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 June, 2020

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.
June, 2020	Press Release regarding the Financial Results of the Registrant for the First Quarter of the 2020 Fiscal Year that ended on March 31, 2020.	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: June 10, 2020	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 FIRST QUARTER OF THE 2020 FISCAL YEAR THAT ENDED ON MARCH 31, 2020

Buenos Aires, Argentina, June 8, 2020 – Grupo Financiero Galicia S.A. (BYMA /NASDAQ: GGAL) announced its financial results for the first quarter of the 2020 fiscal year (the “Quarter”), which ended on March 31, 2020.

Beginning with the fiscal year that started on January 1, 2020, Grupo Financiero Galicia S.A. (“GFG” or “Grupo Financiero Galicia”) has applied the restatement criteria established by IAS 29 “Financial Information in Hyperinflationary Economies”, and the expected credit loss model, in accordance with Communication “A” 6847 of the Argentine Central Bank, which contemplates item 5.5 “Impairment’ of IFRS 9 “Financial Instruments’”. For comparative purposes, the information corresponding to the 2019 fiscal year was adjusted in accordance with the above mentioned standards and restated in constant currency, except as otherwise noted.

HIGHLIGHTS

Ø Comprehensive income attributable to GFG for the Quarter reached Ps.6,146 million, 41% lower than the Ps.10,334 million recorded in the same quarter of the 2019 fiscal year. Net income attributable to GFG amounted to Ps.8,324 million, 22% below the Ps.10,678 million recorded in the first quarter of the prior fiscal year. Net profit per share for the Quarter amounted to Ps.5.83, as compared to the Ps.7.48 per share recorded for the same quarter of the 2019 fiscal year.

Ø The results of the Quarter were mainly attributable to the income derived from GFG’s interest in Banco de Galicia y Buenos Aires S.A.U. (“Banco Galicia” or the “Bank”), for Ps.6,911 million, in Tarjetas Regionales S.A. (“Tarjetas Regionales”), for Ps.1,035 million, in Sudamericana Holding S.A. (“Sudamericana Holdings”), for Ps.274 million, and in Galicia Administradora de Fondos S.A. (“GAF”), for Ps.89 million, which were increased by a net operating income of Ps.68 million and partially offset by a Ps.62 million loss from the net monetary position, and also offset by personnel and administrative expenses of Ps.38 million.

Ø The Bank’s market share of loans to the private sector was 12.40%, and for deposits from the private sector it was 10.07%, increasing 151 basis points (“bp”) and decreasing 138 bp, respectively, as compared to March 31, 2019.

Ø As of the end of the Quarter, the minimum capital requirement amounted to Ps.41,783 million, increasing Ps.11,373 million (37%), and the computable capital was Ps.108,128 million, increasing Ps.51,997 million (93%), as compared to the first quarter of the 2019 fiscal year. The excess of computable capital over the minimum capital requirement amounted to Ps.66,345 million and the total capital ratio was 21.19%.

Conference Call:

June 10, 2020, 11:00 am Eastern Time

Call-in number: +1 323-794-2577

Conference ID: 9929578

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	2020				2019		Variation (%)
In millions of pesos, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
Financial Information
Assets		781,497		740,635		949,011		6		(18)
Net loans and other financing		390,820		391,374		449,288		-		(13)
Deposits		479,606		424,444		604,956		13		(21)
Shareholders’ equity attributable to GFG		126,742		120,595		110,156		5		15
Shares outstanding (in thousands of shares) (1)		1,426,765		1,426,765		1,426,765		-		-
Book value per share (in pesos)		88.82		84.51		77.19		431		1,163
Net income attributable to GFG		8,324		1,149		10,678		624		(22)
Net income per share (in pesos)		5.83		0.81		7.48		502		(165)

(1) 10 ordinary shares = 1 ADS.

Selected Ratios	2020				2019				Variation (bp)
Percentages, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
Return (1) on average assets (2)		4.44		1.76		4.56		268		(12)
Return (1) on average shareholders´ equity (2)		27.06		3.92		39.32		2,314		(1,226)
Financial Margin (2) (3)		21.80		21.49		18.20		31		360
Efficiency ratio (4)		43.05		75.29		43.05		(3,224)		-
Total capital ratio (5)		21.28		17.53		15.33		375		595
Non-performing loans / Private-sector loans		4.61		5.52		5.15		(91)		(54)
Allowance for loan losses / Private-sector loans		5.57		5.67		4.68		(10)		89
Allowance for loan losses / Non-accrual loans		120.88		102.64		90.91		1,824		2,997
Cost of risk (2)		5.14		4.97		3.76		17		138

(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, plus the result from the net monetary position.

(5) Banco Galicia consolidated with Tarjetas Regionales.

Market Indicators	2020				2019		Variation
In pesos, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
Market price									(bp)
Shares – BYMA		57.95		121.60		110.70		(6,365)		(5,275)
ADS – NASDAQ (in US$)		7.05		16.23		25.52		(918)		(1,847)
Price BYMA / book value		0.65		1.44		1.43		(79)		(78)
Average daily volume (in thousands of shares)									(%)
BYMA		1,803		1,590		1,260		13		43
NASDAQ (1)		11,221		13,412		9,494		(16)		18
Market share (%)									(bp)
Banco Galicia
Loans to the private sector		12.40		11.51		10.89		89		151
Deposits from the private sector		10.07		9.92		11.45		15		(138)
Galicia Administradora de Fondos S.A.		12.07		9.60		10.82		247		125

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

2

GRUPO FINANCIERO GALICIA

RESULTS FOR THE QUARTER

Income Statement	2020				2019		Variation (%)
In millions of pesos, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
Results from Equity Investments		8,366		1,165		10,731		618		(22)
Banco de Galicia y Buenos Aires S.A.U.		6,911		181		10,579		3,718		(35)
Tarjetas Regionales S.A.		1,035		780		(53)		33		2,053
Galicia Administradora de Fondos S.A.		89		(10)		64		(990)		39
Sudamericana Holding S.A.		274		48		141		471		94
Other subsidiaries		57		166		-		(66)		N/A
Net operating income		68		71		184		(4)		(63)
Administrative expenses		(38)		(37)		(43)		3		(12)
Other operating income and expenses		(1)		(1)		(7)		-		-
Results from the net monetary position		(62)		(50)		(145)		-		-
Income tax		(9)		1		(42)		(1,000)		(79)
Net income attributable to GFG		8,324		1,149		10,678		624		(22)
Other comprehensive income		(2,178)		983		(344)		(322)		(533)
Comprehensive income attributable to GFG		6,146		2,132		10,334		188		(41)

Net income attributable to GFG for the Quarter amounted to Ps.8,324 million, which represented a 4.44% annualized return on average assets and a 27.06% return on average shareholders’ equity.

The above mentioned results were mainly attributable to profits from GFG’s interests in Banco Galicia, for Ps.6,911 million, Tarjetas Regionales, for Ps.1,035 million, Sudamericana Holding, for Ps.274 million, and in GAF, for Ps.89 million.

SELECTED FINANCIAL INFORMATION – CONSOLIDATED

Balance Sheet	2020				2019		Variation (%)
In millions of pesos, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
Assets
Cash and due from banks		185,594		140,839		195,426		32		(5)
Debt securities		92,106		70,814		162,043		30		(43)
Net loans and other financing		390,820		391,374		449,288		-		(13)
Other financial assets		56,034		81,372		87,891		(31)		(36)
Property, bank premises, equipment		35,228		35,535		36,862		(1)		(4)
Intangible assets		9,871		9,371		8,400		5		18
Other assets		11,799		11,288		8,795		5		34
Assets available for sale		45		42		306		7		(85)
Total assets		781,497		740,635		949,011		6		(18)
Liabilities
Deposits		479,606		424,444		604,956		13		(21)
Financing from financial entities		23,802		24,496		21,552		(3)		10
Other financial liabilities		62,945		79,412		100,466		(21)		(37)
Notes		26,871		31,522		52,788		(15)		(49)
Subordinated notes		16,354		16,708		16,294		(2)		-
Other liabilities		41,845		40,338		39,953		4		5
Total liabilities		651,423		616,920		836,009		6		(22)
Shareholders’ equity attributable to third parties		3,332		3,120		2,846		7		17
Shareholders’ equity attributable to GFG		126,742		120,595		110,156		5		15
Total shareholder’s equity		130,074		123,715		113,002		5		15

3

Income Statement	2020				2019		Variation (%)
In millions of pesos, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
Net interest income		16,137		16,453		6,481		(2)		149
Interest income		35,594		36,881		33,963		(4)		5
Interest related expenses		(19,457)		(20,428)		(27,482)		(5)		(29)
Net fee income		7,040		5,797		8,742		21		(19)
Fee income		8,912		7,845		10,223		14		(13)
Fee related expenses		(1,872)		(2,048)		(1,481)		(9)		26
Net results from financial instruments		14,140		9,236		24,095		53		(41)
Gold and foreign currency quotation differences		1,042		3,926		(20)		(73)		5,310
Other operating income		4,081		1,448		9,793		182		(58)
Underwriting income from insurance business		908		3,840		1,046		(76)		(13)
Loan loss provisions		(4,922)		(5,200)		(4,050)		(5)		22
Net operating income		38,426		35,500		46,087		8		(17)
Personnel expenses		(6,128)		(7,377)		(6,199)		(17)		(1)
Administrative expenses		(6,181)		(8,054)		(5,776)		(23)		7
Depreciations and devaluations of assets		(1,557)		(1,489)		(1,248)		5		25
Other operating expenses		(5,885)		(6,496)		(7,498)		(9)		(22)
Operating income		18,675		12,084		25,366		55		(26)
Results from the net monetary position		(5,340)		(7,661)		(6,611)		(30)		(19)
Income tax		(4,799)		(3,115)		(8,087)		54		(41)
Net income		8,536		1,308		10,668		553		(20)
Net income attributable to third parties		212		159		(10)		33		(2,220)
Net income attributable to GFG		8,324		1,149		10,678		624		(22)
Other comprehensive income(1)		(2,178)		983		(344)		(322)		(533)
Total comprehensive income		6,358		2,291		10,324		178		(38)
Comprehensive income attributable to third parties		212		159		(10)		33		(2,220)
Comprehensive income attributable to GFG		6,146		2,132		10,334		188		(41)
(1) Net of income tax.
Additional Information	2020								2019
	1Q		4Q		3Q		2Q		1Q
Employees		9,554		9,718		9,824		9,888		9,926
Banco Galicia		6,040		6,118		6,247		6,256		6,205
Tarjetas Regionales		3,075		3,151		3,161		3,227		3,301
Galicia Administradora de Fondos		27		27		29		23		24
Sudamericana Holding		376		395		375		372		380
Other subsidiaries		36		27		12		10		16
Branches and other points of sales		517		528		545		552		558
Banco Galicia		326		326		325		325		325
Tarjetas Regionales S.A.		191		202		220		227		233
Deposit Accounts at Banco Galicia (in thousands)		5,427		5,279		5,140		4,965		4,781
Credit Cards (in thousands)		13,425		13,544		13,852		13,762		13,799
Banco Galicia		5,031		4,986		5,191		5,118		5,116
Tarjetas Regionales S.A.		8,395		8,558		8,661		8,644		8,684
GAF’ assets under management (millions of pesos)		122,332		88,128		83,367		117,183		120,034
Inflation, exchange rate and interest rates
Consumer price index(1) (%)		7.80		11.72		12.49		9.51		11.78
Consumer price index(1)		305.5515		283.4442		253.7102		225.5370		205.9571
Wholesale price index (IPIM) (%)		3.62		13.22		15.94		11.57		8.22
Acquisition value unit (UVA)		51.62		47.16		41.26		38.03		33.97
Exchange rate (Ps./US$)(2)		64.47		59.90		57.56		42.45		43.35
Badlar (quarterly averages)(3)		33.25		48.06		54.67		50.82		41.83

(1) Consumer price index published by the National Institute of Statistics (INDEC)

(2) Reference exchange rates in accordance with Communiqué “A” 3500 from the Argentine Central Bank as of the last working day of the Quarter.

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

4

BANCO GALICIA

HIGHLIGHTS

Ø Net income for the Quarter amounted to Ps.6,911 million, Ps.3,668 million (35%) lower than the figure recorded for same quarter of the 2019 fiscal year, mainly as a result of a 22% decrease in net operating income.

Ø Net operating income for the Quarter amounted to Ps.29,690 million, Ps.8,382 million lower than the Ps.38,072 million recorded in the first quarter of the 2019 fiscal year, mainly as a consequence of a decrease in net income from financial instruments and other operating income, which was partially offset by growth in net interest income.

Ø The credit exposure to the private sector reached Ps.378,807 million for the Quarter, down 14% from the Ps.438,003 million recorded in the first quarter of the 2019 fiscal year, and deposits reached Ps.481,629 million, down 21% from the Ps.608,566 million recorded in the same period. As of March 31, 2020, the Bank’s estimated market share of loans to the private sector was 12.40%, while its estimated market share of deposits from the private sector was 10.07%.

Ø The non-accrual loan portfolio represented 3.63% of total loans to the private sector, representing a decrease of 32 bp from the 3.95% recorded at the end of the same quarter of the prior fiscal year, while coverage with allowances for loan losses reached 117.83%.

Ø As of the end of the Quarter, the minimum capital requirement amounted to Ps.41,783 million (up Ps.11,373 million or 37%), and the computable capital amounted to Ps.108,128 million (up Ps.51,997 million or 93%). The excess of computable capital over the minimum capital requirement amounted to Ps.66,345 million, and the total capital ratio was 21.19%.

5

RESULTS FOR THE QUARTER

Income Statement	2020				2019		Variation (%)
In millions of pesos, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
Net interest income		12,205		13,562		2,858		(10)		327
Net fee income		3,838		4,120		5,201		(7)		(26)
Net results from financial instruments		13,304		8,483		23,337		57		(43)
Gold and foreign currency quotation differences		756		3,725		9		(80)		8,300
Other operating income		3,160		2,316		8,775		36		(64)
Loan-loss provisions		(3,573)		(4,365)		(2,108)		(18)		69
Net operating income		29,690		27,841		38,072		7		(22)
Personnel expenses		(4,386)		(5,421)		(4,490)		(19)		(2)
Administrative expenses		(4,440)		(6,227)		(3,874)		(29)		15
Depreciations and devaluations of assets		(1,135)		(1,049)		(905)		8		25
Other operating expenses		(4,798)		(5,495)		(5,981)		(13)		(20)
Operating income		14,931		9,649		22,822		55		(35)
Results from the net monetary position		(4,178)		(6,586)		(4,764)		(37)		(12)
Results from associates and joint businesses		30		22		11		36		173
Income tax		(3,872)		(2,904)		(7,490)		33		(48)
Net Income		6,911		181		10,579		3,718		(35)
Other comprehensive income (loss)		(2,157)		954		(347)		(326)		522
Total comprehensive income		4,754		1,135		10,232		319		(54)
Profitability and Efficiency	2020				2019		Variation ( bp)
Percentages, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
Return (1) on average assets		4.02		0.10		5.13		392		(111)
Return (1) on average shareholders’ equity		26.73		0.70		50.56		2,603		(2,383)
Financial margin(1)(2)		20.95		21.79		18.11		(84)		284
Efficiency ratio (3)		41.24		63.65		39.17		(2,241)		207

(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, plus the result from the net monetary position.

During the Quarter, net income attributable to Banco Galicia amounted to Ps.6,911 million, Ps.3,668 million (35%) lower than the Ps.10,579 million recorded for the same quarter of the previous fiscal year. This result was a consequence of an Ps.8,382 million (22%) lower net operating income, which was mainly due to a Ps.10,033 million (43%) decrease in the net income from financial instruments and a Ps.5,615 million (64%) decrease in other operating income, offset by a Ps.9,347 million (327%) increase in net interest income.

6

Net Interest Income	2020				2019		Variation (%)
In millions of pesos, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
Interest income		30,427		32,799		27,625		(7)		10
Private sector securities		—		(30)		65		(100)		(100)
Public Sector securities		3,049		1,449		1,056		110		189
Loans and other financing		25,492		29,060		26,152		(12)		(3)
Financial sector		776		1,100		694		(29)		12
Non-financial private sector		24,716		27,960		25,458		(12)		(3)
Overdrafts		2,711		3,203		3,255		(15)		(17)
Promissory notes		8,036		8,028		4,571		—		76
Mortgage notes		2,902		4,260		2,991		(32)		(3)
Pledge loans		146		169		77		(14)		90
Personal loans		3,292		3,209		3,423		3		(4)
Credit-card loans		6,459		7,521		9,127		(14)		(29)
Financial leases		104		153		222		(32)		(53)
Other		1,066		1,417		1,792		(25)		(41)
Repurchase agreement transactions		1,886		2,320		352		(19)		436
Interest expenses		(18,222)		(19,237)		(24,767)		(5)		(26)
Deposits from the non-financial private sector		(16,042)		(16,834)		(21,641)		(5)		(26)
Saving accounts		(2)		(1)		(1)		100		100
Time deposits and term investments		(13,611)		(15,388)		(19,634)		(12)		(31)
Other		(2,429)		(1,445)		(2,006)		68		21
Financing from financial institutions		(262)		(370)		(628)		(29)		(58)
Repurchase agreement transactions		(199)		(163)		(257)		22		(23)
Other interest-bearing liabilities		(274)		(362)		(288)		(24)		(5)
Notes		(1,445)		(1,508)		(1,953)		(4)		(26)
Net interest income		12,205		13,562		2,858		(10)		327

Net interest income for the Quarter amounted to Ps.12,205 million, representing a Ps.9,347 million (327%) increase, as compared to the Ps.2,858 million profit recorded for the same quarter of the 2019 fiscal year.

Interest income for the Quarter reached Ps.30,427 million, up 10% from the Ps.27,625 million recorded in the same quarter of the 2019 fiscal year. This increase was primarily a consequence of higher interest realized on promissory notes, amounting to Ps.3,465 million, on public sector securities, amounting to Ps.1,993 million, and from repurchase agreement transactions, for Ps.1,534 million.

Interest expenses amounted to Ps.18,222 million, down 26% from the same quarter of the 2019 fiscal year, mainly as a result of lower interest realized on time deposits and term investments, for Ps.6,023 million (31%).

7

Yield and Rates(1)			2020				2019		2020						Variation (%/ bp)
Average balances: in millions of pesos			1Q				4Q				1Q				vs 4Q19				vs 1Q19
Yields and rates: annualized nominal %	Av. B.		Int.		Av. B.		Int.		Av. B.		Int.		Av. B.		Int.		Av. B.		Int.
In pesos		376,198		42.33		303,415		51.78		370,518		51.69		24		(945)		2		(936)
Government securities		130,630		41.66		66,905		58.14		151,948		51.86		95		(1,648)		(14)		(1,020)
Loans		225,227		42.49		215,788		49.93		211,289		44.96		4		(744)		7		(247)
Other interest-earning assets		20,341		44.95		20,722		50.55		7,281		243.70		(2)		(560)		179		(19,875)
In foreign currency		94,853		16.29		119,585		4.75		159,664		5.35		(21)		1,154		(41)		1,094
Government securities		10,090		93.91		13,777		(15.94)		12,869		(13.99)		(27)		10,985		(22)		10,790
Loans		83,130		7.07		104,036		7.34		144,869		5.77		(20)		(27)		(43)		130
Other interest-earning assets		1,633		6.12		1,772		13.32		1,926		102.80		(8)		(720)		(15)		(9,668)
Interest-earning assets		471,051		37.09		423,000		38.49		530,182		37.74		11		(140)		(11)		(65)
In pesos		257,517		26.87		190,356		38.32		273,166		34.92		35		(1,145)		(6)		(805)
Saving accounts		47,110		0.98		42,138		1.65		46,701		0.98		12		(67)		1		-
Time deposits		194,145		32.43		134,530		49.03		203,610		42.17		44		(1,660)		(5)		(974)
Debt securities		11,108		34.39		9,747		42.47		16,093		35.89		14		(808)		(31)		(150)
Other interest-bearing liabilities		5,154		37.80		3,941		54.61		6,762		48.51		31		(1,681)		(24)		(1,071)
In foreign currency		156,924		2.02		167,237		2.34		254,386		1.33		(6)		(32)		(38)		69
Saving accounts		84,967		-		89,786		-		160,834		-		(5)		-		(47)		-
Time deposits		32,244		1.54		29,095		2.13		45,032		0.53		11		(59)		(28)		101
Debt securities		22,091		7.37		23,208		8.07		23,097		7.53		(5)		(70)		(4)		(16)
Other interest-bearing liabilities		17,622		5.90		25,148		5.68		25,423		5.51		(30)		22		(31)		39
Interest-bearing liabilities		414,441		17.46		357,593		21.50		527,552		18.72		16		(404)		(21)		(126)

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

The average interest-earning assets amounted to Ps.471,051 million, representing a Ps.59,131 million (11%) decrease as compared to the first quarter of the previous fiscal year which was primarily a consequence of the Ps.61,739 million (43%) decrease in the average dollar-denominated loan portfolio and a decrease of Ps.21,318 million (14%) in the average portfolio of government securities, which was partially offset by an increase in the average volume of peso-denominated loans, for Ps.13,938 million (7%), and of other interest-earning assets, for Ps.13,060 million (179%).

Average interest-bearing liabilities reached Ps.414,441 million, decreasing Ps.113,111 million (21%) during the same period, primarily due to a decrease in the average balance of dollar-denominated deposits (particularly in saving accounts which dropped Ps.75,867 million (47%)).

The average yield on interest-earning assets for the Quarter was 37.09%, representing a 65 bp decrease as compared to the same quarter of the prior fiscal year, mainly due to a decrease of 19,875 bp in the average yield on other interest-earning assets in pesos and of 9,668 bp on other interest-earning assets in dollars. Likewise, the average cost of interest-bearing liabilities was 17.46%, representing a 126 bp decrease as compared to the first quarter of the prior fiscal year that was mainly due to a 1,071 bp decrease in the average interest rate on other interest-bearing liabilities in pesos and a 974 bp decrease in the interest rate on peso-denominated time deposits.

8

Net Fee Income	2020				2019		Variation (%)
In millions of pesos, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
Credit cards		2,099		2,455		2,497		(15)		(16)
Deposit accounts		966		1,068		1,619		(10)		(40)
Insurance		293		243		283		21		4
Financial fees		51		59		108		(14)		(53)
Credit- related fees		104		30		33		247		215
Foreign trade		341		384		404		(11)		(16)
Collections		315		341		314		(8)		-
Utility-Bills collection services		460		513		436		(10)		6
Mutual Funds		279		222		252		26		11
Other		299		322		344		(7)		(13)
Total fee income		5,207		5,637		6,290		(8)		(17)
Total expenditures		(1,369)		(1,517)		(1,089)		(10)		26
Net fee income		3,838		4,120		5,201		(7)		(26)

Net fee income amounted to Ps.3,838 million, down 26% from the Ps.5,201 million recorded in the first quarter of the previous fiscal year. The decrease in fees which stood out were those related deposit accounts (for Ps.653 million or 40%).

Net Income from Financial Instruments	2020				2019		Variation (%)
In millions of pesos, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
Government securities		12,951		7,850		18,723		65		(31)
Argentine Central Bank		12,959		8,566		17,911		51		(28)
Other		(8)		(716)		812		(99)		(101)
Private sector securities		65		371		3,491		(82)		(98)
Derivative financial instruments		288		262		1,122		10		(74)
Forward transactions		270		274		1,149		(1)		(77)
Interest-rate swaps		18		(12)		(27)		(250)		(167)
Results from other financial assets/liabilities		-		-		1		-		(100)
Net income from financial instruments		13,304		8,483		23,337		57		(43)

Net income from financial instruments for the Quarter amounted to Ps.13,304 million, down Ps.10,033 million from the Ps.23,337 million recorded in the same quarter of the 2019 fiscal year as a consequence of the decrease in results from government securities, which was due to lower holdings of, and yields on, instruments issued by the Argentine Central Bank (Leliq).

During the Quarter, a Ps.756 million profit from gold and foreign currency quotation differences was recorded, as compared to a Ps.9 million profit recorded from the same quarter of the 2019 fiscal year. This result includes a Ps.751 million gain from foreign-currency trading.

Other Operating Income	2020				2019		Variation (%)
In millions of pesos, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
Other financial income(1)(2)		77		144		117		(47)		34
Fees from bundles of products(1)		1,389		1,096		1,114		27		25
Rental of safe deposit boxes(1)		284		208		186		37		53
Other fee income(1)		239		214		227		12		5
Other adjustments and interest on miscellaneous receivables		858		346		874		148		(2)
Other		313		308		6,257		2		(95)
Total other operating income		3,160		2,316		8,775		36		(64)

(1) Item included for calculating the efficiency ratio.

(2) Item included for calculating the financial margin.

9

Other operating income for the Quarter reached Ps.3,160 million, decreasing Ps.5,615 million from the Ps.8,775 million profit recorded in the first quarter of the 2019 fiscal year. It should be noted that in the first quarter of the 2019 fiscal year, other operating income was impacted by the sale of a 51% stake in Prisma Medios de Pagos S.A.

Provisions for loan losses for the Quarter amounted to Ps.3,573 million, Ps.1,465 million higher than the figure recorded in the same quarter of the prior fiscal year, due to the evolution of credits in arrears of the consumer portfolio and to higher regulatory provisions as a consequence of the increase in the volume of credit.

Personnel expenses amounted to Ps.4,386 million, decreasing 2% from the figure recorded for the same quarter of the 2019 fiscal year, mainly due to union agreements regarding salary increases, which were slightly below the evolution of inflation.

Administrative Expenses	2020				2019		Variation (%)
In millions of pesos, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
Fees and compensations for services		226		772		132		(71)		71
Fees to directors and syndics		12		9		13		33		(8)
Publicity, promotion and research expenses		203		240		237		(15)		(14)
Taxes		809		866		938		(7)		(14)
Maintenance and repairment of goods and IT		1,027		2,261		417		(55)		146
Electricity and communications		376		331		404		14		(7)
Stationery and office supplies		66		84		49		(21)		35
Hired administrative services		765		677		688		13		11
Security		114		109		150		5		(24)
Insurance		51		27		42		89		21
Other		791		851		804		(7)		(2)
Total administrative expenses		4,440		6,227		3,874		(29)		15

Administrative expenses for the Quarter totaled Ps.4,400 million, up 15% in the same period, as a consequence of higher maintenance and repairment of goods and IT expenses in the amount of Ps.610 million (146%), as compared to the first quarter of the 2019 fiscal year.

Depreciation and devaluation of assets amounted to Ps 1,135 million, up 25% from the first quarter of the 2019 fiscal year. This loss includes Ps.217 million from financial leases.

Other Operating Expenses	2020				2019		Variation (%)
In millions of pesos, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
Contribution to the Deposit Insurance Fund(1)(2)		176		205		237		(14)		(26)
Other financial expenses(1)(2)		97		412		435		(76)		(78)
Turnover tax		2,532		2,979		2,857		(15)		(11)
On financial income(1)(2)		1,737		2,064		1,969		(16)		(12)
On fees(1)		702		807		571		(13)		23
On other items		93		108		317		(14)		(71)
Other fee-related expenses(1)		1,048		1,527		1,412		(31)		(26)
Other provisions		741		6		697		12,250		(6)
Claims		65		125		82		(48)		(21)
Other		139		241		261		(42)		(47)
Total other operating expenses		4,798		5,495		5,981		(13)		(20)

(1) Item included for calculating the efficiency ratio.

(2) Item included for calculating the financial margin.

Other operating expenses reached Ps.4,798 million, decreasing Ps.1,183 million (20%) from the Ps.5,981 million recorded in the first quarter of the 2019 fiscal year.

10

The income tax charge was Ps.3,872 million, Ps.3,618 million lower than the figure recorded in the first quarter of the 2019 fiscal year. It is worth mentioning that, beginning in the second half of 2019, the tax inflation adjustment established by applicable income tax law began to be applied.

Other comprehensive loss for the Quarter amounted to Ps.2,157 million, as compared to a Ps.347 million loss recorded in the same period of the 2019 fiscal year. This increase was mainly due to the drop in the market value of the Bonar 24.

SELECTED FINANCIAL INFORMATION

Balance Sheet	2020				2019		Variation (%)
In millions of pesos, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
Assets
Cash and due from banks		183,837		139,215		193,668		32		(5)
Debt securities		92,221		70,822		161,624		30		(43)
Net loans and other financing		340,541		337,710		383,375		1		(11)
Other financial assets		41,247		72,614		82,320		(43)		(50)
Equity investments in subsidiaries, associates and joint businesses		355		333		699		7		(49)
Property, bank premises, equipment		31,061		31,329		32,358		(1)		(4)
Intangible assets		8,224		7,680		7,130		7		15
Other assets		6,123		5,720		4,559		7		34
Assets available for sale		45		42		306		7		(85)
Total assets		703,654		665,465		866,039		6		(19)
Liabilities
Deposits		481,629		428,869		608,566		12		(21)
Financing from financial entities		18,141		22,051		21,132		(18)		(14)
Other financial liabilities		29,959		43,374		66,726		(31)		(55)
Notes		17,588		20,383		29,113		(14)		(40)
Subordinated notes		16,354		16,708		16,294		(2)		-
Other liabilities		33,672		32,524		32,449		4		4
Total liabilities		597,343		563,909		774,280		6		(23)
Shareholders’ equity		106,311		101,556		91,759		5		16
Foreign currency assets and liabilities
Assets		190,414		216,554		318,510		(12)		(40)
Liabilities		193,011		214,778		340,725		(10)		(43)
Net forward purchases/(sales) of foreign currency (1)		1,393		26		20,571		5,258		(93)
Net global position in foreign currency		(1,204)		1,802		(1,644)		(167)		(27)

(1) Recorded off-balance sheet.

11

LEVEL OF ACTIVITY

Financing to the Private Sector(1)	2020				2019		Variation (%)
In millions of pesos, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
In pesos		275,800		251,182		232,299		10		19
Loans		240,900		214,289		192,419		12		25
UVA-adjusted loans		27,205		29,036		29,438		(6)		(8)
Financial leases		769		922		1,791		(17)		(57)
Debt securities		163		234		671		(30)		(76)
Other financing(2)		6,763		6,701		7,980		1		(15)
In foreign currency		103,007		125,324		205,704		(18)		(50)
Loans		79,943		99,250		162,899		(19)		(51)
Financial leases		1,505		1,639		1,731		(8)		(13)
Debt securities		157		310		6,826		(49)		(98)
Other financing(2)		21,402		24,125		34,248		(11)		(38)
Total financing to the private sector		378,807		376,506		438,003		1		(14)

(1) Includes IFRS adjustment.

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

As of March 31, 2020, the total financing to the private sector reached Ps.378,807 million, representing a 14% decrease from the same period of the prior fiscal year which mainly a consequence of the decline in the dollar-denominated loan portfolio (51%).

Market Share(1)	2020				2019		Variation ( bp)
Percentages, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
Total loans		12.23		10.91		10.91		132		132
Loans to the private sector		12.40		10.89		10.89		151		151

(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 March 31, 2020, was 12.40%, increasing 151 bp from March 31, 2019.

12

Breakdown of loans and other financing	2020				2019		Variation (%)
In millions of pesos, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
Financial entities		9.127		11.662		11.467		(22)		(20)
Loans		9.090		11.638		11.465		(22)		(21)
Other financing		37		24		2		54		1.750
Non-financial private sector and residents abroad		346.426		341.665		384.434		1		(10)
Loans		338.958		330.937		373.291		2		(9)
Overdrafts		37.169		17.852		19.125		108		94
Promissory notes		88.223		81.078		52.322		9		69
Mortgage loans		15.289		16.227		17.736		(6)		(14)
Pledge loans		3.312		3.459		1.415		(4)		134
Personal loans		29.038		28.637		38.390		1		(24)
Credit-card loans		96.047		102.698		101.362		(6)		(5)
Other Loans		52.190		66.088		134.697		(21)		(61)
Accrued interest, adjustments and foreign currency quotation differences receivable		18.882		16.322		10.205		16		85
Documented interest		(1.192)		(1.424)		(1.961)		(16)		(39)
Financial leases		2.274		2.561		3.522		(11)		(35)
Other financing		5.194		8.167		7.621		(36)		(32)
Non-financial public sector		-		8		-		(100)		-
Total loans and other financing		355.553		353.335		395.901		1		(10)
Allowances		(15.012)		(15.625)		(12.526)		(4)		20
Loans		(14.899)		(15.393)		(12.420)		(3)		20
Financial leases		(63)		(48)		(18)		31		250
Other financing		(50)		(184)		(88)		(73)		(43)
Net loans and other financing		340.541		337.710		383.375		1		(11)

As of March 31, 2020, net loans and other financing after provisions amounted to Ps.340,541 million, falling 11% from March 31, 2019, mainly due to a 9% decrease in loans to the private sector, which was a consequence of a 61% drop in other loans, offset by a 69% increase in promissory notes.

Loans by Type of Borrower	2020				2019		Variation (%)
In millions of pesos, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
Large corporations		136,940		120,334		151,633		14		(10)
SMEs		71,853		71,830		78,772		-		(9)
Individuals		130,545		135,891		142,612		(4)		(8)
Financial sector		9,090		11,638		11,465		(22)		(21)
Residents abroad		3,840		7,981		5,436		(52)		(29)
Other		958		1,356		600		(29)		60
IFRS adjustment		(5,178)		(6,447)		(5,762)		(20)		(10)
Total loans		348,048		342,583		384,756		2		(10)
Allowances		(14,899)		(15,393)		(12,420)		(3)		20
Net total loans		333,149		327,190		372,336		2		(11)

13

Loans by Sector of Activity	2020				2019		Variation (%)
In millions of pesos, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
Financial sector		9,090		11,638		11,465		(22)		(21)
Residents abroad		3,840		7,981		5,436		(52)		(29)
Services		39,230		30,072		20,883		30		88
Agriculture and livestock		49,585		51,532		51,760		(4)		(4)
Consumer		130,551		135,906		142,620		(4)		(8)
Retail and wholesale trade		30,292		24,903		34,094		22		(11)
Construction		5,513		4,851		4,931		14		12
Manufacturing industry		57,600		52,388		87,604		10		(34)
Other		27,525		29,758		31,725		(8)		(13)
IFRS adjustment		(5,178)		(6,446)		(5,762)		(20)		(10)
Total loans		348,048		342,583		384,756		2		(10)
Allowances		(14,899)		(15,393)		(12,420)		(3)		20
Net total loans		333,149		327,190		372,336		2		(11)

In the last twelve months, loans to the private sector decreased, particularly in those granted to large corporations (Ps.14,693 million or 10%) and individuals (Ps.12,067 million or 8%). By sector of activity, higher drops were recorded in the manufacturing industry (Ps.30,004 million or 34%) and in the consumer sector (Ps.12,069 million or 8%).

Net Exposure to the Argentine Public Sector(1)	2020				2019		Variation (%)
In millions of pesos, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
Government securities’ net position		112,813		87,210		183,880		29		(39)
Leliq		81,074		62,676		147,585		29		(45)
Botes		15,099		11,675		23,443		29		(36)
Other		16,640		12,859		12,852		29		29
Other receivables resulting from financial brokerage		63		32,402		15,637		(100)		(100)
Repurchase agreement transactions - BCRA		-		32,336		15,573		(100)		(100)
Loans and other financing		37		32		2		16		1,750
Trust certificates of participation and securities		26		34		62		(24)		(58)
Total exposure to the public sector		112,876		119,612		199,517		(6)		(43)

(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 March 31, 2020, the Bank’s exposure to the public sector amounted to Ps.112,876 million, recording a 43% decrease during the last twelve months. Excluding the exposure to the Argentine Central Bank (with respect to Leliq and repurchase agreement transactions), net exposure to the public sector reached Ps.31,802 million (5% of total assets), while as of March 31, 2019, it amounted to Ps.36,359 million (4% of total assets).

14

Deposits	2020				2019				Variation (%)
In millions of pesos, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
In pesos		339,366		271,146		339,074		25		-
Current accounts		80,778		73,148		58,696		10		38
Saving accounts		102,137		64,134		83,313		59		23
Time deposits		141,634		125,789		182,955		13		(23)
UVA-adjusted time deposits		6,319		808		2,912		682		117
Other		4,243		1,830		2,449		132		73
Interests and adjustments		4,255		5,437		8,749		(22)		(51)
In foreign currency		142,263		157,723		269,492		(10)		(47)
Saving accounts		110,934		130,415		229,815		(15)		(52)
Time deposits		27,885		26,228		38,200		6		(27)
Other		3,339		1,011		1,409		230		137
Interests and adjustments		105		69		68		52		54
Total deposits		481,629		428,869		608,566		12		(21)

As of March 31, 2020, the Bank’s deposits amounted to Ps.481,629 million, representing a 21% decrease during the last twelve months. Dollar-denominated deposits decreased by Ps.127,229 million (47%) as compared to the first quarter of the 2019 fiscal year. Peso-denominated deposits remained stable during the same period, with deposits in current accounts growing Ps.22,082 million (38%) and in saving accounts growing by Ps.18,824 million (23%), which were offset by a Ps.41,321 (23%) decrease in time deposits.

At the end of the Quarter, there were 5.4 million deposit accounts, 12% more than a year before.

Market Share(1)	2020				2019		Variation (%)
Percentages, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
Total deposits		8.54		8.23		9.33		31		(79)
Private sector deposits		10.07		9.92		11.45		15		(138)
(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 March 31, 2020, the Bank’s estimated market share of private sector deposits in the Argentine financial system was 10.07%, recording a 138 bp decrease from a year before.

Financial Liabilities	2020				2019		Variation (%)
In millions of pesos, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
Financial entities		18,141		22,051		21,132		(18)		(14)
Financing from credit-card purchases		14,217		18,685		20,460		(24)		(31)
Notes		17,588		20,383		29,113		(14)		(40)
Subordinated notes		16,354		16,708		16,294		(2)		-
Creditor from purchases of foreign currency		4		1,772		3,742		(100)		(100)
Collections on account of third parties		7,556		12,651		11,244		(40)		(33)
Other financial liabilities		8,182		10,266		31,280		(20)		(74)
Total financial liabilities		82,042		102,516		133,265		(20)		(38)

Financial liabilities at the end of the Quarter amounted to Ps.82,042 million, Ps.51,223 million (38%) lower than the Ps.133,265 million recorded a year before. This decline was mainly due to decreases of Ps.23,098 million (74%) in other financial liabilities and of Ps.11,525 million (40%) in notes.

15

ASSET QUALITY

Loan Portfolio Quality	2020				2019		Variation (%)
In millions of pesos, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
Non-accrual loans(1)		12,644		15,161		15,186		(17)		(17)
With preferred guarantees		1,803		1,387		705		30		156
With other guarantees		1,557		1,428		1,252		9		24
Without guarantees		9,284		12,346		13,229		(25)		(30)
Allowance for loan losses		14,899		15,393		12,420		(3)		20
Relevant ratios (%)								Variation ( bp)
Non-accrual loans to private-sector loans		3.63		4.43		3.95		(80)		(32)
Allowance for loan losses to private-sector loans		4.28		4.49		3.23		(21)		105
Allowance for loan losses to non-accrual loans		117.83		101.53		81.79		1,630		3,604
Non-accrual loans with guarantees to non-accrual loans		26.57		18.57		12.89		800		1,368
Cost of risk(2)		4.36		4.65		2.29		(29)		207
(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.12,644 million as of March 31, 2020, representing 3.63% of total loans to the private-sector, decreasing 32 bp from the 3.95% ratio recorded from a year before.

The coverage of the non-accrual loan portfolio with allowances for loan losses reached 117.83% as of the end of the Quarter, as compared to 81.79% recorded from the prior fiscal year.

In terms of total financing (defined as loans, certain other receivable financial asset accounts and guarantees granted) the Bank’s non-accrual portfolio represented 3.41% of total financing to the private-sector, and its coverage with allowances for loan losses reached 118.24%, as compared to 3.67% and 78.12% from the prior fiscal year, respectively. Additionally, provisions related to unused balances of credit-card loans and of overdrafts in current accounts reached 149.07%.

Analysis of Loan Loss Experience	2020				2019		Variation (%)
In millions of pesos, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
Allowance for loan losses at the beginning of the Quarter
Changes in the allowance for loan losses		15,393		14,486		13,153		6		17
Provisions charged to income
Provisions charged to income		3,391		3,891		1,936		(13)		75
Charge offs		(1,061)		(1,068)		(1,104)		(1)		(4)
Others		(1,645)		64		-		(2,670)		-
Effect of inflation		(1,179)		(1,980)		(1,565)		(40)		(25)
Allowance for loan losses at the end of the Quarter		14,899		15,393		12,420		(3)		20
Charge to the income statement
Provisions charged to income(1)		(3,391)		(3,891)		(1,936)		(13)		75
Direct charge offs(1)		(141)		(155)		(172)		(9)		(18)
Bad debts recovered		50		65		31		(23)		61
Net charge to the income statement		(3,482)		(3,981)		(2,077)		(13)		68
(1) Item included for calculating the cost of risk.

During the Quarter, Ps.1,061 million were charged off against the allowance for loan losses and direct charges to the income statement for Ps.141 million were made.

16

CAPITALIZATION AND LIQUIDITY

The minimum capital requirement and the corresponding integration are presented below. Balances are disclosed in accordance with applicable regulations in force for each period.

Regulatory Capital	2020				2019		Variation (%)
In millions of pesos, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
Minimum capital required (A)		41,783		37,662		30,410		11		37
Allocated to credit risk		32,409		29,149		24,267		11		34
Allocated to market risk		828		905		1,346		(9)		(38)
Allocated to operational risk		8,546		7,608		4,797		12		78
Computable capital (B)		108,128		80,785		56,131		34		93
Tier I		87,098		61,392		41,635		42		109
Tier II		21,030		19,393		14,496		8		45
Excess over required capital (B) (A)		66,345		43,123		25,721		54		158
Risk weighted assets		510,236		459,900		369,470		11		38
							Variation ( bp)
Total capital ratio (%)		21.19		17.57		15.19		362		600
Tier I capital ratio (%)		17.07		13.35		11.27		372		580

As of March 31, 2020, the Bank’s computable capital amounted to Ps.108,128 million, Ps.66,345 million (159%) higher than the Ps.41,783 million minimum capital requirement. As of March 31, 2019, this excess amounted to Ps.25,721 million (85%).

The minimum capital requirement increased Ps.11,373 million as compared to March 31, 2019, mainly due to the growth in the private-sector loan portfolio, which was primarily a result of the evolution of the foreign exchange rate. Computable capital increased by Ps.51,997 million in the same period, primarily as a consequence of a Ps.45,463 million increase in Tier I capital, which was due to an increase from the accounting of shareholders’ equity that resulted from the inflation adjustment recorded on non-monetary assets. The Tier II capital increased Ps.6,533 million as a consequence of the effect of the evolution of the foreign exchange rate on the subordinated debt. The total capital ratio was 21.19%, increasing 600 bp during the last twelve months.

Liquidity	2020				2019		Variation (%)
Percentages, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
Cash and due from banks		183,837		139,214		193,668		32		(5)
Government securities		63,925		47,025		130,488		36		(51)
Call-money		1,724		1,187		1,169		45		47
Overnight placements in correspondent banks		3,837		7,975		5,418		(52)		(29)
Repurchase agreement transactions		114		32,336		8,100		(100)		(99)
Escrow accounts		7,638		8,113		8,011		(6)		(5)
Total liquid assets		261,075		235,850		346,854		11		(25)
Liquidity ratios								Variation ( bp)
Liquid assets (*) as a percentage of transactional deposits		88.85		88.10		93.28		75		(443)
Liquid assets (*) as a percentage of total deposits		54.21		54.99		57.00		(78)		(279)

(*) 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 March 31, 2020, the Bank’s liquid assets represented 88.85% of the Bank’s transactional deposits and 54.21% of its total deposits, as compared to 93.28% and 57.00%, respectively, as of March 31, 2019.

17

TARJETAS REGIONALES

INFORMATION DISCLOSURE

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

RESULTS FOR THE QUARTER

Income Statement	2020				2019		Variation (%)
In millions of pesos, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
Net interest income		3,672		2,316		3,311		59		11
Net fee income		3,399		3,399		3,755		-		(9)
Net results from financial instruments		691		642		623		8		11
Gold and foreign currency quotation differences		234		132		(47)		77		598
Other operating income		745		804		1,009		(7)		(26)
Loan loss provisions		(1,349)		(906)		(1,942)		49		(31)
Net operating income		7,392		6,387		6,709		16		10
Personnel expenses		(1,462)		(1,554)		(1,491)		(6)		(2)
Administrative expenses		(1,599)		(1,685)		(1,739)		(5)		(8)
Depreciations and devaluations of assets		(363)		(339)		(294)		7		23
Other operating expenses		(1,060)		(942)		(1,497)		13		(29)
Operating income		2,908		1,867		1,688		56		72
Results from the net monetary position		(1,008)		(654)		(1,451)		54		(31)
Income tax		(653)		(273)		(301)		139		117
Net income		1,247		940		(64)		33		2,048
Profitability and Efficiency			2020		2019		Variation ( bp)
Percentages, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
Return(1) on average assets		7.17		5.37		(0.32)		180		749
Return(1) on average shareholders’ equity		26.37		20.83		(1.55)		554		2,792
Financial margin(1)(2)		25.84		23.33		15.90		251		994
Efficiency ratio (3)		53.83		68.48		63.91		(1,465)		(1,008)

(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, plus the result from the net monetary position.

During the Quarter, Tarjetas Regionales recorded a Ps.1,247 million net income, Ps.1,311 million higher than the loss recorded in the same quarter of the 2019 fiscal year. This profit represented a 7.17% annualized return on average assets and a 26.37% return on average shareholders’ equity, as compared to (0.33)% and (1.55)%, respectively, from the first quarter of the 2019 fiscal year.

Net operating income amounted to Ps.7,392 million, increasing 10% from the first quarter of the 2019 fiscal year.

Provisions for loan losses for the Quarter amounted to Ps.1,349 million, 31% lower than the Ps.1,942 million recorded in the same quarter of the prior fiscal year.

18

SELECTED FINANCIAL INFORMATION

Balance Sheet	2020				2019		Variation ( bp)
In millions of pesos, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
Assets
Cash and due from banks		2,167		4,449		1,702		(51)		27
Debt securities		96		-		-		-		-
Net loans and other financing		47,808		52,798		67,306		(9)		(29)
Other financial assets		12,731		6,333		4,203		101		203
Property, bank premises, equipment		3,641		3,672		4,006		(1)		(9)
Intangible assets		1,517		1,579		1,090		(4)		39
Other non-financial assets		3,151		3,043		1,890		4		67
Total assets		71,111		71,874		80,197		(1)		(11)
Liabilities
Financing from financial entities		6,063		3,167		401		91		1,412
Other financial liabilities		30,666		34,378		34,580		(11)		(11)
Notes		9,745		11,328		24,325		(14)		(60)
Other non-financial liabilities		5,034		4,646		4,149		8		21
Total liabilities		51,508		53,519		63,455		(4)		(19)
Shareholders’ equity		19,603		18,355		16,742		7		17

ASSET QUALITY

Loan Portfolio Quality	2020				2019		Variation (%)
Percentages, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
Non-accrual loans(1)		5,944		7,031		8,320		(15)		(29)
Allowances for loan losses		7,570		7,385		8,947		3		(15)
Ratios (%)								Variation ( bp)
Non-accrual loans to loans to the private sector		10.76		11.77		11.57		(101)		(81)
Allowance for loan losses to loans to the private sector		13.71		12.36		12.44		135		127
allowance for loan losses to non-accrual loans		127.36		105.04		107.54		2,232		1,982
Cost of risk (2)		9.76		6.86		11.35		290		(159)

(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	2020				2019		Variation (%)
In millions of pesos, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
Allowances for loan losses
At the beginning of the Quarter		7,385		9,173		8,198		(19)		(10)
Changes in the allowance for loan losses
Provisions charged to income		1,260		(334)		1,835		(477)		(31)
Reversals of allowances for loan losses		-		(657)		(276)		(100)		(100)
Charge offs(1)		(549)		(271)		(83)		103		561
Effect of inflation		(526)		(526)		(727)		-		(28)
Allowance for loan losses at the end of the Quarter		7,570		7,385		8,947		3		(15)
Charge to the income statement
Provisions charged to income(1)		(1,260)		334		(1,835)		(477)		(31)
Direct charge offs(1)		(88)		(1,359)		(205)		(94)		(57)
Bad debt recovered		10		65		61		(85)		(84)
Net charge to the income statement		(1,338)		(960)		(1,979)		39		(32)

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

19

GALICIA ADMINISTRADORA DE FONDOS

RESULTS FOR THE QUARTER

Income Statement	2020				2019		Variation (%)
In millions of pesos, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
Net results from financial instruments		28		34		65		(18)		(57)
Gold and foreign currency quotation differences		5		3		1		67		400
Other operating income		199		153		180		30		11
Net operating income		232		190		246		22		(6)
Personnel and administrative expenses		(69)		(105)		(52)		(34)		33
Other operating expenses		(12)		(17)		(12)		(29)		-
Operating income		151		68		182		122		(17)
Results from the net monetary position		(31)		(44)		(86)		(30)		(64)
Income tax		(31)		(34)		(29)		(9)		7
Net income		89		(10)		67		990		33

ASSETS UNDER MANAGEMENT

Mutual Fund	Assets Under Management as of:						Variation (%)
In millions of pesos, except otherwise noted	1Q20		4Q19		1Q19		vs 4Q19		vs 1Q19
Fima Premium		105,456		74,152		58,545		42		80
Fima Ahorro Pesos		4,176		2,872		21,469		45		(81)
Fima Ahorro Plus		5,317		2,945		19,970		81		(73)
Fima Capital Plus		164		122		421		34		(61)
Fima Renta en Pesos		248		250		657		(1)		(62)
Fima Renta Plus		194		157		372		24		(48)
Fima Abierto Pymes		590		630		722		(6)		(18)
Fima Acciones		244		433		498		(44)		(51)
Fima PB Acciones		430		745		1,101		(42)		(61)
Fima Mix I		129		62		10		108		1,190
Fima Renta Dolares I		2,187		2,220		10,876		(1)		(80)
Fima Renta Dolares II		595		727		2,767		(18)		(78)
Fima Renta Acciones Latinoamerica		59		125		212		(53)		(72)
Fima Renta Fija Internacional		2,543		2,688		2,414		(5)		5
Total Assets Under Management		122,332		88,128		120,034		39		2

20

SELECTED FINANCIAL INFORMATION

Balance Sheet	2020				2019		Variation (%)
In millions of pesos, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
Assets
Cash and due from banks		148		130		5		14		2,860
Other financial assets		365		329		231		11		58
Other non-financial assets		14		25		13		(44)		8
Total assets		527		484		249		9		112
Liabilities
Other non-financial liabilities		348		78		15		346		2,220
Total liabilities		348		78		15		346		2,220
Shareholders’ equity		179		406		234		(56)		(24)

21

SUDAMERICANA HOLDING

INFORMATION DISCLOSURE

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

RESULTS FOR THE QUARTER

Income Statement	2020				2019		Variation (%)
In millions of pesos, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
Earned premium		1,422		1,424		1,688		-		(16)
Incurred claims		(209)		(231)		(268)		(10)		(22)
Withdrawals		(2)		(2)		(3)		-		(33)
Life annuities		(3)		(3)		(3)		-		-
Acquisition and general expenses		(566)		(685)		(855)		(17)		(34)
Other income and expenses		(70)		(2)		(3)		3,400		2,233
Underwriting income		572		501		556		14		3
Interest income		209		250		123		(16)		70
Net results from financial instruments		22		26		58		15		(62)
Gold and foreign currency quotation differences		(7)		2		(37)		(450)		81
Other operating income		137		110		149		25		(8)
Net operating income		933		889		849		5		10
Personnel expenses		(213)		(261)		(203)		(18)		5
Administrative expenses		(110)		(191)		(91)		(42)		21
Depreciations and devaluations of assets		(54)		(83)		(49)		(35)		10
Operating income		556		354		506		57		10
Results from the net monetary position		(42)		(303)		(131)		(86)		(68)
Income tax		(201)		4		(215)		(5,125)		(7)
Net income		313		55		160		469		96
Other comprehensive income		(24)		33		3		173		(900)
Total comprehensive income		289		88		163		228		77

Profitability	2020				2019		Variation ( bp)
Percentages, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
Return on average assets(1)		25.81		4.32		12.08		2,149		1,373
Return on average shareholders’ equity(1)		54.81		9.30		27.00		4,551		2,781
Efficiency ratio (2)		43.21		61.18		54.96		(1,797)		(1,175)
Combined ratio(3)		51.64		77.44		66.74		(2,580)		(1,510)

(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.

22

SELECTED FINANCIAL INFORMATION

Balance Sheet	2020				2019		Variation (%)
In millions of pesos, except otherwise noted	1Q		4Q		1Q		vs 4Q19		vs 1Q19
Assets
Cash and due from banks		126		82		86		54		47
Debt securities		11		40		92		(73)		(88)
Net loans and other financing		789		283		782		179		1
Other financial assets		1,910		2,203		1,948		(13)		(2)
Property, bank premises, equipment		484		492		485		(2)		-
Intangible assets		130		111		179		17		(27)
Assets for insurance contracts		1,204		1,274		1,491		(5)		(19)
Other non-financial assets		369		330		315		12		17
Total assets		5,023		4,815		5,378		4		(7)
Liabilities
Financial entities		-		3		27		(100)		(100)
Liabilities for insurance contracts		1,581		1,588		1,828		-		(14)
Other non-financial liabilities		995		1,067		1,117		(7)		(11)
Total liabilities		2,576		2,658		2,972		(3)		(13)
Shareholders’ equity		2,447		2,157		2,406		13		2

23

RELEVANT INFORMATION

TARJETAS REGIONALES

Grupo Financiero Galicia and the minority shareholders of Tarjetas Regionales agreed to move forward with a planned corporate reorganization. Fedler S.A. and Dusner S.A., owners of 17% of the outstanding equity interests of Tarjetas Regionales, collectively, will be merged with and into Grupo Financiero Galicia. As a result, Grupo Financiero Galicia will obtain 100% ownership of Tarjetas Regionales’ outstanding equity interests.

PLAY DIGITAL

Banco Galicia, together with fellow banking institutions Santander and Banco BBVA, have started the process of setting up a company to be called Play Digital S.A., which will focus on developing and marketing payment-related solutions for applicable customers that will be linked to applicable bank accounts in the financial system.

ACQUISITION OF A BROKER-DEALER COMPANY (OR “ALYC” FOR ITS INITIALS IN SPANISH)

Grupo Financiero Galicia acquired 100% of the shares of 34 Grados al Sur Securities SA, a broker-dealer company, for a total amount of US$ 441 thousand.

COVID-19

The emergence and spread of Covid-19 has generated various consequences on business and economic activities worldwide. Starting in mid-March, when the virus began to spread in Argentina, the Argentine National Government implemented a series of measures aimed at reducing the contagion, providing for preventive and compulsory social isolation from March 20 to June 28, 2020 (a date that may be extended if the Government so provides), and allowing the free movement of only those persons linked to the provision / production of services and products declared essential. Additionally, the Argentine Central Bank and other agencies established regulations whose objectives are focused on providing assistance to sectors whose activities were affected by the pandemic and to health care for the community in general.

The total scope of Covid-19 and its impact on the global and Argentine economy are still unknown. Although, as of the date of this report, Grupo Financiero Galicia and its subsidiaries have suffered a limited impact on their results as a consequence of the pandemic, the impact of a lower level of activity and of higher unemployment could be significant in the future.

The Board of Directors of GFG continue to analyze the evolution of the situation and take all measures within its power to guarantee business continuity and to preserve the health and safety of its employees, customers and other stakeholders. Among the actions carried out and protocols put into place in accordance with the regulations and procedures passed by the Argentine National Government and of the Argentine Central Bank, the following stand out: certain subsidiaries of GFG created interdisciplinary committees responsible for designing and arranging various protocols and procedures for the provision of services; employees carry out their tasks remotely from their homes, except for those who have activities that require their physical presence (such as, for example, cash management logistics and customer service); branch operations can only be carried out following a prior request for an appointment; various lines of credit were made available to clients with facilities, such as reduction of rates, grace periods and extension of payment terms; subsidies granted by the government were credited to customer accounts and through the Banelco ATM network; new free accounts were opened for retirement and subsidy beneficiaries; processes were modified so that they can be done completely online through websites and / or mobile applications, without having to go to branches; new capabilities were designed, such as the ability to withdraw money from ATMs and self-service terminals without a debit card; donations were made to various health centers, municipalities and families in vulnerable situations; and solidarity campaigns were launched to promote customer collaboration and additional contribution from GFG’s subsidiaries.

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REGULATORY CHANGES

In connection with the foregoing, the Argentine Central Bank has established certain regulations and protocols, of which the following stand out: (i) attention to customers by prior request of an appointment; (ii) the suspension of the collection of ATM fees; (iii) the suspension, until December 31, 2020, of dividend distributions; (iv) the extension of credit card maturities; (v) financing of unpaid credit card balances at a maximum rate of 43%; (vi) the granting of zero-rate financing to self-employed people; (vii) the granting of financing to Micro SMEs at a 24% nominal annual interest rate; (viii) a minimum interest rate on time deposits equivalent to 79% of the interest rate on Leliq; and (ix) controls on the foreign exchange market.

Additionally, to promote the granting of financing to sectors affected by Covid-19, the Argentine Central Bank implemented certain reductions on reserve requirements.

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

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

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