Core Viewpoint - Grupo Financiero Galicia S.A. announced a secondary offering of 11,721,449 American Depositary Shares (ADSs) at a price of $54.25 per ADS, representing 117,214,490 Class B ordinary shares, with proceeds going entirely to the selling shareholder, HSBC Bank plc [1][2]. Company Overview - Grupo Financiero Galicia S.A. is one of Argentina's largest financial services groups, focusing on creating long-term value through various financial services including savings, credit, investment, insurance, and digital solutions [6][7]. - The company has over 110 years of experience and operates through multiple subsidiaries, including Banco de Galicia y Buenos Aires S.A.U., Galicia Más Holdings, and Galicia Seguros, among others [7]. Offering Details - The offering is conducted under an effective shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC), and a final prospectus supplement will be available [3]. - The offering is expected to close on June 12, 2025, subject to customary closing conditions [2]. Regulatory Information - The ADSs are not authorized for public offering in Argentina and are not being sold under Argentine Capital Markets Law [1]. - The documents related to the offering have not been reviewed or authorized by the Argentine National Securities Exchange Commission (CNV) [1]. Investor Contact - For further inquiries, the investor relations officer can be contacted via the provided email and phone number [8].

Core Viewpoint - Grupo Financiero Galicia S.A. is launching an underwritten secondary offering of 11,721,449 American Depositary Shares (ADSs) representing 117,214,490 Class B ordinary shares, with all proceeds going to the selling shareholder, HSBC Bank plc [1][2]. Company Overview - Grupo Financiero Galicia S.A. is one of Argentina's largest financial services groups, aiming to create long-term value through a variety of financial services including savings, credit, investment, insurance, and digital solutions [6][8]. - The company has over 110 years of experience and operates through several subsidiaries, including Banco de Galicia y Buenos Aires S.A.U., Galicia Más Holdings, and Galicia Seguros, among others [8]. Offering Details - The offering is being conducted under an effective shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC) [3]. - The company will not receive any proceeds from the offering, as all ADSs are being offered by the selling shareholder [2].

GRUPO FINANCIERO GALICIA S.A. AND SUBSIDIARIES | INDEX TO CONSOLIDATED FINANCIAL STATEMENTS | | | --- | --- | | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (PCAOB ID NUMBER: 1349) | F-1 | | CONSOLIDATED STATEMENT OF FINANCIAL POSITION | F-4 | | CONSOLIDATED STATEMENT OF INCOME | F-6 | | CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME | F-8 | | CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY | F-9 | | CONSOLIDATED STATEMENT OF CASH FLOWS | F-12 | | NOTES TO THE CONSOLIDATED FINANCI ...

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Grupo Financiero Galicia (NASDAQ: GGAL ) is at a turning point. The recent acquisition of HSBC Argentina allows it to consolidate its position as the largest private bank in the country, expanding its customer base, its operationalI am an individual investor with over five years of experience in personal investing, holding a PhD in Economics from UCEMA. My investment approach focuses on value companies with solid long-term potential. I share my knowledge with the community by offering analysis to support in ...

Financial Performance - Banco Galicia's Gross Brokerage Margin (GBM) for the first year is limited to a potential loss of 12%, with a negative difference of -3.04% recorded under the "+400/200 bps" scenario compared to the base scenario [1527]. - As of December 31, 2024, Banco Galicia's consolidated GBM showed a variation of 85,363 million Pesos (2.18%) under a 200 bps increase in interest rates [1529]. Risk Management - The Risk Management Division is responsible for identifying and managing various risks, ensuring the board is fully aware of the exposure [1518]. - The Risk Management Committee has executive responsibility for defining and enforcing risk management policies and monitoring compliance [1519]. - The methodology for calculating interest rate risk includes a "critical" scenario derived from statistical simulations of historical interest rate data [1533]. - The maximum tolerable losses for total risk (currency + fixed-income instruments + interest rate derivatives) were set at Ps.64,528 million [1562]. Currency Exposure - Banco Galicia's net asset position in foreign currency was Ps.37,157 million (US$36 million) as of December 31, 2024, after adjustments for forward purchases [1538]. - The impact of a 40% increase in the Peso's value relative to the Dollar would result in a gain of 52,020 million Pesos, while a 40% decrease would lead to a loss of 22,294 million Pesos [1540]. - Banco Galicia has established limits for foreign currency mismatches at 12% and +30% of the bank's computable regulatory capital (RPC) [1537]. - As of December 31, 2024, Grupo Financiero Galicia's foreign currency assets totaled Ps.9,599,309 million, including Ps.5,915,544 million in cash and balances [1548]. - The liabilities in foreign currency amounted to Ps.9,641,583 million, primarily consisting of Ps.7,732,118 million in deposits [1549]. - The net liability position from the consolidated balance sheet was Ps.17,682 million, with a net asset position in foreign currency of Ps.184,271 million, equivalent to US$178.5 million [1550]. - Banco Galicia's net liability position in foreign currency represented -6.3% of its computable regulatory capital (RPC) at fiscal year-end [1551]. - As of December 31, 2024, overseas foreign currency transfer risk exposure was 6.61% of total liabilities, below the 15% limit [1566][1567]. Asset and Liability Management - The total gap in financial assets and liabilities as of December 31, 2024, was 6,063,744 million Pesos, with a significant portion in Pesos adjusted by UVA [1546]. - Non-adjusted Peso-denominated assets were Ps.10,904,639 million, while non-adjusted liabilities were Ps.10,741,917 million, resulting in a net asset position of Ps.2,839,842 million [1552]. - The net asset position adjusted by UVA was Ps.2,811,270 million, primarily from government securities and loans [1553]. - Other assets included property, plant, and equipment valued at Ps.1,358,662 million [1555]. Interest Rate Risk - The net present value of assets and liabilities is calculated monthly, with a limit on interest rate risk exposure not exceeding 15% of consolidated Tier 1 capital; as of December 31, 2024, the "Value at Risk" was -5.70% of Tier 1 capital [1536]. - As of December 31, 2024, overseas foreign currency transfer risk exposure was 6.61% of total liabilities, below the 15% limit [1566][1567]. Support to Public Sector - Banco Galicia provides financial assistance to the non-financial public sector through government securities and direct loans [1569].

Financial Performance - Net income for the year reached Ps. 1,624,744,805, a significant increase of 121.1% compared to Ps. 734,238,287 in 2023[29]. - Basic earnings per share increased to Ps. 1,095.51 in 2024, compared to Ps. 497.89 in 2023, marking a growth of 120.1%[31]. - Total comprehensive income attributable to the parent company's owners was Ps. 1,639,386,979, compared to Ps. 737,597,663 in 2023, reflecting an increase of 122.4%[33]. - Income before Taxes from Continuing Operations increased to $2.21 billion in 2024 from $1.18 billion in 2023, representing an 87% year-over-year growth[41]. - Net operating income for the year was reported at Ps. 7,110,463,722, slightly down from Ps. 7,306,221,802 in 2023[29]. Assets and Liabilities - Total assets increased to Ps. 32,517,979,372 as of December 31, 2024, up from Ps. 22,246,858,046 in 2023, representing a growth of approximately 46%[25]. - Total liabilities increased to Ps. 26,454,235,292 as of December 31, 2024, up from Ps. 17,854,034,339 in 2023, representing a growth of 48.5%[27]. - Loans and other financing rose to Ps. 14,388,091,921 in 2024, up from Ps. 6,708,657,840 in 2023, reflecting an increase of approximately 114%[25]. - Cash and due from banks increased to Ps. 6,744,840,168 in 2024, compared to Ps. 4,346,311,187 in 2023, marking a growth of about 55%[25]. - The company reported a significant increase in financial assets pledged as collateral, rising to Ps. 1,484,416,075 in 2024 from Ps. 939,774,618 in 2023, a growth of approximately 58%[25]. Income and Expenses - Interest income decreased to Ps. 8,244,240,311 in 2024 from Ps. 10,353,121,006 in 2023, reflecting a decline of 20.3%[29]. - Net income from interest rose to Ps. 5,149,812,618, up 36.8% from Ps. 3,762,271,310 in the previous year[29]. - Fee income increased to Ps. 1,271,266,296, up from Ps. 1,190,600,233 in 2023, a growth of 6.8%[29]. - The company reported a loss on net monetary position of Ps. 2,384,891,465, an improvement from a loss of Ps. 3,306,755,066 in 2023[29]. Shareholders' Equity - Total shareholders' equity attributable to the parent company's owners grew to Ps. 6,063,585,599, up from Ps. 4,392,630,487 in 2023, an increase of 38.1%[27]. - As of December 31, 2024, total shareholders' equity reached Ps. 6,063,744,080, up from Ps. 4,392,823,707 at the end of the previous year[35]. - The company distributed cash dividends totaling Ps. 648,652,068 during the fiscal year, impacting retained earnings[35]. - A capital increase of Ps. 680,220,201 was recorded, enhancing the company's financial position[35]. Acquisitions and Investments - The acquisition of GGAL Holdings S.A. was completed with a fair value of net assets acquired amounting to Ps. 1,793,241,094[20]. - The acquisition of HSBC Argentina Holdings S.A. and subsidiaries resulted in a cash payment of $364 million, net of cash acquired[42]. - The business combination resulted in an addition of Ps. 101,505 to the total equity, reflecting strategic growth initiatives[35]. Impairments and Provisions - The expected credit loss allowance was Ps. 709,331,237 thousand as of December 31, 2024, compared to Ps. 290,011,033 in 2023, indicating a significant increase in risk provisioning[15]. - Impairment Charge rose significantly to $862.8 million in 2024, compared to $415.2 million in 2023, indicating a 107% increase[41]. - The Group has recognized an impairment on the value of real estate amounting to Ps. 2,004,137 as of December 31, 2024[133]. - The Group recognized an impairment on real estate valued at Ps. 17,099,191 as of December 31, 2024[146]. Cash Flow and Liquidity - Net Cash Generated by Operating Activities decreased slightly to $3.50 billion in 2024 from $3.63 billion in 2023, a decline of 4%[41]. - Net Cash Generated by Investment Activities turned positive at $865.2 million in 2024, compared to a cash outflow of $178.3 million in 2023[41]. - Total Cash and Cash Equivalents at the end of 2024 stood at $7.41 billion, up from $7.12 billion at the end of 2023, reflecting a 4% increase[41]. - Dividends paid increased to $614.9 million in 2024 from $390.4 million in 2023, marking a 57% rise[41]. Regulatory and Accounting Standards - The Group's financial statements will not be significantly impacted by the amendments to IAS 7 and IFRS 7 regarding Supplier Financing Arrangements, effective January 2024[56]. - The amendments to IAS 21 regarding Lack of Exchangeability are expected to have no significant impact on the Group's financial statements, effective January 2025[57]. - The targeted amendments to IFRS 9 and IFRS 7 are estimated to not significantly affect the Group's financial statements, effective January 2026[58]. - IFRS 18 introduces new presentation and disclosure requirements, with the Group currently assessing its impact, effective January 2027[59]. - The new standard IFRS 19 allows eligible subsidiaries to apply reduced disclosure requirements, with the Group evaluating its effects, effective January 2027[60].

Group 1 - Following the acquisition of HSBC's operations in Argentina, Galicia has become the largest private financial group in Argentina [1] - Galicia closed the previous year with exceptional results, indicating strong financial performance [1] Group 2 - The article highlights the competitive advantage of Galicia in the Argentine financial sector, particularly after the acquisition [1] - The focus on good management and future prospects is emphasized as key factors for Galicia's success [1]

Group 1 - Grupo Financiero Galicia S.A. (NASDAQ: GGAL) has experienced a share price increase of nearly 250% year-to-date [1] - The surge in share price is primarily due to increased investor confidence in Argentina, linked to Javier Milei's economic policies [1] Group 2 - The company is benefiting from a positive market sentiment as the economic reforms appear to be yielding results [1]

Core Viewpoint - Grupo Financiero Galicia (GGAL) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks rating system is based on the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years [2]. - For the fiscal year ending December 2024, Grupo Financiero Galicia is expected to earn $8.17 per share, representing a -6.3% change from the previous year [9]. - Over the past three months, the Zacks Consensus Estimate for Grupo Financiero Galicia has increased by 8.4%, indicating a positive trend in earnings estimates [9]. Impact of Institutional Investors - Changes in a company's future earnings potential, as shown by earnings estimate revisions, are strongly correlated with near-term stock price movements. Institutional investors utilize these estimates to determine the fair value of a company's shares, influencing their buying or selling actions [5]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - The upgrade of Grupo Financiero Galicia to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for price appreciation in the near term [12].