EX-99 2 ex99-1.txt EX 99-1 [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 FIRST QUARTER ENDED MARCH 31, 2009 (Buenos Aires, Argentina, May 12, 2009) - Grupo Financiero Galicia S.A. ("Grupo Galicia", "GFG") (Buenos Aires Stock Exchange: GGAL / NASDAQ: GGAL) today announced its consolidated financial results for the first quarter of fiscal year 2009, ended March 31, 2009. NET INCOME FOR THE QUARTER ENDED MARCH 31, 2009 o Grupo Financiero Galicia's result for the first quarter was mainly attributable to the income derived from our interests in the Bank (Ps. 28.5 million) and in Sudamericana Holding (Ps. 3.9 million) and to the nonrecurring income of Ps. 85.5 million. The latter gain was due to the prepayment of a loan in foreign currency at a discount. o This income was partially offset by administrative expenses for Ps. 9.0 million and by income tax for Ps. 30.4 million. o Net income for the quarter ended March 31, 2009 was Ps. 91.9 million or Ps. 0.074 per share, equivalent to Ps. 0.74 per ADS. o The Bank recorded a Ps. 30.1 million net income. Excluding the amortization of amparo claims (Ps. 27.5 loss) and the adjustment to the valuation of public-sector assets (Ps. 4.1 earning), adjusted net income amounted to Ps. 53.5 million. o As of March 31, 2009, the Bank's credit exposure to the private sector reached Ps. 14,313 million, while its deposits in Argentina amounted to Ps. 14,701 million, with an annualized increase of 21.3% in the quarter. o The table below shows results per share information, based on Grupo Galicia's financial statements. 1 In pesos ------------------------------------ FY 2009 FY 2008 ---------- ----------------------- 1 Q 4Q 1Q Earnings per Share 03/31/2009 12/31/2008 03/31/2008 --------------------------------------- ---------- ---------- ---------- Total Average Shares (in thousands) 1.241.407 1.241.407 1.241.407 Total Shares Outstanding (in thousands) 1.241.407 1.241.407 1.241.407 Book Value per Share 1,549 1,487 1,362 Book Value per ADS (*) 15,490 14,870 13,620 Earnings per Share 0,074 0,026 0,029 Earnings per ADS (*) 0,740 0,260 0,290 ---------- (*) 1 ADS = 10 ordinary shares o Grupo Galicia's first quarter net income represents an annualized return of 1.68% on average assets and of 19.37% on average shareholders' equity. Percentages ------------------------------------ FY 2009 FY 2008 ---------- ----------------------- 1 Q 4 Q 1 Q Profitability 03/31/2009 12/31/2008 03/31/2008 --------------------------------------- ---------- ---------- ---------- Return on Average Assets (*) 1,68 0,72 0,75 Return on Average Shareholders Equity (*) 19,37 7,00 8,65 ---------- (*) Annualized. 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 for the quarter ended December 31, 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 March 31, 2009. 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 nonrecurring income resulting from the debt prepayment, the administrative expenses and the financial expenses. 2 in millions of pesos --------------------------- FY 2009 FY 2008 ------- --------------- Net Income by Business 1st. Q 4th. Q 1st. Q ------------------------------------------------- ------- ------ ------ Income from stake in Banco Galicia (94,66%) 28,5 38,6 36,6 Income from stake in Sudamericana Holding (87,5%) 3,9 5,7 4,1 Income from stake in other companies (1,7) (2,1) (0,1) Deferred tax adjustment in Banco Galicia's subsidiaries 3,8 7,6 3,3 Other Income GFG 87,8 (19,5) (7,7) Income tax (30,4) 1,8 0,0 Net Income for the period 91,9 32,2 36,2 RECENT DEVELOPMENTS o On March 9, 2009 Grupo Galicia's Ordinary Shareholders Meeting approved the creation of a Negotiable Obligation Program for up to US$ 60 million. Comision Nacional de Valores (National Securities Commission) approved the program on April 29, 2009, and, on May 9, 2009, also approved a Price Supplement for the offering of Negotiable Obligations for up to US$ 45 million. CONFERENCE CALL On Wednesday, May 13 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) 325-4789 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. 3 Grupo Financiero Galicia S.A SELECTED FINANCIAL INFORMATION - CONSOLIDATED DATA (*)
In millions of pesos ---------------------------------------------------- 03/31/09 12/31/08 09/30/08 06/30/08 03/31/08 -------- -------- -------- -------- -------- CASH AND DUE FROM BANKS 3.224,2 3.405,1 3.288,7 3.039,9 2.697,5 GOVERNMENT AND CORPORATE SECURITIES 3.037,9 1.531,9 1.102,5 1.220,5 1.816,3 LOANS 10.563,4 11.774,6 12.412,2 11.931,5 12.150,7 OTHER RECEIVABLES RESULTING FROM FINANCIAL BROKERAGE 3.913,6 4.123,8 4.242,5 3.840,2 3.997,9 EQUITY IN OTHER COMPANIES 48,7 48,5 84,2 43,7 45,7 BANK PREMISES AND EQUIPMENT, MISCELLANEOUS AND INTANGIBLE ASSETS 1.525,6 1.516,9 1.438,5 1.397,8 1.339,6 OTHER ASSETS 2.409,6 2.335,0 1.931,9 1.784,3 1.684,7 TOTAL ASSETS 24.723,0 24.735,8 24.500,5 23.257,9 23.732,4 DEPOSITS 14.711,6 14.056,1 14.239,2 13.087,5 13.873,5 - Non-Financial Government Sector 1.378,7 1.290,9 253,9 206,4 161,4 - Financial Sector 181,6 169,3 173,8 166,9 165,3 - Non-Financial Private Sector and Residents Abroad 13.151,3 12.595,9 13.811,5 12.714,2 13.546,8 - Current Accounts 2.830,7 3.002,0 3.055,5 2.841,2 2.983,1 - Savings Accounts 3.939,5 3.843,6 3.599,8 3.261,9 3.181,6 - Time Deposits 6.069,4 5.411,2 6.824,4 6.191,3 6.960,1 - Other 242,9 262,1 220,5 316,4 321,6 - Accrued interest and quotation diferences payable 68,8 77,0 111,3 103,4 100,4 OTHER BANKS AND INTERNATIONAL ENTITIES 775,5 1.190,1 1.188,6 1.395,0 1.080,3 NEGOTIABLE OBLIGATIONS 2.831,5 2.873,1 2.665,3 2.825,1 2.945,9 OTHER LIABILITIES 4.224,6 4.524,6 4.373,1 3.991,4 3.917,2 MINORITY INTERESTS 256,6 246,2 235,2 226,1 224,8 TOTAL LIABILITIES 22.799,8 22.890,1 22.701,4 21.525,1 22.041,7 SHAREHOLDERS' EQUITY 1.923,2 1.845,7 1.799,1 1.732,8 1.690,7 INFLATION AND EXCHANGE RATE Retail Price Index (%) (**) 1,61 1,11 1,35 2,04 2,55 Wholesale Price Index (%) (**) 1,00 0,01 2,16 3,54 2,86 C.E.R. (%) (**) 1,28 1,31 1,50 2,52 2,42 Exchange Rate ($/U$S) (***) 3,7135 3,4537 3,1302 3,0242 3,1653
---------- (*) 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 SELECTED FINANCIAL INFORMATION - CONSOLIDATED DATA (*)
In millions of pesos ---------------------------------------------------- Quarter ended: 03/31/09 12/31/08 09/30/08 06/30/08 03/31/08 ------------------------------------------------- -------- -------- -------- -------- -------- FINANCIAL INCOME 763,3 731,3 588,1 650,7 589,2 - Interest on Cash and Due From Bank 0,2 1,0 1,7 2,1 4,0 - Interest on Loans to the Financial Sector 1,6 1,8 1,0 0,7 0,4 - Interest on Overdrafts 54,7 55,8 49,8 40,8 36,4 - Interest on Notes 104,3 120,0 115,0 101,3 104,2 - Interest on Mortgage Loans 31,3 33,3 32,1 30,9 30,2 - Interest on Pladge Loans 3,0 4,0 4,0 3,6 3,4 - Interest on Credit Card loans 200,8 198,8 157,2 161,1 139,4 - Interest on Other Loans 96,2 89,5 79,0 78,2 70,8 - Net Income from Government and Corporate Securities 85,9 57,6 40,6 64,8 75,1 - On Other Receivables Resulting from Financial Brokerage 6,7 8,1 8,1 8,9 8,9 - Net Income from Guaranteed Loans-Decree 1387/01 6,8 14,3 15,8 15,5 14,3 - Adjustment by application of adjusting index 19,4 20,3 24,5 39,4 39,7 - Quotations Differences on Gold and Foreign Currency 34,7 (22,6) 4,0 73,8 22,7 - Other 117,7 149,4 55,3 29,6 39,7 FINANCIAL EXPENSES 384,7 370,7 358,1 357,4 334,8 - Interest on Demand Accounts Deposits 3,2 6,9 5,4 4,7 4,6 - Interest on Saving Accounts Deposits 0,9 0,7 0,9 0,9 0,9 - Interest on Time Deposits 231,1 231,2 206,2 153,6 166,7 - Interest on Interbank Loans Received (Call Money Loans) 0,2 3,6 0,0 2,0 0,1 - Interest on Loans from Financial Sector 0,0 0,1 0,2 0,2 0,3 - For Other Liabilities resulting from Financial Brokerage 71,1 76,3 73,4 73,6 73,7 - Interest on Subordinated Negotiable Obligations 29,6 27,4 24,7 24,4 24,9 - Other interest 0,8 0,6 0,7 0,9 1,1 - Adjustment by application of adjusting index 0,2 0,5 1,0 3,2 4,5 - Contributions to the Deposit Insurance Fund 6,1 6,1 5,8 6,0 5,7 - Other 41,5 17,3 39,8 87,9 52,3 GROSS BROKERAGE MARGIN 378,6 360,6 230,0 293,3 254,4 PROVISIONS FOR LOAN LOSSES 177,5 132,0 84,2 94,0 85,2 INCOME FROM SERVICES, NET 317,3 316,5 313,5 293,6 264,3 ADMINISTRATIVE EXPENSES 456,3 479,8 472,0 446,9 382,4 - Personnel Expenses 245,7 261,5 253,8 239,7 211,2 - Directors' and Syndics' Fees 1,7 2,7 1,5 2,1 1,9 - Other Fees 14,9 15,3 15,5 13,9 12,2 - Advertising and Publicity 29,6 36,5 42,8 41,9 25,3 - Taxes 31,7 29,2 27,4 26,0 21,4 - Depreciation of Premises and Equipment 18,2 16,0 15,4 15,1 15,4 - Amortization of Organization and Development Expenses 10,0 11,2 9,7 9,1 8,0 - Other Operating Expenses 67,0 64,2 66,5 62,2 56,3 - Other 37,5 43,2 39,4 36,9 30,7 MINORITY INTEREST (8,6) (11,0) (9,1) (8,5) (7,2) INCOME FROM EQUITY INVESTMENTS (1,6) 0,1 55,2 0,0 1,5 NET OTHER INCOME 94,5 (7,6) 58,4 20,6 8,7 INCOME TAX 54,5 14,6 25,5 16,0 17,9 NET INCOME 91,9 32,2 66,3 42,1 36,2
---------- (*) Grupo Financiero Galicia, consolidated with subsidiary companies (Art. 33 - Law 19550). 5