Exhibit 99.1

GRUPO FINANCIERO GALICIA S.A.

FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

GRUPO FINANCIERO GALICIA S.A.

FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Fiscal Year No. 18, commenced January 1, 2016

Legal Domicile: Tte. Gral. Juan D. Perón No. 430 – 25^th floor, Buenos Aires - Argentina

Principal Line of Business: Financial and Investment Activities

Registration No. with the Corporation Control Authority (I.G.J.): 12,749

Sequential Number – Corporation Control Authority (I.G.J.): 1,671,058

Date of Registration with the Corporation Control Authority (I.G.J.):

Of Bylaws: September 30, 1999

Date of Latest Amendment to Bylaws: July 16, 2010

Date of Expiration of the Company’s Bylaws: June 30, 2100

Information on the Controlling Company

Company’s Name: EBA HOLDING S.A.

Principal Line of Business: Financial and Investment Activities

Interest Held by the Controlling Company in the Shareholders’ Equity as of 12.31.16: 21.63%

Interest Held by the Controlling Company in the Votes as of 12.31.16: 57.98%

Capital Status as of 12.31.16 (Note 8 to the Financial Statements):

Figures Stated in Thousands of Pesos for “Subscribed”, “Paid-in” and “Registered” Shares

Shares
Amount		Type	Voting Rights per Share	Subscribed		Paid-in		Registered
	281,221,650	Ordinary Class “A”, Face Value of 1	5		281,222		281,222		281,222
	1,019,042,947	Ordinary Class “B”, Face Value of 1	1		1,019,043		1,019,043		1,019,043
	1,300,264,597				1,300,265		1,300,265		1,300,265

1

GRUPO FINANCIERO GALICIA S.A.

CONSOLIDATED BALANCE SHEET

AS OF DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($)

	Notes	12.31.16			12.31.15
Assets
Cash and Due from Banks			61,166,250			30,834,663
Cash			7,457,481			7,288,153
Financial Institutions and Correspondents			53,708,769			23,546,510
Argentine Central Bank (B.C.R.A.)			51,389,550			23,106,877
Other Local Financial Institutions			209,532			105,511
Foreign			2,109,687			334,122
Government and Private Securities	3		13,700,800			15,525,090
Holdings Recorded at Fair Market Value			3,228,759			2,376,386
Holdings Recorded at their Acquisition Cost plus the I.R.R.			1,922,473			1,389,617
Instruments Issued by the Argentine Central Bank			8,549,568			11,759,087
Loans	4 and 5		137,451,655			98,344,731
To the Non-financial Public Sector			14,359			17,705
To the Financial Sector			2,098,037			761,547
Interbank Loans (Call Money Loans Granted)			862,300			40,000
Other Loans to Local Financial Institutions			1,205,228			685,500
Accrued Interest, Adjustments and Exchange Rate Differences Receivable			30,509			36,047
To the Non-financial Private Sector and Residents Abroad			140,046,017			101,125,473
Overdrafts			10,063,071			8,548,542
Promissory Notes			25,285,214			22,737,166
Mortgage Loans			2,178,236			2,098,824
Collateral Loans			677,879			486,891
Personal Loans			15,311,721			9,259,159
Credit Card Loans			72,765,948			56,260,115
Others			12,653,202			924,741
Accrued Interest, Adjustments and Exchange Rate Differences Receivable			1,774,831			1,407,465
Documented Interest			(642,225	)		(596,853	)
Unallocated Collections			(21,860	)		(577	)
Allowances	6		(4,706,758	)		(3,559,994	)
Other Receivables Resulting from Financial Brokerage			18,178,275			8,060,768
Argentine Central Bank			2,359,284			1,738,892
Amounts Receivable for Spot and Forward Sales to be Settled			734,375			290,795
Securities Receivable under Spot and Forward Purchases to be Settled			7,851,134			765,288
Premiums from Bought Options			3,485			41,027
Others Not Included in the Debtor Classification Regulations	7		4,110,916			2,093,958
Unlisted Notes	5		1,422,433			1,639,013
Balances from Forward Transactions without Delivery of Underlying Asset to be Settled	1.12		111,287			287,161
Others Included in the Debtor Classification Regulations	5		1,775,743			1,393,560
Accrued Interest and Adjustments Receivable Included in the Debtor Classification Regulations	5		705			783
Allowances			(191,087	)		(189,709	)
Receivables from Financial Leases			955,346			958,092
Receivables from Financial Leases	5		952,522			956,131
Accrued Interest and Adjustments Receivable	5		17,010			20,119
Allowances			(14,186	)		(18,158	)

The accompanying Notes 1 to 38 are an integral part of these consolidated financial statements.

2

GRUPO FINANCIERO GALICIA S.A.

CONSOLIDATED BALANCE SHEET

AS OF DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($)

	Notes	12.31.16			12.31.15
Equity Investments	9		52,964			51,731
In Financial Institutions			7,858			6,447
Others			45,707			45,920
Allowances			(601	)		(636	)
Miscellaneous Receivables			3,440,115			2,569,453
Receivables for Assets Sold	5		131,096			19,651
Minimum Presumed Income Tax – Tax Credit	1.14		9,424			10,230
Others	10		3,451,986			2,692,286
Accrued Interest and Adjustments on Receivables for Assets Sold	5		1,626			—
Other Accrued Interest and Adjustments Receivable			46,192			23,164
Allowances			(200,209	)		(175,878	)
Bank Premises and Equipment	11		2,873,552			2,079,085
Miscellaneous Assets	12		1,221,237			820,073
Intangible Assets	13		2,582,255			2,025,844
Goodwill			5,642			15,316
Organization and Development Expenses			2,576,613			2,010,528
Unallocated Items			89,035			58,963
Other Assets	14		539,140			419,510
Total Assets			242,250,624			161,748,003

The accompanying Notes 1 to 38 are an integral part of these consolidated financial statements.

3

GRUPO FINANCIERO GALICIA S.A.

CONSOLIDATED BALANCE SHEET

AS OF DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($)

	Notes		12.31.16		12.31.15
Liabilities
Deposits				151,688,147		100,039,233
Non-financial Public Sector				1,294,177		630,401
Financial Sector				62,957		26,961
Non-financial Private Sector and Residents Abroad				150,331,013		99,381,871
Checking Accounts				26,972,277		19,121,256
Savings Accounts				53,723,171		27,451,942
Time Deposits				49,703,000		50,847,541
Investment Accounts				442,665		395,189
Others				18,577,409		649,174
Accrued Interest, Adjustments and Exchange Rate Differences Payable				912,491		916,769
Other Liabilities Resulting from Financial Brokerage				57,793,653		37,328,900
Argentine Central Bank				12,727		7,033
Others				12,727		7,033
Banks and International Entities				2,212,995		1,262,381
Unsubordinated Notes		16		12,647,419		9,261,471
Amounts Payable for Spot and Forward Purchases to be Settled				7,818,144		764,898
Securities to be Delivered under Spot and Forward Sales to be Settled				736,819		294,548
Premiums from Options Written				2,027		15,427
Loans from Local Financial Institutions				4,097,361		1,388,903
Interbank Loans (Call Money Loans Received)				165,000		127,100
Other Loans from Local Financial Institutions				3,802,398		1,244,269
Accrued Interest Payable				129,963		17,534
Balances from Forward Transactions without Delivery of Underlying Asset to be Settled		1.12		141,013		1,266,014
Others		17		29,717,439		22,788,958
Accrued Interest, Adjustments and Exchange Rate Differences Payable		16		407,709		279,267
Miscellaneous Liabilities				5,804,284		4,442,113
Directors’ and Syndics’ Fees				41,986		38,713
Others		18		5,762,298		4,403,400
Provisions		19		384,484		481,596
Subordinated Notes		16		4,065,255		3,300,516
Unallocated Items				70,530		75,436
Other Liabilities		20		629,384		488,073
Minority Interest in Controlled Companies				1,462,189		1,107,315
Total Liabilities				221,897,926		147,263,182
Shareholders’ Equity				20,352,698		14,484,821
Total Liabilities and Shareholders’ Equity				242,250,624		161,748,003

The accompanying Notes 1 to 38 are an integral part of these consolidated financial statements.

4

GRUPO FINANCIERO GALICIA S.A.

CONSOLIDATED BALANCE SHEET

AS OF DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($)

Memorandum Accounts	Notes	12.31.16		12.31.15
Debit			387,345,986		216,011,580
Contingent			39,215,891		31,302,851
Loans Obtained (Unused Balances)			599,794		193,874
Guarantees Received			25,975,652		20,115,869
Contingencies re. Contra Items			12,640,445		10,993,108
Control			310,926,712		118,340,800
Loans Classified as Irrecoverable			3,347,728		3,500,868
Others	21		304,972,028		105,152,222
Control re. Contra Items			2,606,956		9,687,710
Derivatives	8		29,020,684		59,441,489
“Notional” Value of Call Options Bought			149,512		624,951
“Notional” Value of Forward Transactions without Delivery of Underlying Asset			16,359,075		30,580,294
Interest Rate Swaps			75,000		60,000
Derivatives re. Contra Items			12,437,097		28,176,244
Trust Accounts			8,182,699		6,926,440
Trust Funds	22		8,182,699		6,926,440
Credit			387,345,986		216,011,580
Contingent			39,215,891		31,302,851
Loans Granted (Unused Balances) Included in the Debtor Classification Regulations	5		9,094,205		6,599,546
Guarantees Granted to the Argentine Central Bank			473,528		1,912
Other Guarantees Granted Included in the Debtor Classification Regulations	5		1,134,828		1,006,833
Other Guarantees Granted not Included in the Debtor Classification Regulations			350,695		1,177,045
Others Included in the Debtor Classification Regulations	5		1,236,641		1,879,279
Others not Included in the Debtor Classification Regulations			350,548		328,493
Contingencies re. Contra Items			26,575,446		20,309,743
Control			310,926,712		118,340,800
Checks and Drafts to be Credited			2,559,608		3,630,338
Others			47,348		6,057,372
Control re. Contra Items			308,319,756		108,653,090
Derivatives	8		29,020,684		59,441,489
“Notional” Value of Call Options Written			174,663		737,832
“Notional” Value of Forward Transactions without Delivery of Underlying Asset			12,262,434		27,438,412
Derivatives re. Contra Items			16,583,587		31,265,245
Trust Accounts			8,182,699		6,926,440
Trust Liabilities re. Contra Items			8,182,699		6,926,440

The accompanying Notes 1 to 38 are an integral part of these consolidated financial statements.

5

GRUPO FINANCIERO GALICIA S.A.

CONSOLIDATED INCOME STATEMENT

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($)

	Notes	12.31.16		12.31.15
Financial Income			36,607,689		25,844,168
Interest on Cash and Due from Banks			17		—
Interest on Loans to the Financial Sector			359,427		85,681
Interest on Overdrafts			3,065,507		1,870,336
Interest on Promissory Notes			6,039,112		5,031,904
Interest on Mortgage Loans			474,490		367,566
Interest on Collateral Loans			88,314		87,808
Interest on Credit Card Loans			13,455,906		9,257,193
Interest on Financial Leases			288,462		225,819
Interest on Other Loans			5,288,675		3,299,417
Net Income from Government and Private Securities			5,809,264		4,323,266
Net Income from Options			—		91,605
Interest on Other Receivables Resulting from Financial Brokerage			106,033		99,314
Net Income from Secured Loans - Decree No. 1387/01			6,796		3,643
C.E.R. Adjustment			8,566		4,341
Exchange Rate Differences on Gold and Foreign Currency			1,024,992		—
Others			592,128		1,096,275
Financial Expenses			20,238,704		13,402,332
Interest on Savings Account Deposits			4,644		3,182
Interest on Time Deposits			13,063,966		8,507,743
Interest on Interbank Loans Received (Call Money Loans)			35,988		40,982
Interest on Other Loans from Financial Institutions			187,383		86,169
Net Income from Options			28,893		—
Interest on Other Liabilities Resulting From Financial Brokerage			3,056,336		1,825,749
Interest on Subordinated Notes			532,823		373,998
Other Interest			58,018		182,640
C.E.R. Adjustment			6,602		282
Contributions Made to Deposit Insurance Fund			314,515		497,258
Exchange Rate Differences on Gold and Foreign Currency			—		187,836
Others			2,949,536		1,696,493
Gross Financial Brokerage Margin			16,368,985		12,441,836
Provision for Loan Losses			3,533,313		2,214,240
Income from Services			15,844,918		11,471,296
Related to Lending Transactions			2,936,523		2,232,198
Related to Borrowing Transactions			2,531,191		1,834,293
Other Commissions			654,118		398,332
Others	24		9,723,086		7,006,473
Expenses from Services			5,098,733		3,633,898
Commissions			2,085,077		1,487,054
Others	24		3,013,656		2,146,844

The accompanying Notes 1 to 38 are an integral part of these consolidated financial statements.

6

GRUPO FINANCIERO GALICIA S.A.

CONSOLIDATED INCOME STATEMENT

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($)

	Notes	12.31.16			12.31.15
Administrative Expenses			17,617,610			12,904,702
Personnel Expenses			9,669,181			7,086,485
Directors’ and Syndics’ Fees			79,885			111,211
Other Fees			516,092			396,090
Advertising and Publicity			749,271			544,603
Taxes			1,719,180			1,218,962
Depreciation of Bank Premises and Equipment	11		301,387			218,611
Amortization of Organization Expenses	13		746,544			635,442
Other Operating Expenses			2,106,088			1,529,353
Others			1,729,982			1,163,945
Net Income from Financial Brokerage			5,964,247			5,160,292
Income from Insurance Activities	25		2,451,943			1,801,404
Minority Interest			(403,168	)		(364,558	)
Miscellaneous Income			1,874,469			1,203,592
Net Income from Equity Investments			80,419			100,126
Penalty Interest			482,194			328,882
Loans Recovered and Allowances Reversed			552,471			319,297
Others	24		759,385			455,287
Miscellaneous Losses			517,073			660,909
Penalty Interest and Charges in favor of the Argentine Central Bank			3,397			398
Provisions for Losses on Miscellaneous Receivables and Other Provisions			169,173			448,659
Amortization of Differences Arising from Court Resolutions			12,504			4,308
Depreciation and Losses from Miscellaneous Assets	12		1,245			3,433
Amortization of Goodwill	13		9,674			9,674
Others	24		321,080			194,437
Net Income before Income Tax			9,370,418			7,139,821
Income Tax	1.13		3,352,541			2,801,424
Net Income for the Fiscal Year	27		6,017,877			4,338,397

The accompanying Notes 1 to 38 are an integral part of these consolidated financial statements.

7

GRUPO FINANCIERO GALICIA S.A.

CONSOLIDATED STATEMENT OF CASH FLOWS AND CASH EQUIVALENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($)

	Notes		12.31.16			12.31.15
Changes in Cash and Cash Equivalents
Cash at Beginning of Fiscal Year		29		42,975,265			23,054,015
Cash at Fiscal Year-end		29		73,087,665			42,975,265
Net Increase in Cash (in Constant Currency)				30,112,400			19,921,250
Causes for Changes in Cash (in Constant Currency)
Operating Activities
Net Collections/(Payments) for:
Government and Private Securities				4,143,521			2,398,746
Loans
To the Financial Sector				(154,763	)		(443,503	)
To the Non-financial Public Sector				6,123			4,084
To the Non-financial Private Sector and Residents Abroad				(9,891,803	)		(12,427,921	)
Other Receivables Resulting from Financial Brokerage				(23,698	)		1,176,179
Receivables from Financial Leases				292,960			312,919
Deposits
From the Financial Sector				35,996			(7,651	)
From the Non-financial Public Sector				663,776			(1,044,087	)
From the Non-financial Private Sector and Residents Abroad				33,727,300			23,627,782
Other Liabilities Resulting from Financial Brokerage
Financing from the Financial Sector
Interbank Loans (Call Money Loans Received)				1,912			83,151
Others (Except from Liabilities Included in Financing Activities)				4,585,373			7,809,635
Collections related to Income from Services				19,581,939			14,169,321
Payments related to Expenses for Services				(4,772,557	)		(3,415,706	)
Administrative Expenses Paid				(17,338,997	)		(12,837,369	)
Payment of Organization and Development Expenses				(1,273,157	)		(865,139	)
Collection for Penalty Interest, Net				478,797			328,882
Differences Arising from Court Resolutions Paid				(12,504	)		(4,308	)
Collection of Dividends from Other Companies				73,889			66,174
Other Collections related to Miscellaneous Profits and Losses				115,200			31,411
Net Collections / (Payments) for Other Operating Activities
Other Receivables and Miscellaneous Liabilities				(2,844,146	)		(1,422,814	)
Other Operating Activities, Net				94,563			22,778
Income Tax and Minimum Presumed Income Tax Payment				(2,476,528	)		(1,937,591	)
Net Cash Flow Provided by Operating Activities				25,013,196			15,624,973
Investing Activities
Payments for Bank Premises and Equipment, Net				(900,533	)		(740,313	)
Payments for Miscellaneous Assets, Net				(578,598	)		(392,593	)
Collections for Equity Investments				—			10,045
Net Cash Flow Used in Investing Activities				(1,479,131	)		(1,122,861	)

The accompanying Notes 1 to 38 are an integral part of these consolidated financial statements.

8

GRUPO FINANCIERO GALICIA S.A.

CONSOLIDATED STATEMENT OF CASH FLOWS AND CASH EQUIVALENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($)

	Notes	12.31.16			12.31.15
Financing Activities
Net Collections/(Payments) for:
Unsubordinated Notes			286,753			(1,323,019	)
Argentine Central Bank
Others			5,694			(445	)
Banks and International Entities			477,115			76,972
Subordinated Notes			(386,591	)		(238,591	)
Distribution of Dividends			(198,300	)		(136,800	)
Loans from Local Financial Institutions			2,479,299			92,697
Net Cash Flow Provided by / (Used in) Financing Activities			2,663,970			(1,529,186	)
Financial Income and Holding Gain on Cash and Cash Equivalents (including Interest and Monetary Gain)			3,914,365			6,948,324
Net Increase in Cash			30,112,400			19,921,250

The accompanying Notes 1 to 38 are an integral part of these consolidated financial statements.

9

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

NOTE 1. BASIS FOR THE PRESENTATION OF THE FINANCIAL STATEMENTS AND ACCOUNTING PRINCIPLES APPLIED

Grupo Financiero Galicia S.A. (or, the “Company”) was constituted on September 14, 1999, as a financial services holding company organized under the laws of Argentina. The Company’s main asset is its interest in Banco de Galicia y Buenos Aires S.A. (or, the “Bank”). Banco de Galicia y Buenos Aires S.A. is a private-sector bank that offers a full spectrum of financial services both to individual and corporate customers.

PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS:

These consolidated financial statements, which are derived from the Company’s accounting records, have been stated in thousands of Argentine Pesos and are presented in line with the provisions of the Argentine Central Bank’s (“B.C.R.A.”) Communiqué “A” 3147 and certain supplementary regulations regarding financial reporting requirements for the publication of quarterly/annual financial statements, with the guidelines of Technical Pronouncement Nos. 8 and 19 of the Argentine Federation of Professional Councils in Economic Sciences (“F.A.C.P.C.E.”) and with the regulations of the National Securities Commission (“C.N.V.”) (text amended in 2013). These financial statements include the balances corresponding to the operations carried out by Grupo Financiero Galicia S.A. and its subsidiaries.

The financial statements of Grupo Financiero Galicia S.A. have been consolidated on a line-by-line basis with those of its controlled companies, either directly or indirectly, which are detailed in Note 2.

Due to the fact that the Company’s main equity investment is in Banco de Galicia y Buenos Aires S.A., a financial institution that is subject to the Argentine Central Bank regulations, and pursuant to the regulations of the C.N.V. (Text amended in 2013), the Company has adopted the valuation and disclosure criteria applied by Banco de Galicia y Buenos Aires S.A., which in differs in certain material respects from from Argentine GAAP in force in Buenos Aires (see Note 1.15).

Furthermore, the consolidated financial statements of Sudamericana Holding S.A. were prepared in accordance with the disclosure and valuation criteria approved by the Argentine Superintendent of Insurance, which in some aspects differ from Argentine GAAP in force in Buenos Aires, particularly regarding the valuation of investments in Secured Loans and certain Government Securities, recoverable values and deferral of acquisition expenses. Nevertheless, this departure has not produced a significant effect on the Company’s financial statements.

The comparative consolidated financial statements also include the balances of its subsidiary located outside of Argentina: Banco Galicia Uruguay S.A. (In liquidation). The conversion into Pesos of this subsidiary’s accounting balances was made in accordance with the following:

i. Assets and liabilities were converted into Pesos according to item 1.2 of this Note.

ii. Allotted capital has been computed for actually disbursed restated amounts.

iii. Retained earnings were determined as the difference between assets, liabilities and allotted capital.

iv. Net income for the fiscal year was determined by the difference between retained earnings at the beginning of the fiscal year and retained earnings at fiscal year-end.

v. Significant items arising from intercompany transactions have been eliminated from the Balance Sheet and the Income Statement.

10

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

CONSIDERATION OF THE EFFECTS OF INFLATION:

Argentine GAAP in force in Buenos Aires provides that financial statements shall be stated in constant currency, pursuant to the provisions of Technical Pronouncement Nos. 6 and 17 of the Argentine Federation of Professional Councils in Economic Sciences (“F.A.C.P.C.E.”), as amended by Technical Pronouncement No. 39, approved by the Professional Council in Economic Sciences of Buenos Aires on April 16, 2014, as well as interpretation No. 8 of the F.A.C.P.C.E. Argentine GAAP provides that the adjustment for inflation shall be applied upon in an inflationary context, which is present when, among other considerations, there exists an accumulated rate of inflation reaching or exceeding 100% during three years, taking into consideration, for such purpose, the domestic wholesale price index published by the Argentine Institute of Statistics and Census. The financial statements reflect the effects of the changes in purchasing power of the currency up to February 28, 2003, the adjustment for inflation having been discontinued from such date, pursuant to the provisions of Argentine GAAP in force in Buenos Aires and the requirements of Decree No. 664/03 of the Argentine National Executive Branch, Section 268 of General Resolution No. 7/2005 of the Corporation Control Authority, Communiqué “A” 3921 of the Argentine Central Bank and General Resolution No. 441/03 of the C.N.V. Resolution M.D. No. 41/03 of the Professional Council in Economic Sciences of Buenos Aires (C.P.C.E.C.A.B.A.), which established the discontinuation of the recognition of the changes in the purchasing power of the currency, effective October 1, 2003.

At fiscal year-end, the macroeconomic environment did not qualify as a hyperinflationary economy when applying the guidelines established by the professional accounting standards and the government’s expectation for decreasing inflation levels. Even though the controlling agencies have not issued a decision in this regard, at fiscal year-end, the conditions for the application of the adjustment for inflation would not be met. However, when reading and analyzing these financial statements one should take into consideration the existence of fluctuations in significant economic variables, which occurred during the past fiscal years.

COMPARATIVE INFORMATION:

The comparative information in the Balance Sheet, Schedules, Notes, Income Statement, Statement of Changes in Shareholders’ Equity and Statement of Cash Flows and Cash Equivalents corresponds to the end of the previous fiscal year. Certain figures in the consolidated financial statements for the year ended December 31, 2015 have been reclassified for purposes of their presentation in comparative format with those for this fiscal year.

ACCOUNTING ESTIMATES:

The preparation of financial statements at a given date requires the Company to make estimates and assessments that affect the amounts of assets and liabilities reported and the disclosure of contingent assets and liabilities, as well as the income and expenses accrued for the fiscal year. In this regard, the Company makes estimates in order to calculate, at any given moment, the allowance for uncollectible receivables, depreciation and amortization charges, the recoverable value of assets, the income tax charge and provisions for contingencies, among others. Future actual results may differ from the estimates and assessments made as of the date that these financial statements were prepared.

11

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

MOST RELEVANT ACCOUNTING POLICIES:

1.1. ASSETS AND LIABILITIES IN DOMESTIC CURRENCY

Monetary assets and liabilities which include, where applicable, the interest accrued at fiscal year-end, are stated in the period-end currency and therefore require no adjustment whatsoever.

1.2. ASSETS AND LIABILITIES IN FOREIGN CURRENCY

Foreign currency assets and liabilities have been stated at the U.S. Dollar exchange rate, set by the Argentine Central Bank, in force at the close of operations on the last working day of each month.

As of December 31, 2016 and December 31, 2015, balances in U.S. Dollars were converted applying the reference exchange rate (figures stated in Pesos: $15.8502, $13.005, respectively) set by the Argentine Central Bank.

Assets and liabilities valued in foreign currencies other than the U.S. Dollar have been converted into the latter currency using swap rates provided by the Argentine Central Bank.

Interest receivable or payable has been accrued at fiscal year-end, where applicable.

1.3. GOVERNMENT AND PRIVATE SECURITIES

Argentine Central Bank regulations set forth, according to the assets’ most probable use, two valuation criteria for holdings of non-financial public sector debt instruments:

a. Fair Market Value: These holdings are government securities and monetary regulation instruments included in the volatilities or present values list issued by the Argentine Central Bank.

These are recorded at the closing price for each class of securities in the corresponding markets or at their present value, plus the value of amortization and/or interest amounts that are due and receivable.

b. Acquisition Cost plus I.R.R.: These include government securities and monetary regulation instruments issued by the Argentine Central Bank that are not included in the preceding item.

These holdings are recorded at their acquisition cost adjusted on an exponential basis according to their I.R.R. The monthly accrual is charged to income or an asset offset account, depending on the securities involved:

b.1. Government debt instruments received pursuant to a swap, as payment for or through an exchange for any other government debt instruments. In the case that the market value of each instrument is lower than its book value, 50% of the monthly accrual of the I.R.R. must be charged against an asset offset account. Said offset account shall be reversed by charging to income to the extent its balance exceeds the positive difference between the market value and book value.

b.2. Monetary regulation instruments issued by the Argentine Central Bank. The monthly accrual of the I.R.R. shall be charged to income.

b.3. Government securities that were not received through a swap and that do not have any no volatility or present value that is informed by the Argentine Central Bank. These are recorded at the present value of cash flows discounted by the internal rate of return of instruments with similar characteristics, duration and volatility. When the book value exceeds the present value, the monthly accrual shall be recorded in an asset offset account.

Furthermore, those instruments that should be valued based on their fair market value but that are instead valued at their acquisition cost plus their I.R.R. may be recorded in this item when the purpose thereof is to obtain contractual cash flows. In these cases, the maximum amount to be used shall not exceed net liquid assets of 40% of deposits.

As of December 31, 2016 and December 31, 2015, taking into account the above-mentioned valuation criteria, the Company records its holdings according to the following:

1.3.1. Holdings Recorded at Fair Market Value

These holdings include trading securities that were valued according to what is stated in item a. above.

12

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

The same criterion was applied to the securities used in loans, as guarantees, transactions to be settled and repo transactions, where appropriate.

1.3.2. Holdings Recorded at their Acquisition Cost plus the I.R.R.

Holdings of government securities in Pesos and U.S. Dollars are recorded in this account, as detailed in Note 3.

The holding of such securities has been valued pursuant to the criterion stated in item b. above.

The same criterion was applied to the securities used in loans, as guarantees, transactions to be settled and repo transactions, where appropriate.

1.3.3. Instruments Issued by the Argentine Central Bank

Holdings of instruments issued by the Argentine Central Bank, which are included in the volatilities list, have been valued at their closing price in the corresponding markets. The same criterion was applied to holdings of such securities used in loans, as guarantees, transactions to be settled and repo transactions, when appropriate.

Holdings of instruments issued by the Argentine Central Bank, which are not included in the volatilities list, have been valued at their acquisition cost increased on an exponential basis according to their I.R.R. The same criterion was applied to holdings of such securities used in loans, as guarantees and in repo transactions, when appropriate.

1.4. ACCRUAL OF ADJUSTMENTS, INTEREST, EXCHANGE RATE DIFFERENCES, PREMIUMS ON FUTURE TRANSACTIONS AND VARIABLE INCOME

For foreign currency transactions and for local currency transactions that contain a principal adjustment clause or inthose in which rates have been fixed for a time period of no more than 92 days, the accrual is recognized on a straight line basis.

For local currency transactions at rates arranged for longer periods, interest is accrued on an exponential basis.

Banco de Galicia y Buenos Aires S.A. received deposits that accure interest at a variable rate pursuant to Argentine Central Bank regulations. The fixed-rate interest piece of a transaction is accrued as set forth above, while variable-rate interest is accrued by applying the agreed upon interest rate to the positive variation in the underlying asset’s price, as measured by using the underlying asset’s price at the time of the original arrangement as compared to the value at the end of the month (See item 1.12. of this Note).

For lending and borrowing transactions, which according to the legal and/or contractual conditions may be applicable, the adjustment by the C.E.R. has been accrued.

For lending transactions, the Company does not recognize interest accrual when debtors are classified in an irregular status.

1.5. OTHER RECEIVABLES RESULTING FROM FINANCIAL BROKERAGE

1.5.1. Mutual Fund Units

The holdings of mutual fund units have been valued pursuant to the value published by the mutual fund manager at fiscal year-end, less estimated selling costs, when applicable.

1.5.2. Financial Trust Debt Securities - Unlisted

Debt securities added at par have been valued at their technical value; the remaining holdings were valued at their acquisition cost increased on an exponential basis according to their I.R.R.

1.5.3. Participation Certificates in Financial Trusts - Unlisted

Participation certificates in financial trusts are valued by taking into account the share in the assets and net of liabilities, which stem from the financial statements of the respective trusts, as modified by the application of the Argentine Central Bank regulations, when applicable.

13

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

Trusts—with government-sector assets as underlying assets—have been valued pursuant to the valuation criteria described in item 1.3.2 of this Note. In the particular case of the Participation Certificate in Galtrust I Financial Trust, it has been recorded according to what is stated in item 1.3.b.3 of this Note.

1.5.4. Unlisted Notes and Debt Securities

These have been valued at their acquisition cost increased on an exponential basis according to their I.R.R.

1.6. RECEIVABLES FROM FINANCIAL LEASES

These receivables are recorded at the present value of the sum of periodic installments and residual values previously established and calculated pursuant to the terms and conditions agreed upon in the corresponding financial lease agreements by applying their I.R.R.

1.7. EQUITY INVESTMENTS

The Company’s equity investments in companies where it has a significant interest were valued pursuant to the equity method.

The remaining equity investments were valued at their acquisition cost plus, when applicable, uncollected cash dividends and stock dividends from capitalized profits. An allowance for impairment of value has been established on such equity investments where the book value exceeds the equity method value.

1.8. BANK PREMISES AND EQUIPMENT AND MISCELLANEOUS ASSETS

Bank Premises, Equipment and Miscellaneous Assets have been valued at their acquisition cost, restated in constant currency as mentioned in this Note, net of the corresponding accumulated depreciation.

Financial leases that mainly transfer risks and benefits inherent to the leased property are recognized at the beginning of the lease either by the cash value of the leased property or the present value of cash flows established in the financial lease, whichever is lower.

Depreciation charges are calculated following the straight-line method, at rates determined based on the useful life assigned to the assets, which is 600 months for real estate, up to 120 months for furniture and fixtures and no more than 60 months for the balance of the assets.

The updated residual value of the assets, taken as a whole, does not exceed their value-in-use at fiscal year-end.

1.9. INTANGIBLE ASSETS

Intangible assets have been valued at their acquisition cost, restated in constant currency, as mentioned in this Note, net of the corresponding accumulated amortization, calculated proportionally over the estimated number of months of useful life.

Amortization has been recognized on a straight-line basis over 60 months for “Organization and Development Expenses.”

1.10. MISCELLANEOUS LIABILITIES

1.10.1. Liabilities – Customers Fidelity Program “Quiero”

The fair value of the points assigned to customers through the “Quiero” Program is estimated. Said value is assessed by means of the use of a mathematical model that takes into account certain assumptions of exchange percentages, the cost for the exchanged points based on the combination of available products and the preferences of the Bank’s customers, as well as the expiration term of the customers’ non-exchanged points. As of December 31, 2016 and December 31, 2015, the liabilities recorded under “Miscellaneous Liabilities–Others” for its customers’ non-exchanged points amounted to $378,636 and $286,497, respectively.

14

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

1.11. ALLOWANCES AND PROVISIONS

1.11.1. Allowances for Loan Losses

These have been established based upon the estimated default risk of the Company’s credit assistance granted through its subsidiaries, which results from an evaluation of debtors’ compliance with their payment obligations, their economic and financial condition, and the guarantees securing their related transactions, in line with Argentine Central Bank regulations.

1.11.2. Severance Payments

Severance payments are directly charged to expenses.

The amounts that the Company may possibly have to pay for labor lawsuits are recorded under “Liabilities – Provisions for Severance Payments.”

1.11.3. Liabilities – Other Provisions

Provisions have been set up to cover contingent situations related to labor, commercial, legal, civil and tax issues and other miscellaneous risks that are likely to occur.

1.12. DERIVATIVES AND HEDGING TRANSACTIONS

1.12.1. Forward Purchase-Sale of Foreign Currency without Delivery of the Underlying Asset

The Mercado Abierto Electrónico (M.A.E.) and the Rosario Futures Exchange (RO.F.EX.) have trading environments for the closing, recording and settlement of financial forward transactions carried out among its agents. The general settlement mode for these transactions is without delivery of the traded underlying asset. Settlement is carried out on a daily basis, in Pesos, for the difference, if any, between the closing price of the underlying asset and the closing price or value of the underlying asset corresponding to the previous day, the difference in price being charged to income.

Forward purchase and sale transactions are recorded under Memorandum Accounts for the notional value traded. Accrued balances pending settlement are recorded in the category “Balances from Forward Transactions without Delivery of Underlying Asset to be Settled” under “Other Receivables Resulting from Financial Brokerage” and/or “Other Liabilities Resulting from Financial Brokerage,” where appropriate.

1.12.2. Interest Rate Swaps

These transactions are conducted within the environment created by the M.A.E., and the settlement thereof is carried out on a monthly basis, in Pesos, for the difference between the cash flows calculated using a variable rate (Badlar for private banks for time deposits of 30 to 35 days) and the cash flows calculated using a fixed rate, or vice versa, on the notional value agreed, the difference in price being charged to income.

Sale transactions are recorded under Memorandum Accounts for the notional value traded.

Accrued balances pending settlement are recorded in the category “Balances from Interest Rate Swaps to be Settled” under “Other Receivables Resulting from Financial Brokerage” and/or “Other Liabilities Resulting from Financial Brokerage,” as appropriate.

1.12.3. Call Options Bought and Written on Gold and Dollar Futures without Delivery of the Underlying Asset

These transactions have been conducted with the purpose of hedging the variable yield of the deposits received by Banco de Galicia y Buenos Aires S.A. and set forth by the Argentine Central Bank.

The deposit date, the term to exercise the option and the underlying asset are the same as those for the related deposit. Notional amounts have been computed so that the offset value of derivative instruments is similar to the variable yield of the investment. Changes in the value of the underlying asset at the time of the arrangement and at fiscal year-end, equivalent to the variable yield, have been recognized in income and are recorded under “Other Receivables Resulting from Financial Brokerage” and/or under “Other Liabilities Resulting from Financial Brokerage,” as appropriate. Premiums received and/or paid have been accrued on a straight-line basis during the currency of the agreement.

15

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

Call options bought and written on gold and dollar futures have been recorded under “Memorandum Accounts – Debit-Derivatives - Notional Value of Call Options Bought” and under “Memorandum Accounts – Credit-Derivatives – Notional Value of Call Options Written.”

Call options written on dollar futures without delivery of the underlying asset have been traded on Mercado a Término de Rosario S.A. (RoFex).

Banco de Galicia y Buenos Aires S.A.’s management of financial risks is carried out within the limits of the policies approved by the Board of Directors in such respect. In that sense, “derivative instruments” are means for the Company to hedge its risk exposures and/or used as a financial product to develop investment and trading strategies. In both cases, the use of these instruments is performed within the guidelines of internal policies set forth by the Bank.

1.13. INCOME TAX

Pursuant to the Argentine Central Bank regulations, at Banco de Galicia y Buenos Aires S.A. and Compañía Financiera Argentina S.A., the income tax charge is determined by applying the effective tax rate to the estimated taxable income, without considering the effect of any temporary differences between taxable and book income.

1.14. MINIMUM PRESUMED INCOME TAX

The minimum presumed income tax is determined at the effective rate of 1% of the computable assets at fiscal year-end. Since this tax is supplementary to the income tax, the Company’s tax liability for each fiscal year is equal to the higher of the two taxes. However, if the minimum presumed income tax were to exceed income tax in a given fiscal year, such excess may be computed as a payment on account of the income tax that could be generated in any of the next ten fiscal years. The recognition of this right and its realization stem from the ability to generate future taxable income sufficient for offsetting purposes.

Based on the foregoing, as of December 31, 2016 and December 31, 2015, the Company had assets of $9,424 and $10,230, respectively.

The breakdown of outstanding tax credits and their probable expiration date are detailed below:

Date of Generation	Tax Credit as of				Expiration Date
	12.31.16		12.31.15
2005		—		76		2015
2006		148		148		2016
2007		319		319		2017
2008		363		363		2018
2009		583		583		2019
2010		1,629		1,629		2020
2011		1,458		1,458		2021
2012		1,714		1,714		2022
2013		1,881		1,881		2023
2014		2,306		2,306		2024
2015		3,646		4,460		2025
2016		18		—		2026
		14,065		14,937

The Company has set up a provision for the minimum presumed income tax credit accrued during this fiscal year and the previous fiscal year, for $4,641 and $4,707, respectively, since its recovery is not likely at the issuance date of these financial statements.

16

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

1.15. DIFFERENCES BETWEEN THE ARGENTINE CENTRAL BANK REGULATIONS AND ARGENTINE GAAP IN FORCE IN BUENOS AIRES

The main differences between the valuation and disclosure criteria applied to these consolidated financial statements and Argentine GAAP in force in Buenos Aires are detailed below:

1.15.1. Accounting for Income Tax according to the Deferred Tax Method

Banco de Galicia y Buenos Aires S.A. and Compañía Financiera Argentina S.A. determine the income tax charge by applying the effective tax rate to the estimated taxable income, without considering the effect of any temporary differences between book and taxable income.

Pursuant to Argentine GAAP in force, the income tax must be recognized using the deferred tax method and, therefore, deferred tax assets or liabilities must be established based on the aforementioned temporary differences. In addition, unused tax loss carry-forwards or tax credits that may be offset against future taxable income should be recognized as deferred assets, provided that taxable income is likely to be generated.

The application of this criterion, based on projections prepared by the aforementioned subsidiaries of the Company, would determine deferred tax assets amounting to $335,711 as of December 31, 2016 and $414,758 as of December 31, 2015.

1.15.2. Valuation of Government Securities

Argentine Central Bank regulations set forth specific valuation criteria for government securities recorded at their acquisition cost plus the I.R.R., which are described in 1.3.b. of these Notes. Pursuant to Argentine GAAP in force in Buenos Aires, the above-mentioned assets must be valued at their current value.

As of December 31, 2016 and December 31, 2015, the application of this criterion would result in an increase in Shareholders’ Equity of about $2,489 and $ 38,418, respectively, due to the securities held by Banco de Galicia y Buenos Aires S.A.

1.15.3. Allowances for Receivables from the Non-Financial Public Sector

Current regulations issued by the Argentine Central Bank on the establishment of allowances provide that credits against the public sector are not subject to allowances for loan losses. Pursuant to Argentine GAAP, those allowances must be estimated based on the recoverability risk of the assets.

1.15.4. Restructured Loans and Liabilities

Restructured loans and financial obligations are valued based on the actually restructured principal amounts plus accrued interest and principal adjustments, when applicable, minus collections or payments made.

Pursuant to Argentine GAAP, those restructured loans and liabilities, for which modification of original conditions imply a substitution of instruments, must be recorded on the basis of the best possible estimate of the amounts receivable or payable discounted at a market rate that reflects market evaluations on the time value of money and the specific risks of such assets and liabilities at the time of restructuring.

1.16. ADOPTION OF THE INTERNATIONAL FINANCIAL REPORTING STANDARDS (I.F.R.S.) BY THE C.N.V.

The C.N.V. has established the application of Technical Pronouncement No. 26 of the Argentine Federation of Professional Councils in Economic Sciences, which adopts the International Financial Reporting Standards issued by the I.A.S.B. (International Accounting Standards Board) for certain entities included within the public offering system, whether because of their capital or their Notes, or because they have requested to be included in such system, for financial statements corresponding to the fiscal years beginning on January 1, 2012.

17

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

The adoption of such standards is not applicable to the Company since the C.N.V., in Article 2 – Section I – Chapter I of Title IV: Periodic Reporting System of the C.N.V.´s Pronouncements (Text amended in 2013), exempts banks, insurance companies and companies that invest in banks and insurance companies.

Due to the foregoing, and since the Company is in compliance with the requirements described below, which are set forth in the aforementioned article, these financial statements are presented pursuant to the valuation and disclosure criteria established by the Argentine Central Bank regulations:

• The Company’s corporate purpose is exclusively related to financial and investment activities;

• The interest in Banco de Galicia y Buenos Aires S.A. accounts for 93.36% of the Company’s assets, being the Company’s main asset;

• 88.26% of the Company’s income stems from the interest in Banco de Galicia y Buenos Aires S.A.’s income; and

• The Company has a 100% interest in Banco de Galicia y Buenos Aires S.A., thus having control over such institution.

In February 2014, the Argentine Central Bank decided financial institutions should comply with I.F.R.S., and established an implementation schedule for such standards, to be effective for fiscal years starting on January 1, 2018. In accordance with the foregoing, Banco de Galicia y Buenos Aires S.A.’s Board of Directors has become aware of the roadmap established by the Argentine Central Bank and has appointed a coordinator and an alternate coordinator, who shall be in charge of the compliance process. On March 20, 2015, it approved the Implementation Plan required by the regulations, which was submitted on March 27, 2015.

In compliance with the provisions of Communiqué “A” 5635, at the meeting held on September 27, 2016, Banco de Galicia y Buenos Aires S.A.’s Board of Directors approved the third report on the progress made during the six-month period from March 2016 to September 2016. On such date, Banco de Galicia y Buenos Aires S.A.’s Audit Committee approved the Special Internal Audit Report related to the Implementation Plan’s level of progress with regard to achieving compliance with the International Financial Reporting Standards (I.F.R.S.). At the meeting held on January 5, 2017, Banco de Galicia y Buenos Aires S.A.’s Board of Directors became aware of the quarterly report on the level of progress with regard to the implementation of the I.F.R.S., as established in such communiqué.

Banco de Galicia y Buenos Aires S.A. has met the reporting requirements established by the Argentine Central Bank’s Communiqué “A” 5844, as supplemented.

As mentioned in the preceding paragraphs, the Company, together with the subsidiaries, began coordinating the tasks related to the compliance with the I.F.R.S. in order to meet effective regulations.

18

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

NOTE 2. CONSOLIDATED CONTROLLED COMPANIES

The basic information regarding Grupo Financiero Galicia’s consolidated controlled companies is detailed as follows:

Information as of:	12.31.16
	Direct and Indirect Holding
Issuing Company	Shares				Percentage of Equity Investment Held in
	Type		Amount		Total Capital		Possible Votes
Banco de Galicia y Buenos Aires S.A. (*)		Ordinary		562,326,651		100.00000		100.00000
Cobranzas Regionales S.A. (**)		Ordinary		7,700		77.00000		77.00000
Cobranzas y Servicios S.A.		Ordinary		475,728		100.00000		100.00000
Compañía Financiera Argentina S.A.		Ordinary		557,562,500		100.00000		100.00000
Galicia Administradora de Fondos S.A.		Ordinary		20,000		100.00000		100.00000
Galicia Broker Asesores de Seguros S.A.		Ordinary		71,310		99.99439		99.99439
Galicia Retiro Compañía de Seguros S.A.		Ordinary		7,727,271		99.99991		99.99991
Galicia Seguros S.A.		Ordinary		1,830,883		99.99978		99.99978
Galicia Valores S.A.		Ordinary		1,000,000		100.00000		100.00000
Galicia Warrants S.A.		Ordinary		1,000,000		100.00000		100.00000
Net Investment S.A.		Ordinary		12,000		100.00000		100.00000
Procesadora Regional S.A.		Ordinary		12,709,967		78.15000		78.15000
Sudamericana Holding S.A.		Ordinary		185,653		100.00000		100.00000
Tarjeta Naranja S.A. (***)		Ordinary		1,848		77.00000		77.00000
Tarjetas Cuyanas S.A. (***)		Ordinary		2,489,628		77.00000		77.00000
Tarjetas del Mar S.A. (***)		Ordinary		4,787,962		60.00000		60.00000
Tarjetas Regionales S.A. (*)		Ordinary		829,886,212		77.00000		77.00000
Information as of:	12.31.15
Issuing Company	Direct and Indirect Holding
	Shares				Percentage of Equity Investment Held in
	Type		Amount		Total Capital		Possible Votes
Banco de Galicia y Buenos Aires S.A. (*)		Ordinary		562,326,651		100.00000		100.00000
Banco Galicia Uruguay S.A. (In liquidation) (****)		Ordinary		69,099		100.00000		100.00000
Cobranzas Regionales S.A. (**)		Ordinary		7,700		77.00000		77.00000
Cobranzas y Servicios S.A.		Ordinary		475,728		100.00000		100.00000
Compañía Financiera Argentina S.A.		Ordinary		557,562,500		100.00000		100.00000
Galicia Administradora de Fondos S.A.		Ordinary		20,000		100.00000		100.00000
Galicia Broker Asesores de Seguros S.A.		Ordinary		71,310		99.99439		99.99439
Galicia Retiro Compañía de Seguros S.A.		Ordinary		7,727,271		99.99991		99.99991
Galicia Seguros S.A.		Ordinary		1,830,883		99.99978		99.99978
Galicia Valores S.A.		Ordinary		1,000,000		100.00000		100.00000
Galicia Warrants S.A.		Ordinary		1,000,000		100.00000		100.00000
Net Investment S.A.		Ordinary		12,000		100.00000		100.00000
Procesadora Regional S.A.		Ordinary		12,709,967		78.15000		78.15000
Sudamericana Holding S.A.		Ordinary		185,653		100.00000		100.00000
Tarjeta Naranja S.A. (***)		Ordinary		1,848		77.00000		77.00000
Tarjetas Cuyanas S.A. (***)		Ordinary		2,489,628		77.00000		77.00000
Tarjetas del Mar S.A. (***)		Ordinary		4,787,962		60.00000		60.00000
Tarjetas Regionales S.A. (*)		Ordinary		829,886,212		77.00000		77.00000

(*) Ordinary shares A and B.

(**) With a F.V. of 100.

(***) With a F.V. of 10.

(****) With a F.V. of 1000.

19

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

Information as of:	12.31.16
Company	Assets		Liabilities		Shareholders’ Equity		Net Income
Banco de Galicia y Buenos Aires S.A.		209,306,331		190,400,460		18,905,871		5,093,699
Cobranzas Regionales S.A.		61,374		31,082		30,292		6,869
Cobranzas y Servicios S.A.		27,508		18,855		8,653		8,082
Compañía Financiera Argentina S.A. (**)		5,893,851		4,678,351		1,215,500		342,550
Galicia Administradora de Fondos S.A.		280,237		73,502		206,735		196,851
Galicia Broker Asesores de Seguros S.A.(*)		22,293		14,226		8,067		3,763
Galicia Retiro Compañía de Seguros S.A.(*)		173,576		136,705		36,871		1,157
Galicia Seguros S.A.(*)		2,001,112		1,043,698		957,414		296,272
Galicia Valores S.A.		89,004		6,268		82,736		20,670
Galicia Warrants S.A.		112,504		54,454		58,050		31,628
Net Investment S.A.		262		4		258		48
Procesadora Regional S.A.		22,404		7,439		14,965		5,906
Sudamericana Holding S.A.(*)		1,029,861		10,716		1,019,145		312,914
Tarjeta Naranja S.A.		24,997,877		20,316,446		4,681,431		1,445,086
Tarjetas Cuyanas S.A.		5,592,813		4,641,761		951,052		203,470
Tarjetas del Mar S.A.		1,296,643		1,138,482		158,161		34,208
Tarjetas Regionales S.A.		6,097,436		15,175		6,082,261		1,693,406

(*) For the six-month period ended December 31, 2016. (**) The Board of Directors has decided to approve the offer to buy the whole minority interest in the capital stock of Compañía Financiera Argentina S.A. made by Mr. Julio Alfredo Fraomeni and Galeno Capital S.A.U. (See Note 38 to the consolidated financial statements).

Information as of:	12.31.15
Company	Assets		Liabilities		Shareholders’ Equity		Net Income
Banco de Galicia y Buenos Aires S.A.		138,712,123		124,899,951		13,812,172		3,912,920
Banco Galicia Uruguay S.A. (In liquidation)		41,109		9,329		31,780		(17,821	)
Cobranzas Regionales S.A.		46,918		23,495		23,423		5,074
Cobranzas y Servicios S.A.		80,565		14,174		66,391		24,674
Compañía Financiera Argentina S.A.		3,748,000		2,498,053		1,249,947		127,316
Galicia Administradora de Fondos S.A.		168,857		48,972		119,885		115,963
Galicia Broker Asesores de Seguros S.A.(*)		16,203		9,933		6,270		1,967
Galicia Retiro Compañía de Seguros S.A.(*)		128,320		114,029		14,291		(2,573	)
Galicia Seguros S.A.(*)		1,261,027		735,915		525,112		243,462
Galicia Valores S.A.		111,442		49,376		62,066		20,727
Galicia Warrants S.A.		90,935		44,513		46,422		31,253
Net Investment S.A.		217		7		210		37
Procesadora Regional S.A.		13,846		4,787		9,059		(9,470	)
Sudamericana Holding S.A.(*)		656,846		11,235		645,611		256,844
Tarjeta Naranja S.A.		18,170,348		14,634,003		3,536,345		1,255,586
Tarjetas Cuyanas S.A.		4,212,399		3,393,544		818,855		285,094
Tarjetas del Mar S.A.		1,116,396		992,443		123,953		31,591
Tarjetas Regionales S.A.		4,609,538		10,683		4,598,855		1,556,589

(*) For the six-month period ended December 31, 2015

The General Extraordinary Shareholders’ Meeting of Banco Galicia Uruguay S.A. (in liquidation), held on April 30, 2016, approved the Final Special Financial Statements and the start of the process of cancelling the company’s legal status with the authorities of Uruguay.

On January 12, 2017, the Company accepted the offer to buy all the shares in Compañía Financiera Argentina S.A. and in Cobranzas y Servicios S.A. made by Mr. Julio Alfredo Fraomeni and Galeno Capital S.A.U. (See Note 38).

The percentage of the controlled companies’ Shareholders’ Equity owned by third parties has been disclosed in the Balance Sheet under the “Minority Interest in Consolidated Controlled Companies” account.

The gain (loss) on the minority interest is disclosed in the Income Statement under “Minority Interest Gain (Loss).”

20

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

The minority interest percentages at fiscal year-end are as follows:

Information as of:	12.31.16			12.31.15
Cobranzas Regionales S.A.		23.00000	%		23.00000	%
Galicia Broker Asesores de Seguros S.A.		0.00561	%		0.00561	%
Galicia Retiro Compañía de Seguros S.A.		0.00009	%		0.00009	%
Galicia Seguros S.A.		0.00022	%		0.00022	%
Procesadora Regional S.A.		21.85000	%		21.85000	%
Tarjeta Naranja S.A.		23.00000	%		23.00000	%
Tarjetas Cuyanas S.A.		23.00000	%		23.00000	%
Tarjetas del Mar S.A.		40.00000	%		40.00000	%
Tarjetas Regionales S.A.		23.00000	%		23.00000	%

NOTE 3. GOVERNMENT AND PRIVATE SECURITIES

As of December 31, 2016 and December 31, 2015, holdings of government and private securities were as follows:

	12.31.16		12.31.15
Government Securities
Holdings Recorded at Fair Market Value
Government Bonds		3,228,759		2,376,386
Total Holdings Recorded at Fair Market Value		3,228,759		2,376,386
Holdings Recorded at their Acquisition Cost plus the I.R.R.
Government Bonds		1,922,473		1,389,617
Total Holdings Recorded at their Acquisition Cost plus the I.R.R.		1,922,473		1,389,617
Instruments Issued by the Argentine Central Bank
Argentine Central Bank Bills at Fair Market Value		1,576,204		6,166,440
Argentine Central Bank Bills at Acquisition Cost plus the I.R.R.		6,973,364		5,592,647
Total Instruments Issued by the Argentine Central Bank		8,549,568		11,759,087
Total Government Securities		13,700,800		15,525,090
Total Government and Private Securities		13,700,800		15,525,090

NOTE 4. LOANS

The lending activities carried out by the Company’s subsidiaries are as follows:

a. Loans to the Non-financial Public Sector: They are primarily loans to the Argentine National Government and to Provincial Governments.

b. Loans to the Financial Sector: They represent loans to banks and local financial institutions.

c. Loans to the Non-financial Private Sector and Residents Abroad: They include the following types of loans:

Overdrafts: Short-term obligations issued in favor of customers.

Promissory Notes: Endorsed promissory notes, discount and factoring.

Mortgage Loans: Loans for the purchase of real estate for housing purposes, secured by such purchased real estate or commercial loans secured by real estate mortgages.

Collateral Loans: Loans in which a pledge is granted as collateral, as an integral part of the loan instrument.

Credit Card Loans: Loans granted to credit card holders.

Personal Loans: Loans to natural persons.

Others: This item primarily involves export prefinancing loans and short-term placements in banks abroad.

According to the Argentine Central Bank regulations, the loan portfolio breaks down as follows: The non-financial public sector, the financial sector and the non-financial private sector and residents abroad. Moreover, the Company must disclose the type of collateral established on the applicable loans to the non-financial private sector.

21

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

As of December 31, 2016 and December 31, 2015, the classification of the loan portfolio was as follows:

	12.31.16			12.31.15
Non-financial Public Sector		14,359			17,705
Financial Sector		2,098,037			761,547
Non-financial Private Sector and Residents Abroad		140,046,017			101,125,473
With Preferred Guarantees		3,321,515			2,988,119
With Other Collateral		18,834,154			13,189,545
With No Collateral		117,890,348			84,947,809
Subtotal		142,158,413			101,904,725
Allowance for Loan Losses		(4,706,758	)		(3,559,994	)
Total		137,451,655			98,344,731

Said loans were granted in the normal course of business with standard terms, interest rates, and collateral requirements.

NOTE 5. STATEMENT OF DEBTORS’ STATUS

The loan portfolio classification pursuant to the loan classification criteria set forth by the Argentine Central Bank is detailed as follows:

COMMERCIAL LOAN PORTFOLIO

Classification:	Description
Normal	Cash flow analysis shows that the customer is widely able to meet all of its financial commitments. Among the indicators that can reflect this situation, the following are worth noting: The customer shows a liquid financial situation, regularly complies with the payment of its obligations, has a qualified and honest management, has an appropriate information system, belongs to a sector of the economic activity or to a business sector that shows an acceptable future trend and is competitive with regard to the activities it conducts.
With Special Follow-Up – Under Observation	Cash flow analysis shows, at the time of carrying out the analysis, that the customer is able to meet all of its financial commitments. However, there are possible situations that, in case they are not duly controlled or else solved, could compromise the customer’s future repayment capacity.
With Special Follow-Up - Under Negotiation or under Refinancing Agreements	This category includes those customers who, when unable to meet their financial commitments pursuant to the terms and conditions agreed, irrefutably state their intention to refinance their debt.
With Problems	Cash flow analysis shows that the customer is unable to meet its financial commitments in a normal manner and that, in case such problems are not solved, they could result in a loss for the financial institution.
High Risk of Insolvency	Cash flow analysis shows that the customer is highly unlikely to meet all of its financial commitments.
Uncollectible	Customers’ debts included in this category are considered uncollectible. Even though there is some possibility of recovering these assets under certain circumstances in the future, it is evident they are uncollectible at the time of the analysis.

CONSUMER AND HOUSING LOAN PORTFOLIO

Classification:	Description
Normal Performance	This category includes customers who duly and timely comply with the payment of their commitments, or else with payment in arrears of less than 31 days. Provisional overdrafts shall be considered normal until day 61 from the granting date.
Inadequate Performance	This category includes customers with occasional late payments at the time of meeting their commitments, with payments in arrears of more than 31 days and up to 90 days.
Deficient Performance	This category includes customers who show some inability to meet their commitments, with payments in arrears of more than 90 days and up to 180 days.
Difficult Collection	This category includes customers with payments in arrears of more than 180 days and up to one year, or who are subject to judicial proceedings for collection, if their payments in arrears do not exceed one year.
Uncollectible	This category includes insolvent or bankrupt customers, with little or no possibility of collection, or with payments in arrears in excess of one year.

22

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

The “financing” category includes the items with regard to which debtors should be classified, from the point of view of the debtors’ creditworthiness, recorded under the accounts detailed below:

	12.31.16		12.31.15
Loans		142,158,413		101,904,725
Other Receivables Resulting from Financial Brokerage		3,198,881		3,033,356
Receivables from Financial Leases		969,532		976,250
Miscellaneous Receivables		132,722		19,651
Contingent Liabilities		11,465,674		9,485,658
Total		157,925,222		115,419,640

As of December 31, 2016 and December 31, 2015, the classification of debtors was as follows:

	12.31.16		12.31.15
COMMERCIAL LOAN PORTFOLIO
Normal		55,998,509		41,555,896
Backed by Preferred Guarantees and Counter-guarantees “A”		117,608		511,207
Backed by Preferred Guarantees and Counter-guarantees “B”		2,787,547		2,593,290
With No Preferred Guarantees or Counter-guarantees		53,093,354		38,451,399
With Special Follow-Up – Under Observation		124,037		166,093
Backed by Preferred Guarantees and Counter-guarantees “B”		50,931		75,847
With No Preferred Guarantees or Counter-guarantees		73,106		90,246
With Problems		75,354		92,125
Backed by Preferred Guarantees and Counter-guarantees “B”		39,697		51,689
With No Preferred Guarantees or Counter-guarantees		35,657		40,436
High Risk of Insolvency		91,686		62,486
Backed by Preferred Guarantees and Counter-guarantees “A”		395		—
Backed by Preferred Guarantees and Counter-guarantees “B”		29,696		25,076
With No Preferred Guarantees or Counter-guarantees		61,595		37,410
Uncollectible		16,989		97,670
Backed by Preferred Guarantees and Counter-guarantees “A”		—		302
Backed by Preferred Guarantees and Counter-guarantees “B”		249		2,710
With No Preferred Guarantees or Counter-guarantees		16,740		94,658
Total Commercial Loan Portfolio		56,306,575		41,974,270
CONSUMER AND HOUSING LOAN PORTFOLIO
Normal		94,438,835		69,134,231
Backed by Preferred Guarantees and Counter-guarantees “A”		19,119		48,497
Backed by Preferred Guarantees and Counter-guarantees “B”		1,318,010		1,091,184
With No Preferred Guarantees or Counter-guarantees		93,101,706		67,994,550
Low Risk		2,621,212		1,361,365
Backed by Preferred Guarantees and Counter-guarantees “A”		13		571
Backed by Preferred Guarantees and Counter-guarantees “B”		17,422		9,620
With No Preferred Guarantees or Counter-guarantees		2,603,777		1,351,174
Medium Risk		1,700,581		801,461
Backed by Preferred Guarantees and Counter-guarantees “A”		—		206
Backed by Preferred Guarantees and Counter-guarantees “B”		12,269		8,994
With No Preferred Guarantees or Counter-guarantees		1,688,312		792,261
High Risk		2,005,901		1,109,637
Backed by Preferred Guarantees and Counter-guarantees “A”		—		232
Backed by Preferred Guarantees and Counter-guarantees “B”		10,085		4,920
With No Preferred Guarantees or Counter-guarantees		1,995,816		1,104,485
Uncollectible		844,958		1,033,686
Backed by Preferred Guarantees and Counter-guarantees “A”		272		429
Backed by Preferred Guarantees and Counter-guarantees “B”		5,020		15,297
With No Preferred Guarantees or Counter-guarantees		839,666		1,017,960
Uncollectible due to Technical Reasons		7,160		4,990
With No Preferred Guarantees or Counter-guarantees		7,160		4,990
Total Commercial and Housing Loan Portfolio		101,618,647		73,445,370
Grand Total		157,925,222		115,419,640

23

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

The management and mitigation of credit risk are described in Note 35 on risk management policies.

NOTE 6. ALLOWANCES FOR LOAN LOSSES

The changes in allowances for loan losses as of December 31, 2016 and December 31, 2015 were as follows:

	12.31.16		12.31.15
Balances at Beginning of Fiscal Year		3,559,994		2,614,919
Increases		3,388,865		2,147,694
Decreases		2,242,101		1,202,619
Reversals		312,443		75,148
Uses		1,929,658		1,127,471
Balances at Fiscal Year-end		4,706,758		3,559,994

NOTE 7. OTHER RECEIVABLES RESULTING FROM FINANCIAL BROKERAGE – OTHERS NOT INCLUDED IN THE DEBTOR CLASSIFICATION REGULATIONS

As of December 31, 2016 and December 31, 2015, the breakdown of the account “Others Not Included in the Debtor Classification Regulations” was as follows:

	12.31.16		12.31.15
Unlisted Participation Certificates and Debt Securities in Financial Trusts		1,643,294		1,494,565
Others		2,467,622		599,393
Total		4,110,916		2,093,958

NOTE 8. DERIVATIVE INSTRUMENTS

The amounts of transactions conducted as of fiscal year-end, net of eliminations between affiliated companies, when appropriate, are detailed as follows:

Item	Underlying Asset	Type of Settlement	Amount as of
			12.31.16		12.31.15
Forward Purchase – Sale of Foreign Currency
Purchases	Foreign currency	Settlement on a daily basis		16,144,003		30,580,294
Sales	Foreign currency	Settlement on a daily basis		11,066,971		20,393,874
Purchases by Customers	Foreign currency	Settlement on a daily basis		215,072		—
Sales by Customers	Foreign currency	Settlement on a daily basis		1,195,463		7,044,538
Interest Rate Swaps
Swaps	Others	Settlement on a daily basis		75,000		40,000
Swaps from Customers	Others	Settlement on a daily basis		—		20,000
Repo Transactions
Forward Purchases	Argentine Government Securities	With delivery of the underlying asset		1,783,342		—
Call Options Bought and Written on Futures
Call Options Bought on Dollar	Dollar	Settlement on a daily basis		—		624,951
Call Options Written on Dollar	Dollar	Settlement on a daily basis		10,200		737,832
Call Options Bought on Gold	Gold	Settlement on a daily basis		149,512		—
Call Options Written on Gold	Gold	Settlement on a daily basis		164,463		—

24

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

NOTE 9. EQUITY INVESTMENTS

As of December 31, 2016 and December 31, 2015, the breakdown of “Equity Investments” was as follows:

	12.31.16			12.31.15
In Financial Institutions, and Supplementary and Authorized Activities
Banco Latinoamericano de Exportaciones S.A.		7,858			6,447
Mercado de Valores de Buenos Aires S.A.		2,749			2,749
Prisma Medios de Pagos S.A. (Ex Visa Argentina S.A.)		7,836			7,836
Others		829			829
Total Equity Investments in Financial Institutions, Supplementary and Authorized Activities		19,272			17,861
In Non-financial Institutions
Aguas Cordobesas S.A.		8,911			8,911
Distrocuyo S.A.		3,955			3,955
Electrigal S.A.		5,455			5,455
Nova Re Compañía Argentina de Reaseguros S.A.		14,716			14,956
Others		1,256			1,229
Total Equity Investments in Non-financial Institutions		34,293			34,506
Provisions		(601	)		(636	)
Total		52,964			51,731

NOTE 10. MISCELLANEOUS RECEIVABLES - OTHERS

As of December 31, 2016 and December 31, 2015, the breakdown of “Miscellaneous Receivables—Others” was as follows:

	12.31.16		12.31.15
Sundry Debtors		396,380		391,962
Deposits as Collateral		1,536,664		1,425,883
Tax Advances		1,159,971		577,202
Payments in Advance		313,109		201,865
Others		45,862		95,374
Total		3,451,986		2,692,286

NOTE 11. BANK PREMISES AND EQUIPMENT

As of December 31, 2016 and December 31, 2015, the breakdown of “Bank Premises and Equipment” was as follows:

	12.31.16			12.31.15
Real Estate		2,050,436			1,903,121
Furniture and Fixtures		578,779			455,189
Machines and Equipment		1,840,000			1,073,438
Vehicles		30,739			22,413
Others		36,727			18,499
Accumulated Depreciation		(1,663,129	)		(1,393,575	)
Total		2,873,552			2,079,085

As of December 31, 2016 and December 31, 2015, the depreciation charge amounted to $301,387 and $218,611, respectively.

25

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

NOTE 12. MISCELLANEOUS ASSETS

As of December 31, 2016 and December 31, 2015, the breakdown of “Miscellaneous Assets” was as follows:

	12.31.16		12.31.15
Work in Progress		947,590		538,327
Advances for Purchase of Assets		86,042		105,109
Works of Art		1,665		1,619
Assets under Lease		—		1,315
Assets Acquired through Foreclosures		2,259		2,261
Stationery and Office Supplies		64,566		53,759
Other Miscellaneous Assets		119,115		117,683
Total		1,221,237		820,073

As of December 31, 2016 and December 31, 2015, the depreciation and loss charge amounted to $1,245 and $3,433, respectively.

NOTE 13. INTANGIBLE ASSETS

As of December 31, 2016 and December 31, 2015, the breakdown of “Intangible Assets” was as follows:

	12.31.16		12.31.15
Goodwill Net of Accumulated Amortization amounting to $43,823 and $34,149, respectively.		5,642		15,316
Organization and Development Expenses Net of Accumulated Amortization amounting to $2,333,228 and $1,555,116, respectively.		2,576,613		2,010,528
Total		2,582,255		2,025,844

As of December 31, 2016 and December 31, 2015, the amortization charge amounted to $756,218 and $645,116, respectively.

NOTE 14. OTHER ASSETS

The account “Other Assets” includes assets related to insurance activity. As of December 31, 2016 and December 31, 2015, the breakdown of this account was as follows:

	12.31.16			12.31.15
Premiums Receivable		532,531			412,664
Receivables from Reinsurers		11,600			9,735
Commissions Receivable		8,517			5,281
Others		1,870			1,967
Allowances		(15,378	)		(10,137	)
Total		539,140			419,510

NOTE 15. RESTRICTED ASSETS AND OTHER CONTINGENT LIABILITIES

Pursuant to the Argentine Central Bank regulations, Banco de Galicia y Buenos Aires S.A. shall maintain a monthly average liquidity level.

26

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

As of December 31, 2016, the balances recorded by such institution as computable items are as follows:

Item	$		US$		Euros(*)
Checking Accounts at the Argentine Central Bank		16,268,825		2,199,062		14
Special Guarantees Accounts at the Argentine Central Bank		2,268,689		3,600		—
Total Computable Items to Meet Minimum Cash Requirements		18,537,514		2,202,662		14

(*) Stated in thousands of US$.

As of December 31, 2016, the ability to freely dispose of certain assets corresponding to the controlled companies was restricted as follows:

BANCO DE GALICIA Y BUENOS AIRES S.A.

a) Cash and Government Securities

	$
- From repo transactions		182,854
- For transactions carried out at RO.F.EX.		424,831
- For debit / credit cards transactions		743,592
- For attachments		102
- Liquidity required to conduct transactions as agents at the C.N.V.		18,318
- For the contribution to the M.A.E.’s Joint Guarantee Fund (Fondo de Garantía Mancomunada)		10,863
- For other transactions		5,931

b) Special Guarantees Accounts

Special guarantees accounts have been opened at the Argentine Central Bank as collateral for transactions involving electronic clearing houses, checks for settling debts and other similar transactions, which, as of December 31, 2016 amounted to $2,325,750.

c) Deposits in favor of the Argentine Central Bank

	$
- Unavailable deposits related to foreign exchange transactions		533
- Securities held in custody to act as register agent of book-entry mortgage securities		2,260
- Custody role of securities representing the investments in the Argentine Integrated Social Security System’s F.G.S.		471,268

d) Equity Investments

The account “Equity Investments” includes shares, the transfer of which is subject to the prior approval of the National or Provincial authorities, as applicable, under the terms of the concession contracts signed:

• Electrigal S.A.: 1,222,406 non-transferable non-endorsable registered ordinary shares.

• Aguas Cordobesas S.A.: 900,000 class E ordinary shares.

Banco de Galicia y Buenos Aires S.A., as a shareholder of Aguas Cordobesas S.A. and in proportion to its 10.833% interest, is jointly responsible before the Provincial State for the contractual obligations arising from the concession contract during the entire term thereof.

If any of the other shareholders fails to comply with the commitments arising from their joint responsibility, Banco de Galicia y Buenos Aires S.A. may be forced to assume the unfulfilled commitment by the grantor, but only in the proportion and to the extent of the interest held by the Bank.

27

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

e) Contributions to Garantizar S.G.R.’s Risk Fund

Banco de Galicia y Buenos Aires S.A., in its capacity as a sponsoring partner of Garantizar S.G.R.’s Risk Fund, is committed to maintaining the contributions made to the fund for two (2) years. As of December 31, 2016, the Bank’s contribution amounts to $100,000.

f) Guarantees Granted for Direct Obligations

	$
FMO’s credit lines		17,969
PROPARCO’s credit lines		49,652
Global Credit Program for the Micro-, Small- and Medium-sized Companies		6,384
Credit Program granted to the province of San Juan		32,735
Regional Economies Competitiveness Program (PROCER, as per its initials in Spanish)		151,542

As of December 31, 2016, the total amount of restricted assets corresponding to Banco de Galicia y Buenos Aires S.A. for the aforementioned items was $4,544,584, while as of December 31, 2015 it was $3,808,754.

COMPAÑÍA FINANCIERA ARGENTINA S.A.

	$
- For debit / credit cards transactions		12,221
- For attachments		473
- Liquidity required to conduct transactions as agents at the C.N.V.		2,961
- From repo transactions		15,296
- Special guarantees accounts at the Argentine Central Bank for transactions involving electronic clearing houses		30,648

As of the date of these financial statements, attachments are fully included in a provision.

GALICIA VALORES S.A.

	$
- Share of Mercado de Valores de Buenos Aires		2,150
- Liquidity required to conduct transactions as agents at the C.N.V.		3,925

TARJETAS DEL MAR S.A.

	$
Guarantees related to lease agreements		93

TARJETA NARANJA S.A.

	$
- Attachments in connection with lawsuits		283
- Guarantees related to lease agreements		2,698
- For transactions carried out at RO.F.EX.		117,542

Moreover, pursuant to the agreements entered into with financial institutions and as collateral for the loans received and the issuance of notes, Tarjeta Naranja S.A. has agreed not to dispose of any assets or levy any encumbrance

28

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

thereon, for an amount higher than 25% of Tarjeta Naranja S.A.’s assets in some cases. It is worth noting that the above-mentioned restrictions shall not be applied for transactions carried out during the ordinary course of the company’s business.

TARJETAS CUYANAS S.A.

	$
Guarantees related to lease agreements		1,423

As December 31, 2016, the total amount of restricted assets for the aforementioned items in the aforementioned controlled companies was $189,713, while as of December 31, 2015 it was $380,723.

NOTE 16. NOTES

The following is a breakdown of the Global Programs for the Issuance of Notes outstanding:

Company	Authorized Amount (*)		Type of Notes	Term of Program	Date of Approval by Shareholders’ Meeting	Approval by the C.N.V.
Grupo Financiero Galicia S.A.	US$	100,000	Simple notes, not convertible into shares	5 years	03.09.09 confirmed on 08.02.12	Resolution No. 16113 dated 04.29.09 and extended through Resolution No. 17343 dated 05.08.14. Authorization of the increase, Resolution No. 17064 dated 04.25.13
Banco de Galicia y Buenos Aires S.A.	US$	1.100.000	Simple notes, not convertible into shares, subordinated or not, to be adjusted or not, secured or unsecured.	5 years	04.28.05, 04.14.10, 04.29.15, 04.26.16 and 11.09.16	Resolution No. 15228 dated 11.04.05 and extended through Resolution No. 16454 dated 11.11.10 and Resolution No. 17883 dated 11.20.15. Increase of the authorized amount through Resolution No. 18081 dated 06.10.16 and Resolution No. 18480 dated 01.26.17
Compañía Financiera Argentina S.A.	US$	250,000	Simple notes, not convertible into shares	5 years	11.21.05, 10.08.07, 11.25.10 and 04.17.15	Resolution No. 15440 dated 08.03.06, extended through Resolution No. 16505 dated 01.27.11 and Resolution No. 17958 dated 01.08.16. Increase of the authorized amount through Resolution No. 15848 dated 03.19.08 and Resolution No. 16505 dated 01.27.11
Tarjeta Naranja S.A.	US$	650,000	Simple notes, not convertible into shares	5 years	03.08.12	Resolution No. 16822 dated 05.23.12 and extended through Resolution No. 17676 dated 05.21.15
Tarjetas Cuyanas S.A.	US$	250,000	Simple notes, not convertible into shares	5 years	03.30.10 confirmed on 04.06.10 and 02.15.13	Resolution No. 16328 dated 05.18.10. Authorization of the increase, Resolution No. 17072 dated 05.02.13
Tarjetas del Mar S.A.	US$	75,000	Simple notes, not convertible into shares	5 years	03.19.15	Resolution No. 17969 dated 01.21.16

(*) Or its equivalent in any other currency.

The Company has the following Unsubordinated Notes outstanding issued under the other Global Programs detailed in the table above as of the close of the fiscal year:

Company	Date of Placement	Currency	Class No.	F.V.		Type (**)	Term	Maturity Date	Rate	Book Value(*)					Issuance Authorized by the C.N.V.
										12.31.16			12.31.15
Grupo Financiero Galicia S.A.	01.30.14	$	V Series II	$	78,200	Simple	36 months	01.31.17	Variable Badlar + 5.25%		81,632			79,876		04.25.13
Grupo Financiero Galicia S.A.	10.23.14	$	VI Series I	$	140,155	Simple	18 months	04.23.16	Variable Badlar + 3.25%		—	(1)		123,091		10.03.14

(*) It includes principal and interest, net of eliminations when appropriate.

(**) Not convertible into shares.

(1) Settled upon maturity.

29

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

Company	Date of Placement	Currency	Class No.	F.V.		Type (**)	Term	Maturity Date	Rate	Book Value(*)				Issuance Authorized by the C.N.V.
										12.31.16		12.31.15
Grupo Financiero Galicia S.A.	10.23.14	$	VI Series II	$	109,845	Simple	36 months	10.23.17	Variable Badlar + 4.25%		115,114		115,617		10.03.14
Grupo Financiero Galicia S.A.	07.27.15	$	VII	$	160,000	Simple	24 months	07.27.17	(1)		164,075		167,694		07.16.15
Banco de Galicia y Bs. As. S.A.	05.04.11	US$	—	US$	300,000	Simple	84 months	—	(2)(5)		4,683,085		3,839,864		04.14.11
Banco de Galicia y Bs. As. S.A.	07.19.16	US$	—	US$	250,000	Subordinated	120 months (3)	—	(4)(5)		4,065,255		—		06.23.16
Compañía Financiera Argentina S.A.	09.24.14	$	XII Series II	$	200,000	Simple	24 months	09.24.16	Variable Badlar + 4.00%		—		182,899		09.16.14
Compañía Financiera Argentina S.A.	12.09.14	$	XIII Series II	$	77,375	Simple	24 months	12.09.16	Variable Badlar + 4.40%		—		76,272		11.26.14
Compañía Financiera Argentina S.A.	05.05.15	$	XIV	$	249,000	Simple	21 months	02.05.17	27.24% fixed up to the ninth month, then variable Badlar + 4.25%		72,696		240,531		04.15.15
Compañía Financiera Argentina S.A.	07.30.15	$	XV	$	210,000	Simple	21 months	04.30.17	27.99% fixed up to the ninth month, then variable Badlar + 4.50%		125,698		174,031		07.22.15
Compañía Financiera Argentina S.A.	02.02.16	$	XVI	$	300,000	Simple	21 months	08.02.17	Variable Badlar + 4.50%		311,790		—		01.21.16
Compañía Financiera Argentina S.A.	05.24.16	$	XVII Series I	$	58,333	Simple	18 months	11.24.17	Minimum 36% fixed up to the third month, then variable Badlar + 4%		67,125		—		05.12.16
Compañía Financiera Argentina S.A.	05.24.16	$	XVII Series II	$	287,500	Simple	36 months	05.24.19	Minimum 36% fixed up to the sixth month, then variable Badlar + 4.98%		220,375		—		05.12.16

(*) Includes principal and interest, net of eliminations when appropriate.

(**) Not convertible into shares.

(1) Annual nominal 27% fixed rate during the first nine months, and variable BADLAR plus a nominal annual 4.25% rate for the following 15 months.

(2) Interest agreed at an annual 8.75% rate shall be paid semiannually on May 4 and November 4 of each year until the maturity date, starting on November 4, 2011.

(3) Amortization shall be fully made upon maturity, on July 19, 2026, unless redeemed, at the issuer’s option, fully at a price equal to 100% of the outstanding principal plus accrued and unpaid interest.

(4) Fixed 8.25% rate (as from the issuance date to July 19, 2021, inclusively); and margin to be added to the nominal Benchmark Readjustment Rate of 7.156% p.a. to the due date of Notes. Such interest shall be payable semiannually on January 19 and July 19 as from 2017.

(5) The net proceeds from this issuance of notes was applied to investments in working capital, other loans and other uses envisaged by the provisions of the Law on Notes and the Argentine Central Bank regulations.

30

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

Company	Date of Placement	Currency	Class No.	F.V.		Type (**)	Term	Maturity Date	Rate	Book Value(*)					Issuance Authorized by the C.N.V.
										12.31.16		12.31.15
Compañía Financiera Argentina S.A.	08.05.16	$	XVIII	$	350,000	Simple	18 months	02.05.18	Minimum 29.5% fixed up to the third month, then variable Badlar + 2.88%		354,176		—			07.29.16
Tarjeta Naranja S.A.	01.28.11	US$	XIII	US$	200,000	Simple	2192 days	01.28.17	Annual Nominal Fixed at 9%		1,101,657		1,816,607			01.14.11
Tarjeta Naranja S.A.	02.26.14	$	XXIV Series II	$	33,500	Simple	1096 days	02.26.17	Variable Badlar + 5%		34,508		34,494			02.14.14
Tarjeta Naranja S.A.	04.30.14	$	XXV Series II	$	170,032	Simple	731 days	04.30.16	Variable Badlar + 4.15%		—		149,925			04.21.14
Tarjeta Naranja S.A.	07.11.14	$	XXVI Series II	$	161,500	Simple	731 days	07.11.16	Variable Badlar + 3.99%		—		153,879			07.01.14
Tarjeta Naranja S.A.	10.03.14	$	XXVII Series II	$	158,000	Simple	731 days	10.03.16	Variable Badlar + 3.95%		—		128,187			09.19.14
Tarjeta Naranja S.A.	01.22.15	$	XXVIII Series II	$	129,000	Simple	731 days	01.22.17	Variable Badlar + 4.50%		26,463		98,594			01.09.15
Tarjeta Naranja S.A.	04.27.15	$	XXIX	$	334,030	Simple	731 days	04.27.17	27.75% Mixed Rate / Badlar + 4.50%		174,170		298,568			04.16.15
Tarjeta Naranja S.A.	06.29.15	$	XXX	$	400,000	Simple	731 days	06.29.17	27.75% Mixed Rate / Badlar + 4.50%		336,693		346,605			06.18.15
Tarjeta Naranja S.A.	10.19.15	$	XXXI	$	370,851	Simple	548 days	04.19.17	27% Mixed Rate / Badlar + 4.50%		181,590		338,378			10.07.15
Tarjeta Naranja S.A.	01.20.16	$	XXXII	$	260,811	Simple	639 days	10.20.17	Variable Badlar + 4.50%		159,225		(32	)		12.15.15
Tarjeta Naranja S.A.	04.13.16	$	XXXIII Series I	$	133,092	Simple	548 days	10.13.17	Minimum 37% Rate/Badlar + 4.50%		134,976		—			03.28.16
Tarjeta Naranja S.A.	04.13.16	$	XXXIII Series II	$	366,908	Simple	1095 days	04.13.19	Minimum 37% Rate/Badlar + 5.40%		378,450		—			03.28.16
Tarjeta Naranja S.A.	06.29.16	$	XXXIV Series I	$	124,603	Simple	548 days	12.29.17	Minimum 32% Rate/Badlar + 3.38%		104,326		—			06.21.16
Tarjeta Naranja S.A.	06.29.16	$	XXXIV Series II	$	475,397	Simple	1461 days	06.29.20	Minimum 32% Rate/Badlar + 4.67%		466,443		—			06.21.16
Tarjeta Naranja S.A.	09.27.16	$	XXXV Series I	$	225,611	Simple	546 days	03.27.18	Minimum 26% Rate/Badlar + 2.99%		224,641		—			09.15.16
Tarjeta Naranja S.A.	09.27.16	$	XXXV Series II	$	774,389	Simple	1461 days	09.27.20	Minimum 26% Rate/Badlar + 3.99%		752,188		—			09.15.16

(*) It includes principal and interest, net of eliminations when appropriate.

(**) Not convertible into shares.

31

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

Company	Date of Placement		Currency	Class No.	F.V.		Type (**)	Term	Maturity Date	Rate	Book Value(*)				Issuance Authorized by the C.N.V.
											12.31.16		12.31.15
Tarjeta Naranja S.A.		12.07.16	$	XXXVI Series I	$	210,571	Simple	547 days	06.07.18	Minimum 25.25% Rate/Badlar + 3.25%		109,184		—		11.23.16
Tarjeta Naranja S.A.		12.07.16	$	XXXVI Series II	$	636,409	Simple	1095 days	12.07.19	Minimum 25.25% Rate/Badlar + 4.00%		642,142		—		11.23.16
Tarjetas Cuyanas S.A.		05.16.14	$	XIV Series II	$	145,750	Simple	731 days	05.16.16	Variable Badlar + 4.15%		—		116,974		05.07.14
Tarjetas Cuyanas S.A.		08.01.14	$	XVI	$	116,470	Simple	731 days	08.01.16	Variable Badlar + 3.40%		—		100,874		07.22.14
Tarjetas Cuyanas S.A.		10.31.14	$	XVIII	$	114,000	Simple	731 days	10.31.16	Variable Badlar + 4%		—		119,262		10.21.14
Tarjetas Cuyanas S.A.		02.20.15	$	XIX Series II	$	75,555	Simple	731 days	02.20.17	Variable Badlar + 4.95%		10,430		71,206		02.06.15
Tarjetas Cuyanas S.A.		06.10.15	$	XX	$	300,000	Simple	549 days	12.10.16	Annual Nominal Fixed at 27.90%		—		260,952		06.01.15
Tarjetas Cuyanas S.A.		08.12.15	$	XXI	$	232,000	Simple	550 days	02.12.17	Annual Nominal Fixed at 27.50%		206,897		211,150		07.29.15
Tarjetas Cuyanas S.A.		11.13.15	$	XXII	$	300,000	Simple	547 days	05.13.17	Variable Badlar + 4.25%		309,797		267,050		11.03.15
Tarjetas Cuyanas S.A.		03.16.16	$	XXIII	$	242,000	Simple	549 days	09.16.17	Variable Badlar + 4.99%		166,130		—		03.07.16
Tarjetas Cuyanas S.A.		05.05.16	$	XXIV Series I	$	65,691	Simple	549 days	11.05.17	Variable Badlar + 4.08%		68,191		—		04.22.16
Tarjetas Cuyanas S.A.		05.05.16	$	XXIV Series II	$	234,309	Simple	1095 days	05.05.19	Variable Badlar + 4.98%		192,163		—		04.22.16
Tarjetas Cuyanas S.A.		07.26.16	$	XXV	$	400,000	Simple	1461 days	07.26.20	Variable Badlar + 3.94%		367,786		—		07.13.16
Tarjetas Cuyanas S.A.		10.24.16	$	XXVI Series I	$	149,763	Simple	547 days	04.24.18	Variable Badlar + 2.75%		157,018		—		10.14.16
Tarjetas Cuyanas S.A.		10.24.16	$	XXVI Series II	$	350,237	Simple	1,461 days	10.24.20	Variable Badlar + 4.00%		367,202		—		10.14.16
Tarjetas del Mar S.A.		02.19.16	$	I	$	150,000	Simple	18 months	08.19.17	Variable Badlar +4.5%		127,264		—		02.04.16
Total												17,060,555		9,512,548

(*) It includes principal and interest, net of eliminations when appropriate.

(**) Not convertible into shares.

As of December 31, 2015, Banco de Galicia y Buenos Aires S.A. had outstanding U.S. Dollar-denominated Subordinated Notes due 2019 for a face value of $3,300,516. These notes were fully redeemed at a price equal to 100% of the residual nominal value plus accrued and unpaid interest on August 22, 2016.

32

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

Furthermore, as of December 31, 2016 and December 31, 2015, Banco de Galicia y Buenos Aires S.A. holds past due Notes, the holders of which have not tendered to the restructuring offer as follows:

Date of Issuance	Currency	Residual F.V. (US$) as of 12.31.16		Type	Term	Rate			Book Value(*)				Issuance Authorized by the C.N.V.
									12.31.16		12.31.15
08.11.93	US$		468	Simple	10 years		9	%		17,542		13,846		10.08.93

(*) It includes principal and interest.

As of December 31, 2016, Banco de Galicia y Buenos S.A. recorded in its own portfolio Notes due 2018 for the amount of $95,639.

On January 25, 2017, Banco de Galicia y Buenos Aires S.A.’s Board of Directors approved the issuance of short-, mid- and long-term notes for up to the amount of US$550,000 (or its equivalent in other currencies). On February 6, 2017, the C.N.V. authorized the issuance of Class III Notes due within 36 months as from the date of issuance and settlement for a face value of up to US$100,000, which may be extended for up to US$550,000. The Class III Notes shall accrue interest at a variable rate equal to the simple arithmetic average of private Badlar, plus the cutoff margin. Interest shall be paid on a quarterly basis. At the date of these financial statements, the Class III Notes are in the process of being issued.

On January 11, 2017, Tarjetas Cuyanas S.A.’s Board of Directors approved the issuance of Class XXVII Notes for a maximum global face value of up to $500,000.

At the date of these financial statements, the following Notes were settled: Class V Series II of Grupo Financiero Galicia S.A., Class XIV of Compañía Financiera Argentina S.A., Class XIII and Class XXVIII Series II of Tarjeta Naranja S.A. and Class XXI of Tarjetas Cuyanas S.A.

NOTE 17. OTHER LIABILITIES RESULTING FROM FINANCIAL BROKERAGE - OTHERS

As of December 31, 2016 and December 31, 2015, the breakdown of “Other Liabilities Resulting from Financial Brokerage—Others” was as follows:

	12.31.16		12.31.15
Collections and Other Transactions on Account of Third Parties		3,220,207		2,487,136
Liabilities due to Financing of Purchases		20,812,777		15,316,255
Other Withholdings and Additional Withholdings		1,518,962		1,224,133
Correspondent Transactions on Our Account		1,142,363		700,024
Liabilities Subject to Minimum Cash Requirements		362,641		679,179
Miscellaneous Liabilities not Subject to Minimum Cash Requirements		2,362,934		2,231,447
Commissions Accrued Payable		111,483		52,613
Others		186,072		98,171
Total		29,717,439		22,788,958

NOTE 18. MISCELLANEOUS LIABILITIES - OTHERS

As of December 31, 2016 and December 31, 2015, the breakdown of “Miscellaneous Liabilities—Others” was as follows:

	12.31.16		12.31.15
Sundry Creditors		1,211,243		971,997
Taxes Payable		2,956,416		2,176,865
Salaries and Social Security Contributions Payable		1,175,348		961,634
Others		419,291		292,904
Total		5,762,298		4,403,400

33

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

NOTE 19. PROVISIONS

As of December 31, 2016 and December 31, 2015, the breakdown of “Provisions” was as follows:

	12.31.16		12.31.15
Severance Payments		46,349		18,999
Contingent Commitments		23,482		26,146
Other Contingencies		303,095		428,494
Differences due to Dollarization of Judicial Deposits		11,558		7,957
Total		384,484		481,596

NOTE 20. OTHER LIABILITIES

The account “Other Liabilities” includes liabilities related to the insurance activity. As of December 31, 2016 and December 31, 2015, the breakdown of this account was as follows:

	12.31.16		12.31.15
Debts with Insureds		170,890		161,117
Debts with Reinsurers		4,816		16,508
Debts with Co-insurers		5,190		1,000
Debts with Insurance Brokers		122,235		67,119
Statutory Reserves		304,782		225,697
Others		21,471		16,632
Total		629,384		488,073

NOTE 21. MEMORANDUM ACCOUNTS – CONTROL DEBIT ACCOUNTS - OTHERS

As of December 31, 2016 and December 31, 2015, the breakdown of “Control Debit Accounts—Others” was as follows:

	12.31.16		12.31.15
Securities Held in Custody		258,872,060		59,591,460
Values for Collection		18,309,418		12,778,244
Security Agent Function		23,468,166		19,255,569
Others		4,322,384		13,526,949
Total		304,972,028		105,152,222

34

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

NOTE 22. TRUST AND SECURITY AGENT ACTIVITIES

a) Trust Contracts for Purposes of Guaranteeing Compliance with Obligations:

Purpose: In order to guarantee compliance with its contractual obligations, the parties to these agreements have agreed to deliver to Banco de Galicia y Buenos Aires S.A., as fiduciary property, amounts to be applied according to the following breakdown:

Date of Contract	Trustor	Balances of Trust Funds				Maturity Date(1)
		$		US$
12.07.10	Fondo Fiduciario Aceitero		21,022		—		06/30/2017
04.29.13	Profertil		1,050		116,500		04/30/2018
10.21.13	Sinteplast		80		—		06/30/2017
12.20.13	Los Cipreses		62		—		06/30/2017
09.12.14	Coop. de Trabajadores Portuarios		1,018		—		09/12/2018
12.22.14	Cliba		6		—		06/22/2018
09.07.15	Grimoldi		18,803		—		08/29/2018
09.30.15	Las Blondas IV and V		114,873		—		11/28/2018
03.31.16	Barugel Azulay		15,280		—		03/31/2019
04.14.16	Rios Belt		88,765		—		04/14/2019
	Total		260,959		116,500

(1) These amounts shall be released monthly until settlement date of trustor obligations or maturity date, whichever occurs first.

b) Financial Trust Contracts:

Purpose: To administer and exercise the fiduciary ownership of the trust assets until the redemption of debt securities and participation certificates:

Date of Contract	Trust	Balances of Trust Funds		Maturity Date
		$
10.12.05	Hydro I		66		06.30.17	(2)
12.05.06	Faid 2011		9		06.30.17	(3)
12.06.06	Gas I		41,838		12.31.17	(3)
05.06.08	Agro Nitralco II		1,227		12.31.17	(3)
05.14.09	Gas II		4,419,767		12.31.22	(3)
02.10.11	Cag S.A.		560		06.30.17	(3)
04.25.11	Faid 2015		11		06.30.17	(3)
06.08.11	Mila III		401		12.31.17	(3)
09.01.11	Mila IV		791		06.30.17	(3)
09.14.11	Cag S.A. II		756		06.30.17	(3)
10.07.11	Sursem III		34		06.30.17	(3)
05.31.12	Fideicred Agro Series I		17		06.30.17	(3)
12.27.12	Pla I		74		06.30.17	(3)
04.03.13	Welfas I		4		06.30.17	(3)
09.18.13	Don Mario Semillas Series I		135		06.30.17	(3)
11.05.13	Pla II		192		06.30.17	(3)
11.21.13	Comafi Prendas I		1,801		09.29.18	(3)
02.13.14	Mila V		7,825		05.20.20	(3)

(2) These amounts shall be released monthly until redemption of debt securities.

(3) Estimated date, since maturity date shall occur at the time of the distribution of all of trust assets.

35

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

Date of Contract	Trust	Balances of Trust Funds		Maturity Date
		$
06.06.14	Mila VI		8,329		10.20.20	(3)
06.18.14	Red Surcos II		8		06.30.17	(3)
07.08.14	Don Mario Semillas Series II		181		06.30.17	(3)
07.24.14	Fideicred Atanor III		88		06.30.17	(3)
07.22.14	Don Mario Semillas Series III		171		06.30.17	(3)
07.25.14	Fedicred Agro Series II		79		06.30.17	(3)
10.03.14	Mila VII		10,450		01.20.21	(3)
12.02.14	Mas Cuotas Series I		243		05.01.17	(3)
01.13.15	Red Surcos III		2,514		06.30.17	(3)
01.27.15	Mila VIII		22,626		06.15.21	(3)
05.18.15	Mila IX		32,471		09.15.21	(3)
12.02.14	Mas Cuotas Series II		240		06.30.17	(3)
08.24.15	Mila X		35,840		12.20.21	(3)
10.30.15	Mila XI		47,933		01.15.22	(3)
12.09.15	Fedicred Agro Series III		50		06.30.17	(3)
01.07.16	Mas Cuotas Series III		531		05.15.17	(3)
01.14.16	Mila XII		59,028		11.15.21	(3)
02.05.16	Red Surcos IV		48,875		08.31.17	(3)
05.13.16	Mila XIII		71,991		09.15.22	(3)
06.15.16	Mas Cuotas Series IV		140,381		05.15.17	(3)
09.01.16	Mila XIV		76,600		01.31.23	(3)
09.15.16	Mas Cuotas Series V		353,481		07.15.17	(3)
10.27.16	Mila XV		68,582		03.31.23	(3)
12.06.16	Mas Cuotas Series VI		618,992		02.15.18	(3)
	Totals		6,075,192

(3) Estimated date, since maturity date shall occur at the time of the distribution of all of trust assets.

c) Activities as Security Agent:

c.1) Banco de Galicia y Buenos Aires S.A. has been appointed Security Agent of the National Treasury’s endorsement guarantees in favor of ENARSA (Energía Argentina S.A.) that were assigned in favor of Nación Fideicomisos S.A. in its capacity as Trustee of the “ENARSA-BARRAGAN” and “ENARSA-BRIGADIER LOPEZ” financial trusts.

Said endorsement guarantees the secure payment of all obligations arising from the above-mentioned trusts.

Banco de Galicia y Buenos Aires S.A., in its capacity as Security Agent, will take custody of the documents regarding the National Treasury’s endorsement guarantees and will be in charge of managing all legal and notarial proceedings with respect to the enforcement thereof.

As of December 31, 2016 and December 31, 2015, the balances recorded from these transactions amount to US$1,364,097 and $408, respectively.

c.2) In April 2013, at the time of entering into the Contract for the Fiduciary Assignment and Trust for Guarantee Purposes “Profertil S.A.,” Banco de Galicia y Buenos Aires S.A. was appointed security agent with regard to the Chattel Mortgage Agreement, a transaction that was completed on June 18, 2013, which additionally secures all the obligations undertaken.

As of December 31, 2016 and December 31, 2015, the balance recorded from these transactions amounts to US$116,500.

36

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

NOTE 23. ASSETS AND LIABILITIES IN FOREIGN CURRENCY

The balances of assets and liabilities in foreign currency (mainly in U.S. Dollars) as of December 31, 2016 and December 31, 2015 are detailed as follows.

Assets	12.31.16		12.31.15
Cash and Due from Banks		39,486,988		17,658,396
Government and Private Securities		1,352,876		5,257,343
Loans		17,551,161		3,208,454
Other Receivables Resulting from Financial Brokerage		8,141,115		1,094,074
Receivables from Financial Leases		51,105		21,651
Equity Investments		8,032		6,594
Miscellaneous Receivables		158,634		32,820
Unallocated Items		7,918		19,191
Other Assets		13,559		6,915
Total		66,771,388		27,305,438

Liabilities	12.31.16		12.31.15
Deposits		51,017,277		14,373,198
Other Liabilities Resulting from Financial Brokerage		13,287,379		10,054,541
Miscellaneous Liabilities		19,369		30,625
Subordinated Notes		4,065,255		3,300,516
Unallocated Items		7,005		8,595
Other Liabilities		—		826
Total		68,396,285		27,768,301

The management and mitigation of currency risk are described in Note 35 on risk management policies.

NOTE 24. BREAKDOWN OF THE ITEMS RECORDED UNDER “OTHERS” IN THE INCOME STATEMENT

Income from Services	12.31.16		12.31.15
Commissions from Cards		6,894,873		5,263,898
Commissions from Insurance		407,732		420,111
Others		2,420,481		1,322,464
Total		9,723,086		7,006,473

Expenses from Services	12.31.16		12.31.15
Turnover Tax		934,350		793,024
Related to Credit Cards		1,054,512		659,566
Others		1,024,794		694,254
Total		3,013,656		2,146,844
Miscellaneous Income	12.31.16		12.31.15
Income from Sale of Bank Premises and Equipment		170,873		10,139
Income from Transactions with Miscellaneous Assets		1,796		24,562
Leases		2,689		2,388
Adjustments and Interest from Miscellaneous Receivables		323,770		234,508
Others		260,257		183,690
Total		759,385		455,287

37

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

Miscellaneous Losses	12.31.16		12.31.15
Adjustment to Interest on Miscellaneous Liabilities		2,647		1,134
Claims		78,166		42,810
Donations		45,353		33,338
Turnover Tax		45,080		24,940
Charges for Administrative, Disciplinary and Criminal Penalties		—		1,418
Others		149,834		90,797
Total		321,080		194,437

NOTE 25. INCOME FROM INSURANCE ACTIVITIES

As of December 31, 2016 and 2015, the breakdown of “Income from Insurance Activities” was as follows:

	12.31.16			12.31.15
Premiums and Surcharges Accrued		3,412,608			2,516,035
Claims Accrued		(489,688	)		(358,193	)
Surrenders		(6,320	)		(4,231	)
Life and Ordinary Annuities		(4,917	)		(4,226	)
Underwriting and Operating Expenses		(500,748	)		(350,125	)
Other Income and Expenses		41,008			2,144
Total		2,451,943			1,801,404

NOTE 26. MINIMUM CAPITAL REQUIREMENTS

Grupo Financiero Galicia S.A. is not subject to the minimum capital requirements established by the Argentine Central Bank.

Furthermore, Grupo Financiero Galicia S.A. meets the minimum capital requirements established by the Argentine General Corporations Law, which amount to $100.

Pursuant to the Argentine Central Bank regulations, Banco de Galicia y Buenos Aires S.A. is required to maintain a minimum capital amount, which is calculated by weighing risks related to assets and to balances of bank premises and equipment, miscellaneous and intangible assets.

As required by the Argentine Central Bank regulations, as of December 31, 2016 and December 31, 2015, minimum capital requirements were as follows:

Date	Capital Required		Computable Capital		Computable Capital as a % of the Capital Requirement
12.31.16(*)		15,258,350		22,009,550		144.25
12.31.15		11,062,886		14,071,044		127.19

(*) The capital surplus covers the increase in the additional requirement of 0.25% for the custody role of securities representing the investments in the Argentine Integrated Social Security System’s F.G.S.

The Argentine Central Bank decided that Banco de Galicia y Buenos Aires S.A. should be considered, for all purposes, a Domestic Systemically Important Bank (D-SIB). Consequently, since January 2016, the Bank is required to meet an additional capital conservation buffer apart from the minimum capital requirement, to be complied with gradually, reaching 3.5% of risk-weighted assets. The Argentine Central Bank also provided that, since June 2015, equity investments in companies devoted to the issuance of credit, debit and similar cards shall be deducted from the Computable Regulatory Capital (R.P.C.), progressively, reaching 100% in June 2018.

38

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

NOTE 27. EARNINGS PER SHARE

Below is a breakdown of the earnings per share as of December 31, 2016 and 2015:

	12.31.16		12.31.15
Income for the Fiscal Year		6,017,877		4,338,397
Outstanding Ordinary Shares Weighted Average		1,300,265		1,300,265
Diluted Ordinary Shares Weighted Average		1,300,265		1,300,265
Earnings per Ordinary Share (*)
Basic		4.6282		3.3365
Diluted		4.6282		3.3365

(*) Figures stated in whole numbers.

NOTE 28. RESTRICTIONS IMPOSED ON THE DISTRIBUTION OF PROFITS

The Argentine Central Bank regulations require that 20% of the profits shown in the Income Statement at fiscal year-end, plus (or less), the adjustments made in previous fiscal years and, less, if any, the loss accumulated at previous fiscal year-end, be allocated to the legal reserve.

This proportion applies regardless of the ratio of the Legal Reserve fund to Capital Stock. Should the Legal Reserve be used to absorb losses, earnings shall be distributed only if the value of the Legal Reserve reaches 20% of the Capital Stock plus the Capital Adjustment.

The Argentine Central Bank sets rules for the conditions under which financial institutions can make distributions of profits. According to these rules, profits can be distributed as long as results of operations are positive after deducting not only the Reserves, which may be legally and statutory required, but also the following items from Unappropriated Retained Earnings: the difference between the book value and the market value of public sector assets and/or debt instruments issued by the Argentine Central Bank not valued at market price, the amounts capitalized for lawsuits related to deposits and any unrecorded adjustments required by the external auditors or the Argentine Central Bank.

Moreover, in order that a financial institution be able to distribute profits, said institution must comply with the capital adequacy rule, i.e. with the calculation of minimum capital requirements and the regulatory capital.

For these purposes, this shall be done by deducting from its assets and Unappropriated Retained Earnings all the items mentioned in the paragraph above.

Moreover, in such calculation, a financial institution shall not be able to compute the temporary reductions that affect minimum capital requirements, computable regulatory capital or its capital adequacy.

Since January 2016, the Argentine Central Bank determined that banks shall meet an additional capital conservation buffer apart from the minimum capital requirement equal to 3.5% of risk-weighted assets. This shall be made up only of Tier 1 Common Capital, net of deductible items. Distribution of profits shall be restricted when the Bank’s computable regulatory capital level and structure is within the range of the capital conservation buffer.

Distribution of profits shall require the prior authorization of the Argentine Central Bank’s Superintendent of Financial and Foreign Exchange Institutions, whose intervention shall have the purpose of verifying the aforementioned requirements have been fulfilled.

In addition to the aforementioned restrictions established by the Argentine Central Bank, which are applicable to Banco de Galicia y Buenos Aires S.A. and Compañía Financiera Argentina S.A., pursuant to Section 70 of the Argentine General Corporations Law, stock companies shall establish a reserve not lower than 5% of the realized and liquid profits shown in the Income Statement for the fiscal year, until 20% of the corporate capital is reached. In the event that said reserve is reduced for any reason, no profits can be distributed until its total refund.

39

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

At Tarjeta Naranja S.A.’s Ordinary and Extraordinary Shareholders’ Meeting held on March 16, 2006, it was decided that the maximum limit for the distribution of dividends be set at 25% of the realized and liquid profits of each fiscal year. This restriction shall remain in force as long as the company’s Shareholders’ Equity is below $300,000.

Pursuant to the Price Supplement of the Class XIII Notes, as well as in accordance with certain financial loan contracts, Tarjeta Naranja S.A. has agreed not to distribute dividends that may exceed 50% of the company’s net income. This restriction also applies in the event of any excess over certain indebtedness ratios.

NOTE 29. STATEMENT OF CASH FLOWS AND CASH EQUIVALENTS

Cash and due from banks and assets held with the purpose of complying with the short-term commitments undertaken, with a high level of liquidity, easily converted into known amounts of cash, subject to insignificant changes in value and with a maturity of less than three months from the date of the acquisition thereof, are considered to be cash and cash equivalents. The breakdown is as follows:

	12.31.16		12.31.15		12.31.14
Cash and Due from Banks		61,166,250		30,834,663		16,959,205
Instruments Issued by the Argentine Central Bank		6,635,954		10,514,624		4,612,259
Reverse Repo Transactions with the Argentine Central Bank		—		14,286		16,768
Interbank Loans - (Call Money Loans Granted)		862,300		40,000		182
Overnight Placements in Banks Abroad		1,227,101		232,351		261,118
Other Cash Placements		3,196,060		1,339,341		1,204,483
Cash and Cash Equivalents		73,087,665		42,975,265		23,054,015

NOTE 30. CONTRIBUTION TO THE DEPOSIT INSURANCE SYSTEM

Law No. 24485 and Decree No. 540/95 established the creation of the Deposit Insurance System to cover the risk attached to bank deposits, in addition to the system of privileges and safeguards envisaged in the Financial Institutions Law.

The Argentine National Executive Branch through Decree No. 1127/98 dated September 24, 1998 established the maximum amount for this insurance system to demand deposits and time deposits denominated either in Pesos and/or in foreign currency. Such limit was currently set at $450.

This system does not cover deposits made by other financial institutions (including time deposit certificates acquired through a secondary transaction), deposits made by parties related to Banco de Galicia y Buenos Aires S.A., either directly or indirectly, deposits of securities, acceptances or guarantees and those deposits set up at an interest rate exceeding the one established regularly by the Argentine Central Bank based on a daily survey conducted by it. Deposits acquired through endorsement, placements made as a result of incentives other than interest rates and locked-up balances from deposits and other excluded transactions are also excluded. This system has been implemented through the constitution of the Deposit Insurance Fund (“FGD”), which is managed by a company called Seguros de Depósitos S.A. (SE.DE.S.A.). SE.DE.S.A.’s shareholders are the Argentine Central Bank and the financial institutions, in the proportion determined for each one by the Argentine Central Bank based on the contributions made to the fund.

The monthly contribution that institutions had to make to the Fund until March 2016 was 0.06%, except for time deposits in U.S. Dollars raised or renewed during the period from February 11, 2015 to January 31, 2016, for which it was 0.015 %.

Effective as of the contribution maturing in April 2016, the Argentine Central Bank established a 0.015% rate for the monthly average of all deposits.

40

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

NOTE 31. NATIONAL SECURITIES COMMISSION (“C.N.V.”)

AGENTS – MINIMUM LIQUIDITY REQUIREMENT

Within the framework of Resolution No. 622/13 of the C.N.V., Banco de Galicia y Buenos Aires S.A. has been registered, in such agency’s registry, as settlement and clearing agent –comprehensive- No. 22 (ALyC and AN – INTEGRAL), custodial agent of collective investment products corresponding to mutual funds No. 3 (ACPIC FCI), and manager of collective investment products at the registry of financial trustees No. 54.

As of December 31, 2016, Banco de Galicia y Buenos Aires S.A.’s Shareholders’ Equity exceeds that required by the C.N.V. to act as agent in the categories in which the Bank has already carried out the registration proceedings. Such requirement amounts to $28,000 with a minimum liquidity requirement of $14,000, which Banco de Galicia y Buenos Aires S.A. paid with Argentine Central Bank’s monetary regulation instruments, which are held in custody at Caja de Valores (Depositor No. 100100) in the amount of $18,318. If these instruments had been measured at market value, they would have amounted to $18,261.

CUSTODIAL AGENT OF COLLECTIVE INVESTMENT PRODUCTS CORRESPONDING TO MUTUAL FUNDS

Furthermore, in compliance with Section 7 of Chapter II, Title V of that Resolution, in its capacity as custodial agent of collective investment products corresponding to mutual funds (depository) of the “FIMA ACCIONES,” “FIMA P.B. ACCIONES,” “FIMA RENTA EN PESOS,” “FIMA AHORRO PESOS,” “FIMA RENTA PLUS,” “FIMA PREMIUM,” “FIMA AHORRO PLUS,” “FIMA CAPITAL PLUS,” “FIMA ABIERTO PYMES,” “FIMA MIX I,” “FIMA RENTA DÓLARES” and “FIMA RENTA DOLARES II” funds, as of December 31, 2016, Banco de Galicia y Buenos Aires S.A. holds a total of 7,777,368,861 units under custody for a market value of $37,337,855, which is included in the “Depositors of Securities Held in Custody” account. As of December 31, 2015, the securities held in custody totaled 6,089,643,628 units and their market value amounted to $18,174,700.

The balances of the Mutual Funds as of fiscal year-end are detailed as follows:

Mutual Fund	12.31.16		12.31.15
FIMA Acciones		117,805		75,086
FIMA P.B. Acciones		305,310		254,662
FIMA Renta en pesos		239,066		63,563
FIMA Ahorro pesos		15,955,347		4,704,972
FIMA Renta Plus		247,293		131,712
FIMA Premium		7,130,327		4,794,058
FIMA Ahorro Plus		10,194,730		6,285,433
FIMA Capital Plus		561,800		1,667,188
FIMA Abierto PyMES		187,124		198,026
FIMA Mix I		151,487		—
FIMA Renta Dólares		2,245,266		—
FIMA Renta Dólares II		2,300		—
Total		37,337,855		18,174,700

STORAGING OF DOCUMENTS

Pursuant to General Resolution No. 629 of the C.N.V., Banco de Galicia y Buenos Aires S.A. notes that it has supporting documents regarding accounting and management transactions, which are stored at AdeA (C.U.I.T. No. 30-68233570-6), Plant III located at Ruta Provincial 36 km 31.5 No. 6471 (CP 1888) Bosques, Province of Buenos Aires, with legal domicile at Av. Pte. Roque Sáenz Peña 832 Piso 1, C.A.B.A.

41

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

NOTE 32. SETTING UP OF FINANCIAL TRUSTS

a) Financial trusts with Banco de Galicia y Buenos Aires S.A. as trustor:

Name	Creation Date	Estimated Maturity Date	Trustee	Trust Assets	Portfolio Transferred			Book Value of Securities Held in Own Portfolio
								12.31.16		12.31.15
Galtrust I	10.13.00	02.04.18	First Trust of New York N.A.	Secured Bonds in Pesos at 2% due 2018 (1)	US$	490,224	(*)		504,874		685,915

(*) The remaining US$9,776 was transferred in cash.

(1) In exchange for loans to the Provincial Governments.

b) As of December 31, 2016 and December 31, 2015, Banco de Galicia y Buenos Aires S.A. records in its own portfolio participation certificates and debt securities from financial trusts amounting to $998,152 and $657,471, respectively.

NOTE 33. SEGMENT REPORTING

Grupo Financiero Galicia S.A. measures the performance of each of its business segments mainly in terms of “Net Income.” The segments defined are made up of one or more operating segments with similar economic characteristics, distribution channels and regulatory environments.

Below there is a description of each business segment’s composition:

Banks: It represents the banking business operation results. As of December 31, 2015, in addition to Banco de Galicia y Buenos Aires S.A.’s results of operations, this segment included Banco Galicia Uruguay S.A. (in liquidation)’s results of operations.

Regional Credit Cards: This segment represents the results of operations of the regional credit card business and includes the results of operations of Tarjetas del Mar S.A. and Tarjetas Regionales S.A. consolidated with its subsidiaries, as follows: Cobranzas Regionales S.A., Procesadora Regional S.A., Tarjeta Naranja S.A. and Tarjetas Cuyanas S.A.

Personal Loans – CFA: This segment includes the results of operations of Compañía Financiera Argentina S.A. and Cobranzas y Servicios S.A.

Insurance: This segment represents the results of operations of the insurance companies’ business and includes the results of operations of Sudamericana Holding S.A. consolidated with its subsidiaries, as follows: Galicia Retiro Cía. de Seguros S.A., Galicia Seguros S.A. and Galicia Broker Asesores de Seguros S.A.

Other Businesses: This segment shows the results of operations of Galicia Administradora de Fondos S.A., Galicia Warrants S.A., Net Investment S.A., Galicia Valores S.A. and Grupo Financiero Galicia S.A., the last two net of eliminations of the income from equity investments.

Adjustments: This segment includes consolidation adjustments, eliminations corresponding to transactions conducted between consolidated companies and minority interest.

42

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

	Banks		Regional Credit Cards			Personal Loans – CFA		Insurance			Other Businesses			Adjustments			12.31.16
Net Financial Income		10,511,441		4,018,519			1,468,501		351,038			(17,876	)		37,362			16,368,985
Net Income from Services		6,010,168		5,266,563			300,553		—			429,633			(1,260,732	)		10,746,185
Net Operating Income		16,521,609		9,285,082			1,769,054		351,038			411,757			(1,223,370	)		27,115,170
Provision for Loan Losses		1,526,264		1,660,879			346,170		—			—			—			3,533,313
Administrative Expenses		10,145,969		5,675,998			1,232,194		515,869			178,568			(130,988	)		17,617,610
Operating Income		4,849,376		1,948,205			190,690		(164,831	)		233,189			(1,092,382	)		5,964,247
Income from Insurance Companies’ Activities		—		—			—		1,272,562			—			1,179,381			2,451,943
Income from Equity Investments		1,689,602		—			952		3,215			—			(1,613,350	)		80,419
Minority Interest		—		(320	)		—		(2	)		—			(402,846	)		(403,168	)
Miscellaneous Income, Net		408,721		626,487			293,753		(391	)		(564	)		(51,029	)		1,276,977
Net Income before Income Tax		6,947,699		2,574,372			485,395		1,110,553			232,625			(1,980,226	)		9,370,418
Income Tax		1,854,000		1,117,678			143,421		387,019			129,978			(279,555	)		3,352,541
Net Income for the Fiscal Year		5,093,699		1,456,694			341,974		723,534			102,647			(1,700,671	)		6,017,877

	Banks			Regional Credit Cards		Personal Loans – CFA		Insurance			Other Businesses		Adjustments			12.31.15
Net Financial Income		8,352,685			2,685,102		1,255,453		232,208			79		(83,691	)		12,441,836
Net Income from Services		4,172,455			4,220,431		270,334		—			247,119		(1,072,941	)		7,837,398
Net Operating Income		12,525,140			6,905,533		1,525,787		232,208			247,198		(1,156,632	)		20,279,234
Provision for Loan Losses		1,060,955			753,243		400,042		—			—		—			2,214,240
Administrative Expenses		7,394,068			4,167,964		930,407		378,867			103,268		(69,872	)		12,904,702
Operating Income		4,070,117			1,984,326		195,338		(146,659	)		143,930		(1,086,760	)		5,160,292
Income from Insurance Companies’ Activities		—			—		—		775,460			—		1,025,944			1,801,404
Income from Equity Investments		1,432,181			—		2,117		1,977			2		(1,336,151	)		100,126
Minority Interest		—			452		—		(1	)		—		(365,009	)		(364,558	)
Miscellaneous Income, Net		(67,381	)		427,260		100,846		(1,000	)		7,299		(24,467	)		442,557
Net Income before Income Tax		5,434,917			2,412,038		298,301		629,777			151,231		(1,786,443	)		7,139,821
Income Tax		1,522,000			862,295		139,293		221,226			86,790		(30,180	)		2,801,424
Net Income for the Fiscal Year		3,912,917			1,549,743		159,008		408,551			64,441		(1,756,263	)		4,338,397

43

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

The accounting measurement of assets and liabilities allocated to the above-mentioned segments is as follows:

	12.31.16		12.31.15
Cash and Due from Banks		61,166,250		30,834,663
Government and Private Securities		13,700,800		15,525,090
Loans		137,451,655		98,344,731
Other Receivables Resulting from Financial Brokerage		18,178,275		8,060,768
Receivables from Financial Leases		955,346		958,092
Other Assets		539,140		419,510
Total Assets		231,991,466		154,142,854

	12.31.16		12.31.15
Deposits		151,688,147		100,039,233
Other Liabilities Resulting from Financial Brokerage		57,793,653		37,328,900
Subordinated Notes		4,065,255		3,300,516
Other Liabilities		629,384		488,073
Total Liabilities		214,176,439		141,156,722

NOTE 34. CONTINGENCIES

TAX ISSUES

Banco de Galicia y Buenos Aires S.A.

At the date of these financial statements, provincial tax collection authorities, as well as tax collection authorities from Buenos Aires, are in the process (in different degrees of completion) of conducting audits and assessments mainly regarding the Compensatory Bond granted by the National Government to compensate financial institutions for the losses generated by the asymmetric pesification of loans and deposits.

As regards the assessment of tax collection authorities from Buenos Aires, within the framework of the legal actions brought by Banco de Galicia y Buenos Aires S.A. with the purpose of challenging the assessment of the tax collection authorities, a preliminary injunction was granted by the Argentine Federal Court of Appeals in Administrative Matters for the amount corresponding to the Compensatory Bond, which was ratified by the Supreme Court of Justice. Therefore, the Court ordered the A.G.I.P. (Governmental Public Revenue Authority) to refrain from starting tax enforcement proceedings or otherwise requesting precautionary measures for such purpose until a final judgment is issued. The proceedings are currently pending a decision by the Argentine Federal Court of Appeals in Administrative Matters with regard to the appeal filed by Banco de Galicia y Buenos Aires S.A. against the decision issued on the core issue by the Court of First Instance in November 2013. In any case, it is worth noting the decision issued by the federal prosecutor of the Court of Appeals was favorable to Banco de Galicia y Buenos Aires S.A.

With regard to the city of Buenos Aires’ claims on account of other items, Banco de Galicia y Buenos Aires S.A. adhered to the System for the Settlement of Tax Liabilities in Arrears (Law No. 3461 and the related regulations), which envisaged the total relief of interest and fines. The Bank’s adherence to such system was communicated within the framework of the respective cases before the corresponding judicial authorities.

In connection with the assessments made by tax collection authorities from the Province of Buenos Aires, under the framework of some of the processes under discussion at the Provincial Tax Court’s stage, at this stage of proceedings the decision issued was: (i) unfavorable to Banco de Galicia y Buenos Aires S.A.’s request regarding the items not related to the Compensatory Bond, and (ii) favorable with regard to the non-taxability thereof. Therefore, Banco de Galicia y Buenos Aires S.A. adhered to the System for the Regularization of Tax Debts (Regulatory Decision No. 12 and related decisions), which envisages discounts on the amounts not related to the Compensatory Bond. The Bank’s adherence to such system was communicated within the framework of the respective cases before the corresponding judicial authorities. In turn, the authorities from the Province of Buenos Aires objected to the judgment rendered by

44

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

the Provincial Tax Court with regard to the Compensatory Bond, and requested the Court of Appeals in Administrative Matters of La Plata to set such decision aside. Banco de Galicia y Buenos Aires S.A. entered an appearance and filed a motion for lack of jurisdiction, since it believes only the Argentine Supreme Court of Justice has jurisdiction to issue a decision on such a matter. On April 15, 2014, the aforementioned Court sustained the motion for lack of jurisdiction and ordered the proceedings to be filed. The authorities from the Province of Buenos Aires filed an appeal before the Supreme Court of Justice of the Province of Buenos Aires, which has not issued a decision to date.

Furthermore, regarding the claims made by the different jurisdictions, Banco de Galicia y Buenos Aires S.A. has been expressing its disagreement regarding these adjustments at the corresponding administrative and/or legal proceedings.

These proceedings and their possible effects are constantly being monitored by Management. Even though Banco de Galicia y Buenos Aires S.A. considers that it has complied with its tax liabilities in full pursuant to current regulations, the Bank has established provisions that it deems to be adquate for each of such proceedings.

Tarjetas Regionales S.A.

At the date of these consolidated financial statements, the Argentine Revenue Service (A.F.I.P.), Provincial Revenue Boards and Municipalities are in the process of conducting audits and assessments, in different degrees of completion, at the companies controlled by Tarjetas Regionales S.A. Said agencies have served notices and made claims regarding taxes applicable to Tarjetas Regionales S.A.’s subsidiaries. Therefore, the companies are taking the corresponding administrative and legal steps in order to resolve such issues. The original amount claimed for taxes totals $14,461 approximately.

Based on the opinions of their tax advisors, the companies believe that the above-mentioned claims are both legally and technically groundless and that taxes related to the claims have been correctly calculated in accordance with the tax regulations currently in force and existing case law.

Notwithstanding the foregoing, the companies have set up the provisions deemed appropriate pursuant to the evolution of each proceeding.

CONSUMER PROTECTION ASSOCIATIONS

Banco de Galicia y Buenos Aires S.A.

Consumer Protection Associations, on behalf of consumers, have filed claims against Banco de Galicia y Buenos Aires S.A. with regard to the collection of certain financial charges.

The Bank believes that the resolution of these controversies will not have a significant impact on its financial condition.

Compañía Financiera Argentina S.A.

Consumer Protection Associations, on behalf of consumers, have filed claims against Compañía Financiera Argentina S.A. with regard to the collection of certain financial charges. The company believes that the resolution of these controversies will not have a significant impact on its financial condition.

NOTE 35. RISK MANAGEMENT POLICIES

The tasks related to risk information and internal control of each of the controlled companies are defined and carried out, rigorously. This particularly affects the Bank, where the requirements are stringent, as it is a financial institution regulated by the Argentine Central Bank. Apart from applicable local regulations, the Company, in its capacity as a listed company in the United States of America, complies with the certification of its internal controls pursuant to Section 404 of the Sarbanes Oxley Act (Sarbanes Oxley). Corporate risk management is monitored by the Audit Committee, which also gathers and analyzes the information submitted by the main controlled companies.

45

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

The specific function of the comprehensive management of Banco de Galicia y Buenos Aires S.A.’s risks has been allocated to the Risk Management Division, guaranteeing its independence from the rest of the business areas since it directly reports to Banco de Galicia y Buenos Aires S.A.’s General Division and, at the same time, is involved in the decisions made by each area. In addition, the control and prevention of risks related to asset laundering, funding of terrorist activities and other illegal activities are allocated to the Prevention of Asset Laundering Division. The aim of both divisions is to guarantee the Board of Directors is fully aware of the risks that Banco de Galicia y Buenos Aires S.A. is exposed to, and to design and propose policies and procedures necessary to identify, assess, follow up, control and mitigate such risks.

Banco de Galicia y Buenos Aires S.A. has developed the Capital Adequacy Assessment Process (Proceso de Evaluación de Suficiencia de Capital - PESC) to assess the relationship between the Bank’s own available and necessary resources to maintain an appropriate risk profile. This process shall also allow for the identification of both the economic capital needs and the sources to meet such needs.

The minimum capital requirement with regard to each risk is determined according to the Argentine Central Bank regulations.

In addition, Banco de Galicia y Buenos Aires S.A. has established a risk analysis framework, which has risk acceptance levels, both on an individual and a consolidated basis. Within this framework, metrics have been established (calculated based on current and stress ratios), which are monitored in order to detect situations that may affect the normal course of business, the noncompliance with the strategy and undesired results and/or situations of vulnerability in the face of changes in market conditions. The Risk and Capital Allocation Committee considers and controls Banco de Galicia y Buenos Aires S.A.’s risk profile through a risk appetite report, and defines the actions to be carried out in case of potential deviations from the thresholds set.

FINANCIAL RISKS

Short- and medium-term financial risks are managed within the framework of policies approved by Banco de Galicia y Buenos Aires S.A.’s Board of Directors, which establishes limits on for different risk exposure and also considers their interrelation. Management is supplemented by “contingency plans” devised to face adverse market situations. Furthermore, “stress tests” that make it possible to assess risk exposure under historical and simulated scenarios are created, which identify critical levels of the different risk factors.

LIQUIDITY

Daily liquidity is managed according to the established strategy, which seeks to keep adequate liquid resources to mitigate the adverse effects caused by irregular variations in loans and deposits, in addition to coping with “stress” situations.

The current liquidity policy in force provides for the setting of limits and monitoring of a) liquidity as it relates to stock: a level of “Management Liquidity Requirement” was established as the excess over legal minimum cash requirements, taking into consideration the characteristics and behavior of Banco de Galicia y Buenos Aires S.A.’s different liabilities, and the liquid assets that make up such liquidity were determined as well; and b) cash flow liquidity: gaps between the contractual maturities of consolidated financial assets and liabilities are analyzed and monitored. There is a cap for the gap between maturities, determined based on the gap accumulated against total liabilities permanently complied with during the first year.

Furthermore, the policy sets forth a contingency plan, by currency type, that determines the steps to be taken and the assets from which additional liquid resources can be obtained.

46

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

With the purpose of mitigating the liquidity risk that arises from deposit concentration per customer, Banco de Galicia y Buenos Aires S.A. has a policy that regulates the concentration of deposits among the main customers.

CURRENCY RISK

Banco de Galicia y Buenos Aires S.A.’s current policy in force establishes limits in terms of maximum “net asset positions” (assets denominated in a foreign currency which are higher than the liabilities denominated in such currency) and “net liability positions” (assets denominated in a foreign currency which are lower than the liabilities denominated in such currency) for mismatches in foreign currency, as a proportion of Banco de Galicia y Buenos Aires S.A.’s R.P.C.

An adequate balance between assets and liabilities denominated in foreign currency is what characterizes the management strategy for this risk factor, seeking to achieve a full coverage of long-term asset-liability mismatches and allowing a short-term mismatch management margin that contributes to the possibility of improving certain market situations. Short- and long-term goals are attained by appropriately managing assets and liabilities and by using the financial products available in our market, particularly “dollar futures” both in institutionalized markets (M.A.E. and RO.F.EX.) and in forward transactions performed with customers.

Transactions in foreign currency futures (Dollar futures) are subject to limits that take into consideration the particular characteristics of each trading environment.

INTEREST RATE RISK

Banco de Galicia y Buenos Aires S.A.’s exposure to the “interest rate risk,” as a result of interest rate fluctuations and the different sensitivity of assets and liabilities, is managed according to the approved strategy. On the one hand, it considers a short-term horizon, seeking to keep the net financial margin within the levels set by the policy. On the other hand, it considers a long-term horizon, the purpose of which is to mitigate the negative impact on the present value of Banco de Galicia y Buenos Aires S.A.’s Shareholders’ Equity in the face of changes in interest rates.

From a comprehensive viewpoint of risk exposure and contributing to including a “risk premium” in the pricing process, the aim is to systematically estimate the “economic capital” used up by the structural risk as per the financial statements (interest rate risk) and the contribution of the “price risk,” in its different expressions, to using up the capital.

MARKET RISK

Trading of and/or investment in government and corporate securities, currencies, derivatives and debt instruments issued by the Argentine Central Bank, which are listed on the capital markets and the value of which varies pursuant to the variation of the market prices thereof, are included within the policy which limits the maximum authorized losses during a year.

The “price risk” (market) is daily managed according to the strategy approved, the purpose of which is to keep Banco de Galicia y Buenos Aires S.A. present in the different derivatives, variable- and fixed-income markets while obtaining the maximum return possible on trading, without exposing the latter to excessive risk levels. Finally, the designed policy contributes to providing transparency and facilitates the perception of the risk levels to which it is exposed.

In order to measure and monitor risks derived from the variation in the price of financial instruments that form the trading securities portfolio, a model known as “Value at Risk” (also known as “VaR”) is used. This model determines for Banco de Galicia y Buenos Aires S.A. individually the possible loss that could be generated by the positions in securities, derivative instruments and currencies under certain parameters.

47

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

CROSS-BORDER RISK

Banco de Galicia y Buenos Aires S.A.’s foreign trade transactions and management of “treasury” resources imply assuming cross-border risk positions. These exposures related to cross-border assets are in line with Banco de Galicia y Buenos Aires S.A.’s business and financial strategy, the purpose of which is to provide customers with efficient commercial assistance and to improve the management of available liquid resources within an appropriate risk and yield environment.

TRANSFER RISK

The possibility of diversifying funding sources, as contemplated by the liquidity strategy, by obtaining resources in foreign capital markets, involves the possible exposure to potential regulatory changes that hinder or increase the cost of the transfer of foreign currency abroad to meet liability commitments. The policy that manages the risk of transferring foreign currency abroad thus contributes to the liquidity strategy and pursues the goal of reaching an adequate balance between liabilities payable to local counterparties and those payable to foreign counterparties in a return-risk proportion that is adequate for Banco de Galicia y Buenos Aires S.A.’s business and growth.

EXPOSURE TO THE NON-FINANCIAL PUBLIC SECTOR

With the purpose of regulating risk exposure with regard to the non-financial public sector, Banco de Galicia y Buenos Aires S.A. defined a policy which by design contemplates risk exposure in national, provincial and municipal jurisdictions, and set the limits on the direct and total assistance for each of those jurisdictions.

CREDIT RISK

Banco de Galicia y Buenos Aires S.A. uses credit assessment and risk monitoring tools to allow its management on a prompt and controlled basis to control its level of exposure to potential risks and encourages a proper portfolio diversification, both in individual terms and by economic sector.

Strategically, Banco de Galicia y Buenos Aires S.A. has decided to deepen its customers’ knowledge expressed in a specific policy, which allows for providing credit assistance to them according to their financing needs and based on their evaluated attributes, purposes and perspectives.

Banco de Galicia y Buenos Aires S.A.’s credit granting and analysis system is applied in a centralized manner and is based on the concept of “opposition of interests,” which takes place when risk management, credit and commercial duties are segregated, with respect to both retail and wholesale businesses. This allows for an ongoing and efficient monitoring of the quality of assets, an early management of problem loans, aggressive write-offs of uncollectible loans, and a conservative policy on allowances for loan losses.

OPERATIONAL RISK

Pursuant to the best practices and the guidelines determined by the Argentine Central Bank, Banco de Galicia y Buenos Aires S.A. has an Operational Risk Management Division through which it has implemented a Management Framework that includes policies, practices, procedures and structures for the appropriate management of this risk.

Operational Risk is the risk of losses due to the lack of conformity or due to failure of internal processes, the acts of people or systems, or due to external events. It includes the legal, reputational and information technology (IT) risk.

Banco de Galicia y Buenos Aires S.A. manages operational risk inherent in its products, activities and business processes. It also manages the risk associated with the material information systems, technology and information security processes. The IT Risk is the business risk associated with each of the information assets that may cause a negative impact on such entity. For this purpose, the failures in the information security and IT processes are reviewed in connection with the regulatory and legal compliance, the delivery of projects, operations and services and the obsolete IT infrastructure. Finally, Banco de Galicia y Buenos Aires S.A. manages risks derived from subcontracted activities and from services rendered by providers.

48

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

Furthermore, before launching or introducing new products, activities, processes or systems, their associated risks are properly assessed.

This way, Banco de Galicia y Buenos Aires S.A. has the necessary structure and resources to be able to determine the operational risk profile and thus take the corresponding corrective measures, complying with the regulations set forth by the Argentine Central Bank on guidelines for operational risk management in financial institutions and operational risk events database.

An appropriate management of operational risks also helps improve customer service quality.

In compliance with Communiqué “A” 5398, securitization, concentration, reputational and strategic risks were identified as significant risks, and a computation and measurement method was developed, which is currently being implemented. These risks, together with those mentioned previously, were included in the Capital Adequacy Assessment Report (I.A.C., as per its acronym in Spanish), within the framework of Communiqué “A” 5515.

SECURITIZATION RISK

Securitization is an alternative source of financing and a mechanism for the transfer of risks to investors. Notwithstanding the foregoing, securitization activities and the fast innovation with regard to the techniques and instruments used in such activities also generate new risks, including the following:

i) Credit, market, liquidity, concentration, legal and reputational risks, due to the securitization positions held or invested, including, among others, liquidity facilities and credit enhancements granted; and

ii) Credit risk due to the underlying exposures with regard to securitization.

CONCENTRATION RISK

Risk concentration has to do with the exposure or groups of exposure with similar characteristics, for instance when they belong to the same debtor, counterparty or guarantor, geographic area or economic sector; or because they are secured by the same type of assets used as collateral, with the possibility of generating:

i) Losses with regard to income, regulatory capital, assets or the global risk level, that are significant enough to affect the financial strength of the financial institution or its ability to keep the financial institution’s main transactions;

ii) A major change in the financial institution’s risk profile.

REPUTATIONAL RISK

Reputational risk is defined as the risk associated with a negative perception of the financial institution by customers, counterparties, shareholders, investors, account holders, market analysts and other significant market players, which adversely affects the financial institution’s ability to keep existing business relationships or establish new relationships, and continue having access to funding sources such as the interbank market or the securitization market.

STRATEGIC RISK

Strategic risk is that which arises from an inappropriate business strategy or an adverse change in forecasts, parameters, goals and other functions that support such strategy. Even though estimating this risk is complex, institutions must develop new management techniques that include all the related aspects.

ASSET LAUNDERING RISK

With regards to the control and prevention of asset laundering and funding of terrorist activities, Banco de Galicia y Buenos Aires S.A. complies with the regulations set forth by the Argentine Central Bank, the Financial Information Unit and Law No. 25246, as amended, which creates the Financial Information Unit (U.I.F.), under the jurisdiction of the

49

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

Ministry of Justice and Human Rights with functional autarchy. The Financial Information Unit is in charge of analyzing, addressing and reporting the information received, in order to prevent and avoid both asset laundering and funding of terrorist activities.

Banco de Galicia y Buenos Aires S.A. has promoted the implementation of measures designed to fight against the use of the international financial system by criminal organizations. For such purposes, Banco de Galicia y Buenos Aires S.A. has control policies, procedures and structures that are applied using a “risk-based approach,” which allow for the monitoring of transactions, pursuant to the “customer profile” (defined individually based on the information and documentation related to the economic and financial condition of the customer), in order to detect such transactions that should be considered unusual, and to report them to the U.I.F. in applicable cases. The Anti-Money Laundering Management Division (“PLA”, as per its initials in Spanish) is in charge of managing this activity, through the implementation of control and prevention procedures as well as the communication thereof to the rest of the organization by drafting the related handbooks and training all employees. In addition, the management of this risk is regularly reviewed by Internal Audit.

Banco de Galicia y Buenos Aires S.A. has appointed a director as Compliance Officer, pursuant to Resolution 121/11 of the U.I.F., who shall be responsible for ensuring compliance with and implementation of the proceedings and obligations on the issue.

Banco de Galicia y Buenos Aires S.A. contributes to the prevention and mitigation of risks from transaction-related criminal behaviors, by being involved in the international regulatory standards adoption process.

In compliance with Communiqué “A” 5394, as amended, issued by the Argentine Central Bank, Banco de Galicia y Buenos Aires S.A. quarterly publishes in its website (http://www.bancogalicia.com.ar) a document entitled “Disciplina de Mercado,” where there is information related to the structure and adequacy of regulatory capital, the exposure to the different risks and the management thereof.

NOTE 36. CORPORATE GOVERNANCE TRANSPARENCY POLICY

GRUPO FINANCIERO GALICIA S.A.

Grupo Financiero Galicia S.A.’s Board of Directors is the Company’s highest management body. It is made up of eight (8) directors and three (3) alternate directors, who must have the necessary knowledge and skills to clearly understand their responsibilities and duties within the corporate governance, and to act with the loyalty and diligence of a good businessman.

As set out in its bylaws, the term of office for both directors and alternate directors is three (3) years; they are partially changed every year and may be reelected indefinitely.

The Company complies with the appropriate standards regarding total number of directors, as well as the number of independent directors. Furthermore, its bylaws provide for the flexibility necessary to adapt the number of directors to the possible changes in the conditions in which the Company carries out its activities, from three (3) to nine (9) directors.

The Board of Directors complies, in every relevant respect, with the recommendations included in the Code on Corporate Governance as Schedule IV to Title IV of the regulations issued by the National Securities Commission (Text amended in 2013).

It also monitors the application of the corporate governance policies provided for by the regulations in force through the Audit Committee and the Committee for Information Integrity. Periodically, the Committees provide the Board of Directors with information, and the Board gets to know the decisions of each Committee. What is appropriate is transcribed in the minutes drafted at the Board of Directors’ meetings.

50

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

The Audit Committee set by Capital Markets Law No. 26831 and the C.N.V.’s regulations is formed by three (3) independent directors, and the Committee for Information Integrity’s mission is to comply with the provisions of Sarbanes-Oxley.

Basic Holding Structure

Grupo Financiero Galicia S.A. is a company whose sole purpose is to conduct financial and investment activities as per Section 31 of the Argentine General Corporations Law. That is to say, it is a holding company whose activity involves managing its equity investments, assets and resources.

Within the group of companies in which the Company has an interest, Banco de Galicia y Buenos Aires S.A. stands out, in which the former has a controlling equity interest, being its main asset as well. Banco de Galicia y Buenos Aires S.A., as a banking institution, is subject to certain regulatory restrictions imposed by the Argentine Central Bank. In particular, Banco de Galicia y Buenos Aires S.A. can only hold a 12.5% interest in the capital stock of companies that do not carry out activities considered supplementary by the Argentine Central Bank. Therefore, the Company holds, either directly or indirectly, the remaining interests in several companies. In addition, the Company indirectly holds a number of equity investments in supplementary companies that belong to Banco de Galicia y Buenos Aires S.A. as the controlling company.

Since the Company is a holding company, it has a limited personnel structure, and, therefore, many of the business organization requirements, common for big productive institutions, cannot be applied to this company.

To conclude, one should note that the Company is under the control of a pure holding company, EBA Holding S.A., which has the number of votes necessary to maintain a majority of votes at the Shareholders’ Meetings, although it does not have any managerial functions over the Company and the Company has no group relationship with EBA Holding S.A.

Compensation Systems

Directors’ compensation is defined by the General Shareholders’ Meeting and is fixed within the limits established by law and the corporate bylaws.

The Audit Committee expresses its opinion on whether compensation proposals for Directors are reasonable, taking into consideration market standards.

Business Conduct Policy

The Company has consistently shown respect for the rights of its shareholders, reliability and accuracy in the information provided, transparency as to its policies and decisions, and caution with regard to the disclosure of strategic business issues.

Code of Ethics

Grupo Financiero Galicia S.A. has a Code of Ethics formally approved that guides its policies and activities. It considers business objectivity and conflict-of-interests related-aspects, and how the employee should act upon identifying a breach of the Code of Ethics.

BANCO DE GALICIA Y BUENOS AIRES S.A.

Banco de Galicia y Buenos Aires S.A.’s Board of Directors is the Bank’s highest management body. It is currently made up of seven (7) directors and three (3) alternate directors, who have the necessary knowledge and skills to clearly understand their responsibilities and duties within the corporate governance, and act with the loyalty and diligence of a good businessman.

51

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

Banco de Galicia y Buenos Aires S.A. complies with the appropriate standards regarding total number of directors, as well as number of independent directors. Furthermore, its bylaws provide for the flexibility necessary to adapt from three (3) to nine (9) directors to the possible changes in the conditions in which the Bank carries out its activities.

The General Shareholders’ Meeting has the power to establish the number of directors, both independent and non-independent ones, and appoint them. Out of the seven directors, two are independent. In addition, one of the alternate directors is independent. The independence concept is defined in the regulations set forth by the C.N.V. and the Argentine Central Bank regulations.

As regards prevention of conflicts of interest, the provisions set forth in the General Corporations Law and the Capital Markets Law are applicable.

As set out in the bylaws, the term of office for both directors and alternate directors is three (3) years; two-thirds of them (or a fraction of at least three) are changed every year and may be reelected indefinitely.

The Board of Directors’ meeting is held at least once a week and when required by any director. The Board of Directors is responsible for Banco de Galicia y Buenos Aires S.A.’s general management and makes all the necessary decisions to such end. The Board of Directors’ members also take part, to a greater or lesser extent, in the commissions and committees created. Therefore, they are continuously informed about the Bank’s course of business and become aware of the decisions made by such bodies, which are transcribed into minutes.

Additionally, the Board of Directors receives a monthly report prepared by the General Manager, the purpose of which is to report the material issues and events addressed at the different meetings held between the General Manager and Senior Management. The Board of Directors becomes aware of such reports, as evidenced in the minutes.

In connection with directors’ training and development, Banco de Galicia y Buenos Aires S.A. has a program, which is reviewed every six months, whereby they regularly attend courses and seminars of different kinds and subjects.

Banco de Galicia y Buenos Aires S.A.’s executives, including directors, have proved updated knowledge and skills, and the Board of Directors’ performance is the most effective, which corresponds with the current dynamics of this body.

According to the activities carried out by Banco de Galicia y Buenos Aires S.A., effective laws and corporate strategies, the following committees have been created to achieve an effective control over all activities performed by the Bank:

Risk and Capital Allocation Committee

It is in charge of approving and analyzing the capital allocation, establishing risk policies and monitoring the Bank’s risk.

Follow-up and Performance Committee

This committee is in charge of presenting the evolution of the macroeconomic situation for the given period, presenting and analyzing trends and benchmarks, submitting, analyzing and discussing the different strategic matters of the Bank’s areas and subsidiaries, and disclosing and analyzing performance.

High Credit Committee

This committee’s function is to approve and sign credit ratings and grant transactions related to high-risk groups and customers, i.e. greater than 2.5% of the Bank’s individual Computable Regulatory Capital, loans to financial institutions (local or foreign) and related customers, in which case two thirds of the Board of Directors is required to participate.

Low Credit Committee

This committee’s function is to approve and sign the credit ratings and grant transactions related to medium-risk groups and customers, equal to amounts greater than 1% of the Bank’s individual Computable Regulatory Capital.

52

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

Asset and Liability Management Committee

This committee is in charge of analyzing the fundraising and its placement in different assets. This committee is also responsible for the follow-up and control of liquidity, interest-rate and currency mismatches, and management thereof.

Information Technology Committee

This committee is in charge of supervising and approving the development plans of new systems and their budgets, as well as supervising these systems’ budget control. It is also responsible for approving the general design of the systems’ structure, the main processes thereof and the systems implemented, as well as monitoring the quality of the Bank’s systems, within the policies established by the Board of Directors.

Audit Committee

The Audit Committee is responsible for helping the Board of Directors, in performing the control function of the Bank and its controlled companies and the companies in which it owns a stake, in order to fairly ensure the following objectives:

• Effectiveness and efficiency of operations;

• Reliability of the accounting information;

• Compliance with applicable laws and regulations; and

• Compliance with the goals and strategy set by the Board of Directors.

Committee for the Control and Prevention of Money Laundering and Funding of Terrorist Activities (CPLA/FT as per its initials in Spanish)

This committee is in charge of planning, coordinating and ensuring compliance with the policies on anti-money laundering and funding of terrorist activities set and approved by the Board of Directors.

Committee for Information Integrity

This committee is in charge of encouraging compliance with the provisions of Sarbanes-Oxley (2002).

Human Resources and Governance Committee

This commiittee is in charge of presenting the succession of the General Manager and Division Managers, analyzing and establishing the General Manager’s and Division Managers’ compensation, and monitoring the performance matrix of Department and Division Managers.

Performance Reporting Committee

This committee is in charge of monitoring the performance and results of operations, and evaluating the macro situation.

Liquidity Crisis Committee

This committee is in charge of evaluating the situation upon facing a liquidity crisis and deciding the steps to be implemented to tackle it.

Strategy and New Businesses Committee

This committee is in charge of analyzing new businesses.

Banco de Galicia y Buenos Aires S.A. considers the General Manager and Division Management reporting to the General Manager as Senior Management. These are detailed as follows:

• Retail Banking Division

• Wholesale Banking Division

• Finance Division

53

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

• Comprehensive Corporate Services Division

• Organizational Development and Human Resources Division

• Risk Management Division

• Credit Division

• Strategic Planning and Management Control Division

• Customer’s Experience Division

Senior Management’s main duties are as follows:

• Ensure that the Bank’s activities are consistent with the business strategy, the policies approved by the Board of Directors and the risks to be assumed.

• Implement the necessary policies, procedures, processes and controls to manage operations and risks cautiously, meet the strategic goals set by the Board of Directors and ensure that the latter receives material, full and timely information so that it may assess management and analyze whether the responsibilities assigned are effectively fulfilled.

• Monitor the managers from different divisions, in line with the policies and procedures set by the Board of Directors and establish an effective internal control system.

Basic Holding Structure

Banco de Galicia y Buenos Aires S.A.’s majority shareholder is the Company, which has full control of its shares and votes. In turn, Banco de Galicia y Buenos Aires S.A. holds equity investments in supplementary companies as controlling company, as well as minority interests in companies whose controlling company is Grupo Financiero Galicia S.A. From a business point of view, this structure allows the Bank to take advantage of significant synergies that guarantee the loyalty of its customers and additional businesses. All business relationships with these companies, whether permanent or occasional in nature, are fostered under the normal and usual market conditions and this is true when Banco de Galicia y Buenos Aires S.A. holds either a majority or minority interest. Grupo Financiero Galicia S.A.’s Board of Directors submits to the Shareholders’ Meeting’s vote which shall be the Company’s vote, in its capacity as controlling company, at Banco de Galicia y Buenos Aires’s Shareholders’ Meeting. The same method of transparency and information as to its controlled companies and the companies it owns a stake in is applied at the Bank’s Shareholders’ Meetings, which are always attended by directors and officers thereof and the Board of Directors always provides detailed information about the Company’s activities.

Business Conduct Policy and/or Code of Ethics

Banco de Galicia y Buenos Aires S.A. has a formally approved Code of Ethics that guides its policies and activities. It considers business objectivity and conflict of interest related aspects, and how the employee should act upon identifying a breach of the Code of Ethics, with the involvement of the Conduct Committee.

Information Related to Personnel Economic Incentive Practices

The Human Resources and Governance Committee, composed of two (2) Directors, the Managing Director and the Organizational Development and Human Resources Division Manager, is in charge of establishing the compensation policy for Banco de Galicia y Buenos Aires S.A.’s personnel.

It is the policy of Banco de Galicia y Buenos Aires S.A. to manage the full compensation of its personnel based on the principles of fairness, meritocracy and justice, within the framework of the legal regulations in force.

The aim of this policy is to provide an objective and fair basis, through the design and implementation of tools for the management of the fixed and variable compensation paid to each employee, based on the scope and complexity of each position’s responsibilities, individual performance with regard to compliance thereof, contribution to the Bank’s results and conformity to market values, with the purpose of:

• Attracting and creating loyalty with regard to quality personnel suitable for the achievement of the business strategy and goals.

54

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

• Being an individual motivation means.

• Easing the decentralized management of compensation administration.

• Allowing the effective budget control of personnel costs.

• Guaranteeing internal fairness.

In order to monitor and guarantee both external and internal fairness with regard to the payment of fixed and variable compensation, the Compensation area uses, and puts at the disposal of the Senior Management and the Human Resources Committee, market surveys published by consulting firms specialized in compensation issues, pursuant to the market positioning policies defined by the management division for the different corporate levels.

With the purpose of gearing individuals towards the achievement of attainable results that contribute to the global performance of the Bank/Area, and to the increase in motivation for the common attainment of goals, differentiating individual contribution, Banco de Galicia y Buenos Aires S.A. has different variable compensation systems:

1. Business Incentives and/or Incentives through Commissions system for business areas.

2. Annual Bonus System for management levels, officers and the rest of the employees who are not included in the business incentives system. The annual bonus is determined based on individual performance and Banco de Galicia y Buenos Aires S.A.’s results, and is paid in the first quarter of the next fiscal year. To determine the variable compensation for the senior management and middle management, the Bank uses the Management Performance Assessment System. This system has been designed to include both qualitative and quantitative K.P.I. (Key Performance Indicators). In particular, quantitative Key Performance Indicators are designed with respect to at least three minimum aspects:

• Results.

• Business volume or size.

• Projections: Indicators that protect the business for the future (For example: Quality, internal and external customer satisfaction, risk coverage, work environment, etc.).

The significance or impact of each of them is monitored and adjusted yearly pursuant to the strategy approved by the Board of Directors.

The interaction among these three aspects seeks to make incentives related to results and growth consistent with the risk thresholds determined by the Board of Directors.

In turn, there is no deferred payment of variable compensation subject to the occurrence of future events or in the long term, taking into consideration that the business environment in the Argentine financial system is characterized by being mainly transactional, with lending and borrowing transactions with a very short seasoning term.

Annual budget and management control – the latter carried out monthly in a general manner and quarterly in a more detailed manner - include different risk ratios, including the ratio between compensation and risks undertaken.

Variable compensation is only paid in cash. There are no payments in shares.

Every change to this policy is submitted to Banco de Galicia y Buenos Aires S.A.’s Human Resources and Governance Committee for its consideration.

55

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

NOTE 37. PENALTIES IMPOSED ON BANCO DE GALICIA Y BUENOS AIRES S.A. AND SUMMARY PROCEEDINGS COMMENCED BY THE ARGENTINE CENTRAL BANK

Penalties Imposed on Banco de Galicia y Buenos Aires S.A. Existing as of December 31, 2016:

Argentine Central Bank’s Financial Summary Proceedings No. 1308. Penalty notification date: October 28, 2013. Reason for the imposition of the penalty: Alleged non-compliance with the regulations on prevention of money laundering, due to lack of files and of customers’ awareness. Penalty amount and responsible individuals penalized (penalties): Banco de Galicia y Buenos Aires S.A. $230; Daniel A. Llambías $220; Luis M. Ribaya $172; Antonio R. Garcés $169; Enrique M. Garda Olaciregui $126; Eduardo A. Fanciulli $126; Sergio Grinenco $120; Guillermo J. Pando $120; and Pablo Garat $70. Status of the pending proceedings: federal extraordinary appeal before the Argentine Supreme Court of Justice (CSJN, as per its initials in Spanish) against the judgment passed by the Argentine Federal Court of Appeals in Administrative Matters that dismissed the appeal filed by the damaged parties against the penalties applied. Accounting treatment: Fines were paid in full and charged to income for the corresponding fiscal year.

Argentine Central Bank’s Financial Summary Proceedings No. 1223 and 1226 (accumulated). Penalty notification date: November 15, 2013. Reason for the imposition of the penalty: Alleged non-compliance with Communiqué “A” 3426 and Communiqué “A” 3381 of the Argentine Central Bank, and alleged non-compliance with restrictions related to assistance to related customers. Penalty amount and responsible individuals penalized (penalties): Banco de Galicia y Buenos Aires S.A. $400; José H. Petrocelli $328; Luis M. Ribaya $328; Eduardo J. Zimermann $324; Antonio R. Garcés $400; Eduardo H. Arrobas $400; Daniel A. Llambías $400; Eduardo J. Escasany $260; Federico Braun $260; and Abel Ayerza $258. In the case of Messrs. Juan M. Etchegoyhen, Federico M. Caparrós Bosch, Jorge Grouman, Norberto R. Armando (deceased), Daniel Morgan (deceased), Luis O. Oddone, Ricardo A. Bertoglio (deceased), Norberto D. Corizzo and Adolfo H. Melian, warning penalty. Status of the proceedings: the case is being currently analyzed by the CSJN. Accounting treatment: Fines were paid in full and charged to income for the corresponding fiscal year.

U.I.F.’s Summary Proceedings No. 68/09. Penalty notification date: February 25, 2010. Reason for the imposition of the penalty: Alleged omission to report suspicious activities, in possible infringement of Act No. 25246. Penalty amount and responsible individuals penalized (penalties): Banco de Galicia y Buenos Aires S.A. $2,242; Eduardo A. Fanciulli $812; Enrique M. Garda Olaciregui $1,429. Status of the proceedings: Division I of the Argentine Federal Court of Appeals in Administrative Matters partially revoked the penalties, releasing Eduardo A. Fanciulli from any liability and reducing the fines imposed. The U.I.F. and other parties involved filed federal extraordinary appeals before the CSJN. Accounting treatment: As of December 31, 2016 and 2015, a provision for $4,483 has been set up.

U.I.F.’s Summary Proceedings No. 213/12. Penalty notification date: May 6, 2014. Reason for the imposition of the penalty: Alleged omission to report suspicious activities, in infringement of Law No. 25246, Section 24. Penalty amount and responsible individuals penalized (penalties): Banco de Galicia y Buenos Aires S.A. $324; Enrique M. Garda Olaciregui, Pablo M. Garat, Sergio Grinenco, Pablo Gutierrez, Guillermo J. Pando, Luis M. Ribaya and Antonio R. Garcés $324, jointly. Status of the proceedings: an appeal against the penalties was filed with the Argentine Federal Court of Appeals in Administrative Matters, which decided to consider the power to impose penalties on the Bank and the individuals on whom charges have been filed extinguished. The U.I.F. filed a federal extraordinary appeal before the CSJN. Accounting treatment: As of December 31, 2016, a provision for $648 has been set up.

56

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

Summary Proceedings Commenced by the Argentine Central Bank (with no Penalties) Pending as of December 31, 2016:

Summary Proceedings No. 6075. Notification date: January 26, 2015. Charges Filed: Alleged infringement of Communiqué “A” 4940, “A” 4662 and “C” 51232 of the Argentine Central Bank upon carrying out eight foreign exchange transactions. Individuals subject to summary proceedings: Banco de Galicia y Buenos Aires S.A., Alejandro Antonelli, Sergio Lenzuen, Daniel B. Toloza, Ignacio J. Castro, José A. Petracca, Juan C. Litardo, Laura C. Cifala, Marcela R. Skrebutenas, María J. Baldatti, María V. Lema, Marina A. de Sierra, Matías L. Alvarez, Matías N. Abate, María B. Troitiño, Natalia Bortoli, Alejandro Schlimovich Ricciardi and Sandra P. Jaleh Camin. Status of the proceedings: a defense brief was filed and the lack of definition by the most favorable criminal law was put forward. Both are being analyzed by the Argentine Central Bank’s Management Division of Foreign Exchange Litigation Matters.

Argentine Central Bank’s Financial Summary Proceedings No. 1454 - Record 101059/14. Notification date: September 16, 2015. Charges Filed: Alleged infringement of Argentine Central Bank’s Communiqué “A” 5640. Individuals subject to summary proceedings: Banco de Galicia y Buenos Aires S.A., Sergio Grinenco, Pablo Gutierrez, Pablo M. Garat, Ignacio Abel Gonzalez, Guillermo J. Pando, Luis M. Ribaya, Raúl H. Seoane, Ignacio H. Villa Del Prat, Juan Agustín Núñez, Ariel F. Phoyu, Walter R. Buono, Eduardo S. Coscueta, Sebastián Torriti and Jorge L. García. On September 30, 2015, a defense was filed with the Argentine Central Bank. Status of the proceedings: a defense was filed with the Argentine Central Bank, which is being analyzed by such entity’s Management Division of Financial Litigation Matters.

Summary Proceedings No. 6669. Notification date: December 29, 2015. Charges Filed: Alleged breach of Section 1, Subsection c), e) and f) of Law No. 19359 integrated into Argentine Central Bank’s Communiqué “A” 3471, 3826 and 5264. Individuals subject to summary proceedings: Banco de Galicia y Buenos Aires S.A., María José Baldatti de Iorio and Laura Cecilia Cifala. Status of the proceedings: a defense brief was filed, which is being analyzed by the Argentine Central Bank’s Management Division of Foreign Exchange Litigation Matters.

Summary Proceedings No. 6681. Notification date: December 30, 2015. Charges filed: Alleged breach of Section 1, Subsection c), e) and f) of Law No. 10959 integrated into point 1 of Argentine Central Bank’s Communiqué “A” 5397 and 4.1 of Argentine Central Bank’s Communiqué “A” 5264. Individuals subject to summary proceedings: Banco de Galicia y Buenos Aires S.A., María José Baldatti de Iorio, Roberto Fernandez and María Soledad Paz. Status of the proceedings: a defense brief was filed and the lack of definition by the most favorable criminal law was put forward, which was partially sustained by the Argentine Central Bank’s Management Division of Foreign Exchange Litigation Matters. The latter decided to partially file the proceedings. The case is currently being analyzed and a new lack of definition by the most favorable criminal law was put forward.

Summary Proceedings No. 6670. Notification date: February 16, 2016. Charges Filed: Alleged breach of Section 1, Subsection c), e) and f) of Law No. 19359 integrated into Argentine Central Bank’s Communiqué “A” 5377 (amending point 3 of Annex to Communiqué “A” 5264). Individuals subject to summary proceedings: the Bank, María José Baldatti de Iorio, José Antonio Petracca and María Paula Petzl. Status of the proceedings: a defense brief was filed and the lack of definition by the most favorable criminal law was put forward. Both are being analyzed by the Argentine Central Bank’s Management Division of Foreign Exchange Litigation Matters.

Summary Proceedings No. 6876. Notification date: May 20, 2016. Charges Filed: Alleged breach of Section 1, Subsection c), e) and f) of Law No. 19359 integrated into Argentine Central Bank’s Communiqué “A” 3471, 5264 and 5377. Individuals subject to summary proceedings: the Bank, María José Baldatti de Iorio, Natalia Stella Maris Mesiano and María Paula Petzl. Status of the proceedings: a defense brief was filed and the lack of definition by the most favorable criminal law was put forward. Both are being analyzed by the Argentine Central Bank’s Management Division of Foreign Exchange Litigation Matters.

57

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

Summary Proceedings No. 6988. Notification date: August 25, 2016. Charges filed: Alleged breach of Section 1, Subsection c), e) and f) of Law No. 19359 integrated into Argentine Central Bank’s Communiqué “A” 3471, 3826, 5264 and 5265. Individuals subject to summary proceedings: María José Baldatti de Iorio, Laura Cecilia Cifala. Status of the proceedings: the defense has not been filed yet, which is in the process of being drafted.

NOTE 38. SUBSEQUENT EVENTS

On January 12, 2017, the decision made was to accept the offer to buy all the shares in Compañía Financiera Argentina S.A. and in Cobranzas y Servicios S.A. Such offer was made by Mr. Julio Alfredo Fraomeni and Galeno Capital S.A.U. The closing of the transaction is subject to the prior compliance with the conditions set out in the offer, such as the Argentine Central Bank’s approval.

The price offered is subject to certain adjustment variables, the effect of which may vary according to the time when the transaction is finally closed with its approval by the regulatory authorities. Notwithstanding the foregoing, we believe that the economic result of the transaction will not cause a significant impact on the Company’s shareholders’ equity.

58

GRUPO FINANCIERO GALICIA S.A.

BALANCE SHEET

AS OF DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($)

	Notes	Schedules	12.31.16		12.31.15
Assets
Current Assets
Cash and Due from Banks	2 and 11			320		799
Investments	9 and 11	D and G		199,459		22,113
Other Receivables	3, 9 and 11	E and G		39,292		48,441
Total Current Assets				239,071		71,353
Non-current Assets
Other Receivables	3, 11 and 13	E and G		—		143,372
Investments	9	B and C		20,513,853		14,830,138
Fixed Assets		A		—		216
Total Non-current Assets				20,513,853		14,973,726
Total Assets				20,752,924		15,045,079
Liabilities
Current Liabilities
Financial Debt	4, 9 and 15			363,956		164,523
Salaries and Social Security Contributions	5 and 9			2,652		2,047
Tax Liabilities	6 and 9			27,562		38,432
Other Liabilities	7, 9 and 11	G		6,050		7,205
Total Current Liabilities				400,220		212,207
Non-current Liabilities
Financial Debt	4 and 15			—		348,045
Other Liabilities	7 and 9			6		6
Total Non-current Liabilities				6		348,051
Total Liabilities				400,226		560,258
Shareholders’ Equity (per Related Statement)				20,352,698		14,484,821
Total Liabilities and Shareholders’ Equity				20,752,924		15,045,079

The accompanying Notes 1 to 16 and Schedules A, B, C, D, E, G, and H are an integral part of these financial statements.

59

GRUPO FINANCIERO GALICIA S.A.

INCOME STATEMENT

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($)

	Notes	Schedules		12.31.16			12.31.15
Net Income on Investments in Related Institutions					6,145,095			4,427,554
Administrative Expenses	11		H		(58,327	)		(26,955	)
Financial and Holding Loss	11				(77,252	)		(60,605	)
Generated by Assets					43,224			57,906
Interest
On Special Checking Account Deposits					1			2
On Mutual Funds					5,504			2,716
On Time Deposits					21			25
Income / Loss from Government and Corporate Securities					15,484			62
Foreign Exchange Income					22,214			55,101
Generated by Liabilities					(120,476	)		(118,511	)
Interest
On Financial Debt	(*)				(118,613	)		(116,276	)
Others					(588	)		(318	)
Foreign Exchange Loss					(1,275	)		(1,917	)
Other Income and Expenses - Income / (Loss)					8,361			(1,597	)
Net Income before Income Tax					6,017,877			4,338,397
Income Tax	13				—			—
Net Income for the Fiscal Year	14				6,017,877			4,338,397

(*) Balances net of eliminations corresponding to transactions conducted with companies included in Section 33 of Law No. 19550. See Note 11.

The accompanying Notes 1 to 16 and Schedules A, B, C, D, E, G, and H are an integral part of these financial statements.

60

GRUPO FINANCIERO GALICIA S.A.

STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($)

Item	Shareholders’ Contributions (*)										Retained Earnings (**)							Total Shareholders’ Equity
	Capital Stock		Capital Adjustment		Premium for Negotiation of Shares in Own Portfolio		Additional Paid-in Capital		Total		Legal Reserve		Discretionary Reserve		Unappropriated Retained Earnings
Balances as of 12.31.14		1,300,265		278,131		606		218,990		1,797,992		291,248		4,819,394		3,337,790			10,246,424
Distribution of Unappropriated Retained Earnings (1)
Legal Reserve		—		—		—		—		—		24,432		—		(24,432	)		—
Discretionary Reserve		—		—		—		—		—		—		3,213,358		(3,213,358	)		—
Cash Dividends		—		—		—		—		—		—		—		(100,000	)		(100,000	)
Income for the Fiscal Year		—		—		—		—		—		—		—		4,338,397			4,338,397
Balances as of 12.31.15		1,300,265		278,131		606		218,990		1,797,992		315,680		8,032,752		4,338,397			14,484,821
Balances as of 12.31.15		1,300,265		278,131		606		218,990		1,797,992		315,680		8,032,752		4,338,397			14,484,821
Distribution of Unappropriated Retained Earnings (2)
Discretionary Reserve		—		—		—		—		—		—		4,188,397		(4,188,397	)		—
Cash Dividends		—		—		—		—		—		—		—		(150,000	)		(150,000	)
Income for the Fiscal Year		—		—		—		—		—		—		—		6,017,877			6,017,877
Balances as of 12.31.16		1,300,265		278,131		606		218,990		1,797,992		315,680		12,221,149		6,017,877			20,352,698

⁽*⁾  See Note 8.

⁽**⁾  See Note 12.

⁽¹⁾  Approved by the Ordinary Shareholders’ Meeting held on April 29, 2015.

⁽²⁾  Approved by the Ordinary Shareholders’ Meeting held on April 26, 2016.

The accompanying Notes 1 to 16 and Schedules A, B, C, D, E, G, and H are an integral part of these financial statements.

61

GRUPO FINANCIERO GALICIA S.A.

STATEMENT OF CASH FLOWS AND CASH EQUIVALENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($)

	Notes	12.31.16			12.31.15
Changes in Cash
Cash at Beginning of Fiscal Year	1.I		22,912			10,188
Cash at Fiscal Year-end	1.I		163,299			22,912
Net Increase in Cash			140,387			12,724
Causes for Changes in Cash
Operating Activities
Collections for Services			3,258			—
Payments to Suppliers of Goods and Services			(37,686	)		(17,860	)
Personnel Salaries and Social Security Contributions			(8,040	)		(4,908	)
Payments of Other Taxes			(18,111	)		(9,225	)
Collections for Other Operating Activities, Net			7,633			8,465
Net Cash Flow Used in Operating Activities			(52,946	)		(23,528	)
Investing Activities
Collection of Dividends			430,810			189,589
Investment Collections			152,705			—
Collections for Sale of Fixed Assets			210			—
Net Cash Flow Provided by Investing Activities			583,725			189,589
Financing Activities
Payments of Interest, Net			(100,237	)		(99,177	)
Loans Received			—			45,840
Financing Payment			(140,155	)		—
Distribution of Dividends			(150,000	)		(100,000	)
Net Cash Flow Used in Financing Activities			(390,392	)		(153,337	)
Net Increase in Cash			140,387			12,724

The accompanying Notes 1 to 16 and Schedules A, B, C, D, E, G, and H are an integral part of these financial statements.

62

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

NOTE 1. BASIS FOR THE PREPARATION OF THE FINANCIAL STATEMENTS

These financial statements have been stated in thousands of Argentine Pesos and prepared in accordance with disclosure and valuation accounting standards contained in the Technical Pronouncements issued by the F.A.C.P.C.E., approved by the C.P.C.E.C.A.B.A. and the C.N.V., with the considerations mentioned in Note 1 to the consolidated financial statements in relation to the criteria for the valuation of the subsidiaries Banco de Galicia y Buenos Aires S.A. and Sudamericana Holding S.A.

The preparation of financial statements at a given date requires the Company’s Management to make estimates and assessments regarding events and/or situations and/or circumstances that affect or may affect the amounts of assets and liabilities reported and the disclosure of contingent assets and liabilities at that date, as well as the income and expenses recorded for the fiscal year. The Company’s Management makes estimates in order to calculate, at any given moment, for example, the depreciation charges, the recoverable value of assets, the income tax charge and provisions for contingencies. Estimates and assessments made as of the date that these financial statements were prepared may differ from the situations, events and/or circumstances that may finally occur in the future.

On March 25, 2003, the Argentine National Executive Branch issued Decree No. 664 establishing that financial statements for fiscal years ending as from said date be stated in nominal currency. Consequently, in accordance with Resolution No. 441/03 of the C.N.V., the Company discontinued the restatement of its financial statements as of March 1, 2003. This criterion is not in line with Argentine GAAP, under which financial statements are to be restated until September 30, 2003. Nevertheless, this departure has not produced a significant effect on the financial statements.

The index used for restating the items in these financial statements was the domestic wholesale price index published by the Argentine Institute of Statistics and Census (I.N.D.E.C.).

The most significant accounting policies used in preparing the Financial Statements are listed below:

A. ASSETS AND LIABILITIES IN DOMESTIC CURRENCY

Monetary assets and liabilities which include, where applicable, the interest accrued at fiscal year-end, are stated in period-end currency and therefore require no adjustment whatsoever.

B. ASSETS AND LIABILITIES IN FOREIGN CURRENCY (U.S. DOLLARS)

The assets and liabilities in foreign currency were stated at the U.S. Dollar exchange rate set by the Argentine Central Bank, at the close of operations on the last business day of the fiscal year.

Interest receivable or payable has been accrued, where applicable.

C. INVESTMENTS

C.1. Current

Time and special checking account deposits have been measured at their face value, plus accrued interest at fiscal year-end.

Argentine mutual fund units have been valued at fiscal year-end closing price.

Government securities as of fiscal year-end are valued at their acquisition cost increased on an exponential basis according to their internal rate of return.

C.2. Non-current

The equity investments in companies are recognized using the equity method as of fiscal year-end.

63

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

The consolidated financial statements of Sudamericana Holding S.A. have been prepared pursuant to the regulations of the Argentine Superintendent of Insurance (S.S.N.), which differ from Argentine GAAP in certain aspects. Nevertheless, this departure has not produced a significant effect on the Company’s financial statements.

The equity investments in Banco de Galicia y Buenos Aires S.A. and Compañía Financiera Argentina S.A. have been recognized using the equity method, which arises from financial statements prepared in accordance with Argentine Banking GAAP, which differ in the aspects mentioned in Note 1.15. to the consolidated financial statements from Argentine GAAP.

The valuation of the minority interest in Compañía Financiera Argentina S.A. does not exceed the estimated recoverable values. See Note 16.

D. GOODWILL

Goodwill resulting from the acquisition of shares in other companies, which is recorded under “Investments”, has been valued at its acquisition cost, net of the corresponding accumulated amortization, calculated proportionally over the estimated useful life.

Amortization is assessed on a straight-line basis in equal monthly installments, with an amortization term of 120 months. See Schedule B.

The updated residual value of the assets does not exceed their estimated recoverable value at fiscal year-end.

E. FIXED ASSETS

Fixed Assets have been valued at their acquisition cost, restated at constant currency as mentioned in this Note, net of the corresponding accumulated depreciation.

Depreciation charges are calculated following the straight-line method, at rates determined based on the useful life assigned to the assets, which is 60 months for hardware and software and furniture and fixtures.

The updated residual value of the assets, taken as a whole, does not exceed their value-in-use at fiscal year-end.

At the end of fiscal year 2016, the Company retired from its assets those that, due to their physical and/or technological obsolescence, were not useful for their intended purpose, and which pieces could not be used or exploited. See Schedule A.

F. FINANCIAL DEBT

Financial debt has been valued pursuant to the amount of money received, plus the accrued portion of interest as of fiscal year-end.

G. INCOME TAX AND MINIMUM PRESUMED INCOME TAX

The Company has recognized the income tax charge according to the deferred tax method, thus recognizing the temporary differences between measurements of accounting and tax assets and liabilities, at the rate in force (see Note 13 to the financial statements). Due to the unlikelihood that future taxable income may be enough to absorb tax loss carry-forwards, the Company has established an allowance for impairment of value with regard to such income and has not recorded tax loss carry-forwards. See Schedule E.

The Company determines the minimum presumed income tax at the effective rate of 1% of the computable assets at fiscal year-end. This tax is supplementary to the income tax. The Company’s tax liability for each fiscal year shall be determined by the higher of the two taxes. However, if the minimum presumed income tax were to exceed income tax in a given fiscal year, such excess may be computed as a payment on account of the income tax that could be generated in any of the next ten fiscal years.

64

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

The breakdown of outstanding tax credits and their probable expiration date are detailed below:

Date of Generation	Tax Credit as of				Expiration Date
	12.31.16		12.31.15
2010		938		938		2020
2011		1,057		1,057		2021
2012		762		762		2022
2013		467		467		2023
2014		264		264		2024
2015		1,006		1,009		2025
2016		—		—		2026
		4,494		4,497

The Company set up a provision for the minimum presumed income tax credit accrued for $4,494, since its recovery is not likely at the issuance date of these financial statements. See Schedule E.

H. SHAREHOLDERS’ EQUITY

H.1. Activity in the Shareholders’ Equity accounts has been restated as mentioned in paragraphs three and four of this Note.

The “Subscribed and Paid-in Capital” account has been stated at its face value and at the value of the contributions in the currency value of the fiscal year in which those contributions were actually made.

The adjustment stemming from the restatement of that account in constant currency has been allocated to the “Capital Adjustment” account.

H.2. Income and Expense Accounts

The results of operations for each fiscal year are presented in the fiscal year in which they accrue.

I. STATEMENT OF CASH FLOWS

“Cash and Due from Banks,” investments and receivables held with the purpose of complying with the short-term commitments undertaken, with a high level of liquidity, easily converted into known amounts of cash, subject to insignificant risks of changes in value and with a maturity less than three months from the date of the acquisition thereof, are considered to be cash and cash equivalents. The breakdown is as follows:

	Notes	Schedules	12.31.16		12.31.15
Cash and Due from Banks	2			320		799
Investments		D and G		162,979		22,113
Total				163,299		22,912

NOTE 2. CASH AND DUE FROM BANKS

As of December 31, 2016 and December 31, 2015, the breakdown of the account was as follows:

	Notes	Schedules	12.31.16		12.31.15
Cash				20		14
Due from Banks – Checking Accounts	11			300		785
Total				320		799

65

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

NOTE 3. OTHER RECEIVABLES

As of December 31, 2016 and December 31, 2015, the breakdown of the account was as follows:

Current	Notes		Schedules		12.31.16			12.31.15
Tax Credits						2,681			1,779
Miscellaneous Receivables
Recoverable Expenses						30,241			40,688
Promissory Notes Receivable		11		G		—			8,224
Sundry Debtors						128			197
Prepaid Expenses						61			45
Others		11				9,052			—
Allowance for Impairment of Value of Miscellaneous Receivables				E		(2,871	)		(2,492	)
Total		9				39,292			48,441
Non-current	Notes		Schedules		12.31.16			12.31.15
Tax Credits
Minimum Presumed Income Tax Receivables		1.G.				4,494			4,497
Allowance for Impairment of Value of Minimum Presumed Income Tax Receivables		1.G.		E		(4,494	)		(4,497	)
Deferred Tax Asset		1.G. and 13				150,171			114,790
Allowance for Impairment of Value of Deferred Tax Asset		1.G. and 13		E		(150,171	)		(114,790	)
Promissory Notes Receivable		11		G		—			143,367
Prepaid Expenses						—			5
Total						—			143,372

NOTE 4. FINANCIAL DEBT

As of December 31, 2016 and December 31, 2015, the breakdown of the account was as follows:

Current	Notes	Schedules	12.31.16		12.31.15
Notes	9 and 15			363,956		164,523
Total				363,956		164,523
Non-current	Notes	Schedules	12.31.16		12.31.15
Notes	9 and 15			—		348,045
Total				—		348,045

NOTE 5. SALARIES AND SOCIAL SECURITY CONTRIBUTIONS

As of December 31, 2016 and December 31, 2015, the breakdown of the account was as follows:

Current	Notes	Schedules	12.31.16		12.31.15
Argentine Integrated Social Security System (S.I.P.A.)				222		155
Provision for Bonuses				100		435
Provision for Retirement Insurance				2,321		650
Provision for Directors’ Fees				—		803
Others				9		4
Total	9			2,652		2,047

66

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

NOTE 6. TAX LIABILITIES

As of December 31, 2016 and December 31, 2015, the breakdown of the account was as follows:

Current	Notes	Schedules	12.31.16		12.31.15
Income Tax – Withholdings to Be Deposited				192		145
Provision for Tax on Personal Property – Substitute Taxpayer				27,370		38,196
Provision for Turnover Tax				—		91
Total	9			27,562		38,432

NOTE 7. OTHER LIABILITIES

As of December 31, 2016 and December 31, 2015, the breakdown of the account was as follows:

Current	Notes	Schedules		12.31.16		12.31.15
Sundry Creditors					450		1,058
Provision for Expenses	11		G		5,598		6,144
Guarantee Deposit of Directors					2		3
Total	9				6,050		7,205
Non-current	Notes	Schedules		12.31.16		12.31.15
Guarantee Deposit of Directors					6		6
Total	9				6		6

NOTE 8. CAPITAL STATUS

The capital status as of the dates mentioned was as follows:

Capital Stock	Face Value						Restated at Constant Currency
	Subscribed		Paid-in		Registered
Balances as of 12.31.14		1,300,265		1,300,265		1,300,265		1,578,396
Balances as of 12.31.15		1,300,265		1,300,265		1,300,265		1,578,396
Balances as of 12.31.16		1,300,265		1,300,265		1,300,265		1,578,396

NOTE 9. ESTIMATED COLLECTION OR PAYMENT TERMS OF RECEIVABLES, INVESTMENTS AND DEBTS

As of December 31, 2016, the breakdown of receivables, investments, and debts according to their estimated collection or payment term was as follows:

	Investments		Other Receivables		Financial Debt		Salaries and Social Security Contributions		Tax Liabilities		Other Liabilities
1st Quarter (*)		199,459		38,929		203,956		2,652		27,562		5,360
2nd Quarter (*)		—		—		—		—		—		661
3rd Quarter (*)		—		37		160,000		—		—		29
4th Quarter (*)		—		326		—		—		—		—
After One Year (*)		—		—		—		—		—		6
Subtotal Falling Due		199,459		39,292		363,956		2,652		27,562		6,056
No Set Due Date		20,513,853		—		—		—		—		—
Total		20,713,312		39,292		363,956		2,652		27,562		6,056
Non-interest Bearing		20,550,448		39,292		—		2,652		27,562		6,056
At Variable Rate		18,854		—		363,956		—		—		—
At Fixed Rate		144,010		—		—		—		—		—
Total		20,713,312		39,292		363,956		2,652		27,562		6,056

(*) From the closing date of these financial statements.

67

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

NOTE 10. EQUITY INVESTMENTS

The breakdown of the Company’s direct equity investments as of fiscal year-end was as follows:

Information as of:	12.31.16
Issuing Company	Direct Holding
	Shares			Percentage of Equity Investment Held in
	Type	Amount		Total Capital		Possible Votes
Banco de Galicia y Buenos Aires S.A.	Ordinary(*)		562,326,651		100.00000		100.00000
Compañía Financiera Argentina S.A.	Ordinary		16,726,875		3.00000		3.00000
Galicia Administradora de Fondos S.A.	Ordinary		19,000		95.00000		95.00000
Galicia Warrants S.A.	Ordinary		875,000		87.50000		87.50000
Net Investment S.A.	Ordinary		10,500		87.50000		87.50000
Sudamericana Holding S.A.	Ordinary		162,447		87.50034		87.50034

(*) Ordinary shares A and B.

Information as of:	12.31.15
Issuing Company	Direct Holding
	Shares			Percentage of Equity Investment Held in
	Type	Amount		Total Capital		Possible Votes
Banco de Galicia y Buenos Aires S.A.	Ordinary(*)		562,326,651		100.00000		100.00000
Compañía Financiera Argentina S.A.	Ordinary		16,726,875		3.00000		3.00000
Galicia Administradora de Fondos S.A.	Ordinary		19,000		95.00000		95.00000
Galicia Warrants S.A.	Ordinary		875,000		87.50000		87.50000
Net Investment S.A.	Ordinary		10,500		87.50000		87.50000
Sudamericana Holding S.A.	Ordinary		162,447		87.50034		87.50034

(*) Ordinary shares A and B.

The financial position and results of operations of the companies in which Grupo Financiero Galicia S.A. holds a direct equity investment as of period/fiscal year-end are as follows:

Information as of:	12.31.16
Company	Assets		Liabilities		Shareholders’ Equity		Net Income
Banco de Galicia y Buenos Aires S.A.		209,306,331		190,400,460		18,905,871		5,093,699
Compañía Financiera Argentina S.A.		5,893,851		4,678,351		1,215,500		342,550
Galicia Administradora de Fondos S.A.		280,237		73,502		206,735		196,851
Galicia Warrants S.A.		112,504		54,454		58,050		31,628
Net Investment S.A.		262		4		258		48
Sudamericana Holding S.A.(*)		1,029,861		10,716		1,019,145		312,914

(*) Income for the six-month period as of December 31, 2016.

Information as of:	12.31.15
Company	Assets		Liabilities		Shareholders’ Equity		Net Income
Banco de Galicia y Buenos Aires S.A.		138,712,123		124,899,951		13,812,172		3,912,920
Compañía Financiera Argentina S.A.		3,748,000		2,498,053		1,249,947		127,316
Galicia Administradora de Fondos S.A.		168,857		48,972		119,885		115,963
Galicia Warrants S.A.		90,935		44,513		46,422		31,253
Net Investment S.A.		217		7		210		37
Sudamericana Holding S.A.(*)		656,846		11,235		645,611		256,244

(*) Income for the six-month period as of December 31, 2015.

68

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

NOTE 11. SECTION 33 OF LAW 19550 – GENERAL CORPORATIONS LAW

The financial statements include the following significant balances corresponding to transactions with its controlled companies and its subsidiaries:

BANCO DE GALICIA Y BUENOS AIRES S.A.

Assets	Notes		Schedules	12.31.16		12.31.15
Cash and Due from Banks – Checking Accounts		2			269		767
Investments – Special Checking Account		9	D		115		95
Other Receivables – Promissory Notes Receivable		3	G		—		151,591
Total					384		152,453
Liabilities	Notes		Schedules	12.31.16		12.31.15
Other Liabilities – Provision for Expenses		7 and 9			300		329
Total					300		329
Income	Notes		Schedules	12.31.16		12.31.15
Financial Income – Interest on Promissory Notes Receivable					12,576		11,650
Total					12,576		11,650
Expenses	Notes		Schedules	12.31.16		12.31.15
Administrative Expenses			H
Other Operating Expenses					45		35
Other Expenses					3,996		3,843
Expenses Corresponding to the Issuance of the Global Program of Notes					—		960
Financial Expenses – Interest on Financial Debt					23,196		7,263
Total					27,237		12,101

GALICIA WARRANTS S.A.

Assets	Notes	Schedules	12.31.16		12.31.15
Other Receivables – Others	3 and 9			8,750		—
Total				8,750		—

NOTE 12. RESTRICTIONS IMPOSED ON THE DISTRIBUTION OF PROFITS

Pursuant to Section 70 of the Argentine General Corporations Law, the Corporate Bylaws and Resolution No. 368/01 of the C.N.V., 5% of the net income for the year should be transferred to the Legal Reserve until 20% of the capital stock is reached.

NOTE 13. INCOME TAX

The following tables show the changes and breakdown of deferred tax assets and liabilities:

Assets	Tax Loss Carry- forwards			Other Receivables			Allowances		Other Liabilities			Total
Balances as of 12.31.14		89,825			3,081			1,182		148			94,236
Charge to Income		25,040			1,971			564		—			27,575
Expiration of Tax Loss Carry-forwards		(6,662	)		—			—		—			(6,662	)
Others		(83	)		—			—		16			(67	)
Balances as of 12.31.15		108,120			5,052			1,746		164			115,082
Charge to Income		51,001			(5,052	)		132		(1,116	)		44,965
Expiration of Tax Loss Carry-forwards (Schedule E)		(9,822	)		—			—		—			(9,822	)
Others (Schedule E)		(1,228	)		—			700		952			424
Balances as of 12.31.16		148,071			—			2,578		—			150,649

69

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

Liabilities	Fixed Assets			Investments		Others			Total
Balances as of 12.31.14		22			7		57			86
Charge to Income		12			184		28			224
Others		(18	)		—		—			(18	)
Balances as of 12.31.15		16			191		85			292
Charge to Income		8			260		—			268
Others (Schedule E)		(24	)		—		(58	)		(82	)
Balances as of 12.31.16		—			451		27			478

Net deferred tax assets as of December 31, 2016 and December 31, 2015 amount to $150,171 and $114,790, respectively.

A provision for the deferred tax asset has been fully recorded, since it is assumed that the recovery thereof is not likely at the issuance date of these financial statements. See Schedule E.

Tax loss carry-forwards recorded by the Company, pending being used, amount to approximately $423,061, pursuant to the following breakdown:

Year of Generation	Amount		Year Due		Deferred Tax Assets
2012		37,359		2017		13,076
2013		110,306		2018		38,607
2014		61,643		2019		21,575
2015		68,036		2020		23,812
2016		145,717		2021		51,001
Balances as of 12.31.16		423,061				148,071

The classification of net deferred tax assets and liabilities recorded in accordance with their expected term of turn-around is shown in Note 9.

The following table shows the reconciliation of income tax charged to income to that which would result from applying the tax rate in force to the book income before tax:

	12.31.16			12.31.15
Book Income Before Income Tax		6,017,877			4,338,397
Income Tax Rate in Force		35	%		35	%
Result for the Fiscal Year at the Tax Rate		2,106,257			1,518,439
Permanent Differences at the Tax Rate
Increase in Income Tax
Expenses not Included in Tax Return		4,960			4,011
Other Causes		3,386			3,386
Decrease in Income Tax
Loss on Investments in Related Institutions		(2,159,300	)		(1,553,188	)
Allowance for Impairment of Value (Schedule E)		44,697			27,352
Total Income Tax Charge Recorded		—			—

The following table shows the reconciliation of tax charged to income to tax determined for the fiscal year for tax purposes:

	12.31.16			12.31.15
Total Income Tax Charge Recorded		—			—
Temporary Differences
Variation in Deferred Tax Assets		44,965			27,364
Variation in Deferred Tax Liabilities		(268	)		(12	)
Allowance for Impairment of Value (Schedule E)		(44,697	)		(27,352	)
Total Tax Determined for Tax Purposes		—			—

70

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

NOTE 14. EARNINGS PER SHARE

Below is a breakdown of the earnings per share as of December 31, 2016 and 2015:

	12.31.16		12.31.15
Income for the Fiscal Year		6,017,877		4,338,397
Outstanding Ordinary Shares Weighted Average		1,300,265		1,300,265
Diluted Ordinary Shares Weighted Average		1,300,265		1,300,265
Earnings per Ordinary Share (*)
Basic		4.6282		3.3365
Diluted		4.6282		3.3365

(*) Figures stated in Pesos.

NOTE 15. GLOBAL PROGRAM FOR THE ISSUANCE OF NOTES

On March 9, 2009, the General Ordinary Shareholders’ Meeting approved the creation of a Global Program for the Issuance of Simple Notes, not convertible into shares. Such Notes may be short-, mid- and/or long-term, secured or unsecured, peso-denominated, dollar-denominated or denominated in any other currency, subject to the compliance with all the legal or regulatory requirements applicable to the issuance in such currency or currency unit, adjustable or non-adjustable, and for a maximum outstanding face value of up to US$60,000 (sixty million U.S. Dollars) or the equivalent thereof in another currency.

The maximum term of the program shall be five years as from the date the program is authorized by the C.N.V., or for any longer term authorized pursuant to regulations in force.

Apart from that, the Notes may be issued pursuant to the laws and jurisdiction of Argentina and/or any other foreign country, in several classes and/or series during the period the Program is outstanding, with the possibility to reissue the amortized classes and/or series without exceeding the Program’s total amount, and notwithstanding the fact that the maturity dates of the different classes and/or series issued occur after the Program’s expiration date, with amortization terms not shorter than the minimum term or longer than the maximum term permitted by the regulations set forth by the C.N.V., among other terms.

By means of Resolution No. 16113 dated April 29, 2009, the C.N.V. decided to authorize, with certain conditions, the creation of the Global Program. Such conditions were released on May 8, 2009.

The Shareholders’ Meeting held on April 14, 2010 approved an increase of US$40,000 in the amount of the Global Program for the Issuance of Notes, which was later confirmed by the Company’s Shareholders’ Meeting held on August 2, 2012.

On February 27, 2013, the Company’s Board of Directors approved the proceedings to begin to increase the amount of the program. On April 25, 2013, the C.N.V. authorized an increase in the maximum amount of the issuance of Simple Notes under the Global Program, not convertible into shares, for up to a F.V. of US$100,000 or its equivalent in other currencies.

On May 8, 2014, through Resolution No. 17343, the C.N.V. decided to authorize the extension of the term of the Global Program for five (5) years.

On July 27, 2015, Grupo Financiero Galicia S.A. issued Class VII Notes for a total amount of $160,000, maturing on July 27, 2017. Such Notes shall accrue interest at an annual nominal fixed rate of 27% during the first nine months and at a variable rate of BADLAR plus a nominal annual 4.25% rate for the following 15 months. Interest shall be paid on a quarterly basis, since October 27, 2015, and amortization shall be paid in one installment upon maturity.

71

GRUPO FINANCIERO GALICIA S.A.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

As of December 31, 2016 and December 31, 2015, the following Notes issued in Pesos were outstanding:

Class	F.V. Amount		Term	Maturity Date	Interest Rate	Book Value $
						12.31.16		12.31.15
V Series II(1)	$	78,200	36 months	01.31.17	Variable Badlar + 5.25%		81,632		82,002
VI Series I (2)	$	140,155	18 months	04.23.16	Variable Badlar + 3.25%		—		147,255
VI Series II	$	109,845	36 months	10.23.17	Variable Badlar + 4.25%		115,114		115,617
VII	$	160,000	24 months	07.27.17	(3)		167,210		167,694

⁽¹⁾  See Note 16.

⁽²⁾  Settled upon maturity.

⁽³⁾  Annual nominal 27% fixed rate during the first nine months, and variable BADLAR plus a nominal annual 4.25% rate for the following 15 months.

The net proceeds arising from the placement of the Notes were used as working capital in the Argentine Republic and/or for refinancing liabilities and/or for payment of capital contributions to controlled or affiliated companies, giving priority to a better fund management and to enhance returns deriving from the issuance, in compliance with the provisions set forth in Section 36 of Notes Law.

The working capital concept may include, in the case of the Company, among others, investments in affiliated companies, financial investments such as time deposits, financial placements, mutual funds and cash and due from banks.

NOTE 16. SUBSEQUENT EVENTS

Equity Investments

On January 12, 2017, Grupo Financiero Galicia S.A. accepted an offer made by Mr. Julio Alfredo Fraomeni and Galeno Capital S.A.U. to buy the Company’s whole minority interest in Compañía Financiera Argentina S.A. The closing of the transaction is subject to the prior compliance with the conditions set out in the offer, such as the approval by the competent authorities.

We consider that this transaction will not have a significant impact on the Company’s shareholders’ equity.

Notes

Class V Series II Note was fully settled on January 31, 2017.

72

GRUPO FINANCIERO GALICIA S.A.

INFORMATIVE REVIEW AS OF DECEMBER 31, 2016

Figures Stated in Thousands of Pesos ($)

SCHEDULE A – FIXED ASSETS AND INVESTMENTS IN ASSETS OF A SIMILAR NATURE

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($)

Main Account	At Beginning of Fiscal Year		Increases		Decreases			Balance at Period- end		Depreciation(*)											Net Book Value		Net Book Value for Previous Fiscal Year
										Accumulated at Beginning of Year		Decreases			Annual Rate %		Amount for the Fiscal Year		Accumulated at Period- end
Furniture and Fixtures		2		—		(2	)		—		1		(2	)		20		1		—		—		1
Machines and Equipment		696		—		(696	)		—		531		(616	)		20		85		—		—		165
Vehicles		108		—		(108	)		—		107		(108	)		20		1		—		—		1
Hardware		167		—		(167	)		—		118		(143	)		20		25		—		—		49
Totals as of 12.31.16		973		—		(973	)		—		757		(869	)				112		—		—		—
Totals as of 12.31.15		973		—		—			973		576		—					181		757		—		216

(*) See Note 1.E.

73

GRUPO FINANCIERO GALICIA S.A.

INFORMATIVE REVIEW AS OF DECEMBER 31, 2016

Figures Stated in Thousands of Pesos ($)

SCHEDULE B – GOODWILL

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($)

Main Account	At Beginning of Fiscal Year		Increases		Decreases		Balance at Period- end		Amortization(*)										Net Book Value		Net Book Value for Previous Fiscal Year
									Accumulated at Beginning of Year		Decreases		Annual Rate %		Amount for the Fiscal Year		Accumulated at Period- end
Goodwill (Schedule C)		43,052		—		—		43,052		27,736		—		10		9,674		37,410		5,642		15,316
Totals as of 12.31.16		43,052		—		—		43,052		27,736		—				9,674		37,410		5,642		—
Totals as of 12.31.15		43,052		—		—		43,052		18,062		—				9,674		27,736		—		15,316

⁽*⁾ See Note 1.D.

74

GRUPO FINANCIERO GALICIA S.A.

INFORMATIVE REVIEW AS OF DECEMBER 31, 2016

Figures Stated in Thousands of Pesos ($)

SCHEDULE C – INVESTMENTS IN SHARES AND OTHER NEGOTIABLE SECURITIES – EQUITY INVESTMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($)

Issuance and Characteristics of the Securities	Class		Face Value		Amount		Acquisition Cost		Market Price		Equity Method		Book Value as of 12.31.16		Book Value as of 12.31.15
Non-current Investments
Corporations. Section 33 of Law No. 19550:
Companies subject to Direct and Indirect Control (*)
Banco de Galicia y Buenos Aires S.A.		Ord. “A”		0.001		101
		Ord. “B”		0.001		562,326,550
						562,326,651		3,384,304		—		19,374,942		19,374,942		14,063,703
		Goodwill (**)						43,052		—		—		5,642		15,316
Compañía Financiera Argentina S.A.(***)		Ordinary		0.001		16,726,875		25,669		—		—		—		37,499
Galicia Administradora de Fondos Comunes de Inversión S.A.		Ordinary		0.001		19,000		39,481		—		196,398		196,398		113,890
Galicia Warrants S.A.		Ordinary		0.001		875,000		11,829		—		50,794		50,794		40,619
Net Investment S.A.		Ordinary		0.001		10,500		22,341		—		226		226		184
Sudamericana Holding S.A.		Ordinary		0.001		162,447		42,918		—		885,851		885,851		558,927
Total Non-current Investments								3,569,594		—		20,508,211		20,513,853		14,830,138

(*) See Note 10.

(**) See Schedule B.

(***) See Note 16.

75

GRUPO FINANCIERO GALICIA S.A.

INFORMATIVE REVIEW AS OF DECEMBER 31, 2016

Figures Stated in Thousands of Pesos ($)

SCHEDULE C – INVESTMENTS IN SHARES AND OTHER NEGOTIABLE SECURITIES – EQUITY INVESTMENTS (CONTINUED)

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($)

Issuance and Characteristics of the Securities	Information on the Issuing Companies Latest Financial Statements (*)
	Principal Line of Business	Date		Capital Stock		Net Income		Shareholders’ Equity		Percentage of Equity Held in the Capital Stock
Non-current Investments
Corporations. Section 33 of Law No. 19550:
Companies subject to Direct and Indirect Control
Banco de Galicia y Buenos Aires S.A.	Financial Activities		12.31.16		562,327		5,093,699		18,905,871		100.00000
Compañía Financiera Argentina S.A.(***)	Financial Activities		12.31.16		557,563		342,550		1,215,500		3.00000
Galicia Administradora de Fondos S.A.	Administration of Mutual Funds		12.31.16		20		196,851		206,735		95.00000
Galicia Warrants S.A.	Issuance of Warrants		12.31.16		1,000		31,628		58,050		87.50000
Net Investment S.A.	Information Technology		12.31.16		12		48		258		87.50000
Sudamericana Holding S.A. (**)	Financial and Investment Activities		12.31.16		186		312,914		1,019,145		87.50034

(*) See Note 10.

(**) For the six-month period ended December 31, 2016.

(***) See Note 16.

76

GRUPO FINANCIERO GALICIA S.A.

INFORMATIVE REVIEW AS OF DECEMBER 31, 2016

Figures Stated in Thousands of Pesos ($)

SCHEDULE D – OTHER INVESTMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($)

Main Account and Characteristics	Notes		Schedules		12.31.16		12.31.15
Current Investments (*)
Deposits in Special Checking Accounts		11		G		5,578		12,086
Mutual Funds						18,854		9,905
Time Deposits						—		122
Government Securities - Lebacs						138,547		—
Shares(**)						36,480		—
Total						199,459		22,113

(*) Include accrued interest, if applicable.

(**) See Note 16.

77

GRUPO FINANCIERO GALICIA S.A.

INFORMATIVE REVIEW AS OF DECEMBER 31, 2016

Figures Stated in Thousands of Pesos ($)

SCHEDULE E – ALLOWANCES

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($)

Accounts	Balances at Beginning of Fiscal Year		Increases		Decreases			Balances at Fiscal Year-end			Balances at the Previous Fiscal Year-end
Deducted from Assets
Impairment of Value of Deferred Tax Asset		114,790		45,203		(9,822	)		150,171			114,790
Impairment of Value of Miscellaneous Receivables		2,492		379		—			2,871			2,492
Impairment of Value of Minimum Presumed Income Tax Receivables		4,497		—		(3	)		4,494			4,497
Total as of 12.31.16		121,779		45,582		(9,825	)		(157,536	)
Total as of 12.31.15		99,525		28,916		(6,662	)		—			121,779

78

GRUPO FINANCIERO GALICIA S.A.

INFORMATIVE REVIEW AS OF DECEMBER 31, 2016

Figures Stated in Thousands of Pesos ($)

SCHEDULE G – FOREIGN CURRENCY ASSETS AND LIABILITIES

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($) and Thousands of U.S. Dollars (US$)

Accounts	Amount and Type of Foreign Currency		Exchange Rate		Amount in Argentine Pesos ($) as of 12.31.16		Amount and Type of Foreign Currency		Amount in Argentine Pesos ($) as of 12.31.15
Assets
Current Assets
Investments
Deposits in Special Checking Accounts	US$	351.82		15.8502		5,577	US$	929.21		12,085
Other Receivables
Promissory Notes Receivable	US$	—		15.8502		—	US$	632.36		8,224
Total Current Assets						5,577				20,309
Non-current Assets
Other Receivables
Promissory Notes Receivable	US$	—		15.8502		—	US$	11,024.03		143,367
Total Non-current Assets						—				143,367
Total Assets						5,577				163,676
Liabilities
Current Liabilities
Other Liabilities
Suppliers	US$	—		15.8502		—	US$	80.77		1,050
Provision for Expenses	US$	271.78		15.8502		4,308	US$	441.70		5,744
Total Current Liabilities						4,308				6,794
Total Liabilities						4,308				6,794

79

GRUPO FINANCIERO GALICIA S.A.

INFORMATIVE REVIEW AS OF DECEMBER 31, 2016

Figures Stated in Thousands of Pesos ($)

SCHEDULE H – INFORMATION REQUIRED BY SECTION 64, SUBSECTION B) OF LAW NO. 19550

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($)

	Total as of 12.31.16		Administrative Expenses		Total as of 12.31.15
Personnel Expenses		10,826		10,826		6,376
Directors’ and Syndics’ Fees		21,035		21,035		4,652
Other Fees		10,537		10,537		6,996
Taxes		11,529		11,529		6,026
Depreciation of Fixed Assets		112		112		181
Other Operating Expenses (*)		499		499		346
Others (*)		3,314		3,314		1,700
Expenses Corresponding to the “Global Program for the Issuance of Notes”		475		475		678
Totals		58,327		58,327		26,955

(*) Balances net of eliminations corresponding to transactions conducted with companies included in Section 33 of Law No. 19550. See Note 11.

80

GRUPO FINANCIERO GALICIA S.A.

ADDITIONAL INFORMATION TO THE NOTES TO THE FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($)

1. GENERAL ISSUES REGARDING THE COMPANY’S ACTIVITIES:

a. SIGNIFICANT SPECIFIC LEGAL SYSTEMS ENTAILING CONTINGENT EXPIRATION OR RESURGENCE OF BENEFITS ENVISAGED BY THOSE REGULATIONS

None.

b. SIGNIFICANT CHANGES IN THE COMPANY ACTIVITIES OR OTHER SIMILAR CIRCUMSTANCES THAT OCCURRED DURING THE FISCAL YEARS COVERED BY THE FINANCIAL STATEMENTS WHICH MAY HAVE AN EFFECT ON THEIR COMPARISON WITH THOSE PRESENTED IN PREVIOUS FISCAL YEARS, OR THOSE THAT SHALL BE PRESENTED IN FUTURE FISCAL YEARS

None.

2. CLASSIFICATION OF RECEIVABLES AND DEBT BALANCES INTO THE FOLLOWING CATEGORIES:

a. PAST DUE

As of December 31, 2016 and December 31, 2015, the Company did not have any past due receivables or debts.

b. WITHOUT DUE DATE

Receivables: See Note 9 to the financial statements.

Debts: See Note 9 to the financial statements.

c. TO FALL DUE

Receivables: See Note 9 to the financial statements.

Debts: See Note 9 to the financial statements.

3. CLASSIFICATION OF RECEIVABLES AND DEBTS IN SUCH A MANNER THAT ALLOWS KNOWING THE FINANCIAL EFFECTS OF THEIR MAINTENANCE

Receivables: See Notes 1.A., 1.B. and 9 and Schedule G to the financial statements.

Debts: See Notes 1.A., 1.B. and 9 and Schedule G to the financial statements.

4. BREAKDOWN OF PERCENTAGE OF EQUITY INVESTMENTS – SECTION 33 OF LAW No. 19550, BOTH IN THE CAPITAL STOCK AND THE TOTAL VOTES. DEBIT AND/OR CREDIT BALANCES BY COMPANY AND CONSIDERED IN THE MANNER SET FORTH IN THE AFOREMENTIONED ITEMS 3 AND 4

See Notes 9, 10 and 11, and Schedule C to the financial statements.

5. RECEIVABLES FROM OR LOANS GRANTED TO DIRECTORS OR SYNDICS OR THEIR RELATIVES UP TO THE SECOND DEGREE INCLUSIVE

As of December 31, 2016 and December 31, 2015, there were no receivables from or loans granted to directors or syndics or their relatives up to the second degree inclusive.

6. PHYSICAL INVENTORY OF INVENTORIES: FREQUENCY AND SCOPE OF THE PHYSICAL INVENTORIES OF INVENTORIES

As of December 31, 2016 and December 31, 2015, the Company did not have any inventories.

81

GRUPO FINANCIERO GALICIA S.A.

ADDITIONAL INFORMATION TO THE NOTES TO THE FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($)

7. EQUITY INVESTMENTS IN EXCESS OF WHAT IS SET FORTH BY SECTION 31 OF LAW No. 19550 AND PLANS FOR THE REGULARIZATION OF THIS SITUATION

The Company is engaged in financial and investment activities, therefore, the restrictions of Section 31 of Law No. 19550 do not apply to its equity investments in other companies.

8. RECOVERABLE VALUES: CRITERIA FOLLOWED TO DETERMINE THE SIGNIFICANT RECOVERABLE VALUES OF INVENTORIES, FIXED ASSETS AND OTHER ASSETS, USED AS LIMIT FOR THEIR RESPECTIVE ACCOUNTING VALUATIONS

As of December 31, 2016 and December 31, 2015, the criterion followed by the Company for determining the recoverable value of its fixed assets consisted in taking their value-in-use, based on the possibility of absorbing future depreciation charges with the profits reported by it.

9. INSURANCE POLICIES FOR TANGIBLE ASSETS

As of December 31, 2016 and December 31, 2015, the breakdown of insurance policies taken out by the Company for its fixed assets was as follows:

Insured Assets	Risks Covered	Insured Amount as of 12.31.16		Book Value as of 12.31.16		Book Value as of 12.31.15
Vehicles	Theft, Robbery, Fire or Total Loss		—		—		1

10. POSITIVE AND NEGATIVE CONTINGENCIES:

a. ELEMENTS USED FOR THE CALCULATION OF PROVISIONS, THE BALANCES OF WHICH, EITHER TAKEN INTO CONSIDERATION INDIVIDUALLY OR JOINTLY, EXCEED TWO PER CENT (2%) OF SHAREHOLDERS’ EQUITY

None.

b. CONTINGENCIES WHICH, AT THE DATE OF THE FINANCIAL STATEMENTS, ARE NOT OF REMOTE OCCURRENCE, THE EFFECTS OF WHICH ON SHAREHOLDERS’ EQUITY HAVE NOT BEEN GIVEN ACCOUNTING RECOGNITION. IT SHOULD BE STATED WHETHER THE LACK OF ACCOUNTING RECOGNITION IS BASED ON THE LIKELIHOOD OF OCCURRENCE OR ON THE DIFFICULTY TO ANALYZE SUCH EFFECTS

As of December 31, 2016 and December 31, 2015, there were no contingencies which are not of remote occurrence and the effects of which on Shareholders’ Equity have not been given accounting recognition.

11. IRREVOCABLE ADVANCES TOWARDS FUTURE SHARE SUBSCRIPTIONS: STATUS OF CAPITALIZATION ARRANGEMENTS

As of December 31, 2016 and December 31, 2015, there were no irrevocable contributions towards future share subscriptions.

12. CUMULATIVE UNPAID DIVIDENDS ON PREFERRED SHARES

As of December 31, 2016 and December 31, 2015, there were no cumulative unpaid dividends on preferred shares.

82

GRUPO FINANCIERO GALICIA S.A.

ADDITIONAL INFORMATION TO THE NOTES TO THE FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($)

13. CONDITIONS, CIRCUMSTANCES OR TERMS FOR THE TERMINATION OF THE RESTRICTIONS ON THE DISTRIBUTION OF UNAPPROPRIATED RETAINED EARNINGS, INCLUDING THOSE ORIGINATED DUE TO THE USE OF THE LEGAL RESERVE FOR THE ABSORPTION OF LOSSES WHICH ARE STILL PENDING REIMBURSEMENT

See Note 12 to the financial statements.

83

GRUPO FINANCIERO GALICIA S.A.

SUPPLEMENTARY AND EXPLANATORY STATEMENT BY THE BOARD OF DIRECTORS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($)

Pursuant to the provisions of the Rules regarding Accounting Documentation of the Córdoba Stock Exchange Regulations, the Board of Directors hereby submits the following supplementary and explanatory information.

A. CURRENT ASSETS

a) Receivables:

1) See Note 9 to the financial statements.

2) See Notes 3 and 9 to the financial statements.

3) See Schedule E to the financial statements.

b) Inventories:

As of December 31, 2016 and December 31, 2015, the Company did not have any inventories.

B. NON-CURRENT ASSETS

a) Receivables: See Schedule E to the financial statements.

b) Inventories:

As of December 31, 2016 and December 31, 2015, the Company did not have any inventories.

c) Investments:

See Note 10 and Schedule C to the financial statements.

d) Fixed Assets:

1) As of December 31, 2016 and December 31, 2015, the Company did not have any fixed assets that have been technically appraised.

2) As of December 31, 2016 and December 31, 2015, the Company did not have any obsolete fixed assets which have a book value.

e) Intangible Assets:

1) See Note 1.D, and Schedules B and C to the financial statements.

2) As of December 31, 2016 and December 31, 2015, there were no deferred charges.

C. CURRENT LIABILITIES

a) Liabilities:

1) See Note 9 to the financial statements.

2) See Notes 4, 5, 6, 7 and 9 to the financial statements.

D. PROVISIONS

See Schedule E to the financial statements.

E. FOREIGN CURRENCY ASSETS AND LIABILITIES

See Note 1.B. and Schedule G to the financial statements.

84

GRUPO FINANCIERO GALICIA S.A.

SUPPLEMENTARY AND EXPLANATORY STATEMENT BY THE BOARD OF DIRECTORS

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($)

F. SHAREHOLDERS’ EQUITY

1) As of December 31, 2016 and December 31, 2015, the Shareholders’ Equity did not include the “Irrevocable Advances towards Future Share Issues” account.

2) As of December 31, 2016 and December 31, 2015, the Company had not set up any technical appraisal reserve; nor has it reversed any reserve of that kind.

G. MISCELLANEOUS

1) The Company is engaged in financial and investment activities, therefore, the restrictions of Section 31 of Law No. 19550 do not apply to its equity investments in other companies.

2) See Notes 9 and 11 to the financial statements.

3) As of December 31, 2016 and December 31, 2015, there were no receivables from or loans granted to directors or syndics or their relatives up to the second degree inclusive.

4) See Notes 9 and 11 to the financial statements.

5) As of December 31, 2016 and December 31, 2015, the breakdown of insurance policies taken out by the Company for its fixed assets was as follows:

Insured Assets	Risks Covered	Insured Amount as of 12.31.16		Book Value as of 12.31.16		Book Value as of 12.31.15
Vehicles	Theft, Robbery, Fire or Total Loss		—		—		1

6) As of December 31, 2016 and December 31, 2015, there were no contingencies highly likely to occur which have not been given accounting recognition.

7) As of December 31, 2016 and December 31, 2015, the Company did not have any receivables including implicit interest or index adjustments.

The Company has complied with the requirements of Section 65 of Law No. 19550 in these financial statements.

Buenos Aires, February 13, 2017.

85

GRUPO FINANCIERO GALICIA S.A.

INFORMATIVE REVIEW AS OF DECEMBER 31, 2016

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($)

The Company’s purpose is to strengthen its position as a leading company devoted to providing comprehensive financial services and, at the same time, to continue to strengthen Banco de Galicia y Buenos Aires S.A.’s position as one of the leading companies in Argentina. This strategy shall be carried out by supplementing the operations and business conducted by Banco de Galicia y Buenos Aires S.A. through equity investments in companies and undertakings, either existing or to be created, engaged in financial activities as they are understood in the modern economy.

The income for the fiscal year ended December 31, 2016 amounted to $6,017,877. This income has been mainly generated as a consequence of the valuation of equity investments in the subsidiaries.

The General Ordinary and Extraordinary Shareholders’ Meeting held on April 26, 2016 resolved, pursuant to the rules and regulations in force, to allocate Unappropriated Retained Earnings as of December 31, 2015, as follows:

- To Cash Dividends	$	150,000
- To Discretionary Reserve	$	4,188,397

On October 30, 2015, M.A.E., through MAE Resolution “C” 4916 dated October 28, 2015, authorized the listing and trading of the Company’s Class B Book-entry Ordinary Shares, with a face value of $1 each, each entitled to one vote per share.

On January 12, 2017, Grupo Financiero Galicia S.A. accepted an offer made by Mr. Julio Alfredo Fraomeni and Galeno Capital S.A.U. to buy the Company’s whole minority interest in Compañía Financiera Argentina S.A. The closing of the transaction is subject to the prior compliance with the conditions set out in the offer, including but not limited to the approval by the relevant authorities.

We believe that this transaction will not have a significant impact on the Company’s shareholders’ equity.

FINANCIAL STRUCTURE – MAIN ACCOUNTS OF THE CONSOLIDATED BALANCE SHEET

	12.31.16		12.31.15		12.31.14		12.31.13		12.31.12
Assets
Cash and Due from Banks		61,166,250		30,834,663		16,959,205		12,560,345		8,345,015
Government and Private Securities		13,700,800		15,525,090		10,010,150		3,987,329		3,627,144
Loans		137,451,655		98,344,731		66,608,201		55,264,926		42,592,979
Other Receivables Resulting from Financial Brokerage		18,178,275		8,060,768		6,797,613		5,696,143		4,418,571
Receivables from Financial Leases		955,346		958,092		1,047,963		1,128,067		848,264
Equity Investments		52,964		51,731		51,795		89,953		76,094
Bank Premises and Equipment, Miscellaneous Assets and Intangible Assets		6,677,044		4,925,002		3,758,652		3,061,951		2,461,266
Other Assets		4,068,290		3,047,926		2,080,899		1,367,672		1,088,938
Total Assets		242,250,624		161,748,003		107,314,478		83,156,386		63,458,271

	12.31.16		12.31.15		12.31.14		12.31.13		12.31.12
Liabilities
Deposits		151,688,147		100,039,233		64,666,037		51,395,323		39,945,180
Other Liabilities Resulting from Financial Brokerage		57,793,653		37,328,900		25,401,369		19,333,334		14,281,657
Subordinated Notes		4,065,255		3,300,516		2,065,815		1,656,297		1,188,015
Other Liabilities		6,888,682		5,487,218		4,153,807		3,210,733		2,471,421
Minority Interest		1,462,189		1,107,315		781,026		601,959		701,920
Total Liabilities		221,897,926		147,263,182		97,068,054		76,197,646		58,588,193
Shareholders’ Equity		20,352,698		14,484,821		10,246,424		6,958,740		4,870,078
Total Liabilities and Shareholders’ Equity		242,250,624		161,748,003		107,314,478		83,156,386		63,458,271

86

GRUPO FINANCIERO GALICIA S.A.

INFORMATIVE REVIEW AS OF DECEMBER 31, 2016

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($)

INCOME STATEMENT – MAIN ACCOUNTS OF THE CONSOLIDATED INCOME STATEMENT

	12.31.16		12.31.15		12.31.14		12.31.13		12.31.12
Net Financial Income		16,368,985		12,441,836		9,539,418		6,904,684		5,188,378
Net Income from Services		10,746,185		7,837,398		5,698,348		4,239,391		3,200,010
Provision for Loan Losses		3,533,313		2,214,240		2,411,250		1,776,255		1,347,302
Administrative Expenses		17,617,610		12,904,702		9,221,356		7,427,206		5,773,634
Net Income from Financial Brokerage		5,964,247		5,160,292		3,605,160		1,940,614		1,267,452
Other Miscellaneous Income		3,406,171		1,979,529		1,724,902		1,115,037		858,041
Income Tax		3,352,541		2,801,424		1,992,272		1,231,998		789,278
Net Income		6,017,877		4,338,397		3,337,790		1,823,653		1,336,215

STRUCTURE OF THE CONSOLIDATED STATEMENT OF CASH FLOWS

	12.31.16			12.31.15			12.31.14			12.31.13			12.31.12
Funds Provided by Operating Activities		25,013,196			15,624,973			7,514,940			3,485,941			1,675,711
Funds Used in Investing Activities		(1,479,131	)		(1,122,861	)		(494,939	)		(437,275	)		(308,999	)
Funds Provided by / (Used in) Financing Activities		2,663,970			(1,529,186	)		(1,304,112	)		421,886			(673,393	)
Financial Results and by Holding of Cash and Cash Equivalents		3,914,365			6,948,324			1,514,245			1,029,351			386,486
Total Funds Provided during the Fiscal Year		30,112,400			19,921,250			7,230,134			4,499,903			1,079,805

RATIOS

LIQUIDITY

Since the consolidated accounts mainly stem from Banco de Galicia y Buenos Aires S.A., the individual liquidity ratio for the Bank is detailed as follows:

	12.31.16		12.31.15		12.31.14		12.31.13		12.31.12
Liquid Assets(*) as a Percentage of Transactional Deposits		71.79		91.51		75.32		64.75		55.87
Liquid Assets(*) as a Percentage of Total Deposits		47.18		42.93		38.60		30.78		27.64

(*) Liquid Assets include cash and due from banks, Lebacs and Nobacs, net call money, short-term placements in correspondent banks, Special Guarantees Accounts at the Argentine Central Bank and repo and reverse repo transactions with the local market.

SOLVENCY

	12.31.16		12.31.15		12.31.14		12.31.13		12.31.12
Solvency		9.17		9.84		10.56		9.13		8.31

CAPITAL ASSETS

	12.31.16		12.31.15		12.31.14		12.31.13		12.31.12
Capital Assets (*)		2.78		3.08		3.55		3.79		4.00

(*) Equity investments, bank premises and equipment, miscellaneous assets and intangible assets/total assets.

PROFITABILITY

	12.31.16		12.31.15		12.31.14		12.31.13		12.31.12
Return on Average Assets(*)		3.48		3.83		3.85		2.91		2.80
Return on Average Shareholders’ Equity(*)		35.03		35.54		39.07		32.47		32.12

(*) Annualized.

87

GRUPO FINANCIERO GALICIA S.A.

INFORMATIVE REVIEW AS OF DECEMBER 31, 2016

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($)

EQUITY INVESTMENTS

BANCO DE GALICIA Y BUENOS AIRES S.A.

Founded in 1905, Banco de Galicia y Buenos Aires S.A. is one of the largest private-sector banks in the Argentine financial system, and one of the leading providers of financial services in the country. Through affiliated companies and a variety of distribution channels, the Bank offers a full spectrum of financial services to both individual and corporate customers. Banco de Galicia y Buenos Aires S.A. operates one of the most extensive and diversified distribution networks in the Argentine private financial sector offering 542 branches together with 120 points of contact gathered between regional credit-card companies and Compañía Financiera Argentina S.A.

In fiscal year 2016, Banco de Galicia y Buenos Aires S.A. recorded net income amounting to $5,093,699, $1,180,779 higher than that recorded during the previous fiscal year, representing a 30.2% increase. The increase in income, when compared to 2015, mainly resulted from the increase of $6,752,781 in net operating income (net financial income plus net income from services). This effect was mainly mitigated by higher: i) administrative expenses of $4,524,601, and ii) provisions for loan losses of $1,319,073.

Net operating income for fiscal year 2016 amounted to $27,609,653, what represents a 32.4% increase compared to the $20,856,872 recorded the previous fiscal year. This positive result was due to an increase in net income from: i) net financial income (amounting to $3,842,903, a 31.4% increase), as a result of the increase in the volumes traded during the fiscal year, mitigated by a decrease in the financial margin; ii) net income from services (amounting to $2,909,878, a 33.7% increase), the most outstanding of which are commissions related to credit and debit cards, deposit accounts and foreign currency trading. Administrative expenses totaled $16,974,221, with a 36.3% increase. Personnel expenses increased by 35.8% mainly due to the salary increase agreed upon with unions. The remaining administrative expenses totaled $7,615,519, 37.0% higher than those as of the prior fiscal year primarily due to higher tax expenses, movement of funds, electricity and communications and administrative services hired, as a result of the evolution of costs related to the different services rendered to Banco de Galicia y Buenos Aires S.A. Provisions for loan losses amounted to $3,533,313, 59.6% higher than those recorded in the previous fiscal year, mainly as a result of the evolution of the arrears related to the individuals portfolio.

Total financing to the private sector amounted to $157,394,763, showing a 36.9% growth during the last twelve months, and total deposits reached $152,047,303^(*), growing 51.6% when compared to the previous fiscal year. As of December 31, 2016, Banco de Galicia y Buenos Aires S.A.’s estimated share in loans to the private sector was 10.12%, while in deposits from the private sector was 9.92%, when compared to 9.68% and 9.40%, respectively, for the previous fiscal year.

(*) Including Banco de Galicia y Buenos Aires S.A. and Compañía Financiera Argentina S.A.’s deposits, net of eliminations between those companies. The other subsidiaries’ deposits have not been eliminated.

88

GRUPO FINANCIERO GALICIA S.A.

INFORMATIVE REVIEW AS OF DECEMBER 31, 2016

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($)

NET INVESTMENT S.A.

The Company’s equity investment in Net Investment S.A.’s capital stock is 87.5%, whereas the remaining 12.5% is owned by Banco de Galicia y Buenos Aires S.A.

Net Investment S.A. was created to carry out Internet business transactions.

During 2011, Net Investment S.A.’s shareholders decided to change the corporate purpose in order to be able to make investments in companies that conduct supplementary and/or related activities.

On April 7, 2015, the company’s Board of Directors decided to exercise a put option on 325 shares in Weemba, Inc., representing the whole interest in this company, according to the Put Option Agreement executed on May 17, 2010. The option price amounted to US$ 15.39 (United States dollars fifteen with 39/100) per share. Such transaction was agreed to on April 23, 2015.

For fiscal year 2017, Net Investment S.A.’s Board of Directors is analyzing new business opportunities and alternatives.

SUDAMERICANA HOLDING S.A.

Sudamericana Holding S.A. is a holding company providing life, retirement and property insurance, as well as insurance brokerage services. The equity investment held by Grupo Financiero Galicia S.A. in this company is 87.5%. Banco de Galicia y Buenos Aires S.A. holds the remaining 12.5%.

The insurance business undertaken by the Company is one of the most important aspects of Grupo Financiero Galicia S.A.’s general plan to strengthen its position as a leading financial services provider.

Joint production of the insurance companies controlled by Sudamericana Holding S.A. in the life, retirement and property insurance business for fiscal year 2016 amounted to $3,434,806. As of December 31, 2016, these companies had approximately 6.2 million policies/certificates insured in all their lines of business.

From a commercial standpoint, within a more favorable context, the company maintains its purpose of taking advantage of the greater demand for insurance coverage to significantly increase the companies’ sales.

As a result of this effort, the premium volume for the fourth quarter of 2016 exceeded that for the same quarter of the previous year by 14.3%.

GALICIA WARRANTS S.A.

Galicia Warrants S.A. was established in 1993 and, since then, has become a leading company. It renders services to the productive sector as an additional credit instrument, also rendering a full spectrum of services related to inventory management.

Its shareholders are Grupo Financiero Galicia S.A., which holds an 87.5% equity investment in the company, and Banco de Galicia y Buenos Aires S.A., which holds a 12.5% interest.

The company has its corporate headquarters in Buenos Aires and an office in the city of San Miguel de Tucumán, through which it carries out its transactions in the warrants market as well as other services related to its main activity, for different regional economies and geographic areas of the country.

Based on the experience and understanding of the warrant as a security instrument in the financial market, the company set as a policy to spread the quality of the service provided and improve it through the certification of ISO 9001 Standards; its main focus, during fiscal year 2016, is the improvement to Merchandise Storage and Custody, and Marketing processes.

At the end of fiscal year 2016, deposit certificates and warrants issued amounted to $604,937, regarding merchandise under custody located in different productive regions throughout the country.

As of December 31, 2016, Galicia Warrants S.A. obtained income from services amounting to $118,502.

Galicia Warrants S.A. continues to work with the purpose of rendering its customers the best quality and more reliable service that is better tailored to meet their needs.

89

GRUPO FINANCIERO GALICIA S.A.

INFORMATIVE REVIEW AS OF DECEMBER 31, 2016

FOR THE FISCAL YEARS ENDED DECEMBER 31, 2016 AND DECEMBER 31, 2015

Figures Stated in Thousands of Pesos ($)

GALICIA ADMINISTRADORA DE FONDOS S.A.

Galicia Administradora de Fondos S.A.’s shareholders are the Company, holding 95% of the shares and Galicia Valores S.A., holding the remaining 5%.

Galicia Administradora de Fondos S.A. administers the FIMA mutual funds distributed by Banco de Galicia y Buenos Aires S.A., in its capacity as custodial agent of collective investment products corresponding to mutual funds, through its broad channel network, such as branches, electronic banking, phone banking, and to different customer segments (institutional, corporate and individual customers).

At the end of fiscal year 2016, FIMA funds total equity grew significantly. As of December 31, 2016, FIMA funds equity increased by 105.4% as compared to the previous fiscal year-end, with an equity managed of $37,329,320 and an 11.5% market share.

The outlook for fiscal year 2017 is that mutual funds will continue growing, as well as the businesses related thereto, within the framework of the new Capital Markets Law.

OUTLOOK

For fiscal year 2017, the Company’s results of operations will mainly depend on the development of the Argentine economy, and, particularly, the evolution of the financial system.

Buenos Aires, February 13, 2017.

90

REPORT OF THE SUPERVISORY SYNDICS’ COMMITTEE

To the Directors and Shareholders of

Grupo Financiero Galicia S.A.

Legal Domicile: Tte. Gral. Juan D. Perón 430 – 25^th floor

Buenos Aires

C.U.I.T. 30-70496280-7

1. In our capacity as members of the Supervisory Syndics’ Committee of Grupo Financiero Galicia S.A., in accordance with the provisions of Section 294, Subsection 5 of the General Corporations Law, we have examined the Inventory and the accompanying Financial Statements of Grupo Financiero Galicia S.A. (the “Company”) as of December 31, 2016, and the related Income Statement, Statement of Changes in Shareholders’ Equity and Statement of Cash Flows and Cash Equivalents for the fiscal year then ended, as well as a summary of significant accounting policies and other explanatory information disclosed in Notes 1 to 16 and Schedules A, B, C, D, E, G and H, which supplement them. Furthermore, we have examined the consolidated financial statements of Grupo Financiero Galicia S.A. and its controlled companies for the fiscal year ended December 31, 2016, with Notes 1 to 38, which are presented as supplementary information.

The amounts and other information for fiscal year 2015 are an integral part of the financial statements examined mentioned above and, therefore, shall be considered in connection with those financial statements.

2. As mentioned in Note 1.16 to the consolidated financial statements, the Company’s Board of Directors is responsible for the preparation and fair presentation of the accompanying financial statements, in accordance with the accounting framework established by the Argentine Central Bank (B.C.R.A.) and the requirements set forth by the National Securities Commission (C.N.V.) to apply those accounting criteria. In addition, the Board of Directors is responsible for the existence of the internal control they may deem necessary to enable the preparation of financial statements free from material misstatements resulting from errors or irregularities.

3. Our responsibility is to express an opinion on the documents mentioned in paragraph 1., based on the examination conducted with the scope specified in paragraph 4.

4. Our work was conducted in accordance with standards applicable to syndics in Argentina. These standards require our examination to be performed in accordance with the professional auditing standards applicable in Argentina and include verifying the consistency of the documents reviewed with the information concerning corporate decisions, as disclosed in minutes, and the conformity of those decisions with the law and the bylaws insofar as concerns formal and documental aspects. For purposes of our professional work, we have reviewed the work performed by the external auditors of the Company, Price Waterhouse & Co. S.R.L., who issued their unqualified audit report on February 13, 2017. The above-mentioned external auditors conducted their audit in accordance with the Argentine auditing standards provided in Technical Pronouncement No. 37 of the Argentine Federation of Professional Councils in Economic Sciences (“F.A.C.P.C.E.”). Our review included verifying the work plans and the nature, scope and timing of the procedures applied and of the results of the audit performed by the above-referred professionals. An audit entails applying procedures to obtain judgmental evidence regarding the amounts and other information disclosed in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risk of material misstatements in the financial statements. When performing such risk assessment, the auditor should consider the appropriate internal control for the Company’s preparation and fair presentation of the financial statements in order to design adequate audit procedures, based on the circumstances, and not for the purpose of expressing an opinion

on the effectiveness of the Company’s internal control. An audit also includes evaluating the adequacy of the accounting policies applied, the reasonableness of the accounting estimates made by the Company’s Management and the presentation of the financial statements as a whole.

Given that it is not the responsibility of the Supervisory Syndics’ Committee to exercise any management control, our examination did not extend to the business criteria and decisions of the different areas of the Company, as these matters are the exclusive responsibility of the Company’s Board of Directors.

We also report that, in compliance with the legality control that is part of our field of competence, during this fiscal year we have applied the other procedures described in Section 294 of Law No. 19550, which we deemed necessary according to the circumstances, including, among others, the control over the creation and subsistence of the directors’ guarantee.

We believe that the work we performed provides a reasonable basis for our opinion.

5. In our opinion:

i). the accompanying financial statements fairly present, in all material respects, Grupo Financiero Galicia S.A.’s financial condition as of December 31, 2016, and the results of its operations, the changes in shareholders’ equity and the cash flows and cash equivalents for the fiscal year then ended, in accordance with the accounting standards established by the Argentine Central Bank;

ii). the accompanying consolidated financial statements fairly present, in all material respects, Grupo Financiero Galicia S.A.’s consolidated financial condition with its controlled companies as of December 31, 2016, and the consolidated results of its operations, and the consolidated cash flows and cash equivalents for the fiscal year then ended, in accordance with the accounting standards established by the Argentine Central Bank;

In compliance with the legality control that is part of our field of competence, we have no observations to make.

6. Without changing our opinion, as mentioned in Note 1.15 to the consolidated financial statements, the accompanying financial statements have been prepared in accordance with the accounting framework established by the Argentine Central Bank. Such standards differ, in certain aspects, from the professional accounting standards in force. In such note, the Company has identified and quantified the effect on the financial statements derived from the different valuation and disclosure criteria, except that the quantification cannot be made for unfeasibility reasons.

7. Furthermore, we report the following:

i) The accompanying financial statements and the corresponding inventory stem from accounting records kept, in all formal aspects, in compliance with legal regulations prevailing in Argentina.

ii) As called for by Section 21, Chapter III, Part VI, Title II of the regulations of the National Securities Commission concerning the independence of external auditors as well as the quality of the auditing policies applied by them and the Company’s accounting policies, the abovementioned external auditor’s report includes a representation indicating that the auditing standards in force have been observed, which standards include independence requirements, and contains no observations relative to the application of the rules issued by the Argentine Central Bank.

iii) We have applied the procedures on asset laundering and terrorism financing set forth in the corresponding professional accounting standards issued by the Professional Council in Economic Sciences of the Autonomous City of Buenos Aires.

iv) We have read the Informative Review, the Additional Information to the Notes to the Financial Statements required by Section 68 of the Buenos Aires Stock Exchange Regulations and Title IV, Chapter III, Article 12 of the Regulations of the National Securities Commission, and the Supplementary and Explanatory Statement by the Board of Directors, required by the Rules concerning Accounting Documentation of the Córdoba Stock Exchange Regulations, about which, insofar as concerns our field of competence, we have no significant observations to make.

Buenos Aires, February 13, 2017.

Supervisory Syndics’ Committee

INDEPENDENT AUDITOR’S REPORT

To the Shareholders, Chairman and Directors of

Grupo Financiero Galicia S.A.

Legal Domicile: Tte. Gral. Juan D. Perón 430 – 25^th floor

Buenos Aires

C.U.I.T. 30-70496280-7

Report on the Financial Statements

We have performed an audit of the accompanying financial statements of Grupo Financiero Galicia S.A. (hereinafter the “Company”), which include the Balance Sheet as of December 31, 2016, and the related Income Statement, Statement of Changes in Shareholders’ Equity and Statement of Cash Flows and Cash Equivalents for the fiscal year then ended, as well as a summary of significant accounting policies and other explanatory information disclosed in Notes and Schedules, which supplement them. Furthermore, we have examined the consolidated financial statements of Grupo Financiero Galicia S.A. and its controlled companies for the fiscal year ended December 31, 2016, which are presented as supplementary information.

The amounts and other information for fiscal year 2015 are an integral part of the financial statements audited mentioned above and, therefore, shall be considered in connection with those financial statements.

Management’s Responsibility

As mentioned in Note 1.16 to the consolidated financial statements, the Company’s Board of Directors is responsible for the preparation and fair presentation of the accompanying financial statements, in accordance with the accounting framework established by the Argentine Central Bank (B.C.R.A.) and the requirements set forth by the National Securities Commission (C.N.V.) to apply those accounting criteria. In addition, the Board of Directors is responsible for the existence of the internal control they may deem necessary to enable the preparation of financial statements free from material misstatements resulting from errors or irregularities. Our responsibility is to express an opinion on the financial statements, based on the audit conducted with the scope specified in the paragraph “Auditors’ Responsibility.”

Auditors’ Responsibility

Our responsibility is to express an opinion on the accompanying financial statements based on our audit. We have conducted our audit in accordance with the Argentine auditing standards provided in Technical Pronouncement No. 37 of the Argentine Federation of Professional Councils in Economic Sciences (F.A.C.P.C.E.). Those standards require that we comply with the ethical requirements, as well as we plan and perform the audit in order to obtain reasonable assurance about whether the financial statements are free from material misstatements.

An audit entails applying procedures to obtain judgmental evidence regarding the amounts and other information disclosed in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risk of material misstatements in the financial statements. When performing such risk assessment, the auditor should consider the appropriate internal control for the Company’s preparation and fair presentation of the financial statements in order to design adequate audit procedures, based on the circumstances, and not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the adequacy of the accounting policies applied, the reasonableness of the accounting estimates made by the Company’s Management and the presentation of the financial statements as a whole.

We consider that the judgmental evidence we have obtained provides a sufficient and adequate basis for our audit opinion.

Opinion

In our opinion:

a) the accompanying financial statements fairly present, in all material respects, Grupo Financiero Galicia S.A.’s financial condition as of December 31, 2016, and the results of its operations, the changes in shareholders’ equity and the cash flows and cash equivalents for the fiscal year then ended, in accordance with the accounting standards established by the Argentine Central Bank;

b) the accompanying consolidated financial statements fairly present, in all material respects, Grupo Financiero Galicia S.A.’s consolidated financial condition with its controlled companies as of December 31, 2016, and the consolidated results of its operations, and the consolidated cash flows and cash equivalents for the fiscal year then ended, in accordance with the accounting standards established by the Argentine Central Bank;

Emphasis Paragraph

Without changing our opinion, as mentioned in Note 1.15 to the consolidated financial statements, the accompanying financial statements have been prepared in accordance with the accounting framework established by the Argentine Central Bank. Such standards differ, in certain aspects, from the professional accounting standards in force. In such note, the Company has identified and quantified the effect on the financial statements derived from the different valuation and disclosure criteria, except that the quantification cannot be made for unfeasibility reasons.

Report on Compliance with Regulations in force

As called for by the regulations in force, we report that:

a) The financial statements of Grupo Financiero Galicia S.A. as of December 31, 2016 have been transcribed to the “Inventory and Balance Sheet” book and, insofar as concerns our field of competence, are in compliance with the provisions of the General Corporations Law, and pertinent resolutions of the Argentine Central Bank and the National Securities Commission.

b) The financial statements of Grupo Financiero Galicia S.A. stem from accounting records kept, in all formal aspects, in compliance with legal regulations.

c) We have read the Informative Review, the Additional Information to the Notes to the Financial Statements required by Section 68 of the Buenos Aires Stock Exchange Regulations and Title IV, Chapter III, Article 12 of the Regulations of the National Securities Commission, and the Supplementary and Explanatory Statement by the Board of Directors, required by the Rules concerning Accounting Documentation of the Córdoba Stock Exchange Regulations, about which, insofar as concerns our area of competence, we have no significant observations to make.

d) As of December 31, 2016, Grupo Financiero Galicia S.A.’s accrued debt with the Argentine Integrated Social Security System, which stems from the accounting records, amounted to $176,137.86, which was not yet due at that date.

e) As required by Title IV, Section I, Chapter I, Article 2 of the Regulations of the National Securities Commission, we report that:

e.1) The Company’s corporate purpose is exclusively related to financial and investment activities;

e.2) The interest in Banco de Galicia y Buenos Aires S.A. accounts for 93.36% of Grupo Financiero Galicia S.A.’s assets, being the Company’s main asset;

e.3) 88.26% of the Company’s income stems from the equity investment in the Bank mentioned in e.2); and

e.4) Grupo Financiero Galicia S.A. holds a 100% equity percentage in the capital stock, thus having a controlling interest in the Bank mentioned in e.2).

f) As required by Title II, Section VI, Chapter III, Article 21, Subarticle e) of the regulations of the National Securities Commission, we report that the total fee amount billed to the Company for professional auditing and related services in the fiscal year ended December 31, 2016, represents:

f.1) 100% of total fees billed to the Company for services in that fiscal year;

f.2) 10% of total fees billed to the Company and its controlling, controlled and related companies for auditing and related services in that fiscal year;

f.3) 9% of total fees billed to the Company and its controlling, controlled and related companies for services in that fiscal year;

g) We have applied the procedures on asset laundering and terrorism financing for Grupo Financiero Galicia S.A. set forth in the corresponding professional accounting standards issued by the Professional Council in Economic Sciences of the Autonomous City of Buenos Aires.

Buenos Aires, February 13, 2017.

PRICE WATERHOUSE & CO. S.R.L.