EX-99.1 2 d725185dex991.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

FIRST QUARTER ENDED MARCH 31, 2014

Buenos Aires, Argentina, May 8, 2014 – Grupo Financiero Galicia S.A. (“Grupo Financiero Galicia”, “GFG”) (Buenos Aires Stock Exchange: GGAL /NASDAQ: GGAL) announced its consolidated financial results for the first quarter ended March 31, 2014.

NET INCOME FOR THE QUARTER ENDED MARCH 31, 2014

 

 

  •   Net income for the first quarter ended March 31, 2014, amounted to Ps. 830.7 million or Ps. 0.639 per share, equivalent to Ps. 6.39 per ADS.

 

  •   This result was mainly attributable to the income derived from our interest in Banco de Galicia y Buenos Aires S.A. (“the Bank”) (Ps. 770.6 million), in Sudamericana Holding S.A. (Ps. 52.7 million) and from deferred tax adjustments (Ps. 16.6 million) partially offset by administrative and financial expenses of Ps. 14.0 million.

 

  •   During the first quarter ended on March 31, 2014 the Bank recorded a net income of Ps. 773.6 million, higher than the Ps. 322.7 million corresponding to the first quarter of FY 2013.

 

  •   As of March 31, 2014, the Bank’s market share of loans to the private sector was 8.69%. The Bank’s market share of deposits from the private sector was 9.31%.

 

Press Release | 1° Q 2014   Grupo Financiero | Galicia S.A.         1

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

 

     In pesos  
     FY 2014      FY 2013  
     1st Q      4th Q      1st Q  

Earnings per Share

    03/31/14      12/31/13      03/31/13  

Total average shares (in thousands)

      1,300,265         1,300,265         1,241,407   

Total shares outstanding (in thousands)

      1,300,265         1,300,265         1,241,407   

Book value per share

      5.9818         5.3429         4.1639   

Book value per ADS (*)

      59.8180         53.4293         41.6388   

Earnings per share

      0.6389         0.4821         0.2408   

Earnings per ADS (*)

      6.3887         4.8215         2.4085   

 

(*) 1 ADS = 10 ordinary shares

 

  •   Grupo Financiero Galicia’s net income for the quarter represents an annualized return of 4.13% on average assets and of 44.65% on average shareholders’ equity.

 

     Percentajes  
     FY 2014      FY 2013  
     1st Q      4th Q      1st Q  

Profitability

    03/31/14      12/31/13      03/31/13  

Return on Average Assets (*)

      4.13         3.43         2.20   

Return on Average Shareholders’ Equity (*)

      44.65         39.49         23.79   

 

(*) Annualized

NET INCOME BY BUSINESS

 

 

     In millions of pesos  
     FY 2014     FY 2013  
     1st Q     4th Q     1st Q  

Net Income by Business

    03/31/14     12/31/13     03/31/13  

Income from stake in Banco Galicia (99.6%)

      770.6        611.3        306.3   

Income from stake in Sudamericana Holding (87.5%)

      52.7        42.2        34.0   

Income from stake in Cía. Financiera Argentina (3%)

      1.1        0.3        1.0   

Income from stake in other companies

      3.7        2.0        1.4   

Deferred tax adjustment in Banco Galicia´s subsidiaries

      16.6        (10.0 )      19.8   

Other Income GFG

      (14.0 )      (18.8 )      (63.6 ) 

Income Tax

      —          —          —     
  

 

 

    

 

 

    

 

 

  

Net Income for the period

      830.7        627.0        298.9   
  

 

 

    

 

 

    

 

 

  

 

* 1st Quarter of 2013 stake in Banco Galicia was 94.9%

 

2      Grupo Financiero | Galicia S.A.   Press Release | 1° Q 2014

  •   “Income from stake in other companies” includes the results from our interests in Net Investment S.A. and Galicia Warrants S.A.

 

  •   “Deferred tax Adjustment” shows the income tax charge determined by the Bank’s subsidiaries in accordance with the deferred tax method. This adjustment was not made in the Bank’s financial statements because Argentine Central Bank regulations do not contemplate the application of the deferred tax method.

 

  •   “Other income GFG” for the first quarter 2014 includes Ps. 11.7 million of Administrative Expenses, Ps. -4.1 million of Financial Results and Ps. -1.8 million of Other Income and Expenses.

RECENT DEVELOPMENTS

 

 

  •   On April 15, 2014, the Board of Directors of Grupo Financiero Galicia S.A. approved the purchase of 95% of the capital stock of Galicia Administradora de Fondos S.A. Sociedad Gerente de Fondos Comunes de Inversión (“GAF”) by the Bank for the amount of Ps. 39,481,302.

 

  •   On April 24, 2014, the Board of Directors of the Comisión Nacional de Valores (“CNV”) approved the acquisition of shares of the Bank fixed at Ps. 23.22 per share. On May 6, 2014, within the timeframe established by Article 94 of Law No. 26,831, Grupo Financiero Galicia S.A. made the required publications and deposited Ps. 49,318,398 for the remaining shares held by third parties of the Bank.

CONFERENCE CALL

 

On Friday, May 9, 2014 at 2:00 P.M. Eastern Standard Time (3:00 PM Buenos Aires Time), GFG will host a conference call to review this results. The call-in number is: 719-325-2144 - Passcode: 2013276

 

 

This report is a summary analysis of the Grupo Financiero 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 theBank’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.

 

Press Release | 1° Q 2014   Grupo Financiero | Galicia S.A.         3

SELECTED FINANCIAL INFORMATION - CONSOLIDATED DATA (*)

 

     In millions of pesos  
     03/31/14      12/31/13      09/30/13      06/30/13      03/31/13  

Cash and due from banks

      14,238.2         12,560.3         9,665.5         8,249.1         9,113.9   

Government and Corporate Securities

      6,768.4         3,987.3         5,415.6         3,803.4         2,525.5   

Net Loans

      55,957.8         55,264.9         49,766.9         48,276.6         44,053.5   

Other Receivables Resulting from Financial Brokerage

      6,501.5         5,696.1         5,357.1         5,185.9         4,811.5   

Equity Investments in other Companies

      94.0         90.0         77.9         78.7         79.9   

Bank Premises and Equipment, Miscellaneous and Inta

      3,178.0         3,061.9         2,879.2         2,706.3         2,575.4   

Other Assets

      2,925.9         2,495.3         2,432.7         2,369.0         2,006.1   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

TOTAL ASSETS

      89,663.8         83,155.8         75,594.9         70,669.0         65,165.8   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Deposits

      55,055.7         51,395.3         47,114.1         44,131.3         40,836.4   

Other Liabilities Resulting from Financial Brokerage

      20,787.7         19,333.3         17,301.6         16,361.9         14,748.8   

Subordinated Negotiable Obligations

      1,817.7         1,656.3         1,433.0         1,334.4         1,235.8   

Other Liabilities

      3,586.4         3,221.7         2,853.3         2,553.3         2,425.2   

Minority Interest

      638.4         602.0         850.4         781.6         750.5   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

TOTAL LIABILITIES

      81,885.9         76,208.6         69,552.4         65,162.5         59,996.7   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

SHAREHOLDERS’ EQUITY

      7,777.9         6,947.2         6,042.5         5,506.5         5,169.1   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

INFLATION AND EXCHANGE RATE

               

Retail Price Index (%) (**)

      9.98         3.27         2.62         2.27         2.37   

Wholesale Price Index (%) (**)

      13.00         3.90         3.40         3.60         3.11   

C.E.R. (%) (**)

      8.15         2.65         2.59         2.12         2.78   

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

      8.0100         6.5180         5.7915         5.3852         5.1223   

 

(*) 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.   Press Release | 1° Q 2014

SELECTED FINANCIAL INFORMATION - CONSOLIDATED DATA (*)

 

     In millions of pesos  

Quarter ended:

    03/31/14      12/31/13      09/30/13      06/30/13      03/31/13  

FINANCIAL INCOME

      5,055.5         3,971.1         3,412.1         2,947.6         2,744.9   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Interest on Loans to the Financial Sector

      43.2         33.3         27.5         22.6         19.1   

Interest on Overdrafts

      318.1         267.1         246.2         203.7         194.9   

Interest on Notes

      866.1         772.0         668.3         545.0         514.6   

Interest on Mortgage Loans

      79.8         64.3         58.6         45.2         40.5   

Interest on Pledge Loans

      20.2         17.7         15.6         13.9         12.8   

Interest on Credit Card Loans

      1,411.1         1,212.4         1,075.5         1,066.1         954.8   

Interest on Financial Leases

      55.6         52.0         48.8         43.6         41.3   

Interest on Other Loans

      878.6         827.8         775.3         764.0         733.3   

Net Income from Government and Corporate Securities

      389.9         296.8         276.1         174.1         192.1   

On Other Receivables Resulting from Financial Brokerage

      48.4         35.3         23.1         14.9         13.0   

Net Income from Guaranteed Loans-Decree 1387/01

      1.1         0.4         0.6         0.4         1.1   

Adjustment by application of adjusting index

      0.3         0.3         0.2         0.2         0.2   

Other

      943.1         391.7         196.3         53.9         27.2   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

FINANCIAL EXPENSES

      2,474.3         1,906.9         1,630.7         1,376.5         1,255.9   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Interest on Saving Accounts Deposits

      0.4         1.1         1.4         1.3         1.1   

Interest on Time Deposits

      1,486.8         1,180.6         995.3         810.9         759.5   

Interest on Interbank Loans Received ( Call Money Loans)

      8.2         6.5         4.3         2.5         2.5   

Interest on Loans from Financial Sector

      31.3         27.2         24.7         23.9         17.7   

For Other Liabilities resulting from Financial Brokerage

      345.3         279.0         251.8         232.4         182.4   

Interest on Subordinated Negotiable Obligations

      74.1         44.0         40.4         36.7         35.1   

Other interest

      9.2         6.8         7.6         7.9         6.0   

Net Income from Options

      —           —           —           0.9         1.6   

Adjustment by application of adjusting index

      0.1         —           -0.2         0.3         —     

Contributions to the Deposit Insurance Fund

      22.6         20.7         19.1         18.2         17.2   

Quotations Differences on Gold and Foreign Currency

      135.0         69.7         52.8         15.9         14.2   

Other

      361.3         271.3         233.5         225.6         218.6   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

GROSS BROKERAGE MARGIN

      2,581.2         2,064.2         1,781.4         1,571.1         1,489.0   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

PROVISIONS FOR LOAN LOSSES

      682.0         508.3         392.3         434.7         441.0   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

INCOME FROM SERVICES, NET

      1,179.3         1,169.2         1,108.3         1,046.6         915.3   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

INCOME FROM INSURANCE ACTIVITIES

      265.2         228.0         230.4         239.5         207.0   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

ADMINISTRATIVE EXPENSES

      2,051.9         1,981.6         1,903.3         1,849.5         1,693.9   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Personnel Expenses

      1,185.8         1,156.3         1,063.1         1,053.5         1,016.9   

Directors’ and Syndics’ Fees

      18.3         17.8         15.9         16.9         13.3   

Other Fees

      44.6         40.2         75.4         65.7         30.4   

Advertising and Publicity

      83.9         90.6         106.4         104.6         81.3   

Taxes

      182.8         167.2         155.7         153.4         131.6   

Depreciation of Premises and Equipment

      40.9         40.2         39.5         37.9         35.3   

Amortization of Organization and Development Expenses

      70.9         62.7         63.9         63.0         57.7   

Other Operating Expenses

      262.5         242.6         233.0         220.2         208.3   

Other

      162.2         164.0         150.4         134.3         119.1   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

MINORITY INTEREST

      -36.5         -39.3         -68.9         -51.2         -49.3   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

INCOME FROM EQUITY INVESTMENTS

      28.1         26.2         53.3         25.3         18.9   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

NET OTHER INCOME

      105.1         96.5         45.0         87.7         66.1   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

INCOME TAX

      557.8         427.9         317.9         273.0         213.2   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

NET INCOME

      830.7         627.0         536.0         361.8         298.9   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

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

 

Press Release | 1° Q 2014   Grupo Financiero | Galicia S.A.         5