EX-99.1 2 ex_99-1.txt [GRAPHIC OMITTED]Grupo Financiero Galicia FOR IMMEDIATE RELEASE For more information contact: Pedro A. Richards Managing Director Telefax: (5411) 4343-7528 investorelations@gfgsa.com www.gfgsa.com GRUPO FINANCIERO GALICIA S.A. REPORTS FINANCIAL RESULTS FOR ITS FOURTH QUARTER AND FISCAL YEAR ENDED DECEMBER 31, 2007 (Buenos Aires, Argentina, February 14, 2008) - 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 2007, ended December 31, 2007. NET INCOME FOR THE FISCAL YEAR ENDED DECEMBER 31, 2007 o Net income for the fiscal year ended December 31, 2007 was Ps. 46.0 million or Ps. 0.037 per share, equivalent to Ps. 0.370 per ADS, taking into account the average shares outstanding during the fiscal year. o During the same period, Banco de Galicia y Buenos Aires S.A. ("the Bank") recorded a Ps. 177.3 million adjusted net income. After the amortization of amparo claims (Ps. 108.7) and the adjustment to the valuation of public-sector assets (Ps. 38.2), net income amounted to Ps. 30.4 million. o During the third quarter, Grupo Galicia exercised its preemptive rights in the Bank's share offering and subscribed 93.6 million shares in exchange for US$ 102.2 million of face value of notes due 2014 issued by the Bank and cash. To fund the cash subscription, Grupo Galicia took an US$ 80 million loan. As a result of this subscription, Grupo Galicia's interest in the Bank reached 94.66%. NET INCOME FOR THE QUARTER ENDED DECEMBER 31, 2007 o Net income for the quarter ended December 31, 2007 was Ps. 44.6 million or Ps. 0.036 per share, equivalent to Ps. 0.360 per ADS. o This result was mainly attributable to the income derived from our interest in the Bank (Ps. 48.7 million) and in Sudamericana Holding (Ps. 4.0 million), partially offset by financial expenses and administrative expenses for Ps. 7.7 million. 1 o The Bank recorded a Ps. 62.9 million adjusted net income, Ps. 37.8 million higher than in the same quarter of FY 2006. Excluding the Ps.11.5 million loss from the adjustment to the valuation of public-sector assets, net income during this quarter was Ps. 51.4 million. o The table below shows results per share information, based on Grupo Galicia's financial statements.
In pesos -------------------------------------------------- FY 2007 FY 2006 twelve months ended at: ---------------------- ------------------------ 4 Q 4 Q Earnings per Share 12/31/07 12/31/06 12/31/07 12/31/06 ------------------------------------ --------- -------- --------- ----------- Total Average Shares (in thousands) 1.241.407 1.241.207 1.241.407 1.240.932 Total Shares Outstanding 1.241.407 1.241.407 1.241.407 1.241.407 (in thousands) Book Value per Share 1,333 1,296 1,333 1,296 Book Value per ADS (*) 13,330 12,960 13,330 12,960 Earnings per Share 0,036 (0,074) 0,037 (0,015) Earnings per ADS (*) 0,360 (0,740) 0,370 (0,150)
---------- (*) 1 ADS = 10 ordinary shares o Grupo Galicia's fourth quarter net income represents an annualized return of 0.97% on average assets and of 10.97% on average shareholders' equity.
Percentages ------------------------------------------------- FY 2007 FY 2006 twelve months ended at: ------------------------------------------------- 4Q 4Q Profitability 12/31/07 12/31/06 12/31/07 12/31/06 ------------------------------------ --------- -------- --------- ----------- Return on Average Assets (*) 0,97 (1,45) 0,37 0,0004 Return onAverage Shareholders Equity (*) 10,97 (22,23) 2,86 (1,15)
---------- (*) Annualized. o The table below shows Grupo Financiero Galicia's income statement for fiscal year 2007, on a non consolidated basis, which includes the elimination of transactions with controlled companies. In millions of pesos ----------------------- Twelve months ended at ----------------------- 12/31/07 12/31/06 --------- -------- Income from equity investments 65,8 (81,2) Goodwill depreciation (0,5) (1,3) Administrative expenses (15,1) (10,6) Net other income (0,9) 1,6 Net financial income (0,2) 118,2 Income tax (3,1) (45,6) Net income for the year 46,0 (18,9) 2 NET INCOME BY BUSINESS o The table below shows a "Net Income by Business" analysis. It includes a breakdown of Grupo Financiero Galicia's results by subsidiary. o "Income from stake in Sudamericana Holding" includes the results from our interest in such company as of September 30, 2007. o "Income from Stake in Other Companies" includes the results from our interests in Net Investment, Galicia Warrants and Galval as of December 31, 2007. o The "Deferred Tax Adjustment" shows the income tax charge determined by Banco Galicia's subsidiaries, according to the deferred tax method. This adjustment was not made in Banco Galicia's financial statements because Argentine Central Bank's regulations do not contemplate the application of the deferred tax method. o "Other Income GFG" mainly includes the administrative expenses and the financial expenses.
in millions of pesos ------------------------------------------------- FY 2007 Twelve months ended at ------------------------------------------------- Net Income by Business 4th. Q 3rd. Q 12/31/07 12/31/06 ------------------------------------------------------- --------- --------- --------- --------- Income from stake in Banco Galicia (94.66%) (*) 48,7 7,1 29,1 (118,1) Income from stake in Sudamericana Holding (87.5%) 4,0 3,1 14,6 7,4 Income from stake in other companies 0,2 0,5 1,0 0,8 Deferred tax adjustment in Banco Galicia's subsidiaries (0,5) 2,7 7,9 9,3 Adjustment of treasury shares 0,0 - 0,0 -1 Other Income GFG (7,7) (8,5) (3,5) 128,0 Income tax (0,1) 2,0 (3,1) (45,7) Net Income for the period 44,6 6,9 46,0 (18,9)
---------- (*) Until August 2, 2007 stake in Banco Galicia was 93,6% CONFERENCE CALL On Tuesday, February 19 at 11:30 A.M. Eastern Standard Time (2:30 P.M. Buenos Aires Time), GFG will host a conference call to review this results. The call-in number is: (785) 830-1914 If you are unable to participate in the call, a replay will be available from Tuesday, February 19, 2008 at 3:30 P.M. Eastern Standard Time until Sunday, February 24, 2008 at 3:30 P.M. Eastern Standard Time dialing (719) 457-0820, pass code: 9413050. -------------------------------------------------------------------------------- This report is a summary analysis of Grupo Galicia's financial condition and results of operations as of and for the period indicated. For a correct interpretation, this report must be read in conjunction with Banco Galicia's press release (www.bancogalicia.com.ar) and GFG's financial statements, as well as with all other material periodically filed with the Comision Nacional de Valores (www.cnv.gov.ar), the Securities and Exchange Commission (www.sec.gov), the Bolsa de Comercio de Buenos Aires (www.bolsar.com.ar) and the CordobaStock Exchange and Nasdaq (www.nasdaq.com). Readers of this report must note that this is a translation made from an original version written and expressed in Spanish. Therefore, any matters of interpretation should be referred to the original version in Spanish. -------------------------------------------------------------------------------- 3 Grupo Financiero Galicia S.A SELECTED FINANCIAL INFORMATION - CONSOLIDATED DATA Consolidated with subsidiary companies (Art.33 - Law 19550).
12/31/07 09/30/07 06/30/07 03/31/07 12/31/06 --------- --------- --------- --------- --------- In millions of pesos CASH AND DUE FROM BANKS 2.960,0 2.625,5 2.057,8 2.062,6 2.294,8 GOVERNMENT AND CORPORATE SECURITIES 1.694,0 2.238,7 3.571,2 2.272,4 3.188,6 LOANS 11.601,0 10.929,6 9.910,9 10.712,8 10.525,0 OTHER RECEIVABLES RESULTING FROM FINANCIAL BROKERAGE 3.597,0 3.198,6 3.378,5 3.841,0 5.412,8 EQUITY IN OTHER COMPANIES 43,8 43,7 42,2 40,5 35,6 BANK PREMISES AND EQUIPMENT, MISCELLANEOUS AND INTANGIBLE ASSETS 1.304,0 1.255,2 1.250,5 1.263,3 1.264,2 OTHER ASSETS 1.628,9 1.477,9 1.065,2 1.005,9 894,4 TOTAL ASSETS 22.828,7 21.769,2 21.276,3 21.198,5 23.615,4 DEPOSITS 13.165,6 12.748,3 12.438,8 11.858,1 10.779,4 - Non-Financial Government Sector 193,9 207,7 202,7 79,7 63,9 - Financial Sector 167,2 159,5 156,1 153,9 154,3 - Non-Financial Private Sector and Residents Abroad 12.804,5 12.381,1 12.080,0 11.624,5 10.561,2 - Current Accounts 2.629,9 2.465,7 2.439,2 2.080,1 1.982,8 - Savings Accounts 3.229,0 3.014,8 2.816,8 2.647,5 2.442,9 - Time Deposits 6.543,9 6.467,2 6.433,8 6.536,0 5.789,3 - Investment Accounts 0,2 3,6 5,5 5,6 4,0 - Other 291,1 302 ,8 232,7 209,8 211,3 - Accrued interest and quotation diferences payable 110,4 127,0 152,0 145,5 130,9 OTHER BANKS AND INTERNATIONAL ENTITIES 930,4 865,1 361,7 447,0 1.125,7 NEGOTIABLE OBLIGATIONS 3.045,5 3.229,6 3.686,4 3.511,2 3.587,0 OTHER LIABILITIES 3.815,1 3.120,0 3.011,2 3.626,0 6.347,6 MINORITY INTERESTS 217,6 196,3 175,3 165,9 167,2 TOTAL LIABILITIES 21.174,2 20.159,3 19.673,4 19.608,2 22.006,9 SHAREHOLDERS' EQUITY 1.654,5 1.609,9 1.602,9 1.590,3 1.608,5 INFLATION AND EXCHANGE RATE Retail Price Index (%) (*) 2,49 1,90 1,61 2,23 2,57 Wholesale Price Index (%) (*) 2,67 4,02 5,37 1,75 0,68 C.E.R. (%) (*) 2,30 1,50 1,91 2,52 2,46 Exchange Rate ($/U$S) (**) 3,1510 3,1495 3,0908 3,1007 3,0695
---------- (*) Variation within the quarter. (**) Last working day of the quarter. Source B.C.R.A. -Comunique "A" 3500- Reference Exchange Rate 4 Grupo Financiero Galicia S.A SELECTED FINANCIAL INFORMATION - CONSOLIDATED DATA Consolidated with subsidiary companies (Art. 33 - Law 19550).
Quarter ended: ------------------------------------------------------------- 12/31/07 09/30/07 06/30/07 03/31/07 12/31/06 --------- --------- --------- --------- --------- In millions of pesos FINANCIAL INCOME 550,7 518,4 451,8 476,9 428,7 - Interest on Cash and Due From Bank 5,1 4,1 2,0 3,7 0,6 - Interest on Loans to the Financial Sector 0,3 0,5 0,2 2,3 1,0 - Interest on Overdrafts 34,4 32,1 25,1 19,6 21,0 - Interest on Notes 97,3 75,7 61,4 59,8 58,1 - Interest on Mortgage Loans 29,6 26,0 22,2 20,6 20,3 - Interest on Pladge Loans 3,7 3,4 2,8 2,5 2,2 - Interest on Credit Card loans 127,6 111,9 101,6 90,7 89,6 - Interest on Other Loans 63,3 56,6 42,7 40,1 36,5 - Net Income from Government and Corporate Securities 57,4 81,5 66,9 35,5 (72,4) - On Other Receivables Resulting from Financial Brokerage 9,7 8,8 7,4 10,3 34,7 - Net Income from Guaranteed Loans-Decree 1387/01 13,8 15,5 20,1 30,3 46,6 - Adjustment by application of adjusting index 47,6 22,5 45,2 89,9 155,4 - Quotations Differences on Gold and Foreign Currency 29,5 23,2 22,8 12,4 13,4 - Other 31,4 56,6 31,4 59,2 21,7 FINANCIAL EXPENSES 338,5 290,7 263,0 354,5 442,7 - Interest on Demand Accounts Deposits 4,7 3,6 4,0 4,1 4,2 - Interest on Saving Accounts Deposits 0,8 0,8 1,5 1,4 1,2 - Interest on Time Deposits 156,6 130,9 119,0 114,6 106,5 - Interest on Interbank Loans Received ( Call Money Loans) 0,7 1,5 0,8 0,9 1,0 - Interest on Loans from Financial Sector 0,4 0,5 0,5 0,6 0,7 - For other Liabilities resulting from Financial Brokerage 74,4 78,9 68,9 91,4 86,8 - Interest on Subordinated Negotiable Obligations 24,2 24,1 23,2 23,2 22,0 - Other interest 1,1 1,1 1,3 42,3 38,4 - Adjustment by application of adjusting index 7,7 7,8 8,2 43,2 126,7 - Contributions to the Deposit Insurance Fund 5,5 5,3 5,0 4,7 4,4 - Other 62,4 36,2 30,6 28,1 50,8 GROSS BROKERAGE MARGIN 212,2 227,7 188,8 122,4 (14,0) PROVISIONS FOR LOAN LOSSES 96,6 72,7 36,8 49,4 26,3 INCOME FROM SERVICES, NET 251,4 241,3 220,4 200,0 192,8 ADMINISTRATIVE EXPENSES 366,5 339,3 304,3 276,2 278,3 - Personnel Expenses 191,0 174,7 160,7 144,2 146,3 - Directors' and Syndics' Fees 1,6 1,6 1,6 1,7 2,0 - Other Fees 12,7 12,6 9,6 8,1 9,9 - Advertising and Publicity 33,2 29,5 26,9 24,3 26,0 - Taxes 21,7 20,4 14,7 13,6 15,0 - Depreciation of Premises and Equipment 14,5 13,3 12,0 10,2 9,5 - Amortization of Organization and Development Expenses 8,6 9,2 8,8 9,0 8,6 - Other Operating Expenses 52,3 49,6 45,5 43,1 40,0 - Other 30,9 28,4 24,5 22,0 21,0 MINORITY INTEREST (9,0) (9,4) (9,4) (4,2) (1,3) INCOME FROM EQUITY INVESTMENTS 0,1 1,4 0,1 0,3 (1,2) NET OTHER INCOME 69,7 (21,4) (29,5) 6,4 49,6 INCOME TAX 16,7 20,7 16,7 17,4 13,5 NET INCOME 44,6 6,9 12,6 (18,1) (92,2)
5 Grupo Financiero Galicia S.A SELECTED FINANCIAL INFORMATION - CONSOLIDATED DATA Consolidated with subsidiary companies (Art. 33 - Law 19550).
Twelve months ended at: ----------------------- 12/31/07 12/31/06 ---------- ---------- In millions of pesos FINANCIAL INCOME 1.997,9 2.229,8 - Interest on Cash and Due From Bank 14,9 0,9 - Interest on Loans to the Financial Sector 3,3 2,9 - Interest on Overdrafts 111,3 69,7 - Interest on Notes 294,2 200,6 - Interest on Mortgage Loans 98,4 70,0 - Interest on Pladge Loans 12,4 12,1 - Interest on Credit Card loans 431,8 281,1 - Interest on Other Loans 202,8 105,8 - Net Income from Government and Corporate Securities 241,3 235,3 - On Other Receivables Resulting from Financial Brokerage 36,2 171,9 - Net Income from Guaranteed Loans-Decree 1387/01 79,7 194,8 - Adjustment by application of adjusting index 205,1 736,0 - Quotations Differences on Gold and Foreign Currency 88,0 76,1 - Other 178,5 72,6 FINANCIAL EXPENSES 1.246,7 1.851,6 - Interest on Demand Accounts Deposits 16,4 21,0 - Interest on Saving Accounts Deposits 4,5 4,1 - Interest on Time Deposits 521,1 313,0 - Interest on Interbank Loans Received ( Call Money Loans) 3,9 3,5 - Interest on Loans from Financial Sector 1,9 3,5 - For other Liabilities resulting from Financial Brokerage 313,6 317,5 - Interest on Subordinated Negotiable Obligations 94,7 76,5 - Other interest 45,8 186,6 - Adjustment by application of adjusting index 67,0 697,7 - Contributions to the Deposit Insurance Fund 20,4 15,8 - Other 157,4 212,4 GROSS BROKERAGE MARGIN 751,2 378,2 PROVISIONS FOR LOAN LOSSES 255,5 110,9 INCOME FROM SERVICES, NET 913,1 672,0 ADMINISTRATIVE EXPENSES 1.286,3 974,5 - Personnel Expenses 670,6 506,6 - Directors' and Syndics' Fees 6,4 6,0 - Other Fees 42,9 36,1 - Advertising and Publicity 113,8 84,5 - Taxes 70,4 50,5 - Depreciation of Premises and Equipment 50,0 37,0 - Amortization of Organization and Development Expenses 35,6 34,9 - Other Operating Expenses 190,6 145,0 - Other 106,0 73,9 MINORITY INTEREST (32,1) (19,0) INCOME FROM EQUITY INVESTMENTS 2,0 (14,4) NET OTHER INCOME 25,1 143,9 INCOME TAX 71,5 94,2 NET INCOME 46,0 (18,9)
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