EX-99.1 2 ex99-1.txt REGISTRANT'S FINANCIAL RESULTS [GRAPHIC OMITTED]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 THE QUARTER ENDED JUNE 30, 2008 o (Buenos Aires, Argentina, August 7, 2008) - Grupo Financiero Galicia S.A. ("Grupo Galicia", "GFG") (Buenos Aires Stock Exchange: GGAL /NASDAQ: GGAL) today announced its consolidated financial results for the second quarter of fiscal year 2008, ended June 30, 2008. Net INCOME for the quarter ended JUNE 30, 2008 o Net income for the quarter ended June 30, 2008 was Ps. 42.1 million or Ps. 0.034 per share, equivalent to Ps. 0.34 per ADS. o This result was mainly attributable to the income derived from our interests in Banco de Galicia y Buenos Aires S.A. ("the Bank") (Ps. 36.1 million) and in Sudamericana Holding (Ps. 5.5 million) and the deferred tax adjustment (Ps. 5.7 million) which was partially offset by financial expenses and administrative expenses for Ps. 5.8 million. o The Bank recorded a Ps. 38.1 million net income higher than 2Q07's Ps. 7.7 million. Its adjusted net income, which excludes the amortization of the legal injuctions (amparos) and the adjustment to the valuation of public-sector assets was Ps. 57.5 million higher than 2Q07's Ps. 42.7 million. o The table below shows results per share information, based on Grupo Financiero Galicia's financial statements. 1
In pesos ----------------------------------------------------- FY 2008 FY 2007 Six months ended at: ----------- ----------- ------------------------- 2Q 2Q Earnings per Share 06/30/08 06/30/07 06/30/08 06/30/07 ----------------------------------------- ----------- ----------- ----------- ----------- Total Average Shares (in thousands) 1.241.407 1.241.407 1.241.407 1.241.407 Total Shares Outstanding (in thousands) 1.241.407 1.241.407 1.241.407 1.241.407 Book Value per Share 1,396 1,291 1,396 1,291 Book Value per ADS(*) 13,960 12,910 13,960 12,910 Earnings per Share 0,034 0,010 0,063 (0,004) Earnings per ADS(*) 0,340 0,100 0,630 (0,040) ---------- (*) 1 ADS = 10 ordinary shares
o Grupo Galicia's net income for the quarter represents an annualized return of 0.86% on average assets and of 9.85% on average shareholders' equity.
Percentages ----------------------------------------------------- FY 2008 FY 2007 Six months ended at: ----------- ----------- ------------------------- 2Q 2Q Profitability 06/30/08 06/30/07 06/30/08 06/30/07 ----------------------------------------- ----------- ----------- ----------- ----------- Return on Average Assets (*) 0,86 0,42 0,81 0,08 Return on Average Shareholders Equity (*) 9,85 3,16 9,26 (0,69) ---------- (*) 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. o "Income from stake in Sudamericana Holding" includes the results from our interest in such company for the quarter ended March 31, 2008. o "Income from stake in other companies" includes the results from our interests in Net Investment, Galicia Warrants and Galval as of June 30, 2008. o The "Deferred tax Adjustment" shows the income tax charge determined by Banco Galicia's subsidiaries in accordance with 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. 2
In millions of pesos ----------------------------------------------------- FY 2008 Six month ended at ------------------------- ------------------------- Net Income by Business 2nd. Q 1st. Q 06/30/08 06/30/07 ----------------------------------------------------------- ----------- ----------- ----------- ----------- Income from stake in Banco Galicia (94.66%) 36,1 36,6 72,7 (26,7) Income from stake in Sudamericana Holding (87.5%) 5,5 4,1 9,6 7,5 Income from stake in other companies 0,6 (0,1) 0,4 0,3 Adjustment result by deferred tax in subsidiary companies 5,7 3,3 9,0 5,7 Other Income (expenses) GFG (5,8) (7,7) (13,5) 12,7 Income tax 0,0 0,0 0,0 (5,0) Net Income for the period 42,1 36,2 78,2 (5,5)
CONFERENCE CALL On Monday, August 11, 2008, at 11:00 A.M. Eastern Standard Time (12:00 A.M. Buenos Aires Time), GFG will host a conference call to review this results. The call-in number is: (719) 325-4801 If you are unable to participate in the call, a replay will be available from Monday, August 11, 2008, at 2:00 P.M. Eastern Standard Time until Friday, August, 15, 2008, at 12:00 P.M. Eastern Standard Time dialing (719) 457-0820, pass code: 4687900 -------------------------------------------------------------------------------- This report is a summary analysis of the 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), Securities and Exchange Commission (www.sec.gov), Bolsa de Comercio de Buenos Aires (www.bolsar.com.ar), Bolsa de Comercio de Cordoba 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 (*)
In millions of pesos -------------------------------------------------------------- 06/30/08 03/31/08 12/31/07 09/30/07 06/30/07 ---------- ---------- ---------- ---------- ---------- CASH AND DUE FROM BANKS 3.039,9 2.697,5 2.960,0 2.625,5 2.057,8 GOVERNMENT AND CORPORATE SECURITIES 1.220,5 1.816,3 1.694,0 2.238,7 3.571,2 LOANS 11.931,5 12.150,7 11.601,0 10.929,6 9.910,9 OTHER RECEIVABLES RESULTING FROM FINANCIAL BROKERAGE 3.840,2 3.997,9 3.597,0 3.198,6 3.378,5 EQUITY IN OTHER COMPANIES 43,7 45,7 43,8 43,7 42,2 BANK PREMISES AND EQUIPMENT, MISCELLANEOUS AND INTANGIBLE ASSETS 1.397,8 1.339,6 1.304,0 1.255,2 1.250,5 OTHER ASSETS 1.784,3 1.684,7 1.628,9 1.477,9 1.065,2 TOTAL ASSETS 23.257,9 23.732,4 22.828,7 21.769,2 21.276,3 DEPOSITS 13.087,5 13.873,5 13.165,6 12.748,3 12.438,8 - Non-Financial Government Sector 206,4 161,4 193,9 207,7 202,7 - Financial Sector 166,9 165,3 167,2 159,5 156,1 - Non-Financial Private Sector and Residents Abroad 12.714,2 13.546,8 12.804,5 12.381,1 12.080,0 - Current Accounts 2.841,2 2.983,1 2.629,9 2.465,7 2.439,2 - Savings Accounts 3.261,9 3.181,6 3.229,0 3.014,8 2.816,8 - Time Deposits 6.191,3 6.960,1 6.543,9 6.467,2 6.433,8 - Other 316,4 321,6 291,3 306,4 238,2 - Accrued interest and quotation diferences payable 103,4 100,4 110,4 127,0 152,0 OTHER BANKS AND INTERNATIONAL ENTITIES 1.395,0 1.080,3 930,4 865,1 361,7 NEGOTIABLE OBLIGATIONS 2.825,1 2.945,9 3.045,5 3.229,6 3.686,4 OTHER LIABILITIES 3.991,4 3.917,2 3.815,1 3.120,0 3.011,2 MINORITY INTERESTS 226,1 224,8 217,6 196,3 175,3 TOTAL LIABILITIES 21.525,1 22.041,7 21.174,2 20.159,3 19.673,4 SHAREHOLDERS' EQUITY 1.732,8 1.690,7 1.654,5 1.609,9 1.602,9 INFLATION AND EXCHANGE RATE Retail Price Index (%)(**) 2,04 2,55 2,48 1,90 1,61 Wholesale Price Index (%)(**) 3,37 2,86 2,62 4,11 5,32 C.E.R. (%)(**) 2,52 2,42 2,30 1,50 1,91 Exchange Rate ($/U$S)(***) 3,0242 3,1653 3,1510 3,1495 3,0908 ---------- (*) Grupo Financiero Galicia S.A., consolidated with subsidiary companies (Art.33 - Law 19550). (**) 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 (*)
In millions of pesos --------------------------------------------------------------- Quarter ended: 06/30/08 03/31/08 12/31/07 09/30/07 06/30/07 -------------------------------------------------------- ----------- ----------- ----------- ----------- ----------- FINANCIAL INCOME 650,7 589,2 550,7 518,4 451,8 - Interest on Cash and Due From Bank 2,1 4,0 5,1 4,1 2,0 - Interest on Loans to the Financial Sector 0,7 0,4 0,3 0,5 0,2 - Interest on Overdrafts 40,8 36,4 34,4 32,1 25,1 - Interest on Notes 101,3 104,2 97,3 75,7 61,4 - Interest on Mortgage Loans 30,9 30,2 29,6 26,0 22,2 - Interest on Pladge Loans 3,6 3,4 3,7 3,4 2,8 - Interest on Credit Card loans 161,1 139,4 127,6 111,9 101,6 - Interest on Other Loans 78,2 70,8 63,3 56,6 42,7 - Net Income from Government and Corporate Securities 64,8 75,1 57,4 81,5 66,9 - On Other Receivables Resulting from Financial Brokerage 8,9 8,9 9,7 8,8 7,4 - Net Income from Guaranteed Loans-Decree 1387/01 15,5 14,3 13,8 15,5 20,1 - Adjustment by application of adjusting index 39,4 39,7 47,6 22,5 45,2 - Quotations Differences on Gold and Foreign Currency 73,8 22,7 29,5 23,2 22,8 - Other 29,6 39,7 31,4 56,6 31,4 FINANCIAL EXPENSES 357,4 334,8 338,5 290,7 263,0 - Interest on Demand Accounts Deposits 4,7 4,6 4,7 3,6 4,0 - Interest on Saving Accounts Deposits 0,9 0,9 0,8 0,8 1,5 - Interest on Time Deposits 153,6 166,7 156,6 130,9 119,0 - Interest on Interbank Loans Received (Call Money Loans) 2,0 0,1 0,7 1,5 0,8 - Interest on Loans from Financial Sector 0,2 0,3 0,4 0,5 0,5 - For other Liabilities resulting from Financial Brokerage 73,6 73,7 74,4 78,9 68,9 - Interest on Subordinated Negotiable Obligations 24,4 24,9 24,2 24,1 23,2 - Other interest 0,9 1,1 1,1 1,1 1,3 - Adjustment by application of adjusting index 3,2 4,5 7,7 7,8 8,2 - Contributions to the Deposit Insurance Fund 6,0 5,7 5,5 5,3 5,0 - Other 87,9 52,3 62,4 36,2 30,6 GROSS BROKERAGE MARGIN 293,3 254,4 212,2 227,7 188,8 PROVISIONS FOR LOAN LOSSES 94,0 85,2 96,6 72,7 36,8 INCOME FROM SERVICES, NET 293,6 264,3 251,4 241,3 220,4 ADMINISTRATIVE EXPENSES 446,9 382,4 366,5 339,3 304,3 - Personnel Expenses 239,7 211,2 191,0 174,7 160,7 - Directors' and Syndics' Fees 2,1 1,9 1,6 1,6 1,6 - Other Fees 13,9 12,2 12,7 12,6 9,6 - Advertising and Publicity 41,9 25,3 33,2 29,5 26,9 - Taxes 26,0 21,4 21,7 20,4 14,7 - Depreciation of Premises and Equipment 15,1 15,4 14,5 13,3 12,0 - Amortization of Organization and Development Expenses 9,1 8,0 8,6 9,2 8,8 - Other Operating Expenses 62,2 56,3 52,3 49,6 45,5 - Other 36,9 30,7 30,9 28,4 24,5 MINORITY INTEREST (8,5) (7,2) (9,0) (9,4) (9,4) INCOME FROM EQUITY INVESTMENTS 0,0 1,5 0,1 1,4 0,1 NET OTHER INCOME 20,6 8,7 69,7 (21,4) (29,5) INCOME TAX 16,0 17,9 16,7 20,7 16,7 NET INCOME 42,1 36,2 44,6 6,9 12,6 ---------- (*) Grupo Financiero Galicia, consolidated with subsidiary companies (Art. 33 - Law 19550).
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