GGAL Grupo Financiero Galicia SA

 

 

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, 2015

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-            

 

 

 

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FORM 6-K

Commission File No. 0-30852

 

Month Filed		Event and Summary		Exhibit No.
August, 2015		Financial results of the Registrant for the second quarter ended June 30, 2015.			99.1

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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 7, 2015				By:		/s/ Pedro Alberto Richards
				Name:		Pedro Alberto Richards
				Title:		Chief Executive Officer

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

For more information contact:

Pedro A. Richards

Chief Executive Officer

Telefax: (5411) 4343-7528

investors@gfgsa.com

www.gfgsa.com

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

QUARTER ENDED ON JUNE 30, 2015

Buenos Aires, Argentina, August 6, 2015 – Grupo Financiero Galicia S.A. (“Grupo Financiero Galicia”; Buenos Aires Stock Exchange: GGAL /NASDAQ: GGAL) announced its financial results for the quarter ended on June 30, 2015.

HIGHLIGHTS

 

•

Net income for the quarter ended June 30, 2015, amounted to Ps.949 million, 36.9% higher than the Ps.693 million profit recorded in the second quarter of fiscal year 2014. The profit per share for the quarter amounted to Ps.0.73, compared to Ps.0.53 per share for the same quarter of fiscal year 2014.

 

•

The result of the quarter was mainly attributable to the income derived from its interest in Banco de Galicia y Buenos Aires S.A. (“Banco Galicia” or the “Bank”) (Ps.878 million), in Sudamericana Holding S.A. (Ps.67 million), and in Galicia Administradora de Fondos S.A. (Ps.23 million) and partially offset by administrative and financial expenses of Ps.30 million.

 

•

As of June 30, 2015, Grupo Financiero Galicia and its subsidiaries had a staff of 12,047 employees, had a network of 651 branches and other points of contact with clients, managed 3.2 million deposit accounts and 12.6 million credit cards.

CONFERENCE CALL

 

On Friday, August 7, 2015 at 11:00 A.M. Eastern Standard Time (12:00 PM Buenos Aires Time), GFG will host a conference call to review these results. The call-in number is: 719-325-2362 – Conference ID: 1260339.

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GRUPO FINANCIERO GALICIA S.A.

RESULTS FOR THE SECOND QUARTER

 

		In millions of pesos, except percentages
Table I:						FY2015				FY2014				Variation (%)
Net Income by Business		2nd Q				1st Q				2nd Q				2Q15 vs 1Q15				2Q15 vs 2Q14
Income from Equity Investments in:
Banco de Galicia y Buenos Aires S.A.			878				881				647				(0.3	)			35.7
Sudamericana Holding S.A.			67				65				51				3.1				31.4
Galicia Administradora de Fondos S.A. (1)			23				18				8				27.8				187.5
Other companies (2)			6				3				3				100.0				100.0
Deferred tax adjustment (3)			8				21				15				(61.9	)			(46.7	)
Administrative Expenses			(7	)			(7	)			(6	)			—				16.7
Financial Results			(23	)			(20	)			(23	)			15.0				—
Other income and expenses			(3	)			(3	)			(2	)			—				50.0
Net Income			949				958				693				(0.9	)			36.9

 

(1)	Equity Investment acquired in April 2014 to Banco Galicia.

(2)	Includes the results from our interests in Compañía Financiera Argentina S.A. (3%), Galicia Warrants S.A. (87.5%) and Net Investment S.A. (87.5%).

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

 

		In pesos, except stated otherwise and percentages
Table II:		FY2015				FY2014				Six Months Ended
Principal Indicators		2nd Q				2nd Q				06/30/15				06/30/14
Earnings per Share
Average Shares Outstanding (in thousands)			1,300,265				1,300,265				1,300,265				1,300,265
Earnings per Share (1)			0.73				0.53				1.47				1.17
Book Value per Share(1)			9.27				6.49				9.27				6.49
Closing Price
Shares - Buenos Aires Stock Exchange			24.60				14.75
ADS - Nasdaq (in dollars)			18.79				14.65
Price/Book Value			2.65				2.27
Average Daily Volume (amounts in thousands)
Buenos Aires Stock Exchange			689				1,414				795				1,254
Nasdaq (2)			4,142				6,315				4,570				5,260
Profitability (%)
Return on Average Assets (3)			3.46				3.27				3.66				3.68
Return on Average Shareholders´ Equity (3)			32.52				34.32				34.06				39.27

 

(1)	10 ordinary shares = 1 ADS.

(2)	Expressed in equivalent shares.

(3)	Annualized.

In the second quarter of fiscal year 2015 Grupo Financiero Galicia recorded a Ps.949 million profit, which represented a 3.46% annualized return on average assets and a 32.52% return on average shareholders’ equity.

This result was mainly due to profits from its interest in Banco Galicia (Ps.878 million) which accounts for 92.5% of Grupo Financiero Galicia’s net income.

 

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Grupo Financiero Galicia S.A. – Selected Financial Information – Consolidated Data		In millions of pesos
						FY2015												FY2014
		2nd Q				1st Q				4th Q				3rd Q				2nd Q
Consolidated Balance Sheet
Cash and due from Banks			10,876				11,590				16,959				14,478				14,688
Government and Corporate Securities			19,661				15,128				10,010				10,974				10,323
Net Loans			79,663				72,139				66,608				61,579				58,846
Other Receivables Resulting from Financial Brokerage			13,987				9,802				6,798				6,970				6,473
Equity Investments in other Companies			51				52				52				51				57
Bank Premises and Equipment. Miscellaneous and Intangible Assets			4,069				3,904				3,759				3,464				3,307
Other Assets			3,676				3,698				3,128				3,129				2,727
Total Assets			131,983				116,313				107,314				100,645				96,421
Deposits			77,242				68,600				64,666				59,931				58,563
Other Liabilities Resulting from Financial Brokerage			35,153				28,899				25,401				24,650				23,392
Subordinated Notes			2,250				2,103				2,066				1,969				1,917
Other Liabilities			4,394				4,643				4,154				4,002				3,456
Minority Interest			891				863				781				729				660
Total Liabilities			119,930				105,108				97,068				91,281				87,988
Shareholders´ Equity			12,053				11,205				10,246				9,364				8,433
Consolidated Income Statement
Financial Income			5,820				5,569				4,976				4,884				4,945
Financial Expenses			(3,171	)			(2,796	)			(2,763	)			(2,344	)			(2,741	)
Gross Brokerage Margin			2,649				2,773				2,213				2,540				2,204
Provisions for Loan Losses			(484	)			(591	)			(517	)			(646	)			(566	)
Income from Services. Net			1,851				1,780				1,600				1,575				1,345
Income from Insurance Activities			429				392				369				302				302
Administrative Expenses			(3,079	)			(2,768	)			(2,522	)			(2,356	)			(2,291	)
Minority Interest			(66	)			(82	)			(77	)			(70	)			(47	)
Income from Equity Investments			26				26				50				112				23
Net Other Income			166				94				176				95				127
Income Tax			(543	)			(666	)			(409	)			(621	)			(404	)
Net Income			949				958				883				931				693

 

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Grupo Financiero Galicia S.A. – Additional Information
						FY2015												FY2014
		2nd Q				1st Q				4th Q				3rd Q				2nd Q
Physical Data (Number of)
Employees			12,047				12,080				12,012				11,971				12,205
Banco Galicia			5,479				5,485				5,374				5,317				5,344
Regional Credit-Card Companies			5,097				5,174				5,232				5,346				5,447
Compañía Financiera Argentina			1,147				1,119				1,112				1,026				1,139
Sudamericana Holding			273				252				242				229				222
Galicia Administradora de Fondos			17				16				16				16				15
Other companies			34				34				36				37				38
Branches			525				528				527				526				526
Bank Branches			260				260				261				261				261
Regional Credit-Card Companies			207				209				207				206				206
Compañía Financiera Argentina			58				59				59				59				59
Other Points of Sale			126				126				126				126				126
Regional Credit-Card Companies			90				90				90				90				90
Compañía Financiera Argentina			36				36				36				36				36
Deposit Accounts (in thousands)			3,193				3,028				3,006				2,948				2,884
Credit Cards (in thousands)			12,570				12,181				11,933				11,631				11,223
Banco Galicia			3,090				2,970				2,882				2,800				2,692
Regional Credit-Card Companies			9,348				9,045				8,880				8,676				8,420
Compañía Financiera Argentina			132				166				171				155				111
Inflation and Exchange Rates
Retail Price Index (%) (1)			3.17				3.42				3.40				4.19				4.59
Wholesale Price Index (I.P.I.M.) (%) (1)			3.57				1.44				3.12				4.64				5.18
C.E.R. Coefficient (%) (1)			3.51				3.13				3.83				4.13				6.33
Exchange Rate (Pesos per US$) (2)			9.0865				8.8197				8.5520				8.4643				8.1327
Rates (quarterly averages(3))
Badlar (4)			20.52				20.59				19.95				21.17				24.66
Reference Interest Rate			26.30				26.83				26.66				26.81				N/A
Minimum Interest Rate on 30 to 44 days Time Deposits (5)			22.88				23.34				23.19				N/A				N/A
Maximum Interest Rate on Personal Loans:
Group I			38.13				38.90				38.65				38.87				N/A
Group II			47.34				48.29				47.98				48.26				N/A
Interest Rate on Credit Line for Investment Projects			19.00				19.00				19.50				19.50				17.50

 

(1)	Variation within the quarter.

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

(3)	Except for Credit Line for Investment Projects, which corresponds to the interest rate established by regulations for each period.

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

(5)	Minimum interest rate on time deposits for individuals for amounts up to Ps.350,000.

 

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BANCO DE GALICIA Y BUENOS AIRES S.A.

HIGHLIGHTS

 

•

Net income for the second quarter amounted to Ps.878 million, Ps.205 million higher than in the same quarter of fiscal year 2014, reaching Ps.1,759 million during the first six months of fiscal year 2015.

 

•

The growth of results when compared to the second quarter of fiscal year 2014 was mainly due to the 27.4% growth in operating income(1) partially offset by the 34.2% increase in administrative expenses.

 

•

The credit exposure to the private sector reached Ps.92,297 million, up 31.7% during the last twelve months, and deposits reached Ps.77,356 million, up 31.3% during the same period. As of June 30, 2015, the Bank’s estimated market share of loans to the private sector was 9.14% while its estimated market share of deposits from the private sector was 8.75%.

 

•

In the framework of the Credit Line for Productive Investment Projects, as of June 30, 2015, the Bank completed the placement of the first tranche of the 2015 quota. As of the end of the quarter, the outstanding amount of loans related to this credit line reached Ps.8,372 million.

 

•

As of June 30, 2015, shareholders’ equity amounted to Ps.11,658 million, and the computable capital was Ps.11,536 million, representing a Ps.3,543 million excess capital (or 44.3%). The capital ratio was 16.03%.

INFORMATION DISCLOSURE

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

The Bank’s consolidated financial statements and the figures included in the different tables of this report correspond to Banco de Galicia y Buenos Aires S.A., Banco Galicia Uruguay S.A. (in liquidation), Galicia Cayman S.A. (until September 30, 2014, as on October 1 it was merged with Banco Galicia), Tarjetas Regionales S.A. and its subsidiaries, Tarjetas del Mar S.A., Galicia Valores S.A. Sociedad de Bolsa, Compañía Financiera Argentina S.A. and Cobranzas y Servicios S.A.

 

 

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

 

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RESULTS FOR THE SECOND QUARTER

 

		In millions of pesos, except percentages
Table III Evolution of Consolidated Results						FY2015				FY2014				Variation (%)
		2nd Q				1st Q				2nd Q				2Q15 vs 1Q15				2Q15 vs 2Q14
Net Financial Income			2,628				2,756				2,186				(4.6	)			20.2
Net Income from Services			2,055				1,971				1,489				4.3				38.0
Provisions for Loan Losses			(484	)			(591	)			(566	)			(18.1	)			(14.5	)
Administrative Expenses			(2,967	)			(2,672	)			(2,211	)			11.0				34.2
Operating Income			1,232				1,464				898				(15.8	)			37.2
Net Other Income / (Loss)(*)			135				58				158				132.8				(14.6	)
Income Tax			(489	)			(641	)			(383	)			(23.7	)			27.7
Net Income			878				881				673				(0.3	)			30.5

 

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

 

		Percentages
Table IV		FY2015				FY2014				Six Months Ended
Profitability and Efficiency		2nd Q				2nd Q				06/30/15				06/30/14
Return on Average Assets (*)			3.27				3.17				3.42				3.49
Return on Average Shareholders’ Equity (*)			31.29				34.11				32.63				38.03
Financial Margin (*) (1)			11.44				12.56				12.39				14.12
Net Income from Services as a % of Operating Income (2)			43.88				40.50				42.78				37.53
Net Income from Services as a % of Administrative Expenses			69.26				67.35				71.40				67.51
Administrative Expenses as a % of Operating Income (2)			63.36				60.14				59.93				55.59

 

(*)	Annualized.

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

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

In the second quarter of fiscal year 2015, the Bank recorded a Ps.878 million profit, Ps.205 million (or 30.5%) higher than the Ps.673 million profit for the same quarter of the previous year.

The variation in net income was a consequence of the Ps.1,008 million increase in operating income and lower provisions for loan losses, for Ps.82 million, which were offset mainly by increases in administrative expenses, for Ps.756 million, and in the income tax, for Ps.106 million.

The operating income for the second quarter of fiscal year 2015 totaled Ps.4,683 million, up 27.4% from the Ps.3,675 million recorded in the same quarter of the prior year. This positive development was due both to a higher net income from services (up Ps.566 million or 38.0%) and a higher net financial income (up Ps.442 million or 20.2%).

The net financial income for the quarter included a Ps.17 million gain from foreign-currency quotation differences (including the results from foreign-currency forward transactions), compared to a Ps.25 million loss in the second quarter of the previous fiscal year. The quarter’s profit was composed of a Ps.65 million gain from FX brokerage and of a Ps.48 million loss from the valuation of the foreign-currency net position and the results from foreign-currency forward transactions, compared to a Ps.56 million profit and a Ps.81 million loss, respectively, in the second quarter of fiscal year 2014.

The quarter’s net financial income before foreign-currency quotation differences amounted to Ps.2,611 million, with a Ps.400 million (or 18.1%) increase as compared to the Ps.2,211 million of income of the same quarter of fiscal year 2014, as a consequence of the increase in the portfolio of loans to the private sector and of government securities, offset by a decrease in the spread.

 

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		Average balances in millions of pesos. Yields and rates in annualized nominal %
Table V										FY2015																								FY2014
Average Balances,						2nd Q								1st Q								4th Q								3rd Q								2nd Q
Yield and Rates(*)		Av. B.				Int.				Av. B.				Int.				Av. B.				Int.				Av. B.				Int.				Av. B.				Int.
Interest-Earning Assets			91,904				24.42				81,902				26.40				76,184				25.30				71,639				27.25				69,662				27.50
Government Securities			15,870				19.23				11,351				26.25				9,697				13.00				10,000				29.45				9,919				25.89
Loans			73,546				25.80				68,469				26.48				64,269				27.16				59,056				27.28				57,145				27.89
Financial Trusts Securities			786				5.98				823				24.70				846				27.06				876				9.80				903				28.54
Other Interest-Earning Assets			1,702				21.95				1,259				24.62				1,372				24.47				1,707				22.27				1,695				23.05
Interest-Bearing Liabilities			63,548				16.45				57,275				15.94				54,388				15.40				52,497				15.72				52,289				18.55
Saving Accounts			12,786				0.19				12,690				0.18				11,298				0.21				10,670				0.18				9,375				0.20
Time Deposits			37,506				21.66				33,301				21.28				31,048				20.63				30,041				21.45				31,650				23.85
Debt Securities			9,704				17.12				9,368				16.43				9,334				15.93				8,729				16.18				8,312				16.65
Other Interest-Bearing Liabilities			3,552				18.14				1,916				25.24				2,708				16.95				3,057				12.43				2,952				25.43

 

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

The average interest-earning assets grew Ps.22,242 million (31.9%) as compared to the second quarter of the previous fiscal year, as a consequence of the Ps.16,401 million increase in the average portfolio of loans to the private sector and of the Ps.5,951 million growth in the average balance of government securities, primarily Lebac. Interest-bearing liabilities increased Ps.11,259 million (21.5%) during the same period, mainly due to the increase of the average balances of interest-bearing deposits.

The average yield on interest-earning assets for the second quarter of fiscal year 2015 was 24.42%, with a 308 basis points (“b.p.”) decrease compared to the same quarter of the prior year. The average interest rate on all interest-earning assets decreased, being worth to mention the 666 b.p. decrease on the portfolio of government securities and the 209 b.p. decrease on the portfolio of loans to the private sector. Likewise, the average cost of interest-bearing liabilities was 16.45%, with a 210 b.p. decrease compared to the second quarter of the prior year, mainly due to the 219 b.p. reduction of the average interest rate on time deposits.

 

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		In millions of pesos
Table VI Income from Services, Net						FY2015												FY2014
		2nd Q				1st Q				4th Q				3rd Q				2nd Q
National Cards			731				687				656				580				513
Regional Credit Cards			1,093				1,004				1,012				911				856
CFA			70				69				65				51				38
Deposit Accounts			465				447				383				372				311
Insurance			110				101				94				88				82
Financial Fees			33				35				26				29				21
Credit-Related Fees			76				80				67				61				54
Foreign Trade			50				46				48				49				44
Collections			72				64				52				51				44
Utility-Bills Collection Services			40				36				34				36				30
Mutual Funds			8				6				6				4				3
Other			132				131				131				126				94
Total Income			2,880				2,706				2,574				2,358				2,090
Total Expenditures			(825	)			(735	)			(797	)			(635	)			(601	)
Income from Services, Net			2,055				1,971				1,777				1,723				1,489

Net income from services amounted to Ps.2,055 million, up 38.0% from the Ps.1,489 million recorded in the second quarter of the previous fiscal year. The increases of fees which stood out were those related to national and regional credit cards (33.2%), to deposit accounts (49.5%), to insurance (34.1%) and to collections (63.6%).

Provisions for loan losses for the second quarter of fiscal year 2015 amounted to Ps.484 million, Ps.82 million lower than in the same quarter of the prior year, mainly attributable to the consumer loan portfolio.

Administrative expenses for the quarter totaled Ps.2,967 million, up 34.2% from the same quarter of the previous year. Personnel expenses amounted to Ps.1,654 million, growing 30.2%, mainly due to salary increase agreements with the unions. The remaining administrative expenses, excluding the amortization of organization and development expenses, amounted to Ps.1,166 million, with a Ps.302 million (35.0%) increase as compared to Ps.864 million from the second quarter of fiscal year 2014, due to the increase of expenses related to services provided to the Bank. Likewise, the amortization of organization and development expenses amounted to Ps.147 million, with a 90.9% increase, as in December 2014 the Bank began to amortize its investment in the SAP Core Banking System.

Income from equity investments amounted to Ps.37 million, Ps.29 million (or 43.9%) lower than in the second quarter of fiscal year 2014, when a profit related to the sale of the Bank’s interest in Galicia Administradora de Fondos S.A. to Grupo Financiero Galicia S.A. was recorded.

Net other income for the second quarter amounted to Ps.172 million, an increase of 31.3% as compared to the Ps.131 million profit for the same quarter of the prior year, mainly due to results related to security margins on repurchase agreement transactions and to credits recovered.

The income tax charge was Ps.489 million, Ps.106 million higher than in the second quarter of fiscal year 2014.

 

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LEVEL OF ACTIVITY

 

		In millions of pesos
Table VII Exposure to the Private Sector						FY2015												FY2014
		2nd Q				1st Q				4th Q				3rd Q				2nd Q
Loans			83,051				75,119				69,208				64,218				61,416
Financial Leases			1,034				1,058				1,066				1,055				1,104
Corporate Securities			718				773				724				628				550
Other Financing (*)			7,454				7,149				7,877				6,626				6,842
Subtotal			92,257				84,099				78,875				72,527				69,912
Securitized Assets (**)			40				102				141				164				172
Total Credit			92,297				84,201				79,016				72,691				70,084

 

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

(**)	Financial trust CFA Trust I.

As of June 30, 2015, the Bank’s total exposure to the private sector reached Ps.92,297 million, with an increase of 31.7% from a year before and of 9.6% during the quarter.

Total loans include Ps.18,060 million corresponding to the regional credit card companies, which registered a 28.2% increase during the last twelve months and a 6.5% increase in the quarter. They also include Ps.3,362 million from CFA (including the financial trust CFA Trust I), which were up 2.3% during the year and 5.0% in the quarter.

 

		Percentages
Table VIII Market Share (*)						FY2015												FY2014
		2nd Q				1st Q				4th Q				3rd Q				2nd Q
Total Loans			8.68				8.34				8.07				8.04				7.98
Loans to the Private Sector			9.14				9.06				8.76				8.74				8.64

 

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

The Bank’s market share of loans to the private sector as of June 30, 2015, without considering those granted by the regional credit card companies, was 9.14%, compared to a 9.06% from March 31, 2015, and to an 8.64% from June 30, 2014.

 

				9

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		In millions of pesos
Table IX						FY2015												FY2014
Loans by Type of Borrower		2nd Q				1st Q				4th Q				3rd Q				2nd Q
Large Corporations			11,885				9,657				8,590				10,416				9,290
SMEs			22,854				22,171				20,514				18,414				17,377
Individuals			45,605				42,228				39,649				34,920				33,796
Financial Sector			2,707				1,063				455				468				953
Total Loans			83,051				75,119				69,208				64,218				61,416
Allowances			3,288				2,996				2,615				2,653				2,519
Total Loans, Net			79,763				72,123				66,593				61,565				58,897

 

		In millions of pesos
Table X						FY2015												FY2014
Loans by Sector of Activity		2nd Q				1st Q				4th Q				3rd Q				2nd Q
Financial Sector			2,707				1,063				455				468				953
Services			4,761				3,821				3,468				3,716				3,448
Agriculture and Livestock			8,676				8,875				8,178				7,013				6,594
Consumer			45,864				42,481				39,747				34,865				33,706
Retail and Wholesale Trade			6,775				6,873				5,936				6,216				5,594
Construction			884				787				709				823				626
Manufacturing			11,297				9,246				9,256				9,861				9,718
Other			2,087				1,973				1,459				1,256				777
Total Loans			83,051				75,119				69,208				64,218				61,416
Allowances			3,288				2,996				2,615				2,653				2,519
Total Loans, Net			79,763				72,123				66,593				61,565				58,897

During the year, loans to the private sector registered growth, mainly in those granted to individuals (34.9%), SMEs (31.5%) and to large corporations (27.9%). By sector of activity, the higher growth was recorded in the consumer sector (36.1%) and in the agriculture and livestock sector (31.6%).

 

		In millions of pesos
Table XI						FY2015												FY2014
Exposure to the Argentine Public Sector (*)		2nd Q				1st Q				4th Q				3rd Q				2nd Q
Government Securities’ Net Position			18,200				14,682				10,101				11,225				9,447
Held for Trading			18,200				14,682				10,101				11,125				9,170
Lebac / Nobac			13,972				11,790				7,563				8,223				6,764
Other			4,228				2,892				2,538				2,902				2,406
Bonar 2015 Bonds			—				—				—				100				277
Other Receivables Resulting from Financial Brokerage			747				821				867				881				886
Trust Certificates of Participation and Securities			718				784				830				831				880
Other			29				37				37				50				6
Total Exposure			18,947				15,503				10,968				12,106				10,333

 

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

 

				10

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As of June 30, 2015, the Bank’s exposure to the public sector amounted to Ps.18,947 million. Excluding debt securities issued by the Argentine Central Bank said exposure reached Ps.4,975 million (3.8% of total assets), while as of June 30, 2014, it amounted to Ps.3,569 million (3.7% of total assets). This increase during the last twelve months was due to the acquisition of government securities, mainly National Treasury Bonds due in 2016.

 

		In millions of pesos
Table XII Deposits (*)						FY2015												FY2014
		2nd Q				1st Q				4th Q				3rd Q				2nd Q
In Pesos			72,304				64,105				60,091				55,789				54,808
Current Accounts			19,016				15,971				15,985				15,040				14,521
Saving Accounts			15,767				13,893				14,090				11,597				10,839
Time Deposits			36,446				33,122				29,081				28,181				28,390
Other			1,075				1,119				935				971				1,058
In Foreign Currency			5,052				4,592				4,841				4,251				4,099
Total Deposits			77,356				68,697				64,932				60,040				58,907

 

(*)	Includes CFA.

As of June 30, 2015, the Bank’s deposits amounted to Ps.77,356 million, representing a 31.3% increase during the last twelve months and a 12.6% increase during the quarter.

 

		Percentages
Table XIII Market Share (*)						FY2015												FY2014
		2nd Q				1st Q				4th Q				3rd Q				2nd Q
Total Deposits			6.99				6.70				6.63				6.89				7.07
Private Sector Deposits			8.75				8.72				8.79				8.78				8.94

 

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

As of June 30, 2015, the Bank’s estimated market share of private sector deposits in the Argentine financial system was 8.75%, compared to 8.72% of the prior quarter and to 8.94% of a year before.

 

		In millions of pesos
Table XIV Other Financial Liabilities						FY2015												FY2014
		2nd Q				1st Q				4th Q				3rd Q				2nd Q
Domestic Financial Institutions and Credit Entities			1,423				1,457				1,100				1,341				1,350
Foreign Financial Institutions and Credit Entities			1,843				1,591				807				1,695				1,634
Notes(*)			10,468				9,563				9,532				9,033				8,608
Obligations in Connection with Spot Transactions Pending Settlement and Repurchase Agreement Transactions			8,443				3,937				388				1,304				1,768
Obligations in Connection with Debts with Merchants due to Credit-Card Activities			10,917				10,515				10,893				8,844				8,455
Other			4,017				3,611				4,413				4,094				3,198
Total			37,111				30,674				27,133				26,311				25,013

 

(*)	Includes subordinated notes.

 

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As of June 30, 2015, other financial liabilities amounted to Ps.37,111 million, Ps.12,089 million or 48.4% higher than the Ps.25,013 million recorded a year before. This growth was mainly due to the increase of:

(i) spot transactions pending settlement and repurchase agreement transactions of foreign currency and government securities, for Ps. 6,675 million; (ii) financing from merchants in connection with credit card activities, for Ps.2,462 million; and (iii) of notes, for Ps.1,860 million. The increase of the balance of notes was related to transactions of Tarjeta Naranja S.A., Tarjetas Cuyanas S.A. and CFA S.A., and to the evolution of the exchange rate during the period, partially offset by the payment in January 2015 of the first amortization installment (for US$67 million) of the Class XIII Notes issued by Tarjeta Naranja.

As of June 30, 2015, the Bank had 3.2 million deposit accounts, which represent an increase of approximately 309 thousand accounts as compared with the same date of the previous year. Likewise, the number of credit cards reached 12.6 million, 1.3 million more than those managed a year before.

ASSET QUALITY

 

		In millions of pesos, except percentages
Table XV						FY2015												FY2014
Loan Portfolio Quality		2nd Q				1st Q				4th Q				3rd Q				2nd Q
Non-Accrual Loans (*)			3,076				2,795				2,472				2,505				2,476
With Preferred Guarantees			44				53				50				69				69
With Other Guarantees			92				71				59				84				71
Without Guarantees			2,940				2,671				2,363				2,352				2,336
Allowance for Loan Losses			3,288				2,996				2,615				2,653				2,519
Non-Accrual Loans to Private-Sector Loans (%)			3.70				3.72				3.57				3.90				4.03
Allowance for Loan Losses to Private-Sector Loans (%)			3.96				3.99				3.78				4.13				4.10
Allowance for Loan Losses to Non-Accrual Loans (%)			106.89				107.19				105.78				105.91				101.74
Non-Accrual Loans with Guarantees to Non-Accrual Loans (%)			4.42				4.44				4.41				6.11				5.65

 

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

The Bank’s non-accrual loan portfolio amounted to Ps.3,076 million as of June 30, 2015, representing 3.70% of total loans to the private-sector, recording an improvement as compared to the 4.03% ratio of a year before.

The coverage of the non-accrual loan portfolio with allowances for loan losses reached 106.89% as of June 30, 2015, compared to 101.74% of a year before.

In terms of total Credit -defined as loans, certain accounts included in “Other Receivables Resulting from Financial Brokerage” representing credit transactions, assets under financial leases, guarantees granted and unused balances of loans granted- the Bank’s non-accrual portfolio represented 3.38% of total credit to the private-sector, and its coverage with allowances for loan losses reached 107.61%, compared to 3.58% and 102.28% of a year before, respectively.

On an individual basis Banco Galicia’s non-accrual loan portfolio amounted to Ps.1,117 million as of June 30, 2015, increasing 21.8% during the last twelve months, representing 1.80% of total loans to the private-sector, compared to the 2.06% ratio recorded a year before. The coverage with allowances for loan losses reached 145.75%, compared to 134.79% as of June 30, 2014.

 

				12

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		In millions of pesos
Table XVI						FY2015												FY2014
Consolidated Analysis of Loan Loss Experience		2nd Q				1st Q				4th Q				3rd Q				2nd Q
Allowance for Loan Losses at the Beginning of the Quarter			2,996				2,615				2,653				2,519				2,372
Changes in the Allowance for Loan Losses
Provisions Charged to Income			481				573				496				624				542
Provisions Reversed			—				—				—				—				(1	)
Charge Offs			(189	)			(192	)			(534	)			(490	)			(394	)
Allowance for Loan Losses at Quarter End			3,288				2,996				2,615				2,653				2,519
Charge to the Income Statement
Provisions Charged to Income			(470	)			(573	)			(496	)			(624	)			(554	)
Direct Charge Offs			(14	)			(12	)			(14	)			(12	)			(11	)
Bad Debts Recovered			65				67				69				60				57
Provisions Reversed (*)			—				—				—				—				1
Net Charge to the Income Statement			(419	)			(518	)			(441	)			(576	)			(507	)

 

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

During the quarter, Ps.189 million were charged off against the allowance for loan losses and direct charges to the income statement for Ps.14 million were made.

CAPITALIZATION AND LIQUIDITY

 

		In millions of pesos, except ratios
Table XVII Consolidated Regulatory Capital						FY2015												FY2014
		2nd Q				1st Q				4th Q				3rd Q				2nd Q
Minimum Capital Required (A)			7,993				7,478				7,077				6,578				6,595
Allocated to Financial Assets, Fixed Assets, Other Assets and to Lending to the Public Sector			5,776				5,419				5,098				4,673				4,855
Allocated to Market Risk			174				152				200				245				201
Allocated to Operational Risk			2,043				1,907				1,779				1,660				1,539
Computable Capital (B)			11,536				10,654				10,133				9,366				8,698
Tier I			9,692				8,911				8,041				7,354				6,682
Tier II			1,741				1,657				2,020				1,938				1,912
Additional Capital – Market Variation			103				86				72				74				104
Excess over Required Capital (B) - (A)			3,543				3,176				3,056				2,788				2,103
Total Capital Ratio (%)			16.03				15.87				15.91				15.83				14.39

As of June 30, 2015, the Bank’s consolidated computable capital was Ps.3,543 million (44.3%) higher than the Ps.7,993 million capital requirement. As of June 30, 2014, this excess amounted to Ps.2,103 million or 31.9%.

The minimum capital requirement increased Ps.1,398 million as compared to June 30, 2014, mainly as a result of higher requirements of: (i) Ps.921 million due to the growth of the private-sector loan portfolio; and (ii) Ps.504 million on operational risk.

 

				13

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Computable capital increased Ps.2,838 million as compared to June 30, 2014, mainly a consequence of a higher Tier I capital, for Ps.3,010 million, mainly due to the higher net income, partially offset by higher deductions, resulting from organization and development expenses. Tier II capital recorded a Ps.171 million decrease, mainly as a consequence of the 42% limit (64% until December 31, 2014) on the balance of subordinated notes admitted for fiscal year 2015 due to regulations in force.

 

		Percentages
Table XVIII Liquidity (unconsolidated)						FY2015												FY2014
		2nd Q				1st Q				4th Q				3rd Q				2nd Q
Liquid Assets (*) as a percentage of Transactional Deposits			76.94				76.81				75.32				79.13				84.82
Liquid Assets (*) as a percentage of Total Deposits			37.41				36.36				38.60				38.53				40.11

 

(*)

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 and Nobac (Argentine Central Bank’s bills and notes, respectively), net call money interbank loans, short-term placements with correspondent banks and reverse repurchase agreement transactions with the local market.

As of June 30, 2015, the Bank’s liquid assets represented 76.94% of the Bank’s transactional deposits and 37.41% of its total deposits, as compared to 84.82% and 40.11%, respectively, as of June 30, 2014.

 

				14

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BANCO DE GALICIA Y BUENOS AIRES S.A. SELECTED FINANCIAL INFORMATION - CONSOLIDATED DATA (*)
		In millions of pesos
						FY2015												FY2014
		2nd Q				1st Q				4th Q				3rd Q				2nd Q
Cash and Due from Banks			10,871				11,585				16,951				14,470				14,683
Government and Corporate Securities			19,187				14,741				9,732				10,789				10,215
Net Loans			79,763				72,123				66,593				61,565				58,897
Other Receivables Resulting from Financial Brokerage			13,694				9,493				6,461				6,592				6,104
Equity Investments in Other Companies			109				100				93				85				100
Bank Premises and Equipment, Miscellaneous and Intangible Assets			3,996				3,839				3,696				3,407				3,243
Other Assets			2,849				2,930				2,436				2,480				2,145
Total Assets			130,469				114,811				105,962				99,388				95,387
Deposits			77,285				68,639				64,708				59,989				58,701
Other Liabilities Resulting from Financial Brokerage			34,861				28,571				25,067				24,342				23,096
Subordinated Notes			2,250				2,103				2,066				1,969				1,917
Other			3,571				3,898				3,478				3,329				2,857
Minority Interests			844				820				744				694				628
Total Liabilities			118,811				104,031				96,063				90,323				87,199
Shareholders’ Equity			11,658				10,780				9,899				9,065				8,188
Foreign-Currency Assets and Liabilities
Assets			16,729				14,087				12,812				13,885				12,438
Liabilities			16,678				13,946				13,300				13,620				12,947
Net Forward Purchases/(Sales) of Foreign Currency (1)			(690	)			(1,105	)			2,658				4,000				1,673

 

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

(1)	Recorded off-balance sheet.

 

				15

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BANCO DE GALICIA Y BUENOS AIRES S.A.:

SELECTED FINANCIAL INFORMATION - CONSOLIDATED DATA ^(*)

 

		In millions of pesos
						FY2015												FY2014
		2nd Q				1st Q				4th Q				3rd Q				2nd Q
FINANCIAL INCOME			5,779				5,530				4,932				4,849				4,911
Interest on Loans to the Financial Sector			9				14				30				44				47
Interest on Overdrafts			398				376				402				471				385
Interest on Promissory Notes			1,129				1,138				1,116				891				885
Interest on Mortgage Loans			85				77				78				81				82
Interest on Pledge Loans			21				21				21				20				22
Interest on Credit-Card Loans			2,309				2,142				1,900				1,647				1,609
Interest on Financial Leases			51				52				52				54				57
Interest on Other Loans			780				742				788				852				931
Net Income from Government and Corporate Securities			888				876				451				775				759
Net Income from Options			(1	)			1				—				—				—
Interest on Other Receivables Resulting from Financial Brokerage			15				26				19				30				44
Net Income from Secured Loans - Decree No.1387/01			1				—				—				—				—
CER Adjustment			3				—				—				—				—
Other			40				31				75				(16	)			90
Quotation Differences on Gold and Foreign Currency			51				34				—				—				—
FINANCIAL EXPENSES			(3,151	)			(2,774	)			(2,720	)			(2,328	)			(2,725	)
Interest on Saving Accounts Deposits			—				(1	)			(1	)			—				(1	)
Interest on Time Deposits			(2,016	)			(1,755	)			(1,590	)			(1,560	)			(1,868	)
Interest on Subordinated Obligations			(88	)			(85	)			(81	)			(80	)			(75	)
Other Interest			(20	)			(22	)			(21	)			(29	)			(22	)
Interest on Interbank Loans Received (Call Money Loans)			(12	)			(6	)			(3	)			(5	)			(5	)
Interest on Other Financing from Financial Entities			(25	)			(23	)			(24	)			(33	)			(40	)
Interest on Other Liabilities Resulting from Financial Brokerage			(432	)			(385	)			(371	)			(324	)			(406	)
Contributions to the Deposit Insurance Fund			(119	)			(112	)			(79	)			(25	)			(24	)
Quotation Differences on Gold and Foreign Currency			—				—				40				67				41
Other			(439	)			(385	)			(590	)			(339	)			(325	)
GROSS FINANCIAL MARGIN			2,628				2,756				2,212				2,521				2,186
PROVISIONS FOR LOAN LOSSES			(484	)			(591	)			(517	)			(646	)			(566	)
INCOME FROM SERVICES, NET			2,055				1,971				1,777				1,723				1,489
ADMINISTRATIVE EXPENSES			(2,967	)			(2,672	)			(2,418	)			(2,273	)			(2,211	)
Personnel Expenses			(1,654	)			(1,527	)			(1,344	)			(1,293	)			(1,270	)
Directors’ and Syndics’ Fees			(27	)			(23	)			(22	)			(19	)			(21	)
Other Fees			(87	)			(58	)			(65	)			(57	)			(48	)
Advertising and Publicity			(135	)			(107	)			(103	)			(105	)			(116	)
Taxes			(263	)			(229	)			(210	)			(202	)			(185	)
Depreciation of Premises and Equipment			(50	)			(47	)			(45	)			(44	)			(41	)
Amortization of Organization Expenses			(147	)			(135	)			(100	)			(83	)			(77	)
Other Operating Expenses			(355	)			(327	)			(315	)			(273	)			(275	)
Other			(249	)			(219	)			(214	)			(197	)			(178	)
MINORITY INTEREST RESULTS			(74	)			(75	)			(50	)			(66	)			(39	)
INCOME FROM EQUITY INVESTMENTS			37				36				33				119				66
NET OTHER INCOME / (LOSS)			172				97				173				97				131
INCOME TAX			(489	)			(641	)			(376	)			(598	)			(383	)
NET INCOME / (LOSS)			878				881				834				877				673

 

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

 

				16

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CONSUMER FINANCE BUSINESS – ADITIONAL INFORMATION

TARJETAS REGIONALES S.A.

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

 

		In millions of pesos, except percentages
Table XIX						FY2015				FY2014				Variation (%)
Selected Information		2nd Q				1st Q				2nd Q				2Q15 vs 1Q15				2Q15 vs 2Q14
Total Assets			18,640				17,228				14,450				8.2				29.0
Cash and Due from Banks			289				251				221				15.1				30.8
Loans			16,008				15,132				12,533				5.8				27.7
Total Liabilities			15,281				14,004				12,008				9.1				27.3
Notes			4,691				4,086				3,592				14.8				30.6
Financial Entities			1,328				1,214				1,244				9.4				6.8
Merchants			7,677				7,310				5,999				5.0				28.0
Shareholders’ Equity			3,359				3,224				2,442				4.2				37.6
Net Income			296				311				167				(4.8	)			77.2
Net Financial Income			543				561				465				(3.2	)			16.8
Net Income from Services			950				885				751				7.3				26.5
Provisions for Loan Losses			(141	)			(203	)			(166	)			(30.5	)			(15.1	)
Administrative Expenses			(989	)			(811	)			(786	)			21.9				25.8
Loan Portfolio Quality															Variation (b.p.)
Non-Accrual Loans to Total Loans (%)			7.36				6.94				7.67				42				(31	)
Allowance for Loan Losses to Total Loans (%)			6.75				6.45				7.21				30				(46	)
Allowance for Loan Losses to Non-Accrual Loans (%)			91.69				92.88				94.02				(119	)			(233	)

 

				Percentages
Table XX				FY2015				FY2014				Six Months Ended
Profitability and Efficiency				2nd Q				2nd Q				06/30/15				06/30/14
Return on Average Assets (*)					6.90				4.91				7.20				4.38
Return on Average Shareholders’ Equity (*)					35.26				27.43				37.15				24.51
Financial Margin (*) (1)					12.84				13.74				13.36				12.01
Net Income from Services as a % of Operating Income (2)					63.63				61.76				62.44				64.49
Net Income from Services as a % of Administrative Expenses					96.06				95.55				101.94				101.26
Administrative Expenses as a % of Operating Income (2)					66.24				64.64				61.25				63.69

 

(*)	Annualized.

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

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

 

				17

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COMPAÑÍA FINANCIERA ARGENTINA S.A.

 

		In millions of pesos, except percentages
Table XXI						FY2015				FY2014				Variation (%)
Selected Information		2nd Q				1st Q				2nd Q				2Q15 vs 1Q15				2Q15 vs 2Q14
Total Assets			3,847				3,726				3,654				3.2				5.3
Cash and Due from Banks			333				275				269				21.1				23.8
Loans			2,898				2,763				2,850				4.9				1.7
Total Liabilities			2,668				2,577				2,578				3.5				3.5
Deposits			938				969				1,147				(3.2	)			(18.2	)
Notes			802				728				661				10.2				21.3
Financial Entities			285				349				394				(18.3	)			(27.7	)
Shareholders’ Equity			1,179				1,149				1,076				2.6				9.6
Net Income			29				27				30				7.4				(3.3	)
Net Financial Income			271				273				278				(0.7	)			(2.5	)
Net Income from Services			44				40				10				10.0				340.0
Provisions for Loan Losses			(89	)			(110	)			(93	)			(19.1	)			(4.3	)
Administrative Expenses			(215	)			(185	)			(173	)			16.2				24.3
Loan Portfolio Quality			Variation (b.p.)
Non-Accrual Loans to Total Loans (%)			18.21				16.42				15.41				179				280
Allowance for Loan Losses to Total Loans (%)			12.73				10.84				8.51				189				422
Allowance for Loan Losses to Non-Accrual Loans (%)			69.92				66.01				55.21				391				1,471
						Percentages
Table XXII						FY2015				FY2014				Six Months Ended
Profitability and Efficiency						2nd Q				2nd Q				06/30/15				06/30/14
Return on Average Assets (*)							3.06				3.13				3.02				3.45
Return on Average Shareholders’ Equity (*)							9.67				10.88				9.44				12.11
Financial Margin (*) (1)							31.27				34.16				32.22				32.89
Net Income from Services as a % of Operating Income (2)							13.97				3.47				13.38				3.04
Net Income from Services as a % of Administrative Expenses							20.47				5.78				21.00				5.15
Administrative Expenses as a % of Operating Income (2)							68.25				60.07				63.69				59.03

 

(*)	Annualized.

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

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

 

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SUDAMERICANA HOLDING S.A.

INFORMATION DISCLOSURE

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

RESULTS FOR THE QUARTER ENDED JUNE 30, 2015

 

		In millions of pesos, except percentages
Table XXIII		Quarters ended:												Variation (%)
Selected Information		06/30/2015				03/31/2015				06/30/2014				Quarter				Annual
Assets
Premiums Receivable			346				304				236				13.8				46.6
Reinsurance Recoverables			3				2				4				50.0				(25.0	)
Liabilities
Debt with Insureds			140				128				99				9.4				41.4
Debt with Reinsurers			7				5				—				40.0				100.0
Debt with Agents and Brokers			68				63				69				7.9				(1.4	)
Insurance Contract Liabilities			218				191				184				14.1				18.5
Shareholders’ Equity			539				462				406				16.7				32.8
Net Income			77				75				59				2.7				30.5
Earned Premiums			570				530				403				7.5				41.4
Incurred Claims			(83	)			(69	)			(52	)			20.3				59.6
Net Investment Income			35				26				26				34.6				34.6
Commissions and Other			(217	)			(195	)			(165	)			11.3				31.5
Operating Expenses			(140	)			(130	)			(57	)			7.7				145.6
Annualized Sales			170				149				119				14.1				42.9

 

		Percentages
Table XXIX:		Quarters ended:								Six months ended:
Profitability		06/30/2015				06/30/2014				06/30/2015				06/30/2014
Return on Average Assets (*)			25.14				25.42				26.14				27.20
Return on Average Shareholders’ Equity (*)			60.04				60.97				63.83				66.40

 

(*)	Annualized.

 

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GALICIA ADMINISTRADORA DE FONDOS S.A.

RESULTS FOR THE QUARTER ENDED JUNE 30, 2015

 

		In millions of pesos, except percentages
Table XXV:						FY2015				FY2014				Variation (%)
Selected Information		2nd Q				1st Q				2nd Q				2Q15 vs 1Q15				2Q15 vs 2Q14
Shareholders’ Equity			47				23				23				104.3				104.3
Net Income			24				19				8				26.3				200.0
Fees and Commissions			44				35				17				25.7				158.8
Administrative Expenses			(7	)			(7	)			(5	)			—				40.0
Commercial Expenses			(2	)			(2	)			(1	)			—				100.0

 

		In millions of pesos, except percentages
Table XXVI:		Assets Under Management as of:								Variation
Mutual Funds		06/30/2015				06/30/2014				Ps.				%
Fima Premium			4,075				2,398				1,677				69.9
Fima Ahorro Pesos			4,506				1,240				3,266				263.4
Fima Ahorro Plus			6,362				1,585				4,777				301.4
Fima Capital Plus			1,121				1,551				(430	)			(27.7	)
Fima Renta en Pesos			56				57				(1	)			(1.8	)
Fima Renta Plus			68				61				7				11.5
Fima Abierto Pymes			181				35				146				417.1
Fima Acciones			84				53				31				58.5
Fima PB Acciones			242				109				133				122.0
Total Assets Under Management			16,695				7,089				9,606				135.5

 

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RECENT DEVELOPMENTS

GRUPO FINANCIERO GALICIA – NOTES

On July 27, Grupo Financiero Galicia issued its Class VII Notes, for Ps.160 million, due on July 27, 2017. The notes will bear a 27% fixed interest rate per annum during the first 9 months, and Badlar + 4.25% during the following 15 months.

Likewise, on July 31, 2015, Class V, Series I Notes were fully repaid, for Ps.101.8 million, plus accrued interest.

REGULATORY CHANGES

CREDIT LINE FOR PRODUCTIVE INVESTMENT PROJECTS

Through its Communiqué “A” 5771, issued on July 2, the Argentine Central Bank established a new amount to be granted under the Credit Line for Productive Investment Projects, aiming to finance Micro SMEs investment projects and working capital with specific purposes and with certain credit lines. The second tranche of the 2015 quota, should be agreed before December 31, 2015 and its amount should be equivalent to 7.5% of the average of the daily balance of deposits held in May 2015 (Banco Galicia: Ps.4,743 million). In order to determine the amount to be allocated to this credit line, the regulation establishes certain coefficients according to the economic size (from 1.0 to 1.2) and the geographical location (from 1.0 to 1.5) of the Micro SMEs. The line has an 18.0% annual interest rate, with a minimum term of 3 years after which the rate could turn into floating rate without exceeding 50 basis points over the BADLAR rate.

INTEREST RATE ON TIME DEPOSITS

Through its Communiqué “A” 5871, the Central Bank established minimum rates effective from July 27, 2015, for time deposits of individuals and companies in pesos for amounts lower than Ps.1 million. Minimum rates cannot be lower than the product of the last “reference interest rate” and a coefficient which depends on the term of the deposit (from 30 to 44 days: 0.91; from 45 to 59 days: 0.93; from 60 to 89 days: 0.97; from 90 to 119 days: 0.97; from 120 to 179 days: 0.98; and for 180 days or more: 0.99).

The above mentioned reference interest rate is the average rate of the Lebac in Pesos, of the second month immediately preceding the date of the deposits, corresponding to that of the closest term to 90 days in the case of time deposits for up to 89 days, and to 120 days for time deposits for longer terms.

 

 

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