EX-99.1 2 d438513dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

FOR IMMEDIATE RELEASE

For more information contact:

Pedro A. Richards

Chief Executive Officer

Telefax: (5411) 4343-7528

investorelations@gfgsa.com

www.gfgsa.com

GRUPO FINANCIERO GALICIA S.A. REPORTS FINANCIAL RESULTS FOR ITS

THIRD QUARTER ENDED SEPTEMBER 30, 2012

Buenos Aires, Argentina, November 9, 2012 – Grupo Financiero Galicia S.A. (“Grupo Financiero Galicia” or “GFG”) (Buenos Aires Stock Exchange: GGAL /NASDAQ: GGAL) today announced its consolidated financial results for the third quarter ended September 30, 2012.

NET INCOME FOR THE QUARTER ENDED SEPTEMBER 30, 2012

 

  •  

Net income for the third quarter ended September 30, 2012, amounted to Ps. 347.2 million or Ps. 0.28 per share, equivalent to Ps. 2.80 per ADS.

 

  •  

This result was mainly attributable to the income derived from our interest in Banco Galicia (the “Bank”) (Ps. 323.1 million), in Sudamericana Holding S.A. (Ps. 30.0 million) and from the deferred tax adjustment (Ps. 6.7 million) partially offset by administrative and financial expenses of Ps. 18.7 million.

 

  •  

During the third quarter ended September 30, 2012 the Bank recorded a net income of Ps. 340.4 million, higher than the Ps. 265.3 million corresponding to the third quarter of FY 2011.

 

  •  

This growth, when compared to the third quarter of FY 2011, was a consequence of a significant increase in the operating income, more than offsetting the increase of administrative expenses; thus, reflecting an improvement in the efficiency ratio.

 

  •  

As of September 30, 2012, the Bank’s market share of loans to the private sector was 8.52%. In terms of deposits from the private sector, the market share was 8.83%.

 

Press Release | 3° Q 2012

    Grupo Financiero | Galicia S.A.        1

  •  

The table below shows the results per share information, based on Grupo Financiero Galicia’s financial statements.

 

     In pesos  
     FY 2012      FY 2011      Nine months ended at  
     3rd Q      3rd Q                

Earnings per share

    09/30/12      09/30/11      09/30/12      09/30/11  

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

      3.626         2.575         3.626         2.575   

Book Value per ADS (1ADS = 10 ordinary shares)

      36.260         25.750         36.260         25.750   

Earnings per Share

      0.280         0.222         0.780         0.606   

Earnings per ADS (1 ADS = 10 ordinary shares)

      2.800         2.220         7.800         6.060   

 

  •  

Grupo Financiero Galicia’s net income for the quarter represents an annualized return of 2.86% on average assets and of 32.10% on average shareholders’ equity.

 

     Percentages  
     FY 2012      FY 2011      Nine months ended at  
     3rd Q      3rd Q                

Profitability

    09/30/12      09/30/11      09/30/12      09/30/11  

Return on Average Assets (Annualized)

      2.86         2.9         2.81         2.91   

Return on Average Shareholders Equity (Annualized)

      32.10         35.63         32.33         35.41   

NET INCOME BY BUSINESS

 

     In millions of pesos  
     FY 2012     Nine months ended at  
     3rd Q     2nd Q              

Net Income by Business

    09/30/12     06/30/12     09/30/12     06/30/12  

Income from stake in Banco Galicia (94.9%)

      323.1        312.5        892.2        569.1   

Income from stake in Sudamericana Holding (87.5%)

      30.0        22.6        73.3        43.3   

Income from stake in Compañía Financiera Argentina (3%)

      2.0        1.4        4.7        2.7   

Income from stake in other companies

      4.1        0.5        4.4        0.3   

Deferred tax adjustment in Banco Galicia’s subsidiaries

      6.7        15.6        38.7        32.0   

Other Income GFG

      (18.7 )      (13.5 )      (45.3 )      (26.6 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net Income for the period

      347.2        339.1        968.0        620.8   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

2        Grupo Financiero | Galicia S.A.

    Press Release | 3° Q 2012

  •  

“Income from stake in Sudamericana Holding” includes the results from our interest in such company as of September 30, 2012.

 

  •  

The account “Income from Insurance Activities” included in the consolidated Income Statement, mainly includes premiums net of claims and production costs. The other results (financial, administrative and taxes) were consolidated in the corresponding accounts.

 

  •  

“Income from stake in other companies” includes the results from our interests in Net Investment S.A., Galicia Warrants S.A, G.V. Mandataria de Valores S.A. and Galval Agente de Valores S.A.

 

  •  

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.

 

  •  

“Other income GFG” for the third quarter 2012 mainly includes administrative expenses for Ps. 7.9 million and financial expenses for Ps. 10.1 million.

 

Press Release | 3° Q 2012

    Grupo Financiero | Galicia S.A.        3

CONFERENCE CALL

On Monday, November 12, 2012, at 11:00 A.M. Eastern Standard Time (13:00 PM Buenos Aires Time), GFG will host a conference call to review this results. The call-in number is: 719-325-2177—Passcode: 4784903.

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 Comisión Nacional de Valores (www.cnv.gob.ar), Securities and Exchange Commission (www.sec.gov), Bolsa de Comercio de Buenos Aires (www.bolsar.com.ar), Bolsa de Comercio de Córdoba 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.

    Press Release | 3° Q 2012

SELECTED FINANCIAL INFORMATION — CONSOLIDATED DATA*

 

     In millions of pesos  
     09/30/12      06/30/12      03/31/12      12/31/11      09/30/11  

Cash and due from banks

      7,296.7         6,636.5         6,272.1         6,418.9         6,902.2   

Goverment and Corporate Securities

      5,047.9         5,210.7         6,114.4         5,230.9         3,765.0   

Net Loans

      36,505.9         34,184.0         32,099.7         30,904.5         28,311.1   

Other Receivables Resulting from Financial Brokerage

      5,821.4         5,137.3         5,392.3         5,013.8         3,638.8   

Equity Investments in other Companies

      80.4         65.3         52.2         56.2         55.7   

Bank Premises and Equipment, Miscellaneous and Intangible Asset

      2,254.3         2,113.2         2,020.7         1,920.6         1,744.0   

Other Assets

      2,017.5         1,819.2         1,753.7         1,648.1         1,839.2   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

TOTAL ASSETS

      59,024.1         55,166.2         53,705.1         51,193.0         46,256.0   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Deposits

      35,155.7         33,236.8         32,325.6         30,135.1         28,531.5   

Other Liabilities Resulting from Financial Brokerage

      15,141.5         13,945.4         13,663.0         13,927.1         11,058.7   

Subordinated Negotiable Obligations

      1,099.9         1,053.1         1,000.0         984.4         958.1   

Other Liabilities

      2,465.4         2,163.6         2,308.7         2,065.5         2,031.2   

Minority Interes

      659.7         612.6         574.5         529.3         480.1   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

TOTAL LIABILITIES

      54,522.2         51,011.5         49,871.8         47,641.4         43,059.6   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

SHAREHOLDERS’ EQUITY

      4,501.9         4,154.7         3,833.3         3,551.6         3,196.4   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

INFLATION AND EXCHANGE RATE

               

Retail Price Index (%)**

      2.59         2.38         2.61         2.08         2.48   

Wholesale Price Index (%)**

      3.08         3.18         3.16         2.81         3.08   

C.E.R. (%)**

      2.41         2.59         2.48         2.12         2.34   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Exchange Rate ($/U$S)***

      4.6942         4.5253         4.3785         4.3032         4.2045   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

* 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

 

Press Release | 3° Q 2012

    Grupo Financiero | Galicia S.A.        5

SELECTED FINANCIAL INFORMATION — CONSOLIDATED DATA*

 

     In millions of pesos  

Quarter ended:

    09/30/12     30/06/2012     03/31/12     12/31/11     09/30/11  

FINANCIAL INCOME

      2,312.6        2,226.1        2,051.0        1,907.4        1,519.9   

Interest on Cash and Due From Bank

      —          0.1        —          0.1        0.2   

Interest on Loans to the Financial Sector

      14.8        11.9        14.1        12.3        6.6   

Interest on Overdrafts

      192.7        163.0        155.0        158.8        100.4   

Interest on Notes

      368.7        267.1        286.5        273.8        196.1   

Interest on Mortgage Loans

      30.0        29.5        30.4        29.6        27.3   

Interest on Pledge Loans

      8.6        8.1        8.3        7.7        6.3   

Interest on Credit Card Loans

      723.8        722.2        656.2        522.2        421.2   

Interest on Financial Leases

      30.8        29.1        31.6        31.0        24.0   

Interest on Other Loans

      646.8        620.0        577.5        545.3        484.5   

Net Income from Government and Corporate Securities

      259.5        273.1        216.6        300.7        205.1   

Net Income from Options

      6.0        —          0.4        —          —     

On Other Receivables Resulting from Financial Brokerage

      9.9        10.8        10.8        10.1        10.6   

Net Income from Guaranteed Loans-Decree 1387/01

      1.0        1.0        0.9        0.9        1.8   

Adjustment by application of adjusting index

      0.3        0.2        0.2        0.3        0.7   

Quotations Differences on Gold and Foreign Currency

      —          —          —          (21.5 )      (2.2 ) 

Other

      19.7        90.0        62.5        36.1        37.3   

FINANCIAL EXPENSES

      994.1        891.8        880.4        721.5        587.2   

Interest on Saving Accounts Deposits

      1.0        1.3        1.5        1.1        2.1   

Interest on Time Deposits

      524.5        468.2        529.5        453.2        310.6   

Interest on Interbank Loans Received ( Call Money Loans)

      1.3        2.4        2.8        2.2        0.1   

Interest on Loans from Financial Sector

      13.3        13.0        15.6        14.9        10.5   

For Other Liabilities resulting from Financial Brokerage

      159.1        137.2        122.3        116.0        99.8   

Interest on Subordinated Negotiable Obligations

      31.5        29.6        28.9        28.3        27.7   

Other interest

      19.0        14.0        13.7        6.6        4.8   

Net Income from Options

      —          —          —          0.1        —     

Adjustment by application of adjusting index

      0.1        —          —          —          0.1   

Contributions to the Deposit Insurance Fund

      14.6        14.1        13.1        12.7        11.9   

Quotations Differences on Gold and Foreign Currency

      67.7        60.8        10.6        4.1        —     

Other

      162.0        151.2        142.4        82.3        119.6   

GROSS BROKERAGE MARGIN

      1,318.5        1,334.3        1,170.6        1,185.9        932.7   

PROVISIONS FOR LOAN LOSSES

      341.3        348.7        255.6        271.6        205.5   

INCOME FROM SERVICES, NET

      831.0        742.2        728.4        690.5        626.8   

INCOME FROM INSURANCE ACTIVITIES

      172.2        156.6        133.0        120.0        163.0   

ADMINISTRATIVE EXPENSES

      1,485.3        1,405.4        1,291.0        1,162.9        1,124.3   

Personnel Expenses

      821.3        798.4        740.8        636.5        614.2   

Directors’ and Syndics’ Fees

      4.9        4.4        4.3        5.4        3.6   

Other Fees

      63.0        55.0        48.7        55.2        51.5   

Advertising and Publicity

      101.9        83.6        71.5        83.2        83.2   

Taxes

      111.2        109.0        94.6        84.8        84.9   

Depreciation of Premises and Equipment

      29.0        27.3        26.5        24.4        24.5   

Amortization of Organization and Development Expenses

      51.2        46.7        44.2        35.0        27.3   

Other Operating Expenses

      188.5        171.8        162.4        142.7        141.5   

Other

      114.3        109.2        98.0        95.7        93.6   

MINORITY INTEREST

      (47.2 )      (48.7 )      (48.3 )      (49.8 )      (42.2 ) 

INCOME FROM EQUITY INVESTMENTS

      32.3        27.1        20.6        32.7        51.3   

NET OTHER INCOME

      79.3        61.1        26.5        122.1        68.5   

INCOME TAX

      212.3        179.4        202.5        311.8        195.1   

NET INCOME

      347.2        339.1        281.7        355.1        275.2   

 

* Grupo Financiero Galicia, consolidated with subsidiary companies (Art.33 — Law 19550).

 

6        Grupo Financiero | Galicia S.A.

    Press Release | 3° Q 2012