6-K

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 Registrant’s name into English)

Tte. Gral. Juan D. Perón 430, 25^th 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

EX-99.1

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 Galicia’s 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 Bank’s 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 GFG’s 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 Bank’s 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 Bank’s 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 Bank’s 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 Bank’s 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 Bank’s 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 Bank’s 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 Bank’s 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 Bank’s 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 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 June 30, 2019, the Bank’s liquid assets represented 94.03% of the Bank’s 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.

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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)

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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			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, GFG’s 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 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.

23