EX-99.1 3 exh_99-1.txt PRESS RELEASE Grupo Financiero/Galicia FOR IMMEDIATE RELEASE For more information contact: Peter Richards Managing Director Telefax: (5411) 4343-7528 prichards@gfgsa.com investorelations@gfgsa.com www.gfgsa.com GRUPO FINANCIERO GALICIA S.A. REPORTS FINANCIAL RESULTS FOR ITS FOURTH QUARTER ENDED DECEMBER 31, 2002 o (Buenos Aires, Argentina, February 20, 2003) - Grupo Financiero Galicia S.A. ("Grupo Galicia", "GFG") ( Buenos Aires Stock Exchange: GGAL/NASDAQ: GGAL) today announced its consolidated financial results for the fourth quarter of fiscal year 2002, ended December 31, 2002. Net Income for the fiscal year ended December 31, 2002 o Net loss for the fiscal year ended December 31, 2002, was Ps. 1,458.8 million, or Ps. 1.335 per share, equivalent to Ps. 13.354 per ADS, taking into account the total number of shares outstanding as of December 31, 2002. o Grupo Galicia's consolidated income statement includes the "Absorption Ad Referendum of the Shareholders' Meeting" ( of Banco Galicia) account, according to the Central Bank's Communique "A" 3703. This classification does not change the GFG's consolidated results since it would have been compensated through a higher Banco Galicia's stake valuation. Net loss for the quarter ended December 31, 2002 o Net loss for the fourth quarter ended December 31, 2002, was Ps. 389.4 million, or Ps. 0.356 per share, equivalent to Ps. 3.560 per ADS, taking into account the total number of shares outstanding as of December 31, 2002. These results were mainly generated by those of Banco Galicia which has continued to be the main source of the company's results. o Grupo Galicia's financial statements for and as of December 31, 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 December 30, 2002, by using the Wholesale Price Index (IPIM). o Table below shows results per share information, based on Grupo Galicia's financial statements.
In constant pesos of December 31, 2002 ------------------------------------------------------------------------------------------------------------------------- FY 2002 FY 2001 twelve months ended at: -------------------------- ---------------------------- Earnings per Share 12/31/02 12/31/01 12/31/02 12/31/01 ------------------------------------------------------------------------------------------------------------------------- Total Average Shares (in thousands) 1,092,407 1,092,407 1,092,407 1,092,407 Book Value per Share 1.487 2.816 1.487 2.816 Book Value per ADS(*) 14.870 28.165 14.870 28.165 Earnings per Share (0.356) (0.026) (1.335) 0.240 Earnings per ADS (*) (3.560) (0.260) (13.354) 2.400 --------------------------------------------------------------------------------------------------------------------------
Fourth quarter 2002 and twelve months ended at December 2002 figures were adjusted by using an index of 2.1844 (*) 1 ADS = 10 ordinary shares o Grupo Galicia's fourth quarter net income represents an annualized return of (4.94%) on average assets and (83.44%) on average shareholders' equity.
------------------------------------------------------------------------------------------------------------------------- FY 2002 FY 2001 twelve months ended at: -------------------------- ---------------------------- Profitability 4 Q 4 Q 12/31/02 12/31/01 12/31/02 12/31/01 ------------------------------------------------------------------------------------------------------------------------- Return on Average Assets (*)(1) (4.94) (0.45) (6.34) 0.90 Return on Average Shareholders Equity (*)(2) (83.44) (3.58) (60.51) 8.67 -------------------------------------------------------------------------------------------------------------------------
(*) Annualized. o Table below shows the Grupo Financiero Galicia's income statement for the fiscal year 2002, without consolidation. In millions of constant pesos of December 31, 2002 -------------------------------------------------------------------------------- Twelve months ended at ------------------------- ------------------------- 12/31/2002 12/31/2001 -------------------------------------------------------------------------------- Income from equity investments (1,427.47) 270.64 Administrative expenses (11.22) (10.48) Net other income 0.54 0.92 Financial results 38.09 1.17 Income tax (58.73) - Net income for the period (1,458.79) 262.25 -------------------------------------------------------------------------------- 2 o 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 September 2002 and the company's goodwill amortization. The "Profit (loss) from Galicia Warrants" line includes the company's results as of October 2002 and the company's goodwill amortization The "Other Income GFG" line includes financial results, and losses due to inflation exposure.
In millions of December 31, 2002 constant pesos ---------------------------------------------------------------------------------------------------------- FY 2002 Twelve months ended at Net Income by Business --------------------------------------------------- --------------------------------------------------- 4th Q 3rd Q 12/31/2002 12/31/2001 ---------------------------------------------------------------------------------------------------------- Income from stake in Banco Galicia (93.58%) (348.30) (312.90) (1,427.50) 262.2 Profit (loss) from "Net Investment" (87.5%) (1.70) (0.50) (6.70) (2.70) Profit (loss) from "Sudamericana Holding" (87.5%) (3.20) (3.00) (4.40) (0.50) Profit (loss) from "Galicia Warrants" (87.5%) (1.00) (0.20) (2.20) (0.30) Other Income GFG 21.40 (18.10) 40.70 3.60 Income tax (56.60) (1.60) (58.70) 0.00 Net Income for the period (389.40) (336.40) (1,458.80) 262.30 ----------------------------------------------------------------------------------------------------------
o Banco Galicia's financial statements do not include the consolidation with Banco Galicia Uruguay S.A. and Banco de Galicia (Cayman) Ltd. since the quarter ended March 31, 2002. Recent developments o Grupo Financiero Galicia's web site (www.gfgsa.com) was awarded as the Best Investor Relations Site of Argentina at the "LatinFinance Awards 2003" edition. This prize adds to the two distinctions received in the 2002 edition. CONFERENCE CALL On Friday, February 21 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 2604 If you are unable to participate in the call, a replay will be available from Friday, February 21 at 3:00 PM Eastern Standard Time until Monday, February 24 at 12:00 PM Eastern Standard Time, dialing (719) 457 0820, passcode: 645006. 3 Grupo Financiero Galicia S.A. Figures in this table were restated in constant pesos as of December 2002 by using an index of 0.9853 for September 2002, 1.1142 for June 2002, 1.6231 for March 2002 and 2.1844 for December 2001 SELECTED FINANCIAL INFORMATION - CONSOLIDATED DATA (*)
------------------------------------------------------------------------------------------------------------------- 12/31/02 09/30/02 06/30/02 03/31/02 12/31/01 ------------------------------------------------------------------------------------------------------------------- CASH AND DUE FROM BANKS 541.4 457.5 568.0 446.4 1,130.0 GOVERNMENT AND CORPORATE SECURITIES 1,812.8 4,293.6 2,271.0 519.4 283.8 LOANS 9,501.6 9,849.5 10,829.4 16,275.4 19,933.4 OTHER RECEIVABLES RESULTING FROM FINANCIAL BROKERAGE 9,162.7 7,984.5 12,006.3 11,086.9 3,800.1 EQUITY IN OTHER COMPANIES 103.4 86.6 90.3 90.9 148.4 BANK PREMISES AND EQUIPMENT, MISCELLANEOUS AND INTANGIBLE ASSETS 1,047.5 1,094.7 1,203.9 1,255.1 1,343.4 OTHER ASSETS 364.4 382.7 469.9 594.0 997.6 TOTAL ASSETS 22,533.8 24,149.1 27,438.8 30,268.1 27,636.7 DEPOSITS 4,692.0 5,528.5 5,948.6 8,744.7 13,386.1 - Non-Financial Government Sector 7.8 3.5 5.3 8.6 25.2 - Financial Sector 2.9 2.1 1.5 4.5 38.5 - Non-Financial Private Sector and Residents Abroad 4,681.3 5,522.9 5,941.8 8,731.6 13,322.4 - Current Accounts 732.2 845.7 816.9 2,571.4 1,848.4 - Savings Accounts 342.4 326.4 480.8 1,008.9 3,212.6 - Time Deposits 2,169.9 1,740.9 1,821.6 533.6 6,876.8 - Investment Accounts 0.0 0.0 0.0 0.0 176.1 - Other 1,035.7 1,895.8 2,286.5 4,400.0 1,077.9 - Accrued interest and quotation differences payable 401.1 714.1 536.0 217.7 130.6 OTHER BANKS AND INTERNATIONAL ENTITIES 3,356.7 3,700.9 4,454.3 5,242.5 1,992.0 NEGOTIABLE OBLIGATIONS 1,878.8 2,052.1 1,910.8 2,353.5 1,833.1 OTHER LIABILITIES 10,898.7 10,770.1 12,673.1 11,324.7 7,091.8 MINORITY INTERESTS 83.1 90.1 108.2 182.8 257.0 TOTAL LIABILITIES 20,909.3 22,141.7 25,095.0 27,848.2 24,560.0 SHAREHOLDERS' EQUITY 1,624.5 2,007.4 2,343.8 2,419.9 3,076.7 INFLATION AND EXCHANGE RATE Retail Price Index (%) (**) 1.66 7.03 18.97 9.68 (0.84) Wholesale Price Index (%) (**) (1.47) 13.08 45.68 34.28 (3.09) C.E.R. (%) (**) 2.46 9.77 19.22 4.81 0.00 Exchange Rate ($/U$S) (***) 3.3630 3.7267 3.8 3.0 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 December 2002 by using an index of 0.9853 for September 2002, 1.1142 for June 2002, 1.6231 for March 2002 and 2.1844 for December 2001 SELECTED FINANCIAL INFORMATION - CONSOLIDATED DATA (*)
------------------------------------------------------------------------------------------------------------------- Quarter ended: 12/31/02 09/30/02 06/30/02 03/31/02 12/31/01 ------------------------------------------------------------------------------------------------------------------- FINANCIAL INCOME 315.6 1,127.4 2,796.8 1,089.4 686.2 - Interest on Cash and Due from Banks 0.2 0.3 0.1 0.5 4.3 - Interest on Loans to the Financial Sector 27.6 34.4 17.3 5.7 19.7 - Interest on Overdrafts 86.3 (39.4) 57.6 29.6 72.9 - Interest on Notes 74.9 14.1 13.9 54.4 277.7 - Interest on Mortgage Loans 22.0 10.9 17.9 59.1 120.4 - Interest on Pledge Loans (4.0) 2.1 12.4 10.8 23.4 - Interest on Credit Card loans 29.2 38.2 27.8 80.3 106.4 - Interest on Other Loans 16.8 22.2 22.8 50.6 89.6 - On Other Receivables Resulting from Financial Brokerage 51.5 68.8 82.0 26.0 24.4 - Net Income from Government and Corporate Securities 23.8 161.5 227.5 167.3 (137.9) - Net Income from Guaranteed Loans-Decree 1387/01 (70.3) 75.1 98.5 118.5 70.7 - Adjustment by application of adjusting index 281.4 873.0 1,558.2 462.2 0.0 - Other (223.8) (133.8) 660.8 24.4 14.6 FINANCIAL EXPENSES 619.8 1,093.2 1,022.7 1,732.9 582.6 - Interest on Demand Accounts Deposits 2.1 9.8 3.7 1.5 21.6 - Interest on Saving Accounts Deposits 0.2 0.6 (0.3) 2.8 6.2 - Interest on Time Deposits 75.1 73.2 42.5 73.5 378.0 - Interest on Loans from Financial Sector 13.5 (8.4) 0.5 19.1 7.4 - For other Liabilities resulting from Financial Brokerage 265.3 67.2 126.6 188.3 102.3 - Other interest 192.1 657.9 599.9 120.9 18.1 - Net income /(loss) on options 0.0 0.3 0.0 0.0 0.2 - Adjustment by application of adjusting index 58.8 436.4 941.1 283.4 0.0 - Other 12.7 (143.8) (691.3) 1,043.4 48.8 GROSS BROKERAGE MARGIN (304.2) 34.2 1,774.1 (643.5) 103.6 PROVISIONS FOR LOAN LOSSES 127.5 230.4 859.5 192.0 394.0 INCOME FROM SERVICES, NET 79.1 81.0 55.2 155.7 242.9 MONETARY LOSS FROM FINANCIAL INTERMEDIATION 134.7 (491.8) (628.3) (439.9) 0.0 ADMINISTRATIVE EXPENSES 233.9 211.7 188.7 258.3 367.0 - Personnel Expenses 141.2 120.6 86.6 128.1 177.6 - Directors' and Syndics' Fees 0.5 0.3 0.5 1.8 (2.4) - Other Fees 6.9 4.4 5.1 6.2 11.3 - Advertising and Publicity 4.8 2.5 2.8 4.5 16.0 - Taxes 6.7 8.1 10.9 15.9 33.0 - Other Operating Expenses 57.5 69.1 70.8 85.7 105.7 - Other 16.3 6.7 12.0 16.1 25.8 MONETARY GAIN FROM OPERATING EXPENSES (0.3) 1.8 8.6 10.7 0.0 MINORITY INTEREST (102.1) 19.0 80.0 270.3 5.0 INCOME FROM EQUITY INVESTMENTS 58.9 (0.9) 543.3 (612.1) 14.7 NET OTHER INCOME 224.6 195.0 (692.3) (101.0) 375.7 MONETARY GAIN (LOSS) ON OTHER TRANSACTIONS (73.9) 211.1 (132.5) (164.3) 0.0 INCOME TAX 44.8 (18.8) 27.9 11.3 8.8 NET INCOME BEFORE THE ABSORPTION (389.4) (373.9) (68.0) (1,985.7) (27.9) ABSORPTION "AD-REFERENDUM" OF THE 0.0 37.5 1,320.7 0.0 0.0 SHAREHOLDERS' MEETING NET INCOME AFTER THE ABSORPTION (389.4) (336.4) 1,252.7 (1,985.7) (27.9)
(*) Grupo Financiero Galicia, consolidated with subsidiary companies (Art. 33 - Law 19550). 5 Grupo Financiero Galicia S.A. SELECTED FINANCIAL INFORMATION - CONSOLIDATED DATA (*) Twelve months ended at December 2001 figures were adjusted by using an index of 2.1844 -------------------------------------------------------------------------------- Twelve months ended: 12/31/02 12/31/01 -------------------------------------------------------------------------------- FINANCIAL INCOME 5,329.2 3,555.7 - Interest on Cash and Due from Banks 1.1 63.2 - Interest on Loans to the Financial Sector 85.0 95.5 - Interest on Overdrafts 134.1 254.2 - Interest on Notes 157.3 1,375.7 - Interest on Mortgage Loans 110.0 439.6 - Interest on Pledge Loans 21.3 90.8 - Interest on Credit Card loans 175.5 363.3 - Interest on Other Loans 112.4 372.0 - On Other Receivables Resulting from Financial Brokerage 580.1 108.3 - Net Income from Government and Corporate Securities 228.3 156.5 - Net Income from Guaranteed Loans-Decree 1387/01 221.8 70.9 - Adjustment by application of adjusting index 3,174.8 0.0 - Other 327.5 165.7 FINANCIAL EXPENSES 4,468.6 2,107.7 - Interest on Demand Accounts Deposits 17.0 52.4 - Interest on Saving Accounts Deposits 3.2 37.0 - Interest on Time Deposits 264.3 1,310.0 - Interest on Loans from Financial Sector 24.7 15.7 - For other Liabilities resulting from Financial Brokerage 647.4 430.1 - Other interest 1,570.8 84.9 - Net Income from Government and Corporate Securities 0.0 0.0 - Net income/(loss) on options 0.3 1.1 - Adjustment by application of adjusting index 1,719.7 0.0 - Other 221.2 176.5 GROSS BROKERAGE MARGIN 860.6 1,448.0 PROVISIONS FOR LOAN LOSSES 1,409.4 999.8 INCOME FROM SERVICES, NET 371.0 934.6 MONETARY LOSS FROM FINANCIAL INTERMEDIATION (1,425.3) 0.0 ADMINISTRATIVE EXPENSES 892.6 1,358.2 - Personnel Expenses 476.4 693.6 - Directors' and Syndics' Fees 3.1 35.1 - Other Fees 22.6 25.0 - Advertising and Publicity 14.6 54.1 - Taxes 41.6 83.8 - Other Operating Expenses 283.0 370.0 - Other 51.3 96.6 MONETARY GAIN FROM OPERATING EXPENSES 20.8 0.0 MINORITY INTEREST 267.2 (22.0) INCOME FROM EQUITY INVESTMENTS (10.8) 34.7 NET OTHER INCOME (373.7) 382.7 MONETARY GAIN (LOSS) ON OTHER TRANSACTIONS (159.6) 0.0 INCOME TAX 65.2 157.7 NET INCOME BEFORE THE ABSORPTION (2,817.0) 262.3 ABSORPTION "AD-REFERENDUM" OF THE SHAREHOLDERS' MEETING 1,358.2 0.0 NET INCOME AFTER THE ABSORPTION (1,458.8) 262.3 (*) Grupo Financiero Galicia, consolidated with subsidiary companies (Art. 33 - Law 19550). 6