EX-99.1 2 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 SECOND QUARTER ENDED JUNE 30, 2004 (Buenos Aires, Argentina, Aug 11, 2004) - Grupo Financiero Galicia S.A. ("Grupo Galicia", "GFG") (Buenos Aires Stock Exchange: GGAL and GGAL6 /NASDAQ: GGAL) today announced its consolidated financial results for the second quarter of fiscal year 2004, ended June 30, 2004. NET LOSS FOR THE QUARTER ENDED JUNE 30, 2004 -------------------------------------------- Net loss for the first quarter ended June 30, 2004, was Ps. 0.8 million, or Ps. (0.001) per share, equivalent to Ps. (0.01) per ADS. This result was mainly generated by our participation in the gain of Ps. 2.6 million obtained by Banco de Galicia y Buenos Aires S.A. ("the Bank"), the interest accrued corresponding to the subordinated bond received as consideration in the capital increase (Ps. 14.4 million), the exchange difference on our dollar-dominated assets (Ps. 7.3 million), more than compensated by the personal assets tax and the registration of the income tax of the period (Ps. 12.7 million), and the adjustment of the deferred tax of Banco Galicia's subsidiaries (Ps. 7.8 million). Grupo Galicia's financial statements, comparative tables and exhibits, have been restated for inflation until February 28, 2003 using the Wholesale Price Index (IPIM) published by the National Bureau of Statistic and Census (INDEC). Beginning 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, the quarter ended September 30, 2003 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 table below shows results per share information, based on Grupo Galicia's financial statements. 1 GRUPO FINANCIERO / GALICIA
In pesos ------------------------------------------------------------------------------------------------ FY 2004 FY 2003 six months ended at: ------- ------- -------------------- Earnings per Share 2Q 2Q 06/30/04 06/30/03 06/30/04 06/30/03 ------------------------------------------------------------------------------------------------- Total Average Shares (in thousands) 1,164,451 1,092,407 1,128,429 1,092,407 Total Shares Outstanding (in thousands) 1,241,407 1,092,407 1,241,407 1,092,407 Book Value per Share 1.280 1.436 1.280 1.436 Book Value per ADS 12.800 14.360 12.800 14.360 Earnings per Share(*) (0.001) (0.062) (0.100) (0.053) Earnings per ADS(*) (0.010) (0.620) (1.000) (0.530) -------------------------------------------------------------------------------------------------- (*)1 ADS = 10 ordinary shares
Grupo Galicia's second quarter net income represents an annualized return of 0.11% on average assets and (0.22%) on average shareholders' equity.
Percentage ------------------------------------------------------------------------------------- FY 2004 FY 2003 six months ended at: ----------------- -------------------- Profitability 2Q 2Q 06/30/04 06/30/03 % % % % ------------------------------------------------------------------------------------- Return on Average Assets(*) 0.11 (1.19) (0.96) (0.42) Return on Average Shareholders Equity(*) (0.22) (17.43) (15.52) (7.38) ------------------------------------------------------------------------------------- (*) Annualized.
NET INCOME BY BUSINESS ---------------------- The table below shows a "Net Income by Business" analysis. It includes a breakdown of Grupo Financiero Galicia's results by subsidiary. The "Income from stake in Sudamericana Holding" line includes Grupo Galicia's participation in the company's results as of March 2004 and the company's goodwill amortization. The "Income from stake in Galicia Warrants" line includes Grupo Galicia's participation in the company's results as of April 2004 and the company's goodwill amortization. The "Adjustment by deferred tax" 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 (BCRA) regulations do not contemplate the application of the deferred tax method. The Other Income GFG includes the financial income related to the negotiable obligations issued by the Bank net of administrative expenses. 2 GRUPO FINANCIERO / GALICIA
in millions of June 30, 2004 constant pesos ------------------------------------------------------------------------------------------------ Net Income by Business FY 2004 Six month ended at ================= =================== 2nd.Q 1st.Q 06/30/03 06/30/02 ------------------------------------------------------------------------------------------------ Income from stake in Banco Galicia (93.58%) 2.4 (94.4) (92.0) (14.0) Income from stake in Net Investment (87.5%) (0.6) (0.5) (1.1) (4.6) Income from stake in Sudamericana Holding (87.5%) (1.0) (2.1) (3.1) (6.3) Income from stake in Galicia Warrants (87.5%) (0.2) 0.1 (0.1) (3.4) Adjustment result by deferred tax in subsidiary companies (7.8) (12.5) (20.3) (10.4) Other Income GFG 11.8 (2.6) 9.2 (19.1) Income tax (5.4) - (5.4) - Net Income for the period (0.8) (112.0) (112.8) (57.8) -------------------------------------------------------------------------------------------------
RECENT DEVELOPMENTS ------------------- Within the process of the restructuring of the foreign debt of the Bank, Grupo Galicia`s Shareholders' Meeting held on January 2nd, 2004, approved an increase in the capital stock of up to 149 million preferred shares mandatorily convertible into ordinary Class B shares at the first anniversary of issuance (each preferred share will be automatically converted into one class B share). The preferred shares are non-voting until they become ordinary shares and they are preferred in the case of a potential liquidation of Grupo Galicia. Those preferred shares were paid in cash, or with the Bank's subordinated bond. The subscription price was established at 0.49 $ per share based in two independent valuations on the bonds received. After the subscription period and the payment of the preemptive and accretion rights, the number of shares increased to 1,241,407,017. Since May 13, 2004 the preferred shares are listed in the Buenos Aires Stock Exchange and in the Cordoba Stock Exchange under the symbol GGAL6. CONFERENCE CALL Next week we will announce the date of the Conference Call to review those results. 3 GRUPO FINANCIERO / GALICIA Grupo Financiero Galicia S.A ---------------------------- SELECTED FINANCIAL INFORMATION - CONSOLIDATED DATA (*)
In millions of pesos ------------------------------------------------------------------------------------------------------------------------------- 06/30/04 03/31/04 12/31/03 09/30/03 06/30/03 ------------------------------------------------------------------------------------------------------------------------------- CASH AND DUE FROM BANKS 979.5 1,000.9 826.2 835.0 932.1 GOVERNMENT AND CORPORATE SECURITIES 2,096.4 2,747.7 2,865.2 2,777.3 1,487.7 LOANS 11,560.8 11,218.8 11,049.6 10,668.3 9,576.0 OTHER RECEIVABLES RESULTING FROM FINANCIAL BROKERAGE 6,337.3 6,130.4 6,197.4 6,495.0 7,709.0 EQUITY IN OTHER COMPANIES 80.8 83.8 87.1 88.3 94.0 BANK PREMISES AND EQUIPMENT, MISCELLANEOUS AND INTANGIBLE ASSETS 1,340.6 1,369.7 1,402.7 1,426.2 1,435.5 OTHER ASSETS 490.2 481.0 497.4 481.4 485.9 TOTAL ASSETS 22,885.6 23,032.3 22,925.6 22,771.5 21,720.2 DEPOSITS 6,017.6 5,859.0 5,584.0 5,471.7 5,048.1 - Non-Financial Government Sector 11.4 15.8 12.4 5.1 4.9 - Financial Sector 19.7 21.0 19.5 18.7 2.4 - Non-Financial Private Sector and Residents Abroad 5,986.5 5,822.2 5,552.1 5,447.9 5,040.8 - Current Accounts 1,452.4 1,371.3 1,163.7 1,086.7 917.2 - Savings Accounts 1,088.2 970.4 818.9 783.2 500.1 - Time Deposits 2,798.6 2,803.7 2,838.5 2,786.0 2,569.7 - Investment Accounts 0.3 0.2 0.2 1.0 1.0 - Other 477.8 494.0 533.6 575.1 765.4 - Accrued interest and quotation diferences payable 169.2 182.6 197.2 215.9 287.4 OTHER BANKS AND INTERNATIONAL ENTITIES 1,036.6 2,785.8 2,867.2 2,865.0 2,804.6 NEGOTIABLE OBLIGATIONS 3,822.9 2,282.6 2,392.9 2,425.2 1,545.0 OTHER LIABILITIES 10,312.1 10,625.8 10,492.4 10,401.2 10,658.5 MINORITY INTERESTS 107.9 99.9 97.9 95.2 94.8 TOTAL LIABILITIES 21,297.1 21,653.1 21,434.4 21,258.3 20,151.0 SHAREHOLDERS' EQUITY 1,588.5 1,379.2 1,491.2 1,513.2 1,569.2 INFLATION AND EXCHANGE RATE Retail Price Index(%)(**) 2.16 1.12 1.05 0.51 (0.42) Wholesale Price Index(%)(**) 2.11 1.54 3.42 1.20 (2.61) C.E.R.(%)(**) 2.08 0.76 0.83 0.31 0.44 Exchange Rate($/U$S)(***) 2.9607 2.8550 2.9330 2.9110 2.8075
(*) Grupo Financiero Galicia S.A., consolidated with subsidiary companies (Art.33 - Law 19550). Since quarter en ed 09.30.03 consolidated with Banco Galicia Uruguay (**) Variation within the quarter. (***) Last working day of the quarter. Source BCRA - Communique "A" 3500 - Reference Exchange Rate 4 GRUPO FINANCIERO / GALICIA Grupo Financiero Galicia S.A ---------------------------- SELECTED FINANCIAL INFORMATION - CONSOLIDATED DATA(*)
In millions of pesos --------------------------------------------------------------------------------------------------------------------- Quarter ended: 06/30/04 03/31/04 12/31/03 09/30/03 06/30/03 --------------------------------------------------------------------------------------------------------------------- FINANCIAL INCOME 486.4 337.4 327.8 385.6 301.2 - Interest on Cash and Due from Banks 0.0 0.0 (0.1) 0.1 0.0 - Interest on Loans to the Financial Sector 0.9 1.9 (0.3) 36.2 34.2 - Interest on Overdrafts 5.4 6.8 9.1 7.7 10.0 - Interest on Notes 26.6 20.4 36.6 89.5 36.1 - Interest on Mortgage Loans 16.9 17.3 17.7 24.5 36.7 - Interest on Pladge Loans 1.6 1.0 0.8 4.1 6.2 - Interest on Credit Card loans 41.6 38.0 34.2 32.1 31.3 - Interest on Other Loans 5.9 5.5 4.4 11.8 6.8 - Net Income from Government and Corporate Securities 33.5 32.3 57.7 14.5 22.3 - On Other Receivables Resulting from Financial Brokerage 15.6 15.7 17.1 22.5 24.4 - Net Income from Guaranteed Loans-Decree 1387/01 65.2 63.5 65.3 62.5 59.8 - Adjustment by application of adjusting index 181.4 112.4 47.3 66.3 67.1 - Adjustment by application of CVS 9.5 19.4 35.0 0.0 0.0 - Other 82.3 3.2 3.0 13.8 (33.7) FINANCIAL EXPENSES 272.0 331.1 261.8 (38.5) 335.8 - Interest on Demand Accounts Deposits 1.1 0.5 1.0 (5.6) 3.2 - Interest on Saving Accounts Deposits 0.9 1.2 0.9 0.8 0.7 - Interest on Time Deposits 17.6 25.2 29.5 38.3 72.8 - Interest on Loans from Financial Sector 2.2 1.3 2.0 1.5 1.5 - For other Liabilities resulting from Financial Brokerage 10.1 80.2 90.8 83.3 79.4 - Other interest 20.7 111.9 104.7 75.6 107.0 - Adjustment by application of adjusting index 217.5 35.5 24.3 8.8 13.7 - Other 1.9 75.3 8.6 (241.2) 57.5 GROSS BROKERAGE MARGIN 214.4 6.3 66.0 424.1 (34.6) PROVISIONS FOR LOAN LOSSES 41.0 55.6 (97.7) 260.6 64.3 INCOME FROM SERVICES, NET 107.2 100.3 99.1 93.3 88.6 ADMINISTRATIVE EXPENSES 158.0 146.9 148.0 155.3 131.6 - Personnel Expenses 70.0 66.8 66.4 67.3 54.7 - Directors' and Syndics' Fees 0.8 0.7 0.5 0.3 0.4 - Other Fees 5.3 4.3 5.9 10.0 3.1 - Advertising and Publicity 9.8 8.2 7.5 6.9 2.8 - Taxes 14.6 8.3 7.8 8.8 6.9 - Other Operating Expenses 45.5 46.6 48.0 50.1 54.2 - Other 12.0 12.0 11.9 11.9 9.5 MINORITY INTEREST (7.1) 2.4 (2.7) 0.4 (4.4) INCOME FROM EQUITY INVESTMENTS (1.1) 1.1 (1.5) (2.0) (10.1) NET OTHER INCOME (108.9) (18.4) (133.5) (169.7) 91.7 MONETARY GAIN (LOSS) ON OTHER TRANSACTIONS 0.0 0.0 0.1 0.0 (13.3) INCOME TAX 6.3 1.2 0.2 (0.2) (10.2) NET INCOME (0.8) (112.0) (23.0) (69.6) (67.8) (*) Grupo Financiero Galicia, consolidated with subsidiary companies ( Art. 33 - Law 19550). Quarter ended 09/30/03 consolidated with Banco Galicia Uruguay S.A. and subsidiaries (9 months)
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