EX-99.1 3 exh_991.txt PRESS RELEASE [Grupo Financiero Galicia Logo] FOR IMMEDIATE RELEASE For more information contact: Jose Luis Gentile Chief accounting officer Telefax: (5411) 4343-7528 jlgentile@gfgsa.com investorelations@gfgsa.com www.gfgsa.com GRUPO FINANCIERO GALICIA S.A. REPORTS FINANCIAL RESULTS FOR ITS THIRD QUARTER ENDED SEPTEMBER 30, 2002 >> (Buenos Aires, Argentina, December 30, 2002) - Grupo Financiero Galicia S.A. ("Grupo Galicia") ( Buenos Aires Stock Exchange: GGAL /NASDAQ: GGAL) today announced its consolidated financial results for the third quarter of fiscal year 2002, ended September 30, 2002. Net loss for the quarter ended September 30, 2002 >> Net loss for the third quarter ended September 30, 2002, was Ps. 379.5 million. This represents earnings per share for the period of Ps. 0.347, equivalent to Ps. 3.474 per ADS, taking into account the total number of shares outstanding as of September 2002. These results were mainly generated by those of Banco Galicia which has continued to be the main source of the company's results. >> Grupo Galicia's financial statements for and as of September 30, 2002, have been restated for inflation by using the Wholesale Price Index (IPIM) published by the National Bureau of Statistics and Census (INDEC), in accordance with Argentine Central Bank's Communique "A" 3702, Resolution No.240/02 of the Argentine Federation of Professional Councils in Economic Sciences and Resolution No.415/02 from the National Securities Commission. In order to facilitate comparison, prior periods' amounts shown in the tables and exhibits were restated in constant pesos of September 30, 2002, by using the Wholesale Price Index (IPIM). >> Tables below show results per share information, based on Grupo Galicia's financial statements.
In constant pesos of September 30, 2002 ---------------------------------------------------------------------------------------------- FY 2002 FY 2001 nine months ended at: Earnings per Share ----------------------- ----------------------- 09/30/02 09/30/01 09/30/02 09/30/01 ---------------------------------------------------------------------------------------------- Total Average Shares (in thousands) 1,092,407 1,092,407 1,092,407 1,092,407 Book Value per Share 1.865 2.884 1.865 2.884 Book Value per ADS (*) 18.650 28.840 18.650 28.840 Earnings per Share (**) (0.347) 0.071 (0.993) 0.270 Earnings per ADS (*) (3.474) 0.710 (9.930) 2.700 ---------------------------------------------------------------------------------------------- Third quarter figures were adjusted by using an index of 2.2169 (*) 1 ADS = 10 ordinary shares (**) Nine month results including the absorption
>> Grupo Galicia's third quarter net income represents an annualized return of (6.37%) on average assets and (69.17%) on average shareholders' equity.
---------------------------------------------------------------------------------------------- FY 2002 FY 2001 nine months ended at: Profitability ----------------------- ----------------------- 09/30/02 09/30/01 09/30/02 09/30/01 ---------------------------------------------------------------------------------------------- Return on Average Assets (*)(1) (6.37) 1.08 (6.72) 1.30 Return on Average Shareholders Equity(*)(2) (69.17) 9.92 (55.00) 12.92 ----------------------------------------------------------------------------------------------
(*) Annualized (1) According to Central Bank's Communiques "A" 3703 and "A" 3800, Return on Average Assets for the third quarter, 2002, was (5.76)%. (2) According to Central Bank's Communiques "A" 3703 and "A" 3800, Return on Average Shareholders' Equity for the third quarter, 2002, was (62.26)%. >> Table below shows a "Net Income by Business" analysis. It includes a breakdown on Grupo Financiero Galicia's information by subsidiary. The "Profit (loss) from Sudamericana Holding" line includes the company's results as of June 2002 and the company's goodwill amortization. The "Profit (loss) from Galicia Warrants" line includes the company's results as of July 2002 and the company's goodwill amortization The "Other Income GFG" line includes financial results, and losses due to inflation exposure.
In millions of September 30, 2002 constant pesos -------------------------------------------------------------------------------------------------------- FY 2002 Nine months ended at Net Income by Business ----------------------- ---------------------- 3rd Q 2nd Q 09/30/2002 09/30/2001 -------------------------------------------------------------------------------------------------------- Income from stake in Banco Galicia (93.58%) (355.64) (111.20) (2,473.64) 300.37 Profit (loss) from "Net Investment" (87.5%) (0.51) (4.22) (5.12) (2.41) Profit (loss) from "Sudamericana Holding" (87.5%) (3.03) (1.39) (1.19) (5.14) Profit (loss) from "Galicia Warrants" (87.5%) (0.25) (0.76) (1.17) (0.25) Other Income GFG (18.55) 49.20 19.58 1.95 Income tax (1.56) (0.63) (2.19) - Net Income for the period (379.54) (69.00) (2,463.73) 294.52 -------------------------------------------------------------------------------------------------------- Absorption "AD-REFERENDUM" of the Shareholders' Meeting (Com "A" 3800 - BCRA) 38.12 1,340.32 1,378.44 Net Income after the absorption (341.42) 1,271.32 (1,085.29) 294.52 --------------------------------------------------------------------------------------------------------
2 CONFERENCE CALL On Thursday, January 2 at 11.00 A.M. Eastern Standard Time (1.00 P.M. Buenos Aires Time), GFG will host a conference call to review these results. The call-in number is : (719) 457 2621 If you are unable to participate in the call, a replay will be available from Friday, January 3 at 2:00 PM Eastern Standard Time until Saturday, January 4 at 12:00 PM Eastern Standard Time, dialing (719) 457 0820, passcode: 168272. 3 Grupo Financiero Galicia S.A. Figures in this table were restated in constant pesos as of September 2002 by using an index of 1.13078, 1.64727 and 2.2169 for June, 2002, March 2002, and for the prior quarters respectively SELECTED FINANCIAL INFORMATION - CONSOLIDATED DATA (*)
----------------------------------------------------------------------------------------------------------------- 09/30/02 06/30/02 03/31/02 12/31/01 09/30/01 ----------------------------------------------------------------------------------------------------------------- CASH AND DUE FROM BANKS 464.3 576.4 453.0 1,146.8 2,282.2 GOVERNMENT AND CORPORATE SECURITIES 4,357.4 2,304.8 527.1 288.0 1,837.7 LOANS 10,103.9 10,990.4 16,517.4 20,229.9 19,205.6 OTHER RECEIVABLES RESULTING FROM FINANCIAL BROKERAGE 8,103.2 12,184.8 11,251.7 3,856.5 4,740.7 EQUITY IN OTHER COMPANIES 87.9 91.6 92.4 150.5 164.0 BANK PREMISES AND EQUIPMENT, MISCELLANEOUS AND INTANGIBLE ASSETS 1,111.0 1,221.8 1,273.8 1,363.4 1,201.5 OTHER ASSETS 388.5 477.0 602.8 1,012.4 915.7 TOTAL ASSETS 24,616.2 27,846.8 30,718.2 28,047.5 30,347.4 DEPOSITS 5,610.7 6,037.0 8,874.7 13,585.1 18,851.0 - Non-Financial Government Sector 3.6 5.4 8.7 25.5 270.9 - Financial Sector 2.1 1.5 4.6 39.0 8.9 - Non-Financial Private Sector and Residents Abroad 5,605.0 6,030.1 8,861.4 13,520.6 18,571.2 - Current Accounts 858.3 829.0 2,609.6 1,875.9 2,291.3 - Savings Accounts 331.3 487.9 1,023.9 3,260.4 1,964.4 - Time Deposits 1,766.8 1,848.7 541.5 6,979.0 13,045.9 - Investment Accounts 0.0 0.0 0.0 178.7 551.4 - Other 1,923.9 2,320.5 4,465.3 1,094.0 510.9 - Accrued interest and quotation differences payable 724.7 544.0 221.1 132.6 207.3 OTHER BANKS AND INTERNATIONAL ENTITIES 3,755.9 4,520.5 5,320.5 2,021.6 2,025.2 NEGOTIABLE OBLIGATIONS 2,082.6 1,939.2 2,388.5 1,860.4 2,062.2 OTHER LIABILITIES 11,038.4 12,861.7 11,493.0 7,197.2 3,994.0 MINORITY INTERESTS 91.4 109.8 185.6 260.7 264.1 TOTAL LIABILITIES 22,579.0 25,468.2 28,262.3 24,925.0 27,196.5 SHAREHOLDERS' EQUITY 2,037.2 2,378.6 2,455.9 3,122.5 3,150.9 INFLATION AND EXCHANGE RATE Retail Price Index (%)(**) 7.03 18.97 9.68 (0.84) (0.76) Wholesale Price Index (%)(**) 13.08 45.68 34.28 (3.09) (1.24) C.E.R. (%)(**) 9.77 19.22 4.81 0.00 0.00 Exchange Rate ($/U$S)(***) 3.7267 3.8 3.0 1.0 1.0
(*) Grupo Financiero Galicia S.A., consolidated with subsidiary companies (Art.33 - Law 19550). (**) Variation within the quarter. (***) Last working day of the quarter. 4 Grupo Financiero Galicia S.A. Figures in this table were restated in constant pesos as of September 2002 by using an index of 1.13078, 1.64727 and 2.2169 for June, 2002, March, 2002, and for the prior quarters respectively. SELECTED FINANCIAL INFORMATION - CONSOLIDATED DATA (*)
----------------------------------------------------------------------------------------------------------------- Quarter ended: 09/30/02 06/30/02 03/31/02 12/31/01 09/30/01 ----------------------------------------------------------------------------------------------------------------- FINANCIAL INCOME 1,144.2 2,838.4 1,105.6 696.4 1,065.7 - Interest on Cash and Due from Banks 0.3 0.1 0.5 4.4 13.1 - Interest on Loans to the Financial Sector 34.9 17.6 5.8 20.0 33.3 - Interest on Overdrafts (40.0) 58.5 30.0 74.0 64.7 - Interest on Notes 14.3 14.1 55.2 281.8 456.0 - Interest on Mortgage Loans 11.1 18.2 60.0 122.2 108.8 - Interest on Pledge Loans 2.1 12.6 11.0 23.7 23.3 - Interest on Credit Card loans 38.8 28.2 81.5 108.0 90.9 - Interest on Other Loans 22.5 23.1 51.4 90.9 87.1 - On Other Receivables Resulting from Financial Brokerage 69.8 83.2 26.4 24.8 37.7 - Net Income from Government and Corporate Securities 163.9 230.9 169.8 (139.9) 118.4 - Net Income from Guaranteed Loans-Decree 1387/01 76.2 100.0 120.3 71.8 0.0 - Adjustment by application of adjusting index 886.0 1,581.4 469.1 0.0 0.0 - Other (135.7) 670.5 24.6 14.7 32.4 FINANCIAL EXPENSES 1,109.5 1,037.9 1,758.7 591.3 562.7 - Interest on Demand Accounts Deposits 9.9 3.8 1.5 21.9 22.2 - Interest on Saving Accounts Deposits 0.6 (0.3) 2.8 6.3 6.7 - Interest on Time Deposits 74.3 43.1 74.6 383.6 353.6 - Interest on Loans from Financial Sector (8.5) 0.5 19.4 7.5 4.0 - For other Liabilities resulting from Financial Brokerage 68.2 128.5 191.1 103.8 99.3 - Other interest 667.7 608.8 122.7 18.4 35.0 - Net income/(loss) on options 0.3 0.0 0.0 0.2 0.2 - Adjustment by application of adjusting index 442.9 955.1 287.6 0.0 0.0 - Other (145.9) (701.6) 1,059.0 49.6 41.7 GROSS BROKERAGE MARGIN 34.7 1,800.5 (653.1) 105.1 503.0 PROVISIONS FOR LOAN LOSSES 233.8 872.3 194.9 399.9 295.1 INCOME FROM SERVICES, NET 82.3 56.0 158.0 246.5 223.7 MONETARY LOSS FROM FINANCIAL INTERMEDIATION (499.1) (637.6) (446.4) 0.0 0.0 ADMINISTRATIVE EXPENSES 214.8 191.5 262.1 372.5 334.0 - Personnel Expenses 122.4 87.9 130.0 180.2 171.4 - Directors' and Syndics' Fees 0.3 0.5 1.8 (2.4) 9.5 - Other Fees 4.5 5.2 6.3 11.5 6.9 - Advertising and Publicity 2.5 2.8 4.6 16.2 11.5 - Taxes 8.2 11.1 16.1 33.5 17.3 - Other Operating Expenses 70.1 71.8 87.0 107.3 91.8 - Other 6.8 12.2 16.4 26.2 25.6 MONETARY GAIN FROM OPERATING EXPENSES 1.8 8.7 10.9 0.0 0.0 MINORITY INTEREST 19.3 81.2 274.3 5.1 (7.3) INCOME FROM EQUITY INVESTMENTS (0.9) 551.4 (621.2) 14.9 (6.2) NET OTHER INCOME 197.7 (702.6) (102.5) 381.4 8.4 MONETARY GAIN (LOSS) ON OTHER TRANSACTIONS 214.2 (134.5) (166.7) 0.0 0.0 INCOME TAX (19.1) 28.3 11.5 8.9 15.1 NET INCOME BEFORE THE ABSORPTION (379.5) (69.0) (2,015.2) (28.3) 77.4 ABSORPTION "AD-REFERENDUM" OF THE SHAREHOLDERS' MEETING 38.1 1,340.3 0.0 0.0 0.0 NET INCOME AFTER THE ABSORPTION (341.4) 1,271.3 (2,015.2) (28.3) 77.4
(*) Grupo Financiero Galicia, consolidated with subsidiary companies (Art. 33 - Law 19550). 5