EX-99.1

EX-99.1 2 d536263dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

LOGO

FOR IMMEDIATE RELEASE

For more information contact:

José Luis Ronsini

CFO – Grupo Financiero Galicia S.A.

Telephone: (5411) 4343-7528

Pablo Firvida

Institutional Relations Manager

Tel.: (54-11) 6329-4881

inversores@gfgsa.com

www.gfgsa.com

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

QUARTER AND THE FISCAL YEAR THAT ENDED ON DECEMBER 31, 2017

Buenos Aires, Argentina, February 8, 2018 - Grupo Financiero Galicia S.A. (“Grupo Financiero Galicia”; Buenos Aires Stock Exchange: GGAL /NASDAQ: GGAL) today announced its financial results for the quarter and the fiscal year that ended on December 31, 2017.

HIGHLIGHTS

➣	Net income for the fiscal year that ended on December 31, 2017 amounted to Ps. 8,329 million, a 38.4% increase from the Ps.6,018 million profit recorded in the 2016 fiscal year. Net income per share amounted to Ps.5.84, compared to Ps.4.63 per share for the 2016 fiscal year.

➣

The results of the 2017 fiscal year were mainly attributable to the income derived from Grupo Financiero Galicia’s interest in Banco de Galicia y Buenos Aires S.A. (“Banco Galicia” or the “Bank”), for Ps.6,915 million (+35.7%), in Sudamericana Holding S.A., for Ps.415 million (-34.4%), and in Galicia Administradora de Fondos S.A., for Ps.428 million (+128.9%), which was also increased by financial results of Ps.689 million and partially offset by administrative expenses of Ps.92 million.

➣

Net income for the quarter that ended on December 31, 2017 (or “the quarter”) amounted to Ps.2,676 million, a 51.0% increase from the Ps.1,772 million profit recorded in the fourth quarter of the 2016 fiscal year. The profit per share for the quarter amounted to Ps.1.88, compared to Ps.1.36 per share for the same quarter of the 2016 fiscal year.

➣

The results of the quarter were mainly attributable to the income derived from Grupo Financiero Galicia’s interest in Banco Galicia, for Ps.1,754 million (+13.0%), in Sudamericana Holding S.A., for Ps.138 million (+40.8%), and in Galicia Administradora de Fondos S.A., for Ps.132 million (+100.0%), which was also increased by financial results for Ps.700 million and partially offset by administrative expenses for Ps.16 million and by the income tax for Ps.16.

➣	As of December 31, 2017, Grupo Financiero Galicia and its subsidiaries had a staff of 11,649 employees, a network of 657 branches and other points of contact with clients, and managed 4.6 million deposit accounts and 13.5 million credit cards.

CONFERENCE CALL

On Friday, February 9, 2018, at 11:00 A.M. Eastern Standard Time (1:00 P.M. Buenos Aires Time), Grupo Financiero Galicia will host a conference call to review these results. The call-in number is: +1 323-794-2093 - Conference ID: 7506959.


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GRUPO FINANCIERO GALICIA S.A.

RESULTS FOR THE FISCAL YEAR THAT ENDED ON DECEMBER 31, 2017


	In millions of pesos, except percentages
Table I Result by Business	FY2017		FY2016		*Variation (%)^()**
Income from Equity Investments in:
Banco de Galicia y Buenos Aires S.A.		6,915		5,094		35.7
Sudamericana Holding S.A.		415		633		(34.4)
Galicia Administradora de Fondos S.A.		428		187		128.9
Other companies ⁽¹⁾		28		38		(26.3)
Deferred tax adjustment ⁽²⁾		(41)		217		(118.9)
Administrative Expenses		(92)		(62)		48.4
Financial Results		689		(88)		883.0
Other income and expenses		3		(1)		400.0
Income Tax		(16)		-		-
Net Income		8,329		6,018		38.4

(*) Calculated using figures in millions, with decimals.

(1) Includes the results from our interests in Compañía Financiera Argentina S.A. (3%), Galicia Warrants S.A. (87.5%) and Net Investment S.A. (in liquidation) (87.5%), and beginning in May 2017 in Galicia Valores S.A. (1%).

(2) Income tax charge determined by Banco Galicia’s subsidiaries in accordance with the deferred tax method.

Net income for the fiscal year that ended on December 31, 2017 amounted to Ps.8,329 million, 38.4% higher than the profit recorded for the 2016 fiscal year.

This result was mainly due to profits from Grupo Financiero Galicia’s interest in Banco Galicia, for Ps.6,915 million, in Sudamericana Holding, for Ps.415 million, and in Galicia Administradora de Fondos, for Ps.428 million, and from financial results for Ps.689 million.

RESULTS FOR THE QUARTER


	In millions of pesos, except percentages
Table II			FY2017		FY2016		*Variation (%)^()**
Net Income by Business	4^th Q		3^rd Q		4^th Q		4Q17 vs 3Q17		4Q17 vs 4Q16
Income from Equity Investments in:
Banco de Galicia y Buenos Aires S.A.		1,754		2,017		1,552		(13.0)		13.0
Sudamericana Holding S.A.		138		83		98		66.3		40.8
Galicia Administradora de Fondos S.A.		132		113		66		16.8		100.0
Other companies ⁽¹⁾		4		19		9		(78.9)		(55.6)
Deferred tax adjustment ⁽²⁾		(29)		(5)		70		480.0		(141.4)
Administrative Expenses		(16)		(19)		(13)		(15.8)		23.1
Financial Results		700		10		(13)		6.900.0		-
Other income and expenses		9		(1)		3		-		200.0
Income Tax		(16)		-		-		-		-
Net Income		2,676		2,217		1,772		20.7		51.0

(*) Calculated using values in millions with decimals.

(1) Includes results from our interests in Compañía Financiera Argentina S.A. (3%), Galicia Warrants S.A. (87.5%) and Net Investment S.A. (in liquidation) (87.5%), and beginning on May 2017 in Galicia Valores S.A. (1%).

(2) Income tax charge determined by Banco Galicia’s subsidiaries in accordance with the deferred tax method.


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	In pesos, except stated otherwise and percentages
Table III	FY2017		FY2016		Twelve Months Ended
Principal Indicators	4^th Q		4^th Q		12/31/17		12/31/16
Earnings per Share
Average Shares Outstanding (in thousands)		1,426,765		1,300,265		1,426,765		1,300,265
Earnings per Share ⁽¹⁾⁽²⁾		1.88		1.36		5.84		4.63
Book Value per Share⁽¹⁾		27.54		15.65		27.54		15.65
Closing Price
Shares - Buenos Aires Stock Exchange		123.70		42.70
ADS - Nasdaq (in dollars)		65.85		26.92
Price/Book Value		4.49		2.73
Average Daily Volume (amounts in thousands)
Buenos Aires Stock Exchange		644		517		593		495
Nasdaq ⁽³⁾		4,927		3,059		4,549		3,027
Profitability (%)
Return on Average Assets ⁽⁴⁾		4.01		3.59		3.52		3.48
Return on Average Shareholders’ Equity⁽⁴⁾		28.39		36.45		30.91		35.03

(1) 10 ordinary shares = 1 ADS.

(2) Earnings for the period divided by the shares outstanding at the end of the period.

(3) Expressed in equivalent shares.

(4) Annualized.

In the fourth quarter of the 2017 fiscal year, Grupo Financiero Galicia recorded a Ps.2,676 million profit, which represented a 4.01% annualized return on average assets and a 28.39% return on average shareholder’s equity.

This result was mainly due to profits from its interest in Banco Galicia, for Ps.1,754 million, which represented 65.5% of Grupo Financiero Galicia’s net income.


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Grupo Financiero Galicia S.A. – Selected Financial Information – Consolidated Data							In millions of pesos
							FY2017		FY2016
	4^th Q		3^rd Q		2^ndQ		1^st Q		4^th Q
*Consolidated Balance Sheet*
Cash and due from Banks		56,659		36,152		33,334		50,221		61,166
Government and Corporate Securities		38,771		32,221		29,717		25,590		13,701
Net Loans		197,335		173,744		159,873		146,443		137,452
Other Receivables Resulting from Financial Brokerage		33,359		18,412		17,486		20,773		18,178
Equity Investments in other Companies		29		28		45		54		53
Bank Premises and Equipment, Miscellaneous and Intangible Assets		8,670		7,866		7,485		7,098		6,678
Other Assets		6,190		5,979		5,233		5,849		5,023
Total Assets		341,013		274,402		253,173		256,028		242,251
Deposits		203,451		164,415		158,152		158,652		151,688
Other Liabilities Resulting from Financial Brokerage		81,343		59,226		57,654		62,480		57,794
Subordinated Notes		4,828		4,360		4,261		3,865		4,065
Other Liabilities		10,156		9,440		7,972		7,520		6,889
Minority Interest		1,935		1,766		1,585		1,558		1,462
Total Liabilities		301,713		239,207		229,624		234,075		221,898
Shareholders’ Equity		39,300		35,195		23,549		21,953		20,353

*Consolidated Income Statement*
Financial Income		13,218		11,289		10,725		9,988		9,502
Financial Expenses		(5,652)		(4,799)		(4,777)		(5,117)		(4,515)
Gross Brokerage Margin		7,566		6,490		5,948		4,871		4,987
Provisions for Loan Losses		(1,468)		(1,131)		(1,449)		(1,157)		(1,311)
Income from Services, Net		3,876		3,544		3,594		3,461		3,169
Income from Insurance Activities		606		471		515		525		615
Administrative Expenses		(6,439)		(5,686)		(5,735)		(5,131)		(5,054)
Minority Interest		(169)		(181)		(95)		(181)		(133)
Income from Equity Investments		10		42		163		6		2
Net Other Income		142		110		(12)		178		474
Income Tax		(1,448)		(1,442)		(1,094)		(971)		(977)
Net Income		2,676		2,217		1,835		1,601		1,772


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Grupo Financiero Galicia S.A. – Additional Information
							FY2017		FY2016
	4^th Q		3^rd Q		2^ndQ		1^st Q		4^th Q
Physical Data (Number of)
Employees		11,649		11,767		11,771		11,828		11,956
Banco Galicia		6,214		6,160		6,023		5,939		5,799
Regional Credit-Card Companies		3,896		4,073		4,211		4,316		4,571
Compañía Financiera Argentina		1,117		1,111		1,107		1,153		1,164
Sudamericana Holding		375		378		383		375		374
Galicia Administradora de Fondos		19		16		18		16		16
Other companies		28		29		29		29		32
Branches		574		555		550		549		542
Bank Branches		306		285		279		279		279
Regional Credit-Card Companies		205		207		208		207		206
Compañía Financiera Argentina		63		63		63		63		57
Other Points of Sale		83		82		85		85		120
Regional Credit-Card Companies		52		51		54		54		83
Compañía Financiera Argentina		31		31		31		31		37
Deposit Accounts (in thousands)		4,560		4,421		4,284		4,149		4,018
Credit Cards (in thousands)		13,455		13,534		13,564		13,703		14,310
Banco Galicia		4,086		3,982		3,889		3,797		3,675
Regional Credit-Card Companies		9,148		9,336		9,483		9,729		10,459
Compañía Financiera Argentina		221		216		192		177		176
Inflation and Exchange Rates
Retail Price Index (%)		6.14		5.33		5.39		6.26		5.26
Wholesale Price Index (I.P.I.M.) (%)		4.67		5.59		3.33		4.15		2.52
C.E.R. Coefficient (%)		5.00		4.29		7.02		4.64		4.49
Exchange Rate (Pesos per U$S) ⁽¹⁾		18.7742		17.3183		16.5985		15.3818		15.8502
Rates
Badlar (quarterly averages)⁽²⁾		22.48		20.77		19.58		19.76		21.07
Credit Line for Investment Projects (established by regulations) ⁽³⁾		17.00		17.00		17.00		17.00		17.00

(1) Reference foreign currency exchange rate in accordance to Communiqué “A” 3500 from the Argentine Central Bank, as of the last working day of the quarter.

(2) Private banks’ 30-day time deposits rate for amounts over Ps.1 million.

(3) From October 1 until October 31, 2016, the rate was 22%.


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BANCO DE GALICIA Y BUENOS AIRES S.A.

HIGHLIGHTS

➣	Net income for the fourth quarter amounted to Ps.1,754 million, accumulating a Ps.6,915 million profit for the 2017 fiscal year, compared to a Ps.5,094 million profit for the 2016 fiscal year.

➣

The growth in results for the 2017 fiscal year when compared to the 2016 fiscal year was mainly due to the 39.7% growth in operating income⁽¹⁾ as a consequence of the higher volume of intermediation with the private sector, partially offset by 47.3% higher provisions for loan losses and 30.5% higher administrative expenses due to the higher level of activity and to the evolution of operating costs.

➣

The credit exposure to the private sector reached Ps.224,249 million, up 42.5% during the last twelve months, and deposits reached Ps.203,578 million, up 33.9% during the same period. As of December 31, 2017, the Bank’s estimated market share of loans to the private sector was 10.11% while its estimated market share of deposits from the private sector was 10.29%.

➣

The non-accrual loan portfolio represented 3.36% of total loans to the private sector, recording an increase of 5 basis points (“bp”) from the 3.31% recorded at the end of the same quarter of the 2016 fiscal year, while its coverage with allowances for loan losses reached 97.34%, 2.72 percentage points (“pp”) lower than a year before. Accounting for the sale of Compañía Financiera Argentina S.A., the coverage of non-accrual loans with allowances reached 103.84%.

➣	In the framework of the Credit Line for Production Financing and Financial Inclusion, as of December 31, 2017, the Bank granted the mandatory amount established by regulations in force. As of the end of the quarter, the outstanding amount of those loans reached Ps.8,308 million.

➣

As of the end of the quarter, shareholders’ equity amounted to Ps.35,821 million, and the computable capital was Ps.29,530 million, representing a Ps.6,920 million (or 30.6%) excess over the capital requirement, and reaching a regulatory capital ratio of 10.69%. According to regulations in force, capital contributions made in kind can be computed only after being approved by the Argentine Central Bank, approval that was granted in January 2018. If this capital contribution had been taken into account as of the end of the 2017 fiscal year, the regulatory capital ratio would have reached 14.32%.

INFORMATION DISCLOSURE

The data shown in the tables below and the consolidated financial statements correspond to Banco Galicia, consolidated with the subsidiaries under its direct or indirect control, except where otherwise noted.

The Bank’s consolidated financial statements and the figures included in the different tables of this report correspond to Banco Galicia, Tarjetas Regionales S.A. and its subsidiaries,⁽²⁾ Tarjetas del Mar S.A.,⁽³⁾ Galicia Valores S.A., Compañía Financiera Argentina S.A.⁽⁴⁾ and Cobranzas y Servicios S.A.⁽⁴⁾

⁽¹⁾ Net financial income plus net income from services.

⁽²⁾ Since January 1, 2018, Tarjetas Regionales S.A. and its subsidiaries will be consolidated with Grupo Financiero Galicia. See Recent Developments.

⁽³⁾ On March 31, 2017, Tarjetas del Mar S.A. was no longer consolidated with Banco Galicia, due to its sale.

⁽⁴⁾ On February 2, the sale of Compañía Financiera Argentina S.A. and Cobranzas y Servicios S.A. was completed.


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RESULTS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2017


	In millions of pesos, except percentages
Table IV Evolution of Consolidated Results	FY2017		FY2016		Variation (%)
Net Financial Income		23,762		16,066		47.9
Net Income from Services		14,815		11,543		28.3
Provisions for Loan Losses		(5,205)		(3,533)		47.3
Administrative Expenses		(22,149)		(16,974)		30.5
Operating Income		11,223		7,102		58.0
Net Other Income / (Loss) ^(*)		131		1,113		(88.2)
Income Tax		(4,439)		(3,121)		42.2
Net Income		6,915		5,094		35.7

(*) Includes income from equity investments and minority interest results.

Net income for the 2017 fiscal year amounted to Ps.6,915 million, 35.7% higher than the Ps. 5,094 million profit recorded for the 2016 fiscal year.

This result represented a 3.02% return on average assets and a 30.25% return on average shareholder’s equity, compared to 2.97% and 31.42%, respectively, recorded in the 2016 fiscal year.

The higher net income was mainly due to a Ps.10,968 million increase in the operating income, partially offset by increases of Ps.5,175 million in administrative expenses, Ps.1,672 in provisions for loan losses and Ps.1,318 million in income tax.

The operating income for the 2017 fiscal year totaled Ps.38,577 million, up 39.7% from the Ps.27,609 million recorded in the prior year. This positive development was due to both a Ps.7,696 million (47.9%) higher net financial income and a Ps.3,272 million (28.3%) higher net income from services.

The improvement in the net financial income was due to the increase in the volume of activity with the private sector and a higher financial margin in the fiscal year.

Net income from services amounted to Ps.14,815 million, up 28.3% from the prior fiscal year as a consequence of higher fees, mainly in those related to regional credit cards (26.8%), deposit accounts (41.4%) and credit (82.9%).

Provisions for loan losses amounted to Ps.5,205 million, Ps.1,672 million or 47.3% higher than those recorded in the 2016 fiscal year, due to the evolution of credits in arrears of the consumer portfolio and to higher regulatory provisions on the normal portfolio as a consequence of the increase in the credit portfolio.

Administrative expenses totaled Ps.22,149 million, 30.5% higher than those recorded in the previous fiscal year. Personnel expenses amounted to Ps.12,077 million, growing 29.0%, mainly as a consequence of the salary increase agreement with the unions, a provision related to certain compensations and to non-recurring human resources expenses. The remaining administrative expenses increased to Ps.10,072 million, Ps.2,457 million (32.3%) higher than those recorded in the 2016 fiscal year, as a consequence of the increase in expenses related to services provided to the Bank.

The income tax charge was Ps.4,439 million, Ps.1,318 million higher than in the 2016 fiscal year.


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RESULTS FOR THE QUARTER


	In millions of pesos, except percentages
Table V Evolution of Consolidated Results			FY2017		FY2016		Variation (%)
Table V Evolution of Consolidated Results	4^th Q		3^rd Q		4^th Q		4Q17 vs 3Q17		4Q17 vs 4Q16
Net Financial Income		6,737		6,365		4,897		5.8		37.6
Net Income from Services		3,942		3,592		3,413		9.7		15.5
Provisions for Loan Losses		(1,468)		(1,131)		(1,311)		29.8		12.0
Administrative Expenses		(6,197)		(5,487)		(4,860)		12.9		27.5
Operating Income		3,014		3,339		2,139		(9.7)		40.9
Net Other Income / (Loss)^(*)		(23)		(20)		375		15.0		(106.1)
Income Tax		(1,237)		(1,302)		(962)		(5.0)		28.6
Net Income		1,754		2,017		1,552		(13.0)		13.0

(*) Includes income from equity investments and minority interest results.


	Percentages
Table VI	FY2017		FY2016		Twelve Months Ended
Profitability and Efficiency	4^th Q		4^th Q		12/31/17		12/31/16
Return on Average Assets ^(*)		2.83		3.17		3.02		2.97
Return on Average Shareholders’ Equity ^(*)		25.98		34.22		30.25		31.42
Financial Margin ^(*) (1)		13.05		13.23		12.97		11.95
Net Income from Services as a % of Operating Income ⁽²⁾		36.91		41.07		38.40		41.81
Net Income from Services as a % of Administrative Expenses		63.61		70.23		66.89		68.00
Administrative Expenses as a % of Operating Income⁽²⁾		58.03		58.48		57.42		61.48

(*) Annualized.

(1) Financial Margin: Financial Income minus Financial Expenses, divided by Average Interest-earning Assets.

(2) Operating Income: Net Financial Income plus Net Income from Services.

In the fourth quarter of the 2017 fiscal year, the Bank recorded a Ps.1,754 million profit, Ps.202 million (13.0%) higher than the Ps.1,552 million profit recorded for the same quarter of the previous year.

The variation in net income was a consequence of the Ps.2,369 million increase in operating income, which was mainly offset by increases of Ps.1,337 million in administrative expenses, Ps.157 million in provisions for loan losses and Ps.275 million in income tax.

The operating income for the fourth quarter of the 2017 fiscal year totaled Ps.10,679 million, up 28.5% from the Ps.8,310 million recorded in the same quarter of the prior year. This positive development was due to both a higher net financial income (up Ps.1,840 million or 37.6%) and a higher net income from services (up Ps.529 million or 15.5%).

The net financial income for the quarter included a Ps.443 million gain from foreign-currency quotation differences, compared to a Ps.295 million profit in the fourth quarter of the previous fiscal year.

The quarter’s net financial income before foreign-currency quotation differences amounted to Ps.6,294 million, which represented a Ps.1,692 million (36.8%) increase as compared to the Ps.4,602 million of income recorded in the same quarter of the 2016 fiscal year, as a consequence of the increase in the portfolio of loans to the private sector together with a higher spread.


				9


	Average balances in millions of pesos. Yields and rates in annualized nominal %
Table VII Average Balances, *Yield and Rates^()**															FY2017				FY2016
	4^th Q				3^rd Q				2^ndQ				1^st Q				4^th Q
	Av. B.		Int.		Av. B.		Int.		Av. B.		Int.		Av. B.		Int.		Av. B.		Int.
Interest-Earning Assets		206,440		22.35		190,544		21.78		174,010		22.85		162,016		22.86		148,022		24.04
Government Securities		20,329		21.67		20,297		23.08		19,417		22.33		16,386		20.14		18,164		20.52
Loans		181,391		22.32		165,388		21.52		150,387		22.85		139,593		23.08		127,732		24.48
Financial Trusts Securities		146		21.52		260		13.28		368		18.29		452		23.88		532		22.82
Other Interest-Earning Assets		4,574		26.37		4,599		25.87		3,838		25.93		5,585		25.14		1,594		29.35
Interest-Bearing Liabilities		159,611		11.51		150,042		10.70		137,869		10.96		128,575		12.03		109,386		13.58
Current Accounts		3,205		0.01		5,257		0.01		1,756		0.10		1,244		-		-		-
Saving Accounts		65,494		0.10		61,630		0.08		51,760		0.08		42,086		0.10		34,496		0.09
Time Deposits		61,674		20.12		56,403		19.23		58,521		17.66		59,341		18.38		52,338		20.68
Debt Securities		19,674		22.89		19,617		21.00		19,283		19.38		17,131		16.42		16,761		16.87
Other Interest-Bearing Liabilities		9,564		14.53		7,135		14.46		6,549		15.22		8,773		19.50		5,791		20.35

(*) Does not include foreign-currency quotation differences. Annual nominal interest rates were calculated using a 360-day denominator.

The average interest-earning assets grew Ps.58,418 million (39.5%) as compared to the fourth quarter of the previous fiscal year, primarily as a consequence of the Ps.53,659 million increase in the average portfolio of loans to the private sector (42.0%). Interest-bearing liabilities increased Ps.50,225 million (45.9%) during the same period, primarily due to a Ps.30,998 million increase in the average balances of saving deposits (89.9%), which was mainly due to the Tax Amnesty Law.

The average yield on interest-earning assets for the fourth quarter of the 2017 fiscal year was 22.35%, representing a 169 bp decrease compared to the same quarter of the prior year, mainly due to decreases of 216 bp in the interest rate on loans partially offset by a 115 bp increase in the interest rate on government securities. Likewise, the average cost of interest-bearing liabilities was 11.51%, representing a 207 bp decrease compared to the fourth quarter of the prior year primarily due to a 56 bp the decrease in the average interest rate on time deposits.


	In millions of pesos
Table VIII							FY2017		FY2016
Income from Services, Net	4^th Q		3^rd Q		2^ndQ		1^st Q		4^th Q
National Cards		1,410		1,279		1,197		1,370		1,337
Regional Credit Cards		2,188		1,910		1,958		1,808		1,838
CFA		121		115		108		105		103
Deposit Accounts		996		932		919		804		706
Insurance		128		133		141		155		153
Financial Fees		53		51		45		39		37
Credit-Related Fees		174		190		199		121		145
Foreign Trade		140		130		108		106		92
Collections		138		129		123		113		101
Utility-Bills Collection Services		135		120		90		82		75
Mutual Funds		39		33		30		26		22
Other		367		302		276		262		253
Total Income		5,889		5,324		5,194		4,991		4,862
Total Expenditures		(1,947)		(1,732)		(1,521)		(1,383)		(1,449)
Income from Services, Net		3,942		3,592		3,673		3,608		3,413


				10

Net income from services amounted to Ps.3,942 million, up 15.5% from the Ps.3,413 million recorded in the fourth quarter of the previous fiscal year. The increases in fees which stood out were those related to regional credit cards (19.0%) and deposit accounts (41.1%).

Provisions for loan losses for the fourth quarter of the 2017 fiscal year amounted to Ps.1,468 million, Ps.157 million higher than those recorded in the same quarter of the prior year, due to the evolution of credits in arrears of the consumer portfolio and to higher regulatory provisions on the portfolio in normal situation as a consequence of the increase in the volume of credit.

Administrative expenses for the quarter totaled Ps.6,197 million, up 27.5% from the same quarter of the previous year. Personnel expenses amounted to Ps.3,385 million, growing 25.7%, mainly as a consequence of salary increase agreements with the unions, a provision related to certain compensations and to non-recurring human resources expenses. The remaining administrative expenses amounted to Ps.2,812 million, which represented a Ps.644 million (29.7%) increase as compared to the Ps.2,168 million from the fourth quarter of fiscal year 2016, mainly due to increases in maintenance, security services, cash transportation, electricity and communications, and taxes, due to the increase in the level of activity and of expenses related to services provided to the Bank.

The net other loss for the period amounted to Ps.23 million, decreasing Ps.398 million as compared to the same quarter of the previous fiscal year, mainly due to the sale of a property owned by the Bank recorded in the fourth quarter of 2016.

The income tax charge was Ps.1,237 million, Ps.275 million higher than in the fourth quarter of the 2016 fiscal year.

LEVEL OF ACTIVITY


	In millions of pesos
Table IX							FY2017		FY2016
Exposure to the Private Sector	4^th Q		3^rd Q		2^ndQ		1^st Q		4^th Q
Loans		204,000		179,715		165,886		151,604		142,158
Financial Leases		1,700		1,467		1,230		987		972
Corporate Securities		1,088		1,305		757		658		1,220
Other Financing (*)		17,461		16,093		14,261		12,489		13,045
Total Credit		224,249		198,580		182,134		165,738		157,395

(*) Includes certain accounts under the balance sheet heading Other Receivables from Financial Brokerage, Guarantees Granted and Unused Balances of Loans Granted.

As of December 31, 2017, the Bank’s total exposure to the private sector reached Ps.224,249 million, representing an increase of 42.5% from a year before and of 12.9% during the quarter.

Total loans include Ps.34,691 million corresponding to the regional credit card companies, which registered a 20.0% increase during the last twelve months and a 12.5% increase during the quarter.^(*) They also include Ps.7,649 million from CFA, which increased 44.8% during year and 9.5% during the quarter.

^(*) For comparative purposes loans granted by Tarjetas del Mar S.A. were not considered.


				11


	Percentages
Table X							FY2017		FY2016
*Market Share ()**	4^th Q		3^rd Q		2^ndQ		1^st Q		4^th Q
Total Loans		9.93		9.91		10.15		10.17		9.79
Loans to the Private Sector		10.11		9.80		10.39		10.32		10.12

(*) Banco Galicia and CFA, within the Argentine financial system, according to the daily information on loans published by the Argentine Central Bank. Loans include only principal. The regional credit-card companies’ data is not included.

The Bank’s market share of loans to the private sector as of December 31, 2017, without considering those granted by the regional credit card companies, was 10.11%, compared to a 9.80% from September 30, 2017, and to 10.12% from December 31, 2016.


	In millions of pesos
Table XI							FY2017		FY2016
Loans by Type of Borrower	4^th Q		3^rd Q		2^ndQ		1^st Q		4^th Q
Large Corporations		39,232		31,470		32,456		24,641		22,434
SMEs		50,199		42,308		39,140		37,128		34,411
Individuals		110,308		96,662		90,247		84,773		81,978
Financial Sector		4,261		9,275		4,043		5,062		3,335
Total Loans		204,000		179,715		165,886		151,604		142,158
Allowances		6,670		5,982		5,962		5,166		4,707
Total Loans, Net		197,330		173,733		159,924		146,438		137,451


	In millions of pesos
Table XII							FY2017		FY2016
Loans by Sector of Activity	4^th Q		3^rd Q		2^ndQ		1^st Q		4^th Q
Financial Sector		4,261		9,275		4,043		5,062		3,335
Services		14,259		10,559		10,416		7,884		8,593
Agriculture and Livestock		18,612		15,255		14,442		13,536		11,921
Consumer		110,373		96,696		90,291		84,557		82,730
Retail and Wholesale Trade		19,951		17,078		16,265		13,437		13,140
Construction		2,436		2,041		1,878		1,375		1,177
Manufacturing		30,263		24,709		24,098		22,678		19,452
Other		3,845		4,102		4,453		3,075		1,810
Total Loans		204,000		179,715		165,886		151,604		142,158
Allowances		6,670		5,982		5,962		5,166		4,707
Total Loans, Net		197,330		173,733		159,924		146,438		137,451

During the year, loans to the private sector registered growth mainly in those granted to large corporations (74.9%), to SMEs (45.9%) and to individuals (34.6%). By sector of activity, higher growth was recorded in the consumer sector (33.4%), the manufacturing sector (55.6%), agricultural and livestock sector (56.1%) and the retail and wholesale trade sector (51.8%).


				12

In millions of pesos

Table XIII

FY2017

FY2016

Exposure to the Argentine Public Sector (*)

4^th Q

3^rd Q

2^ndQ

1^st Q

4^th Q

Government Securities’ Net Position

26,593

23,007

22,111

19,539

15,320

Lebac

17,284

16,538

14,539

13,174

10,241

Other

9,309

6,469

7,572

6,365

5,079

Other Receivables Resulting from Financial Brokerage

435

485

665

653

833

Trust Certificates of Participation and Securities

103

218

330

428

515

Other

332

267

335

225

318

Total Exposure

27,028

23,492

22,776

20,192

16,153

(*) Excludes deposits with the Argentine Central Bank, which constitute one of the items by which the Bank complies with the Argentine Central Bank’s minimum cash requirement.

As of December 31, 2017, the Bank’s exposure to the public sector amounted to Ps.27,028 million, representing a 67.3% increase during the last twelve months due to a higher holding of Lebac. Excluding debt securities issued by the Argentine Central Bank, said exposure reached Ps.9,744 million (2.9% of total assets), while as of December 31, 2016, it amounted to Ps.5,912 million (2.5% of total assets).

In millions of pesos

Table XIV

FY2017

FY2016

Deposits (*)

4^th Q

3^rd Q

2^ndQ

1^st Q

4^th Q

In Pesos

133,158

110,966

110,552

109,702

100,980

Current Accounts

33,203

29,239

29,327

27,461

28,136

Saving Accounts

42,223

28,758

30,514

22,791

26,639

Time Deposits

55,354

50,886

48,748

56,975

43,781

Other

2,378

2,083

1,963

2,475

2,424

In Foreign Currency

70,420

53,552

48,071

49,173

51,067

Total Deposits

203,578

164,518

158,623

158,875

152,047

(*) Includes deposits in Banco Galicia and CFA, net of eliminations between said companies. Deposits from the remaining subsidiaries were not eliminated.

As of December 31, 2017, the Bank’s deposits amounted to Ps.203,578 million, representing a 33.9% increase during the last twelve months, as a consequence of the 31.9% increase in peso-denominated deposits and of the 37.9% increase in dollar-denominated deposits, mainly due to the Tax Amnesty Law. During the quarter, deposits recorded an increase of 23.7% (with a growth of 20.0% for peso-denominated deposits and an increase of 31.5% for dollar-denominated deposits), mainly due to a higher balance of peso-denominated saving accounts, which increased Ps.13,465 million (46.8%).


	Percentages
Table XV							FY2017		FY2016
*Market Share ()**	4^th Q		3^rd Q		2^ndQ		1^st Q		4^th Q
Total Deposits		8.32		7.56		7.69		7.68		7.94
Private Sector Deposits		10.29		9.48		9.50		10.21		9.96

(*) Banco Galicia and CFA, within the Argentine financial system, according to the daily information on deposits published by the Argentine Central Bank. Deposits and Loans include only principal.

As of December 31, 2017, the Bank’s estimated market share of private sector deposits in the Argentine financial system was 10.29%, compared to 9.48% for the prior quarter and to 9.96% from a year before.


				13


	In millions of pesos
Table XVI							FY2017		FY2016
Other Financial Liabilities	4^th Q		3^rd Q		2^ndQ		1^st Q		4^th Q
Domestic Financial Institutions and Credit Entities		3,031		3,402		3,265		4,818		4,095
Foreign Financial Institutions and Credit Entities		5,031		3,593		2,729		2,195		2,213
Notes^(*)		20,711		19,678		19,327		18,025		17,339
Obligations in Connection with Spot Transactions Pending Settlement and Repurchase Agreement Transactions		21,463		8,143		9,087		13,727		8,555
Obligations in Connection with Debts with Merchants due to Credit-Card Activities		26,565		20,430		18,681		18,623		20,813
Other		9,819		9,156		8,993		9,063		9,432
Total		86,620		64,402		62,082		66,451		62,447

(*) Includes subordinated notes.

As of December 31, 2017, other financial liabilities amounted to Ps.86,620 million, Ps.24,173 million or 38.7% higher than the Ps.62,447 million recorded a year before. This growth was mainly due to the increase of: (i) obligations in connection with spot transactions pending settlement and repurchase agreement transactions, for Ps.12,908 million; (ii) financing from merchants in connection with credit card activities, for Ps.5,752 million; and (iii) of notes, for Ps.3,372, related mainly to transactions of Tarjeta Naranja and CFA, partially offset by the amortizations made during the last twelve months.

As of December 31, 2017, the Bank had 4.6 million deposit accounts, which represent an increase of approximately 542,000 accounts as compared with the same date of the previous year. Likewise, the number of credit cards reached 13.5 million, 855,000 less than those managed a year before, mainly due to the sale of Tarjetas del Mar S.A., which managed 435,000 credit cards as of the end of December 2016.

ASSET QUALITY

In millions of pesos, except percentages

Table XVII

FY2017

FY2016

Loan Portfolio Quality

4^th Q

3^rd Q

2^ndQ

1^st Q

4^th Q

Non-Accrual Loans (*)

6,852

5,870

5,961

5,160

4,704

With Preferred Guarantees

194

118

106

With Other Guarantees

207

137

106

Without Guarantees

6,451

5,615

5,749

4,968

4,520

Allowance for Loan Losses

6,670

5,982

5,962

5,166

4,707

Non-Accrual Loans to Private-Sector Loans (%)

3.36

3.27

3.59

3.40

3.31

Allowance for Loan Losses to Private-Sector Loans (%)

3.27

3.33

3.59

3.41

3.31

Allowance for Loan Losses to Non-Accrual Loans (%)

97.34

101.91

100.02

100.12

100.06

Non-Accrual Loans with Guarantees to Non-Accrual Loans (%)

5.85

4.34

3.56

3.72

3.91

(*) The non-accrual portfolio includes loans classified under the following categories of the Argentine Central Bank classification: With Problems and Medium Risk, High Risk of Insolvency and High Risk, Uncollectible and Uncollectible due to Technical Reasons.

The Bank’s non-accrual loan portfolio amounted to Ps.6,852 million as of December 31, 2017, representing 3.36% of total loans to the private-sector, increasing 5 bps from the 3.31% ratio of a year before.

The coverage of the non-accrual loan portfolio with allowances for loan losses reached 97.34% as of December 31, 2017, compared to 100.06% from a year before. However, excluding CFA, the coverage as of the end of the quarter was 103.84%.


				14

In terms of total credit (defined as loans, certain accounts included in “Other Receivables Resulting from Financial Brokerage” representing credit transactions, assets under financial leases, guarantees granted and unused balances of loans granted), the Bank’s non-accrual portfolio represented 3.08% of total credit to the private-sector, and its coverage with allowances for loan losses reached 98.05%, compared to 3.01% and 101.16% of a year before, respectively.

On an individual basis Banco Galicia’s non-accrual loan portfolio amounted to Ps.3,390 million as of December 31, 2017, increasing 81.6% during the last twelve months, representing 2.09% of total loans to the private-sector, compared to the 1.74% ratio recorded a year before, recording a 35 bp increase. The coverage with allowances for loan losses reached 106.02%, compared to 117.14% a year before.


	In millions of pesos
Table XVIII							FY2017		FY2016
Consolidated Analysis of Loan Loss Experience	4^th Q		3^rd Q		2^ndQ		1^st Q		4^th Q
Allowance for Loan Losses at the Beginning of the Quarter		5,982		5,962		5,166		4,707		4,265
Changes in the Allowance for Loan Losses
Provisions Charged to Income		1,364		1,011		1,354		1,082		1,249
Provisions Reversed		-		-		-		-		(54)
Charge Offs		(676)		(991)		(558)		(623)		(753)
Allowance for Loan Losses at Quarter End		6,670		5,982		5,962		5,166		4,707
Charge to the Income Statement
Provisions Charged to Income		(1,364)		(1,011)		(1,354)		(1,082)		(1,249)
Direct Charge Offs		(91)		(108)		(81)		(69)		(50)
Bad Debts Recovered		99		131		97		88		143
Provisions Reversed (*)		-		-		-		-		54
Net Charge to the Income Statement		(1,356)		(988)		(1,338)		(1,063)		(1,102)

(*) Recorded under “Net Other Income/(Loss).”

During the quarter, Ps.676 million were charged off against the allowance for loan losses and direct charges to the income statement for Ps.91 million were made.

In millions of pesos, except ratios

Table XIX

FY2017

FY2016

Consolidated Regulatory Capital

4^th Q

3^rd Q

2^ndQ

1^st Q

4^th Q

Minimum Capital Required (A)

22,610

20,086

17,684

16,441

15,258

Allocated to Credit Risk

17,263

15,222

13,440

12,407

11,511

Allocated to Market Risk

1,126

884

558

624

556

Allocated to Operational Risk

4,221

3,980

3,686

3,410

3,191

Computable Capital (B):

29,530

27,439

25,477

23,454

22,010

Tier I

22,582

21,074

19,384

17,932

16,471

Tier II

6,948

6,365

6,093

5,522

5,539

Excess over Required Capital (B)—(A)

6,920

7,353

7,793

7,013

6,752

Regulatory Ratio (%)

10.69

11.20

11.80

11.68

11.82

As of December 31, 2017, the Bank’s consolidated computable capital was Ps.6,920 million (30.6%) higher than the Ps.22,610 million capital requirement. As of December 31, 2016, this excess amounted to Ps.6,752 million (44.3%).

The minimum capital requirement increased Ps.7,352 million as compared to December 31, 2016, mainly as a result of the higher requirements of: (i) Ps.5,752 million due to the growth of the private-sector loan portfolio; and (ii) Ps.1,030 million on operational risk.


				15

Computable capital increased Ps.7,520 million as compared to December 31, 2016, mainly as a consequence of a higher Tier I capital, for Ps.6,111 million, due to the higher net income, partially offset by higher deductions, resulting from organization and development expenses. Tier II capital recorded a Ps.1,409 million increase, mainly due to: (i) 100% of the subordinated notes issued on July 19, 2016, for U$S 250 million which proceeds were used to cancel in advance the subordinated notes due in 2019, of which 24% was considered as computable capital; and (ii) the higher balance of the provision for loan losses on the credit portfolio in normal situation.

According to regulations in force, capital contributions made in kind can be computed only after being approved by the Argentine Central Bank, approval that was granted in January 2018. If this capital contribution had been taken into account as of the end of fiscal year 2017, the regulatory capital ratio would have reached 14.32%.


	Percentages
Table XX							FY2017		FY2016
Liquidity (unconsolidated)	4^th Q		3^rd Q		2^ndQ		1^st Q		4^th Q
Liquid Assets (*) as a percentage of Transactional Deposits		66.52		57.27		57.89		80.03		71.79
Liquid Assets (*) as a percentage of Total Deposits		44.26		36.07		36.99		47.48		47.18

(*) Liquid assets include cash and due from banks (including deposits with the Argentine Central Bank and the special escrow accounts with the monetary authority), holdings of Lebac (Argentine Central Bank’s bills), net call money interbank loans, short-term placements with correspondent banks and reverse repurchase agreement transactions with the local market.

As of December 31, 2017, the Bank’s liquid assets represented 66.52% of the Bank’s transactional deposits and 44.26% of its total deposits, as compared to 71.79% and 47.18%, respectively, as of December 31, 2016.


				16

BANCO DE GALICIA Y BUENOS AIRES S.A.

SELECTED FINANCIAL INFORMATION - CONSOLIDATED DATA^(*)


	In millions of pesos
							FY2017		FY2016
	4^th Q		3^rd Q		2^ndQ		1^st Q		4^th Q
Cash and Due from Banks		56,651		36,144		33,318		50,205		61,132
Government and Corporate Securities		36,411		22,264		28,654		24,423		12,548
Net Loans		197,330		173,733		159,924		146,438		137,451
Other Receivables Resulting from Financial Brokerage		32,441		17,925		17,136		20,669		18,470
Equity Investments in Other Companies		180		155		198		187		181
Bank Premises and Equipment, Miscellaneous and Intangible Assets		8,563		7,749		7,363		6,976		6,571
Other Assets		4,808		4,455		3,802		4,402		3,705
Total Assets		336,384		262,425		250,395		253,300		240,058
Deposits		203,504		164,449		158,212		158,685		151,727
Other Liabilities Resulting from Financial Brokerage		81,792		60,042		57,821		62,586		58,382
Subordinated Notes		4,828		4,360		4,261		3,865		4,065
Other		8,594		7,841		6,570		6,328		5,628
Minority Interests		1,845		1,666		1,481		1,450		1,350
Total Liabilities		300,563		238,358		228,345		232,914		221,152
Shareholders’ Equity		35,821		24,067		22,050		20,386		18,906
Foreign-Currency Assets and Liabilities
Assets		88,937		66,046		59,184		63,491		66,729
Liabilities		87,120		66,661		59,505		65,978		68,544
Net Forward Purchases/(Sales) of Foreign Currency (1)		(2,541)		(2,378)		932		2,744		4,097

(*) Banco de Galicia y Buenos Aires S.A. consolidated with subsidiary companies (Section 33 - Law No. 19,550).

(1) Recorded off-balance sheet.


				17

BANCO DE GALICIA Y BUENOS AIRES S.A.:

SELECTED FINANCIAL INFORMATION - CONSOLIDATED DATA^(*)


	In millions of pesos
							FY2017		FY2016
	4^th Q		3^rd Q		2^ndQ		1^st Q		4^th Q
Financial Income		12,401		11,162		10,624		9,901		9,391
Interest on Loans to the Financial Sector		191		168		139		109		101
Interest on Overdrafts		809		654		638		655		803
Interest on Promissory Notes		1,626		1,440		1,263		1,229		1,223
Interest on Mortgage Loans		112		96		80		82		97
Interest on Pledge Loans		42		34		27		22		22
Interest on Credit-Card Loans		4,438		4,061		4,235		4,001		3,861
Interest on Financial Leases		91		80		71		68		70
Interest on Other Loans		2,537		2,264		2,073		1,863		1,629
Net Income from Government and Corporate Securities		1,347		1,374		1,293		999		1,147
Interest on Other Receivables Resulting from Financial Brokerage		19		18		13		10		13
Net Income from Secured Loans - Decree No.1387/01		-		-		-		2		-
CER Adjustment		140		59		38		10		6
Other		430		408		296		379		118
Quotation Differences on Gold and Foreign Currency		619		506		458		472		301
Financial Expenses		(5,664)		(4,797)		(4,764)		(5,101)		(4,494)
Interest on Saving Accounts Deposits		-		(1)		-		-		-
Interest on Checking Accounts Deposits		(1)		(2)		(1)		(2)		(2)
Interest on Time Deposits		(2,914)		(2,447)		(2,518)		(2,694)		(2,689)
Interest on Subordinated Obligations		(94)		(92)		(84)		(80)		(82)
Other Interest		(183)		(262)		(62)		(36)		(15)
Interest on Interbank Loans Received (Call Money Loans)		(20)		(11)		(7)		(14)		(6)
Interest on Other Financing from Financial Entities		(171)		(155)		(132)		(121)		(69)
Net Losses from Options		-		-		-		(1)		(5)
Interest on Other Liabilities Resulting from Financial Brokerage		(1,093)		(998)		(961)		(813)		(801)
Contributions to the Deposit Insurance Fund		(73)		(70)		(70)		(65)		(51)
CER Adjustment		(20)		(13)		(13)		(4)		(4)
Other		(1,095)		(746)		(916)		(1,271)		(770)
Gross Financial Margin		6,737		6,365		5,860		4,800		4,897
Provisions for Loan Losses		(1,468)		(1,131)		(1,449)		(1,157)		(1,311)
Income from Services, Net		3,942		3,592		3,673		3,608		3,413
Administrative Expenses		(6,197)		(5,487)		(5,533)		(4,932)		(4,860)
Personnel Expenses		(3,385)		(2,944)		(2,991)		(2,757)		(2,692)
Directors’ and Syndics’ Fees^(**)		4		(15)		(17)		(19)		(10)
Other Fees		(186)		(190)		(153)		(111)		(161)
Advertising and Publicity		(251)		(219)		(231)		(156)		(183)
Taxes		(605)		(567)		(549)		(490)		(454)
Depreciation of Premises and Equipment		(153)		(121)		(106)		(91)		(85)
Amortization of Organization Expenses		(164)		(161)		(163)		(164)		(181)
Other Operating Expenses		(800)		(734)		(726)		(634)		(563)
Other		(657)		(536)		(597)		(510)		(531)
Minority Interest Results		(179)		(186)		(119)		(156)		(115)
Income from Equity Investments		35		61		183		23		19
Net Other Income / (Loss)		121		105		62		181		471
Income Tax		(1,237)		(1,302)		(1,013)		(887)		(962)
Net Income / (Loss)		1,754		2,017		1,664		1,480		1,552

(*) Banco de Galicia y Buenos Aires S.A., consolidated with subsidiary companies (Section 33 – Law No. 19,550).

(**) In the fourth quarter a recovery of fees was recorded due to the merger of Tarjeta Naranja S.A. and Cards Cuyanas S.A.


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BANCO DE GALICIA Y BUENOS AIRES S.A.:

SELECTED FINANCIAL INFORMATION - CONSOLIDATED DATA^(*)


	In millions of pesos
	FY2017		FY2016
FINANCIAL INCOME		44,088		36,211
Interest on Loans to the Financial Sector		607		338
Interest on Overdrafts		2,756		3,089
Interest on Promissory Notes		5,558		5,321
Interest on Mortgage Loans		370		474
Interest on Pledge Loans		125		88
Interest on Credit-Card Loans		16,735		14,178
Interest on Financial Leases		310		290
Interest on Other Loans		8,737		5,289
Net Income from Government and Corporate Securities		5,013		5,502
Interest on Other Receivables Resulting from Financial Brokerage		60		51
Net Income from Secured Loans - Decree No.1387/01		2		-
CER Adjustment		247		6
Other		1,513		588
Quotation Differences on Gold and Foreign Currency		2,055		997
FINANCIAL EXPENSES		(20,326)		(20,145)
Interest on Checking-Accounts Deposits		(1)		-
Interest on Savings-Accounts Deposits		(6)		(5)
Interest on Time Deposits		(10,573)		(13,072)
Interest on Subordinated Obligations		(350)		(533)
Other Interest		(543)		(58)
Interest on Interbank Loans Received (Call Money Loans)		(52)		(36)
Interest on Other Financing from Financial Entities		(579)		(187)
Interest on Other Liabilities Resulting from Financial Brokerage		(1)		(29)
Net Income from Options		(3,865)		(2,956)
Contributions to the Deposit Insurance Fund		(278)		(314)
CER Adjustment		(50)		(7)
Other		(4,028)		(2,948)
GROSS FINANCIAL MARGIN		23,762		16,066
PROVISIONS FOR LOAN LOSSES		(5,205)		(3,533)
INCOME FROM SERVICES, NET		14,815		11,543
ADMINISTRATIVE EXPENSES		(22,149)		(16,974)
Personnel Expenses		(12,077)		(9,359)
Directors’ and Syndics’ Fees		(47)		(53)
Other Fees		(640)		(472)
Advertising and Publicity		(857)		(742)
Taxes		(2,211)		(1,620)
Depreciation of Premises and Equipment		(471)		(286)
Amortization of Organization Expenses		(652)		(738)
Other Operating Expenses		(2,894)		(2,066)
Other		(2,300)		(1,638)
MINORITY INTEREST RESULTS		(640)		(350)
INCOME FROM EQUITY INVESTMENTS		302		180
NET OTHER INCOME / (LOSS)		469		1,283
INCOME TAX		(4,439)		(3,121)
NET INCOME / (LOSS)		6,915		5,094

(*) Banco de Galicia y Buenos Aires S.A., consolidated with subsidiary companies (Section 33 – Law No. 19,550).


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CONSUMER FINANCE BUSINESS – ADDITIONAL INFORMATION

TARJETAS REGIONALES S.A.

The data shown in the following tables correspond to Tarjetas Regionales S.A. consolidated with its subsidiaries (Tarjeta Naranja S.A.,^(*) Tarjetas Cuyanas S.A., Procesadora Regional S.A. and Cobranzas Regionales S.A.). Figures are stated according to Argentine Central Bank accounting standards.

RESULTS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2017


	In millions of pesos, except percentages
Table XXI Evolution of Consolidated Results	FY2017		FY2016		Variation (%)
Net Financial Income		5,917		3,916		51.1
Net Income from Services		6,745		5,034		34.0
Provisions for Loan Losses		(2,018)		(1,546)		30.5
Administrative Expenses		(6,939)		(5,450)		27.3
Operating Income		3,705		1,954		89.6
Net Other Income / (Loss) ^(*)		680		568		19.7
Income Tax		(1,640)		(1,095)		49.8
Net Income		2,745		1,427		92.4

(*) Includes income from equity investments and minority interest results.

RESULTS FOR THE QUARTER


	In millions of pesos, except percentages
Table XXII			FY2017		FY2016		Variation (%)
Selected Information	4^th Q		3^rd Q		4^th Q		4Q17 vs 3Q17		4Q17 vs 4Q16
Total Assets		36,459		32,039		30,847		13.8		18.2
Cash and Due from Banks		537		416		461		29.1		16.5
Loans		32,311		28,547		26,914		13.2		20.1
Total Liabilities		28,603		24,956		25,347		14.6		12.8
Notes		9,122		9,027		7,157		1.1		27.5
Financial Entities		332		403		2,379		(17.6)		(86.0)
Merchants		16,047		12,853		13,307		24.9		20.6
Shareholders’ Equity		7,856		7,083		5,500		10.9		42.8
Net Income		773		794		456		(2.6)		69.5
Net Financial Income		1,656		1,481		1,233		11.8		34.3
Net Income from Services		1,883		1,636		1,516		15.1		24.2
Provisions for Loan Losses		(493)		(441)		(551)		11.8		(10.5)
Administrative Expenses		(1,907)		(1,682)		(1,560)		13.4		22.2
Loan Portfolio Quality								Variation (b.p.)
Non-Accrual Loans to Total Loans (%)		6.81		7.07		7.08		(26)		(27)
Allowance for Loan Losses to Total Loans (%)		6.86		7.45		6.89		(59)		(3)
Allowance for Loan Losses to Non-Accrual Loans (%)		100.80		105.37		97.41		(457)		339

^(*) Beginning on October 1, 2017, Tarjeta Naranja S.A. absorbed the assets and liabilities of Tarjetas Cuyanas S.A., due to the merger of both companies.


				20


	Percentages
Table XXIII	FY2017		FY2016		Twelve Months Ended
Profitability and Efficiency	4^th Q		4^th Q		12/31/17		12/31/16
Return on Average Assets ^(*)		9.17		6.59		8.79		5.81
Return on Average Shareholders’ Equity ^(*)		42.84		34.54		42.70		29.45
Financial Margin ^(*) (1)		20.70		17.92		19.36		16.22
Net Income from Services as a % of Operating Income ⁽²⁾		53.21		55.15		53.27		56.25
Net Income from Services as a % of Administrative Expenses		98.74		97.18		97.20		92.37
Administrative Expenses as a % of Operating Income⁽²⁾		53.89		56.75		54.80		60.89

(*) Annualized.

(1) Financial Margin: Financial Income minus Financial Expenses, divided by Average Interest-earning Assets.

(2) Operating Income: Net Financial Income plus Net Income from Services.


				21

COMPAÑÍA FINANCIERA ARGENTINA S.A.

RESULTS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2017


	In millions of pesos, except percentages
Table XXIV Evolution of Consolidated Results	FY2017		FY2016		Variation (%)
Net Financial Income		2,142		1,453		47.4
Net Income from Services		284		244		16.4
Provisions for Loan Losses		(602)		(346)		74.0
Administrative Expenses		(1,504)		(1,171)		28.4
Operating Income		320		180		77.8
Net Other Income / (Loss) ^(*)		110		293		(62.5)
Income Tax		(156)		(130)		20.0
Net Income		274		343		(20.1)

(*) Includes income from equity investments.

RESULTS FOR THE QUARTER


	In millions of pesos, except percentages
Table XXV			FY2017		FY2016		Variation (%)
Selected Information	4^th Q		3^rd Q		4^th Q		4Q17 vs 3Q17		4Q17 vs 4Q16
Total Assets		8,527		7,610		5,894		12.0		44.7
Cash and Due from Banks		328		347		395		(5.5)		(17.0)
Loans		6,952		6,377		4,916		9.0		41.4
Total Liabilities		7,287		6,422		4,678		13.5		55.8
Deposits		2,701		2,194		1,413		23.1		91.2
Notes		2,407		1,938		1,207		24.2		99.4
Financial Entities		1,357		1,140		1,251		19.0		8.5
Shareholders’ Equity		1,240		1,188		1,216		4.4		2.0
Net Income		52		91		112		(42.9)		(53.6)
Net Financial Income		561		551		447		1.8		25.5
Net Income from Services		78		71		65		9.9		20.0
Provisions for Loan Losses		(181)		(135)		(123)		34.1		47.2
Administrative Expenses		(411)		(390)		(346)		5.4		18.8
Loan Portfolio Quality								Variation (b.p.)
Non-Accrual Loans to Total Loans (%)		14.38		13.92		11.80		46		258
Allowance for Loan Losses to Total Loans (%)		9.11		8.69		6.91		42		220
Allowance for Loan Losses to Non-Accrual Loans (%)		63.36		62.45		58.59		91		477


	Percentages
Table XXVI	FY2017		FY2016		Twelve Months Ended
Profitability and Efficiency	4^th Q		4^th Q		12/31/17		12/31/16
Return on Average Assets ^(*)		2.52		8.13		3.86		7.50
Return on Average Shareholders’ Equity ^(*)		16.26		37.49		22.53		29.19
Financial Margin ^(*) (1)		29.21		36.06		32.75		34.24
Net Income from Services as a % of Operating Income ⁽²⁾		12.21		12.70		11.71		14.38
Net Income from Services as a % of Administrative Expenses		18.98		18.79		18.88		20.84
Administrative Expenses as a % of Operating Income⁽²⁾		64.32		67.58		62.00		69.00

(*) Annualized.

(1) Financial Margin: Financial Income minus Financial Expenses, divided by Average Interest-earning Assets.

(2) Operating Income: Net Financial Income plus Net Income from Services.


				22

SUDAMERICANA HOLDING S.A.

INFORMATION DISCLOSURE

The data shown in the tables of this report and the consolidated financial statements correspond to Sudamericana Holding S.A. consolidated with the subsidiaries under its direct or indirect control (Galicia Seguros S.A., Galicia Retiro Compañía de Seguros S.A. and Galicia Broker Asesores de Seguros S.A.).

RESULTS FOR THE TWELVE MONTHS THAT ENDED ON DECEMBER 31, 2017


	In millions of pesos, except percentages
Table XXVII	Twelve months ended:				Variation (%)
Selected Information	12/31/17		12/31/16		Variation (%)
Assets		2,317		2,217		4.5
Premiums Receivable		661		512		29.1
Reinsurance Recoverables		3		3		-
Liabilities		1,329		1,198		10.9
Debt with Insureds		261		214		22.0
Debt with Reinsurers		17		(1)		-
Debt with Agents and Brokers		153		147		4.1
Insurance Contract Liabilities		401		303		32.3
Shareholders’ Equity		988		1,019		(3.0)

Net Income		471		710		(33.7)
Earned Premiums		3,202		3,319		(3.5)
Incurred Claims		(380)		(461)		(17.6)
Net Investment Income		326		316		3.0
Commissions and Other		(1,175)		(786)		49.5
Operating Expenses		(1,172)		(983)		19.2
Annualized Sales		1,662		1,059		56.9

RESULTS FOR THE QUARTER THAT ENDED ON DECEMBER 31, 2017


	In millions of pesos, except percentages
Table XXVIII	Quarters ended:						Variation (%)
Selected Information	12/31/17		09/30/17		12/31/16		Quarter		Annual
Assets		2.317		2.265		2.217		2.3		4.5
Premiums Receivable		661		580		512		14.0		29.1
Reinsurance Recoverables		3		4		3		(25.0)		-
Liabilities		1.329		1.419		1.198		(6.3)		10.9
Debt with Insureds		261		248		214		5.2		22.0
Debt with Reinsurers		17		8		(1)		112.5		-
Debt with Agents and Brokers		153		137		147		11.7		4.1
Insurance Contract Liabilities		401		383		303		4.7		32.3
Shareholders’ Equity		988		846		1.019		16.8		(3.0)
Net Income		157		95		112		66.3		40.8
Earned Premiums		874		791		823		10.5		6.2
Incurred Claims		(86)		(91)		(138)		(5.5)		(37.7)
Net Investment Income		84		92		72		(8.7)		16.7
Commissions and Other		(318)		(317)		(236)		0.3		34.7
Operating Expenses		(317)		(291)		(276)		8.9		14.9
Annualized Sales		465		452		311		2.9		49.5


				23


	Percentages
Table XXIX	Quarters ended:				Twelve Months Ended:
Profitability	12/31/17		12/31/16		12/31/17		12/31/16
Return on Average Assets ^(*)		24,82		20,23		20,78		38,05
Return on Average Shareholders’ Equity ^(*)		60,24		45,31		42,97		78,70

(*) Annualized.


				24

GALICIA ADMINISTRADORA DE FONDOS S.A.

RESULTS FOR THE FISCAL YEAR THAT ENDED ON DECEMBER 31, 2017

In millions of pesos, except percentages

Table XXX

Selected Information

FY2017

FY2016

Variation (%)

Shareholders’ Equity

460

207

122.2

Net Income

450

197

128.4

Fees and Commissions

724

331

118.7

Administrative Expenses

(62)

(47)

31.9

Commercial Expenses

(44)

(20)

120.0

RESULTS FOR THE QUARTER

In millions of pesos, except percentages

Table XXXI

FY2017

FY2016

Variation (%)

Selected Information

4^th Q

3^rd Q

4^th Q

4Q17 vs

3Q17

4Q17 vs

4Q16

Shareholders’ Equity

460

321

207

43.3

122.2

Net Income

138

119

16.0

100.0

Fees and Commissions

219

186

122

17.7

79.5

Administrative Expenses

(22)

(12)

(19)

83.3

15.8

Commercial Expenses

(16)

(11)

(8)

45.5

100.0


	In millions of pesos, except percentages
Table XXXII:	Assets Under Management as of:				Variation
Mutual Funds	4^th Q17		4^th Q16		Ps.		%
Fima Premium		7,540		7,130		410		5.8
Fima Ahorro Pesos		20,918		15,955		4,963		31.1
Fima Ahorro Plus		21,143		10,195		10,948		107.4
Fima Capital Plus		384		562		(178)		(31.7)
Fima Renta en Pesos		545		239		306		128.0
Fima Renta Plus		458		247		211		85.4
Fima Abierto Pymes		238		187		51		27.3
Fima Acciones		323		118		205		173.7
Fima PB Acciones		973		305		668		219.0
Fima Mix I		6		152		(146)		(96.1)
Fima Renta Dólares I		17,114		2,237		14,877		665.0
Fima Renta Dólares II		5,354		2		5,352		267,600.0
Total Assets Under Management		74,996		37,329		37,667		100.9


				25

RECENT DEVELOPMENTS

SPLIT OF TARJETAS REGIONALES

At the Extraordinary Shareholders’ Meetings of Grupo Financiero Galicia and Banco Galicia held on December 14, 2017, the shareholders approved a corporate reorganization process consisting of the split off of the Bank’s 77% interest in Tarjetas Regionales S.A. and its incorporation into the equity of Grupo Financiero Galicia, effective January 1, 2018. On January 23, 2018, the definitive split-merger agreement was signed, and its registration in the Public Registry of Commerce is currently pending. The capital reduction of Banco Galicia resulting from the reorganization has no impact on Grupo Financiero Galicia.

ACQUISITION OF A MINORITY INTEREST IN TARJETAS REGIONALES

During August 2017, Grupo Financiero Galicia accepted irrevocable offers made by minority shareholders for the sale of a 6% interest in Targetas Regionales S.A. for US$ 49 million. The transfer was made effective on January 5, 2018.

CAPITAL CONTRIBUTION OF GRUPO FINANCIERO GALICIA

On December 27, 2017, Grupo Financiero Galicia in its capacity as sole shareholder and holder of 100% of the capital of Banco Galicia, integrated the capital contribution of Ps.10,000 million through LEBACs. The Argentine Central Bank, through its Resolution No.35 dated January 11, 2018, approved the capital contribution, allowing this contribution to be considered as computable capital.

SALE OF CFA AND COBRANZAS Y SERVICIOS

On February 2, 2018, the sale of Compañía Financiera Argentina S.A. and Cobranzas y Servicios S.A. was completed. The total amount of the transaction reached Ps.1,064 million.

IFRS REGULATIONS

Beginning with the financial statements corresponding to the first quarter of the 2017 fiscal year, the adjustments corresponding to the application of IFRS are reported as a note to the balance sheet. IFRS will be fully applied from the 2018 fiscal year. As of December 31, 2017, the adjustment to Banco Galicia’s net worth as a result of the application of these standards amounts to Ps.3,144 million, reaching an adjusted net worth of Ps.38,971 million. For Grupo Financiero Galicia, the adjustment amounts to Ps.1,964 million and the adjusted balance amounts to Ps.41,264 million. These figures are subject to change and may only be considered definitive when preparing the annual financial statements for the year in which IFRS are applied for the first time.

DISTRIBUTION NETWORK

During the quarter, the Bank increased its distribution network with the opening of 19 new branches: 3 in the City of Buenos Aires, 8 in the province of Buenos Aires, 1 in Corrientes, 1 in Neuquén, 2 in Chaco, 2 in Córdoba, 1 in Mendoza and 1 in San Juan.

This report is a summary analysis of Grupo Financiero Galicia’s financial condition and results of operations as of and for the periods indicated. For a correct interpretation, this report must be read in conjunction with Grupo Financiero Galicia’s financial statements, as well as with all other material periodically filed with the National Securities Commission (www.cnv.gob.ar), the Buenos Aires Stock Exchange (www.bolsar.com), the Cordoba Stock Exchange (www.bolsacba.com.ar) and the Nasdaq (www.nasdaq.com). In addition, the Argentine Central Bank (www.bcra.gob.ar) may publish information related to Banco Galicia as of a date subsequent to the last date for which the Bank has published information.

Readers of this report must note that this is a translation made from an original version written and expressed in Spanish. Therefore, any matters of interpretation should be referred to the original version in Spanish.


				26