Group 1 - Grupo Financiero Galicia has recently acquired HSBC Argentina, positioning itself as the largest private bank in the country [1] - The acquisition allows Grupo Financiero Galicia to expand its customer base and operational capabilities [1]

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].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell even higher, with the expectation that established trends will continue [1] Company Overview: Grupo Financiero Galicia (GGAL) - GGAL currently holds a Momentum Style Score of B, indicating a positive outlook based on price changes and earnings estimate revisions [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [3] Performance Metrics - Over the past week, GGAL shares increased by 3.48%, outperforming the Zacks Banks - Foreign industry, which rose by 1.99% [6] - In a longer timeframe, GGAL's shares have surged by 52.58% over the past quarter and 218.51% over the last year, while the S&P 500 only increased by 4.57% and 31.09%, respectively [7] Trading Volume - GGAL's average 20-day trading volume is 1,212,776 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the last two months, one earnings estimate for GGAL has increased, raising the consensus estimate from $4.60 to $7.54 [10] - For the next fiscal year, one estimate has also moved upwards, with no downward revisions noted [10]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling even higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with Grupo Financiero Galicia (GGAL) currently holding a Momentum Style Score of A [2] Group 2: Performance Metrics - GGAL has a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperformance in the market [3] - Over the past week, GGAL shares increased by 12.95%, significantly outperforming the Zacks Banks - Foreign industry, which rose by only 0.57% [5] - In the last quarter, GGAL shares rose by 19.29%, and over the past year, they have surged by 157.13%, while the S&P 500 only increased by 3.12% and 23.92%, respectively [6] Group 3: Trading Volume and Earnings Outlook - GGAL's average 20-day trading volume is 1,237,474 shares, indicating a bullish sign with rising stock prices [7] - In terms of earnings estimates, GGAL's consensus estimate increased from $4.60 to $10.42 over the past 60 days, with one upward revision and no downward revisions for the current fiscal year [9]

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]. - The Zacks Consensus Estimate for Grupo Financiero Galicia has increased by 126.5% over the past three months, with expected earnings of $10.42 per share for the fiscal year ending December 2024, representing a year-over-year change of 19.5% [9]. Impact of Earnings on Stock Prices - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements [5]. - Institutional investors utilize earnings estimates to determine the fair value of a company's shares, leading to buying or selling actions that affect stock prices [5]. Zacks Rating System - The Zacks Rank stock-rating 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 potential for higher stock prices in the near term [11].

Funding and Financial Position - As of December 31, 2023, total funding amounted to Ps.10,216,058 million, a decrease from Ps.10,488,176 million in 2022[984] - Deposits represented 56% of total funding as of December 31, 2023, down from 64% in 2022, with a 14% decrease in the deposit base[987] - Time deposits decreased significantly from Ps.2,636,766 million in December 2022 to Ps.1,160,459 million in December 2023, a reduction of Ps.1,476,307 million[987] - Outstanding debt securities as of December 31, 2023, were Ps.298,328 million, a decrease of 15% from Ps.350,982 million in 2022[989] - The total amount of financing from local financial institutions was Ps.102,023 million, with Ps.94,611 million corresponding to agreements with banks[988] - As of December 31, 2023, shareholders' equity was Ps.2,017,244 million, representing 20% of total funding[984] - The breakdown of debt securities included Ps.71,059 million in Peso-denominated debt and Ps.227,269 million in foreign currency-denominated debt[991] - Total contractual obligations as of December 31, 2023, amount to 1,636,280 million Pesos, with 1,426,799 million Pesos due in less than one year[1008] Income and Cash Flow - In fiscal year 2023, net cash generated by operating activities amounted to Ps.1,667,301 million, a decrease of 7.1% compared to Ps.1,794,287 million in 2022[1076] - Net cash used in investing activities in 2023 was Ps.81,858 million, primarily due to the acquisition of property, plant, and equipment for Ps.74,019 million[1083] - Net cash generated in financing activities in 2023 was negative at Ps.229,764 million, with significant payments of Ps.373,780 million on loans from local financial institutions[1087] - The effect of the exchange rate on consolidated cash flow in 2023 was Ps.1,034,032 million, an increase of 84.5% compared to Ps.559,889 million in 2022[1090] - Cash and cash equivalents at the end of 2023 were Ps.3,267,340 million, down from Ps.4,131,561 million at the end of 2022[1076] - The company reported a monetary loss related to cash and cash equivalents of Ps.3,253,932 million in 2023, compared to Ps.2,142,478 million in 2022[1076] - Income before taxes from continuing operations in 2023 was Ps.543,010 million, significantly higher than Ps.204,099 million in 2022[1079] - The company experienced a net increase in cash generated from net loans and other financing to the non-financial private sector of Ps.584,705 million in 2023[1079] Strategic Initiatives and Market Outlook - Banco Galicia aims to strengthen its market leadership by focusing on product quality and operational efficiency[1031] - The company anticipates an increase in financial income in 2024 due to expected real interest rate increases[1034] - Fee income is projected to rise in 2024 due to efficiencies generated in business lines, despite regulatory price limitations[1036] - The ongoing digital transformation is expected to enhance efficiency and stabilize administrative expenses compared to the previous year[1038] - Banco Galicia's liquidity and solvency levels are sufficient to cope with potential macroeconomic challenges in 2024[1039] - Naranja X faces challenges due to Argentina's economic volatility, with potential drops in transaction volumes and service revenue expected in 2024[1040] - The company aims to enhance sales and billing volumes while maintaining adequate profitability levels through strategic initiatives[1046] - Grupo Financiero Galicia plans to continue expanding its business through Banco Galicia and Naranja X's customer channels, focusing on new product offerings[1044] Governance and Compliance - The Board of Directors consists of 15 members, with 2 female and 13 male directors, reflecting a gender diversity ratio of approximately 13.3% female representation[1137] - The Audit Committee held twelve meetings during 2023, ensuring compliance with CNV and Nasdaq requirements[1140] - The Executive Committee is responsible for strategic planning and risk assessments, comprising members including Eduardo J. Escasany and Pablo Gutiérrez[1141] - The Nomination and Compensation Committee consists of 5 regular directors, including 2 independent directors, focusing on succession planning and compensation standards[1143] - The company has established a Disclosure Committee to review and approve controls on public financial disclosures, in compliance with the U.S. Sarbanes-Oxley Act[1144] - The Supervisory Committee is composed of three syndics and three alternate syndics, responsible for ensuring compliance with Argentine law and analyzing financial statements[1145] - The company has a strong emphasis on ethics and integrity, monitored by the Ethics, Conduct and Integrity Committee, chaired by independent director Miguel Maxwell[1142] - The Audit Committee includes members with extensive management experience, ensuring financial literacy and oversight of internal controls[1139] Organizational Structure and Leadership - Banco Galicia's organizational structure includes a CEO reporting to the Board of Directors, with key officers in finance, risk, and investor relations[1154] - The company has a diverse board, with no underrepresented individuals or LGBTQ+ members disclosed[1137] - The regular and alternate directors are elected for a maximum term of three years, ensuring governance accountability[1134] - The board of directors of Banco Galicia consists of seven members and three alternate directors, with terms expiring between April 2025 and April 2027[1164] - Sergio Grinenco has been the Chairman of the Board since April 2012, with his current term ending in April 2026[1166] - Raúl Héctor Seoane serves as Vice Chairman and has been with Banco Galicia since 1988, also with a term ending in April 2026[1169] - The Chief Executive Officer, Mr. Fabián Kon, has been in his position since July 2020 and previously served as the CEO of Galicia Seguros[1160] - The Chief Financial Officer & Compliance Officer, Mr. Diego Rivas, was appointed in May 2021 and has been associated with Banco Galicia since 1987[1161] - The Chief Risk Officer, Mr. Bruno Folino, has been with Banco Galicia since 1997 and was appointed to his current role in May 2021[1162] - The Investor Relations Officer, Mr. Pablo Firvida, has extensive experience in investor relations and was appointed in July 2020[1163]