2Q16 EARNINGS RELEASE Buenos Aires, Argentina, August 8, 2016 – Banco Patagonia S.A. (BCBA: BPAT; BOVESPA: BPAT33) reports on the consolidated income of 2nd quarter (2Q16) for financial year 2016. OUTSTANDING DATA At the end of the three-month period, ended June 30, 2016 Banco Patagonia recorded Assets in ARS 59.6237 billion, Loans in the amount of ARS 35.3196 billion, Deposits in ARS 41.8587 billion, and un Shareholders’ Equity of ARS 9.2047 billion and at the consolidated recorded Assets in 61.8770 billion, Loans in the amount of ARS 37.6295 billion and Deposits of ARS 42.4505 billion. Net income for the quarter totaled ARS 822.3 million, an increase of 9.1% compared to the 1Q16 (ARS 753.6 million) and 67.1% compared to the 2Q15 (ARS 492.2 million) with a ROE of 37.3% (return on average equity) and a ROA of 5.1% (return on average assets). Loans granted to the non-financial private sector on a consolidated basis amounted to ARS 36.8103 billion an increase of 15.0% and 46.1% compared to 1Q16 (ARS 31.9981 billion) and to 2Q15 (ARS 25.1957 billion), respectively. Consolidated total deposits amounted to ARS 42.4505 billion, a decrease of 0.7% compared to the 1Q16 (ARS 42.7571 billion) e an increase of 22.9% compared to 2Q15 (ARS 34.5445 billion). Regarding portfolio quality ratios, the non-performing portfolio ratio totaled 1.1% and coverage with provisions on the non-performing loan portfolio totaled 269.9%. The consolidated liquidity ratio totaled 42.9% (liquid assets on total deposits). In addition, the minimum consolidated capital is ARS 3.8044 billion in excess of the amount required by BCRA regulations. The Annual and Extraordinary Shareholders’ Meeting dated April, 27 of 2016, approved the payment of ARS 52.7 million as cash dividends for fiscal year 2015. Subsequently, on June 9 of 2016, by means of Communication “A” 5985, the BCRA introduced adjustments to the regulatory framework of “Distribution of earnings” which allow extending the amounts that can be distributed in cash. To this effect, the Ordinary General Shareholders’ Meeting held on July 25 of 2016 approved to increase the amount of dividends distributed in cash in ARS 1.6625 billion, reaching the total requested amount of ARS 1.7152 billion. Both requests are subject to prior authorization of the BCRA. As of June 30, 2016, Banco Patagonia S.A. employs 3,422 people, and has a wide network made up of 199 customer desks all over the country, distributed in the capital and major cities of each province. 2Q16 Earnings Release Page 1 FINANCIAL REPORTING For the purposes of drafting this Report, Banco Patagonia S.A. has consolidated line by line its balance sheet and profit and loss statement 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. 2Q16 GAINS (LOSSES) Banco Patagonia Consolidated Summarized Statement of Income Change (%) as of Figures In million pesos 2Q16 1Q16 2Q15 1Q16 2Q15 Intermediation Spread 1,969.8 1,692.0 1,174.1 16.4% 67.8% Uncollectibility Charge 136.7 44.5 89.2 207.2% 53.3% Net Fee Income 578.7 541.8 463.2 6.8% 24.9% Administrative Expenses 1,215.8 1,074.7 836.1 13.1% 45.4% Net Operating Income 1,196.0 1,114.6 712.0 7.3% 68.0% Miscellaneous Profits 101.5 82.7 66.9 22.7% 51.7% Income before Income Tax 1,297.5 1,197.3 778.9 8.4% 66.6% Income Tax 475.2 443.7 286.7 7.1% 65.7% Net Profit (Loss) of the Quarter 822.3 753.6 492.2 9.1% 67.1% Net income of the 2Q16 amounted to ARS 822.3 million, an increase of 9.1% (ARS 68.7 million) compared with 1Q16 (ARS 753.6 million) and 67.1% (ARS 330.1 million) compared to 2Q15 (ARS 492.2 million). a) Earnings per Share Banco Patagonia Consolidated Earnings per Share Change (%) as of Figures In million pesos 2Q16 1Q16 2Q15 1Q16 2Q15 Net Income for the Quarter 822.3 753.6 492.2 9.1% 67.1% Quarterly Average Number of Outstanding Shares 719.1 719.1 719.1 0.0% 0.0% Quarterly Average Number of Treasury Shares 0.0 0.1 0.2 (100.0%) (100.0%) Shares Issued at quarter-end 719.1 719.1 719.3 0.0% 0.0% Earnings per Share – Amounts in pesos 1.1435 1.0480 0.6845 9.1% 67.1% Earnings per BDR (*) – Amounts in pesos 22.8703 20.9595 13.6893 9.1% 67.1% Book value per share – Amounts in pesos 12.7995 11.7293 8.8196 9.1% 45.1% (*) Each BDR is equivalent to 20 common shares. 2Q16 Earnings Release Page 2 b) Net Financial Income Banco Patagonia Consolidated Gross Intermediation Spread Change (%) as of Figures In million pesos 2Q16 1Q16 2Q15 1Q16 2Q15 Financial Income 3,708.5 3,522.6 2,326.8 5.3% 59.4% Financial Expenses 1,738.7 1,830.6 1,152.7 (5.0%) 50.8% Total 1,969.8 1,692.0 1,174.1 16.4% 67.8% Gross Intermediation Margin to the 2Q16 totaled to ARS 1.9698 billion, an increase of 16.4% (ARS 277.8 million) compared to 1Q16 (ARS 1.692 billion) and 67.8% (ARS 795.7 million) compared to 2Q15 (ARS 1.1741 billion), as follows: Banco Patagonia Consolidated Financial Income Change (%) as of Figures In million pesos 2Q16 1Q16 2Q15 1Q16 2Q15 Interest on loans to the financial sector 85.3 69.7 46.1 22.4% 85.0% Interest on overdrafts 627.2 553.1 362.5 13.4% 73.0% Interest on documentary credits 763.5 767.1 517.6 (0.5%) 47.5% Interest on auto loans 166.6 135.0 93.8 23.4% 77.6% Interest on credit card loans 334.4 297.3 247.4 12.5% 35.2% Interest on other loans 464.6 423.7 347.8 9.7% 33.6% Interest on financial leasing 74.0 68.2 51.1 8.5% 44.8% Net income from government and private securities 963.7 929.8 517.5 3.6% 86.2% Exchange difference 103.1 195.2 76.8 (47.2%) 34.2% Other 126.1 83.5 66.2 51.0% 90.5% Total 3,708.5 3,522.6 2,326.8 5.3% 59.4% Financial income to the 2Q16 amounted to ARS 3.7085 billion, an increase of 5.3% (ARS 185.9 million) compared to 1Q16 (ARS 3.5226 billion), and 59.4% (ARS 1.3817 billion) compared to 2Q15 (ARS 2.3268 billion). Compared to 1Q16, the main variations of the loan portfolio were registered in the advance payments, credit cards and mortgage loans lines, which increased compared to previous quarter ARS 74.1 million (13.4%), ARS 37.1 million (12.5%) and ARS 31.6 million (23.4%), respectively. The result of foreign exchange differences declined to ARS 92.1 million (47.2%) as consequence of a lower result of a re-examination of position of foreign currency, due to lower volatility of the US dollar price during the 2Q16. Finally, the item “Others” increased by 51.0% (ARS 42.6 million) mainly due to a larger result on forward operations of foreign exchange. 2Q16 Earnings Release Page 3 Banco Patagonia Consolidated Financial Expenses Change (%) as of Figures In million pesos 2Q16 1Q16 2Q15 1Q16 2Q15 Interest on term deposits 1,344.6 1,436.7 888.4 (6.4%) 51.4% Other interest 15.4 18.3 31.2 (15.8%) (50.6%) Interest on other liabilities for financial 79.8 88.3 51.8 (9.6%) 54.1% intermediation Contribution to the deposit guarantee fund 18.2 69.6 51.3 (73.9%) (64.5%) Other 280.7 217.7 130.0 28.9% 115.9% Total 1,738.7 1,830.6 1,152.7 (5.0%) 50.8% The financial costs of the 2Q16 totaled ARS 1.7387 billion, a reduction of 5.0% (ARS 91.9 million) compared to 1Q16 (ARS 1.8306 billion) as consequence of lower interests for time deposits of ARS 92.1 million (6.4%). Furthermore, the contribution to the Deposit Guarantee Fund was reduced by 73.9% (ARS 51.4 million) as consequence of the reduction of the share contribution of the Argentine Central Bank. c) Net Fee Income Banco Patagonia Consolidated Net Fee Income Change (%) as of Figures In million pesos 2Q16 1Q16 2Q15 1Q16 2Q15 Deposits 291.9 279.6 233.9 4.4% 24.8% Credit and Debit Cards 286.7 256.0 185.4 12.0% 54.6% Related to Loans 131.7 118.9 96.2 10.8% 36.9% Safe-deposit boxes 25.9 25.5 21.7 1.6% 19.4% Foreign Trade 34.4 31.3 21.5 9.9% 60.0% Capital and Securities Market 21.7 19.7 13.1 10.2% 65.6% Other 68.7 73.0 62.5 (5.9%) 9.9% Fee income 861.0 804.0 634.3 7.1% 35.7% Fee expense (282.3) (262.2) (171.1) 7.7% 65.0% Total 578.7 541.8 463.2 6.8% 24.9% For the quarter, the net revenue from services amounted ARS 578.7, million, an increase of 6.8% (ARS 36.9 million) compared to 1Q16 (ARS 541.8 million) and 24.9% (ARS 115.5 million) compared to 2Q15 (ARS 463.2 million).