AND CORPORATE SECURITIES AS OF 6/30/2019 AND 12/31/2018 (Amounts stated in thousands of pesos)

Holding Position Identification Balance as Item Level Balance as without Fair value of Final Fair value of 6/30/2019 options (1) 12/31/2018 Other debt securities 46,428,018 46,701,443 23,069,847 48,067,279 48,067,279 MEASURED AT FAIR VALUE WITH CHANGES THROUGH 46,428,018 46,428,018 22,978,408 47,021,277 47,021,277 OCI In Argentina 46,428,018 46,428,018 22,978,408 47,021,277 47,021,277 Government securities 6,349,898 6,349,898 5,456,795 6,943,157 6,943,157 Argentine Treasury Bond at Fixed Rate, maturity 2020 5330 3,771,900 1 3,771,900 3,376,199 3,771,900 3,771,900 - Treasury bills in USD, maturity 7/19/2019 5298 1,102,885 1 1,102,885 - 1,102,885 1,102,885 - Treasury bills in USD, maturity 10/11/2019 5291 806,017 1 806,017 - 974,112 974,112 - Debt security, Class 1, Province of Rio Negro, maturity 2021 42016 207,380 2 207,380 220,840 207,380 207,380 - Treasury bills in USD, maturity 7/26/2019 5258 197,075 1 197,075 - 197,075 197,075 - Treasury bills in USD, maturity 8/30/2019 5283 91,296 1 91,296 - 175,804 175,804 - Debt security Prov. of Río Negro Class 1, maturity 2020 32922 65,502 2 65,502 67,578 65,502 65,502 - Treasury bills in USD, maturity 11/29/2019 5296 54,165 1 54,165 - 54,165 54,165 - Neuquén Treasury Bills C.1 S.1, maturity 2020 32777 46,160 1 46,160 50,635 46,160 46,160 - Chubut debt security in USD Class 2 32487 4,223 2 4,223 228 4,223 4,223 - Other 3,295 3,295 1,741,315 343,951 343,951 BCRA Bills 40,050,715 40,050,715 17,446,079 40,050,715 40,050,715 - BCRA Liquidity Bill, maturity 7/5/2019 2351 12,294,426 2 12,294,426 - 12,294,426 12,294,426 - BCRA Liquidity Bill, maturity 7/1/2019 2339 10,351,894 2 10,351,894 - 10,351,894 10,351,894 - BCRA Liquidity Bill, maturity 7/4/2019 2345 8,938,683 2 8,938,683 - 8,938,683 8,938,683 - BCRA Liquidity Bills- Maturity 7/2/2019 2341 5,481,069 2 5,481,069 - 5,481,069 5,481,069 - BCRA Liquidity Bill, maturity 7/3/2019 2344 2,984,643 2 2,984,643 - 2,984,643 2,984,643 -Other - - 17,446,079 - - Corporate securities 27,405 27,405 75,534 27,405 27,405 - ON GPAT Compañía Financiera Series 27 Class B 52449 21,156 2 21,156 21,504 21,156 21,156 - ON GPAT Compañía Financiera Series 32 Class A 53468 6,249 2 6,249 6,296 6,249 6,249 - Other - - 47,734 - -

(1) It includes “Holding” plus “Deposits offered as security” and “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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

EXHIBIT A BREAKDOWN OF GOVERNMENT AND CORPORATE SECURITIES AS OF 6/30/2019 AND 12/31/2018 (Amounts stated in thousands of pesos)

Holding Position Identification Balance as Item Level Balance as of without Fair value of Final Fair value 6/30/2019 options (1) 12/31/2018

Measured at amortized cost 273,425 91,439 1,046,002 1,046,002 In Argentina 273,425 91,439 1,046,002 1,046,002 Government securities 207,888 10,462 980,465 980,465 - Treasury bills in USD, maturity 8/16/2019 5282 - - 78,308 - 724,697 724,697 - Treasury bills in USD, maturity 9/13/2019 5285 - - 36,242 - 162,430 162,430 - Argentine Government Bond, maturity 3/6/2020 5485 - - 34,673 - 34,673 34,673 - Debt security Banco Ciudad de Buenos Aires in ARS, Class 19 42076 - - 31,711 - 31,711 31,711 - Boncer Bond - Maturity 2020 5321 - - 17,393 - 17,393 17,393 - Municipal bill of Córdoba S. 31, maturity 9/23/2019 42084 - - 9,561 - 9,561 9,561 - Other - 10,462 - - Corporate securities 65,537 80,977 65,537 65,537 VD FF Créditos - Series 21 54279 - - 30,000 - 30,000 30,000 - VD FF CMR Falabella 75 Class A 54176 - - 18,004 - 18,004 18,004 - ON GPAT Compañía Financiera Series 27 Class B 52449 - - 6,776 6,616 6,776 6,776 - VD FF Ribeiro 103- Class “A” 53958 - - 5,058 19,013 5,058 5,058 VD FF Mercado Credito - Series 4 54205 - - 3,066 - 3,066 3,066 - VD FF Ribeiro 102 - Class “A” 53715 - - 2,633 29,469 2,633 2,633 -Other 25,879

EQUITY INSTRUMENTS 841,040 841,040 4,513 841,040 841,040

MEASURED AT FAIR VALUE WITH CHANGES THROUGH 841,040 841,040 4,513 841,040 841,040 PROFIT OR LOSS In Argentina 836,466 836,466 1,102 836,466 836,466 - Prisma Medios de Pago S.A. 835,625 3 835,625 - 835,625 835,625 - Seguro de Depósitos S.A. - 493 2 493 492 493 493 - Miralejos S.A.C.F. and Agropecuaria SACIFIA - 106 2 106 366 106 106 - Mercado a Término de Buenos Aires S.A. - 73 2 73 73 73 73 - Bolsa de Comercio de Mar del Plata S.A. - 56 2 56 56 56 56 - Argencontrol S.A. - 53 2 53 53 53 53 - Sanatorio Las Lomas S.A. - 47 2 47 47 47 47 - Celta Coop. Obras Ser. Tres Arroyos - 12 2 12 12 12 12 - Coop. Eléctrica Caromecó - 1 2 1 - 1 1 - Other - 2 - 3 - - From abroad 4,574 4,574 3,411 4,574 4,574 - Banco Latinoamericano de Comercio Exterior S.A. - 4,432 2 4,432 3,284 4,432 4,432 - Soci ety for Worldwide Interbank Financial Telecommunication - 142 2 142 127 142 142

(1) It includes “Holding” plus “Deposits offered as security” and “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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

EXHIBIT “B” LOANS AND OTHER FINANCING FACILITIES CLASSIFIED BY STATUS AND GUARANTEES RECEIVED AS OF 6/30/2019 AND 12/31/2018 (Stated in thousands of pesos)

COMMERCIAL LOAN PORTFOLIO 6/30/2019 12/31/2018

Performing 54,191,663 56,250,734

Subject to special monitoring 89,701 358,583

In observation 54,147 89,913

- With “B” preferred guarantees and counter-guarantees 53,490 51,810 - Without preferred guarantees or counter-guarantees 657 38,103

In negotiation or under refinancing agreements 35,554 268,670

- With “B” preferred guarantees and counter-guarantees 24,869 192,791 - Without preferred guarantees or counter-guarantees 10,685 75,879

Troubled 243,930 226,104

- With “B” preferred guarantees and counter-guarantees 240,155 223,823 - Without preferred guarantees or counter-guarantees 3,775 2,281

With high risk of insolvency 1,404 1,643

- With “B” preferred guarantees and counter-guarantees - 758 - Without preferred guarantees or counter-guarantees 1,404 885

Irrecoverable 489,780 139,800

TOTAL COMMERCIAL LOAN PORTFOLIO 55,016,478 56,976,864

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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

EXHIBIT “B” LOANS AND OTHER FINANCING FACILITIES CLASSIFIED BY STATUS AND GUARANTEES RECEIVED AS OF 6/30/2019 AND 12/31/2018 (Stated in thousands of pesos)

CONSUMER AND/OR HOME LOAN PORTFOLIO 6/30/2019 12/31/2018

Performing 24,070,681 25,325,663

- With “A” preferred guarantees and counter-guarantees 577,106 607,945 - With “B” preferred guarantees and counter-guarantees 1,511,911 1,370,292 - Without preferred guarantees or counter-guarantees 21,981,664 23,347,426

Low risk 916,499 917,265

- With “A” preferred guarantees and counter-guarantees 19,335 18,787 - With “B” preferred guarantees and counter-guarantees 15,850 18,164 - Without preferred guarantees or counter-guarantees 881,314 880,314

Medium risk 660,709 563,562

- With “A” preferred guarantees and counter-guarantees 10,786 5,584 - With “B” preferred guarantees and counter-guarantees 4,463 7,666 - Without preferred guarantees or counter-guarantees 645,460 550,312

High risk 880,257 569,850

- With “A” preferred guarantees and counter-guarantees 11,037 3,676 - With “B” preferred guarantees and counter-guarantees 6,642 960 - Without preferred guarantees or counter-guarantees 862,578 565,214

Irrecoverable 442,959 280,129

- With “A” preferred guarantees and counter-guarantees 3,167 1,941 - With “B” preferred guarantees and counter-guarantees 658 4,910 - Without preferred guarantees or counter-guarantees 439,134 273,278

Irrecoverable according to BCRA regulations 14 42

- Without preferred guarantees or counter-guarantees 14 42

TOTAL CONSUMER AND/OR HOME LOAN PORTFOLIO 26,971,119 27,656,511

TOTAL GENERAL 81,987,597 84,633,375

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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

EXHIBIT “B” LOANS AND OTHER FINANCING FACILITIES CLASSIFIED BY STATUS AND GUARANTEES RECEIVED AS OF 6/30/2019 AND 12/31/2018 (Stated in thousands of pesos)

RECONCILIATION OF LOANS AND OTHER FINANCING FACILITIES AS PER SEPARATE STATEMENT OF FINANCIAL POSITION

BREAKDOWN 6/30/2019 12/31/2018

BALANCE AS PER EXHIBIT “B” 81,987,597 84,633,375 Items included in Exhibit “B” and not included in Loans and other (1,054,319) (1,354,199) financing facilities Off-balance sheet items– agreed-upon loans (unused balances), other (961,377) (1,204,304) guarantees granted and other covered by Debtor Classification Standards.

Other items ( 92,942) (149,895)

Items not included in Exhibit “B” and included in Loans and other (4,879,034) (3,686,982) financing facilities

Loans and other financing facilities- loans to personnel 295,218 313,845

Loans and other financing facilities–IFRS adjustment at effective interest (309,306) (311,294) rate

Loans and other financing facilities– Allowances for loan losses (4,864,946) (3,689,533)

BALANCE AS PER STATEMENT OF FINANCIAL POSITION 76,054,244 79,592,194

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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

EXHIBIT C LOANS AND OTHER FINANCING FACILITIES CONCENTRATION AS OF 6/30/2019 AND 12/31/2018 (Amounts stated in thousands of pesos)

FINANCING FACILITIES

Number of customers 6/30/2019 12/31/2018 % of total Outstanding % of total Outstanding amount portfolio amount portfolio

10 largest customers 13,896,115 16.9% 13,661,763 16.1%

50 next largest customers 23,835,309 29.1% 20,636,735 24.4%

100 next largest customers 8,426,232 10.3% 10,682,382 12.6%

Rest of customers 35,829,941 43.7% 39,652,495 46.9%

TOTAL 81,987,597 100.0% 84,633,375 100.0%

RECONCILIATION OF LOANS AND OTHER FINANCING FACILITIES AS PER SEPARATE STATEMENT OF FINANCIAL POSITION

BREAKDOWN 6/30/2019 12/31/2018

BALANCE AS PER EXHIBIT “C” 81,987,597 84,633,375 Items included in Exhibit “C” and not included in Loans and other (1,054,319) (1,354,199) financing facilities Off-balance sheet items– agreed-upon loans (unused balances), other (961,377) (1,204,304) guarantees granted and other covered by Debtor Classification Standards.

Other items (92,942) (149,895)

Items not included in Exhibit “C” and included in Loans and other (4,879,034) (3,686,982) financing facilities

Loans and other financing facilities- loans to personnel 295,218 313,845

Loans and other financing facilities–IFRS adjustment at effective interest (309,306) (311,294) rate

Loans and other financing facilities– Allowances for loan losses (4,864,946) (3,689,533)

BALANCE AS PER STATEMENT OF FINANCIAL POSITION 76,054,244 79,592,194

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 08/08/2019 with our report dated 08/08/2019

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

118 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

EXHIBIT D LOANS AND OTHER FINANCING FACILITIES BROKEN DOWN BY TERM AS OF 6/30/2019 (Amounts stated in thousands of pesos)

Terms remaining to maturity Total as of Item Matured Over 24 6/30/2019 1 month 3 months 6 months 12 months 24 months months Non-financial government - 242,622 4,570 43,141 135 1,165 - 291,633 sector Financial sector - 1,280,711 627,962 655,213 2,071,384 573,294 90,861 5,299,425 Nonfinancial private sector and foreign residents 3,052,624 31,659,769 12,921,156 10,295,613 10,215,134 9,261,720 11,880,328 89,286,344

TOTAL 3,052,624 33,183,102 13,553,688 10,993,967 12,286,653 9,836,179 11,971,189 94,877,402

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 08/08/2019 with our report dated 08/08/2019

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 Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

EXHIBIT H DEPOSITS CONCENTRATION AS OF 6/30/2019 AND 12/31/2018 (Amounts stated in thousands of pesos)

6/30/2019 12/31/2018 Number of customers Outstanding % of total Outstanding % of total amount portfolio amount portfolio

10 largest customers 14,593,090 12.0% 10,839,861 10.0%

50 next largest customers 14,311,000 11.8% 13,632,718 12.6%

100 next largest customers 8,745,629 7.2% 8,585,965 7.9%

Rest of customers 83,771,812 69.0% 75,125,283 69.5%

TOTAL 121,421,531 100.0% 108,183,827 100.0%

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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A. EXHIBIT I FINANCIAL LIABILITIES BROKEN DOWN BY TERMS REMAINING TO MATURITY AS OF 6/30/2019 (Amounts stated in thousands of pesos)

Terms remaining to maturity Item over 24 Total as of 1 month 3 months 6 months 12 months 24 months months 6/30/2019 Deposits 111,007,933 9,275,505 2,378,887 228,955 2,113 735 122,894,128 Non-financial government sector 10,718,555 966,407 61,006 - - - 11,745,968 Financial sector 69,448 - - - - - 69,448 Nonfinancial private sector and foreign residents 100,219,930 8,309,098 2,317,881 228,955 2,113 735 111,078,712 Liabilities measured at fair value with changes through 34,353 - - - - - 34,353 profit or loss Derivative instruments 96,399 - - - - - 96,399 Repo transactions 1,615,832 - - - - - 1,615,832 Other financial institutions 1,615,832 1,615,832 Other financial liabilities 7,929,425 - - - - - 7,929,425 Financing facilities received from the BCRA and other 2,439,071 1,432,102 4,585,740 3,077,475 769,171 2,646,881 14,950,440 financial institutions TOTAL 123,123,013 10,707,607 6,964,627 3,306,430 771,284 2,647,616 147,520,577

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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

EXHIBIT J CHANGES IN ALLOWANCES AND PROVISIONS AS OF 6/30/2019 (Amounts stated in thousands of pesos)

Balances at Decreases Balance as of Item Increases beginning of year 6/30/2019 Reversals Uses

INCLUDED IN LIABILITIES

Contingent commitments 1,366 - - 1,366 - For administrative, disciplinary 33 - - - 33 and criminal sanctions Other 397,666 40,604 7,350 56,281 374,639 Labor lawsuits 43,958 8,936 - 2,044 50,850

Complaints, proceedings, appeals 217,410 10,098 7,350 908 219,250

Tax lawsuits 136,298 21,570 - 53,329 104,539 TOTAL ALLOWANCES AND 399,065 40,604 7,350 57,647 374,672 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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

EXHIBIT L BALANCES IN FOREIGN CURRENCY AS OF 6/30/2019 (Amounts stated in thousands of pesos)

Head office Items and branches Total as of US dollar Euro Brazilian real Other Total as of in Argentina 6/30/2019 12/31/2018

ASSETS Cash and bank deposits 18,723,713 18,723,713 17,774,318 810,828 11,089 127,478 16,648,873 Debt securities measured at fair value with changes 35,651 35,651 35,651 - - - 110,043 through profit or loss Other financial assets 166,777 166,777 166,753 24 - - 35,491 Loans and other financing facilities 30,794,900 30,794,900 30,478,840 316,060 - - 25,235,524 Other financial institutions 705,736 705,736 705,736 - - - 440,780 Nonfinancial private sector and foreign residents 30,089,164 30,089,164 29,773,104 316,060 - - 24,794,744 Other debt securities 2,370,210 2,370,210 2,370,210 - - - 1,737,838 Financial assets granted as collaterals 1,411,114 1,411,114 1,411,114 - - - 1,283,347 Investments in equity instruments 4,574 4,574 4,432 142 - - 3,411 Investments in subsidiaries, associates and joint 425,873 425,873 425,873 - - - 382,529 ventures

TOTAL ASSETS 53,932,812 53,932,812 52,667,191 1,127,054 11,089 127,478 45,437,056

LIABILITIES Deposits 37,505,244 37,505,244 36,806,987 698,257 - - 33,484,062 Non-financial government sector 2,137,040 2,137,040 2,135,805 1,235 - - 427,717 Financial sector 70 70 70 - - - 62 Nonfinancial private sector and foreign residents 35,368,134 35,368,134 34,671,112 697,022 - - 33,056,283 Other financial liabilities 3,350,998 3,350,998 3,281,541 69,228 - 229 3,687,772 Financing facilities received from the BCRA and 12,277,823 12,277,823 11,964,717 313,106 - - 8,328,988 other financial institutions Other nonfinancial liabilities 8,434 8,434 8,434 - - - 30,506

TOTAL LIABILITIES 53,142,499 53,142,499 52,061,679 1,080,591 - 229 45,531,328

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 08/08/2019 with our report dated 08/08/2019

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 Translation from the original prepared in Spanish for publication in Argentina BANCO PATAGONIA S.A. EXHIBIT O DERIVATIVE FINANCIAL INSTRUMENTS AS OF 6/30/2019 (Amounts stated in thousands of pesos)

Weighted Weighted average Type of Negotiation average term Residual term for the Amount as of Type of contract Purpose of transaction s Underlying asset settlement environment or Originally weighted settlement of 6/30/2019 counter-party agreed average term differences

Intermediation on own Daily settlement Futures Foreign currency ROFEX 4 3 1 3,866,558 account of differences

OTC -residents in Upon maturity of Futures Intermediation on own Foreign currency Argentina 4 3 85 5,908,164 differences account Nonfinancial sector Government securities

and instruments Delivery of - Repo transactions Intermediation on own MAE - - 3,177,284 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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

BANCO PATAGONIA S.A.

EXHIBIT R LOSS IMPAIRMENT ADJUSTMENT– ALLOWANCE FOR LOAN LOSSES AS OF 6/30/2019 (Amounts stated in thousands of pesos)

Decreases Balances at Increases Balance as of Item beginning of (*) 6/30/2019 period Reversals Uses

Other financial assets 18,383 675,519 - 3,295 690,607

Loans and other financing facilities 3,689,533 1,599,479 - 424,066 4,864,946

Other financial institutions 30,575 31,087 - 21,766 39,896 Nonfinancial private sector and foreign 3,658,958 1,568,392 - 402,300 4,825,050 residents Overdrafts 238,354 158,624 - 75,799 321,179

Notes 445,213 312,098 - 57,788 699,523

Mortgage loans 13,355 3,492 - 115 16,732

Consumer 646,347 397,115 - 131,759 911,703

Credit cards 225,792 57,189 - 86,132 196,849

Finance lease 20,179 17,700 - 5,258 32,621

Other 2,069,718 622,174 - 45,449 2,646,443

TOTAL ALLOWANCES AND 3,707,916 2,274,998 - 427,361 5,555,553 PROVISIONS

(*) It includes increases from quotation gains/losses.

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 08/08/2019 with our report dated 08/08/2019

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

Mónica M. Cukar

Reporting summary For the six-month period ended June 30, 2019

Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

REPORTING SUMMARY FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2019

RELEVANT ASPECTS:

This reporting summary was prepared based on 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.

In the first quarter of 2019, Banco Patagonia recorded Assets in the amount of $177,344.5 million, Loans and other financing facilities (net of allowances) in the amount of $ 79,311.3 million, Deposits in the amount of $ 122,580.9 million and Shareholders’ equity in the amount of $22,638.6 million.

Net income for the quarter amounted to $7,035.6 million, evidencing an increase of $ 229.1% ($ 4,898.0 million) compared to 2Q 2018 ($ 2,137.6 million), with a ROE of 57.5% and a ROA of 6.8%.

Loans granted to the non-financial private sector amounted to $ 80,979.7 million, evidencing an increase of 17.9% ($ 12,276.2 million) compared to 2Q 2018 ($ 68,602.5 million).

Total deposits amounted to $ 122,580.9 million, which accounts for an increase of 48.4% ($ 40,004.4 million) compared to 2Q 2018 ($ 82,576.5 million).

Regarding portfolio quality ratios, the non-performing portfolio ratio is 3.3%, and coverage with provisions on the non-performing loan portfolio was 177.6%.

The liquidity ratio was 68.7% (liquid assets on total deposits). In addition, the minimum capital exceeds in the amount of $ 10,773,907 million the amount required by BCRA regulations.

As of June 30, 2019, Banco Patagonia S.A. employs 3,384 people, and has a wide network made up of 210 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 08/08/2019

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

Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

REPORTING SUMMARY FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2019

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 BCRA, which state that the institutions under its supervision should submit financial statements prepared under the 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. As provided for by BCRA Communication “A” 6651 issued on February 22, 2019, which established the adoption of IAS 29 “Financial Reporting in Hyperinflationary Economies” for fiscal years beginning on or after January 1, 2020, the Entity does not restate its financial statements to reflect the effects of inflation. In addition, the consolidated financial statements have considered the outlines set by the BCRA, regarding the accounting treatment given to the remaining investment being held by the Entity in Prisma Medios de Pago S.A.

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 fiscal period ended June 30, 2019 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 08/08/2019

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

Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

REPORTING SUMMARY FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2019 a) b) Summary comparative consolidated financial position

Information for periods ended June 30, 2019 and 2018:

Consolidated Financial Statements (In Millions of Pesos) 6/30/2019 6/30/2018 Cash and bank deposits 35,884.4 19,735.4 Debt securities 47,530.4 18,229.4 Other financial assets 7,239.0 5,620.1 Loans and other financing facilities 79,311.3 68,616.6 Non-financial government sector 279.3 431.6 Other financial institutions 3,102.6 2,126.8 Nonfinancial private sector net of allowances 75,929.4 66,058.2 Nonfinancial private sector 80,878.7 68,602.5 (Allowances) (4,949.3) (2544.3) Property, plant and equipment 5,771.0 2,509.2 Other assets 1,608.4 955.4 TOTAL ASSETS 177,344.5 115,666.1 Deposits 122,580.9 82,576.5 Non-financial government sector 11,551.7 7,535.2 Financial sector 43.0 58.6 Nonfinancial private sector 110,986.2 74,982.7 Other financial liabilities 10,169.3 8,877.3 Financing facilities received from the BCRA and other financial institutions 13,607.6 4,963.7 Corporate bonds issued 1,544.4 2,794.8 Other liabilities 6,803.7 3,596.4 TOTAL LIABILITIES 154,705.9 102,808.7 SHAREHOLDERS’ EQUITY 22,638.6 12,857.4 TOTAL LIABILITIES + SHAREHOLDERS’ EQUITY 177,344.5 115,666.1

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

with our report dated 08/08/2019

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

Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

REPORTING SUMMARY FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2019

b) b) Summary comparative consolidated income/loss

Information for periods ended June 30, 2019, 2018 and 2017:

Consolidated Statement of Income (In Millions of Pesos) 2Q19 2Q18 2Q17 Interest income/loss 13,002.8 5,440.2 4,310.9 Fee income/loss 2,157.7 1,674.4 1,317.5 Net gain on financial instruments measured at fair value through profit or 751.8 332.7 326.0 loss Gold and foreign currency quoted price difference 965.0 385.4 273.5 Other operating income 2,435.0 656.1 793.9 Charge for loan losses (2,193.3) (770.4) (300.0) Net operating income 17,119.0 7,718.4 6,721.8 Administrative expenses (7,032.2) (4,777.5) (4,147.7) Operating income 10,086.8 2,940.9 2,574.0 Gain/loss on associates and joint ventures 446.7 185.6 86.7 Income before tax relating to continuing operations 10,533.5 3,126.5 2,660.8 Income tax relating to continuing operations (3,497.9) (988.9) (942.6) Income for the period 7,035.6 2,137.6 1,718.2

Statement of other comprehensive income (In Millions of Pesos) 2Q19 2Q18 2Q17 Exchange differences on translation of financial statements 37.4 86.3 5.9 Gain/loss on financial instruments carried at fair value with changes (52.3) (52.2) 9.3 through OCI Total other comprehensive income (14.9) 34.1 15.2

Total comprehensive income 7,020.7 2,171.7 1,733.4

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 08/08/2019

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

Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

REPORTING SUMMARY FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2019 c) Comparative consolidated statement of cash flows

Information for periods ended June 30, 2019, 2018 and 2017:

Consolidated Statement of Cash Flows (In Millions of Pesos) 6/30/2019 6/30/2018 6/30/2017 Cash flows provided by operating activities 2,460.2 3,783.1 48.4 Cash flows (used in)/provided by investment activities (93.9) 74.7 ( 79.1) Cash flows (used in)/provided by financing activities ( 3,499.5) (1,649.0) 118.8 Financial and Holding gains/losses on Cash and cash equivalents 2,077.0 3,104.1 574.1 Total cash flows provided in the period 943.8 5,312.9 662.2 d) Summary of statistical data

Summary of statistical data Item 6/30/2019 6/30/2018 6/30/2017 Number of time deposit transactions – Individuals 87,051 83,911 79,680 Number of time deposit transactions – Entities 3,768 2,690 2,709 Number of loan transactions – Individuals 1,109,643 1,130,052 1,049,340 Number of loan transactions – Entities 41,590 98,274 72,826 Number of client service points 210 206 204 Number of automatic teller machines (ATMs) 610 601 588 Number of self-service terminals (SSTs) 398 389 370 Payroll 3,384 3,361 3,391

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 08/08/2019

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

Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

REPORTING SUMMARY FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2019

Breakdown As of June 30: 2019 2018 2017

Profitability Ratios Return on average assets (1) 6.8% 3.7% 4.6% Return on average shareholders’ equity (2) 57.5% 32.8% 31.4% Interest and fee margin ratios Total financial margin (interest income-loss/average assets) 15.5% 11.0% 11.3% Margin on net services (fee income / Average Assets) (3) 2.5% 3.4% 3.7% Total margin (total revenues / average assets) (4) 18.1% 14.4% 15.0% Net fee income on net total revenues (4) 14.0% 23.4% 24.4% Shareholders’ Equity Ratios Shareholders' equity on total assets 12.8% 11.1% 13.3% Financial standing (shareholders' equity on total liabilities) 14.6% 12.5% 15.3% Total liabilities as a multiple of shareholders' equity 6.8 8.0 6.5 RPC on risk-weighted assets (5) 16.4% 11.8% 12.9% Portfolio Quality Ratio Non-performing portfolio on financing (before allowances) (6) 3.3% 1.7% 1.3% Allowances on non-performing financing portfolio (6) 177.6% 199.1% 239.7% Cost of Risk (7) 5.6% 2.4% 1.3% Efficiency Ratio Total expenses on total net revenues (4) 35.4% 52.4% 52.5% Net fee income on administrative expenses 39.6% 44.7% 46.6% Liquidity Ratios Liquid Assets on deposits (8) 68.7% 46.0% 29.7% Loans (net of allowances) on assets 44.7% 59.3% 59.0% Deposits on liabilities 79.2% 80.3% 80.0% Loans on deposits 64.7% 83.1% 85.2% Fixed assets to equity (9) 26.1% 20.0% 24.6%

References:

(1) Defined as the quotient between net year-over-year income and average assets.

(2) Defined as the quotient between net year-over-year 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 08/08/2019

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

Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

REPORTING SUMMARY FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2019

e) Outlook

The international scenario expects moderate global growth and narrower expansion reaching a 3.2% rate in 2019, and 3.5% by next year.

In addition, tensions in the commercial relationship between the USA and China continue, now fueled by the tariff increase applied by both countries to some imports, and the climate of uncertainty over Europe brought about by the Brexit.

In the meantime, emerging and developing economies are expected to grow by 4.1% this year, and 4.7% by 2020.

In Latin America the economy has slowed down, thus, the expected growth rate for 2019 is barely 0.6%. However, a rebound is expected to take place by 2020 raising the growth rate to 2.3%.

In Argentina, the economy contracted during the early months of 2019, although at a slower pace than in the previous year. Some growth indicators are expected by early 2020, and the economy is expected to recover during the remaining year.

Banco Patagonia remains true to its goal of being among the major private banks operating in the financial system. To that aim, its keeps working on strategic projects related to the development of the business, client service through different channels, and strengthening its presence in all provinces of Argentina.

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 Entity's business

a) Specific and significant legal regimes that entail the contingent loss or acquisition of legal benefits.

None.

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 08/08/2019

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

Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

REPORTING SUMMARY FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2019

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 Entity’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 With CER With no With With no (In thousands of pesos) interest Adjustme interest CER CER clause nt Clause clause interest interest Loans and other financing facilities 48,108,052 144 - 31,203,195 - TOTAL 48,108,052 144 - 31,203,195 -

Local currency Foreign currency Item With CER With no With With no Kind (In thousands of pesos) interest Adjustment interest interest interest clause Clause clause clause clause Deposits and Liabilities Deposits 70,949,515 - 12,939,014 36,648,042 2,044,353 - Liabilities measured at fair value with - - - - - 34,353 changes through profit or loss Derivative instruments - - 96,399 - - - Repo transactions 1,615,832 - - - - - Other financial liabilities 261,297 - 4,810,306 42,054 3,182,693 - Financing facilities received from the 1,319,450 - 10,328 12,277,823 126,372 - BCRA and other financial institutions Corporate bonds issued 1,544,386 - - - - - TOTAL 75,690,480 - 17,856,047 48,967,919 5,353,418 34,353

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 08/08/2019

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

Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

REPORTING SUMMARY FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2019

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 34 to the separate financial statements of the Entity.

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 6/30/2019 Financing Directors and relatives 1,933 2,504 Supervisory auditors and relatives 666 674 TOTAL 2,599 3,178

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.

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 08/08/2019

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

Translation from the original prepared in Spanish for publication in Argentina

BANCO PATAGONIA S.A.

REPORTING SUMMARY FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2019

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.

9. Insurance taken in relation to tangible assets.

Property insured Amount Book Risk In thousands of pesos insured value Fraud, theft, security deposit Cash, checks, and securities 1,697,932 3,708,757 boxes, and transportation Buildings, machines, equipment, furniture, Fire, vandalism, and earthquake 9,252,416 5,503,455 fixtures, and works of art Cars All risk and third-party insurance 28,813 13,436

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.

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 43 - “Distribution of earnings and restrictions” to the Consolidated Financial Statements of the Entity.

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 08/08/2019

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

Translation from the original prepared in Spanish for publication in Argentina

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.] 30-50000661-3 City of Buenos Aires

I. Report on the financial statements We have reviewed the accompanying condensed interim separate financial statements of Banco Patagonia S.A.(the “Bank”), which include the condensed interim separate statement of financial position as of June 30, 2019, the condensed interim separate statements of income, other comprehensive income, changes in shareholders’ equity and cash flows for the six-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 condensed interim consolidated statement of financial position as of June 30, 2019, the condensed interim consolidated statements of income, other comprehensive income, changes in shareholders’ equity and cash flows for the six-month period then ended, and explanatory notes and exhibits.

The balances and other information as of December 31, 2018, and for the six-month period ended June 30, 2018, are an integral part of the above mentioned financial statements and, therefore, shall be considered in the light of these financial statements.

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 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. 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.

III. Supervisory Audit Committee’s responsibility Our responsibility is to express a conclusion on the accompanying consolidated and separate condensed interim financial statements based on our review accordance with supervisory audit rules in force. To perform our professional task on the documents mentioned in paragraph I, we have reviewed the audit conducted by the firm KPMG, in their capacity as external auditors, who issued their report on August 8, 2019, 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. 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 financial statements mentioned in section I.

Translation from the original prepared in Spanish for publication in Argentina

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 August 8, 2019, 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 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, which are described in Note 2 to the accompanying condensed financial statements mentioned in section I.

V. Emphasis of matter Without further modifying our conclusion, we draw users’ attention to the information disclosed in the notes to the accompanying consolidated and separate condensed interim financial statements, which should be considered for the interpretation thereof: a) as explained in notes 2.a) and 2.1.a) to the accompanying separate and consolidated financial statements, they have been prepared by the Entity’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; However, the Entity has quantified the impact as of June 30, 2019 in accordance with the IFRS 9, as indicated such note; and b) as explained in notes 2.b) to the separate financial statements and 2.1.b) and 3 to the accompanying condensed consolidated financial statements, although as of June 30, 2019, the conditions for the restatement of financial statements in constant currency set forth by IAS 29 are met, as provided for by BCRA Communication “A” 6651, the Entity has not applied such restatement. The existence of an inflationary context affects the Entity’s financial position and results of operations and, therefore, the inflation impact may distort the financial information, which should be considered in the interpretation of the information provided by the Entity in these accompanying condensed financial statements in respect of its financial position, comprehensive income and cash flows. The Entity has estimated the impact as of June 30, 2019, as per the IFRS 29 as explained in Note 2 and 3 to the separate and consolidated financial statements, respectively.

Translation from the original prepared in Spanish for publication in Argentina c) As explained in notes 2.c) and 15 to the separate financial statements and notes 2.1.c) and 16 to the consolidated financial statements, by virtue of the partial sale of the shares held in Prisma Medios de Pago S.A., the remaining shareholding was reclassified in line “investments in equity instruments” and was measured at fair value with changes through profit or loss, based on a valuation report on the Company performed by independent professionals, to which the valuation adjustment set by the BCRA was deducted. The accounting criterion applied departs from the provisions of IFRS 9 as to the measurement of equity instruments measured at fair value.

VI. Report on other legal and regulatory requirements In compliance with legal provisions in force, we report that:

1. In performing our legal supervisory duties, during the six-month period ended June 30, 2019, 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.

2. The accompanying separate and consolidated financial statements of Banco Patagonia S.A. mentioned in section I above have been transcribed into the Inventory Book, and arise from the Entity’s accounting records, which, in their formal aspects, are kept pursuant to the legal provisions in force.

3. As of June 30, 2019, the Entity records the minimum shareholders’ equity and counterparty required by the Argentine Securities Commission (CNV), as mentioned in Notes 36 and 51 to the accompanying separate and consolidated financial statements, respectively.

City of Buenos Aires, August 8, 2019.

By Supervisory Committee Mónica M. Cukar Regular Supervisory Auditor Public Accountant (UBA) C.P.C.E.C.A.B.A. T° 147 F° 66