EX-99 3 pressrelease.txt Grupo Financiero/Galicia FOR IMMEDIATE RELEASE For more information contact: Pablo Firvida VP Investor Relations Telefax: (5411) 4343-7528 pfirvida@gfgsa.com investorelations@gfgsa.com www.gfgsa.com GRUPO FINANCIERO GALICIA S.A. REPORTS FINANCIAL RESULTS FOR ITS THIRD QUARTER ENDED SEPTEMBER 30, 2003 >> (Buenos Aires, Argentina, November 11, 2003) - Grupo Financiero Galicia S.A. ("Grupo Galicia", "GFG") (Buenos Aires Stock Exchange: GGAL / NASDAQ: GGAL) today announced its consolidated financial results for the third quarter of fiscal year 2003, ended September 30, 2003. NET LOSS FOR THE QUARTER ENDED SEPTEMBER 30, 2003 >> Net loss for the third quarter ended September 30, 2003, was Ps. 68.2 million, or Ps. 0.062 per share, equivalent to Ps. 0.620 per ADS. 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, tables and exhibits as of September 30, 2003, have been restated for inflation until February 28, 2003 using the Wholesale Price Index (IPIM) published by the National Bureau of Statistics and Census (INDEC). >> As the reception of the financial statements of Banco Galicia Uruguay S.A. ("Galicia Uruguay") and its subsidiaries has been regularized, in the quarter ended September 30, 2003 the information that is exposed includes the consolidation on a line by line basis of the financial statements of Galicia Uruguay, Banco de Galicia (Cayman) Ltd. (in provisional liquidation) and its subsidiaries. In consequence, this quarter includes in each line of the consolidated income statement the results corresponding to the nine months of the aforementioned companies, not affecting the consolidated net income. >> The following table below shows results per share information, based on Grupo Galicia's financial statements. 1 Grupo Financiero/Galicia
In pesos ------------------------------------------------------------------------------------------------------------------------------------ FY 2003 FY 2002 Nine month ended at: ------- ------- ------------------------------------- 3 Q 3 Q Earnings per Share 09/30/03 09/30/02 09/30/03 09/30/02 ------------------------------------------------------------------------------------------------------------------------------------ Total Average Shares (in thousands) 1,092,407 1,092,407 1,092,407 1,092,407 Book Value per Share 1.358 1.854 1.358 1.854 Book Value per ADS (*) 13.580 18.540 13.580 18.540 Earnings per Share (**) (0.062) (0.345) (0.179) (0.987) Earnings per ADS (*)(**) (0.620) (3.450) (1.790) (9.870) ------------------------------------------------------------------------------------------------------------------------------------ (*) 1 ADS=10 ordinary shares (**) Nine months ended as of 09/30/02 incuding absorption regulated by Argentine Central Bank's Communique "A" 3703 and 3800.
>> Grupo Galicia's third quarter net income represents an annualized return of (1.21)% on average assets and (17.90)% on average shareholders' equity.
------------------------------------------------------------------------------------------------------------------------ FY 2003 FY 2002 nine months ended at: ----------- ---------- ------------------------------------ Profitability 3Q 3Q 09/30/03 09/30/02 % % % % ------------------------------------------------------------------------------------------------------------------------ Return on Average Assets (*) (1.21) (6.37) (1.12) (6.72) Return on Average Shareholders Equity (*) (17.90) (69.17) (16.76) (55.00) ------------------------------------------------------------------------------------------------------------------------ (*) Annualized.
>> The following table below shows a "Net Income by Business" analysis. It includes a breakdown on Grupo Financiero Galicia's result information by subsidiary. >> The "Income from stake in Sudamericana Holding" line includes the company's results as of June 2003 and the company's goodwill amortization. >> The "Income from stake in Galicia Warrants" line includes the company's results as of July 2003, the company's goodwill amortization and the impairment adjustment. >> The "Result adjustment by deferred tax in subsidiary companies" shows the income tax charge determined according to the deferred tax method on Banco Galicia's subsidiaries. This adjustment was not made in Banco Galicia because Argentine Central Bank regulations do not contemplate the application of the deferred tax method. 2 Grupo Financiero/Galicia >> The "Other Income GFG" line includes the gain in our investments as a result of the 4.11% increase in the exchange rate during the quarter.
In millions of September 30, 2003 constant pesos ------------------------------------------------------------------------------------------------------------------------------------ Net Income by Business FY 2003 Nine months ended at: ============================= ===================================== 3rd. Q 2nd. Q 09/30/03 09/30/02 ------------------------------------------------------------------------------------------------------------------------------------ Income from stake in Banco Galicia (93.58%) (61.0) (45.8) (144.3) (1,088.6) Income from stake in Net Investment (87.5%) (0.3) (3.6) (4.9) (5.1) Income from stake in Sudamericana Holding (87.5%) (3.8) (1.9) (10.1) (1.2) Income from stake in Galicia Warrants (87.5%) 0.2 (0.4) (3.2) (1.1) Result adjustment by deferred tax in subsidiary (5.7) (11.6) (16.1) - companies Other income GFG 2.4 (5.2) (16.7) 19.5 Income tax - - - (2.2) Net Income for the period (68.2) (68.5) (195.3) (1,078.7) ------------------------------------------------------------------------------------------------------------------------------------
CONFERENCE CALL On Friday, November 14 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) 867-0640 If you are unable to participate in the call, a replay will be available from Monday, November 17 at 3:00 P.M. Eastern Standard Time until Wednesday, November 19 at 12:00 P.M. Eastern Standard Time dialing (719) 457-0820, pass code: 583198. 3 Grupo Financiero/Galicia Grupo Financiero Galicia S.A. ----------------------------- SELECTED FINANCIAL INFORMATION - CONSOLIDATE DATA (*)
In millions of pescos ------------------------------------------------------------------------------------------------------------------------------------ 09/30/03 06/30/03 03/31/03 12/31/02 09/30/02 ------------------------------------------------------------------------------------------------------------------------------------ CASH AND DUE FROM BANKS 835.0 932.1 573.1 546.1 461.5 GOVERNMENT AND CORPORATE SECURITIES 2,812.0 1,521.1 1,643.6 1,828.6 4,330.8 LOANS 10,601.5 9,508.9 9,436.2 9,584.4 9,935.0 OTHER RECEIVABLES RESULTING FROM FINANCIAL 6,495.0 7,709.0 8,065.6 9,242.6 8,053.8 BROKERAGE EQUITY IN OTHER COMPANIES 88.3 94.0 94.2 104.3 87.4 BANK PREMISES AND EQUIPMENT, MISCELLANEOUS AND 1,426.2 1,435.5 1,477.3 1,056.7 1,104.2 INTANGIBLE ASSETS OTHER ASSETS 481.3 486.0 443.5 367.6 386.1 TOTAL ASSETS 22,739.3 21,686.6 21,733.5 22,730.3 24,358.8 DEPOSITS 5,471.7 5,048.1 4,766.6 4,732.9 5,576.5 -Non-Financial Government Sector 5.1 4.9 3.0 7.9 3.6 -Financial Sector 18.7 2.4 2.9 2.9 2.1 -Non-Financial Private Sector and Residents Abroad 5,447.9 5,040.8 4,760.7 4,722.1 5,570.8 -Current Accounts 1,086.7 917.2 738.2 738.6 853.1 -Savings Accounts 783.2 500.1 379.8 345.4 329.3 -Time Deposits 2,786.0 2,569.7 2,092.4 2,188.9 1,756.0 -Investment Accounts 1.0 1.0 0.0 0.0 0.0 -Other 575.1 765.4 1,135.4 1,044.6 1,912.0 -Accrued interest and quotation differences 215.9 287.4 414.9 404.6 720.3 payable OTHER BANKS AND INTERNATIONAL ENTITIES 2,865.0 2,804.6 2,968.2 3,386.0 3,733.0 NEGOTIABLE OBLIGAITONS 2,425.2 1,545.0 1,642.5 1,895.2 2,069.0 OTHER LIABILITIES 10,401.2 10,658.6 10,670.2 10,993.8 10,863.8 MINORITY INTERESTS 93.1 92.6 87.8 83.8 90.8 TOTAL LIBILITIES 21,256.2 20,148.9 20,135.3 21,091.7 22,334.0 SHAREHOLDERS' EQUITY 1,483.1 1,537.7 1,598.2 1,638.6 2,024.8 INFLATION AND EXCHANGE RATE Retail Price Index (%) (**) 0.51 (0.42) 2.49 1.66 7.03 Wholesale Price Index (%) (**) 1.20 (2.61) 0.25 (1.47) 13.08 C.E.R. (%) (**) 0.31 0.44 2.05 2.46 9.77 Exchange Rate ($/U$S) (***) 2.9110 2.8075 2.9625 3.3630 3.7267 (*) Grupo Financiero Galicia SA., consolidated with subsidiary companies (Art 33-Law 19550). Quarter ended 09/30/03 consolidated with Banco Galicia Uruguay and subsidiaries. (**) Variation within the quarter. (***) Last working day of the quarter.
4 Grupo Financiero/Galicia Grupo Financiero Galicia S.A. ----------------------------- SELECTED FINANCIAL INFORMATION - CONSOLIDATED DATA (*)
In millions of pescos ------------------------------------------------------------------------------------------------------------------------------- Quarter ended: 09/30/03 06/30/03 03/31/03 12/31/02 09/30/02 ------------------------------------------------------------------------------------------------------------------------------- FINANCIAL INCOME 386.8 299.4 667.7 318.4 1,137.2 -Interest on Cash and Due from Banks 0.1 0.0 0.0 0.2 0.3 -Interest on Loans to the Financial Sector 36.2 34.2 31.0 27.8 34.7 -Interest on Overdrafts 7.7 10.0 12.0 87.1 (39.7) -Interest on Notes 89.5 36.1 30.6 75.6 14.2 -Interest on Mortgage Loans 24.5 36.7 15.9 22.2 11.0 -Interest on Pladge loans 4.1 6.2 0.6 (4.0) 2.1 -Interest on Credit Card loans 32.1 31.3 29.9 29.5 38.5 -Interest on Other Loans 11.8 6.8 5.9 16.9 22.4 -Net Income form Government and Corporate Securities 15.7 20.5 35.1 24.0 162.9 -On Other Receivables Resulting from Financial Brokerage 22.5 24.4 34.7 51.9 69.4 -Net Income from Guaranteed Loans-Decree 1387/01 62.5 59.8 35.3 (70.0) 75.8 -Adjustment by application of adjusting index 66.3 67.1 396.1 283.9 880.6 -Other 13.8 (33.7) 40.6 (225.8) (135.0) FINANCIAL EXPENSES (38.8) 334.7 946.2 625.3 1,102.7 -Interest on Demand Accounts Deposits (5.6) 3.2 4.4 2.2 9.9 -Interest on Saving Accounts Deposits 0.8 0.7 0.6 0.2 0.6 -Interest on Time Deposits 38.3 72.8 61.2 75.8 73.8 -Interest on Loans from Financial Sector 1.5 1.5 1.8 13.6 (8.5) -For other Liabilities resulting from Financial Brokerage 83.3 79.4 87.1 267.6 67.8 -Other interest 75.6 107.0 121.5 193.8 663.6 -Net income /(loss) on options 0.0 0.0 0.0 0.0 0.3 -Adjustment by application of adjusting index 8.8 13.7 140.7 59.3 440.2 -Other (241.5) 56.4 528.9 12.9 (145.0) GROSS BROKERAGE MARGIN 425.6 (35.3) (278.5) (306.9) 34.5 PROVISIONS FOR LOAN LOSSESS 260.6 64.3 59.2 128.6 232.4 INCOME FROM SERVICES, NET 93.3 88.6 80.4 79.8 81.7 MONETARY LOSS FROM FINANCIAL INTERMEDIATION 0.0 0.0 (14.5) 135.9 (496.1) ADMINISTRATION 155.3 131.6 128.5 235.9 213.5 -Personal Expenses 67.3 54.7 55.1 142.4 121.7 -Directors' and Syndics' Fees 0.3 0.4 0.7 0.5 0.3 -Other Fees 10.0 3.1 2.3 7.0 4.4 -Advertising and Publicity 6.9 2.8 2.8 4.8 2.5 -Taxes 8.8 6.9 6.3 6.8 8.2 -Other Operating Expernses 50.1 54.2 52.3 58.0 69.7 -Other 11.9 9.5 9.0 16.4 6.7 MONETARY GAIN FROM OPERATING EXPENSES 0.0 0.0 0.1 (0.3) 1.8 MINORITY INTEREST 0.3 (4.3) (2.8) (103.0) 19.2 INCOME FROM EQUITY INVESTMENTS (2.0) (10.1) (9.0) 59.4 (0.9) NET OTHER INCOME (169.7) 91.6 354.5 226.5 196.7 MONETARY GAIN (LOSS) ON OTHER TRANSACTIONS 0.0 (13.3) 9.7 (74.5) 212.9 INCOME TAX (0.2) (10.2) 10.8 45.2 (19.0) NET INCOME BEFORE THE ABSORPTION (68.2) (68.5) (58.6) (392.8) (377.1) ABSORPTION "AD-REFEENDUMN" OR THE SHAREHOLDERS 0.0 0.0 0.0 0.0 37.8 NET INCOME AFTER THE ABSORPTION (68.2) (68.5) (58.6) (392.8) (339.3)
(*) Grupo Financiero Galicia, consolidated with subsidiary companies (Art. 33 - Law 19550). Quarter ended 09/30/03 consolidated with Banco Galicia Uruguay and subsidiaries (9 months) 5