FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For the month of August, 2019
Commission File Number: 0-30852
GRUPO FINANCIERO GALICIA S.A.
(the Registrant)
Galicia Financial Group S.A.
(translation of Registrants name into English)
Tte. Gral. Juan D. Perón 430, 25th Floor
(CP1038AAJ) Buenos Aires, Argentina
(address of principal executive offices)
Indicate by check mark whether the Registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F X Form 40-F
Indicate by check mark whether by furnishing the information contained in this form, the Registrant is also thereby furnishing the information to the Securities and Exchange Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
If Yes is marked, indicate below the file number assigned to the Registrant in connection with Rule 12g3-2(b): 82-
FORM 6-K
Commission File No. 0-30852
Month Filed | Event and Summary | Exhibit No. | ||
August, 2019 | Press Release regarding the Financial Results of the Registrant for the Quarter that ended on June 30, 2019. | 99.1 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
GRUPO FINANCIERO GALICIA S.A. | ||||||
(Registrant) | ||||||
Date: August 14, 2019 | By: | /s/ Pedro Alberto Richards | ||||
Name: Pedro Alberto Richards | ||||||
Title: Chief Executive Officer |
Exhibit 99.1
GRUPO FINANCIERO GALICIA S.A. REPORTS FINANCIAL RESULTS FOR
THE SECOND QUARTER THAT ENDED ON JUNE 30, 2019
Buenos Aires, Argentina, August 12, 2019 Grupo Financiero Galicia S.A. (BYMA /NASDAQ: GGAL) announced its financial results for the second quarter that ended on June 30, 2019 (the Quarter).
HIGHLIGHTS
Ø | Net income attributable to Grupo Financiero Galicia S.A. (or GFG or Grupo Financiero Galicia) for the Quarter reached Ps.11,580 million, 316% higher than the Ps.2,782 million recorded in the second quarter of 2018. The profit per share for the Quarter amounted to Ps.8.11, compared to Ps.1.95 per share recorded for the same quarter of the 2018 fiscal year. |
Ø | The result of the Quarter was mainly attributable to the income derived from Group Financiero Galicias interest in Banco de Galicia y Buenos Aires S.A.U. (or Banco Galicia or the Bank), for Ps.10,107 million, Tarjetas Regionales S.A., for Ps.922 million, Sudamericana Holding S.A., for Ps.340 million, and Galicia Administradora de Fondos S.A. (or GAF), for Ps.114 million, increased by a net operating income of Ps.109 million and partially offset by personnel and administrative expenses of Ps.52 million. |
Ø | The Banks market share of loans to the private sector was 10.62% and 10.68% for deposits from the private sector, increasing 57 bp and 24 bp respectively, as compared to June 30, 2018. |
Ø | As of the end of the Quarter, the minimum capital requirement amounted to Ps.29,485 million and the computable capital was Ps.60,788 million. The excess of computable capital over the capital requirement amounted to Ps.31,303 million, and the total capital ratio was 16.98%. |
Conference Call:
August 13, 2019, 11:00 am Eastern Time (12:00 Buenos Aires Time)
Call-in number: +1 323-794-2575
Conference ID: 7404623
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 | 2019 | 2018 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
Financial Information |
||||||||||||||||||||
Assets |
645,971 | 622,519 | 422,491 | 4 | 53 | |||||||||||||||
Net loans and other financing |
294,087 | 301,477 | 249,990 | (2) | 18 | |||||||||||||||
Deposits |
408,389 | 407,769 | 261,096 | - | 56 | |||||||||||||||
Shareholders equity attributable to GFG |
73,318 | 63,709 | 46,307 | 15 | 58 | |||||||||||||||
Shares outstanding (in thousands of shares) (1) |
1,426,765 | 1,426,765 | 1,426,765 | - | - | |||||||||||||||
Book value per share (in pesos) |
51.38 | 44.65 | 32.45 | 673 bp | 1,893 bp | |||||||||||||||
Net income attributable to GFG |
11,580 | 9,037 | 2,782 | 28 | 316 | |||||||||||||||
Net income per share (in pesos) |
8.11 | 6.33 | 1.95 | 178 bp | 616 bp |
(1) 10 ordinary shares = 1 ADS.
Selected Ratios | 2019 | 2018 | Variation (bp) | |||||||||||||||||
Percentages, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
Return (1) on average assets (2) |
7.32 | 5.89 | 2.98 | 143 | 434 | |||||||||||||||
Return (1) on average shareholders´ equity (2) |
68.87 | 62.39 | 24.78 | 648 | 4,409 | |||||||||||||||
Financial Margin (2) (3) |
21.13 | 19.48 | 11.84 | 165 | 929 | |||||||||||||||
Efficiency ratio (4) |
36.92 | 35.38 | 56.24 | 154 | (1,932) | |||||||||||||||
Total capital ratio (5) |
16.82 | 15.33 | 13.77 | 149 | 305 | |||||||||||||||
Non-performing loans / Private-sector loans |
5.89 | 5.14 | 2.95 | 75 | 294 | |||||||||||||||
Allowance for loan losses / Private-sector loans |
6.05 | 5.13 | 3.06 | 92 | 299 | |||||||||||||||
Allowance for loan losses / Non-accrual loans |
102.75 | 99.80 | 103.78 | 295 | (103) | |||||||||||||||
Cost of risk (2) |
5.95 | 7.80 | 4.10 | (185) | 185 |
(1) Net income attributable to GFG.
(2) Annualized.
(3) Net interest 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 | 2019 | 2018 | Variation | |||||||||||||||||
In pesos, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
Market price | (bp) | |||||||||||||||||||
Shares BYMA |
151.60 | 110.70 | 95.05 | 4,090 | 5,655 | |||||||||||||||
ADS NASDAQ (in US$) |
35.50 | 25.52 | 32.98 | 998 | 252 | |||||||||||||||
Price BYMA / book value |
2.95 | 2.48 | 2.93 | 47 | 2 | |||||||||||||||
Average daily volume (in thousands of shares) | (%) | |||||||||||||||||||
BYMA |
1,485 | 1,260 | 1,017 | 18 | 46 | |||||||||||||||
NASDAQ (1) |
16,046 | 9,494 | 8,323 | 69 | 93 | |||||||||||||||
Market share (%) | (bp) | |||||||||||||||||||
Banco Galicia |
||||||||||||||||||||
Loans to the private sector |
10.62 | 10.90 | 10.05 | (28) | 57 | |||||||||||||||
Deposits from the private sector |
10.68 | 11.46 | 10.44 | (78) | 24 | |||||||||||||||
Galicia Administradora de Fondos S.A. |
11.16 | 10.82 | 11.80 | 34 | (64) |
(1) Expressed in equivalent shares: 10 ordinary shares = 1 ADS.
2 |
GRUPO FINANCIERO GALICIA
RESULTS FOR THE QUARTER
Income Statement | 2019 | 2018 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
Results from Equity Investments |
11,481 | 8,978 | 2,787 | 28 | 312 | |||||||||||||||
Banco de Galicia y Buenos Aires S.A.U. |
10,107 | 7,839 | 1,967 | 29 | 414 | |||||||||||||||
Tarjetas Regionales S.A. (1) |
922 | 867 | 567 | 6 | 63 | |||||||||||||||
Galicia Administradora de Fondos S.A. |
114 | 77 | 120 | 48 | (5) | |||||||||||||||
Sudamericana Holding S.A. |
340 | 195 | 119 | 74 | 186 | |||||||||||||||
Other subsidiaries (2) |
(2) | - | 14 | - | (114) | |||||||||||||||
Net operating income |
109 | 119 | 51 | (8) | 114 | |||||||||||||||
Administrative expenses |
(52) | (28) | (45) | 86 | 16 | |||||||||||||||
Other operating income and expenses |
(5) | (6) | (6) | - | - | |||||||||||||||
Income tax |
47 | (26) | (5) | (281) | (1,040) | |||||||||||||||
Net income attributable to GFG |
11,580 | 9,037 | 2,782 | 28 | 316 | |||||||||||||||
Other comprehensive income |
29 | (209) | 16 | (114) | 81 | |||||||||||||||
Comprehensive income attributable to GFG |
11,609 | 8,828 | 2,798 | 32 | 315 |
(1) 83% since January 1, 2018 (77% from the split-merger agreement with Banco Galicia and 6% from the acquisition of a certain 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.11,580 million, which represented a 7.32% annualized return on average assets and a 68.87% return on average shareholders equity.
The abovementioned result was mainly attributable to profits from GFGs interests in Banco Galicia, for Ps.10,107 million, Tarjetas Regionales S.A., for Ps.922 million, Sudamericana Holding S.A., for Ps.340 million, and in GAF, for Ps.114 million.
3 |
SELECTED FINANCIAL INFORMATION - CONSOLIDATED
Balance Sheet | 2019 | 2018 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
Assets |
||||||||||||||||||||
Cash and due from banks |
127,897 | 131,824 | 91,739 | (3) | 39 | |||||||||||||||
Debt securities |
147,524 | 108,810 | 31,229 | 36 | 372 | |||||||||||||||
Net loans and other financing |
294,087 | 301,477 | 249,990 | (2) | 18 | |||||||||||||||
Other financial assets |
50,716 | 57,680 | 32,580 | (12) | 56 | |||||||||||||||
Property, bank premises, equipment |
13,924 | 14,048 | 10,034 | (1) | 39 | |||||||||||||||
Intangible assets |
4,859 | 4,254 | 1,088 | 14 | 347 | |||||||||||||||
Other assets |
6,670 | 4,220 | 5,587 | 58 | 19 | |||||||||||||||
Assets available for sale |
294 | 206 | 244 | 43 | 20 | |||||||||||||||
Total assets |
645,971 | 622,519 | 422,491 | 4 | 53 | |||||||||||||||
Liabilities |
||||||||||||||||||||
Deposits |
408,389 | 407,769 | 261,096 | - | 56 | |||||||||||||||
Financing from financial entities |
21,808 | 14,627 | 22,231 | 49 | (2) | |||||||||||||||
Other financial liabilities |
72,238 | 67,700 | 45,154 | 7 | 60 | |||||||||||||||
Notes |
35,226 | 35,582 | 25,318 | (1) | 39 | |||||||||||||||
Subordinated notes |
10,973 | 10,983 | 7,444 | - | 47 | |||||||||||||||
Other liabilities |
21,829 | 20,251 | 13,323 | 8 | 64 | |||||||||||||||
Total liabilities |
570,463 | 556,912 | 374,566 | 2 | 52 | |||||||||||||||
Shareholders equity attributable to third parties |
2,190 | 1,898 | 1,618 | 15 | 35 | |||||||||||||||
Shareholders equity attributable to GFG |
73,318 | 63,709 | 46,307 | 15 | 58 | |||||||||||||||
Shareholders equity |
75,508 | 65,607 | 47,925 | 15 | 58 | |||||||||||||||
|
||||||||||||||||||||
Income Statement | 2019 | 2018 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
Net interest income |
3,085 | 4,209 | 6,742 | (27) | (54) | |||||||||||||||
Interest income |
23,460 | 21,982 | 13,275 | 7 | 77 | |||||||||||||||
Interest related expenses |
(20,375) | (17,773) | (6,533) | 15 | 212 | |||||||||||||||
Net fee income |
5,694 | 6,012 | 4,382 | (5) | 30 | |||||||||||||||
Fee income |
6,780 | 6,761 | 5,004 | - | 35 | |||||||||||||||
Fee related expenses |
(1,086) | (749) | (622) | 45 | 75 | |||||||||||||||
Net results from financial instruments |
18,182 | 15,719 | 1,775 | 16 | 924 | |||||||||||||||
Gold and foreign currency quotation differences |
2,239 | (48) | 782 | N/A | 186 | |||||||||||||||
Other operating income |
2,869 | 6,510 | 2,010 | (56) | 43 | |||||||||||||||
Underwriting income from insurance business |
669 | 672 | 611 | - | 9 | |||||||||||||||
Loan loss provisions |
(4,578) | (7,561) | (2,390) | (39) | 92 | |||||||||||||||
Net operating income |
28,160 | 25,513 | 13,912 | 10 | 102 | |||||||||||||||
Personnel expenses |
(4,488) | (4,063) | (3,226) | 10 | 39 | |||||||||||||||
Administrative expenses |
(5,009) | (4,065) | (3,404) | 23 | 47 | |||||||||||||||
Depreciations and devaluations of assets |
(634) | (569) | (279) | 11 | 127 | |||||||||||||||
Other operating expenses |
(5,051) | (4,260) | (2,936) | 19 | 72 | |||||||||||||||
Operating income |
12,978 | 12,556 | 4,067 | 3 | 219 | |||||||||||||||
Income tax |
(1,210) | (3,341) | (1,169) | (64) | 4 | |||||||||||||||
Net income |
11,768 | 9,215 | 2,898 | 28 | 306 | |||||||||||||||
Net income attributable to third parties |
188 | 178 | 116 | 6 | 62 | |||||||||||||||
Net income attributable to GFG |
11,580 | 9,037 | 2,782 | 28 | 316 | |||||||||||||||
Other comprehensive income (1) |
29 | (209) | 16 | (114) | 81 | |||||||||||||||
Total comprehensive income |
11,797 | 9,006 | 2,914 | 31 | 305 | |||||||||||||||
Comprehensive income attributable to third parties |
188 | 178 | 116 | 6 | 62 | |||||||||||||||
Comprehensive income attributable to GFG |
11,609 | 8,828 | 2,798 | 32 | 315 |
(1) Net of income tax.
4 |
Additional Information | 2019 | 2018 | ||||||||||||||||||
(Number of, except otherwise noted) | 2Q | 1Q | 4Q | 3Q | 2Q | |||||||||||||||
Employees |
9,888 | 9,926 | 10,209 | 10,455 | 10,574 | |||||||||||||||
Banco Galicia |
6,256 | 6,205 | 6,294 | 6,457 | 6,478 | |||||||||||||||
Tarjetas Regionales |
3,227 | 3,301 | 3,488 | 3,564 | 3,657 | |||||||||||||||
Galicia Administradora de Fondos |
23 | 24 | 22 | 21 | 19 | |||||||||||||||
Sudamericana Holding |
372 | 380 | 381 | 386 | 391 | |||||||||||||||
Other companies |
10 | 16 | 24 | 27 | 29 | |||||||||||||||
Branches and other points of sales |
552 | 558 | 563 | 556 | 558 | |||||||||||||||
Banco Galicia |
325 | 325 | 325 | 319 | 309 | |||||||||||||||
Tarjetas Regionales |
227 | 233 | 238 | 237 | 249 | |||||||||||||||
Deposit Accounts at Banco Galicia (in thousands) |
4,965 | 4,781 | 4,760 | 4,637 | 4,505 | |||||||||||||||
Credit Cards (in thousands) |
14,153 | 14,185 | 13,916 | 14,286 | 14,205 | |||||||||||||||
Banco Galicia |
5,509 | 5,501 | 5,098 | 5,029 | 4,953 | |||||||||||||||
Tarjetas Regionales |
8,644 | 8,684 | 8,818 | 9,257 | 9,252 | |||||||||||||||
GAF assets under management (millions of pesos) |
86,496 | 80,910 | 60,404 | 58,115 | 72,922 | |||||||||||||||
Inflation, exchange rate and interest rates |
||||||||||||||||||||
Consumer price index (IPC) (%) |
9.51 | 11.78 | 11.50 | 14.10 | 8.80 | |||||||||||||||
Wholesale price index (IPIM) (%) |
11.57 | 8.22 | 4.50 | 27.50 | 16.60 | |||||||||||||||
Acquisition value unit (UVA) |
38.03 | 33.97 | 31.06 | 26.73 | 24.31 | |||||||||||||||
Exchange rate (Ps./US$) (1) |
42.45 | 43.35 | 37.81 | 40.90 | 28.86 | |||||||||||||||
Badlar (quarterly averages) (2) |
50.82 | 41.83 | 50.21 | 37.08 | 27.31 |
(1) | References foreign currency exchange rates in accordance with 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. |
5 |
BANCO GALICIA
HIGHLIGHTS
Ø | Net income for the Quarter amounted to Ps.10,107 million, Ps.8,140 million (414%) higher than the figure recorded in the same quarter of the 2018 fiscal year, mainly due to an increase in net operating income (142%). |
Ø | Net operating income for the Quarter amounted to Ps.23,072 million, Ps.13,551 million higher than the Ps.9,521 recorded in the second quarter of 2018, mainly as a consequence of the growth in net income from financial instruments, partially offset by higher loan-loss provisions and interest expenses. |
Ø | The credit exposure to the private sector reached Ps.295,329 million for the Quarter, up 21% from Ps. 243,075 million recorded in the second quarter of 2018, and deposits reached Ps.409,171 million, up 57% from Ps.261,270 million. As of June 30, 2019, the Banks estimated market share of loans to the private sector was 10.62% while its estimated market share of deposits from the private sector was 10.68%. |
Ø | The non-accrual loan portfolio represented 4.63% of total loans to the private sector, recording an increase of 236 basis points (bp) from the 2.27% recorded at the end of the same quarter of the 2018 fiscal year, while coverage with allowances for loan losses reached 108.01%. |
Ø | As of the end of the Quarter, the minimum capital requirement amounted to Ps.29,485 million (up Ps.3,373 million or 13%), and the computable capital amounted to Ps.60,788 million (up Ps.18,228 million or 43%). The excess of computable capital over the minimum capital requirement amounted to Ps.31,303 million, and the total capital ratio was 16.98%. |
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.
6 |
RESULTS FOR THE QUARTER
Income Statement | 2019 | 2018 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
Net interest income |
820 | 1,838 | 4,699 | (55) | (83) | |||||||||||||||
Net fee income |
3,066 | 3,350 | 2,460 | (8) | 25 | |||||||||||||||
Net results from financial instruments |
17,645 | 15,286 | 1,506 | 15 | 1,072 | |||||||||||||||
Gold and foreign currency quotation differences |
2,263 | (57) | 760 | (4,070) | 198 | |||||||||||||||
Other operating income |
2,420 | 5,892 | 1,557 | (59) | 55 | |||||||||||||||
Loan-loss provisions |
(3,142) | (6,143) | (1,461) | (49) | 115 | |||||||||||||||
Net operating income |
23,072 | 20,166 | 9,521 | 14 | 142 | |||||||||||||||
Personnel expenses |
(3,321) | (2,903) | (2,135) | 14 | 56 | |||||||||||||||
Administrative expenses |
(3,400) | (2,514) | (2,079) | 35 | 64 | |||||||||||||||
Depreciations and devaluations of assets |
(479) | (418) | (196) | 15 | 144 | |||||||||||||||
Other operating expenses |
(4,252) | (3,462) | (2,410) | 23 | 76 | |||||||||||||||
Operating income |
11,620 | 10,869 | 2,701 | 7 | 330 | |||||||||||||||
Results from associates and joint businesses |
50 | 32 | 27 | 56 | 85 | |||||||||||||||
Income tax |
(1,563) | (3,062) | (761) | (49) | 105 | |||||||||||||||
Net income attributable to Banco Galicia |
10,107 | 7,839 | 1,967 | 29 | 414 | |||||||||||||||
Other comprehensive income |
35 | (211) | 17 | (117) | 106 | |||||||||||||||
Total comprehensive income |
10,142 | 7,628 | 1,984 | 33 | 411 | |||||||||||||||
|
||||||||||||||||||||
Profitability and Efficiency | 2019 | 2018 | Variation (bp) | |||||||||||||||||
Percentages, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
Return (1) on average assets |
7.15 | 6.12 | 2.39 | 103 | 476 | |||||||||||||||
Return (1) on average shareholders´ equity |
73.59 | 70.27 | 22.26 | 332 | 5,133 | |||||||||||||||
Financial margin (1) (2) |
19.59 | 17.77 | 9.83 | 182 | 976 | |||||||||||||||
Efficiency ratio (3) |
33.11 | 31.53 | 59.53 | 158 | (2,642) |
(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, 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. |
During the Quarter, net income attributable to Banco Galicia amounted to Ps.10,107 million, Ps.8,140 million (414%) higher than the Ps.1,967 million for the same quarter of the previous fiscal year, as a result of a Ps.13,551 million (142%) higher net operating income, which was mainly due to the Ps.16,139 million growth in net income from financial instruments and partially offset by higher interest expenses on time deposits and term investments, which amounted to Ps.10,052 million.
7 |
Net Interest Income | 2019 | 2018 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
Interest income |
19,358 | 17,825 | 10,314 | 9 | 88 | |||||||||||||||
Private sector securities |
23 | 41 | 6 | (44) | 283 | |||||||||||||||
Public sector securities (1) |
694 | 677 | 24 | 3 | 2,792 | |||||||||||||||
Loans and other financing |
18,510 | 16,883 | 10,159 | 10 | 82 | |||||||||||||||
Financial sector |
530 | 447 | 338 | 19 | 57 | |||||||||||||||
Non-financial private sector |
17,980 | 16,436 | 9,821 | 9 | 83 | |||||||||||||||
Overdrafts |
2,266 | 2,097 | 1,418 | 8 | 60 | |||||||||||||||
Promissory notes |
3,182 | 2,950 | 2,171 | 8 | 47 | |||||||||||||||
Mortgage loans |
2,657 | 1,933 | 802 | 37 | 231 | |||||||||||||||
Pledge loans |
153 | 50 | 96 | 206 | 59 | |||||||||||||||
Personal loans |
2,421 | 2,211 | 1,803 | 9 | 34 | |||||||||||||||
Credit-card loans |
5,949 | 5,884 | 3,022 | 1 | 97 | |||||||||||||||
Financial leases |
145 | 144 | 108 | 1 | 34 | |||||||||||||||
Other |
1,207 | 1,167 | 401 | 3 | 201 | |||||||||||||||
Other interest-earning assets |
131 | 224 | 125 | (42) | 5 | |||||||||||||||
Interest expenses |
(18,538) | (15,987) | (5,615) | 16 | 230 | |||||||||||||||
Deposits from the non-financial private sector |
(16,341) | (13,963) | (4,414) | 17 | 270 | |||||||||||||||
Saving accounts |
(1) | (1) | (1) | - | - | |||||||||||||||
Time deposits and term investments |
(14,012) | (12,794) | (3,960) | 10 | 254 | |||||||||||||||
Other |
(2,328) | (1,168) | (453) | 99 | 414 | |||||||||||||||
Financing from financial institutions |
(388) | (405) | (178) | (4) | 118 | |||||||||||||||
Repurchase agreement transactions |
(150) | (171) | (89) | (12) | 69 | |||||||||||||||
Other interest-bearing liabilities |
(228) | (187) | (158) | 22 | 44 | |||||||||||||||
Notes |
(1,431) | (1,261) | (776) | 13 | 84 | |||||||||||||||
Net interest income |
820 | 1,838 | 4,699 | (55) | (83) |
(1) Corresponds to interest on Bote 2020.
Net interest income for the Quarter amounted to Ps.820 million, with a Ps.3,879 million (83%) decrease compared to the Ps.4,699 million profit from the same quarter of the 2018 fiscal year. This decrease was primarily a consequence of a Ps.10,052 million (254%) higher interest on time deposits and term investments.
Yields and Rates (1) | 2019 | 2018 | Variation (% / bp) | |||||||||||||||||||||||||||||||||||||
Average balances: in millions of pesos | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||||||||||||||||||||||
Yields and rates: annualized nominal % | Av. B. | Int. | Av. B. | Int. | Av. B. | Int. | Av. B. | Int. | Av. B. | Int. | ||||||||||||||||||||||||||||||
In pesos |
259,762 | 57.01 | 239,465 | 51.90 | 164,837 | 26.41 | 8 | 511 | 58 | 3,060 | ||||||||||||||||||||||||||||||
Government securities |
116,289 | 66.38 | 98,549 | 51.91 | 27,976 | 16.34 | 18 | 1,447 | 316 | 5,004 | ||||||||||||||||||||||||||||||
Loans |
137,337 | 48.88 | 136,160 | 45.01 | 132,002 | 28.69 | 1 | 387 | 4 | 2,019 | ||||||||||||||||||||||||||||||
Other interest-earning assets |
6,136 | 61.28 | 4,756 | 248.86 | 4,859 | 22.47 | 29 | N/A | 26 | 3,881 | ||||||||||||||||||||||||||||||
In foreign currency |
117,054 | 5.66 | 104,577 | 5.28 | 66,411 | 3.67 | 12 | 38 | 76 | 199 | ||||||||||||||||||||||||||||||
Government securities |
10,671 | (0.26) | 8,846 | (13.25) | 9,426 | 1.06 | 21 | 1,299 | 13 | (132) | ||||||||||||||||||||||||||||||
Loans |
104,981 | 5.95 | 93,903 | 5.78 | 56,012 | 4.06 | 12 | 17 | 87 | 189 | ||||||||||||||||||||||||||||||
Other interest-earning assets |
1,402 | 28.82 | 1,828 | 69.37 | 973 | 6.99 | (23) | (4,055) | 44 | 2,183 | ||||||||||||||||||||||||||||||
Interest-earning assets |
376,816 | 41.06 | 344,042 | 37.73 | 231,248 | 19.88 | 10 | 333 | 63 | 2,118 | ||||||||||||||||||||||||||||||
In pesos |
182,174 | 39.43 | 176,503 | 34.90 | 109,827 | 19.03 | 3 | 453 | 66 | 2,040 | ||||||||||||||||||||||||||||||
Saving accounts |
31,237 | 1.33 | 30,886 | 0.96 | 29,023 | 0.52 | 1 | 37 | 8 | 81 | ||||||||||||||||||||||||||||||
Time deposits |
136,558 | 47.45 | 130,944 | 42.34 | 68,276 | 25.19 | 4 | 511 | 100 | 2,226 | ||||||||||||||||||||||||||||||
Debt securities |
10,465 | 43.61 | 10,404 | 35.83 | 8,812 | 28.55 | 1 | 778 | 19 | 1,506 | ||||||||||||||||||||||||||||||
Other interest-bearing liabilities |
3,914 | 52.43 | 4,269 | 49.94 | 3,716 | 27.88 | (8) | 249 | 5 | 2,455 | ||||||||||||||||||||||||||||||
In foreign currency |
179,214 | 1.41 | 163,946 | 1.34 | 100,172 | 1.57 | 9 | 7 | 79 | (16) | ||||||||||||||||||||||||||||||
Saving accounts |
116,362 | - | 103,938 | - | 58,620 | - | 12 | - | 99 | - | ||||||||||||||||||||||||||||||
Time deposits |
26,129 | 0.60 | 28,645 | 0.54 | 20,842 | 1.48 | (9) | 6 | 25 | (88) | ||||||||||||||||||||||||||||||
Debt securities |
18,853 | 7.19 | 14,974 | 7.51 | 6,970 | 8.49 | 26 | (32) | 170 | (130) | ||||||||||||||||||||||||||||||
Other interest-bearing liabilities |
17,870 | 5.66 | 16,389 | 5.56 | 13,740 | 4.86 | 9 | 10 | 30 | 80 | ||||||||||||||||||||||||||||||
Interest-bearing liabilities |
361,388 | 20.57 | 340,449 | 18.74 | 209,999 | 10.70 | 6 | 183 | 72 | 987 |
(1) Does not include foreign currency quotation differences. Annual nominal interest rates were calculated using a 360-day denominator.
8 |
The average interest-earning assets amounted to Ps.376,816 million, growing Ps.145,568 million (63%) as compared to the second quarter of the previous fiscal year, primarily as a result of the Ps.88,313 million (316%) increase in the average portfolio of peso-denominated government securities and of Ps.48,969 million (87%) in the average balance of dollar-denominated loans to the private sector, due to the evolution of the exchange rate.
Interest-bearing liabilities reached Ps.361,388 million, increasing Ps.151,389 million (72%) during the same period, primarily due to a Ps.68,282 million (100%) increase in peso-denominated time deposits and to a Ps.57,742 million (99%) increase in the average balances of dollar-denominated saving accounts as a consequence of the evolution of the exchange rate.
The average yield on interest-earning assets for the Quarter was 41.06%, representing a 2,118 bp increase as compared to the same quarter of the prior fiscal year, mainly due to an increase of 5,004 bp in the average yield on peso-denominated government securities, and of 2,019 bp in the average interest rate on peso-denominated loans. Likewise, the average cost of interest-bearing liabilities was 20.57%, with a 987 bp increase compared to the second quarter of the prior fiscal year mainly due to the 2,226 bp increase in the average interest rate on peso-denominated time deposits and the 1,506 bp increase in the average interest rate on debt securities.
Net Fee Income | 2019 | 2018 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
Credit cards |
1,647 | 1,608 | 1,279 | 2 | 29 | |||||||||||||||
Deposit accounts |
779 | 1,046 | 644 | (26) | 21 | |||||||||||||||
Insurance |
220 | 182 | 152 | 21 | 45 | |||||||||||||||
Financial fees |
69 | 70 | 64 | (1) | 8 | |||||||||||||||
Credit-related fees |
21 | 22 | 26 | (5) | (19) | |||||||||||||||
Foreign trade |
300 | 260 | 176 | 15 | 70 | |||||||||||||||
Collections |
241 | 202 | 148 | 19 | 63 | |||||||||||||||
Utility-bills collection services |
320 | 282 | 166 | 13 | 93 | |||||||||||||||
Mutual funds |
186 | 163 | 109 | 14 | 71 | |||||||||||||||
Other |
236 | 221 | 202 | 7 | 17 | |||||||||||||||
Total fee income |
4,019 | 4,056 | 2,966 | (1) | 36 | |||||||||||||||
Total expenditures |
(953) | (706) | (506) | 35 | 88 | |||||||||||||||
Net fee income |
3,066 | 3,350 | 2,460 | (8) | 25 |
Net fee income amounted to Ps.3,066 million, up 25% from the Ps.2,460 million recorded in the second quarter of the previous fiscal year. The increase in fees which stood out were those related to credit-cards (Ps.368 million or 29%) and to deposit accounts (Ps.135 million or 21%).
Net Income from Financial Instruments | 2019 | 2018 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
Government securities |
18,852 | 12,163 | 1,133 | 55 | 1,564 | |||||||||||||||
Argentine Central Bank |
19,301 | 11,622 | 1,612 | 66 | 1,097 | |||||||||||||||
Other |
(449) | 541 | (479) | (183) | (6) | |||||||||||||||
Private sector securities |
470 | 2,346 | 4 | (80) | 11,650 | |||||||||||||||
Derivative financial instruments |
(1,661) | 777 | 369 | (314) | (550) | |||||||||||||||
Forward transactions |
(1,626) | 795 | 373 | (305) | (536) | |||||||||||||||
Interest-rate swaps |
(35) | (18) | (4) | 94 | 775 | |||||||||||||||
Result from other financial assets / liabilities |
(16) | - | - | - | - | |||||||||||||||
Net income from financial instruments |
17,645 | 15,286 | 1,506 | 15 | 1,072 |
9 |
Net income from financial instruments for the Quarter amounted to Ps.17,645 million, up Ps.16,139 million from the Ps.1,506 million recorded in the same quarter of the 2018 fiscal year, as a consequence of the increase in results from government securities, due to a higher holding of and a higher yield on Argentine Central Bank paper (Leliq).
During the Quarter, a Ps.2,263 million profit from gold and foreign currency quotation differences was recorded, as compared to a Ps.760 million profit from the same quarter of the 2018 fiscal year. This result includes a Ps. 2,157 million profit from foreign-currency trading.
Other Operating Income | 2019 | 2018 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
Other financial income / (losses) (1) (2) |
(2) | 75 | 6 | (103) | (133) | |||||||||||||||
Fees from bundles of products (1) |
852 | 734 | 577 | 16 | 48 | |||||||||||||||
Rental of safe deposit boxes (1) |
152 | 120 | 104 | 27 | 46 | |||||||||||||||
Other fee income (1) |
177 | 136 | 98 | 30 | 81 | |||||||||||||||
Other adjustments and interest on miscellaneous receivables |
549 | 569 | 237 | (4) | 132 | |||||||||||||||
Other |
692 | 4,258 | 532 | (84) | 30 | |||||||||||||||
Total other operating income |
2,420 | 5,892 | 1,554 | (59) | 56 |
(1) Item included for calculating the efficiency ratio.
(2) Item included for calculating the financial margin.
Other Operating Income for the Quarter reached Ps.2,420 million, increasing Ps.866 million from the Ps.1,554 million profit recorded in the second quarter of the 2018 fiscal year.
Provisions for loan losses for the Quarter amounted to Ps.3,142 million, Ps.1,681 million higher than those recorded in the same quarter of the prior fiscal year, due to the evolution of credits in arrears in 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.3,321 million, increasing 56% from the same quarter of the 2018 fiscal year, mainly due to salary increase agreements with the union.
Administrative Expenses | 2019 | 2018 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
Fees and compensations for services |
577 | 85 | 134 | 579 | 331 | |||||||||||||||
Fees to directors and syndics |
9 | 8 | 7 | 13 | 29 | |||||||||||||||
Publicity, promotion and research expenses |
246 | 155 | 175 | 59 | 41 | |||||||||||||||
Taxes |
674 | 607 | 342 | 11 | 97 | |||||||||||||||
Maintenance |
367 | 273 | 260 | 34 | 41 | |||||||||||||||
Electricity and communications |
245 | 262 | 157 | (6) | 56 | |||||||||||||||
Stationery and office supplies |
65 | 32 | 24 | 103 | 171 | |||||||||||||||
Rentals (1) |
- | - | 90 | - | N/A | |||||||||||||||
Hired administrative services |
490 | 449 | 267 | 9 | 84 | |||||||||||||||
Security |
93 | 97 | 109 | (4) | (15) | |||||||||||||||
Insurance |
23 | 27 | 14 | (15) | 64 | |||||||||||||||
Other |
611 | 519 | 500 | 18 | 22 | |||||||||||||||
Total administrative expenses |
3,400 | 2,514 | 2,079 | 35 | 64 |
(1) As of fiscal year 2019, due to the application of IFRS 16, rentals are recognized as a right-of-use asset and a financial liability, consequently the results are exposed in depreciation and other operating expenses, respectively |
10 |
Administrative expenses for the Quarter totaled Ps.3,400 million, up 64% in the same period, as a consequence of higher fees and compensations for services for Ps.443 million (or 331%), and to taxes for Ps.332 million (97%), as compared with the second quarter of the 2018 fiscal year.
Depreciation and devaluation of assets amounted to Ps479 million, up 144% from the second quarter of the 2018 fiscal year. This loss includes Ps.103 million from financial leases.
Other Operating Expenses | 2019 | 2018 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
Contribution to the Deposit Insurance Fund (1) (2) |
178 | 153 | 91 | 16 | 96 | |||||||||||||||
Other financial expenses (1) (2) |
303 | 292 | 27 | 4 | 1,022 | |||||||||||||||
Turnover tax |
1,902 | 1,825 | 1,188 | 4 | 60 | |||||||||||||||
On financial income (1) (2) |
1,400 | 1,254 | 827 | 12 | 69 | |||||||||||||||
On fees (1) |
439 | 367 | 319 | 20 | 38 | |||||||||||||||
On other items |
63 | 204 | 42 | (69) | 50 | |||||||||||||||
Other fee-related expenses (1) |
906 | 911 | 666 | (1) | 36 | |||||||||||||||
Charges for other provisions |
782 | 60 | 289 | 1,203 | 171 | |||||||||||||||
Claims |
53 | 53 | 79 | - | (33) | |||||||||||||||
Other |
128 | 168 | 70 | (24) | 83 | |||||||||||||||
Total other operating expenses |
4,252 | 3,462 | 2,410 | 23 | 76 |
(1) | Item included for calculating the efficiency ratio. |
(2) | Item included for calculating the financial margin. |
Other operating expenses reached Ps.4,252 million, increasing Ps.1,842 million (76%) from the Ps.2,410 million recorded in the second quarter of the 2018 fiscal year.
The income tax charge was Ps.1,563 million, Ps.802 million higher than in the second quarter of the 2018 fiscal year. During such quarter, in accordance to the Income Tax Law and to the evolution of the consumer price index, this charge was adjusted by inflation for tax purposes.
11 |
SELECTED FINANCIAL INFORMATION
Balance Sheet | 2019 | 2018 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
Assets |
||||||||||||||||||||
Cash and due from banks |
127,019 | 130,542 | 91,103 | (3) | 39 | |||||||||||||||
Debt securities |
148,049 | 109,013 | 30,650 | 36 | 383 | |||||||||||||||
Net loans and other financing |
248,417 | 256,404 | 212,523 | (3) | 17 | |||||||||||||||
Other financial assets |
43,142 | 53,533 | 29,581 | (19) | 46 | |||||||||||||||
Equity investments in subsidiaries, associates and joint businesses |
265 | 216 | 208 | 23 | 27 | |||||||||||||||
Property, bank premises, equipment |
12,292 | 12,369 | 9,184 | (1) | 34 | |||||||||||||||
Intangible assets |
4,257 | 3,720 | 697 | 14 | 511 | |||||||||||||||
Other assets |
2,832 | 1,474 | 2,582 | 92 | 10 | |||||||||||||||
Assets available for sale |
294 | 206 | 243 | 43 | 21 | |||||||||||||||
Total assets |
586,567 | 567,477 | 376,771 | 3 | 56 | |||||||||||||||
Liabilities |
||||||||||||||||||||
Deposits |
409,171 | 410,170 | 261,270 | - | 57 | |||||||||||||||
Financing from financial entities |
21,402 | 14,244 | 20,626 | 50 | 4 | |||||||||||||||
Other financial liabilities |
47,719 | 45,134 | 28,397 | 6 | 68 | |||||||||||||||
Notes |
20,120 | 19,624 | 13,816 | 3 | 46 | |||||||||||||||
Subordinated notes |
10,973 | 10,983 | 7,444 | - | 47 | |||||||||||||||
Other liabilities |
16,938 | 15,720 | 8,776 | 8 | 93 | |||||||||||||||
Total liabilities |
526,323 | 515,875 | 340,329 | 2 | 55 | |||||||||||||||
Shareholders equity |
60,244 | 51,602 | 36,442 | 17 | 65 | |||||||||||||||
Foreign currency assets and liabilities |
||||||||||||||||||||
Assets |
227,598 | 214,276 | 148,391 | 6 | 53 | |||||||||||||||
Liabilities |
237,534 | 229,661 | 155,010 | 3 | 53 | |||||||||||||||
Net forward purchases/(sales) of foreign currency (1) |
8,810 | 13,866 | 7,661 | (36) | 15 | |||||||||||||||
Net global position in foreign currency |
(1,126) | (1,519) | 1,042 | (26) | (208) |
(1) | Recorded off-balance sheet. |
LEVEL OF ACTIVITY
Financing to the Private Sector(1) | 2019 | 2018 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
In pesos |
175,412 | 170,766 | 167,459 | 3 | 5 | |||||||||||||||
Loans |
130,734 | 129,715 | 138,567 | 1 | (6) | |||||||||||||||
UVA-adjusted loans |
22,582 | 19,843 | 10,405 | 14 | 117 | |||||||||||||||
Financial leases |
1,101 | 1,207 | 1,517 | (9) | (27) | |||||||||||||||
Debt securities |
381 | 452 | 625 | (16) | (39) | |||||||||||||||
Other financing (2) |
20,614 | 19,549 | 16,345 | 5 | 26 | |||||||||||||||
In foreign currency |
119,917 | 138,663 | 75,616 | (14) | 59 | |||||||||||||||
Loans |
100,442 | 109,802 | 62,655 | (9) | 60 | |||||||||||||||
Financial leases |
1,117 | 1,167 | 598 | (4) | 87 | |||||||||||||||
Debt securities |
2,907 | 4,601 | 3,035 | (37) | (4) | |||||||||||||||
Other financing (2) |
15,451 | 23,093 | 9,328 | (33) | 66 | |||||||||||||||
Total financing to the private sector |
295,329 | 309,429 | 243,075 | (5) | 21 |
(1) | Includes IFRS adjustment. |
(2) | Includes certain off-balance sheet accounts related to guarantees granted. |
As of June 30, 2019, the total financing to the private sector reached Ps.295,329 million, with a 21% increase from a year before, mainly as a consequence of the growth of the loan portfolio, both of UVA-adjusted loans (117%) and of foreign-currency loans (60%). Dollar-denominated loans measured in dollars increased 9% from the same quarter of the 2018 fiscal year.
12 |
Market Share (1) | 2019 | 2018 | Variation (bp) | |||||||||||||||||
Percentages, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
Total loans |
10.66 | 10.94 | 10.03 | (28) | 63 | |||||||||||||||
Loans to the private sector |
10.62 | 10.90 | 10.05 | (28) | 57 | |||||||||||||||
(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 Banks market share of loans to the private sector as of June 30, 2019, was 10.62%, increasing 57 bp from June 30, 2018.
Break down of loans and other financing | 2019 | 2018 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
Financial entities |
6,778 | 7,729 | 7,860 | (12) | (14) | |||||||||||||||
Loans |
6,771 | 7,728 | 7,856 | (12) | (14) | |||||||||||||||
Other financing |
7 | 1 | 4 | 600 | 75 | |||||||||||||||
Non-financial private sector and residents abroad |
254,445 | 259,449 | 209,646 | (2) | 21 | |||||||||||||||
Loans |
246,987 | 251,632 | 203,771 | (2) | 21 | |||||||||||||||
Overdrafts |
14,978 | 12,891 | 18,351 | 16 | (18) | |||||||||||||||
Promissory notes |
39,279 | 35,269 | 47,123 | 11 | (17) | |||||||||||||||
Mortgage loans |
12,041 | 11,954 | 10,388 | 1 | 16 | |||||||||||||||
Pledge loans |
2,394 | 954 | 1,090 | 151 | 120 | |||||||||||||||
Personal loans |
26,320 | 25,877 | 23,151 | 2 | 14 | |||||||||||||||
Credit-card loans |
68,733 | 68,323 | 61,116 | 1 | 12 | |||||||||||||||
Other Loans |
75,572 | 90,814 | 41,629 | (17) | 82 | |||||||||||||||
Accrued interest, adjustments and foreign currency quotation differences receivable |
8,878 | 6,872 | 2,102 | 29 | 322 | |||||||||||||||
Documented interest |
(1,208) | (1,322) | (1,179) | (9) | 2 | |||||||||||||||
Financial leases |
2,218 | 2,374 | 2,115 | (7) | 5 | |||||||||||||||
Other financing |
5,240 | 5,443 | 3,760 | (4) | 39 | |||||||||||||||
Non-financial public sector |
35 | - | 1 | N/A | 3,400 | |||||||||||||||
Total loans and other financing |
261,258 | 267,178 | 217,507 | (2) | 20 | |||||||||||||||
Allowances |
(12,841) | (10,774) | (4,984) | 19 | 158 | |||||||||||||||
Loans |
(12,697) | (10,659) | (4,918) | 19 | 158 | |||||||||||||||
Financial leases |
(33) | (31) | (25) | 6 | 32 | |||||||||||||||
Other financing |
(111) | (84) | (41) | 32 | 171 | |||||||||||||||
Net loans and other financing |
248,417 | 256,404 | 212,523 | (3) | 17 |
As of June 30, 2019, net loans and other financing after provisions amounted to Ps.248,417 million, growing 17% from June 30, 2018, mainly as a result of a 21% increase in loans to the private sector, as a consequence of the increase of other loans (82%).
Loans by Type of Borrower | 2019 | 2018 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
Large corporations |
95,248 | 102,208 | 80,789 | (7) | 18 | |||||||||||||||
SMEs |
52,414 | 53,097 | 39,949 | (1) | 31 | |||||||||||||||
Individuals |
99,556 | 96,128 | 84,063 | 4 | 18 | |||||||||||||||
Financial sector |
6,771 | 7,728 | 7,856 | (12) | (14) | |||||||||||||||
Residents abroad |
3,405 | 3,664 | 579 | (7) | 488 | |||||||||||||||
Other |
386 | 425 | 959 | (9) | (60) | |||||||||||||||
IFRS adjustment |
(3,987) | (3,890) | (2,567) | 2 | 55 | |||||||||||||||
Total loans |
253,793 | 259,360 | 211,628 | (2) | 20 | |||||||||||||||
Allowances |
(12,697) | (10,659) | (4,918) | 19 | 158 | |||||||||||||||
Net total loans |
241,096 | 248,701 | 206,710 | (3) | 17 |
13 |
Loans by Sector of Activity | 2019 | 2018 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
Financial sector |
6,771 | 7,728 | 7,856 | (12) | (14) | |||||||||||||||
Residents abroad |
3,405 | 3,664 | 579 | (7) | 488 | |||||||||||||||
Services |
17,714 | 14,076 | 14,103 | 26 | 26 | |||||||||||||||
Agriculture and livestock |
33,985 | 34,889 | 25,214 | (3) | 35 | |||||||||||||||
Consumer |
99,561 | 96,133 | 84,141 | 4 | 18 | |||||||||||||||
Retail and wholesale trade |
21,321 | 22,981 | 25,959 | (7) | (18) | |||||||||||||||
Construction |
3,077 | 3,324 | 3,248 | (7) | (5) | |||||||||||||||
Manufacturing industry |
50,555 | 59,050 | 43,571 | (14) | 16 | |||||||||||||||
Other |
21,391 | 21,405 | 9,524 | - | 125 | |||||||||||||||
IFRS adjustment |
(3,987) | (3,890) | (2,567) | 2 | 55 | |||||||||||||||
Total loans |
253,793 | 259,360 | 211,628 | (2) | 20 | |||||||||||||||
Allowances |
(12,697) | (10,659) | (4,918) | 19 | 158 | |||||||||||||||
Net total loans |
241,096 | 248,701 | 206,710 | (3) | 17 |
In the last twelve months, loans to the private sector registered growth, mainly those granted to large corporations (Ps.14,459 million or 18%) and to individuals (Ps.15,493 million or 18%). By sector of activity, the higher growth was recorded in the consumer sector (Ps.15,420 million or 18%), in the agricultural and livestock sector (Ps.8,771 million or 35%) and in the manufacturing industry (Ps.6,984 million or 16%).
Net Exposure to the Argentine Public Sector (1) | 2019 | 2018 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
Government securities net position |
159,626 | 124,015 | 33,343 | 29 | 379 | |||||||||||||||
Lebac |
- | - | 13,634 | - | (100) | |||||||||||||||
Leliq |
129,646 | 99,480 | 2,988 | 30 | 4,239 | |||||||||||||||
Bote |
10,513 | 10,510 | 3,948 | - | 166 | |||||||||||||||
Other |
19,467 | 14,025 | 12,773 | 39 | 52 | |||||||||||||||
Other receivables resulting from financial brokerage |
74 | 43 | 50 | 72 | 48 | |||||||||||||||
Loans and other financing |
42 | 1 | 4 | 4,100 | 950 | |||||||||||||||
Trust certificates of participation and securities |
32 | 42 | 46 | (24) | (30) | |||||||||||||||
Total exposure to the public sector |
159,700 | 124,058 | 33,393 | 29 | 378 |
(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 June 30, 2019, the Banks exposure to the public sector amounted to Ps.159,700 million, recording a 378% increase during the last twelve months. Excluding Central Bank paper, net exposure to the public sector reached Ps.30,054 million (5% of total assets), while as of June 30, 2018, it amounted to Ps.16,771 million (4% of total assets).
14 |
Deposits | 2019 | 2018 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
In pesos |
220,832 | 228,545 | 143,074 | (3) | 54 | |||||||||||||||
Current accounts |
42,206 | 39,559 | 33,940 | 7 | 24 | |||||||||||||||
Saving accounts |
58,024 | 56,157 | 41,651 | 3 | 39 | |||||||||||||||
Time deposits |
111,656 | 123,320 | 60,851 | (9) | 83 | |||||||||||||||
UVA-adjusted time deposits |
1,269 | 1,963 | 3,620 | (35) | (65) | |||||||||||||||
Other |
1,703 | 1,650 | 1,145 | 3 | 49 | |||||||||||||||
Interests and adjustments |
5,974 | 5,896 | 1,867 | 1 | 220 | |||||||||||||||
In foreign currency |
188,339 | 181,625 | 118,196 | 4 | 59 | |||||||||||||||
Saving accounts |
163,297 | 154,879 | 94,524 | 5 | 73 | |||||||||||||||
Time deposits |
23,929 | 25,749 | 22,963 | (7) | 4 | |||||||||||||||
Other |
1,093 | 950 | 658 | 15 | 66 | |||||||||||||||
Interests and adjustments |
20 | 47 | 51 | (57) | (61) | |||||||||||||||
Total deposits |
409,171 | 410,170 | 261,270 | - | 57 |
As of June 30, 2019, the Banks deposits amounted to Ps.409,171 million, representing a 57% increase during the last twelve months. Peso-denominated deposits increased 54% in the same period, mainly due to a Ps.50,805 million (83%) increase in time deposits and Ps.16,373 million (39%) in deposits in saving accounts. Dollar-denominated deposits increased 59% in the last twelve months (8% measured in dollar terms), as a consequence of the evolution of the exchange rate. Deposits in dollar-denominated saving accounts reached Ps.163,297 million, increasing 73%.
At the end of the Quarter, there were 4.9 million deposit accounts, 4% more than recorded a year before.
Market Share (1) | 2019 | 2018 | Variation (bp) | |||||||||||||||||
Percentages, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
Total deposits |
9.07 | 9.33 | 8.17 | (26) | 90 | |||||||||||||||
Private sector deposits |
10.68 | 11.46 | 10.44 | (78) | 24 | |||||||||||||||
(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 June 30, 2019, the Banks estimated market share of private sector deposits in the Argentine financial system was 10.68%, recording a 24 bp increase from a year before.
Financial Liabilities | 2019 | 2018 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
Financial entities |
21,402 | 14,244 | 20,626 | 50 | 4 | |||||||||||||||
Financing from credit-card purchases |
11,664 | 13,791 | 10,669 | (15) | 9 | |||||||||||||||
Notes |
20,120 | 19,624 | 13,816 | 3 | 46 | |||||||||||||||
Subordinated notes |
10,973 | 10,983 | 7,444 | - | 47 | |||||||||||||||
Creditors for purchases of foreign currency |
1,651 | 2,522 | 203 | (35) | 713 | |||||||||||||||
Collections on account of third parties |
7,760 | 7,579 | 4,099 | 2 | 89 | |||||||||||||||
Other financial liabilities |
26,644 | 21,242 | 13,426 | 25 | 98 | |||||||||||||||
Total financial liabilities |
100,214 | 89,985 | 70,283 | 11 | 43 |
Financial liabilities at the end of the Quarter amounted to Ps.100,214 million, Ps.29,931 million (43%) higher than the Ps.70,283 million recorded a year before. This growth was mainly due to the increase of notes (Ps.6,304 million or 46%) and of other financial liabilities (Ps.13,218 million or 98%), as a consequence of the evolution of the exchange rate.
15 |
ASSET QUALITY
Loan Portfolio Quality | 2019 | 2018 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
Non-accrual loans (1) |
11,755 | 10,236 | 4,808 | 15 | 144 | |||||||||||||||
With preferred guarantees |
583 | 475 | 319 | 23 | 83 | |||||||||||||||
With other guarantees |
868 | 844 | 429 | 3 | 102 | |||||||||||||||
Without guarantees |
10,304 | 8,917 | 4,060 | 16 | 154 | |||||||||||||||
Allowance for loan losses |
12,697 | 10,659 | 4,918 | 19 | 158 | |||||||||||||||
Relevant ratios (%) |
Variation (bp) | |||||||||||||||||||
Non-accrual loans to private-sector loans |
4.63 | 3.95 | 2.27 | 68 | 236 | |||||||||||||||
Allowance for loan losses to private-sector loans |
5.00 | 4.11 | 2.32 | 89 | 268 | |||||||||||||||
Allowance for loan losses to non-accrual loans |
108.01 | 104.13 | 102.29 | 388 | 572 | |||||||||||||||
Non-accrual loans with guarantees to non-accrual loans |
12.34 | 12.89 | 15.56 | (55) | (322) | |||||||||||||||
Cost of risk (2) |
4.77 | 7.03 | 2.98 | (226) | 179 | |||||||||||||||
(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 Banks non-accrual loan portfolio amounted to Ps.11,755 million as of June 30, 2019, representing 4.63% of total loans to the private-sector, increasing 236 bp from the 2.27% ratio of a year before.
The coverage of the non-accrual loan portfolio with allowances for loan losses reached 108.01% as of the end of the Quarter, as compared to 102.29% 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 Banks non-accrual portfolio represented 4.12% of total financing to the private-sector, and its coverage with allowances for loan losses reached 106.68%, as compared to 2.00% and 103.38% of a year before, respectively.
Analysis of Loan Loss Experience | 2019 | 2018 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
Allowance for loan losses at the beginning of the Quarter |
10,659 | 7,263 | 4,365 | 47 | 144 | |||||||||||||||
Changes in the allowance for loan losses |
||||||||||||||||||||
Provisions charged to income |
2,879 | 4,140 | 1,391 | (30) | 107 | |||||||||||||||
Charge offs |
(841) | (744) | (838) | 13 | - | |||||||||||||||
Allowance for loan losses at the end of the Quarter |
12,697 | 10,659 | 4,918 | 19 | 158 | |||||||||||||||
Charge to the income statement |
||||||||||||||||||||
Provisions charged to income (1) |
(2,879) | (4,140) | (1,391) | (30) | 107 | |||||||||||||||
Direct charge offs (1) |
(91) | (113) | (55) | (19) | 65 | |||||||||||||||
Bad debts recovered |
46 | 21 | 54 | 119 | (15) | |||||||||||||||
Net charge to the income statement |
(2,924) | (4,232) | (1,392) | (31) | 110 | |||||||||||||||
(1) Item included for calculating the cost of risk. |
During the Quarter, Ps.841 million were charged off against the allowance for loan losses and direct charges to the income statement for Ps.91 million were made.
16 |
CAPITALIZATION AND LIQUIDITY
Regulatory Capital | 2019 | 2018 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
Minimum capital required (A) |
29,485 | 30,411 | 26,112 | (3) | 13 | |||||||||||||||
Allocated to credit risk |
23,041 | 24,267 | 20,895 | (5) | 10 | |||||||||||||||
Allocated to market risk |
596 | 1,346 | 2,045 | (56) | (71) | |||||||||||||||
Allocated to operational risk |
5,848 | 4,798 | 3,172 | 22 | 84 | |||||||||||||||
Computable capital (B) |
60,788 | 56,132 | 42,560 | 8 | 43 | |||||||||||||||
Tier I |
46,709 | 41,635 | 32,870 | 12 | 42 | |||||||||||||||
Tier II |
14,079 | 14,497 | 9,690 | (3) | 45 | |||||||||||||||
Excess over required capital (B) - (A) |
31,303 | 25,721 | 16,448 | 22 | 90 | |||||||||||||||
Risk weighted assets |
357,941 | 369,470 | 317,755 | (3) | 13 | |||||||||||||||
Variation (bp) | ||||||||||||||||||||
Total capital ratio (%) |
16.98 | 15.19 | 13.39 | 179 | 359 | |||||||||||||||
Tier I capital ratio (%) |
13.05 | 11.27 | 10.34 | 178 | 271 |
As of June 30, 2019, the Banks computable capital amounted to Ps.60,788, Ps.31,303 million (106%) higher than the Ps.29,485 million capital requirement. As of June 30, 2018, this excess amounted to Ps.16,448 million (63%).
The minimum capital requirement increased Ps.3,373 million as compared to June 30, 2018, mainly due to the growth of the private-sector loan portfolio, which was due to the evolution of the exchange rate. Computable capital increased Ps.18,228 million in the same period, primarily as consequence of a Ps.13,839 million increase in Tier I, which was due to the increase in results that were partially offset by higher regulatory deductions. Tier II capital increased Ps.4,389 million as a consequence of the effect of the evolution of the exchange rate on the subordinated debt. The total capital ratio was 16.98%, increasing 359 bp during the last twelve months.
Liquidity | 2019 | 2018 | Variation (%) | |||||||||||||||||
Percentages, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
Cash and due from banks |
127,019 | 130,542 | 91,103 | (3) | 39 | |||||||||||||||
Government securities |
105,462 | 81,500 | 25,462 | 29 | 314 | |||||||||||||||
Call-money |
233 | - | 956 | - | (76) | |||||||||||||||
Overnight placements in correspondent banks |
4,254 | 4,771 | 1,154 | (11) | 269 | |||||||||||||||
Repurchase agreement transactions |
4,206 | 5,129 | 816 | (18) | 415 | |||||||||||||||
Escrow accounts |
6,625 | 5,400 | 4,138 | 23 | 60 | |||||||||||||||
Total liquid assets |
247,799 | 227,342 | 123,629 | 9 | 100 | |||||||||||||||
Liquidity ratios |
Variation (bp) | |||||||||||||||||||
Liquid assets (*) as a percentage of transactional deposits |
94.03 | 90.72 | 72.67 | 331 | 2,136 | |||||||||||||||
Liquid assets (*) as a percentage of total deposits |
60.56 | 55.43 | 47.32 | 513 | 1,324 |
(*) | 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 Banks bills), net call money interbank loans, short-term placements with correspondent banks and reverse repurchase agreement transactions with the local market. |
As of June 30, 2019, the Banks liquid assets represented 94.03% of the Banks transactional deposits and 60.56% of its total deposits, as compared to 72.67% and 47.32%, respectively, as of June 30, 2018.
17 |
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 | 2019 | 2018 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
Net interest income |
2,039 | 2,147 | 1,938 | (5) | 5 | |||||||||||||||
Net fee income |
2,950 | 2,959 | 2,213 | - | 33 | |||||||||||||||
Net results from financial instruments |
420 | 368 | 150 | 14 | 180 | |||||||||||||||
Gold and foreign currency quotation differences |
(35) | (10) | - | 250 | - | |||||||||||||||
Other operating income |
364 | 378 | 251 | (4) | 45 | |||||||||||||||
Loan loss provisions |
(1,435) | (1,419) | (928) | 1 | 55 | |||||||||||||||
Net operating income |
4,303 | 4,423 | 3,624 | (3) | 19 | |||||||||||||||
Personnel expenses |
(1,033) | (962) | (950) | 7 | 9 | |||||||||||||||
Administrative expenses |
(1,528) | (1,415) | (1,190) | 8 | 28 | |||||||||||||||
Depreciations and devaluations of assets |
(134) | (126) | (67) | 6 | 100 | |||||||||||||||
Other operating expenses |
(793) | (775) | (463) | 2 | 71 | |||||||||||||||
Operating income |
815 | 1,145 | 954 | (29) | (15) | |||||||||||||||
Income tax |
296 | (101) | (271) | (393) | (209) | |||||||||||||||
Net income |
1,111 | 1,044 | 683 | 6 | 63 | |||||||||||||||
|
||||||||||||||||||||
Profitability and Efficiency | 2019 | 2018 | Variation (bp) | |||||||||||||||||
Percentages, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
Return (1) on average assets |
5.30 | 8.10 | 6.56 | (280) | (126) | |||||||||||||||
Return (1) on average shareholders´ equity |
25.08 | 40.28 | 29.63 | (1,520) | (455) | |||||||||||||||
Financial margin (1) (2) |
18.51 | 15.89 | 17.86 | 262 | 65 | |||||||||||||||
Efficiency ratio (3) |
58.49 | 53.12 | 57.22 | 537 | 127 |
(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. |
During the Quarter, Tarjetas Regionales S.A. recorded a Ps.1,111 million net income, Ps.428 million (63%) higher than the figure recorded in the same quarter of 2018. This profit represented a 5.30% annualized return on average assets and a 25.08% return on average shareholders equity, as compared to 6.56% and 29.63%, respectively, from the second quarter of the 2018 fiscal year.
Net operating income amounted to Ps.4,303 million, increasing 19% from the second quarter of the 2018 fiscal year, mainly as a consequence of the 33% increase of the net fee income.
Provisions for loan losses for the Quarter amounted to Ps.1,435 million, 55% higher than the Ps.928 million recorded in the same quarter of the prior fiscal year.
18 |
SELECTED FINANCIAL INFORMATION
Balance Sheet | 2019 | 2018 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
Assets |
||||||||||||||||||||
Cash and due from banks |
984 | 1,247 | 682 | (21) | 44 | |||||||||||||||
Debt securities |
26 | - | - | - | - | |||||||||||||||
Net loans and other financing |
45,638 | 46,327 | 38,101 | (1) | 20 | |||||||||||||||
Other financial assets |
5,703 | 2,812 | 1,672 | 103 | 241 | |||||||||||||||
Property, bank premises, equipment |
1,446 | 1,494 | 701 | (3) | 106 | |||||||||||||||
Intangible assets |
526 | 462 | 327 | 14 | 61 | |||||||||||||||
Other non-financial assets |
1,991 | 1,090 | 898 | 83 | 122 | |||||||||||||||
Total assets |
56,314 | 53,432 | 42,381 | 5 | 33 | |||||||||||||||
Liabilities |
||||||||||||||||||||
Financing from financial entities |
406 | 370 | 1,813 | 10 | (78) | |||||||||||||||
Other financial liabilities |
24,871 | 23,307 | 17,247 | 7 | 44 | |||||||||||||||
Notes |
15,797 | 16,396 | 11,815 | (4) | 34 | |||||||||||||||
Other non-financial liabilities |
2,360 | 2,193 | 1,989 | 8 | 19 | |||||||||||||||
Total liabilities |
43,434 | 42,266 | 32,864 | 3 | 32 | |||||||||||||||
Shareholders equity |
12,880 | 11,166 | 9,517 | 15 | 35 |
ASSET QUALITY
Loan Portfolio Quality | 2019 | 2018 | Variation (%) | |||||||||||||||||
Percentages, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
Non-accrual loans (1) |
6,219 | 5,608 | 2,631 | 11 | 136 | |||||||||||||||
Allowances for loan losses |
5,772 | 5,153 | 2,802 | 12 | 106 | |||||||||||||||
Ratios (%) |
Variation (bp) | |||||||||||||||||||
Non-accrual loans to loans to the private sector |
12.17 | 11.55 | 6.44 | 62 | 573 | |||||||||||||||
Allowance for loan losses to loans to the private sector |
11.29 | 10.61 | 6.86 | 68 | 443 | |||||||||||||||
Allowance for loan losses to non-accrual loans |
92.81 | 91.89 | 106.50 | 92 | (1,369) | |||||||||||||||
Cost of risk (2) |
12.06 | 11.93 | 9.83 | 13 | 223 |
(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 | 2019 | 2018 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
Allowance for loan losses |
||||||||||||||||||||
At the beginning of the Quarter |
5,153 | 4,045 | 2,844 | 27 | 81 | |||||||||||||||
Changes in the allowance for loan losses |
||||||||||||||||||||
Provisions charged to income |
1,357 | 1,350 | 863 | 1 | 57 | |||||||||||||||
Reversals of allowances for loan losses |
(636) | (186) | - | 242 | - | |||||||||||||||
Charge offs (1) |
(102) | (56) | (905) | 82 | (89) | |||||||||||||||
Allowance for loan losses at the end of the Quarter |
5,772 | 5,153 | 2,802 | 12 | 106 | |||||||||||||||
Charge to the income statement |
||||||||||||||||||||
Provisions charged to income (2) |
(1,357) | (1,350) | (863) | 1 | 57 | |||||||||||||||
Direct charge offs (2) |
(81) | (67) | (61) | 21 | 33 | |||||||||||||||
Bad debts recovered |
62 | 39 | 74 | 59 | (16) | |||||||||||||||
Net charge to the income statement |
(1,376) | (1,378) | (850) | - | 62 |
(1) | Includes Ps.785 million from the sale of bad loans in the first quarter of 2019. |
(2) | Item included for calculating the cost of risk. |
19 |
GALICIA ADMINISTRADORA DE FONDOS
RESULTS FOR THE QUARTER
Income Statement | 2019 | 2018 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
Net results from financial instruments |
18 | 42 | 62 | (57) | (71) | |||||||||||||||
Gold and foreign currency quotation differences |
- | 1 | 1 | (100) | (100) | |||||||||||||||
Other operating income |
152 | 116 | 163 | 31 | (7) | |||||||||||||||
Net operating income |
170 | 159 | 226 | 7 | (25) | |||||||||||||||
Personnel and administrative expenses |
(30) | (33) | (34) | (9) | (12) | |||||||||||||||
Other operating expenses |
(8) | (8) | (12) | - | (33) | |||||||||||||||
Operating income |
132 | 118 | 180 | 12 | (27) | |||||||||||||||
Income tax |
(12) | (37) | (54) | (68) | (78) | |||||||||||||||
Net income |
120 | 81 | 126 | 48 | (5) |
ASSETS UNDER MANAGEMENT
Mutual Fund | Assets Under Management as of: | Variation | ||||||||||||||||||
In millions of pesos, except otherwise noted | 2Q19 | 1Q19 | 2Q18 | vs 1Q19 | vs 2Q18 | |||||||||||||||
Fima Premium |
48,102 | 39,462 | 19,977 | 22 | 141 | |||||||||||||||
Fima Ahorro Pesos |
14,081 | 14,471 | 16,786 | (3) | (16) | |||||||||||||||
Fima Ahorro Plus |
10,209 | 13,461 | 12,390 | (24) | (18) | |||||||||||||||
Fima Capital Plus |
201 | 284 | 400 | (29) | (50) | |||||||||||||||
Fima Renta en Pesos |
329 | 443 | 563 | (26) | (42) | |||||||||||||||
Fima Renta Plus |
165 | 251 | 348 | (34) | (53) | |||||||||||||||
Fima Abierto Pymes |
488 | 487 | 295 | - | 65 | |||||||||||||||
Fima Acciones |
374 | 336 | 433 | 11 | (14) | |||||||||||||||
Fima PB Acciones |
768 | 742 | 1,185 | 4 | (35) | |||||||||||||||
Fima Mix I |
8 | 7 | 238 | 14 | (97) | |||||||||||||||
Fima Renta Dólares I |
4,136 | 7,331 | 15,251 | (44) | (73) | |||||||||||||||
Fima Renta Dólares II |
1,549 | 1,865 | 5,056 | (17) | (69) | |||||||||||||||
Fima Renta Acciones Latinoamerica |
133 | 143 | - | (7) | - | |||||||||||||||
Fima Renta Fija Internacional |
5,953 | 1,627 | - | 266 | - | |||||||||||||||
Total Assets Under Management |
86,496 | 80,910 | 72,922 | 7 | 19 |
SELECTED FINANCIAL INFORMATION
Balance Sheet | 2019 | 2018 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
Assets |
||||||||||||||||||||
Cash and due from banks |
40 | 3 | 2 | 1,233 | 1,900 | |||||||||||||||
Loans and other financing |
- | - | 12 | - | (100) | |||||||||||||||
Other financial assets |
187 | 156 | 412 | 20 | (55) | |||||||||||||||
Other non-financial assets |
61 | 246 | 67 | (75) | (9) | |||||||||||||||
Total assets |
288 | 405 | 493 | (29) | (42) | |||||||||||||||
Liabilities |
||||||||||||||||||||
Other non-financial liabilities |
26 | 265 | 176 | (90) | (85) | |||||||||||||||
Total liabilities |
26 | 265 | 176 | (90) | (85) | |||||||||||||||
Shareholders equity |
262 | 140 | 317 | 87 | (17) |
20 |
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 | 2019 | 2018 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
Earned premium |
1,034 | 1,089 | 938 | (5) | 10 | |||||||||||||||
Incurred claims |
(75) | (173) | (137) | (57) | (45) | |||||||||||||||
Withdrawals |
(2) | (1) | - | 100 | - | |||||||||||||||
Life annuities |
(2) | (2) | (2) | - | - | |||||||||||||||
Acquisition and general expenses |
(568) | (551) | (478) | 3 | 19 | |||||||||||||||
Other income and expenses |
(8) | (2) | (1) | 300 | 700 | |||||||||||||||
Underwriting income |
379 | 360 | 320 | 5 | 18 | |||||||||||||||
Interest income |
120 | 111 | 105 | 8 | 14 | |||||||||||||||
Net results from financial instruments |
38 | 7 | 12 | 443 | 217 | |||||||||||||||
Gold and foreign currency quotation differences |
25 | (23) | 5 | (209) | 400 | |||||||||||||||
Other operating income |
79 | 95 | 42 | (17) | 88 | |||||||||||||||
Net operating income |
641 | 550 | 484 | 17 | 32 | |||||||||||||||
Personnel expenses |
(143) | (132) | (114) | 8 | 25 | |||||||||||||||
Administrative expenses |
(92) | (80) | (81) | 15 | 14 | |||||||||||||||
Depreciations and devaluations of assets |
(24) | (20) | (13) | 20 | 85 | |||||||||||||||
Other operating expenses |
- | - | (67) | - | (100) | |||||||||||||||
Operating income |
382 | 318 | 209 | 20 | 83 | |||||||||||||||
Income tax |
7 | (95) | (73) | (107) | (110) | |||||||||||||||
Net income |
389 | 223 | 136 | 74 | 186 | |||||||||||||||
Other comprehensive income |
(6) | 2 | (1) | (400) | 500 | |||||||||||||||
Total comprehensive income |
383 | 225 | 135 | 70 | 184 |
Profitability | 2019 | 2018 | Variation (pb) | |||||||||||||||||
Percentages, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
Return on average assets (1) |
41.07 | 27.18 | 19.58 | 1,389 | 2,149 | |||||||||||||||
Return on average shareholders equity (1) |
93.65 | 72.41 | 44.60 | 2,124 | 4,905 | |||||||||||||||
Efficiency ratio (2) |
55.36 | 50.69 | 51.01 | 467 | 435 | |||||||||||||||
Combined ratio (3) |
59.98 | 60.48 | 59.90 | (50) | 8 |
(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, withdrawals, life annuities, other income and expenses. |
21 |
SELECTED FINANCIAL INFORMATION
Balance Sheet | 2019 | 2018 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 2Q | 1Q | 2Q | vs 1Q19 | vs 2Q18 | |||||||||||||||
Assets |
||||||||||||||||||||
Cash and due from banks |
100 | 57 | 24 | 75 | 317 | |||||||||||||||
Debt securities |
8 | 62 | 606 | (87) | (99) | |||||||||||||||
Net loans and other financing |
427 | 527 | 87 | (19) | 391 | |||||||||||||||
Other financial assets |
1,781 | 1,318 | 1,021 | 35 | 74 | |||||||||||||||
Property, bank premises, equipment |
177 | 179 | 146 | (1) | 21 | |||||||||||||||
Intangible assets |
77 | 71 | 63 | 8 | 22 | |||||||||||||||
Assets for insurance contracts |
1,081 | 1,004 | 694 | 8 | 56 | |||||||||||||||
Other non-financial assets |
358 | 208 | 269 | 72 | 33 | |||||||||||||||
Total assets |
4,009 | 3,426 | 2,910 | 17 | 38 | |||||||||||||||
Liabilities |
||||||||||||||||||||
Financial entities |
6 | 18 | 10 | (67) | (40) | |||||||||||||||
Liabilities for insurance contracts |
1,272 | 1,232 | 869 | 3 | 46 | |||||||||||||||
Other non-financial liabilities |
869 | 698 | 690 | 24 | 26 | |||||||||||||||
Total liabilities |
2,147 | 1,948 | 1,569 | 10 | 37 | |||||||||||||||
Shareholders equity |
1,862 | 1,478 | 1,341 | 26 | 39 |
22 |
REGULATORY CHANGES
MINIMUM CASH REQUIREMENTS
As of June 1, 2019, the Argentine Central Bank decided to reduce by one percentage point the reserve requirement for non-face-to-face time deposits (online banking, web time deposits, etc.). The Argentine Central Bank also modified the methodology for calculating such reserve requirement in pesos, which will be determined using the average of the daily balances of the period prior to its integration, instead of considering the average balances of the current month.
In addition, effective as of July 1, 2019, the Argentine Central Bank reduced by three percentage points the minimum cash requirement for time deposits in pesos and increased three percentage points the amount that can be integrated with Leliq for certain time deposits.
CONTROLLING COMPANIES
The Argentine Central Bank provided, effective as of January 1, 2020, that financial entities whose controlling company is a holding company (i.e. not a financial entity) must comply with the rules regarding Minimum capital requirements of financial entities, Large exposures to credit risk, Liquidity coverage ratio and Stable net funding ratio on a consolidated basis, which will include such holding company and all of its subsidiaries of a financial nature.
INFLATION ADJUSTMENT
Through its Communiqué A 6651 the Argentine Central Bank established that the presentation of information restated in homogeneous currency shall be applied for financial periods beginning on or after January 1, 2020, in accordance with Law 27,468. Therefore, the criteria for restating the financial information established in IAS 29 has not been used. Its application would have widespread effects on the financial statements, and as a consequence the reported balances would be significantly affected. As of June 30, 2019, GFGs equity would have amounted to Ps.85,952 million and the profit for the first six months of the fiscal year would have been Ps.10,987 million, approximately.
This report is a summary analysis of GFGs 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 GFGs 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.
23 |
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