EX-99.1 2 ex99_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, 2008 (Buenos Aires, Argentina, February 13, 2009) - 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 2008, ended December 31, 2008. NET INCOME FOR THE FISCAL YEAR ENDED DECEMBER 31, 2008 o Net income for the fiscal year ended December 31, 2008 was Ps. 176.8 million or Ps. 0.142 per share, equivalent to Ps. 1.42 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. 195.3 million net income. Excluding the amortization of amparo claims (Ps. 39.5 loss) and the adjustment to the valuation of public-sector assets (Ps. 9.2 earning), adjusted net income amounted to Ps. 225.6 million. NET INCOME FOR THE QUARTER ENDED DECEMBER 31, 2008 o Net income for the quarter ended December 31, 2008 was Ps. 32.2 million or Ps. 0.026 per share, equivalent to Ps. 0.26 per ADS. o This result was mainly attributable to the income derived from our interest in the Bank (Ps. 38.6 million) and in Sudamericana Holding (Ps. 5.7 million), partially offset by financial expenses and administrative expenses for Ps. 7.9 million. o The Bank recorded a Ps. 40.9 million net income. Excluding the amortization of amparo claims (Ps. 11.5 loss) and the adjustment to the valuation of public-sector assets (Ps. 7.3 earning), adjusted net income amounted to Ps. 45.1 million. o The table below shows results per share information, based on Grupo Galicia's financial statements. 1
In pesos ------------------------------------------------- FY 2008 FY 2007 twelve months ended at: ---------- ---------- ----------------------- 4Q 4Q Earnings per Share 12/31/2008 12/31/2007 12/31/2008 12/31/2007 --------------------------------------- ---------- ---------- ---------- ---------- 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 1,487 1,333 1,487 1,333 Book Value per ADS (*) 14,870 13,330 14,870 13,330 Earnings per Share 0,026 0,036 0,142 0,037 Earnings per ADS (*) 0,260 0,360 1,420 0,370
---------- (*) 1 ADS = 10 ordinary shares o Grupo Galicia's fourth quarter net income represents an annualized return of 0.72% on average assets and of 7.00% on average shareholders' equity.
Percentages ------------------------------------------------- FY 2008 FY 2007 twelve months ended at: ---------- ---------- ----------------------- 4Q 4Q Profitability 12/31/2008 12/31/2007 12/31/2008 12/31/2007 --------------------------------------- ---------- ---------- ---------- ---------- Return on Average Assets (*) 0,72 0,97 0,91 0,37 Return on Average Shareholders Equity (*) 7,00 10,97 10,13 2,86
---------- (*) Annualized. o The table below shows Grupo Financiero Galicia's income statement for fiscal year 2008, on a non consolidated basis, which includes the elimination of transactions with controlled companies. In millions of pesos --------------------------- Twelve months ended at --------------------------- 31/12/2008 31/12/2007 ------------ ------------ Income from equity investments 218,4 65,3 Administrative expenses (14,9) (15,1) Net other income (1,0) (0,9) Net financial income (27,8) (0,2) Income tax 2,1 (3,1) ------------ ------------ Net income for the year 176,8 46,0 ------------ ------------ 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, 2008. o "Income from Stake in Other Companies" includes the results from our interests in Net Investment, Galicia Warrants, G.V. Mandataria and Galval as of December 31, 2008. 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 2008 Twelve months ended at ----------------------- ----------------------- 4Q 3Q Net Income by Business 31/12/08 31/09/08 31/12/08 31/12/07 --------------------------------------- ---------- ---------- ---------- ---------- Income from stake in Banco Galicia (94,66%) 38,6 73,5 184,8 29,1 Income from stake in Sudamericana Holding (87,5%) 5,7 4,4 19,7 14,6 Income from stake in otras sociedades (2,0) 1,6 (0,0) 1,0 Deferred tax adjustment in Banco Galicia's subsidiaries 7,6 (3,4) 13,2 7,9 Other Income GFG (19,5) (10,1) (43,1) (3,5) Income tax 1,8 0,3 2,1 (3,1) Net Income for the period 32,2 66,4 176,8 46,0
RECENT DEVELOPMENTS o On January 7, 2009 Grupo Galicia prepaid the U$S 62 million loan due July 25, 2009 with a payment of U$S 39.1 millions. This payment was made using liquid assets plus funds from a Loan of Ps. 97 million granted by Sudamericana Holding S.A. o Grupo Galicia has called an Ordinary Shareholder' Meeting to be held on March 9, 2009 to consider the creation of a program for the issuance of Negotiable Obligations. CONFERENCE CALL On Tuesday, February 17 at 10:00 A.M. Eastern Standard Time (1:00 P.M. Buenos Aires Time), GFG will host a conference call to review this results. The call-in number is: (719) 325-4804 3 Grupo Financiero Galicia S.A SELECTED FINANCIAL INFORMATION-CONSOLIDATED DATA(*)
In millions of pesos -------------------------------------------------------------- 12/31/08 09/30/08 06/30/08 03/31/08 12/31/07 ---------- ---------- ---------- ---------- ---------- CASH AND DUE FROM BANKS 3.405,1 3.288,7 3.039,9 2.697,5 2.960,0 GOVERNMENT AND CORPORATE SECURITIES 1.531,9 1.102,5 1.220,5 1.816,3 1.694,0 LOANS 11.774,6 12.412,2 11.931,5 12.150,7 11.601,0 OTHER RECEIVABLES RESULTING FROM FINANCIAL BROKERAGE 4.123,8 4.242,5 3.840,2 3.997,9 3.597,0 EQUITY IN OTHER COMPANIES 48,5 84,2 43,7 45,7 43,8 BANK PREMISES AND EQUIPMENT, MISCELLANEOUS AND INTANGIBLE ASSETS 1.516,9 1.438,5 1.397,8 1.339,6 1.304,0 OTHER ASSETS 2.335,0 1.931,9 1.784,3 1.684,7 1.628,9 TOTAL ASSETS 24.735,8 24.500,5 23.257,9 23.732,4 22.828,7 DEPOSITS 14.056,1 14.239,2 13.087,5 13.873,5 13.165,6 - Non-Financial Government Sector 1.290,9 253,9 206,4 161,4 193,9 - Financial Sector 169,3 173,8 166,9 165,3 167,2 - Non-Financial Private Sector and Residents Abroad 12.595,9 13.811,5 12.714,2 13.546,8 12.804,5 - Current Accounts 3.002,0 3.055,5 2.841,2 2.983,1 2.629,9 - Savings Accounts 3.843,6 3.599,8 3.261,9 3.181,6 3.229,0 - Time Deposits 5.411,2 6.824,4 6.191,3 6.960,1 6.543,9 - Other 262,1 220,5 316,4 321,6 291,3 - Accrued interest and quotation diferences payable 77,0 111,3 103,4 100,4 110,4 OTHER BANKS AND INTERNATIONAL ENTITIES 1.190,1 1.188,6 1.395,0 1.080,3 930,4 NEGOTIABLE OBLIGATIONS 2.873,1 2.665,3 2.825,1 2.945,9 3.045,5 OTHER LIABILITIES 4.524,6 4.373,1 3.991,4 3.917,2 3.815,1 MINORITY INTERESTS 246,2 235,2 226,1 224,8 217,6 TOTAL LIABILITIES 22.890,1 22.701,4 21.525,1 22.041,7 21.174,2 SHAREHOLDERS' EQUITY 1.845,7 1.799,1 1.732,8 1.690,7 1.654,5 INFLATION AND EXCHANGE RATE Retail Price Index (%)(**) 1,11 1,35 2,04 2,55 2,48 Wholesale Price Index (%)(**) 0,16 2,16 3,54 2,86 2,62 C.E.R. (%)(**) 1,31 1,50 2,52 2,42 2,30 Exchange Rate ($/U$S)(***) 3,4537 3,1302 3,0242 3,1653 3,1510
---------- (*) 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 -------------------------------------------------------------------------------- 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 Cordoba Stock 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. -------------------------------------------------------------------------------- 4 Grupo Financiero Galicia S.A SELECTED FINANCIAL INFORMATION-CNSOLIDATED DATA(*)
In millions of pesos -------------------------------------------------------------- Quarter ended: 12/31/08 09/30/08 06/30/08 03/31/08 12/31/07 ---------- ---------- ---------- ---------- ---------- FINANCIAL INCOME 731,3 588,1 650,7 589,2 550,7 - Interest on Cash and Due From Bank 1,0 1,7 2,1 4,0 5,1 - Interest on Loans to the Financial Sector 1,8 1,0 0,7 0,4 0,3 - Interest on Overdrafts 55,8 49,8 40,8 36,4 34,4 - Interest on Notes 120,0 115,0 101,3 104,2 97,3 - Interest on Mortgage Loans 33,3 32,1 30,9 30,2 29,6 - Interest on Pledge Loans 4,0 4,0 3,6 3,4 3,7 - Interest on Credit Card loans 198,8 157,2 161,1 139,4 127,6 - Interest on Other Loans 89,5 79,0 78,2 70,8 63,3 - Net Income from Government and Corporate Securities 57,6 40,6 64,8 75,1 57,4 - On Other Receivables Resulting from Financial Brokerage 8,1 8,1 8,9 8,9 9,7 - Net Income from Guaranteed Loans-Decree 1387/01 14,3 15,8 15,5 14,3 13,8 - Adjustment by application of adjusting index 20,3 24,5 39,4 39,7 47,6 - Quotations Differences on Gold and Foreign Currency (22,6) 4,0 73,8 22,7 29,5 - Other 149,4 55,3 29,6 39,7 31,4 FINANCIAL EXPENSES 370,7 358,1 357,4 334,8 338,5 - Interest on Demand Accounts Deposits 6,9 5,4 4,7 4,6 4,7 - Interest on Saving Accounts Deposits 0,7 0,9 0,9 0,9 0,8 - Interest on Time Deposits 231,2 206,2 153,6 166,7 156,6 - Interest on Interbank Loans Received (Call Money Loans) 3,6 0,0 2,0 0,1 0,7 - Interest on Loans from Financial Sector 0,1 0,2 0,2 0,3 0,4 - For Other Liabilities resulting from Financial Brokerage 76,3 73,4 73,6 73,7 74,4 - Interest on Subordinated Negotiable Obligations 27,4 24,7 24,4 24,9 24,2 - Other interest 0,6 0,7 0,9 1,1 1,1 - Adjustment by application of adjusting index 0,5 1,0 3,2 4,5 7,7 - Contributions to the Deposit Insurance Fund 6,1 5,8 6,0 5,7 5,5 - Other 17,3 39,8 87,9 52,3 62,4 GROSS BROKERAGE MARGIN 360,6 230,0 293,3 254,4 212,2 PROVISIONS FOR LOAN LOSSES 132,0 84,2 94,0 85,2 96,6 INCOME FROM SERVICES, NET 316,5 313,5 293,6 264,3 251,4 ADMINISTRATIVE EXPENSES 479,8 472,0 446,9 382,4 366,5 - Personnel Expenses 261,5 253,8 239,7 211,2 191,0 - Directors' and Syndics' Fees 2,7 1,5 2,1 1,9 1,6 - Other Fees 15,3 15,5 13,9 12,2 12,7 - Advertising and Publicity 36,5 42,8 41,9 25,3 33,2 - Taxes 29,2 27,4 26,0 21,4 21,7 - Depreciation of Premises and Equipment 16,0 15,4 15,1 15,4 14,5 - Amortization of Organization and Development Expenses 11,2 9,7 9,1 8,0 8,6 - Other Operating Expenses 64,2 66,5 62,2 56,3 52,3 - Other 43,2 39,4 36,9 30,7 30,9 MINORITY INTEREST (11,0) (9,1) (8,5) (7,2) (9,0) INCOME FROM EQUITY INVESTMENTS 0,1 55,2 0,0 1,5 0,1 NET OTHER INCOME (7,6) 58,4 20,6 8,7 69,7 INCOME TAX 14,6 25,5 16,0 17,9 16,7 NET INCOME 32,2 66,3 42,1 36,2 44,6
---------- (*) Grupo Financiero Galicia, consolidated with subsidiary companies (Art. 33 - Law 19550). 5 Grupo Financiero Galicia S.A SELECTED FINANCIAL INFORMATION - CONSOLIDATED DATA (*)
In millions of pesos ---------------------- Twelve months ended at: 12/31/08 12/31/07 ---------- ---------- FINANCIAL INCOME 2.559,3 1.997,9 - Interest on Cash and Due From Bank 8,8 14,9 - Interest on Loans to the Financial Sector 3,9 3,3 - Interest on Overdrafts 182,8 111,3 - Interest on Notes 440,5 294,2 - Interest on Mortgage Loans 126,5 98,4 - Interest on Pledge Loans 15,0 12,4 - Interest on Credit Card loans 656,5 431,8 - Interest on Other Loans 317,5 202,8 - Net Income from Government and Corporate Securities 238,1 241,3 - On Other Receivables Resulting from Financial Brokerage 34,0 36,2 - Net Income from Guaranteed Loans-Decree 1387/01 59,9 79,7 - Adjustment by application of adjusting index 123,9 205,1 - Quotations Differences on Gold and Foreign Currency 77,9 88,0 - Other 274,0 178,5 FINANCIAL EXPENSES 1.421,0 1.246,7 - Interest on Demand Accounts Deposits 21,6 16,4 - Interest on Saving Accounts Deposits 3,4 4,5 - Interest on Time Deposits 757,7 521,1 - Interest on Interbank Loans Received ( Call Money Loans) 5,7 3,9 - Interest on Loans from Financial Sector 0,8 1,9 - For other Liabilities resulting from Financial Brokerage 297,0 313,6 - Interest on Subordinated Negotiable Obligations 101,4 94,7 - Other interest 3,3 45,8 - Adjustment by application of adjusting index 9,2 67,0 - Contributions to the Deposit Insurance Fund 23,6 20,4 - Other 197,3 157,4 GROSS BROKERAGE MARGIN 1.138,3 751,2 PROVISIONS FOR LOAN LOSSES 395,4 255,5 INCOME FROM SERVICES, NET 1.187,9 913,1 ADMINISTRATIVE EXPENSES 1.781,1 1.286,3 - Personnel Expenses 966,2 670,6 - Directors' and Syndics' Fees 8,2 6,4 - Other Fees 56,9 42,9 - Advertising and Publicity 146,5 113,8 - Taxes 104,0 70,4 - Depreciation of Premises and Equipment 61,9 50,0 - Amortization of Organization and Development Expenses 38,0 35,6 - Other Operating Expenses 249,2 190,6 - Other 150,2 106,0 MINORITY INTEREST (35,8) (32,1) INCOME FROM EQUITY INVESTMENTS 56,8 2,0 NET OTHER INCOME 80,1 25,1 INCOME TAX 74,0 71,5 NET INCOME 176,8 46,0
---------- (*) Grupo Financiero Galicia, consolidated with subsidiary companies (Art. 33 - Law 19550).