Exhibit 99.1

GRUPO FINANCIERO GALICIA S.A. REPORTS FINANCIAL RESULTS FOR

THE THIRD QUARTER THAT ENDED ON SEPTEMBER 30, 2018

Buenos Aires, Argentina, November 27, 2018 – Grupo Financiero Galicia S.A. (BYMA /NASDAQ: GGAL) announced its financial results for the third quarter that ended on September 30, 2018 (the “Quarter”).

HIGHLIGHTS

➣ For the current fiscal year, the results of Grupo Financiero Galicia S.A. (“Grupo Financiero Galicia” or “GFG”) and its subsidiaries are reported in accordance with the International Financial Reporting Standards (“IFRS”) as established by the Argentine Central Bank. Therefore, the financial statements and this report are presented in accordance with such standards. For a comparative purposes, figures for 2017 are also presented in accordance with IFRS. In addition, balances of certain items from previous quarters have been reclassified.

➣ Comprehensive income for the Quarter amounted to Ps.4,131 million, a 103% increase from the Ps.2,031 million profit recorded in the third quarter of the 2017 fiscal year. Net income attributable to Grupo Financiero Galicia for the period amounted to Ps.4,212 million, a 98% increase from the Ps.2,124 million recorded in the prior fiscal year. The profit per share for the Quarter amounted to Ps.2.95, compared to Ps.1.51 per share calculated for the same quarter of the 2017 fiscal year.

➣ The results of the Quarter were mainly attributable to the income derived from GFG’s interest in Banco de Galicia y Buenos Aires S.A.U. (“Banco Galicia” or “the Bank”), for Ps.3,405 million, in Tarjetas Regionales S.A., for Ps.524 million, in Galicia Administradora de Fondos S.A., for Ps.78 million, and in Sudamericana Holding S.A., for Ps.166 million, which was also increased by a net operating income of Ps.56 million and partially offset by administrative expenses of Ps.24 million.

➣ The market share of loans to the private sector reached 10.58% and deposits from the private sector reached 10.99%, increasing 127 bp and 162 bp respectively, as compared to September 30, 2017.

Conference Call:

November 28, 2018, 11:00 A.M. Eastern Time (1:00 P.M. Buenos Aires Time)

Call-in number: +1 323-994-2093

Conference ID: 2868190

For more information contact:

José Luis Ronsini - CFO

Pablo Firvida - IRO

Tel.: (5411) 6329-4881

inversores@gfgsa.com

www.gfgsa.com

1

CONSOLIDATED INFORMATION

Consolidated Financial Statement			2018		2017		Variation (%)
In millions of pesos, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
Financial Information
Assets		517,801		422,491		271,822		23		90
Net loans and other financing		293,940		249,990		168,631		18		74
Deposits		320,052		261,096		162,182		23		97
Shareholders’ equity attributable to GFG		50,439		46,307		36,930		9		37
Shares outstanding (in thousands of shares) (1)		1,426,765		1,426,765		1,410,265		-		1
Book value per share (in pesos)		35.35		32.45		26.19		290 bp		915 bp
Net income attributable to GFG		4,212		2,782		2,124		51		98
Net income per share (in pesos)		2.95		1.95		1.51		100 bp		145 bp

(1) 10 ordinary shares = 1 ADS.

Selected Ratios			2018		2017		Variation (bp)
Percentages, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
Return (1) on average assets (2)		3.72		3.05		3.42		64		30
Return (1) on average shareholders´ equity (2)		34.63		27.78		29.53		985		510
Financial Margin (1) (3)		14.54		11.84		12.19		270		235
Efficiency ratio (4)		47.85		56.24		56.31		(839)		(846)
Total capital ratio (5)		14.30		13.77		11.20		53		310
Non-performing loans / Private-sector loans		3.07		2.95		2.77		12		30
Allowance for loan losses / Private-sector loans		3.13		3.06		3.14		7		(1)
Allowance for loan losses / Non-accrual loans		101.80		103.78		113.50		(198)		(1,170)
Cost of risk (2)		4.15		4.10		2.41		5		174

(1) Net income attributable to GFG.

(2) Annualized.

(3) Net interest income plus net fee income plus net result from financial instruments plus foreign currency quotation differences plus insurance premiums earned plus certain items included in other operating income and expenses, divided by the average balance of interest-earning assets.

(4) Personnel expenses plus administrative expenses plus depreciation and devaluations of assets, divided by net interest income plus net fee income plus net result from financial instruments plus foreign currency quotation differences plus insurance premiums earned plus certain items included in other operating income.

(5) Banco Galicia consolidated with Tarjetas Regionales S.A.

Market Indicators			2018		2017
In pesos, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
Market price										Variation (bp)
Shares – BYMA		105.65		95.05		89.20		1,060		1,645
ADS – NASDAQ (in US$)		25.43		32.98		51.54		(755)		(2,611)
Price BYMA / book value		2.99		2.93		3.41		6		(42)
Average daily volume (in thousands of shares)										Variation (%)
BYMA		1,587		1,017		502		56		216
NASDAQ (1)		14,035		8,323		4,842		69		190
Market share (%)									Variation (bp)
Banco Galicia
Loans to the private sector		10.58		10.02		9.31		56		127
Deposits from the private sector		10.99		10.44		9.37		55		162
Galicia Administradora de Fondos S.A.		10.17		11.80		14.10		(163)		(393)

(1) Expressed in equivalent shares: 10 ordinary shares = 1 ADS.

2

GRUPO FINANCIERO GALICIA

RESULTS FOR THE QUARTER

Income Statement			2018		2017		Variation (%)
In millions of pesos, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
Results from Equity Investments		4,191		2,782		2,133		51		96
Banco de Galicia y Buenos Aires S.A.U.		3,405		1,962		1,911		74		78
Tarjetas Regionales S.A. (1)		524		567		-		(8)		N/A
Galicia Administradora de Fondos S.A.		78		120		112		(35)		(30)
Sudamericana Holding S.A.		166		119		90		39		84
Other subsidiaries (2)		18		14		20		29		(10)
Net operating income		56		53		10		6		460
Administrative expenses		(24)		(48)		(19)		(50)		26
Other operating income and expenses		(1)		-		-		N/A		N/A
Income tax		(10)		(5)		-		100		N/A
Net income attributable to GFG		4,212		2,782		2,124		51		98
Other comprehensive income		(81)		16		(93)		(606)		(13)
Comprehensive income attributable to GFG		4,131		2,798		2,031		48		103

(1) 83% since January 1, 2018 (77% from the split-merger agreement with Banco Galicia and 6% from the acquisition of a minority interest).

(2) Includes the result from the interest in Galicia Warrants S.A. (87.5%) and Galicia Valores S.A. (1%).

Net income attributable to GFG for the Quarter amounted to Ps.4,212, which represented a 3.72% annualized return on average assets and a 34.63% return on average shareholder’s equity.

This result was mainly due to profits from GFG’s interest in Banco Galicia, for Ps.3,405 million, in Tarjetas Regionales S.A., for Ps.524 million, in Galicia Administradora de Fondos S.A., for Ps.78 million, and in Sudamericana Holding S.A., for Ps.166 million. In the third quarter of the 2017 fiscal year, results from equity investments in Banco Galicia included the interest in Tarjetas Regionales S.A.

3

SELECTED FINANCIAL INFORMATION - CONSOLIDATED

Balance Sheet			2018		2017		Variation (%)
In millions of pesos, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
Assets
Cash and due from banks		116,815		91,739		35,373		27		230
Debt securities		22,563		31,229		33,646		(28)		(33)
Net loans and other financing		293,940		249,990		168,631		17		74
Other financial assets		65,817		32,580		14,433		102		356
Equity investments in associates and joint businesses		-		-		192		-		(100)
Property, bank premises, equipment		10,522		10,034		9,180		5		15
Intangible assets		1,112		1,088		779		2		43
Other assets		6,788		5,587		3,912		21		74
Assets available for sale (1)		244		244		5,676		-		(96)
Total assets		517,801		422,491		271,822		23		90
Liabilities
Deposits		320,052		261,096		162,182		23		97
Financing from financial entities		26,457		22,231		6,828		19		287
Other financial liabilities		64,966		45,154		29,235		44		122
Notes		26,794		25,318		13,558		6		98
Subordinated notes		10,357		7,444		4,360		39		138
Other liabilities		17,011		13,323		16,963		28		-
Total liabilities		465,637		374,566		233,126		24		100
Shareholders’ equity attributable to third parties		1,725		1,618		1,766		7		(2)
Shareholders’ equity attributable to GFG		50,439		46,307		36,930		9		37
Shareholders’ equity		52,164		47,925		38,696		9		35

(1) Includes the interest in Compañía Financiera Argentina and in Cobranzas y Servicios until the 4Q2017, and the interest in Prisma Medios de Pago since the third quarter of 2017.

4

Income Statement			2018		2017		Variation (%)
In millions of pesos, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
Net interest income		7,745		6,742		4,839		15		60
Interest income		18,591		13,275		8,617		40		116
Interest related expenses		(10,846)		(6,533)		(3,778)		66		187
Net fee income		4,775		4,382		3,580		9		33
Fee income		5,590		5,004		4,019		12		39
Fee related expenses		(815)		(622)		(439)		31		86
Net results from financial instruments		5,192		1,775		1,501		193		246
Gold and foreign currency quotation differences		(54)		782		593		(107)		(109)
Other operating income		1,926		2,057		1,233		(6)		56
Underwriting income from insurance business		626		611		525		2		19
Loan loss provisions		(2,827)		(2,390)		(997)		18		184
Net operating income		17,383		13,959		11,274		25		54
Personnel expenses		(3,390)		(3,226)		(2,634)		5		29
Administrative expenses		(3,783)		(3,404)		(2,401)		11		58
Depreciations and devaluations of assets		(297)		(279)		(274)		6		8
Other operating expenses		(3,610)		(2,983)		(2,121)		21		70
Operating income		6,303		4,067		3,844		55		64
Results from associates and joint businesses		-		-		41		-		(100)
Income tax		(1,983)		(1,169)		(1,580)		70		26
Net income		4,320		2,898		2,305		49		87
Net income attributable to third parties		108		116		181		(7)		(40)
Net income attributable to GFG		4,212		2,782		2,124		51		98
Other comprehensive income (1)		(81)		16		(93)		(606)		(13)
Total comprehensive income		4,239		2,914		2,212		45		92
Comprehensive income attributable to third parties		107		116		181		(7)		(40)
Comprehensive income attributable to GFG		4,131		2,798		2,031		48		103

(1) Net of income tax.

5

Additional Information					2018				2017
(Number of, except otherwise noted)	3Q		2Q		1Q		4Q		3Q
Employees		10,455		10,574		10,581		10,532		10,656
Banco Galicia		6,457		6,478		6,393		6,214		6,160
Tarjetas Regionales		3,564		3,657		3,760		3,896		4,073
Galicia Administradora de Fondos		21		19		19		19		16
Sudamericana Holding		386		391		381		375		378
Other companies		27		29		28		28		29
Branches and other points of sales		556		558		564		563		543
Banco Galicia		319		309		308		306		285
Tarjetas Regionales		237		249		256		257		258
Deposit Accounts at Banco Galicia (in thousands)		4,637		4,505		4,348		4,249		4,114
Credit Cards (in thousands)		13,681		13,602		13,391		13,234		13,318
Banco Galicia		4,424		4,350		4,222		4,086		3,982
Tarjetas Regionales		9,257		9,252		9,169		9,148		9,336
Galicia Administradora de Fondos’ assets under management (millions of pesos)		58,115		72,922		91,609		67,771		74,996
Inflation, exchange rate and interest rates
Consumer price index (IPC) (%)		14.11		8.79		6.66		6.14		5.33
Wholesale price index (IPIM) (%)		27.40		16.60		11.70		4.67		5.59
Acquisition value unit (UVA)		26.73		24.31		22.61		21.15		20.16
Exchange rate (Ps./US$) (1)		40.90		28.86		20.14		18.77		17.32
Badlar (quarterly averages) (2)		37.08		27.31		22.89		22.48		20.77

(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.

6

BANCO GALICIA

HIGHLIGHTS

➣ Net income for the Quarter amounted to Ps.3,405 million, Ps.1,494 million (78%) higher than the figure accounted for in the same quarter of the 2017 fiscal year, mainly due to an increase in net operating income (73%). Excluding the results from the split-up of Tarjetas Regionales S.A. (effective since January 1, 2018), net income increased 159%.

➣ The credit exposure to the private sector reached Ps.299,399 million, up 87% from the Ps. 159,743 million recorded in the third quarter of 2017, and deposits reached Ps.320,367 million, up 97% from Ps.162,279 million. As of September 30, 2018, the Bank’s estimated market share of loans to the private sector was 10.58% while its estimated market share of deposits from the private sector was 10.99%.

➣ The non-accrual loan portfolio represented 2.37% of total loans to the private sector, recording an increase of 55 basis points (“bp”) from the 1.82% recorded at the end of the same quarter of the 2017 fiscal year, while its coverage with allowances for loan losses reached 103.03%.

➣ As of the end of the Quarter, the minimum capital requirement amounted to Ps.29,120 million (up Ps.13,135 million or 82%), and the computable capital was Ps.48,774 million (up Ps.27,550 million or 130%). The excess over the capital requirement amounted to Ps.19,654 million, and the total capital ratio was 14.01%.

INFORMATION DISCLOSURE

The data shown in this report and the consolidated financial statements correspond to Banco de Galicia y Buenos Aires S.A.U. as consolidated, except where otherwise noted.

For comparison purposes, figures for the 2017 fiscal year corresponding to the Bank’s interest in Tarjetas Regionales S.A.⁽¹⁾ (“Tarjetas Regionales”), Compañía Financiera Argentina S.A. (“CFA”)⁽²⁾ and Cobranzas y Servicios S.A. (“CyS”)⁽²⁾ are presented in the line of results from associates and joint businesses. In addition, balances of certain items were adjusted or reclassified.

⁽¹⁾ Beginning in January 1, 2018, the financial statements of Tarjetas Regionales were consolidated line by line with Grupo Financiero Galicia.

⁽²⁾ On February 2, 2018, the sale of Companñía Financiera Argentina and Cobranzas y Servicios was completed.

7

RESULTS FOR THE QUARTER

Income Statement			2018		2017		Variation (%)
In millions of pesos, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
Net interest income		5,770		4,699		3,270		23		76
Net fee income		2,691		2,460		1,977		9		36
Net results from financial instruments		4,843		1,506		1,434		222		238
Gold and foreign currency quotation differences		(83)		760		516		(111)		(116)
Other operating income		1,602		1,587		770		1		108
Loan loss provisions		(2,032)		(1,461)		(555)		39		266
Net operating income		12,791		9,551		7,412		34		73
Personnel expenses		(2,324)		(2,135)		(1,726)		9		35
Administrative expenses		(2,248)		(2,081)		(1,486)		8		51
Depreciations and devaluations of assets		(206)		(196)		(217)		5		(5)
Other operating expenses		(3,053)		(2,438)		(1,744)		25		75
Operating income		4,960		2,701		2,239		84		122
Results from associates and joint businesses		30		23		667		30		(96)
Income tax		(1,585)		(762)		(1,181)		108		34
Results from discontinued activities (1) (2)		-		-		186		-		(100)
Net income		3,405		1,962		1,911		74		78
Other comprehensive income		(82)		17		(97)		(582)		(15)
Total comprehensive income		3,323		1,979		1,814		68		83
(1) Net of income tax. (2) Results from the sale of Compañía Financiera Argentina and Cobranzas y Servcios.
Profitability and Efficiency			2018		2017		Variation (bp)
Percentages, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
Return (1) on average assets		3.34		2.38		3.26		96		8
Return (1) on average shareholders’ equity		35.60		22.26		27.90		1,334		770
Financial margin (1) (2)		13.83		10.35		11.27		348		256
Efficiency ratio (3)		41.21		53.27		49.96		(1,206)		(875)

(1) Annualized.

(2) Net interest income plus net fee income plus net result from financial instruments plus foreign currency quotation differences plus certain items included in other operating income, divided by average interest-earning assets.

(3) Personnel expenses plus administrative expenses plus depreciation and devaluations of assets, divided by net interest income plus net fee income plus net result from financial instruments plus foreign currency quotation differences plus insurance premiums earned plus certain items included in other operating income.

In the third quarter of the 2018 fiscal year, Banco Galicia recorded a Ps.3,405 million profit, Ps.1,494 million (78%) higher than the Ps.1,911 million profit recorded for the same quarter of the previous fiscal year, as a consequence of a Ps.5,379 higher net operating income (73%), which mainly resulted from the growth of the net income from financial instruments (238%).

8

Net Interest Income			2018		2017		Variation (%)
In millions of pesos, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
Interest income		15,265		10,314		6,459		48		136
Private sector securities		41		6		125		583		(67)
Public sector securities		469		24		11		1,854		4,164
Loans and other financing		14,384		10,159		6,129		42		135
Financial sector		624		338		192		85		225
Non-financial private sector		13,760		9,821		5,937		40		132
Overdrafts		2,985		1,418		655		111		356
Mortgage loans		1,350		802		148		68		812
Pledge loans		109		96		31		14		252
Personal loans		1,973		1,803		1,276		9		55
Credit-card loans		3,562		3,022		2,050		18		74
Financial leases		127		108		87		18		46
Other		3,654		2,572		1,690		42		116
Other interest-earning assets		371		125		194		197		91
Interest expenses		(9,495)		(5,615)		(3,189)		69		198
Deposits from the non-financial private sector		(7,821)		(4,414)		(2,668)		77		193
Current accounts		-		-		(1)		-		(100)
Saving accounts		(1)		(1)		-		-		N/A
Time deposits and term investments		(6,652)		(3,960)		(2,413)		68		176
Other		(1,168)		(453)		(254)		158		360
Financing from financial institutions		(270)		(178)		(118)		52		129
Repurchase agreement transactions		(40)		(89)		(26)		(55)		54
Other interest-bearing liabilities		(242)		(158)		(34)		53		612
Notes		(1,122)		(776)		(343)		45		227
Net interest income		5,770		4,699		3,270		23		76

Net interest income for the Quarter amounted to Ps.5,770 million, representing a Ps.2,500 million (76%) increase as compared to the Ps.3,270 million profit from the same quarter of the 2017 fiscal year. This increase was primarily a consequence of a Ps.8.255 million (135%) increase in interest on loans and other financing.

Yields and Rates (1)					2018				2017				Variation (% / bp)
Average balances: in millions of pesos	3Q				2Q				3Q				vs 2Q18				vs 3Q17
Yields and rates: annualized nominal %	Av. B.		Int.		Av. B.		Int.		Av. B.		Int.		Av. B.		Int.		Av. B.		Int.
Interest-earning assets		266,656		27.50		233,632		19.55		156,534		19.30		14		796		70		820
In pesos		183,688		37.25		167,222		25.87		120,645		23.90		10		1,138		52		1,336
Government securities		28,978		42.75		27,977		16.33		16,310		25.46		4		2,642		78		1,729
Loans		147,380		35.74		134,388		28.18		98,217		23.48		10		756		50		1,226
Other interest-earning assets		7,330		46.06		4,857		17.13		6,118		26.48		51		2,893		20		1,958
In foreign currency		82,968		5.92		66,410		3.61		35,889		3.85		25		230		131		207
Government securities		3,430		14.23		9,426		1.02		2,209		11.23		(64)		1,321		55		300
Loans		78,101		5.48		56,012		4.03		33,350		3.30		39		145		134		218
Other interest-earning assets		1,437		9.74		972		4.53		330		9.70		48		522		335		5
Interest-bearing liabilities		265,614		14.29		212,293		10.61		139,356		9.16		25		368		91		514
In pesos		132,499		26.91		112,121		18.68		86,787		14.05		18		823		53		1,286
Saving accounts		27,515		0.81		29,023		0.52		23,728		0.19		(5)		29		16		63
Time deposits		88,120		34.85		68,273		25.19		53,641		19.68		29		966		64		1,517
Debt securities		10,356		34.30		8,798		29.14		4,268		23.52		18		516		143		1,078
Other interest-bearing liabilities		6,508		18.01		6,027		17.06		5,150		11.50		8		95		26		651
In foreign currency		133,115		1.73		100,172		1.57		52,569		1.07		33		15		153		65
Saving accounts		78,831		-		58,620		-		37,092		-		34		-		113		-
Time deposits		26,010		1.28		20,842		1.48		7,828		0.87		25		(20)		232		41
Debt securities		11,138		8.40		6,970		8.49		4,267		8.72		60		(9)		161		(31)
Other interest-bearing liabilities		17,136		6.02		13,740		4.92		3,382		3.67		25		110		407		236

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

9

The average interest-earning assets for the Quarter amounted to Ps.266,656 million, growing Ps.110,122 million (70%) as compared to the figure recorded for the third quarter of the previous fiscal year, primarily as a consequence of the Ps.93,914 million (71%) increase in the average balance of loans to the private sector and of the Ps.12,668 million (78%) increase in the average portfolio of peso-denominated government securities.

Interest-bearing liabilities reached Ps.265,614 million, increasing Ps.126,258 million (91%) during the same period, primarily due to a Ps.41,739 million (113%) increase in the average balances of dollar-denominated saving accounts as a consequence of the evolution of the exchange rate and a Ps.34,479 million (64%) increase in peso-denominated time deposits.

The average yield on interest-earning assets for the third quarter of the 2018 fiscal year was 27.50%, with an 820 bp increase compared to the same quarter of the prior fiscal year, mainly due to an increase of 1,958 bp in the interest rate on other interest earning assets and of 1,729 bp in the yield on government securities. Likewise, the average cost of interest-bearing liabilities was 14.29%, with a 514 bp increase compared to the third quarter of the prior year mainly due to the increase in the average interest rate on peso-denominated time deposits (1,517 bp ) and on debt securities (1,078 bp).

Net Fee Income			2018		2017		Variation (%)
In millions of pesos, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
Credit cards		1,290		1,279		1,050		1		23
Deposit accounts		815		644		472		27		73
Insurance		153		152		134		1		14
Financial fees		64		64		52		-		23
Credit-related fees		34		26		71		31		(52)
Foreign trade		230		176		181		31		27
Collections		161		148		130		9		24
Utility-bills collection services		199		166		119		20		67
Mutual funds		127		109		32		17		297
Other		213		202		133		5		60
Total fee income		3,286		2,966		2,374		11		38
Total expenditures		(595)		(506)		(397)		18		50
Net fee income		2,691		2,460		1,977		9		36

Net fee income amounted to Ps.2,691 million, up 36% from the Ps.1,977 million recorded in the third quarter of the previous fiscal year. The increases in fees which stood out were those related to deposit accounts (Ps.343 million or 73%) and to credit-cards (Ps.240 million or 23%).

Net income from financial instruments for the Quarter amounted to Ps.4,843 million, up Ps.3,409 million (238%) from the Ps.1,434 million recorded in the same quarter of the 2017 fiscal year.

Losses from gold and foreign currency quotation differences for the Quarter amounted to Ps.83 million, compared to a Ps.516 million profit recorded in the same quarter of the 2017 fiscal year. This result includes a Ps. 1,584 million profit from the trading of foreign currency.

10

Other Operating Income			2018		2017		Variation (%)
In millions of pesos, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
Other financial income / (losses) (1) (2)		89		39		(17)		128		624
Fees from bundles of products (1)		584		577		460		1		27
Rental of safe deposit boxes (1)		108		104		88		4		23
Other fee income (1)		124		98		72		27		72
Other adjustments and interest on miscellaneous receivables		507		237		78		114		550
Other		190		532		89		(64)		113
Total other operating income		1,602		1,587		770		1		108

(1) Item included for calculating the efficiency ratio.

(2) Item included for calculating the financial margin.

Other operating income for the Quarter reached Ps.1,602 million, increasing Ps.832 million (108%) from the Ps.770 million net profit recorded in the third quarter of 2017.

Provisions for loan losses for the third quarter of the 2018 fiscal year amounted to Ps.2,032 million, Ps.1,477 million (266%) higher than those recorded in the same quarter of the prior fiscal year. This was 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.

Personnel expenses amounted to Ps.2,324 million, increasing 35% from the same quarter of the 2017 fiscal year, mainly due to salary increase agreements with the Unions.

Administrative Expenses			2018		2017		Variation (%)
In millions of pesos, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
Fees and compensations for services		200		134		47		49		326
Fees to directors and syndics		6		7		5		(14)		20
Publicity, promotion and research expenses		128		176		125		(27)		2
Taxes		395		342		319		15		24
Maintenance		275		260		140		6		96
Electricity and communications		168		157		120		7		40
Stationery and office supplies		23		24		21		(4)		10
Rentals		129		90		68		43		90
Hired administrative services		284		267		207		6		37
Security		117		109		102		7		15
Insurance		13		14		10		(7)		30
Other		510		501		322		2		58
Total administrative expenses		2,248		2,081		1,486		8		51

Administrative expenses for the Quarter totaled Ps.2,248 million, up 51% in the same period, as a consequence of a Ps.153 million (326%) increase in fees and compensations for services and of a Ps.135 million (96%) increase in maintenance expenses, as compared to the same quarter of the previous fiscal year.

11

Other Operating Expenses			2018		2017		Variation (%)
In millions of pesos, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
Contribution to the Deposit Insurance Fund (1) (2)		108		91		69		19		57
Other financial expenses (1) (2)		122		57		79		114		54
Turnover tax (1)		1,581		1,188		789		33		100
On operating income (2)		1,094		827		610		32		79
On fees		430		319		156		35		176
On other items		57		42		23		36		148
Other fee-related expenditures (2)		778		666		615		17		27
Other provisions		326		289		16		13		1,938
Claims		62		78		31		(21)		100
Other		76		69		145		10		(48)
Total other operating expenses		3,053		2,438		1,744		25		75

(1) Item included for calculating the efficiency ratio.

(2) Item included for calculating the financial margin.

Other operating expenses reached Ps.3,053 million, increasing Ps.1,309 million (75%) from the Ps.1,744 million recorded in the third quarter of 2017.

The income tax charge was Ps.1,585 million, Ps.404 million (34%) higher than in the third quarter of the 2017 fiscal year.

SELECTED FINANCIAL INFORMATION

Balance Sheet			2018		2017		Variation (%)
In millions of pesos, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
Assets
Cash and due from banks		116,288		91,103		35,011		28		232
Debt securities		22,019		30,650		23,917		(28)		(8)
Net loans and other financing		253,943		212,489		140,603		20		81
Other financial assets		62,355		29,615		11,149		111		459
Equity investments in subsidiaries, associates and joint businesses		180		204		6,251		(12)		(97)
Property, bank premises, equipment		9,567		9,184		8,370		4		14
Intangible assets		685		697		535		(2)		28
Other assets		4,307		3,322		1,989		30		117
Assets available for sale (1)		244		244		5,507		-		(96)
Total assets		469,588		377,508		233,332		24		101
Liabilities
Deposits		320,367		261,270		162,279		23		97
Financing from financial entities		23,637		20,578		6,617		15		257
Other financial liabilities		47,481		28,397		16,449		67		189
Notes		15,273		13,864		4,403		10		247
Subordinated notes		10,357		7,444		4,360		39		138
Other liabilities		12,712		9,516		12,163		34		5
Total liabilities		429,827		341,069		206,271		26		108
Shareholders’ equity		39,761		36,439		27,061		9		47
Foreign currency assets and liabilities
Assets		193,734		148,391		64,880		31		199
Liabilities		195,557		155,010		65,316		26		199
Net forward purchases/(sales) of foreign currency (2)		2,728		7,661		(2,486)		(64)		(210)
Net global position in foreign currency		905		1,042		(2,922)		(13)		(131)

(1) Includes the interests in Compañía Financiera Argentina S.A. and in Cobranzas y Servicios S.A. until 2017, and the interest in Prisma Medios de Pago S.A. since the fourth quarter of 2017.

(2) Recorded off-balance sheet.

12

LEVEL OF ACTIVITY

Financing to the Private Sector(1)			2018		2017		Variation (%)
In millions of pesos, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
In pesos		174,881		167,460		117,305		4		49
Loans		140,541		138,568		100,685		1		40
UVA-adjusted loans		13,332		10,405		2,087		28		539
Financial leases		1,495		1,517		1,471		(1)		2
Debt securities		492		625		510		(21)		(4)
Other financing (2)		19,021		16,345		12,552		16		52
In foreign currency		124,518		75,616		42,438		65		193
Loans		98,580		62,655		37,620		57		162
Financial leases		1,037		598		183		73		467
Debt securities		5,359		3,035		568		77		843
Other financing (2)		19,542		9,328		4,067		109		380
Total financing to the private sector		299,399		243,076		159,743		23		87

(1) Includes IFRS adjustment.

(2) Includes certain off-balance sheet accounts related to guarantees granted.

As of September 30, 2018, total financing to the private sector reached Ps.299,399 million, representing an increase of 87% from a year before and of 23% during the Quarter. This increase was mainly a consequence of the growth of the loan portfolio, both in pesos and in foreign currency. Dollar-denominated loans measured in dollars increased 11% as compared to the same quarter of the 2017 fiscal year.

Market Share (1)			2018		2017		Variation (bp)
Percentages, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
Total loans		10.67		10.00		9.46		67		121
Loans to the private sector		10.58		10.02		9.31		56		127

(1) According to the daily information on loans published by the Argentine Central Bank. Only principal as of the last day of each quarter.

The Bank’s market share of loans to the private sector as of September 30, 2018, was 10.58%, increasing 127 bp from September 30, 2017.

13

Break down of loans and other financing			2018		2017		Variation (%)
In millions of pesos, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
Financial entities		8,866		7,860		4,445		13		99
Loans		8,860		7,856		4,438		13		100
Other financing		6		4		7		50		(14)
Non-financial private sector and residents abroad		251,351		209,646		139,332		20		80
Loans		243,593		203,772		135,954		20		79
Overdrafts		24,697		18,351		8,047		35		207
Promissory notes		43,849		47,123		30,004		(7)		46
Mortgage loans		15,064		12,253		3,919		23		284
Pledge loans		1,112		1,090		889		2		25
Personal loans		21,554		21,286		16,087		1		34
Credit-card loans		62,892		61,116		46,433		3		35
Other		71,508		41,630		31,273		72		129
Accrued interest, adjustments and foreign currency quotation differences receivable		4,031		2,102		(30)		92		(13,537)
Documented interest		(1,114)		(1,179)		(668)		(6)		67
Financial leases		2,532		2,115		1,654		20		53
Other financing		5,226		3,759		1,724		39		203
Non-financial public sector		1		1		-		-		N/A
Total loans and other financing		260,218		217,506		143,777		20		81
Allowances		(6,275)		(5,017)		(3,174)		25		98
Loans		(6,157)		(4,918)		(3,077)		25		100
Financial leases		(31)		(25)		(19)		24		63
Other financing		(87)		(74)		(78)		18		12
Net loans and other financing		253,943		212,489		140,603		20		81

As of September 30, 2018, net loans and other financing provisions amounted to Ps.253,943 million, growing 81% from September 30, 2017, mainly due to the 79% increase in the private sector loan portfolio.

Loans by Type of Borrower			2018		2017		Variation (%)
In millions of pesos, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
Large corporations		103,416		80,789		31,470		28		229
SMEs		51,066		39,949		41,553		28		23
Individuals		88,066		84,063		58,870		5		50
Financial sector		8,860		7,856		4,438		13		100
Residents abroad		3,830		579		5,163		561		(26)
Other		697		960		766		(27)		(9)
IFRS adjustment		(3,481)		(2,567)		(1,868)		36		86
Total loans		252,454		211,629		140,392		19		80
Allowances		(6,157)		(4,918)		(3,077)		25		100
Net total loans		246,297		206,711		137,315		19		79

14

Loans by Sector of Activity			2018		2017		Variation (%)
In millions of pesos, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
Financial sector		8,860		7,856		4,438		13		100
Residents abroad		3,830		579		5,163		561		(26)
Services		16,311		14,103		10,556		16		55
Agriculture and livestock		30,573		25,214		15,250		21		100
Consumer		88,105		84,141		58,902		5		50
Retail and wholesale trade		23,029		25,959		17,063		(11)		35
Construction		3,662		3,248		2,040		13		80
Manufacturing industry		58,199		43,571		24,709		34		136
Other		23,366		9,525		4,139		145		465
IFRS adjustment		(3,481)		(2,567)		(1,868)		36		86
Total loans		252,454		211,629		140,392		19		80
Allowances		(6,157)		(4,918)		(3,077)		25		100
Net total loans		246,297		206,711		137,315		19		79

When compared to the previous fiscal year, loans to the private sector registered growth, mainly in those granted to large corporations (Ps.71,946 million or 229%) and to individuals (Ps.29,196 million or 50%). By sector of activity, the higher growth was recorded in the manufacturing industry (Ps.33,490 million or 136%), the consumer sector (Ps.29,203 million or 50%) and in the agricultural and livestock sector (Ps.15,323 million or 100%).

Net Exposure to the Argentine Public Sector (1)			2018		2017		Variation (%)
In millions of pesos, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
Government securities’ net position		30,082		33,344		22,267		(10)		35
Lebac		1,275		13,634		15,576		(91)		(92)
Leliq		12,923		2,988		-		332		N/A
Bote		9,355		3,948		-		137		N/A
Other		6,529		12,774		6,691		(49)		(2)
Other receivables resulting from financial brokerage		63		50		45		26		40
Loans and other financing		7		4		7		75		-
Trust certificates of participation and securities		56		46		38		22		47
Total exposure to the public sector		30,145		33,394		22,312		(10)		35

(1) Excludes deposits with the Argentine Central Bank, which constitute one of the items by which the Bank complies with minimum cash requirements.

As of September 30, 2018, the Bank’s exposure to the public sector amounted to Ps.30,145 million, recording a 35% increase during the last twelve months, due to a Ps.1,378 million (9%) decrease in the portfolio of debt securities issued by the Argentine Central Bank and to an increase of Ps.9,193 million (137%) in other government securities. Excluding Lebac and Leliq, net exposure to the public sector reached Ps.15,947 million (3% of total assets), while as of September 30, 2017, it amounted to Ps.6,736 million (representing a similar percentage of total assets).

15

Deposits			2018		2017				Variation (%)
In millions of pesos, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
In pesos		167,113		143,074		108,733		17		54
Current accounts		34,347		33,940		29,247		1		17
Saving accounts		45,870		41,651		27,962		10		64
Time deposits		80,204		60,851		49,088		32		63
UVA-adjusted time deposits		2,278		3,620		398		(37)		472
Other		1,196		1,145		845		4		42
Interests and adjustments		3,218		1,867		1,193		72		170
In foreign currency		153,254		118,196		53,546		30		186
Saving accounts		125,680		94,524		44,992		33		179
Time deposits		26,545		22,963		8,148		16		226
Other		952		658		393		45		142
Interests and adjustments		77		51		13		51		492
Total deposits		320,367		261,270		162,279		23		97

As of September 30, 2018, the Bank’s deposits amounted to Ps.320,367 million, representing a 97% increase during the last twelve months. Peso-denominated deposits increased 54% in the same period, mainly due to a Ps.31,116 million (63%) increase in time deposits and a Ps.17,908 million (64%) in deposits in saving accounts. Dollar-denominated deposits increased 186% in the last twelve months as a consequence of the evolution of the exchange rate. Deposits in dollar-denominated saving accounts reached Ps.125,680, increasing 21% measured in dollars from September 30, 2017.

At the end of the Quarter there were more than 4 million deposit accounts, 13% more than a year before.

Market Share (1)			2018		2017		Variation (bp)
Percentages, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
Total deposits		8.35		8.17		7.48		18		87
Private sector deposits		10.99		10.44		9.37		55		162

(1) According to the daily information on loans published by the Argentine Central Bank. Balances as of the last day of each quarter.

As of September 30, 2018, the Bank’s estimated market share of private sector deposits in the Argentine financial system was 10.99%, recording a 162 bp increase from a year before.

Financial Liabilities			2018		2017		Variation (%)
In millions of pesos, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
Financial entities		23,637		20,578		6,625		15		257
Financing from credit-card purchases		11,120		10,669		7,572		4		47
Notes		15,273		13,864		4,395		10		248
Subordinated notes		10,357		7,444		4,360		39		138
Other financial liabilities		36,361		17,728		10,390		105		250
Total financial liabilities		96,748		70,283		33,342		38		190

Financial liabilities at the end of the third quarter of 2018 amounted to Ps.96,748 million, Ps.63,406 million (190%) higher than the Ps.33,342 million recorded a year before. This growth was mainly due to the increase in other financial liabilities (Ps.25,971 million or 250%) and in financing from financial entities (Ps.17,012 million or 257%).

16

ASSET QUALITY

Loan Portfolio Quality			2018		2017		Variation (%)
In millions of pesos, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
Non-accrual loans (1)		5,976		4,808		2,555		24		134
With preferred guarantees		446		319		119		40		275
With other guarantees		703		429		136		64		417
Without guarantees		4,827		4,060		2,300		19		110
Allowance for loan losses		6,157		4,918		3,077		25		100
Relevant ratios (%)								Variation (bp)
Non-accrual loans to private-sector loans		2.37		2.27		1.82		10		55
Allowance for loan losses to private-sector loans		2.44		2.32		2.19		11		25
Allowance for loan losses to non-accrual loans		103.03		102.29		120.52		74		(1,750)
Non-accrual loans with guarantees to non-accrual loans		19.23		15.56		9.91		367		932
Cost of risk (2)		3.45		2.98		1.64		47		181

(1) 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.

(2) Annualized.

The Bank’s non-accrual loan portfolio amounted to Ps.5,976 million as of September 30, 2018, accounting for 2.37% of total loans to the private-sector, representing an increase of 55 bp from the 1.82% ratio of a year before.

The coverage of the non-accrual loan portfolio with allowances for loan losses reached 103.03% as of the end of the Quarter, compared to 120.52% from a year before.

In terms of total financing (defined as loans, certain other receivable financial asset accounts, guarantees granted and unused balances of loans granted) the Bank’s non-accrual portfolio represented 2.02% of total financing to the private-sector, and its coverage with allowances for loan losses reached 104.74%, compared to 1.61% and 128.45% from a year before, respectively.

Analysis of Loan Loss Experience			2018		2017		Variation (%)
In millions of pesos, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
Allowance for loan losses at the beginning of the Quarter		4,918		4,365		2,909		13		69
Changes in the allowance for loan losses
Provisions charged to income		1,888		1,391		487		36		288
Charge offs		(649)		(838)		(319)		(23)		103
Allowance for loan losses at the end of the Quarter		6,157		4,918		3,077		25		100
Charge to the income statement
Provisions charged to income (1)		(1,888)		(1,391)		(487)		36		288
Direct charge offs (1)		(92)		(55)		(60)		67		53
Bad debts recovered		33		54		21		(39)		57
Net charge to the income statement		(1,947)		(1,392)		(526)		40		270

(1) Item included for calculating the cost of risk.

During the Quarter, Ps.649 million were charged off against the allowance for loan losses and direct charges to the income statement for Ps.92 million were made.

17

CAPITALIZATION AND LIQUIDITY

Regulatory Capital			2018		2017		Variation (%)
In millions of pesos, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
Minimum capital required (A)		29,120		26,112		15,985		12		82
Allocated to credit risk		24,642		20,895		12,638		18		95
Allocated to market risk		943		2,045		884		(54)		7
Allocated to operational risk		3,535		3,172		2,463		11		44
Computable capital (B)		48,774		42,560		21,224		15		130
Tier I		35,322		32,870		15,189		7		133
Tier II		13,452		9,690		6,035		39		123
Excess over required capital (B) - (A)		19,654		16,448		5,239		19		275
Risk weighted assets		348,263		317,755		194,724		10		79
								Variation (bp)
Total capital ratio (%)		14.01		13.39		10.90		62		311
Tier I capital ratio (%)		10.14		10.34		7.80		(20)		234

As of September 30, 2018, the Bank’s computable capital was Ps.19,654 million (67%) higher than the Ps.29,120 million capital requirement. As of September 30, 2017, this excess amounted to Ps.5,239 million (33%).

The minimum capital requirement increased Ps.13,135 million as compared to September 30, 2017, mainly due to the growth of the private-sector loan portfolio, and computable capital increased Ps.27,550 million in the same period, primarily as consequence of the capitalization and of the application of IFRS. The total capital ratio was 14.01%, increasing 311 bp during the last twelve months.

Liquidity			2018		2017		Variation (%)
Percentages, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
Cash and due from banks		116,288		91,103		35,011		28		232
Government securities		15,897		25,462		17,560		(38)		(9)
Call-money		1,074		956		783		12		37
Overnight placements in correspondent banks		4,895		1,154		5,470		324		(11)
Repurchase agreement transactions		14,652		816		1,173		1,696		1,149
Escrow accounts		4,459		4,138		2,927		8		52
Total liquid assets		157,265		123,629		62,924		27		150
Liquidity ratios								Variation (bp)
Liquid assets (*) as a percentage of transactional deposits		76.38		72.67		61.54		371		1,484
Liquid assets (*) as a percentage of total deposits		49.09		47.32		38.78		177		1,031

(*) 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 September 30, 2018, the Bank’s liquid assets represented 76.38% of the Bank’s transactional deposits and 49.09% of its total deposits, as compared to 61.54% and 38.78%, respectively, as of September 30, 2017.

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TARJETAS REGIONALES

INFORMATION DISCLOSURE

The data shown in the following tables correspond to Tarjetas Regionales S.A., consolidated line by line with its subsidiaries.

RESULTS FOR THE QUARTER

Income Statement			2018		2017		Variation (%)
In millions of pesos, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
Net interest income		1,857		1,938		1,509		(4)		23
Net fee income		2,342		2,342		1,860		6		26
Net results from financial instruments		221		150		98		47		126
Gold and foreign currency quotation differences		(4)		-		-		N/A		N/A
Other operating income		258		251		220		3		17
Loan loss provisions		(797)		(928)		(441)		(14)		81
Net operating income		3,877		3,624		3,246		7		19
Personnel expenses		(942)		(950)		(807)		(1)		17
Administrative expenses		(1,468)		(1,190)		(825)		23		78
Depreciations and devaluations of assets		(75)		(67)		(50)		12		50
Other operating expenses (1)		(495)		(463)		(323)		7		53
Operating income		897		954		1,241		(6)		(28)
Income tax		(266)		(271)		(453)		(2)		(41)
Net income		631		683		788		(8)		(20)

(1) Includes sales tax for Ps.204 million in the third quarter of 2018. Item included for calculating the financial margin.

Profitability and Efficiency			2018		2017		Variation (bp)
Percentages, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
Return (1) on average assets		5.50		6.81		9.79		(131)		(429)
Return (1) on average shareholders’ equity		25.36		29.63		43.13		(427)		(1,777)
Financial margin (1) (2)		16.36		17.86		17.85		(150)		(149)
Efficiency ratio (3)		63.02		57.22		53.96		580		906

(1) Annualized.

(2) Net interest income plus net result from financial instruments plus foreign currency quotation differences plus certain items included in other operating income and expenses, divided by average interest-earning assets.

(3) Personnel expenses plus administrative expenses plus depreciation and devaluations of assets, divided by net interest income plus net fee income plus net result from financial instruments plus foreign currency quotation differences plus insurance premiums earned plus certain items included in other operating income.

In the third quarter of the 2018 fiscal year, Tarjetas Regionales S.A. recorded a Ps.631 million profit, decreasing 20% in the last twelve months. This profit represented a 5.50% annualized return on average assets and a 25.36% return on average shareholder’s equity, as compared to 9.79% and 43.13%, respectively, from the third quarter of the 2017 fiscal year.

Net operating income amounted to Ps.3,877 million, increasing 19% from the third quarter of 2017, with net fee income growing 26% and net interest income growing 23%.

Provisions for loan losses for the Quarter amounted to Ps.797 million, 81% higher than the Ps.441 million recorded in the same quarter of the prior year.

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SELECTED FINANCIAL INFORMATION

Balance Sheet			2018		2017		Variation (%)
In millions of pesos, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
Assets
Cash and due from banks		646		682		414		(5)		56
Debt securities		749		-		72		N/A		940
Net loans and other financing		40,516		38,101		28,370		6		43
Other financial assets		2,047		1,672		1,782		22		15
Property, bank premises, equipment		777		701		660		11		18
Intangible assets		368		327		192		13		92
Other non-financial assets		1,072		898		948		19		13
Total assets		46,175		42,381		32,438		9		42
Liabilities
Financing from financial entities		2,999		1,813		403		65		644
Other financial liabilities		18,770		17,247		12,957		9		45
Notes		12,096		11,815		9,358		2		29
Other non-financial liabilities		2,163		1,989		2,040		9		6
Total liabilities		36,028		32,864		24,758		10		46
Shareholders’ equity		10,147		9,517		7,680		7		32

ASSET QUALITY

Loan Portfolio Quality			2018		2017		Variation (%)
Percentages, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
Non-accrual loans (1)		3,127		2,631		2,180		19		43
Allowances for loan losses		3,110		2,802		2,297		11		35
Ratios (%)					Variation (bp)
Non-accrual loans to loans to the private sector		7.17		6.44		7.12		73		5
Allowance for loan losses to loans to the private sector		7.13		6.86		7.50		28		(37)
Allowance for loan losses to non-accrual loans		99.46		106.50		105.37		(704)		(591)
Cost of risk (2)		8.19		9.83		5.81		(164)		238

(1) 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.

(2) Annualized.

Analysis of Loan Loss Experience			2018		2017		Variation (%)
In millions of pesos, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
Allowance for loan losses
At the beginning of the Quarter		2,802		2,844		2,492		(1)		12
Changes in the allowance for loan losses
Provisions charged to income		718		863		393		(17)		83
Charge offs (1)		(410)		(905)		(588)		(55)		(30)
Allowance for loan losses at the end of the Quarter		3,110		2,802		2,297		11		35
Charge to the income statement
Provisions charged to income (2)		(718)		(863)		(393)		(17)		83
Direct charge offs (2)		(93)		(61)		(48)		52		94
Bad debts recovered		105		74		97		42		8
Net charge to the income statement		(706)		(850)		(344)		(17)		105

(1) Includes Ps.785 million from the sale of bad- loans in the third quarter of 2018.

(2) Item included for calculating the cost of risk.

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GALICIA ADMINISTRADORA DE FONDOS

RESULTS FOR THE QUARTER

Income Statement			2018		2017		Variation (%)
In millions of pesos, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
Net results from financial instruments		63		62		20		2		215
Gold and foreign currency quotation differences		6		1		-		500		N/A
Other operating income		92		163		186		(44)		(51)
Net operating income		161		226		206		(29)		(22)
Personnel and administrative expenses		(36)		(34)		(14)		6		157
Other operating expenses		(8)		(12)		(10)		(33)		(20)
Operating income		117		180		182		(35)		(36)
Income tax		(35)		(54)		(64)		(35)		(45)
Net income		82		126		118		(35)		(31)

ASSETS UNDER MANAGEMENT

Mutual Fund	Assets Under Management as of:						Variation
In millions of pesos, except otherwise noted	3Q18		2Q18		3Q17		Ps.		%
Fima Premium		29,671		19,977		7,540		49		294
Fima Ahorro Pesos		7,154		16,786		20,918		(57)		(66)
Fima Ahorro Plus		4,690		12,390		21,143		(62)		(78)
Fima Capital Plus		242		400		384		(40)		(37)
Fima Renta en Pesos		346		563		545		(39)		(37)
Fima Renta Plus		167		348		458		(52)		(64)
Fima Abierto Pymes		329		295		238		12		38
Fima Acciones		463		433		323		7		43
Fima PB Acciones		1,141		1,185		973		(4)		17
Fima Mix I		10		238		6		(96)		67
Fima Renta Dólares I		10,847		15,251		17,114		(29)		(37)
Fima Renta Dólares II		3,055		5,056		5,354		(40)		(43)
Total Assets Under Management		58,115		72,922		74,996		(20)		(23)

SELECTED FINANCIAL INFORMATION

Balance Sheet			2018		2017		Variation (%)
In millions of pesos, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
Assets
Cash and due from banks		26		2		1		1,200		2,500
Net loans and other financing		-		12		-		(100)		-
Other financial assets		451		412		447		9		1
Other non-financial assets		124		67		61		85		103
Total assets		601		493		509		22		18
Liabilities
Other non-financial liabilities		203		176		188		15		8
Total liabilities		203		176		188		15		8
Shareholders’ equity		398		317		321		26		24

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SUDAMERICANA HOLDING

INFORMATION DISCLOSURE

The data shown in the tables of this report and the consolidated financial statements correspond to Sudamericana Holding S.A., consolidated line by line with the subsidiaries under its control.

RESULTS FOR THE QUARTER

Income Statement			2018		2017		Variation (%)
In millions of pesos, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
Earned premium		943		938		720		1		31
Incurred claims		(117)		(137)		(92)		(15)		27
Withdrawals		(3)		-		(1)		N/A		200
Life annuities		(1)		(2)		(1)		(50)		-
Acquisition and general expenses		(398)		(478)		(337)		(17)		18
Other income and expenses		(54)		(1)		(19)		5,300		184
Underwriting income		370		320		270		16		37
Interest income		100		105		80		(5)		25
Net results from financial instruments		29		12		(7)		142		(514)
Gold and foreign currency quotation differences		-		5		-		(100)		-
Other operating income		35		42		14		(17)		150
Net operating income		534		484		357		10		50
Personnel expenses		(120)		(114)		(86)		5		40
Administrative expenses		(77)		(81)		(66)		(5)		17
Depreciations and devaluations of assets		(15)		(13)		(6)		15		150
Other operating expenses		(51)		(67)		(41)		(24)		24
Operating income		271		209		158		30		72
Income tax		(81)		(73)		1		11		45
Net income		190		136		103		40		84
Other comprehensive income		1		(1)		4		(200)		(75)
Total comprehensive income		191		135		107		41		79

Profitability			2018		2017		Variation (pb)
Percentages, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
Return on average assets (1)		24.77		19.58		15.97		519		880
Return on average shareholders’ equity (1)		57.50		44.60		35.53		1,290		2,196
Efficiency ratio (2)		47.93		51.07		49.44		(313)		(151)
Combined ratio (3)		60.76		65.88		62.50		(512)		(174)

(1) Annualized.

(2) Acquisition and general expenses divided by earned premiums plus other income and expenses.

(3) Acquisition and general expenses divided by earned premiums plus incurred claims plus withdrawals plus life annuities plus other income and expenses.

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SELECTED FINANCIAL INFORMATION

Balance Sheet			2018		2017		Variation (%)
In millions of pesos, except otherwise noted	3Q		2Q		3Q		vs 2Q18		vs 3Q17
Assets
Cash and due from banks		36		24		28		50		29
Debt securities		174		606		790		(71)		(78)
Net loans and other financing		293		87		23		237		1,174
Other financial assets		1,045		1,021		390		2		168
Property, bank premises, equipment		175		146		146		20		20
Intangible assets		59		63		51		(6)		16
Other non-financial assets		1,065		963		898		11		19
Total assets		2,847		2,910		2,326		(2)		22
Liabilities
Financial entities		-		10		10		(100)		(100)
Other non-financial liabilities		1,755		1,559		1,414		13		24
Total liabilities		1,755		1,569		1,424		12		23
Shareholders’ equity		1,092		1,341		902		(19)		21

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RECENT DEVELOPMENTS

CHANGE OF NAME OF BANCO GALICIA

On October 2, 2018, the corporate name of Banco Galicia was changed to “Banco de Galicia y Buenos Aires S.A.U.” (single shareholder corporation).

DISTRIBUTION NETWORK

During the Quarter, the Bank increased its distribution network with the opening of 10 new branches, one in each of the Argentinian provinces of Buenos Aires, Santa Cruz, Córdoba, Neuquén, Misiones, Tucumán and Salta, and three in the City of Buenos Aires.

In addition, jointly with Starbucks, Banco Galicia opened the first “Coffee Banking” branch in the country, a branch model where the client is offered advice on financial services and cafeteria services.

REGULATORY CHANGES

MINIMUM CASH REQUIREMENTS:

As of September 1, 2018, the Argentine Central Bank established a schedule to increase minimum cash requirements by 13 percentage points. In the case of demand deposits, 8 percentage points may be integrated with Argentine Central Bank Liquidity Bills (Leliq) and/or Notes (Nobac). For time deposits for up to 60 days, the entire increase can be integrated with the aforementioned bills and notes. In addition, the monetary authority decided that, effective as of October 1, 2018, the requirement corresponding to the increase in the balances of time deposits, with respect to those as of September 30, 2018, may also be integrated with Leliq and/or Nobac.

INFLATION ADJUSTMENT

As of September 30, 2018, there are regulations in force from applicable authorities (the Argentine Central Bank and the Argentine National Securities Commission) that prevent the application of the adjustment for inflation, in accordance with the provisions of Decree N°664/03 of the Executive Branch. As a result, the criteria for restating the financial information established in IAS 29 has not been used. IAS 29 refers to the recognition of the effects of inflation on the entity’s equity and results, expressing them in constant currency as of the date of the financial reports, and as a consequence they would differ significantly from the balances currently reported.

This report is a summary analysis of GFG’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 GFG’s financial statements, as well as with all other material periodically filed with the Argentine 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.

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