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o | Registration Statement pursuant to Section 12(b) or (g) of the Securities Exchange Act of 1934 |
þ | Annual Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2006 |
o | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
o | Shell Company Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Tte. Gral. Juan D. Perón 456
C1038 AAJ-Buenos Aires, Argentina
(Address of principal executive offices)
Class B Ordinary Shares, Ps.1.00 par value, ten shares of which are represented by
American Depositary Shares
None
None
Class A Ordinary Shares, Ps.1.00 par value | 281,221,650 | |||
Class B Ordinary Shares, Ps.1.00 par value | 960,185,367 |
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- | Sudamericana Holding S.A., or Sudamericana, and its subsidiaries; | |
- | Galicia Warrants S.A.; | |
- | Net Investment S.A. and its subsidiaries; | |
- | Galval Agente de Valores S.A.; and | |
- | Banco de Galicia y Buenos Aires S.A., its wholly-owned subsidiary, Banco Galicia Uruguay S.A., which we refer to as “Galicia Uruguay”, and its subsidiaries and other subsidiaries and affiliated companies required to be consolidated under Argentine Banking GAAP, which we refer to collectively as the “Bank” or “Banco Galicia”. |
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• | changes in general economic, business, political, legal, social or other conditions in Argentina or elsewhere in Latin America; | ||
• | changes in capital markets in general that may affect policies or attitudes toward lending to Argentina or Argentine companies; | ||
• | our inability to obtain additional debt or equity financing on attractive conditions or at all, which may limit our ability to fund existing operations and to finance new activities; and | ||
• | the other factors discussed under Item 3. “Key Information—Risk Factors” in this annual report. |
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• | The following table presents summary historical financial and other information about us as of the dates and for the periods indicated. |
• | The financial statements for the fiscal years ended December 31, 2004, December 31, 2005 and December 31, 2006 do not include any effect for inflation accounting. The financial statements for the fiscal year ended December 31, 2003 include the effects of inflation accounting through February 28, 2003. The financial statements as of and for the fiscal year ended December 31, 2002, and the financial data for prior periods have been restated in constant pesos of February 28, 2003. |
• | The selected consolidated financial information as of December 31, 2006 and December 31, 2005, and for the fiscal years ended December 31, 2006, 2005 and 2004 has been derived from our audited consolidated financial statements included in this annual report. |
• | The selected consolidated financial information as of December 31, 2003 and 2002 has been derived from our audited consolidated financial statements not included in this annual report. |
• | We prepare our financial statements in accordance with Argentine Banking GAAP, which differs from Argentine GAAP and U.S. GAAP. Our audited consolidated financial statements contain a description of the principal differences between Argentine GAAP and Argentine Banking GAAP and a reconciliation to U.S. GAAP of our shareholders’ equity as of December 31, 2006 and December 31, 2005, and our net income for the three years ended December 31, 2006. See notes 38 and 39 to our audited consolidated financial statements included in this annual report. |
• | You should read this data in conjunction with Item 5. “Operating and Financial Review and Prospects” and our audited consolidated financial statements. |
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Fiscal Year Ended December 31, | ||||||||||||||||||||||||
2006 | 2006 | 2005 | 2004 | 2003 | 2002 | |||||||||||||||||||
(in millions | ||||||||||||||||||||||||
of February | ||||||||||||||||||||||||
(in millions | 28, 2003, | |||||||||||||||||||||||
of U.S. | constant | |||||||||||||||||||||||
dollars, | pesos, | |||||||||||||||||||||||
except as | except as | |||||||||||||||||||||||
noted)( 1 ) | (in millions of pesos, except as noted)(1) | noted)(1) | ||||||||||||||||||||||
Consolidated Income Statement in Accordance with Argentine Banking GAAP | ||||||||||||||||||||||||
Financial Income | 733.0 | 2,249.8 | 2,398.6 | 1,391.6 | 1,452.1 | 5,757.3 | ||||||||||||||||||
Financial Expenses | 609.7 | 1,871.6 | 1,845.9 | 1,167.4 | 1,304.8 | 4,560.4 | ||||||||||||||||||
Net Financial Income(2) | 123.3 | 378.2 | 552.7 | 224.2 | 147.3 | 1,196.9 | ||||||||||||||||||
Provision for Losses on Loans and Other Receivables | 36.1 | 110.9 | 76.7 | 190.2 | 286.4 | 1,648.6 | ||||||||||||||||||
Income / (Loss) before Taxes | 24.5 | 75.3 | 126.5 | (66.1 | ) | (221.6 | ) | (2,812.9 | ) | |||||||||||||||
Income Tax | (30.7 | ) | (94.2 | ) | (19.3 | ) | (43.8 | ) | (0.6 | ) | (66.4 | ) | ||||||||||||
Net Income / (Loss) before the Absorption | (6.2 | ) | (18.9 | ) | 107.2 | (109.9 | ) | (222.2 | ) | (2,879.3 | ) | |||||||||||||
Absorption Approved in the Annual Shareholders Meeting | — | — | — | — | — | 1,370.0 | ||||||||||||||||||
Net Income / (Loss) after the Absorption | (6.2 | ) | (18.9 | ) | 107.2 | (109.9 | ) | (222.2 | ) | (1,509.3 | ) | |||||||||||||
Net Income / (Loss) after the Absorption per Share (in Pesos)(*) | — | (0.015 | ) | 0.086 | (0.093 | ) | (0.203 | ) | (1.382 | ) | ||||||||||||||
Cash Dividends per Share (in Pesos) | — | — | — | — | — | — | ||||||||||||||||||
Book Value per Share (in Pesos) | — | 1.296 | 1.310 | 1.224 | 1.299 | 1.465 | ||||||||||||||||||
Stock Dividends per Share (in Pesos) | — | — | — | — | — | — | ||||||||||||||||||
Amounts in Accordance with U.S. GAAP | ||||||||||||||||||||||||
Net Income / (Loss) | 1,148.4 | 3,524.9 | 731.0 | (1.1 | ) | 731.3 | 422.5 | |||||||||||||||||
Adjusted Net Income (Loss) per Share (in Pesos) | — | 2.841 | 0.589 | (0.001 | ) | 0.669 | 0.386 | |||||||||||||||||
Book Value / (Deficit) per Share (in Pesos) | — | 0.117 | (1.714 | ) | (2.574 | ) | 4.077 | (4.964 | ) | |||||||||||||||
Financial Income | 1,771.1 | 5,436.3 | 2,958.7 | 1,448.7 | 2,752.0 | 2,613.1 | ||||||||||||||||||
Financial Expenses | 600.6 | 1,843.6 | 1,845.9 | 1,167.4 | 1,502.9 | 4,560.4 | ||||||||||||||||||
Net Financial Income / (Loss) | 1,170.5 | 3,592.7 | 1,112.8 | 281.3 | 1,249.1 | (1,947.3 | ) | |||||||||||||||||
Provision for Losses on Loans and Other Receivables | 52.2 | 160.3 | 113.5 | 210.0 | 274.6 | 928.8 | ||||||||||||||||||
Income Tax | (90.3 | ) | (277.1 | ) | 19.3 | 35.4 | (38.4 | ) | 66.5 | |||||||||||||||
Consolidated Balance Sheet in Accordance with Argentine Banking GAAP | ||||||||||||||||||||||||
Cash and Due from Banks | 747.6 | 2,294.8 | 1,041.2 | 988.7 | 826.2 | 576.8 | ||||||||||||||||||
Government Securities, Net | 1,038.7 | 3,188.3 | 5,967.4 | 5,518.0 | 6,407.1 | 1,786.5 | ||||||||||||||||||
Loans, Net | 3,425.5 | 10,514.6 | 10,555.2 | 8,438.2 | 7,506.5 | 10,682.1 | ||||||||||||||||||
Total Assets | 7,699.7 | 23,634.2 | 25,635.7 | 23,650.6 | 22,822.9 | 23,864.1 | ||||||||||||||||||
Deposits | 3,511.8 | 10,779.4 | 8,421.7 | 6,756.9 | 5,584.0 | 5,209.4 | ||||||||||||||||||
Other Funds(3) | 3,663.9 | 11,246.3 | 15,587.2 | 15,374.2 | 15,819.5 | 17,053.9 | ||||||||||||||||||
Total Shareholders’ Equity | 524.0 | 1,608.5 | 1,626.8 | 1,519.5 | 1,419.4 | 1,600.8 | ||||||||||||||||||
Average Total Assets(4) | 8,019.1 | 24,614.5 | 24,238.1 | 22,725.9 | 22,530.3 | 29,500.9 | ||||||||||||||||||
Percentage of Period-end Balance Sheet Items Denominated in Dollars: | ||||||||||||||||||||||||
Loans, Net of Allowances | 16.68 | 16.68 | 9.84 | 10.43 | 9.36 | 9.11 | ||||||||||||||||||
Total Assets | 28.91 | 28.91 | 26.55 | 32.92 | 36.39 | 43.20 | ||||||||||||||||||
Deposits | 14.13 | 14.13 | 15.55 | 20.89 | 29.67 | 40.08 | ||||||||||||||||||
Total Liabilities | 30.39 | 30.39 | 25.81 | 29.57 | 36.87 | 43.98 | ||||||||||||||||||
Amounts in Accordance with U.S. GAAP | ||||||||||||||||||||||||
Trading Securities | 67.8 | 208.2 | 790.0 | 564.7 | 328.8 | 35.5 | ||||||||||||||||||
Available-for-Sale Securities | 1,698.8 | 5,214.6 | 5,350.3 | 3,923.1 | 3,727.9 | 1,380.6 | ||||||||||||||||||
Total Assets | 7,859.8 | 24,125.8 | 19,949.3 | 17,007.3 | 14,835.2 | 14,821.9 | ||||||||||||||||||
Total Liabilities | 7812.3 | 23,980.0 | 22,077.6 | 20,203.0 | 19,288.5 | 20,244.2 | ||||||||||||||||||
Shareholders’ Equity (Deficit) | 47.5 | 145.8 | (2,128.3 | ) | (3,195.7 | ) | (4,453.3 | ) | (5,422.3 | ) | ||||||||||||||
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Fiscal Year Ended December 31, | ||||||||||||||||||||||||
2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||||||||
(in millions of | ||||||||||||||||||||||||
February 28, | ||||||||||||||||||||||||
2003, constant | ||||||||||||||||||||||||
pesos, except | ||||||||||||||||||||||||
(in millions of pesos, except as noted)(1) | as noted)(1) | |||||||||||||||||||||||
Selected Ratios | ||||||||||||||||||||||||
Ratios in Accordance with Argentine Banking GAAP | ||||||||||||||||||||||||
Profitability and Efficiency | ||||||||||||||||||||||||
Net Yield on Interest Earning Assets(5) | 1.21 | % | 2.38 | % | 1.02 | % | 0.89 | % | 3.66 | % | ||||||||||||||
Financial Margin(6) | 1.74 | 2.53 | 1.08 | 0.71 | 4.44 | |||||||||||||||||||
Return on Average Assets(7) | 0.0004 | 0.59 | (0.42 | ) | (0.95 | ) | (6.04 | ) | ||||||||||||||||
Return on Average Shareholders’ Equity(8) | (1.15 | ) | 6.83 | (7.32 | ) | (14.53 | ) | (62.06 | ) | |||||||||||||||
Net Income from Services as a Percentage of Operating Income(9) | 63.99 | 48.65 | 66.06 | 73.08 | 24.95 | |||||||||||||||||||
Efficiency ratio(10) | 92.80 | 72.56 | 94.46 | 113.91 | 61.58 | |||||||||||||||||||
Capital | ||||||||||||||||||||||||
Shareholders’ Equity as a Percentage of Total Assets | 6.81 | % | 6.35 | % | 6.42 | % | 6.22 | % | 6.71 | % | ||||||||||||||
Total Liabilities as a Multiple of Shareholders’ Equity | 13.69 | x | 14.76 | x | 14.56 | x | 15.08 | x | 13.91 | x | ||||||||||||||
Total Capital Ratio(11) | 15.03 | % | 20.78 | % | 25.11 | % | — | — | ||||||||||||||||
Liquidity | ||||||||||||||||||||||||
Cash and Due from Banks as a Percentage of Total Deposits | 21.29 | % | 12.36 | % | 14.63 | % | 14.80 | % | 11.07 | % | ||||||||||||||
Loans, Net as a Percentage of Total Assets | 44.49 | 41.17 | 35.68 | 32.89 | 44.76 | |||||||||||||||||||
Credit Quality | ||||||||||||||||||||||||
Past Due Loans(12) as a Percentage of Total Loans | 2.38 | % | 2.34 | % | 4.97 | % | 11.70 | % | 9.93 | % | ||||||||||||||
Non-Accrual Loans(13) as a Percentage of Total Loans | 2.59 | 3.50 | 7.74 | 15.04 | 13.08 | |||||||||||||||||||
Allowance for Loan Losses as a Percentage of Non-accrual Loans(13) | 117.16 | 111.90 | 90.51 | 90.61 | 104.45 | |||||||||||||||||||
Net Charge-Offs(14) as a Percentage of Average Loans | 1.42 | 1.49 | 3.77 | 1.98 | 1.89 | |||||||||||||||||||
Ratios in Accordance with U.S. GAAP | ||||||||||||||||||||||||
Capital | ||||||||||||||||||||||||
Shareholders’ Equity (deficit) as a Percentage of Total Assets | 0.60 | % | (10.67 | )% | (18.79 | )% | (30.02 | )% | (36.58 | )% | ||||||||||||||
Total Liabilities as a Multiple of Total Shareholders’ Equity | 164.46x | (10.37 | )x | (6.32 | )x | (4.33 | )x | (3.73 | )x | |||||||||||||||
Liquidity | ||||||||||||||||||||||||
Loans, Net as a Percentage of Total Assets | 40.05 | % | 50.15 | % | 43.91 | % | 43.32 | % | 55.03 | % | ||||||||||||||
Credit Quality | ||||||||||||||||||||||||
Allowance for Loan Losses as a Percentage of Non-Accrual Loans | 168.58 | % | 139.49 | % | 84.75 | % | 85.98 | % | 101.48 | % | ||||||||||||||
Inflation and Exchange Rate | ||||||||||||||||||||||||
Inflation (Deflation)(15) (16) | 7.01 | % | 10.69 | % | 7.84 | % | 2.03 | % | 118.44 | % | ||||||||||||||
Currency Devaluation Rate(16) (%) | 1.25 | 1.94 | 1.39 | (12.79 | ) | 236.30 | ||||||||||||||||||
CER(17) | 10.08 | 11.75 | 5.48 | 3.66 | 40.53 | |||||||||||||||||||
CVS(18) | — | — | 5.32 | 15.85 | 0.83 | |||||||||||||||||||
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(*) | Before the loss absorption mechanism established by Argentine Central Bank Communiqué “A” 3800, net loss per share for fiscal year 2002 was Ps.(2.636). | |
(1) | The exchange rate used to convert the December 31, 2006 amounts into U.S. dollars was Ps.3.0695 per US$ 1.00. All amounts are stated in millions of pesos, except inflation, percentages, ratios, multiples and per-share data. | |
(2) | Net financial income represents mainly income from interest on loans and other receivables resulting from financial brokerage plus net income from government and corporate debt securities, including gains and losses, less interest on deposits and other liabilities from financial intermediation and monetary loss from financial brokerage. It also includes the CER adjustment. | |
(3) | Includes mainly liabilities with the Argentine Central Bank, other banks and international entities. | |
(4) | The average balances of assets and liabilities, including the related interest receivable and payable are calculated on a daily basis for Banco Galicia and for Galicia Uruguay, as well as for Tarjetas Regionales S.A consolidated with its operating subsidiaries, and on a monthly basis for Grupo Financiero Galicia and our non-banking subsidiaries. | |
(5) | Net interest earned divided by interest-earning assets. For a description of net interest earned, see Item 4. “Information on the Company—Selected Statistical Information—Interest-Earning Assets—Net Yield on Interest-Earning Assets.” | |
(6) | Financial margin represents net financial income divided by average interest-earning assets. | |
(7) | Net income excluding minority interest (plus unrealized valuation difference for fiscal year 2002) as a percentage of average total assets. Before the loss absorption mechanism allowed by Argentine Central Bank Communiqué “A” 3800, this ratio was (10.68)% for fiscal year 2002. | |
(8) | Net income (plus unrealized valuation difference for fiscal year 2002) as a percentage of average shareholders’ equity. Before the loss absorption mechanism allowed by Argentine Central Bank Communiqué “A” 3800, this ratio was (118.40) % for fiscal year 2002. | |
(9) | Operating income is defined as net financial income plus net income from services (plus monetary loss from financial intermediation plus the unrealized valuation difference for fiscal year 2002). Excluding from the calculation the unrealized valuation difference (in accordance with Argentine Central Bank Communiqué “A” 3703), this ratio was 278.90% for fiscal year 2002. | |
(10) | Administrative expenses (net of the monetary gain (loss) from operating expenses for fiscal year 2002) as a percentage of operating income as defined above. Excluding from the calculation the unrealized valuation difference (in accordance with Argentine Central Bank Communiqué “A” 3703), this ratio was 688.34% for fiscal year 2002. | |
(11) | Compliance with the capital adequacy rules of the Argentine Central Bank was suspended during 2002 and 2003 (including December 31, 2002, and December 31, 2003). See Item 4.“Information on the Company—Selected Statistical Information—Regulatory Capital.” | |
(12) | Past-due loans consist of amounts of entire loan principal and interest receivable for those loans for which either the principal or any interest payment is 91 days or more past due. | |
(13) | Non-Accrual loans are defined as those loans falling into the following categories under the Argentine Central Bank’s classification system: (a) consumer: defective fulfillment, difficulty in recovery, uncollectible or uncollectible for technical reasons and (b) commercial: with problems, high risk of insolvency, uncollectible or uncollectible for technical reasons. | |
(14) | Charge-offs plus direct charge-offs minus bad debts recovered. | |
(15) | As measured by changes in the WPI in Argentina. | |
(16) | Source: INDEC. | |
(17) | The “CER” is the “Coeficiente de Estabilización de Referencia,” an adjustment coefficient based on changes in the consumer price index, which became effective February 3, 2002. See Item 4. “Information on the Company—Government Regulation—Main Regulatory Changes since 2002.” | |
(18) | The “CVS” is the “Coeficiente de Variación Salarial,” an adjustment coefficient based on the variation of salaries, which was effective between October 1, 2002 and March 31, 2004. See Item 4. “Information on the Company—Government Regulation—Main Regulatory Changes since 2002.” The percentage disclosed for FY 2004 corresponds to the variation between January 1, 2004 and March 31, 2004. |
Exchange Rate(1) | ||||||||||||||||
High | Low | Average(2) | Period-End | |||||||||||||
(in pesos per US dollar) | ||||||||||||||||
2001 | 1.0000 | 1.0000 | 1.0000 | (3) | 1.0000 | |||||||||||
2002 | 3.9000 | 1.0000 | 3.0724 | (3) | 3.3630 | |||||||||||
2003 | 3.3625 | 2.7485 | 2.9491 | (3) | 2.9330 | |||||||||||
2004 | 3.0718 | 2.8037 | 2.9415 | (3) | 2.9738 | |||||||||||
2005 | 3.0523 | 2.8592 | 2.9233 | (3) | 3.0315 | |||||||||||
2006 | 3.1072 | 3.0305 | 3.0740 | (3) | 3.0695 | |||||||||||
December 2006 | 3.0792 | 3.0492 | 3.0603 | 3.0695 |
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Exchange Rate(1) | ||||||||||||||||||||||||
High | Low | Average(2) | Period-End | |||||||||||||||||||||
(in pesos per US dollar) | ||||||||||||||||||||||||
January 2007 | 3.1068 | 3.0553 | 3.0850 | 3.1063 | ||||||||||||||||||||
February 2007 | 3.1058 | 3.0975 | 3.1026 | 3.1010 | ||||||||||||||||||||
March 2007 | 3.1060 | 3.0963 | 3.1010 | 3.1007 | ||||||||||||||||||||
April 2007 | 3.1008 | 3.0808 | 3.0891 | 3.0898 | ||||||||||||||||||||
May 2007 | 3.0852 | 3.0727 | 3.0800 | 3.0785 | ||||||||||||||||||||
(1) | Until June 2002, asked closing quotations as quoted by Banco Nación. Since July 2002, closing reference exchange rate as published by the Argentine Central Bank. | |
(2) | Daily average of closing quotations, unless otherwise noted. | |
(3) | Based on monthly averages. |
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• | Galicia Uruguay, incorporated in Uruguay and currently not an operating financial institution (See “History—Banco Galicia Uruguay S.A. and Galicia (Cayman) Ltd.”); | |
• | Galval Agente de Valores S.A. or “Galval”, incorporated in Uruguay; | |
• | Galicia Pension Fund Ltd. and Galicia (Cayman) Ltd. or “Galicia Cayman”, incorporated in the Cayman Islands (See “History—Banco Galicia Uruguay S.A. and Galicia (Cayman) Ltd.”); | |
• | Net Investment BV (in liquidation), incorporated in the Netherlands; and | |
• | Ancud Comercial S.A., incorporated in the Dominican Republic. |
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![(FLOW CHART)](https://capedge.com/proxy/20-F/0000950123-07-009377/y36513y3651301.gif)
(1) | Banelco S.A. 17.15%; Aguas Provinciales de Santa Fe S.A. 12.5%; Electrigal S.A. 12.5%; Galicia Inmobiliaria S.A. 12.5%; Correo Argentino S.A. 11.77%; Aguas Cordobesas S.A. 10.83%; Alfer S.A. (in liquidation) 9.80%; Interbanking S.A. 9.09%; Seguros de Depósitos S.A. (“Sedesa”) 8.71%; Aguas Argentinas S.A. 8.26%; Compensadora Electrónica S.A. 8.22%; A.E.C. S.A. 6.97%; Finanban S.A. 6.67%; Argencontrol S.A. 5.766%; Visa S.A. 5.0%; Garbin S.A. 4.10%; Mercado Abierto Electrónico S.A. 1.49%; Corporación Interamericana para el Financiamiento de Infraestructura S.A. 1.39%; Banco Latinoamericano de Exportaciones S.A. 0.10%; S.W.I.F.T. S. C. 0.02%. |
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• | cash (at a discount) (the “cash offer”); | ||
• | Boden 2012 Bonds (at a discount) (the “Boden offer”); | ||
• | new long-term debt instruments (at par); or | ||
• | new medium-term debt instruments (at par) and up to 149 million preferred shares of our preferred shares (or, instead of such shares, cash, if any, paid to us by existing shareholders electing to subscribe for our preferred shares in a preemptive rights offering) (the ��equity participation option”). |
• | We issued 149 million preferred shares on May 13, 2004, each of them mandatorily convertible into one of our class B shares a year later, which occurred on May 12, 2005. As a result of the exercises made by the existing shareholders in our preemptive rights offering, creditors opting for the equity participation offer received 87.8 million preferred shares and US$ 30 million in cash and we received US$ 100 million of subordinated bonds in exchange for the above-mentioned shares and cash. | ||
• | We entered into an agreement with the Bank’s bank creditors in which we agreed to maintain certain corporate governance standards and to provide them with certain financial information and reports on a quarterly and annual basis. |
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• | paid US$13.6 million to creditors participating in the cash offer; | ||
• | transferred US$ 36.9 million of nominal value of Boden 2012 Bonds to creditors participating in the Boden offer; and | ||
• | issued the following new debt instruments: |
– | US$ 648.5 million of long-term dollar-denominated debt instruments, of which US$ 464.8 million were dollar-denominated negotiable obligations due 2014 (referred to as the “Step Up Notes Due 2014” or the “2014 Notes”) issued under an indenture. | ||
– | US$ 399.8 million of medium-term dollar-denominated debt instruments, of which US$ 352.8 million were dollar-denominated negotiable obligations due 2010 (referred to as the “Floating Rate Notes Due 2010” or the “2010 Notes”) issued under an indenture. | ||
– | US$ 230.0 million of subordinated dollar-denominated debt instruments, of which US$ 218.2 million were dollar-denominated negotiable obligations due 2019 (referred to as the “Subordinated Notes Due 2019” or the “2019 Notes”) issued under an indenture. |
Principal amount of: | In US$ millions | |||
a) Old debt to be restructured as of December 31, 2003 | 1,349.6 | |||
b) Old debt to be restructured as of April 27, 2004(1) | 1,344.7 | (2) | ||
c) Old debt participating in the restructuring as of April 27, 2004(1) | 1,320.9 | |||
d) New debt, including past due interest capitalized(3) (4) | 1,399.6 | |||
e) New debt issued(4) (5) | 1,278.3 | |||
f) Old debt not restructured as of May 18, 2004(6) | 22.9 | (7) | ||
g) Old debt not restructured as of December 31, 2006 | 4.4 | |||
(1) | Expiration date of the exchange offer. | |
(2) | The decrease in the principal amount of debt to be restructured as compared to December 31, 2003, resulted from the fact that, in accordance with Argentine law, borrowers that were also holders of certain of the Bank’s debt instruments under restructuring used such holdings to repay past-due loans granted to them by the Bank. | |
(3) | Interest past due between May 1, 2002, and December 31, 2003, was capitalized at 4.75% per annum, except for trade debt for a principal amount of US$ 25.3 million for which interest was capitalized at Libor plus 1%. Interest past due until April 30, 2002, was paid in cash. | |
(4) | Excludes trade debt. | |
(5) | After having applied US$ 42.4 million not used in the cash offer to prepay long-term debt instruments included in (d). | |
(6) | Settlement date of the exchange offer. | |
(7) | Between the expiration date and the settlement date, the amount of debt not restructured decreased by US$ 0.9 million as a result of the repayment by borrowers that were also holders of debt subject to restructuring of past-due loans made to them by the Bank by using their holdings of such debt and, to a lesser extent, as a result of the renegotiation of debt not restructured under the terms of the restructuring. |
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• | the exchange of debt subject to restructuring for cash and Boden 2012 Bonds at a discount and the capitalization of interest at a rate lower than the contractual rate recorded in the Bank’s books, which generated in aggregate a US$ 48.9 million increase in shareholders’ equity; and | ||
• | the issuance of US$ 230.0 million of subordinated debt computable as supplemental capital in accordance with the Argentine Central Bank’s capital adequacy rules. |
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• | Ps.41.7 million in fixed assets; | ||
• | Ps.46.7 million in construction in progress; and | ||
• | Ps.48.1 million in organizational and IT system development expenses. |
• | Ps.30.5 million in fixed assets; | ||
• | Ps.38.1 million in construction in progress; and | ||
• | Ps.20.3 million in organizational and IT system development expenses. |
• | Ps.15.1 million in fixed assets; | ||
• | Ps.9.7 million in construction in progress; and | ||
• | Ps.17.6 million in organizational and IT system development expenses. |
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(in millions of pesos) | ||||
Construction of the new corporate tower (construction, furniture, equipment, phones, etc.) | Ps | .44.6 | ||
Fixed Assets | 62.2 | |||
Organizational and IT System Development | 79.2 | |||
Total | Ps | .186.0 | ||
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Geographical Area | Number of Branches | |||
City of Buenos Aires | 76 | |||
Greater Buenos Aires (GBA) | 59 | |||
Rest of the Province of Buenos Aires | 31 | |||
Santa Fe | 14 | |||
Córdoba | 13 | |||
Mendoza | 9 | |||
Entre Ríos | 4 | |||
Chubut | 3 | |||
Río Negro | 3 | |||
Corrientes | 2 | |||
La Pampa | 2 | |||
Misiones | 2 | |||
Tierra del Fuego | 2 | |||
Catamarca | 1 | |||
Chaco | 1 | |||
Formosa | 1 | |||
Jujuy | 1 | |||
La Rioja | 1 | |||
Neuquén | 1 | |||
Salta | 1 | |||
Santa Cruz | 1 | |||
Santiago del Estero | 1 | |||
San Juan | 1 | |||
San Luis | 1 | |||
Tucumán | 1 | |||
Total | 232 | |||
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Square | ||||||||||
Property | Address | Meters | Main Uses | |||||||
Grupo Financiero Galicia | ||||||||||
- Owned | -Tte. Gral. Juan D. Perón 456, 2nd floor, Buenos Aires, Argentina | 146 | Administrative activities | |||||||
-Maipú 241, Buenos Aires, Argentina (1) | 1,619 | Administrative activities | ||||||||
Galicia Retiro Compañía de Seguros S.A. | ||||||||||
- Owned | -Maipú 241, Buenos Aires, Argentina | 723 | Administrative activities | |||||||
Galicia Vida Compañía de Seguros S.A. | ||||||||||
- Owned | -Maipú 241, Buenos Aires, Argentina | 915 | Administrative activities | |||||||
Net Investment S.A. | ||||||||||
- Owned | -Tte. Gral. Juan D. Perón 456, 2nd floor, Buenos Aires, Argentina | 45 | Administrative activities |
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Square | ||||||||||
Property | Address | Meters | Main Uses | |||||||
- Rented | -25 de Mayo 702, 3rd floor, Buenos Aires, Argentina | 290 | Administrative activities | |||||||
Galicia Warrants S.A. | ||||||||||
- Owned | -Tte. Gral. Juan D. Perón 456, 6th floor, Buenos Aires, Argentina | 118 | Administrative activities | |||||||
-Ruta Nacional 18, Km. 209, San Salvador, Entre Ríos, Argentina | 47,917 | Storage | ||||||||
- Rented | -Alto Verde, Chicligasta, Tucumán, Argentina | 2,000 | Storage | |||||||
-Alsina 3450, San Miguel de Tucumán, Tucumán, Argentina | 12,800 | Storage | ||||||||
-Pasaje 1° de Mayo Esquina 25 de Mayo, Barrio el Corte Alderete, Tucumán, Argentina | 2,000 | Storage | ||||||||
-Ruta Prov. 316 km. 14, Obispo Colombres, Depto. Alta Cruz, Tucumán, Argentina | 3,000 | Storage | ||||||||
-San Martín 784, San Miguel de Tucumán, Tucumán, Argentina | 85 | Administrative activities | ||||||||
Banco de Galicia y Buenos Aires S.A. | ||||||||||
- Owned | -Tte. Gral. Juan D. Perón 407, Buenos Aires, Argentina | 17,270 | Administrative activities | |||||||
-Florida 361, Buenos Aires, Argentina | 7,340 | Administrative activities | ||||||||
- Rented | -Tte. Gral. Juan D. Perón 525, Buenos Aires, Argentina | 9,325 | Administrative activities | |||||||
-San Martín 178/200, Buenos Aires, Argentina | 3,630 | Administrative activities | ||||||||
Banco Galicia Uruguay S.A. | ||||||||||
- Owned | -Luis Alberto Herrera 1248, 21st and 22nd floors, Edificio World Trade Center, Montevideo, Uruguay | 880 | Administrative activities | |||||||
-Punta del Este, Uruguay | Former Branch | |||||||||
- Rented | -Montevideo, Uruguay | Storage | ||||||||
Tarjeta Naranja S.A. | ||||||||||
- Owned | -Sucre 152, 154 and 541, Córdoba, Argentina | 6,500 | Administrative activities | |||||||
-San Jerónimo 2348, 2350, Santa Fe, Argentina | 1,500 | Administrative activities | ||||||||
- Rented | -Sucre 145/151, La Rioja 364 and 375, and Los Andes 197, Córdoba, Argentina | 6,100 | Administrative activities, printing centre and storage | |||||||
Tarjetas Cuyanas S.A. | ||||||||||
- Rented | -Belgrano 1415, Mendoza, Argentina | 1,160 | Administrative activities | |||||||
-Olascoaga 348, San José, Mendoza, Argentina | 580 | Storage | ||||||||
Tarjetas del Mar S.A. | ||||||||||
- Rented | -Luro 3001, Mar del Plata, Buenos Aires, Argentina | 240 | Administrative Activities | |||||||
-Luro 2943, Mar del Plata, Buenos Aires, Argentina | 765 | Administrative Activities | ||||||||
(1) | We lease seven units to the Bank, equivalent to 1,373 square meters, for Ps.14,800 per month, and hold a 45 square meters unit vacant for storage. The remaining unit is occupied by Galicia Vida. |
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Fiscal Year Ended December 31, 2006 (*) | ||||||||||||||||||||||||||||||||||||
Pesos | Dollars | Total | ||||||||||||||||||||||||||||||||||
Interest | Average | Interest | Average | Interest | Average | |||||||||||||||||||||||||||||||
Average | Earned/ | Yield/ | Average | Earned/ | Yield/ | Average | Earned/ | Yield/ | ||||||||||||||||||||||||||||
Balance | Paid | Rate | Balance | Paid | Rate | Balance | Paid | Rate | ||||||||||||||||||||||||||||
(in millions of pesos, except rates) | ||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||
Government Securities | Ps. | 3,501.5 | Ps. | 252.5 | 7.21 | Ps. | 1,174.3 | Ps. | 60.0 | 5.11 | Ps. | 4,675.8 | Ps. | 312.5 | 6.68 | |||||||||||||||||||||
Loans | ||||||||||||||||||||||||||||||||||||
Private Sector | 5,148.2 | 754.0 | 14.65 | 1,333.3 | 75.1 | 5.63 | 6,481.5 | 829.1 | 12.79 | |||||||||||||||||||||||||||
Public Sector | 4,369.5 | 496.3 | 11.36 | — | — | — | 4,369.5 | 496.3 | 11.36 | |||||||||||||||||||||||||||
Total Loans | 9,517.7 | 1,250.3 | 13.14 | 1,333.3 | 75.1 | 5.63 | 10,851.0 | 1,325.4 | 12.21 | |||||||||||||||||||||||||||
Other(1) | 1,778.4 | 125.5 | 7.06 | 4,447.4 | 158.8 | 3.57 | 6,225.8 | 284.3 | 4.57 | |||||||||||||||||||||||||||
Total Interest-Earning Assets | 14,797.6 | 1,628.3 | 11.00 | % | 6,955.0 | 293.9 | 4.23 | % | 21,752.6 | 1,922.2 | 8.84 | % | ||||||||||||||||||||||||
Cash and Gold | 432.7 | — | — | 210.0 | — | — | 642.7 | — | — | |||||||||||||||||||||||||||
Equity in Other Companies | 561.1 | — | — | 44.2 | — | — | 605.3 | — | — | |||||||||||||||||||||||||||
Other Assets | 1,970.2 | — | — | 80.8 | — | — | 2,051.0 | — | — | |||||||||||||||||||||||||||
Allowances | (348.8 | ) | — | — | (88.3 | ) | — | — | (437.1 | ) | — | — | ||||||||||||||||||||||||
Total Assets | Ps. | 17,412.8 | — | — | Ps. | 7,201.7 | — | — | Ps. | 24,614.5 | — | — | ||||||||||||||||||||||||
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Fiscal Year Ended December 31, 2006 (*) | ||||||||||||||||||||||||||||||||||||
Pesos | Dollars | Total | ||||||||||||||||||||||||||||||||||
Interest | Average | Interest | Average | Interest | Average | |||||||||||||||||||||||||||||||
Average | Earned/ | Yield/ | Average | Earned/ | Yield/ | Average | Earned/ | Yield/ | ||||||||||||||||||||||||||||
Balance | Paid | Rate | Balance | Paid | Rate | Balance | Paid | Rate | ||||||||||||||||||||||||||||
(in millions of pesos, except rates) | ||||||||||||||||||||||||||||||||||||
Liabilities and Equity | ||||||||||||||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||||||||||||
Current Accounts | 536.8 | 21.0 | 3.91 | 122.0 | — | — | 658.8 | 21.0 | 3.19 | |||||||||||||||||||||||||||
Saving Accounts | 1,283.0 | 4.4 | 0.34 | 506.3 | — | — | 1,789.3 | 4.4 | 0.25 | |||||||||||||||||||||||||||
Time Deposits | 4,556.3 | 405.8 | 8.91 | 741.6 | 9.6 | 1.29 | 5,297.9 | 415.4 | 7.84 | |||||||||||||||||||||||||||
Total Interest-Bearing Deposits | 6,376.1 | 431.2 | 6.76 | 1,369.9 | 9.6 | 0.70 | 7,746.0 | 440.8 | 5.69 | |||||||||||||||||||||||||||
Argentine Central Bank | 6,083.0 | 769.5 | 12.65 | 0.1 | — | — | 6,083.1 | 769.5 | 12.65 | |||||||||||||||||||||||||||
Other Financial Entities | 265.9 | 35.1 | 13.20 | 172.9 | 11.3 | 6.54 | 438.8 | 46.4 | 10.57 | |||||||||||||||||||||||||||
Debt Securities | 170.7 | 24.4 | 14.29 | 3,261.7 | 270.5 | 8.29 | 3,432.4 | 294.9 | 8.59 | |||||||||||||||||||||||||||
Other | 108.8 | 12.2 | 11.21 | 1,084.9 | 96.2 | 8.87 | 1,193.7 | 108.4 | 9.08 | |||||||||||||||||||||||||||
Total Interest-Bearing Liabilities | 13,004.5 | 1,272.4 | 9.78 | 5,889.5 | 387.6 | 6.58 | 18,894.0 | 1,660.0 | 8.79 | |||||||||||||||||||||||||||
Demand deposits | 1,735.8 | — | — | 20.6 | — | — | 1,756.4 | — | — | |||||||||||||||||||||||||||
Other Liabilities | 1,651.9 | — | — | 518.8 | — | — | 2,170.7 | — | — | |||||||||||||||||||||||||||
Minority Interests | 144.1 | — | — | — | — | — | 144.1 | — | — | |||||||||||||||||||||||||||
Shareholders’ Equity | 1,649.3 | — | — | — | — | — | 1,649.3 | — | — | |||||||||||||||||||||||||||
Total Liabilities and Equity | Ps. | 18,185.6 | — | — | Ps. | 6,428.9 | — | — | Ps. | 24,614.5 | — | — | ||||||||||||||||||||||||
Spread and Net Yield | ||||||||||||||||||||||||||||||||||||
Interest Rate Spread | 1.22 | % | (2.35 | )% | 0.05 | % | ||||||||||||||||||||||||||||||
Cost of Funds Supporting Interest-Earning Assets | 8.60 | 5.57 | 7.63 | |||||||||||||||||||||||||||||||||
Net Yield on Interest-Earning Assets | 2.41 | (1.35 | ) | 1.21 | ||||||||||||||||||||||||||||||||
(*) | Rates include the CER adjustment. | |
(1) | Includes the amounts corresponding to the Hedge Bond to be received, among others. |
Fiscal Year Ended December 31, 2005 (*) | ||||||||||||||||||||||||||||||||||||
Pesos | Dollars | Total | ||||||||||||||||||||||||||||||||||
Interest | Average | Interest | Average | Interest | Average | |||||||||||||||||||||||||||||||
Average | Earned/ | Yield/ | Average | Earned/ | Yield/ | Average | Earned/ | Yield/ | ||||||||||||||||||||||||||||
Balance | Paid | Rate | Balance | Paid | Rate | Balance | Paid | Rate | ||||||||||||||||||||||||||||
(in millions of pesos, except rates) | ||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||
Government Securities | Ps. | 4,945.8 | Ps. | 660.9 | 13.36 | Ps. | 801.9 | Ps. | 16.4 | 2.05 | Ps. | 5,747.7 | Ps. | 677.3 | 11.78 | |||||||||||||||||||||
Loans | ||||||||||||||||||||||||||||||||||||
Private Sector | 3,917.2 | 610.3 | 15.58 | 989.9 | 39.6 | 4.00 | 4,907.1 | 649.9 | 13.24 | |||||||||||||||||||||||||||
Public Sector | 4,839.8 | 714.9 | 14.77 | — | — | — | 4,839.8 | 714.9 | 14.77 | |||||||||||||||||||||||||||
Total Loans | 8,757.0 | 1,325.2 | 15.13 | 989.9 | 39.6 | 4.00 | 9,746.9 | 1,364.8 | 14.00 | |||||||||||||||||||||||||||
Other(1) | 1,584.4 | 134.6 | 8.50 | 4,765.2 | 138.7 | 2.91 | 6,349.6 | 273.3 | 4.30 | |||||||||||||||||||||||||||
Total Interest-Earning Assets | 15,287.2 | 2,120.7 | 13.87 | % | 6,557.0 | 194.7 | 2.97 | % | 21,844.2 | 2,315.4 | 10.60 | % | ||||||||||||||||||||||||
Cash and Gold | 357.1 | — | — | 184.2 | — | — | 541.3 | — | — | |||||||||||||||||||||||||||
Equity in Other Companies | 446.7 | — | — | 43.5 | — | — | 490.2 | — | — | |||||||||||||||||||||||||||
Other Assets | 1,901.2 | — | — | 89.3 | — | — | 1,990.5 | — | — | |||||||||||||||||||||||||||
Allowances | (555.7 | ) | — | — | (72.4 | ) | — | — | (628.1 | ) | — | — | ||||||||||||||||||||||||
Total Assets | Ps. | 17,436.5 | — | — | Ps. | 6,801.6 | — | — | Ps. | 24,238.1 | — | — | ||||||||||||||||||||||||
Liabilities and Equity | ||||||||||||||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||||||||||||
Current Accounts | 536.8 | 15.3 | 2.85 | 78.2 | — | — | 615.0 | 15.3 | 2.49 | |||||||||||||||||||||||||||
Saving Accounts | 1,023.9 | 4.7 | 0.46 | 364.1 | — | — | 1,388.0 | 4.7 | 0.34 | |||||||||||||||||||||||||||
Time Deposits | 3,351.3 | 238.9 | 7.13 | 767.8 | 7.9 | 1.03 | 4,119.1 | 246.8 | 5.99 | |||||||||||||||||||||||||||
Total Interest-Bearing Deposits | 4,912.0 | 258.9 | 5.27 | 1,210.1 | 7.9 | 0.65 | 6,122.1 | 266.8 | 4.36 | |||||||||||||||||||||||||||
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Fiscal Year Ended December 31, 2005 (*) | ||||||||||||||||||||||||||||||||||||
Pesos | Dollars | Total | ||||||||||||||||||||||||||||||||||
Interest | Average | Interest | Average | Interest | Average | |||||||||||||||||||||||||||||||
Average | Earned/ | Yield/ | Average | Earned/ | Yield/ | Average | Earned/ | Yield/ | ||||||||||||||||||||||||||||
Balance | Paid | Rate | Balance | Paid | Rate | Balance | Paid | Rate | ||||||||||||||||||||||||||||
(in millions of pesos, except rates) | ||||||||||||||||||||||||||||||||||||
Argentine Central Bank | 8,341.3 | 1,177.2 | 14.11 | 0.3 | — | — | 8,341.6 | 1,177.2 | 14.11 | |||||||||||||||||||||||||||
Other Financial Entities | 206.6 | 36.8 | 17.81 | 152.0 | 9.8 | 6.45 | 358.6 | 46.6 | 12.99 | |||||||||||||||||||||||||||
Debt Securities | 101.3 | 9.7 | 9.58 | 3,427.3 | 224.4 | 6.55 | 3,528.6 | 234.1 | 6.63 | |||||||||||||||||||||||||||
Other | 41.2 | 6.4 | 15.53 | 1,045.7 | 65.0 | 6.22 | 1,086.9 | 71.4 | 6.57 | |||||||||||||||||||||||||||
Total Interest-Bearing Liabilities | 13,602.4 | 1,489.0 | 10.95 | 5,835.4 | 307.1 | 5.26 | 19,437.8 | 1,796.1 | 9.24 | |||||||||||||||||||||||||||
Demand deposits | 1,414.3 | — | — | 20.8 | — | — | 1,435.1 | — | — | |||||||||||||||||||||||||||
Other Liabilities | 1,358.0 | — | — | 310.0 | — | — | 1,668.0 | — | — | |||||||||||||||||||||||||||
Minority Interests | 127.9 | — | — | — | — | — | 127.9 | — | — | |||||||||||||||||||||||||||
Shareholders’ Equity | 1,569.3 | — | — | — | — | — | 1,569.3 | — | — | |||||||||||||||||||||||||||
Total Liabilities and Equity | Ps. | 18,071.9 | — | — | Ps. | 6,166.2 | — | — | Ps. | 24,238.1 | — | — | ||||||||||||||||||||||||
Spread and Net Yield | ||||||||||||||||||||||||||||||||||||
Interest Rate Spread | 2.92 | % | (2.29 | )% | 1.36 | % | ||||||||||||||||||||||||||||||
Cost of Funds Supporting Interest-Earning Assets | 9.74 | 4.68 | 8.22 | |||||||||||||||||||||||||||||||||
Net Yield on Interest-Earning Assets | 4.13 | (1.71 | ) | 2.38 | ||||||||||||||||||||||||||||||||
(*) | Rates include the CER adjustment. | |
(1) | Includes the amounts corresponding to the Compensatory Bond and the Hedge Bond to be received, among others. |
Fiscal Year Ended December 31, 2004 (*) | ||||||||||||||||||||||||||||||||||||
Pesos | Dollars | Total | ||||||||||||||||||||||||||||||||||
Interest | Average | Interest | Average | Interest | Average | |||||||||||||||||||||||||||||||
Average | Earned/ | Yield/ | Average | Earned/ | Yield/ | Average | Earned/ | Yield/ | ||||||||||||||||||||||||||||
Balance | Paid | Rate | Balance | Paid | Rate | Balance | Paid | Rate | ||||||||||||||||||||||||||||
(in millions of pesos, except rates) | ||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||
Government Securities | Ps. | 1,226.7 | Ps. | 78.5 | 6.40 | Ps. | 2,012.0 | Ps. | (87.8 | ) | (4.36 | ) | Ps. | 3,238.7 | Ps. | (9.3 | ) | (0.29 | ) | |||||||||||||||||
Loans | ||||||||||||||||||||||||||||||||||||
Private Sector | 3,213.9 | 490.9 | 15.27 | 907.3 | 44.1 | 4.86 | 4,121.2 | 535.0 | 12.98 | |||||||||||||||||||||||||||
Public Sector | 7,016.7 | 564.6 | 8.05 | — | — | — | 7,016.7 | 564.6 | 8.05 | |||||||||||||||||||||||||||
Total Loans | 10,230.6 | 1,055.5 | 10.32 | 907.3 | 44.1 | 4.86 | 11,137.9 | 1,099.6 | 9.87 | |||||||||||||||||||||||||||
Other(1) | 1,385.8 | 92.5 | 6.67 | 4,973.0 | 73.3 | 1.47 | 6,358.8 | 165.8 | 2.61 | |||||||||||||||||||||||||||
Total Interest-Earning Assets | 12,843.1 | 1,226.5 | 9.55 | % | 7,892.3 | 29.6 | 0.38 | % | 20,735.4 | 1,256.1 | 6.06 | % | ||||||||||||||||||||||||
Cash and Gold | 290.2 | — | — | 150.0 | — | — | 440.2 | — | — | |||||||||||||||||||||||||||
Equity in Other Companies | 339.2 | — | — | 88.5 | — | — | 427.7 | — | — | |||||||||||||||||||||||||||
Other Assets | 2,142.9 | — | — | 104.0 | — | — | 2,246.9 | — | — | |||||||||||||||||||||||||||
Allowances | (840.2 | ) | — | — | (284.1 | ) | — | — | (1,124.3 | ) | — | — | ||||||||||||||||||||||||
Total Assets | Ps. | 14,775.2 | — | — | Ps. | 7,950.7 | — | — | Ps. | 22,725.9 | — | — | ||||||||||||||||||||||||
Liabilities and Equity | ||||||||||||||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||||||||||||
Current Accounts | 364.5 | 4.8 | 1.32 | % | 69.5 | — | — | 434.0 | 4.8 | 1.11 | % | |||||||||||||||||||||||||
Saving Accounts | 767.1 | 4.2 | 0.55 | 267.4 | — | — | 1,034.5 | 4.2 | 0.41 | |||||||||||||||||||||||||||
Time Deposits | 2,228.9 | 116.3 | 5.22 | 1,088.6 | Ps. | 18.2 | 1.67 | % | 3,317.5 | 134.5 | 4.05 | |||||||||||||||||||||||||
Total Interest-Bearing Deposits | 3,360.5 | 125.3 | 3.73 | 1,425.5 | 18.2 | 1.28 | 4,786.0 | 143.5 | 3.00 | |||||||||||||||||||||||||||
Argentine Central Bank | 8,165.6 | 698.9 | 8.56 | — | — | — | 8,165.6 | 698.9 | 8.56 | |||||||||||||||||||||||||||
Other Financial Entities | 168.2 | 47.9 | 28.48 | 815.4 | 66.8 | 8.19 | 983.6 | 114.7 | 11.66 | |||||||||||||||||||||||||||
Debt Securities | 10.7 | — | — | 3,179.9 | 27.6 | 0.87 | 3,190.6 | 27.6 | 0.87 | |||||||||||||||||||||||||||
Other | 95.7 | 7.9 | 8.25 | 1,072.5 | 52.5 | 4.90 | 1,168.2 | 60.4 | 5.17 | |||||||||||||||||||||||||||
Total Interest-Bearing Liabilities | 11,800.7 | 880.0 | 7.46 | % | 6,493.3 | 165.1 | 2.54 | % | 18,294.0 | 1,045.1 | 5.71 | % | ||||||||||||||||||||||||
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Fiscal Year Ended December 31, 2004 (*) | ||||||||||||||||||||||||||||||||||||
Pesos | Dollars | Total | ||||||||||||||||||||||||||||||||||
Interest | Average | Interest | Average | Interest | Average | |||||||||||||||||||||||||||||||
Average | Earned/ | Yield/ | Average | Earned/ | Yield/ | Average | Earned/ | Yield/ | ||||||||||||||||||||||||||||
Balance | Paid | Rate | Balance | Paid | Rate | Balance | Paid | Rate | ||||||||||||||||||||||||||||
(in millions of pesos, except rates) | ||||||||||||||||||||||||||||||||||||
Demand deposits | 1,038.2 | — | — | 34.0 | — | — | 1,072.2 | — | — | |||||||||||||||||||||||||||
Other Liabilities | 1,197.4 | — | — | 558.2 | — | — | 1,755.6 | — | — | |||||||||||||||||||||||||||
Minority Interests | 103.2 | — | — | — | — | — | 103.2 | — | — | |||||||||||||||||||||||||||
Shareholders’ Equity | 1,500.9 | — | — | — | — | — | 1,500.9 | — | — | |||||||||||||||||||||||||||
Total Liabilities and Equity | Ps. | 15,640.4 | — | — | Ps. | 7,085.5 | — | — | Ps. | 22,725.9 | — | — | ||||||||||||||||||||||||
Spread and Net Yield | ||||||||||||||||||||||||||||||||||||
Interest Rate Spread | 2.09 | % | (2.16 | )% | 0.35 | % | ||||||||||||||||||||||||||||||
Cost of Funds Supporting Interest-Earning Assets | 6.85 | 2.09 | 5.04 | |||||||||||||||||||||||||||||||||
Net Yield on Interest-Earning Assets | 2.70 | (1.72 | ) | 1.02 | ||||||||||||||||||||||||||||||||
(*) | Rates include the CER adjustment. | |
(1) | Includes the amounts corresponding to the Compensatory Bond and the Hedge Bond to be received, among others. |
Fiscal Year 2006/ Fiscal Year 2005, | Fiscal Year 2005/ Fiscal Year 2004, | |||||||||||||||||||||||
Increase (Decrease) due to changes in | Increase (Decrease) due to changes in | |||||||||||||||||||||||
Volume | Rate | Net Change | Volume | Rate | Net Change | |||||||||||||||||||
(in millions of pesos) | ||||||||||||||||||||||||
Interest Earning Assets | ||||||||||||||||||||||||
Government Securities | ||||||||||||||||||||||||
Pesos | (158.5 | ) | (249.9 | ) | (408.4 | ) | 428.5 | 153.9 | 582.4 | |||||||||||||||
Dollars | 10.3 | 33.3 | 43.6 | 30.3 | 73.9 | 104.2 | ||||||||||||||||||
Total | (148.2 | ) | (216.6 | ) | (364.8 | ) | 458.8 | 227.8 | 686.6 | |||||||||||||||
Loans | ||||||||||||||||||||||||
Private Sector | ||||||||||||||||||||||||
Pesos | 177.6 | (33.9 | ) | 143.7 | 109.4 | 10.0 | 119.4 | |||||||||||||||||
Dollars | 16.3 | 19.2 | 35.5 | 4.8 | (9.3 | ) | (4.5 | ) | ||||||||||||||||
Total | 193.9 | (14.7 | ) | 179.2 | 114.2 | 0.7 | 114.9 | |||||||||||||||||
Public Sector | ||||||||||||||||||||||||
Pesos | (64.7 | ) | (153.9 | ) | (218.6 | ) | (88.7 | ) | 239.0 | 150.3 | ||||||||||||||
Dollars | — | — | — | — | — | — | ||||||||||||||||||
Total | (64.7 | ) | (153.9 | ) | (218.6 | ) | (88.7 | ) | 239.0 | 150.3 | ||||||||||||||
Other | ||||||||||||||||||||||||
Pesos | 23.7 | (32.8 | ) | (9.1 | ) | 14.5 | 27.6 | 42.1 | ||||||||||||||||
Dollars | (8.4 | ) | 28.5 | 20.1 | (2.9 | ) | 68.3 | 65.4 | ||||||||||||||||
Total | 15.3 | (4.3 | ) | 11.0 | 11.6 | 95.9 | 107.5 | |||||||||||||||||
Total Interest-Earning Assets | ||||||||||||||||||||||||
Pesos | (21.9 | ) | (470.5 | ) | (492.4 | ) | 463.7 | 430.5 | 894.2 | |||||||||||||||
Dollars | 18.2 | 81.0 | 99.2 | 32.2 | 132.9 | 165.1 | ||||||||||||||||||
Total | (3.7 | ) | (389.5 | ) | (393.2 | ) | 495.9 | 563.4 | 1,059.3 | |||||||||||||||
Interest Bearing Liabilities | ||||||||||||||||||||||||
Demand Account | ||||||||||||||||||||||||
Pesos | — | 5.7 | 5.7 | 3.1 | 7.4 | 10.5 | ||||||||||||||||||
Dollars | — | — | — | — | — | — | ||||||||||||||||||
Total | — | 5.7 | 5.7 | 3.1 | 7.4 | 10.5 | ||||||||||||||||||
Saving Account | ||||||||||||||||||||||||
Pesos | 1.0 | (1.3 | ) | (0.3 | ) | 1.0 | (0.5 | ) | 0.5 | |||||||||||||||
Dollars | — | — | — | — | — | — | ||||||||||||||||||
Total | 1.0 | (1.3 | ) | (0.3 | ) | 1.0 | (0.5 | ) | 0.5 | |||||||||||||||
Time Deposits | ||||||||||||||||||||||||
Pesos | 98.5 | 68.4 | 166.9 | 71.0 | 51.6 | 122.6 | ||||||||||||||||||
Dollars | (0.3 | ) | 2.0 | 1.7 | (4.5 | ) | (5.8 | ) | (10.3 | ) | ||||||||||||||
Total | 98.2 | 70.4 | 168.6 | 66.5 | 45.8 | 112.3 | ||||||||||||||||||
With the Argentine Central Bank | ||||||||||||||||||||||||
Pesos | (294.8 | ) | (112.9 | ) | (407.7 | ) | 15.3 | 463.0 | 478.3 |
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Fiscal Year 2006/ Fiscal Year 2005, | Fiscal Year 2005/ Fiscal Year 2004, | |||||||||||||||||||||||
Increase (Decrease) due to changes in | Increase (Decrease) due to changes in | |||||||||||||||||||||||
Volume | Rate | Net Change | Volume | Rate | Net Change | |||||||||||||||||||
(in millions of pesos) | ||||||||||||||||||||||||
Dollars | — | — | — | — | — | — | ||||||||||||||||||
Total | (294.8 | ) | (112.9 | ) | (407.7 | ) | 15.3 | 463.0 | 478.3 | |||||||||||||||
With Other Financial Entities | ||||||||||||||||||||||||
Pesos | 9.1 | (10.8 | ) | (1.7 | ) | 17.4 | (28.5 | ) | (11.1 | ) | ||||||||||||||
Dollars | 1.4 | 0.1 | 1.5 | (45.2 | ) | (11.8 | ) | (57.0 | ) | |||||||||||||||
Total | 10.5 | (10.7 | ) | (0.2 | ) | (27.8 | ) | (40.3 | ) | (68.1 | ) | |||||||||||||
Negotiable Obligations | ||||||||||||||||||||||||
Pesos | 8.5 | 6.2 | �� | 14.7 | 2.5 | 7.2 | 9.7 | |||||||||||||||||
Dollars | (10.2 | ) | 56.3 | 46.1 | 2.3 | 194.5 | 196.8 | |||||||||||||||||
Total | (1.7 | ) | 62.5 | 60.8 | 4.8 | 201.7 | 206.5 | |||||||||||||||||
Other liabilities | ||||||||||||||||||||||||
Pesos | 7.0 | (1.2 | ) | 5.8 | 2.5 | (4.0 | ) | (1.5 | ) | |||||||||||||||
Dollars | 2.5 | 28.7 | 31.2 | (1.3 | ) | 13.8 | 12.5 | |||||||||||||||||
Total | 9.5 | 27.5 | 37.0 | 1.2 | 9.8 | 11.0 | ||||||||||||||||||
Total Interest Bearing Liabilities | ||||||||||||||||||||||||
Pesos | (170.7 | ) | (45.9 | ) | (216.6 | ) | 112.8 | 496.2 | 609.0 | |||||||||||||||
Dollars | (6.6 | ) | 87.1 | 80.5 | (48.7 | ) | 190.7 | 142.0 | ||||||||||||||||
Total | (177.3 | ) | 41.2 | (136.1 | ) | 64.1 | 686.9 | 751.0 | ||||||||||||||||
Fiscal Year Ended December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
(in millions of pesos) | ||||||||||||
Total Average Interest-Earning Assets | ||||||||||||
Pesos | Ps. | 14,797.6 | Ps. | 15,287.2 | Ps. | 12,843.1 | ||||||
Dollars | 6,955.0 | 6,557.0 | 7,892.3 | |||||||||
Total | 21,752.6 | 21,844.2 | 20,735.4 | |||||||||
Net Interest Earned(1) | ||||||||||||
Pesos | 355.9 | 631.7 | 346.5 | |||||||||
Dollars | (93.7 | ) | (112.4 | ) | (135.5 | ) | ||||||
Total | 262.2 | 519.3 | 211.0 | |||||||||
Net Yield on Interest-Earning Assets(2)(%) | ||||||||||||
Pesos | 2.41 | 4.13 | 2.70 | |||||||||
Dollars | (1.35 | ) | (1.71 | ) | (1.72 | ) | ||||||
Weighted-Average Yield | 1.21 | 2.38 | 1.02 | |||||||||
Interest Spread, Nominal Basis(3)(%) | ||||||||||||
Pesos | 1.22 | 2.92 | 2.09 | |||||||||
Dollars | (2.35 | ) | (2.29 | ) | (2.16 | ) | ||||||
Weighted-Average Yield | 0.05 | 1.36 | 0.35 | |||||||||
Credit Related Fees Included in Net Interest Earned | ||||||||||||
Pesos | 26.4 | 26.4 | 20.7 | |||||||||
Dollars | — | — | — | |||||||||
Total | 26.4 | 26.4 | 20.7 | |||||||||
(1) | Net interest earned corresponds to our net financial income plus: | |
- Credit related fees (included in “Income from Services — In Relation to Lending Transactions” in the Income Statement) | ||
- Contributions to the deposit insurance system, and contributions and taxes on financial income included in the income statement line “Financial Expenses - Other,” minus: | ||
- Net income from corporate securities included under “Financial Income/Expenses- Interest Income and Holdings Gains/Losses from Government and Corporate Securities,” in the income statement, and | ||
- Differences in quotation of gold and foreign currency and premiums on foreign currency transactions, included in “Financial Income/Expenses – Other,” in the income statement. | ||
(2) | Net interest earned, divided by average interest-earning assets. | |
(3) | Interest spread, nominal basis is the difference between the average nominal interest rate on interest-earning assets and the average nominal interest rate on interest-bearing deposits. |
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As of December 31, | ||||||||
2006 | 2005 | |||||||
(in millions of pesos) | ||||||||
Government Securities | ||||||||
Pesos | ||||||||
Trading | Ps. | 0.1 | Ps. | 14.6 | ||||
Issued by the Argentine Central Bank | 119.5 | 704.5 | ||||||
Without Quotation | 433.5 | 4,591.1 | ||||||
Total Government Securities in Pesos | Ps. | 553.1 | Ps. | 5,310.2 | ||||
Dollars | ||||||||
Trading | 26.4 | 6.3 | ||||||
Investment | 2,608.8 | 650.9 | ||||||
Total Government Securities in Dollars | Ps. | 2,635.2 | Ps. | 657.2 | ||||
Total Government Securities | Ps. | 3,188.3 | Ps. | 5,967.4 | ||||
Total Government and Corporate Equity Securities. | Ps. | 3,188.3 | Ps. | 5,967.4 | ||||
Corporate Debt Securities | ||||||||
Pesos | — | 3.9 | ||||||
Dollars | 0.3 | 0.5 | ||||||
Total Corporate Debt Securities | Ps. | 0.3 | Ps. | 4.4 | ||||
Total Government and Corporate Securities | Ps. | 3,188.6 | Ps. | 5,971.8 | ||||
– | Bogar Bonds for Ps.196.7 million, granted as collateral for the advance from the Argentine Central Bank for the acquisition of the remaining Hedge Bond. As of December 31, 2006, these bonds were recorded at their technical value, which is the value accepted by the regulations of the Argentine Central Bank for assets granted as collateral for such advance. | ||
– | Bogar Bonds for Ps.169.8 million, recorded at present value as established by Communiqué “A” 3911 and complementary rules, | ||
– | Bogar Bonds for Ps.60.3 million, corresponding to an unsettled forward sale of such bonds recorded at market value; and | ||
– | Discount Bonds in Pesos and GDP-Linked Units for Ps.4.9 million. Through Communiqué “A” 4270, the Argentine Central Bank allowed these securities, resulting from the debt exchange offered to restructure the defaulted sovereign foreign debt, to be recorded at the lowest of (a) the carrying value of the tendered securities in accordance with the prevailing valuation rules (Communiqué “A” 4084 item 1 v) and item 5, and complementary rules); and (b) the total future nominal cash payments up to maturity specified by the terms and conditions of said securities. The Bank’s holdings of Discount Bonds in Pesos and GDP-Linked Units were recorded as per the first value. This valuation will be reduced in the amount of the perceived service payments and accrued interest will not be recognized. |
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As of December 31, 2006 | ||||||||||||||||||||||||
Spot | Spot | |||||||||||||||||||||||
Forward | Forward | purchases | sales | Net | ||||||||||||||||||||
In millions of pesos | Holdings | Purchases | Sales | to be settled | to be settled | Position | ||||||||||||||||||
Government Securities | ||||||||||||||||||||||||
Held for investment purposes | ||||||||||||||||||||||||
Dollar | 2,608.8 | 974.0 | — | — | — | 3,582.8 | ||||||||||||||||||
Other | — | — | — | — | — | 1.0 | (1) | |||||||||||||||||
Held for trading purposes | ||||||||||||||||||||||||
Pesos | 0.1 | — | — | 0.1 | — | 0.2 | ||||||||||||||||||
Dollar | 26.4 | — | — | 0.2 | 15.6 | 11.0 | ||||||||||||||||||
Securities without Quotation | ||||||||||||||||||||||||
Pesos | 433.5 | 714.1 | — | — | 60.3 | 1,087.3 | ||||||||||||||||||
Instruments issued by the Argentine Central Bank | ||||||||||||||||||||||||
Pesos | 119.5 | — | — | — | — | 119.5 | ||||||||||||||||||
Other | — | — | — | — | — | 30.8 | (1) | |||||||||||||||||
Total Government Securities | 3,188.3 | 1,688.1 | — | 0.3 | 75.9 | 4,832.6 | ||||||||||||||||||
Corporate Equity Securities (Quoted) | 0.3 | — | — | — | — | 0.3 | ||||||||||||||||||
Total Government and Corporate Securities | 3,188.6 | 1,688.1 | — | 0.3 | 75.9 | 4,832.9 | ||||||||||||||||||
(1) | Delivered as collateral. |
– | The total amount of Boden 2012 Bonds (net position in Boden 2012 Bonds including the Boden 2012 Bonds to be acquired), was Ps.3,984.2 million (face value US$ 1,638.2 million). This total comprises, holdings of Boden 2012 Bonds recorded as government securities held for investment purposes, for Ps.2,608.8 million (face value US$ 1,107.8 million), Boden 2012 Bonds held for investment purposes, but sold under repurchase agreements, for Ps.974.0 million (face value US$ 413.6 million), and Boden 2012 Bonds to be acquired corresponding to the Hedge Bond, for Ps.401.4 million (face value US$ 116.8 million), recorded under “Other Receivables Resulting from Financial Intermediation”. The market value of our position in Boden 2012 Bonds (face value US$ 1,638.2 million) was Ps.3,781.9 million. Of this amount, Ps.3,395.0 million corresponded to the received Compensatory Bond |
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(including interest accrued) and the difference corresponded to the Hedge Bond to be acquired, which amount includes the amortization and interest coupons accrued and not perceived. | |||
– | The market value of our position in Bogar Bonds was Ps.337.3 million. | ||
– | Our holdings of Lebac and Nobac were marked to market. | ||
– | The market value of our position in Discount Bonds in pesos (and GDP-Linked Units) was Ps.479.7 million. |
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January | February | March | April | May | June | July | August | Sept. | October | Nov. | Dec. | |||||||||||||||||||||||||||||||||||||
2003 | 3.00 | 3.00 | 3.00 | 3.00 | 3.00 | 3.00 | 3.00 | 3.00 | 3.00 | 3.00 | ||||||||||||||||||||||||||||||||||||||
2004 | 3.25 | 3.25 | 3.25 | 3.25 | 3.25 | 3.25 | 3.29 | 3.33 | 3.37 | 3.41 | 3.46 | 3.50 | ||||||||||||||||||||||||||||||||||||
2005 | 3.54 | 3.58 | 3.62 | 3.66 | 3.71 | 3.75 | 3.79 | 3.83 | 3.87 | 3.91 | 3.96 | 4.00 | ||||||||||||||||||||||||||||||||||||
2006 | 4.08 | 4.15 | 4.23 | 4.31 | 4.39 | 4.47 | 4.56 | 4.64 | 4.73 | 4.82 | 4.91 | 5.00 | ||||||||||||||||||||||||||||||||||||
2007 | 5% + 0.04xTMC | 5% + 0.08xTMC | 5% + 0.13xTMC | 5% + 0.17xTMC | 5% + 0.21xTMC | 5% + 0.25xTMC | 5% + 0.29xTMC | 5% + 0.33xTMC | 5% + 0.38xTMC | 5% + 0.42xTMC | 5% + 0.46xTMC | 5% + 0.50xTMC | ||||||||||||||||||||||||||||||||||||
2008 | 5% + 0.58xTMC | 5% + 0.66xTMC | 5% + 0.75xTMC | 5% + 0.83xTMC | 5% + 0.92xTMC | TM (as from June 2008) | ||||||||||||||||||||||||||||||||||||||||||
Where: | ||
TM = average market rate informed by the Argentine Central Bank based on the internal rates of return of government securities with similar ”modified duration.” | ||
TMC = average market rate corrected = TM – 5%. |
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Maturity Yield | ||||||||||||||||||||||||||||||||||||
Maturing after 1 | ||||||||||||||||||||||||||||||||||||
Maturing | Year but within 5 | Maturing after 5 Years | Maturing | |||||||||||||||||||||||||||||||||
within 1 Year | Years | but within 10 Years | after 10 Years | |||||||||||||||||||||||||||||||||
Total Book | Book | Book | Book | Book | ||||||||||||||||||||||||||||||||
Value | Value | Yield(1) | Value | Yield(1) | Value | Yield(1) | Value | Yield(1) | ||||||||||||||||||||||||||||
(in millions of pesos) | ||||||||||||||||||||||||||||||||||||
Government Securities | ||||||||||||||||||||||||||||||||||||
Held for Trading and Brokerage | ||||||||||||||||||||||||||||||||||||
Purposes (carried at market value) | ||||||||||||||||||||||||||||||||||||
Pesos | 0.1 | — | 3.4 | % | 0.1 | 5.9 | % | — | 7.4 | % | — | — | ||||||||||||||||||||||||
Dollars | 26.4 | 4.4 | 7.6 | % | 17.6 | 7.6 | % | 4.4 | 7.6 | % | — | — | ||||||||||||||||||||||||
Held for Investment (carried at amortized cost) | ||||||||||||||||||||||||||||||||||||
Dollars | 2,608.8 | 434.8 | 7.6 | % | 1,739.2 | 7.6 | % | 434.8 | 7.6 | % | — | — | ||||||||||||||||||||||||
Instrument Issued by Argentine Central Bank | ||||||||||||||||||||||||||||||||||||
Pesos | 119.5 | 92.8 | 12.1 | % | 26.7 | 12.3 | % | — | — | — | — | |||||||||||||||||||||||||
Securities Without Quotation | ||||||||||||||||||||||||||||||||||||
Pesos | 433.5 | 22.6 | 5.0 | % | 110.9 | 5.0 | % | 229.9 | 5.0 | % | 70.1 | 5.0 | % | |||||||||||||||||||||||
Total Government Securities | 3,188.3 | 554.6 | 8.2 | % | 1,894.5 | 7.5 | % | 669.1 | 6.7 | % | 70.1 | — | ||||||||||||||||||||||||
Corporate Debt Securities | 0.3 | — | — | — | — | — | — | 0.3 | 10.4 | % | ||||||||||||||||||||||||||
Total Portfolio | Ps. | 3,188.6 | Ps. | 554.6 | 8.2 | % | Ps. | 1,894.5 | 7.5 | % | Ps. | 669.1 | 6.7 | % | Ps. | 70.4 | 0.1 | % | ||||||||||||||||||
(1) | Effective yield based on December 31, 2006 quoted market values. |
As of December 31, | ||||||||||||||||||||
2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||||
(in millions of | ||||||||||||||||||||
February 28, | ||||||||||||||||||||
2003, constant | ||||||||||||||||||||
(in millions of pesos ) | pesos) | |||||||||||||||||||
Principal and Interest | ||||||||||||||||||||
Non-Financial Public Sector | Ps. | 2,690.6 | Ps. | 5,187.5 | Ps. | 4,513.7 | Ps. | 4,277.7 | Ps. | 7,634.7 | ||||||||||
Local Financial Sector | 311.6 | 128.2 | 150.5 | 194.7 | 134.8 | |||||||||||||||
Non-Financial Private Sector and Residents Abroad(1) | ||||||||||||||||||||
Advances | 346.3 | 223.6 | 199.8 | 219.1 | 227.0 | |||||||||||||||
Notes | 2,143.7 | 1,836.9 | 1,099.2 | 1,280.1 | 1,544.3 | |||||||||||||||
Mortgage Loans | 688.0 | 503.4 | 623.9 | 719.6 | 864.0 | |||||||||||||||
Pledge Loans | 67.1 | 121.1 | 92.9 | 54.6 | 191.5 | |||||||||||||||
Personal Loans | 563.2 | 258.0 | 58.2 | 55.2 | 120.0 | |||||||||||||||
Credit-Card Loans | 2,458.6 | 1,732.1 | 1,105.4 | 818.8 | 585.0 | |||||||||||||||
Placements in Correspondent Banks | 608.0 | 212.9 | 379.2 | 172.4 | 158.3 | |||||||||||||||
Other Loans | 794.8 | 599.8 | 393.9 | 325.7 | 251.4 | |||||||||||||||
Accrued Interest, Adjustment and Quotation Differences Receivable | 155.0 | 146.8 | 414.4 | 523.1 | 608.5 | |||||||||||||||
Documented Interest | (33.7 | ) | (14.7 | ) | (5.3 | ) | (2.5 | ) | (10.8 | ) | ||||||||||
Total Non-Financial Private-Sector and Residents Abroad | Ps. | 7,791.0 | Ps. | 5,619.9 | Ps. | 4,361.6 | Ps. | 4,166.1 | Ps. | 4,539.2 | ||||||||||
Total Gross Loans | Ps. | 10,793.2 | Ps. | 10,935.6 | Ps. | 9,025.8 | Ps. | 8,638.5 | Ps. | 12,308.7 | ||||||||||
Allowance for Loan Losses | (327.0 | ) | (427.9 | ) | (632.6 | ) | (1,177.3 | ) | (1,681.8 | ) | ||||||||||
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As of December 31, | ||||||||||||||||||||
2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||||
(in millions of | ||||||||||||||||||||
February 28, | ||||||||||||||||||||
2003, constant | ||||||||||||||||||||
(in millions of pesos ) | pesos) | |||||||||||||||||||
Total Loans | Ps. | 10,466.2 | Ps. | 10,507.7 | Ps. | 8,393.2 | Ps. | 7,461.2 | Ps. | 10,626.9 | ||||||||||
Loans with Guarantees | ||||||||||||||||||||
With Preferred Guarantees(2) (3) | Ps. | 1,076.2 | Ps. | 838.5 | Ps. | 1,190.0 | Ps. | 1,228.8 | Ps. | 9,280.5 | ||||||||||
Other Guarantees(3) | 4,103.6 | 6,317.3 | 5,235.8 | 5,163.0 | 523.0 | |||||||||||||||
Total Loans with Guarantees | Ps. | 5,179.8 | Ps. | 7,155.8 | Ps. | 6,425.8 | Ps. | 6,391.8 | Ps. | 9,803.5 | ||||||||||
(1) | Categories of above loans include: | |
- Advances: short-term obligations drawn on by customers through overdrafts. | ||
- Notes: endorsed promissory notes, negotiable obligations and other promises to pay signed by one borrower or group of borrowers and factored loans. | ||
- Mortgage loans: loans granted to purchase or improve real estate and collateralized by such real estate and commercial loans secured by a real estate mortgage. | ||
- Pledge loans: loans secured by collateral (such as cars or machinery) other than real estate, where such collateral is an integral part of the loan documents. | ||
- Personal loans: loans to individuals. | ||
- Credit Cards Loans: loans granted through credit cards to credit card holders. | ||
- Placements in correspondent banks: short-term loans to banks abroad. | ||
- Other loans: loans not included in other categories. | ||
- Documented interest-discount on notes and bills. | ||
(2) | Preferred guarantees include mortgages on real estate property or pledges on movable property, such as cars or machinery, where the Bank has the priority right, endorsements of the Federal Office of the Secretary of Finance, pledges of Government securities, or gold or cash collateral. | |
(3) | Pursuant to Argentine Central Bank Communiqué A 3918, beginning in April 2003, tax revenues shared by the Government and the provinces ceased to be considered Preferred Guarantees. |
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As of December 31, | ||||||||||||||||||||||||
2006 | 2005 | 2004 | ||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % of Total | |||||||||||||||||||
(in millions of pesos ) | ||||||||||||||||||||||||
Corporate | Ps. | 1,534.7 | 14.22 | % | Ps. | 1,412.9 | 12.92 | % | Ps. | 1,271.9 | 14.09 | % | ||||||||||||
Middle-Market Companies | 2,521.9 | 23.37 | 1,899.9 | 17.37 | 1,195.2 | 13.24 | ||||||||||||||||||
Commercial Loans | 4,056.6 | 37.59 | 3,312.8 | 30.29 | 2,467.1 | 27.33 | ||||||||||||||||||
Individuals | 3,120.6 | 28.91 | 2,091.6 | 19.13 | 1,512.6 | 16.76 | ||||||||||||||||||
Financial Sector(1) | 925.4 | 8.57 | 343.7 | 3.14 | 532.4 | 5.90 | ||||||||||||||||||
Non-Financial Public Sector | 2,690.6 | 24.93 | 5,187.5 | 47.44 | 4,513.7 | 50.01 | ||||||||||||||||||
Other Loans | — | — | — | — | — | — | ||||||||||||||||||
Total(2) | Ps. | 10,793.2 | 100.00 | % | Ps. | 10,935.6 | 100.00 | % | Ps. | 9,025.8 | 100.00 | % | ||||||||||||
(1) | Includes local and international financial sector. Financial Sector loans are primarily composed of interbank loans (call money loans), overnight deposit at international money center banks and loans to provincial banks. | |
(2) | Before the allowance for loan losses. |
As of December 31, | ||||||||||||||||||||||||
2006 | 2005 | 2004 | ||||||||||||||||||||||
% of | % of | % of | ||||||||||||||||||||||
Amount | Total | Amount | Total | Amount | Total | |||||||||||||||||||
(in millions of pesos, except percentages) | ||||||||||||||||||||||||
Financial Sector(1) | Ps. | 925.4 | 8.57 | % | Ps. | 343.7 | 3.14 | % | Ps. | 532.4 | 5.90 | % | ||||||||||||
Services | ||||||||||||||||||||||||
Non-Financial Public Sector | 2,690.6 | 24.93 | 5,187.5 | 47.44 | 4,513.7 | 50.01 | ||||||||||||||||||
Comunic., Transportation Health and Others | 517.2 | 4.79 | 409.7 | 3.75 | 339.0 | 3.76 | ||||||||||||||||||
Electricity, Gas, Water Supply and Sewage Services | 234.8 | 2.18 | 154.2 | 1.41 | 134.3 | 1.49 | ||||||||||||||||||
Other Financial Services | 35.7 | 0.33 | 83.5 | 0.76 | 46.9 | 0.52 | ||||||||||||||||||
Total | 3,478.3 | 32.23 | 5,834.9 | 53.36 | 5,033.9 | 55.78 | ||||||||||||||||||
Primary Products | ||||||||||||||||||||||||
Agriculture and Livestock | 971.8 | 9.00 | 768.3 | 7.02 | 518.6 | 5.75 | ||||||||||||||||||
Fishing, Forestry and Mining | 29.8 | 0.28 | 11.9 | 0.11 | 69.3 | 0.77 | ||||||||||||||||||
Total | 1001.6 | 9.28 | 780.2 | 7.13 | 587.9 | 6.52 | ||||||||||||||||||
Consumer | 2,977.6 | 27.59 | 1,959.4 | 17.92 | 1,435.4 | 15.90 | ||||||||||||||||||
Retail Trade | 524.1 | 4.86 | 435.8 | 3.99 | 287.7 | 3.19 | ||||||||||||||||||
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As of December 31, | ||||||||||||||||||||||||
2006 | 2005 | 2004 | ||||||||||||||||||||||
% of | % of | % of | ||||||||||||||||||||||
Amount | Total | Amount | Total | Amount | Total | |||||||||||||||||||
(in millions of pesos, except percentages) | ||||||||||||||||||||||||
Wholesale Trade | 333.7 | 3.09 | 189.0 | 1.73 | 97.5 | 1.08 | ||||||||||||||||||
Construction | 309.7 | 2.87 | 388.3 | 3.55 | 372.8 | 4.13 | ||||||||||||||||||
Manufacturing | ||||||||||||||||||||||||
Foodstuffs | 406.1 | 3.76 | 386.0 | 3.53 | 233.9 | 2.59 | ||||||||||||||||||
Transportation Materials | 100.2 | 0.93 | 68.3 | 0.62 | 41.2 | 0.46 | ||||||||||||||||||
Chemicals and Oil | 177.4 | 1.64 | 24.8 | 0.23 | 124.6 | 1.38 | ||||||||||||||||||
Manufacturing Industries | 545.7 | 5.06 | 492.0 | 4.50 | 229.7 | 2.54 | ||||||||||||||||||
Total | 1229.4 | 11.39 | 971.1 | 8.88 | 629.4 | 6.97 | ||||||||||||||||||
Other Loans | 13.4 | 0.12 | 33.2 | 0.30 | 48.8 | 0.53 | ||||||||||||||||||
Total(2) | Ps. | 10,793.2 | 100.00 | % | Ps. | 10,935.6 | 100.00 | % | Ps. | 9,025.8 | 100.00 | % | ||||||||||||
(1) | Includes local and international financial sectors. | |
(2) | Before the allowance for loan losses. |
After 1 | After 6 | After 3 | ||||||||||||||||||||||||||
Month but | Months but | After 1 Year | Years but | Total at | ||||||||||||||||||||||||
Within 1 | within 6 | within 12 | but within 3 | within 5 | After 5 | December | ||||||||||||||||||||||
Month | Months | Months | Years | Years | Years | 31, 2006 | ||||||||||||||||||||||
(in millions of pesos) | ||||||||||||||||||||||||||||
Non-Financial Public Sector(1) | 1.4 | 106.0 | 2.7 | 2,163.6 | 415.3 | 1.6 | 2,690.6 | |||||||||||||||||||||
Financial Sector(1) | 306.1 | 4.5 | 1.1 | — | — | — | 311.7 | |||||||||||||||||||||
Private Sector and Residents Abroad | 4,887.0 | 1,114.4 | 389.7 | 800.0 | 364.1 | 235.7 | 7,790.9 | |||||||||||||||||||||
- Advances | 246.2 | 97.2 | 2.6 | 0.4 | — | — | 346.4 | |||||||||||||||||||||
- Promissory Notes | 623.1 | 795.4 | 184.7 | 289.8 | 179.8 | 70.9 | 2,143.7 | |||||||||||||||||||||
- Mortgage Loans | 23.1 | 52.3 | 68.2 | 226.8 | 153.0 | 164.6 | 688.0 | |||||||||||||||||||||
- Pledge Loans | 3.6 | 10.0 | 12.1 | 35.9 | 5.5 | — | 67.1 | |||||||||||||||||||||
- Personal Loans | 34.3 | 147.1 | 120.0 | 238.9 | 22.9 | — | 563.2 | |||||||||||||||||||||
- Credit-Card Loans | 2,458.6 | — | — | — | — | — | 2,458.6 | |||||||||||||||||||||
- Other Loans | 1,377.4 | 12.4 | 2.1 | 8.2 | 2.9 | 0.2 | 1,403.2 | |||||||||||||||||||||
- Accrued Interest and Quotation Differences Receivable(1) | 155.0 | — | — | — | — | — | 155.0 | |||||||||||||||||||||
- (Documented Interest) | (33.7 | ) | — | — | — | — | — | (33.7 | ) | |||||||||||||||||||
- (Unallocated Colletions) | (0.6 | ) | — | — | — | — | — | (0.6 | ) | |||||||||||||||||||
Allowance for Loan Losses(2) | (327.0 | ) | (327.0 | ) | ||||||||||||||||||||||||
Total Loans, Net | Ps. | 4,867.5 | Ps. | 1,224.9 | Ps. | 393.5 | Ps. | 2,963.6 | Ps. | 779.4 | Ps. | 237.3 | Ps. | 10,466.2 | ||||||||||||||
(1) | Interest and the CER adjustment were assigned to the first month. | |
(2) | Allowances were assigned to the first month as well as past due loans and loans in judicial proceedings. |
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(in millions of pesos) | As a % of Total Loans | |||||||
Variable Rate(1)(2) | ||||||||
Pesos | Ps. | 5,625.7 | 59.66 | % | ||||
Dollars | 907.3 | 9.62 | ||||||
Total | Ps. | 6,533.0 | 69.28 | % | ||||
Fixed Rate(2)(3) | ||||||||
Pesos | Ps. | 1,966.7 | 20.86 | % | ||||
Dollars | 929.4 | 9.86 | ||||||
Total | Ps. | 2,896.1 | 30.72 | % | ||||
Past Due Loans | ||||||||
Pesos | Ps. | 428.5 | 4.54 | % | ||||
Dollars | 52.4 | 0.56 | ||||||
Total | Ps. | 480.9 | 5.10 | % | ||||
(1) | Includes overdraft loans. | |
(2) | Includes past due loans and excludes interest receivable, differences in quotations and the CER adjustment. | |
(3) | Includes short-term and long-term loans whose rates are determined at the beginning of the loans’ life. |
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Qualitative analysis | assessment of the quality of the corporate borrower performed by the line officer to which the account has been assigned on the basis of personal knowledge. | |
Economic and financial risk | quantitative analysis of the borrower’s financial statements. | |
Economic sector risk | measurement of the general risk of the sector in which the borrower operates (based on statistical information gathered from internal and external sources). |
- | Up to Ps.3.0 million: credit granting is proposed by the line business officers and must be approved by officers of the Corporate Credit Department in accordance with pre-established credit authority levels. | |
- | Over Ps.3.0 million and up to Ps.5.0 million: credit granting proposals are jointly approved by the manager of the Credit Division and the manager of the business department to which the account belongs. | |
- | Over Ps.5.0 million: credit granting operations must be approved by the Board of Directors Committee, with the participation of: (i) one or more directors; (ii) the manager of the Credit Division; and (iii) the manager of the Wholesale Banking Division. The participation of the managers of the business departments depends on which of these departments manages the account subject to approval. |
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- | the possibility to classify as normal, at the financial institutions’ option, those customers having reached a restructuring agreement, without repayment percentages being required, and having have enough cash flows to repay the new debt (this option was effective until June 2006). | |
- | the reduction in the requirements for loan amortization necessary to improve the customer’s classification. | |
- | the possibility to provide customers with new financial assistance and classify as normal customers classified in a non-accrual status in the financial system, thereby restricting this financing assistance to pre-established percentages according to the worst situation a customer registers in the financial system. |
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Loan Classification | Description | |||||
(a) | Commercial Portfolio | |||||
1. Normal | Borrower can easily service all financial obligations; shows strong cash flow, liquid current financial situation, adequate financial structure, punctual payment record, capable management, timely and precise available information and satisfactory internal controls. Borrower is determined to be in the top 50.0% of an industry that is performing well and has a good outlook. | |||||
2. With Special Follow-Up | Cash flow analysis indicates debt can be serviced, with the possibility that if not closely observed, future payment capacity could be impaired. | |||||
This category is divided into two subcategories: | ||||||
(2.a). Under observation; | ||||||
(2.b). Under negotiation or under agreements to refinance. | ||||||
3. With Problems | Cash flow analysis evidences problems in normal servicing of existing debt, such that if the problems are not solved, they may result in some loss. | |||||
4. High Risk of Insolvency | Cash flow analysis demonstrates that full repayment of the borrower’s obligations is highly improbable. | |||||
5. Uncollectible | Debts in this category are considered total losses. Although these assets could have a possibility of recovery under certain future circumstances, lack of collectibility is evident as of the date of analysis. Includes loans to insolvent or bankrupt borrowers. | |||||
6. Uncollectible due to Technical Reasons | Loans to borrowers indicated by the Argentine Central Bank to be in arrears to any liquidated or bankrupt financial entity. Also includes loans to foreign banks and other financial institutions which are not: | |||||
(i) | classified as “normal,” | |||||
(ii) | subject to the supervision of the Argentine Central Bank or other similar authority of the country of origin, and | |||||
(iii) | classified as “investment grade” by any of the rating agencies admitted to the Argentine Central Bank pursuant to Communiqué “A” 2729. | |||||
(b) | Consumer Portfolio | |||||
1. Normal Performance | Current Loans and Loans that are up to 31 days past due on principal and/or interest, including loans that are current. | |||||
2. Inadequate Performance | Debt payment is occasionally delinquent, with arrears from 32 to 90 days. | |||||
3. Deficient Performance | Debt is in arrears at least 91 days and up to 180 days. | |||||
4. Difficult Collection | Judicial proceedings demanding payment have been initiated against the borrower, or the borrower is delinquent |
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Loan Classification | Description | |||||
with arrears greater than 180 days and up to one year past due. | ||||||
5. Uncollectible | Loans to insolvent or bankrupt borrowers, or borrowers subject to judicial proceedings, with little or no possibility of collection, or in arrears in excess of one year. | |||||
6. Uncollectible due to Technical Reasons | Loans to borrowers who fall within the conditions described above under Commercial Portfolio—Uncollectible due to Technical Reasons. |
Minimum Allowances for Loan Losses | Secured | Unsecured | ||||||
Category | ||||||||
“Normal/ Normal Performance | 1.0 | % | 1.0 | % | ||||
“With Special Follow Up” and “Inadequate Performance” | ||||||||
“Inadequate Performance — Under Observation” | 3.0 | 5.0 | ||||||
“Inadequate Performance — Under Negotiation or Agreement to Refinance” | 6.0 | 12.0 | ||||||
“With Problems” and “Deficient Performance” | 12.0 | % | 25.0 | % | ||||
“High Risk of Insolvency” and “Difficult Collection” | 25.0 | 50.0 | ||||||
“Uncollectible” | 50.0 | 100.0 | ||||||
“Uncollectible Due to Technical Reasons” | 100.0 | 100.0 | ||||||
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As of December 31, 2006 | ||||||||||||||||||||||||
Amounts Not Yet | ||||||||||||||||||||||||
Due(1) | Amounts Past Due | Total Loans | ||||||||||||||||||||||
(in millions of pesos, except percentages) | ||||||||||||||||||||||||
Loan Portfolio Classification | ||||||||||||||||||||||||
Normal and Normal Performance | Ps. | 10,139.5 | 96.23 | % | — | — | Ps. | 10,139.5 | 93.94 | % | ||||||||||||||
With Special Follow-up and Inadequate Performance | 374.6 | 3.55 | — | — | 374.6 | 3.47 | ||||||||||||||||||
With Problems and Deficient Performance | 12.2 | 0.12 | 30.0 | 11.69 | 42.2 | 0.39 | ||||||||||||||||||
High Risk of Insolvency and Difficult Collection | 10.2 | 0.10 | 192.7 | 75.07 | 202.9 | 1.88 | ||||||||||||||||||
Uncollectible | — | — | 28.8 | 11.22 | 28.8 | 0.27 | ||||||||||||||||||
Uncollectible Due to Technical Reasons | — | — | 5.2 | 2.02 | 5.2 | 0.05 | ||||||||||||||||||
Total | Ps. | 10,536.5 | 100.00 | % | Ps. | 256.7 | 100.00 | % | Ps. | 10,793.2 | 100.00 | % | ||||||||||||
As of December 31, 2005 | ||||||||||||||||||||||||
Amounts Not Yet | ||||||||||||||||||||||||
Due(1) | Amounts Past Due | Total Loans | ||||||||||||||||||||||
(in millions of pesos, except percentages) | ||||||||||||||||||||||||
Loan Portfolio Classification | ||||||||||||||||||||||||
Normal and Normal Performance | Ps. | 10,168.8 | 95.22 | % | — | — | Ps. | 10,168.8 | 92.99 | % | ||||||||||||||
With Special Follow-up and Inadequate Performance | 384.4 | 3.60 | — | — | 384.4 | 3.51 | ||||||||||||||||||
With Problems and Deficient Performance | 120.4 | 1.13 | 206.9 | 80.82 | 327.3 | 2.99 | ||||||||||||||||||
High Risk of Insolvency and Difficult Collection | 6.0 | 0.05 | 23.0 | 8.98 | 29.0 | 0.27 | ||||||||||||||||||
Uncollectible | — | — | 22.8 | 8.91 | 22.8 | 0.21 | ||||||||||||||||||
Uncollectible Due to Technical Reasons | — | — | 3.3 | 1.29 | 3.3 | 0.03 | ||||||||||||||||||
Total | Ps. | 10,679.6 | 100.00 | % | Ps. | 256.0 | 100.00 | % | Ps. | 10,935.6 | 100.00 | % | ||||||||||||
As of December 31, 2004 | ||||||||||||||||||||||||
Amounts Not Yet | ||||||||||||||||||||||||
Due(1) | Amounts Past Due | Total Loans | ||||||||||||||||||||||
(in millions of pesos, except percentages) | ||||||||||||||||||||||||
Loan Portfolio Classification | ||||||||||||||||||||||||
Normal and Normal Performance | Ps. | 7,764.4 | 90.53 | % | — | — | Ps. | 7,764.4 | 86.02 | % | ||||||||||||||
With Special Follow-up and Inadequate Performance | 562.5 | 6.56 | — | — | 562.5 | 6.23 | ||||||||||||||||||
With Problems and Deficient Performance | 197.1 | 2.30 | Ps. | 251.7 | 56.06 | % | 448.8 | 4.97 | ||||||||||||||||
High Risk of Insolvency and Difficult Collection | 52.8 | 0.61 | 105.8 | 23.56 | 158.6 | 1.76 | ||||||||||||||||||
Uncollectible | — | — | 85.5 | 19.04 | 85.5 | 0.95 | ||||||||||||||||||
Uncollectible Due to Technical Reasons | — | — | 6.0 | 1.34 | 6.0 | 0.07 | ||||||||||||||||||
Total | Ps. | 8,576.8 | 100.00 | % | Ps. | 449.0 | 100.00 | % | Ps. | 9,025.8 | 100.00 | % | ||||||||||||
As of December 31, 2003 | ||||||||||||||||||||||||
Amounts Not Yet | ||||||||||||||||||||||||
Due(1) | Amounts Past Due | Total Loans | ||||||||||||||||||||||
(in millions of pesos, except percentages) | ||||||||||||||||||||||||
Loan Portfolio Classification | ||||||||||||||||||||||||
Normal and Normal Performance | Ps. | 6,531.3 | 85.63 | % | — | — | Ps. | 6,531.3 | 75.61 | % | ||||||||||||||
With Special Follow-up and Inadequate Performance | 807.9 | 10.59 | — | — | 807.9 | 9.35 | ||||||||||||||||||
With Problems and Deficient Performance | 237.9 | 3.12 | Ps. | 426.5 | 42.19 | % | 664.4 | 7.69 | ||||||||||||||||
High Risk of Insolvency and Difficult Collection | 50.4 | 0.66 | 245.4 | 24.27 | 295.8 | 3.42 | ||||||||||||||||||
Uncollectible | — | — | 324.9 | 32.14 | 324.9 | 3.76 | ||||||||||||||||||
Uncollectible Due to Technical Reasons | — | — | 14.2 | 1.40 | 14.2 | 0.17 | ||||||||||||||||||
Total | Ps. | 7,627.5 | 100.00 | % | Ps. | 1,011.0 | 100.00 | % | Ps. | 8,638.5 | 100.00 | % | ||||||||||||
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As of December 31, 2002 | ||||||||||||||||||||||||
Amounts Not Yet | ||||||||||||||||||||||||
Due(1) | Amounts Past Due | Total Loans | ||||||||||||||||||||||
(In millions of February 28, 2003, constant pesos, except percentages) | ||||||||||||||||||||||||
Loan Portfolio Classification | ||||||||||||||||||||||||
Normal and Normal Performance | Ps. | 9,758.0 | 88.02 | % | — | — | Ps. | 9,758.0 | 79.28 | % | ||||||||||||||
With Special Follow-up and Inadequate Performance | 940.5 | 8.48 | — | — | 940.5 | 7.64 | ||||||||||||||||||
With Problems and Deficient Performance | 321.5 | 2.90 | 556.3 | 45.50 | % | 877.8 | 7.13 | |||||||||||||||||
High Risk of Insolvency and Difficult Collection | 66.1 | 0.60 | 453.4 | 37.09 | 519.5 | 4.22 | ||||||||||||||||||
Uncollectible | — | — | 198.2 | 16.21 | 198.2 | 1.61 | ||||||||||||||||||
Uncollectible Due to Technical Reasons | — | — | 14.7 | 1.20 | 14.7 | 0.12 | ||||||||||||||||||
Total | Ps. | 11,086.1 | 100.00 | % | Ps. | 1,222.6 | 100.00 | % | Ps. | 12,308.7 | 100.00 | % | ||||||||||||
As of December 31, | |||||||||||||||||||||||||
2006 | 2005 | 2004 | 2003 | 2002 | |||||||||||||||||||||
(in millions of | |||||||||||||||||||||||||
February 28, | |||||||||||||||||||||||||
2003, constant | |||||||||||||||||||||||||
pesos, except | |||||||||||||||||||||||||
(in millions of pesos, except ratios) | ratios) | ||||||||||||||||||||||||
Total Loans(1) | Ps. | 10,793.2 | Ps. | 10,935.6 | Ps. | 9,025.8 | Ps. | 8,638.5 | Ps. | 12,308.7 | |||||||||||||||
Non-Accrual Loans(2) | |||||||||||||||||||||||||
With Preferred Guarantees | 40.2 | 58.4 | 383.7 | 496.5 | 610.8 | ||||||||||||||||||||
With Other Guarantees | 5.1 | 6.5 | 67.4 | 275.8 | 282.9 | ||||||||||||||||||||
Without Guarantees | 233.8 | 317.5 | 247.8 | 527.0 | 716.5 | ||||||||||||||||||||
Total Non-Accrual Loans(2) | Ps. | 279.1 | Ps. | 382.4 | Ps. | 698.9 | Ps. | 1,299.3 | Ps. | 1,610.2 | |||||||||||||||
Past Due Loan Portfolio | |||||||||||||||||||||||||
Non-Financial Public Sector | — | — | — | — | — | ||||||||||||||||||||
Local Financial Sector | — | — | — | — | — | ||||||||||||||||||||
Non-Financial Private Sector and Residents Abroad | |||||||||||||||||||||||||
Advances | 20.9 | 14.1 | 29.9 | 93.9 | 64.9 | ||||||||||||||||||||
Notes | 135.2 | 191.6 | 253.1 | 528.2 | 741.0 | ||||||||||||||||||||
Mortgage Loans | 28.4 | 14.6 | 115.1 | 211.7 | 217.2 | ||||||||||||||||||||
Pledge Loans | 0.3 | 0.5 | 4.2 | 28.3 | 35.7 | ||||||||||||||||||||
Personal Loans | 4.1 | 0.8 | 4.2 | 110.2 | 58.6 | ||||||||||||||||||||
Credit-Card Loans | 62.7 | 33.4 | 24.9 | 30.6 | 100.4 | ||||||||||||||||||||
Placements with Correspondent Banks | — | — | — | — | — |
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As of December 31, | |||||||||||||||||||||||||
2006 | 2005 | 2004 | 2003 | 2002 | |||||||||||||||||||||
(in millions of | |||||||||||||||||||||||||
February 28, | |||||||||||||||||||||||||
2003, constant | |||||||||||||||||||||||||
pesos, except | |||||||||||||||||||||||||
(in millions of pesos, except ratios) | ratios) | ||||||||||||||||||||||||
Other Loans | 5.1 | 1.0 | 17.6 | 8.1 | 4.8 | ||||||||||||||||||||
Total Past Due Loans | Ps. | 256.7 | Ps. | 256.0 | Ps. | 449.0 | Ps. | 1,011.0 | Ps. | 1,222.6 | |||||||||||||||
Past Due Loans | |||||||||||||||||||||||||
With Preferred Guarantees | 28.9 | 16.1 | 308.0 | 415.7 | 449.3 | ||||||||||||||||||||
With Other Guarantees | 4.3 | 4.9 | 11.4 | 235.6 | 172.5 | ||||||||||||||||||||
Without Guarantees | 223.5 | 235.0 | 129.6 | 359.7 | 600.8 | ||||||||||||||||||||
Total Past Due Loans | Ps. | 256.7 | Ps. | 256.0 | Ps. | 449.0 | Ps. | 1,011.0 | Ps. | 1,222.6 | |||||||||||||||
Allowance for Loan Losses | Ps. | 327.0 | Ps. | 427.9 | Ps. | 632.6 | Ps. | 1,177.3 | Ps. | 1,681.8 | |||||||||||||||
Ratios (%) | |||||||||||||||||||||||||
As a % of Total Loans: | |||||||||||||||||||||||||
- Total Past Due Loans | 2.38 | 2.34 | 4.97 | 11.70 | 9.93 | ||||||||||||||||||||
- Past Due Loans with Preferred Guarantees | 0.27 | 0.15 | 3.40 | 4.81 | 3.65 | ||||||||||||||||||||
- Past Due Loans with Other Guarantees | 0.04 | 0.04 | 0.13 | 2.73 | 1.40 | ||||||||||||||||||||
- Past Due Unsecured Amounts | 2.07 | 2.15 | 1.44 | 4.16 | 4.88 | ||||||||||||||||||||
- Non-Accrual Loans(2) | 2.59 | 3.50 | 7.74 | 15.04 | 13.08 | ||||||||||||||||||||
- Non-Accrual Loans(2) (Excluding Interbank Loans) | 2.80 | 3.57 | 8.10 | 15.35 | 13.25 | ||||||||||||||||||||
Non-Accrual Loans(2) as a Percentage of Loans to the Private Sector | 3.49 | 6.78 | 15.93 | 31.16 | 35.47 | ||||||||||||||||||||
Allowance for Loan Losses as a % of: | |||||||||||||||||||||||||
- Total Loans | 3.03 | 3.91 | 7.01 | 13.63 | 13.66 | ||||||||||||||||||||
- Total Loans Excluding Interbank Loans | 3.27 | 4.00 | 7.33 | 13.91 | 13.84 | ||||||||||||||||||||
- Total Non-Accrual Loans(2) | 117.16 | 111.90 | 90.51 | 90.61 | 104.45 | ||||||||||||||||||||
Non-Accrual Loans with Guarantees as a Percentage of Non-Accrual Loans(2) | 16.23 | 16.97 | 64.54 | 59.44 | 55.50 | ||||||||||||||||||||
Non-Accrual Loans as a Percentage of Total Past Due Loans | 108.73 | 149.38 | 155.66 | 128.52 | 131.70 | ||||||||||||||||||||
(1) | Before the allowance for loan losses. | |
(2) | Non-Accrual loans are defined as those loans in the categories of: (a) consumer portfolio: defective fulfillment, difficulty in recovery, uncollectible and uncollectible due to technical reasons; (b) commercial portfolio: with problems, high risk of insolvency, uncollectible and uncollectible due to technical reasons. |
• | in the consumer portfolio: defective fulfillment, difficulty in recovery, uncollectible and uncollectible due to technical reasons. | ||
• | in the commercial portfolio: with problems, high risk of insolvency, uncollectible and uncollectible due to technical reasons. |
As of December 31, | ||||||||||||||||||||||||
2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||||||||
(in millions of | ||||||||||||||||||||||||
February 28, | ||||||||||||||||||||||||
2003, constant | ||||||||||||||||||||||||
pesos, except | ||||||||||||||||||||||||
(in millions of pesos) | ratios) | |||||||||||||||||||||||
Interest Income that would have been recorded on non-accrual loans on which the accrual of interest was discontinued | 23.7 | 45.9 | 32.5 | 39.9 | 40.4 | |||||||||||||||||||
Recoveries of interest on loans classified as non-accrual on which the accrual of interest had been discontinued(1) | 1.2 | 2.3 | 1.6 | 2.0 | 2.0 | |||||||||||||||||||
(1) | Recorded under “Miscellaneous Income.” |
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Fiscal Year Ended | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||||
(in millions of | ||||||||||||||||||||
February 28, | ||||||||||||||||||||
2003, constant | ||||||||||||||||||||
pesos, except | ||||||||||||||||||||
(in millions of pesos, except ratios) | ratios) | |||||||||||||||||||
Total Loans, Average(1) | Ps. | 10,851.0 | Ps. | 9,746.9 | Ps. | 11,137.9 | Ps. | 11,556.7 | Ps. | 15,262.4 | ||||||||||
Allowance for Loan Losses at Beginning of Period(2) | 427.9 | 632.6 | 1,177.3 | 1,681.8 | 1,050.3 | |||||||||||||||
Changes in the Allowance for Loan Losses during the Period(2) | ||||||||||||||||||||
Provisions Charged to Income | 105.3 | 61.1 | 179.3 | 217.1 | 1,599.5 | |||||||||||||||
Prior Allowances Reversed | (32.5 | ) | (96.2 | ) | (210.3 | ) | (402.1 | ) | 0 | |||||||||||
Charge-Offs (A) | (200.8 | ) | (174.5 | ) | (521.3 | ) | (267.3 | ) | (305.7 | ) | ||||||||||
Inflation and Foreign Exchange Effect and Other Adjustments | 27.1 | 4.9 | 7.6 | (52.2 | ) | (662.3 | ) | |||||||||||||
Allowance for Loan Losses at End of Period | Ps. | 327.0 | Ps. | 427.9 | Ps. | 632.6 | Ps. | 1,177.3 | Ps. | 1,681.8 | ||||||||||
Charge to the Income Statement during the Period | ||||||||||||||||||||
Provisions Charged to Income(2) | 105.3 | 61.1 | 179.3 | 217.1 | 1,599.5 | |||||||||||||||
Direct Charge-Offs, Net of Recoveries (B) | (46.4 | ) | (28.9 | ) | (101.6 | ) | (38.6 | ) | (17.2 | ) | ||||||||||
Recoveries of Provisions | (32.5 | ) | (96.2 | ) | (210.3 | ) | (402.1 | ) | 0 | |||||||||||
Net Charge (Benefit) to the Income Statement | Ps. | 26.4 | Ps. | (64.0 | ) | Ps. | (132.6 | ) | Ps. | (223.6 | ) | Ps. | 1,582.3 | |||||||
Ratios (%) | ||||||||||||||||||||
Charge-Offs (A+B) to Average Loans(3) | 1.42 | % | 1.49 | % | 3.77 | % | 1.98 | % | 1.89 | % | ||||||||||
Net Charge to the Income Statement to Average Loans) | 0.24 | (0.66 | ) | (1.19 | ) | (1.93 | ) | 10.37 | ||||||||||||
(1) | Before the allowance for loan losses. | |
(2) | Includes quotation differences for Galicia Uruguay and Cayman Branch. | |
(3) | Charge-offs plus direct charge-offs minus bad debts recovered. |
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As of December 31, | |||||||||||||||||||||||||||||||||||||
2006 | 2005 | 2004 | |||||||||||||||||||||||||||||||||||
Amount | % of Loans | Loan Category % | Amount | % of Loans | Loan Category % | Amount | % of Loans | Loan Category % | |||||||||||||||||||||||||||||
(in millions of pesos, except percentages) | |||||||||||||||||||||||||||||||||||||
Non-Financial Public Sector | — | — | 24.93 | % | — | — | 47.44 | % | — | — | 50.01 | % | |||||||||||||||||||||||||
Local Financial Sector | — | — | 2.89 | — | — | 1.17 | — | — | 1.67 | ||||||||||||||||||||||||||||
Non-Financial Private Sector and Residents Abroad | |||||||||||||||||||||||||||||||||||||
Advances | Ps. | 16.3 | 0.15 | % | 3.21 | % | Ps. | 12.3 | 0.11 | % | 2.04 | % | Ps. | 22.7 | 0.25 | % | 2.21 | % | |||||||||||||||||||
Notes | 151.1 | 1.40 | 19.86 | 186.4 | 1.70 | 16.80 | 270.9 | 3.00 | 12.18 | ||||||||||||||||||||||||||||
Mortgage Loans | 25.0 | 0.23 | 6.37 | 21.6 | 0.20 | 4.60 | 97.6 | 1.08 | 6.91 | ||||||||||||||||||||||||||||
Pledge Loans | 0.4 | — | 0.62 | 0.5 | — | 1.11 | 3.5 | 0.04 | 1.03 | ||||||||||||||||||||||||||||
Personal Loans | 3.7 | 0.03 | 5.22 | 0.9 | 0.01 | 2.36 | 4.0 | 0.04 | 0.64 | ||||||||||||||||||||||||||||
Credit-Card Loans | 28.5 | 0.26 | 22.78 | 14.0 | 0.13 | 15.84 | 10.8 | 0.12 | 12.25 | ||||||||||||||||||||||||||||
Placements in Correspondent Banks | — | — | 5.63 | — | — | 1.95 | — | — | 4.20 | ||||||||||||||||||||||||||||
Other | 1.0 | 0.01 | 8.49 | 17.1 | 0.16 | 6.69 | 32.1 | 0.36 | 8.90 | ||||||||||||||||||||||||||||
Unallocated(1) | 101.0 | 0.95 | — | 175.1 | 1.60 | — | 191.0 | 2.12 | — | ||||||||||||||||||||||||||||
Total | Ps. | 327.0 | 3.03 | % | 100.00 | % | Ps. | 427.9 | 3.91 | % | 100.00 | % | Ps. | 632.6 | 7.01 | % | 100.00 | % | |||||||||||||||||||
As of December 31, | ||||||||||||||||||||||||
2003 | 2002 | |||||||||||||||||||||||
Amount | % of Loans | Loan Category % | Amount | % of Loans | Loan Category % | |||||||||||||||||||
(in millions of February 28, 2003, constant pesos, | ||||||||||||||||||||||||
(in millions of pesos, except percentages) | except percentages) | |||||||||||||||||||||||
Non-Financial Public Sector | — | — | 49.51 | % | — | — | 62.03 | % | ||||||||||||||||
Local Financial Sector | — | — | 2.25 | — | — | 1.09 | ||||||||||||||||||
Non-Financial Private Sector and Residents Abroad | ||||||||||||||||||||||||
Advances | Ps. | 78.8 | 0.91 | % | 2.54 | Ps. | 40.1 | 0.33 | % | 1.84 | ||||||||||||||
Notes | 441.9 | 5.12 | 14.82 | 569.0 | 4.62 | 12.55 | ||||||||||||||||||
Mortgage Loans | 142.6 | 1.65 | 8.33 | 122.1 | 0.99 | 7.02 | ||||||||||||||||||
Pledge Loans | 22.7 | 0.27 | 0.63 | 24.3 | 0.20 | 1.56 | ||||||||||||||||||
Personal Loans | 157.6 | 1.82 | 0.64 | 48.4 | 0.39 | 0.97 | ||||||||||||||||||
Credit-Card Loans | 14.5 | 0.17 | 9.48 | 55.6 | 0.45 | 4.75 | ||||||||||||||||||
Placements in Correspondent Banks | — | — | 2.00 | — | — | 1.29 | ||||||||||||||||||
Other | 5.6 | 0.06 | 9.80 | — | — | 6.90 | ||||||||||||||||||
Unallocated(1) | 313.6 | 3.63 | — | 822.3 | 6.68 | — | ||||||||||||||||||
Total | Ps. | 1,177.3 | 13.63 | % | 100.00 | % | Ps. | 1,681.8 | 13.66 | % | 100.00 | % | ||||||||||||
(1) | The unallocated reserve consists of the allowances established on the portfolio classified in the “normal” and “normal performance” categories and includes additional reserves in excess of Argentine Central Bank minimum requirements. |
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Fiscal Year Ended | ||||||||||||
December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
(in millions of pesos) | ||||||||||||
Charge-offs by Type | ||||||||||||
Advances | Ps. | 2.1 | Ps. | 12.5 | Ps. | 20.0 | ||||||
Notes | ||||||||||||
Promissory Notes | 155.2 | 47.7 | 331.3 | |||||||||
Discounted and Purchased Bills | — | 2.9 | — | |||||||||
Mortgage Loans | 6.4 | 57.6 | 60.5 | |||||||||
Pledge Loans | 0.2 | 3.5 | 20.4 | |||||||||
Personal Loans | 1.5 | 1.1 | 12.5 | |||||||||
Credit-Card Loans | ||||||||||||
Banco Galicia | 3.0 | 8.8 | 5.5 | |||||||||
Regional Credit-Card Companies | 31.9 | 22.0 | 9.3 | |||||||||
Other Loans | 0.5 | 18.4 | 61.8 | |||||||||
Total | Ps. | 200.8 | Ps. | 174.5 | Ps. | 521.3 | ||||||
- | a Ps.1,079.7 million claim against a United Kingdom financial institution (4.57% of our total assets), of which Ps.723.9 million represented the right to receive Discount Bonds in connection with agreements to repurchase such bonds entered into with such bank; and | |
- | Ps.842.1 million of placements with United States financial institutions (3.56% of our total assets), of which Ps.608.1 million represented an overnight placement and the remaining amount several short-term placements. |
- | a Ps.349.5 million claim against a United Kingdom financial institution (1.36% of our total assets), of which Ps.347.8 million represented the right to receive Boden 2012 Bonds in connection with agreements to repurchase such bonds entered into with such bank; and | |
- | Ps.238.6 million of placements with United States financial institutions (0.93% of our total assets), of which Ps.212.9 million represented an overnight placement and the remaining amount several short-term placements. |
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- | a Ps.394.4 million claim against a United Kingdom financial institution (1.67% of our total assets), corresponding to the right to receive Boden 2012 Bonds in connection with agreements to repurchase such bonds entered into with such bank; and | |
- | Ps.196.4 million of placements with United States financial institutions (0.83% of our total assets), of which Ps.157.4 million represented an overnight placement and the remaining amount several short-term placements. |
As of December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
(in millions of pesos) | ||||||||||||
Current Accounts and Other Demand Deposits | Ps. | 2,011.4 | Ps. | 1,657.6 | Ps. | 1,210.3 | ||||||
Savings Accounts | 2,589.5 | 2,213.4 | 1,639.5 | |||||||||
Time Deposits | 5,831.5 | 4,261.9 | 3,527.6 | |||||||||
Other Deposits (1) | 215.6 | 192.9 | 298.3 | |||||||||
Plus: Interest Payable and Differences in Quotations(2) | 131.4 | 95.9 | 81.2 | |||||||||
Total Deposits | Ps. | 10,779.4 | Ps. | 8,421.7 | Ps. | 6,756.9 | ||||||
(1) | Includes among other, Reprogrammed Deposits instrumented as Cedros as well as Reprogrammed Deposits under judicial proceedings. (2) Includes the CER adjustment. |
Peso-Denominated | Dollar-Denominated | Total | ||||||||||||||||||||||
% of | % of | % of | ||||||||||||||||||||||
Amount | Total | Amount | Total | Amount | Total | |||||||||||||||||||
(in millions of pesos, except percentages) | ||||||||||||||||||||||||
Current Accounts and Demand Deposits | Ps. | 2,011.4 | 22.0 | % | — | — | Ps. | 2,011.4 | 18.9 | % | ||||||||||||||
Savings Accounts | 1,941.4 | 21.3 | Ps. | 648.1 | 42.6 | % | 2,589.5 | 24.3 | ||||||||||||||||
Time Deposits | 5,038.9 | 55.2 | 792.6 | 52.1 | 5,831.5 | 54.8 | ||||||||||||||||||
Maturing within 30 Days | 736.9 | 8.1 | 133.1 | 8.8 | 870.0 | 8.2 |
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Peso-Denominated | Dollar-Denominated | Total | ||||||||||||||||||||||
% of | % of | % of | ||||||||||||||||||||||
Amount | Total | Amount | Total | Amount | Total | |||||||||||||||||||
(in millions of pesos, except percentages) | ||||||||||||||||||||||||
Maturing after 31 Days but within 59 Days | 1,354.2 | 14.8 | 146.2 | 9.6 | 1,500.4 | 14.1 | ||||||||||||||||||
Maturing after 60 Days but within 89 Days | 825.2 | 9.0 | 81.9 | 5.4 | 907.1 | 8.5 | ||||||||||||||||||
Maturing after 90 Days but within 179 Days | 894.8 | 9.8 | 139.4 | 9.2 | 1,034.2 | 9.7 | ||||||||||||||||||
Maturing after 180 Days but within 365 Days | 822.5 | 9.0 | 101.3 | 6.7 | 923.8 | 8.7 | ||||||||||||||||||
Maturing after 365 Days | 405.3 | 4.5 | 190.7 | 12.4 | 596.0 | 5.6 | ||||||||||||||||||
Other Deposits | 135.4 | 1.5 | 80.2 | 5.3 | 215.6 | 2.0 | ||||||||||||||||||
Maturing within 30 Days | 110.2 | 1.2 | 79.9 | 5.3 | 190.1 | 1.8 | ||||||||||||||||||
Maturing after 31 Days but within 59 Days | — | — | — | — | — | — | ||||||||||||||||||
Maturing after 60 Days but within 89 Days | — | — | — | — | — | — | ||||||||||||||||||
Maturing after 90 Days but within 179 Days | — | — | — | — | — | — | ||||||||||||||||||
Maturing after 180 Days but within 365 Days | — | — | — | — | — | — | ||||||||||||||||||
Maturing after 365 Days | 25.2 | 0.3 | 0.3 | — | 25.5 | 0.2 | ||||||||||||||||||
Total Deposits(1) | Ps. | 9,127.1 | 100.0 | % | Ps. | 1,520.9 | 100.0 | % | Ps. | 10,648.0 | 100.0 | % | ||||||||||||
(1) | Only principal. Excludes the CER adjustment |
Domestic Offices | Foreign Offices | |||||||
(in millions of pesos) | ||||||||
Time Deposits | ||||||||
Within 30 Days | Ps. | 424.8 | — | |||||
After 31 Days but within 59 Days | 1,017.7 | — | ||||||
After 60 Days but within 89 Days | 519.2 | — | ||||||
After 90 Days but within 179 Days | 664.9 | — | ||||||
After 180 Days but within 365 Days | 689.3 | — | ||||||
After 365 Days | 362.6 | Ps. | 139.5 | |||||
Total Time Deposits | Ps. | 3,678.5 | Ps. | 139.5 | ||||
Other Deposits | ||||||||
After 365 Days | — | 0.2 | ||||||
Total Other Deposits | — | 0.2 | ||||||
Total Deposits(1) | Ps. | 3,678.5 | Ps. | 139.7 | ||||
(1) | Only principal. Excludes the CER adjustment. |
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Fiscal Year Ended | ||||||||||||
December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
(in millions of pesos, except percentages) | ||||||||||||
Net Income / (Loss) | Ps. | (18.9 | ) | Ps. | 107.2 | Ps. | (109.9 | ) | ||||
Average Total Assets | 24,614.5 | 24,238.1 | 22,725.9 | |||||||||
Average Shareholders’ Equity | 1,649.3 | 1,569.3 | 1,500.9 | |||||||||
Shareholders’ Equity at End of the Period | 1,608.5 | 1,626.8 | 1,519.5 | |||||||||
Net Income / (Loss) as a Percentage of: | ||||||||||||
Average Total Assets | — | 0.59 | % | (0.42 | )% | |||||||
Average Shareholders’ Equity | (1.15 | )% | 6.83 | (7.32 | ) | |||||||
Declared Cash Dividends | — | — | — | |||||||||
Dividend Payout Ratio | — | — | — | |||||||||
Average Shareholders’ Equity as a Percentage of Average Total Assets | 6.70 | % | 6.47 | % | 6.60 | % | ||||||
Shareholders’ Equity at the End of the Period as a Percentage of Average Total Assets | 6.53 | 6.71 | 6.69 | |||||||||
As of December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
(in millions of pesos ) | ||||||||||||
Short-Term Borrowings | ||||||||||||
Argentine Central Bank | Ps. | 0.4 | Ps. | 0.3 | Ps. | 1.0 | ||||||
Other Banks and International Entities(1) | ||||||||||||
Lines of Credit from Domestic Banks | Ps. | 134.5 | Ps. | 60.8 | Ps. | 115.2 | ||||||
Lines of Credit from Foreign Banks | 45.4 | — | — | |||||||||
Repos with Domestic Banks | 522.9 | — | — | |||||||||
Repos with Foreign Banks | — | 220.5 | 223.7 | |||||||||
Negotiable Obligations | 65.1 | 89.7 | 13.4 | |||||||||
Total | Ps. | 768.3 | Ps. | 371.3 | Ps. | 353.3 | ||||||
- | the weighted-average interest rate at year-end, | |
- | the maximum balance recorded at the monthly closing dates of the periods, | |
- | the average balances for each period, and | |
- | the weighted-average interest rate for the periods. |
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As of December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
(in millions of pesos, except percentages ) | ||||||||||||
Argentine Central Bank | ||||||||||||
Weighted-average interest rate at end of period | — | — | 7.0 | % | ||||||||
Maximum balance recorded at the monthly closing dates | Ps. | 0.9 | Ps. | 1.2 | Ps. | 1.0 | ||||||
Average balances for each period | 0.5 | 0.5 | 0.9 | |||||||||
Weighted-average interest rate for the period | — | — | 7.0 | % | ||||||||
Lines of Credit from Domestic Banks | ||||||||||||
Weighted-average interest rate at end of period | 9.1 | % | 7.0 | % | 5.2 | % | ||||||
Maximum balance recorded at the monthly closing dates | Ps. | 378.7 | Ps. | 164.1 | 185.6 | |||||||
Average balances for each period | 142.0 | 96.3 | 104.2 | |||||||||
Weighted-average interest rate for the period | 8.0 | % | 5.5 | % | 5.0 | % | ||||||
Lines of Credit from Foreign Banks | ||||||||||||
Weighted average interest rate at end of period | 6.1 | % | — | — | ||||||||
Maximum balance recorded at the monthly closing dates | Ps. | 45.4 | — | Ps. | 1,231.6 | |||||||
Average balances for each period | 9.7 | — | 456.1 | |||||||||
Weighted average interest rate for the period | 6.1 | % | — | 7.1 | % | |||||||
Repos with Domestic Banks | ||||||||||||
Weighted-average interest rate at end of period | 9.3 | % | — | — | ||||||||
Maximum balance recorded at the monthly closing dates | Ps. | 525.9 | Ps. | 165.6 | Ps. | 150.1 | ||||||
Average balances for each period | 101.6 | 15.8 | 37.9 | |||||||||
Weighted-average interest rate for the period | 7.6 | % | 4.9 | % | 2.8 | % | ||||||
Repos with Foreign Banks | ||||||||||||
Weighted-average interest rate at end of period | — | 7.5 | % | 5.6 | % | |||||||
Maximum balance recorded at the monthly closing dates | Ps. | 223.5 | Ps. | 220.6 | Ps. | 224.3 | ||||||
Average balances for each period | 145.7 | 216.7 | 66.5 | |||||||||
Weighted-average interest rate for the period | 8.3 | % | 6.6 | % | 5.6 | % | ||||||
Negotiable Obligations | ||||||||||||
Weighted-average interest rate at end of period | 9.9 | % | 7.4 | % | 8.0 | % | ||||||
Maximum balance recorded at the monthly closing dates | Ps. | 65.1 | Ps. | 123.2 | Ps. | 13.4 | ||||||
Average balances for each period | 49.6 | 79.5 | 11.5 | |||||||||
Weighted-average interest rate for the period | 7.5 | % | 6.1 | % | 8.0 | % | ||||||
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January 1st/ December 31st | Alfa 1 | Alfa 2 | ||
2004 | 0.05 | 0.20 | ||
2005 | 0.15 | 0.40 | ||
2006 | 0.30 | 0.70 | ||
2007 | 0.50 | 1.00 | ||
2008 | 0.75 | — | ||
2009 | 1.00 | — | ||
As of December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
(in millions of pesos, except percentages) | ||||||||||||
Shareholders’ Equity | Ps. | 1,263.0 | Ps. | 1,389.2 | Ps. | 1,198.2 | ||||||
Argentine Central Bank Minimum Capital Requirements | ||||||||||||
Allocated to Financial Assets | 597.1 | 477.2 | 329.9 | |||||||||
Allocated to Fixed Assets, intangible and unquoted equity investments | 143.5 | 138.0 | 142.0 | |||||||||
Allocated to Market Risk | 12.3 | 16.8 | 62.6 | |||||||||
Allocated to Interest-Rate Risk | 61.6 | 87.1 | 20.2 | |||||||||
Lending to the Non-Financial Public Sector | 269.8 | 162.4 | 58.6 | |||||||||
Total (A) | Ps. | 1,084.3 | Ps. | 881.5 | Ps. | 613.3 | ||||||
Computable Regulatory Capital Calculated Under Argentine Banking GAAP | ||||||||||||
Core Capital | 1,395.0 | 1,207.1 | 1,339.9 | |||||||||
Supplemental Capital | 608.4 | 807.5 | 580.8 | |||||||||
Deductions | ||||||||||||
Investments in Financial Entities | (1.5 | ) | (1.5 | ) | (1.5 | ) | ||||||
Organization Expenses | (64.2 | ) | (55.6 | ) | (71.6 | ) | ||||||
Goodwill Recorded from June 30, 1997 | (66.8 | ) | (85.9 | ) | (111.7 | ) | ||||||
Real Estate Properties for Banco Galicia’s Own Use and Miscellaneous, for which no title deed has been made | (5.2 | ) | (3.5 | ) | (4.0 | ) | ||||||
Other | (6.1 | ) | (5.6 | ) | (5.9 | ) | ||||||
Total | (143.8 | ) | (152.1 | ) | (194.7 | ) | ||||||
Additional Capital — Market Variation | 2.0 | 22.7 | 20.5 | |||||||||
Total (B) | Ps. | 1,861.6 | Ps. | 1,885.2 | Ps. | 1,746.5 | ||||||
Excess Capital | ||||||||||||
Excess over required Capital (B)-(A) | Ps. | 777.3 | Ps. | 1,003.7 | Ps. | 1,133.2 | ||||||
Excess over Required Capital as a % of Required Capital | 71.69 | % | 113.86 | % | 184.77 | % | ||||||
Total Capital Ratio | 15.03 | 20.78 | 25.11 | |||||||||
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a) | By line of insurance: This method establishes a fixed amount by line of insurance. For life insurance companies, it is Ps.750,000, rising to Ps.3 million for companies that offer pension-linked life insurance. For annuity providers that do not offer life annuities, or annuities covering disability and other work-related risks, the requirement is Ps.2 million. For property insurance companies, the requirement is Ps.5 million, excluding the auto insurance line of business. |
b) | By premiums and additional fees: To use this method, the company must calculate the sum of the premiums written and additional fees earned in the last 12 months. Of the total, the company must calculate 18% of any result up to Ps.5 million, and 16% of any result over Ps.5 million. Finally, it must add the resulting figures and adjust the total by the ratio of net paid claims to gross paid claims for the last 36 months. This ratio must be at least 50%. |
c) | By claims: To use this method, the company must calculate the sum of gross claims paid during the 36 months prior to the end of the period under analysis. To that amount, it must add the difference between the balance of unpaid claims as of the end of the period under analysis and the balance of unpaid claims as of the 36th month prior to the end of the period under analysis. The resulting figure must be divided by three. Then the company must calculate 26% of any result up to Ps.3.5 million, and 23% of any result over Ps.3.5 million. The resulting figure must be adjusted by the ratio of net paid claims to gross paid claims for the last 36 months. This ratio must be at least 50%. |
d) | For life insurance companies that offer policies with an investment component, the figures obtained in b) and c) must be increased by an amount equal to 4% of the technical reserves. The latter total must be adjusted by the ratio of net claims reserves to gross claims reserves (at least 85%), plus 0.03% of at-risk capital adjusted by the ratio of net claims reserves to gross claims reserves (at least 50%). |
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• | ratifying the suspension of payments of Argentina’s sovereign debt except for debt with multilateral credit agencies; | ||
• | repealing the articles of the Convertibility Law that had established in 1991 the fixed one-to-one peso-dollar parity, devaluing the peso and subsequently allowing the peso to float, which resulted in an increase in such parity of approximately 240% during 2002; | ||
• | tightening foreign-exchange controls and restrictions on transfers abroad, which began to be loosened at the end of 2002; | ||
• | ratifying and tightening the restrictions to cash withdrawals from bank deposits established in December 2001 (the “corralito”), which restrictions were lifted in December 2002; | ||
• | establishing a compulsory “asymmetric” conversion of certain dollar-denominated assets and liabilities into peso-denominated assets and liabilities at different exchange rates (the asymmetric pesification), as follows: |
- | private sector debt (individual and corporate dollar-denominated debt) with financial institutions, and other creditors, was converted into peso-denominated debt at a one-to-one exchange rate; | ||
- | dollar-denominated public sector debt instruments in financial institutions’ portfolios, both national and provincial, were converted into peso-denominated instruments at an exchange rate of Ps.1.4 per US$ 1.0; and | ||
- | dollar-denominated bank deposits were converted into peso-denominated bank deposits at an exchange rate of Ps.1.4 per US$ 1.0, while public-sector, bank and corporate debt governed by foreign law remained dollar-denominated;. |
• | modifying the yields of assets and the cost of liabilities pesified at the Ps.1.4 per US$ 1.0 exchange rate, establishing fixed maximum and minimum interest rates, respectively, and establishing the adjustment of the principal of those assets and liabilities by the variation of indexes based on the variation of prices or salaries; | ||
• | restructuring bank peso-denominated time deposits and dollar-denominated deposits, above certain amounts, and establishing a repayment schedule ending in 2003 and 2005 depending on whether the deposit was originally peso or dollar-denominated (this restructuring was known as the “corralón”); | ||
• | establishing a series of voluntary swaps of deposits in the “corralito” or of Reprogrammed Deposits for government bonds, as a response to the inability of the financial system to return deposits in accordance with their original terms and conditions. Through Decree No. 739/03 of April 1, 2003, the “corralón” was eliminated; |
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• | amending the charter of the Argentine Central Bank; and | ||
• | allocating Government bonds to financial institutions in compensation for the losses that would otherwise arise from the asymmetric pesification. As of the date of this annual report, the Government and the Argentine Central Bank have provided a series of rules to determine the amount of compensation in connection with the asymmetric pesification to which each financial institution is entitled. However, certain situations remain that have not been contemplated by such rules, such as the provision of compensation for the difference between the amounts paid by banks to reimburse Reprogrammed Deposits, as a result of judicial actions from depositors (amparoclaims), and the amounts established by the regulations. |
(a) | foreign exchange flows into and from the local foreign exchange market and all resident new debt transactions that may imply future foreign exchange payments to nonresidents must be registered with the Argentine Central Bank. | ||
(b) | All new debt of the private sector with non-residents must be for a minimum term of 365 days, except for foreign trade financing and primary issuances of debt securities, if such securities public offering and listing in self-regulated markets in Argentina has been duly authorized. | ||
(c) | All inflows of foreign exchange resulting from such indebtedness, with the exceptions mentioned in the previous item and those regulated by the Argentine Central Bank which are detailed below, and all inflows of foreign exchange by non-residents, excluding direct foreign investments and certain portfolio investments (subscriptions of primary issuances of debt and equity securities, which public offering and listing in self-regulated markets in Argentina has been duly authorized, and government securities acquired in the secondary market), must be for a term of at least 365 days and will be subject to a 30% deposit requirement. | ||
(d) | Such deposit requirement will be constituted in a local financial institution as an unremunerated dollar-denominated deposit maturing in at least 365 days; such funds will not be available as a guarantee for any kind of debt and, upon the deposit maturity date, such funds will become available within the country and, therefore, will be subject to certain restrictions on foreign exchange transfers abroad. | ||
(e) | The 30% deposit requirement is not required, among other, for inflows of foreign currency: |
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(i) | resulting from loans granted to residents by local financial institutions in foreign currency; | ||
(ii) | resulting from capital contributions to local institutions, when the contributor owns, previously or as a result of such contributions, 10% or more of the company’s capital or votes, subject to compliance with certain requirements; | ||
(iii) | resulting from sales of interests in local entities to direct investors; | ||
(iv) | to be applied to real estate acquisitions; | ||
(v) | resulting from an indebtedness with multilateral and bilateral credit agencies and with official credit agencies; | ||
(vi) | resulting from other foreign indebtedness of the local non-financial private sector, with an average life of no less than two years, the proceeds of which will be applied to non-financial investments (as defined by the Argentine Central Bank); | ||
(vii) | resulting from other foreign indebtedness where the proceeds will be applied to settlement of foreign debt principal amortization or long term investments in foreign assets; | ||
(viii) | resulting from the sale of foreign assets of residents in order to subscribe primary issuances of public debt issued by the Government; and |
(f) | the proceeds of sales of foreign assets brought into the country by residents (“capital repatriation”) will be subject to the 30% deposit requirement, which will apply to any amounts exceeding US$ 2.0 million per month. |
- | Access to the local foreign exchange market by non-residents (both individuals and entities) to transfer funds abroad is permitted: |
- | with no limit in the case of proceedings from the principal amortization of government securities, recoveries from local bankruptcies and certain other specific cases. | ||
- | with a US$ 2.0 million monthly limit in the case of the aggregate proceeds from the sale of: (i) direct investments in the private non-financial sector in Argentina or the final disposition of such investments; and (ii) the sale of portfolio investments made with foreign currency having entered the local foreign exchange market no less than 180 days before. However, access to the local foreign exchange market for the reason mentioned in clause (i) for a monthly amount exceeding US$ 500,000 or for the reasons mentioned in clauses (i) and (ii) for an aggregate monthly amount exceeding US$ 2.0 million, requires the prior authorization of the Argentine Central Bank. | ||
- | with a US$ 5,000 monthly limit in the cases not contemplated above, unless authorization of the Argentine Central Bank is obtained. |
- | Access to the local foreign exchange market by residents (both individuals and entities) to make foreign real estate, direct or portfolio investments or buy foreign exchange or traveler checks is allowed but limited to US$ 2.0 million per month, with such limit increased in certain cases. | ||
- | Access to the foreign exchange local market for the transfer of profits and dividends abroad is permitted when corresponding to audited and final balance sheets. |
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- | the losses caused by the mandatory conversion into pesos of certain liabilities at the Ps.1.4 per US$ 1.0 exchange rate, greater than the Ps.1.0 per US$ 1.0 exchange rate established for the conversion into pesos of certain dollar-denominated assets. This was to be achieved through the delivery of a peso-denominated compensatory bond issued by the Government (Boden 2007 Bonds). | ||
- | the currency mismatch left in financial institutions’ balance sheets after the compulsory pesification of certain of their assets and liabilities. This was to be achieved through the conversion of the peso-denominated compensatory bond into a dollar-denominated compensatory bond and, if necessary, through the purchase by financial institutions of a dollar-denominated hedge bond. For such purpose, the Government established the issuance of a dollar-denominated bond bearing Libor and maturing in 2012 (Boden 2012 Bonds). |
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- | equity shares without quotation, excluding (a) stock of companies which provide services complementary to the services offered by the bank, and (b) certain stock participations which are necessary in order to obtain the rendering of public services, if any, | ||
- | listed stock and participations in mutual funds which are not included in order to determine the capital requirements related to market risk; and | ||
- | listed stock that does not have a “largely publicly available” market price (when daily quotes of relevant transactions are available, which quotes would not be significantly affected by the disposition of the bank’s holdings of such stock) |
i) | the core capital, which includes permanent capital, non-equity contributions, net worth adjustments, surplus reserves, audited retained earnings and, effective October 1, 2006, long-term debt instruments, as long as such instruments fulfill certain requirements (maturity of more than 30 years, accrual of recognized return per year not exceeding issuer financial entity’s profits, with unpaid services not being cumulative, so that they cannot be deferred and accumulated to be paid after its maturity date) and cannot exceed a certain core capital percentages, equal to 30% until December 31, 2008, subject to a schedule that converges to the 15% international standard on January 1, 2013; plus | ||
ii) | the supplemental capital, which may not exceed the core capital, consisting of unaudited retained earnings (50% of profits and 100% of losses; those corresponding to the last fiscal year can be included only when they have been audited), 50% of the reserves on the loan portfolio classified as “normal” |
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(general reserves), subordinated debt not exceeding 50% of core capital and with a maturity of at least 5 years, and, effective October 1, 2006, debt instruments which fulfill the requirements to be considered as core capital but exceed the above mentioned limits, debt instruments with residual time to maturity of less than 10 years and those for which unpaid services are cumulative. In this case, the limit is 50% of the core capital. | |||
iii) | In addition, the following items must be deducted: (i) sight deposits with foreign banks abroad not rated as investment grade; (ii) securities deposited with custodians not having been authorized by the Argentine Central Bank; (iii) sovereign bonds issued by a foreign government with a rating lower than that assigned to the Argentine sovereign bonds; (iv) share holdings in other financial institutions; (v) unregistered real estate; (vi) goodwill; (vii) research and development expenses; (viii) provisioning deficiencies as determined by the Financial Superintendency. |
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• | Demand deposits: |
- | peso-denominated current accounts and savings accounts: 19%. | ||
- | dollar-denominated savings accounts: 30%. |
• | Time deposits, including those adjusted by CER (by remaining maturity): |
- | denominated in pesos: up to 29 days: 14%; from 30 to 59 days: 11%; from 60 to 89 days: 7%; from 90 to 179 days: 2%; from 180 to 365 days: 0%. | ||
- | denominated in dollars: up to 29 days: 35%; from 30 to 59 days: 28%; from 60 to 89 days: 20%; from 90 to 179 days: 10%; from 180 to 365 days: 6%; and more than 365 days: 0%. |
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Without Collateral | With Collateral | |||||||
Non-related Customers | 15 | % | 25 | % | ||||
Domestic Financial Institutions (*) | 25 | % | 25 | % | ||||
Foreign Financial Institutions (Investment grade) | 25 | % | 25 | % | ||||
Foreign Financial Institutions (Other) | 5 | % | 5 | % |
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Without Collateral | With Collateral | |||||||
Reciprocal Guarantee Entities authorized by the Argentine Central Bank (**) | — | 25 | % | |||||
Public sector (***): | ||||||||
i) National | 50 | % | 50 | % | ||||
ii) City of Buenos Aires and Provinces (each) | 10 | % | 10 | % | ||||
iii) Municipalities (each) | 3 | % | 3 | % | ||||
(*) | For bankers’ banks, the limit is 100%. | |
(**) | Law 24,467: associations of companies authorized by the Argentine Central Bank to guarantee loans. In case one of the companies fails to pay, the other takes responsibility. | |
(***) | Excess over the new limits set in March 2003 will not be computed if arising from loans granted before March 2003, if determined or increased by the reception of bonds or promissory notes as compensation for the asymmetric pesification, or if arising from the rolling over of preexisting loans. |
Limit based on a Bank’s RPC | Limit based on Customers’ Net | |||||||
Worth | ||||||||
Companies with non-complementary activities | 12.5 | %(**) | ||||||
Companies with complementary activities | 100 | % | ||||||
Total shares | 50 | % | ||||||
Shares without quotation (*) | 15 | % | ||||||
(*) | Includes shares that do not quote frequently and therefore are not subject capital requirements to cover market risk. | |
(**) | Shares or equity interests could be taken in payment of credits, up to 20% of the firm’s capital, without exceeding 20% of the votes. They had to be sold within one year so as to reach the regulatory limit. |
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- | deposits of individuals or entities up to Ps.50,000 or the equivalent thereof in foreign currency, enjoying this preference only one person per deposit. For the determination of this preference, all deposits of the same person registered by the entity shall be computed; | ||
- | deposits in excess of Ps.50,000 or the equivalent thereof in foreign currency, referred to above; | ||
- | liabilities originated on commercial credit lines granted to the financial entity, which are directly in connection with international trade. |
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As of December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
(In millions of pesos) | ||||||||||||
Assets | ||||||||||||
In pesos, unadjusted | 12,529.2 | 7,977.3 | 5,666.0 | |||||||||
In pesos, adjusted by the CER | 4,271.5 | 10,671.5 | 10,198.4 | |||||||||
In foreign currency(1) | 6,833.5 | 6,807.4 | 7,786.2 | |||||||||
Total Assets | 23,634.2 | 25,456.2 | 23,650.6 | |||||||||
Liabilities and Shareholders’ Equity | ||||||||||||
In pesos, unadjusted, including shareholders’ equity | 13,115.2 | 9,350.0 | 7,871.1 | |||||||||
In pesos, adjusted by the CER | 3,826.2 | 9,909.4 | 9,236.0 | |||||||||
In foreign currency(1) | 6,692.8 | 6,196.8 | 6,543.5 | |||||||||
Total Liabilities and Shareholders’ Equity | 23,634.2 | 25,456.2 | 23,650.6 | |||||||||
(1) | If adjusted to reflect forward sales and purchases of foreign exchange made by the Bank and recorded off-balance sheet, assets amounted to Ps.7,308.8 million and liabilities Ps.6,841.7 million. |
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For the 12-month period ended December 31, | ||||||||||||
(in percentages) | 2006 | 2005 | 2004 | |||||||||
Inflation(1) | ||||||||||||
Wholesale Price Index | 7.14 | % | 10.67 | % | 7.87 | % | ||||||
Consumer Price Index | 9.84 | % | 12.33 | % | 6.10 | % | ||||||
Adjustment Indexes | ||||||||||||
CER | 10.04 | % | 11.75 | % | 5.48 | % | ||||||
CVS (through March 31, 2004) | — | 5.32 | % | |||||||||
(1) | Source: INDEC. |
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Fiscal Year Ended | Change | |||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
2006 | 2005 | 2004 | 2006/2005 | 2005/2004 | ||||||||||||||||
(in millions of pesos, except percentages) | ||||||||||||||||||||
Consolidated Income Statement | ||||||||||||||||||||
Financial income | Ps | .2,249.8 | Ps | .2,398.6 | Ps | .1,391.6 | Ps | .(148.8 | ) | Ps | .1,007.0 | |||||||||
Financial expenses | 1,871.6 | 1,845.9 | 1,167.4 | 25.7 | 678.5 | |||||||||||||||
Net financial income | 378.2 | 552.7 | 224.2 | (174.5 | ) | 328.5 | ||||||||||||||
Provision for losses on loans and other receivables | 110.9 | 76.7 | 190.2 | 34.2 | (113.5 | ) | ||||||||||||||
Net income from services | 672.0 | 523.7 | 436.3 | 148.3 | 87.4 | |||||||||||||||
Administrative expenses | 974.6 | 781.0 | 623.9 | 193.6 | 157.1 | |||||||||||||||
Minority interest | (19.0 | ) | (34.6 | ) | (14.3 | ) | 15.6 | (20.3 | ) | |||||||||||
Income / (loss) from equity investments | (14.4 | ) | 6.7 | 3.0 | (21.1 | ) | 3.7 | |||||||||||||
Miscellaneous income / (loss), net | 144.0 | (64.3 | ) | 98.8 | 208.3 | (163.1 | ) | |||||||||||||
Income tax | (94.2 | ) | (19.3 | ) | (43.8 | ) | (74.9 | ) | 24.5 | |||||||||||
Net income / (loss) | Ps. | (18.9 | ) | Ps. | 107.2 | Ps. | (109.9 | ) | Ps. | (126.1 | ) | Ps. | 217.1 | |||||||
Return on average assets(1) | 0.0004 | % | 0.59 | % | (0.42 | )% | (0.6 | )% | 1.0 | % | ||||||||||
Return on average shareholders’ equity | (1.15 | ) | 6.83 | (7.32 | ) | (8.0 | ) | 14.2 | ||||||||||||
(1) | For the calculation of the return on average assets, profits or losses corresponding to minority interests are excluded from net income. |
• | a 31.6% reduction in net financial income, from Ps.552.7 million to Ps.378.2 million. Net financial income in 2006 included a Ps.198.4 million loss due to the valuation of public-sector assets in accordance with Argentine Central Bank rules; | ||
• | a 24.8% increase in administrative expenses, from Ps.781.0 million to Ps.974.6 million; | ||
• | a 44.6% increase in loan loss provisions, from Ps.76.7 million to Ps.110.9 million; and | ||
• | a Ps.74.9 million increase in income tax charges. |
• | a Ps.208.3 million increase in net miscellaneous income, from Ps.(64.3) million to Ps.144.0 million, and | ||
• | a 28.3% increase in net income from services, to Ps.672.0 million from Ps.523.7 million. |
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• | a 72.4% increase in financial income, from Ps.1,391.6 million to Ps.2,398.6 million; | ||
• | a 59.7% reduction in loan loss provisions, from Ps.190.2 million to Ps.76.7 million; | ||
• | a 20.0% increase in net income from services, to Ps.523.7 million from Ps.436.3 million; and | ||
• | income tax charges for Ps.19.3 million, 55.9% less than the Ps.43.8 million corresponding to the prior fiscal year. | ||
These factors were partially offset by: | |||
• | a 58.1% increase in financial expenses, from Ps.1,167.4 million to Ps.1,845.9 million; | ||
• | a reduction in net miscellaneous income, from Ps.98.8 million to Ps.(64.3) million; and | ||
• | a 25.2% increase in administrative expenses, from Ps.623.9 million to Ps.781.0 million. |
Fiscal Year Ended | ||||||||||||
December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
(in millions of pesos) | ||||||||||||
Income on loans and other receivables resulting from financial brokerage and premiums earned on reverse repos | Ps. | 1,149.1 | Ps. | 899.8 | Ps. | 746.3 | ||||||
Income from government and corporate securities, net | 261.2 | 333.1 | — | |||||||||
CER adjustment | 730.1 | 1,091.8 | 559.7 | |||||||||
Other(1) | 109.4 | 73.9 | 85.6 | |||||||||
Total | Ps. | 2,249.8 | Ps. | 2,398.6 | Ps. | 1,391.6 | ||||||
(1) | Reflects income from financial leases, net, and differences in the quotation of gold and foreign currency as well as premiums on forward sales of foreign exchange. Also includes CVS adjustment in the amount of Ps.28.9 million for fiscal year 2004. |
As of December 31, | ||||||||||||||||||||||||
2006 | 2005 | 2004 | ||||||||||||||||||||||
Average | Average | Average | ||||||||||||||||||||||
Balance | Rate | Balance | Rate | Balance | Rate | |||||||||||||||||||
(in millions of pesos, except rates) | ||||||||||||||||||||||||
Interest-Earning Assets | Ps. | 21,752.6 | 8.84 | % | Ps. | 21,844.2 | 10.60 | % | Ps. | 20,735.4 | 6.06 | % | ||||||||||||
Government Securities | 4,675.8 | 6.68 | 5,747.7 | 11.78 | 3,238.7 | (0.29 | ) | |||||||||||||||||
Loans | 10,851.0 | 12.21 | 9,746.9 | 14.00 | 11,137.9 | 9.87 | ||||||||||||||||||
Other(1) | 6,225.8 | 4.57 | 6,349.6 | 4.30 | 6,358.8 | 2.61 | ||||||||||||||||||
Interest-Bearing Liabilities | Ps. | 18,894.0 | 8.79 | % | Ps. | 19,437.8 | 9.24 | % | Ps. | 18,294.0 | 5.71 | % | ||||||||||||
Current accounts | 658.8 | 3.19 | 615.0 | 2.49 | 434.0 | 1.11 | ||||||||||||||||||
Saving accounts | 1,789.3 | 0.25 | 1,388.0 | 0.34 | 1,034.5 | 0.41 | ||||||||||||||||||
Time deposits | 5,297.9 | 7.84 | 4,119.1 | 5.99 | 3,317.5 | 4.05 | ||||||||||||||||||
Argentine Central Bank(2) | 6,083.1 | 12.65 | 8,341.6 | 14.11 | 8,165.6 | 8.56 | ||||||||||||||||||
Debt securities | 3,432.4 | 8.59 | 3,528.6 | 6.63 | 3,190.6 | 0.87 | ||||||||||||||||||
Other interest-bearing liabilities | 1,632.5 | 9.48 | 1,445.5 | 8.16 | 2,151.8 | 8.14 | ||||||||||||||||||
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As of December 31, | ||||||||||||||||||||||||
2006 | 2005 | 2004 | ||||||||||||||||||||||
Average | Average | Average | ||||||||||||||||||||||
Balance | Rate | Balance | Rate | Balance | Rate | |||||||||||||||||||
(in millions of pesos, except rates) | ||||||||||||||||||||||||
Spread and Net Yield | ||||||||||||||||||||||||
Interest spread, nominal basis(3) | 0.05 | % | 1.36 | % | 0.35 | % | ||||||||||||||||||
Net yield on interest-earning assets(4) | 1.21 | 2.38 | 1.02 | |||||||||||||||||||||
Financial margin(5) | 1.74 | 2.53 | 1.08 | |||||||||||||||||||||
(1) | Includes amounts corresponding to the Compensatory Bond and the Hedge Bond. | |
(2) | Includes the financial assistance from the Argentine Central Bank and the advance to be granted by the Argentine Central Bank for the subscription of the Hedge Bond. | |
(3) | Reflects the difference between the average nominal interest rate on interest-earning assets and the average nominal interest rate on interest-bearing liabilities. Interest rates include the CER adjustment. | |
(4) | Net interest earned divided by average interest-earning assets. Interest rates include the CER adjustment. | |
(5) | Represents net financial income, divided by average interest-earning assets. |
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Fiscal Year Ended | ||||||||||||
December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
(in percentages) | ||||||||||||
Total Deposits | 6.18 | % | 5.93 | % | 5.18 | % | ||||||
Private-Sector Deposits | ||||||||||||
Total | 8.43 | 7.96 | 7.07 | |||||||||
Deposits in Current and Savings Accounts and Non-Restructured Time Deposits | 8.86 | 8.39 | 7.45 | |||||||||
Total Loans | 8.13 | 9.80 | 9.16 | |||||||||
Private-Sector Loans | 7.21 | % | 7.33 | % | 6.43 | % | ||||||
(*) | Banco de Galicia y Buenos Aires S.A., only, within the Argentine financial system. Based on daily information on deposits and loans prepared by the Argentine Central Bank using-end of month balances. |
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Fiscal Year Ended | ||||||||||||
December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
(in millions of pesos) | ||||||||||||
Interest on deposits | Ps. | 346.1 | Ps. | 172.3 | Ps. | 115.7 | ||||||
Negotiable Obligations | 314.8 | 234.1 | 122.3 | |||||||||
Expenses from Government and Corporate Securities, Net | — | — | 7.0 | |||||||||
Contributions and taxes | 68.6 | 48.8 | 48.8 | |||||||||
CER adjustment | 697.7 | 1,006.8 | 501.8 | |||||||||
Other(1) | 444.4 | 383.9 | 371.8 | |||||||||
Total | Ps. | 1,871.6 | Ps. | 1,845.9 | Ps. | 1,167.4 | ||||||
(1) | Includes accrued interest on liabilities resulting from financial brokerage with banks and international entities and premiums payable on repos. |
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Fiscal Year Ended | % Change | |||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
2006 | 2005 | 2004 | 2006/2005 | 2005/2004 | ||||||||||||||||
(in millions of pesos) | (in percentages) | |||||||||||||||||||
Income from | ||||||||||||||||||||
Credit cards | Ps. | 473.6 | Ps. | 361.5 | Ps. | 315.1 | 31.0 | % | 14.7 | % | ||||||||||
Deposits accounts | 125.7 | 102.7 | 80.3 | 22.4 | 27.9 | |||||||||||||||
Credit-related fees | 19.4 | 19.6 | 21.6 | (1.0 | ) | (9.3 | ) | |||||||||||||
Check collection | 18.3 | 12.4 | 10.1 | 47.6 | 22.8 | |||||||||||||||
Collection services (taxes and utility bills) | 11.2 | 9.5 | 8.3 | 17.9 | 14.5 | |||||||||||||||
Foreign trade | 31.9 | 24.5 | 19.9 | 30.2 | 23.1 | |||||||||||||||
Insurance | 48.9 | 34.4 | 27.3 | 42.2 | 26.0 | |||||||||||||||
Other (1) | 124.1 | 81.1 | 46.5 | 53.0 | 74.4 | |||||||||||||||
Total Income | Ps. | 853.1 | Ps. | 645.7 | Ps. | 529.1 | 32.1 | % | 22.0 | % | ||||||||||
Total Expenses | Ps. | 181.1 | Ps. | 122.0 | Ps. | 92.8 | 48.4 | % | 31.5 | % | ||||||||||
Net Income from Services | Ps. | 672.0 | Ps. | 523.7 | Ps. | 436.3 | 28.3 | % | 20.0 | % | ||||||||||
(1) | Includes fees from market making in government securities, investment banking activities, asset management, safe deposit boxes and cash management. |
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% Change | ||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
Credit Cards | 2006 | 2005 | 2004 | 2006/2005 | 2005/2004 | |||||||||||||||
(number of credit cards, except purchases in millions of pesos) | (percentages) | |||||||||||||||||||
Visa | 721,105 | 578,211 | 492,918 | 24.7 | 17.3 | |||||||||||||||
“Gold” | 124,287 | 102,669 | 81,445 | 21.1 | 26.1 | |||||||||||||||
International | 387,485 | 299,269 | 278,298 | 29.5 | 7.5 | |||||||||||||||
Domestic | 198,409 | 169,434 | 131,106 | 17.1 | 29.2 | |||||||||||||||
“Business” | 10,877 | 6,839 | 2,069 | 59.0 | 230.5 | |||||||||||||||
“Corporate” | 47 | — | — | — | — | |||||||||||||||
American Express | 131,660 | 94,869 | 89,307 | 38.8 | 6.2 | |||||||||||||||
“Gold” | 56,563 | 43,834 | 37,781 | 29.0 | 16.0 | |||||||||||||||
International | 75,097 | 51,035 | 51,526 | 47.1 | (1.0 | ) | ||||||||||||||
MasterCard | 41,271 | 13,993 | 3,231 | 194.9 | 333.1 | |||||||||||||||
“Gold” | 10,437 | 2,987 | 474 | 249.4 | 530.2 | |||||||||||||||
MasterCard | 29,765 | 10,817 | 2,704 | 175.2 | 300.0 | |||||||||||||||
Argencard | 1,069 | 189 | 53 | 465.6 | 256.6 | |||||||||||||||
Regional Credit-Card Companies | 3,399,375 | 2,444,526 | 1,905,423 | 39.1 | 28.3 | |||||||||||||||
Visa | 1,068,702 | 594,802 | 394,619 | 79.7 | 50.7 | |||||||||||||||
Mastercard | 122,683 | — | — | — | — | |||||||||||||||
Local Brands | 2,207,990 | 1,849,724 | 1,510,804 | 19.4 | 22.4 | |||||||||||||||
Total | 4,293,411 | 3,131,599 | 2,490,879 | 37.1 | 25.7 | |||||||||||||||
Amount of Purchases(in millions of pesos) | 8,029.7 | 4,943.6 | 3,720.1 | 62.4 | 32.9 | |||||||||||||||
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Fiscal Year Ended | % Change | |||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
2006 | 2005 | 2004 | 2006/2005 | 2005/2004 | ||||||||||||||||
(in millions of pesos) | (in percentages) | |||||||||||||||||||
Salaries and social security contributions | Ps. | 415.4 | Ps. | 330.5 | Ps. | 242.0 | 25.7 | % | 36.6 | % | ||||||||||
Property-related expenses | 65.1 | 57.7 | 55.6 | 12.8 | 3.8 | |||||||||||||||
Personnel services | 46.6 | 30.0 | 27.0 | 55.3 | 11.1 | |||||||||||||||
Advertising and publicity | 84.5 | 68.2 | 37.8 | 23.9 | 80.4 | |||||||||||||||
Amount accrued in relation to directors’ and syndics’ compensation | 6.0 | 5.8 | 4.1 | 3.4 | 41.5 | |||||||||||||||
Electricity and communications | 41.1 | 31.1 | 27.0 | 32.2 | 15.2 | |||||||||||||||
Taxes | 50.5 | 37.4 | 40.9 | 35.0 | (8.6 | ) | ||||||||||||||
Other | 265.4 | 220.3 | 189.5 | 20.5 | 16.3 | |||||||||||||||
Total | Ps. | 974.6 | Ps. | 781.0 | Ps. | 623.9 | 24.8 | % | 25.2 | % | ||||||||||
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• | “Normal” and “Normal Performance” | ||
• | “Potential Risk” and “Improper Fulfillment” |
December 31, 2006 | December 31, 2005 | December 31, 2004 | ||||||||||||||||||||||
High | Low | High | Low | High | Low | |||||||||||||||||||
(in millions of pesos) | ||||||||||||||||||||||||
Performing Commercial Loans | Ps. | 174.9 | Ps. | 2.3 | Ps. | 193.1 | Ps. | 2.1 | Ps. | 159.7 | Ps. | 1.7 | ||||||||||||
Performing Consumer Loans | 57.9 | 46.7 | 30.3 | 22.2 | 15.4 | 11.1 | ||||||||||||||||||
• | “Defective Fulfillment” | ||
• | “Difficulty in Recovery” | ||
• | “Uncollectible” |
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December 31, 2006 | December 31, 2005 | December 31, 2004 | ||||||||||||||||||||||
High | Low | High | Low | High | Low | |||||||||||||||||||
(in millions of pesos) | ||||||||||||||||||||||||
Non-Performing Consumer Loans | Ps. | 58.9 | Ps. | 47.5 | Ps. | 48.6 | Ps. | 36.3 | Ps. | 45.3 | Ps. | 37.0 | ||||||||||||
• | “With Problems” | ||
• | “High Risk of Insolvency” | ||
• | “Uncollectible” |
December 31, 2006 | December 31, 2005 | December 31, 2004 | ||||||||||||||||||||||
High | Low | High | Low | High | Low | |||||||||||||||||||
(in millions of pesos) | ||||||||||||||||||||||||
Performing Commercial Loans | Ps. | 174.9 | Ps. | 2.3 | Ps. | 193.1 | Ps. | 2.1 | Ps. | 159.7 | Ps. | 1.7 | ||||||||||||
Performing Consumer Loans | 57.9 | 46.7 | 30.3 | 22.2 | 15.4 | 11.1 | ||||||||||||||||||
Non-Performing Consumer Loans | Ps. | 58.9 | Ps. | 47.5 | Ps. | 48.6 | Ps. | 36.3 | Ps. | 45.3 | Ps. | 37.0 | ||||||||||||
Non-Performing Commercial Loans | 291.9 | 291.9 | 397.9 | 397.9 | 379.5 | 379.5 | ||||||||||||||||||
Total | Ps. | 583.7 | Ps. | 388.4 | Ps. | 669.9 | Ps. | 458.5 | Ps. | 599.9 | Ps. | 429.3 | ||||||||||||
Loan Loss Reserve under U.S. GAAP | Ps.470.5 | Ps.533.4 | Ps.592.3 | |||||||||||||||||||||
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• | Loan loss reserves as a percentage of non-accrual loans, | ||
• | Loan loss reserves as a percentage of total amounts past due, and | ||
• | Loan loss reserves as a percentage of past-due unsecured amounts. |
December 31, 2006 | December 31, 2005 | December 31, 2004 | ||||||||||
Loan loss reserves as a percentage of non-accrual loans | 168.58 | % | 139.49 | % | 84.75 | % | ||||||
Loan loss reserves as a percentage of total amounts past due | 183.29 | 208.36 | 131.92 | |||||||||
Loan loss reserves as a percentage of past-due unsecured amounts | 210.51 | 226.98 | 457.02 | |||||||||
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Net Income (Loss) | Shareholders’ Equity (Deficit) | |||||||||||||||
Argentine Banking | Argentine Banking | |||||||||||||||
GAAP | U.S. GAAP | GAAP | U.S. GAAP | |||||||||||||
(in millions of pesos) | ||||||||||||||||
Fiscal Year 2006 | (18.9 | ) | 3,524.9 | 1,608.5 | 145.8 | |||||||||||
Fiscal Year 2005 | 107.2 | 731.0 | 1,626.8 | (2,128.3 | ) | |||||||||||
Fiscal year 2004 | (109.9 | ) | (1.1 | ) | 1,519.5 | (3,195.7 | ) | |||||||||
• | Significant losses were recognized in 2001 from the effects of several Government actions reflected at the end of that year. With the improvement in the Argentine economy and business environment, changes in estimated losses are reflected in the income statement and under other comprehensive income 2004, 2005 and 2006. | ||
• | The Hedge Bond and the liability with the Argentine Central Bank for its purchase are not recognized under US GAAP in 2004 and 2005, the net effect of which varies significantly in such years, while they were recognized in 2006. | ||
• | The Compensatory Bond in 2005 (since this Bond was received in full in that year) and the amounts receivable for this Bond in 2004 are reflected at market values, with changes in values being recognized under other comprehensive income, the effect of which varies significantly in 2004 and 2005. | ||
• | Much of the Argentine public-sector debt balances reflect market-value adjustments recognized from exchange transactions. Accretion of the discount, considering the amounts estimated to be collected, is recognized as income after the exchange transaction occurred. | ||
• | Bogar Bonds and Discount Bonds are reflected at market values, with changes from market values at the time of exchange being recognized as other comprehensive income. With the improvement in the Argentine economy, market values have varied significantly. In addition, during 2006, we sold a significant amount of Bogar Bonds, realizing all the gains related to changes in the market value of these bonds in prior years that were recorded in other comprehensive income. | ||
• | The Bank’s foreign debt restructuring completed in 2004 was accounted as a troubled debt restructuring. Therefore the carrying value of such debt is higher under U.S. GAAP and no gain was recognized at the time of the restructuring. |
– | the “Grupo Financiero Galicia” segment showing our specific income and expenses on a stand-alone basis, not attributable to our investments in subsidiaries, except for goodwill amortization; | ||
– | the “Insurance” segment, corresponding to Sudamericana’s consolidated results of operations (including the 12.5% interest owned by the Bank); | ||
– | the “Other Grupo Businesses” segment representing the results of operations of Net Investment consolidated and Galicia Warrants (in both cases, including the results of the 12.5% interests of the Bank), and Galval; and |
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– | Banco Galicia’s operating segments (see below). |
• | the geographical location of each branch or business, or “unit;” | ||
• | the similarity of the businesses conducted with or the services provided to Banco Galicia’s customers; and | ||
• | the existence of homogeneous groups of customers to which products and services are provided. |
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As of December 31, | ||||||||||||||||||||||||
2006 | % | 2005 | % | 2004 | % | |||||||||||||||||||
(in millions of pesos, except percentages) | ||||||||||||||||||||||||
Cash and due from banks | Ps. | 2,294.8 | 9.7 | Ps. | 1041.2 | 4.1 | Ps. | 988.7 | 4.2 | |||||||||||||||
Government and corporate securities | 3,188.6 | 13.5 | 5,971.8 | 23.3 | 5,534.1 | 23.4 | ||||||||||||||||||
Loans | 10,514.6 | 44.5 | 10,555.2 | 41.2 | 8,438.2 | 35.7 | ||||||||||||||||||
Hedge Bond to be acquired | 401.3 | 1.7 | 4,155.0 | 16.2 | 4,732.3 | 20.0 | ||||||||||||||||||
Other receivables — Argentine Central Bank | 1,733.3 | 7.3 | — | — | — | — | ||||||||||||||||||
Other assets | 5,501.6 | 23.3 | 3,912.5 | 15.2 | 3,957.3 | 16.7 | ||||||||||||||||||
Total | Ps. | 23,634.2 | 100.0 | % | Ps. | 25,635.7 | 100.0 | % | Ps. | 23,650.6 | 100.0 | % | ||||||||||||
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– | Ps.974.0 million of forward purchases of Boden 2012 Bonds in connection with repo transactions. | ||
– | Ps.896.8 million recorded under “Bank Premises and Equipment,” “Miscellaneous Assets” and “Intangible Assets,” excluding from the latter the deferred losses fromamparoclaims. | ||
– | Ps.714.1 million of forward purchases of Discount Bonds in Pesos in connection with repo transactions. | ||
– | Ps.571.6 million corresponding to our holdings of debt securities and participation certificates issued by the Galtrust I Financial Trust, resulting from the securitization of loans to the provincial public sector in late 2000. | ||
– | Ps.367.3 million recorded as an intangible asset, which reflected losses due to the difference between the amount paid to depositors (the deposit’s original contractual amount, collected by depositors in US dollars or at the free market exchange rate) as a consequence ofamparoclaims, and the amount established by the pesification rules (conversion at the Ps.1.40 per US dollar exchange rate, plus CER adjustment and interest), net of the accumulated amortization, plus the amount of deferred amortization. | ||
– | Ps.357.1 million corresponding to holdings of the participation certificate in and debt securities of the special fund (referred to as the “Special Fund Former Almafuerte Bank”) jointly formed by the Bank with other private-sector banks in order to facilitate the recovery of the assets of former Almafuerte Bank. | ||
– | Ps.236.7 million corresponding to participation certificates in and debt securities of different financial trusts. | ||
– | Ps.206.2 million corresponding to “Assets under Financial Leases”. | ||
– | Ps.138.2 million corresponding to balances deposited at the Argentine Central Bank as guarantees in favor of clearing houses. |
As of December 31, | ||||||||
2006 | 2005 | |||||||
(in millions of pesos) | ||||||||
Net Position in Government Securities | Ps. | 4,832.7 | Ps. | 6,041.0 | ||||
Trading and Investment Accounts | 164.3 | 462.0 | ||||||
Fiscal Credit Certificates | — | 34.5 | ||||||
Boden 2012 Bonds (Compensatory Bond) | 3,582.9 | 987.9 | ||||||
Bogar Bonds | 366.5 | 3,823.3 | ||||||
Discount Bonds and GDP-Linked Units | 719.0 | 733.3 | ||||||
Loans | Ps. | 2,846.7 | Ps. | 5,341.7 | ||||
Financial Sector | 107.4 | 105.9 | ||||||
Secured Loans | 2,739.3 | 5,235.8 | ||||||
Other Receivables Resulting from Financial Brokerage | Ps. | 1,218.6 | Ps. | 5,031.8 | ||||
Boden 2012 Bonds (Hedge Bond) | 401.3 | 4,155.0 | ||||||
Trusts’ Certificates of Participation and Securities | 817.3 | 876.8 | ||||||
Total Assets(1) | Ps. | 8,898.0 | Ps. | 16,414.5 | ||||
Liabilities with the Argentine Central Bank | Ps. | 3,026.0 | Ps. | 8,611.9 | ||||
Net Exposure | Ps. | 5,872.0 | Ps. | 7,802.6 | ||||
Does not include deposits with the Argentine Central Bank, which constitute one of the items by which the Bank complies with the Argentine Central Bank’s minimum cash requirements. |
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December 31, | ||||
2006 | ||||
(in millions of pesos) | ||||
Commitments to extend credit | Ps. | 624.8 | ||
Standby letters of credit | 129.0 | |||
Guarantees granted | 123.8 | |||
Acceptances | 35.4 | |||
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December 31, | ||||
2006 | ||||
(in millions of pesos) | ||||
Preferred counter guarantees | Ps. | 32.8 | ||
Other counter guarantees | 21.6 | |||
December 31, | ||||
2006 | ||||
(in millions of pesos) | ||||
Checks drawn on the Bank | Ps. | 163.0 | ||
Checks drawn on other banks | 187.4 | |||
Bills and other items for collection | 1,184.4 | |||
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December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
(in millions of pesos) | ||||||||||||
Deposits(1) (2) | Ps. | 10,779.4 | Ps. | 8,421.7 | Ps. | 6,756.9 | ||||||
Debt(1) | ||||||||||||
Argentine Central Bank | ||||||||||||
Financial assistance | 2,688.7 | 5,314.9 | 5,707.0 | |||||||||
Advance for the acquisition of the Hedge Bond | 336.8 | 3,296.6 | 2,720.7 | |||||||||
International banks and credit agencies | 870.5 | 784.6 | 789.3 | |||||||||
Repos | 1,033.5 | 220.5 | 223.7 | |||||||||
Domestic financial institutions | 287.7 | 227.9 | 199.2 | |||||||||
Debt securities(1) | 3,676.0 | 3,569.6 | 3,802.5 | |||||||||
Total(1) | 8,893.2 | 13,414.1 | 13,442.4 | |||||||||
Shareholders’ Equity | 1,608.5 | 1,626.8 | 1,519.5 | |||||||||
Total Funding | Ps. | 21,281.1 | Ps. | 23,462.6 | Ps. | 21,718.8 | ||||||
(1) | Includes accrued interest and exchange differences payable, as well as the CER adjustment where applicable. | |
(2) | Includes Reprogrammed Deposits with amparo claims. In 2004, also includes Cedros. |
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– | Ps.118.4 million in negotiable obligations issued by the Bank in Argentina as part of the restructuring of the liabilities of its former New York Branch, a process that took place in 2002. | ||
– | Ps.157.7 million in negotiable obligations issued by Galicia Uruguay to restructure its deposits, securities that were issued either in connection with the original restructuring or the exchange offers subsequently made by Galicia Uruguay to its customers. | ||
– | Ps.942.0 million and Ps.1,083.8 million in 2010 and 2014 Notes, respectively, and Ps.777.6 million in subordinated negotiable obligations maturing in 2019, all of them issued in 2004 and corresponding to new debt of the Bank resulting from the foreign debt restructuring completed in May of said year. | ||
– | Ps.30.5 million in negotiable obligations maturing in 2007, issued by Tarjeta Naranja S.A. (III Class) in 2006. | ||
– | Ps.13.5 million in foreign debt past due, included in our 2004 debt restructuring, the holders of which did not participate in such restructuring. |
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Annual | Less than | 1 to 3 | 3 to 5 | Over 5 | ||||||||||||||||||||||||
Maturity | Interest Rate | Total | 1 Year | Years | Years | Years | ||||||||||||||||||||||
Banco Galicia: | ||||||||||||||||||||||||||||
Bonds | ||||||||||||||||||||||||||||
Floating Rate Notes Due 2010(1) (3) (4) | 2010 | Libor + 350 b.p. | Ps. | 986.3 | Ps. | 313.4 | Ps. | 538.3 | Ps. | 134.6 | — | |||||||||||||||||
Step-Up Notes Due 2014(1) (3) (5) | 2014 | 5.0 | % | 1,111.3 | 27.5 | — | 481.7 | 602.1 | ||||||||||||||||||||
Subordinated Notes Due 2019(1) (6) | 2019 | 11.0 | % | 777.6 | 39.4 | — | — | 738.2 | ||||||||||||||||||||
9% Notes Due 2003(7) | 2003 | 9.0 | % | 19.8 | 19.8 | — | — | — | ||||||||||||||||||||
7.875% Notes Due 2007(2) (8) | 2007 | 7.9 | % | 76.7 | 76.7 | — | ��� | — | ||||||||||||||||||||
7th Series Floating Rate Notes Due 2007(2) (8) | 2007 | Libor + 400 b.p. | 45.9 | 45.9 | — | — | — | |||||||||||||||||||||
Loans | ||||||||||||||||||||||||||||
Floating Rate Loans Due 2010 (1) (3) (4) | 2010 | Libor + 350 b.p. | 130.8 | 41.5 | 71.4 | 17.9 | — | |||||||||||||||||||||
Floating Rate Loans Due 2014 (1) (3) (5) | 2014 | Libor + 85 b.p. | 258.2 | 8.3 | — | 111.1 | 138.8 | |||||||||||||||||||||
Floating Rate Loans Due 2019(1) (9) | 2019 | Libor + 578 b.p. | 42.8 | 2.4 | — | — | 40.4 | |||||||||||||||||||||
Step-Up Loans Due 2014(1) (3) (5) | 2014 | 5.0 | % | 298.3 | 7.5 | — | 129.2 | 161.6 | ||||||||||||||||||||
Other Financial Loans | Various | Various | 60.2 | 46.6 | 10.6 | 3.0 | — | |||||||||||||||||||||
IFC Financial Loan | Various | Libor + 350 b.p. | 79.8 | 58.9 | 15.3 | 2.8 | 2.8 | |||||||||||||||||||||
BICE Loans (Pesos) | Various | CER + 4.0% | 30.8 | 22.9 | 7.9 | — | — | |||||||||||||||||||||
BICE Loans (Dollars)(10) | Various | 7.2 | % | 15.5 | 6.3 | 9.2 | — | — | ||||||||||||||||||||
Short-Term Interbank Loans | 2007 | 8.7 | % | 100.0 | 100.0 | — | — | — | ||||||||||||||||||||
Argentine Central Bank — Financial Assistance(11) | 2011 | CER + 2.0% | 2,688.7 | 468.6 | 2,220.1 | — | — | |||||||||||||||||||||
Argentine Central Bank — Advance for the Acquisition of the Hedge Bond(12) | 2012 | CER + 2.0% | 336.8 | 144.3 | 77.0 | 77.0 | 38.5 | |||||||||||||||||||||
Loan from Sedesa(13) | 2007 | Libor + 300 b.p. | 198.8 | 198.8 | — | — | — | |||||||||||||||||||||
Peso-Denominated Loan from FFRE(14) | 2008 | CER + 8.0% | 8.7 | 4.4 | 4.3 | — | — | |||||||||||||||||||||
Dollar-Denominated Loan from FFRE(14) | 2008 | 8.1 | % | 14.2 | 7.1 | 7.1 | — | — | ||||||||||||||||||||
Repos (Pesos)(15) | 2007 | Various | 524.5 | 524.5 | — | — | — | |||||||||||||||||||||
Repos (Dollars)(15) | 2007 | Various | 509.0 | 509.0 | — | — | — | |||||||||||||||||||||
Galicia Uruguay: | ||||||||||||||||||||||||||||
Negotiable Obligations(16) | Various | Various | 158.6 | 27.5 | 60.7 | 70.4 | — | |||||||||||||||||||||
Tarjetas Regionales S.A.: | ||||||||||||||||||||||||||||
Financial Loans with Local Banks | Various | Various | 142.2 | 120.2 | 22.0 | — | — | |||||||||||||||||||||
Negotiable Obligations | Various | Various | 499.9 | 151.9 | 194.0 | 154.0 | — | |||||||||||||||||||||
Total | Ps. | 9,115.4 | Ps. | 2,973.4 | Ps. | 3,237.9 | Ps. | 1,181.7 | Ps. | 1,722.4 | ||||||||||||||||||
Principal and interest. Includes the CER adjustment, where applicable. | ||
(1) | Issued in 2004 as part of the restructuring of the foreign debt of the Bank’s Head Office and its Cayman Branch. | |
(2) | Issued in 2002 as part of the restructuring of the debt of the Bank’s former New York Branch. | |
(3) | Interest payable in cash, semiannually, on January 1 and July 1 of each year, beginning on July 1, 2004. | |
(4) | Principal amortizes semiannually, on January 1 and July 1 of each year, beginning on July 1, 2006, in eight equal installments of 12.5% of principal at issuance or incurrence, until maturity on January 1,2010, when the remaining 12.5% is due. | |
(5) | Principal amortizes semiannually, on January 1 and July 1 of each year, beginning on January 1, 2010, in eight equal installments of 11.11% of principal at issuance or incurrence, until maturity, when the remaining 11.12% is due. The rate increases 1% on January 1 of each year, until reaching 7% on January 1, 2008. | |
(6) | Interest paid in cash: 6% per annum from January 1, 2004 until (but not including) January 1, 2014, payable semiannually, on January 1 and July 1 of each year, beginning on July 1, 2004. Unless the notes are previously redeemed, the annual interest rate will increase to 11% per annum from that date until (but not including) January 1, 2019. Interest paid in additional subordinated negotiable obligations due 2019: 5% per annum from January 1, 2004, to be paid on January 1, 2014 and January 1, 2019. Principal amortizes in full on January 1, 2019, unless the notes are previously redeemed at par plus accrued but unpaid interest, in whole or in part, at the Bank’s option, at any time after the 2010 Notes and the 2014 Notes have been repaid in full and, otherwise, in accordance with the terms of the agreements governing such notes. | |
(7) | The balance represents debt not tendered by its holders to the exchange offered by the Bank to restructure its foreign debt, which was completed in May 2004. | |
(8) | Interest payable in cash, semiannually, in February and August of each year, beginning in February 2003. Principal amortizes in three equal annual installments, beginning on August 3, 2005, until maturity. |
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(9) | Interest payable in cash: Libor+78 basis points, per annum from January 1, 2004, until (but not including) January 1, 2014, payable semiannually, on January 1 and July 1 of each year, beginning on July 1, 2004. Unless the loans are previously redeemed, the annual interest rate will increase to Libor+578 basis points per annum from that date until (but not including) January 1, 2019. Also pays interest in additional subordinated loans, due 2019: 5% per annum from January 1, 2004, to be paid on January 1, 2014 and January 1, 2019. Principal amortizes in full on January 1, 2019 unless the loans are previously redeemed at part plus accrued interest and additional amounts, if any, in whole or in part at the Bank’s option, in accordance with the terms of the agreements governing such loans. | |
(10) | Includes: US$2.0 million of principal at incurrence that accrue Libor+400 basis points, with principal and interests payable in 48 equal installments on the 5th of every month, beginning in November 2003 until October 2007, and US$10.0 million of principal at incurrence accruing Libor+550 basis points, with interests payable semiannually, in May and November of each year, and. principal amortizing in 9 semiannual installments, beginning in May 2005 until May 2009. | |
(11) | Amortization of principal adjusted by the CER. This liability was paid in full as of March 2, 2007. | |
(12) | The terms and conditions of the advance from the Argentine Central Bank to acquire the Hedge Bond were established by Decree No. 905/02. Principal adjusted by the CER amortized in 8 equal and annual installments in August of each year, beginning in 2005, until August 2012. Interest was payable in August and February of each year, beginning in August 2002. This liability was extinguished after the close of fiscal year 2006 with the acquisition of the Hedge Bond through a swap for Secured Loans.. | |
(13) | Granted in 2002 as part of the Galicia capitalization and liquidity plan. | |
(14) | FFRE :” Fondo Fiduciario para la Reconstrucción de Empresas”. | |
(15) | Includes premiums. | |
(16) | Issued in 2002 as part of the restructuring of Galicia Uruguay’s deposits. Includes: |
• | 2% Negotiable Obligations Due 2011: principal amortizes in 9 equal annual installments in September of each year, beginning in September 2003, the first 2 installments of 15% of principal, and the remaining 7 of 10% of principal. Interest payable annually in September of each year, beginning in September 2003. | ||
• | Floating Rate (Libor+300 basis points, and a 7% cap) Negotiable Obligations Due 2011: principal amortizes in 3 annual installments in December of each year, beginning in December 2009, the first 2 installments of 30% of principal, and the remaining one of 40% of principal. Interest payable semiannually in June and December of each year, beginning in December 2003. | ||
• | 2% Negotiable Obligations Due 2008: principal amortizes in 3 annual installments in December of each year, beginning in December 2006, the first 2 installments of 30% of principal, and the remaining one of 40% of principal. Interest payable semiannually in June and December of each year, beginning in December 2003. |
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In millions of pesos(1) | ||||
2007 | 21.0 | |||
2008 | 25.7 | |||
2009 | 28.6 | |||
2010 | 31.1 | |||
2011 | 33.9 | |||
2012 and after | 37.0 | |||
Total | Ps. | 177.3 | ||
(1) | Future lease payments include the CER adjustment until December 31, 2006, only. |
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December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
(in millions of pesos) | ||||||||||||
Funds at the beginning of the fiscal year | Ps. | 1,041.2 | Ps. | 988.7 | Ps. | 826.2 | ||||||
Funds provided (used) by operating activities | 4,190.3 | 856.0 | (221.1 | ) | ||||||||
- Funds provided by the sale of or proceeds from government securities | 2,962.8 | 907.0 | 91.6 | |||||||||
- CER adjustment | 891.9 | (484.8 | ) | (26.5 | ) | |||||||
- Other | 335.6 | 433.8 | (286.2 | ) | ||||||||
Funds provided (used) by investment activities | (1,640.6 | ) | (767.5 | ) | (240.2 | ) | ||||||
- Funds to repay debt with the Argentine Central Bank (1) | (1,733.3 | ) | — | — | ||||||||
- Net increase/decrease in loans | 297.6 | (628.3 | ) | (112.4 | ) | |||||||
Loans to the private sector | (623.8 | ) | (634.9 | ) | (112.4 | ) | ||||||
Loans to the public sector | 921.4 | 6.6 | — | |||||||||
- Other | (204.9 | ) | (139.2 | ) | (127.8 | ) | ||||||
Funds provided (used) by financing activities | (1,302.4 | ) | (41.4 | ) | 618.3 | |||||||
- Net increase in deposits | 1,894.3 | 1,696.3 | 1,415.0 | |||||||||
- Funds provided/used by repos | 934.4 | (259.1 | ) | 261.7 | ||||||||
- Funds raised by the regional credit card companies | 418.0 | 179.2 | (107.2 | ) | ||||||||
- Payments on long-term debt | (656.5 | ) | (301.5 | ) | (207.6 | ) | ||||||
- Payments on long-term debt by Galicia Uruguay | (30.5 | ) | (117.0 | ) | (183.0 | ) | ||||||
- Payments on debt with the Argentine Central Bank | (4,034.7 | ) | (1,170.0 | ) | (453.8 | ) | ||||||
- Other | 172.6 | (69.3 | ) | (106.8 | ) | |||||||
Effect of exchange rate on cash and cash equivalents | 6.4 | 5.4 | 5.3 | |||||||||
Funds at the end of the fiscal year | Ps. | 2,294.9 | Ps. | 1,041.2 | Ps. | 988.7 | ||||||
(1) | Recorded under “Other Receivables Resulting from Financial Brokerage” as of Dec.31, 2006. |
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(i) | a Ps.1,894.3 million increase in cash generated by the increase in deposits, | |
(ii) | a Ps.934.4 million increase in cash generated by repo transactions (repurchase agreements), | |
(iii) | a Ps.418.0 million increase in long term credit facilities, representing funds obtained by the regional credit-card companies, | |
(iv) | a Ps.687.0 million net use of cash applied to payments on long-term liabilities, mainly corresponding to: (a) payments of interest on restructured debt for Ps.326.2 million, (b) payments of principal amortization on the 2007 Notes for Ps.118.5 million, (c) payments by the regional credit-card companies on their negotiable obligations for Ps.178.9 million, and (d) settlement by Galicia Uruguay of restructured debt, for Ps.30.5 million, and | |
(v) | a Ps.3,856.8 million net use of cash mainly attributable to: (a) payments on short-term borrowings, mainly on the financial assistance from the Argentine Central Bank, for Ps.2,665.0 million (including both scheduled payments and amounts settled in advance), and on the advance from such entity for the acquisition of the Hedge Bond for Ps.1,369.7 million, (b) an increased extension of short-term call |
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loans to local banks for Ps.75.5 million and (c) an increase in financing from the IFC for Ps.64.0 million. |
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As of December 31, 2006(1) | ||||||||||||||||||||
Less than | ||||||||||||||||||||
one Year | 1-5 Years | 5-10 Years | Over 10 Years | Total | ||||||||||||||||
(in millions of pesos, except ratios) | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash and Due from Banks | 799.0 | — | — | — | 799.0 | |||||||||||||||
Argentine Central Bank — Escrow Accounts | 1,632.9 | — | — | — | 1,632.9 | |||||||||||||||
Overnight Placements | 608.0 | — | — | — | 608.0 | |||||||||||||||
Loans — Public Sector | 173.6 | 2,578.9 | 1.7 | — | 2,754.2 | |||||||||||||||
Loans — Private Sector | 5,607.0 | 1,169.5 | 191.4 | 19.8 | 6,987.7 | |||||||||||||||
Government Securities | 1,272.8 | 2,339.0 | 779.1 | 64.9 | 4,455.8 | |||||||||||||||
Negotiable Obligations and Corporate Securities | 3.1 | 12.2 | 8.7 | — | 24.0 | |||||||||||||||
Financial Trusts | 104.7 | 266.8 | 457.8 | 161.9 | 991.2 | |||||||||||||||
Special Fund Former Almafuerte Bank | 143.9 | 208.2 | — | — | 352.1 | |||||||||||||||
Assets under Financial Lease | 67.4 | 137.0 | 1.8 | — | 206.2 | |||||||||||||||
Other — Argentine Central Bank(1) | 1,733.3 | — | — | — | 1,733.3 | |||||||||||||||
Total Assets | 12,145.7 | 6,711.6 | 1,440.5 | 246.6 | 20,544.4 | |||||||||||||||
Liabilities | ||||||||||||||||||||
Saving Accounts | 2,585.9 | — | — | — | 2,585.9 | |||||||||||||||
Demand Deposits | 2,183.5 | — | — | — | 2,183.5 | |||||||||||||||
Time Deposits | 5,666.7 | 231.2 | 0.1 | — | 5,898.0 | |||||||||||||||
Argentine Central Bank | 2,310.4 | 640.8 | 38.5 | — | 2,989.7 | |||||||||||||||
Negotiable Obligations | 563.6 | 1,792.9 | 784.6 | 749.8 | 3,890.9 | |||||||||||||||
International Banks and Credit Agencies | 149.3 | 358.3 | 311.8 | 40.4 | 859.8 | |||||||||||||||
Domestic Banks | 251.4 | 39.2 | — | — | 290.6 | |||||||||||||||
Other Liabilities(2) | 2,398.8 | 13.7 | 0.2 | — | 2,412.7 | |||||||||||||||
Total Liabilities | 16,109.6 | 3,076.1 | 1,135.2 | 790.2 | 21,111.1 | |||||||||||||||
Asset / Liability Gap | (3,963.9 | ) | 3,635.5 | 305.3 | (543.6 | ) | (566.7 | ) | ||||||||||||
Cumulative Gap | (3,963.9 | ) | (328.4 | ) | (23.1 | ) | (566.7 | ) | (566.7 | ) | ||||||||||
Ratio of Cumulative Gap to Cumulative Liabilities | (24.6 | )% | (1.7 | )% | (0.1 | )% | (2.7 | )% | ||||||||||||
Ratio of Cumulative Gap to Total Liabilities | (18.8 | )% | (1.6 | )% | (0.1 | )% | (2.7 | )% | ||||||||||||
Principal plus CER adjustment. Does not include interest. | ||
(1) | Corresponds to the proceeds from the sale of Secured Loans made in December 2006, which were applied, on January 3, 2007, to the settlement of the same amount of financial assistance from the Argentine Central Bank. It is shown in the first bucket (as well as the liability settled with those funds on January 3, 2007) even though the bucket that would have corresponded contractually, as of December 31, 2006, to the asset and the liability settled is the second bucket, because these funds were actually used to settle the liability on January 3. | |
(2) | Includes, mainly, debt with retailers due to credit-card operations, liabilities in connection with repo transactions, debt with domestic credit agencies and collections for third parties. The “Less than One Year” bucket also includes Ps.13.5 million corresponding to the Bank’s foreign debt not tendered by its holders in the exchange offered to restructure such foreign debt, which was completed in May 2004. |
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As of December 31, 2006 | ||||
(in millions of pesos) | ||||
Legal Requirement | Ps. | 1,856.9 | ||
Excess Liquidity | 1,045.2 | |||
Total Liquidity (1) | Ps. | 2,902.1 | ||
(1) | Excludes cash of Galicia Uruguay, the Cayman Branch, and other related companies. |
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As of December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
(in millions of pesos, except ratios, multiples and percentages) | ||||||||||||
Shareholders’ Equity | Ps. | 1,608.5 | Ps. | 1,626.8 | Ps. | 1,519.5 | ||||||
Shareholders’ Equity as a Percentage of Total Assets | 6.81 | % | 6.35 | % | 6.42 | % | ||||||
Total Liabilities as a Multiple of Total Shareholders’ Equity | 13.69 | x | 14.76 | x | 14.56 | x | ||||||
Tangible Shareholders’ Equity(1) as a Percentage of Total Assets | 4.68 | % | 4.43 | % | 3.73 | % | ||||||
Total Capital Ratio | na | (2) | na | na | ||||||||
Excess Capital over Required Minimum Capital | na | na | na | |||||||||
(1) | Tangible shareholders’ equity represents shareholders’ equity minus intangible assets. | |
(2) | Not applicable. |
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Principal | Current | |||||||||
Name | Position | Date of Birth | Occupation | Member Since | Term Ends | |||||
Antonio Garcés | Chairman of the Board and Chief Executive Officer | May 30, 1942 | Banker | April 2002 | December 2007 | |||||
Federico Braun | Vice Chairman | February 4, 1948 | Businessman | September 1999 | December 2007 | |||||
Abel Ayerza | Director | May 27, 1939 | Businessman | September 1999 | December 2008 | |||||
Eduardo Escasany | Director | June 30, 1950 | Businessman | April 2005 | December 2009 | |||||
Enrique Martin | Director | October 19, 1945 | Businessman | April 2006 | December 2008 | |||||
Luis Oddone | Director | May 11, 1938 | Businessman | April 2005 | December 2009 | |||||
Pedro Richards | Director | November 14, 1952 | Businessman | April 2005 | December 2009 | |||||
Silvestre Vila Moret | Director | April 26, 1971 | Businessman | June 2002 | December 2007 | |||||
Eduardo Zimmermann | Director | January 3, 1931 | Businessman | April 2000 | December 2008 | |||||
Pablo Gutierrez | Alternate Director | December 9, 1959 | Banker | April 2003 | December 2008 | |||||
María Ofelia Hordeñana de Escasany | Alternate Director | December 30, 1920 | Businesswoman | April 2000 | December 2007 | |||||
Sergio Grinenco | Alternate Director | May 26, 1948 | Banker | April 2003 | December 2008 | |||||
Alejandro Rojas Lagarde | Alternate Director | July 17, 1937 | Lawyer | April 2000 | December 2008 | |||||
Luis Monsegur | Alternate Director | August 15, 1936 | Accountant | April 2000 | December 2007 | |||||
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Principal | Current Term | |||||
Name | Position | Occupation | Ends | |||
Norberto Corizzo | Syndic | Accountant | December 2007 | |||
Raúl Estevez | Syndic | Accountant | December 2007 | |||
Adolfo Melián | Syndic | Lawyer | December 2007 | |||
Miguel Armando | Alternate Syndic | Lawyer | December 2007 | |||
Fernando Noetinger | Alternate Syndic | Lawyer | December 2007 | |||
Horacio Tedín | Alternate Syndic | Lawyer | December 2007 | |||
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Date of | Principal | Member | Current Term | |||||||
Name | Position | Birth | Occupation | Since | Ends | |||||
Antonio R. Garcés | Chairman of the Board Vice Chairman and | May 30, 1942 | Banker | September 2001 | December 2008 | |||||
Sergio Grinenco | Chief Financial Officer | May 26, 1948 | Banker | April 2003 | December 2008 | |||||
Enrique M. Garda Olaciregui | Director and Secretary | April 29, 1946 | Banker | April 2003 | December 2007 | |||||
Daniel A. Llambías | Director | February 8, 1947 | Banker | September 2001 | December 2009 | |||||
Luis M. Ribaya | Director | July 17, 1952 | Banker | September 2001 | December 2007 | |||||
Guillermo J. Pando | Director | October 23, 1948 | Banker | April 2003 | December 2007 | |||||
Pablo Gutierrez | Director | December 9, 1959 | Banker | April 2005 | December 2008 | |||||
Eduardo O. Del Piano(1) | Director | May 12, 1938 | Accountant | April 2004 | December 2009 | |||||
Pablo M. Garat(1) | Director | January 12, 1953 | Lawyer | April 2004 | December 2009 | |||||
Eduardo A. Fanciulli | Alternate Director | April 10, 1951 | Banker | September 2001 | December 2009 | |||||
Raúl Héctor Seoane | Alternate Director | July 18, 1953 | Banker | April 2005 | December 2008 | |||||
Juan C. Fossatti(2) | Alternate Director | September 11, 1955 | Lawyer | June 2002 | December 2008 | |||||
Osvaldo H. Canova(2) | Alternate Director | December 8, 1934 | Accountant | April 2004 | December 2009 | |||||
Julio P. Naveyra(2) | Alternate Director | March 24, 1941 | Accountant | April 2004 | December 2009 | |||||
(1) | In accordance with the rules of the CNV, and pursuant to the classifications adopted by the CNV, Messrs. Eduardo O. Del Piano and Pablo M. Garat are independent and were reelected at the ordinary shareholders’ meeting held on April 26, 2007. The Board of Directors’ meeting held on April 27, 2007 reelected them as members of the audit committee. Messrs. Del Piano and Garat are also independent directors in accordance with the new Nasdaq rules. | |
(2) | In accordance with the rules of the CNV, and pursuant to the classifications adopted by the CNV, Mr. Fossatti, Mr. Canova and Mr. Naveyra are independent alternate directors. They would replace the independent directors in case of vacancy. They are also independent directors in accordance with the new Nasdaq rules. |
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Division | Manager | |
Wholesale Banking | Juan Miguel Woodyatt | |
Retail Banking | Daniel A. Llambías (in charge) | |
Treasury | To be appointed | |
Distribution | Juan Sarquís | |
Credit | Juan Carlos L’Afflitto | |
Corporative Services | Miguel Angel Peña | |
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Year of | Principal | |||||||||
Name | Appointment | Position | Occupation | Current Term Ends | ||||||
Adolfo Héctor Melián | 2007 | Syndic | Lawyer | December 31, 2007 | ||||||
Norberto Daniel Corizzo | 2007 | Syndic | Accountant | December 31, 2007 | ||||||
Raúl Estevez | 2007 | Syndic | Accountant | December 31, 2007 | ||||||
Fernando Noetinger | 2007 | Alternate Syndic | Lawyer | December 31, 2007 | ||||||
Miguel N. Armando | 2007 | Alternate Syndic | Lawyer | December 31, 2007 | ||||||
Ricardo Adolfo Bertoglio | 2007 | Alternate Syndic | Accountant | December 31, 2007 | ||||||
• | total compensation, including salaries, variable compensation and other social benefits for the directors that are also employees and for the technical and administrative functions they perform, in accordance with section 25, subsection 2 of the Bank’s bylaws; and | ||
• | compensation for the independent directors. |
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As of December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Grupo Financiero Galicia S.A. | 8 | 8 | 8 | |||||||||
Banco de Galicia y Buenos Aires S.A. | 4,676 | 4,118 | 3,946 | |||||||||
Branches | 2,410 | 2,121 | 1,871 | |||||||||
Head Office | 2,266 | 1,997 | 2,075 | |||||||||
Galicia Uruguay | 13 | 18 | 19 | |||||||||
Regional Credit-Card Companies | 3,174 | 2,586 | 2,216 | |||||||||
Sudamericana Consolidated | 91 | 85 | 129 | |||||||||
Other Subsidiaries | 31 | 34 | 46 | |||||||||
Total | 7,993 | 6,849 | 6,364 | |||||||||
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(i) | Rule 4350(b)(1)(A) — Distribution of Annual and Interim Reports. In lieu of the requirements of Rule 4350(b)(1)(A), we follow Argentine law, which requires that companies make public a Spanish language annual report, including annual audited consolidated financial statements, by filing such annual report with the CNV and the BASE, within 70 calendar days of the end of the company’s fiscal year. Interim reports must be filed with the CNV and the BASE within 42 calendar days of the end of each fiscal quarter. The BASE publishes the annual reports and interim reports in the BASE bulletin and makes the bulletin available for inspection at its offices. In addition, our shareholders can receive copies of annual reports and any interim reports upon such shareholders’ request. English language translations of our annual reports and interim reports are furnished to the SEC. We also post the English language translation of our annual reports and quarterly press releases on our website. Furthermore, under the terms of the Second Amended and Restated Deposit Agreement, dated as of June 22, 2000, among us, The Bank of New York, as depositary, and owners of ADSs issued thereunder, we are required to furnish The Bank of New York with, among other things, English language translations of our annual reports and each of our quarterly press releases. Annual reports and quarterly press releases are available for inspection by ADR holders at the offices of The Bank of New York located at, 101 Barclay Street, 22nd Floor, New York, New York. Finally, Argentine law requires that 20 calendar days before the date of a shareholders’ meeting, the board of directors must provide to the shareholders, at the company’s executive office or through electronic means, all information relevant to the shareholders’ meeting, including copies of any documents to be considered by the shareholders (which includes the annual report), as well as proposals of the company’s board of directors. | ||
(ii) | Rule 4350(c)(1) – Majority of Independent Directors. In lieu of the requirements of Rule 4350(c)(1), we follow Argentine law which does not require that a majority of the board of directors be comprised of independent directors. Argentine law instead requires that public companies in Argentina such as us must have a sufficient number of independent directors to be able to form an audit committee of at least three members, the majority of which must be independent pursuant to the criteria established by the CNV. In |
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addition, because we are a “controlled company” as defined in Rule 4350(c)(5), we are relying on the exemption provided thereby for purposes of complying with Rule 4350(c)(1). | |||
(iii) | Rule 4350(c)(2) – Executive Sessions of the Board of Directors. In lieu of the requirements of Rule 4350(c)(2), we follow Argentine law which does not require independent directors to hold regularly scheduled meetings at which only such independent directors are present (i.e., executive sessions). Our board of directors as a whole is responsible for monitoring our affairs. In addition, under Argentine law, the Board of Directors may approve the delegation of specific responsibilities to designated directors or non-director managers of the company. Also, it is mandatory for public companies to form a supervisory committee (composed ofsyndics) which is responsible for monitoring the legality of the company’s actions under Argentine law and the conformity thereof with its by-laws. Finally, our audit committee has regularly scheduled meetings and, as such, such meetings will serve a substantially similar purpose as executive sessions. | ||
(iv) | Rule 4350(c)(3) – Compensation of Officers. In lieu of the requirements of Rule 4350(c)(3), we follow Argentine law which does not require companies to form a compensation committee comprised solely of independent directors. It also is not required in Argentina for the compensation of the chief executive officer and all other executive officers to be determined by either a majority of the independent directors or a compensation committee comprised solely of independent directors. Under Argentine law, the board of directors is the corporate body responsible for determining the compensation of the chief executive officer and all other executive officers, so long as they are not directors. In addition, under Argentine law, the audit committee shall give its opinion about the reasonableness of management’s proposals on fees and option plans for directors or managers of the company. Finally, because we are a “controlled company” as defined in Rule 4350(c)(5), we are relying on the exemption provided thereby for purposes of complying with Rule 4350(c)(3). | ||
(v) | Rule 4350(c)(4) – Nomination of Directors. In lieu of the requirements of Rule 4350(c)(4), we follow Argentine law which requires that directors be nominated directly by the shareholders at the shareholders’ meeting and that they be selected and recommended by the shareholders themselves. Under Argentine law, it is the responsibility of the ordinary shareholders’ meeting to appoint and remove directors and to set their compensation. In addition, because we are a “controlled company” as defined in Rule 4350(c)(5), we are relying on the exemption provided thereby for purposes of complying with Rule 4350(c)(4). | ||
(vi) | Rule 4350(d)(1) – Audit Committee Charter. In lieu of the requirements of Rule 4350(d)(1), we follow Argentine law which requires that audit committees have a charter but does not require that companies certify as to the adoption of the charter nor does it require an annual review and assessment thereof. Argentine law instead requires that companies prepare a proposed plan or course of action with respect to those matters which are the responsibility of the company’s audit committee. Such plan or course of action could, at the discretion of our audit committee, include a review and assessment of the audit committee charter. | ||
(vii) | Rule 4350(d)(2) – Audit Committee Composition. Argentine law does not require that companies have an audit committee comprised solely of independent directors and it is equally not customary business practice in Argentina to have such a committee. Argentine law instead requires that companies establish an audit committee with at least three members comprised of a majority of independent directors as defined by Argentine law. Nonetheless, although not required by Argentine law, we have a three member audit committee comprised of entirely independent directors, as independence is defined in Rule 10(A)-3(b)(1), one of which the Board has determined to be an audit committee financial expert. In addition, we have a supervisory committee (“comisión fiscalizadora”) composed of three ‘syndics’ which are in charge of monitoring the legality, under Argentine law, of the actions of our board of directors and the conformity of such actions with our by-laws. | ||
(viii) | Rule 4350(f) – Quorum. In lieu of the requirements of Rule 4350(f), we follow Argentine law and our bylaws, which distinguish between ordinary meetings and extraordinary meetings and require, in connection with ordinary meetings, that a quorum consist of a majority of stock entitled to vote. If no quorum is present at the first meeting, a second meeting may be called at which the shareholders present, whatever their number, constitute a quorum and resolutions may be adopted by an absolute majority of the votes present. Argentine law, and our bylaws, require in connection with extraordinary meetings, that |
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a quorum consist of 60% of the stock entitled to vote. However, if such quorum is not present at the first meeting, our bylaws provide that a second meeting may be called which may be held with the number of shareholders present. In both ordinary and extraordinary meetings, decisions are adopted by an absolute majority of votes present at the meeting, except for certain fundamental matters (such as mergers and spin-offs (when we are not the surviving entity and the surviving entity is not listed on any stock exchange), anticipated liquidation, change in our domicile to outside of Argentina, total or partial recapitalization of our statutory capital following a loss, any transformation in our corporate legal form or a substantial change in our corporate purpose) which require an approval by vote of the majority of all the stock entitled to vote (all stock being entitled to only one vote). | |||
(ix) | Rule 4350(g) – Solicitation of Proxies. In lieu of the requirements of Rule 4350(g), we follow Argentine law which requires that notices of shareholders’ meetings be published, for five consecutive days, in the Official Gazette and in a widely circulated newspaper in Argentina no earlier than 45 calendar days prior to the meeting and at least 20 calendar days prior to such meeting. In order to attend a meeting and be listed on the meeting registry, shareholders are required to submit evidence of their book-entry share account held at Caja de Valores up to three business days prior to the scheduled meeting date. If entitled to attend the meeting, a shareholder may be represented by proxy (properly executed and delivered with a certified signature) granted to any other person, with the exception of a director, syndic, member of the surveillance committee (“consejo de vigilancia”), manager or employee of the issuer, which are prohibited by Argentine law from acting as proxies. In addition, our ADS holders receive, prior to the shareholders’ meeting, a notice listing the matters on the agenda, a copy of the annual report and a voting card. | ||
(x) | Rule 4350(h) – Conflicts of Interest. In lieu of the requirements of Rule 4350(h), we follow Argentine law which requires that related party transactions be approved by the audit committee when the transaction exceeds one percent (1%) of the corporation’s net worth, measured pursuant to the last audited balance sheet, so long as the relevant transaction exceeds the equivalent of three hundred thousand Argentine Pesos (Ps.300,000). Directors can contract with the corporation only on terms consistent with prevailing market terms. If the contract is not in accordance with prevailing market terms, such transaction must be pre-approved by the board of directors (excluding the interested director). In addition, under Argentine law, a shareholder is required to abstain from voting on a business transaction in which its interests may be in conflict with the interests of the company. In the event such shareholder votes on such business transaction and such business transaction would not have been approved without such shareholder’s vote, such shareholder may be liable to the company for damages and the resolution may be declared void. |
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Name | Class A Shares | % of Class A Shares | % of Total Votes | |||||||
EBA Holding S.A. | 281,221,650 class A shares | 100 | 59.4 |
Name | Class B Shares | % of Class B Shares | % of Total Votes | |||||||
The Bank of New York(1) | 424,492,970 class B shares | 44.2 | 17.9 | |||||||
Members of the families that are shareholders of EBA Holding S.A. | 102,828,011 class B shares | 10.7 | 4.3 | |||||||
Banco Santander Central Hispano(2) | 82,741,540 class B shares | 8.6 | 3.5 | |||||||
BBVA Consolidar AFJP S.A.(3) | 55,452,386 class B shares | 5.8 | 2.3 | |||||||
Met AFJP S.A.(4) | 49,707,821 class B shares | 5.2 | 2.1 | |||||||
(1) | Pursuant to the requirements of Argentine law, all class B shares represented by ADSs are owned of record by The Bank of New York, as Depositary. The address for the Bank of New York is 101 Barclay Street, 22nd Floor, New York 10286, and the country of organization is the United States. Includes the holdings of Banco Santander Central Hispano. | |
(2) | Information is based on a Schedule 13 G filed by Banco Santander Central Hispano dated February 16, 2001. However, we have confirmed the amount with information provided by third party companies. The address for Banco Santander Central Hispano is Plaza de Canalejas 28014, Madrid, Spain, and the country of organization is the Kingdom of Spain. The holding is in ADRs. | |
(3) | Source: Superintendencia de AFJP (Pension Funds Superintendency). The address for BBVA Consolidar AFJP S.A. is Av. Independencia 169 5th. Floor, Ciudad de Buenos Aires, Argentina, and the country of organizations is Argentina. The holding is partly in ADRs. | |
(4) | Source: Superintendencia de AFJP (Pension Funds Superintendency). The address for Met AFJP S.A. is Av. de Mayo 654 10th. Floor, Ciudad de Buenos Aires, Argentina, and the country of organizations is Argentina. The holding is partly in ADRs. |
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Name | Total Shares | % of Total Capital | % of Total Votes | |||||||
Members of the controlling shareholders: | ||||||||||
EBA Holding S.A. | 281,221,650 class A shares | 22.7 | 59.4 | |||||||
Members of the families that are shareholders of EBA Holding S.A. | 102,828,011 class B shares | 8.3 | 4.3 | |||||||
Others: | ||||||||||
The Bank of New York(1) | 424,492,970 class B shares | 34.2 | 17.9 | |||||||
Banco Santander Central Hispano | 82,741,540 class B shares | 6.7 | 3.5 | |||||||
(1) | Pursuant to the requirements of Argentine law, all class B shares represented by ADSs are owned of record by The Bank of New York, as Depositary. |
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In millions of peso except as noted | April 30, 2007 | December 31, 2006 | December 31, 2005 | December 31, 2004 | ||||||||||||
Aggregate Total Financial Exposure | Ps | .27.9 | Ps | .19.3 | Ps | .78.0 | Ps | .80.7 | ||||||||
Number of Recipient Related Parties | 208 | 205 | 204 | 220 | ||||||||||||
Individuals | 166 | 163 | 160 | 175 | ||||||||||||
Companies | 42 | 42 | 44 | 45 | ||||||||||||
Average Total Financial Exposure | Ps | .0.1 | Ps | .0.1 | Ps | .0.4 | Ps | .0.4 | ||||||||
Single Largest Exposure | Ps | .5.7 | Ps | .3.6 | Ps | .19.3 | Ps | .16.8 | ||||||||
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- | During February 2007, we repurchased part of the debt issued as part of our debt restructuring completed in May 2004 that was instrumented as loans. We repurchased loans maturing in 2010 and in 2014 for an aggregate residual amount of US$ 178.8 million. These transactions were carried at market value, which |
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generated a US$ 6.9 million profit due to the difference between the market price and the book value of the loans. The repurchase was funded through the sale of Boden 2012 Bonds in the market, which generated a loss of approximately US$ 8.9 million due to the difference between the market price and the book value of these bonds. | |||
- | During the first quarter of 2007, we continued with the repayment of the financial assistance from the Argentine Central Bank received during the 2001-2002 crisis, that was originally due on October 2011, and have repaid the total balance of that liability which, as of December 31, 2006 amounted to Ps.2,688.7 million. On January 3, 2007 we made a new payment in advance for Ps.1,733.3 million on such debt, using the proceeds of the sale of Secured Loans that took place in December 2006. During the first days of February 2007, we paid the monthly installment due on that month according to the applicable repayment schedule and, on March 2, 2007, we repaid the remaining balance of such financial assistance in the amount of Ps.908.7 million. | ||
- | On April 24 2007, we acquired the remaining Hedge Bond with Secured Loans for Ps.115.9 million of face value, in accordance with the direct swap alternative set forth in Decree No. 905/02. The swap for public-sector assets, instead of the advance that had been requested from the Argentine Central Bank, caused a Ps.32.8 million increase in the acquisition cost of the remaining Hedge Bond. This loss was recognized in March 2007. In addition, this acquisition generated a Ps.32.0 million loss, which was recorded during February 2007, due to the recording at present value, in accordance with Argentine Central Bank valuation rules, of Bogar Bonds released from their status as collateral for the advance for the acquisition of the remaining Hedge Bond. As per Argentine Central Bank valuation rules, under such status such bonds were recorded at their technical value. See Item 4. “Information on the Company––Selected Statistical Information—Government and Corporate Securities—Valuation”. | ||
- | After the close of the first quarter of fiscal year 2007, we continued with the process of reducing our exposure to the public sector through the sale of Secured Loans for Ps.1,094 million. |
Grupo Financiero Galicia - Class B Shares-Buenos Aires Stock Exchange (in Pesos) | ||||||||||||
Average Daily Volume | ||||||||||||
High | Low | (in thousands of Class B shares) | ||||||||||
Calendar Year | ||||||||||||
2002 | 0.74 | 0.12 | 3,358.0 | |||||||||
2003 | 2.02 | 0.69 | 4,175.3 |
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Grupo Financiero Galicia - Class B Shares-Buenos Aires Stock Exchange (in Pesos) | ||||||||||||
Average Daily Volume | ||||||||||||
High | Low | (in thousands of Class B shares) | ||||||||||
2004(1) | 2.61 | 1.42 | 5,571.5 | |||||||||
2005 | 2.81 | 2.06 | 4,784.6 | |||||||||
2006 | 2.86 | 1.72 | 4,045.3 | |||||||||
Two Most Recent Fiscal Years | ||||||||||||
2005 | ||||||||||||
First Quarter | 2.81 | 2.13 | 6,232.6 | |||||||||
Second Quarter | 2.60 | 2.06 | 5,238.9 | |||||||||
Third Quarter | 2.53 | 2.19 | 4,050.2 | |||||||||
Fourth Quarter | 2.51 | 2.06 | 3,592.8 | |||||||||
2006 | ||||||||||||
First Quarter | 2.40 | 2.11 | 2,471.0 | |||||||||
Second Quarter | 2.32 | 1.76 | 1,976.2 | |||||||||
Third Quarter | 2.10 | 1.72 | 1,208.8 | |||||||||
Fourth Quarter | 2.86 | 2.03 | 2,552.3 | |||||||||
2007 | ||||||||||||
First Quarter | 3.37 | 2.69 | 2,762.6 | |||||||||
Second Quarter (through May 31, 2007) | 3.34 | 3.01 | 1,666.3 | |||||||||
Most Recent Six Months | ||||||||||||
December 2006 | 2.86 | 2.41 | 3,368.3 | |||||||||
January 2007 | 2.90 | 2.69 | 2,163.3 | |||||||||
February 2007 | 3.37 | 2.79 | 3,200.2 | |||||||||
March 2007 | 3.24 | 2.86 | 2,964.1 | |||||||||
April 2007 | 3.34 | 3.20 | 2,074.9 | |||||||||
May 2007 | 3.27 | 3.01 | 1,316.1 | |||||||||
(1) On April 28, 2004, our class B shares began trading ex-coupon, which coupon related to the right to subscribe for the preferred shares as part of the preemptive rights offering. The value of each class B share was reduced by the value of the coupon of Ps.0.101 per class B share. | ||||||||||||
As of June 22, 2007, the closing price of our class B shares was Ps.3.09. | ||||||||||||
Grupo Financiero Galicia – Preferred Shares Outstanding from May 13, 2004 to May 11, 2005 –Buenos Aires Stock Exchange (in Pesos) | ||||||||||||
Average Daily Volume | ||||||||||||
High | Low | (in thousands of preferred shares) | ||||||||||
Calendar Year | ||||||||||||
2004(from May 13, 2004) | Ps | .2.48 | Ps | .1.29 | 490.0 | |||||||
2005(through May 11, 2005) | 2.72 | 2.03 | 183.4 | |||||||||
Most Recent Fiscal Year | ||||||||||||
2004 | ||||||||||||
Second Quarter (from May 13, 2004) | 1.59 | 1.29 | 345.6 | |||||||||
Third Quarter | 1.87 | 1.33 | 681.4 | |||||||||
Fourth Quarter | 2.48 | 1.88 | 376.1 | |||||||||
2005 | ||||||||||||
First Quarter | 2.72 | 2.10 | 230.9 | |||||||||
Second Quarter (through May 11, 2005) | 2.34 | 2.03 | 81.8 | |||||||||
Most Recent Six Months | ||||||||||||
December 2004 | 2.48 | 1.99 | 275.2 | |||||||||
January 2005 | 2.44 | 2.26 | 146.0 | |||||||||
February 2005 | 2.69 | 2.37 | 184.3 | |||||||||
March 2005 | 2.72 | 2.10 | 360.3 | |||||||||
April 2005 | 2.25 | 2.03 | 100.4 | |||||||||
May 2005 (through May 11, 2005) | 2.34 | 2.15 | 32.9 |
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Grupo Financiero Galicia – ADSs - Nasdaq National Market / Nasdaq Capital Market (in US$) | ||||||||||||
Average Daily Volume | ||||||||||||
High | Low | (in thousands of ADRs) | ||||||||||
Calendar Year | ||||||||||||
2002 | 3.45 | 0.22 | 242.8 | |||||||||
2003 | 6.73 | 2.05 | 238.1 | |||||||||
2004 | 8.85 | 4.65 | 324.2 | |||||||||
2005 | 9.62 | 6.87 | 347.3 | |||||||||
2006 | 9.42 | 5.61 | 190.2 | |||||||||
Two Most Recent Fiscal Years | ||||||||||||
2005 | ||||||||||||
First Quarter | 9.62 | 7.28 | 518.5 | |||||||||
Second Quarter | 9.05 | 6.99 | 281.4 | |||||||||
Third Quarter | 8.90 | 7.70 | 262.8 | |||||||||
Fourth Quarter | 8.72 | 6.87 | 334.4 | |||||||||
2006 | ||||||||||||
First Quarter | 7.84 | 6.91 | 237.4 | |||||||||
Second Quarter | 7.70 | 5.70 | 181.4 | |||||||||
Third Quarter | 6.83 | 5.61 | 121.7 | |||||||||
Fourth Quarter | 9.42 | 6.60 | 221.0 | |||||||||
2007 | ||||||||||||
First Quarter | 11.12 | 8.69 | 289.3 | |||||||||
Second Quarter (through May 31, 2007) | 11.00 | 9.89 | 263.2 | |||||||||
Most Recent Six Months | ||||||||||||
December 2006 | 9.42 | 7.89 | 196.7 | |||||||||
January 2007 | 9.74 | 8.69 | 176.4 | |||||||||
February 2007 | 11.12 | 9.09 | 270.8 | |||||||||
March 2007 | 10.42 | 9.22 | 408.0 | |||||||||
April 2007 | 11.00 | 10.42 | 251.9 | |||||||||
May 2007 | 10.79 | 9.89 | 273.5 | |||||||||
Banco Galicia – Class B Shares - Buenos Aires Stock Exchange (in Pesos) | ||||||||||||
Average Daily Trading Volume | ||||||||||||
High | Low | ( in thousand Class B shares) | ||||||||||
Calendar Year | ||||||||||||
2002 | 1.63 | 0.45 | 0.96 | |||||||||
2003 | 3.85 | 1.58 | 1.06 | |||||||||
2004 | 5.10 | 3.30 | 1.22 | |||||||||
2005 | 4.30 | 3.60 | 1.96 | |||||||||
2006 | 4.50 | 3.04 | 1.56 | |||||||||
Two Most Recent Fiscal Years | ||||||||||||
2005 | ||||||||||||
First Quarter | 4.30 | 3.65 | 1.34 | |||||||||
Second Quarter | 3.90 | 3.60 | 2.08 |
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Banco Galicia – Class B Shares - Buenos Aires Stock Exchange (in Pesos) | ||||||||||||
Average Daily Trading Volume | ||||||||||||
High | Low | ( in thousand Class B shares) | ||||||||||
Third Quarter | 4.20 | 3.64 | 2.05 | |||||||||
Fourth Quarter | 4.25 | 3.85 | 2.38 | |||||||||
2006 | ||||||||||||
First Quarter | 4.25 | 3.65 | 1.04 | |||||||||
Second Quarter | 3.65 | 3.38 | 2.21 | |||||||||
Third Quarter | 3.35 | 3.04 | 1.21 | |||||||||
Fourth Quarter | 4.5 | 3.32 | 1.83 | |||||||||
2007 | ||||||||||||
First Quarter | 6.46 | 4.25 | 5.94 | |||||||||
Second Quarter (through May 31, 2007) | 5.8 | 5.2 | 2.04 | |||||||||
Most Recent Six Months | ||||||||||||
December 2006 | 4.50 | 3.80 | 1.98 | |||||||||
January 2007 | 4.50 | 4.25 | 3.69 | |||||||||
February 2007 | 6.46 | 4.35 | 12.36 | |||||||||
March 2007 | 5.40 | 5.00 | 2.36 | |||||||||
April 2007 | 5.80 | 5.33 | 2.34 | |||||||||
May 2007 | 5.45 | 5.20 | 1.77 | |||||||||
Banco Galicia – ADSs – Nasdaq National Market (in US$) | ||||||||||||
Average Daily Trading Volume | ||||||||||||
(in thousands of Class B | ||||||||||||
High | Low | Shares)(1) | ||||||||||
Calendar Year | ||||||||||||
2000 | US$ 22.44 | US$12.75 | 1,889.97 | |||||||||
(1) | One ADS equaled four class B shares. |
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As of December 31, 2006 | |||||||||||||||||
Shares | Number | of Shares | % of Capital Stock | % of Voting Rights | |||||||||||||
Class A shares | 281,221,650 | 22.7 | % | 59.4 | % | ||||||||||||
Class B shares | 960,185,367 | 77.3 | 40.6 | ||||||||||||||
Total | 1,241,407,017 | 100.0 | % | 100.0 | % | ||||||||||||
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• | a merger or spin-off in which we are not the surviving corporation, unless the acquirer’s shares are authorized to be publicly offered or listed on any stock exchange; | ||
• | a transformation in our legal corporate form; | ||
• | a fundamental change in our corporate purpose; | ||
• | a change of our domicile to outside Argentina; | ||
• | a voluntary termination of our public offering or listing authorization; | ||
• | our continuation following a delisting or a mandatory cancellation of our public offering or listing authorization; | ||
• | a total or partial recapitalization of our statutory capital following a loss; or | ||
• | the appointment of syndics. |
• | EBA Holding sells 100% of its class A shares; | ||
• | EBA Holding sells a portion of our class A shares to a third person who, when aggregating all our class A shares with our class B shares owned by such person, if any, obtains 50% plus one vote of our total votes; or | ||
• | the current shareholders of EBA Holding sell shares of EBA Holding that will allow the buyer to exercise more than 50% of the voting power of EBA Holding at any general shareholders’ meeting of EBA Holding shareholders, except for transfers to other current shareholders of EBA Holding or to their heirs or their legal successors or to entities owned by any of them. |
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• | approval of the financial statements and general performance of the management for the preceding fiscal year; | ||
• | appointment and remuneration of directors and members of the supervisory committee; | ||
• | allocation of profits; and | ||
• | any other matter the board of directors decides to submit to the shareholders’ meeting concerning the company’s business administration. Matters which may be discussed at these or other ordinary meetings include resolutions regarding the responsibility of directors and members of the supervisory committee, as well as capital increases and the issuance of negotiable obligations. |
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Whenever our shareholders approve: | |||
• | a merger or spin-off in which we are not the surviving corporation, unless the acquirer’s shares are authorized to be publicly offered or listed on any stock exchange, | ||
• | a transformation in our legal corporate form, | ||
• | a fundamental change in our corporate purpose, | ||
• | a change of our domicile to outside Argentina, | ||
• | a voluntary termination of our public offering or listing authorization, | ||
• | our continuation following a delisting or a mandatory cancellation of our public offering or listing authorization, or | ||
• | a total or partial recapitalization of our statutory capital following a loss, |
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As of December 31, 2006(1) | ||||||||||||||||||||||||
Less than | 5 - 10 | Over 10 | Non- | |||||||||||||||||||||
(in millions of pesos) | one Year | 1 - 5 Years | Years | Years | Sensitive | Total | ||||||||||||||||||
Assets | ||||||||||||||||||||||||
Pesos – Adjustable by CER | 4,212.5 | — | — | — | — | 4,212.5 | ||||||||||||||||||
Government Securities | 426.2 | — | — | — | — | 426.2 | ||||||||||||||||||
Financial Trusts | 831.3 | — | — | — | — | 831.3 | ||||||||||||||||||
Loans – Public Sector | 2,689.3 | — | — | — | — | 2,689.3 | ||||||||||||||||||
Loans – Private Sector | 249.3 | — | — | — | — | 249.3 | ||||||||||||||||||
Assets under Financial Lease | 10.7 | — | — | — | — | 10.7 | ||||||||||||||||||
Corporate Debt Securities | 5.7 | — | — | — | — | 5.7 | ||||||||||||||||||
Pesos | 7,465.3 | 559.3 | 152.5 | 20.2 | 1,501.2 | 9,698.5 | ||||||||||||||||||
Cash and Due from Banks | — | — | — | — | 1,501.2 | 1,501.2 | ||||||||||||||||||
Government Securities | 94.3 | 26.7 | — | — | — | 121.0 | ||||||||||||||||||
Corporate Debt Securities | 1.5 | 2.8 | 1.5 | — | — | 5.8 | ||||||||||||||||||
Financial Trusts | 244.7 | 222.1 | 39.9 | 5.4 | — | 512.1 | ||||||||||||||||||
Loans – Public Sector | 64.9 | — | — | — | — | 64.9 | ||||||||||||||||||
Loans – Private Sector | 5,131.1 | 307.7 | 111.1 | 14.8 | — | 5,564.7 | ||||||||||||||||||
Other Assets | 1,928.8 | — | — | — | — | 1,928.8 | ||||||||||||||||||
Dollars | 2,272.6 | 2,767.5 | 662.7 | — | 930.6 | 6,633.4 | ||||||||||||||||||
Cash and Due from Banks | — | — | — | — | 930.6 | 930.6 | ||||||||||||||||||
Overnight Placements | 608.0 | — | — | — | — | 608.0 | ||||||||||||||||||
Government Securities(1) | 747.9 | 2,528.8 | 632.2 | — | — | 3,908.9 | ||||||||||||||||||
Corporate Debt Securities | 1.2 | 7.3 | 4.0 | — | — | 12.5 | ||||||||||||||||||
Loans — Private Sector | 915.5 | 231.4 | 26.5 | — | — | 1,173.4 | ||||||||||||||||||
Total Assets | 13,950.4 | 3,326.8 | 815.2 | 20.2 | 2,431.8 | 20,544.4 | ||||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Pesos – Adjustable by CER | 3,737.6 | — | — | — | — | 3,737.6 | ||||||||||||||||||
Time Deposits | 620.0 | — | — | — | — | 620.0 | ||||||||||||||||||
Reprogrammed Deposits(2) | 47.8 | — | — | — | — | 47.8 | ||||||||||||||||||
Other Liabilities | 8.6 | — | — | — | — | 8.6 | ||||||||||||||||||
Loans from Domestic Financial Institutions | 30.7 | — | — | — | — | 30.7 | ||||||||||||||||||
Negotiable Obligations | 40.8 | — | — | — | — | 40.8 | ||||||||||||||||||
Argentine Central Bank | 2,989.7 | — | — | — | — | 2,989.7 | ||||||||||||||||||
Pesos | 10,336.4 | 376.1 | 0.1 | — | — | 10,712.6 | ||||||||||||||||||
Saving Accounts | 1,945.1 | — | — | — | — | 1,945.1 | ||||||||||||||||||
Demand Deposits | 2,113.7 | — | — | — | — | 2,113.7 | ||||||||||||||||||
Time Deposits | 4,469.6 | 6.1 | 0.1 | — | — | 4,475.8 | ||||||||||||||||||
Reprogrammed Deposits(2) | 0.4 | — | — | — | — | 0.4 | ||||||||||||||||||
Negotiable Obligations | 74.7 | 348.0 | — | — | — | 422.7 | ||||||||||||||||||
Loans from Domestic Financial Institutions | 122.4 | 22.0 | — | — | — | 144.4 | ||||||||||||||||||
Other Liabilities | 1,610.5 | — | — | — | — | 1,610.5 | ||||||||||||||||||
Dollars | 2,819.6 | 1,954.7 | 1,096.4 | 790.2 | — | 6,660.9 | ||||||||||||||||||
Saving Accounts | 640.8 | — | — | — | — | 640.8 | ||||||||||||||||||
Demand Deposits | 69.8 | — | — | — | — | 69.8 | ||||||||||||||||||
Time Deposits | 663.3 | 138.9 | — | — | — | 802.2 | ||||||||||||||||||
Loans from Domestic Financial Institutions | 6.1 | 9.2 | — | — | — | 15.3 | ||||||||||||||||||
Negotiable Obligations(3) | 461.6 | 1,431.4 | 784.6 | 749.8 | — | 3,427.4 | ||||||||||||||||||
International Banks and Credit Agencies | 149.3 | 358.3 | 311.8 | 40.4 | — | 859.8 | ||||||||||||||||||
Other Liabilities | 828.7 | 16.9 | — | — | — | 845.6 | ||||||||||||||||||
Total Liabilities | 16,893.6 | 2,330.8 | 1,096.5 | 790.2 | — | 21,111.1 | ||||||||||||||||||
Asset / Liability Gap | (2,943.2 | ) | 996.0 | (281.3 | ) | (770.0 | ) | 2,431.8 | (566.7 | ) | ||||||||||||||
Cumulative Gap | (2,943.2 | ) | (1,947.2 | ) | (2,228.5 | ) | (2,998.5 | ) | (566.7 | ) | ||||||||||||||
Ratio of Cumulative Gap to Cumulative Assets | (21.1 | )% | (11.3 | )% | (12.3 | )% | (16.6 | )% | (2.8 | )% | ||||||||||||||
Ratio of Cumulative Gap to Total Assets | (14.3 | )% | (9.5 | )% | (10.8 | )% | (14.6 | )% | (2.8 | )% | ||||||||||||||
Asset / Liability Gap CER | 474.9 | — | — | — | — | 474.9 | ||||||||||||||||||
Asset / Liability Gap Interest Rate Pesos | (2,871.1 | ) | 183.2 | 152.4 | 20.2 | 1,501.2 | (1,014.1 | ) | ||||||||||||||||
Asset / Liability Gap Interest Rate Dollars(4) | (547.0 | ) | 812.8 | (433.7 | ) | (790.2 | ) | 930.6 | (27.5 | ) | ||||||||||||||
Principal only. Principal includes the CER adjustment. Does not include interest. | ||
(1) | Includes Boden 2012 Bonds to be received corresponding to the Hedge Bond. | |
(2) | Reprogrammed deposits with amparo claims only. | |
(3) | Includes Ps. 13.5 million of past due foreign debt of the Bank included in the restructuring process ended in May 2004, the holders of which did not participate in such restructuring. | |
(4) | Adjusted to reflect forward purchases and sales of foreign exchange without delivery of the underlying asset, registered in memorandum accounts and other concepts not included in this mismatch, this gap amounted to Ps.72.5 million as of December 31, 2006. |
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As of December 31, 2006 | ||||||||||||||||||||||||
Net Portfolio | Fair Value | Net Interest Income(1) | ||||||||||||||||||||||
Change in Interest Rates in Basis Points | Absolute | Absolute | ||||||||||||||||||||||
(Rate Shock) | Amount | Variation | % Change | Amount | Variation | % Change | ||||||||||||||||||
(in millions of pesos, except percentages) | ||||||||||||||||||||||||
200 | Ps. | 1,136.7 | Ps. | (12.3 | ) | (1.07 | )% | Ps. | 449.0 | Ps. | 25.9 | 6.13 | % | |||||||||||
150 | 1,139.7 | (9.3 | ) | (0.81 | )% | 442.5 | 19.4 | 4.59 | % | |||||||||||||||
100 | 1,142.7 | (6.3 | ) | (0.55 | )% | 436.0 | 12.9 | 3.05 | % |
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As of December 31, 2006 | ||||||||||||||||||||||||
Net Portfolio | Fair Value | Net Interest Income(1) | ||||||||||||||||||||||
Change in Interest Rates in Basis Points | Absolute | Absolute | ||||||||||||||||||||||
(Rate Shock) | Amount | Variation | % Change | Amount | Variation | % Change | ||||||||||||||||||
(in millions of pesos, except percentages) | ||||||||||||||||||||||||
50 | 1,145.8 | (3.2 | ) | (0.28 | )% | 429.5 | 6.4 | 1.52 | % | |||||||||||||||
Static | 1,149.0 | — | — | 423.1 | — | — | ||||||||||||||||||
(50) | 1,152.3 | 3.3 | 0.29 | % | 414.4 | (8.7 | ) | (2.06 | )% | |||||||||||||||
(100) | 1,155.7 | 6.7 | 0.58 | % | 400.3 | (22.8 | ) | (5.38 | )% | |||||||||||||||
(150) | 1,159.1 | 10.1 | 0.88 | % | 392.7 | (30.4 | ) | (7.18 | )% | |||||||||||||||
(200) | 1,162.7 | 13.7 | 1.19 | % | 385.0 | (38.1 | ) | (9.01 | )% | |||||||||||||||
(1) | Net interest income of the first year. |
As of December 31, 2006 | ||||||||||||||||||||||||
Net Trading Portfolio | Fair Value | Net Interest Income(1) | ||||||||||||||||||||||
Change in Interest Rates in Basis Points | Absolute | Absolute | ||||||||||||||||||||||
(Rate Shock) | Amount | Variation | % Change | Amount | Variation | % Change | ||||||||||||||||||
(in millions of pesos, except percentages) | ||||||||||||||||||||||||
200 | Ps. | 146.0 | Ps. | (1.7 | ) | (1.15 | )% | Ps. | 19.6 | Ps. | 2.9 | 17.37 | % | |||||||||||
150 | 146.5 | (1.2 | ) | (0.81 | )% | 18.8 | 2.1 | 12.57 | % | |||||||||||||||
100 | 146.9 | (0.8 | ) | (0.54 | )% | 18.1 | 1.4 | 8.38 | % | |||||||||||||||
50 | 147.3 | (0.4 | ) | (0.27 | )% | 17.4 | 0.7 | 4.19 | % | |||||||||||||||
Static | 147.7 | — | — | 16.7 | — | — | ||||||||||||||||||
(50) | 148.2 | 0.5 | 0.34 | % | 15.9 | (0.8 | ) | (4.79 | )% | |||||||||||||||
(100) | 148.6 | 0.9 | 0.61 | % | 15.2 | (1.5 | ) | (8.98 | )% | |||||||||||||||
(150) | 149.0 | 1.3 | 0.88 | % | 14.5 | (2.2 | ) | (13.17 | )% | |||||||||||||||
(200) | 149.4 | 1.7 | 1.15 | % | 13.7 | (3.0 | ) | (17.96 | )% | |||||||||||||||
(1) | Net interest income of the first year. |
As of December 31, 2006 | ||||||||||||||||||||||||
Net Non-Trading Portfolio | Fair Value | Net Interest Income(1) | ||||||||||||||||||||||
Change in Interest Rates in Basis Points | Absolute | Absolute | ||||||||||||||||||||||
(Rate Shock) | Amount | Variation | % Change | Amount | Variation | % Change | ||||||||||||||||||
(in millions of pesos, except percentages) | ||||||||||||||||||||||||
200 | Ps. | 990.7 | Ps. | (10.6 | ) | (1.06 | )% | Ps. | 429.4 | Ps. | 23.0 | 5.66 | % | |||||||||||
150 | 993.2 | (8.1 | ) | (0.81 | )% | 423.7 | 17.3 | 4.26 | % | |||||||||||||||
100 | 995.8 | (5.5 | ) | (0.55 | )% | 417.9 | 11.5 | 2.83 | % | |||||||||||||||
50 | 998.5 | (2.8 | ) | (0.28 | )% | 412.1 | 5.7 | 1.40 | % | |||||||||||||||
Static | 1,001.3 | — | — | 406.4 | — | — | ||||||||||||||||||
(50) | 1,004.1 | 2.8 | 0.28 | % | 398.5 | (7.9 | ) | (1.94 | )% | |||||||||||||||
(100) | 1,007.1 | 5.8 | 0.58 | % | 385.1 | (21.3 | ) | (5.24 | )% | |||||||||||||||
(150) | 1,010.1 | 8.8 | 0.88 | % | 378.2 | (28.2 | ) | (6.94 | )% | |||||||||||||||
(200) | 1,013.3 | 12.0 | 1.20 | % | 371.3 | (35.1 | ) | (8.64 | )% | |||||||||||||||
(1) | Net interest income of the first year. |
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As of December 31, 2005 | ||||||||||||||||||||||||
Net Portfolio | Fair Value | Net Interest Income(1) | ||||||||||||||||||||||
Change in Interest Rates in Basis Points | Absolute | Absolute | ||||||||||||||||||||||
(Rate Shock) | Amount | Variation | % Change | Amount | Variation | % Change | ||||||||||||||||||
(in millions of pesos, except percentages) | ||||||||||||||||||||||||
200 | Ps. | 907.1 | Ps. | (1.2 | ) | (0.13 | )% | Ps. | 348.9 | Ps. | 82.6 | 31.00 | % | |||||||||||
150 | 907.4 | (0.9 | ) | (0.10 | ) | 328.3 | 62.0 | 23.30 | ||||||||||||||||
100 | 907.8 | (0.5 | ) | (0.06 | ) | 307.9 | 41.6 | 15.61 | ||||||||||||||||
50 | 908.0 | (0.3 | ) | (0.03 | ) | 287.4 | 21.1 | 7.94 | ||||||||||||||||
Static | 908.3 | — | — | 266.3 | — | — | ||||||||||||||||||
(50) | 908.6 | Ps. | 0.3 | 0.03 | % | 245.7 | Ps. | (20.6 | ) | (7.72 | )% | |||||||||||||
(100) | 908.9 | 0.6 | 0.07 | 219.2 | (47.1 | ) | (17.70 | ) | ||||||||||||||||
(150) | 909.2 | 0.9 | 0.10 | 193.7 | (72.6 | ) | (27.27 | ) | ||||||||||||||||
(200) | 909.6 | 1.3 | 0.14 | 169.9 | (96.4 | ) | (36.20 | ) | ||||||||||||||||
(1) | Net interest income of the first year. |
As of December 31, 2005 | ||||||||||||||||||||||||
Net Trading Portfolio | Fair Value | Net Interest Income(1) | ||||||||||||||||||||||
Change in Interest Rates in Basis Points | Absolute | Absolute | ||||||||||||||||||||||
(Rate Shock) | Amount | Variation | % Change | Amount | Variation | % Change | ||||||||||||||||||
(in millions of pesos, except percentages) | ||||||||||||||||||||||||
200 | Ps. | 721.8 | Ps. | (3.5 | ) | (0.48 | )% | Ps. | 61.2 | Ps. | 10.6 | 20.95 | % | |||||||||||
150 | 722.7 | (2.6 | ) | (0.36 | ) | 58.6 | 8.0 | 15.81 | ||||||||||||||||
100 | 723.6 | (1.7 | ) | (0.23 | ) | 55.9 | 5.3 | 10.47 | ||||||||||||||||
50 | 724.5 | (0.8 | ) | (0.11 | ) | 53.2 | 2.6 | 5.14 | ||||||||||||||||
Static | 725.3 | — | — | 50.6 | — | — | ||||||||||||||||||
(50) | 726.2 | Ps. | 0.9 | 0.12 | % | 47.9 | Ps. | (2.7 | ) | (5.34 | )% | |||||||||||||
(100) | 727.1 | 1.8 | 0.25 | 45.2 | (5.4 | ) | (10.67 | ) | ||||||||||||||||
(150) | 728.0 | 2.7 | 0.37 | 42.6 | (8.0 | ) | (15.81 | ) | ||||||||||||||||
(200) | 728.9 | 3.6 | 0.50 | 39.9 | (10.7 | ) | (21.15 | ) | ||||||||||||||||
(1) | Net interest income of the first year. |
As of December 31, 2005 | ||||||||||||||||||||||||
Net Non-Trading Portfolio | Fair Value | Net Interest Income(1) | ||||||||||||||||||||||
Change in Interest Rates in Basis Points | Absolute | Absolute | ||||||||||||||||||||||
(Rate Shock) | Amount | Variation | % Change | Amount | Variation | % Change | ||||||||||||||||||
(in millions of pesos, except percentages) | ||||||||||||||||||||||||
200 | Ps. | 185.3 | Ps. | 2.3 | 1.26 | % | Ps. | 287.7 | Ps. | 72.0 | 33.38 | % | ||||||||||||
150 | 184.7 | 1.7 | 0.93 | 269.7 | 54.0 | 25.03 | ||||||||||||||||||
100 | 184.2 | 1.2 | 0.66 | 252.0 | 36.3 | 16.83 | ||||||||||||||||||
50 | 183.5 | 0.5 | 0.27 | 234.2 | 18.5 | 8.58 | ||||||||||||||||||
Static | 183.0 | — | — | 215.7 | — | — | ||||||||||||||||||
(50) | 182.4 | Ps. | (0.6 | ) | (0.33 | )% | 197.8 | Ps. | (17.9 | ) | (8.30 | )% | ||||||||||||
(100) | 181.8 | (1.2 | ) | (0.66 | ) | 174.0 | (41.7 | ) | (19.33 | ) | ||||||||||||||
(150) | 181.2 | (1.8 | ) | (0.98 | ) | 151.1 | (64.6 | ) | (29.95 | ) | ||||||||||||||
(200) | 180.7 | (2.3 | ) | (1.26 | ) | 130.0 | (85.7 | ) | (39.73 | ) | ||||||||||||||
(1) | Net interest income of the first year. |
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As of December 31, 2004 | ||||||||||||||||||||||||
Net Portfolio | Fair Value | Net Interest Income(1) | ||||||||||||||||||||||
Change in Interest Rates in Basis Points | Absolute | Absolute | ||||||||||||||||||||||
(Rate Shock) | Amount | Variation | % Change | Amount | Variation | % Change | ||||||||||||||||||
(in millions of pesos, except percentages) | ||||||||||||||||||||||||
200 | Ps. | 949.9 | Ps. | (1.3 | ) | (0.14 | )% | Ps. | 146.8 | Ps. | 69.7 | 90.34 | % | |||||||||||
150 | 950.2 | (1.0 | ) | (0.11 | ) | 129.2 | 52.1 | 67.60 | ||||||||||||||||
100 | 950.5 | (0.7 | ) | (0.07 | ) | 111.8 | 34.7 | 44.97 | ||||||||||||||||
50 | 950.8 | (0.4 | ) | (0.04 | ) | 94.4 | 17.3 | 22.43 | ||||||||||||||||
Static | 951.2 | — | 77.1 | |||||||||||||||||||||
(50) | 951.6 | Ps. | 0.4 | 0.04 | % | 59.9 | Ps. | (17.2 | ) | (22.33 | )% | |||||||||||||
(100) | 952.0 | 0.8 | 0.08 | 42.7 | (34.4 | ) | (44.57 | ) | ||||||||||||||||
(150) | 952.3 | 1.1 | 0.12 | 17.6 | (59.5 | ) | (77.21 | ) | ||||||||||||||||
(200) | 952.8 | 1.6 | 0.17 | (7.5 | ) | (84.6 | ) | (109.71 | ) | |||||||||||||||
(1) | Net interest income of the first year. |
As of December 31, 2004 | ||||||||||||||||||||||||
Net Trading Portfolio | Fair Value | Net Interest Income(1) | ||||||||||||||||||||||
Change in Interest Rates in Basis Points | Absolute | Absolute | ||||||||||||||||||||||
(Rate Shock) | Amount | Variation | % Change | Amount | Variation | % Change | ||||||||||||||||||
(in millions of pesos, except percentages) | ||||||||||||||||||||||||
200 | Ps. | 525.7 | Ps. | (2.3 | ) | (0.44 | )% | Ps. | 37.5 | Ps. | 10.0 | 36.36 | % | |||||||||||
150 | 526.3 | (1.7 | ) | (0.32 | ) | 35.0 | 7.5 | 27.27 | ||||||||||||||||
100 | 526.8 | (1.2 | ) | (0.23 | ) | 32.5 | 5.0 | 18.18 | ||||||||||||||||
50 | 527.4 | (0.6 | ) | (0.11 | ) | 30.0 | 2.5 | 9.09 | ||||||||||||||||
Static | 528.0 | — | — | 27.5 | — | — | ||||||||||||||||||
(50) | 528.6 | Ps. | 0.6 | 0.11 | % | 25.0 | Ps. | (2.5 | ) | (9.09 | )% | |||||||||||||
(100) | 529.2 | 1.2 | 0.23 | 22.5 | (5.0 | ) | (18.18 | ) | ||||||||||||||||
(150) | 529.7 | 1.7 | 0.32 | 20.0 | (7.5 | ) | (27.27 | ) | ||||||||||||||||
(200) | 530.3 | 2.3 | 0.44 | 17.5 | (10.0 | ) | (36.36 | ) | ||||||||||||||||
(1) | Net interest income of the first year. |
As of December 31, 2004 | ||||||||||||||||||||||||
Net Non-Trading Portfolio | Fair Value | Net Interest Income(1) | ||||||||||||||||||||||
Change in Interest Rates in Basis Points | Absolute | Absolute | ||||||||||||||||||||||
(Rate Shock) | Amount | Variation | % Change | Amount | Variation | % Change | ||||||||||||||||||
(in millions of pesos, except percentages) | ||||||||||||||||||||||||
200 | Ps. | 424.2 | Ps. | 1.0 | 0.24 | % | Ps. | 109.3 | Ps. | 59.7 | 120.36 | % | ||||||||||||
150 | 423.9 | 0.7 | 0.17 | 94.2 | 44.6 | 89.92 | ||||||||||||||||||
100 | 423.7 | 0.5 | 0.12 | 79.3 | 29.7 | 59.88 | ||||||||||||||||||
50 | 423.4 | 0.2 | 0.05 | 64.4 | 14.8 | 29.84 | ||||||||||||||||||
Static | 423.2 | — | — | 49.6 | — | — | ||||||||||||||||||
(50) | 423.0 | Ps. | (0.2 | ) | (0.05 | )% | 34.9 | Ps. | (14.7 | ) | (29.64 | )% | ||||||||||||
(100) | 422.8 | (0.4 | ) | (0.09 | ) | 20.2 | (29.4 | ) | (59.27 | ) | ||||||||||||||
(150) | 422.6 | (0.6 | ) | (0.14 | ) | (2.4 | ) | (52.0 | ) | (104.84 | ) | |||||||||||||
(200) | 422.5 | (0.7 | ) | (0.17 | ) | (25.0 | ) | (74.6 | ) | (150.40 | ) | |||||||||||||
(1) | Net interest income of the first year. |
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Value of Foreign Currency Net Position as of | ||||||||||||
December 31, 2006 | ||||||||||||
Percentage Change in the Value of the Peso Relative to the Dollar(1) | Amount | Absolute Variation | % Change | |||||||||
(in millions of pesos, except percentages) | ||||||||||||
40% | 101.5 | 29.0 | 40.0 | |||||||||
30% | 94.3 | 21.8 | 30.1 | |||||||||
20% | 87.0 | 14.5 | 20.0 | |||||||||
10% | 79.8 | 7.3 | 10.1 | |||||||||
Static | 72.5 | (2) | — | — | ||||||||
(10)% | 65.3 | (7.2 | ) | (9.9 | ) | |||||||
(20)% | 58.0 | (14.5 | ) | (20.0 | ) | |||||||
(30)% | 50.8 | (21.7 | ) | (29.9 | ) | |||||||
(40)% | 43.5 | (29.0 | ) | (40.0 | ) | |||||||
(1) | Devaluation / (Revaluation). | |
(2) | Adjusted to reflect forward purchases and sales of foreign currency without delivery of the underlying asset, registered in memorandum accounts. |
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Value of Foreign Currency Net Position as of | ||||||||||||
December 31, 2005 | ||||||||||||
Percentage Change in the Value of the Peso Relative to the Dollar(1) | Amount | Absolute Variation | % Change | |||||||||
(in millions of pesos, except percentages) | ||||||||||||
40% | 53,2 | 15,2 | 40,0 | |||||||||
30% | 49,4 | 11,4 | 30,0 | |||||||||
20% | 45,6 | 7,6 | 20,0 | |||||||||
10% | 41,8 | 3,8 | 10,0 | |||||||||
Static | 38,0 | (2) | — | — | ||||||||
(10)% | 34,2 | (3,8 | ) | (10,0 | ) | |||||||
(20)% | 30,4 | (7,6 | ) | (20,0 | ) | |||||||
(30)% | 26,6 | (11,4 | ) | (30,0 | ) | |||||||
(40)% | 22,8 | (15,2 | ) | (40,0 | ) | |||||||
(1) | Devaluation / (Revaluation). | |
(2) | Adjusted to reflect forward purchases and sales of foreign currency without delivery of the underlying asset, registered in memorandum accounts. |
Value of Foreign Currency Net Position as of | ||||||||||||
December 31, 2004 | ||||||||||||
Percentage Change in the Value of the Peso Relative to the Dollar(1) | Amount | Absolute Variation | % Change | |||||||||
(in millions of pesos, except percentages) | ||||||||||||
40% | Ps. | 1,086.8 | Ps. | 310.5 | 40.0 | % | ||||||
30% | 1,009.2 | 232.9 | 30.0 | |||||||||
20% | 931.6 | 155.3 | 20.0 | |||||||||
10% | 853.9 | 77.6 | 10.0 | |||||||||
Static | 776.3 | — | — | |||||||||
(10)% | 698.7 | (77.6 | ) | (10.0 | ) | |||||||
(20)% | 621.0 | (155.3 | ) | (20.0 | ) | |||||||
(30)% | 543.4 | (232.9 | ) | (30.0 | ) | |||||||
(40)% | 465.8 | (310.5 | ) | (40.0 | ) | |||||||
(1) | Devaluation / (Revaluation). |
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As of December 31, 2006 | ||||||||||||
Assets | Liabilities | Gap | ||||||||||
(In millions of pesos) | ||||||||||||
Financial Assets and Liabilities | 19,136.1 | 21,621.5 | (2,485.4 | ) | ||||||||
Pesos — Unadjusted | 8,101.0 | 10,729.2 | (2,628.2 | ) | ||||||||
Pesos — Adjusted by CER | 4,222.9 | 3,826.2 | 396.7 | |||||||||
Foreign Currency | 6,812.2 | 7,066.1 | (253.9 | ) | ||||||||
Other Assets and Liabilities | 4,328.8 | 580.4 | 3,748.4 | |||||||||
Total Gap | 23,464.9 | 22,201.9 | 1,263.0 | |||||||||
Adjusted for Forward Transactions Recorded in Memo Accounts | ||||||||||||
Financial Assets and Liabilities | 19,136.1 | 21,621.5 | (2,485.4 | ) | ||||||||
In pesos, unadjusted, including shareholders’ equity | 7,625.7 | 10,580.3 | (2,954.6 | ) | ||||||||
In pesos, adjusted by the CER | 4,222.9 | 3,826.2 | 396.7 | |||||||||
In foreign currency(1) | 7,287.5 | 7,215.0 | 72.5 | |||||||||
Other Assets and Liabilities | 4,328.8 | 580.4 | 3,748.4 | |||||||||
Total Adjusted Gap | 23,464.9 | 22,201.9 | 1,263.0 | |||||||||
(1) | Adjusted for forward sales and purchases of foreign exchange made by the Bank and recorded off-balance sheet. |
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i) | A 95% degree of confidence. | ||
ii) | VaR estimates are made for holding periods of 1 day and “N” days, where “N” is defined as the number of days necessary to liquidate the position in each security and foreign currency. | ||
iii) | In the case of securities newly issued, the available trading days are taken into consideration, with a maximum; if there are not enough trading days or if there are no quotations, the volatility of bonds with similar risk and characteristics from domestic issuers is used. |
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2006 | 2005 | |||||||
(In thousands of pesos) | ||||||||
Audit fees | 3,838 | 3,177 | ||||||
Audit related fees | 1,428 | 819 | ||||||
Tax fees | 407 | 126 | ||||||
All other fees | 114 | 256 | ||||||
Total | Ps. | 5,787 | Ps. | 4,378 | ||||
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Exhibit | Description | |
1.1 | Unofficial English language translation of the By-laws (estatutos sociales). **** | |
2.1 | Form of Deposit Agreement between The Bank of New York and the registrant, including the form of American Depositary Receipt.* | |
2.2 | Indenture, dated as of May 18, 2004, among the Bank, The Bank of New York and Banco Rio de la Plata S.A.** | |
4.1 | English translation of form of Financial Trust Contract, dated April 16, 2002, among the Bank, Banco Provincia de Buenos Aires and BAPRO Mandatos y Negocios S.A.*** | |
4.2 | English translation of form of Loan Agreement, dated March 21, 2002, by and between Seguro de Depositos S.A. and the Bank.*** | |
4.4 | Form of Restructured Loan Facility (as evidenced by the Note Purchase Agreement, dated as of April 27, 2004, among Banco de Galicia y Buenos Aires S.A., Barclays Bank PLC, the holders party thereto and Deutsche Bank Trust Company Americas).** | |
4.5 | Form of Amendment No. 1 and Waiver to Restructured Loan Facility (as evidenced by the Amendment No. 1 and Waiver to Note Purchase Agreement, dated as of December 20, 2004, among Banco de Galicia y Buenos Aires S.A., the holders party thereto and Deutsche Bank Trust Company Americas). **** | |
4.6 | Form of Second Amendment to Restructured Loan Facility (as evidenced by the Second Amendment to the Note Purchase Agreement, dated as of August 25, 2006, among Banco de Galicia y Buenos Aires S.A., the holders party thereto and Deutsche Bank Trust Company Americas). |
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Exhibit | Description | |
8.1 | For a list of our subsidiaries as of the end of the fiscal year covered by this annual report, please see Item 4. “Information on the Company––Organizational Structure.” | |
12.1 | Certification of the principal executive officer required under Rule 13a-14(a) or Rule 15d-14(a), pursuant to Section 302 of the Sarbanes Oxley Act of 2002. | |
12.2 | Certification of the principal financial officer required under Rule 13a-14(a) or Rule 15d-14(a), pursuant to Section 302 of the Sarbanes Oxley Act of 2002. | |
13.1 | Certification of the principal executive officer required pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002. | |
13.2 | Certification of the principal financial officer required pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002. |
* | Incorporated by reference from our Registration Statement on Form F-4 (333-11960). | |
** | Incorporated by reference from our Annual Report on Form 20-F for the year ended December 31, 2003. | |
*** | Incorporated by reference from our Annual Report on Form 20-F for the year ended December 31, 2002. | |
**** | Incorporated by reference from our Annual Report on Form 20-F for the year ended December 31, 2004. |
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GRUPO FINANCIERO GALICIA S.A. | ||||||
By: | /s/ Antonio Garcés | |||||
Name: Antonio Garcés | ||||||
Title: Chairman of the Board, Chief Executive Officer |
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Page | ||||
F-2 | ||||
F-3 | ||||
F-6 | ||||
F-8 | ||||
F-10 | ||||
F-11 |
F-1
Table of Contents
Grupo Financiero Galicia S.A.
Santiago J. Mignone
Partner
February 14, 2007, except for notes 31, 37 and 39 as to which the date is June 25, 2007.
F-2
Table of Contents
December 31, | ||||||||
2006 | 2005 | |||||||
ASSETS | ||||||||
A. Cash and due from banks | ||||||||
Cash | 550,851 | 552,495 | ||||||
Banks and correspondents | 1,743,998 | 488,663 | ||||||
Ps. | 2,294,849 | Ps. | 1,041,158 | |||||
B. Government and corporate securities | ||||||||
Holdings of investment account securities | 2,608,827 | 650,924 | ||||||
Holdings of trading securities | 28,566 | 21,229 | ||||||
Government securities without quotation | 431,753 | 4,591,071 | ||||||
Securities issued by the Argentine Central Bank | 119,520 | 704,467 | ||||||
Investments in quoted corporate securities | 339 | 4,418 | ||||||
Allowances | (357 | ) | (353 | ) | ||||
Ps. | 3,188,648 | Ps. | 5,971,756 | |||||
C. Loans | ||||||||
To the non-financial public sector | 2,739,282 | 5,235,869 | ||||||
To the financial sector | 311,623 | 128,203 | ||||||
To the non-financial private sector and residents abroad | 7,790,689 | 5,619,015 | ||||||
Overdrafts | 346,135 | 222,779 | ||||||
Promissory notes | 2,143,706 | 1,836,887 | ||||||
Mortgage loans | 687,954 | 503,397 | ||||||
Pledge loans | 67,145 | 121,095 | ||||||
Consumer loans | 563,232 | 258,015 | ||||||
Credit card loans | 2,458,572 | 1,732,114 | ||||||
Other | 1,403,209 | 812,587 | ||||||
Accrued Interest, adjustments and quotation differences receivable | 154,960 | 146,839 | ||||||
Documented interest | (33,651 | ) | (14,684 | ) | ||||
Unallocated collections | (573 | ) | (14 | ) | ||||
Allowances | (327,042 | ) | (427,911 | ) | ||||
Ps. | 10,514,552 | Ps. | 10,555,176 | |||||
D. Other receivables resulting from financial brokerage | ||||||||
Argentine Central Bank | 1,878,286 | 108,819 | ||||||
Amounts receivable for spot and forward sales to be settled | 91,441 | 264,170 | ||||||
Securities receivable under spot and forward purchases to be settled | 1,464,917 | 270,476 | ||||||
Negotiable obligations without quotation | 26,721 | 41,403 | ||||||
Balances from forward transactions without delivery of underlying asset to be settled | 30,964 | 709 | ||||||
Compensation to be received from the national government | 401,335 | 4,154,989 | ||||||
Other | 1,570,213 | 1,357,057 | ||||||
Allowances | (21,896 | ) | (35,242 | ) | ||||
Ps. | 5,441,981 | Ps. | 6,162,381 |
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Table of Contents
December 31, | ||||||||
2006 | 2005 | |||||||
ASSETS (Continued) | ||||||||
E. Assets under financial leases | ||||||||
Assets under financial leases | 208,603 | 193,697 | ||||||
Allowances | (2,428 | ) | (2,521 | ) | ||||
Ps. | 206,175 | Ps. | 191,176 | |||||
F. Equity investments | ||||||||
In financial institutions | 3,057 | 3,088 | ||||||
Other | 77,385 | 113,336 | ||||||
Allowances | (44,867 | ) | (31,304 | ) | ||||
Ps. | 35,575 | Ps. | 85,120 | |||||
G. Miscellaneous receivables | ||||||||
Receivables for assets sold | 15,118 | 85 | ||||||
Tax on minimum presumed income – Tax credit | 218,884 | 170,989 | ||||||
Other | 515,805 | 354,360 | ||||||
Accrued interest on receivables for assets sold | 93 | 6 | ||||||
Other accrued interest and adjustments receivable | 82 | 65 | ||||||
Allowances | (74,472 | ) | (77,626 | ) | ||||
Ps. | 675,510 | Ps. | 447,879 | |||||
H. Bank premises and equipment | Ps. | 490,290 | Ps. | 484,198 | ||||
I. Miscellaneous assets | Ps. | 271,107 | Ps. | 199,152 | ||||
J. Intangible assets | ||||||||
Goodwill | 65,165 | 85,003 | ||||||
Organization and development expenses | 437,631 | 405,357 | ||||||
Ps. | 502,796 | Ps. | 490,360 | |||||
K. Unallocated items | 4,381 | 1,678 | ||||||
L. Other Assets | 8,311 | 5,690 | ||||||
Total Assets | Ps. | 23,634,175 | Ps. | 25,635,724 | ||||
F-4
Table of Contents
As of December 31, 2006 and 2005
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||
2006 | 2005 | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
M. Deposits | ||||||||
Non-financial public sector | Ps. | 63,922 | Ps. | 90,341 | ||||
Financial sector | 154,303 | 6,201 | ||||||
Non-financial private sector and residents abroad | 10,561,144 | 8,325,118 | ||||||
Current accounts | 1,982,765 | 1,639,766 | ||||||
Saving accounts | 2,442,946 | 2,211,436 | ||||||
Time deposits | 5,789,299 | 4,186,018 | ||||||
Investment accounts | 4,031 | 158 | ||||||
Other | 211,176 | 192,584 | ||||||
Accrued interest and quotation differences payable | 130,927 | 95,156 | ||||||
Ps. | 10,779,369 | Ps. | 8,421,660 | |||||
N. Other liabilities resulting from financial brokerage | ||||||||
Argentine Central Bank | 3,025,977 | 8,611,909 | ||||||
Other | 3,025,977 | 8,611,909 | ||||||
Banks and international entities | 844,263 | 762,055 | ||||||
Unsubordinated negotiable obligations | 2,809,416 | 3,052,434 | ||||||
Amounts payable for spot and forward purchases to be settled | 1,046,181 | 222,729 | ||||||
Securities to be delivered under spot and forward sales to be settled | 91,329 | 266,071 | ||||||
Loans from domestic financial institutions | 281,055 | 220,422 | ||||||
Balances from forward transactions without delivery of underlying asset to be settled | 31,635 | 418 | ||||||
Other | 1,566,706 | 1,152,433 | ||||||
Accrued interest and quotation differences payable | 128,391 | 125,242 | ||||||
Ps. | 9,824,953 | Ps. | 14,413,713 | |||||
O. Miscellaneous liabilities | ||||||||
Directors’ and Syndics’ fees | 3,255 | 3,438 | ||||||
Other | 219,002 | 265,301 | ||||||
Adjustments and accrued interest payable | 838 | 1 | ||||||
Ps. | 223,095 | Ps. | 268,740 | |||||
P. Provisions | 182,927 | 254,351 | ||||||
Q. Subordinated negotiable obligations | 777,617 | 431,024 | ||||||
R. Unallocated items | 5,734 | 3,915 | ||||||
S. Other Liabilities | 64,827 | 70,046 | ||||||
T. Minority interests | 167,185 | 145,499 | ||||||
Total Liabilities | Ps. | 22,025,707 | Ps. | 24,008,948 | ||||
SHAREHOLDERS’ EQUITY | 1,608,468 | 1,626,776 | ||||||
Total Liabilities and Shareholders’ Equity | Ps. | 23,634,175 | Ps. | 25,635,724 | ||||
F-5
Table of Contents
December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
A. Financial income | ||||||||||||
Interest on cash and due from banks | Ps. | 874 | Ps. | 68 | Ps. | 44 | ||||||
Interest on loans granted to the financial sector | 2,869 | 2,823 | 5,189 | |||||||||
Interest on overdrafts | 69,670 | 39,957 | 28,254 | |||||||||
Interest on promissory notes | 200,564 | 119,017 | 97,544 | |||||||||
Interest on mortgage loans | 69,967 | 74,052 | 67,935 | |||||||||
Interest on pledge loans | 12,146 | 10,806 | 6,706 | |||||||||
Interest on credit card loans | 281,116 | 222,657 | 163,054 | |||||||||
Interest on other loans | 105,813 | 35,705 | 26,050 | |||||||||
Interest on other receivables resulting from financial brokerage | 171,878 | 165,895 | 90,017 | |||||||||
Net income from government and corporate securities | 261,229 | 333,107 | — | |||||||||
Net income from secured loans – Decree No. 1387/01 | 194,777 | 203,487 | 186,038 | |||||||||
Consumer price index adjustment (CER / CVS) | 730,074 | 1,091,832 | 588,653 | |||||||||
Other | 148,860 | 99,226 | 132,101 | |||||||||
Ps. | 2,249,837 | Ps. | 2,398,632 | Ps. | 1,391,585 | |||||||
B. Financial expenses | ||||||||||||
Interest on current account deposits | 21,043 | 15,301 | 4,858 | |||||||||
Interest on savings account deposits | 4,105 | 4,557 | 4,124 | |||||||||
Interest on time deposits | 313,036 | 142,051 | 90,511 | |||||||||
Interest on financing from the financial sector | 5,527 | 4,581 | 6,146 | |||||||||
Interest on other liabilities resulting from financial brokerage | 326,462 | 269,276 | 172,558 | |||||||||
Other interest | 275,509 | 334,398 | 323,245 | |||||||||
Net loss from government and corporate securities | — | — | 7,027 | |||||||||
Consumer price index adjustment | 697,694 | 1,006,752 | 501,831 | |||||||||
Other | 228,237 | 69,013 | 57,144 | |||||||||
Ps. | 1,871,613 | Ps. | 1,845,929 | Ps. | 1,167,444 | |||||||
C. Gross brokerage margin | 378,224 | 552,703 | 224,141 | |||||||||
Loan loss provisions | 110,869 | 76,730 | 190,232 | |||||||||
D. Income from services | ||||||||||||
In relation to lending transactions | 247,501 | 185,825 | 157,084 | |||||||||
In relation to borrowing transactions | 220,543 | 175,907 | 140,375 | |||||||||
Other commissions | 17,056 | 14,898 | 8,035 | |||||||||
Other | 367,993 | 269,106 | 223,558 | |||||||||
Ps. | 853,093 | Ps. | 645,736 | Ps. | 529,052 | |||||||
E. Expenses for services | ||||||||||||
Commissions | 80,801 | 53,906 | 40,899 | |||||||||
Other | 100,291 | 68,065 | 51,860 | |||||||||
Ps. | 181,092 | Ps. | 121,971 | Ps. | 92,759 |
F-6
Table of Contents
December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
F. Administrative expenses | ||||||||||||
Personnel expenses | 506,632 | 392,308 | 296,733 | |||||||||
Directors’ and syndics’ fees | 5,989 | 5,793 | 4,040 | |||||||||
Other fees | 36,148 | 32,314 | 19,808 | |||||||||
Advertising and publicity | 84,507 | 68,132 | 37,796 | |||||||||
Taxes | 50,469 | 37,349 | 40,872 | |||||||||
Other operating expenses | 217,016 | 187,223 | 179,983 | |||||||||
Other | 73,803 | 57,849 | 44,708 | |||||||||
Ps. | 974,564 | Ps. | 780,968 | Ps. | 623,940 | |||||||
Net Income / (Loss) from financial brokerage | Ps. | (35,208 | ) | Ps. | 218,770 | Ps. | (153,738 | ) | ||||
G. Minority interests result | Ps. | (19,016 | ) | Ps. | (34,609 | ) | Ps. | (14,302 | ) | |||
H. Miscellaneous income | ||||||||||||
Net lncome from equity investments | — | 6,662 | 2,990 | |||||||||
Default interests | 1,062 | 835 | 895 | |||||||||
Loans recovered and allowances reversed | 142,885 | 163,608 | 366,645 | |||||||||
Other | 151,176 | 111,061 | 134,348 | |||||||||
Consumer price index adjustment (CER) | 105 | 7,341 | 9,728 | |||||||||
Ps. | 295,228 | Ps. | 289,507 | Ps. | 514,606 | |||||||
I. Miscellaneous losses | ||||||||||||
Net loss on long-term investments | 14,362 | — | — | |||||||||
Default interests and charges in favor of the Argentine Central Bank | 571 | 16 | 19 | |||||||||
Loan loss provisions for miscellaneous receivables and other provisions | 62,424 | 99,754 | 134,135 | |||||||||
Amortization of differences arising from court resolutions | — | 122,279 | 121,010 | |||||||||
Other | 88,323 | 124,538 | 157,119 | |||||||||
Consumer price index adjustment | — | 541 | 336 | |||||||||
Ps. | 165,680 | Ps. | 347,128 | Ps. | 412,619 | |||||||
Net Income / (Loss) before tax | 75,324 | 126,540 | (66,053 | ) | ||||||||
J. Income tax | Ps. | 94,238 | Ps. | 19,302 | Ps. | 43,818 | ||||||
Net Income / (Loss) for the fiscal year | Ps. | (18,914 | ) | Ps. | 107,238 | Ps. | (109,871 | ) | ||||
Net Income / (Loss) per common share (basic and assuming full dilution) | (0.015 | ) | 0.086 | (0.093 | ) |
F-7
Table of Contents
December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Cash Flow from operating activities: | ||||||||||||
Net Income / (Loss) for the year | Ps. | (18,914 | ) | Ps. | 107,238 | Ps. | (109,871 | ) | ||||
Adjustments to reconcile net income to net cash from | ||||||||||||
Operating activities: | ||||||||||||
Depreciation of bank premises and equipment and Miscellaneous assets | 37,550 | 36,962 | 41,567 | |||||||||
Amortization of intangible assets | 55,382 | 182,713 | 193,744 | |||||||||
Increase in allowances for loan and other losses, net of reversals | 80,863 | 48,209 | 69,132 | |||||||||
Equity (gain) loss of unconsolidated subsidiaries | 14,362 | (6,662 | ) | (3,580 | ) | |||||||
(Gain) loss on sale of premises and equipment | (1,261 | ) | (1,355 | ) | (391 | ) | ||||||
Gain on trouble debt restructuring | — | — | (141,610 | ) | ||||||||
Consumer price index adjustment (CER/CVS) | 891,866 | (484,834 | ) | (26,447 | ) | |||||||
Unrealized foreign exchange (loss) / gain | (5,914 | ) | (13,569 | ) | 13,940 | |||||||
Decrease (Increase) in government securities | 1,902,792 | 490,050 | 91,557 | |||||||||
Decrease (Increase) in other assets | 1,071,275 | 476,928 | (75,634 | ) | ||||||||
Increase (Decrease) in other liabilities | 162,287 | 20,321 | (273,297 | ) | ||||||||
Net cash provided by / (used in) operating activities | Ps. | 4,190,288 | Ps. | 856,001 | Ps. | (220,890 | ) | |||||
Cash Flow from investing activities: | ||||||||||||
(Increase)/Decrease in loans, net | 297,601 | (628,259 | ) | (112,368 | ) | |||||||
Sales of investments in other companies | 13,774 | — | — | |||||||||
Increase in deposits at the Argentine Central Bank | (1,769,467 | ) | (30,356 | ) | (8,617 | ) | ||||||
Additions to bank premises and equipment, miscellaneous, and intangible assets | (196,313 | ) | (127,252 | ) | (131,807 | ) | ||||||
Proceeds from sales of premises and equipment | 13,838 | 18,350 | 12,599 | |||||||||
Net cash used in investing activities | Ps. | (1,640,567 | ) | Ps. | (767,517 | ) | Ps. | (240,193 | ) | |||
Cash Flow from financing activities: | ||||||||||||
Cash dividends paid in minority interests | (5,280 | ) | — | — | ||||||||
Increase in deposits, net | 1,894,251 | 1,696,266 | 1,415,052 | |||||||||
Borrowings under credit facilities – long-term | 418,018 | 179,181 | — | |||||||||
Payments on credit facilities – long-term | (687,024 | ) | (418,483 | ) | (289,719 | ) | ||||||
Decrease in short-term borrowings, net | (3,856,813 | ) | (1,239,176 | ) | (561,018 | ) | ||||||
(Decrease)/Increase in repurchase agreements | 934,408 | (259,142 | ) | 261,654 | ||||||||
Repayment of principal and interest on restructured debt | — | — | (207,639 | ) | ||||||||
Net cash (used in) / provided by financing activities | Ps. | (1,302,440 | ) | Ps. | (41,354 | ) | Ps. | 618,330 |
F-8
Table of Contents
December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Increase in cash and cash equivalents, net | Ps. | 1,247,281 | Ps. | 47,130 | Ps. | 157,247 | ||||||
Cash and cash equivalents at the beginning of the year | 1,041,158 | 988,669 | 826,150 | |||||||||
Effect of exchange rate changes on cash and cash equivalents | 6,410 | 5,359 | 5,272 | |||||||||
Cash and cash equivalents at the end of the year | Ps. | 2,294,849 | Ps. | 1,041,158 | Ps. | 988,669 | ||||||
Supplemental disclosures relative to cash flows: | ||||||||||||
Interest paid | Ps. | 734,756 | Ps. | 516,429 | Ps. | 509,901 | ||||||
Income tax paid | Ps. | 20,074 | Ps. | 44,625 | Ps. | 528 | ||||||
Minimum Presumed Income Tax .(*) | Ps. | 30,031 | Ps. | 42,419 | Ps. | 24,886 |
(*) | The MPIT is calculated based on assets and can be credited against future income tax. |
F-9
Table of Contents
Inflation | ||||||||||||||||||||||||||||||||
adjustments to | Shares in | (Accumulated | Total | |||||||||||||||||||||||||||||
Capital | Paid in | Capital Stock and | own | Profit reserves | deficit) / Retained | Shareholders’ | ||||||||||||||||||||||||||
Stock | Capital | Paid in Capital | portfolio | Legal | Other | earnings | Equity | |||||||||||||||||||||||||
Balance at December 31, 2003 | Ps. | 1,092,407 | Ps. | 79,251 | Ps. | 1,410,048 | — | Ps. | 29,493 | Ps. | — | Ps. | (1,191,816 | ) | Ps. | 1,419,383 | ||||||||||||||||
Capital Increase | 149,000 | 61,026 | — | — | — | — | — | 210,026 | ||||||||||||||||||||||||
Net loss for the year | — | — | — | — | — | — | (109,871 | ) | (109,871 | ) | ||||||||||||||||||||||
Balance at December 31, 2004 | Ps. | 1,241,407 | Ps. | 140,277 | Ps. | 1,410,048 | — | Ps. | 29,493 | Ps. | — | Ps. | (1,301,687 | ) | Ps. | 1,519,538 | ||||||||||||||||
Absorption approved by the shareholders’ meeting on April 28,2005 | — | (140,277 | ) | (1,131,917 | ) | — | (29,493 | ) | — | 1,301,687 | — | |||||||||||||||||||||
Net Income for the year | — | — | — | — | — | — | 107,238 | 107,238 | ||||||||||||||||||||||||
Balance at December 31, 2005 | Ps. | 1,241,407 | — | Ps. | 278,131 | — | Ps. | — | Ps. | — | Ps. | 107,238 | Ps. | 1,626,776 | ||||||||||||||||||
Distribution of retained earnings by the shareholders’ meeting on April 27,2006 | ||||||||||||||||||||||||||||||||
Legal Reserve | — | — | — | — | 34,855 | — | (34,855 | ) | — | |||||||||||||||||||||||
Discretionary Reserve | — | — | — | — | — | 72,383 | (72,383 | ) | — | |||||||||||||||||||||||
Shares in own portfolio | (1,614 | ) | — | (362 | ) | 1,976 | — | — | — | — | ||||||||||||||||||||||
Sales of Shares in own portfolio | 1,614 | 606 | 362 | (1,976 | ) | — | — | — | 606 | |||||||||||||||||||||||
Net loss for the year | — | — | — | — | — | — | (18,914 | ) | (18,914 | ) | ||||||||||||||||||||||
Balance at December 31, 2006 | Ps. | 1,241,407 | Ps. | 606 | Ps. | 278,131 | — | Ps. | 34,855 | Ps. | 72,383 | Ps. | (18,914 | ) | Ps. | 1,608,468 | ||||||||||||||||
F-10
Table of Contents
Issuing Company | December 31, 2006 | December 31, 2005 | ||||||
Banco Galicia Uruguay S.A. | 100.00 | % | 100.00 | % | ||||
Tarjetas Regionales S.A. | 100.00 | % | 100.00 | % | ||||
Galicia Factoring y Leasing S.A. | 99.98 | % | 99.98 | % | ||||
Galicia Valores S.A. Sociedad de Bolsa | 99.99 | % | 99.99 | % |
F-11
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
Issuing Company | December 31, 2006 | December 31, 2005 | ||||||
Tarjetas Cuyanas S.A. | 60.000 | % | 60.000 | % | ||||
Tarjetas del Mar S.A. | 99.995 | % | 99.999 | % | ||||
Tarjeta Naranja S.A. | 80.000 | % | 80.000 | % |
F-12
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
F-13
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
F-14
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
F-15
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
• | Ownership of a portion of a related company’s capital granting the voting power necessary to influence the approval of such company’s financial statements and profits distribution. | |
• | Representation in the related company’s board of directors or corporate governance body. | |
• | Participation in the definition of the related company’s policies. | |
• | Existence of significant transactions between the company holding the interest and the related company (for example, when the former is the latter’s only supplier or by far its most important client). | |
• | Interchange of senior officers among companies. | |
• | Technical dependence of one of the companies on the other. |
F-16
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
F-17
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
Tax credit | Date of generation | Probable offsetting date | ||||||
11,702 | 2001 | 2010 | ||||||
45,158 | 2002 | 2010 | ||||||
43,004 | 2003 | 2010 | ||||||
42,037 | 2004 | 2010 | ||||||
46,126 | 2005 | 2010 | ||||||
22,073 | 2006 | 2010 | ||||||
7,007 | 2006 | 2011 |
F-18
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||
2006 | 2005 | |||||||
Peso balances | Ps. | 1,217,511 | Ps. | 758,124 | ||||
Foreign currency balances | 658,751 | 418,710 |
December 31, | ||||||||
2006 | 2005 | |||||||
Funds and securities pledged under various arrangements | Ps. | 562,081 | Ps. | 217,090 | ||||
Shares on equity investments (*) | 5,250 | 24,094 | ||||||
Deposits in the Argentine Central Bank, restricted under Argentine Central Bank regulations | 1,734,969 | 1,450 | ||||||
Loans granted as collateral | 955,414 | 5,483,982 | ||||||
Loans pledged and real property granted as collateral-Banco Galicia Uruguay S.A. (**) | 249,738 | 497,281 | ||||||
Total | Ps. | 3.507,452 | Ps. | 6,223,897 | ||||
(*) | Shares over which transferability is subject to prior approval of the National or Provincial authorities, as applicable, under the terms of certain concession contracts signed. | |
(**) | Under a fixed pledged agreement signed on July 24, 2003 and registered with the Registry of Property –Movable Property — Pledges Division of Montevideo – Uruguay, on August 5, 2003, Galicia Uruguay S.A.’s credit rights against all of its debtors have been pledged in favor of the holders of transferable time deposit certificates and/or negotiable obligations issued in compliance with the debt restructuring plan approved. |
F-19
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||
2006 | 2005 | |||||||
Government Securities | ||||||||
With quotation: | ||||||||
Recorded at market value | ||||||||
For trading purposes: | ||||||||
Government Bonds | Ps. | 28,206 | Ps. | 20,873 | ||||
Other | 360 | 356 | ||||||
Less: Valuation allowances | (357 | ) | (353 | ) | ||||
Total trading securities | Ps. | 28,209 | Ps. | 20,876 | ||||
Recorded at amortized cost | ||||||||
In investment accounts | ||||||||
Government Bonds (Boden 2012 Bonds) | 2,608,827 | 650,924 | ||||||
Total securities in investment accounts | Ps. | 2,608,827 | Ps. | 650,924 | ||||
F-20
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||
2006 | 2005 | |||||||
Securities issued by the Argentine Central Bank | ||||||||
Securities with quotation | 119,520 | 699,041 | ||||||
Securities without quotation | — | 5,426 | ||||||
Total Securities issued by the Argentine Central Bank | Ps. | 119,520 | Ps. | 704,467 | ||||
Without quotation | ||||||||
Fiscal Tax Credit Certificate (*) | — | 34,458 | ||||||
Government Bonds | 431,753 | 4,556,613 | ||||||
Total Without quotation securities | 431,753 | 4,591,071 | ||||||
Total government securities | Ps. | 3,188,309 | Ps. | 5,967,338 | ||||
Corporate Securities | ||||||||
Shares | — | 376 | ||||||
Marketable Negotiable obligations | 339 | 4,042 | ||||||
Total corporate securities | Ps. | 339 | Ps. | 4,418 | ||||
Total government and corporate securities | Ps. | 3,188,648 | Ps. | 5,971,756 | ||||
(*) | Government securities collateralized by future tax payments. |
F-21
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||
2006 | 2005 | |||||||
Non-financial public sector | Ps. | 2,739,282 | Ps. | 5,235,869 | ||||
Financial sector (Argentine) | 311,623 | 128,203 | ||||||
Non-financial private sector and residents abroad | 7,790,689 | 5,619,015 | ||||||
- With preferred guarantees | 1,076,170 | 838,540 | ||||||
- With other guarantees | 1,307,511 | 1,024,542 | ||||||
- Unsecured | 5,407,008 | 3,755,933 | ||||||
Subtotal | 10,841,594 | 10,983,087 | ||||||
Allowance for loan losses (See Note 7) | (327,042 | ) | (427,911 | ) | ||||
Total | Ps. | 10,514,552 | Ps. | 10,555,176 | ||||
December 31, | ||||||||
2006 | 2005 | |||||||
Financial services industry | 8.54 | % | 3.13 | % | ||||
Public sector | 25.27 | % | 47.67 | % | ||||
Agriculture and livestock | 8.96 | % | 7.00 | % | ||||
Consumer | 27.46 | % | 17.84 | % |
December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Balance at beginning of year | Ps. | 427,911 | Ps. | 632,619 | Ps. | 1,177,315 | ||||||
Provision charged to income | 105,312 | 61,071 | 179,335 | |||||||||
Prior allowances reverse | (32,492 | ) | (96,240 | ) | (210,284 | ) | ||||||
Inflation and foreign exchange effect and other adjustments | 27,113 | 4,957 | 7,580 | |||||||||
Loans charged off | (200,802 | ) | (174,496 | ) | (521,327 | ) | ||||||
Balance at end of year | Ps. | 327,042 | Ps. | 427,911 | Ps. | 632,619 | ||||||
F-22
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Provisions charged to income | Ps. | 105,312 | Ps. | 61,071 | Ps. | 179,335 | ||||||
Direct charge-offs | 3,338 | 6,068 | 8,951 | |||||||||
Other receivables losses | 788 | 8,430 | 993 | |||||||||
Financial leases | 1,431 | 1,161 | 953 | |||||||||
Ps. | 110,869 | Ps. | 76,730 | Ps. | 190,232 | |||||||
December 31, | ||||||||
2006 | 2005 | |||||||
Preferred guarantees, including deposits with The Argentine Central Bank (1) | Ps. | 1,900,094 | Ps. | 137,379 | ||||
Other guarantees | 229 | 483 | ||||||
Unsecured (2) | 3,563,554 | 6,059,761 | ||||||
Less: Allowance for doubtful accounts | (21,896 | ) | (35,242 | ) | ||||
Ps. | 5,441,981 | Ps. | 6,162,381 | |||||
(1) | Includes Ps. 1,733,298 of restricted deposits at the Argentine Central Bank for the payment of the financial assistance received from such institution during the economic crisis of late 2001 and early 2002. (see Note 37) |
(2) Includes: (i) | Ps. 401,335 and Ps. 4,154,989 as of December 31, 2006 and 2005, of “Compensation to be received from the National Government”. |
(ii) Ps. 837,276 and Ps. 279,033 of repurchase agreements of Boden 2012 Bonds as of December 31, 2006 and 2005, respectively. | |||
(iii) Ps. 1,293,377 and Ps. 990,359 of financial trust participation certificates as of December 31, 2006 and 2005, respectively. |
December 31, | ||||||||
2006 | 2005 | |||||||
Mutual funds | Ps. | 32,190 | Ps. | 33.402 | ||||
Galtrust I | 571,582 | 536,509 | ||||||
Other financial trust participation certificates | 721,795 | 453,850 | ||||||
Accrued commissions | 8,992 | 14,818 | ||||||
Others | 235,654 | 318,478 | ||||||
Ps. | 1,570,213 | Ps. | 1,357,057 | |||||
F-23
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||
2006 | 2005 | |||||||
In Financial Institutions, complementary and authorized activities | ||||||||
Banelco S.A. | Ps. | 7,868 | Ps. | 7,219 | ||||
Visa Argentina S.A. | 951 | 951 | ||||||
Mercado de Valores de Buenos Aires S.A. | 8,050 | 8,190 | ||||||
Banco Latinoamericano de Exportaciones S.A. | 1,522 | 1,572 | ||||||
Others | 2,362 | 2,288 | ||||||
Total equity investments in Financial Institutions, complementary and authorized activities | Ps. | 20,753 | Ps. | 20,220 | ||||
In Non-financial Institutions | ||||||||
Aguas Argentinas S.A. | Ps. | 23,370 | Ps. | 23,370 | ||||
Inversora Diamante S.A.(*) | — | 12,944 | ||||||
Inversora Nihuiles S.A.(*) | — | 15,750 | ||||||
Electrigal S.A. | 5,455 | 5,455 | ||||||
Aguas Provinciales de Santa Fe S.A. | 10,771 | 10,771 | ||||||
A.E.C. S.A. | 6,139 | 6,139 | ||||||
Aguas Cordobesas S.A. | 8,911 | 8,911 | ||||||
Tradecom International N.V. | — | 6,683 | ||||||
Other | 5,043 | 6,181 | ||||||
Total equity investments in non-financial institutions | Ps. | 59,689 | Ps. | 96,204 | ||||
Allowances | Ps. | (44,867 | ) | Ps. | (31,304 | ) | ||
Total Equity investments | Ps. | 35,575 | Ps. | 85,120 | ||||
(*) | On October 18, 2006, the Bank sold to third parties the shares of Inversora Diamante S.A. and Inversora Nihuiles S.A. for Ps. 12,966 and Ps. 15,777, respectively. |
December 31, | ||||||||
2006 | 2005 | |||||||
Land and buildings | Ps. | 568,330 | Ps. | 558,317 | ||||
Furniture and fixtures | 140,734 | 132,874 | ||||||
Machinery and equipment | 225,327 | 213,056 | ||||||
Vehicles | 1,008 | 507 | ||||||
Others | 6,684 | 6,424 | ||||||
Accumulated depreciation | (451,793 | ) | (426,980 | ) | ||||
Ps. | 490,290 | Ps. | 484,198 | |||||
F-24
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||
2006 | 2005 | |||||||
Goodwill, net of accumulated amortization of Ps. 187,189 and Ps. 174,884, respectively | Ps. | 65,165 | Ps. | 85,003 | ||||
Organization and development expenses, net of accumulated amortization of Ps. 139,247 and Ps. 187,064 respectively | 70,410 | 57,580 | ||||||
Legal actions related to the payment of deposits (“amparo claims”), net of accumulated amortization of Ps. 321,169 and Ps. 321,169, respectively (see Note 2.9) | 367,221 | 347,777 | ||||||
Ps. | 502,796 | Ps. | 490,360 | |||||
December 31, | ||||||||
2006 | 2005 | |||||||
Investment — Other Grupo Business | Ps. | — | Ps. | 684 | ||||
Banking- Head Office | 45,192 | 54,706 | ||||||
Regional Credit Card companies | 19,973 | 29,613 | ||||||
Ps. | 65,165 | Ps. | 85,003 | |||||
December 31, | ||||||||
2006 | 2005 | |||||||
Construction in progress | Ps. | 161,279 | Ps. | 114,652 | ||||
Deposits on fixed asset purchases | 30,110 | 5,546 | ||||||
Stationery and supplies | 5,304 | 3,170 | ||||||
Real estate held for sale | 14,311 | 16,328 | ||||||
Others | 60,103 | 59,456 | ||||||
Ps. | 271,107 | Ps. | 199,152 | |||||
F-25
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||
2006 | 2005 | |||||||
Allowances against asset accounts: | ||||||||
Government and corporate securities | Ps. | 357 | Ps. | 353 | ||||
Other receivables resulting from financial brokerage, for collection risk (a) | 21,896 | 35,242 | ||||||
Assets under financial leases (a) | 2,428 | 2,521 | ||||||
Equity investments in other companies (b) | 44,867 | 31,304 | ||||||
Miscellaneous receivables, for collection risk (a) | 74,472 | 77,626 | ||||||
Reserves for contingencies: | ||||||||
For severance payments (c) | 2,718 | 1,648 | ||||||
Litigations (d) | 22.202 | 37,218 | ||||||
Related to commitments undertaken with public services companies (e) | — | 13,000 | ||||||
Other contingencies | 131,063 | 176,829 | ||||||
Sundry liabilities arising from credit card activities (f) | 25,777 | 16,909 | ||||||
Other commitments (g) | 1,167 | 8,747 | ||||||
Total reserves for contingencies | Ps. | 182,927 | Ps. | 254,351 | ||||
(a) | Based upon an assessment of debtors’ performance, the economic and financial situation and the guarantees collateralizing their respective transactions. | |
(b) | Includes the estimated losses due to the excess of the cost plus dividend method over the equity method in non-majority owned equity investments. | |
(c) | Estimated amounts payable under labor lawsuits filed against the Bank by former employees. | |
(d) | Litigation arising from different types of claims from customers (e.g., claims for thefts from safe deposit boxes, the cashing of checks that have been fraudulently altered, discrepancies in deposits and payments services that the Bank renders, etc). | |
(e) | See Note 3 – Restricted Assets. | |
(f) | Reserves for rewards to be given under a credit-card reward program, for a guarantee of credit-card receivables and for the estimated liability for the insurance of the payment of credit-card balances in the event of the death of the credit-card holder. |
F-26
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||
2006 | 2005 | |||||||
Description | ||||||||
Contractual Long-term liabilities: | ||||||||
Advance for the acquisition of national government bonds in U.S. Dollars (1) | Ps. | 307,998 | Ps. | 3,057,572 | ||||
Argentine Central Bank’s financial assistance (2) | 2,681,673 | 5,299,994 | ||||||
Total long-term liabilities | Ps. | 2,989,671 | Ps. | 8,357,566 | ||||
Contractual Short-term liabilities: | ||||||||
Other Central Bank Obligations | 423 | 319 | ||||||
Total short-term liabilities | Ps. | 423 | Ps. | 319 | ||||
Accrued interest (3) | 35,883 | 254,024 | ||||||
Ps. | 3,025,977 | Ps. | 8,611,909 | |||||
January 2007 | 1,762,671 | |||
February 2007 | 29,335 | |||
March 2007 | 889,667 | |||
Ps. | 2,681,673 | |||
F-27
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
14. | Other Liabilities Resulting from Financial Brokerage- Banks and International Entities, and Loans from Domestic Financial Institutions. |
December 31, | ||||||||
2006 | 2005 | |||||||
Description | ||||||||
Bank and International Entities | ||||||||
Contractual long-term Liabilities | ||||||||
Floating Rate Bank Loans 2010 (i) | Ps. | 124,986 | Ps. | 140,720 | ||||
Floating Rate Bank Loans 2014 (ii) | 249,896 | 261,877 | ||||||
Commodity Credit Corp (C.C.C) 2014 (iii) | 290,793 | 286,779 | ||||||
Floating Rate Bank Loans 2019 (iv) | 40,368 | 37,903 | ||||||
Internacional Finance Corp. (I.F.C.) | 79,237 | — | ||||||
New York Branch | 9,932 | 19,618 | ||||||
Other lines from foreign banks | 3,668 | 15,158 | ||||||
Total long-term liabilities | Ps. | 798,880 | Ps. | 762,055 | ||||
Contractual short-term liabilities: | ||||||||
Other lines from foreign banks | 45,383 | — | ||||||
Total short-term liabilities | Ps. | 45,383 | Ps. | — | ||||
Total Banks and International Entities | Ps. | 844,263 | Ps. | 762,055 | ||||
Domestic and Financial Institutions | ||||||||
Contractual long-term liabilities: | ||||||||
BICE (Banco de Inversión y Comercio Exterior) | 37,135 | 70,056 | ||||||
Other lines from domestic banks | 109,455 | 89,603 | ||||||
Total long-term liabilities | Ps. | 146,590 | Ps. | 159,659 | ||||
Contractual short-term liabilities: | ||||||||
Other lines from credit from domestic banks | 134,465 | 60,763 | ||||||
Total short-term liabilities | Ps. | 134,465 | Ps. | 60,763 | ||||
Total Domestic and Financial Institutions | Ps. | 281,055 | Ps. | 220,422 | ||||
TOTAL | Ps. | 1,125,318 | Ps. | 982,477 | ||||
F-28
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
(i) | Ps. 124,986 of Libor plus 350 basis points loans due in 2010 with 8 biannual payments, starting July 1st., 2006. | ||
(ii) | Ps. 249,896 of Libor plus 85 basis points loans due in 2014 with biannual payments starting January 1, 2010. | ||
(iii) | Ps. 290,793 of fixed rate step-up loans due in 2014 with biannual payments, starting in July 1, 2010. The interest rate will increase 100 basis points annually starting with 3% in 2004, through 7% in 2008 and thereafter: | ||
(iv) | Ps. 40,368 of Libor plus 578 basis points loans due in 2019 with a bullet payment. |
Contractual long-term Liabilities | ||||
2007 | 212,954 | |||
2008 | 84,691 | |||
2009 | 40,381 | |||
2010 | 143,777 | |||
2011 | 120,153 | |||
Thereafter | 343,514 | |||
Ps. | 945,470 | |||
F-29
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
Annual | December 31, | |||||||||||||||
Negotiable Obligations (1) | Maturity | Interest Rate | 2006 | 2005 | ||||||||||||
Contractual Long-term liabilities: | ||||||||||||||||
9% Notes Due 2003(*) | 2003 | 9.00 | % | 13,488 | 19,356 | |||||||||||
(Semi-annual interest, principal payable at maturity) | ||||||||||||||||
4th Series Floating Rate Notes Due 2005 | 2005 | 4.00 | % | — | 2,695 | |||||||||||
(Semi-annual interest, principal payable every six months) | ||||||||||||||||
6th Series 7.875% Notes Due 2007 | 2007 | 7.88 | % | 74,318 | 146,795 | |||||||||||
(Semi-annual interest, principal payable at maturity) | ||||||||||||||||
7th Series Floating Rate Notes Due 2007 – Libor + 400 BP | 2007 | 9.51 | % | 44,161 | 87,229 | |||||||||||
(Semi-annual interest, principal payable at maturity) | ||||||||||||||||
Tarjeta Naranja Class I | 2007 | CER+1.68% | 40,781 | 40,781 | ||||||||||||
(Quarterly interest, principal payable in June 2007, September 2007 and December 2007) | ||||||||||||||||
Banco Galicia – Note 2010 – Libor +350 BP | 2010 | 9.14 | % | 941,990 | 1,059,917 | |||||||||||
(Semi-annual interest) | ||||||||||||||||
Banco Galicia Uruguay S.A. Unsubordinated (restructured deposits) | Between 2007 and | Between 2% and | ||||||||||||||
(Annual interest, principal payable every year) | 2011 | 7 | % | 157,675 | 172,935 | |||||||||||
Banco Galicia – Note 2014 | 2014 | 5.00 | % | 1,083,821 | 1,391,707 | |||||||||||
(Semi – annual interest) | ||||||||||||||||
Banco Galicia – Subordinated Note 2019 | 2019 | 11.00 | % | 777,617 | 431,024 | |||||||||||
(Semi-annual interest, principal payable at maturity) | ||||||||||||||||
Tarjeta Naranja Class II | 2008 | 17.00 | % | 80,150 | — | |||||||||||
(Interest fixed, semi-annual interest- principal payable every six months) | ||||||||||||||||
Tarjeta Naranja Class IV | 2011 | 15.50 | % | 307,900 | — | |||||||||||
(Interest fixed, semi-annual interest- principal payable every six months) | ||||||||||||||||
Total long-term liabilities | Ps. | 3,521,901 | Ps. | 3,352,439 | ||||||||||||
Contractual Short-term liabilities: | ||||||||||||||||
Tarjeta Cuyanas S.A. Class XVII (Fixed Interest, principal payable at maturity) | 2007 | 12.46 | % | 34,613 | — | |||||||||||
Tarjeta Naranja Class III (Interest fixed, principal payable at maturity) | 2007 | 7.00 | % | 30,519 | — | |||||||||||
Tarjeta Naranja Class II (Semi-annual interest, principal payable at maturity) | 2006 | 11.00 | % | — | 41,433 | |||||||||||
Tarjeta Naranja Class III (Bimonthly interest, principal payable in July 2006, September 2006 and November 2006) | 2006 | CER + 1.75% | — | 41,020 | ||||||||||||
Tarjeta Naranja Class IV (Semi-annual interest, principal payable at maturity) | 2006 | 6.50 | % | — | 27,034 | |||||||||||
Tarjeta Cuyanas S.A. Class XVI (Quarterly Interest, principal payable at maturity) | 2006 | CER + 1.50% | — | 21,532 | ||||||||||||
Total short-term liabilities | 65,132 | 131,019 | ||||||||||||||
Ps. | 3,587,033 | Ps. | 3,483,458 | |||||||||||||
(1) | Only principal, except for Subordinated Obligations which include accrued interest for Ps. 39,435. |
F-30
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
(i) | Ps. 74,318 of fixed-rate debt and Ps. 44,161 of floating-rate debt, corresponding to the Bank’s former New York branch’s restructured debt | |
(ii) | Ps. 13,488 of past due debt corresponding to “9% notes due 2003” (*) | |
(iii) | Ps. 157,675 negotiable obligations issued by Galicia Uruguay to restructure deposits, due 2008 and 2011 | |
(iv) | Ps. 941,990 and Ps. 1,083,091 of restructured foreign debt of the Bank, corresponding to 2010 Notes and 2014 Notes, respectively | |
(v) | Ps. 777,617 of debt issued as subordinated negotiable obligations, due 2019, corresponding to the restructured foreign debt of the Bank | |
(vi) | Ps. 40,781, Ps. 80,150 and Ps. 307,900 of Tarjeta Naranja S.A.’s negotiable obligations, due 2007, 2008 and 2011, respectively |
Past due (*) | 13,488 | |||
2007 | 495,088 | |||
2008 | 413,153 | |||
2009 | 379,901 | |||
2010 | 486,180 | |||
2011 | 354,351 | |||
Thereafter | 1,379,740 | |||
Total | Ps. | 3,521,901 | ||
(*) | Corresponds to past due debt not yet restructured. |
December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Grupo Galicia directors’ fees | Ps. | 279 | Ps. | 210 | Ps. | 80 | ||||||
Grupo Galicia syndics’ fees | 423 | 454 | 169 | |||||||||
Banco Galicia directors’ fees | 426 | 390 | 260 | |||||||||
Banco Galicia syndics’ fees | 605 | 550 | 425 | |||||||||
Subsidiary companies directors’ and syndics’ fees | 4,256 | 4,189 | 3,106 | |||||||||
Ps. | 5,989 | Ps. | 5,793 | Ps. | 4,040 | |||||||
F-31
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
F-32
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||
2006 | 2005 | |||||||
Assets: | ||||||||
Cash and due from banks | Ps. | 932,081 | Ps. | 514,267 | ||||
Government and corporate securities | 2,635,633 | 657,708 | ||||||
Loans | 1,753,911 | 1,038,424 | ||||||
Other receivables resulting from financial brokerage | 1,327,009 | 4,504,840 | ||||||
Equity investments in other companies | 3,099 | 4,823 | ||||||
Miscellaneous receivables | 169,530 | 74,825 | ||||||
Bank premises and equipment | 10,998 | 11,362 | ||||||
Intangible assets | 907 | 898 | ||||||
Miscellaneous assets | 40 | 39 | ||||||
In process items | 13 | 239 | ||||||
Other assets | 242 | — | ||||||
Total | Ps. | 6,833,463 | Ps. | 6,807,425 | ||||
Liabilities: | ||||||||
Deposits | Ps. | 1,523,622 | Ps. | 1,309,353 | ||||
Other liabilities resulting from financial brokerage | 4,374,748 | 4,439,786 | ||||||
Sundry liabilities | 15,776 | 12,662 | ||||||
Subordinated Negotiable Obligations | 777,617 | 431,024 | ||||||
Provisions | 841 | 831 | ||||||
In process items | 128 | 3,219 | ||||||
Other Liabilities | 90 | — | ||||||
Total | Ps. | 6,692,822 | Ps. | 6,196,875 | ||||
December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Revenues recognized (*) | Ps. | 22,399 | Ps. | 32,342 | Ps. | 34,162 | ||||||
Expenses incurred | 1,762 | 1,078 | 959 |
(*) | Interests and adjustments from time deposits of Banco Galicia Ps. 622 as of December 31, 2005, interests from negotiable obligations of Banco Galicia Ps. 21,302 and Ps. 30,898 as of December 31, 2006 and 2005, respectively, and interest from negotiable obligations of Galicia Uruguay Ps. 16 as of December 31, 2006. |
F-33
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Financial Income | ||||||||||||
Interest on other receivables resulting from financial brokerage: | ||||||||||||
Interest on purchased certificates of deposits | 3,667 | 4,367 | 3,006 | |||||||||
Compensatory Bond | 150,737 | 133,446 | 69,541 | |||||||||
Additional interest on current accounts and special accounts with the Argentine Central Bank | 14,811 | 16,453 | 6,816 | |||||||||
Other | 2,663 | 11,629 | 10,654 | |||||||||
Ps. | 171,878 | Ps. | 165,895 | Ps. | 90,017 | |||||||
Other | ||||||||||||
Difference in quotation of gold and foreign currency transactions | 76,166 | 58,734 | 51,426 | |||||||||
Premiums on foreign currency transactions | 3,548 | 3,865 | — | |||||||||
Interest on pre-export and export financing | 34,669 | 21,501 | 12,514 | |||||||||
Result from other credits by financial brokerage | — | — | 62,876 | |||||||||
Other | 34,477 | 15,126 | 5,285 | |||||||||
Ps. | 148,860 | Ps. | 99,226 | Ps. | 132,101 | |||||||
Financial Expenses | ||||||||||||
Interest on other liabilities resulting from financial brokerage: | ||||||||||||
Discounts on negotiable obligations | — | 102 | 352 | |||||||||
Interest on negotiable obligations | 225,903 | 182,394 | 38,956 | |||||||||
Interest on other liabilities resulting from financial brokerage from other banks and international entities | 100,559 | 86,780 | 133,250 | |||||||||
Ps. | 326,462 | Ps. | 269,276 | Ps. | 172,558 | |||||||
Other interest: | ||||||||||||
Interest on Argentine Central Bank loans | 109,459 | 193,426 | — | |||||||||
Interests on financial assistance | — | — | 199,079 | |||||||||
CER adjustment on Argentine Central Bank advances | 69,156 | 79,124 | 56,582 | |||||||||
Other | 96,894 | 61,848 | 67,584 | |||||||||
Ps. | 275,509 | Ps. | 334,398 | Ps. | 323,245 | |||||||
Other: | ||||||||||||
Adjustment valuation public sector loans | 122,261 | — | — | |||||||||
Contributions to the deposit insurance system | 15,771 | 12,059 | 15,176 | |||||||||
Premiums on repo transactions | 34,586 | 16,235 | 4,423 | |||||||||
Contributions and taxes on financial income | 52,865 | 36,700 | 33,656 | |||||||||
Charge for impairment of loans | — | — | 3,720 | |||||||||
Other | 2,754 | 4,019 | 169 | |||||||||
Ps. | 228,237 | Ps. | 69,013 | Ps. | 57,144 | |||||||
F-34
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Income from services | ||||||||||||
Other Commissions on credit cards | 279,598 | 198,086 | 167,831 | |||||||||
Safety rental | 10,007 | 7,928 | 6,230 | |||||||||
Insurance premiums | 39,296 | 26,503 | 20,865 | |||||||||
Other | 39,092 | 36,589 | 28,632 | |||||||||
Ps. | 367,993 | Ps. | 269,106 | Ps. | 223,558 | |||||||
Expenses for services | ||||||||||||
Other Gross revenue taxes | Ps. | 36,671 | Ps. | 25,269 | Ps. | 23,960 | ||||||
Linked with credit cards | 58,342 | 33,609 | 21,996 | |||||||||
Other | 5,278 | 9,187 | 5,904 | |||||||||
Ps. | 100,291 | Ps. | 68,065 | Ps. | 51,860 | |||||||
Administrative expenses | ||||||||||||
Other operating expenses Rentals | 28,032 | 21,036 | 17,141 | |||||||||
Electricity and communications | 41,104 | 31,115 | 27,082 | |||||||||
Amortization of organization and development expenses | 34,904 | 36,480 | 47,235 | |||||||||
Depreciation of bank premises and equipment | 37,095 | 36,450 | 38,091 | |||||||||
Maintenance and repair expenses | 31,979 | 27,905 | 24,929 | |||||||||
Other operating expenses | 43,902 | 34,237 | 25,505 | |||||||||
Ps. | 217,016 | Ps. | 187,223 | Ps. | 179,983 | |||||||
Miscellaneous income | ||||||||||||
Other Interest on miscellaneous receivables | 58,143 | 15,426 | 15,461 | |||||||||
Premiums and commissions from insurance business | 59,984 | 64,913 | 89,315 | |||||||||
Other | 33,049 | 30,722 | 29,572 | |||||||||
Ps. | 151,176 | Ps. | 111,061 | Ps. | 134,348 | |||||||
Miscellaneous losses | ||||||||||||
Other Claims | 1,288 | 1,303 | 1,270 | |||||||||
Amortization of goodwill | 20,478 | 24,574 | 25,499 | |||||||||
Commissions and expenses on insurance business | 53,074 | 54,476 | 78,511 | |||||||||
Other | 13,483 | 44,185 | 51,839 | |||||||||
Ps. | 88,323 | Ps. | 124,538 | Ps. | 157,119 | |||||||
F-35
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
F-36
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
Computable Capital as a % | ||||||||||||
Minimum Capital. | Computable Capital. | of Minimum Capital. | ||||||||||
December 31, 2006 | Ps. | 1,084,313 | Ps. | 1,861,559 | 171.68 | |||||||
December 31, 2005 | Ps. | 881,546 | Ps. | 1,885,211 | 213.85 |
F-37
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
F-38
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Interest income: | ||||||||||||
Interest and fees on loans (*) | Ps. | 1,337,273 | Ps. | 1,377,432 | Ps. | 1,133,195 | ||||||
Interest and dividends on investment securities: | ||||||||||||
Tax-exempt | 54,380 | 185,854 | (5,008 | ) | ||||||||
Interest on interest bearing deposits with other banks | 874 | 68 | 44 | |||||||||
Interest on other receivables from financial brokerage | 272,635 | 261,488 | 133,150 | |||||||||
Government securities and other trading gains (loss), net | 258,098 | 491,404 | (4,337 | ) | ||||||||
Total interest income | 1,923,260 | 2,316,246 | 1,257,044 | |||||||||
Interest expense | ||||||||||||
Interest on deposits | 440,784 | 266,759 | 143,533 | |||||||||
Interest on securities sold under agreements to repurchase | 34,586 | 16,235 | 4,423 | |||||||||
Interest on short-term liabilities from financial intermediation | 60,032 | 42,806 | 27,543 | |||||||||
Interest on long-term liabilities from financial intermediation (*) | 1,124,644 | 1,470,250 | 869,571 | |||||||||
Total interest expense | 1,660,046 | 1,796,050 | 1,045,070 | |||||||||
Net interest income | 263,214 | 520,196 | 211,974 | |||||||||
Provision for loan losses Net | 28,628 | (54,512 | ) | (130,651 | ) | |||||||
Net interest income /(expense) after provision for loan losses | 234,586 | 574,708 | 342,625 | |||||||||
(*) | Includes CER/CVS adjustments. |
F-39
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Non-interest income: | ||||||||||||
Service charges on deposit accounts | Ps. | 125,687 | Ps. | 102,606 | Ps. | 80,364 | ||||||
Credit-card service charges and fees | 316,324 | 253,688 | 225,654 | |||||||||
Other commissions | 435,109 | 325,988 | 250,134 | |||||||||
Income from equity in other companies | — | 6,662 | 2,990 | |||||||||
Premiums and commissions on insurance business | 59,984 | 64,913 | 91,776 | |||||||||
Gain on Sale of Other Investment | 93,575 | — | — | |||||||||
Other | 219,047 | 131,410 | 132,856 | |||||||||
Total non-interest income | Ps. | 1,249,726 | Ps. | 885,267 | Ps. | 783,774 | ||||||
Non-interest expense: | ||||||||||||
Commissions | 144,240 | 90,720 | 65,351 | |||||||||
Salaries and social security charges | 415,406 | 330,428 | 241,980 | |||||||||
Fees and external administrative services | 102,799 | 82,910 | 62,127 | |||||||||
Depreciation of bank premises and equipment | 37,095 | 36,450 | 38,091 | |||||||||
Personnel services | 46,622 | 30,018 | 27,037 | |||||||||
Rentals | 28,032 | 21,036 | 17,141 | |||||||||
Electricity and communications | 41,104 | 31,115 | 27,082 | |||||||||
Advertising and publicity | 84,507 | 68,132 | 37,796 | |||||||||
Taxes | 158,352 | 113,005 | 113,754 | |||||||||
Amortization of organization and development expenses | 34,904 | 36,480 | 47,235 | |||||||||
Loss from equity in other companies | 14,362 | — | — | |||||||||
Maintenance and repair expenses | 31,979 | 27,905 | 24,929 | |||||||||
Minority interest | 19,016 | 34,609 | 14,302 | |||||||||
Commissions and expenses on insurance business | 53,072 | 60,903 | 80,939 | |||||||||
Amortization of “Amparo claims” | — | 122,279 | 121,010 | |||||||||
Other Provisions and reserves | 62,424 | 99,754 | 134,135 | |||||||||
Other | 135,074 | 147,691 | 139,543 | |||||||||
Total non-interest expense | Ps. | 1,408,988 | Ps. | 1,333,435 | Ps. | 1,192,452 | ||||||
Income / (loss) before tax expense | 75,324 | 126,540 | (66,053 | ) | ||||||||
Income tax expense | (94,238 | ) | (19,302 | ) | (43,818 | ) | ||||||
Net (loss) / income | Ps. | (18,914 | ) | Ps. | 107,238 | Ps. | (109,871 | ) | ||||
F-40
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||
2006 | 2005 | |||||||
Assets: | ||||||||
Cash and due from banks | Ps. | 2,308,819 | Ps. | 1,045,735 | ||||
Interest-bearing deposits in other banks | 607,998 | 212,851 | ||||||
Federal funds sold and securities purchased under resale agreements or similar agreements | 204,191 | 284,787 | ||||||
Trading account assets | 208,188 | 789,985 | ||||||
Available for sale securities | 5,993,795 | 6,605,532 | ||||||
Loans | 10,186,582 | 11,067,481 | ||||||
Allowances for loan losses | (329,562 | ) | (539,894 | ) | ||||
Fixed assets | 490,290 | 484,198 | ||||||
Compensatory and Hedge Bonds to be received | 401,335 | 4,154,989 | ||||||
Other assets | 3,798,049 | 1,750,235 | ||||||
Total assets | Ps. | 23,869,685 | Ps. | 25,855,899 | ||||
Liabilities and Shareholders’ Equity: | ||||||||
Deposits | Ps. | 10,692,751 | Ps. | 8,370,590 | ||||
Short-term borrowing | 281,286 | 446,125 | ||||||
Other liabilities | 3,480,026 | 2,380,839 | ||||||
Long-term debt | 7,457,042 | 12,631,719 | ||||||
Commitments and contingent liabilities | 182,927 | 254,351 | ||||||
Minority interest in Consolidated Subsidiaries | 167,185 | 145,499 | ||||||
Common stock | 1,241,407 | 1,241,407 | ||||||
Other shareholders’ equity | 367,061 | 385,369 | ||||||
Total liabilities and shareholders’ equity | Ps. | 23,869,685 | Ps. | 25,855,899 | ||||
December 31, 2006 | December 31, 2005 | |||||||||||||||||||||||
Unrealized | Unrealized | |||||||||||||||||||||||
Carrying value | Gains/(Losses) | Market value | Carrying value | Gains/(Losses) | Market value | |||||||||||||||||||
BODEN 2012 Bonds – Compensatory Bond and Hedge Bond | 3,582,858 | 89,441 | 3,394,991 | 987,951 | 104,757 | 876,661 | ||||||||||||||||||
Fiscal Credit Certificate (1) | — | — | — | 34,458 | — | 34,458 | ||||||||||||||||||
Bogar Bonds | 426,851 | 168,908 | 397,660 | 3,823,299 | 1,531,789 | 3,366,792 | ||||||||||||||||||
GalTrust I | 571,582 | (7,443 | ) | 355,721 | 536,509 | (74,673 | ) | 253,418 | ||||||||||||||||
Discount Bonds | 691,929 | 125,251 | 387,604 | 705,746 | 56,581 | 311,655 | ||||||||||||||||||
Other assets | 720,575 | (19,356 | ) | 678,612 | 517,569 | (10,204 | ) | 507,365 | ||||||||||||||||
TOTAL | Ps. | 5,993,795 | Ps. | 356,801 | Ps. | 5,214,588 | Ps. | 6,605,532 | Ps. | 1,608,250 | Ps. | 5,350,349 | ||||||||||||
(1) | These instruments can be used to repay taxes, including the value-added tax |
F-41
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
December 31, 2006 | ||||||||||||||||||||
Maturing after 1 | Maturing after | |||||||||||||||||||
Maturing within | year but within | 5 years but within | Maturing after | |||||||||||||||||
Carrying Value | 1 year | 5 years | 10 years | 10 years | ||||||||||||||||
Boden 2012 Bonds – Compensatory Bond and Hedge Bond | 3,582,858 | 597,143 | 2,388,572 | 597,143 | — | |||||||||||||||
Bogar Bonds | 426,851 | 22,466 | 110,457 | 228,964 | 64,964 | |||||||||||||||
GalTrust I | 571,582 | — | 63 | 414,954 | 156,565 | |||||||||||||||
Discount Bonds | 691,929 | — | — | — | 691,929 | |||||||||||||||
Other assets | 720,575 | 323,876 | 353,479 | 37,753 | 5,467 | |||||||||||||||
TOTAL | Ps. | 5,993,795 | 943,485 | 2,852,571 | 1,278,814 | 918,925 | ||||||||||||||
December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Total revenues:(*) | ||||||||||||
Republic of Argentina | Ps. | 3,315,964 | Ps. | 3,196,626 | Ps. | 2,313,069 | ||||||
Republic of Uruguay | 82,194 | 136,240 | 119,812 | |||||||||
Grand Cayman Island | — | 1,009 | 2,362 | |||||||||
Net income (loss), net of monetary effects allocable to each country: | ||||||||||||
Republic of Argentina | (64,399 | ) | 4,639 | (76,207 | ) | |||||||
Republic of Uruguay | 45,485 | 99,804 | (33,953 | ) | ||||||||
Grand Cayman Island | — | 2,795 | 289 | |||||||||
Total assets: | ||||||||||||
Republic of Argentina | 23,093,931 | 25,035,273 | 22,927,642 | |||||||||
Republic of Uruguay | 540,244 | 584,189 | 707,252 | |||||||||
Grand Cayman Island | — | 16,262 | 15,660 | |||||||||
Fixed assets | ||||||||||||
Republic of Argentina | 479,184 | 472,832 | 477,227 | |||||||||
Republic of Uruguay | 11,106 | 11,366 | 11,955 | |||||||||
Miscellaneous assets | ||||||||||||
Republic of Argentina | 271,067 | 199,113 | 159,994 | |||||||||
Republic of Uruguay | 40 | 39 | 39 | |||||||||
Goodwill | ||||||||||||
Republic of Argentina | 65,165 | 85,003 | 115,080 | |||||||||
Other intangible assets | ||||||||||||
Republic of Argentina | 436,724 | 404,459 | 522,924 | |||||||||
Republic of Uruguay | 907 | 898 | — | |||||||||
Geographical segment assets as a percentage of total assets | ||||||||||||
Republic of Argentina | 97,71 | % | 97.66 | % | 96.94 | % | ||||||
Republic of Uruguay | 2,29 | % | 2.28 | % | 2.99 | % | ||||||
Grand Cayman Island | — | 0.06 | % | 0.07 | % |
(*) | The caption Revenues include financial income, income from services and miscellaneous income. |
F-42
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||
2006 | 2005 | |||||||
Commitments to extend credit | Ps. | 624,847 | Ps. | 397,714 | ||||
Standby letters of credit | 129,021 | 54,299 | ||||||
Guarantees granted | 123,790 | 223,055 | ||||||
Acceptances | 35,353 | 23,938 |
December 31, | ||||||||
2006 | 2005 | |||||||
Preferred counter-guarantees | Ps. | 32,783 | Ps. | 32,788 | ||||
Other counter-guarantees | 21,599 | 15,658 |
December 31, | ||||||||
2006 | 2005 | |||||||
Checks drawn on the Bank | Ps. | 162,986 | Ps. | 110,211 | ||||
Checks drawn on the other Bank | 187,358 | 193,267 | ||||||
Bills and other items for collection | 1,184,353 | 896,801 |
F-43
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
Memorandum Accounts | Fair Value | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
Option contracts: | ||||||||||||||||
Written put options (1) | Ps. | 175,923 | Ps. | 184,801 | Ps. | 2,592 | Ps. | 7,977 |
(1) | As established by Section 4, subsection a and Section 6 of Decree 1836/02 and Argentine Central Bank Communiqué “A” 3828, in connection with the second exchange offered by the government to exchange restructured deposits for government bonds, the Bank granted an option to sell coupons to the holders of restructured deposits certificates who had opted to receive Boden 2013 Bonds, Boden 2006 Bonds and Boden 2012 Bonds in exchange for their certificates. |
F-44
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
2006 | 2005 | |||||||||||||||
Book Value | Fair Value | Book Value | Fair Value | |||||||||||||
Derivative activities: (see Note 29) | ||||||||||||||||
Liabilities | Ps. | 175,923 | Ps. | 2,592 | Ps. | 184,801 | Ps. | 7,977 | ||||||||
Non derivative activities: | ||||||||||||||||
Assets: | ||||||||||||||||
Cash and due from banks (1) | Ps. | 2,294,849 | Ps. | 2,294,849 | Ps. | 1,041,158 | Ps. | 1,041,158 | ||||||||
Government securities (2) | ||||||||||||||||
Trading | 147,729 | 146,362 | 725,343 | 725,345 | ||||||||||||
Without quotation Securities | 431,753 | 402,562 | 4,591,071 | 3,750,597 | ||||||||||||
Investment | 2,608,827 | 2,473,029 | 650,924 | 577,599 | ||||||||||||
Loans (3) | 10,514,552 | 10,322,756 | 10,555,176 | 9,717,621 | ||||||||||||
Compensatory and Hedge Bond to be received (4) | 401,335 | 386,890 | 4.154.989 | 3,792,416 | ||||||||||||
Others (5) | 5,305,353 | 4,744,340 | 2,113,060 | 1,774,363 | ||||||||||||
Liabilities: | ||||||||||||||||
Deposits (6) | Ps. | 10,779,369 | Ps. | 10,754,230 | Ps. | 8,421,660 | Ps. | 8,368,522 | ||||||||
Other liabilities resulting from financial Intermediation: | ||||||||||||||||
Argentine Central Bank (7) | 3,025,977 | 2,741,104 | 8,850,986 | 7,675,211 | ||||||||||||
Banks and international entities and Loans from Domestic Financial Institutions (8) and Negotiable obligations (9) | 4,834,673 | 4,814,875 | 4,580,435 | 4,120,395 | ||||||||||||
Others (10) | 2,741,920 | 2,734,267 | 1,413,316 | 1,403,830 |
F-45
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
F-46
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
F-47
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
F-48
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
F-49
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
F-50
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
F-51
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
CONDITIONS | GALTRUST I | GALTRUST II | GALTRUST V | GALICIA | ||||
CREATION DATE | 10/13/2000 | 12/17/2001 | 12/17/2001 | 04/16/2002 | ||||
MATURITY DATE | 10/10/2015 | 12/10/2010 | 01/10/2016 | 05/06/2032 | ||||
TRUSTEE | FIRST TRUST OF NEW | FIRST TRUST OF NEW | FIRST TRUST OF NEW | BAPRO MANDATOS Y | ||||
YORK N.A. | YORK N.A. | YORK N.A. | NEGOCIOS S.A. | |||||
RATE (*) | C.E.R. + 10% T.N.A. | C.E.R. + 9.75% T.N.A. | C.E.R. + 9.75% T.N.A. | C.E.R. + 4% | ||||
TRUST ASSETS | LOANS GRANTED TO | MORTGAGE LOANS | MORTGAGE LOANS | SECURED LOANS | ||||
PROVINCIAL | ||||||||
GOVERNMENTS | ||||||||
BALANCE AS OF 12/31/2006 | Ps. 571,582 | Ps. 7,683 | Ps. 16,457 | Ps. 58,159 | ||||
TOTAL TRANSFERRED PORTFOLIO | US$ 490,224 (1) | US$ 61,191 | US$ 57,573 | Ps.108,000 | ||||
“A” DEBT SECURITIES | F.V. US$ 100,000 | F.V. US$ 45,000 | F.V. US$ 42,000 | — | ||||
“B” DEBT SECURITIES | F.V. US$ 200,000 | — | — | — | ||||
CERTIFICATES OF PARTICIPATION | F.V. US$ 200,000 | F.V. US$ 16,191 | F.V. US$ 15,573 | F.V. Ps. 108,000 |
(1) | The remaining US$ 9,776 was transferred in cash. |
CREDITOS | CREDITOS | |||||||||
GALICIA HIPOTECAS | INMOBILIARIOS | INMOBILIARIOS | ||||||||
CONDITIONS | COMERCIALES | GALICIA I | GALICIA II | |||||||
CREATION DATE | 02/22/2005 | 08/17/2005 | 10/12/2005 | |||||||
MATURITY DATE | 07/12/2013 | 03/15/2015 | 12/15/2025 | |||||||
TRUSTEE | DEUTSCHE BANK S.A. | DEUTSCHE BANK S.A. | DEUTSCHE BANK S.A. | |||||||
RATE (*) | C.E.R. + 0.05% T.N.A. | MINIMUM 8 % T.N.A. | MINIMUM 8 % T.N.A. | |||||||
AND | AND | |||||||||
MAXIMUM 18 % | MAXIMUM 18 % | |||||||||
T.N.A. | T.N.A. | |||||||||
TRUST ASSETS | COMMERCIAL | MORTGAGE LOANS | MORTGAGE LOANS | |||||||
MORTGAGE LOANS | ||||||||||
BALANCE AS OF 12/31/2006 | Ps. 6,892 | Ps. 18,776 | Ps. 43,347 | |||||||
TOTAL TRANSFERRED PORTFOLIO | Ps. 29,059 | Ps. 91,000 | Ps. 150,000 | |||||||
“A” DEBT SECURITIES | F.V. Ps. 24,119 | F.V. Ps. 72,800 | F.V. Ps. 109,000 | |||||||
“B” DEBT SECURITIES | — | — | — | |||||||
CERTIFICATES OF PARTICIPATION | F.V. Ps. 4,940 | F.V. Ps. 18,200 | F.V. Ps. 41,000 |
F-52
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
GALICIA | ||||||||
GALICIA PERSONALES | PERSONALES | GALICIA PRENDAS | ||||||
CONDITIONS | II | III | COMERCIALES I | GALICIA LEASING I | ||||
CREATION DATE | 01/25/2006 | 05/16/2006 | 07/03/2006 | 09/22/2006 | ||||
MATURITY DATE | 09/15/2007 | 09/15/2007 | 05/15/2009 | 11/15/2007 | ||||
(ESTIMATED DATE FOR | (ESTIMATED DATE | (ESTIMATED DATE | (ESTIMATED DATE | |||||
CLASS B DEBT | FOR CLASS B DEBT | FOR CLASS B DEBT | FOR CLASS A1 DEBT | |||||
SECURITIES) | SECURITIES) | SECURITIES) | SECURITIES) | |||||
11/15/2009 | 03/15/2011 | 02/15/2011 | 07/15/2009 | |||||
(ESTIMATED DATE FOR | (ESTIMATED DATE | (ESTIMATED DATE | (ESTIMATED DATE | |||||
PARTICIPATION | FOR PARTICIPATION | FOR PARTICIPATION | FOR CLASS A2 DEBT | |||||
CERTIFICATES) | CERTIFICATES) | CERTIFICATES) | SECURITIES) | |||||
11/15/2009 | ||||||||
(ESTIMATED DATE | ||||||||
FOR CLASS B DEBT | ||||||||
SECURITIES) | ||||||||
05/15/2011 | ||||||||
(ESTIMATED DATE | ||||||||
FOR PARTICIPATION | ||||||||
CERTIFICATES) | ||||||||
TRUSTEE | DEUTSCHE BANK S.A. | DEUTSCHE BANK S.A. | DEUTSCHE BANK S.A. | DEUTSCHE BANK S.A. | ||||
RATE (*) | THE HIGHEST RATE | THE HIGHEST RATE | CLASS “A” DEBT | CLASS “A” DEBT | ||||
BETWEEN: | BETWEEN: | SECURITIES, | SECURITIES, | |||||
BADLAR FOR TIME | BADLAR FOR TIME | MINIMUM 10.5% | MINIMUM 10.5% | |||||
DEPOSITS OF 30 TO 35 | DEPOSITS OF 30 TO | T.N.A. | T.N.A. | |||||
DAYS AND OF MORE | 35 DAYS AND OF | MAXIMUM 20% T.N.A. | MAXIMUM 20% T.N.A. | |||||
THAN A MILLION PESOS | MORE THAN A | |||||||
FOR PRIVATE BANKS, | MILLION PESOS FOR | CLASS “B” DEBT | CLASS “B” DEBT | |||||
AND | PRIVATE BANKS, AND | SECURITIES, | SECURITIES, | |||||
CER VARIATION | CER VARIATION | MINIMUM 11.5% | MINIMUM 11.5% | |||||
PERCENTAGE | PERCENTAGE | T.N.A. | T.N.A. | |||||
EXPRESSED AS T.N.A. | EXPRESSED AS T.N.A. | MAXIMUM 21% T.N.A. | MAXIMUM 21% T.N.A. | |||||
UP TO A MAXIMUM OF | ||||||||
21% | ||||||||
TRUST ASSETS | PERSONAL LOANS | PERSONAL LOANS | PLEDGE LOANS | ASSETS UNDER | ||||
FINANCIAL LEASES | ||||||||
BALANCE AS OF 12/31/2006 | Ps. 21,155 | Ps. 13,355 | Ps. 12,409 | Ps. 20,653 | ||||
TOTAL TRANSFERRED PORTFOLIO | Ps. 97,367 | Ps. 100,000 | Ps. 86,623 | Ps. 150,000 | ||||
“A” DEBT SECURITIES | F.V. Ps. 77,893 | F.V. Ps. 85,000 | F.V. Ps. 73,629 | F.V. Ps. 127,500 | ||||
“B” DEBT SECURITIES | F.V. Ps. 9,737 | F.V. Ps. 7,500 | F.V. Ps. 6,930 | F.V. Ps. 12,000 | ||||
CERTIFICATES OF PARTICIPATION | F.V. Ps. 9,737 | F.V. Ps. 7,500 | F.V. Ps. 6,064 | F.V. Ps. 10,500 |
F-53
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
Tarjeta | Tarjeta | Tarjetas | Tarjetas | |||||||||
Financial trust | Nevada II | Nevada III | Cuyanas Trust I | Cuyanas Trust II | ||||||||
Creation date | 12/01/2004 | 05/24/2005 | 11/23/2005 | 04/04/2006 | ||||||||
Maturity date | 07/22/2007 | 02/25/2008 | 11/15/2007 | 02/15/2008 | ||||||||
Interest rate | D.S.“A”: CER +3% | |||||||||||
Min 8% Max 15% | ||||||||||||
TNA | CER + Margin | D.S. “A”: 10.95% | D.S. “A”: 12% | |||||||||
Min 10% | ||||||||||||
D.S. “B”: CER +5% Min 10% Max 20% | Max 20% | D.S."B": 13.50% | D.S.“B”: 13% | |||||||||
TNA | ||||||||||||
Trustee | Banco Patagonia | Banco Patagonia | Equity Trust | Equity Trust | ||||||||
S.A. | S.A. | Company | Company | |||||||||
(Argentina) S.A. | (Argentina) S.A. | |||||||||||
Amount placed | Ps. 16,000 | Ps. 25,000 | Ps. 26,784 | Ps. 37,680 | ||||||||
“A” debt securities | Ps. 12,000 | Ps. 19.000 | Ps. 21,427 | Ps. 30,144 | ||||||||
“B” debt securities | Ps. 2,400 ** | Ps. — | Ps. 2,678 ** | Ps. 3,768 | ||||||||
Certificates of Participation | Ps. 1,600 | Ps. 6,000 | Ps. 2,679 | Ps. 3,768 |
Tarjetas | Tarjetas | |||
Financial trust | Cuyanas Trust III | Cuyanas Trust IV | ||
Creation date | 07/14/2006 | 11/01/2006 | ||
Maturity date | 07/15/2008 | 11/15/2008 | ||
Interest rate | D.S. “A”: 10.87% | Badlar plus | ||
differential margin | ||||
D.S."B”: 12.75% | 2.96% | |||
Trustee | Equity Trust | Equity Trust | ||
Company | Company | |||
(Argentina) S.A. | (Argentina) S.A. | |||
Amount placed | Ps. 22,407 | Ps. 68,120 | ||
“A” debt securities | Ps. 17,925 | Ps. 54,495 | ||
“B” debt securities | Ps. 2,241 | Ps. — | ||
Certificates of Participation | Ps.2,241 | Ps.13,625 |
(**) | As of December 31, 2006, Class “B” Debt Securities have been fully settled. |
F-54
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
Tarjeta | Tarjeta | |||||
Tarjeta | Naranja Trust | Naranja Trust | ||||
Financial trust | Naranja Trust I | II | III | |||
Creation date | 11/07/2005 | 02/16/2006 | 08/15/2006 | |||
Maturity date | 05/20/2008 | 12/20/2007 | 09/20/2008 | |||
Interest rate | D.S. “A”: CER VAR + | D.S. “A”: CER | D.S. “A”: | |||
1.18% or TE + 2% | VAR Maximum | Caps: | ||||
Maximum 18% | 20% Minimum | Minimum 10.5% | ||||
Minimum 9% | 10.5% | nominal annual | ||||
Maximum 20% | ||||||
D.S. “B”: CER VAR + | D.S. “B”: | nominal annual | ||||
2.4% or TE + 3% | Maximum: 21% | D.S. “B”: | ||||
Maximum 20% | nominal annual | Caps: | ||||
Minimum of 11% | Minimum 11% | |||||
nominal annual | ||||||
Maximum 21% | ||||||
nominal annual | ||||||
Amount placed | 94,500 | 80,000 | 139,342 | |||
Type of fiduciary Debt | Debt securities | Debt securities | Debt securities | |||
Trustee | Equity Trust | Equity Trust | Equity Trust | |||
Company | Company | Company | ||||
(Argentina) S.A. | (Argentina) S.A. | (Argentina) S.A. | ||||
Class“A” securities | Ps.80,000 | Ps.68,000 | Ps.118,441 | |||
Class “B” securities | Ps. 7,000 | Ps.6,000 | Ps.10,451 | |||
Certificates of Participation | Ps. 7,500 | Ps.6,000 | Ps.10,451 |
Tarjetas del | ||
Financial trust | Mar – Serie II | |
Creation date | 10/17/2006 | |
Maturity date | 1/10/2015 | |
Interest rate | D.S.:“A” 13% | |
D.S.“B”: 14% | ||
D.S.“C”: 14.50% | ||
D.S.“D”: 15% | ||
Trustee | Banco de Galicia y | |
Buenos Aires SA | ||
Amount placed | Ps. 6,000 | |
“A” debt securities | Ps. 1,200 | |
“B” debt securities | Ps. 1,200 | |
“C” debt securities | Ps. 1,200 | |
“D” debt securities | PS. 1,200 | |
Certificates of Participation | Ps.1,200 |
F-55
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
CONDITIONS | HYDRO I | |
CREATION DATE | 10/12/2005 | |
MATURITY DATE | 09/05/2017 | |
TRUSTOR | CONSORCIO DE EMPRESAS | |
MENDOCINAS PARA | ||
POTRERILLOS S.A. | ||
TRUSTEE | BANCO DE GALICIA Y BS. | |
AS. S.A. | ||
TRUST ASSETS | LOANS FOR ELECTRIC | |
POWER SUPPLY, | ||
SUBSIDIES, ROYALTIES, | ||
AND INTERESTS. | ||
RATE (*) | 7% T.N.A. UNTIL 09/05/06 | |
AND THEREAFTER | ||
VARIABLE T.N.A. EQUAL TO | ||
T.E.C + 5% | ||
(**) | ||
SECURITIES RECEIVED | CLASS “B” DEBT | |
BY THE BANK | SECURITIES F/V $25,523 | |
BALANCE AS OF 12/31/2006 | Ps. 25,094 | |
BALANCE AS OF 12/31/2005 | Ps. 25,655 |
EDIFICIO BOUCHARD | ||
CONDITIONS | PLAZA | |
CREATION DATE | 12/20/2005 | |
MATURITY DATE | 06/29/2008 | |
TRUSTOR | LUDWING INVESTMENTS | |
S.A. | ||
TRUSTEE | NACIÓN FIDEICOMISOS | |
S.A. | ||
TRUST ASSETS | LOANS TRANSFERRED | |
RATE (*) | PRIVATE BANK T.E.C. + | |
6.25% T.N.A. | ||
(**) | ||
SECURITIES SUBSCRIBED BY THE BANK | ADDITIONAL DEBT | |
SECURITIES $10,500 | ||
BALANCE AS OF 12/31/2006 | Ps. 11,327 | |
BALANCE AS OF 12/31/2005 | Ps. 10,546 |
(*) | Applicable to debt securities only. | |
(**) | T.E.C. stands for adjusted survey rate. |
F-56
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
F-57
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
F-58
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
Grupo Galicia | ||||||||||||||||||||||||||||||||||||||||||||||||
Buenos | Rest of | Overhead | ||||||||||||||||||||||||||||||||||||||||||||||
Aires | the | Regional | Other | and | ||||||||||||||||||||||||||||||||||||||||||||
Grupo | Metropolitan | Country | Head | Credit | Interna- | Financial | Other Equity | Other Grupo | Corporate | Consolidated | ||||||||||||||||||||||||||||||||||||||
Galicia | Branches | Branches | Office | Cards | tional | Businesses | Investments | Insurance | Businesses | Adjustments | Total | |||||||||||||||||||||||||||||||||||||
Year ended December 31, 2006: | ||||||||||||||||||||||||||||||||||||||||||||||||
Net Financial Income / (Loss) | 118,407 | 263,509 | 176,497 | (436,718 | ) | 157,474 | 32,339 | (1,057 | ) | — | 17,049 | 472 | 50,252 | 378,224 | ||||||||||||||||||||||||||||||||||
Net Income / (Loss) from Services | — | 231,030 | 147,759 | 89,554 | 289,798 | 969 | 2,732 | — | — | 7,870 | (97,711 | ) | 672,001 | |||||||||||||||||||||||||||||||||||
Provision for Loan Losses | — | 18,124 | 19,857 | (21,285 | ) | 53,239 | 2,121 | 1 | — | — | 1 | 38,811 | 110,869 | |||||||||||||||||||||||||||||||||||
Operating Income | 118,407 | 476,415 | 304,399 | (325,879 | ) | 394,033 | 31,187 | 1,674 | — | 17,049 | 8,341 | (86,270 | ) | 939,356 | ||||||||||||||||||||||||||||||||||
Operating Expenses | 10,466 | 333,739 | 239,984 | 102,700 | 263,789 | 16,582 | 1,635 | — | 11,234 | 7,340 | (12,905 | ) | 974,564 | |||||||||||||||||||||||||||||||||||
Other Income / (Loss) | (1,085 | ) | 1,674 | 1,718 | (2,811 | ) | 20,666 | 34,454 | 2,573 | (16,777 | ) | 6,910 | 791 | 81,435 | 129,548 | |||||||||||||||||||||||||||||||||
Minority Interest | — | — | — | — | (24,124 | ) | (6,304 | ) | — | — | (3 | ) | — | 11,415 | (19,016 | ) | ||||||||||||||||||||||||||||||||
Pre-tax Income / (Loss) | 106,856 | 144,350 | 66,133 | (431,390 | ) | 126,786 | 42,755 | 2,612 | (16,777 | ) | 12,722 | 1,792 | 19,485 | 75,324 | ||||||||||||||||||||||||||||||||||
Income tax provision | 45,645 | 153 | 70 | (458 | ) | 55,889 | 239 | 399 | — | 3,697 | 864 | (12,260 | ) | 94,238 | ||||||||||||||||||||||||||||||||||
Net Income / (Loss) | 61,211 | 144,197 | 66,063 | (430,932 | ) | 70,897 | 42,516 | 2,213 | (16,777 | ) | 9,025 | 928 | 31,745 | (18,914 | ) | |||||||||||||||||||||||||||||||||
Net Income as a Percentage of Consolidated Net Income | (324 | %) | (762 | %) | (349 | %) | 2,278 | % | (375 | %) | (225 | %) | (12 | %) | 89 | % | (48 | %) | (5 | %) | (168 | %) | 100 | % | ||||||||||||||||||||||||
Average Loans of private sector | 1,981,416 | 1,908,564 | 993,569 | 1,149,257 | 448,707 | — | — | — | — | — | 6,481,513 | |||||||||||||||||||||||||||||||||||||
Average Deposits | 4,042,898 | 2,592,661 | 2,134,970 | 357,658 | — | — | — | — | 374,280 | 9,502,466 |
F-59
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
Grupo Galicia | ||||||||||||||||||||||||||||||||||||||||||||||||
Buenos | Rest of | Overhead | ||||||||||||||||||||||||||||||||||||||||||||||
Aires | the | Regional | Other | and | ||||||||||||||||||||||||||||||||||||||||||||
Grupo | Metropolitan | Country | Head | Credit | Interna- | Financial | Other Equity | Other Grupo | Corporate | Consolidated | ||||||||||||||||||||||||||||||||||||||
Galicia | Branches | Branches | Office | Cards | tional | Businesses | Investments | Insurance | Businesses | Adjustments | Total | |||||||||||||||||||||||||||||||||||||
Year ended December 31, 2005: | ||||||||||||||||||||||||||||||||||||||||||||||||
Net Financial Income / (Loss) | 9,889 | 158,176 | 106,411 | 11,344 | 134,773 | 107,382 | (1,316 | ) | — | 17,249 | 148 | 8,647 | 552,703 | |||||||||||||||||||||||||||||||||||
Net Income / (Loss) from Services | — | 189,877 | 109,930 | 69,731 | 206,122 | 1,254 | 2,743 | — | (6,853 | ) | 5,287 | (54,326 | ) | 523,765 | ||||||||||||||||||||||||||||||||||
Provision for Loan Losses | — | 14,019 | 1,172 | (80,857 | ) | 28,196 | 3,634 | 93 | — | — | — | 110,473 | 76,730 | |||||||||||||||||||||||||||||||||||
Operating Income | 9,889 | 334,034 | 215,169 | 161,932 | 312,699 | 105,002 | 1,334 | — | 10,396 | 5,435 | (156,152 | ) | 999,738 | |||||||||||||||||||||||||||||||||||
Operating Expenses | 12,881 | 251,552 | 170,943 | 139,545 | 179,294 | 18,347 | 1,459 | — | 11,641 | 4,382 | (9,076 | ) | 780,968 | |||||||||||||||||||||||||||||||||||
Other Income / (Loss) | (137,684 | ) | 1,504 | 893 | (171,976 | ) | 7,693 | 195,448 | 3,943 | 16 | 12,839 | (2,043 | ) | 31,746 | (57,621 | ) | ||||||||||||||||||||||||||||||||
Minority Interest | — | — | — | — | (21,180 | ) | (3,995 | ) | — | — | (1 | ) | — | (9,433 | ) | (34,609 | ) | |||||||||||||||||||||||||||||||
Pre-tax Income / (Loss) | (140,676 | ) | 83,986 | 45,119 | (149,589 | ) | 119,918 | 278,108 | 3,818 | 16 | 11,593 | (990 | ) | (124,763 | ) | 126,540 | ||||||||||||||||||||||||||||||||
Income tax provision | (32,383 | ) | — | — | — | 56,807 | — | 300 | — | 342 | 584 | (6,348 | ) | 19,302 | ||||||||||||||||||||||||||||||||||
Net Income / (Loss) | (108,293 | ) | 83,986 | 45,119 | (149,589 | ) | 63,111 | 278,108 | 3,518 | 16 | 11,251 | (1,574 | ) | (118,415 | ) | 107,238 | ||||||||||||||||||||||||||||||||
Net Income as a Percentage of Consolidated Net Income | (101 | %) | 78 | % | 42 | % | (139 | %) | 59 | % | 259 | % | 3 | % | — | 10 | % | (1 | %) | (110 | %) | 100 | % | |||||||||||||||||||||||||
Average Loans of private sector | — | 1,352,655 | 1,333,721 | 893,892 | 801,553 | 525,308 | — | — | — | — | — | 4,907,129 | ||||||||||||||||||||||||||||||||||||
Average Deposits | — | 2,975,161 | 1,945,808 | 2,077,205 | — | 572,871 | — | — | — | — | (13,874 | ) | 7,557,171 |
F-60
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
Grupo Galicia | ||||||||||||||||||||||||||||||||||||||||||||||||
Buenos | Rest of | Overhead | ||||||||||||||||||||||||||||||||||||||||||||||
Aires | the | Regional | Other | and | ||||||||||||||||||||||||||||||||||||||||||||
Grupo | Metropolitan | Country | Head | Credit | Interna- | Financial | Other Equity | Other Grupo | Corporate | Consolidated | ||||||||||||||||||||||||||||||||||||||
Galicia | Branches | Branches | Office | Cards | tional | Businesses | Investments | Insurance | Businesses | Adjustments | Total | |||||||||||||||||||||||||||||||||||||
Year ended December 31, 2004: | ||||||||||||||||||||||||||||||||||||||||||||||||
Net Financial Income / (Loss) | 13,085 | 93,812 | 75,320 | (158,612 | ) | 93,752 | 190,407 | 24 | — | 11,889 | 275 | (95,811 | ) | 224,141 | ||||||||||||||||||||||||||||||||||
Net Income / (Loss) from Services | — | 159,087 | 85,641 | 54,156 | 188,783 | 761 | 2,751 | — | (4,697 | ) | 4,176 | (54,365 | ) | 436,293 | ||||||||||||||||||||||||||||||||||
Provision for Loan Losses | — | (24,872 | ) | (22,889 | ) | (169,419 | ) | 20,515 | 86,748 | 71 | �� | — | — | — | 300,078 | 190,232 | ||||||||||||||||||||||||||||||||
Operating Income / (Loss) | 13,085 | 277,771 | 183,850 | (64,963 | ) | 262,020 | 104,420 | 2,704 | — | 7,192 | 4,451 | 450,254 | 470,202 | |||||||||||||||||||||||||||||||||||
Operating Expenses | 13,462 | 224,267 | 150,609 | 74,719 | 125,430 | 20,491 | 3,442 | — | 13,535 | 5,626 | (7,641 | ) | 623,940 | |||||||||||||||||||||||||||||||||||
Other Income / (Loss) | (2,904 | ) | 4,134 | 3,030 | (242,381 | ) | 11,982 | 58,449 | 8,394 | 154 | 11,154 | (424 | ) | 250,399 | 101,987 | |||||||||||||||||||||||||||||||||
Minority Interest | — | — | — | — | (22,893 | ) | (16,099 | ) | 3 | — | — | — | 24,687 | (14,302 | ) | |||||||||||||||||||||||||||||||||
Pre-tax Income / (Loss) | (3,281 | ) | 57,638 | 36,271 | (252,137 | ) | 125,679 | 126,279 | 7,659 | 154 | 4,811 | (1,599 | ) | (167,257 | ) | (66,053 | ) | |||||||||||||||||||||||||||||||
Income tax provision | 12,973 | — | — | — | 29,589 | — | 215 | — | 565 | 476 | — | 43,818 | ||||||||||||||||||||||||||||||||||||
Net Income / (Loss) | (16,254 | ) | 57,638 | 36,271 | (252,137 | ) | 96,090 | 126,279 | 7,444 | 154 | 4,246 | (2,075 | ) | (167,527 | ) | (109,871 | ) | |||||||||||||||||||||||||||||||
Net Income / (Loss) as a Percentage of Consolidated Net Loss | 15 | % | (53 | %) | (33 | %) | 230 | % | (87 | %) | (115 | %) | (7 | %) | — | (4 | %) | 2 | % | 152 | % | 100 | % | |||||||||||||||||||||||||
Average Loans of private sector | — | 1,000,728 | 1,009,655 | 718,201 | 574,293 | 818,296 | — | — | — | — | — | 4,121,173 | ||||||||||||||||||||||||||||||||||||
Average Deposits | — | 2,383,718 | 1,657,770 | 1,284,934 | — | 538,327 | — | — | — | — | (6,399 | ) | 5,858,350 |
F-61
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
Face value US$ 100 Negotiable Obligations due in 2014: US$ 92.603
Face value US$ 100 Negotiable Obligations due in 2019: US$ 115.184
F-62
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
Adjustment to prior | ||||
Assets | year results | |||
Bogar Bonds | 61,585 | |||
External Notes | (32,673 | ) | ||
CER/CVS compensation | (71,866 | ) | ||
Total | (42,954 | ) |
F-63
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
F-64
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
F-65
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
F-66
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
F-67
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
December 31, 2006 | ||||||||||||
SFAS 109 | ||||||||||||
applied to | SFAS 109 applied | |||||||||||
Argentine GAAP | to U.S. GAAP | |||||||||||
balances | adjustments | SFAS 109 | ||||||||||
Deferred tax assets | ||||||||||||
Allowance for loan losses – private sector | 112,745 | 16,031 | 128,776 | |||||||||
Compensation and Hedge Bond | — | 81,654 | 81,654 | |||||||||
Amortization of intangible assets | 59,305 | — | 59,305 | |||||||||
Compensation to be received related to the payment of deposits | — | 128,527 | 128,527 | |||||||||
Impairment of fixed assets and foreclosed assets | — | 21,551 | 21,551 | |||||||||
Debt restructure | — | 111,217 | 111,217 | |||||||||
Provision for contingencies | 43,554 | — | 43,554 | |||||||||
Loss carry forward | 538,956 | — | 538,956 | |||||||||
Total gross deferred tax assets | Ps. | 754,560 | Ps. | 358,980 | Ps. | 1,113,540 | ||||||
Deferred tax liabilities: | ||||||||||||
Provincial public debt / Discount Bond | Ps. | 189,228 | Ps. | (93,959 | ) | Ps. | 95,269 | |||||
Liabilities | 5,555 | — | 5,555 | |||||||||
Others | 53,985 | (3,379 | ) | 50,606 | ||||||||
Total gross deferred tax liabilities | Ps. | 248,768 | Ps. | (97,338 | ) | Ps. | 151,430 | |||||
Net deferred income tax asset before valuation allowance | Ps. | 505,792 | Ps. | 456,318 | Ps. | 962,110 | ||||||
Valuation allowance | (590,756 | ) | — | (590,756 | ) | |||||||
Net deferred income tax | Ps. | (84,964 | ) | Ps. | 456,318 | Ps. | 371,354 | |||||
December 31, 2005 | ||||||||||||
SFAS 109 | ||||||||||||
applied to | SFAS 109 applied | |||||||||||
Argentine GAAP | to U.S. GAAP | |||||||||||
balances | adjustments | SFAS 109 | ||||||||||
Deferred tax assets | ||||||||||||
Allowance for loan losses – private sector | 138,896 | (1,257 | ) | 137,639 | ||||||||
Compensation and Hedge Bond | — | 339,371 | 339,371 | |||||||||
Amortization of intangible assets | 62,914 | — | 62,914 | |||||||||
Compensation to be received related to the payment of deposits | — | 121,722 | 121,722 | |||||||||
Impairment of fixed assets and foreclosed assets | — | 22,040 | 22,040 | |||||||||
Debt restructure | — | 135,441 | 135,441 | |||||||||
Provision for contingencies | 57,323 | — | 57,323 | |||||||||
Others | 55,674 | (15,695 | ) | 39,979 | ||||||||
Loss carry forward | 871,093 | — | 871,093 | |||||||||
Total gross deferred tax assets | Ps. | 1,185,900 | Ps. | 601,622 | Ps. | 1,787,522 | ||||||
Deferred tax liabilities: | ||||||||||||
Provincial public debt / Discount Bond | Ps. | 334,983 | Ps. | (294,166 | ) | Ps. | 40,817 | |||||
Liabilities | 9,831 | — | 9,831 | |||||||||
Total gross deferred tax liabilities | Ps. | 344,814 | Ps. | (294,166 | ) | Ps. | 50,648 | |||||
Net deferred income tax asset before valuation allowance | Ps. | 841,086 | Ps. | 895,788 | Ps. | 1,736,874 | ||||||
Valuation allowance | (789,257 | ) | (895,788 | ) | (1,685,045 | ) | ||||||
Net deferred income tax | Ps. | 51,829 | Ps. | — | Ps. | 51,829 | ||||||
F-68
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Statutory income tax rate | 35 | % | 35 | % | 35 | % | ||||||
Tax provision computed by applying the statutory rate to the income before taxation calculated in accordance with U .S. GAAP | 1,136,729 | 262,616 | Ps. | 12,018 | ||||||||
Tax exempt income | (752,120 | ) | 20,377 | (266,452 | ) | |||||||
Valuation allowance | (661,725 | ) | (263,691 | ) | 289,858 | |||||||
Actual tax provision under U.S. GAAP | Ps. | (277,116 | ) | Ps. | 19,302 | Ps. | 35,424 | |||||
F-69
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
F-70
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
F-71
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Total impaired loans | Ps. | 460,615 | Ps. | 784,439 | Ps. | 776,973 | ||||||
Average impaired loans during the year | 586,410 | 722,172 | 1,421,478 | |||||||||
Total impaired loans with no allowance under U.S. GAAP | 10,262 | 31,718 | 35,051 | |||||||||
Cash payments received for interest on impaired loans, Recognized as income | 342 | 584 | 4,341 | |||||||||
Allowance for impaired loans under SFAS 114 | 291,882 | 397,875 | 379,484 |
F-72
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
F-73
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
F-74
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
F-75
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
December 31, | December 31, | December 31, | ||||||||||
2006 | 2005 | 2004 | ||||||||||
Galtrust I Class B Debt Securities | 4 | % | 2 | % | 6 | % | ||||||
Galtrust I Participation Certificates | 5 | % | 2 | % | 7 | % |
F-76
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
F-77
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
F-78
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
F-79
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
2006 | ||||||||||||
Estimated | U.S. GAAP | |||||||||||
Maximum | Proceeds | Carrying | ||||||||||
Potential | From collateral | Amount | ||||||||||
Payments (*) | Recourse | Liability | ||||||||||
Exchange of deposits with the financial system II | Ps. | 175,923 | Ps. | — | Ps. | 2,592 | ||||||
Other Financial guarantees | 25,131 | 2,355 | 188 | |||||||||
Ps. | 201,054 | Ps. | 2,355 | Ps. | 2,780 | |||||||
2005 | ||||||||||||
Estimated | U.S. GAAP | |||||||||||
Maximum | Proceeds | Carrying | ||||||||||
Potential | From collateral | Amount | ||||||||||
Payments (*) | Recourse | Liability | ||||||||||
Exchange of deposits with the financial system II | Ps. | 184,801 | — | Ps. | 7,977 | |||||||
Other Financial guarantees | Ps. | 16,019 | Ps. | 1,685 | Ps. | 8,584 | ||||||
Ps. | 200,820 | Ps. | 1,685 | Ps. | 16,561 | |||||||
(*) | The maximum potential payments represent a “worse-case scenario’’, and do not necessarily reflect expected results. Estimated proceeds from collateral and recourse represent the anticipated value of assets that could be liquidated or received from other parties to offset the Company’s payments under guarantees. |
F-80
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
F-81
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Net income (loss) as stated | Ps. | (18,914 | ) | Ps. | 107,238 | Ps. | (109,871 | ) | ||||
Prior year’s adjustments recorded under Argentine GAAP (Note 39 g) | — | — | (42,954 | ) | ||||||||
Loan origination fees and costs (Note 39 b.) | (9,855 | ) | (4,899 | ) | 1,092 | |||||||
Intangible assets (Note 39 c.): | ||||||||||||
Amortization of deferred expenses for setting up of branches | (8,607 | ) | (1,238 | ) | 4,827 | |||||||
Goodwill amortization | 18,612 | 26,374 | 20,988 | |||||||||
Goodwill impairment | 1,226 | 3,703 | 3,613 | |||||||||
Software costs | (6,281 | ) | (1,266 | ) | (350 | ) | ||||||
Equity investments in other companies – Impairment (Note 39 m.) | 45,442 | (22,117 | ) | — | ||||||||
Loss on exchange of National Public Debt (Note 39 d (ii)) | 591,227 | 144,050 | 129,200 | |||||||||
Provincial Public Debt (Note 39 d(iii)) | 1,790,197 | (257,013 | ) | (129,396 | ) | |||||||
Loan impairment – private sector (Note 39 d(iv)) | (41,212 | ) | (34,820 | ) | (20,122 | ) | ||||||
Loan impairment – credit cards (Note 39 d(v)) | (8,181 | ) | (1,946 | ) | 395 | |||||||
Transfers of financial assets (Note 39 i) | (22,607 | ) | 48,233 | — | ||||||||
Government Securities and other investments: | ||||||||||||
Compensatory Bond received (Note 39 e (ii)) | (61,261 | ) | 214,254 | 256,117 | ||||||||
Compensatory Bond to be received (Note 39 e (ii)) | — | 159,814 | 176,796 | |||||||||
Hedge Bond (Note 39 e(ii)) | 812,909 | 177,915 | 117,435 | |||||||||
Compensation related to the payment of deposits (Note 39 h) | (19,444 | ) | 103,651 | 35,592 | ||||||||
Impairment of other available for sale securities (Note 39 e(iii)) | 21,096 | 91,095 | (162,771 | ) | ||||||||
GDP – Linked Units (Note 39 e(iii)) | 54,940 | 10,123 | — | |||||||||
Real estate properties asset amortization (Note 39 l.) | 1,395 | 1,395 | 1,395 | |||||||||
Recognition for the fair value of obligations assumed under Financial guarantees issued (Note 39 n) | 11,047 | (4,146 | ) | 62,846 | ||||||||
Year 2000 costs (Note 39 k) | — | — | 3,005 | |||||||||
Troubled Debt restructuring (Note 39 p) | 28,039 | (28,425 | ) | (287,304 | ) | |||||||
Reversal of deferred taxes under Argentine GAAP (Note 39 a) | — | — | 8,394 | |||||||||
Deferred Income tax (Note 39 a) | 371,354 | — | — | |||||||||
Minimum Presumed Income Tax (Note 39 a ) | (47,895 | ) | (32,979 | ) | (87,543 | ) | ||||||
Minority interest (Note 39 o) | 21,686 | 32,032 | 17,530 | |||||||||
Net income (loss) in accordance with U.S. GAAP | 3,524,913 | 731,028 | (1,086 | ) | ||||||||
Average number of shares outstanding (in thousands) (Note 24) | 1,240,932 | 1,241,407 | 1,185,227 | |||||||||
Basic net income (loss) per share in accordance with U.S. GAAP (Note 24) | 2.841 | 0.589 | (0.001 | ) | ||||||||
Diluted net income (loss) per share in accordance with U.S. GAAP (Note 24) | 2.841 | 0.589 | (0.001 | ) | ||||||||
F-82
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||
2006 | 2005 | |||||||
Shareholders’ equity as stated | Ps. | 1,608,468 | Ps. | 1,626,776 | ||||
Loan origination fees and costs (Note 39 b.) | (11,907 | ) | (2,052 | ) | ||||
Intangible assets (Note 39 c.): | ||||||||
Amortization of deferred expenses for setting up of branches | (18,140 | ) | (9,533 | ) | ||||
Goodwill amortization | 73,904 | 55,292 | ||||||
Goodwill impairment | (2,237 | ) | (3,463 | ) | ||||
Software costs | (8,038 | ) | (1,757 | ) | ||||
Equity investments in other companies – Impairment (Note 39 m.) | (14,554 | ) | (59,996 | ) | ||||
Loans – non Financial Public Sector – Secured loans (Note 39 d(ii)) | (277,466 | ) | (868,693 | ) | ||||
Loans / Bonds – non Financial Provincial Public Sector – Bogar Bonds (Note 39 d(iii)) | (29,191 | ) | (456,507 | ) | ||||
Loan impairment – private sector (Note 39 d(iv)) | (31,086 | ) | 10,126 | |||||
Loan impairment – credit cards (Note 39 d(v)) | (14,717 | ) | (6,536 | ) | ||||
Government securities and other investments: | ||||||||
Compensatory and Hedge Bond received (Note 39 e(ii)) | (187,867 | ) | (111,290 | ) | ||||
Hedge Bond to be received (Note 39 e(ii)) | (45,431 | ) | (858,340 | ) | ||||
Compensation related to the payment of deposits (Note 39 h) | (367,221 | ) | (347,777 | ) | ||||
Discount Bonds (Note 39 e(iii)) | (304,325 | ) | (394,091 | ) | ||||
GDP – Linked Units (Note 39 e(iii)) | 65,063 | 10,123 | ||||||
Financial assets transferred (Note 39 i) | (257,824 | ) | (293,295 | ) | ||||
Minority interest (Note 39 o) | 167,185 | 145,499 | ||||||
Impairment of real estate properties and foreclosed assets (Note 39 l) | (67,155 | ) | (67,155 | ) | ||||
Real Estate properties amortization (Note 39 l) | 5,580 | 4,185 | ||||||
Minimum Presumed Income Tax (Note 39 a) | (218,884 | ) | (170,989 | ) | ||||
Deferred Income tax (Note 39 a) | 371,354 | — | ||||||
Recognition for the fair value of obligations assumed under financial guarantees issued (Note 39 n) | (2,012 | ) | (13,059 | ) | ||||
Foreign debt restructuring (Note 39 p) | (287,690 | ) | (315,729 | ) | ||||
Consolidated shareholders’ equity (deficit) in accordance with U.S. GAAP | Ps. | 145,809 | Ps. | (2,128,261 | ) | |||
F-83
Table of Contents
\
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
Adjustments to | Other | Total | ||||||||||||||||||||||||||||||
Capital | Paid | Shareholders’ | Profit Reserves | Comprehensive | Retained | Shareholders’ | ||||||||||||||||||||||||||
Stock | in Capital | Equity | Legal | Other | Income (loss) | Earnings | Equity | |||||||||||||||||||||||||
Balance at December 31, 2003 | Ps. | 1,092,407 | Ps. | 86,568 | Ps. | 1,418,854 | Ps. | 29,493 | Ps. | — | Ps. | 223,143 | Ps. | (7,303,801 | ) | Ps. | (4,453,336 | ) | ||||||||||||||
Distribution of retained earnings: | ||||||||||||||||||||||||||||||||
Unrealized appreciation of available-for-sale securities, net of tax and minority interest | — | — | — | — | — | 1,048,731 | — | 1,048,731 | ||||||||||||||||||||||||
Capital Increase | 149,000 | 61,026 | — | — | — | — | — | 210,026 | ||||||||||||||||||||||||
Net loss for the year under U.S. GAAP | — | — | — | — | — | — | (1,086 | ) | (1,086 | ) | ||||||||||||||||||||||
Balance at December 31, 2004 | Ps. | 1,241,407 | Ps. | 147,594 | Ps. | 1,418,854 | Ps. | 29,493 | Ps. | — | Ps. | 1,271,874 | Ps. | (7,304,887 | ) | Ps. | (3,195,665 | ) | ||||||||||||||
Distribution of retained earnings: | ||||||||||||||||||||||||||||||||
Unrealized appreciation of available-for-sale securities, net of tax and minority interest | — | — | — | — | — | 336,376 | — | 336,376 | ||||||||||||||||||||||||
Absorption approved by the shareholders meeting on April 28, 2005 | — | (147,594 | ) | (1,124,600 | ) | (29,493 | ) | — | — | 1,301,687 | — | |||||||||||||||||||||
Net income for the year under U.S. GAAP | — | — | — | — | — | — | 731,028 | 731,028 | ||||||||||||||||||||||||
Balance at December 31, 2005 | Ps. | 1,241,407 | Ps. | — | Ps. | 294,254 | Ps. | — | Ps. | — | Ps. | 1,608,250 | Ps. | (5,272,172 | ) | Ps. | (2,128,261 | ) | ||||||||||||||
Distribution of retained earnings by the shareholders’ meeting on April 27, 2006 | ||||||||||||||||||||||||||||||||
Legal Reserve | — | — | — | 34,855 | — | — | (34,855 | ) | — | |||||||||||||||||||||||
Discretionary Reserve | — | — | — | — | 72,383 | — | (72,383 | ) | — | |||||||||||||||||||||||
Unrealized depreciation of available-for-sale securities, net of tax and minority interest | — | — | — | — | — | (1,251,449 | ) | — | (1,251,449 | ) | ||||||||||||||||||||||
Premium for trading of shares in own portfolio | — | 606 | — | — | — | — | — | 606 | ||||||||||||||||||||||||
Net income for the year under U.S. GAAP | — | — | — | — | — | — | 3,524,913 | 3,524,913 | ||||||||||||||||||||||||
Balance at December 31, 2006 | Ps. | 1,241,407 | Ps. | 606 | Ps. | 294,254 | Ps. | 34,855 | Ps. | 72,383 | Ps. | 356,801 | Ps. | (1,854,497 | ) | Ps. | 145,809 | |||||||||||||||
F-84
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Income Statement | ||||||||||||
Financial Income | Ps. | 5,436,338 | Ps. | 2,958,678 | Ps. | 1,448,708 | ||||||
Financial Expenditures | 1,843,574 | 1,845,929 | 1,167,444 | |||||||||
Net Financial Income | 3,592,764 | 1,112,749 | 281,264 | |||||||||
Provision for Loan Losses | 160,262 | 113,496 | 209,959 | |||||||||
Income from Services | 837,340 | 628,968 | 530,144 | |||||||||
Expenditures from Services | 180,408 | 121,305 | 92,759 | |||||||||
Administrative Expenses | 982,843 | 770,874 | 615,063 | |||||||||
Net Income / (Loss) from Financial Brokerage | 3,106,591 | 736,042 | (106,373 | ) | ||||||||
Minority Interests | 2,670 | (2,577 | ) | 3,228 | ||||||||
Miscellaneous Income | 326,308 | 282,845 | 514,606 | |||||||||
Miscellaneous Losses | 187,772 | 265,980 | 377,123 | |||||||||
Net Income / (Loss) before Income tax | 3,247,797 | 750,330 | 34,338 | |||||||||
Income Tax | 277,116 | (19,302 | ) | (35,424 | ) | |||||||
Net income (loss) under U.S. GAAP | 3,524,913 | 731,028 | (1,086 | ) | ||||||||
Other comprehensive income (loss): | ||||||||||||
Unrealized gains (losses) on securities | (1,251,449 | ) | 336,376 | 1,048,731 | ||||||||
Other comprehensive income (loss) | (1,251,449 | ) | 336,376 | 1,048,731 | ||||||||
Comprehensive income | Ps. | 2,273,464 | Ps. | 1,067,404 | Ps. | 1,047,645 | ||||||
December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Boden 2012 Bonds – Compensatory Bond | 89,441 | 104,757 | 269,009 | |||||||||
Bogar Bonds | 168,908 | 1,531,789 | 1,010,200 | |||||||||
GalTrust I | (7,443 | ) | (74,673 | ) | (7,335 | ) | ||||||
Discount Bonds | 125,251 | 56,581 | — | |||||||||
Other assets | (19,356 | ) | (10,204 | ) | — | |||||||
Accumulated other comprehensive income | Ps. | 356,801 | Ps. | 1,608,250 | Ps. | 1,271,874 |
F-85
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
December 31, 2006 | December 31, 2005 | ||||||||||||||||
Argentine | Argentine | ||||||||||||||||
Banking | Banking | ||||||||||||||||
GAAP | U.S. GAAP | GAAP | U.S. GAAP | ||||||||||||||
Argentine national government loans | Ps. | 2,846,253 | Ps. | 2,576,512 | Ps. | 5,341,756 | Ps. | 4,492,662 | |||||||||
Argentine provincial debt | 366,519 | 337,328 | 3,823,299 | 3,366,792 | |||||||||||||
Other Argentine public-sector receivables | 249,223 | 221,782 | 340,270 | 320,673 | |||||||||||||
Galtrust I (securitization of Provincial Loans) | 568,095 | 355,721 | 536,509 | 253,418 | |||||||||||||
Compensatory bond received | 3,582,858 | 3,394,991 | 987,951 | 876,661 | |||||||||||||
Bonds to be received (1) (2) | 401,335 | 394,531 | 4,154,989 | — | |||||||||||||
Other (3) | 883,280 | 644,018 | 1,229.763 | 845,797 | |||||||||||||
Total | Ps. | 8,897,563 | Ps. | 7,924,883 | Ps. | 16.414,537 | Ps. | 10,156,003 | |||||||||
(1) | The advance to be requested from the Argentine Central Bank for the acquisition of the Hedge Bond was recorded in “Other Liabilities Resulting from Financial Brokerage – Other”, for Ps. 336,838 as of December 31, 2006. The above-mentioned advance was Ps. 3,296,649 as of December 31, 2005. Under U.S.GAAP, the Hedge Bond and the related advance have been eliminated as of December 31, 2005. As of December 31, 2006 the hedge bond pending to be received and the related advance was accounted for at fair value, as an option contract in accordance with SFAS 133. | |
(2) | Includes the Hedge Bond to be received as of December 31, 2006 and 2005,. | |
(3) | Includes bonds such as Fiscal Credit Certificates and other national government bonds. |
F-86
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
F-87
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||
2006 | 2005 | |||||||
ASSETS | ||||||||
A. Cash and due from banks | ||||||||
Cash | Ps. | 49 | Ps. | 581 | ||||
Banks and correspondents | 82 | 69 | ||||||
Ps. | 131 | Ps. | 650 | |||||
B. Government and corporate securities | ||||||||
Investments in quoted corporate securities | 325,335 | — | ||||||
Ps. | 325,335 | Ps. | — | |||||
C. Loans | ||||||||
To the financial sector | 14,365 | — | ||||||
Ps. | 14,365 | Ps. | — | |||||
D. Other receivables resulting from financial brokerage | ||||||||
Other receivables not included in the debtor classification Regulations | 2,484 | 238,901 | ||||||
Other receivables included in the debtor classification Regulations | 13,089 | 7,197 | ||||||
Accrued interest receivable included in the debtor Classification regulations | 23 | 26 | ||||||
Ps. | 15,596 | Ps. | 246,124 | |||||
F. Equity investment in other companies | ||||||||
In financial institutions | 1,208,450 | 1,316,602 | ||||||
Other | 50,327 | 42,117 | ||||||
Ps. | 1,258,777 | Ps. | 1,358,719 | |||||
G. Miscellaneous receivables | ||||||||
Other accrued interest receivables | — | 8 | ||||||
Other | 2,122 | 44,644 | ||||||
Ps. | 2,122 | Ps. | 44,652 | |||||
H. Bank premises and equipment | 3,014 | 3,066 | ||||||
J. Intangible assets | ||||||||
Goodwill | — | 684 | ||||||
Organization and development expenses | 14 | 19 | ||||||
Ps. | 14 | Ps. | 703 | |||||
Total Assets | Ps. | 1,619,354 | Ps. | 1,653,914 | ||||
December 31, | ||||||||
2006 | 2005 | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
O. Miscellaneous liabilities | ||||||||
Directors’ and Syndics’ fees | Ps. | 113 | Ps. | 158 | ||||
Other | 10,773 | 26,980 | ||||||
10,886 | 27,138 | |||||||
Total Liabilities | Ps. | 10,886 | Ps. | 27,138 | ||||
SHAREHOLDERS’ EQUITY | Ps. | 1,608,468 | Ps. | 1,626,776 | ||||
Total Liabilities and Shareholders’ Equity | Ps. | 1,619,354 | Ps. | 1,653,914 | ||||
F-88
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
A. Financial income | ||||||||||||
Interest on loans granted to the financial sector | 54 | — | — | |||||||||
Interest on other receivables resulting from financial brokerage | Ps. | 665 | Ps. | 9,700 | Ps. | 6,911 | ||||||
Net income from government and corporate securities | 114,641 | 238 | — | |||||||||
Consumer price index adjustment (CER / CVS) | — | 6 | 9 | |||||||||
Other | 3,100 | 279 | 6,548 | |||||||||
Ps. | 118,460 | Ps. | 10,223 | Ps. | 13,468 | |||||||
B. Financial expenses | ||||||||||||
Net loss from government and corporate securities | — | Ps. | — | Ps. | 383 | |||||||
Other | 53 | 334 | — | |||||||||
Ps. | 53 | Ps. | 334 | Ps. | 383 | |||||||
Gross brokerage margin | 118,407 | 9,889 | 13,085 | |||||||||
F. Administrative expenses | ||||||||||||
Personnel expenses | 2,149 | 2,446 | 998 | |||||||||
Directors’ and syndics’ fees | 702 | 664 | 249 | |||||||||
Other fees | 2,033 | 2,762 | 1,059 | |||||||||
Taxes | 704 | 865 | 9,392 | |||||||||
Other operating expenses | 613 | 1,754 | 1,384 | |||||||||
Other | 4,265 | 4,390 | 380 | |||||||||
Ps. | 10,466 | Ps. | 12,881 | Ps. | 13,462 | |||||||
Net Income / (Loss) from financial brokerage | Ps. | 107,941 | Ps. | (2,992 | ) | Ps. | (377 | ) | ||||
H. Miscellaneous income | ||||||||||||
Net income on long-term investments | — | 215,531 | — | |||||||||
Loans recovered and allowances reversed | 640 | 1,384 | 811 | |||||||||
Other | 1,111 | 129 | 991 | |||||||||
Ps. | 1,751 | Ps. | 217,044 | Ps. | 1,802 | |||||||
I. Miscellaneous losses | ||||||||||||
Net loss on long-term investments (1) | 81,238 | — | 93,617 | |||||||||
Other | 1,723 | 139,197 | 4,706 | |||||||||
Ps. | 82,961 | Ps. | 139,197 | Ps. | 98,323 | |||||||
Net Income / (Loss) before tax | 26,731 | 74,855 | (96,898 | ) | ||||||||
J. Income tax | Ps. | 45,645 | Ps. | (32,383 | ) | Ps. | 12,973 | |||||
Net income (loss) for the period | Ps. | (18,914 | ) | Ps. | 107,238 | Ps. | (109,871 | ) | ||||
(1) | Includes the foreign currency position compensation. |
F-89
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
CHANGES IN CASH | ||||||||||||
Cash at the beginning of the period | Ps. | 650 | Ps. | 540 | Ps. | 1,164 | ||||||
Increase / (decrease) in cash | (519 | ) | 110 | (624 | ) | |||||||
Cash at end of period | 131 | 650 | 540 | |||||||||
Cash provided by (used in) operating activities | ||||||||||||
Less: | ||||||||||||
Operating expenses paid | (31,146 | ) | (68,228 | ) | (9,347 | ) | ||||||
Plus: | ||||||||||||
Other operating income received | 18,387 | 23,732 | 10,301 | |||||||||
Cash provided by (used in) operating activities | Ps. | (12,759 | ) | Ps. | (44,496 | ) | Ps. | 954 | ||||
Other sources of cash | ||||||||||||
Dividends | 613 | 350 | 438 | |||||||||
Increase in short-term investment | 11,130 | 46,825 | 1,030 | |||||||||
Other sources of cash | 546 | 161 | 32 | |||||||||
Other sources of cash | Ps. | 12,289 | Ps. | 47,336 | Ps. | 1,500 | ||||||
Other uses of cash | ||||||||||||
Increase in short-term loans | — | (635 | ) | (2,223 | ) | |||||||
Increase in fixed assets | (42 | ) | (17 | ) | (65 | ) | ||||||
Increase in long-term investments | (7 | ) | (2,078 | ) | (790 | ) | ||||||
Total other uses of cash | Ps. | (49 | ) | Ps. | (2,730 | ) | Ps. | (3,078 | ) | |||
Increase / (decrease) in cash | Ps. | (519 | ) | Ps. | 110 | Ps. | (624 | ) | ||||
F-90
Table of Contents
For the fiscal years ended December 31, 2006, 2005 and 2004
(Expressed in thousands of Argentine pesos)
F-91
Table of Contents
Exhibit | Description | |
1.1 | Unofficial English language translation of the By-laws (estatutos sociales). **** | |
2.1 | Form of Deposit Agreement between The Bank of New York and the registrant, including the form of American Depositary Receipt.* | |
2.2 | Indenture, dated as of May 18, 2004, among the Bank, The Bank of New York and Banco Rio de la Plata S.A.** | |
4.1 | English translation of form of Financial Trust Contract, dated April 16, 2002, among the Bank, Banco Provincia de Buenos Aires and BAPRO Mandatos y Negocios S.A.*** | |
4.2 | English translation of form of Loan Agreement, dated March 21, 2002, by and between Seguro de Depositos S.A. and the Bank.*** | |
4.4 | Form of Restructured Loan Facility (as evidenced by the Note Purchase Agreement, dated as of April 27, 2004, among Banco de Galicia y Buenos Aires S.A., Barclays Bank PLC, the holders party thereto and Deutsche Bank Trust Company Americas).** | |
4.5 | Form of Amendment No. 1 and Waiver to Restructured Loan Facility (as evidenced by the Amendment No. 1 and Waiver to Note Purchase Agreement, dated as of December 20, 2004, among Banco de Galicia y Buenos Aires S.A., the holders party thereto and Deutsche Bank Trust Company Americas). **** | |
4.6 | Form of Second Amendment to Restructured Loan Facility (as evidenced by the Second Amendment to the Note Purchase Agreement, dated as of August 25, 2006, among Banco de Galicia y Buenos Aires S.A., the holders party thereto and Deutsche Bank Trust Company Americas). | |
8.1 | For a list of our subsidiaries as of the end of the fiscal year covered by this annual report, please see Item 4. “Information on the Company––Organizational Structure.” | |
12.1 | Certification of the principal executive officer required under Rule 13a-14(a) or Rule 15d-14(a), pursuant to Section 302 of the Sarbanes Oxley Act of 2002. | |
12.2 | Certification of the principal financial officer required under Rule 13a-14(a) or Rule 15d-14(a), pursuant to Section 302 of the Sarbanes Oxley Act of 2002. | |
13.1 | Certification of the principal executive officer required pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002. | |
13.2 | Certification of the principal financial officer required pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002. |
* | Incorporated by reference from our Registration Statement on Form F-4 (333-11960). | |
** | Incorporated by reference from our Annual Report on Form 20-F for the year ended December 31, 2003. | |
*** | Incorporated by reference from our Annual Report on Form 20-F for the year ended December 31, 2002. | |
**** | Incorporated by reference from our Annual Report on Form 20-F for the year ended December 31, 2004. |