Banco Hipotecario Sociedad Anónima

2.SCOPE OF THE LIMITED REVIEW Our review was conducted in accordance with prevailing auditing standards, as approved by the Professional Council of Economic Sciences of the City of Buenos Aires for limited reviews of interim financial statements and included the auditing procedures established by the Argentine Central Bank in its CONAU-1 Circular regarding cMinimum standards for external auditing procedures d for limited reviews of quarterly financial statements and consequently, did not include all the auditing procedures necessary for issuing an opinion on the Bank 9s net worth and financial position, results of its operations, changes in its shareholders 9 equity and source and application of funds for the nine-month periods ended September 30, 2001 and 2000, or on the consolidated net worth and financial position, consolidated results of its operations and source and application of funds at September 30, 2001 and 2000. 3.


LIMITED REVIEW REPORT In view of the limitations mentioned in point 2., we are not in a position to issue an opinion on the fairness with which the financial statements referred to in point 1., taken as a whole, present the information on the financial position of Banco Hipotecario Sociedad Anónima at September 30, 2001 and 2000, the results of its operations, changes in shareholders 9 equity and source and application of funds for the nine-month periods then ended, and the Bank 9s consolidated net worth at September 30, 2001 and 2000, consolidated statements of income and source and application of funds for the nine-month periods then ended. Nevertheless, based on the limited review we performed, we are in a position to report that all significant facts and circumstances of which we became aware as a result of the work done have been considered and disclosed in the interim financial statements reviewed and therefore, we have no observations to make, except for the valuation and revenue recognition criteria relating to listed government securities held in investment accounts and securities to be received for spot and forward purchases to be settled, as described in note 3 to the basic financial statements, criteria that are not in agreement with professional accounting standards. 4.


SPECIAL INFORMATION CALLED FOR BY EXISTING REGULATIONS As called for by the regulations in force, we report that: 4.1.The Financial Statements referred to in paragraph 1. have been transcribed into the cInventory and Financial Statement Book d which is kept, in all formal respects in conformity with the rules in force and with the Argentine Central Bank regulations. These financial statements have been prepared in all material respects, in compliance with the norms of Law 19,550 and those issued by the Argentine Central Bank and the National Securities Commission.


4.2.At September 30, 2001, the liabilities accrued in respect of employee withholdings and employer contributions towards the Integrated Pension and Survivors' Benefit System, according to the accounting records and supporting schedules, amounted to $1,027,147.73, which were not yet due at that date. Buenos Aires, November 7, 2001 HARTENECK, LOPEZ Y CIA (Partner) Professional Registration of the Firm CPCE Cap. Fed.


T° 1 F° 77 Gustavo Ariel Vidan Public Accountant (UBA) CPCE Cap. Fed. T° 159 F°64 (Free translation of the financial statements issued for Argentine purposes in accordance with local generally accepted accounting principles and stated in local currency) Banco Hipotecario Sociedad Anónima Daniel Perrotta Accounting Management BANCO HIPOTECARIO S.A.


Harold Freiman General Manager BANCO HIPOTECARIO S.A. Signed for purposes of identification with our report dated November 7, 2001 HARTENECK, LOPEZ Y CIA. (Partner) Miguel Kiguel President BANCO HIPOTECARIO S.A.


Ricardo Flammini On behalf of the Syndics 9 Committee Professional Registration of the Firm C.P.C.E. CAP. FED.


Tº 1 Fº 77 Ariel Vidan Public Accountant (U.B.A.) C.P.C.E. CAP. FED.


Tº 159 Fº 64 Balance Sheet For the nine-month period ended September 30, 2001 In comparative format with the same period of the prior year (In thousands of pesos) 20012000 ASSETS A.CASH AND DUE FROM BANKS160,90445,172 -Cash5,2776,778 -Banks and correspondents155,62738,394 B.GOVERNMENT AND CORPORATE SECURITIES (Schedule A and Note 2.3.) 95,959207,324 -Holdings in investment accounts (Note 3)26,836127,353 -Holdings of trading securities20,61479,971 -Unlisted government securities42,559- -Investments in listed corporate securities (Note 31)5,950- C.LOANS (Schedules B, C and D and Notes 2.4., 4 and 5) 2,890,5232,992,150 To the non-financial public sector183,393211,884 To the financial sector136,196119,785 To the non-financial private sector and residents abroad2,902,8933,246,336 -Mortgage loans2,852,5563,198,600 -Consumer loans -15 -Other2,4005,488 -Accrued interest and quotation differences receivable47,93742,233 Allowances (Schedule J and Notes 4, 6 and 7)(331,959)(585,855) D.OTHER RECEIVABLES RESULTING FROM FINANCIAL INTERMEDIATION (Schedules B, C and D and Notes 2.5 and 2.11) 1,544,6521,743,626 -Argentine Central Bank1,331267,433 -Amounts receivable for spot and forward sales to be settled (Note 14 and 16)234,641310,790 -Securities to be received under spot and forward purchases to be settled (Note 3, 14 and 16)755,560566,921 -Premiums on options bought-1,617 -Other receivables not included in the debtor classification regulations (Note 11)112,58597,056 -Other receivables included in the debtor classification regulations (Notes 10 and 11)446,367503,297 -Accrued interest receivable not included in the debtor classification regulations 11 -Accrued interest receivable included in the debtor classification regulations15,54217,886 -Allowances (Schedule J)(21,375)(21,375) (Free translation of the financial statements issued for Argentine purposes in accordance with local generally accepted accounting principles and stated in local currency) Banco Hipotecario Sociedad Anónima Daniel Perrotta Accounting Management BANCO HIPOTECARIO S.A. Harold Freiman General Manager BANCO HIPOTECARIO S.A. Signed for purposes of identification with our report dated November 7, 2001 HARTENECK, LOPEZ Y CIA.


(Partner) Miguel Kiguel President BANCO HIPOTECARIO S.A. Ricardo Flammini On behalf of the Syndics 9 Committee Professional Registration of the Firm C.P.C.E. CAP.


FED. Tº 1 Fº 77 Ariel Vidan Public Accountant (U.B.A.) C.P.C.E. CAP.


FED. Tº 159 Fº 64 Balance Sheet (Continued) For the nine-month period ended September 30, 2001 In comparative format with the same period of the prior year (In thousands of pesos) 20012000 ASSETS (Continued) F.EQUITY INVESTMENTS IN OTHER COMPANIES (Schedule E and Notes 2.6. and 2.4.) 71,83667,040 - In Financial Institutions45,83745,155 - Other25,99921,885 G.MISCELLANEOUS RECEIVABLES60,641100,539 -Debtors for sales of assets (Schedules B, C and D) 911,943 -Other (Note 12)84,050118,554 - Accrued interest on debtors for sales of assets receivable (Schedules B, C and D) 6870 - Other accrued interest receivable1,6981,771 -Allowances (Schedule J)(25,266)(21,799) H.BANK PREMISES AND EQUIPMENT (Schedule F and Note 2.7.) 49,64552,884 I.MISCELLANEOUS ASSETS (Schedule F and Note 2.7.) 17,40017,512 J.INTANGIBLE ASSETS (Schedule G and Note 2.9.) 9,0438,313 - Organization and development expenses9,0438,313 K.ITEMS IN PROCESS1,3353,064 TOTAL ASSETS4,901,9385,237,624 (Free translation of the financial statements issued for Argentine purposes in accordance with local generally accepted accounting principles and stated in local currency) Banco Hipotecario Sociedad Anónima Daniel Perrotta Accounting Management BANCO HIPOTECARIO S.A.


Harold Freiman General Manager BANCO HIPOTECARIO S.A. Signed for purposes of identification with our report dated November 7, 2001 HARTENECK, LOPEZ Y CIA. (Partner) Miguel Kiguel President BANCO HIPOTECARIO S.A.


Ricardo Flammini On behalf of the Syndics 9 Committee Professional Registration of the Firm C.P.C.E. CAP. FED.


Tº 1 Fº 77 Ariel Vidan Public Accountant (U.B.A.) C.P.C.E. CAP. FED.


Tº 159 Fº 64 Balance Sheet (Continued) For the nine-month period ended September 30, 2001 In comparative format with the same period of the prior year (In thousands of pesos) 20012000 LIABILITIES L.DEPOSITS (Schedules H and I and Notes 2.10 and 23) 321,671 451,156 Non-financial public sector13,82564,443 Financial sector1,0735,177 Non-financial private sector and residents abroad306,773381,536 -Checking accounts67,4846,915 -Savings accounts30,29944,985 -Time deposits (Note 16)186,244283,300 -Investment Accounts10,00031,070 -Other1,9301,897 - Accrued interest and quotation differences payable10,81613,369 M.OTHER LIABILITIES RESULTING FROM FINANCIAL INTERMEDIATION (Schedule I) 2,437,0922,723,338 -Banks and international entities25,00025,000 -Unsubordinated negotiable bonds (Note 13)1,216,2111,489,034 -Creditors for spot and forward purchases to be settled (Notes 3, 14 and 16)626,359524,590 -Securities to be delivered under spot and forward sales to be settled (Note14 and 16)228,875438,774 - Loans from domestic financial institutions103,98747,987 -Other (Notes 15, 16 and 17)198,027154,510 -Accrued interest and quotation differences payable38,63343,443 N.MISCELLANEOUS LIABILITIES44,42662,031 -Fees2,5071,029 -Other (Note 18)41,91961,002 O.PROVISIONS (Schedule J and Note 2.8.) 68,25863,113 Q.ITEMS IN PROCESS1,196 49 TOTAL LIABILITIES2,872,6433,299,687 SHAREHOLDERS' EQUITY (per corresponding statement) (Note 2.14.) 2,029,2951,937,937 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY4,901,9385,237,624 The accompanying notes and schedules are an integral part of these financial statements. (Free translation of the financial statements issued for Argentine purposes in accordance with local generally accepted accounting principles and stated in local currency) Banco Hipotecario Sociedad Anónima Daniel Perrotta Accounting Management BANCO HIPOTECARIO S.A. Harold Freiman General Manager BANCO HIPOTECARIO S.A.


Signed for purposes of identification with our report dated November 7, 2001 HARTENECK, LOPEZ Y CIA. (Partner) Miguel Kiguel President BANCO HIPOTECARIO S.A. Ricardo Flammini On behalf of the Syndics 9 Committee Professional Registration of the Firm C.P.C.E.


CAP. FED. Tº 1 Fº 77 Ariel Vidan Public Accountant (U.B.A.) C.P.C.E.


CAP. FED. Tº 159 Fº 64 Memorandum Accounts For the nine-month period ended September 30, 2001 In comparative format with the same period of the prior year (In thousands of pesos) 20012000 DEBIT8,566,7929,948,244 Contingent 3,590,1504,115,594 -Guarantees received3,368,9173,912,047 -Other guarantees not included in the debtor classification regulations156,724108,106 -Contingencies - re.


Contra items64,50995,441 Control4,702,3955,830,170 -Loans classified as non-recoverable508,519360,400 -Other4,193,7365,469,770 -Control 3 re. contra items140- Derivatives274,2472,480 - Other183,117- -Derivatives - re. Contra items91,1302,480 CREDIT8,566,7929,948,244 Contingent 3,590,1504,115,594 -Loans granted (unused balances) included in the debtor classification regulations (Schedules B, C and D) 55,509 95,441 -Other guarantees not included in the debtor classification regulations9,000 - -Contingencies 3 re.


Contra items3,525,6414,020,153 Control4,702,3955,830,170 -Other140- -Control 3 re. contra items4,702,2555,830,170 Derivatives274,2472,480 - cNotional d value of call options written91,130 - -Other-2,480 - Derivatives re. contra items183,117 - The accompanying notes and schedules are an integral part of these financial statements.


(Free translation of the financial statements issued for Argentine purposes in accordance with local generally accepted accounting principles and stated in local currency) Banco Hipotecario Sociedad Anónima Daniel Perrotta Accounting Man