Financial Data and Key Metrics Changes - Net income for Q2 2025 amounted to ARS 173 billion, a 70% decrease from the same quarter last year, with a return on average assets of 1.9% and a return on average shareholders' equity of 9.5% [10][11][18] - The primary surplus reached 0.4% of GDP, while the overall surplus was 0.2% of GDP, with primary revenues increasing by 37.7% year over year [4][5] Business Line Data and Key Metrics Changes - Banco Galicia's profits were ARS 98 billion, Naranja X contributed ARS 32 billion, Galicia Asset Management contributed ARS 27 billion, and Galicia Seguros contributed ARS 13 billion [10] - The net interest income decreased by 36% compared to the previous year, while net fee income increased by 30% [12][13] Market Data and Key Metrics Changes - Private sector deposits in pesos averaged ARS 89.1 trillion in June, increasing by 10.6% during the quarter and 69.1% year over year [7] - The exchange rate averaged ARS 11.81 per dollar in June 2025, reflecting a 23.5% devaluation year over year [6] Company Strategy and Development Direction - The company successfully completed the merger with Galicia Mas, enhancing its market share in loans and deposits by approximately 2.5% [8] - The strategy focuses on prioritizing lower-risk segments in credit granting and stabilizing asset quality post-merger [18][20] Management's Comments on Operating Environment and Future Outlook - Management anticipates a temporary margin compression in Q3 due to increased short-term interest rates and volatility, with expectations for stabilization post-elections [21][66] - The company expects to see stabilization of non-performing loans (NPLs) in consumer lending by the end of Q3 [22][49] Other Important Information - The bank's total regulatory capital ratio reached 23.7%, a decrease of 50 basis points from the previous year [18] - The coverage ratio for non-performing loans decreased to 117.9%, down from 160.3% year over year [17] Q&A Session Summary Question: Follow-up on guidance for loan growth and deposits - Management revised loan growth expectations from 50% to closer to 40% due to market volatility and demand changes [30] Question: Capital improvement and dividend policy - The increase in capital ratio is attributed to the merger, with a new capital ratio close to 24% expected post-integration [35] Question: Asset quality and NPL coverage - Management noted that the main impact on NPLs is from personal loans and credit cards, with a focus on safer segments moving forward [44][46] Question: Impact of higher funding costs on margins - Management expects a deterioration in margins for Q3 due to increased funding costs, with a potential recovery post-elections [66][68] Question: Corporate segment asset quality - The corporate segment is not experiencing significant changes, with NPLs remaining low at around 0.7% [78]

August 2025 z Investor Presentation Informe de resultados 1 Agenda | 01 | | 03 | 05 | 07 | | --- | --- | --- | --- | --- | | The | Argentine | Grupo Financiero | Naranja X | Fondos | | | | Galicia | | FIMA | | Economy | | | | | | 02 | | 04 | 06 | 08 | | The | Argentine | Banco | Galicia | Galicia | | Financial | System | Galicia | Seguros | Securities | Economic Activity 2,7% -2,1% 2,8% -2,6% -2,0% -9,9% 10,4% 6,0% -1,9% -1,3% 4,7% 3,5% -15% -10% -5% 0% 5% 10% 15% Real Gross Domestic Product % Change YoY 20 ...

Group 1 - The article discusses the potential for a second chance to invest in Argentine stocks following a recent market pullback and the election of Milei, which has initiated a stabilization plan aimed at reducing inflation to single-digit levels [1] - The focus is on identifying undervalued stocks in the Latin American region, particularly in sectors such as technology, retail, and banking [1] - The investment approach emphasized is a combination of rigorous bottom-up analysis and macro-driven opportunities to uncover long-term value [1]

[Relevant Information Filing](index=1&type=section&id=Relevant%20Information%20Filing) Grupo Financiero Galicia S.A.'s subsidiary, Banco de Galicia y Buenos Aires S.A., announced a cash dividend, detailing its payment schedule, terms, and tax implications [Dividend Announcement Overview](index=1&type=section&id=Dividend%20Announcement%20Overview) Banco de Galicia y Buenos Aires S.A. announced a cash dividend of ARS 300 billion, to be distributed in 10 monthly installments following Central Bank authorization - Banco de Galicia y Buenos Aires S.A. will pay a cash dividend of **ARS 300 billion** (expressed in December 2024 currency)[2](index=2&type=chunk) - The dividend payment was authorized by the Superintendency of Financial and Foreign Exchange Institutions of the Argentine Central Bank[2](index=2&type=chunk) - The total dividend will be paid in **10 monthly and consecutive installments**[2](index=2&type=chunk) [Dividend Payment Terms and Schedule](index=1&type=section&id=Dividend%20Payment%20Terms%20and%20Schedule) The ARS 300 billion dividend will be paid in 10 equal monthly installments of ARS 30 billion each, adjusted by the National Consumer Price Index (CPI), from June 2025 to March 2026 - Each installment will be paid in constant currency, adjusted using the most recently published National Consumer Price Index (CPI) by the National Institute of Statistics and Census (INDEC)[3](index=3&type=chunk) Tentative Dividend Payment Schedule | Installment No. | Payment Availability Date | Amount (ARS, as of Dec 2024 Currency) | | :--- | :--- | :--- | | 1 | 30/06/2025 | $ 30,000,000,000 | | 2 | 31/07/2025 | $ 30,000,000,000 | | 3 | 29/08/2025 | $ 30,000,000,000 | | 4 | 30/09/2025 | $ 30,000,000,000 | | 5 | 31/10/2025 | $ 30,000,000,000 | | 6 | 28/11/2025 | $ 30,000,000,000 | | 7 | 30/12/2025 | $ 30,000,000,000 | | 8 | 30/01/2026 | $ 30,000,000,000 | | 9 | 27/02/2026 | $ 30,000,000,000 | | 10 | 31/03/2026 | $ 30,000,000,000 | | Total | | $ 300,000,000,000 | [Taxation and Shareholder Information](index=2&type=section&id=Taxation%20and%20Shareholder%20Information) The dividend distribution is subject to a 7% withholding tax, with payments processed by the Bank's Securities Department and inquiries directed to a specified email - The dividend distribution is subject to a **7% withholding tax** pursuant to Articles 97 and 193 of the Argentine Income Tax Law[5](index=5&type=chunk) - The payment will be processed through the Bank's Securities Department, located at Perón 430, Buenos Aires City[5](index=5&type=chunk) - Shareholders may reach out via email at: Relaciones.Institucionales@bancogalicia.com.ar for inquiries[5](index=5&type=chunk)

Core Viewpoint - The article emphasizes the importance of value investing and highlights Grupo Financiero Galicia (GGAL) as a strong value stock based on its favorable valuation metrics and earnings outlook [2][7]. Company Analysis - Grupo Financiero Galicia (GGAL) holds a Zacks Rank of 1 (Strong Buy) and has a Value grade of A, indicating strong potential for value investors [4]. - The stock has a Forward P/E ratio of 7.62, significantly lower than the industry average of 9.31, suggesting it may be undervalued [4]. - GGAL's Forward P/E has fluctuated between a high of 10.72 and a low of 6.12 over the past year, with a median of 8.08 [4]. - The P/B ratio for GGAL is 1.28, which is attractive compared to the industry average P/B of 2.17, indicating a favorable market value relative to its book value [5]. - Over the past 12 months, GGAL's P/B has ranged from a high of 2.08 to a low of 0.94, with a median of 1.42 [5]. - The P/S ratio for GGAL is 0.57, compared to the industry's average P/S of 1.57, further supporting the notion that GGAL is undervalued [6]. - These valuation metrics collectively suggest that Grupo Financiero Galicia is likely being undervalued in the current market [7].

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].

Financial Performance - Net income for the year reached Ps. 1,763,824,213, a significant increase of 121.5% compared to Ps. 797,150,061 in 2023[26]. - Basic earnings per share rose to Ps. 1,189.39 in 2024, up from Ps. 540.56 in 2023, reflecting an increase of 120.0%[28]. - Total comprehensive income attributable to the parent company's owners was Ps. 1,779,867,923 in 2024, compared to Ps. 800,803,252 in 2023, indicating an increase of 121.5%[29]. - The total comprehensive income for the year amounted to Ps. 1,763,824,213, indicating a strong performance in financial results[31]. - For the fiscal year ended December 31, 2024, the net income was Ps. 1,763,971,045, reflecting a significant increase compared to the previous year[31]. Assets and Liabilities - Total assets increased to Ps. 35,304,482,204 as of December 31, 2024, up from Ps. 24,153,216,752 in 2023, representing a growth of approximately 46.2%[23]. - Total liabilities increased to Ps. 28,721,128,962 in 2024, up from Ps. 19,383,966,954 in 2023, representing a growth of approximately 48.0%[25]. - Loans and other financing rose significantly to Ps. 15,621,023,971 in 2024, compared to Ps. 7,283,530,406 in 2023, marking an increase of about 114.5%[23]. - Cash and due from banks reached Ps. 7,322,813,233 in 2024, compared to Ps. 4,718,751,562 in 2023, indicating a growth of approximately 55.5%[23]. - Financial assets pledged as collateral increased to Ps. 1,611,617,385 in 2024, up from Ps. 1,020,304,979 in 2023, representing a growth of about 57.9%[23]. Internal Control and Compliance - The company maintained effective internal control over financial reporting as of December 31, 2024, according to the independent auditor's opinion[5]. - The company’s internal control assessment excluded GGAL Holdings S.A. and its subsidiaries, which represented approximately 19% of total assets as of December 31, 2024[9]. - The Group's financial statements have been prepared in accordance with IFRS, reflecting compliance with international accounting standards[44]. Cash Flow and Investments - Net cash generated by operating activities decreased slightly to $3.80 billion in 2024 from $3.94 billion in 2023, a decline of 3.5%[38]. - Cash flows from investment activities showed a net inflow of $939.32 million in 2024, a recovery from a net outflow of $193.53 million in 2023[38]. - The acquisition of HSBC Argentina Holdings S.A. and subsidiaries involved a cash payment of $395.22 million, net of cash acquired[39]. - Total cash and cash equivalents at the end of 2024 were $8.04 billion, an increase from $7.72 billion at the end of 2023[38]. Shareholder Returns - Cash dividends distributed amounted to Ps. 704,235,995, reflecting the company's commitment to returning value to shareholders[31]. - The company created reserves totaling Ps. 39,748,071 during the fiscal year, enhancing its financial stability[31]. - A capital increase of Ps. 738,509,048 was executed, indicating ongoing investment in growth initiatives[31]. Impairments and Losses - The company reported a significant impairment charge of $936.73 million in 2024, compared to $450.82 million in 2023, reflecting a 107.1% increase[38]. - The Group recognized an impairment on the value of real estate amounting to Ps. 2,175,874 as of December 31, 2024[135]. - The Group recognized impairment on real estate valued at Ps. 18,564,440 as of December 31, 2024[148]. Regulatory Changes and Future Plans - The Group has adopted amendments to IAS 1, effective January 2024, which clarify the classification of liabilities as current or non-current based on rights existing at the end of the reporting period, with no significant impact on financial statements[55]. - The Group will implement amendments to IAS 7 and IFRS 7 concerning disclosures about Supplier Financing Arrangements (SFAs) starting January 2024, which aim to enhance transparency without significant impact on financial statements[57]. - The company plans to file a post-effective amendment on its Form F-3 in June 2025, incorporating its latest unaudited consolidated condensed interim financial statements[49].

Core Insights - The article emphasizes the importance of value investing as a successful strategy across various market conditions, focusing on key valuation metrics to identify undervalued stocks [2][9] - Grupo Financiero Galicia (GGAL) and Grupo Supervielle (SUPV) are highlighted as strong value stocks with attractive valuation metrics [4][9] Grupo Financiero Galicia (GGAL) - GGAL holds a Zacks Rank of 1 (Strong Buy) and a Value grade of A, indicating strong potential for value investors [4] - The stock has a Forward P/E ratio of 8.10, which is lower than the industry average of 9.44, suggesting it may be undervalued [4] - GGAL's P/B ratio is 1.34, compared to the industry's average P/B of 2.15, indicating an attractive valuation [5] - The P/S ratio for GGAL is 0.67, significantly lower than the industry's average P/S of 1.57, further supporting its undervaluation [6] Grupo Supervielle (SUPV) - SUPV has a Zacks Rank of 2 (Buy) and a Value grade of A, making it another appealing option for value investors [6][9] - The stock is currently trading at a forward earnings multiple of 7.79, below the industry average P/E of 9.44, indicating potential undervaluation [7] - SUPV's P/B ratio stands at 1.22, also lower than the industry's average P/B of 2.15, suggesting it is attractively priced [8]

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]