| | |
| GRUPO FINANCIERO GALICIA S.A. |
| NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS |
| | | | | | | | | | | | | | | | | |
| Company | Authorized Amount(*) | Type of Debt Security | Program Term | Approval Date by the S. Meeting/Board of Directors | CNV Approval |
| Grupo Financiero Galicia S.A. | US$ | 100,000 | | Simple, non- convertible into shares | 5 years | 03.09.09 ratified on 08.02.12 | Resolution No. 16,113 dated 04.29.09 and extended by: Resolution No. 17,343 dated 05.08.14, Resolution No. DI-2019-63-APN- GE#CNV dated 08.06.19 and Resolution N° DI-2024-47-APN-GE#CNV dated 06.18.24. Authorization of Increase, Resolution No. 17,064 dated 04.25.13. |
| Banco de Galicia y Buenos Aires S.A.U. | US$ | 2,100,000 | | Simple, non- convertible into shares, subordinated or not, adjustable or not, with or without | 5 years | 04.28.05, 04.14.10, 04.29.15, 11.09.16 and 04.28.20 | Resolution No. 15,228 dated 11.04.05 and extended by Resolution No. 16,454 dated 11.11.10, Resolution No. 17,883 dated 11.20.15 and Resolution No. DI-2020-53-APN-GE#CNV dated 11.24.20. Increase of the amount approved by Resolutions No. 17,883 dated 11.20.15, No. 18,081 dated 06.10.16, No. 18,840 dated 01.26.17 and No. 19,520 dated 05.17.18. |
| Banco de Galicia y Buenos Aires S.A.U. | US$ | 1,000,000 | | Simple, non- convertible into shares | — | 04.25.19 | Frequent Issuer Registration No. 11, granted by Resolution No. RESCFC-2019-2055-APN- DIR#CNV, dated 11.13.19 of the CNV’s Board of Directors. Decrease of the amount approved by Resolution No. DI-2023-23-APN-GE#CNV dated 05.24.23. Increase of the amount approved by Resolution No. DI-2024-23-APN-GE#CNV dated 04.26.24. |
| Tarjeta Naranja S.A.U. | US$ | 1,000,000 | | Simple, non- convertible into shares | 5 years | 03.08.12 | Resolution No. 15,220 dated 07.14.05 and extended by Resolution No. 17,676 dated 05.21.15 and Regulation No. DI2020-20- APNGE#CNV dated 03.18.20. Increase in the amount approved by Resolutions No. 15,361 dated 03.23.06, No. 15,785 dated 11.16.07, No. 16,571 dated 05.24.11, No. 16,822 dated 05.23.12 and 19,508 dated 05.10.18. |
| Tarjeta Naranja S.A.U. | US$ | 250,000 | | Simple, non- convertible into shares | — | 05.19.22 | Frequent Issuer Registration granted by Provision No. DI-2022-39-APN-GE#CNV dated 07.22.22 |
(*) Or its equivalent in any other currency.
Among the Global Programs detailed in the preceding chart, the following issuances of Issued Non- subordinated Debt securities, net of repurchase of own Debt Securities, are effective as of September 30, 2024:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company | Placement Date | Class No. | Face Value | Term | Maturity Date | Rate | Book value (*) at 09.30.24 |
| In Argentine pesos | | | | | | | | |
| Banco de Galicia y Bs.As. S.A.U. | 09.17.24 | XIV | 44,640,963 | 6 months | 05.08.25 | Badlar + | 4.50% | 42,901,831 |
| Banco de Galicia y Bs.As. S.A.U. | 09.17.24 | XV | 42,106,850 | 6 months | 03.31.25 | Badlar + | 3.95% | 42,726,539 |
| Tarjeta Naranja S.A.U. | 11.03.23 | LX | 27,381,323 | 366 days | 11.03.24 | Badlar + | 5.00% | 28,389,339 |
| Tarjeta Naranja S.A.U. | 02.05.24 | LXI | 35,000,000 | 366 days | 02.05.25 | Badlar + | 3.50% | 36,509,737 |
| Tarjeta Naranja S.A.U. | 08.26.24 | LXII | 35,000,000 | 270 days | 05.23.25 | Badlar + | 5.50% | 31,142,060 |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| Total | | | | | | | | 181,669,506 | |
(*) Includes principal and interest.
Among the Global Programs detailed in the preceding chart, the following issuances of Issued Non- subordinated Debt Securities, net of repurchase of own Debt Securities, were effective as of December 31, 2023:
| | |
| GRUPO FINANCIERO GALICIA S.A. |
| NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company | Placement Date | Class No. | Face Value | Term | Maturity Date | Rate | Book value (*) at 12.31.23 |
| In Argentine pesos | | | | | | | | |
| Tarjeta Naranja S.A.U. | 01.31.22 | LI Serie II | 3,284,942 | 730 days | 01.31.24 | Badlar + | 6.00% | 5,549,687 |
| Tarjeta Naranja S.A.U. | 04.07.22 | LIII Serie II | 4,192,612 | 730 days | 04.07.24 | Badlar + | 5.25% | 7,510,051 |
| Tarjeta Naranja S.A.U. | 07.05.22 | LIV Serie II | 4,779,859 | 730 days | 07.05.24 | Badlar + | 4.99% | 12,448,524 |
| Tarjeta Naranja S.A.U. | 08.09.22 | LV Serie II | 10,141,234 | 548 days | 02.09.24 | Badlar + | 3.00% | 12,489,778 |
| Tarjeta Naranja S.A.U. | 02.03.23 | LVII | 12,512,200 | 365 days | 02.03.24 | Badlar + | 4.50% | 22,434,392 |
| Tarjeta Naranja S.A.U. | 04.27.23 | LVIII | 12,214,678 | 366 days | 04.27.24 | Badlar + | 5.00% | 9,355,914 |
| Tarjeta Naranja S.A.U. | 07.27.23 | LIX | 12,072,087 | 366 days | 07.27.24 | Badlar + | 5.00% | 25,150,161 |
| Tarjeta Naranja S.A.U. | 11.03.23 | LX | 27,381,323 | 366 days | 11.03.24 | Badlar + | 5.00% | 48,304,758 |
| In foreign Currency | | | | | | | | |
| Tarjeta Naranja S.A.U. | 03.22.22 | LII | 7,500 | 770 days | 04.30.24 | | 5.00% | 12,334,506 |
| Total | | | | | | | | 155,577,771 | |
(*) Includes principal and interest.
Debt securities with no public offering:
On June 21, 2018, Banco de Galicia y Buenos Aires S.A.U. issued the “Green Bond” which was entirely acquired by the International Finance Corporation. The Green Bond is a 7-year facility, with interest payable every six months. The Green Bond has a 36-month grace period in respect of the repayment of principal, followed by payments in 9 installments due every six months. As of September 30, 2024, its book value amounts to Ps. 12,624,664, while as of December 31, 2023, its book value amounted to Ps. 31,319,030, and are recorded under the Debt Securities item.
The repurchases of own Debt securities as of the indicated dates are detailed below:
| | | | | | | | | | | |
| Company | Class No. | NV as of 09.30.24 | Book value (*) at 09.30.24 |
| Banco de Galicia y Bs.As. S.A.U. | XIV | 1,600,000 | 1,686,581 |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| Tarjeta Naranja S.A.U. | LX | 951,541 | 1,009,818 |
| Tarjeta Naranja S.A.U. | LXI | 804,310 | 819,771 |
| Tarjeta Naranja S.A.U. | LXII | 27,871 | 28,710 |
| Total | | | 3,544,880 |
(*) Includes principal and interest.
| | | | | | | | | | | |
| Company | Class No. | NV as of 12.31.23 | Book value (*) at 12.31.23 |
| Tarjeta Naranja S.A.U. | LI Serie II | 97,911 | 236,626 |
| Tarjeta Naranja S.A.U. | LIII Serie II | 50,000 | 130,110 |
| Tarjeta Naranja S.A.U. | LIV Serie II | 83,000 | 215,677 |
| Tarjeta Naranja S.A.U. | LV Serie II | 50,000 | 116,756 |
| Tarjeta Naranja S.A.U. | LVII | 50,000 | 118,429 |
| Tarjeta Naranja S.A.U. | LVIII | 49,625 | 120,680 |
| Tarjeta Naranja S.A.U. | LIX | 2,026,703 | 4,937,834 |
| Tarjeta Naranja S.A.U. | LX | 7,665,541 | 18,349,570 |
| Total | | | 24,225,682 |
(*) Includes principal and interest.
Related party information is disclosed in Note 35.
The issuance of Debt Securities with remaining terms is detailed in Schedule I.
| | |
| NOTE 18. NET CURRENT INCOME TAX LIABILITIES |
The balances recorded in these items correspond to the amount of the income tax provision, net of advances made and other credits on account of this tax.
| | |
| GRUPO FINANCIERO GALICIA S.A. |
| NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS |
Tax Inflation Adjustment
Law 27,430 introduced a modification in which it established that the subjects referred to in paragraphs a) to e) of Article 53 of the current Income Tax Law, for the purpose of determining the taxable net earnings, should deduct or incorporate to the tax income of the fiscal year being settled, the tax inflation adjustment. Said adjustment would be applicable in the fiscal year where a variation percentage of the consumer price index is verified, greater than one hundred percent (100%), accumulated in the thirty-six (36) months prior to the closing of the fiscal year being settled.
Tax Rate
On June 16, 2021, Law 27,630 was enacted, which establishes for capital companies a structure of staggered rates for income tax with three segments in relation to the level of accumulated taxable net earnings, applicable for the years fiscal years started on or after January 1, 2021, inclusive. The rates within this procedure are as follows:
For fiscal years commenced from 01.01.24 through 12.31.24:
| | | | | | | | | | | | | | |
| Accumulated Taxable Net Earnings | Ps. Payable | Plus % | On the excess of Ps. |
| More than Ps. | To Ps. |
| — | 34,704 | — | 25 | % | — |
| 34,704 | 347,035 | 8,676 | 30 | % | 34,704 |
| 347,035 | Onwards | 102,375 | 35 | % | 347,035 |
For fiscal years commenced from 01.01.23 through 12.31.23:
| | | | | | | | | | | | | | |
| Accumulated Taxable Net Earnings | Ps. Payable | Plus % | On the excess of Ps. |
| More than Ps. | To Ps. |
| — | 14,301 | — | 25 | % | — |
| 14,301 | 143,012 | 3,575 | 30 | % | 14,301 |
| 143,012 | Onwards | 42,189 | 35 | % | 143,012 |
The amounts provided for above will be adjusted annually based on the annual variation of the Consumer Price Index (CPI) provided by the National Institute of Statistics and Censuses (INDEC), corresponding to the month of October of the year prior to the adjustment, with respect to the same month of the previous year.
The Group has recorded in these financial statements the impacts generated by this change.
Dividend tax: it is established that dividends or profits distributed to individuals, undivided estates or foreign beneficiaries will be taxed at the rate of 7%.
| | |
| NOTE 19. SUBORDINATED DEBT SECURITIES |
Among the Global Programs detailed in Note 17, at the closing of the period/fiscal year, the following issuances of issued Subordinated Debt Securities, non-convertible into shares, are in force:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company | Placement Date | Currency | Class No. | NV | Term | Maturity Date | Rate | Issuance Authorized by CNV | Book value (*) at 09.30.24 | Book value (*) at 12.31.23 |
| Banco Galicia | 07.19.16 | US$ | II | 250,000 | 120 months | (1) | 07.19.26 | (2) | 06.23.16 | 245,154,965 | | 414,476,406 | |
(*) Includes principal and interest.
(1) The amortization will be made in full at maturity, on July 19, 2026, net of expenses, unless they are redeemed in full, at the issuer's option, at a price equal to 100% of the outstanding principal plus accrued and unpaid interest.
(2) Annual fixed rate of 8.25% from the date of issuance until July 19, 2021, this date included, and margin to be added to the Benchmark Readjustment annual nominal rate of 7.156% until the maturity date. Said interest agreed upon will be paid semiannually, on January 19 and July 19 from 2017 onwards.
The repurchases of own Debt securities as of the indicated dates are detailed below:
| | | | | | | | | | | |
| Company | Class No. | NV as of 12.31.23 | Book value (*) at 12.31.23 |
| Banco Galicia | II | 2,000,000 | 4,382,966 |
| Total | | 2,000,000 | 4,382,966 |
| | |
| GRUPO FINANCIERO GALICIA S.A. |
| NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS |
(*) Includes principal and interest.
Related party information is disclosed in Note 35.
The issuance of Subordinated Debt Securities with remaining terms is detailed in Schedule I.
| | |
| NOTE 20. SHAREHOLDERS' EQUITY |
Capital Stock
As of September 30, 2024, the capital stock amounts to Ps. 1,474,692, which is subscribed and paid in. It is composed of 281,221,650 class “A” ordinary shares with a par value of Ps. 1 each and 5 votes per share and 1,193,470,441 class “B” ordinary shares with a par value of Ps. 1 each and 1 vote per share, not having undergone modifications during the last three fiscal years.
The Ordinary and Extraordinary Shareholders' Meeting held on August 20, 2024, resolved, among other points:
•To approve a first capital increase up to a maximum amount of Ps. 115,582 nominal value and the issuance of up to 115,582,280 common shares, class B, par value Ps. 1 (figure expressed in Argentine pesos) and one vote per share, with the right to dividends as from the date of issuance. The shares will be paid in kind.
•To approve a second capital increase that, together with the first increase, may not exceed $162,034 nominal value and the issuance of up to 162,035,894 ordinary shares, Class B, with a nominal value of $1 (amount expressed in Argentine pesos) and one vote per share (representing, together with the shares from the first increase, up to 10.99% of the current share capital and up to 9.9% of the new capital resulting after the two increases), with the right to receive dividends as from the date of issuance. The shares may be paid in cash in U.S. dollars or through the capitalization of the Company's debt. In addition, with respect to this second increase, it was resolved to approve the reduction of the period for exercising preemptive subscription rights and to increase up to the legal minimum.
On October 17, 2024, the CNV, through Resolution Number: RESFC-2024-22904-APN-DIR#CNV, authorized the Company to make a Public Offering of NV 115,582,280 ordinary, book-entry, Class "B" shares, with a nominal value of $1 (amount expressed in Argentine pesos) and one vote per share, representing NV $115,582,280 (amount expressed in Argentine pesos), in consideration of the subscription of shares with a premium, with the right to receive dividends from the time of issuance under the same conditions as the shares issued and outstanding at the time of issuance.
There are no own shares in the Company's portfolio.
In Argentina, the Company's shares are quoted in Bolsas y Mercados Argentinos S.A. (BYMA) and Mercado Abierto Electrónico S.A. (MAE). Likewise, the shares are listed in the United States of America on the National Association of Securities Dealers Automated Quotation (NASDAQ), under the American Depository Receipt (ADRs) program, of which The Bank of New York Mellon acts as the depositary agent.
| | |
| NOTE 21. INCOME STATEMENT BREAKDOWN |
The breakdown of Income is detailed below: Net Income from Interest, Net Fee Income, and Net Income from Financial Instruments measured at Fair Value through Profit or Loss, as of the given dates:
| | |
| GRUPO FINANCIERO GALICIA S.A. |
| NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS |
| | | | | | | | | | | | | | |
| Three months as of 09.30.24 | Nine months as of 09.30.24 |
| Items | Net Financial Income/(Expense) | OCI | Net Financial Income/(Expense) | OCI |
| By measuring Financial Assets at fair value through profit or loss | 172,971,735 | 25,676,063 | 551,813,652 | 25,777,982 |
| Income from Government Securities | 126,294,944 | 25,676,063 | 443,735,641 | 25,777,982 |
| Income from Corporate Securities | 14,077,124 | — | 65,312,270 | — |
| Income from Derivative Financial Instruments | 5,251,642 | — | 6,014,737 | — |
| Forward Transactions | 5,244,583 | — | 6,007,678 | — |
| Options | 7,059 | — | 7,059 | |
| Income from Other Financial Assets | 109 | — | 12,235 | — |
| Income from sale or derecognition of Financial Assets at fair value | 27,347,916 | — | 36,738,769 | — |
| For Financial Liabilities measured at Fair Value through Profit or Loss | 20,408,300 | — | (17,384,084) | — |
| Income from Derivative Financial Instruments | 20,408,300 | — | (17,384,084) | — |
| Forward Transactions | 11,546,574 | — | (16,972,828) | — |
| Options | 8,861,726 | — | (411,256) | — |
| Total | 193,380,035 | 25,676,063 | 534,429,568 | 25,777,982 |
| | | | | | | | | | | | | | |
| Three months as of 09.30.23 | Nine months as of 09.30.23 |
| Items | Net Financial Income/(Expense) | OCI | Net Financial Income/(Expense) | OCI |
| By measuring Financial Assets at fair value through profit or loss | 135,271,854 | (864,587) | 552,482,520 | 215,528 |
| Income from Government Securities | 58,365,376 | (864,587) | 363,043,616 | 215,528 |
| Income from Corporate Securities | 72,260,505 | — | 177,375,951 | — |
| Income from Derivative Financial Instruments | 4,645,973 | — | 12,062,953 | — |
| Forward Transactions | 4,645,973 | — | 12,062,953 | — |
| Income from Other Financial Assets | — | — | — | — |
| Income from sale or derecognition of Financial Assets at fair value | — | — | — | |
| For Financial Liabilities measured at Fair Value through Profit or Loss | (9,240,405) | — | (14,581,260) | — |
| Income from Derivative Financial Instruments | (9,240,405) | — | (14,581,260) | — |
| Forward Transactions | 3 | — | (348,850) | — |
| Options | (9,240,408) | — | (14,232,410) | — |
| Total | 126,031,449 | (864,587) | 537,901,260 | 215,528 |
| | |
| GRUPO FINANCIERO GALICIA S.A. |
| NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS |
| | | | | | | | | | | | | | |
| Interest-related Income | Three months as of 09.30.24 | Nine months as of 09.30.24 | Three months as of 09.30.23 | Nine months as of 09.30.23 |
| For Cash and due from Banks | 170,269 | | 397,851 | | 147,216 | | 379,558 | |
| For Corporate Securities | 1,653,905 | | 7,995,124 | | 5,045,581 | | 11,699,346 | |
| For Government Securities | 527,059,326 | | 2,773,766,337 | | 1,401,339,246 | | 3,359,954,051 | |
| For Loans and Other Financing | 763,825,873 | | 2,634,040,560 | | 1,052,937,148 | | 2,937,294,516 | |
| Financial Sector | 7,987,465 | | 17,552,141 | | 8,900,763 | | 21,545,654 | |
| Non-Financial Private Sector | 755,838,408 | | 2,616,488,419 | | 1,044,036,385 | | 2,915,748,862 | |
| Advances | 45,056,946 | | 209,480,292 | | 102,584,847 | | 263,046,736 | |
| Mortgage | 50,346,771 | | 292,204,244 | | 76,979,357 | | 222,505,122 | |
| Pledges | 10,525,216 | | 28,290,734 | | 14,589,754 | | 43,636,366 | |
| Personal | 194,722,530 | | 482,531,920 | | 100,352,076 | | 273,850,689 | |
| Credit Cards | 284,667,778 | | 948,726,281 | | 327,556,741 | | 998,522,053 | |
| Finance Leases | 1,358,345 | | 4,624,699 | | 3,518,029 | | 9,516,482 | |
| Overdrafts | 159,762,891 | | 619,028,835 | | 388,220,004 | | 997,980,386 | |
| Exports Prefinancing and Financing | 2,530,322 | | 5,125,089 | | 809,418 | | 3,617,810 | |
| Others | 6,867,609 | | 26,476,325 | | 29,426,159 | | 103,073,218 | |
| For Repurchase Transactions | 20,541,254 | | 879,975,272 | | 230,505,676 | | 540,302,451 | |
| Argentine Central Bank | 20,176,643 | | 879,066,375 | | 227,154,666 | | 536,866,380 | |
| Other Financial Institutions | 364,611 | | 908,897 | | 3,351,010 | | 3,436,071 | |
| Total | 1,313,250,627 | 6,296,175,144 | 2,689,974,867 | 6,849,629,922 |
| | | | | | | | | | | | | | |
| Interest-related Expenses | Three months as of 09.30.24 | Nine months as of 09.30.24 | Three months as of 09.30.23 | Nine months as of 09.30.23 |
| On Deposits | (458,548,356) | (1,915,786,590) | (1,614,835,663) | (4,069,822,607) |
| Non-Financial Private Sector | (458,548,356) | (1,915,786,590) | (1,614,835,663) | (4,069,822,607) |
| Checking Accounts | (874,018) | (1,841,774) | 198,250 | (589,324) |
| Savings Accounts | (43,430,484) | (134,854,489) | (35,370,568) | (76,224,009) |
| Time Deposits and Term Investments | (205,304,728) | (1,027,220,436) | (1,158,592,927) | (2,988,709,768) |
| Others | (208,939,126) | (751,869,891) | (421,070,418) | (1,004,299,506) |
| For Financing Received from the Argentine Central Bank and Other Financial Institutions | (23,137,389) | (93,975,903) | (44,028,686) | (110,490,110) |
| For Repurchase Transactions | (55,199,379) | (139,468,523) | (32,228,944) | (94,139,679) |
| Argentine Central Bank | (145,212) | (145,212) | — | — |
| Other Financial Institutions | (55,054,167) | (139,323,311) | (32,228,944) | (94,139,679) |
| For Other Financial Liabilities | 3,677,147 | (41,079,696) | (91,592,552) | (252,150,397) |
| For Issued Debt Securities | (12,597,751) | (69,483,471) | (57,862) | (83,496) |
| For Subordinated Debt Securities | (5,129,574) | (16,837,795) | (5,885,191) | (16,771,850) |
| Total | (550,935,302) | (2,276,631,978) | (1,788,628,898) | (4,543,458,139) |
| | | | | | | | | | | | | | |
| Fee Income | Three months as of 09.30.24 | Nine months as of 09.30.24 | Three months as of 09.30.23 | Nine months as of 09.30.23 |
| Credit Card-related Fees | 138,119,779 | 361,109,967 | 123,407,810 | 337,905,174 |
| Insurance-related Fees | 5,145,245 | 13,181,560 | 5,957,306 | 17,371,435 |
| Debt-related Fees | 84,473,945 | 245,149,934 | 101,087,548 | 304,850,762 |
| Credit-related Fees | 37,482,885 | 101,030,657 | 29,162,475 | 87,872,506 |
| Fees related to Loan Commitments and Financial Collateral | 2,390,599 | 6,935,593 | 1,259,540 | 2,755,388 |
| Securities-related Fees | 21,941,646 | 58,501,679 | 15,702,752 | 38,806,128 |
| Collection Management Fees | 1,196,495 | 3,091,157 | 1,117,061 | 3,755,331 |
| Foreign and Exchange Operations Fees | 11,554,128 | 30,889,104 | 8,490,384 | 24,500,840 |
| Total | 302,304,722 | 819,889,651 | 286,184,876 | 817,817,564 |
| | |
| GRUPO FINANCIERO GALICIA S.A. |
| NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS |
| | | | | | | | | | | | | | |
| Fee - related Expenses | Three months as of 09.30.24 | Nine months as of 09.30.24 | Three months as of 09.30.23 | Nine months as of 09.30.23 |
| Fees related to Securities Operations | (714,309) | (2,702,868) | (643,537) | (2,474,240) |
| Credit Card-related Fees | (26,670,392) | (70,724,081) | (21,369,586) | (66,550,027) |
| Foreign and Exchange Operations Fees | (1,900,128) | (6,044,083) | (936,769) | (3,223,512) |
| Fees related to Indirect Channels | (1,267,784) | (2,972,661) | (865,942) | (2,243,714) |
| Other Fees | (15,810,532) | (39,490,051) | (13,204,066) | (38,414,953) |
| Total | (46,363,145) | (121,933,744) | (37,019,900) | (112,906,446) |
| | |
| NOTE 22. EXCHANGE RATE DIFFERENCES ON FOREIGN CURRENCY |
The item composition as of the indicated dates is detailed below:
| | | | | | | | | | | | | | |
| Originated by: | Three months as of 09.30.24 | Nine months as of 09.30.24 | Three months as of 09.30.23 | Nine months as of 09.30.23 |
| For Purchase-Sale of Foreign Currency | 31,501,716 | 47,065,137 | 27,222,787 | 37,027,258 |
| For valuation of Assets and Liabilities in foreign currency | 1,660,873 | 82,057,626 | 162,608,330 | 357,595,100 |
| Total | 33,162,589 | 129,122,763 | 189,831,117 | 394,622,358 |
| | |
| NOTE 23. OTHER OPERATING INCOME |
The item composition as of the indicated dates is detailed below:
| | | | | | | | | | | | | | |
| Items | Three months as of 09.30.24 | Nine months as of 09.30.24 | Three months as of 09.30.23 | Nine months as of 09.30.23 |
| Other Adjustments and Interest for Sundry Credits | 16,401,093 | 70,790,264 | 112,309,103 | 311,642,821 |
| Safety Deposit Boxes Rental | 9,335,789 | 20,012,436 | 6,523,985 | 18,075,396 |
| Other Financial Income | 5,729,971 | 17,135,652 | 6,161,291 | 11,312,296 |
| Other Income from Services | 49,922,006 | 130,450,188 | 42,748,781 | 111,024,419 |
| Unaffected Allowances | — | 992,602 | 38,829,927 | 51,320,767 |
| Other Sundry | 22,451,987 | 76,650,433 | 20,172,574 | 66,937,765 |
| Total | 103,840,846 | 316,031,575 | 226,745,661 | 570,313,464 |
| | |
| NOTE 24. INSURANCE BUSINESS RESULT |
The item composition as of the indicated dates is detailed below:
| | | | | | | | | | | | | | |
| Items | Three months as of 09.30.24 | Nine months as of 09.30.24 | Three months as of 09.30.23 | Nine months as of 09.30.23 |
| Insurance revenue | 87,985,386 | 245,772,040 | 33,728,136 | 103,142,638 |
| Insurance service expense | (53,525,301) | (170,829,217) | (19,121,594) | (45,231,343) |
| Net expenses from reinsurance contracts held | (7,180,437) | (17,567,776) | 90,184 | (1,037,194) |
| Total | 27,279,648 | 57,375,047 | 14,696,726 | 56,874,101 |
| | |
| NOTE 25. IMPAIRMENT CHARGE |
The item composition as of the indicated dates is detailed below:
| | |
| GRUPO FINANCIERO GALICIA S.A. |
| NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS |
| | | | | | | | | | | | | | |
| Items | Three months as of 09.30.24 | Nine months as of 09.30.24 | Three months as of 09.30.23 | Nine months as of 09.30.23 |
| Expected credit loss allowance | (165,038,170) | (451,194,023) | (85,210,541) | (251,921,502) |
| Direct Charge Offs | (2,890,001) | (7,523,520) | (2,860,328) | (8,861,897) |
| Total | (167,928,171) | (458,717,543) | (88,070,869) | (260,783,399) |
| | |
| NOTE 26. PERSONNEL EXPENSES |
The breakdown of the items is detailed below, as of the indicated dates:
| | | | | | | | | | | | | | |
| Items | Three months as of 09.30.24 | Nine months as of 09.30.24 | Three months as of 09.30.23 | Nine months as of 09.30.23 |
| Payroll | (90,841,990) | (288,973,789) | (89,213,433) | (270,600,813) |
| Social Contributions on Payroll | (20,818,908) | (71,808,288) | (21,209,844) | (63,957,294) |
| Personnel Compensations and Rewards | (32,076,104) | (129,793,371) | (30,253,010) | (99,524,868) |
| Services for Personnel | (3,989,008) | (9,392,808) | (3,892,468) | (10,397,082) |
| Other Short-term Personnel Expenses | (3,362,058) | (10,555,320) | (8,355,764) | (18,852,293) |
| Other Long-term Personnel Expenses | (818,791) | (1,864,019) | (265,352) | (841,206) |
| | | | |
| Total | (151,906,859) | (512,387,595) | (153,189,871) | (464,173,556) |
| | |
| NOTE 27. ADMINISTRATIVE EXPENSES |
The Group presented its Statement of Comprehensive Income under the by-function-of-expense method. In accordance with this method, the expenses are classified according to their function as part of the “Administrative Expenses” item.
The following table provides the additional information required on the nature of expenses and their relation to the function, as of the indicated dates:
| | | | | | | | | | | | | | |
| Items | Three months as of 09.30.24 | Nine months as of 09.30.24 | Three months as of 09.30.23 | Nine months as of 09.30.23 |
| Compensations and Remunerations for Services | (17,090,478) | (43,101,451) | (9,529,418) | (26,926,848) |
| Directors and Syndics' Fees | (2,025,683) | (4,412,641) | (1,599,061) | (3,859,412) |
| Advertising and Publicity | (9,804,146) | (25,462,520) | (8,018,472) | (20,850,924) |
| Taxes | (44,147,228) | (150,860,436) | (43,721,039) | (125,292,705) |
| Maintenance and Repairs | (24,969,903) | (79,182,271) | (20,582,256) | (62,926,596) |
| Electricity and Communications | (7,818,288) | (23,126,245) | (7,144,553) | (20,654,109) |
| Representation and Travel Expenses | (476,028) | (1,511,375) | (334,595) | (997,935) |
| Stationery and Office Supplies | (856,379) | (2,367,754) | (729,819) | (1,806,668) |
| Rentals | (337,322) | (840,688) | (235,988) | (836,917) |
| Administrative Services under Contract | (34,767,721) | (91,110,004) | (25,708,798) | (77,011,842) |
| Security | (4,421,694) | (11,025,622) | (3,765,293) | (10,520,358) |
| Insurance | (1,278,637) | (4,132,036) | (927,721) | (3,192,655) |
| Armored Transportation Service | (8,077,070) | (21,365,327) | (9,352) | (27,628) |
| Others | (18,030,912) | (50,120,052) | (24,579,530) | (71,893,238) |
| Total | (174,101,489) | (508,618,422) | (146,885,895) | (426,797,835) |
| | |
| NOTE 28. DEPRECIATION OF ASSETS |
The item composition as of the indicated dates is detailed below:
| | |
| GRUPO FINANCIERO GALICIA S.A. |
| NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS |
| | | | | | | | | | | | | | |
| Items | Three months as of 09.30.24 | Nine months as of 09.30.24 | Three months as of 09.30.23 | Nine months as of 09.30.23 |
| Depreciation of Property, Plant and Equipment | (19,931,924) | (59,143,071) | (22,167,916) | (64,485,989) |
| Amortization of Organization and Development Expenses | (17,209,219) | (53,547,223) | (21,758,603) | (60,195,459) |
| Depreciation of other Intangible Assets | (161,020) | (483,089) | (554) | (1,662) |
Others(*) | (369,863) | (995,952) | (526,847) | (985,744) |
| Total | (37,672,026) | (114,169,335) | (44,453,920) | (125,668,854) |
(*) This item includes Depreciation and Impairment of Sundry Assets and Losses from the sale or devaluation of property, plant and equipment.
| | |
| NOTE 29. OTHER OPERATING EXPENSES |
The item composition as of the indicated dates is detailed below:
| | | | | | | | | | | | | | |
| Items | Three months as of 09.30.24 | Nine months as of 09.30.24 | Three months as of 09.30.23 | Nine months as of 09.30.23 |
| Turnover Tax | (91,947,579) | (405,129,869) | (181,189,401) | (488,467,204) |
| Contributions to the Deposit Insurance | (3,769,555) | (10,368,266) | (4,554,156) | (13,748,085) |
| Charges for Other Provisions | (5,194,730) | (89,521,238) | (2,937,232) | (10,811,252) |
| Claims | (7,498,220) | (16,766,053) | (10,266,767) | (24,942,520) |
| Other Financial Income | (14,074,440) | (78,949,484) | (1,888,185) | (5,929,556) |
| Interest on Leases | (1,149,680) | (3,332,732) | (1,854,524) | (5,080,346) |
| Credit Card-related Interest | (38,176,141) | (107,207,721) | (34,144,860) | (96,722,301) |
| Adjustment for remeasurement to homogeneous currency | — | (21,237,285) | — | — |
| Other Service-related and Sundry Expenses | (56,440,998) | (151,486,192) | (46,133,413) | (119,117,612) |
| Total | (218,251,343) | (883,998,840) | (282,968,538) | (764,818,876) |
The Ordinary and Extraordinary Shareholders' Meeting held on April 30, 2024, approved the distribution of cash dividends in the amount of Ps. 65,000,000 (equivalent to Ps. 86,417,341 in closing currency), which represented Ps. 44.08 (amount stated in Argentine pesos) per share. Additionally, the aforementioned Meeting resolved to delegate to the Board of Directors the power to withdraw from the Reserve for the eventual distribution of profits up to the amount of Ps. 386,635,827, which is equivalent to Ps. 514,031,401 at closing currency, subject to approval and to the terms and conditions that the subsidiary Banco Galicia obtains from the Argentine Central Bank with respect to the payment of dividends.
Dividend payments made are detailed below:
| | | | | | | | |
| Date of payment | Amount | Amount in closing currency |
| 05.14.24 | 65,000,000 | 76,221,163 |
| 05.23.24 | 140,261,066 | 164,474,793 |
| 06.28.24 | 146,118,828 | 163,844,528 |
| 07.24.24 | 152,806,783 | 164,704,664 |
The Ordinary and Extraordinary Shareholders' Meeting held on April 25, 2023, approved the distribution of cash dividends in the amount of Ps. 10,000,000 (equivalent to Ps. 51,567,093 in closing currency), which represented Ps. 6.78 (amount stated in Argentine pesos) per share. In addition, at said Meeting, the use of the Reserve for the eventual distribution of profits for up to Ps. 75,000,000 (equivalent to Ps. 386,753,249 in closing currency) was approved, delegating to the Board of Directors the power to pay it on one or more occasions until the annual meeting that discusses the income of the current fiscal year.
Dividend payments made are detailed below:
| | |
| GRUPO FINANCIERO GALICIA S.A. |
| NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS |
| | | | | | | | |
| Date of payment | Amount | Amount in closing currency |
| 05.09.23 | 35,000,000 | 154,486,921 |
| 06.12.23 | 12,500,000 | 52,075,004 |
| 07.10.23 | 12,500,000 | 48,968,054 |
| 08.08.23 | 12,500,000 | 43,549,752 |
| 09.11.23 | 12,500,000 | 38,625,143 |
| | |
| NOTE 31. SEGMENT REPORTING |
The Group determines the segments based on Management Reports that are reviewed by the Board of Directors, which updates them as they change.
Segments to be reported are made up of one or more operating segments of similar economic characteristics, distribution channels and regulatory environments.
The composition of each business segment is described below:
Bank: it represents the income of the banking business.
Naranja X: it includes the consolidated income of Tarjetas Regionales S.A. with its subsidiaries, namely: Cobranzas Regionales S.A., Tarjeta Naranja S.A.U., and Naranja Digital Compañía Financiera S.A.U.
Insurance: it represents the income of the insurance companies and includes the consolidated income of Sudamericana Holding S.A. with its subsidiaries, namely: Galicia Retiro Cía. de Seguros S.A.U., Galicia Seguros S.A.U., and Galicia Broker Asesores de Seguros S.A.
Other Businesses: it exposes the income of Galicia Asset Management S.A.U., Galicia Warrants S.A., Galicia Securities S.A.U., Agri Tech Investments LLC, IGAM LLC, Galicia Investments LLC, Galicia Holdings US Inc., and Grupo Financiero Galicia S.A.; for the latter five companies, net of income eliminations for permanent interests in other companies.
Adjustments: it comprises the elimination of transactions between the subsidiaries. See Note 35.
The Board of Directors monitors the operating income of the Group's different operating segments separately for the purpose of making decisions about the allocation of resources and the performance evaluation of each segment. Segment performance is evaluated based on the operating profits or losses and is measured consistently against the operating profit and loss of the Consolidated Statement of Income.
When any transaction occurs, the transfer prices between the operating segments are agreed independently and equitably in a manner similar to transactions made with third parties. Afterwards, the revenues, the expenses and the income arising from the transfers between the operating segments are eliminated from the consolidation.
The segment reporting as of the indicated dates is detailed below:
| | |
| GRUPO FINANCIERO GALICIA S.A. |
| NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS |
| | | | | | | | | | | | | | | | | | | | |
| Items | Bank | Naranja X | Insurance | Other Businesses | Adjustments | 09.30.24 |
| ASSETS | | | | | | |
| Cash and Due from Banks | 6,605,247,649 | | 52,055,839 | | 2,523,612 | | 227,067,456 | | (139,010,203) | | 6,747,884,353 | |
| Debt Securities at Fair Value through Profit or Loss | 867,390,117 | | 92,170,172 | | 67,964,063 | | 71,626,912 | | (3,261,586) | | 1,095,889,678 | |
| Derivative Financial Instruments | 6,523,967 | | — | | — | | — | | — | | 6,523,967 | |
| Repurchase Transactions | 20,477,074 | | — | | — | | — | | (20,477,074) | | — | |
| Other Financial Assets | 393,365,755 | | 152,858,915 | | 17,106,981 | | 62,749,942 | | (7,369,366) | | 618,712,227 | |
| Loans and Other Financing | 6,198,773,262 | | 2,679,260,251 | | — | | 6,037,312 | | (156,373,849) | | 8,727,696,976 | |
| Other Debt Securities | 2,926,217,595 | | 306,833,465 | | 31,368,552 | | — | | (283,293) | | 3,264,136,319 | |
| Financial Assets Pledged as Collateral | 1,122,194,752 | | 85,512,486 | | — | | 5,974,589 | | — | | 1,213,681,827 | |
| Current Income Tax Assets | — | | — | | 5,814,307 | | — | | — | | 5,814,307 | |
| Investments in Equity Instruments | 15,770,745 | | — | | 324,267 | | 6,823,394 | | — | | 22,918,406 | |
| Investments in Subsidiaries, Associates and Joint Ventures | 2,704,791 | | — | | — | | — | | — | | 2,704,791 | |
| Property, Plant and Equipment | 663,480,258 | | 64,862,976 | | 5,882,487 | | 2,512,585 | | — | | 736,738,306 | |
| Intangible Assets | 208,011,493 | | 15,813,860 | | 17,813,202 | | 3,409,503 | | — | | 245,048,058 | |
| Deferred Income Tax Assets | — | | 34,281,906 | | 47,999,512 | | 9,631,805 | | — | | 91,913,223 | |
| Assets from Insurance Contracts | — | | — | | 18,941,639 | | — | | — | | 18,941,639 | |
| Reinsurance Contract Assets | — | | — | | 49,138,564 | | — | | — | | 49,138,564 | |
| Other Non-financial Assets | 77,238,158 | | 22,565,346 | | 5,543,419 | | 22,288,218 | | — | | 127,635,141 | |
| Non-current Assets Held for Sale | 19,114 | | — | | — | | — | | — | | 19,114 | |
| Total Assets | 19,107,414,730 | | 3,506,215,216 | | 270,420,605 | | 418,121,716 | | (326,775,371) | | 22,975,396,896 | |
| | | | | | | | | | | | | | | | | | | | |
| Items | Bank | Naranja X | Insurance | Other Businesses | Adjustments | 09.30.24 |
| LIABILITIES | | | | | | |
| Deposits | 13,193,043,991 | | 656,026,577 | | — | | — | | (145,855,263) | | 13,703,215,305 | |
| Liabilities at Fair Value through Profit or Loss | 1,075,018 | | — | | — | | 4,282,905 | | — | | 5,357,923 | |
| Derivative Financial Instruments | 29,212,121 | | — | | — | | — | | — | | 29,212,121 | |
| Repurchase Transactions | 43,568,267 | | 20,477,074 | | — | | — | | (20,477,074) | | 43,568,267 | |
| Other Financial Liabilities | 1,456,027,280 | | 1,551,255,120 | | — | | 227,523,555 | | (15,733,437) | | 3,219,072,518 | |
| Financing from the Argentine Central Bank and Other Financial Institutions | 51,935,637 | | 355,554,912 | | — | | — | | (140,622,167) | | 266,868,382 | |
| Issued Debt Securities | 99,939,615 | | 97,899,435 | | — | | — | | (3,544,880) | | 194,294,170 | |
| Current Income Tax Liabilities | 18,323,231 | | 9,140,950 | | 3,411,449 | | 18,780,917 | | — | | 49,656,547 | |
| Subordinated Debt Securities | 245,154,965 | | — | | — | | — | | — | | 245,154,965 | |
| Provisions | 77,802,736 | | 3,347,056 | | 855,458 | | 53,295 | | — | | 82,058,545 | |
| Deferred Income Tax Liabilities | 36,126,962 | | — | | 13,273,556 | | 7,556,408 | | — | | 56,956,926 | |
| Liabilities from Insurance Contracts | — | | — | | 179,448,272 | | — | | (29,939) | | 179,418,333 | |
| Reinsurance Contracts Liabilities | — | | — | | 918,578 | | — | | — | | 918,578 | |
| Other Non-Financial Liabilities | 295,792,403 | | 107,779,877 | | 36,714,427 | | 20,592,761 | | (512,611) | | 460,366,857 | |
| Total Liabilities | 15,548,002,226 | | 2,801,481,001 | | 234,621,740 | | 278,789,841 | | (326,775,371) | | 18,536,119,437 | |
| | |
| GRUPO FINANCIERO GALICIA S.A. |
| NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS |
| | | | | | | | | | | | | | | | | | | | |
| Items | Bank | Naranja X | Insurance | Other Businesses | Adjustments | 12.31.23 |
| ASSETS | | | | | | |
| Cash and Due from Banks | 3,877,395,117 | | 39,307,493 | | 9,083,062 | | 163,909,498 | | (66,371,755) | | 4,023,323,415 | |
| Debt Securities at Fair Value through Profit or Loss | 932,449,238 | | 127,730,276 | | 139,133,833 | | 36,351,629 | | (28,608,649) | | 1,207,056,327 | |
| Derivative Financial Instruments | 71,096,852 | | 13,062,447 | | — | | 3,074 | | (13,023,883) | | 71,138,490 | |
| Repurchase Transactions | 2,189,005,437 | | 212,925,524 | | — | | — | | (43,100,856) | | 2,358,830,105 | |
| Other Financial Assets | 247,886,152 | | 13,159,734 | | 31,214,180 | | 87,135,779 | | (19,900,923) | | 359,494,922 | |
| Loans and Other Financing | 4,498,093,601 | | 1,835,594,015 | | — | | 8,755,735 | | (132,798,676) | | 6,209,644,675 | |
| Other Debt Securities | 3,611,947,185 | | 238,827,451 | | 32,348,278 | | — | | — | | 3,883,122,914 | |
| Financial Assets Pledged as Collateral | 778,682,816 | | 64,271,009 | | — | | 26,983,244 | | — | | 869,937,069 | |
| Current Income Tax Assets | — | | — | | 3,921,023 | | 203,095 | | — | | 4,124,118 | |
| Investments in Equity Instruments | 13,903,576 | | — | | 228,784 | | 5,295,039 | | — | | 19,427,399 | |
| Investments in Subsidiaries, Associates and Joint Ventures | 5,342,615 | | — | | — | | — | | — | | 5,342,615 | |
| Property, Plant and Equipment | 636,056,023 | | 65,705,155 | | 12,955,916 | | 1,417,668 | | — | | 716,134,762 | |
| Intangible Assets | 207,346,031 | | 17,702,550 | | 19,964,739 | | 4,170,595 | | — | | 249,183,915 | |
| Deferred Income Tax Assets | 263,304,647 | | 59,222,491 | | 56,648,006 | | 3,331,766 | | — | | 382,506,910 | |
| Assets from Insurance Contracts | — | | — | | 19,798,609 | | — | | — | | 19,798,609 | |
| Reinsurance Contract Assets | — | | — | | 57,684,449 | | — | | — | | 57,684,449 | |
| Other Non-financial Assets | 113,182,701 | | 14,334,951 | | 4,834,985 | | 24,371,158 | | (16) | | 156,723,779 | |
| Non-current Assets Held for Sale | 151,024 | | — | | — | | — | | — | | 151,024 | |
| Total Assets | 17,445,843,015 | | 2,701,843,096 | | 387,815,864 | | 361,928,280 | | (303,804,758) | | 20,593,625,497 | |
| | | | | | | | | | | | | | | | | | | | |
| Items | Bank | Naranja X | Insurance | Other Businesses | Adjustments | 12.31.23 |
| LIABILITIES | | | | | | |
| Deposits | 11,177,609,307 | | 414,436,075 | | — | | 12,433 | | (86,261,272) | | 11,505,796,543 | |
| Liabilities at Fair Value through Profit or Loss | 99,752,488 | | — | | — | | — | | — | | 99,752,488 | |
| Derivative Financial Instruments | 37,694,864 | | — | | — | | — | | (13,023,883) | | 24,670,981 | |
| Repurchase Transactions | 47,061,623 | | 43,100,856 | | — | | — | | (43,100,856) | | 47,061,623 | |
| Other Financial Liabilities | 1,342,736,495 | | 1,076,171,379 | | — | | 163,198,184 | | (15,316,876) | | 2,566,789,182 | |
| Financing from the Argentine Central Bank and Other Financial Institutions | 87,722,297 | | 305,681,236 | | — | | 1,104,148 | | (116,066,549) | | 278,441,132 | |
| Issued Debt Securities | 31,319,030 | | 179,803,454 | | — | | — | | (24,225,683) | | 186,896,801 | |
| Current Income Tax Liabilities | 475,941,400 | | 20,049,601 | | 18,020,090 | | 35,096,492 | | — | | 549,107,583 | |
| Subordinated Debt Securities | 418,859,372 | | — | | — | | — | | (4,382,966) | | 414,476,406 | |
| Provisions | 34,880,377 | | 4,373,927 | | 1,640,554 | | 203,349 | | — | | 41,098,207 | |
| Deferred Income Tax Liabilities | — | | — | | 26,109,433 | | 8,875,617 | | — | | 34,985,050 | |
| Liabilities from Insurance Contracts | — | | — | | 213,080,437 | | — | | (8,309) | | 213,072,128 | |
| Reinsurance Contracts Liabilities | — | | — | | 4,361,482 | | — | | — | | 4,361,482 | |
| Other Non-Financial Liabilities | 380,239,256 | | 102,247,570 | | 56,251,658 | | 23,416,320 | | (1,418,364) | | 560,736,440 | |
| Total Liabilities | 14,133,816,509 | | 2,145,864,098 | | 319,463,654 | | 231,906,543 | | (303,804,758) | | 16,527,246,046 | |
| | |
| GRUPO FINANCIERO GALICIA S.A. |
| NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS |
| | |
| GRUPO FINANCIERO GALICIA S.A. |
| NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS |
| | | | | | | | | | | | | | | | | | | | |
| Items | Bank | Naranja X | Insurance | Other Businesses | Adjustments | 09.30.24 |
| Net Income from Interest | 3,250,541,796 | 720,802,362 | 35,012,361 | (2,202,884) | 15,389,531 | 4,019,543,166 |
| Net Fee Income | 405,600,403 | 304,602,472 | — | 4,584,493 | (16,831,461) | 697,955,907 |
| Net Income from Financial Instruments measured at Fair Value through Profit or Loss | 382,712,042 | 53,528,589 | 6,925,811 | 91,732,749 | (469,623) | 534,429,568 |
| Income from Derecognition of Assets Measured at Amortized Cost | 146,815,190 | 20,866,476 | — | — | — | 167,681,666 |
| Exchange Rate Differences on Foreign Currency | 110,249,683 | 6,080,516 | 9,150,804 | 3,641,760 | — | 129,122,763 |
| Other Operating Income | 133,263,672 | 70,361,419 | 13,972,591 | 109,520,647 | (11,086,754) | 316,031,575 |
| Insurance Business Result | — | — | 36,475,367 | — | 20,899,680 | 57,375,047 |
| Impairment Charge | (276,219,938) | (182,394,347) | (103,258) | — | — | (458,717,543) |
| Personnel Expenses | (354,709,137) | (114,923,940) | (24,067,358) | (18,687,160) | — | (512,387,595) |
| Administrative Expenses | (338,074,573) | (134,325,484) | (21,160,292) | (15,401,651) | 343,578 | (508,618,422) |
| Depreciation of Assets | (89,649,302) | (19,253,741) | (3,988,969) | (1,277,323) | — | (114,169,335) |
| Other Operating Expenses | (599,734,795) | (173,857,405) | (78,495,145) | (31,921,622) | 10,127 | (883,998,840) |
| Loss on Net Monetary Position | (1,603,504,674) | (293,721,238) | (7,528,724) | (71,753,152) | — | (1,976,507,788) |
| Operating Income | 1,167,290,367 | 257,765,679 | (33,806,812) | 68,235,857 | 8,255,078 | 1,467,740,169 |
| Share of Profit from Associates and Joint Ventures | (3,591,610) | — | — | — | — | (3,591,610) |
| Income before Taxes on Continuing Operations | 1,163,698,757 | 257,765,679 | (33,806,812) | 68,235,857 | 8,255,078 | 1,464,148,559 |
| Income Tax on Continuing Operations | (427,924,780) | (68,384,867) | 16,292,117 | (27,969,446) | — | (507,986,976) |
| Net Income from Continuing Operations | 735,773,977 | 189,380,812 | (17,514,695) | 40,266,411 | 8,255,078 | 956,161,583 |
| Net Income | 735,773,977 | 189,380,812 | (17,514,695) | 40,266,411 | 8,255,078 | 956,161,583 |
| Other Comprehensive Income (Loss) | 17,505,543 | (740,661) | (112,690) | 533,091 | — | 17,185,283 |
| Net Income Attributable to Parent Company's Owners | 753,279,520 | 188,640,151 | (17,518,870) | 40,799,502 | 8,255,078 | 973,455,381 |
| Net Income Attributable to Non-controlling Interests | — | — | (108,515) | — | — | (108,515) |
| | |
| GRUPO FINANCIERO GALICIA S.A. |
| NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS |
| | | | | | | | | | | | | | | | | | | | |
| Items | Bank | Naranja X | Insurance | Other Businesses | Adjustments | 09.30.23 |
| Net Income from Interest | 1,911,519,794 | 380,754,566 | 26,019,256 | 24,789 | (12,146,622) | 2,306,171,783 |
| Net Fee Income | 437,269,163 | 277,972,910 | — | 3,965,870 | (14,296,825) | 704,911,118 |
| Net Income from Financial Instruments measured at Fair Value through Profit or Loss | 386,655,904 | 57,066,788 | (3,947,844) | 84,605,947 | 13,520,465 | 537,901,260 |
| Income from Derecognition of Assets Measured at Amortized Cost | 72,682,961 | (321,219) | — | 14,217 | — | 72,375,959 |
| Exchange Rate Differences on Gold and Foreign Currency | 379,128,395 | (1,429,767) | 252,698 | 16,671,032 | — | 394,622,358 |
| Other Operating Income | 420,302,213 | 59,858,403 | 12,411,828 | 84,102,423 | (6,361,403) | 570,313,464 |
| Insurance Business Result | — | — | 38,485,817 | | 18,388,284 | 56,874,101 |
| Impairment Charge | (177,090,582) | (83,711,450) | 18,633 | — | — | (260,783,399) |
| Personnel Expenses | (326,466,613) | (109,849,829) | (15,174,660) | (12,682,454) | — | (464,173,556) |
| Administrative Expenses | (295,952,033) | (112,172,850) | (8,421,570) | (11,111,196) | 859,814 | (426,797,835) |
| Depreciation and Impairment of Assets | (104,419,016) | (17,866,162) | (2,254,503) | (1,129,173) | — | (125,668,854) |
| Other Operating Expenses | (588,952,456) | (151,109,985) | (5,760,047) | (19,048,056) | 51,668 | (764,818,876) |
| Loss on Net Monetary Position | (1,508,692,103) | (288,918,734) | (19,551,544) | (62,087,532) | — | (1,879,249,913) |
| Operating Income | 605,985,627 | 10,272,671 | 22,078,064 | 83,325,867 | 15,381 | 721,677,610 |
| Share of Profit from Associates and Joint Ventures | (3,072,099) | — | — | — | — | (3,072,099) |
| Income before Taxes on Continuing Operations | 602,913,528 | 10,272,671 | 22,078,064 | 83,325,867 | 15,381 | 718,605,511 |
| Income Tax on Continuing Operations | (156,643,373) | (13,588,470) | (11,360,635) | (37,673,481) | — | (219,265,959) |
| Net Income from Continuing Operations | 446,270,155 | (3,315,799) | 10,717,429 | 45,652,386 | 15,381 | 499,339,552 |
| Net Income | 446,270,155 | (3,315,799) | 10,717,429 | 45,652,386 | 15,381 | 499,339,552 |
| Other Comprehensive Income (Loss) | — | 107,539 | 72,149 | 802,262 | — | 981,950 |
| Net Income Attributable to Parent Company's Owners | 446,270,155 | (3,208,260) | 10,789,445 | 46,454,648 | 15,381 | 500,321,369 |
| Net Income Attributable to Non-controlling Interests | — | — | 133 | — | — | 133 |
| | |
| GRUPO FINANCIERO GALICIA S.A. |
| NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS |
| | |
| NOTE 32. CAPITAL MANAGEMENT AND RISK POLICIES |
The main risks to which the Group is exposed are classified into nine types: capital risk, financial risks (market risk, currency risk, interest rate risk, and liquidity risk), credit risk, operational risk, technological risk, cybersecurity risk, reputational risk, strategic risk, and money laundering risk.
There have been no significant changes in the aforementioned risk management policies, with respect to those set forth in the financial statements as of December 31, 2023.
| | |
| NOTE 33. CONTINGENCIES AND COMMITMENTS |
a) Tax Aspects
At the date of preparation of these Consolidated Condensed Interim Financial Statements, with varying degrees of progress, there are ongoing review and resolution processes filed by provincial and City of Buenos Aires tax authorities, mainly related to issues arising from the application of the turnover tax.
These processes and their eventual effects are subject to permanent monitoring and, although it is considered to have complied with tax obligations in accordance with current regulations, the allowances that are considered adequate have been made according to the evolution of each of the processes.
As of September 30, 2024 several claims for refund of the Income Tax paid in excess for the fiscal years 2014, 2015, 2016, 2017, 2018, 2019, 2021 and 2022, for the amounts of Ps. 433,815, Ps. 459,319, Ps. 944,338, Ps. 866,842, Ps. 3,646,382, Ps. 4,403,712, Ps. 629,837 and Ps. 4,039,802 (nominal values), respectively, were submitted by Banco Galicia to the Federal Administration of Public Revenue (Administración Federal de Ingresos Públicos, AFIP). These are based on jurisprudence precedents that establish the unconstitutionality of the rules that disable the application of the tax inflation adjustment, resulting in situations of confiscatory nature. In light of the delay in the resolution by the Federal Administration of Public Revenue, the corresponding judicial claims were filed.
Identical claims were filed by other Group subsidiaries before the Federal Administration of Public Revenue: Tarjetas Cuyanas S.A., (Tarjeta Naranja S.A.U.) predecessor company, for 2014 and 2016 periods, for an amount of Ps. 145,478, nominal value; Tarjeta Naranja S.A.U., for 2014 and 2016 periods, for a total amount of Ps. 580,164, nominal value; and for 2015, 2017, and 2018 periods, for an amount of Ps. 149,763, Ps. 326,498, and Ps. 973,843, nominal value, respectively. In light of the delay in the resolution by the Federal Administration of Public Revenue, the corresponding judicial claims were filed. On May 26, 2020, Tarjeta Naranja S.A.U. filed before the AFIP a claim for the repetition of the Income Tax corresponding to 2019 period for Ps. 1,364,949 in nominal value.
At the closing of these financial statements, the Group does not record contingent assets derived from the aforementioned presentations.
b Consumer Advocacy Associations
Consumer associations, invoking their representation, have filed claims to Banco Galicia in relation to the collection of certain commissions, interest rates, and financial charges.
The Group considers that the resolution of these disputes will not have a significant impact on its equity.
c Penalties applied to Banco de Galicia y Buenos Aires S.A.U. and summary proceedings filed by the Argentine Central Bank.
The sanctions applied and the proceedings initiated by the Argentine Central Bank are described in detail in Note 36.6.
The recorded contingency provisions are detailed below:
| | |
| GRUPO FINANCIERO GALICIA S.A. |
| NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS |
| | | | | | | | |
| Item | 09.30.24 | 12.31.23 |
| Other Contingencies | 51,893,142 | 32,546,986 |
| For Judgment of a Commercial Nature/Legal Matters | 16,064,078 | 21,303,656 |
| For Labor Lawsuits | 941,330 | 1,804,458 |
| For Claims and Cards | 200 | 403 |
| For Guarantees Granted | — | 2,302 |
| For Other Contingencies | 34,887,534 | 9,436,167 |
| For Termination Benefits | 30,061,623 | 8,091,078 |
| Difference due to Dollarization of Judicial Deposits Com. “A” 4686 | 103,780 | 460,143 |
| Total | 82,058,545 | 41,098,207 |
The changes in provisions are shown in detail in Schedule J.
| | |
| NOTE 34. OFF-BALANCE SHEET ITEMS |
In the normal course of business, in order to meet the financing needs of customers, some transactions are processed which are recorded off-balance sheet. These instruments expose the Group to credit risk, in addition to the financing recognized in the asset. These financial instruments include commitments to extend credit, letters of credit reserve, guarantees granted and acceptances.
The same credit policies are used for agreed credits, guarantees and loan granting. Pending commitments and guarantees do not represent an unusual credit risk.
Agreed Credits
They are commitments to grant loans to a customer at a future date, subject to compliance with certain contractual agreements that, in general, have fixed maturity dates or other termination clauses, and may require payment of a commission.
Commitments are expected to expire without recourse to them. The total amounts of the agreed credits do not necessarily represent future cash requirements. The solvency of each customer is assessed on a case- by-case basis.
Guarantees Granted
The issuer bank commits itself to refund the loss to the beneficiary if the guaranteed debtor breaches their obligation at maturity date.
Documentary Export/Import Credits
They are conditional commitments issued by the Group to guarantee a customer's compliance as regards a third party.
Liabilities for Foreign Trade Operations
They are conditional commitments for foreign trade transactions.
Our exposure to the loss of credit in the event of noncompliance by the other party in the financial instrument is represented by the notional contractual amount of the same investments.
The credit exposure for these transactions is detailed below:
| | | | | | | | |
| Item | 09.30.24 | 12.31.23 |
| Agreed Credits | 669,010,486 | 495,548,093 |
| Documentary Export/Import Credits | 47,276,999 | 36,839,836 |
| Guarantees Granted | 724,239,765 | 771,147,964 |
| Liabilities for Foreign Trade Operations | 44,270,169 | 36,920,307 |
The fees related to the aforementioned items, as of the indicated dates, were as follows:
| | |
| GRUPO FINANCIERO GALICIA S.A. |
| NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS |
| | | | | | | | | | | | | | |
| Item | Three months as of 09.30.24 | Nine months as of 09.30.24 | Three months as of 09.30.23 | Nine months as of 09.30.23 |
| For Agreed Credits | 239,033 | 784,794 | 245,048 | 365,161 |
| For Documented Export and Import Credits | 3,882 | 1,915,523 | 537,158 | 1,070,127 |
| For Guarantees Granted | 1,069,919 | 3,209,596 | 1,011,496 | 2,382,382 |
The expected credit loss for the aforementioned items, as of the indicated dates, is detailed below:
| | | | | | | | |
| Item | 09.30.24 | 12.31.23 |
| For Agreed Credits | 909,777 | 720,623 |
| For Documented Export and Import Credits | 104,713 | 111,086 |
| For Guarantees Granted | 11,126,791 | 5,596,151 |
| Liabilities for Foreign Trade Operations | 90,903 | 199,479 |
The credit risk of these instruments is essentially the same as that involved in extending credit facilities to customers.
To provide guarantees to our clients, in certain circumstances, counter-guarantees may be required. The amounts, by type, are as follows:
| | | | | | | | |
| Item | 09.30.24 | 12.31.23 |
| Other preferred guarantees received | 34,985,849 | 34,297,656 |
| Other guarantees received | — | 23,703,941 |
Additionally, checks to be debited and to be credited, as well as other elements in the collection process, such as notes, invoices and sundry items, are recorded in memorandum accounts until the related instrument is approved or accepted.
The risk of loss in these offsetting transactions is not significant.
| | | | | | | | |
| Item | 09.30.24 | 12.31.23 |
| Values to be Debited | 248,486,311 | 158,059,072 |
| Values to be Credited | 211,125,685 | 149,684,474 |
| Collection Values | 1,280,262,325 | 1,057,210,325 |
The Group acts as trustee under trust agreements to guarantee obligations derived from various contracts between parties; The amounts registered in the trust fund and the securities held in escrow, as of the indicated dates, are as follows:
| | | | | | | | |
| Item | 09.30.24 | 12.31.23 |
| Trust Funds | 21,677,518 | 37,060,323 |
| Securities held in Escrow | 34,113,433,438 | 34,652,716,019 |
These trusts are not consolidated because the Group does not exercise control over them.
| | |
| NOTE 35. TRANSACTIONS WITH RELATED PARTIES |
Human and legal persons who directly or indirectly exert control over the Entity, or are controlled by it, are considered related parties; they include the Subsidiaries, Associates and Affiliates; the members of the Board of Directors, Syndics and personnel in Senior Management positions; human persons who hold similar positions in financial institutions or complementary services companies; companies or sole proprietor ships over which key personnel may exert significant influence or control, and spouses, partners and relatives up to the second degree of consanguinity or first degree of affinity of all human persons directly or indirectly linked to the Group.
The Group controls another entity when it has power over the financial and operational decisions of other entities, and in turn, obtains benefits from it.
On the other hand, the Group considers that it has joint control when there is an agreement between the parties on the control of a common economic activity.
Finally, those cases where the Group exerts significant influence means the capacity to participate in the decisions of the financial policy and the company's operations. Shareholders with an interest equal to or greater than 20% of the Group's
| | |
| GRUPO FINANCIERO GALICIA S.A. |
| NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS |
total votes or its subsidiaries are considered to exert a significant influence. In determining said situations, not only the legal aspects are observed but also the nature and substance of the relationship.
Additionally, the key personnel of the Group's Management (members of the Board of Directors and Managers) and the entities over which the key personnel can exert significant influence or control are considered related parties.
35.1. Controlling Entity
The Group is controlled by:
| | | | | | | | | | | | | | |
| Name | Nature | Main Activity | Location | Interest % |
| EBA Holding S.A. | 54.09% of voting rights | Financial and Investment Matters | City of Buenos Aires - Argentina | 19.07 | % |
35.2. Remunerations of Key Personnel
The remuneration received by the Group’s key personnel as of September 30, 2024 and September 30, 2023 amounts to Ps. 32,860,708 and Ps. 26,811,526, respectively.
35.3. Composition of Key Personnel
The composition of key personnel as of the indicated dates is as follows:
| | | | | | | | |
| Composition of Key Personnel | 09.30.24 | 12.31.23 |
| Regular Directors (*) | 114 | 88 |
| General Manager | 1 | 1 |
| Area Managers and Other Leaders | 92 | 90 |
| Total | 207 | 179 |
(*) It is composed of Regular Directors, members of the different Boards of Directors of the Company and its subsidiaries.
35.4. Transactions with Related Parties
The following chart, as of the indicated dates, shows the total credit assistance granted by the Group to key personnel, syndics, main shareholders, their relatives up to second degree of consanguinity or first of affinity (according to the Argentine Central Bank's definition of related natural person) and any company related to any of the above which consolidation is not required.
| | | | | | | | |
| Items | 09.30.24 | 12.31.23 |
| Total Amount of Credit Assistance | 29,843,777 | 36,670,345 |
| Number of Recipients (quantities) | 263 | 266 |
| - Physical Persons | 211 | 218 |
| - Legal Persons | 52 | 48 |
| Average Amount of Credit Assistance | 113,474 | 137,859 |
| Maximum Assistance | 2,896,657 | 9,923,443 |
The financing, including those that were restructured, were granted in the normal course of business and substantially on the same terms, including interest rates and guarantees, as those in force at the time to grant credit to unrelated parties. Likewise, they did not imply any risk for uncollectible accounts greater than normal, nor did they present any other unfavorable conditions.
35.5. Balances between Related Parties
Below, there appear the balances of transactions with related parties as of the indicated dates, which have been eliminated from the Consolidated Condensed Interim Financial Statements:
| | |
| GRUPO FINANCIERO GALICIA S.A. |
| NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS |
| | | | | | | | |
| Items | 09.30.24 | 12.31.23 |
| ASSETS | | |
| Cash and Due from Banks | 139,010,203 | 66,371,755 |
| Debt Securities at Fair Value through Profit or Loss | 3,261,586 | 28,608,649 |
| Derivative Financial Instruments | — | 13,023,883 |
| Repurchase Transactions | 20,477,074 | 43,100,856 |
| Other Financial Assets | 7,369,366 | 19,900,923 |
| Loans and Other Financing | 156,373,849 | 132,798,676 |
| Other Debt Securities | 283,293 | — |
| Other Non-financial Assets | — | 16 |
| Total Assets | 326,775,371 | 303,804,758 |
| | | | | | | | |
| Items | 09.30.24 | 12.31.23 |
| LIABILITIES | | |
| Deposits | 145,855,263 | 86,261,272 |
| Derivative Financial Instruments | — | 13,023,883 |
| Repurchase Transactions | 20,477,074 | 43,100,856 |
| Other Financial Liabilities | 15,733,437 | 15,316,876 |
| Financing from the Argentine Central Bank and Other Financial Institutions | 140,622,167 | 116,066,549 |
| Issued Debt Securities | 3,544,880 | 24,225,683 |
| Subordinated Debt Securities | — | 4,382,966 |
| Insurance Contracts Liabilities | 29,939 | 8,309 |
| Other Non-Financial Liabilities | 512,611 | 1,418,364 |
| Total Liabilities | 326,775,371 | 303,804,758 |
| | | | | | | | | | | | | | |
| Items | Three months as of 09.30.24 | Nine months as of 09.30.24 | Three months as of 09.30.23 | Nine months as of 09.30.23 |
| INCOME | | | | |
| Net Income from Interest | (28,112,193) | (15,389,531) | 18,710,647 | 12,146,622 |
| Net Fee Income | 26,483,396 | 16,831,461 | 24,300,001 | 14,296,825 |
| Net Income from Financial Instruments measured at Fair Value through Profit or Loss | 866,577 | 469,623 | (21,196,246) | (13,520,465) |
| Other Operating Income | 17,919,576 | 11,086,754 | 14,529,955 | 6,361,403 |
| Insurance Business Result | (33,254,573) | (20,899,680) | (34,799,134) | (18,388,284) |
| Administrative Expenses | (408,746) | (343,578) | (1,496,050) | (859,814) |
| Other Operating Expenses | (9,208) | (10,127) | (88,349) | (51,668) |
| Total Income | (16,515,171) | (8,255,078) | (39,176) | (15,381) |
During the period, Banco Galicia has carried out securities purchase and sale transactions with related entities.
| | |
| NOTE 36. ADDITIONAL INFORMATION REQUIRED BY THE ARGENTINE CENTRAL BANK |
36.1. Deposit Insurance
Through Law No. 24,485 and Executive Order No. 540/95, the creation of the Deposit Insurance System was arranged, in order to cover the risk of bank deposits in addition to the privileges and protection system established in the Financial Institutions Act.
By Executive Order No. 1127/98, the National Executive Branch established the maximum coverage limit of the insurance system including demand or time deposits, either in Argentine pesos and/or foreign currency. As of January 1, 2023, this limit was established at Ps. 6,000. As of April 1, 2024, this amount increased to Ps. 25,000.
Deposits made by other financial institutions (including time deposits certificates acquired by secondary trading) are not included in this system, nor deposits made by persons directly or indirectly related to the institution, deposits of securities, acceptances or guarantees, or deposits made at a rate higher than the rate periodically established by the Argentine Central Bank. The deposits which ownership has been acquired via endorsement, financial products offering additional incentives
| | |
| GRUPO FINANCIERO GALICIA S.A. |
| NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS |
to the interest rate, and the fixed balances from deposits and other transactions excluded, are also excluded from this system. This system has been implemented through the creation of a fund denominated “Deposit Insurance Scheme” (Fondo de Garantía de los Depósitos, FGD), administered by Seguros de Depósitos S.A. (SEDESA) and which shareholders are the Argentine Central Bank and the financial institutions in the proportion defined by SEDESA based on the contributions to the aforementioned fund.
For each entity, the monthly contribution to the Fund is 0.015% on the monthly average of all deposits comprised.
36.2 Restricted Availability Assets
As of the indicated dates, there are restrictions on the free availability of the following assets:
Banco de Galicia y Buenos Aires S.A.U.
a) Cash at Banks and Government Securities
| | | | | | | | |
| Items | 09.30.24 | 12.31.23 |
| For Operations in the Rosario Forward Market, MAE and BYMA | 102,567,335 | 145,554,111 |
| For Capacity of Repo Transactions | 5,367,079 | 5,278,492 |
| For Operations with Debit/Credit Cards | 67,788,811 | 44,088,917 |
| For Attachments | 10,009 | 20,874 |
| Minimum Offsetting Entry required to Operate as CNV Agents | 1,904,249 | 1,524,557 |
| Guarantees of the Competitiveness Program for Regional Economies (IDB - FONDEFIN) | 211,195 | 273,479 |
| For Other Operations (includes Deposits as Collateral from Rentals) | 211,547 | 373,201 |
| For Forward Purchases for Repurchase Transactions | 48,303,707 | 47,506,425 |
| For Surety Guarantees | 695,248,595 | 342,400,067 |
b) Escrow Accounts
Escrow accounts have been opened in the Argentine Central Bank for the operations related to the electronic clearing houses, cancellation checks and other similar operations which as of the indicated dates amounted to:
| | | | | | | | |
| Items | 09.30.24 | 12.31.23 |
| Escrow Accounts | 200,592,234 | 191,683,567 |
c) Interests in Other Companies
The item “Investments in other Companies” includes the amount of 1,222,406 non-transferable non- endorsable registered ordinary shares of Electrigal S.A., which transfer is subject to the approval of the national authorities, in accordance with the terms of the concession contract duly signed.
d) Contribution to Risk Funds
Banco Galicia, as a protective partner in the Risk Funds of Garantizar S.G.R., Don Mario S.G.R., Movil S.G.R., Potenciar S.G.R., Bind Garantías S.G.R., and Aval Ganadero S.G.R., undertakes to maintain the contributions made to them for a period of 2 years.
| | | | | | | | |
| Items | 09.30.24 | 12.31.23 |
| Fondo de Riesgo de Garantizar S.G.R. | 17,211,026 | 6,617,957 |
| Don Mario S.G.R. | 2,200,000 | 1,612,648 |
| Móvil S.G.R. | 2,632,700 | 2,217,390 |
| Potenciar S.G.R. | 5,018,353 | 2,415,651 |
| Bind Garantías S.G.R. | 50,000 | 100,790 |
| Aval Ganadero S.G.R. | 480,000 | — |
Inviu S.A.U.
| | | | | | | | |
| Items | 09.30.24 | 12.31.23 |
| Minimum Offsetting Entry required to Operate as CNV Agents | 377,325 | 616,981 |
| Deposits as Collateral | 4,570,753 | 1,399,873 |
| Surety Bonds | — | 13,705 |
Naranja Digital Compañía Financiera S.A.U.
| | |
| GRUPO FINANCIERO GALICIA S.A. |
| NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS |
Escrow accounts have been opened in the Argentine Central Bank for the operations related to the electronic clearing houses, cancellation checks and other similar operations which as of the indicated date amounted to:
| | | | | | | | |
| Items | 09.30.24 | 12.31.23 |
| Escrow Accounts | 28,387,295 | 9,821,281 |
Tarjeta Naranja S.A.U.
| | | | | | | | |
| Items | 09.30.24 | 12.31.23 |
| Attachments related to Legal Cases | 1,245 | 1,245 |
| Guarantees related to Rental Contracts | 22,442 | 16,006 |
| Guarantees related to consumer transactions with credit card abroad | 3,341,637 | 11,622,179 |
Galicia Asset Management S.A.U.
| | | | | | | | |
| Items | 09.30.24 | 12.31.23 |
| Minimum offsetting entry required to operate as Escrow Agent for Collective Investment Products, Mutual Funds as required by the CNV(*) | 675,914 | 527,781 |
(*) As of September 30, 2024, it corresponds to 15,500,000 shares of the FIMA Capital Plus Class “C” Fund.
Galicia Securities S.A.U.
| | | | | | | | |
| Items | 09.30.24 | 12.31.23 |
| | |
| Minimum Offsetting Entry required to Operate as CNV Agents | 423,507 | 399,687 |
| Deposits as Collateral | 1,421,014 | 23,468,674 |
Galicia Holdings US Inc.
| | | | | | | | |
| Items | 09.30.24 | 12.31.23 |
| Guarantees related to Rental Contracts | 133,691 | — |
The total assets of restricted availability for the items indicated in the aforementioned controlled companies, as of the indicated dates, is as follows:
| | | | | | | | |
| Items | 09.30.24 | 12.31.23 |
| Total Restricted Availability Assets | 1,189,151,663 | 839,555,538 |
36.3 Fiduciary Activities
a) Trust Contracts for Purposes of Guaranteeing Compliance with Obligations:
Purpose: In order to guarantee compliance with contractual obligations, the parties to these agreements have agreed to deliver to Banco de Galicia y Buenos Aires S.A.U., as fiduciary property, amounts to be applied according to the following breakdown:
| | | | | | | | | | | |
| Contract date | Trustor | Balances | Maturity(*) |
| 11.23.11 | Exxon Mobil | 265,814 | 04.19.25 |
| 09.12.14 | Copp. de Trab. Portuarios | 10,561 | 09.12.24 |
| | | |
| 03.08.23 | Fondo Fiduciario Aceitero | 8,827 | 12.31.24 |
| 12.12.23 | Fdo. Anticiclico Agroalim 2023 | 3,813 | 12.31.24 |
| Total | 289,015 | |
(*) These amounts shall be released monthly until settlement date of trustor obligations or maturity date, whichever occurs first.
| | |
| GRUPO FINANCIERO GALICIA S.A. |
| NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS |
b) Financial Trust Contracts:
Purpose: To administer and exercise the fiduciary ownership of the trust assets until the redemption of debt securities and participation certificates:
| | | | | | | | | | | |
| Contract date | Trust | Balances of Trust Funds | Maturity (*) |
| 12.06.06 | GAS I | 975,291 | 12.31.24 |
| 05.14.09 | GAS II | 20,263,105 | 12.31.24 |
| 06.08.11 | MILA III | 129,229 | 12.31.24 |
| 09.01.11 | MILA IV | 20,878 | 12.31.24 |
| Total | 21,388,503 | |
(*) Estimated date since maturity date shall occur at the time of the distribution of all of trust assets.
36.4. Compliance with regulations required by the National Securities Commission
(a) Agents - Minimum Offsetting Entry Required
Banco de Galicia y Buenos Aires S.A.U.
Within the framework of the provisions of Resolution No. 622/13 of the CNV, the Bank has obtained registration in the registry kept by said body in the categories of Escrow Agent for Collective Investment Products, Mutual Funds, in the Financial Trustors’ Registry No. 54 and Comprehensive Settlement and Offsetting Agent No. 22 (ALyC and AN - INTEGRAL).
As of September 30, 2024, for the Escrow Agent for Collective Investment Products, Mutual Funds in the Financial Trustors' Registry, the required Shareholders' Equity amounts to Ps. 1,121,333, and the minimum required offsetting entry is Ps. 560,667.
In the case of ALyC and AN - INTEGRAL, said requirement amounts to Ps. 555,178, with the minimum offsetting entry required being Ps. 277,589.
The Entity integrated these requirements with Argentine Republic Bonds, Adjusted by CER, valued at amortized cost in the amount of Ps. 1,904,249, whose fair value is Ps. 1,548,000, which are held in escrow in Caja de Valores (Comitente 100100).
Galicia Asset Management S.A.U.
In accordance with the requirements set forth in CNV Resolution No. 622/13, the minimum Shareholders' Equity required to operate as Escrow Agent for Collective Investment Products, Mutual Funds, amounts to Ps. 1,310,189 and the minimum offsetting entry amounts to Ps. 655,094.
As of September 30, 2024, the Shareholders' Equity of Galicia Asset Management S.A.U. exceeds the minimum required by said Resolution.
Galicia Asset Management S.A.U. integrated said requirement with 15,500,000 shares of Fondo FIMA MIX I Class “C,” equivalent to Ps. 675,914.
Galicia Securities S.A.U.
Within the framework of the provisions of CNV Resolution No. 622/13, Galicia Securities S.A.U. has obtained registration in the registry kept by said body in the categories “Own Settlement and Offsetting Agent (ALyC and AN Own Portfolio)” and “Placement and Distribution Agents of Mutual Funds.”
In accordance with the established requirements, the ALyC and AN Own Portfolio must have a minimum Shareholders' Equity equivalent to 470,350 Units of Purchasing Value (Unidades de Valor Adquisitivo, UVA), such semi-annual requirement amounting to Ps. 549,949 as of June 30, 2024, with the minimum offsetting entry being Ps. 274,975.
In the case of a Placement and Distribution Agents of Mutual Funds, its Shareholders' Equity must be equivalent to 163,500 UVA, such requirement amounting to Ps. 191,170, with the minimum offsetting entry required of Ps. 95,585.
As of September 30, 2024, the Shareholders' Equity of Galicia Securities S.A.U. exceeds the minimum required as per the above paragraphs.
Galicia Securities S.A.U. integrated these requirements with National Treasury Bills - S14O4.
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| GRUPO FINANCIERO GALICIA S.A. |
| NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS |
INVIU S.A.U.
Within the framework of the provisions of CNV General Resolution No. 622/13, INVIU S.A.U.. has obtained registration in the registry kept by said body in the categories “Own Settlement and Offsetting Agent (ALyC and AN Own Portfolio)” and “Placement and Distribution Agents of Mutual Funds.”
In accordance with the established requirements, the ALyC and AN Own Portfolio must have a minimum Shareholders' Equity equivalent to 470,350 Units of Purchasing Value (Unidades de Valor Adquisitivo, UVA), such semi-annual requirement amounting to Ps. 549,949 as of June 30, 2024, with the minimum offsetting entry being Ps. 274,975.
In the case of a Placement and Distribution Agents of Mutual Funds, its Shareholders' Equity must be equivalent to 163,500 UVA, such requirement amounting to Ps. 191,170, with the minimum offsetting entry required of Ps. 95,585.
As of September 30, 2024, the Shareholders' Equity of INVIU S.A.U. exceeds the minimum required established in the preceding paragraphs.
INVIU S.A.U. integrated this requirement with a demand account opened at JP Morgan Chase Bank National Association, for the amount of Ps. 377,325.
(b) Escrow Agent for Collective Investment Products, Mutual Funds
Likewise, in compliance with Art. 7 of Chapter II, Title V of said resolution, Galicia Administradora de Fondos S.A., in its capacity as Escrow Agent for Collective Investment Products of Mutual Funds (depositary company): “Fima Acciones,” “Fima P.B. Acciones,” “Fima Renta En Pesos,” “Fima Ahorro Pesos,” “Fima Renta Plus,” “Fima Premium,” “Fima Ahorro Plus,” “Fima Capital Plus,” “Fima Abierto Pymes,” “Fima Mix I,” “Fima Mix II,” “Fima Renta Fija Internacional,” “Fima Acciones Latinoamericanas en dólares,” “Fima Sustentable ASG,” “Fima Renta Fija Dólares” and “Fima Mix Dólares,” it is hereby stated that the total quantity held in escrow as of September 30, 2024 is 101,913,347,528 shares, their cash value being Ps. 6,408,337,558, which is reflected in the account “Depositors of Securities Held in Escrow.” At the closing of the previous fiscal year, securities held in escrow amounted to the quantity of 83,582,052,338 shares and their cash value was Ps. 7,022,958,149.
The equity of the Mutual Funds is detailed below as of the indicated dates:
| | | | | | | | |
| Investment Mutual Fund - Equity | 09.30.24 | 12.31.23 |
| Fima Acciones | 70,093,370 | 57,197,137 |
| Fima P.B. Acciones | 42,400,812 | 32,872,983 |
| Fima Renta En Pesos | 96,375,402 | 163,541,767 |
| Fima Ahorro Pesos | 308,046,712 | 119,958,286 |
| Fima Renta Plus | 67,810,300 | 111,507,466 |
| Fima Premium | 5,307,052,703 | 5,806,470,155 |
| Fima Ahorro Plus | 306,887,156 | 201,446,287 |
| Fima Capital Plus | 126,233,261 | 452,214,412 |
| Fima Abierto Pymes | 11,395,030 | 13,703,353 |
| Fima Mix I | 24,023,884 | 37,518,517 |
| Fima Mix II | 6,202,163 | 8,491,227 |
| Fima Renta Fija Internacional | 5,337,897 | 9,588,923 |
| Fima Sustentable ASG | 3,849,168 | 7,378,383 |
| Fima Acciones Latinoamericanas Dólares | 486,086 | 1,069,253 |
| Fima Renta Fija Dólares | 3,247,378 | — |
| Fima Mix Dólares | 28,896,236 | — |
| Total | 6,408,337,558 | 7,022,958,149 |
All the previously detailed operations are recorded in Off-Balance Sheet Items - Securities held in Escrow.
(c) Documentation Safeguarding
In accordance with CNV General Resolution No. 629, the Group informs that it is in possession of supporting documentation of accounting and management operation safeguarded at AdeA (Tax ID. No. 30- 68233570-6) Plant III, located in Ruta Provincial 36 km 31.5 N° 6471 (PC 1888) Bosques, Province of Buenos Aires, legal domicile at Av. Juramento 1775, Piso 4 (1428), City of Buenos Aires.
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| GRUPO FINANCIERO GALICIA S.A. |
| NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS |
36.5. ACCOUNTS THAT IDENTIFY COMPLIANCE WITH THE MINIMUM CASH
As of September 30, 2024, the balances recorded in the regulatory items are the following:
| | | | | | | | | | | |
| | In currency | |
| Item | Ps. | Thousand US$ | Euros(*) |
| Checking Accounts held in the Argentine Central Bank | 436,566,666 | 1,775,747 | 28 |
| Special Accounts in the Argentine Central Bank | 196,877,899 | 4,490 | — |
| National Treasury Bonds in Argentine Pesos Computable for Minimum | 221,037,899 | — | — |
| Argentine Government Securities | 481,257,860 | — | — |
| Total in Concept of Integration of the Minimum Cash | 1,335,740,324 | 1,780,237 | 28 |
(*) Stated in thousand US$.
The determination of the minimum capital position on Banco Galicia's individual basis is detailed below: Balances are disclosed in accordance with the standard and currency in force in each period/fiscal year.
| | | | | | | | |
| Items | 09.30.24 | 12.31.23 |
| Capital Requirement | 1,001,481,864 | 454,010,943 |
| Integration | 3,240,767,450 | 1,376,283,996 |
| Excess of Integration | 2,239,285,586 | 922,273,053 |
36.6. PENALTIES APPLIED TO BANCO DE GALICIA Y BUENOS AIRES S.A.U. AND PRELIMINARY PROCEEDINGS FILED BY THE ARGENTINE CENTRAL BANK
Penalties applied to the financial institution pending as of September 30, 2024
UIF Proceedings - Docket 867/13.
•Penalty notification date: June 19, 2020.
•Reason of the Penalty: alleged non-compliance with the provisions of Article 21 of the Anti-Money Laundering Law and alleged non-compliance with the provisions of UIF Resolution No. 121/11, especially with the provisions of Article 13 (Paragraph j), Article 14 (Paragraph h), Article 21 (Paragraph a), Article 23 and Article 24 (Paragraphs d and e). These objections are linked to the risk matrix and the operations monitoring system in relation to the prevention of money laundering and financing of terrorism and the alleged lack of required information.
•Amount applied and those responsible sanctioned (penalties): penalties for global amounts of Ps. 440 to the Bank and eight Directors.
•Status of the case: On September 14, 2020, the direct appeal to the penalty was filed before the National Court of Appeals for Federal Administrative Disputes of the Federal Capital, under the terms of Article 25 of Law No. 25,246, amended by Law No. 24,144; Room III was designated to issue judgment. On February 19, 2021, the Financial Information Unit (Unidad de Información Financiera, UIF) answered the direct appeal; on March 3, 2021, the procedural step was taken by which the parties were warned that judgment was being considered, and on November 30, 2023, Room III of the National Court of Appeals for Federal Administrative Matters decided to reject the direct appeal filed, with costs awarded. On December 15, 2023, a Federal Extraordinary Appeal was filed against this last decision. On February 2, 2024, the UIF answered the direct appeal. On February 22, 2024, the Court of Appeals denied the Extraordinary Federal Appeal, also establishing the compensation for the lawyers of the UIF. On February 29, 2024, an appeal was filed against this resolution before the Argentine Supreme Court of Justice; no decision has so far been made.
UIF Proceedings - Docket No. 127/18.
•Date of notification of the opening of the summary proceeding: April 18, 2022.
•Imputation of Charges: Alleged breaches in the determination of customer profile, deficiencies in the implementation of technological tools and monitoring and in the parameterization of alerts, as well as the alleged untimeliness of an STR filed and failure to file an STR of a customer; this in alleged violation of Articles 20 bis, 21 Paragraphs a) and b), and 21 bis of Law No. 25,246; and Articles 3 (Paragraph g); 21 (Paragraphs g and j); 22 (Paragraph a-); 23; 24 (Paragraphs d-, e- and f-); and 34 of UIF Resolution No. 121/2011, as amended.
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| GRUPO FINANCIERO GALICIA S.A. |
| NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS |
•Defendants: The Bank and seven Directors.
•Status of the case: on July 1, 2022, the defense and presentation of evidence was filed together with several motions. On February 17, 2023, it was decided to proceed to the admittance of evidence, which was subsequently produced. On April 14, 2023, notice was served to present the argument on the merits of the evidence, which was presented on April 28.
Argentine Central Bank Summary Proceeding No. 1613.
•Date of notification of the opening of the summary proceeding: August 24, 2023.
•Imputation of Charges: Alleged violation of the provisions of the Ordered Text of the rules on the “Regulation of the bank checking account”, according to Communication “A” 4971. OPASI Circular 2 - 402. Schedule. Section 7, Paragraph 7.3, Points 7.3.1.5 -in accordance with the provisions of Section 8, Points 8.2.3-, 7.3.3.2 i) and 7.3.3.2 iii) (as supplemented and amended) due to an alleged failure to ratify in court the report of loss and an inadequate report of the checks in the Information Regimes regarding two checks corresponding to a customer which were rejected due to an “Order not to pay - With funds.”
•Defendants: the Bank, three Managers and a Check Processing Leader.
•Status of the case: On September 12, 2023, a general reply was filed by all the defendants, and on September 25, 2023, additional personal replies were filed. On February 29, 2024, it was resolved to open the summary proceeding for submitting evidence, rejecting part of it -with respect to which a reservation was filed- and admitting the rest. After the evidence was favorably submitted, on April 12, the discovery period was closed, and a ten-day notice was served in order to present arguments on the merits of the evidence, and the arguments were presented on April 26, 2024, with no further developments in the case.
Argentine Central Bank Summary Proceeding No. 1620.
•Date of notification of the opening of the summary proceeding: December 18, 2023.
•Imputation of Charges: Alleged violation of the provisions of the Ordered Text of the “Minimum Standards on Internal Controls for Financial Institutions”, according to Communication “A” 6552, Circular CONAU 1 - 1289, Schedule I, Section I - Basic Concepts-, Point 1 - Internal Control, and Section IV - Design and Documentation of Controls-, Point 1 - Responsibilities in the Design and Implementation of Controls-, as supplemented and amended; and the Ordered Text of the rules on “Guidelines for Risk Management in Financial Institutions”, according to Communication “A” 5398, Circular RUNOR 1 - 1013, Schedule, Section 1 - Risk Management Processes-, Point 1.1. -Scope of the Guidelines-, Point 1.4. -General Principles-, Sub-point 1.4.3, and Section 6 -Operational Risk Management-, Point 6.1.2., as supplemented and amended, due to alleged failures in internal controls and deficiencies in the management of the financial entity between 09.02.19 and 08.05.22.
•Defendants: The Bank and nineteen officers (Directors, Syndics, Managers and Tribe Leaders).
•Status of the case: On February 2, 2024, a general reply was filed by all the defendants, and on March 7, 8 and 20, additional personal replies were filed. On April 24, 2024, it was resolved to open the summary proceeding to submit evidence, which was partially rejected -with respect to which a request to preserve the right of defense and a reversal request were filed- and the rest was admitted. On May 30, 2024, the discovery period was closed, and a ten-day notice was served in order to present arguments on the merits of the evidence, and the arguments were presented on June 13, 2024, with no further developments in the case.
Argentine Central Bank Summary Proceeding No. 7732.
•Penalty notification date: August 8, 2022.
•Imputation of Charges: Having conducted exchange transactions made by customers without the prior approval of the Argentine Central Bank in alleged violation to Article 1, paragraphs e) and f) of the Foreign Exchange Criminal Regime (as amended by Executive Order No. 480/95), which includes the regulations of points 5, 6, 9, 10, 15 and 18 of Communication “A” 6770, Communication “A” 6815, Communications “C” 43716, 49077, 50737, 52384, 52388, 57618, 62862, 66581, 66582, 67343, 70322, 81561, 82665, and 84797, as amended and supplemented.
•Responsible persons receiving penalties: General Manager, Area Managers and other officers.
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| GRUPO FINANCIERO GALICIA S.A. |
| NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS |
•Status of the case: On February 28, 2023, the case was presented for the defense of all the defendants. The statute of limitations was raised. The defendants’ individual replies for their defense were recently filed. On August 14, 2023, the demurrer with respect to two of the defendants was rejected, and on August 17, 2023, we filed a request to preserve the right of defense with respect to this demurrer. On January 25, 2024, the Argentine Central Bank rejected the demurrer filed with respect to another defendant, a resolution with respect to which we filed a request to preserve the right of defense on February 5, 2024, which was taken into account on April 3, 2024. Finally, on May 29, the trial period was opened and is currently in progress.
CNV Summary Proceeding No. 87/2024.
•Date of notification of the opening of the summary proceeding: April 30, 2024.
•Imputation of Charges: Alleged violation of Article 117, Paragraph “b”, of Law No. 26,831, as amended, Article 2°, Paragraphs “a”, “b” and “c”, Section II, Chapter III, Title XII, of the CNV Regulations (consolidated text of 2013 and amendments), and Article 59 of Law No. 19,550, based on a report prepared by the Argentine Central Bank and sent to the CNV, which indicates that it has detected a series of transactions that, affecting the volumes and prices considered, could have induced a distorted application of Communication “A” 7546 and complementary notes in the execution of put options that have the Argentine Central Bank as the acquiring party. In their report, they state that in spite of the difficulties to accurately establish the valuations of bonds with hybrid characteristics, such as dual bonds, accentuated by the low liquidity and a discontinuous distribution of the curve, the put options executed could not have been exercised at the resulting levels if there had not been transactions carried out on February 19 and 20, 2024 by the Bank and its related companies Galicia Securities S.A.U. and Inviu S.A.U. The transactions between the aforementioned companies allegedly allowed the exercise of the liquidity option (PUT) of the Dual Bond (TDE25) for NV Ps. 113 million according to Communication “A” 7546 and complementary notes, in apparent excess for an amount of Ps. 23,072,000 in relation to the amount that would have corresponded if an extrapolated price had been applied. The result generated by such transaction was registered under the line “Net Income from Financial Instruments at Fair Value through Profit or Loss” in the Statement of Income.
•Defendants: six Regular Directors and the three Regular Syndics of the Bank, three Regular Directors and the three Regular Syndics of Galicia Securities S.A.U. in office at the time of the facts, and five Regular Directors and the three Regular Syndics of INVIU S.A.U. in office at the time of the facts.
•Status of the case: During the period, the pertinent answers to the charge have been presented; on the other hand, the Argentine Central Bank debited the amount of Ps. 28,837,892 voluntarily offered by the Entity as full compensation for the alleged damage and interest, without prejudice to the defense arguments, or recognition of facts or rights, a situation that has been notified to the CNV.
As of the date of preparation of these Consolidated Condensed Interim Financial Statements, provisions have been made, the impact of which is registered in the line “Other Operating Expenses” in the Statement of Income, based on the opinion of our legal advisors, without excluding the possibility of changes in the situation that may occur in the future based on the progress of the case.
Subsequent to the end of the period, the following notification has been received:
Financial Summary No. 1631 (BCRA File No. EX2024-00152644-GDEBCRA#BCRA).
•Date of notification of the opening of the summary: October 23, 2024.
•Imputed charges: alleged management and/or internal control failures and weaknesses of the financial institution in apparent violation of the provisions in: (i) certain sections of the Consolidated Text of the "Minimum Standards on Internal Controls for Financial Entities" and its complementary and amended provisions; (ii) certain provisions of the Orderly Text of the “Norms on Guidelines for Risk Management in Financial Institutions”, as supplemented and amended; and (iii) certain provisions of the Orderly Text of the “Norms on Guidelines for Corporate Governance in Financial Institutions”, and its complementary and amended provisions. This, based on the transactions carried out between February 19, 2024 and February 21, 2024 by the Bank and its related companies Galicia Securities S.A.U. and INVIU S.A.U. with the Dual Bond (TDE25) and the subsequent execution of the liquidity option (put).
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| GRUPO FINANCIERO GALICIA S.A. |
| NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS |
•Defendants: the Bank, seven directors, the General Manager, the former manager of the Financial Banking Area, the former manager of Trading & Global Markets, the former Trading Team Leader of the Trading & Global Markets Management and three traders of the Trading & Global Markets Management.
•Status of the case: To date, the Bank has presented its defense, denying the allegations received and presenting its defensive arguments.
It is considered that the resolution of these proceedings will not have a significant impact on the Group’s equity.
36.7. ISSUANCE OF BONDS
Debt Securities issues are detailed in Notes 17 and 19.
36.8. RESTRICTIONS TO DISTRIBUTION OF PROFITS
According to Art. 70 of the General Companies Act, Grupo Financiero Galicia S.A. must transfer to Legal Reserve 5% of the profit for the fiscal year, until said reserve reaches 20% of the capital stock plus the balance of the Capital Adjustment account.
As regards Banco Galicia, Argentine Central Bank regulations stipulate that 20% of the profits as per the Statement of Income at fiscal year closing must be allocated to Legal Reserve, plus (or minus) the Adjustments of the previous fiscal years and minus the accumulated loss, if any, at the closing of the previous fiscal year.
This proportion is applied regardless of the Legal Reserve to Capital Stock ratio. Whenever the Legal Reserve is used to absorb losses, profits may only be distributed again when the Reserve value reaches 20% of the Capital Stock plus the Capital Adjustment.
In accordance with the conditions established by the Argentine Central Bank, profits may only be distributed to the extent that Income is positive, after deducting the following items from the Retained Earnings, in addition to the Legal Reserve and that set forth in Bylaws, which set up be enforceable: the difference between the book value and the market value of public sector assets, and/or Argentine Central Bank's debt instruments not valued at market price, the amounts activated by deposits-related judicial causes, and the non-accounted adjustments required by the Argentine Central Bank and the external audit.
Additionally, another requirement in order to be able to distribute profits is to comply with the minimum capital technical ratio. The latter, exclusively for these purposes, will be determined by excluding the items mentioned above from asset and Retained Earnings. Likewise, the existing exemptions in terms of requirement, integration and/or minimum capital position will not be computed.
The Argentine Central Bank established that a capital conservation margin must be maintained in addition to the minimum capital requirement, equivalent to 3.5% of risk-weighted assets. Said margin must exclusively be integrated with Level 1 ordinary principal, net of deductible items. Income distribution will be limited when the level and composition of the entity's Regulatory Capital puts said distribution within the range of the capital conservation margin.
The Argentine Central Bank provided that income distribution must be performed with its prior authorization.
The Argentine Central Bank established that, from 01.01.24 until 12.31.24, the financial institutions may distribute income for up to 60% of the accumulated income, with prior authorization by said institution. In turn, said distribution may be made in 3 installments in homogeneous currency of each payment.
In May, the Argentine Central Bank authorized Banco Galicia the distribution of profits for a total amount of Ps.255,000,000 expressed in December 2023 currency, which were paid in full on the date of signing these condensed interim consolidated financial statements.
The Ordinary and Extraordinary General Meeting of Tarjeta Naranja S.A.U. held on March 16, 2006 resolved to set the maximum limit for the distribution of dividends at 25% of the realized and liquid earnings of each fiscal year, said restriction will remain in force as long as the Company's Shareholders' Equity is less than Ps. 300,000 (Ps. 104,293,726 in closing currency).
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| NOTE 37. ECONOMIC CONTEXT WHERE THE GROUP OPERATES |
The Group operates in a complex economic context, both in the national and international spheres.
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| GRUPO FINANCIERO GALICIA S.A. |
| NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS |
On the international front, Donald Trump's victory led to disparate movements in financial assets. Assets such as the main stock indexes and the dollar reacted upwards while fixed income was negatively affected. Trump's proposed policies, such as tax cuts, increased protectionism and regulatory easing, boosted expectations for economic growth and corporate profit margins, especially in small and medium-sized companies. However, this new policy stance generated a spike in interest rates due to higher expectations of future inflation. Despite this, the Federal Reserve announced a further 25 bps cut in line with market expectations, bringing the rate range to 4.5%-4.75%. Despite the decision, US bond yields rose to 4.4% for the 10-year case, while, by contrast, equities advanced by an average of 2% over the last month.
At the local level, during the first half of 2024, the Gross Domestic Product showed a 3.4% drop compared to the first half of 2023. The retraction was explained by investment (-24.6%), private consumption (-8.2%) and public consumption (-5.2%). Exports, on the other hand, grew 29%. In seasonally adjusted terms, the Gross Domestic Product accumulated three consecutive quarters of contraction, with decreases of 2.3% in the fourth quarter of 2023, 2.2% in the first quarter of 2024 and 1.7% in the second quarter of 2024. However, according to data from the Monthly Estimator of Economic Activity, the third quarter of 2024 would have recovered 3.4% with respect to the previous quarter.
After closing 2023 with an inflation rate of 25.5% in December, the speed of price variation has been declining throughout 2024. In October, inflation was below 3%, standing at 2.7% per month. On a year-on-year basis, the rate of price variation slowed to 193.0%, having reached a peak of 289.4% in April 2024. In the first ten months of the year, cumulative inflation amounted to 107.0%.
After the exchange rate jump in December 2023 and up to the present, the exchange rate has sustained a crawl of around 2% per month. The exchange rate went from 810.7 Ps./USD since the beginning of January to 1006.8 Ps./USD as of November 22, according to BCRA Communication “A” 3500.
So far in 2024, the International Reserves increased by USD 7,800 million, an increase explained by the purchases of foreign currency from the private sector. As of November 22, such purchases amounted to USD 17,693 million.
The money laundering program implemented by the Government achieved the regularization of USD 23,321 million during Stage 1. This was made up of USD 20,631 million in special accounts and in special asset regularization accounts (CERA and CCERA), while the remaining USD 2,690 million was made up of other declared assets. As part of the asset externalization process, private sector dollar deposits amounted to USD 33,387 million (data as of November 19), a growth of USD 14,779 million between August 15 and November 19. Dollar credit to the private sector stood at USD 8,786 million as of the latest available data, an increase of USD 2,204 million during the mentioned period.
As of July 22, the Central Bank ceased to carry out overnight passive passive operations, defining the Fiscal Liquidity Bills (LEFI) as the new liquidity regulation instruments within a new monetary framework. The reference rate has become that of the LEFI, securities issued by the Treasury whose rate is defined by the Central Bank.
The monetary authority has made six interest rate cuts this year. The benchmark interest rate was reduced from 100% at the beginning of 2024 to 35% at the beginning of November. It remains at this level at the time of writing.
During the first ten months of 2024, the Non-financial Public Sector presented a surplus primary result of Ps. 10,325,310 million (equivalent to 1.8% of GDP). This result, net of interest payments, gave rise to a positive financial result of Ps. 2,964,929 million (0.5% of GDP). This was explained by a year-on-year fall in real expenditure of 28.9%, which exceeded the real deterioration in revenues (-6.6% year-on-year).
In May 2024, the International Monetary Fund (IMF) announced that its technical team had completed the eighth review of the Extended Fund Facility Agreement. This review was approved in June by the IMF Board of Directors, thereby enabling the disbursement of approximately USD 800 million. Additionally, it was reported that all performance criteria for the first quarter had been met with margins, resulting in a better outcome than initially expected. Revisions for the second and third quarters are still pending.
The context of volatility and uncertainty continues at the date of issuance of these Consolidated Condensed Interim Financial Statements.
The Group's Directors permanently monitor the evolution of the variables that affect their business, to define their course of action and identify the potential impacts on their financial position. These consolidated financial statements must be read in the light of these circumstances.
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| NOTE 38. SUBSEQUENT EVENTS |
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| GRUPO FINANCIERO GALICIA S.A. |
| NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS |
Events occurring after the closing date and prior to the issuance of these financial statements are detailed below:
Irrevocable Contributions
| | | | | | | | | | | | | | | | | |
| Contributing company | Recipient company | Date | Currency of contribution | Amount in currency of contribution | Amount in Ps. |
| Grupo Financiero Galicia S.A. | Galicia Holdings US Inc | 10.04.24 | USD | 1,500,000 | 1,461,750 |
| Grupo Financiero Galicia S.A. | Galicia Investments LLC | 10.04.24 | USD | 1,000 | 975 |
| Grupo Financiero Galicia S.A. | Galicia Ventures LP | 10.04.24 | USD | 99,000 | 96,476 |
| | | | | |
| | | | | |
Issuance of Negotiable Obligations
| | | | | | | | | | | | | | | | | | | | | | | |
| Company | Placement date | Class No. | Currency | NV | Term | Maturity Date | Rate |
| Banco Galicia | 10.10.24 | XVI | USD | 325,000,000 | 4 years | 10.10.28 | 7.75 | % |
| Banco Galicia | 11.01.24 | XVII | USD | 83,477,768 | 6 months | 04.30.25 | 2.00 | % |
| Tarjeta Naranja | 11.21.24 | LXIII | USD | 179,163,334 | 367 days | 11.28.25 | 6.25 | % |
On 10.17.24, the Argentine Central Bank authorized Banco Galicia to access the foreign exchange market to facilitate the repatriation of direct and indirect investments by HSBC Latin America BV in HSBC Bank Argentina S.A., as part of the sale agreement approved by the BCRA Board (See Note 9), provided that the access is executed for up to the equivalent of the funds raised abroad through the issuance of Class XVI negotiable obligations.
Dividends
On 10.16.24, the Ordinary Shareholders' Meeting of Tarjeta Naranja S.A. approved the payment of dividends for Ps. 36,000,000.
| | |
| GRUPO FINANCIERO GALICIA S.A. |
| NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS |
FOR THE PERIOD COMMENCED JANUARY 1, 2024 AND ENDED SEPTEMBER 30, 2024, IN COMPARATIVE FORMAT.
Figures Stated in Thousand of Argentine Pesos (Ps.), Except as Otherwise Stated
| | | | | | | | | | | |
| Item | Holding |
| Fair Value Level | Book Balance as of |
| 09.30.24 | 12.31.23 |
| DEBT SECURITIES AT FAIR VALUE THROUGH PROFIT OR LOSS | | 1,095,889,678 | | 1,207,056,327 | |
| Local | | 1,066,918,935 | | 1,174,972,450 | |
| Government Securities | | 611,989,054 | | 1,122,629,430 | |
| Argentine Government Bonds | Level 1 | 157,763,605 | | 1,103,349,106 | |
| Argentine Government Bonds | Level 2 | 146 | | 129 | |
| | | |
| Provincial Government Bonds | Level 1 | 10,252,606 | | 191,552 | |
| Provincial Government Bonds | Level 2 | 4,335,746 | | 1,879,345 | |
| Provincial Government Bonds | Level 3 | 16,327,615 | | — | |
| City of Buenos Aires Bonds | Level 1 | 2,095,747 | | 4,618,250 | |
| | | |
| | | |
| Treasury Bills | Level 1 | 421,213,589 | | 12,591,048 | |
| | | |
| | | |
| Argentine Central Bank Bills and Notes | | 431,217,696 | | — | |
| Argentine Central Bank Bills | Level 1 | 92,170,172 | | — | |
| Argentine Central Bank Bills | Level 2 | 333,331,534 | | — | |
| | | |
| Argentine Central Bank Notes | Level 1 | 5,715,990 | | — | |
| | | |
| | | |
| Corporate Securities | | 23,712,185 | | 52,343,020 | |
| Debt securities | Level 1 | 21,319,327 | | 50,881,503 | |
| Debt securities | Level 2 | 337,832 | | 597,075 | |
| Debt securities | Level 3 | 1,974,385 | | 500,278 | |
| Debt Securities from Financial Trusts | Level 1 | 80,641 | | — | |
| Debt Securities from Financial Trusts | Level 2 | — | | 364,164 | |
| | | |
| From Abroad | | 28,970,743 | | 32,083,877 | |
| Government Securities | | 28,970,743 | | 32,083,877 | |
| Foreign Treasury Bills | Level 1 | 28,970,743 | | 32,083,877 | |
| | |
| GRUPO FINANCIERO GALICIA S.A. |
| SCHEDULE A – BREAKDOWN OF GOVERNMENT AND PRIVATE SECURITIES |
| | | | | | | | | | | |
| Item | Holding |
| Fair Value Level | Book Balance as of |
| 09.30.24 | 12.31.23 |
| OTHER DEBT SECURITIES | | 3,264,136,319 | | 3,883,122,914 | |
| Measurement at Fair Value through OCI | | 656,027,979 | | 42,993,826 | |
| Local | | 656,027,979 | | 42,993,826 | |
| Government Securities | | 656,027,979 | | 21,451,443 | |
| Argentine Government Bonds | Level 1 | 6,718,073 | | 20,627,536 | |
| Provincial Government Bonds | Level 1 | 485,448 | | — | |
| Treasury Bills | Level 1 | 648,824,458 | | 245,360 | |
| Treasury Bills | Level 2 | — | | 578,547 | |
| Argentine Central Bank Bills and Notes | | — | | 21,542,383 | |
| Liquidity Bills | Level 2 | — | | 21,542,383 | |
| Argentine Central Bank Notes | Level 2 | — | | — | |
| Measurement at Amortized Cost | | 2,608,108,340 | | 3,840,129,088 | |
| Local | | 2,608,108,340 | | 3,840,129,088 | |
| Government Securities | | 2,561,712,216 | | 3,183,329,271 | |
| Argentine Government Bonds | | 2,479,443,299 | | 2,477,361,416 | |
| Treasury Bills | | 84,916,794 | | 715,136,212 | |
| Allowance for Uncollectible Accounts Risk | | (2,647,877) | | (9,168,357) | |
| Argentine Central Bank Bills | | 32,975,588 | | 637,640,155 | |
| Internal Bills | | 32,975,588 | | 637,640,155 | |
| Corporate Securities | | 13,420,536 | | 19,159,662 | |
| Debt securities | | 13,368,756 | | 18,591,177 | |
| Debt Securities from Financial Trusts | | — | | 410,181 | |
| Others | | 51,780 | | 158,304 | |
| Allowance for Uncollectible Accounts Risk | | — | | — | |
| INVESTMENTS IN EQUITY INSTRUMENTS | | 22,918,406 | | 19,427,399 | |
| Measured at Fair Value through Profit or Loss | | 22,918,406 | | 19,427,399 | |
| Local | | 17,539,524 | | 16,130,007 | |
| Shares | Level 1 | 4,356,564 | | 3,918,790 | |
| Shares | Level 2 | — | | — | |
| Shares | Level 3 | 13,182,960 | | 12,211,217 | |
| From Abroad | | 5,378,882 | | 3,297,392 | |
| Shares | Level 1 | 1,807,123 | | 1,543,509 | |
| Shares | Level 2 | — | | — | |
| Shares | Level 3 | 3,571,759 | | 1,753,883 | |
| | |
| GRUPO FINANCIERO GALICIA S.A. |
| SCHEDULE B – CLASSIFICATION OF LOANS AND OTHER FINANCING BY STATUS AND GUARANTEES RECEIVED |
FOR THE PERIOD COMMENCED JANUARY 1, 2024 AND ENDED SEPTEMBER 30, 2024, IN COMPARATIVE FORMAT.
Figures Stated in Thousand of Argentine Pesos (Ps.), Except as Otherwise Stated
| | | | | | | | |
| Item | 09.30.24 | 12.31.23 |
| COMMERCIAL PORTFOLIO | | |
| In Normal Situation | 2,422,887,866 | 1,935,645,065 |
| With Preferred Guarantees and Counter-guarantees “A” | 80,514,029 | 57,242,384 |
| With Preferred Guarantees and Counter-guarantees “B” | 67,329,590 | 73,275,700 |
| Without Preferred Guarantees or Counter-guarantees | 2,275,044,247 | 1,805,126,981 |
| With Special Follow-up - Under observation | 1,700,894 | 4,501,365 |
| With Preferred Guarantees and Counter-guarantees “A” | — | — |
| With Preferred Guarantees and Counter-guarantees “B” | — | 1,554,056 |
| Without Preferred Guarantees or Counter-guarantees | 1,700,894 | 2,947,309 |
| With Problems | — | — |
| With Preferred Guarantees and Counter-guarantees “A” | — | — |
| With Preferred Guarantees and Counter-guarantees “B” | — | — |
| Without Preferred Guarantees or Counter-guarantees | — | — |
| With High Insolvency Risk | — | 933,296 |
| With Preferred Guarantees and Counter-guarantees “A” | — | — |
| With Preferred Guarantees and Counter-guarantees “B” | — | — |
| Without Preferred Guarantees or Counter-guarantees | — | 933,296 |
| Irrecoverable | — | 1,796,866 |
| With Preferred Guarantees and Counter-guarantees “A” | — | — |
| With Preferred Guarantees and Counter-guarantees “B” | — | — |
| Without Preferred Guarantees or Counter-guarantees | — | 1,796,866 |
| TOTAL COMMERCIAL PORTFOLIO | 2,424,588,760 | 1,942,876,592 |
| | |
| GRUPO FINANCIERO GALICIA S.A. |
| SCHEDULE B – CLASSIFICATION OF LOANS AND OTHER FINANCING BY STATUS AND GUARANTEES RECEIVED |
| | | | | | | | |
| Item | 09.30.24 | 12.31.23 |
| HOUSING AND CONSUMPTION PORTFOLIO | | |
| Normal situation | 7,264,943,899 | 5,298,598,330 |
| With Preferred Guarantees and Counter-guarantees “A” | 169,090,514 | 74,096,971 |
| With Preferred Guarantees and Counter-guarantees “B” | 430,112,157 | 288,818,757 |
| Without Preferred Guarantees or Counter-guarantees | 6,665,741,228 | 4,935,682,602 |
| Low Risk | 141,932,646 | 87,266,881 |
| With Preferred Guarantees and Counter-guarantees “A” | 42,923 | 600,901 |
| With Preferred Guarantees and Counter-guarantees “B” | 1,051,217 | 2,229,241 |
| Without Preferred Guarantees or Counter-guarantees | 140,838,506 | 84,436,739 |
| Medium Risk | 125,566,337 | 64,112,871 |
| With Preferred Guarantees and Counter-guarantees “A” | 168,369 | 91,377 |
| With Preferred Guarantees and Counter-guarantees “B” | 2,165,374 | 2,180,630 |
| Without Preferred Guarantees or Counter-guarantees | 123,232,594 | 61,840,864 |
| High Risk | 128,586,983 | 80,781,063 |
| With Preferred Guarantees and Counter-guarantees “A” | 337,390 | 306,216 |
| With Preferred Guarantees and Counter-guarantees “B” | 1,739,138 | 1,794,439 |
| Without Preferred Guarantees or Counter-guarantees | 126,510,455 | 78,680,408 |
| Irrecoverable | 12,193,654 | 32,753,416 |
| With Preferred Guarantees and Counter-guarantees “A” | 109,762 | 64,651 |
| With Preferred Guarantees and Counter-guarantees “B” | 503,371 | 1,592,935 |
| Without Preferred Guarantees or Counter-guarantees | 11,580,521 | 31,095,830 |
| TOTAL HOUSING AND CONSUMPTION PORTFOLIO | 7,673,223,519 | 5,563,512,561 |
GRAND TOTAL (1) | 10,097,812,279 | 7,506,389,153 |
| | | | | | | | |
| (1) Reconciliation between Schedule B and the Statement of Financial Position: | 09.30.24 | 12.31.23 |
| Loans and Other Financing | 8,727,696,976 | 6,209,644,675 |
| Other Debt Securities | 3,264,136,319 | 3,883,122,914 |
| Agreed Credits and Guarantees Granted accounted Off-Balance Sheet | 815,786,933 | 844,908,108 |
| plus Allowances | 436,802,255 | 268,459,417 |
| plus IFRS Adjustments not computable for the Statement of Debtor's Financial Position | 124,169,672 | 179,791,808 |
| minus Others not computable for the Statement of Debtors' Financial Position | (17,416,216) | (15,574,517) |
| minus Government Securities and Monetary Regulation Instruments | (3,253,363,660) | (3,863,963,252) |
| Total | 10,097,812,279 | 7,506,389,153 |
| | |
| GRUPO FINANCIERO GALICIA S.A. |
| SCHEDULE C – CONCENTRATION OF LOANS AND OTHER FINANCING |
FOR THE PERIOD COMMENCED JANUARY 1, 2024 AND ENDED SEPTEMBER 30, 2024, IN COMPARATIVE FORMAT.
Figures Stated in Thousand of Argentine Pesos (Ps.), Except as Otherwise Stated
| | | | | | | | | | | | | | |
| Financing |
| 09.30.24 | 12.31.23 |
| Debt Balance | % on total portfolio | Debt Balance | % on total portfolio |
| 10 Largest Customers | 692,179,652 | 7 | % | 488,514,072 | 7 | % |
| Next 50 Largest Customers | 784,601,734 | 7 | % | 618,280,450 | 8 | % |
| Next 100 Largest Customers | 454,705,386 | 5 | % | 395,482,187 | 5 | % |
| Remaining Customers | 8,166,325,507 | 81 | % | 6,004,112,444 | 80 | % |
Total (1) | 10,097,812,279 | 100 | % | 7,506,389,153 | 100 | % |
| | | | | | | | |
| (1) Reconciliation between Schedule B and the Statement of Financial Position: | 09.30.24 | 12.31.23 |
| Loans and Other Financing | 8,727,696,976 | 6,209,644,675 |
| Other Debt Securities | 3,264,136,319 | 3,883,122,914 |
| Agreed Credits and Guarantees Granted accounted Off-Balance Sheet | 815,786,933 | 844,908,108 |
| plus Allowances | 436,802,255 | 268,459,417 |
| plus IFRS Adjustments not computable for the Statement of Debtor's Financial Position | 124,169,672 | 179,791,808 |
| minus Others not computable for the Statement of Debtors' Financial Position | (17,416,216) | (15,574,517) |
| minus Government Securities and Monetary Regulation Instruments | (3,253,363,660) | (3,863,963,252) |
| Total | 10,097,812,279 | 7,506,389,153 |
| | |
| GRUPO FINANCIERO GALICIA S.A. |
| SCHEDULE D – BREAKDOWN MATURITY TERM OF LOANS AND OTHER FINANCING |
FOR THE PERIOD COMMENCED JANUARY 1, 2024 AND ENDED SEPTEMBER 30, 2024, IN COMPARATIVE FORMAT.
Figures Stated in Thousand of Argentine Pesos (Ps.), Except as Otherwise Stated
The following chart shows the fall of future contractual flows, including interest and secondary items to accrue until expiration of the contracts, undiscounted.
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Terms until Maturity | |
| Item | Portfolio | 1 month | 3 months | 6 months | 12 months | 24 months | More than | Total |
| past du | | | | | | 24 months |
| Non-financial Public Sector | — | 4,773,566 | — | — | — | — | — | 4,773,566 |
| Financial Sector | — | 64,569,338 | 5,641,111 | 5,910,716 | 13,380,860 | 8,498,967 | 2,157,941 | 100,158,933 |
| Non-financial Private Sector and Residents Abroad | 273,499,073 | 5,282,827,315 | 2,301,493,840 | 1,875,283,765 | 2,389,944,336 | 2,132,363,407 | 2,137,417,408 | 16,392,829,144 |
| Total | 273,499,073 | 5,352,170,219 | 2,307,134,951 | 1,881,194,481 | 2,403,325,196 | 2,140,862,374 | 2,139,575,349 | 16,497,761,643 |
| | |
| GRUPO FINANCIERO GALICIA S.A. |
| SCHEDULE H – CONCENTRATION OF DEPOSITS |
FOR THE PERIOD COMMENCED JANUARY 1, 2024 AND ENDED SEPTEMBER 30, 2024, IN COMPARATIVE FORMAT.
Figures Stated in Thousand of Argentine Pesos (Ps.), Except as Otherwise Stated
| | | | | | | | | | | | | | |
| Deposits |
| 09.30.24 | 12.31.23 |
| Number of Customers | Placement Balance | % on total portfolio | Placement Balance | % on total portfolio |
| 10 Largest Customers | 3,021,324,380 | 22 | % | 2,648,279,151 | 23 | % |
| Next 50 Largest Customers | 1,307,922,908 | 10 | % | 1,238,231,942 | 11 | % |
| Next 100 Largest Customers | 445,064,168 | 3 | % | 531,029,581 | 5 | % |
| Remaining Customers | 8,928,903,849 | 65 | % | 7,088,255,869 | 61 | % |
| Total | 13,703,215,305 | 100 | % | 11,505,796,543 | 100 | % |
| | |
| GRUPO FINANCIERO GALICIA S.A. |
SCHEDULE I – BREAKDOWN OF FINANCIAL LIABILITIES BY REMAINING CONTRACTUAL TERM |
FOR THE PERIOD COMMENCED JANUARY 1, 2024 AND ENDED SEPTEMBER 30, 2024, IN COMPARATIVE FORMAT.
Figures Stated in Thousand of Argentine Pesos (Ps.), Except as Otherwise Stated
The following chart shows the fall of future contractual flows, including interest and secondary items to accrue until expiration of the contracts, undiscounted.
| | | | | | | | | | | | | | | | | | | | | | | |
| Terms until Maturity | |
| Item | 1 month | 3 months | 6 months | 12 months | 24 months | More than 24 months | Total |
Deposit accounts (1) | 13,461,642,953 | 195,025,536 | 52,439,234 | 16,192,650 | 1,153,681 | 1,378,791 | 13,727,832,845 |
| Non-Financial Public Sector | 565,082,601 | 26,903,974 | 141,367 | 26,036 | — | — | 592,153,978 |
| Financial Sector | 1,401,128 | — | — | — | — | — | 1,401,128 |
| Non-Financial Private Sector and Residents Abroad | 12,895,159,224 | 168,121,562 | 52,297,867 | 16,166,614 | 1,153,681 | 1,378,791 | 13,134,277,739 |
| Liabilities at Fair Value through Profit or Loss | 5,357,923 | — | — | — | — | — | 5,357,923 |
| Derivative Financial Instruments | 29,212,121 | — | — | — | — | — | 29,212,121 |
| Repurchase Transactions | 641,177,404 | — | — | — | — | — | 641,177,404 |
| Other Financial Institutions | 641,177,404 | — | — | — | — | — | 641,177,404 |
| Other Financial Liabilities | 2,117,963,318 | 394,963,592 | 79,737,954 | 7,246,808 | 12,405,238 | 19,085,006 | 2,631,401,916 |
| Financing from the Argentine Central Bank and Other Financial Institutions | 70,015,538 | 54,226,056 | 73,170,782 | 111,216,124 | 2,346,818 | 7,388,499 | 318,363,817 |
| Issued Debt Securities | 8,787,238 | 38,997,589 | 120,875,040 | 35,433,374 | 4,255,774 | — | 208,349,015 |
| Subordinated Debt Securities | 3,813,451 | — | 9,612,633 | 9,612,633 | 260,566,779 | — | 283,605,496 |
| Total | 16,337,969,946 | 683,212,773 | 335,835,643 | 179,701,589 | 280,728,290 | 27,852,296 | 17,845,300,537 |
| | | | | |
| (1) Maturities for the first month include: | |
| Checking Accounts | 1,093,815,125 |
| Savings Accounts | 9,046,060,677 |
| Time Deposits | 3,186,121,466 |
| Other Deposits | 135,645,685 |
| | |
| GRUPO FINANCIERO GALICIA S.A. |
| SCHEDULE D – BREAKDOWN MATURITY TERM OF LOANS AND OTHER FINANCING |
FOR THE PERIOD COMMENCED JANUARY 1, 2024 AND ENDED SEPTEMBER 30, 2024, IN COMPARATIVE FORMAT.
Figures Stated in Thousand of Argentine Pesos (Ps.), Except as Otherwise Stated
| | | | | | | | | | | | | | | | | | | | | | | |
| Item | Balances at the beginning of the fiscal year | Increases | Decreases | | | |
| Reversals of Allowances for Loan Losses | Charge offs | Effect Inflation | Balances as of 09.30.24 | Balances as of 12.31.23 |
| LIABILITIES | | | | | | | |
| Provisions for Termination Benefits | 8,091,078 | | 30,145,860 | | — | | (856,919) | | (7,318,396) | | 30,061,623 | | 8,091,078 | |
| Others | 33,007,129 | | 89,621,206 | | (1,303,603) | | (35,393,264) | | (33,934,546) | | 51,996,922 | | 33,007,129 | |
| TOTAL PROVISIONS | 41,098,207 | | 119,767,066 | | (1,303,603) | | (36,250,183) | | (41,252,942) | | 82,058,545 | | 41,098,207 | |
| | |
| GRUPO FINANCIERO GALICIA S.A. |
| SCHEDULE L – FOREIGN CURRENCY BALANCES |
FOR THE PERIOD COMMENCED JANUARY 1, 2024 AND ENDED SEPTEMBER 30, 2024, IN COMPARATIVE FORMAT.
Figures Stated in Thousand of Argentine Pesos (Ps.), Except as Otherwise Stated
| | | | | | | | | | | | | | | | | | | | | | | |
| Item | Headquarters and Branch Offices in the Country | | 30.09.24 | |
| 09.30.24 | US Dollar | Euro | Real | Others | 12.31.23 |
| ASSETS | | | | | | | |
| Cash and Due from Banks | 5,654,801,081 | 5,654,801,081 | 5,626,790,783 | 23,245,238 | 374,413 | 4,390,647 | 3,738,918,718 |
| Debt Securities at Fair Value through Profit or Loss | 124,060,003 | 124,060,003 | 124,060,003 | — | — | — | 910,889,181 |
| Other Financial Assets | 53,693,610 | 53,693,610 | 53,693,610 | — | — | — | 104,183,139 |
| Loans and Other Financing | 1,196,187,889 | 1,196,187,889 | 1,195,096,093 | 329,589 | — | 762,207 | 390,651,275 |
| Non-financial Public Sector | 34,856 | 34,856 | 34,856 | — | — | — | — |
| Other Financial Institutions | 5,379 | 5,379 | 5,379 | — | — | — | — |
| Non-financial Private Sector and Residents Abroad | 1,196,147,654 | 1,196,147,654 | 1,195,055,858 | 329,589 | — | 762,207 | 390,651,275 |
| Other Debt Securities | 319,087,730 | 319,087,730 | 319,087,730 | — | — | — | 703,947,281 |
| Financial Assets Pledged as Collateral | 15,531,639 | 15,531,639 | 15,531,639 | — | — | — | 113,659,887 |
| Investments in Equity Instruments | 5,378,882 | 5,378,882 | 3,985,458 | 1,393,424 | — | — | 3,297,828 |
| | | | | | | |
| Other Non-financial Assets | 3,714,065 | 3,714,065 | 3,714,065 | — | — | — | 8,169,229 |
| TOTAL ASSETS | 7,372,454,899 | 7,372,454,899 | 7,341,959,381 | 24,968,251 | 374,413 | 5,152,854 | 5,973,716,538 |
| LIABILITIES | | | | | | | |
| Deposits | 6,268,774,727 | 6,268,774,727 | 6,268,774,727 | — | — | — | 3,620,595,729 |
| Non-Financial Public Sector | 90,256,202 | 90,256,202 | 90,256,202 | — | — | — | 39,553,388 |
| Financial Sector | 173,335 | 173,335 | 173,335 | — | — | — | 454,900 |
| Non-Financial Private Sector and Residents Abroad | 6,178,345,190 | 6,178,345,190 | 6,178,345,190 | — | — | — | 3,580,587,441 |
| Liabilities at Fair Value through Profit or Loss | 1,606,435 | 1,606,435 | 1,606,435 | — | — | — | 54,281,293 |
| Other Financial Liabilities | 388,966,733 | 388,966,733 | 383,833,079 | 3,721,008 | — | 1,412,646 | 377,894,187 |
| Financing from the Argentine Central Bank and Other Financial Institutions | 39,816,663 | 39,816,663 | 38,234,559 | 1,582,104 | — | — | 75,076,945 |
| Issued Debt Securities | 12,624,664 | 12,624,664 | 12,624,664 | — | — | — | 43,644,001 |
| Subordinated Debt Securities | 245,154,965 | 245,154,965 | 245,154,965 | — | — | — | 414,476,406 |
| | | | | | | |
| Other Non-Financial Liabilities | 18,399,196 | 18,399,196 | 18,387,944 | 2,148 | — | 9,104 | 33,170,809 |
| TOTAL LIABILITIES | 6,975,343,383 | 6,975,343,383 | 6,968,616,373 | 5,305,260 | — | 1,421,750 | 4,619,139,370 |
| | |
| GRUPO FINANCIERO GALICIA S.A. |
| SCHEDULE O – DERIVATIVE FINANCIAL INSTRUMENTS |
FOR THE PERIOD COMMENCED JANUARY 1, 2024 AND ENDED SEPTEMBER 30, 2024, IN COMPARATIVE FORMAT.
Figures Stated in Thousand of Argentine Pesos (Ps.), Except as Otherwise Stated
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Type of Contract | Hedge Type | Purpose of the Operations Performed | Underlying Assets | Type of Settlement | Scope of Negotiation of Counterpart | Weighted Average Term Originally Agreed | Residual Weighted Average Term | Weighted Average Term to Settle Differences | Amount (*) |
| FORWARDS IN FOREIGN CURRENCY | | | | | | |
| OTC- Purchases | Not applicable | Brokerage - Own Account | Foreign Currency | Daily Difference | MAE | 3 | 1 | 2 | 7,337,020 |
| OCT - Sales | Not applicable | Brokerage - Own Account | Foreign Currency | Daily Difference | MAE | 2 | 1 | 1 | 6,004,000 |
| ROFEX - Purchases | Not applicable | Brokerage - Own Account | Foreign Currency | Daily Difference | ROFEX | 5 | 1 | 3 | 298,828,705 |
| ROFEX - Sales | Not applicable | Brokerage - Own Account | Foreign Currency | Daily Difference | ROFEX | 5 | 1 | 3 | 623,518,049 |
| FORWARDS - CUSTOMERS | | | | | | | |
| Purchases | Not applicable | Brokerage - Own Account | Foreign Currency | At Maturity of Differences | OTC – Residents in the Country - Non- Financial Sector | 6 | 193 | 4 | 282,284,414 |
| Sales | Not applicable | Brokerage - Own Account | Foreign Currency | At Maturity of Differences | OTC - Country residents - Non- financial sector | 2 | 65 | 2 | 77,704,135 |
| REPURCHASE TRANSACTIONS | | | | | | | |
| Forward Purchases | Not applicable | Brokerage - Own Account | Argentine Government Securities | With Delivery of Underlying Asset | MAE | — | — | — | 48,303,707 |
| Forward Sales | Not applicable | Brokerage - Own Account | Argentine Government Securities | With Delivery of Underlying Asset | MAE | — | — | — | 22,318,502 |
| | | | | | | |
| | | | | | | | | |
(*) Corresponds to notional values.
| | |
| GRUPO FINANCIERO GALICIA S.A. |
| SCHEDULE R – BREAKDOWN OF FINANCIAL LIABILITIES PER REMAINING TERMS |
FOR THE PERIOD COMMENCED JANUARY 1, 2024 AND ENDED SEPTEMBER 30, 2024, IN COMPARATIVE FORMAT.
Figures Stated in Thousand of Argentine Pesos (Ps.), Except as Otherwise Stated
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | ECL of remaining financial assets lifetime | | |
| Balances at the beginning of the fiscal year | ECL for the next 12 months | FI with significant increases of credit risk | FI with credit impairment | FI with credit impairment either bought or originated | Simplified approach | Monetary Income generated by allowances | Balance as of period closing |
| Other Financial Assets | 1,145,595 | 155,421 | — | 2,103 | — | — | (603,798) | 699,321 |
| Loans and Other Financing | 268,459,417 | 187,349,491 | 20,113,438 | 108,616,262 | — | — | (150,384,230) | 434,154,378 |
| Non-Financial Public Sector | 171,844 | 14,743,704 | — | — | — | — | (86,596) | 14,828,952 |
| Other Financial Institutions | 43,358 | 31,768 | — | 1,786 | — | — | (27,495) | 49,417 |
| Non-Financial Private Sector and Residents Abroad | 268,244,215 | 172,574,019 | 20,113,438 | 108,614,476 | — | — | (150,270,139) | 419,276,009 |
| Advances | 6,055,106 | 2,588,098 | (90,394) | 171,199 | — | — | (3,500,416) | 5,223,593 |
| Overdrafts | 4,865,319 | 1,490,540 | (64,866) | (744,306) | — | — | (2,566,398) | 2,980,289 |
| Mortgage | 9,344,834 | 1,450,284 | (2,308,693) | (348,782) | — | — | (4,505,917) | 3,631,726 |
| Pledges | 780,537 | 1,864,847 | (2,862) | 133,763 | — | — | (729,171) | 2,047,114 |
| Personal | 56,726,571 | 47,388,836 | 2,354,452 | 66,003,854 | — | — | (33,827,385) | 138,646,328 |
| Credit cards | 135,025,266 | 79,922,213 | 16,468,056 | 32,108,497 | — | — | (76,634,544) | 186,889,488 |
| Finance Leases | 269,812 | 185,643 | 3,115 | 76,724 | — | — | (180,639) | 354,655 |
| Others | 55,176,770 | 37,683,558 | 3,754,630 | 11,213,527 | — | — | (28,325,669) | 79,502,816 |
| Other Debt Securities | 9,168,357 | (1,900,349) | — | — | — | — | (4,620,131) | 2,647,877 |
| Financial Assets Pledged as Collateral | 14,512 | 50,156 | — | — | — | — | (7,313) | 57,355 |
| TOTAL ALLOWANCES | 278,787,881 | 185,654,719 | 20,113,438 | 108,618,365 | — | — | (155,615,472) | 437,558,931 |