Group 1 - Grupo Financiero Galicia (GGAL) is a financial holding company operating in Argentina, which includes one of the largest private banks in the country, Banco de Galicia y Buenos Aires, and other credit card companies [1] - The company focuses on value investments, particularly in sectors like oil & gas, metals, and mining, especially in emerging markets [1] - The investment strategy emphasizes companies with sustained free cash flows, low leverage, and sustainable debt, particularly those in distress with high recovery potential [1] Group 2 - The analyst has a financial master's degree with a specialization in company valuation and an economic degree, indicating a strong educational background in finance [1] - The company maintains a pro-shareholder attitude, with solid buyback programs and dividend distributions over time [1] - The analyst aims to share information about companies to add value to individual investment decisions within the Seeking Alpha community [1]

Financial Data and Key Metrics Changes - Grupo Financiero Galicia reported a net loss of ARS 87.7 billion for the quarter, primarily due to losses from Banco Galicia, NaranjaX, and Galicia Seguros, partially offset by profits from Galicia Asset Management [5] - The net operating income decreased by 23%, with net interest income down by 10% and loan loss provisions up by 26% [7][9] - The return on equity (ROE) for the quarter was -4.7%, while the accumulated annualized figures for the fiscal year reached 4.7% [5][12] Business Line Data and Key Metrics Changes - Banco Galicia's extraordinary expenses amounted to ARS 101.1 billion, negatively impacting financial margins due to high interest rates and increased non-performing loans [6] - Peso-denominated loans to the private sector averaged ARS 79.3 trillion, showing a 105.4% year-over-year increase, while dollar-denominated loans reached $18.3 billion, a 153.4% annual increase [4] - Net interest income decreased by 10% compared to the previous quarter, driven by a 35% increase in interest expenses [8] Market Data and Key Metrics Changes - The Argentine economy recorded a 5% year-over-year increase in economic activity during September, with a primary surplus of 0.5% of GDP [2] - The exchange rate averaged ARS 1,400 per dollar in September 2025, reflecting a 15.6% devaluation compared to June 2025 [3] - Private sector deposits in pesos averaged ARS 94.1 trillion, increasing by 53% year-over-year [4] Company Strategy and Development Direction - The company aims to improve profitability in the fourth quarter and next year, with expectations of an ROE in the low teens range for 2026 [15][16] - The focus will be on maintaining liquidity and solvency metrics while navigating high political effects and monetary volatility [12][13] - The company anticipates a peak in non-performing loans (NPLs) around March next year, with expectations of improvement thereafter [17][38] Management's Comments on Operating Environment and Future Outlook - Management noted that margins were low due to high interest rates but are expected to improve in November and December [15][66] - The company is optimistic about the economic outlook, with anticipated growth in lending and market share [35][36] - Management highlighted the importance of monitoring economic conditions and adjusting strategies accordingly, especially regarding loan origination and asset quality [108] Other Important Information - The restructuring expenses associated with the merger with HSBC Argentina amounted to ARS 105.3 billion [5] - The bank's total regulatory capital ratio decreased to 22.1%, while the tier one ratio was 21.8% [12] - The company expects to maintain a comfortable capital level, with a minimum appetite to operate at 13% to 13.5% [24] Q&A Session Summary Question: Capital ratio and ROE expectations - Analyst inquired about the capital ratio and how it relates to ROE targets, especially in light of expected peaks in NPLs [21] - Management responded that the capital ratio was impacted by bond valuations but is now stabilizing, with a comfortable capital level projected [23][24] Question: Loan origination and maturity - Analyst asked about the current state of loan origination and maturity compared to earlier in the year [22] - Management indicated a slowdown in consumer lending due to portfolio quality but expects to see longer-term commercial lending as the market stabilizes [27][28] Question: Long-term growth expectations - Analyst sought clarity on long-term growth expectations and potential private investments in Argentina [31] - Management projected a 25% growth in lending in real terms, with a focus on commercial lending and consumer lending improvements [35][36] Question: Asset quality and NPLs - Analyst questioned the confidence in the peak of NPLs and the expected cost of risk [32] - Management explained that the peak is anticipated around March, with expected improvements in asset quality driven by better origination practices [38][109] Question: Economic assumptions for inflation and interest rates - Analyst requested economic assumptions regarding inflation and interest rates for the upcoming year [88] - Management provided estimates of 30% inflation for this year and 18% for next year, with GDP growth projected at 4% for this year [89] Question: Integration costs from HSBC acquisition - Analyst inquired about any remaining integration costs from the HSBC acquisition [81] - Management confirmed that most restructuring costs have been booked, with only minor expenses expected in the fourth quarter [82]

Financial Data and Key Indicators Changes - Grupo Financiero Galicia reported a net loss of ARS 87.7 billion for the quarter, primarily due to losses from Banco Galicia, NaranjaX, and Galicia Seguros, partially offset by profits from Galicia Asset Management [5] - The net operating income decreased by 23%, with net interest income down by 10% and loan loss provisions up by 26% [7][9] - The return on equity (ROE) for the quarter was -4.7%, while the accumulated annualized figures for the fiscal year reached 4.7% [5][12] Business Line Data and Key Indicators Changes - Banco Galicia's results included ARS 101.1 billion in extraordinary expenses, negatively impacted by increased cost of risk and a decrease in financial margin due to high interest rates [6] - Peso-denominated loans to the private sector averaged ARS 79.3 trillion, showing a 9.7% quarterly increase and a 105.4% year-over-year increase [4] - Private sector dollar-denominated loans amounted to $18.3 billion, recording a 15.8% quarterly growth and a 153.4% annual increase [4] Market Data and Key Indicators Changes - The Argentine economy recorded a 5% year-over-year increase in economic activity during September, with a primary surplus of 0.5% of GDP [2] - The exchange rate averaged ARS 1,400 per dollar in September 2025, reflecting a 15.6% devaluation compared to June 2025 [3] - Private sector deposits in pesos averaged ARS 94.1 trillion in September, increasing by 5.6% during the quarter and 53% year-over-year [4] Company Strategy and Development Direction - The company aims to improve profitability in the fourth quarter and next year, with expectations of an ROE in the low teens range for 2026 [15][16] - The focus will be on maintaining liquidity and solvency metrics while navigating high political effects and monetary volatility [12][13] - The company anticipates a peak in non-performing loans (NPLs) around March next year, with expectations of improvement thereafter [17][39] Management's Comments on Operating Environment and Future Outlook - Management noted that margins were low due to high interest rates but are expected to improve in November and December [15][67] - The company is optimistic about the economic environment post-elections, with expectations of increased private investments in sectors like oil and gas, mining, and agriculture [37][39] - Management expressed confidence in maintaining a healthy capital ratio and does not foresee constraints on loan growth [24][95] Other Important Information - The restructuring expenses associated with the merger with HSBC Argentina amounted to ARS 105.3 billion [5] - The bank's estimated market share of loans to the private sector was 14.8%, and the market share of deposits was 16.4% [11] Q&A Session Summary Question: Capital ratio and origination - Analyst inquired about the capital ratio and how it relates to origination and risk-taking levels, especially in light of expected peaks in NPLs [20][21] Answer: Capital management - Management explained that the capital ratio was impacted by bond valuations but is now stabilizing, with a minimum appetite to operate at 13% [23][24] Question: Long-term expectations for lending - Analyst asked about lending expectations for the next year and potential private investments in Argentina [32][33] Answer: Growth projections - Management projected a 25% growth in lending in real terms, with a focus on commercial lending and consumer lending improvements [36][37] Question: Asset quality and NPLs - Analyst sought clarification on asset quality dynamics and expected NPL levels [73] Answer: NPL expectations - Management indicated that NPLs are expected to peak around March next year, with a target range of 4-4.5% by the end of 2026 [78] Question: Integration costs from HSBC acquisition - Analyst asked about any remaining integration costs from the HSBC acquisition [82] Answer: Integration costs - Management confirmed that most restructuring costs were booked in the third quarter, with only minor costs expected in the fourth quarter [83] Question: Economic assumptions for inflation and interest rates - Analyst requested economic assumptions for inflation and interest rates for the upcoming year [90] Answer: Economic outlook - Management provided estimates of 30% inflation for this year and 18% for next year, with GDP growth projected at 4% for this year and 3.7% for next year [90]

Financial Data and Key Indicators Changes - The net loss for the quarter amounted to ARS 87.7 billion, primarily due to losses from Banco Galicia, NaranjaX, and Galicia Seguros, partially offset by profits from Galicia Asset Management [4] - The quarter included extraordinary restructuring expenses associated with the merger with HSBC Argentina amounting to ARS 105.3 billion [4] - Net operating income decreased by 23%, with net interest income down by 10% and loan loss provisions increasing by 26% [6][8] Business Line Data and Key Indicators Changes - Banco Galicia's results included ARS 101.1 billion of extraordinary expenses, negatively affected by increased cost of risk and a decrease in financial margin [5] - Private sector dollar-denominated loans amounted to $18.3 billion, recording a 15.8% quarterly growth and a 153.4% annual increase [3] - Time deposits in pesos rose by 13.1% during the quarter and 76.3% year-over-year [3] Market Data and Key Indicators Changes - The average exchange rate was ARS 1,400 per dollar in September 2025, reflecting a 15.6% devaluation compared to June 2025 [2] - Private sector deposits in pesos averaged ARS 94.1 trillion in September, increasing by 5.6% during the quarter and 53% year-over-year [3] - The estimated market share of loans to the private sector was 14.8%, while the market share of deposits was 16.4% [10] Company Strategy and Development Direction - The company expects an improvement in profitability during the fourth quarter and next year, with a projected ROE of around 4% for 2025 and between 11% and 12% for 2026 [12][13] - The focus will be on improving margins and managing costs, with a significant reduction in headcount due to restructuring [15] - The company anticipates a peak in non-performing loans (NPLs) around March next year, followed by improvement as new, better-quality loans gain weight in the portfolio [15][27] Management's Comments on Operating Environment and Future Outlook - The management noted that the third quarter was marked by high political effects and monetary volatility, negatively affecting margins and asset quality [11] - There is an expectation of a gradual recovery in asset quality, with new origination performing better than older loans [56] - The company is optimistic about the economic environment post-elections, anticipating increased investment and lending opportunities [25][27] Other Important Information - The total regulatory capital ratio reached 22.1%, decreasing 160 basis points from the previous quarter, while the tier one ratio was 21.8% [11] - The company is monitoring liquidity and capital needs closely, with a minimum capital appetite of 13% to 13.5% [19] - The company has seen a significant reduction in dollar purchases from customers post-elections, indicating a stabilization in demand [51] Q&A Session Summary Question: Capital ratio and ROE expectations - The capital ratio was down 120 basis points from the second quarter, with expectations for ROE to improve gradually [16][30] Question: NPL peak and asset quality - The management expects NPLs to peak around March next year, with a range of 6-7% anticipated [27][28] Question: Economic assumptions for inflation and interest rates - The company forecasts GDP growth of 4% for this year and 3.7% for next year, with inflation expected to end this year at 30% and next year at 18% [47][48] Question: Loan-to-deposit ratio and liquidity - The loan-to-deposit ratio is around 99-100%, and the company is comfortable with this level, expecting deposit growth to continue [48] Question: Future funding and market conditions - The company is exploring potential debt in the market but prioritizes deposit growth as a stable funding source [34][35]

Argentine Economy - Real Gross Domestic Product is projected to increase by 3.6% in 2025 and 3.9% in 2026[5] - The Non-Financial Public Sector's Primary Fiscal Balance is projected to be 0.3% of GDP in both 2025 and 2026[14] - The Argentine Central Bank financing is projected to be 0.6% of GDP in 2025[16] - The current account is projected to be 0.3% of GDP in 2025[25] - Exports are projected to reach $81.5 billion in 2025 and $82.9 billion in 2026[26] Argentine Financial System - Financial Depth: Deposits are 18% of GDP and Loans are 10% of GDP in Argentina[44] - Private Sector Deposits increased 135.2% YoY and Private Sector Credit increased 135% YoY as of November 2025[49, 51] - As of August 31, 2025, Private Sector Banks hold 30.8% of the market share of private-sector deposits[62] - As of September 2025, the banking system's ROE is -0.1% and ROA is 0.0%[66, 67] Grupo Financiero Galicia (GFG) - GFG's ROE for 3Q25 was (4.7)% and ROA was (0.8)%[83] - Banco Galicia's ROE for 3Q25 was (7.3)% and ROA was (1.3)%[92] - Naranja X's ROE for 3Q25 was (2.5)% and ROA was (0.4)%[159]

November 2025 z Investor Presentation Real Gross Domestic Product % Change YoY 2.7% -2.1% 2.8% -2.6% -2.0% -9.9% 10.4% 6.0% -1.9% -1.3% 3.9% 3.6% -15% -10% -5% 0% 5% 10% 15% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025f 2026f Source: Banco Galicia based on INDEC, BCRA and own estimations Source: Banco Galicia based on INDEC Industrial Production -2.3% 3Q25 -2.0% -30% -15% 0% 15% 30% 1Q18 4Q18 3Q19 2Q20 1Q21 4Q21 3Q22 2Q23 1Q24 4Q24 3Q25 QoQ % Var. (s.a.) YoY % Var. -0.1% 2Q25 6.3% -20% -10% 0% 10% ...

Group 1 - The article does not provide any specific content or key points related to a company or industry [1]

Core Insights - Polen Capital's "Polen U.S. SMID Cap Growth Strategy" achieved a return of 14.8% gross and 14.4% net of fees in Q3 2025, outperforming the Russell 2500 Growth Index which returned 10.7% [1] - Grupo Financiero Galicia S.A. (NASDAQ:GGAL) was highlighted as a significant detractor from the portfolio's performance, with a one-month return of -6.11% and a 52-week decline of 16.88% [2][3] Performance Summary - The Polen U.S. SMID Cap Growth Strategy's performance in Q3 2025 was strong, with returns significantly above the benchmark index [1] - Grupo Financiero Galicia S.A. closed at $46.14 per share on November 21, 2025, with a market capitalization of $7.508 billion [2] Company Analysis - Grupo Financiero Galicia S.A. faced challenges due to newly imposed liquidity measures in Argentina, which are expected to pressure profitability in the near term [3] - The company is not among the top 30 most popular stocks among hedge funds, although it saw an increase in hedge fund interest from 19 to 23 portfolios in the last quarter [4]

Group 1 - The article does not provide any specific content or key points related to a company or industry [1]

Group 1 - The recent elections in Argentina yielded unexpectedly positive results, leading to significant stock price increases, with certain stocks experiencing nearly 50% upside [1] - Grupo Financiero Galicia is highlighted as a key beneficiary of the election outcomes, reflecting the potential for investment opportunities in the Argentine market [1] Group 2 - The article emphasizes the challenges of making investment decisions in Argentina, often referred to as a "serial defaulter," indicating the inherent risks in the market [1] - The author's extensive experience in investment and entrepreneurship, along with a focus on identifying undervalued stocks, suggests a strategic approach to navigating the complexities of the Argentine financial landscape [1]