BANCO DE GALICIA Y BUENOS AIRES S.A. REPORTS EARNINGS FOR THE QUARTER ENDED MARCH 31, 2014

Transcription

1 FOR IMMEDIATE RELEASE Banco de Galicia y Buenos Aires S.A. Phone (54) (11) Fax (54) (11) BANCO DE GALICIA Y BUENOS AIRES S.A. REPORTS EARNINGS FOR THE QUARTER ENDED MARCH 31, 2014 (Buenos Aires, Argentina, May 8, 2014) Banco de Galicia y Buenos Aires S.A. (the Bank, Buenos Aires Stock Exchange: GALI) today announced its financial results for the quarter ended March 31, Net income for the first quarter of fiscal year 2014 amounted to Ps million, recording a significant growth as compared to the Ps million profit from the same period of the prior year. The growth of results when compared to the first quarter of fiscal year 2013 was mainly due to the 51.4% growth in operating income (1) which was higher than the 20.8% increase in administrative expenses, and, as a consequence, there was an improvement in the efficiency ratio. The net operating income continued its positive development and, in addition, it was influenced by the gain from foreign-currency quotation differences due to the devaluation of the peso recorded in January The credit exposure to the private sector reached Ps.67,244 million, up 26.5% during the last twelve months, and deposits reached Ps million, up 35.3% during the same period. As of March 31, 2014, the Bank s estimated market share of loans to the private sector was 8.68% while its estimated market share of deposits from the private sector was 9.31%, recording a 20 basis points ( b.p. ) decrease and a 35 b.p. increase, respectively, during the last twelve months. As of the end of the quarter, shareholders equity amounted to Ps.7,514 million, and the computable capital was Ps.7,887 million, representing a Ps.1,551 million excess over the consolidated capital requirement, and the capital ratio was 13.40%. As of March 31, 2014, the Bank and its subsidiaries had a staff of 12,205 employees, a network of 651 branches and other points of contact with clients, managed 2.8 million deposit accounts and 11.0 million credit cards. (1) Net financial income plus net income from services.

2 NET INCOME FOR THE QUARTER ENDED MARCH 31, 2014 In the first quarter of fiscal year 2014, the Bank recorded a Ps million profit, as compared to the Ps million profit for the same quarter of the previous year. Table I Evolution of Consolidated Results Absolute Variation 1 st Q 4 th Q 1 st 1Q14 vs 1Q14 vs Q 4Q13 1Q13 Net Financial Income 2, , , ,011.1 Net Income from Services 1, , , Provisions for Loan Losses (682.0) (508.3) (441.0) (173.7) (241.0) Administrative Expenses (1,988.7) (1,910.8) (1,646.8) (77.9) (341.9) Operating Income 1, Net Other Income / (Loss) (*) Income Tax (545.4) (387.7) (217.5) (157.7) (327.9) Net Income (*) Includes income from equity investments and minority interest results. The variation in net income was a consequence of the Ps.1,317.1 million increase in operating income, which was offset by increases in administrative expenses, for Ps million, in provisions for loan losses, for Ps million, and in the income tax, for Ps million. The operating income for the first quarter of fiscal year 2014 totaled Ps.3,878.1 million, up 51.4% from the Ps.2,561.0 million recorded in the same quarter of the prior year. This positive development was due both to a higher net financial income (up Ps.1,011.1 million or 66.5%) and a higher net income from services (up Ps million or 29.4%). The net financial income included a Ps million profit from foreign-currency quotation differences, or approximately Ps million net of income tax and gross income tax charges. In pesos Table II Earnings per Share 1 st Q 4 th Q 1 st Q Average Shares Outstanding (in thousands) 562, , ,327 Book Value per Share Earnings per Share

3 INFORMATION DISCLOSURE The data shown in the tables of this report 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. The Bank refers to the consolidated Banco de Galicia y Buenos Aires S.A., 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) Limited, Tarjetas Regionales S.A. and its subsidiaries (mainly Tarjeta Naranja S.A. and Tarjetas Cuyanas S.A.), Tarjetas del Mar S.A., Galicia Valores S.A. Sociedad de Bolsa, Galicia Administradora de Fondos S.A., Compañía Financiera Argentina S.A. and Cobranzas y Servicios S.A. FIRST QUARTER OF FISCAL YEAR 2014 RESULTS Percentages Table III Profitability and Efficiency 1 st Q 4 th Q 1 st Q Return on Average Assets (*) Return on Average Shareholders Equity (*) Financial Margin (*) (1) Net Income from Services as a % of Operating Income (2) Net Income from Services as a % of Administrative Expenses Administrative Expenses as a % of Operating Income (2) (*) 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. Net financial income for the first quarter of fiscal year 2014 amounted to Ps.2,532.0 million, up Ps.1,011.1 million from the same quarter of the previous fiscal year. The net financial income for the first quarter of fiscal year 2014 includes a Ps million profit from foreign-currency quotation differences (including the results from foreign-currency forward transactions), compared to a Ps.15.6 million loss in the first quarter of fiscal year The quarter s profit was composed of a Ps.60.5 million gain from FX brokerage and of a Ps million profit from the valuation of the foreign-currency net position and the results from foreign-currency forward transactions, compared to a Ps.33.6 million profit and a Ps.49.2 million loss, respectively, in the first quarter of fiscal year The quarter s net financial income before foreign-currency quotation differences amounted to Ps.1,794.6 million, with a Ps million increase as compared to the Ps.1,536.5 million income of the same quarter of fiscal year 2013, as a consequence of the increase in the volume of activity with the private sector offset by a decrease in the spread of these transactions. The average interest-earning assets grew Ps.14,834 million as compared to the first quarter of the previous fiscal year, mainly as a consequence of the Ps.12,187 million increase in the average portfolio of loans to the private sector and of the Ps.1,822 million growth in the average balance of government securities. Interest-bearing liabilities increased Ps.11,667 million during the same period, due to the increase of the average balances of interest-bearing deposits and debt securities. 3

4 The average yield on interest-earning assets for the first quarter of fiscal year 2014 was 25.32%, with a 304 b.p. increase compared to the same quarter of the prior year. This increase was mainly due to the higher average interest rate on the portfolio of loans to the private sector. Likewise, the average cost of interest-bearing liabilities was 16.26%, with a 506 b.p. increase compared to the first quarter of the prior year, mainly due to increases in the cost of time deposits (664 b.p.) in line with market dynamics, and of debt securities (381 b.p.) as a consequence of the increase of the interest rate on the subordinated debt securities issued by the Bank according to contractual conditions. Table IV Average Balances, Yield and Rates (*) Average balances in millions of pesos. Yields and rates in annualized nominal % Av. B. Int. Av. B. Int. Av. B. Int. Av. B. Int. Av. B. Int. Interest-Earning Assets 64, , , , , Government Securities 5, , , , , Loans 55, , , , , Financial Trusts Securities Other Interest-Earning Assets 1, , , , Interest-Bearing Liabilities 47, , , , , Saving Accounts 9, , , , , Time Deposits 28, , , , , Debt Securities 7, , , , , Other Interest-Bearing Liabilities 2, , , , , (*) Does not include foreign-currency quotation differences. Annual nominal interest rates were calculated using a 360-day denominator. Provisions for loan losses for the first quarter of fiscal year 2014 amounted to Ps million, Ps million higher than in the same quarter of the prior year, increase recorded both in the consumer and in the corporate loan portfolios. Net income from services amounted to Ps.1,346.1 million, up 29.4% from the Ps.1,040.1 million recorded in the first quarter of the previous fiscal year. The increase of fees which stood out were deposit accounts fees (40.3%), insurance fees (33.0%) and fees related to national and regional credit cards (29.3%). Table V Income from Services, Net National Cards Regional Credit Cards CFA Deposit Accounts Insurance Financial Fees Credit-Related Fees Foreign Trade Collections Utility-Bills Collection Services Mutual Funds Other Total Income 1, , , , ,493.7 Total Expenditures Income from Services, Net 1, , , , ,

5 Administrative expenses for the quarter totaled Ps.1,988.7 million, up 20.8% from the same quarter of the previous year. Personnel expenses amounted to Ps.1,160.3 million, growing 16.4%, mainly as a consequence of a provision on account of future salary increases recorded during the quarter, offset by a decrease in staff of 955 employees (473 at the Bank and 482 at its subsidiaries). The remaining administrative expenses amounted to Ps million, with a Ps million increase (27.5%) as compared to Ps million from the first quarter of fiscal year 2013, due to the greater level of activity and to the increase of costs of different services provided to the Bank. Income from equity investments amounted to Ps.36.6 million, recording a 52.5% increase from the Ps.24.0 million of the first quarter of fiscal year This increase was mainly as a consequence of higher profits from Sudamericana Holding S.A. and Banelco S.A. Net other income for the first quarter amounted to Ps million, growing Ps.35.2 million as compared to the Ps.69.6 million profit for the same quarter of the prior year, mainly due to higher adjustments and interest on miscellaneous receivables (+Ps.31.7 million), higher punitive interests (+Ps.21.8 million), and higher credits recovered (+Ps.4.3 million), offset by net other provisions recorded (+Ps.18.3 million). The income tax charge was Ps million, Ps million higher than in the first quarter of fiscal year LEVEL OF ACTIVITY As of March 31, 2014, the Bank s total exposure to the private sector reached Ps.67,244 million, with an increase of 26.5% from a year before. Total loans include Ps.12,829 million corresponding to the regional credit card companies, which registered a 29.4% increase during the last twelve months. They also include Ps.3,370 million from CFA (including the financial trust CFA Trust I), which were up 29.2% during the same period. The Bank s market share of loans to the private sector as of March 31, 2014, without considering those granted by the regional credit card companies, was 8.68%, compared to an 8.88% and an 8.78% from March 31, and December 31, 2013, respectively. Table VI Exposure to the Private Sector Loans 58,318 57,408 51,924 50,311 46,058 Financial Leases 1,119 1,150 1,056 1, Corporate Securities Other Financing (*) 6,663 6,355 5,781 6,181 5,987 Subtotal 67,071 65,801 59,395 57,913 53,146 Securitized Assets (**) Total Credit 67,244 65,801 59,395 57,913 53,146 (*) 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. During the year, loans to the private sector registered growth in those granted to SMEs (35.3%), large corporations (28.0%), and individuals (23.8%). By sector of activity, the higher growth was recorded in the manufacturing sector (38.6%), in the agriculture and livestock sector (36.3%), in the consumer sector (25.1%) and in the retail and wholesale trade sector (16.9%). 5

6 Table VII Loans by Type of Borrower Large Corporations 6,877 6,508 6,703 7,173 5,374 SMEs 18,726 18,064 15,326 14,406 13,841 Individuals 32,201 31,988 29,348 27,812 26,021 Financial Sector Non-Financial Public Sector Total Loans 58,318 57,408 51,924 50,365 46,058 Allowances 2,372 2,129 2,169 2,067 1,870 Total Loans, Net 55,946 55,279 49,755 48,298 44,188 Table VIII Loans by Sector of Activity Financial Sector Services 3,362 3,373 2,823 3,109 2,869 - Public Sector Other 3,362 3,373 2,823 3,055 2,869 Agriculture and Livestock 7,626 7,160 6,084 5,559 5,594 Consumer 32,015 31,720 28,963 27,375 25,583 Retail and Wholesale Trade 5,294 5,401 5,234 5,433 4,529 Construction Manufacturing 8,208 7,721 7,284 7,155 5,923 Other Total Loans 58,318 57,408 51,924 50,365 46,058 Allowances 2,372 2,129 2,169 2,067 1,870 Total Loans, Net 55,946 55,279 49,755 48,298 44,188 As of March 31, 2014, the Bank s exposure to the public sector amounted to Ps.8,365 million. Excluding debt securities issued by the Argentine Central Bank said exposure reached Ps.3,234 million (3.7% of total assets), while as of March 31, 2013, it amounted to Ps.1,684 million (2.6% of total assets). This increase during the last twelve months was due to the acquisition of government securities, as Bonar 2017, provincial treasury bills and debt securities, and the Argentine Savings Bond for Economic Development (BAADE). Table IX Exposure to the Argentine Public Sector (*) Government Securities Net Position 7,473 4,216 5,392 3,459 3,007 Held for Trading 7,175 3,824 5,008 2,986 2,545 Bonar 2015 Bonds Loans Other Receivables Resulting from Financial Brokerage 892 1,105 1,107 1,098 1,070 Trust Certificates of Participation and Securities 886 1,079 1,103 1,094 1,067 Other Total Exposure 8,365 5,321 6,499 4,611 4,077 (*) 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. 6

7 As of March 31, 2014, the Bank s deposits amounted to Ps.55,892 million, representing a 35.3% increase during the last twelve months and a 7.4% increase during the quarter. Table X Deposits (*) In Pesos 51,782 48,382 44,385 41,677 38,450 Current Accounts 12,152 12,487 10,940 10,800 9,376 Saving Accounts 9,032 10,038 8,626 9,024 8,248 Time Deposits 29,647 25,050 24,083 21,208 20,253 Other In Foreign Currency 4,110 3,674 3,128 2,879 2,856 Total Deposits 55,892 52,056 47,513 44,556 41,306 (*) Includes CFA. As of March 31, 2014, the Bank s estimated market share of deposits in the Argentine financial system was 7.08%, compared to 6.92% of the prior quarter and to 6.71% of a year before. Considering only private-sector deposits, the Bank s estimated market share reached 9.31% as of March 31, 2014, compared to 9.20% and 8.96% from December 31, and March 31, 2013, respectively. Percentages Table XI Market Share (*) Total Deposits Private Sector Deposits Total Loans Loans to the Private Sector (*) Banco de Galicia and CFA, within the Argentine financial system, according to the daily information on deposits and loans published by the Argentine Central Bank. Deposits and Loans include only principal. The regional credit-card companies' data is not included. As of March 31, 2014, other financial liabilities amounted to Ps.22,271 million, Ps.6,439 million or 40.7% higher than the Ps.15,832 million recorded a year before. This growth was mainly due to the increase of financing from merchants in connection with credit card activities, for Ps.2,507 (45.7%), and of negotiable obligations, for Ps.2,382 million (42.0%). The increase of the balance of negotiable obligations was related to transactions of Tarjeta Naranja S.A. and Tarjetas Cuyanas S.A., and to the increase in the balance of dollar-denominated negotiable obligations of Banco Galicia and Tarjeta Naranja S.A. as a consequence of the evolution of the exchange rate during the period. Table XII Other Financial Liabilities Domestic Financial Institutions and Credit Entities 1,474 1,443 1,369 1,286 1,203 Foreign Financial Institutions and Credit Entities Negotiable Obligations (*) 8,054 7,160 6,495 6,182 5,672 Obligations in Connection with Spot Transactions Pending Settlement and Repurchase Agreement Transactions Obligations in Connection with Debts with Merchants due to Credit-Card Activities 7,996 8,019 6,429 5,728 5,489 Other 3,116 2,946 2,404 2,461 2,285 7

8 Total 22,271 20,769 18,509 17,469 15,832 (*) Includes subordinated negotiable obligations. As of March 31, 2014, the Bank had 2.8 million deposit accounts, which represent an increase of approximately 183 thousand accounts as compared with the same date of the previous year. Likewise, the number of credit cards reached 11.0 million, 987 thousand more than those managed a year before. ASSET QUALITY The Bank s non-accrual loan portfolio amounted to Ps.2,211 million as of March 31, 2014, representing 3.79% of total loans to the private-sector, compared to the 3.71% ratio recorded a year before. This increase was mainly related to the increase in the level of non-performing loans of the consumer portfolio. The coverage of the non-accrual loan portfolio with allowances for loan losses reached % as of the end of the first quarter of 2014, as compared to % as of March 31, 2013., except percentages Table XIII Loan Portfolio Quality Non-Accrual Loans (*) 2,211 2,051 2,133 1,979 1,708 With Preferred Guarantees With Other Guarantees Without Guarantees 2,103 1,954 2,063 1,917 1,652 Allowance for Loan Losses 2,372 2,129 2,169 2,067 1,870 Non-Accrual Loans to Private-Sector Loans (%) Allowance for Loan Losses to Private-Sector Loans (%) Allowance for Loan Losses to Non-Accrual Loans (%) Non-Accrual Loans with Guarantees to Non-Accrual Loans (%) (*) 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. During the quarter, Ps.421 million were charged off against the allowance for loan losses and direct charges to the income statement for Ps.10 million were made. Table XIV Consolidated Analysis of Loan Loss Experience Allowance for Loan Losses at the Beginning of the Quarter 2,129 2,169 2,067 1,870 1,732 Changes in the Allowance for Loan Losses Provisions Charged to Income Provisions Reversed Charge Offs (421) (524) (275) (220) (284) Allowance for Loan Losses at Quarter End 2,372 2,129 2,169 2,067 1,870 Charge to the Income Statement Provisions Charged to Income Direct Charge Offs Bad Debts Recovered (42) (81) (62) (64) (38) Provisions Reversed (*) Net Charge to the Income Statement (*) Recorded under Net Other Income/(Loss). 8

9 In the following table, asset quality information is also shown in terms of Total Credit. Total Credit is 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., except percentages Table XV Asset Quality - Total Credit Non-Accrual Portfolio (*) 2,237 2,085 2,170 2,007 1,734 With Preferred Guarantees With Other Guarantees Without Guarantees 2,125 1,984 2,094 1,940 1,675 Allowance for Credit Losses 2,416 2,172 2,209 2,106 1,904 Non-Accrual Portfolio to Private-Sector Credit (%) Allowance for Credit Losses to Private-Sector Credit (%) Allowance for Credit Losses to Non-Accrual Portfolio (%) Non-Accrual Portfolio with Guarantees to Non-Accrual Portfolio (%) (*) Includes credits classified under the categories mentioned in the note to Table XIII. CAPITALIZATION AND LIQUIDITY As of March 31, 2014, the Bank s consolidated computable capital was Ps.1,551 million higher than the Ps.6,336 million capital requirement. As of March 31, 2013, this excess amounted to Ps.1,123 million. The minimum capital requirement increased Ps.1,412 million as compared to March 31, 2013, mainly as a result of higher requirements of: (i) Ps.855 million due to the growth of the private-sector loan portfolio; (ii) Ps.403 million on operational risk; and (iii) Ps.154 million on market risk. Computable capital increased Ps.1,840 million as compared to March 31, 2013, mainly a consequence of: (i) a higher Tier I capital, for Ps.1,439 million, mainly due to the prior fiscal year s net income, offset by higher deductions, resulting from organization and development expenses; and (ii) a Ps.322 million increase in Tier II capital as a result of: (a) considering 100% of the provisions for loan losses in connection with the loan portfolio in normal situation (+Ps.205 million); and b) a higher balance of subordinated negotiable obligations (+Ps.117 million) due to the exchange rate evolution during the period, partially offset by the 64% limit (90% until December 31, 2013) on its balance admitted for this fiscal year due to regulations in force., except ratios Table XVI Consolidated Regulatory Capital Minimum Capital Required (A) 6,336 5,691 5,321 4,923 4,924 Allocated to Financial Assets, Fixed Assets, Other Assets and to Lending to the Public Sector 4,722 4,328 4,072 3,773 3,867 Allocated to Market Risk Allocated to Operational Risk 1,444 1,305 1,214 1,125 1,041 Computable Capital (B) 7,887 7,513 6,732 6,421 6,047 Tier I 5,985 5,478 5,007 4,804 4,546 Tier II 1,805 1,805 1,670 1,565 1,483 Additional Capital Market Variation Excess over Required Capital (B) - (A) 1,551 1,822 1,411 1,498 1,123 9

10 Total Capital Ratio (%) As of March 31, 2014, the Bank s liquid assets represented 82.91% of the Bank s transactional deposits and 35.24% of its total deposits, as compared to 59.00% and 27.59%, respectively, as of March 31, This increase was due to a lower credit-demand growth rate as compared to the deposits growth rate, opposite situation to that of the first quarter of fiscal year Table XVII Liquidity (unconsolidated) Liquid Assets (*) as a percentage of Transactional Deposits Liquid Assets (*) as a percentage of Total Deposits (*) 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. This report is a summary analysis of the Bank s financial condition and results of operations as of and for the period indicated. For a correct interpretation, this report must be read in conjunction with the Bank s financial statements, as well as with all other material periodically filed with the National Securities Commission ( and the Buenos Aires Stock Exchange ( In addition, the Argentine Central Bank ( may publish information related to the Bank 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. 10

11 SELECTED FINANCIAL INFORMATION CONSOLIDATED DATA (*) Cash and Due from Banks 14, , , , ,112.2 Government and Corporate Securities 6, , , , ,403.3 Net Loans 55, , , , ,188.0 Other Receivables Resulting from Financial Brokerage 6, , , , ,490.6 Equity Investments in Other Companies Bank Premises and Equipment, Miscellaneous and Intangible Assets 3, , , , ,536.0 Other Assets 2, , , , ,595.3 Total Assets 88, , , , ,421.7 Deposits 55, , , , ,863.5 Other Liabilities Resulting from Financial Brokerage 20, , , , ,596.3 Subordinated Negotiable Obligations 1, , , , ,235.8 Other 3, , , , ,038.3 Minority Interests Total Liabilities 81, , , , ,195.1 Shareholders' Equity 7, , , , ,226.6 Foreign-Currency Assets and Liabilities Assets 11, , , , ,103.2 Liabilities 12, , , , ,327.4 Net Forward Purchases/(Sales) of Foreign Currency (1) 1, , , , ,841.2 (*) Banco de Galicia y Buenos Aires S.A. consolidated with subsidiary companies (Section 33 - Law No. 19,550). (1) Recorded off-balance sheet. 11

12 SELECTED FINANCIAL INFORMATION CONSOLIDATED DATA (*) FINANCIAL INCOME 5, , , , ,774.4 Interest on Loans to the Financial Sector Interest on Overdrafts Interest on Promissory Notes Interest on Mortgage Loans Interest on Pledge Loans Interest on Credit-Card Loans 1, , , , Interest on Financial Leases Interest on Other Loans Net Income from Government and Corporate Securities Interest on Other Receivables Resulting from Financial Brokerage CER Adjustment Other FINANCIAL EXPENSES 2, , , , ,253.5 Interest on Saving Accounts Deposits Interest on Time Deposits 1, , Interest on Subordinated Obligations Other Interest Interest on Interbank Loans Received (Call Money Loans) Interest on Other Financing from Financial Entities Net Losses from Options Interest on Other Liabilities Resulting from Financial Brokerage Contributions to the Deposit Insurance Fund Quotation Differences on Gold and Foreign Currency CER Adjustment (0.2) Other GROSS FINANCIAL MARGIN 2, , , , ,520.9 PROVISIONS FOR LOAN LOSSES INCOME FROM SERVICES, NET 1, , , , ,040.1 ADMINISTRATIVE EXPENSES 1, , , , ,646.8 Personnel Expenses 1, , , , Directors and Syndics Fees Other Fees Advertising and Publicity Taxes Depreciation of Premises and Equipment Amortization of Organization Expenses Other Operating Expenses Other MINORITY INTEREST RESULTS (29.8) (48.5) (39.6) (28.6) (26.6) INCOME FROM EQUITY INVESTMENTS NET OTHER INCOME / (LOSS) INCOME TAX NET INCOME / (LOSS) (*) Banco de Galicia y Buenos Aires S.A., consolidated with subsidiary companies (Section 33 Law No. 19,550). 12

13 ADDITIONAL INFORMATION Mutual Funds () (*) 5, , , , ,254.9 Physical Data (Number of) Employees 12,205 12,347 12,526 12,803 13,160 Banco Galicia 5,424 5,487 5,608 5,650 5,897 Regional Credit-Card Companies 5,563 5,668 5,767 5,925 6,031 Compañía Financiera Argentina 1,196 1,170 1,129 1,202 1,207 Other companies Branches Bank Branches Regional Credit-Card Companies Compañía Financiera Argentina Other Points of Sale Regional Credit-Card Companies Compañía Financiera Argentina Deposit Accounts (in thousands) 2,815 2,768 2,812 2,711 2,632 Credit Cards (in thousands) 10,988 10,891 10,616 10,376 10,001 Inflation and Exchange Rates Retail Price Index (%) (**) Wholesale Price Index (IPIM) (%) (**) CER Coefficient (%) (**) Exchange Rate (Pesos per US$) (***) (*) Market value of the FIMA mutual fund units under custody. (**) Variation within the quarter. (***) As of the last working day of the quarter. 13

14 RECENT DEVELOPMENTS BANCO GALICIA SHAREHOLDERS MEETING The annual shareholders meeting of the Bank was held on April 29, The following table shows the composition of the Board of Directors resulting from the shareholders resolutions: Term expiration date: December 31, Chairman Sergio Grinenco 2014 Vice Chairman Pablo Gutierrez 2016 Secretary Director Guillermo J. Pando 2014 Directors Luis M. Ribaya 2016 Raúl H. Seoane 2016 Pablo M. Garat (1) 2015 Ignacio A. González (1) 2015 Alternate Directors Enrique García Pinto 2015 Cirilo E. Martin 2014 Juan C. Fossatti 2014 Augusto R. Zapiola Macnab 2015 Oscar J. Falleroni 2015 (1) Independent directors according to CNV rules. At the same meeting, the following syndics were also designated for one year: Term expiration date: December 31, Syndics Enrique M. Garda Olaciregui 2014 Norberto D. Corizzo 2014 Luis A. Díaz 2014 Alternate Syndics Fernando Noetinger 2014 Miguel N. Armando 2014 Horacio Tedín 2014 The shareholders resolved that the Ps.1,836.9 million profit of fiscal year 2013 be distributed as follows: Ps million to Legal Reserve and Ps.1,469.5 million to Discretionary Reserve for future distribution of profits. CONTROLLING COMPANY On February 25, 2014, Grupo Financiero Galicia S.A., which controls 99.62% of the shares of Banco Galicia, resolved to issue an offer to acquire the 2,123,962 shares of Banco Galicia owned by third parties, at a price of Ps per share. On April 24, 2014, said transaction was approved by the CNV (the National Securities Commission ), and Grupo Financiero Galicia S.A. deposited the total amount to be paid to third parties holding said shares. In addition, Banco Galicia requested to withdraw the public offering and to delist its shares, which quotation was suspended from April 30,

15 TARJETAS REGIONALES S.A. In the annual shareholders meeting of Tarjetas Regionales S.A., held in April 2014, the shareholders approved the distribution of cash dividends for Ps.130 million. GALICIA ADMINISTRADORA DE FONDOS S.A. On April 15, 2014, Banco Galicia sold its interest in Galicia Administradora de Fondos S.A. Sociedad Gerente de Fondos Comunes de Inversión to Grupo Financiero Galicia S.A., for Ps.39.5 million. MOVE Banco Galicia launched Move, a product for university students. Move is the first 100% on-line and mobile financial service, an account which combines a mobile application with a debit card, and that establishes a new customer service model, more efficient and closer through social networks. The Bank made agreements with universities in order to provide the Move card to their students at no cost, and also made a strategic agreement with the issuer of the International Student Identity Card (ISIC), so that the new plastic allows access to more than 50,000 promotions for this segment. This report is a summary analysis of the Bank s financial condition and results of operations as of and for the period indicated. For a correct interpretation, this report must be read in conjunction with the Bank s financial statements, as well as with all other material periodically filed with the National Securities Commission ( and the Buenos Aires Stock Exchange ( In addition, the Argentine Central Bank ( may publish information related to the Bank 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. 15