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SECURITIES AND EXCHANGE COMMISSION
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, 2010 |
o | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
for the transition period from to |
o | Shell Company Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Date of event requiring this Shell Company Report |
(Jurisdiction of incorporation or organization)
Tte. Gral. Juan D. Perón 456
C1038 AAJ-Buenos Aires, Argentina
(Address of principal executive offices)
Tel: 54 11 4 343 7528 / Fax: 54 11 4 331 9183, prichards@gfgsa.com
Perón 456, 2° Piso C1038AAJ Buenos Aires ARGENTINA
(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)
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 |
Large accelerated filero | Accelerated filerþ | Non-accelerated filero |
U.S. GAAPo | International Financial Reporting Standards | Otherþ | ||
As issued by the International Accounting Standards Boardo |
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Exhibit 2.5 | ||||||||
Exhibit 2.6 | ||||||||
Exhibit 4.8 | ||||||||
Exhibit 4.9 | ||||||||
Exhibit 4.10 | ||||||||
Exhibit 11.2 | ||||||||
Exhibit 12.1 | ||||||||
Exhibit 12.2 | ||||||||
Exhibit 13.1 | ||||||||
Exhibit 13.2 |
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• | Grupo Financiero Galicia; |
• | Banco de Galicia y Buenos Aires S.A., our largest subsidiary, its wholly-owned subsidiaries Banco Galicia Uruguay S.A. (in liquidation), (“Galicia Uruguay”) and Galicia Cayman Limited (“Galicia Cayman”), and other subsidiaries and affiliated companies required to be consolidated under Argentine Banking GAAP (collectively “Banco Galicia” except where otherwise noted); |
• | Tarjetas Regionales S.A., a wholly owned subsidiary of Banco Galicia, and its operating subsidiaries; |
• | Compañía Financiera Argentina S.A. (“Compañía Financiera Argentina” or “CFA”), Cobranzas y Servicios S.A. and Procesadora Regional S.A. (collectively the “CFA Group”) |
• | Sudamericana Holding S.A., and its subsidiaries; |
• | Galicia Warrants S.A. (“Galicia Warrants”); |
• | Net Investment S.A. (“Net Investment”), |
• | Galval Agente de Valores S.A. (“Galval”); and |
• | GV Mandataria de Valores S.A. (“GV Mandataria”). |
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• | changes in Government regulations applicable to financial institutions, including tax regulations and changes in or failures to comply with banking or other regulations; |
• | changes in general political, legal, social or other conditions in Argentina, Latin America or abroad; |
• | fluctuations in the Argentine rate of inflation; |
• | changes in capital markets in general that may affect policies or attitudes toward lending to Argentina or Argentine companies, including expected or unexpected turbulence or volatility in domestic or international financial markets; |
• | changes in the macroeconomic situation at the regional, national or international levels, and the influence of these changes on the microeconomic conditions of the financial markets in Argentina; |
• | increased competition in the banking, financial services, credit card services, insurance, asset management and related industries; |
• | changes in interest rates which may, among other things, adversely affect margins; |
• | a loss of market share by any of Banco Galicia’s main businesses; |
• | a change in the credit cycle and increased borrower defaults; |
• | Banco Galicia’s inability to sustain or improve its performance; |
• | Banco Galicia’s inability to obtain additional debt or equity financing on attractive conditions or at all, which may limit its ability to fund existing operations and to finance new activities; |
• | technological changes and changes in Banco Galicia’s ability to implement new technologies; |
• | changes in the saving and consumption habits of its customers and other structural changes in the general demand for financial products, such as those offered by Banco Galicia; |
• | possible financial difficulties of the Government; |
• | volatility of the Peso and the exchange rates between the Peso and foreign currencies; and |
• | other factors discussed under Item 3. “Key Information-Item 3.D. “Risk Factors” in this annual report. |
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Item 1. | Identity of Directors, Senior Management and Advisers |
Item 2. | Offer Statistics and Expected Timetable |
Item 3. | Key Information |
Item 3.A. | Selected Financial Data |
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Fiscal Year Ended December 31, | ||||||||||||||||||||||||
2010 | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
(in millions | ||||||||||||||||||||||||
of US | ||||||||||||||||||||||||
Dollars, | ||||||||||||||||||||||||
except as | ||||||||||||||||||||||||
noted)(1) | ||||||||||||||||||||||||
Unaudited | (in millions of Pesos, except as noted)(1) | |||||||||||||||||||||||
Consolidated Income Statement in Accordance with Argentine Banking GAAP | ||||||||||||||||||||||||
Financial Income | 909.5 | 3,616.1 | 3,005.6 | 2,559.3 | 1,997.9 | 2,229.8 | ||||||||||||||||||
Financial Expenses | 355.3 | 1,412.7 | 1,460.5 | 1,421.0 | 1,246.7 | 1,851.6 | ||||||||||||||||||
Net Financial Income(2) | 554.2 | 2,203.4 | 1,545.1 | 1,138.3 | 751.2 | 378.2 | ||||||||||||||||||
Provision for Losses on Loans and Other Receivables | 138.7 | 551.5 | 639.5 | 395.4 | 255.5 | 110.9 | ||||||||||||||||||
Income before Taxes | 167.8 | 667.1 | 385.3 | 250.8 | 117.5 | 75.3 | ||||||||||||||||||
Income Tax | (65.0 | ) | (258.2 | ) | (156.0 | ) | (74.0 | ) | (71.5 | ) | (94.2 | ) | ||||||||||||
Net Income / (Loss) | 102.8 | 408.9 | 229.3 | 176.8 | 46.0 | (18.9 | ) | |||||||||||||||||
Earnings / (Loss) per Share (in Pesos) | 0.083 | 0.329 | 0.185 | 0.142 | 0.037 | (0.015 | ) | |||||||||||||||||
Cash Dividends per Share (in Pesos) | — | — | — | — | — | — | ||||||||||||||||||
Stock Dividends per Share (in Pesos) | — | — | — | — | — | — | ||||||||||||||||||
Book Value per Share (in Pesos) | 0.500 | 1.989 | 1.653 | 1.487 | 1.333 | 1.296 | ||||||||||||||||||
Amounts in Accordance with U.S. GAAP | ||||||||||||||||||||||||
Net Income / (Loss) | 576.9 | 2,293.6 | 770.2 | (1,171.0 | ) | 592.9 | 3,524.9 | |||||||||||||||||
Basic and Diluted Earnings / (Losses) per Share (in Pesos) | 0.465 | 1.848 | 0.620 | (0.943 | ) | 0.478 | 2.841 | |||||||||||||||||
Book Value / (Deficit) per Share (in Pesos) | 0.607 | 2.414 | 0.996 | (0.608 | ) | 0.192 | �� | 0.117 | ||||||||||||||||
Financial Income | 1,202.1 | 4,779.2 | 3,374.8 | 1,201.7 | 2,433.2 | 5,456.4 | ||||||||||||||||||
Financial Expenses | 337.9 | 1,343.4 | 1,434.4 | 1,391.3 | 1,160.1 | 1,863.6 | ||||||||||||||||||
Net Financial Income / (Loss) | 864.2 | 3,435.8 | 1,940.4 | (189.6 | ) | 1,273.1 | 3,592.8 | |||||||||||||||||
Provision for Losses on Loans and Other Receivables | 138.3 | 549.7 | 527.3 | 450.1 | 203.4 | 160.3 | ||||||||||||||||||
Income Tax | 127.8 | 508.1 | (54.5 | ) | 50.9 | (92.5 | ) | (277.1 | ) | |||||||||||||||
Consolidated Balance Sheet in Accordance with Argentine Banking GAAP | ||||||||||||||||||||||||
Cash and Due from Banks | 1,420.0 | 5,645.6 | 3,696.3 | 3,405.1 | 2,960.0 | 2,294.8 | ||||||||||||||||||
Government Securities, Net | 570.4 | 2,267.7 | 3,907.2 | 1,531.8 | 1,693.0 | 3,188.3 | ||||||||||||||||||
Loans, Net | 5,370.9 | 21,353.8 | 13,477.9 | 11,774.6 | 11,601.0 | 10,525.0 | ||||||||||||||||||
Total Assets | 8,981.4 | 35,708.1 | 27,602.4 | 24,735.8 | 22,828.7 | 23,615.4 | ||||||||||||||||||
Deposits | 5,589.5 | 22,222.8 | 17,039.4 | 14,056.1 | 13,165.6 | 10,779.4 | ||||||||||||||||||
Other Funds(3) | 2,770.8 | 11,015.8 | 8,510.5 | 8,834.0 | 8,008.6 | 11,227.5 | ||||||||||||||||||
Total Shareholders’ Equity | 621.1 | 2,469.5 | 2,052.5 | 1,845.7 | 1,654.5 | 1,608.5 | ||||||||||||||||||
Average Total Assets(4) | 7,323.9 | 29,118.4 | 24,685.3 | 23,412.5 | 21,332.4 | 24,614.5 | ||||||||||||||||||
Percentage of Period-end Balance Sheet Items Denominated in Dollars: | ||||||||||||||||||||||||
Loans, Net of Allowances | 14.53 | 14.53 | 17.78 | 16.97 | 15.13 | 16.66 | ||||||||||||||||||
Total Assets | 18.98 | 18.98 | 24.95 | 28.85 | 27.60 | 28.94 | ||||||||||||||||||
Deposits | 18.08 | 18.08 | 18.16 | 16.98 | 15.53 | 14.13 | ||||||||||||||||||
Total Liabilities | 23.01 | 23.01 | 27.73 | 32.47 | 32.84 | 30.41 | ||||||||||||||||||
Amounts in Accordance with U.S. GAAP | ||||||||||||||||||||||||
Trading Securities | 679.2 | 2,700.4 | 2,011.9 | 989.6 | 476.2 | 208.2 | ||||||||||||||||||
Available-for-Sale Securities | 599.9 | 2,384.9 | 3,916.9 | 2,050.0 | 3,717.3 | 5,214.6 | ||||||||||||||||||
Total Assets | 10,210.2 | 40,593.9 | 30,377.6 | 25,159.7 | 24,429.1 | 24,107.0 | ||||||||||||||||||
Total Liabilities | 9,456.4 | 37,596.9 | 29,141.3 | 25,914.1 | 24,191.0 | 23,961.2 | ||||||||||||||||||
Shareholders’ Equity (Deficit) | 753.8 | 2,997.1 | 1,236.3 | (754.4 | ) | 238.1 | 145.8 |
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Fiscal Year Ended December 31, | ||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
(in millions of Pesos, except as noted)(1) | ||||||||||||||||||||
Selected Ratios in Accordance with Argentine Banking GAAP | ||||||||||||||||||||
Profitability and Efficiency | ||||||||||||||||||||
Net Yield on Interest Earning Assets(5) | 11.38 | % | 9.10 | % | 5.72 | % | 4.13 | % | 1.21 | % | ||||||||||
Financial Margin(6) | 10.02 | 8.41 | 5.72 | 4.12 | 1.74 | |||||||||||||||
Return on Average Assets(7) | 1.76 | 1.12 | 0.91 | 0.37 | 0.00 | |||||||||||||||
Return on Average Shareholders’ Equity(8) | 18.63 | 11.69 | 10.13 | 2.86 | (1.15 | ) | ||||||||||||||
Net Income from Services as a Percentage of Operating Income(9) | 44.71 | 45.90 | 51.07 | 54.86 | 63.99 | |||||||||||||||
Efficiency ratio(10) | 71.39 | 71.05 | 76.57 | 77.29 | 92.80 | |||||||||||||||
Capital | ||||||||||||||||||||
Shareholders’ Equity as a Percentage of Total Assets | 6.92 | % | 7.44 | % | 7.46 | % | 7.25 | % | 6.81 | % | ||||||||||
Total Liabilities as a Multiple of Shareholders’ Equity | 13.46 | x | 12.45 | x | 12.40 | x | 12.80 | x | 13.68 | x | ||||||||||
Total Capital Ratio | 15.19 | % | 14.35 | % | 13.92 | % | 15.54 | % | 15.03 | % | ||||||||||
Liquidity | ||||||||||||||||||||
Cash and Due from Banks as a Percentage of Total Deposits | 25.40 | % | 21.69 | % | 24.23 | % | 22.48 | % | 21.29 | % | ||||||||||
Loans, Net as a Percentage of Total Assets | 59.80 | 48.83 | 47.60 | 50.82 | 44.57 | |||||||||||||||
Credit Quality | ||||||||||||||||||||
Past Due Loans(11) as a Percentage of Total Loans | 2.57 | % | 3.95 | % | 2.87 | % | 2.77 | % | 2.38 | % | ||||||||||
Non-Accrual Loans(12) as a Percentage of Total Loans | 3.37 | 4.77 | 3.49 | 3.14 | 2.58 | |||||||||||||||
Allowance for Loan Losses as a Percentage of Non-accrual Loans(12) | 137.57 | 118.64 | 123.11 | 114.05 | 117.16 | |||||||||||||||
Net Charge-Offs(13) as a Percentage of Average Loans | 2.37 | 2.84 | 1.83 | 0.65 | 1.42 | |||||||||||||||
Ratios in Accordance with U.S. GAAP | ||||||||||||||||||||
Capital | ||||||||||||||||||||
Shareholders’ Equity (deficit) as a Percentage of Total Assets | 7.38 | % | 4.07 | % | (3.00 | )% | 0.97 | % | 0.60 | % | ||||||||||
Total Liabilities as a Multiple of Total Shareholders’ Equity | 12.54 | x | 23.57 | x | (34.35 | )x | 101.61 | x | 164.33 | x | ||||||||||
Liquidity | ||||||||||||||||||||
Loans, Net as a Percentage of Total Assets | 52.56 | % | 45.55 | % | 49.59 | % | 49.36 | % | 40.10 | % | ||||||||||
Credit Quality | ||||||||||||||||||||
Allowance for Loan Losses as a Percentage of Non-Accrual Loans | 163.37 | 108.37 | 141.34 | 132.13 | 168.58 | |||||||||||||||
Inflation and Exchange Rate | ||||||||||||||||||||
Wholesale Inflation(14) | 14.56 | % | 10.04 | % | 8.82 | % | 14.56 | % | 7.14 | % | ||||||||||
Consumer Inflation(15) | 10.92 | 7.69 | 7.24 | 8.47 | 9.84 | |||||||||||||||
Exchange Rate Variation(16) (%) | 4.72 | 9.93 | 9.61 | 2.66 | 1.25 | |||||||||||||||
CER(17) | 11.04 | 6.95 | 7.97 | 8.50 | 10.08 |
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(1) | The exchange rate used to convert the December 31, 2010 amounts into US Dollars was Ps.3.9758 per US$1.00. All amounts are stated in millions of Pesos, except inflation and exchange rates, percentages, ratios, multiples andper-share data. | |
(2) | Net financial income primarily represents 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, minus interest on deposits and other liabilities from financial intermediation. It also includes the CER adjustment. | |
(3) | Includes primarily liabilities with other banks and international entities. Until December 31, 2006, debt with the Argentine Central Bank was also included. | |
(4) | The average balances of assets, including the related interest that is due 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 its 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 as a percentage of average total assets. | |
(8) | Net income as a percentage of average shareholders’ equity. | |
(9) | Operating income is defined as net financial income plus net income from services. | |
(10) | Administrative expenses as a percentage of operating income as defined above. | |
(11) | Past-due loans are defined as the aggregate principal amount of a loan plus any accrued interest that is due and payable for which either the principal or any interest payment is 91 days or more past due. | |
(12) | Non-Accrual loans are defined as those loans in the categories of: (a) Consumer portfolio: “Medium Risk”, “High Risk”, “Uncollectible”, and “Uncollectible Due to Technical Reasons”, and (b) Commercial portfolio: “With problems”, “High Risk of Insolvency”, “Uncollectible”, and “Uncollectible Due to Technical Reasons”. | |
(13) | Charge-offs plus direct charge-offs minus bad debts recovered. | |
(14) | As measured by the annual change in the end-of-period Wholesale Price Index (“WPI”), published by INDEC. | |
(15) | As measured by the annual change in the end-of-period Consumer Price Index (“CPI”), published by INDEC. | |
(16) | Annual change in the end-of-period exchange rate expressed in Pesos per US Dollar. | |
(17) | The “CER” is the “Coeficiente de Estabilización de Referencia”, an adjustment coefficient based on changes in the Consumer Price Index. |
Exchange Rate(1) | ||||||||||||||||
High | Low | Average(2) (3) | Period-End | |||||||||||||
(in Pesos per US Dollar) | ||||||||||||||||
2006 | 3.1072 | 3.0305 | 3.0784 | (3) | 3.0695 | |||||||||||
2007 | 3.1797 | 3.0553 | 3.1196 | (3) | 3.1510 | |||||||||||
2008 | 3.4537 | 3.0128 | 3.1797 | (3) | 3.4537 | |||||||||||
2009 | 3.8545 | 3.4497 | 3.7478 | (3) | 3.7967 | |||||||||||
2010 | 3.9857 | 3.7942 | 3.9226 | (3) | 3.9758 | |||||||||||
December 2010 | 3.9857 | 3.9732 | 3.9776 | 3.9758 | ||||||||||||
January 2011 | 4.0008 | 3.9715 | 3.9813 | 4.0008 | ||||||||||||
February 2011 | 4.0305 | 4.0088 | 4.0220 | 4.0305 | ||||||||||||
March 2011 | 4.0520 | 4.0288 | 4.0372 | 4.0520 | ||||||||||||
April 2011 | 4.0837 | 4.0495 | 4.0655 | 4.0805 | ||||||||||||
May 2011 | 4.0887 | 4.0788 | 4.0839 | 4.0887 |
(1) | Using closing reference exchange rates as published by the Argentine Central Bank. | |
(2) | Monthly average of daily closing quotations, unless otherwise noted. | |
(3) | Based on the annual average of the last day of each month’s closing quotation. |
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Item 3.B. | Capitalization and Indebtedness |
Item 3.C. | Reasons for the Offer and Use of Proceeds |
Item 3.D. | Risk Factors |
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• | the recovery has depended to some extent on high commodity prices, which are volatile and beyond the control of the Government; |
• | inflation has risen and threatens to accelerate; |
• | the current fiscal situation is at risk of deterioration; |
• | the regulatory environment continues to be uncertain and has been subject to frequent change; |
• | Argentina’s international financing is limited; |
• | the availability of long-term fixed rate credit is scarce; and |
• | investment as a percentage of GDP remains low. |
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Item 4. | Information on the Company |
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• | Galicia Uruguay, incorporated in Uruguay and currently not an operating financial institution; |
• | Galval, incorporated in Uruguay; |
• | Galicia Cayman, incorporated in the Cayman Islands; |
• | Tarjeta Naranja Dominicana S.A., incorporated in the Dominican Republic. |
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• | 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. |
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Geographical Area | Number of Branches | |||
City of Buenos Aires | 77 | |||
Greater Buenos Aires | 62 | |||
Rest of the Province of Buenos Aires | 28 | |||
Santa Fe | 15 | |||
Córdoba | 15 | |||
Mendoza | 9 | |||
Entre Ríos and Chubut | 4 each | |||
Río Negro | 3 | |||
Corrientes, La Pampa, Misiones, San Luis, Tierra del Fuego and Tucumán | 2 each | |||
Catamarca, Chaco, Formosa, Jujuy, La Rioja, Neuquén, Salta, Santa Cruz, Santiago del Estero and San Juan | 1 each | |||
Total | 239 | |||
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• | Efectivo Sí:Unsecured personal loans payable in installments. |
• | Cuota Sí:Product to finance purchases of goods through merchants associated with CFA, without using any cash or credit cards. Such goods include home appliances, household goods and construction materials. |
• | Loans to Public Sector Employees:Loans targeted to public sector employees on the national level, which are deducted directly from their salary. |
• | Loans to Financial Brokerage Firms and Employees.Payroll loans to affiliates or associate members of brokerage firms (mutuals, cooperatives, unions, etc.) and to company employees. |
• | Credit Cards:Issued by Visa and MasterCard, both at domestic and international level. |
• | Pagos Jubilatorios de la ANSES(Retirement and pension payment — National Social Security Administration): Aimed at retired people and pensioners collecting their payments at CFA. |
• | Microfinance:Credit lines for small ventures in specific geographic areas across the country. |
• | Insurance:CFA sells different types of insurance policies from leading companies of the market to meet customers’ needs. |
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March 2011 | ||||
Branches(number) | ||||
Bank Branches | 240 | |||
Regional Credit Card Cos. Branches | 175 | |||
CFA Branches | 95 | |||
Business Centers and In-House Facilities | 21 | |||
Private-Banking Centers | 13 | |||
Electronic Banking Terminals(number) | ||||
ATMs | 701 | |||
Self-Service Terminals | 786 | |||
Electronic Banking Transactions(thousands per month) | ||||
ATMs + Self-Service Terminals | 14,134 | |||
Phone-Banking | 331 | |||
e-banking | 23,561 | |||
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Square | ||||||||
Meters | ||||||||
Property | Address | (approx.) | Main Uses | |||||
Grupo Financiero Galicia | ||||||||
- Owned | -Tte. Gral. Juan D. Perón 456, 2nd floor, Buenos Aires, Argentina | 191 | Administrative activities | |||||
Banco de Galicia y Buenos Aires S.A. | ||||||||
- Owned | -Tte. Gral. Juan D. Perón 407, Buenos Aires, Argentina | 17,300 | Administrative activities | |||||
-Tte. Gral. Juan D. Perón 430, Buenos Aires, Argentina | 42,000 | Administrative activities | ||||||
-Florida 361, Buenos Aires, Argentina | 7,300 | Administrative activities | ||||||
- Rented | -San Martín 178/200, Buenos Aires, Argentina | 3,600 | Administrative activities | |||||
Banco Galicia Uruguay S.A. (in liquidation) | ||||||||
- Rented | -Montevideo, Uruguay | 580 | Storage | |||||
-Dr. Americo Ricaldoni 2468, Montevideo, Uruguay | 400 | Administrative activities | ||||||
Tarjeta Naranja S.A. | ||||||||
- Owned | -Sucre 152, 154 and 541, Córdoba, Argentina | 6,307 | Administrative activities | |||||
-Humberto Primo, Córdoba, Argentina | 4,883 | Administrative activities | ||||||
-Jujuy 542, Córdoba, Argentina | 853 | Administrative activities | ||||||
-Ruta Nacional 36, km. 8, Córdoba, Argentina | 49,249 | Storage | ||||||
-Río Grande, Tierra del Fuego, Argentina | 309 | Administrative activities | ||||||
-San Jerónimo 2348 and 2350, Santa Fe, Argentina | 1,475 | Administrative activities | ||||||
- Rented | -Sucre 145/151, La Rioja 359, 364 and 375, Córdoba, Argentina | 4,450 | Administrative activities and printing centre | |||||
Tarjetas Cuyanas S.A. | ||||||||
- Rented | -Belgrano 1415, Mendoza, Argentina | 1,160 | Administrative activities | |||||
-Belgrano 1462, Mendoza, Argentina | 1,156 | Administrative activities | ||||||
-Belgrano 1478, Mendoza, Argentina | 175 | Printing centre | ||||||
Tarjetas del Mar S.A. | ||||||||
- Rented | -Luro 3001, Mar del Plata, Buenos Aires, Argentina | 100 | Administrative Activities | |||||
-Luro 2943, Mar del Plata, Buenos Aires, Argentina | 980 | Administrative Activities | ||||||
-Catamarca 1586, Mar del Plata, Buenos Aires, Argentina | 170 | |||||||
Compañía Financiera Argentina | ||||||||
- Rented | -Florida 238, Buenos Aires, Argentina | 4,500 | Administrative Activities | |||||
-Azopardo 467, Buenos Aires, Argentina | 3,700 | Administrative Activities | ||||||
Galicia Seguros S.A. | ||||||||
- Owned | -Maipú 241, Buenos Aires, Argentina | 3,261 | Administrative activities | |||||
Galicia Warrants S.A. | ||||||||
- Owned | -Tte. Gral. Juan D. Perón 456, 6th floor, Buenos Aires, Argentina | 118 | Administrative activities | |||||
-Alsina 3396/3510, San Miguel de Tucumán, Tucumán, Argentina | 12,800 | Storage | ||||||
- Rented | -Alto Verde, Chicligasta, Tucumán, Argentina | 2,000 | Storage | |||||
Galval Agente de Valores S.A. | ||||||||
- Rented | -Zona Franca, Montevideo, Uruguay | 300 | Administrative activities | |||||
GV Mandataria de Valores S.A. | ||||||||
- Rented | -25 de Mayo 432, 3rd floor, Buenos Aires, Argentina (1) | 336 | Administrative activities |
(1) | Banco Galicia leases, from September 1, 2008 to August 31, 2011, a property to GV Mandataria, for US$4,500 per month during the first year, US$4,635 during the second year and US$4,775 during the third year. |
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• | Banco Galicia: 239 branches located in Argentina, 137 of which were owned and 102 of which were rented by Banco Galicia, located in all of Argentina’s 23 provinces. |
• | Tarjeta Naranja S.A.: 122 sales points located in 21 of the 23 Argentine provinces, 120 of which were rented by the company. |
• | Tarjetas Cuyanas S.A.: 42 sales points in the provinces of Mendoza, San Juan, San Luis, Santiago del Estero, La Pampa, La Rioja, Catamarca, Neuquén, Rio Negro, Salta, Jujuy and Tucumán. All of them were rented. |
• | Tarjetas del Mar S.A.: 12 sales points located in the Province of Buenos Aires, all of which were rented. In addition, it owns 11 client assistance centers located in the Province of Buenos Aires and 48 sales stands located in premises that belong to La Anónima supermarket chain, in the provinces of Buenos Aires, La Pampa, Neuquén, Río Negro, Chubut and Tierra del Fuego. |
• | CFA: 41 branches, 38 mini-branches and 16 payment centers, all of which were rented, located in all of Argentina’s provinces, with at least one branch located in each province. |
• | Ps.105.7 million in fixed assets (real estate, machinery and equipment, vehicles, furniture and fittings); |
• | Ps.13.1 million in construction in progress; and |
• | Ps.211.7 million in organizational and IT system development expenses. |
• | Ps.56.6 million in fixed assets (real estate, machinery and equipment, vehicles, furniture and fittings); |
• | Ps.4.7 million in construction in progress; and |
• | Ps.118.2 million in organizational and IT system development expenses. |
• | Ps.103.4 million in fixed assets (real estate, machinery and equipment, vehicles, furniture and fittings); |
• | Ps.44 million in construction in progress; and |
• | Ps.132.5 million in organizational and IT system development expenses. |
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(In millions of Pesos) | ||||
Infrastructure of Corporate Buildings, Tower and Branches (construction, furniture, equipment, phones, etc.) | Ps. | 226.8 | ||
Fixed Assets | 102.3 | |||
Organizational and IT System Development | 294.4 | |||
Total | Ps. | 623.5 | ||
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Fiscal Year Ended December 31, 2010 (*) | ||||||||||||||||||||||||||||||||||||
Pesos | Dollars | Total | ||||||||||||||||||||||||||||||||||
Average | Average | Average | ||||||||||||||||||||||||||||||||||
Average | Accrued | Yield/ | Average | Accrued | Yield/ | Average | Accrued | Yield/ | ||||||||||||||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||||||||||||
(in millions of Pesos, except rates) | ||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||
Government Securities | 2,770.6 | 567.6 | 20.49 | 573.5 | (181.0 | ) | (31.56 | ) | 3,344.1 | 386.6 | 11.56 | |||||||||||||||||||||||||
Loans | ||||||||||||||||||||||||||||||||||||
Private Sector | 14,191.4 | 3,002.5 | 21.16 | 2,609.0 | 116.1 | 4.45 | 16,800.4 | 3,118.6 | 18.56 | |||||||||||||||||||||||||||
Banco Galicia and Regional Credit Card Companies | 13,551.0 | 2,683.1 | 19.80 | 2,609.0 | 116.1 | 4.45 | 16,160.0 | 2,799.2 | 17.32 | |||||||||||||||||||||||||||
CFA | 640.4 | 319.4 | 49.88 | — | — | — | 640.4 | 319.4 | 49.88 | |||||||||||||||||||||||||||
Public Sector | 0.4 | — | 0.20 | — | — | — | 0.4 | — | 0.20 | |||||||||||||||||||||||||||
Total Loans (1) | 14,191.8 | 3,002.5 | 21.16 | 2,609.0 | 116.1 | 4.45 | 16,800.8 | 3,118.6 | 18.56 | |||||||||||||||||||||||||||
Other | 1,571.8 | 85.3 | 5.43 | 266.6 | 3.9 | 1.46 | 1,838.4 | 89.2 | 4.85 | |||||||||||||||||||||||||||
Total Interest-Earning Assets | 18,534.2 | 3,655.4 | 19.72 | 3,449.1 | (61.0 | ) | (1.77 | ) | 21,983.3 | 3,594.4 | 16.35 | |||||||||||||||||||||||||
Cash and Gold | 2,084.8 | — | — | 2,233.0 | — | — | 4,317.8 | — | — | |||||||||||||||||||||||||||
Equity in Other Companies | 702.5 | — | — | 147.7 | — | — | 850.2 | — | — | |||||||||||||||||||||||||||
Other Assets | 2,735.0 | — | — | 183.6 | — | — | 2,918.6 | — | — | |||||||||||||||||||||||||||
Allowances | (901.1 | ) | — | — | (50.4 | ) | — | — | (951.5 | ) | — | — | ||||||||||||||||||||||||
Total Assets | 23,155.4 | — | — | 5,963.0 | — | — | 29,118.4 | — | — | |||||||||||||||||||||||||||
Liabilities and Equity | ||||||||||||||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||||||||||||
Current Accounts | 328.1 | 5.5 | 1.67 | 180.0 | — | — | 508.1 | 5.5 | 1.08 | |||||||||||||||||||||||||||
Savings Accounts | 2,717.5 | 7.7 | 0.28 | 1,298.7 | — | — | 4,016.2 | 7.7 | 0.19 | |||||||||||||||||||||||||||
Time Deposits | 7,083.8 | 741.8 | 10.47 | 1,470.5 | 11.7 | 0.79 | 8,554.3 | 753.5 | 8.81 | |||||||||||||||||||||||||||
Total Interest-Bearing Deposits | 10,129.4 | 755.0 | 7.45 | 2,949.2 | 11.7 | 0.40 | 13,078.6 | 766.7 | 5.86 | |||||||||||||||||||||||||||
Argentine Central Bank | — | — | — | 0.7 | — | — | 0.7 | — | — | |||||||||||||||||||||||||||
Other Financial Entities | 335.2 | 61.3 | 18.29 | 281.2 | 7.1 | 2.53 | 616.4 | 68.4 | 11.10 | |||||||||||||||||||||||||||
Debt Securities | 256.7 | 32.3 | 12.58 | 2,019.4 | 196.2 | 9.72 | 2,276.1 | 228.5 | 10.04 | |||||||||||||||||||||||||||
Other | 147.5 | 10.7 | 7.25 | 543.2 | 18.9 | 3.48 | 690.7 | 29.6 | 4.29 | |||||||||||||||||||||||||||
Total Interest-Bearing Liabilities | 10,868.8 | 859.3 | 7.91 | 5,793.7 | 233.9 | 4.04 | 16,662.5 | 1,093.2 | 6.56 | |||||||||||||||||||||||||||
Demand Deposits | 4,746.0 | — | — | 390.7 | — | — | 5,136.7 | — | — | |||||||||||||||||||||||||||
Other Liabilities | 3,995.8 | — | — | 786.5 | — | — | 4,782.3 | — | — | |||||||||||||||||||||||||||
Minority Interests | 341.9 | — | — | — | — | — | 341.9 | — | — | |||||||||||||||||||||||||||
Shareholders’ Equity | 2,195.0 | — | — | — | — | — | 2,195.0 | — | — | |||||||||||||||||||||||||||
Total Liabilities and Equity | 22,147.5 | — | — | 6,970.9 | — | — | 29,118.4 | — | — | |||||||||||||||||||||||||||
Spread and Net Yield | ||||||||||||||||||||||||||||||||||||
Interest Rate Spread | 11.81 | (5.81 | ) | 9.79 | ||||||||||||||||||||||||||||||||
Cost of Funds Supporting Interest-Earning Assets | 4.64 | 6.78 | 4.97 | |||||||||||||||||||||||||||||||||
Net Yield on Interest-Earning Assets | 15.09 | (8.55 | ) | 11.38 |
(*) | Rates include the CER adjustment. | |
(1) | Non accruing loans have been included in average loans. |
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Fiscal Year Ended December 31, 2009 (*) | ||||||||||||||||||||||||||||||||||||
Pesos | Dollars | Total | ||||||||||||||||||||||||||||||||||
Average | Average | Average | ||||||||||||||||||||||||||||||||||
Average | Accrued | Yield/ | Average | Accrued | Yield/ | Average | Accrued | Yield/ | ||||||||||||||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||||||||||||
(in millions of Pesos, except rates) | ||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||
Government Securities | 2,500.7 | 505.0 | 20.19 | 2,185.8 | 50.1 | 2.29 | 4,686.5 | 555.1 | 11.84 | |||||||||||||||||||||||||||
Loans | ||||||||||||||||||||||||||||||||||||
Private Sector | 9,431.6 | 2,049.8 | 21.73 | 1,912.0 | 140.3 | 7.34 | 11,343.6 | 2,190.1 | 19.31 | |||||||||||||||||||||||||||
Public Sector | 120.0 | 27.0 | 22.50 | — | — | — | 120.0 | 27.0 | 22.50 | |||||||||||||||||||||||||||
Total Loans(1) | 9,551.6 | 2,076.8 | 21.74 | 1,912.0 | 140.3 | 7.34 | 11,463.6 | 2,217.1 | 19.34 | |||||||||||||||||||||||||||
Other | 1,717.9 | 111.2 | 6.47 | 510.0 | 4.0 | 0.78 | 2,227.9 | 115.2 | 5.17 | |||||||||||||||||||||||||||
Total Interest-Earning Assets | 13,770.2 | 2,693.0 | 19.56 | 4,607.8 | 194.4 | 4.22 | 18,378.0 | 2,887.4 | 15.71 | |||||||||||||||||||||||||||
Cash and Gold | 1,515.2 | — | — | 1,913.5 | — | — | 3,428.7 | — | — | |||||||||||||||||||||||||||
Equity in Other Companies | 843.2 | — | — | 157.2 | — | — | 1,000.4 | — | — | |||||||||||||||||||||||||||
Other Assets | 2,482.3 | — | — | 162.9 | — | — | 2,645.2 | — | — | |||||||||||||||||||||||||||
Allowances | (724.8 | ) | — | — | (42.2 | ) | — | — | (767.0 | ) | — | — | ||||||||||||||||||||||||
Total Assets | 17,886.1 | — | — | 6,799.2 | — | — | 24,685.3 | — | — | |||||||||||||||||||||||||||
Liabilities and Equity | ||||||||||||||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||||||||||||
Current Accounts | 790.0 | 12.9 | 1.63 | 497.3 | — | — | 1,287.3 | 12.9 | 1.00 | |||||||||||||||||||||||||||
Savings Accounts | 1,988.4 | 5.7 | 0.29 | 1,026.1 | — | — | 3,014.5 | 5.7 | 0.19 | |||||||||||||||||||||||||||
Time Deposits | 6,073.9 | 843.2 | 13.88 | 1,318.0 | 19.1 | 1.45 | 7,391.9 | 862.3 | 11.67 | |||||||||||||||||||||||||||
Total Interest-Bearing Deposits | 8,852.3 | 861.8 | 9.74 | 2,841.4 | 19.1 | 0.67 | 11,693.7 | 880.9 | 7.53 | |||||||||||||||||||||||||||
Argentine Central Bank | — | — | — | 0.6 | — | — | 0.6 | — | — | |||||||||||||||||||||||||||
Other Financial Entities | 236.5 | 44.8 | 18.94 | 167.9 | 9.0 | 5.36 | 404.4 | 53.8 | 13.30 | |||||||||||||||||||||||||||
Debt Securities | 325.8 | 59.7 | 18.32 | 2,404.1 | 164.6 | 6.85 | 2,729.9 | 224.3 | 8.22 | |||||||||||||||||||||||||||
Other | 162.9 | 12.2 | 7.49 | 931.9 | 44.1 | 4.73 | 1,094.8 | 56.3 | 5.14 | |||||||||||||||||||||||||||
Total Interest-Bearing Liabilities | 9,577.5 | 978.5 | 10.22 | 6,345.9 | 236.8 | 3.73 | 15,923.4 | 1,215.3 | 7.63 | |||||||||||||||||||||||||||
Demand Deposits | 3,058.8 | — | — | 6.2 | — | — | 3,065.0 | — | — | |||||||||||||||||||||||||||
Other Liabilities | 2,816.3 | — | — | 669.5 | — | — | 3,485.8 | — | — | |||||||||||||||||||||||||||
Minority Interests | 249.9 | — | — | — | — | — | 249.9 | — | — | |||||||||||||||||||||||||||
Shareholders’ Equity | 1,961.2 | — | — | — | — | — | 1,961.2 | — | — | |||||||||||||||||||||||||||
Total Liabilities and Equity | 17,663.7 | — | — | 7,021.6 | — | — | 24,685.3 | — | — | |||||||||||||||||||||||||||
Spread and Net Yield | ||||||||||||||||||||||||||||||||||||
Interest Rate Spread | 9.34 | 0.49 | 8.08 | |||||||||||||||||||||||||||||||||
Cost of Funds Supporting Interest-Earning Assets | 7.11 | 5.14 | 6.61 | |||||||||||||||||||||||||||||||||
Net Yield on Interest-Earning Assets | 12.45 | (0.92 | ) | 9.10 |
(*) | Rates include the CER adjustment. | |
(1) | Non accruing loans have been included in average loans. |
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Fiscal Year Ended December 31, 2008 (*) | ||||||||||||||||||||||||||||||||||||
Pesos | Dollars | Total | ||||||||||||||||||||||||||||||||||
Average | Average | Average | ||||||||||||||||||||||||||||||||||
Average | Accrued | Yield/ | Average | Accrued | Yield/ | Average | Accrued | Yield/ | ||||||||||||||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||||||||||||
(in millions of Pesos, except rates) | ||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||
Government Securities | 1,161.4 | 72.2 | 6.22 | 2,480.8 | 76.3 | 3.08 | 3,642.2 | 148.5 | 4.08 | |||||||||||||||||||||||||||
Loans | ||||||||||||||||||||||||||||||||||||
Private Sector | 8,848.1 | 1,756.6 | 19.85 | 1,964.4 | 132.6 | 6.75 | 10,812.5 | 1,889.2 | 17.47 | |||||||||||||||||||||||||||
Public Sector | 1,264.8 | 165.7 | 13.10 | — | — | — | 1,264.8 | 165.7 | 13.10 | |||||||||||||||||||||||||||
Total Loans(1) | 10,112.9 | 1,922.3 | 19.01 | 1,964.4 | 132.6 | 6.75 | 12,077.3 | 2,054.9 | 17.01 | |||||||||||||||||||||||||||
Other(2) | 2,908.1 | 197.0 | 6.77 | 1,264.9 | 15.2 | 1.20 | 4,173.0 | 212.2 | 5.09 | |||||||||||||||||||||||||||
Total Interest-Earning Assets | 14,182.4 | 2,191.5 | 15.45 | 5,710.1 | 224.1 | 3.92 | 19,892.5 | 2,415.6 | 12.14 | |||||||||||||||||||||||||||
Cash and Gold | 599.2 | — | — | 287.9 | — | — | 887.1 | — | — | |||||||||||||||||||||||||||
Equity in Other Companies | 708.4 | — | — | 63.8 | — | — | 772.2 | — | — | |||||||||||||||||||||||||||
Other Assets | 2,211.6 | — | — | 218.2 | — | — | 2,429.8 | — | — | |||||||||||||||||||||||||||
Allowances | (479.1 | ) | — | — | (90.0 | ) | — | — | (569.1 | ) | — | — | ||||||||||||||||||||||||
Total Assets | 17,222.5 | — | — | 6,190.0 | — | — | 23,412.5 | — | — | |||||||||||||||||||||||||||
Liabilities and Equity | ||||||||||||||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||||||||||||
Current Accounts | 697.7 | 21.6 | 3.10 | 250.4 | — | — | 948.1 | 21.6 | 2.28 | |||||||||||||||||||||||||||
Savings Accounts | 1,849.3 | 4.7 | 0.25 | 738.4 | — | — | 2,587.7 | 4.7 | 0.18 | |||||||||||||||||||||||||||
Time Deposits | 5,797.6 | 749.9 | 12.93 | 971.8 | 17.8 | 1.83 | 6,769.4 | 767.7 | 11.34 | |||||||||||||||||||||||||||
Total Interest-Bearing Deposits | 8,344.6 | 776.2 | 9.30 | 1,960.6 | 17.8 | 0.91 | 10,305.2 | 794.0 | 7.70 | |||||||||||||||||||||||||||
Argentine Central Bank | — | — | — | 0.4 | — | — | 0.4 | — | — | |||||||||||||||||||||||||||
Other Financial Entities | 297.7 | 53.8 | 18.07 | 797.5 | 39.3 | 4.93 | 1,095.2 | 93.1 | 8.50 | |||||||||||||||||||||||||||
Debt Securities | 487.3 | 70.5 | 14.47 | 2,312.5 | 209.6 | 9.06 | 2,799.8 | 280.1 | 10.00 | |||||||||||||||||||||||||||
Other | 224.9 | 21.6 | 9.60 | 1,269.0 | 88.9 | 7.01 | 1,493.9 | 110.5 | 7.40 | |||||||||||||||||||||||||||
Total Interest-Bearing Liabilities | 9,354.5 | 922.1 | 9.86 | 6,340.0 | 355.6 | 5.61 | 15,694.5 | 1,277.7 | 8.14 | |||||||||||||||||||||||||||
Demand Deposits | 2,873.6 | — | — | 12.4 | — | — | 2,886.0 | — | — | |||||||||||||||||||||||||||
Other Liabilities | 2,313.1 | — | — | 559.5 | — | — | 2,872.6 | — | — | |||||||||||||||||||||||||||
Minority Interests | 214.4 | — | — | — | — | — | 214.4 | — | — | |||||||||||||||||||||||||||
Shareholders’ Equity | 1,745.0 | — | — | — | — | — | 1,745.0 | — | — | |||||||||||||||||||||||||||
Total Liabilities and Equity | 16,500.6 | — | — | 6,911.9 | — | — | 23,412.5 | — | — | |||||||||||||||||||||||||||
Spread and Net Yield | ||||||||||||||||||||||||||||||||||||
Interest Rate Spread | 5.59 | (1.69 | ) | 4.00 | ||||||||||||||||||||||||||||||||
Cost of Funds Supporting Interest-Earning Assets | 6.50 | 6.23 | 6.42 | |||||||||||||||||||||||||||||||||
Net Yield on Interest-Earning Assets | 8.95 | (2.30 | ) | 5.72 |
(*) | Rates include the CER adjustment. | |
(1) | Non accruing loans have been included in average loans. (2) Includes, among other amounts, the amounts corresponding to the Compensatory Bond and the Hedge Bond to be received. |
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Fiscal Year 2010/ Fiscal Year 2009, Increase | Fiscal Year 2009/ Fiscal Year 2008, Increase | |||||||||||||||||||||||
(Decrease) due to changes in | (Decrease) due to changes in | |||||||||||||||||||||||
Volume | Rate | Net Change | Volume | Rate | Net Change | |||||||||||||||||||
(in millions of Pesos) | ||||||||||||||||||||||||
Interest Earning Assets | ||||||||||||||||||||||||
Government Securities | ||||||||||||||||||||||||
Pesos | 55.2 | 7.4 | 62.6 | 146.6 | 286.2 | 432.8 | ||||||||||||||||||
Dollars | (11.0 | ) | (220.1 | ) | (231.1 | ) | (8.4 | ) | (17.8 | ) | (26.2 | ) | ||||||||||||
Total | 44.2 | (212.7 | ) | (168.5 | ) | 138.2 | 268.4 | 406.6 | ||||||||||||||||
Loans | ||||||||||||||||||||||||
Private Sector | ||||||||||||||||||||||||
Banco Galicia and Regional Credit Card Companies | ||||||||||||||||||||||||
Pesos | 795.3 | (162.0 | ) | 633.3 | 120.4 | 172.8 | 293.2 | |||||||||||||||||
Dollars | 303.1 | (327.3 | ) | (24.2 | ) | (3.4 | ) | 11.1 | 7.7 | |||||||||||||||
Total | 1,098.4 | (489.3 | ) | 609.1 | 117.0 | 183.9 | 300.9 | |||||||||||||||||
CFA | ||||||||||||||||||||||||
Pesos | 319.4 | (*) | 319.4 | — | — | — | ||||||||||||||||||
Dollars | — | — | — | — | — | — | ||||||||||||||||||
Total | 319.4 | — | 319.4 | — | — | — | ||||||||||||||||||
Public Sector | ||||||||||||||||||||||||
Pesos | (14.1 | ) | (12.9 | ) | (27.0 | ) | (668.4 | ) | 529.7 | (138.7 | ) | |||||||||||||
Dollars | — | — | — | — | — | — | ||||||||||||||||||
Total | (14.1 | ) | (12.9 | ) | (27.0 | ) | (668.4 | ) | 529.7 | (138.7 | ) | |||||||||||||
Other | ||||||||||||||||||||||||
Pesos | (8.9 | ) | (17.0 | ) | (25.9 | ) | (77.4 | ) | (8.4 | ) | (85.8 | ) | ||||||||||||
Dollars | 0.1 | (0.2 | ) | (0.1 | ) | (7.0 | ) | (4.2 | ) | (11.2 | ) | |||||||||||||
Total | (8.8 | ) | (17.2 | ) | (26.0 | ) | (84.4 | ) | (12.6 | ) | (97.0 | ) | ||||||||||||
Total Interest-Earning Assets | ||||||||||||||||||||||||
Pesos | 1,146.9 | (184.5 | ) | 962.4 | (478.8 | ) | 980.3 | 501.5 | ||||||||||||||||
Dollars | 292.2 | (547.6 | ) | (255.4 | ) | (18.8 | ) | (10.9 | ) | (29.7 | ) | |||||||||||||
Total | 1,439.1 | (732.1 | ) | 707.0 | (497.6 | ) | 969.4 | 471.8 | ||||||||||||||||
Interest Bearing Liabilities | ||||||||||||||||||||||||
Demand Account | ||||||||||||||||||||||||
Pesos | (7.7 | ) | 0.3 | (7.4 | ) | 3.4 | (12.1 | ) | (8.7 | ) | ||||||||||||||
Dollars | — | — | — | — | — | — | ||||||||||||||||||
Total | (7.7 | ) | 0.3 | (7.4 | ) | 3.4 | (12.1 | ) | (8.7 | ) | ||||||||||||||
Savings Account | ||||||||||||||||||||||||
Pesos | 2.0 | — | 2.0 | 0.4 | 0.6 | 1.0 | ||||||||||||||||||
Dollars | — | — | — | — | — | — | ||||||||||||||||||
Total | 2.0 | — | 2.0 | 0.4 | 0.6 | 1.0 | ||||||||||||||||||
Time Deposits | ||||||||||||||||||||||||
Pesos | 212.3 | (313.7 | ) | (101.4 | ) | 36.8 | 56.5 | 93.3 | ||||||||||||||||
Dollars | 2.6 | (10.0 | ) | (7.4 | ) | 3.2 | (1.9 | ) | 1.3 | |||||||||||||||
Total | 214.9 | (323.7 | ) | (108.8 | ) | 40.0 | 54.6 | 94.6 | ||||||||||||||||
With Other Financial Entities | ||||||||||||||||||||||||
Pesos | 18.0 | (1.5 | ) | 16.5 | (11.8 | ) | 2.8 | (9.0 | ) | |||||||||||||||
Dollars | 4.2 | (6.1 | ) | (1.9 | ) | (33.9 | ) | 3.6 | (30.3 | ) | ||||||||||||||
Total | 22.2 | (7.6 | ) | 14.6 | (45.7 | ) | 6.4 | (39.3 | ) | |||||||||||||||
Negotiable Obligations | ||||||||||||||||||||||||
Pesos | (11.1 | ) | (16.3 | ) | (27.4 | ) | (55.5 | ) | 44.7 | (10.8 | ) | |||||||||||||
Dollars | (19.5 | ) | 51.1 | 31.6 | 8.7 | (53.7 | ) | (45.0 | ) | |||||||||||||||
Total | (30.6 | ) | 34.8 | 4.2 | (46.8 | ) | (9.0 | ) | (55.8 | ) | ||||||||||||||
Other liabilities | ||||||||||||||||||||||||
Pesos | (1.1 | ) | (0.4 | ) | (1.5 | ) | (5.2 | ) | (4.2 | ) | (9.4 | ) | ||||||||||||
Dollars | (15.4 | ) | (9.8 | ) | (25.2 | ) | (20.2 | ) | (24.6 | ) | (44.8 | ) | ||||||||||||
Total | (16.5 | ) | (10.2 | ) | (26.7 | ) | (25.4 | ) | (28.8 | ) | (54.2 | ) | ||||||||||||
Total Interest Bearing Liabilities | ||||||||||||||||||||||||
Pesos | 212.4 | (331.6 | ) | (119.2 | ) | (31.9 | ) | 88.3 | 56.4 | |||||||||||||||
Dollars | (28.1 | ) | 25.2 | (2.9 | ) | (42.2 | ) | (76.6 | ) | (118.8 | ) | |||||||||||||
Total | 184.3 | (306.4 | ) | (122.1 | ) | (74.1 | ) | 11.7 | (62.4 | ) | ||||||||||||||
(*) | Regarding CFA’s loans and comparative disclosures for the year ended December 31, 2010, the information related to changes in volumes and rates is not presented, due to the fact that average balances or interest amounts did not exist for these activities for the above-mentioned periods in 2009. CFA’s loans were included in 2010 information since its acquisition in June 2010. |
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Fiscal Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(in millions of Pesos, except percentages) | ||||||||||||
Total Average Interest-Earning Assets | ||||||||||||
Pesos | 18,534.2 | 13,770.2 | 14,182.4 | |||||||||
Dollars | 3,449.1 | 4,607.8 | 5,710.1 | |||||||||
Total | 21,983.3 | 18,378.0 | 19,892.5 | |||||||||
Net Interest Earned(1) | ||||||||||||
Pesos | 2,796.1 | 1,714.5 | 1,269.4 | |||||||||
Dollars | (294.9 | ) | (42.4 | ) | (131.5 | ) | ||||||
Total | 2,501.2 | 1,672.1 | 1,137.9 | |||||||||
Net Yield on Interest-Earning Assets(2)(%) | ||||||||||||
Pesos | 15.09 | 12.45 | 8.95 | |||||||||
Dollars | (8.55 | ) | (0.92 | ) | (2.30 | ) | ||||||
Weighted-Average Yield | 11.38 | 9.10 | 5.72 | |||||||||
Interest Spread, Nominal Basis(3)(%) | ||||||||||||
Pesos | 11.81 | 9.34 | 5.59 | |||||||||
Dollars | (5.81 | ) | 0.49 | (1.69 | ) | |||||||
Weighted-Average Yield | 9.79 | 8.08 | 4.00 | |||||||||
Credit Related Fees Included in Net Interest Earned | ||||||||||||
Pesos | 109.5 | 84.2 | 69.9 | |||||||||
Dollars | — | — | — | |||||||||
Total | 109.5 | 84.2 | 69.9 | |||||||||
(1) | Net interest earned corresponds to the net financial income (“Financial Income” minus “Financial Expenses”, as setforth in the Income Statement), plus (i) financial fees included in “Income from Services — In Relation to Lending Transactions” in the Income Statement,(ii) contributions to the Deposits Insurance Fund included in the item with the same denomination that is part of the “Financial Expenses” caption in the Income Statement, and (iii) contributions and taxes on financial income included in the Income Statement under “Financial Expenses — Others”; minus (i) net income from corporate securities, included under “Financial Income/Expenses — Interest Income and Gains/Losses from Holdings of Government and Corporate Securities”, in the Income Statement,(ii) differences in quotation of gold and foreign currency included in the item with the same denomination that is part of the Financial Expenses/Income caption in the Income Statement, and (iii) the premiums and adjustments on forward transactions in foreign currency, included in the item “Financial Income-Others” in the Income Statement. Net interest earned also includes income from government securities used as security margins in repurchase agreement transactions. This income/loss is included in “Miscellaneous Income/Loss — Others” in the Income Statement. Net income from government securities includes both interest and gains/losses due to the variation of market quotations. | |
(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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Fiscal Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(in millions of Pesos) | ||||||||||||
Government Securities | ||||||||||||
Pesos | ||||||||||||
Investment | 133.7 | 43.3 | 22.8 | |||||||||
Issued by Argentine Central Bank — Lebac and Nobac | — | 43.3 | 22.8 | |||||||||
Bonar Bonds | 133.7 | — | — | |||||||||
Trading | 38.4 | 100.7 | 233.7 | |||||||||
Bonar Bonds | 13.3 | 42.7 | — | |||||||||
Bogar Bonds | — | — | 1.6 | |||||||||
Others | 25.1 | 58.0 | 232.1 | |||||||||
Issued by Argentine Central Bank | 2,065.7 | 1,615.1 | 550.2 | |||||||||
Lebac Unquoted | 257.5 | 934.6 | — | |||||||||
Lebac Quoted | 359.1 | 633.9 | — | |||||||||
Nobac Unquoted | 1,265.0 | 29.5 | 520.2 | |||||||||
Nobac Quoted | 3.9 | 17.1 | 30.0 | |||||||||
Lebac Repurchase Agreement Transactions | 180.2 | — | — | |||||||||
Without Quotation | — | 945.7 | 69.8 | |||||||||
Bonar Bonds | — | 323.7 | — | |||||||||
Discount Bonds in Pesos | — | 622.0 | 69.8 | |||||||||
Total Government Securities in Pesos | 2,237.8 | 2,704.8 | 876.5 | |||||||||
Dollars | ||||||||||||
Investment | — | — | 527.4 | |||||||||
Boden 2012 Bonds | — | — | 525.9 | |||||||||
Boden 2013 Bonds | — | — | 1.5 | |||||||||
Trading | 29.9 | 13.5 | 0.4 | |||||||||
Boden 2012 Bonds | — | — | — | |||||||||
Others | 29.9 | 13.5 | 0.4 | |||||||||
Government Securities for Repurchase Agreement Transactions with the Argentinte Central Bank | — | 152.7 | 127.5 | |||||||||
Boden 2013 — 2015 Bonds | — | — | 127.5 | |||||||||
Bonar Bonds | — | 152.7 | — | |||||||||
Without Quotation | — | 1,036.2 | — | |||||||||
Boden 2012 Bonds | — | 1,032.4 | — | |||||||||
Others | — | 3.8 | — | |||||||||
Total Government Securities in Dollars | 29.9 | 1,202.4 | 655.3 | |||||||||
Total Government Securities | 2,267.7 | 3,907.2 | 1,531.8 | |||||||||
Corporate Securities | 10.3 | 13.2 | 0.1 | |||||||||
Corporate Equity Securities (Quoted) in Pesos | 10.3 | 0.1 | 0.1 | |||||||||
Corporate Equity Securities (Quoted) in Dollars | — | 13.1 | — | |||||||||
Total Government and Corporate Securities | 2,278.0 | 3,920.4 | 1,531.9 |
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As of December 31, 2010 | ||||||||||||||||||||||||
Spot | Spot | |||||||||||||||||||||||
Forward | Forward | purchases | sales | Net | ||||||||||||||||||||
Holdings | Purchases | Sales | to be settled | to be settled | Position | |||||||||||||||||||
(in millions of Pesos) | ||||||||||||||||||||||||
Government Securities | ||||||||||||||||||||||||
Investment Portfolio | ||||||||||||||||||||||||
Pesos | 133.7 | 508.4 | — | — | — | 642.1 | ||||||||||||||||||
Trading or Financial Brokerage Portfolio | ||||||||||||||||||||||||
Pesos | 38.4 | — | — | 0.2 | 7.7 | 30.9 | ||||||||||||||||||
Dollars | 29.9 | — | — | 11.8 | 14.4 | 27.3 | ||||||||||||||||||
Securities issued by the Argentine Central Bank | ||||||||||||||||||||||||
Pesos | 2,065.7 | 399.4 | 180.2 | 32.2 | 24.0 | 2,293.1 | ||||||||||||||||||
Dollars | — | — | — | — | — | — | ||||||||||||||||||
Other Provided as Collateral | — | 118.3 | — | — | — | 118.3 | ||||||||||||||||||
Total Government Securities | 2,267.7 | 1,026.1 | 180.2 | 44.2 | 46.1 | 3,111.7 | ||||||||||||||||||
Corporate Equity Securities (Quoted) | 10.3 | — | — | — | — | 10.3 | ||||||||||||||||||
Total Government and Corporate Securities | 2,278.0 | 1,026.1 | 180.2 | 44.2 | 46.1 | 3,122.0 | ||||||||||||||||||
Maturing after 1 | Maturing after 5 | |||||||||||||||||||||||||||||||||||
Maturing | year but within | years but within | Maturing | |||||||||||||||||||||||||||||||||
Total | within 1 year | 5 years | 10 years | after 10 years | ||||||||||||||||||||||||||||||||
Book | Book | Book | Book | Book | ||||||||||||||||||||||||||||||||
Value | Value | Yield(1) | Value | Yield(1) | Value | Yield(1) | Value | Yield(1) | ||||||||||||||||||||||||||||
(in millions of Pesos, except percentages) | ||||||||||||||||||||||||||||||||||||
Government Securities | ||||||||||||||||||||||||||||||||||||
Held for Trading and Brokerage | ||||||||||||||||||||||||||||||||||||
Purposes (carried at market value) | ||||||||||||||||||||||||||||||||||||
Pesos | 38.4 | 2.0 | 6.7 | % | 27.5 | 10.1 | % | 1.0 | 11.4 | % | 7.9 | 10.8 | % | |||||||||||||||||||||||
Dollars | 29.9 | 5.6 | 3.1 | % | 24.3 | 4.3 | % | — | — | — | 10.1 | % | ||||||||||||||||||||||||
Held for Investment (carried at amortized cost) | ||||||||||||||||||||||||||||||||||||
Pesos | 133.7 | — | 17.3 | % | 133.7 | 17.3 | % | — | — | — | — | |||||||||||||||||||||||||
Instruments Issued by the Argentine Central Bank | ||||||||||||||||||||||||||||||||||||
Pesos | 2,065.7 | 2,065.7 | 10.5 | % | — | — | — | — | — | — | ||||||||||||||||||||||||||
Securities Without Quotation | ||||||||||||||||||||||||||||||||||||
Pesos | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Dollars | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Total Government Securities | 2,267.7 | 2,073.3 | 10.5 | % | 185.5 | 14.5 | % | 1.0 | 10.4 | % | 7.9 | 10.8 | % | |||||||||||||||||||||||
Corporate Debt Securities | 10.3 | 10.3 | 8.0 | % | — | — | — | — | — | — | ||||||||||||||||||||||||||
Total Portfolio | 2,278.0 | 2,083.6 | 10.5 | % | 185.5 | 14.5 | % | 1.0 | 10.4 | % | 7.9 | 10.8 | % | |||||||||||||||||||||||
(1) | Effective yield based on December 31, 2010 quoted market values. |
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In millions of Pesos | Issuer | Book Value | Market Value | |||||||
Securities issued by the Argentine Central Bank | Argentine Central Bank | 2,411.4 | 2,405.6 | |||||||
Total | 2,411.4 | 2,405.6 | ||||||||
As of December 31, | ||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
(in millions of Pesos) | ||||||||||||||||||||
Principal and Interest | ||||||||||||||||||||
Non-Financial Public Sector | 3.2 | 5.0 | 1,319.6 | 1,210.5 | 2,690.6 | |||||||||||||||
Local Financial Sector | 80.6 | 25.4 | 148.1 | 110.0 | 311.6 | |||||||||||||||
Non-Financial Private Sector and Residents Abroad(1) | ||||||||||||||||||||
Advances | 979.2 | 630.1 | 594.4 | 792.1 | 346.3 | |||||||||||||||
Promissory Notes | 4,534.3 | 3,205.4 | 2,116.3 | 2,911.2 | 2,143.7 | |||||||||||||||
Mortgage Loans | 950.2 | 964.3 | 1,026.8 | 945.1 | 688.0 | |||||||||||||||
Pledge Loans | 119.2 | 64.8 | 81.0 | 94.5 | 67.1 | |||||||||||||||
Personal Loans(2) | 4,093.6 | 1,724.4 | 1,217.6 | 977.9 | 563.2 | |||||||||||||||
Credit Card Loans | 9,120.1 | 5,691.3 | 4,378.4 | 3,630.1 | 2,458.6 | |||||||||||||||
Placements in Banks Abroad | 215.3 | 440.7 | 334.5 | 158.0 | 608.0 | |||||||||||||||
Other Loans | 2,081.2 | 1,387.9 | 883.3 | 1,010.8 | 794.8 | |||||||||||||||
Accrued Interest, Adjustment and Quotation Differences Receivable | 277.1 | 178.8 | 185.8 | 177.0 | 155.0 | |||||||||||||||
Documented Interest | (81.8 | ) | (54.2 | ) | (38.5 | ) | (42.5 | ) | (23.3 | ) | ||||||||||
Total Non-Financial Private-Sector and Residents Abroad | 22,288.4 | 14,233.5 | 10,779.6 | 10,654.2 | 7,801.4 | |||||||||||||||
Total Gross Loans | 22,372.2 | 14,263.9 | 12,247.3 | 11,974.7 | 10,803.6 | |||||||||||||||
Allowance for Loan Losses | (1,038.5 | ) | (806.4 | ) | (526.8 | ) | (428.6 | ) | (327.0 | ) | ||||||||||
Total Loans | 21,333.7 | 13,457.5 | 11,720.5 | 11,546.1 | 10,476.6 | |||||||||||||||
Loans with Guarantees | ||||||||||||||||||||
With Preferred Guarantees(3) | 1,257.1 | 1,142.2 | 1,332.8 | 1,289.8 | 1,076.2 | |||||||||||||||
Other Guarantees | 3,694.5 | 2,453.9 | 2,971.1 | 3,180.2 | 4,103.6 | |||||||||||||||
Total Loans with Guarantees | 4,951.6 | 3,596.1 | 4,303.9 | 4,470.0 | 5,179.8 | |||||||||||||||
(1) | Categories of loans include: |
• | Advances: short-term obligations drawn on by customers through overdrafts. |
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• | Promissory 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-Card Loans: loans granted through credit cards to credit card holders. | ||
• | Placements in Banks Abroad: short-term loans to banks abroad. | ||
• | Other Loans: loans not included in other categories. | ||
• | Documented Interest: discount on notes and bills. |
(2) | As of December 31, 2010 includes loans incorporated as a consequence of the acquisition of CFA. | |
(3) | Preferred guarantees include mortgages on real estate property or pledges on movable property, such as cars or machinery, where Banco Galicia has priority, endorsements of the Federal Office of the Secretary of Finance, pledges of Government securities, or gold or cash as collateral. |
As of December 31, | ||||||||||||||||||||||||
2010 | 2009 | 2008 | ||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % of Total | |||||||||||||||||||
(in millions of Pesos, except percentages) | ||||||||||||||||||||||||
Corporate | 2,768.1 | 12.37 | 1,801.1 | 12.63 | 1,148.6 | 9.38 | ||||||||||||||||||
Middle-Market Companies | 6,641.9 | 29.69 | 4,844.5 | 33.96 | 3,716.8 | 30.35 | ||||||||||||||||||
- Agribusiness | 2,458.2 | 10.99 | 1,962.9 | 13.76 | 1,461.4 | 11.93 | ||||||||||||||||||
- SMEs | 4,183.8 | 18.70 | 2,881.6 | 20.20 | 2,255.4 | 18.42 | ||||||||||||||||||
Commercial Loans | 9,410.0 | 42.06 | 6,645.6 | 46.59 | 4,865.4 | 39.73 | ||||||||||||||||||
Individuals | 12,640.9 | 56.51 | 7,142.8 | 50.07 | 5,578.3 | 45.55 | ||||||||||||||||||
- Bank | 6,807.0 | 30.43 | 4,296.4 | 30.12 | 3,232.0 | 26.39 | ||||||||||||||||||
- Regional Credit Card Companies | 4,455.9 | 19.92 | 2,846.4 | 19.95 | 2,346.3 | 19.16 | ||||||||||||||||||
- CFA | 1,378.0 | 6.16 | — | — | — | — | ||||||||||||||||||
Financial Sector(1) | 318.0 | 1.42 | 470.5 | 3.30 | 484.0 | 3.95 | ||||||||||||||||||
Non-Financial Public Sector | 3.2 | 0.01 | 5.0 | 0.04 | 1,319.6 | 10.77 | ||||||||||||||||||
Total(2) | 22,372.1 | 100.00 | 14,263.9 | 100.00 | 12,247.3 | 100.00 | ||||||||||||||||||
(1) | Includes local and international financial sector. Financial Sector loans are primarily composed of interbank loans (call money loans), overnight deposits at international money center banks and loans to provincial banks. | |
(2) | Before the allowance for loan losses. |
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As of December 31, | ||||||||||||||||||||||||
2010 | 2009 | 2008 | ||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % of Total | |||||||||||||||||||
(in millions of Pesos, except percentages) | ||||||||||||||||||||||||
Financial Sector(1) | 318.0 | 1.42 | 470.5 | 3.30 | 484.0 | 3.95 | ||||||||||||||||||
Services | ||||||||||||||||||||||||
Non-Financial Public Sector | 3.2 | 0.01 | 5.0 | 0.04 | 1,319.6 | 10.77 | ||||||||||||||||||
Communications, Transportation Health and Others | 1,315.3 | 5.88 | 1,020.2 | 7.15 | 838.3 | 6.84 | ||||||||||||||||||
Electricity, Gas, Water Supply and Sewage Services | 111.2 | 0.50 | 43.7 | 0.31 | 30.7 | 0.25 | ||||||||||||||||||
Other Financial Services | 54.0 | 0.24 | 12.8 | 0.09 | 44.5 | 0.37 | ||||||||||||||||||
Total | 1,483.7 | 6.63 | 1,081.7 | 7.59 | 2,233.1 | 18.23 | ||||||||||||||||||
Primary Products | ||||||||||||||||||||||||
Agriculture and Livestock | 2,268.0 | 10.14 | 1,803.8 | 12.65 | 1,274.5 | 10.41 | ||||||||||||||||||
Fishing, Forestry and Mining | 199.3 | 0.89 | 177.8 | 1.25 | 60.9 | 0.49 | ||||||||||||||||||
Total | 2,467.3 | 11.03 | 1,981.6 | 13.90 | 1,335.4 | 10.90 | ||||||||||||||||||
Consumer | 12,232.7 | 54.68 | 6,781.5 | 47.54 | 5,294.9 | 43.23 | ||||||||||||||||||
Retail Trade | 906.2 | 4.05 | 719.5 | 5.04 | 537.2 | 4.39 | ||||||||||||||||||
Wholesale Trade | 1,532.8 | 6.85 | 931.4 | 6.53 | 647.0 | 5.28 | ||||||||||||||||||
Construction | 318.1 | 1.42 | 177.0 | 1.24 | 82.2 | 0.67 | ||||||||||||||||||
Manufacturing | ||||||||||||||||||||||||
Foodstuffs | 1,098.4 | 4.91 | 773.2 | 5.42 | 533.6 | 4.36 | ||||||||||||||||||
Transportation Materials | 70.9 | 0.32 | 41.9 | 0.29 | 81.5 | 0.67 | ||||||||||||||||||
Chemicals and Oil | 454.3 | 2.03 | 378.3 | 2.65 | 293.2 | 2.39 | ||||||||||||||||||
Manufacturing Industries | 1,388.7 | 6.21 | 891.5 | 6.25 | 682.6 | 5.57 | ||||||||||||||||||
Total | 3,012.3 | 13.47 | 2,084.9 | 14.61 | 1,590.9 | 12.99 | ||||||||||||||||||
Other Loans | 101.1 | 0.45 | 35.8 | 0.25 | 42.6 | 0.36 | ||||||||||||||||||
Total(2) | 22,372.2 | 100.00 | 14,263.9 | 100.00 | 12,247.3 | 100.00 | ||||||||||||||||||
(1) | Includes local and international financial sectors. | |
(2) | Before the allowance for loan losses. |
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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, 2010 | ||||||||||||||||||||||
(in millions of Pesos) | ||||||||||||||||||||||||||||
Non-Financial Public Sector(1) | 3.2 | — | — | — | — | — | 3.2 | |||||||||||||||||||||
Financial Sector(1) | 80.6 | — | — | — | — | — | 80.6 | |||||||||||||||||||||
Private Sector and Residents Abroad | 11,620.2 | 5,264.4 | 1,969.3 | 2,485.3 | 771.4 | 177.8 | 22,288.4 | |||||||||||||||||||||
- Advances | 685.7 | 280.0 | 12.8 | 0.8 | — | — | 979.2 | |||||||||||||||||||||
- Promissory Notes | 1,847.3 | 1,905.9 | 369.1 | 338.6 | 67.2 | 6.2 | 4,534.3 | |||||||||||||||||||||
- Mortgage Loans | 30.6 | 91.9 | 94.6 | 340.0 | 243.7 | 149.4 | 950.2 | |||||||||||||||||||||
- Pledge Loans | 8.1 | 21.5 | 22.1 | 59.8 | 6.7 | 0.9 | 119.1 | |||||||||||||||||||||
- Personal Loans | 247.0 | 957.9 | 866.8 | 1,546.8 | 453.8 | 21.3 | 4,093.6 | |||||||||||||||||||||
- Credit-Card Loans | 6,620.4 | 1,811.8 | 569.1 | 118.7 | — | — | 9,120.1 | |||||||||||||||||||||
- Other Loans | 1,986.8 | 195.4 | 34.8 | 80.6 | — | — | 2,297.6 | |||||||||||||||||||||
- Accrued Interest and Quotation | ||||||||||||||||||||||||||||
Differences Receivable(1) | 277.1 | — | — | — | — | — | 277.1 | |||||||||||||||||||||
- (Documented Interest) | (81.8 | ) | — | — | — | — | — | (81.8 | ) | |||||||||||||||||||
- (Unallocated Collections) | (1.0 | ) | — | — | — | — | — | (1.0 | ) | |||||||||||||||||||
Allowance for Loan Losses(2) | (1,038.5 | ) | (1,038.5 | ) | ||||||||||||||||||||||||
Total Loans, Net | 10,665.5 | 5,264.4 | 1,969.3 | 2,485.3 | 771.4 | 177.8 | 21,333.7 | |||||||||||||||||||||
(1) | Interest and the CER adjustment were assigned to the first month. | |
(2) | Allowances were assigned to the first month as were past due loans and loans in judicial proceedings. |
In millions of Pesos | As a % of Total Loans | |||||||
Variable Rate(1)(2) | ||||||||
Pesos | 922.7 | 26.87 | % | |||||
Dollars | 202.0 | 5.88 | % | |||||
Total | 1,124.7 | 32.75 | % | |||||
Fixed Rate(2)(3) | ||||||||
Pesos | 2,203.5 | 64.15 | % | |||||
Dollars | 106.3 | 3.10 | % | |||||
Total | 2,309.8 | 67.25 | % | |||||
Past Due Loans | ||||||||
Pesos | — | — | ||||||
Dollars | — | — | ||||||
Total | — | — | ||||||
(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 corporate borrower’s creditworthiness performed by the officer in charge of the account based on personal knowledge. | |
Economic and Financial Risk | Quantitative analysis of the borrower’s balance sheet amounts. | |
Economic Risk of the Sector | Measurement of the general risk of the financial sector where the borrower operates (based on statistical information, internal and external). | |
Environmental Risk | Environmental impact analysis (required for all investment projects of significant amounts). |
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Refinancing | Judicial Agreements | |||||||||||||||||
Monthly or | Others | Previous | Com. “A” | |||||||||||||||
Bimonthly | Previous % | Com. “A” 4975 | % | 4975 | ||||||||||||||
Category change from 5 to 4 | 3 installments | 20 | % | 15 | % | |||||||||||||
Category change from 4 to 3 | 3 installments | 15 | % | 10 | % | |||||||||||||
Category change from 3 to 2 | 2 installments | 10 | % | 5 | % | 20 | % | 15 | % | |||||||||
Category change from 2 to 1 | 1 installment | 10 | % | 5 | % | 20 | % | 15 | % |
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Loan Classification | Description | |
1. Normal Situation | The debtor is widely able to meet its financial obligations, demonstrating significant cash flows, a liquid financial situation, an adequate financial structure, a timely payment record, competent management, available information in a timely, accurate manner and satisfactory internal controls. The debtor is in the upper 50% of a sector of activity that is operating properly and has good prospects. | |
2. With Special Follow-up | Cash flow analysis reflects that the debt may be repaid even though it is possible that the customer’s future payment ability may deteriorate without a proper follow-up. | |
This category is divided into two subcategories: | ||
(2.a). Under Observation; | ||
(2.b). Under Negotiation or Refinancing Agreements. | ||
3. With Problems | Cash flow analysis evidences problems to repay the debt, and therefore, if these problems are not solved, there may be some losses. | |
4. High Risk of Insolvency | Cash flow analysis evidences that repayment of the full debt is highly unlikely. | |
5. Uncollectible | The amounts in this category are deemed total losses. Even though these assets may be recovered under certain future circumstances, inability to make payments is evident at the date of the analysis. It 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 non-accrual status with financial institutions that have been liquidated or are being liquidated, or whose authorization to operate has been revoked. It also includes loans to foreign banks and other institutions that 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; | ||
(iii) classified as “investment grade” by any of the rating agencies admitted pursuant to Communiqué “A” 2729 of the Argentine Central Bank. |
Loan Classification | Description | |
1. Normal Situation | Loans with timely repayment or arrears not exceeding 31 days, both of principal and interest. | |
2. Low Risk | Occasional late payments, with a payment in arrears of more than 32 days and up to 90 days. A customer classified as “Normal” having been refinanced may be recategorized within this category, as long as he amortizes one principal installment (whether monthly or bimonthly) or repays 5% of principal. | |
3. Medium Risk | Some inability to make payments, with arrears of more than 91 days and up to 180 days. A customer classified as “Low Risk” having been refinanced may be recategorized within this category, as long as he amortizes two principal installments (whether monthly or bimonthly) or repays 5% of principal. | |
4. High Risk | Judicial proceedings demanding payment have been initiated or arrears of more than 180 days and up to one year. A customer classified as “Medium Risk” having been refinanced may be recategorized within this category, as long as he amortizes three principal installments (whether monthly or bimonthly) or repays 10% of principal. | |
5. Uncollectible | Loans to insolvent or bankrupt borrowers, or subject to judicial proceedings, with little or no possibility of collection, or with 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” |
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Category | Secured | Unsecured | ||||||
1. Normal Situation | 1.0 | % | 1.0 | % | ||||
2. (a) “Under Observation” and “Low Risk” | 3.0 | % | 5.0 | % | ||||
2. (b) “Under Negotiation or Refinancing Agreements” | 6.0 | % | 12.0 | % | ||||
3. “With Problems” and “Medium Risk” | 12.0 | % | 25.0 | % | ||||
4. “High Risk of Insolvency” and “High Risk” | 25.0 | % | 50.0 | % | ||||
5. “Uncollectible” | 50.0 | % | 100.0 | % | ||||
6. “Uncollectible Due to Technical Reasons” | 100.0 | % | 100.0 | % |
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As of December 31, 2010 | ||||||||||||||||||||||||
Amounts Not Yet Due | Amounts Past Due | Total Loans | ||||||||||||||||||||||
(in millions of Pesos, except percentages) | ||||||||||||||||||||||||
Amounts | % | Amounts | % | Amounts | % | |||||||||||||||||||
Loan Portfolio Classification | ||||||||||||||||||||||||
1. Normal and Normal Performance | 21,230.1 | 97.40 | — | — | 21,230.1 | 94.90 | ||||||||||||||||||
2. With Special Follow-up — Under observation and Low Risk | 387.2 | 1.78 | — | — | 387.2 | 1.73 | ||||||||||||||||||
3. With Problems and Medium Risk | 114.2 | 0.52 | 144.6 | 25.11 | 258.8 | 1.15 | ||||||||||||||||||
4. High Risk of Insolvency and High Risk | 64.8 | 0.30 | 251.7 | 43.71 | 316.5 | 1.41 | ||||||||||||||||||
5. Uncollectible | — | — | 178.4 | 30.98 | 178.4 | 0.80 | ||||||||||||||||||
6. Uncollectible Due to Technical Reasons | — | — | 1.2 | 0.20 | 1.2 | 0.01 | ||||||||||||||||||
Total | 21,796.3 | 100.00 | 575.9 | 100.00 | 22,372.2 | 100.00 | ||||||||||||||||||
As of December 31, 2009 | ||||||||||||||||||||||||
Amounts Not Yet Due | Amounts Past Due | Total Loans | ||||||||||||||||||||||
(in millions of Pesos, except percentages) | ||||||||||||||||||||||||
Amounts | % | Amounts | % | Amounts | % | |||||||||||||||||||
Loan Portfolio Classification | ||||||||||||||||||||||||
1. Normal and Normal Performance | 13,273.6 | 96.89 | — | — | 13,273.6 | 93.06 | ||||||||||||||||||
2. With Special Follow-up — Under observation and Low Risk | 310.6 | 2.27 | — | — | 310.6 | 2.18 | ||||||||||||||||||
3. With Problems and Medium Risk | 85.1 | 0.62 | 146.2 | 25.92 | 231.3 | 1.62 | ||||||||||||||||||
4. High Risk of Insolvency and High Risk | 30.5 | 0.22 | 308.1 | 54.62 | 338.6 | 2.37 | ||||||||||||||||||
5. Uncollectible | — | — | 109.0 | 19.32 | 109.0 | 0.76 | ||||||||||||||||||
6. Uncollectible Due to Technical Reasons | — | — | 0.8 | 0.14 | 0.8 | 0.01 | ||||||||||||||||||
Total | 13,699.8 | 100.00 | 564.1 | 100.00 | 14,263.9 | 100.00 | ||||||||||||||||||
As of December 31, 2008 | ||||||||||||||||||||||||
Amounts Not Yet Due | Amounts Past Due | Total Loans | ||||||||||||||||||||||
(in millions of Pesos, except percentages) | ||||||||||||||||||||||||
Amounts | % | Amounts | % | Amounts | % | |||||||||||||||||||
Loan Portfolio Classification | ||||||||||||||||||||||||
1. Normal and Normal Performance | 11,430.6 | 96.09 | — | — | 11,430.6 | 93.33 | ||||||||||||||||||
2. With Special Follow-up — Under observation and Low Risk | 388.8 | 3.27 | — | — | 388.8 | 3.18 | ||||||||||||||||||
3. With Problems and Medium Risk | 54.1 | 0.46 | 103.1 | 29.29 | 157.2 | 1.28 | ||||||||||||||||||
4. High Risk of Insolvency and High Risk | 21.8 | 0.18 | 185.4 | 52.67 | 207.2 | 1.69 | ||||||||||||||||||
5. Uncollectible | — | — | 62.0 | 17.61 | 62.0 | 0.51 | ||||||||||||||||||
6. Uncollectible Due to Technical Reasons | — | — | 1.5 | 0.43 | 1.5 | 0.01 | ||||||||||||||||||
Total | 11,895.3 | 100.00 | 352.0 | 100.00 | 12,247.3 | 100.00 | ||||||||||||||||||
As of December 31, 2007 | ||||||||||||||||||||||||
Amounts Not Yet Due | Amounts Past Due | Total Loans | ||||||||||||||||||||||
(in millions of Pesos, except percentages) | ||||||||||||||||||||||||
Amounts | % | Amounts | % | Amounts | % | |||||||||||||||||||
Loan Portfolio Classification | ||||||||||||||||||||||||
1. Normal and Normal Performance | 11,242.7 | 96.57 | — | — | 11,242.7 | 93.89 | ||||||||||||||||||
2. With Special Follow-up — Under observation and Low Risk | 356.2 | 3.06 | — | — | 356.2 | 2.97 | ||||||||||||||||||
3. With Problems and Medium Risk | 31.7 | 0.27 | 56.0 | 16.87 | 87.7 | 0.73 | ||||||||||||||||||
4. High Risk of Insolvency and High Risk | 12.1 | 0.10 | 221.0 | 66.57 | 233.1 | 1.95 | ||||||||||||||||||
5. Uncollectible | — | — | 48.1 | 14.49 | 48.1 | 0.40 | ||||||||||||||||||
6. Uncollectible Due to Technical Reasons | — | — | 6.9 | 2.07 | 6.9 | 0.06 | ||||||||||||||||||
Total | 11,642.7 | 100.00 | 332.0 | 100.00 | 11,974.7 | 100.00 | ||||||||||||||||||
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As of December 31, 2006 | ||||||||||||||||||||||||
Amounts Not Yet Due | Amounts Past Due | Total Loans | ||||||||||||||||||||||
(in millions of Pesos, except percentages) | ||||||||||||||||||||||||
Amounts | % | Amounts | % | Amounts | % | |||||||||||||||||||
Loan Portfolio Classification | ||||||||||||||||||||||||
1. Normal and Normal Performance | 10,149.9 | 96.24 | — | — | 10,149.9 | 93.94 | ||||||||||||||||||
2. With Special Follow-up — Under observation and Low Risk | 374.6 | 3.54 | — | — | 374.6 | 3.47 | ||||||||||||||||||
3. With Problems and Medium Risk | 12.2 | 0.12 | 30.0 | 11.69 | 42.2 | 0.39 | ||||||||||||||||||
4. High Risk of Insolvency and High Risk | 10.2 | 0.10 | 192.7 | 75.07 | 202.9 | 1.88 | ||||||||||||||||||
5. Uncollectible | — | — | 28.8 | 11.22 | 28.8 | 0.27 | ||||||||||||||||||
6. Uncollectible Due to Technical Reasons | — | — | 5.2 | 2.02 | 5.2 | 0.05 | ||||||||||||||||||
Total | 10,546.9 | 100.00 | 256.7 | 100.00 | 10,803.6 | 100.00 | ||||||||||||||||||
As of December 31, | ||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
(in millions of Pesos, except ratios) | ||||||||||||||||||||
Total Loans(1) | 22,372.2 | 14,263.9 | 12,247.3 | 11,974.7 | 10,803.6 | |||||||||||||||
Non-Accrual Loans(2) | ||||||||||||||||||||
With Preferred Guarantees | 27.9 | 33.7 | 42.0 | 43.5 | 40.2 | |||||||||||||||
With Other Guarantees | 37.4 | 97.9 | 10.3 | 5.0 | 5.1 | |||||||||||||||
Without Guarantees | 689.6 | 548.1 | 375.6 | 327.3 | 233.8 | |||||||||||||||
Total Non-Accrual Loans(2) | 754.9 | 679.7 | 427.9 | 375.8 | 279.1 | |||||||||||||||
Past Due Loan Portfolio | ||||||||||||||||||||
Non-Financial Public Sector | — | — | — | — | — | |||||||||||||||
Local Financial Sector | — | — | — | — | — | |||||||||||||||
Non-Financial Private Sector and Residents Abroad | ||||||||||||||||||||
Advances | 94.3 | 64.4 | 25.9 | 23.0 | 20.9 | |||||||||||||||
Promissory Notes | 53.1 | 90.5 | 24.5 | 134.5 | 135.2 | |||||||||||||||
Mortgage Loans | 16.0 | 16.8 | 24.9 | 30.0 | 28.4 | |||||||||||||||
Pledge Loans | 6.8 | 2.7 | 1.1 | 0.8 | 0.3 | |||||||||||||||
Personal Loans | 131.2 | 69.8 | 45.7 | 17.6 | 4.1 | |||||||||||||||
Credit-Card Loans | 237.8 | 285.9 | 215.0 | 115.4 | 62.7 | |||||||||||||||
Placements with Correspondent Banks | — | — | — | — | — | |||||||||||||||
Other Loans | 36.7 | 34.0 | 14.9 | 10.7 | 5.1 | |||||||||||||||
Total Past Due Loans | 575.9 | 564.1 | 352.0 | 332.0 | 256.7 | |||||||||||||||
Past Due Loans | ||||||||||||||||||||
With Preferred Guarantees | 19.1 | 19.8 | 26.0 | 30.8 | 28.9 | |||||||||||||||
With Other Guarantees | 35.1 | 66.9 | 9.0 | 4.2 | 4.3 | |||||||||||||||
Without Guarantees | 521.7 | 477.4 | 317.0 | 297.0 | 223.5 | |||||||||||||||
Total Past Due Loans | 575.9 | 564.1 | 352.0 | 332.0 | 256.7 | |||||||||||||||
Allowance for Loan Losses | 1,038.5 | 806.4 | 526.8 | 428.6 | 327.0 | |||||||||||||||
Ratios (%) | ||||||||||||||||||||
As a % of Total Loans: | ||||||||||||||||||||
- Total Past Due Loans | 2.57 | 3.95 | 2.87 | 2.77 | 2.38 | |||||||||||||||
- Past Due Loans with Preferred Guarantees | 0.09 | 0.14 | 0.21 | 0.26 | 0.27 | |||||||||||||||
- Past Due Loans with Other Guarantees | 0.16 | 0.47 | 0.07 | 0.03 | 0.04 | |||||||||||||||
- Past Due Unsecured Amounts | 2.32 | 3.34 | 2.59 | 2.48 | 2.07 | |||||||||||||||
- Non-Accrual Loans(2) | 3.37 | 4.77 | 3.49 | 3.14 | 2.58 | |||||||||||||||
- Non-Accrual Loans(2) (Excluding Interbank Loans) | 3.42 | 4.93 | 3.60 | 3.18 | 2.79 | |||||||||||||||
Non-Accrual Loans(2) as a Percentage of Loans to the Private Sector | 3.37 | 4.77 | 3.95 | 3.53 | 3.49 | |||||||||||||||
Allowance for Loan Losses as a % of: | ||||||||||||||||||||
- Total Loans | 4.64 | 5.65 | 4.30 | 3.58 | 3.03 | |||||||||||||||
- Total Loans Excluding Interbank Loans | 4.70 | 5.84 | 4.44 | 3.63 | 3.27 | |||||||||||||||
- Total Non-Accrual Loans(2) | 137.57 | 118.64 | 123.11 | 114.05 | 117.16 | |||||||||||||||
Non-Accrual Loans with Guarantees as a Percentage of Non-Accrual Loans(2) | 8.65 | 19.36 | 12.22 | 12.91 | 16.23 | |||||||||||||||
Non-Accrual Loans as a Percentage of Total Past Due Loans | 131.08 | 120.49 | 121.56 | 113.20 | 108.73 |
(1) | Before the allowance for loan losses. | |
(2) | Non-Accrual loans are defined as those loans in the categories of: (a) Consumer portfolio: “Medium Risk”, “High Risk”, “Uncollectible”, and “Uncollectible Due to Technical Reasons”, and (b) Commercial portfolio: “With problems”, “High Risk of Insolvency”, “Uncollectible”, and “Uncollectible Due to Technical Reasons”. |
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• | in the consumer portfolio: “Medium Risk”, “High Risk”, “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, | ||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
(in millions of Pesos) | ||||||||||||||||||||
Interest Income that Would Have Been Recorded on Non-Accrual Loans on which the Accrual of Interest was Discontinued | 56.0 | 52.0 | 35.4 | 35.9 | 23.7 | |||||||||||||||
Recoveries of Interest on Loans Classified as Non-Accrual on which the Accrual of Interest had been Discontinued(1) | 2.8 | 2.6 | 1.8 | 1.8 | 1.2 |
(1) | Recorded under “Miscellaneous Income”. |
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Fiscal Year Ended | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
(in millions of Pesos, except ratios) | ||||||||||||||||||||
Total Loans, Average(1) | 16,800.8 | 11,481.9 | 12,077.3 | 10,528.9 | 10,851.0 | |||||||||||||||
Allowance for Loan Losses at Beginning of Period(2) | 806.4 | 526.8 | 428.6 | 327.0 | 427.9 | |||||||||||||||
Changes in the Allowance for Loan Losses During the Period(2) | ||||||||||||||||||||
Provisions Charged to Income | 523.6 | 625.9 | 384.6 | 248.4 | 105.3 | |||||||||||||||
Prior Allowances Reversed | — | (5.4 | ) | (6.5 | ) | (21.5 | ) | (32.5 | ) | |||||||||||
Charge-Offs (A) | (487.3 | ) | (354.5 | ) | (289.2 | ) | (125.4 | ) | (200.8 | ) | ||||||||||
Inflation and Foreign Exchange Effect and Other Adjustments(3) | 195.8 | 13.6 | 9.3 | 0.1 | 27.1 | |||||||||||||||
Allowance for Loan Losses at End of Period | 1,038.5 | 806.4 | 526.8 | 428.6 | 327.0 | |||||||||||||||
Charge to the Income Statement during the Period | ||||||||||||||||||||
Provisions Charged to Income(2) | 523.6 | 625.9 | 384.6 | 248.4 | 105.3 | |||||||||||||||
Direct Charge-Offs, Net of Recoveries (B) | (88.6 | ) | (27.9 | ) | (68.4 | ) | (57.2 | ) | (46.4 | ) | ||||||||||
Recoveries of Provisions | — | (5.4 | ) | (6.5 | ) | (21.5 | ) | (32.5 | ) | |||||||||||
Net Charge (Benefit) to the Income Statement | 435.0 | 592.6 | 309.7 | 169.7 | 26.4 | |||||||||||||||
Ratios (%) | ||||||||||||||||||||
Charge-Offs Net of Recoveries (A+B) to Average Loans(4) | 2.37 | 2.84 | 1.83 | 0.65 | 1.42 | |||||||||||||||
Net Charge to the Income Statement to Average Loans(4) | 2.59 | 5.16 | 2.56 | 1.61 | 0.24 |
(1) | Before the allowance for loan losses. | |
(2) | Includes quotation differences for Galicia Uruguay and Cayman Branch. | |
(3) | Includes Ps.185.4 million corresponding to the allowance for loan losses of CFA as of the date of its acquisition.(4) Charge-offs plus direct charge-offs minus bad debts recovered. |
As of December 31, | ||||||||||||||||||||||||||||||||||||
2010 | 2009 | 2008 | ||||||||||||||||||||||||||||||||||
Loan | Loan | Loan | ||||||||||||||||||||||||||||||||||
% of | Category | % of | Category | % of | Category | |||||||||||||||||||||||||||||||
Amount | Loans | % | Amount | Loans | % | Amount | Loans | % | ||||||||||||||||||||||||||||
(in millions of Pesos, except percentages) | ||||||||||||||||||||||||||||||||||||
Non-Financial Public Sector | — | — | — | — | — | — | — | — | 10.77 | |||||||||||||||||||||||||||
Local Financial Sector | — | — | 0.36 | — | — | 0.18 | — | — | 1.21 | |||||||||||||||||||||||||||
Non-Financial Private Sector and Residents Abroad | ||||||||||||||||||||||||||||||||||||
Advances | 55.1 | 0.25 | 4.38 | 31.7 | 0.22 | 4.42 | 14.5 | 0.12 | 4.85 | |||||||||||||||||||||||||||
Promissory Notes | 43.3 | 0.19 | 20.27 | 80.3 | 0.56 | 22.47 | 34.9 | 0.28 | 17.28 | |||||||||||||||||||||||||||
Mortgage Loans | 10.6 | 0.05 | 4.25 | 11.8 | 0.08 | 6.76 | 21.9 | 0.18 | 8.38 | |||||||||||||||||||||||||||
Pledge Loans | 2.6 | — | 0.53 | 1.5 | — | 0.45 | 0.5 | — | 0.66 | |||||||||||||||||||||||||||
Personal Loans | 139.2 | 0.62 | 18.30 | 63.9 | 0.45 | 12.09 | 37.8 | 0.31 | 9.94 | |||||||||||||||||||||||||||
Credit-Card Loans | 166.8 | 0.75 | 40.77 | 168.3 | 1.18 | 39.90 | 111.4 | 0.91 | 35.75 | |||||||||||||||||||||||||||
Placements in Correspondent Banks | — | — | 0.96 | — | — | 3.09 | — | — | 2.73 | |||||||||||||||||||||||||||
Other | 16.9 | 0.08 | 10.17 | 16.0 | 0.11 | 10.60 | 7.4 | 0.06 | 8.43 | |||||||||||||||||||||||||||
Unallocated(1) | 604.0 | 2.69 | — | 432.9 | 3.04 | — | 298.4 | 2.44 | — | |||||||||||||||||||||||||||
Total | 1,038.5 | 4.64 | 100.00 | 806.4 | 5.65 | 100.00 | 526.8 | 4.30 | 100.00 | |||||||||||||||||||||||||||
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As of December 31, | ||||||||||||||||||||||||
2007 | 2006 | |||||||||||||||||||||||
Amount | % of Loans | Loan Category % | Amount | % of Loans | Loan Category % | |||||||||||||||||||
(in millions of Pesos, except percentages) | ||||||||||||||||||||||||
Non-Financial Public Sector | — | — | 10.11 | — | — | 24.90 | ||||||||||||||||||
Local Financial Sector | — | — | 0.92 | — | — | 2.88 | ||||||||||||||||||
Non-Financial Private Sector and Residents Abroad | ||||||||||||||||||||||||
Advances | 16.2 | 0.13 | 6.61 | 16.3 | 0.15 | 3.21 | ||||||||||||||||||
Promissory Notes | 119.8 | 1.00 | 24.31 | 151.1 | 1.40 | 19.84 | ||||||||||||||||||
Mortgage Loans | 26.5 | 0.22 | 7.89 | 25.0 | 0.23 | 6.37 | ||||||||||||||||||
Pledge Loans | 0.3 | — | 0.79 | 0.4 | — | 0.62 | ||||||||||||||||||
Personal Loans | 14.0 | 0.12 | 8.17 | 3.7 | 0.03 | 5.21 | ||||||||||||||||||
Credit-Card Loans | 56.0 | 0.47 | 30.31 | 28.5 | 0.26 | 22.76 | ||||||||||||||||||
Placements in Correspondent Banks | — | — | 1.32 | — | — | 5.63 | ||||||||||||||||||
Other | 7.9 | 0.07 | 9.57 | 1.0 | 0.01 | 8.58 | ||||||||||||||||||
Unallocated(1) | 187.9 | 1.57 | — | 101.0 | 0.95 | — | ||||||||||||||||||
Total | 428.6 | 3.58 | 100.00 | 327.0 | 3.03 | 100.00 | ||||||||||||||||||
(1) | The unallocated reserve consists of the allowances established on the portfolio classified in the “normal situation” category and includes additional reserves in excess of Argentine Central Bank minimum requirements. |
Fiscal Year Ended | ||||||||||||
December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(in millions of Pesos) | ||||||||||||
Charge-offs by Type | ||||||||||||
Advances | 18.5 | 21.3 | 17.3 | |||||||||
Promissory Notes | 82.5 | 20.3 | 92.3 | |||||||||
Mortgage Loans | 1.5 | 9.9 | 7.9 | |||||||||
Pledge Loans | 0.9 | 0.3 | 0.1 | |||||||||
Personal Loans | 106.8 | 60.8 | 27.5 | |||||||||
Credit-Card Loans | ||||||||||||
Banco Galicia | 52.4 | 54.9 | 31.6 | |||||||||
Regional Credit Card Companies | 217.9 | 178.6 | 107.7 | |||||||||
Other Loans | 6.8 | 8.4 | 4.8 | |||||||||
Total | 487.3 | 354.5 | 289.2 | |||||||||
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Fiscal Year Ended | ||||||||||||
December 31, | ||||||||||||
Country | 2010 | 2009 | 2008 | |||||||||
(in millions of Pesos) | ||||||||||||
United Kingdom | ||||||||||||
Demand Deposits | 1.4 | 5.5 | 6.0 | |||||||||
Forward Purchases of Boden 2012 Bonds | — | — | 829.0 | |||||||||
Forward Purchases of Discount Bonds in Pesos | — | — | 603.2 | |||||||||
Forward Purchases of Bonar 2015 Bonds | 544.8 | — | — | |||||||||
Other | 0.1 | — | — | |||||||||
Total | 546.3 | 5.5 | 1,438.2 | |||||||||
United States | ||||||||||||
Demand Deposits | 191.5 | 178.6 | 353.4 | |||||||||
Overnight Placements | 215.3 | 440.5 | 317.3 | |||||||||
Other | 44.4 | 21.6 | 0.7 | |||||||||
Total | 451.2 | 640.7 | 671.4 | |||||||||
Germany | ||||||||||||
Demand Deposits | 0.3 | 2.1 | 3.0 | |||||||||
Forward Purchases of Boden 2012 Bonds | — | 803.4 | 1,087.9 | |||||||||
Other | 1.3 | — | — | |||||||||
Total | 1.6 | 805.5 | 1,090.9 | |||||||||
• | Ps.546.3 million (1.5% of our total assets) with United Kingdom financial institutions, of which Ps.544.8 million represented two forward purchases of Bonar 2015 Bonds in connection with repurchase agreement transactions with the applicable financial institution, and Ps.1.4 million corresponded to demand deposits with such institution. |
• | Ps.451.2 million (1.3% of our total assets) representing liquid placements with United States financial institutions, of which Ps.191.5 million corresponded to demand deposits and Ps.215.3 million represented overnight placements. |
• | Ps.1.6 million with German financial institutions, of which Ps.0.3 million corresponded to demand deposits. |
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As of December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(in millions of Pesos) | ||||||||||||
Current Accounts and Other Demand Deposits | 5,565.7 | 3,719.2 | 3,105.4 | |||||||||
Savings Accounts | 6,362.0 | 4,994.7 | 4,035.0 | |||||||||
Time Deposits | 9,724.9 | 7,954.7 | 6,548.0 | |||||||||
Other Deposits (1) | 463.2 | 248.8 | 263.2 | |||||||||
Plus: Accrued Interest, Quotation Differences and CER Adjustment | 107.0 | 122.0 | 104.5 | |||||||||
Total Deposits | 22,222.8 | 17,039.4 | 14,056.1 | |||||||||
(1) | Includes among other, deposits originated by Decree No. 616/05, Reprogrammed Deposits under judicial proceedings and other demand deposits. |
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. | 5,565.7 | 30.8 | % | — | — | % | Ps. | 5,565.7 | 25.2 | % | |||||||||||||
Savings Accounts | 4,186.6 | 23.1 | Ps. | 2,175.4 | 54.2 | 6,362.0 | 28.8 | |||||||||||||||||
Time Deposits | 8,028.1 | 44.4 | 1,696.8 | 42.3 | 9,724.9 | 44.0 | ||||||||||||||||||
Maturing Within 30 Days | 1,584.3 | 8.8 | 407.6 | 10.2 | 1,991.9 | 9.0 | ||||||||||||||||||
Maturing After 31 Days but Within 59 Days | 2,982.4 | 16.5 | 391.4 | 9.8 | 3,373.8 | 15.3 | ||||||||||||||||||
Maturing After 60 Days but Within 89 Days | 1,243.6 | 6.9 | 213.0 | 5.3 | 1,456.6 | 6.6 | ||||||||||||||||||
Maturing After 90 Days but Within 179 Days | 1,420.6 | 7.9 | 428.4 | 10.7 | 1,849.0 | 8.4 | ||||||||||||||||||
Maturing After 180 Days but Within 365 Days | 490.8 | 2.7 | 207.8 | 5.2 | 698.6 | 3.2 | ||||||||||||||||||
Maturing After 365 Days | 306.4 | 1.6 | 48.6 | 1.1 | 355.0 | 1.5 | ||||||||||||||||||
Other Deposits | 319.9 | 1.8 | 143.3 | 3.6 | 463.2 | 2.1 | ||||||||||||||||||
Maturing Within 30 Days | 158.9 | 0.9 | 116.4 | 2.9 | 275.3 | 1.2 | ||||||||||||||||||
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 | 123.0 | 0.7 | — | — | 123.0 | 0.6 | ||||||||||||||||||
Maturing After 365 Days | 38.0 | 0.2 | 26.9 | 0.7 | 64.9 | 0.3 | ||||||||||||||||||
Total Deposits(1) | Ps. | 18,100.3 | 100.0 | % | 4,015.5 | 100.0 | % | Ps. | 22,115.8 | 100.0 | % | |||||||||||||
(1) | Only principal. Excludes the CER adjustment |
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Domestic Offices | Foreign Offices | |||||||
(in millions of Pesos) | ||||||||
Time Deposits | ||||||||
Within 30 Days | 1,206.3 | — | ||||||
After 31 Days but Within 59 Days | 2,467.7 | — | ||||||
After 60 Days but Within 89 Days | 972.8 | — | ||||||
After 90 Days but Within 179 Days | 1,233.8 | — | ||||||
After 180 Days but Within 365 Days | 708.2 | — | ||||||
After 365 Days | 333.4 | — | ||||||
Total Time Deposits | 6,922.2 | — | ||||||
Other Deposits | — | — | ||||||
Total Deposits(1) | 6,922.2 | — | ||||||
(1) | Only principal. |
Fiscal Year Ended | ||||||||||||
December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(in millions of Pesos, except percentages) | ||||||||||||
Net Income / (Loss) | 408.9 | 229.3 | 176.8 | |||||||||
Average Total Assets | 29,118.4 | 24,685.3 | 23,412.5 | |||||||||
Average Shareholders’ Equity | 2,195.0 | 1,961.2 | 1,745.0 | |||||||||
Shareholders’ Equity at End of the Period | 2,469.5 | 2,052.5 | 1,845.7 | |||||||||
Net Income as a Percentage of: | ||||||||||||
Average Total Assets | 1.76 | 1.12 | 0.91 | |||||||||
Average Shareholders’ Equity | 18.63 | 11.69 | 10.13 | |||||||||
Declared Cash Dividends | — | — | — | |||||||||
Dividend Payout Ratio | — | — | — | |||||||||
Average Shareholders’ Equity as a Percentage of Average Total Assets | 7.54 | 7.94 | 7.45 | |||||||||
Shareholders’ Equity at the End of the Period as a Percentage of Average Total Assets | 8.48 | 8.31 | 7.88 |
As of December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(in millions of Pesos) | ||||||||||||
Short-Term Borrowings | ||||||||||||
Argentine Central Bank | 0.7 | 2.1 | 1.7 | |||||||||
Other Banks and International Entities | ||||||||||||
Credit Lines from Domestic Banks | 155.4 | 86.9 | 43.6 | |||||||||
Credit Lines from Foreign Banks | 409.0 | 180.0 | 354.6 | |||||||||
Repurchases with Domestic Banks | 359.1 | 278.1 | 34.7 | |||||||||
Negotiable Obligations | 155.4 | 125.8 | 108.9 | |||||||||
Total | 1,079.6 | 672.9 | 543.5 | |||||||||
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As of December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(in millions of Pesos) | ||||||||||||
Banks and International Entities | ||||||||||||
Contractual Short-term Liabilities | ||||||||||||
Other Lines from Foreign Banks | 409.0 | 180.0 | 354.6 | |||||||||
Total Short-term Liabilities | 409.0 | 180.0 | 354.6 | |||||||||
Total Banks and International Entities | 409.0 | 180.0 | 354.6 | |||||||||
Domestic and Financial Institutions | ||||||||||||
Contractual Short-term Liabilities: | ||||||||||||
Other Lines from Credit from Domestic Banks | 155.4 | 86.9 | 43.6 | |||||||||
Total Short-term Liabilities | 155.4 | 86.9 | 43.6 | |||||||||
Total Domestic and Financial Institutions | 155.4 | 86.9 | 43.6 | |||||||||
Total | 564.4 | 266.9 | 398.2 | |||||||||
Annual Interest | As of December 31, | |||||||||||||||||||
(in millions of Pesos) | Maturity | Rate | 2010 | 2009 | 2008 | |||||||||||||||
Negotiable Obligations(*) | ||||||||||||||||||||
Tarjeta Naranja Class X | 2011 | Badlar + 275 basis points (“b.p.”) | 48.2 | — | — | |||||||||||||||
(Quarterly interest, principal payable at maturity) | ||||||||||||||||||||
Tarjeta Naranja Class XI | 2011 | Badlar + 295 b.p. | 40.9 | — | — | |||||||||||||||
(Quarterly interest, principal payable at maturity) | ||||||||||||||||||||
Tarjetas Cuyanas Class I | 2011 | Badlar + 300 b.p. | 28.8 | — | — | |||||||||||||||
(Quarterly interest, principal payable at maturity) | ||||||||||||||||||||
Tarjetas Cuyanas Class II | 2011 | 9.95 | % | 37.5 | — | — | ||||||||||||||
(Quarterly interest, principal payable at maturity) | ||||||||||||||||||||
Grupo Financiero Galicia Series I | 2010 | — | — | 125.8 | — | |||||||||||||||
(Discounted base, principal payable at maturity) | ||||||||||||||||||||
Tarjeta Naranja Class VIII | 2009 | 11.00 | % | — | — | 69.1 | ||||||||||||||
(Fixed interest, principal payable at maturity) | ||||||||||||||||||||
Tarjetas Cuyanas Series XIX | 2009 | 14.00 | % | — | — | 39.8 | ||||||||||||||
(Fixed interest, principal payable at maturity) | ||||||||||||||||||||
Total | 155.4 | 125.8 | 108.9 | |||||||||||||||||
(*) | Only principal. |
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• | 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 each period. |
As of December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(in millions of Pesos, except percentages) | ||||||||||||
Argentine Central Bank | ||||||||||||
Weighted-average Interest Rate at End of Period | — | — | — | |||||||||
Maximum Balance Recorded at the Monthly Closing Dates | Ps. | 1.9 | Ps. | 2.8 | Ps. | 1.7 | ||||||
Average Balances for Each Period | Ps. | 0.7 | Ps. | 1.3 | Ps. | 1.1 | ||||||
Weighted-average Interest Rate for the Period | — | — | — | |||||||||
Credit Lines from Domestic Banks | ||||||||||||
Weighted-average Interest Rate at End of Period | 16.1 | % | 10.9 | % | 24.7 | % | ||||||
Maximum Balance Recorded at the Monthly Closing Dates | Ps. | 343.0 | Ps. | 86.9 | Ps. | 261.5 | ||||||
Average Balances for Each Period | Ps. | 150.7 | Ps. | 45.6 | Ps. | 72.9 | ||||||
Weighted-average Interest Rate for the Period | 11.0 | % | 12.2 | % | 13.7 | % | ||||||
Credit Lines from Foreign Banks | ||||||||||||
Weighted-average Interest Rate at End of Period | 1.4 | % | 2.5 | % | 5.4 | % | ||||||
Maximum Balance Recorded at the Monthly Closing Dates | Ps. | 409.0 | Ps. | 257.2 | Ps. | 457.4 | ||||||
Average Balances for Each Period | Ps. | 266.8 | Ps. | 153.1 | Ps. | 373.6 | ||||||
Weighted-average Interest Rate for the Period | 1.9 | % | 5.1 | % | 4.5 | % | ||||||
Repurchases with Domestic Banks | ||||||||||||
Weighted-average Interest Rate at End of Period | 10.4 | % | 9.8 | % | 10.5 | % | ||||||
Maximum Balance Recorded at the Monthly Closing Dates | Ps. | 359.1 | Ps. | 278.1 | Ps. | 400.6 | ||||||
Average Balances for Each Period | Ps. | 39.3 | Ps. | 25.9 | Ps. | 132.8 | ||||||
Weighted-average Interest Rate for the Period | 9.8 | % | 9.6 | % | 10.5 | % | ||||||
Repurchases with Foreign Banks | ||||||||||||
Weighted-average Interest Rate at End of Period | — | — | — | |||||||||
Maximum Balance Recorded at the Monthly Closing Dates | — | — | — | |||||||||
Average Balances for Each Period | — | — | — | |||||||||
Weighted-average Interest Rate for the Period | — | — | — | |||||||||
Negotiable Obligations | ||||||||||||
Weighted-average Interest Rate at End of Period | 13.6 | % | — | % | 12.1 | % | ||||||
Maximum Balance Recorded at the Monthly Closing Dates | Ps. | 176.8 | Ps. | 247.7 | Ps. | 108.9 | ||||||
Average Balances for Each Period | Ps. | 69.3 | Ps. | 139.8 | Ps. | 49.8 | ||||||
Weighted-average Interest Rate for the Period | 9.0 | % | 5.5 | % | 9.9 | % |
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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 | — |
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As of December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(in millions of Pesos, except percentages) | ||||||||||||
Shareholders’ Equity | 2,595.7 | 2,126.5 | 1,954.7 | |||||||||
Argentine Central Bank Minimum Capital Requirements(1) | ||||||||||||
Allocated to Financial Assets | 1,618.4 | 1,064.1 | 1,014.1 | |||||||||
Allocated to Fixed Assets, Intangible and Unquoted Equity Investments | 165.2 | 168.7 | 169.5 | |||||||||
Allocated to Market Risk | 5.8 | 14.3 | 5.4 | |||||||||
Allocated to Interest-Rate Risk | 70.1 | 20.7 | 50.7 | |||||||||
Lending to the Non-Financial Public Sector | 147.6 | 343.7 | 324.8 | |||||||||
Total (A) | 2,007.1 | 1,611.5 | 1,564.5 | |||||||||
Computable Regulatory Capital Calculated Under Argentine Banking GAAP | ||||||||||||
Core Capital | 2,192.4 | 1,991.2 | 1,789.1 | |||||||||
Supplemental Capital | 1,333.3 | 1,070.2 | 994.7 | |||||||||
Deductions | ||||||||||||
Investments in Financial Entities | (2.0 | ) | (1.9 | ) | (1.7 | ) | ||||||
Organization Expenses | (394.6 | ) | (274.9 | ) | (191.3 | ) | ||||||
Goodwill Recorded from June 30, 1997 | (11.5 | ) | (17.5 | ) | (28.5 | ) | ||||||
Negative Goodwill CFA | 467.2 | — | — | |||||||||
Real Estate Properties for Banco Galicia’s Own Use and Miscellaneous, for which No Title Deed has been Made | (2.6 | ) | (8.4 | ) | (6.3 | ) | ||||||
Other | (8.2 | ) | (9.9 | ) | (17.0 | ) | ||||||
Total | 48.3 | (312.6 | ) | (244.8 | ) | |||||||
Additional Capital — Market Variation | 19.9 | 40.4 | 13.3 | |||||||||
Total (B) | 3,593.9 | 2,789.2 | 2,552.3 | |||||||||
Excess Capital | ||||||||||||
Excess Over Required Capital (B)-(A) | 1,586.8 | 1,177.7 | 987.8 | |||||||||
Excess Over Required Capital as a % of Required Capital | 79.06 | 73.08 | 63.14 | |||||||||
Total Capital Ratio | 15.19 | 14.35 | 13.92 | |||||||||
(1) | In accordance with Argentine Central Bank rules applicable at each date. |
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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.4 million, increasing to Ps.5 million for companies that offer pension-linked life insurance. For providers of retirement insurance that do not offer pension-linked annuities, the requirement is Ps.3 million (increasing to Ps.5 million for companies that offer pension-linked annuities). For companies that offer property insurance that includes damage coverage (excluding those related to vehicles) the requirement is Ps.1.5 million (increasing to Ps.8 million for companies that offer all P&C products). |
(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. Based on the total, the company must calculate 16%. Finally, it must 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 23%. 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 adjusted by the ratio of net technical reserves to gross technical reserves (at least 85%), plus 0.3% of at-risk capital adjusted by the ratio of retained at-risk capital to total at-risk capital (at least 50%). |
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(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 international trade financing and primary issuances of debt securities, if such securities’ public offering and listing on 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 kept in Argentina for a term of at least 365 days and will be subject to a 30% deposit requirement. |
(d) | Such deposit requirement will be held in a local financial institution as an unremunerated, no-transferable Dollar-denominated time 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 the applicable restrictions on foreign exchange transfers abroad. |
(e) | The 30% deposit is not required for, among other things, inflows of foreign currency resulting from: |
(i) | loans granted to residents by local financial institutions in foreign currency; |
(ii) | direct investment contributions in Argentina 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) | sales of ownership interests in local entities to direct investors, to the extent certain documentation; |
(iv) | to be applied to real estate acquisitions; |
(v) | an indebtedness with multilateral and bilateral credit agencies either directly or through their related agencies, in so far as such funds pertain to transactions conducted in full compliance with their purposes; however, when such inflows are related to the integration (or acquisition) of securities issued by financial trusts, it is necessary to comply with other requirements to avoid the 30% deposit. other foreign indebtedness of the local non-financial private sector, with an average life of no less than two years (including principal and interest), the proceeds of which will be applied to the acquisition of non-financial investments (as defined by the Argentine Central Bank); |
(vi) | other foreign indebtedness with no resident creditor of the financial sector and of the private, non-financial sector, to extent the proceeds from the foreign exchange settlement are simultaneously applied, net of taxes an expenses to (i) the acquisition of foreign currency to repay external debts service and/or (ii) the formation of long-term off-shore assets; |
(vii) | that will be utilized within 10 business days from their liquidation in the local foreign exchange market for purposes listed as “current transactions within the international accounts” (as defined by the Argentine Central Bank), among others, within such purposes are the payment by non-Argentine residents of certain local taxes; or |
(viii) | resulting from the sale of foreign assets of residents in order to subscribe to primary issuances of public debt issued by the Government; and |
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(f) | The proceeds of sales of foreign assets brought into the country by residents (“capital repatriation”) will be subject to the 30% deposit requirement noted in (c) above, which will apply to any amounts exceeding US$2.0 million per month if certain other operative requirements are met. |
(a) | With no limit in the case of: (i) proceeds from the principal amortization of government debt securities and guarantee loans in local currency; (ii) recoveries from local bankruptcies; (iii) proceeds from the sale of direct investments (as it is defined by the Argentina Central Bank) in the non-financial private sector in Argentina if they were made with foreign currency that entered the local foreign exchange market no less than 365 days before; and (iv) certain other specific cases. |
(b) | With a US$500,000 monthly limit in the case of the aggregate proceeds of the sale of portfolio investments made with foreign currency that entered the local foreign exchange market no less than 365 days before. |
(c) | With a US$5,000 monthly limit in the aggregated of the entities authorized to deal with foreign exchange, in cases not contemplated above, unless authorization from the Argentine Central Bank is obtained. |
• | the losses caused by the mandatory conversion into Pesos of certain liabilities at the Ps.1.4 per US$1.0 exchange rate, which exchange rate was 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. |
• | the currency mismatch left on financial institutions’ balance sheets after the compulsory pesification of certain of their assets and liabilities after the conversion of the Peso-denominated compensatory bond into a Dollar-denominated compensatory bond. This would be achieved by 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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• | B (“Bonos” or Bonds). On an annual basis, all financial institutions in Argentina were required to engage in certain debt issuing transactions in order to expose them to scrutiny and analysis by third parties with high standards. This requirement was eliminated by the Argentine Central Bank effective March 1, 2002. |
• | A (“Auditoría” or Audit). The Argentine Central Bank requires a set of external audit procedures that include: (a) the creation of a registry of auditors; (b) the implementation of strict accounting procedures to be complied with by external auditors; (c) the payment of a performance guarantee by those auditors to induce their compliance with the procedures, and (d) the creation of a department within the Argentine Central Bank liable for verifying that the procedures are followed. The purpose of this requirement is to assure accurate disclosure by the financial institutions to both the Superintendency and the public. |
• | S (“Supervisión” or Supervision). The Argentine Central Bank has the right to inspect financial institutions from time to time. |
• | I (“Información” or Information). Financial institutions are required to file on a monthly basis certain daily, weekly, monthly and quarterly statistical information. |
• | C (“Calificación” or Rating). The Argentine Central Bank established a system that required the periodic credit evaluation of financial entities by internationally recognized rating agencies, which was suspended by Communiqué “A” 3601 in May 2002. |
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• | Demand deposits: |
• | Peso-denominated current accounts and savings accounts: 19%. |
• | Dollar-denominated savings accounts: 20%. |
• | Time deposits, including those adjusted by CER (by remaining maturity): |
• | Peso-denominated: 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%. |
• | Dollar-denominated: up to 29 days: 20%; from 30 to 59 days: 15%; from 60 to 89 days: 10%; from 90 to 179 days: 5%; from 180 to 365 days: 2%; and more than 365 days: 0%. |
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• | Financial institutions rated 1, 2 or 3, subject to consolidation with the lender or the borrower: |
• | If the affiliate is a financial institution rated 1, the amount of total financial exposure can reach 100% of a bank’s RPC, and 50% for additional financial assistance. |
• | If the receiving affiliate financial institution is rated 2, the amount of total financial exposure can reach 20% and an additional 105% can be included. |
• | If the affiliate is a financial institution rated 3, the amount of total financial exposure can reach 10%, and additional financial assistance can reach 40%. |
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• | Financial institutions not subject to consolidation with the lender or the borrower: 10% |
• | Domestic companies with complementary services associated with brokerage of shares, financial brokerage in leasing and factoring operations, and temporary acquisition of shares in companies to facilitate their development in order to sell such shares afterwards. |
• | Controlling company rated 1: General assistance: 100% | ||
• | Controlling company rated 2: General assistance 10% / Additional assistance 90% |
• | Domestic companies with complementary services related to the issuance of credit cards, debit cards or other cards: |
• | Controlling company rated 1: General assistance: 100% / Additional assistance 50% | ||
• | Controlling company rated 2: General assistance 20% / Additional assistance 105% | ||
• | Controlling company rated 3: General assistance 10% / Additional assistance 40% |
• | Domestic companies with complementary services, not subject to consolidation with the lender or the borrower : 10% |
• | Foreign financial entities: |
• | Investment grade: 10% | ||
• | No Investment grade: Unsecured 5%; Secured 10% |
(a) | Reasonable market value: the debt instruments are registered at the corresponding market closing price or at present value; it is applicable to debt instruments included in the list of volatilities or present values published by the Argentine Central Bank. |
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(b) | Cost plus yield: the debt instruments not included in the list mentioned in a) above, are registered at incorporation value increased on an exponential basis according to their internal rate of return (“IRR”). The monthly accrual shall be recorded in the income statement or in a contra asset account according to the debt instrument: |
(i) | Debt instruments stemming from sovereign debt exchanges: as long as the market value is lower than the book value, 50% of the yield will be allocated to income and the remaining 50% will be recorded with a counterpart under contra asset accounts, which will be reversed by means of an allocation to income as long as their balance exceeds the positive difference between the market value and the book value of said account. |
(ii) | Argentine Central Bank instruments: the yield will be allocated to income. |
(iii) | Debt instruments not stemming from sovereign debt exchanges and not included in the list mentioned in a) above: registered at present value, discounting the cash flows at a discount rate equal to the yield of debt instruments with volatility published by the Argentine Central Bank with similar duration. As long as the present value is lower than the book value, the monthly accrual shall be recorded with a counterpart under contra asset account. |
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• | deposits of individuals or entities up to Ps.50,000 or the equivalent thereof in foreign currency, with only one person per deposit being able to use this preference. 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 related with international trade. |
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• | sets a 3% cap on the rate a credit card company can charge merchants for processing customer card holders’ transactions with such merchants, calculated as a percentage of the customers’ purchases. With respect to debit cards, the cap is set at 1.5% and the amounts relating to the customers’ purchases should be processed in a maximum of 3 business days; |
• | establishes that credit card companies must provide the Argentine Central Bank with the information on their loan portfolio that such entity requires; and |
• | sets a cap on the interest rate a credit card company can charge a card holder, which cannot exceed by more than 25% the average interest rate charged by the issuer on personal loans and, for non-bank issuers, it cannot exceed by more than 25% the financial system’s average interest rate on personal loans (published by the Argentine Central Bank). |
i) | Any person who converts, transfers, administers, sells, encumbers or uses money or any other asset derived from any crime in which he was not involved, with the possible result of giving those original or secondary assets the appearance of having a legal origin and as long as their value is greater than Ps.50,000, whether through a single act or through a series of related events, will be imprisoned for two to ten years and will be fined an amount that will be between two and ten times the amount of the transaction. |
ii) | Any person that was not involved in a crime committed by another person but that (a) helps a person to elude or escape from an investigation by the relevant authority; (b) hides, alters or destroys any trail, evidence or object related to the crime or helps the perpetrator of the crime or any participant to hide them, alter them or make them disappear; (c) acquires, receives or hides money or objects arising from a crime; (d) does not report a crime or does not identify a perpetrator of or participant in a crime that is known to him when obligated to do so in order to promote the criminal prosecution of a crime of such nature; or (e) secures or helps the perpetrator of or participant in a crime to secure the product or profit of a crime, will be imprisoned for six months to three years. |
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Item 4A. | Unresolved Staff Comments |
Item 5. | Operating and Financial Review and Prospects |
Item 5.A. | Operating Results |
• | Expand the volume of our business with the private sector; |
• | Progressively strengthen our balance sheet by consistently reducing Banco Galicia’s high exposure to the public sector, as well as those liabilities incurred by Banco Galicia as a consequence of the 2001-2002 crisis, and |
• | Capitalize Banco Galicia. |
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For the 12-month period ended December 31, | ||||||||||||
(in percentages) | 2010 | 2009 | 2008 | |||||||||
Price Indices(1) (2) | ||||||||||||
Wholesale Price Index (“WPI”) | 14.56 | 10.27 | 8.82 | |||||||||
Consumer Price Index (“CPI”) | 10.92 | 7.69 | 7.24 | |||||||||
Adjustment Indices | ||||||||||||
CER | 11.04 | 6.95 | 7.97 |
(1) | Data for December of each year as compared to December of the immediately preceding year. Source: INDEC/the Argentine Central Bank. | |
(2) | The accuracy of the measurements of the INDEC is in doubt, and the actual consumer price index and wholesale price index could be substantially higher than those indicated by the INDEC. For example, according to private sector estimates, the consumer price index increased by 19.4% (rather than 7.2%) in 2008, 16.3% (rather than 7.7%) in 2009 and 22.9% (rather than 10.9%) in 2010. |
As of December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(In millions of Pesos) | ||||||||||||
Assets | ||||||||||||
In Pesos, Unadjusted | 28,319.4 | 19,791.0 | 15,165.1 | |||||||||
In Pesos, Adjusted by the CER | 610.8 | 926.3 | 2,439.2 | |||||||||
In Foreign Currency(1) | 6,777.9 | 6,885.1 | 7,131.5 | |||||||||
Total Assets | 35,708.1 | 27,602.4 | 24,735.8 | |||||||||
Liabilities and Shareholders’ Equity | ||||||||||||
In Pesos, Unadjusted, Including Shareholders’ Equity | 28,059.5 | 20,513.1 | 17,262.1 | |||||||||
In Pesos, Adjusted by the CER | 13.6 | 14.9 | 50.3 | |||||||||
In Foreign Currency(1) | 7,635.0 | 7,074.3 | 7,423.4 | |||||||||
Total Liabilities and Shareholders’ Equity | 35,708.1 | 27,602.3 | 24,735.8 | |||||||||
(1) | If adjusted to reflect forward sales and purchases of foreign exchange made byBanco Galicia and recorded off-balance sheet, assets amounted to Ps.10,186.3 million and liabilities to Ps.10,210.2 million. |
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Fiscal Year Ended | Change | |||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
2010 | 2009 | 2008 | 2010/2009 | 2009/2008 | ||||||||||||||||
(in millions of Pesos, except percentages) | ||||||||||||||||||||
Consolidated Income Statement | ||||||||||||||||||||
Financial Income | 3,616.1 | 3,005.6 | 2,559.3 | 610.5 | 446.3 | |||||||||||||||
Financial Expenses | 1,412.7 | 1,460.5 | 1,421.0 | (47.8 | ) | 39.5 | ||||||||||||||
Net financial Income | 2,203.4 | 1,545.1 | 1,138.3 | 658.3 | 406.8 | |||||||||||||||
Provision for Losses on Loans and Other Receivables | 551.5 | 639.5 | 395.4 | (88.0 | ) | 244.1 | ||||||||||||||
Net income from Services | 1,781.9 | 1,310.9 | 1,187.9 | 471.0 | 123.0 | |||||||||||||||
Administrative Expenses | 2,845.3 | 2,029.1 | 1,781.1 | 816.2 | 248.0 | |||||||||||||||
Minority Interest | (104.3 | ) | (46.5 | ) | (35.8 | ) | (57.8 | ) | (10.7 | ) | ||||||||||
Income / (Loss) from Equity Investments | 62.1 | 11.3 | 56.8 | 50.8 | (45.5 | ) | ||||||||||||||
Miscellaneous Income / (Loss), Net | 120.8 | 233.1 | 80.1 | (112.3 | ) | 153.0 | ||||||||||||||
Income Tax | (258.2 | ) | (156.0 | ) | (74.0 | ) | (102.2 | ) | (82.0 | ) | ||||||||||
Net income / (Loss) | 408.9 | 229.3 | 176.8 | 179.6 | 52.5 | |||||||||||||||
Return on Average Assets(1) | 1.8 | 1.1 | 0.9 | 0.6 | 0.2 | |||||||||||||||
Return on Average Shareholders’ Equity | 18.6 | 11.7 | 10.1 | 6.9 | 1.6 |
(1) | For the calculation of the return on average assets, profits or losses corresponding to minority interests are excluded from net income. |
• | a Ps.610.5 million increase in financial income, from Ps.3,005.6 million to Ps.3,616.1 million, |
• | a Ps.471.0 million increase in net income from services, from Ps.1,310.9 million to Ps.1,781.9 million, |
• | a Ps.88.0 million decrease in provisions for loan losses, from Ps.639.5 million to Ps.551.5 million, |
• | a Ps.47.8 million decrease in financial expenses, from Ps.1,460.5 million to Ps.1,412.7 million, |
• | an increase of Ps.50.8 million in income from equity investments, from Ps.11.3 million to Ps.62.1 million. |
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• | a Ps.816.2 million increase in administrative expenses, from Ps.2,029.1 million to Ps.2,845.3 million, |
• | a Ps.112.3 million decrease in miscellaneous net loss, from Ps.233.1 million to Ps.120.8 million, and |
• | an increase in income tax of Ps.102.2 million, from Ps.156.0 million to Ps.258.2 million. |
• | a Ps.446.3 million increase in financial income, from Ps.2,559.3 million to Ps.3,005.6 million, |
• | a Ps.153.0 million increase in miscellaneous net income, from Ps.80.1 million to Ps.233.1 million, and |
• | a Ps.123.0 million increase in net income from services, from Ps.1,187.9 million to Ps.1,310.9 million. |
• | a Ps.244.1 million increase in provisions for loan losses from Ps.395.4 million to Ps.639.5 million, |
• | a Ps.248.0 million increase in administrative expenses, from Ps.1,781.1 million to Ps.2,029.1 million, |
• | an increase in income tax of Ps.82.0 million, from Ps.74.0 million to Ps.156.0 million, and |
• | a decrease of Ps.45.5 million in income from equity investments, from Ps.56.8 million to Ps.11.3 million. |
Fiscal Year Ended | ||||||||||||
December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(in millions of Pesos) | ||||||||||||
Income on Loans and Other Receivables Resulting from Financial Brokerage and Premiums Earned on Reverse Repurchases | 3,061.3 | 2,207.7 | 1,930.3 | |||||||||
Income from Government and Corporate Securities, Net | 409.2 | 559.1 | 238.1 | |||||||||
CER Adjustment | 5.3 | 24.4 | 123.9 | |||||||||
Other(1) | 140.3 | 214.4 | 267.0 | |||||||||
Total | 3,616.1 | 3,005.6 | 2,559.3 | |||||||||
(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. |
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As of December 31, | ||||||||||||||||||||||||
2010 | 2009 | 2008 | ||||||||||||||||||||||
Average | Average | Average | ||||||||||||||||||||||
Balance | Rate | Balance | Rate | Balance | Rate | |||||||||||||||||||
(in millions of Pesos, except rates) | ||||||||||||||||||||||||
Interest-Earning Assets | 21,983.3 | 16.35 | 18,378.0 | 15.71 | 19,892.5 | 12.14 | ||||||||||||||||||
Government Securities | 3,344.1 | 11.56 | 4,686.5 | 11.84 | 3,642.2 | 4.08 | ||||||||||||||||||
Loans | 16,800.8 | 18.56 | 11,463.6 | 19.34 | 12,077.3 | 17.01 | ||||||||||||||||||
Other | 1,838.4 | 4.85 | 2,227.9 | 5.17 | 4,173.0 | 5.09 | ||||||||||||||||||
Interest-Bearing Liabilities | 16,662.5 | 6.56 | 15,923.4 | 7.63 | 15,694.5 | 8.14 | ||||||||||||||||||
Current Accounts | 508.1 | 1.08 | 1,287.3 | 1.00 | 948.1 | 2.28 | ||||||||||||||||||
Savings Accounts | 4,016.2 | 0.19 | 3,014.5 | 0.19 | 2,587.7 | 0.18 | ||||||||||||||||||
Time Deposits(1) | 8,554.3 | 8.81 | 7,391.9 | 11.67 | 6,769.4 | 11.34 | ||||||||||||||||||
Argentine Central Bank | 0.7 | — | 0.6 | — | 0.4 | — | ||||||||||||||||||
Debt Securities | 2,276.1 | 10.04 | 2,729.9 | 8.22 | 2,799.8 | 10.00 | ||||||||||||||||||
Other Interest-bearing Liabilities | 1,307.1 | 7.50 | 1,499.2 | 7.34 | 2,589.1 | 7.86 | ||||||||||||||||||
Spread and Net Yield | ||||||||||||||||||||||||
Interest Spread, Nominal Basis(2) | 9.79 | 8.08 | 4.00 | |||||||||||||||||||||
Net Yield on Interest-earning Assets(3) | 11.38 | 9.10 | 5.72 | |||||||||||||||||||||
Financial Margin(4) | 10.02 | 8.41 | 5.72 |
(1) | Includes restructured deposits certificates and restructured deposits with amparo claims. | |
(2) | 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. | |
(3) | Net interest earned divided by average interest-earning assets. Interest rates include the CER adjustment. | |
(4) | Represents net financial income, divided by average interest-earning assets. |
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Fiscal Year Ended | ||||||||||||
December 31, | ||||||||||||
(in percentages) | 2010 | 2009 | 2008 | |||||||||
Total Deposits | 5.94 | 6.29 | 5.93 | |||||||||
Private-Sector Deposits | ||||||||||||
Total | 8.33 | 7.81 | 7.61 | |||||||||
Deposits in Current and Savings Accounts and Non-Restructured Time Deposits | 8.59 | 8.07 | 7.87 | |||||||||
Total Loans | 7.95 | 6.91 | 6.16 | |||||||||
Private-Sector Loans | 8.95 | 7.67 | 6.12 | |||||||||
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Fiscal Year Ended | ||||||||||||
December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(in millions of Pesos) | ||||||||||||
Interest on Deposits | 765.5 | 877.9 | 786.1 | |||||||||
Negotiable Obligations | 230.8 | 284.5 | 288.8 | |||||||||
Contributions and Taxes | 268.6 | 161.7 | 135.9 | |||||||||
CER Adjustment | 0.1 | 0.3 | 9.2 | |||||||||
Other(1) | 147.6 | 136.1 | 201.0 | |||||||||
Total | 1,412.6 | 1,460.5 | 1,421.0 | |||||||||
(1) | Includes accrued interest on liabilities resulting from financial brokerage with banks and international entities and premiums payable on repurchases. |
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Fiscal Year Ended | % Change | |||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
2010 | 2009 | 2008 | 2010/2009 | 2009/2008 | ||||||||||||||||
(in millions of Pesos) | (in percentages) | |||||||||||||||||||
Income From | ||||||||||||||||||||
Credit Cards | 1,576.6 | 1,148.2 | 952.6 | 37.3 | 20.5 | |||||||||||||||
CFA | 32.9 | — | — | — | — | |||||||||||||||
Deposits Accounts | 325.5 | 252.9 | 201.7 | 28.7 | 25.4 | |||||||||||||||
Cash Management | 24.7 | 18.6 | 17.8 | 32.8 | 4.5 | |||||||||||||||
Safe Deposit Box | 51.2 | 30.2 | 18.0 | 69.5 | 67.8 | |||||||||||||||
Services for Shipments | 18.1 | 14.9 | 11.1 | 21.5 | 34.2 | |||||||||||||||
Product Package | 23.5 | 14.3 | 11.4 | 64.3 | 25.4 | |||||||||||||||
Financial Fees | 56.7 | 50.1 | 42.0 | 13.2 | 19.3 | |||||||||||||||
Credit-related Fees | 150.7 | 96.5 | 95.7 | 56.2 | 0.8 | |||||||||||||||
Check Collection | 44.9 | 33.0 | 33.9 | 36.1 | (2.7 | ) | ||||||||||||||
Collection Services (Taxes and Utility Bills) | 36.9 | 25.7 | 19.5 | 43.6 | 31.8 | |||||||||||||||
International Trade | 67.2 | 51.8 | 46.1 | 29.7 | 12.4 | |||||||||||||||
Other (1) | 106.0 | 90.6 | 122.3 | 17.0 | (25.9 | ) | ||||||||||||||
Total Income | 2,514.9 | 1,826.8 | 1,572.1 | 37.7 | 16.2 | |||||||||||||||
Total Expenses | 733.0 | 515.9 | 384.2 | 42.1 | 34.3 | |||||||||||||||
Net Income from Services | 1,781.9 | 1,310.9 | 1,187.9 | 35.9 | 10.4 | |||||||||||||||
(1) | Includes, among others, fees from investment banking activities, asset management, assets under custody and guarantees granted. |
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% Change | ||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
Credit Cards | 2010 | 2009 | 2008 | 2010/2009 | 2009/2008 | |||||||||||||||
(number of credit cards, except otherwise noted) | (percentages) | |||||||||||||||||||
Visa | 1,102,730 | 982,866 | 936,267 | 12.20 | 4.98 | |||||||||||||||
“Gold” | 292,400 | 262,388 | 203,464 | 11.44 | 28.96 | |||||||||||||||
International | 504,687 | 471,766 | 470,709 | 6.98 | 0.22 | |||||||||||||||
Domestic | 164,120 | 189,626 | 227,785 | (13.45 | ) | (16.75 | ) | |||||||||||||
“Business” | 36,878 | 28,430 | 20,976 | 29.72 | 35.54 | |||||||||||||||
“Corporate” | 1,718 | 1,130 | 960 | 52.04 | 17.71 | |||||||||||||||
“Platinum” | 102,927 | 29,526 | 12,373 | 248.60 | 138.63 | |||||||||||||||
Galicia Rural | 8,716 | 7,157 | 6,215 | 21.78 | 15.16 | |||||||||||||||
American Express | 392,247 | 308,942 | 241,145 | 26.96 | 28.11 | |||||||||||||||
“Gold” | 168,899 | 143,899 | 99,970 | 17.37 | 43.94 | |||||||||||||||
International | 153,526 | 145,111 | 133,644 | 5.80 | 8.58 | |||||||||||||||
Platinum | 69,822 | 19,932 | 7,531 | 250.30 | 164.67 | |||||||||||||||
MasterCard | 72,738 | 57,276 | 54,916 | 27.00 | 4.30 | |||||||||||||||
“Gold” | 24,613 | 19,452 | 16,790 | 26.53 | 15.85 | |||||||||||||||
MasterCard | 47,186 | 36,670 | 36,531 | 28.68 | 0.38 | |||||||||||||||
Argencard | 939 | 1,154 | 1,595 | (18.63 | ) | (27.65 | ) | |||||||||||||
Regional Credit Card Companies | 5,365,638 | 4,618,199 | 4,742,816 | 16.18 | (2.63 | ) | ||||||||||||||
Local Brands | 3,324,826 | 2,944,544 | 2,864,709 | 12.91 | 2.79 | |||||||||||||||
Visa | 1,699,240 | 1,424,453 | 1,628,185 | 19.29 | (12.51 | ) | ||||||||||||||
MasterCard | 317,759 | 221,575 | 217,090 | 43.41 | 2.07 | |||||||||||||||
American Express | 23,813 | 27,627 | 32,832 | (13.81 | ) | (15.85 | ) | |||||||||||||
CFA | 53,369 | — | — | — | — | |||||||||||||||
Visa | 38,834 | — | — | — | — | |||||||||||||||
MasterCard | 14,535 | — | — | — | — | |||||||||||||||
Total | 6,995,438 | 5,974,440 | 5,981,359 | 17.09 | (0.12 | ) | ||||||||||||||
Total Amount of Purchases(in millions of Pesos) | Ps. | 26,880 | Ps. | 18,142 | Ps. | 14,949 | 48.16 | 21.36 | ||||||||||||
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Fiscal Year Ended | % Change | |||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
2010 | 2009 | 2008 | 2010/2009 | 2009/2008 | ||||||||||||||||
(in millions of Pesos) | (in percentages) | |||||||||||||||||||
Salaries and Social Security Contributions | 1,408.0 | 975.8 | 805.2 | 44.3 | 21.2 | |||||||||||||||
Property-related Expenses | 162.5 | 136.1 | 113.2 | 19.4 | 20.2 | |||||||||||||||
Personnel Services | 89.3 | 76.8 | 90.8 | 16.3 | (15.4 | ) | ||||||||||||||
Advertising and Publicity | 189.6 | 127.8 | 146.5 | 48.4 | (12.8 | ) | ||||||||||||||
Amount Accrued in Relation to Directors’ and Syndics’ Compensation | 11.4 | 8.6 | 8.2 | 32.6 | 4.9 | |||||||||||||||
Electricity and Communications | 106.4 | 85.9 | 72.7 | 23.9 | 18.2 | |||||||||||||||
Taxes | 190.7 | 139.3 | 104.0 | 36.9 | 33.9 | |||||||||||||||
Other | 687.4 | 478.8 | 440.5 | 43.6 | 8.7 | |||||||||||||||
Total | 2,845.3 | 2,029.1 | 1,781.1 | 40.2 | 13.9 | |||||||||||||||
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December 31, | December 31, | December 31, | ||||||||||
2010 | 2009 | 2008 | ||||||||||
(in millions of Pesos) | ||||||||||||
Argentine Banking GAAP | 870.2 | (1) | 815.9 | 526.8 | ||||||||
U.S. GAAP | ||||||||||||
ASC 310 | ||||||||||||
Allowance for Loan Losses | 61.6 | 64.8 | 93.6 | |||||||||
ASC 450 | 743.1 | 687.5 | 481.7 | |||||||||
U.S. GAAP Shareholders’ Equity Adjustment (2) | 65.5 | 63.6 | (48.5 | ) | ||||||||
(1) | The balance does not include Ps.185,381 of CFA allowances for loan losses as of the acquisition date. | |
(2) | Including qualitative and quantitative adjustments. |
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• | “With Problems” |
• | “High Risk of Insolvency” |
• | “Uncollectible” |
December 31, 2010 | December 31, 2009 | December 31, 2008 | ||||||||||
(in millions of Pesos) | ||||||||||||
Loan Loss Reserve Under U.S. GAAP — ASC 310 Analysis | 61.6 | 64.8 | 93.6 |
December 31, | December 31, | December 31, | ||||||||||
2010 | 2009 | 2008 | ||||||||||
(in millions of Pesos) | ||||||||||||
Loan Loss Reserve Under U.S. GAAP — ASC 450 Analysis | 743.1 | 687.5 | 481.7 |
• | 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. |
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December 31, 2010 | December 31, 2009 | December 31, 2008 | ||||||||||
Loan Loss Reserves as a Percentage of Non-accrual Loans | 163.37 | % | 108.37 | % | 141.34 | % | ||||||
Loan Loss Reserves as a Percentage of Total Amounts Past Due | 116.04 | % | 130.58 | % | 171.81 | % | ||||||
Loan Loss Reserves as a Percentage of Past-due Unsecured Amounts | 189.79 | % | 154.29 | % | 190.78 | % |
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December 31, 2010 | December 31, 2009 | |||||||||||||||||||||||||||||||||||||||
Book | Book | |||||||||||||||||||||||||||||||||||||||
Value | Value | |||||||||||||||||||||||||||||||||||||||
Amortized | Argentine | Shareholders’ | Amortized | Argentine | Shareholders’ | |||||||||||||||||||||||||||||||||||
Cost US | Banking | Market | Unrealized | Equity | Cost US | Banking | Market | Unrealized | Equity | |||||||||||||||||||||||||||||||
(In millions of Pesos) | GAAP | GAAP | Value | (Loss)/Gain | Adjustment | GAAP | GAAP | Value | (Loss)/Gain | Adjustment | ||||||||||||||||||||||||||||||
Boden 2012 Bonds | — | — | — | — | — | 901.0 | 1,906.9 | 1,731.1 | 830.1 | (175.8 | ) | |||||||||||||||||||||||||||||
Discount Bonds | — | — | — | — | — | 169.9 | 622.0 | 337.9 | 132.2 | (284.1 | ) | |||||||||||||||||||||||||||||
Bonar 2015 Bonds | 527.9 | 642.1 | 726.6 | 198.7 | 84.5 | 591.5 | 359.0 | 676.6 | 85.0 | (317.6 | ) |
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As of December 31, | ||||||||||||||||||||||||
2010 | 2009 | |||||||||||||||||||||||
(In millions of Pesos) | ||||||||||||||||||||||||
Book Value | Fair Value – | U.S. GAAP | Book Value | Fair Value – | U.S. GAAP | |||||||||||||||||||
Argentine | Book value | Shareholders’ | Argentine | Book value | Shareholders’ | |||||||||||||||||||
Banking | under U.S. | Equity | Banking | under U.S. | Equity | |||||||||||||||||||
GAAP | GAAP | Adjustment | GAAP | GAAP | Adjustment | |||||||||||||||||||
Galtrust I(1) | 521.9 | 521.9 | — | 584.1 | 211.6 | (372.5 | ) | |||||||||||||||||
Financial Trust Galicia(2) | 96.3 | 36.2 | (60.1 | ) | 80.0 | 28.7 | (51.3 | ) | ||||||||||||||||
Others | 13.5 | 19.5 | 6.0 | 56.5 | 51.0 | (5.5 | ) | |||||||||||||||||
Total | 631.7 | 577.6 | (54.1 | ) | 720.6 | 291.3 | (429.3 | ) | ||||||||||||||||
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• | Insufficient equity investment at risk |
• | Equity lacks decision-making rights |
• | Equity with non-substantive voting rights |
• | Lacking the obligation to absorb an entity’s expected losses |
• | Lacking the right to receive an entity’s expected residual returns |
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As of December 31, | ||||||||
(In millions of Pesos) | 2010 | 2009 | ||||||
Cash and Due from Banks | Ps. | 11.6 | Ps. | 15.2 | ||||
Government Securities | 1,009.2 | — | ||||||
Loans (Net of Allowances) | — | 463.8 | ||||||
Other Assets | 1.1 | 8.8 | ||||||
Total Assets | Ps. | 1,021.9 | Ps. | 487.8 | ||||
Debt Securities | Ps. | 414.5 | Ps. | 279.6 | ||||
Certificates of Participation | 604.7 | 193.3 | ||||||
Other Liabilities | 2.7 | 14.9 | ||||||
Total Liabilities | Ps. | 1,021.9 | Ps. | 487.8 | ||||
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• | If the consideration transferred exceeds the fair value of assets acquired and liabilities assumed, the acquirer shall recognize goodwill as of the acquisition date, or, |
• | If the consideration transferred is lower than the fair value of assets acquired and liabilities assumed, the acquirer shall recognize the resulting gain in earnings on the acquisition date. |
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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 2010 | 408.9 | 2,293.6 | 2,469.5 | 2,997.1 | ||||||||||||
Fiscal Year 2009 | 229.3 | 770.2 | 2,052.5 | 1,236.3 | ||||||||||||
Fiscal Year 2008 | 176.8 | (1,171.0 | ) | 1,845.7 | (754.4 | ) |
• | Bonar 2015 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 increased, with a favorable influence on our financial position. |
• | The difference between the consideration transferred for the acquisition of Compañía Financiera Argentna S.A. and Cobranzas y Servicicios S.A. and the fair value of the assets acquired and liabilities assumed was recognized as a gain in earnings on the acquisition date. Instead, under Argentine Banking GAAP, such difference was recorded under Liabilities-Provisions. |
Pursuant to the Argentine Central Bank regulations, the negative goodwill has to be charged to Income with regard to the causes that have originated it, not to exceed a 60-month straight-line method amortization. |
• | The recognition of the Deffered Income Taxes under U.S. GAAP due to the fact that we consider that it is more likely than not that it will recover the net operating tax loss carryforward, the temporary differences and the presumed minimum income tax, with future taxable income. In addition, according to the taxable income projections, we estimated that the presumed minimum income tax will be utilized during the following years 2011 and 2012. Therefore, no valuation allowance was provided against presumed minimum income tax. As of December 31, 2009 we have recorded a valuation allowance against the presumed minimum income tax. |
• | The sale of Boden 2012 Bonds and Discount Bonds generated a significant income for U.S. GAAP due to as of December 31, 2009 an unrealized gain was recorded under Other Comprehensive Income. |
• | The difference between the consideration transferred for the acquisition of Compañía Financiera Argentina and Cobranzas y Servicios S.A. and the fair value of the assets acquired and liabilities assumed was recognized as a gain in earnings on the acquisition date. Instead, under Argentine Banking GAAP, the negative goodwill is charged to Income on a straight-line basis during 60 months. |
• | The recognition of the Deffered Income Taxes under U.S. GAAP due to the fact that we consider that it is more likely than not that it will recover the net operating tax loss carryforward, the temporary differences and the presumed minimum income tax, with future taxable income. In addition, according to the taxable income projections, we estimated that the presumed minimum income tax will be utilized during the following years 2011 and 2012. Therefore, no valuation allowance was provided against presumed minimum income tax. As of December 31, 2009 we have recorded a valuation allowance against the presumed minimum income tax. |
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• | Banking: our banking business segment represents Banco Galicia consolidated line by line with Galicia Uruguay, Galicia Cayman and its subsidiaries and the results of other small banking-related subsidiaries. |
• | Regional Credit Cards: our regional credit cards business segment represents the accounts of Tarjetas Regionales S.A. consolidated with its subsidiaries. |
• | CFA Personal Loans: the CFA Group’s business segment primarily extends unsecured personal loans to low and middle-income segments of the Argentine population, with Cobranzas & Servicios S.A. and Procesadora Regional S.A. primarily providing processing services to CFA. |
• | Insurance: our insurance business segment represents the accounts of Sudamericana and its subsidiaries. |
• | Other Grupo Businesses: this segment includes the results of Net Investment, Galicia Warrants, GV Mandataria and Galval. |
As of December 31, | ||||||||||||
In millions of Pesos, except percentages | 2010 | 2009 | 2008 | |||||||||
Net Financial Income | 1,428.0 | 1,144.2 | 847.3 | |||||||||
Net Income from Services | 880.6 | 727.9 | 655.0 | |||||||||
Net Operating Revenue | 2,308.6 | 1,872.1 | 1,502.3 | |||||||||
Provisions for Loan Losses | 307.2 | 388.7 | 214.9 | |||||||||
Administrative Expenses | 1,693.1 | 1,321.8 | 1,166.5 | |||||||||
Net Operating Income | 308.3 | 161.6 | 120.9 | |||||||||
Income from Equity Investments | ||||||||||||
Tarjetas Regionales SA | 270.5 | 133.0 | 76.4 | |||||||||
Compañía Financiera Argentina S.A.(*) | 133.3 | — | — | |||||||||
Sudamericana | 4.0 | 3.4 | 2.9 | |||||||||
Others | 13.7 | 13.1 | 58.1 | |||||||||
Income from Equity Investments | 421.5 | 149.5 | 137.4 | |||||||||
Other Income (Loss) | (260.6 | ) | (139.3 | ) | (63.0 | ) | ||||||
Net Income | 469.1 | 171.8 | 195.3 | |||||||||
Net Income as a % of Grupo Financiero Galicia’s Net Income | 115 | % | 75 | % | 110 | % | ||||||
Average Loans | 12,818.6 | 8,959.4 | 8,707.5 | |||||||||
Average Deposits | 18,112.0 | 14,765.9 | 13,199.0 |
(*) | Includes negative amortization of goodwill. |
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As of December 31, | ||||||||||||
In millions of Pesos, except percentages | 2010 | 2009 | 2008 | |||||||||
Net Financial Income | 503.4 | 375.5 | 296.2 | |||||||||
Net Income from Services | 1,040.1 | 737.0 | 571.8 | |||||||||
Net Operating Revenue | 1,543.5 | 1,112.5 | 868.0 | |||||||||
Provisions for Loan Losses | 199.5 | 250.8 | 180.4 | |||||||||
Administrative Expenses | 905.0 | 621.9 | 554.5 | |||||||||
Net Operating Income | 439.0 | 239.8 | 133.1 | |||||||||
Other Income (Loss) | 101.7 | 54.9 | 45.2 | |||||||||
Minority Interests | (78.4 | ) | (32.6 | ) | (20.6 | ) | ||||||
Pre-tax Income | 462.3 | 262.1 | 157.7 | |||||||||
Income Tax Provision | 191.8 | 129.1 | 81.3 | |||||||||
Net Income | 270.5 | 133.0 | 76.4 | |||||||||
Net Income as a % of Grupo Financiero Galicia’s Net Income | 66 | % | 58 | % | 43 | % | ||||||
Average Loans | 3,341.8 | 2,402.5 | 2,105.0 |
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• | average statements issued: 11.7% growth between December 31, 2010 and December 31, 2009, reaching an annual average of 2.2 million customers; |
• | increase in retail sales: 43%, from Ps.9,311 million as of December 31, 2009 to Ps.13,317 million as of December 31, 2010; |
• | increase in loan portfolio (including managed portfolio): 44.2%, amounting to Ps.6,940 million during the fiscal year ended December 31, 2010; |
• | increase in the number of purchase transactions: 17.3%, reaching 90.7 million during the fiscal year ended December 31, 2010; and |
• | increase in the size of the distribution network: 11%, reaching a total of 231 service centers as of December 31, 2010. |
• | average statements issued: 6.6%, reaching 1.85 million on annual average; |
• | loan portfolio (including managed portfolio): 3.8%, amounting to Ps.3,376 million at year-end; |
• | turnover: 20%, reaching Ps.9,061 million on an annual basis; |
• | number of purchase transactions: 10.5%, reaching 74.7 million during the year; |
• | the size of the distribution network remained unchanged: 209 service centers; and |
• | the number of personnel remained almost unchanged, reaching 3,936 employees as of December 31, 2009. |
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As of December 31, | ||||
In millions of Pesos, except percentages | 2010(*) | |||
Net Financial Income | 282.0 | |||
Net Income from Services | 25.9 | |||
Net Operating Revenue | 307.9 | |||
Provisions for Loan Losses | 44.8 | |||
Administrative Expenses | 159.2 | |||
Net Operating Income | 103.9 | |||
Other Income (Loss) | 37.5 | |||
Pre-tax Income | 141.4 | |||
Income Tax Provision | 51.2 | |||
Net Income | 90.2 | |||
Net Income as a % of Grupo Financiero Galicia’s Net Income | 22 | % | ||
Average Loans | 640.4 | |||
Average Deposits | 116.5 | |||
(*) | Results of operations correspond to the second half of the fiscal year ended December 31, 2010, subsequent to the Bank’s acquisition of CFA Group. |
As of September 30, | ||||||||||||
In millions of Pesos, except percentages | 2010 | 2009 | 2008 | |||||||||
Net Financial Income | 28.7 | 28.5 | 20.2 | |||||||||
Net Operating Revenue | 28.7 | 28.5 | 20.2 | |||||||||
Administrative Expenses | 56.2 | 42.9 | 30.0 | |||||||||
Net Operating Income | (27.5 | ) | (14.4 | ) | (9.8 | ) | ||||||
Other Income (Loss) | 75.1 | 55.3 | 43.5 | |||||||||
Pre-tax Income | 47.6 | 40.9 | 33.7 | |||||||||
Income Tax Provision | 16.3 | 14.1 | 11.1 | |||||||||
Net Income | 31.3 | 26.8 | 22.6 | |||||||||
Net Income as a % of Grupo Financiero Galicia’s Net Income | 8 | % | 12 | % | 13 | % |
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As of December 31, | ||||||||||||||||||||||||
2010 | 2009 | 2008 | ||||||||||||||||||||||
Amounts | % | Amounts | % | Amounts | % | |||||||||||||||||||
(in millions of Pesos, except percentages) | ||||||||||||||||||||||||
Cash and Due from Banks | 5,645.6 | 15.8 | 3,696.3 | 13.4 | 3,405.1 | 13.8 | ||||||||||||||||||
Government and Corporate Securities | 2,278.0 | 6.4 | 3,920.4 | 14.2 | 1,531.9 | 6.2 | ||||||||||||||||||
Loans | 21,353.8 | 59.8 | 13,477.9 | 48.8 | 11,774.6 | 47.6 | ||||||||||||||||||
Other Assets | 6,430.7 | 18.0 | 6,507.8 | 23.6 | 8,024.2 | 32.4 | ||||||||||||||||||
Total | 35,708.1 | 100.0 | 27,602.4 | 100.0 | 24,735.8 | 100.0 | ||||||||||||||||||
• | The “Other Assets” item mainly includes the following items recorded on our balance sheet under “Other Receivables Resulting from Financial Brokerage”, unless otherwise noted: Ps.1,483.6 million recorded under “Bank Premises and Equipment”, “Miscellaneous Assets” and “Intangible Assets”. |
• | Ps.521.9 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.508.4 million of forward purchases of Bonar 2015 Bonds in connection with repurchase agreement transactions (including the corresponding security margins recorded as “Miscellaneous Receivables” in the balance sheet). |
• | Ps.428.1 million corresponding to “Assets under Financial Leases”. |
• | Ps.399.4 million of forward purchases in connection with repurchase agreement transactions. |
• | Ps.395.7 million corresponding to the minimum presumed income tax recorded under “Miscellaneous Receivables”. |
• | Ps.379.6 million corresponding to balances deposited at the Argentine Central Bank as guarantees in favor of clearing houses. |
• | Ps.271.7 million corresponding to participation certificates in, and debt securities of, different financial trusts, created by Banco Galicia or by third parties. |
• | Ps.168.5 million corresponding to holdings of the participation certificate in, and debt securities of, the special fund (referred to as “Special Fund Former Almafuerte Bank”) jointly formed by Banco Galicia with other private-sector banks in order to facilitate the recovery of the assets of former Almafuerte Bank. |
• | Ps.52.9 million corresponding to equity investments. |
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As of December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(in millions of Pesos) | ||||||||||||
Net Position in Government Securities | 3,111.7 | 4,933.0 | 3,645.3 | |||||||||
Trading and Investment Accounts | 2,469.6 | 1,810.5 | 627.6 | |||||||||
Boden 2012 Bonds | — | 1,906.9 | 2,350.8 | |||||||||
Nobac 2010 | — | 269.9 | — | |||||||||
Bonar 2015 Bonds | 642.1 | 323.7 | — | |||||||||
Discount Bonds in Pesos and GDP-Linked Negotiable Securities | — | 622.0 | 666.9 | |||||||||
Loans | 24.6 | 25.4 | 1,480.7 | |||||||||
Financial Sector | — | — | 107.1 | |||||||||
Secured Loans and Others | 24.6 | 25.4 | 1,373.6 | |||||||||
Other Receivables Resulting from Financial Brokerage | 808.2 | 924.6 | 928.3 | |||||||||
Trusts’ Certificates of Participation and Securities | 807.0 | 923.7 | 927.5 | |||||||||
Other | 1.2 | 0.9 | 0.8 | |||||||||
Total Assets(1) | 3,944.5 | 5,883.0 | 6,054.3 | |||||||||
(1) | Does not include deposits with the Argentine Central Bank, which constitute one of the items by which Banco Galicia complies with the Argentine Central Bank’s minimum cash requirements. |
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December 31, | ||||||||||||||||||||||||
2010 | 2009 | 2008 | ||||||||||||||||||||||
Amounts | % | Amounts | % | Amounts | % | |||||||||||||||||||
(in millions of Pesos, except percentages) | ||||||||||||||||||||||||
Deposits | 22,222.8 | 62.2 | 17,039.4 | 61.7 | 14,056.1 | 56.8 | ||||||||||||||||||
Current Accounts and Other Demand Deposits | 5,565.7 | 15.6 | 3,719.1 | 13.5 | 3,105.4 | 12.6 | ||||||||||||||||||
Savings Accounts | 6,362.0 | 17.8 | 4,994.7 | 18.1 | 4,035.0 | 16.3 | ||||||||||||||||||
Time Deposits | 9,724.9 | 27.2 | 7,954.8 | 28.8 | 6,548.1 | 26.5 | ||||||||||||||||||
Other Deposits | 463.2 | 1.3 | 248.7 | 0.9 | 263.2 | 1.1 | ||||||||||||||||||
Accrued Interest, Quotation Differences and CER Adjustment | 107.0 | 0.3 | 122.1 | 0.4 | 104.5 | 0.4 | ||||||||||||||||||
Debt with Financial Institutions(1) | 2,114.5 | 5.9 | 1,480.1 | 5.4 | 2,172.9 | 8.8 | ||||||||||||||||||
Domestic Financial Institutions | 668.3 | 1.9 | 322.3 | 1.2 | 248.6 | 1.0 | ||||||||||||||||||
International Banks and Credit Agencies | 649.5 | 1.8 | 548.1 | 2.0 | 941.5 | 3.8 | ||||||||||||||||||
Repurchases | 796.7 | 2.2 | 609.7 | 2.2 | 982.8 | 4.0 | ||||||||||||||||||
Negotiable Obligations (Unsubordinated and Subordinated) (1) | 2,041.7 | 5.7 | 2,716.6 | 9.8 | 2,932.5 | 11.9 | ||||||||||||||||||
Other obligations | 6,859.6 | 19.2 | 4,314.0 | 15.6 | 3,728.6 | 15.0 | ||||||||||||||||||
Shareholders’ Equity | 2,469.5 | 6.9 | 2,052.5 | 7.4 | 1,845.7 | 7.5 | ||||||||||||||||||
Total Funding | 35,708.1 | 100.0 | 27,602.6 | 100.0 | 24,735.8 | 100.0 | ||||||||||||||||||
(1) | Includes accrued interest, quotation differences, and CER adjustment where applicable. |
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• | Ps.1,188.8 million of 2019 Notes, issued in 2004 and corresponding to new debt of Banco Galicia resulting from the foreign debt restructuring completed in May of said year. |
• | Ps.147.3 million of class XII negotiable obligations, maturing in 2011, issued by Tarjeta Naranja S.A. |
• | Ps.58.0 million of class IX series II negotiable obligations, in 2011, issued by Tarjeta Naranja S.A. |
• | Ps.79.8 million of series XXII negotiable obligations, maturing in 2011, issued by Tarjetas Cuyanas S.A. |
• | Ps.70.5 million and Ps.106.8 million of class II series II and III negotiable obligations, respectively, maturing in 2012 and 2013, issued by Grupo Financiero Galicia. |
• | Ps.42.1 million of class I series II negotiable obligations, maturing in 2011, issued by Grupo Financiero Galicia. |
• | Ps.6.7 million of past due foreign debt included in Banco Galicia’s 2004 debt restructuring, the holders of which did not participate in such restructuring. |
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Standard & | Evaluadora | |||||||
Poor’s | Fitch Argentina | Latinoamericana | Moody’s | |||||
Grupo Financiero Galicia S.A. | ||||||||
Rating of Shares | 1 | |||||||
Short-/Medium Term Debt (1) | AA- | |||||||
Banco de Galicia y Buenos Aires S.A. | ||||||||
Counterparty Rating | raAA- | |||||||
Long-Term Debt(2) (3) | raAA- | Aa3.ar | ||||||
Subordinated Debt(2) (4) | raA+ | A+ | Aa3.ar | |||||
Deposits (Long Term / Short Term) | raAA- / raA-1+ | |||||||
Deposits (Local Currency / Foreign Currency) | Aa2.ar / Ba1.ar | |||||||
Trustee | TQ1(-).ar | |||||||
Tarjeta Naranja S.A. | ||||||||
Medium-/Long-Term Debt(2) (5) | AA(arg) | |||||||
Short-Term Debt(2) (6) | A1+(arg) | |||||||
Tarjetas Cuyanas S.A. | ||||||||
Long-Term Debt(2) (7) | AA-(arg) | |||||||
Short-Term Debt(2) (8) | A1(arg) | |||||||
CFA S.A. | ||||||||
Long-Term Debt(9) | AA-(arg) | Aa2.ar | ||||||
Short-Term Debt(10) | A1(arg) | Aa2.ar | ||||||
Deposits (Local Currency / Foreign Currency) | Aa2.ar / Ba1.ar | |||||||
INTERNATIONAL RATINGS | ||||||||
Banco de Galicia y Buenos Aires S.A. | ||||||||
Long-Term Debt(2) (3) | B | B2 | ||||||
Tarjeta Naranja S.A. | ||||||||
Medium-/Long-Term Debt(2) (11) | B | |||||||
Tarjetas Cuyanas S.A. | ||||||||
Long-Term Debt(2) (12) | B |
(1) | Class I series II, class II series II and class II series III negotiableobligations. | |
(2) | See “-Contractual Obligations”. | |
(3) | Class I negotiable obligations. | |
(4) | Subordinated Negotiable Obligations Due in 2019. | |
(5) | Class IV, class IX series II, class XII and class XIII negotiable obligations. | |
(6) | Class XI negotiable obligations. | |
(7) | Class I series II, class III and series XVIII negotiable obligations. | |
(8) | Class II and class IV negotiable obligations. | |
(9) | Class III series II negotiable obligations. | |
(10) | Class III series I negotiable obligations. | |
(11) | Class IV, class XII and class XIII negotiable obligations. | |
(12) | Class XVIII negotiable obligations. |
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Annual | Less than | 1 to 3 | 3 to 5 | Over 5 | ||||||||||||||||||||||||
Maturity | Interest Rate | Total | 1 Year | Years | Years | Years | ||||||||||||||||||||||
Grupo Financiero Galicia | ||||||||||||||||||||||||||||
Negotiable Obligations Series II Due 2011 (US$) | 2011 | 12.50% | 42.8 | 42.8 | — | — | — | |||||||||||||||||||||
Negotiable Obligations Class II Series II Due 2012 (US$) | 2012 | 8.00% | 71.2 | 0.7 | 70.5 | — | — | |||||||||||||||||||||
Negotiable Obligations Class II Series III Due 2013 (US$) | 2013 | 9.00% | 107.5 | 0.7 | 106.8 | — | — | |||||||||||||||||||||
Banco Galicia | ||||||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||||
Time Deposits (Pesos/US$) | Various | Various | 9,862.1 | 9,826.8 | 35.0 | 0.2 | 0.1 | |||||||||||||||||||||
Bonds | ||||||||||||||||||||||||||||
2019 Notes (US$)(1) (2) | 2019 | 11.00% | 1,253.0 | — | — | — | 1,253.0 | |||||||||||||||||||||
9% Notes Due 2003 (US$)(3) | 2003 | 9.00% | 12.2 | 12.2 | — | — | — | |||||||||||||||||||||
Loans | ||||||||||||||||||||||||||||
Floating Rate Loans Due 2019 (US$)(1) (4) | 2019 | Libor + 578 bp | 8.5 | — | — | — | 8.5 | |||||||||||||||||||||
IFC Financial Loans (US$) | Various | Libor + 350 bp | 230.6 | 68.7 | 120.9 | 41.0 | — | |||||||||||||||||||||
Other Financial Loans (US$)(5) | 2010 | Various | 410.0 | 410.0 | — | — | — | |||||||||||||||||||||
IDB Financial Loans (Pesos) | Various | Various | 54.9 | 12.0 | 21.4 | 12.6 | 8.9 | |||||||||||||||||||||
Fontar Financial Loans (Pesos) | Various | Various | 47.7 | 14.7 | 20.1 | 8.9 | 4.0 | |||||||||||||||||||||
BICE Financial Loans (Pesos) | Various | Various | 10.2 | 2.7 | 4.6 | 2.9 | — | |||||||||||||||||||||
BICE Financial Loans (US$) | Various | Various | 13.7 | 2.9 | 5.5 | 5.3 | — | |||||||||||||||||||||
Repurchases (Pesos)(6) | 2010 | Various | 359.1 | 359.1 | — | — | — | |||||||||||||||||||||
Repurchases (US$)(6) | 2010 | Various | 437.7 | 40.1 | 397.6 | — | — | |||||||||||||||||||||
Tarjetas Regionales S.A. | ||||||||||||||||||||||||||||
Financial Loans with Local Banks (Pesos) | Various | Various | 376.5 | 190.4 | 186.1 | — | — | |||||||||||||||||||||
Negotiable Obligations (Pesos/US$) | Various | Various | 552.5 | 543.7 | 8.8 | — | — | |||||||||||||||||||||
CFA | ||||||||||||||||||||||||||||
Local Financing (Pesos) | Various | Various | 212.5 | 137.5 | 75.0 | — | — | |||||||||||||||||||||
Total | 4,200.6 | 1,838.2 | 1,017.3 | 70.7 | 1,274.4 | |||||||||||||||||||||||
(1) | Issued in 2004 as part of the restructuring of the foreign debt of Banco Galicia’s Head Office and its Cayman Branch. | |
(2) | Subordinated Notes Due 2019: 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 Banco Galicia’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. | |
(3) | The balance represents debt not tendered by its holders to the exchange offered by Banco Galicia to restructure its foreign debt, which was completed in May 2004. | |
(4) | Interest payable in cash: Libor+78 b.p., 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 b.p. 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 Banco Galicia’s option, in accordance with the terms of the agreements governing such loans. | |
(5) | Borrowings to finance international trade operations to Bank customers. | |
(6) | Includes premiums. |
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(In millions of Pesos) | ||||
2011 | 50.40 | |||
2012 | 61.49 | |||
2013 | 71.94 | |||
2014 | 80.57 | |||
2015 | 88.63 | |||
2016 and After | 95.72 | |||
Total | 448.75 | |||
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December 31, | ||||
2010 | ||||
(in millions of Pesos) | ||||
Commitments to Extend Credit | 1,840.2 | |||
Standby Letters of Credit | 335.8 | |||
Guarantees Granted | 213.8 | |||
Acceptances | 111.7 |
December 31, | ||||
2010 | ||||
(in millions of Pesos) | ||||
Preferred Counter Guarantees | 15.5 | |||
Other Counter Guarantees | 48.6 |
December 31, 2010 | ||||
(in millions of Pesos) | ||||
Checks Drawn on Banco Galicia | 419.4 | |||
Checks Drawn on Other Banks | 529.2 | |||
Bills and Other Items for Collection | 3,575.9 |
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• | Level 1: inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. |
• | Level 2: inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. |
Inputs include the following: |
(a) | Quoted prices for similar assets or liabilities in active markets; | ||
(b) | Quoted prices for identical or similar assets or liabilities in non-active markets; | ||
(c) | Pricing models whose inputs are observable for substantially the full term of the asset or liability; and | ||
(d) | Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means. |
• | Level 3: inputs to the valuation methodology are unobservable and significant to the fair value measurement. |
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• | Insufficient equity investment at risk |
• | Equity lacks decision-making rights |
• | Equity with non-substantive voting rights |
• | Lacking the obligation to absorb an entity’s expected losses |
• | Lacking the right to receive an entity’s expected residual returns |
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Item 5.B. | Liquidity and Capital Resources |
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December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(in millions of Pesos) | ||||||||||||
Funds (1) at the Beginning of the Fiscal Year | Ps. | 5,428.7 | Ps. | 4,795.4 | Ps. | 3,766.2 | ||||||
Funds Provided (Used) by Operating Activities | 872.2 | 1,464.8 | 852.0 | |||||||||
- Funds Provided by the Sale Of or Proceeds From Government Securities Trading | 327.8 | 1,120.9 | 802.6 | |||||||||
- CER Adjustment | 15.0 | 6.5 | (113.2 | ) | ||||||||
- Other | 529.4 | 337.4 | 162.6 | |||||||||
Funds Provided (Used) by Investing Activities | (2,813.1 | ) | (1,526.0 | ) | 1,093.6 | |||||||
- Net (Increase)/Decrease in Loans | (4,539.4 | ) | (1,185.6 | ) | 1,501.3 | |||||||
Loans to the Private Sector | (4,435.0 | ) | (1,193.6 | ) | 1,444.6 | |||||||
Loans to the Public Sector | (104.4 | ) | 8.0 | 56.7 | ||||||||
- Funds Provided by the Sale Of or Proceeds From Government Securities Available for Sale | 2,376.5 | — | 36.5 | |||||||||
- Other | (650.2 | ) | (340.4 | ) | (444.2 | ) | ||||||
Funds Provided (Used) by Financing Activities | 3,844.7 | 517.9 | (1.065.6 | ) | ||||||||
- Net Increase/(Decrease) in Deposits | 4,180.9 | 1,838.7 | (57.0 | ) | ||||||||
- Funds Provided/(Used) by Repurchases | 211.0 | (409.3 | ) | (376.6 | ) | |||||||
- Funds Raised by the Regional Credit Card Companies | 460.3 | 197.7 | 269.5 | |||||||||
- Payments on Long-term Debt | (1,452.8 | ) | (778.6 | ) | (743.5 | ) | ||||||
- Other | 445.3 | (330.6 | ) | (158.0 | ) | |||||||
-Effect of Exchange Rate on Cash and Cash Equivalents | 111.1 | 176.7 | 149.2 | |||||||||
Funds at the End of the Fiscal Year | Ps. | 7,443.5 | Ps. | 5,428.7 | Ps. | 4,795.4 | ||||||
(1) | Cash and cash equivalents. |
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As of December 31, 2010(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 | 1,730.1 | — | — | — | 1,730.1 | |||||||||||||||
Argentine Central Bank — Escrow Accounts | 4,283.9 | — | — | — | 4,283.9 | |||||||||||||||
Overnight Placements | 215.3 | — | — | — | 215.3 | |||||||||||||||
Loans — Public Sector | 2.0 | — | — | — | 2.0 | |||||||||||||||
Loans — Private Sector | 17,444.3 | 3,256.4 | 163.0 | 13.0 | 20,876.7 | |||||||||||||||
Government Securities | 2,043.6 | 643.2 | — | — | 2,686.8 | |||||||||||||||
Negotiable Obligations and Corporate Securities | 45.8 | 23.6 | 7.1 | — | 76.5 | |||||||||||||||
Financial Trusts | 411.4 | 308.4 | 270.0 | — | 989.8 | |||||||||||||||
Special Fund Former Almafuerte Bank | 0.0 | 164.7 | — | — | 164.7 | |||||||||||||||
Other Financing | 9.5 | — | — | — | 9.5 | |||||||||||||||
Assets under Financial Lease | 162.4 | 263.6 | 43.1 | — | 469.1 | |||||||||||||||
Other | 359.4 | — | — | — | 359.4 | |||||||||||||||
Total Assets | 26,707.7 | 4,659.9 | 483.2 | 13.0 | 31,863.8 | |||||||||||||||
Liabilities | ||||||||||||||||||||
Savings Accounts | 6,190.0 | — | — | — | 6,190.0 | |||||||||||||||
Demand Deposits | 6,018.8 | — | — | — | 6,018.8 | |||||||||||||||
Time Deposits | 9,896.9 | 35.1 | 0.1 | 0.1 | 9,932.2 | |||||||||||||||
Negotiable Obligations | 554.4 | 1,201.0 | — | — | 1,755.4 | |||||||||||||||
International Banks and Credit Agencies | 476.6 | 226.5 | — | — | 703.1 | |||||||||||||||
Domestic Banks | 357.2 | 342.4 | 12.8 | 0.1 | 712.5 | |||||||||||||||
Other Liabilities(1) | 4,255.2 | 397.6 | — | — | 4,652.8 | |||||||||||||||
Total Liabilities | 27,749.1 | 2,202.6 | 12.9 | 0.2 | 29,964.8 | |||||||||||||||
Asset / Liability Gap | (1,041.4 | ) | 2,457.3 | 470.3 | 12.8 | 1,899.0 | ||||||||||||||
Cumulative Gap | (1,041.4 | ) | 1,415.9 | 1,886.2 | 1,899.0 | 1,899.0 | ||||||||||||||
Ratio of Cumulative Gap to Cumulative Liabilities | (3.8 | )% | 4.7 | % | 6.3 | % | 6.3 | % | ||||||||||||
Ratio of Cumulative Gap to Total Liabilities | (3.5 | )% | 4.7 | % | 6.3 | % | 6.3 | % |
(1) | Includes, mainly, debt with retailers due to credit card operations, liabilities in connection with repurchase transactions, debt with domestic credit agencies and collections for third parties. The “Less than One Year” bucket also includes Ps.6.7 million corresponding to Banco Galicia’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, 2010 | ||||
(in millions of Pesos) | ||||
Legal Requirement | Ps. | 4,861.1 | ||
Management Liquidity | 2,647.5 | |||
Total Liquidity(1) | Ps. | 7,508.6 | ||
(1) | Excludes cash and due from banks of consolidated companies. |
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As of December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(in millions of Pesos, except ratios, multiples and percentages) | ||||||||||||
Shareholders’ Equity | Ps. | 2,469.5 | Ps. | 2,052.5 | Ps. | 1,845.7 | ||||||
Shareholders’ Equity as a Percentage of Total Assets | 6.92 | % | 7.44 | % | 7.46 | % | ||||||
Total Liabilities as a Multiple of Total Shareholders’ Equity | 13.46 | x | 12.45 | x | 12.40 | x | ||||||
Tangible Shareholders’ Equity(1) as a Percentage of Total Assets | 5.64 | % | 5.36 | % | 5.17 | % |
(1) | Tangible shareholders’ equity represents shareholders’ equity minus intangible assets. |
Item 6. | Directors, Senior Management and Employees |
Principal | Member | Current | ||||||||
Name | Position | Date of Birth | Occupation | Since | Term Ends | |||||
Eduardo J. Escasany | Chairman | June 30, 1950 | Businessman | April 2005 | December 2012 | |||||
Pablo Gutiérrez | Vice chairman | December 9, 1959 | Banker | April 2003 | December 2012 | |||||
Abel Ayerza | Director | May 27, 1939 | Businessman | September 1999 | December 2011 | |||||
Federico Braun | Director | February 4, 1950 | Businessman | September 1999 | December 2013 | |||||
Enrique Martin | Director | October 19, 1945 | Businessman | April 2006 | December 2011 | |||||
Luis O. Oddone | Director | May 11, 1938 | Businessman | April 2005 | December 2012 | |||||
Silvestre Vila Moret | Director | April 26, 1971 | Businessman | June 2002 | December 2013 | |||||
Eduardo J. Zimmermann | Director | January 3, 1931 | Businessman | April 2000 | December 2011 | |||||
Guido C. Forcieri | Director | May 15, 1980 | Lawyer | April 2011 | December 2013 | |||||
María Ofelia Hordeñana de Escasany | Alternate Director | December 30, 1920 | Businesswoman | April 2000 | December 2013 | |||||
Sergio Grinenco | Alternate Director | May 26, 1948 | Banker | April 2003 | December 2013 | |||||
Alejandro Rojas Lagarde | Alternate Director | July 17, 1937 | Lawyer | April 2000 | December 2011 | |||||
Luis S. Monsegur | Alternate Director | August 15, 1936 | Accountant | April 2000 | December 2013 |
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Principal | Current | |||||
Name | Position | Occupation | Term Ends | |||
Norberto Corizzo | Syndic | Accountant | December 2011 | |||
Luis A. Díaz | Syndic | Accountant | December 2011 | |||
Enrique M. Garda Olaciregui | Syndic | Lawyer | December 2011 | |||
Miguel Armando | Alternate Syndic | Lawyer | December 2011 | |||
Fernando Noetinger | Alternate Syndic | Lawyer | December 2011 | |||
Horacio Tedín | Alternate Syndic | Lawyer | December 2011 |
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Date of | Principal | Member | Current | |||||||
Name | Position | Birth | Occupation | Since | Term Ends | |||||
Antonio R. Garcés | Chairman of the Board | May 30, 1942 | Banker | September 2001 | December 2011 | |||||
Sergio Grinenco | Vice chairman | May 26, 1948 | Banker | April 2003 | December 2011 | |||||
Guillermo J. Pando | Secretary Director | October 23, 1948 | Banker | April 2003 | December 2013 | |||||
Pablo Gutierrez | Director | December 9, 1959 | Banker | April 2005 | December 2013 | |||||
Luis M. Ribaya | Director | July 17, 1952 | Banker | September 2001 | December 2013 | |||||
Pablo M. Garat(1) | Director | January 12, 1953 | Lawyer | April 2004 | December 2012 | |||||
Ignacio A. González García(1) | Director | April 23, 1944 | Accountant | April 2010 | December 2012 | |||||
Enrique García Pinto | Alternate Director | August 10, 1948 | — | April 2009 | December 2011 | |||||
Raúl H. Seoane | Alternate Director | July 18, 1953 | Banker | April 2005 | December 2011 | |||||
Juan C. Fossatti(2) | Alternate Director | September 11, 1955 | Lawyer | June 2002 | December 2012 | |||||
Julio P. Naveyra(2) | Alternate Director | March 24, 1941 | Accountant | April 2004 | December 2012 | |||||
Osvaldo H. Canova(2) | Alternate Director | December 8, 1934 | Accountant | April 2004 | December 2012 |
(1) | In accordance with the rules of the CNV, and pursuant to the classifications adopted by the CNV, Messrs. Garat and González García are independent and were elected at the ordinary shareholders’ meeting held on April 14, 2010. The board of directors’ meeting held on April 15, 2010 elected them as members of the Audit Committee. Messrs. Garat and González García are also independent directors in accordance with the Nasdaq rules. | |
(2) | In accordance with the rules of the CNV, and pursuant to the classifications adopted by the CNV, Messrs. Fossatti, Canova and Naveyra are independent alternate directors. They would replace the independent directors in case of vacancy. They are also independent directors in accordance with the Nasdaq rules. |
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Division | Manager | |
Retail Banking | Juan Sarquis | |
Wholesale Banking | Gastón Bourdieu | |
Financial | Pablo María Leon | |
Risk Management | Juan Carlos L’Afflitto | |
Credit | Marcelo Poncini | |
Comprehensive Corporate Services | Miguel Ángel Peña | |
Organizational Development and Human Resources | Rafael Pablo Bergés | |
Planning and Financial Control | Raúl Héctor Seoane |
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Department | Manager | |
Legal Advisory Services Department | María Elena Casasnovas | |
Research Department | Nicolás Dujovne |
Department | Manager | |
Internal Audit | Omar Severini | |
Institutional Affairs and Press Department | Diego Francisco Videla | |
Anti-money Laundering Unit | Claudia Estecho |
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Year of | Principal | |||||||||
Name | Appointment | Position | Occupation | Current Term Ends | ||||||
Enrique M. Garda Olaciregui | 2011 | Syndic | Lawyer | December 31, 2011 | ||||||
Norberto D. Corizzo | 2011 | Syndic | Accountant | December 31, 2011 | ||||||
Luis A. Díaz | 2011 | Syndic | Accountant | December 31, 2011 | ||||||
Fernando Noetinger | 2011 | Alternate Syndic | Lawyer | December 31, 2011 | ||||||
Miguel N. Armando | 2011 | Alternate Syndic | Lawyer | December 31, 2011 | ||||||
Ricardo A. Bertoglio | 2011 | Alternate Syndic | Accountant | December 31, 2011 |
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As of December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Grupo Financiero Galicia S.A. | 13 | 10 | 9 | |||||||||
Banco de Galicia y Buenos Aires S.A. | 5,185 | 5,028 | 5,324 | |||||||||
Branches | 2,685 | 2,636 | 2,888 | |||||||||
Head Office | 2,500 | 2,392 | 2,436 | |||||||||
Galicia Uruguay | 7 | 8 | 10 | |||||||||
Regional Credit-Card Companies | 4,699 | 3,936 | 3,898 | |||||||||
CFA | 1,160 | — | — | |||||||||
Sudamericana Consolidated | 126 | 116 | 105 | |||||||||
Other Subsidiaries | 48 | 44 | 62 | |||||||||
Total | 11,238 | 9.142 | 9,408 | |||||||||
(i) | Rule 5250 (d) — Distribution of Annual and Interim Reports. In lieu of the requirements of Rule 5250 (d), 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 our 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 |
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quarterly press releases. Annual reports and quarterly press releases are available for inspection by ADRs holders at the offices of The Bank of New York located at, 101 Barclay Street, 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 5605 (b) (1) — Majority of Independent Directors. In lieu of the requirements of Rule 5605 (b) (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 addition, because we are a “controlled company” as defined in Rule 5615 (c) (1), we are relying on the exemption provided thereby for purposes of complying with Rule 5615 (c) (2). |
(iii) | Rule 5605 (b) (2) — Executive Sessions of Independent Directors. In lieu of the requirements of Rule 5605 (b) (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 5605 (d) — Compensation of Officers. In lieu of the requirements of Rule 5605 (d), 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 Argentine law that the compensation of the chief executive officer and all other executive officers 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 5615 (c) (1), we are relying on the exemption provided thereby for purposes of complying with Rule 5615 (c) (2). |
(v) | Rule 5605 (e) (1) — Nomination of Directors. In lieu of the requirements of Rule 5605 (e) (1), 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 5615 (c) (1), we are relying on the exemption provided thereby for purposes of complying with Rule 5615 (c) (2). |
(vi) | Rule 5605 (c) (1) — Audit Committee Charter. In lieu of the requirements of Rule 5605 (c) (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. |
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(vii) | Rule 5605 (c) (2) — Audit Committee Composition. Argentine law does not require, and it is equally not customary business practice in Argentina, that companies have an audit committee comprised solely of independent directors. 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 of Directors 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 5620 (c) — Quorum. In lieu of the requirements of Rule 5620 (c), 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 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, a 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 5620 (b) — Solicitation of Proxies. In lieu of the requirements of Rule 5620 (b), 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 S.A. (“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 ADRs 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 5630 (a) — Conflicts of Interest. In lieu of the requirements of Rule 5630 (a), 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 shareholders’ vote, such shareholder may be liable to the company for damages and the resolution may be declared void. |
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Item 7. | Major Shareholders and Related Party Transactions |
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) | 397,228,430 class B shares | 41.4 | 16.8 | |||||||
ANSES(2) | 253,745,743 class B shares | 26.4 | 10.7 | |||||||
EBA Holding Shareholders (3) | 134,284,871 class B shares | 14.0 | 5.7 | |||||||
Carmignac Gestión (4) | 86,020,000 class B shares | 9.0 | 3.6 |
(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, New York 10286, and the country of organization is the United States. | |
(2) | ANSES’ holding is obtained through information supplied by Caja de Valores and information gathered from the ANSES. Said holding includes 46,521,340 shares in ADSs. | |
(3) | No member holds more than 2.0% of the capital stock. Said holding includes 37,036,150 shares in the form of ADSs. | |
(4) | Information is based on available public information dated March 31, 2011. The address for Carmignac Gestion S.A. is 34 place Vendome 75001, Paris, France. |
Name | Shares | % of Shares | % of Total Votes | |||||||||
The Bank of New York | 397,228,430 class B shares | 32.0 | 16.8 | |||||||||
EBA Holding S.A. | 281,221,650 class A shares | 22.7 | 59.4 | |||||||||
ANSES | 253,745,743 class B shares | 20.4 | 10.7 | |||||||||
EBA Holding Shareholders | 134,284,871 class B shares | 10.8 | 5.7 | |||||||||
Carmignac Gestión(1) | 86,020,000 class B shares | 6.9 | 3.6 |
(1) | Information is based on available public information dated March 31, 2011. |
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Outstanding amount | ||||||||||||||||||||
Entity | Granted in | Rate | Original Amount | December 31, 2010 | December 31, 2009 | |||||||||||||||
% | (in millions of Pesos) | |||||||||||||||||||
Net Investment S.A. | Nov/Apr 2009 | 0.0 | Ps. | 0.20 | Ps. | 0 | Ps. | 0.20 | ||||||||||||
GV Mandataria de Valores S.A. | Nov/Sep 2009 | 0.0 | Ps. | 0.57 | Ps. | 0 | Ps. | 0.76 |
April 30, 2011 | December 31, 2010 | December 31, 2009 | December 31, 2008 | |||||||||||||
In millions of Pesos, except as noted | ||||||||||||||||
Aggregate Total Financial Exposure | Ps. | 111 | Ps. | 126.1 | Ps. | 76.0 | Ps. | 74.9 | ||||||||
Number of Recipient Related Parties | 231 | 230 | 219 | 221 | ||||||||||||
Individuals | 177 | 175 | 172 | 174 | ||||||||||||
Companies | 54 | 55 | 47 | 47 | ||||||||||||
Average Total Financial Exposure | Ps. | 0.5 | Ps. | 0.5 | Ps. | 0.3 | Ps. | 0.3 | ||||||||
Single Largest Exposure | Ps. | 25.1 | Ps. | 39 | Ps. | 18.9 | Ps. | 30.5 |
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Item 8. | Financial Information |
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• | Calculation of the distributable profits subtracting the net difference between the book value and the market price of the government debt. |
• | Compliance with minimum capital requirements plus 30% after the payment of the dividend. |
• | Compliance with minimum capital cash reserves after the payment of the dividend. |
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Item 9. | The Offer and Listing |
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Average Daily Volume | ||||||||||||
High | Low | (in thousands of Class B shares) | ||||||||||
Calendar Year | ||||||||||||
2006 | 2.86 | 1.72 | 2,045.3 | |||||||||
2007 | 3.37 | 2.23 | 1,924.8 | |||||||||
2008 | 2.36 | 0.57 | 3,549.4 | |||||||||
2009 | 2.30 | 0.61 | 2,471.5 | |||||||||
2010 | 6.69 | 1.84 | 2,341.3 | |||||||||
Two Most Recent Fiscal Years | ||||||||||||
2009 | ||||||||||||
First Quarter | 0.88 | 0.61 | 1,497.9 | |||||||||
Second Quarter | 1.28 | 0.70 | 2,669.4 | |||||||||
Third Quarter | 1.81 | 1.26 | 1,747.7 | |||||||||
Fourth Quarter | 2.30 | 1.76 | 1,742.8 | |||||||||
2010 | ||||||||||||
First Quarter | 2.41 | 1.84 | 1,315.5 | |||||||||
Second Quarter | 2.53 | 2.02 | 1,957.0 | |||||||||
Third Quarter | 4.01 | 2.29 | 2,988.9 | |||||||||
Fourth Quarter | 6.69 | 3.91 | 3,094.7 | |||||||||
2011 | ||||||||||||
First Quarter | 6.69 | 5.23 | 1,299.7 | |||||||||
Second Quarter (through May 31, 2011) | 5.85 | 5.15 | 1,418.4 | |||||||||
Most Recent Six Months | ||||||||||||
December 2010 | 6.69 | 5.71 | 2,117.0 | |||||||||
January 2011 | 6.69 | 6.10 | 1,057.6 | |||||||||
February 2011 | 6.62 | 5.91 | 1,467.9 | |||||||||
March 2011 | 5.98 | 5.23 | 1,390.3 | |||||||||
April 2011 | 5.85 | 5.43 | 1,574.4 | |||||||||
May 2011 | 5.84 | 5.15 | 1,277.2 |
Average Daily Volume | ||||||||||||
High | Low | (in thousands of ADRs) | ||||||||||
Calendar Year | ||||||||||||
2006 | 9.56 | 5.61 | 190.2 | |||||||||
2007 | 11.12 | 6.98 | 273.1 | |||||||||
2008 | 7.60 | 1.45 | 251.6 | |||||||||
2009 | 6.10 | 1.56 | 160,0 | |||||||||
2010 | 16.77 | 4.72 | 447.1 | |||||||||
Two Most Recent Fiscal Years | ||||||||||||
2009 | ||||||||||||
First Quarter | 2.42 | 1.56 | 100.9 | |||||||||
Second Quarter | 3.28 | 1.80 | 191.1 | |||||||||
Third Quarter | 4.71 | 3.10 | 163.0 | |||||||||
Fourth Quarter | 6.10 | 4.55 | 187.7 | |||||||||
2010 | ||||||||||||
First Quarter | 6.20 | 4.72 | 113.6 | |||||||||
Second Quarter | 6.48 | 5.12 | 147.7 | |||||||||
Third Quarter | 10.15 | 5.67 | 658.8 | |||||||||
Fourth Quarter | 16.77 | 9.86 | 847.8 | |||||||||
2011 | ||||||||||||
First Quarter | 16.52 | 12.32 | 376.8 | |||||||||
Second Quarter (through May 31, 2011) | 13.94 | 11.12 | 258.1 | |||||||||
Most Recent Six Months | ||||||||||||
December 2010 | 16.77 | 14.27 | 613.8 | |||||||||
January 2011 | 16.52 | 15.05 | 424.7 | |||||||||
February 2011 | 16.01 | 13.83 | 443.8 | |||||||||
March 2011 | 14.38 | 12.32 | 279.9 | |||||||||
April 2011 | 13.94 | 12.72 | 288.2 | |||||||||
May 2011 | 13.53 | 11.12 | 229.5 |
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Average Daily Trading Volume | ||||||||||||
High | Low | (in thousand Class B shares) | ||||||||||
Calendar Year | ||||||||||||
2006 | 4.50 | 3.04 | 1.56 | |||||||||
2007 | 6.46 | 4.25 | 2.74 | |||||||||
2008 | 4.45 | 2.15 | 3.30 | |||||||||
2009 | 3.55 | 2.10 | 6.47 | |||||||||
2010 | 11.91 | 3.12 | 3.51 | |||||||||
Two Most Recent Fiscal Years | ||||||||||||
2009 | ||||||||||||
First Quarter | 2.38 | 2.17 | 0.69 | |||||||||
Second Quarter | 2.30 | 2.15 | 4.03 | |||||||||
Third Quarter | 3.00 | 2.10 | 14.85 | |||||||||
Fourth Quarter | 3.55 | 3.04 | 6.06 | |||||||||
2010 | ||||||||||||
First Quarter | 4.08 | 3.12 | 3.51 | |||||||||
Second Quarter | 4.05 | 3.44 | 1.67 | |||||||||
Third Quarter | 6.28 | 3.79 | 3.11 | |||||||||
Fourth Quarter | 11.91 | 6.15 | 5.76 | |||||||||
2011 | ||||||||||||
First Quarter | 11.66 | 9.06 | 2.59 | |||||||||
Second Quarter (through May 31, 2011) | 11.90 | 10.78 | 2.62 | |||||||||
Most Recent Six Months | ||||||||||||
December 2010 | 10.83 | 8.46 | 3.45 | |||||||||
January 2011 | 11.52 | 9.06 | 2.68 | |||||||||
February 2011 | 11.66 | 10.24 | 2.57 | |||||||||
March 2011 | 10.93 | 10.14 | 2.51 | |||||||||
April 2011 | 11.71 | 10.78 | 2.43 | |||||||||
May 2011 | 11.90 | 10.80 | 1.79 |
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Item 10. | Additional Information |
As of December 31, 2010 | ||||||||||||
Shares | Number of Shares | % of Capital Stock | % of Voting Rights | |||||||||
Class A Shares | 281,221,650 | 22.65 | 59.42 | |||||||||
Class B Shares | 960,185,367 | 77.35 | 40.58 | |||||||||
Total | 1,241,407,017 | 100.00 | 100.00 | |||||||||
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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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• | 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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Item 11. | Quantitative and Qualitative Disclosures About Market Risk |
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Aimed at managing and limiting the sensitivity of Banco Galicia’s economic value and results with respect to variations in the interest rate inherent to the structure of certain assets and liabilities, the following caps have been determined: |
• | Limit on the net financial income for the first year. |
• | Limit on the net present value of assets and liabilities. |
Net Portfolio | Net Financial Income (1) | |||||||||||||||
(In millions of Pesos, except percentages) | As of December 31, 2010 | As of December 31, 2009 | ||||||||||||||
Change in Interest Rates in b.p. | Variation | % Change in the NFI | Variation | % Change in the NFI | ||||||||||||
200 | (30.4 | ) | (0.92 | )% | (47.3 | ) | (2.65 | )% | ||||||||
150 | (22.9 | ) | (0.69 | )% | (35.4 | ) | (1.98 | )% | ||||||||
100 | (16.2 | ) | (0.49 | )% | (23.5 | ) | (1.32 | )% | ||||||||
50 | (7.8 | ) | (0.23 | )% | (11.8 | ) | (0.66 | )% | ||||||||
Static | — | — | — | — | ||||||||||||
(50) | 8.4 | 0.25 | % | 12.1 | 0.68 | % | ||||||||||
(100) | 16.7 | 0.50 | % | 24.8 | 1.39 | % | ||||||||||
(150) | 25.0 | 0.75 | % | 37.4 | 2.10 | % | ||||||||||
(200) | 33.3 | 1.00 | % | 50.1 | 2.80 | % |
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Net Trading Portfolio | Net Financial Income (1) | |||||||||||||||
(In millions of Pesos, except percentages) | As of December 31, 2010 | As of December 31, 2009 | ||||||||||||||
Change in Interest Rates in b.p. | Variation | % Change in the NFI | Variation | % Change in the NFI | ||||||||||||
200 | 40.9 | 1.23 | % | 32.5 | 1.82 | % | ||||||||||
150 | 30.7 | 0.92 | % | 24.4 | 1.37 | % | ||||||||||
100 | 20.4 | 0.61 | % | 16.3 | 0.91 | % | ||||||||||
50 | 10.2 | 0.31 | % | 8.1 | 0.45 | % | ||||||||||
Static | — | — | — | — | ||||||||||||
(50) | (10.3 | ) | (0.31 | )% | (8.2 | ) | (0.46 | )% | ||||||||
(100) | (20.5 | ) | (0.62 | )% | (16.3 | ) | (0.91 | )% | ||||||||
(150) | (30.7 | ) | (0.92 | )% | (24.4 | ) | (1.37 | )% | ||||||||
(200) | (41.0 | ) | (1.23 | )% | (32.6 | ) | (1.83 | )% |
Net Non Trading Portfolio | Net Financial Income (1) | |||||||||||||||
(In millions of Pesos, except percentages) | As of December 31, 2010 | As of December 31, 2009 | ||||||||||||||
Change in Interest Rates in b.p. | Variation | % Change in the NFI | Variation | % Change in the NFI | ||||||||||||
200 | (71.3 | ) | (2.15 | )% | (79.8 | ) | (4.47 | )% | ||||||||
150 | (53.6 | ) | (1.61 | )% | (59.8 | ) | (3.35 | )% | ||||||||
100 | (36.6 | ) | (1.10 | )% | (39.8 | ) | (2.23 | )% | ||||||||
50 | (18.0 | ) | (0.54 | )% | (19.9 | ) | (1.11 | )% | ||||||||
Static | — | — | — | — | ||||||||||||
(50) | 18.7 | 0.56 | % | 20.3 | 1.14 | % | ||||||||||
(100) | 37.2 | 1.12 | % | 41.1 | 2.30 | % | ||||||||||
(150) | 55.7 | 1.68 | % | 61.8 | 3.46 | % | ||||||||||
(200) | 74.3 | 2.23 | % | 82.7 | 4.63 | % |
(1) | Net interest of the first year. |
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Net Portfolio | Net Fair Value | |||||||||||||||
(In millions of Pesos, except percentages) | As of December 31, 2010 | As of December 31, 2009 | ||||||||||||||
Change in Interest Rates in b.p. | Variation | % Change in the RPC | Variation | % Change in the RPC | ||||||||||||
200 | (103.6 | ) | (2.89 | )% | (104.6 | ) | (3.80 | )% | ||||||||
150 | (78.4 | ) | (2.18 | )% | (80.1 | ) | (2.91 | )% | ||||||||
100 | (52.7 | ) | (1.47 | )% | (54.6 | ) | (1.98 | )% | ||||||||
50 | (26.6 | ) | (0.74 | )% | (27.9 | ) | (1.01 | )% | ||||||||
Static | — | — | — | — | ||||||||||||
(50) | 27.0 | 0.75 | % | 29.2 | 1.06 | % | ||||||||||
(100) | 54.5 | 1.52 | % | 59.7 | 2.17 | % | ||||||||||
(150) | 82.4 | 2.30 | % | 91.7 | 3.33 | % | ||||||||||
(200) | 110.8 | 3.09 | % | 125.3 | 4.55 | % |
Net Trading Portfolio | Net Fair Value | |||||||||||||||
(In millions of Pesos, except percentages) | As of December 31, 2010 | As of December 31, 2009 | ||||||||||||||
Change in Interest Rates in b.p. | Variation | % Change in the RPC | Variation | % Change in the RPC | ||||||||||||
200 | (2.4 | ) | (0.07 | )% | (5.3 | ) | (0.19 | )% | ||||||||
150 | (1.8 | ) | (0.05 | )% | (4.0 | ) | (0.15 | )% | ||||||||
100 | (1.2 | ) | (0.03 | )% | (2.6 | ) | (0.09 | )% | ||||||||
50 | (0.6 | ) | (0.02 | )% | (1.3 | ) | (0.05 | )% | ||||||||
Static | — | — | — | — | ||||||||||||
(50) | 0.6 | 0.02 | % | 1.3 | 0.05 | % | ||||||||||
(100) | 1.2 | 0.03 | % | 2.6 | 0.09 | % | ||||||||||
(150) | 1.8 | 0.05 | % | 3.9 | 0.14 | % | ||||||||||
(200) | 2.4 | 0.07 | % | 5.2 | 0.19 | % |
Net Non Trading Portfolio | Net Fair Value | |||||||||||||||
(In millions of Pesos, except percentages) | As of December 31, 2010 | As of December 31, 2009 | ||||||||||||||
Change in Interest Rates in b.p. | Variation | % Change in the RPC | Variation | % Change in the RPC | ||||||||||||
200 | (101.2 | ) | (2.82 | )% | (99.3 | ) | (3.61 | )% | ||||||||
150 | (76.6 | ) | (2.13 | )% | (76.1 | ) | (2.76 | )% | ||||||||
100 | (51.5 | ) | (1.43 | )% | (52.0 | ) | (1.89 | )% | ||||||||
50 | (26.0 | ) | (0.72 | )% | (26.6 | ) | (0.97 | )% | ||||||||
Static | — | — | — | — | ||||||||||||
(50) | 26.4 | 0.74 | % | 27.9 | 1.01 | % | ||||||||||
(100) | 53.3 | 1.48 | % | 57.1 | 2.07 | % | ||||||||||
(150) | 80.6 | 2.25 | % | 87.8 | 3.19 | % | ||||||||||
(200) | 108.4 | 3.02 | % | 120.1 | 4.36 | % |
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Value of Foreign Currency Net Position as of | ||||||||||||
December 31, 2010 | ||||||||||||
Percentage Change in the Value of the Peso Relative to the Dollar(1) | Amount | Absolute Variation | % Change | |||||||||
(In millions of Pesos, except percentages) | ||||||||||||
40% | 57.0 | 16.3 | 40.0 | |||||||||
30% | 52.9 | 12.2 | 30.0 | |||||||||
20% | 48.8 | 8.1 | 19.9 | |||||||||
10% | 44.8 | 4.1 | 10.1 | |||||||||
Static | 40.7 | (2) | — | — | ||||||||
(10)% | 36.6 | (4.1 | ) | (10.1 | ) | |||||||
(20)% | 32.6 | (8.1 | ) | (19.9 | ) | |||||||
(30)% | 28.5 | (12.2 | ) | (30.0 | ) | |||||||
(40)% | 24.4 | (16.3 | ) | (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, 2009 | ||||||||||||
Percentage Change in the Value of the Peso Relative to the Dollar(1) | Amount | Absolute Variation | % Change | |||||||||
(In millions of Pesos, except percentages) | ||||||||||||
40% | 85.5 | 24.4 | 39.9 | |||||||||
30% | 79.4 | 18.3 | 30.0 | |||||||||
20% | 73.3 | 12.2 | 20.0 | |||||||||
10% | 67.2 | 6.1 | 10.0 | |||||||||
Static | 61.1 | (2) | — | — | ||||||||
(10)% | 55.0 | (6.1 | ) | (10.0 | ) | |||||||
(20)% | 48.9 | (12.2 | ) | (20.0 | ) | |||||||
(30)% | 42.8 | (18.3 | ) | (30.0 | ) | |||||||
(40)% | 36.7 | (24.4 | ) | (39.9 | ) |
(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, 2008 | ||||||||||||
Percentage Change in the Value of the Peso Relative to the Dollar(1) | Amount | Absolute Variation | % Change | |||||||||
(In millions of Pesos, except percentages) | ||||||||||||
40% | 318.6 | 91.0 | 40.0 | |||||||||
30% | 295.9 | 68.3 | 30.0 | |||||||||
20% | 273.1 | 45.5 | 20.0 | |||||||||
10% | 250.4 | 22.8 | 10.0 | |||||||||
Static | 227.6 | (2) | — | — | ||||||||
(10)% | 204.8 | (22.8 | ) | (10.0 | ) | |||||||
(20)% | 182.1 | (45.5 | ) | (20.0 | ) | |||||||
(30)% | 159.3 | (68.3 | ) | (30.0 | ) | |||||||
(40)% | 136.6 | (91.0 | ) | (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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As of December 31, 2010 | ||||||||||||
Assets | Liabilities | Gap | ||||||||||
(In millions of Pesos) | ||||||||||||
Financial Assets and Liabilities | 32,948.7 | 31,091.5 | 1,857.2 | |||||||||
Pesos — Adjusted by CER | 577.0 | 13.6 | 563.4 | |||||||||
Pesos — Unadjusted | 25,668.4 | 23,582.1 | 2,086.3 | |||||||||
Foreign Currency(1) | 6,703.3 | 7,495.8 | (792.5 | ) | ||||||||
Other Assets and Liabilities | 2,350.2 | 1,611.7 | 738.5 | |||||||||
Total Gap | 35,298.9 | 32,703.2 | 2,595.7 | |||||||||
Adjusted for Forward Transactions Recorded in Memo Accounts | ||||||||||||
Financial Assets and Liabilities | 32,948.7 | 31,091.5 | 1,857.2 | |||||||||
Pesos — Adjusted by the CER | 577.0 | 13.6 | 563.4 | |||||||||
Pesos — Unadjusted, Including Shareholders’ Equity(2) | 22,260.0 | 21,006.9 | 1,253.1 | |||||||||
Foreign Currency(1)(2) | 10,111.7 | 10,071.0 | 40.7 | |||||||||
Other Assets and Liabilities | 2,350.2 | 1,611.7 | 738.5 | |||||||||
Total Adjusted Gap | 35,298.9 | 32,703.2 | 2,595.7 | |||||||||
(1) | In Pesos, at an exchange rate of Ps.3.9758 per US$1.0. | |
(2) | Adjusted for forward sales and purchases of foreign exchange made by Banco Galicia and recorded off-balance sheet. |
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(i) | The VaR model enjoys a measured 95% – 99% degree of accuracy. |
(ii) | VaR estimates are made for holding periods of one day and “n” days, where “n” is defined as the number of days necessary to settle the position in each security. |
(iii) | In the case of new issuances, the available trading days are taken into consideration; if there are not enough trading days or if there are no quotations, the volatility of bonds from domestic issuers with similar risk and characteristics is used. |
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Securities | Ps. | 15.0 million. | ||
Currencies | Ps. | 1.0 million. | ||
Interest Rate Derivatives | Ps. | 0.5 million. | ||
Lebac / Nobac | Ps. | 0.9 million. |
Item 12. | Description of Securities Other Than Equity Securities |
Item 12.D. | American Depositary Shares |
Persons depositing or withdrawing shares must pay | For: | |
$5.00 (or less) per 100 ADSs (or portion of 100 ADSs) | • Issuance of ADSs, including issuances resulting from a distribution of shares or rights or other property | |
• Cancellation of ADSs for the purpose of withdrawal, including if the deposit agreement terminates | ||
$0.02 (or less) per ADS | • Any cash distribution to ADS registered holders | |
A fee equivalent to the fee that would be payable if securities distributed to you had been shares and the shares had been deposited for issuance of ADSs | • Distribution of securities distributed to holders of deposited securities which are distributed by the depositary to ADS registered holders |
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Persons depositing or withdrawing shares must pay | For: | |
Registration or transfer fees | • Transfer and registration of shares on our share register to or from the name of the depositary or its agent when you deposit or withdraw shares | |
Expenses of the depositary | • Cable, telex and facsimile transmissions (when expressly provided in the deposit agreement) | |
• Converting foreign currency to US Dollars | ||
Taxes and other governmental charges the depositary or the custodian have to pay on any ADS or share underlying an ADS, for example, stock transfer taxes, stamp duty or withholding taxes. | • As necessary | |
Any charges incurred by the depositary or its agents for servicing the deposited securities | • As necessary |
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Item 13. | Defaults, Dividend Arrearages and Delinquencies |
Item 14. | Material Modifications to the Rights of Security Holders and Use of Proceeds |
Item 15. | Controls and Procedures |
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Item 16. | [Reserved] |
Item 16A. | Audit Committee Financial Expert |
Item 16B. | Code of Ethics |
Item 16C. | Principal Accountants’ Fees and Services |
2010 | 2009 | |||||||
(In thousands of Pesos) | ||||||||
Audit Fees | 8,018 | 6,882 | ||||||
Audit Related Fees | 1,717 | 1,648 | ||||||
Tax Fees | 981 | 891 | ||||||
All Other Fees | 919 | 964 | ||||||
Total | 11,635 | 10,385 | ||||||
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Item 16D. | Exemptions from the Listing Standards for Audit Committees |
Item 16E. | Purchases of Equity Securities by the Issuer and Affiliated Purchasers |
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Item 17. | Financial Statements |
Item 18. | Financial Statements |
Item 19. | Exhibits |
Exhibit | Description | |||
1.1 | Unofficial English language translation of the Bylaws (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 Banco Galicia, The Bank of New York and Banco Rio de la Plata S.A.** | |||
2.3 | Indenture, dated as of June 4, 2009, among Grupo Financiero Galicia, The Bank of New York Mellon, Banco de Valores S.A. and The Bank of New York (Luxembourg) S.A.******* | |||
2.4 | Indenture, dated as of June 8, 2010, among Grupo Financiero Galicia, The Bank of New York Mellon, Banco de Valores S.A. and The Bank of New York Mellon (Luxembourg) S.A.******** | |||
2.5 | Indenture, dated as of May 4, 2011, among Banco de Galicia y Buenos Aires S.A., The Bank of New York Mellon, Banco de Valores S.A. and The Bank of New York Mellon (Luxembourg) S.A. | |||
2.6 | Indenture, dated as of January 28, 2011, among Tarjeta Naranja S.A., The Bank of New York Mellon, Banco de Valores S.A. and The Bank of New York Mellon (Luxembourg) S.A. | |||
4.1 | English translation of form of Financial Trust Contract, dated April 16, 2002, among Banco Galicia, Banco Provincia de Buenos Aires and BAPRO Mandatos y Negocios S.A.*** | |||
4.2 | 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).** |
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Exhibit | Description | |||
4.3 | Form of First Amendment and Waiver to Restructured Loan Facility (as evidenced by the First Amendment and Waiver to the 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).**** | |||
4.4 | 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).***** | |||
4.5 | Form of Third Amendment to Restructured Loan Facility (as evidenced by the Third Amendment to the Note Purchase Agreement, dated as of December 28, 2007, among Banco de Galicia y Buenos Aires S.A., the holders party thereto and Deutsche Bank Trust Company Americas).****** | |||
4.6 | Loan Agreement, dated as of July 24, 2007, between Grupo Financiero Galicia S.A. and Merrill Lynch International.****** | |||
4.7 | Stock Purchase Agreement, dated as of June 1, 2009, among American International Group Inc., AIG Consumer Finance Group, Inc. and Banco de Galicia y Buenos Aires S.A., and the other parties signatory thereto.******** | |||
4.8 | Loan Agreement, dated as of September 8, 2010, between Banco de Galicia y Buenos Aires S.A. and International Finance Corporation. | |||
4.9 | Loan Agreement, dated as of December 17, 2010, between Banco de Galicia y Buenos Aires S.A. and Netherlands Financierings-Moatschappy Voor Ont Wikkelingslanden N.V. | |||
4.10 | Loan Agreement, dated as of February 15, 2011, between Banco de Galicia y Buenos Aires S.A. and Inter-American Development Bank. | |||
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”. | |||
11.1 | Code of Ethics.******* | |||
11.2 | Code of Corporate Governance Good Practices. | |||
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. | |
***** | Incorporated by reference from our Annual Report on Form 20-F for the year ended December 31, 2006. | |
****** | Incorporated by reference from our Annual Report on Form 20-F for the year ended December 31, 2007. | |
******* | Incorporated by reference from our Annual Report on Form 20-F for the year ended December 31, 2008. | |
******** | Incorporated by reference from our Annual Report on Form 20-F for the year ended December 31, 2009. |
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GRUPO FINANCIERO GALICIA S.A. | ||||
By: | /s/ Pedro Alberto Richards | |||
Name: | Pedro Alberto Richards | |||
Title: | Chief Executive Officer | |||
By: | /s/ José Luis Gentile | |||
Name: | José Luis Gentile | |||
Title: | Chief Financial Officer |
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Page | ||||
F-2 | ||||
F-3 | ||||
F-6 | ||||
F-8 | ||||
F-10 | ||||
F-11 | ||||
F-1
Table of Contents
February 17, 2011, except for notes 27, 31, 34 and 35 as to which the date is June 29, 2011.
F-2
Table of Contents
As of December 31, 2010 and 2009
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||
2010 | 2009 | |||||||
ASSETS | ||||||||
A. Cash and due from banks | ||||||||
Cash | 1,489,374 | 1,379,888 | ||||||
Financial institutions and correspondents | 4,156,197 | 2,316,421 | ||||||
Argentine Central Bank | 3,932,281 | 2,066,792 | ||||||
Other local financial institutions | 14,607 | 6,783 | ||||||
Foreign | 209,309 | 242,846 | ||||||
Ps. | 5,645,571 | Ps. | 3,696,309 | |||||
B. Government and corporate securities | ||||||||
Holdings of investment account securities | 133,756 | — | ||||||
Holdings of securities in special investment account | — | 43,350 | ||||||
Holdings of trading securities | 68,231 | 114,186 | ||||||
Government securities from repo transactions with the Argentine Central Bank | — | 152,650 | ||||||
Government securities without quotation | — | 1,981,972 | ||||||
Securities issued by the Argentine Central Bank | 2,065,723 | 1,615,078 | ||||||
Investments in quoted corporate securities | 10,302 | 13,171 | ||||||
Ps. | 2,278,012 | Ps. | 3,920,407 | |||||
C. Loans | ||||||||
To the non-financial public sector | 24,565 | 25,416 | ||||||
To the financial sector | 80,633 | 25,352 | ||||||
Interbank loans — (call money loans granted) | 32,500 | 25,300 | ||||||
Other loans to domestic financial institutions | 47,968 | 24 | ||||||
Accrued interest, adjustments and exchange rate differences receivable | 165 | 28 | ||||||
To the non-financial private sector and residents abroad | 22,287,056 | 14,233,579 | ||||||
Overdrafts | 977,890 | 630,068 | ||||||
Promissory notes | 4,534,326 | 3,205,433 | ||||||
Mortgage loans | 950,237 | 964,291 | ||||||
Pledge loans | 119,175 | 64,819 | ||||||
Personal loans | 4,093,559 | 1,724,413 | ||||||
Credit card loans | 9,120,092 | 5,691,335 | ||||||
Other | 2,297,507 | 1,828,591 | ||||||
Accrued interest, adjustments and quotation differences receivable | 277,070 | 178,837 | ||||||
Documented interest | (81,804 | ) | (54,185 | ) | ||||
Unallocated collections | (996 | ) | (23 | ) | ||||
Allowances | (1,038,473 | ) | (806,446 | ) | ||||
Ps. | 21,353,781 | Ps. | 13,477,901 | |||||
D. Other receivables resulting from financial brokerage | ||||||||
Argentine Central Bank | 402,386 | 493,129 | ||||||
Amounts receivable for spot and forward sales to be settled | 237,333 | 23,650 | ||||||
Securities receivable under spot and forward purchases to be settled | 914,124 | 681,148 | ||||||
Negotiable obligations without quotation | 99,237 | 38,979 | ||||||
Balances from forward transactions without delivery of underlying asset to be settled | 5,403 | 1,040 | ||||||
Other | 1,799,313 | 2,127,991 | ||||||
Allowances | (131,806 | ) | (30,570 | ) | ||||
Ps. | 3,325,990 | Ps. | 3,335,367 |
F-3
Table of Contents
As of December 31, 2010 and 2009
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||
2010 | 2009 | |||||||
ASSETS (Continued) | ||||||||
E. Assets under financial leases | ||||||||
Assets under financial leases | 426,626 | 362,298 | ||||||
Interest and adjustments | 6,923 | 7,989 | ||||||
Allowances | (5,469 | ) | (6,070 | ) | ||||
Ps. | 428,080 | Ps. | 364,217 | |||||
F. Equity investments | ||||||||
In financial institutions | 1,971 | 1,882 | ||||||
Other | 64,140 | 57,973 | ||||||
Allowances | (13,263 | ) | (5,960 | ) | ||||
Ps. | 52,848 | Ps. | 53,895 | |||||
G. Miscellaneous receivables | ||||||||
Receivables for assets sold | 35,403 | 34,106 | ||||||
Tax on minimum presumed income — Tax credit | 395,738 | 328,619 | ||||||
Other | 677,151 | 820,875 | ||||||
Accrued interest on receivables for assets sold | 135 | 124 | ||||||
Other accrued interest and adjustments receivable | 159 | 109 | ||||||
Allowances | (26,025 | ) | (28,655 | ) | ||||
Ps. | 1,082,561 | Ps. | 1,155,178 | |||||
H. Bank premises and equipment | Ps. | 948,067 | Ps. | 898,321 | ||||
I. Miscellaneous assets | Ps. | 81,403 | Ps. | 63,841 | ||||
J. Intangible assets | ||||||||
Goodwill | 23,467 | 26,346 | ||||||
Organization and development expenses | 430,648 | 545,978 | ||||||
Ps. | 454,115 | Ps. | 572,324 | |||||
K. Unallocated items | 4,844 | 27,239 | ||||||
L. Other Assets | 52,791 | 37,367 | ||||||
Total Assets | Ps. | 35,708,063 | Ps. | 27,602,366 | ||||
F-4
Table of Contents
As of December 31, 2010 and 2009
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||
2010 | 2009 | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
M. Deposits | ||||||||
Non-financial public sector | Ps. | 874,201 | Ps. | 1,377,236 | ||||
Financial sector | 9,934 | 228,480 | ||||||
Non-financial private sector and residents abroad | 21,338,629 | 15,433,650 | ||||||
Current accounts | 5,466,532 | 3,631,399 | ||||||
Saving accounts | 6,356,877 | 4,765,626 | ||||||
Time deposits | 8,975,889 | 6,727,792 | ||||||
Investment accounts | 156,935 | 109 | ||||||
Other | 306,139 | 248,247 | ||||||
Accrued interest and quotation differences payable | 76,257 | 60,477 | ||||||
Ps. | 22,222,764 | Ps. | 17,039,366 | |||||
N. Other liabilities resulting from financial brokerage | ||||||||
Argentine Central Bank | 2,105 | 3,215 | ||||||
Other | 2,105 | 3,215 | ||||||
Banks and international entities | 646,745 | 545,022 | ||||||
Unsubordinated negotiable obligations | 775,863 | 1,539,754 | ||||||
Amounts payable for spot and forward purchases to be settled | 950,453 | 618,375 | ||||||
Securities to be delivered under spot and forward sales to be settled | 229,684 | 175,655 | ||||||
Loans from domestic financial institutions | 613,197 | 251,481 | ||||||
Interbank loans (call money loans received) | — | 70,000 | ||||||
Other loans from domestic financial institutions | 610,022 | 179,701 | ||||||
Accrued interest payable | 3,175 | 1,780 | ||||||
Balances from forward transactions without delivery of underlying asset to be settled | 11,085 | 8,060 | ||||||
Other | 4,358,049 | 2,934,951 | ||||||
Accrued interest and quotation differences payable | 20,890 | 42,924 | ||||||
Ps. | 7,608,071 | Ps. | 6,119,437 | |||||
O. Miscellaneous liabilities | ||||||||
Dividends payable | 20,000 | 17,000 | ||||||
Directors’ and Syndics’ fees | 9,672 | 7,071 | ||||||
Other | 879,957 | 554,628 | ||||||
Adjustments and accrued interests | 3 | — | ||||||
Ps. | 909,632 | Ps. | 578,699 | |||||
P. Provisions | 698,244 | 255,922 | ||||||
Q. Subordinated negotiable obligations | 1,253,027 | 1,137,447 | ||||||
R. Unallocated items | 24,456 | 7,393 | ||||||
S. Other Liabilities | 140,158 | 122,994 | ||||||
T. Non-controlling interests | 382,211 | 288,569 | ||||||
Total Liabilities | Ps. | 33,238,563 | Ps. | 25,549,827 | ||||
SHAREHOLDERS’ EQUITY | 2,469,500 | 2,052,539 | ||||||
Total Liabilities and Shareholders’ Equity | Ps. | 35,708,063 | Ps. | 27,602,366 | ||||
F-5
Table of Contents
For the fiscal years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
A. Financial income | ||||||||||||
Interest on cash and due from banks | Ps. | 746 | Ps. | 638 | Ps. | 8,765 | ||||||
Interest on loans granted to the financial sector | 8,542 | 4,819 | 3,896 | |||||||||
Interest on overdrafts | 186,443 | 191,791 | 182,804 | |||||||||
Interest on promissory notes | 498,436 | 400,898 | 440,490 | |||||||||
Interest on mortgage loans | 103,888 | 118,474 | 126,543 | |||||||||
Interest on pledge loans | 11,535 | 11,305 | 14,998 | |||||||||
Interest on credit card loans | 1,143,592 | 837,484 | 656,477 | |||||||||
Interest on financial leases | 63,749 | 82,458 | 82,166 | |||||||||
Interest on other loans | 981,709 | 436,759 | 317,501 | |||||||||
Interest on other receivables resulting from financial brokerage | 15,438 | 23,255 | 33,994 | |||||||||
Net income from government and corporate securities | 409,165 | 559,099 | 238,098 | |||||||||
Income from secured loans — Decree No. 1387/01 | 3,608 | 11,460 | 59,851 | |||||||||
Consumer price index adjustment (CER) | 5,331 | 24,429 | 123,948 | |||||||||
Exchange rate differences on foreign currency | 76,296 | 127,454 | 77,898 | |||||||||
Other | 107,648 | 175,314 | 191,922 | |||||||||
Ps. | 3,616,126 | Ps. | 3,005,637 | Ps. | 2,559,351 | |||||||
B. Financial expenses | ||||||||||||
Interest on current account deposits | 5,476 | 12,852 | 21,641 | |||||||||
Interest on savings account deposits | 5,442 | 3,722 | 3,446 | |||||||||
Interest on time deposits | 748,205 | 858,468 | 757,699 | |||||||||
Interest on interbank loans received (call money loans) | 6,158 | 3,702 | 5,696 | |||||||||
Interest on financing from the financial sector | 6,525 | 1,276 | 774 | |||||||||
Interest on other liabilities resulting from financial brokerage | 165,604 | 231,972 | 297,026 | |||||||||
Interest on subordinated obligations | 137,788 | 125,343 | 101,424 | |||||||||
Other interest | 6,367 | 2,882 | 3,313 | |||||||||
Consumer price index adjustment | 59 | 345 | 9,249 | |||||||||
Contributions made to Deposit Insurance Fund | 31,839 | 26,030 | 23,555 | |||||||||
Other | 299,218 | 193,867 | 197,196 | |||||||||
Ps. | 1,412,681 | Ps. | 1,460,459 | Ps. | 1,421,019 | |||||||
C. Gross brokerage margin | 2,203,445 | 1,545,178 | 1,138,332 | |||||||||
Loan loss provisions | 551,524 | 639,505 | 395,389 | |||||||||
D. Income from services | ||||||||||||
In relation to lending transactions | 660,987 | 456,466 | 379,752 | |||||||||
In relation to borrowing transactions | 543,309 | 440,633 | 370,181 | |||||||||
Other commissions | 42,152 | 26,781 | 22,415 | |||||||||
Other | 1,268,486 | 902,903 | 799,800 | |||||||||
Ps. | 2,514,934 | Ps. | 1,826,783 | Ps. | 1,572,148 | |||||||
E. Expenses for services | ||||||||||||
Commissions | 291,701 | 197,714 | 164,780 | |||||||||
Other | 441,356 | 318,149 | 219,500 | |||||||||
Ps. | 733,057 | Ps. | 515,863 | Ps. | 384,280 |
F-6
Table of Contents
For the fiscal years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
F. Administrative expenses | ||||||||||||
Personnel expenses | 1,602,711 | 1,119,084 | 966,213 | |||||||||
Directors’ and syndics’ fees | 11,402 | 8,563 | 8,153 | |||||||||
Other fees | 99,702 | 70,144 | 56,938 | |||||||||
Advertising and publicity | 189,596 | 127,836 | 146,496 | |||||||||
Taxes | 190,722 | 139,327 | 103,998 | |||||||||
Depreciation of bank premises and equipment | 76,899 | 73,904 | 61,910 | |||||||||
Amortization of organization expenses | 63,132 | 45,908 | 37,950 | |||||||||
Other operating expenses | 373,641 | 280,104 | 249,219 | |||||||||
Other | 237,509 | 164,259 | 150,201 | |||||||||
Ps. | 2,845,314 | Ps. | 2,029,129 | Ps. | 1,781,078 | |||||||
Net Income from financial brokerage | Ps. | 588,484 | Ps. | 187,464 | Ps. | 149,733 | ||||||
G. Non-controlling interests result | Ps. | (104,333 | ) | Ps. | (46,512 | ) | Ps. | (35,812 | ) | |||
H. Miscellaneous income | ||||||||||||
Net lncome from equity investments | 62,054 | 11,347 | 56,764 | |||||||||
Default interests | 56,193 | 37,243 | 4,429 | |||||||||
Loans recovered and allowances reversed | 154,328 | 48,347 | 103,992 | |||||||||
Other | 474,262 | 502,346 | 333,646 | |||||||||
Consumer price index adjustment (CER) | 45 | 78 | 28 | |||||||||
Ps. | 746,882 | Ps. | 599,361 | Ps. | 498,859 | |||||||
I. Miscellaneous losses | ||||||||||||
Default interests and charges in favor of the Argentine Central Bank | 58 | 72 | 17 | |||||||||
Loan loss provisions for miscellaneous receivables and other provisions | 102,387 | 109,296 | 161,703 | |||||||||
Amortization of differences arising from court resolutions | 280,946 | 109,310 | 39,545 | |||||||||
Depreciation and losses from miscellaneous assets | 1,347 | 1,708 | 1,405 | |||||||||
Amortization of goodwill | 11,330 | 11,457 | 20,462 | |||||||||
Other | 167,832 | 123,168 | 138,784 | |||||||||
Consumer price index adjustment | 41 | 35 | 31 | |||||||||
Ps. | 563,941 | Ps. | 355,046 | Ps. | 361,947 | |||||||
�� | ||||||||||||
Net Income before tax | 667,092 | 385,267 | 250,833 | |||||||||
J. Income tax | Ps. | 258,191 | Ps. | 155,992 | Ps. | 74,014 | ||||||
Net Income for the fiscal year | Ps. | 408,901 | Ps. | 229,275 | Ps. | 176,819 | ||||||
Net Income per common share (basic and assuming full dilution) in Argentine Pesos | 0.329 | 0.185 | 0.142 |
F-7
Table of Contents
For the fiscal years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Cash Flow from operating activities: | ||||||||||||
Net Income for the year | Ps. | 408,901 | Ps. | 229,275 | Ps. | 176,819 | ||||||
Adjustments to reconcile net income to net cash from operating activities: | ||||||||||||
Depreciation of bank premises and equipment and miscellaneous assets | 77,824 | 74,856 | 63,309 | |||||||||
Amortization of intangible assets | 355,408 | 166,675 | 97,957 | |||||||||
Increase in allowances for loan and other losses, net of reversals | 346,657 | 487,636 | 335,658 | |||||||||
Equity gain of unconsolidated subsidiaries | (62,054 | ) | (11,347 | ) | (56,764 | ) | ||||||
Gain on sale of premises and equipment | (5,184 | ) | (13,997 | ) | (695 | ) | ||||||
Consumer price index adjustment (CER/CVS) | 14,977 | 6,482 | (113,226 | ) | ||||||||
Unrealized foreign exchange loss | (270,210 | ) | (420,052 | ) | (229,426 | ) | ||||||
Decrease in government securities | 327,802 | 1,120,852 | 802,604 | |||||||||
Increase in other assets | (98,009 | ) | (37,908 | ) | (122,938 | ) | ||||||
Decrease in other liabilities | (223,912 | ) | (137,712 | ) | (101,284 | ) | ||||||
Net cash provided by operating activities | Ps. | 872,200 | Ps. | 1,464,760 | Ps. | 852,014 | ||||||
Cash Flow from investing activities: | ||||||||||||
Payment for the CFA acquisitions net of cash acquired | (221,729 | ) | — | — | ||||||||
(Increase) / Decrease in loans, net | (4,539,425 | ) | (1,185,582 | ) | 1,501,309 | |||||||
Decrease of available for sales securities | 2,376,489 | — | 36,548 | |||||||||
Sales of investments in other companies | 846 | — | 10,421 | |||||||||
Increase in equity investments in other companies | — | (7,231 | ) | (5,063 | ) | |||||||
Increase in deposits at the Argentine Central Bank | (62,431 | ) | (72,188 | ) | (76,838 | ) | ||||||
Additions to bank premises and equipment, miscellaneous, and intangible assets | (391,080 | ) | (282,553 | ) | (403,085 | ) | ||||||
Proceeds from sales of premises and equipment | 24,190 | 21,551 | 30,337 | |||||||||
Net cash (used in) / provided by investing activities | Ps. | (2,813,140 | ) | Ps. | (1,526,003 | ) | Ps. | 1,093,629 | ||||
Cash Flow from financing activities: | ||||||||||||
Cash dividends paid to Non-controlling interests | (10,877 | ) | (10,728 | ) | (1,404 | ) | ||||||
Increase / (Decrease) in deposits, net | 4,180,854 | 1,838,725 | (57,029 | ) | ||||||||
Borrowings under credit facilities — long-term | 460,280 | 197,677 | 269,498 | |||||||||
Payments on credit facilities — long-term | (1,452,817 | ) | (778,594 | ) | (743,476 | ) | ||||||
Increase / (Decrease) in short-term borrowings, net | 456,209 | (319,911 | ) | (156,579 | ) | |||||||
Increase / (Decrease) in repurchase agreements | 210,987 | (409,314 | ) | (376,645 | ) | |||||||
Net cash used in financing activities | Ps. | 3,844,636 | Ps. | 517,855 | Ps. | (1,065,635 | ) |
F-8
Table of Contents
For the fiscal years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Increase in cash and cash equivalents, net | Ps. | 1,903,696 | Ps. | 456,612 | Ps. | 880,008 | ||||||
Cash and cash equivalents at the beginning of the year | 5,428,730 | 4,795,383 | 3,766,207 | |||||||||
Effect of exchange rate changes on cash and cash equivalents | 111,091 | 176,735 | 149,168 | |||||||||
Cash and cash equivalents at the end of the year | Ps. | 7,443,517 | Ps. | 5,428,730 | Ps. | 4,795,383 | ||||||
Supplemental disclosures relative to cash flows: | ||||||||||||
Interest paid | Ps. | 1,084,707 | Ps. | 1,285,145 | Ps. | 1,227,389 | ||||||
Income tax paid | Ps. | 98,278 | Ps. | 124,653 | Ps. | 64,914 | ||||||
Minimum Presumed Income Tax (*) | Ps. | 52,947 | Ps. | 35,501 | Ps. | 19,767 | ||||||
Non-Cash Investing and financing activities | ||||||||||||
Trust Interest | Ps. | — | Ps. | 40,998 | Ps. | 159,376 | ||||||
Asset’s Exchange Transactions | Ps. | — | Ps. | 1,333,647 | Ps. | — |
(*) | The MPIT is calculated based on assets and can be credited against future income tax. |
F-9
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
Inflation | ||||||||||||||||||||||||||||
adjustments to | (Accumulated | |||||||||||||||||||||||||||
Capital Stock | deficit) / | Total | ||||||||||||||||||||||||||
Capital | Paid in | and Paid in | Profit reserves | Retained | Shareholders’ | |||||||||||||||||||||||
Stock | Capital | Capital | Legal | Other | earnings | Equity | ||||||||||||||||||||||
Balance at December 31, 2007 | Ps. | 1,241,407 | Ps. | 606 | Ps. | 278,131 | Ps. | 34,855 | Ps. | 53,469 | Ps. | 46,037 | Ps. | 1,654,505 | ||||||||||||||
Distribution of retained earnings by the shareholders’ meeting on April 29, 2008 | ||||||||||||||||||||||||||||
Legal Reserve | — | — | — | 2,302 | (2,302 | ) | — | |||||||||||||||||||||
Discretionary Reserve | — | — | — | — | 43,735 | (43,735 | ) | — | ||||||||||||||||||||
Valuation Differences | — | 14,421 | — | 14,421 | ||||||||||||||||||||||||
Net Income for the year | — | — | — | — | — | 176,819 | 176,819 | |||||||||||||||||||||
Balance at December 31, 2008 | Ps. | 1,241,407 | Ps. | 606 | Ps. | 278,131 | Ps. | 37,157 | Ps. | 111,625 | 176,819 | 1,845,745 | ||||||||||||||||
Distribution of retained earnings by the shareholders’ meeting on April 28, 2009 | ||||||||||||||||||||||||||||
Legal Reserve | — | — | — | 8,841 | (8,841 | ) | — | |||||||||||||||||||||
Discretionary Reserve | — | — | — | — | 167,978 | (167,978 | ) | — | ||||||||||||||||||||
Valuation Differences | — | (22,481 | ) | — | (22,481 | ) | ||||||||||||||||||||||
Net Income for the year | — | — | — | — | 229,275 | 229,275 | ||||||||||||||||||||||
Balance at December 31, 2009 | Ps. | 1,241,407 | Ps. | 606 | Ps. | 278,131 | Ps. | 45,998 | Ps. | 257,122 | 229,275 | 2,052,539 | ||||||||||||||||
Distribution of retained earnings by the shareholders’ meeting on April 14, 2010 | ||||||||||||||||||||||||||||
Legal Reserve | — | — | — | 11,464 | (11,464 | ) | — | |||||||||||||||||||||
Discretionary Reserve | — | — | — | — | 217,811 | (217,811 | ) | — | ||||||||||||||||||||
Valuation Differences | — | 8,060 | — | 8,060 | ||||||||||||||||||||||||
Net Income for the year | — | — | — | — | — | 408,901 | 408,901 | |||||||||||||||||||||
Balance at December 31, 2010 | Ps. | 1,241,407 | Ps. | 606 | Ps. | 278,131 | Ps. | 57,462 | Ps. | 482,993 | 408,901 | 2,469,500 | ||||||||||||||||
F-10
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||
Issuing Company | 2010 | 2009 | ||||||
Grupo Financiero Galicia S.A. | ||||||||
Galval Agente de Valores S.A. | 100.00 | % | 100.00 | % | ||||
GV Mandataria de Valores S.A. | 100.00 | % | 100.00 | % | ||||
Net Investment S.A. | 99,36 | % | 99.34 | % | ||||
Galicia Warrants S.A. | 99.36 | % | 99.34 | % | ||||
Sudamericana Holding S.A. | 99.36 | % | 99.34 | % | ||||
Banco de Galicia y Buenos Aires S.A. | 94.84 | % | 94.71 | % | ||||
Banco Galicia Uruguay S.A. (In Liquidation) | 94.84 | % | 94.71 | % | ||||
Tarjetas Regionales S.A. | 94.84 | % | 94.71 | % | ||||
Galicia Administradora de Fondos S.A.Sociedad Gerente de Fondos Comunes de Inversión | 94.84 | % | 94.71 | % | ||||
Galicia (Cayman) Ltd. | 94.84 | % | 94.71 | % | ||||
Tarjetas del Mar S.A. | 94.84 | % | 94.70 | % | ||||
Compañía Financiera Argentina S.A. | 94.84 | % | — | |||||
Cobranzas y Servicios S.A. | 94.84 | % | — | |||||
Procesadora Regional S.A. | 94.84 | % | — | |||||
Galicia Valores S.A. Sociedad de Bolsa | 94.83 | % | 94.70 | % | ||||
Tarjeta Naranja S.A. | 75.87 | % | 75.76 | % | ||||
Cobranzas Regionales S.A. | 73.54 | % | 73.43 | % | ||||
Tarjetas Cuyanas S.A. | 56.90 | % | 56.82 | % | ||||
Tarjeta Naranja Dominicana S.A. | 37.94 | % | 37.88 | % | ||||
Galicia Factoring y Leasing S.A. ( In Liquidation ) | — | 94.69 | % |
F-11
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
F-12
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
F-13
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
F-14
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(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-15
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
F-16
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
F-17
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||
2010 | 2009 | |||||||
Peso balances | Ps. | 2,841,388 | Ps. | 1,985,771 | ||||
Foreign currency balances | 1,903,774 | 1,715,157 |
December 31, | ||||||||
2010 | 2009 | |||||||
Funds and securities pledged under various arrangements | Ps. | 943,830 | Ps. | 1,043,398 | ||||
Shares on equity investments (*) | 5,250 | 5,250 | ||||||
Deposits in the Argentine Central Bank, restricted under Argentine Central Bank regulations | 2,402 | 3,668 | ||||||
Loans pledged and real property granted as collateral-Banco Galicia Uruguay S.A. (**) | — | 3,857 | ||||||
Loans granted as collateral(***) | 85,147 | 199,801 | ||||||
Total | Ps. | 1,036,629 | Ps. | 1,255,974 | ||||
(*) | 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. | |
The Bank, as a shareholder of Aguas Cordobesas S. A. and proportionally to its 10.833% interest, is jointly responsible for the contractual obligations arising from the concession contract during the entire term thereof. Should any of the other shareholders fail to comply with the commitments arising from their joint responsibility, the Bank may be forced to assume the unfulfilled commitment by the grantor, but only in the proportion and to the extent of the interest held by the Bank. | ||
(**) | 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. Galicia Uruguay S.A. wholly repaid in advance the remaining balance of the debt restructuring plan and therefore and having fulfilled its obligations, its shareholders have resolved, at the Shareholders’ Meeting held on June 30, 2010, to voluntarily dissolve and liquidate the company. | |
(***) | Securities granted as collateral for lines of credit provided by the International Finance Corporation (“IFC”). The Bank used Bonar 2015 to collateralized Ps.55,075 IFC lines of credit at December 31, 2010. At December 2009, the Bank used BODEN 2012 to collateralized Ps.70,983 of IFC lines of credit. |
F-18
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||
2010 | 2009 | |||||||
Government Securities | ||||||||
In investment accounts: | ||||||||
Peso-denominated Argentine Bonds Private Badlar + 275 bp due in 2015 | 133,756 | — | ||||||
Total in investment accounts | Ps. | 133,756 | Ps. | — | ||||
In special investment accounts: | ||||||||
Argentine Central Bank Notes | — | 43,350 | ||||||
Total in special investment accounts | Ps. | — | Ps. | 43,350 | ||||
For trading purposes: | ||||||||
U.S. dollar-denominated National Government Bonds Libor due in 2015 | 8,303 | — | ||||||
National Government Bonds in U.S. dollars due in 2012 | 4,800 | — | ||||||
U.S. dollar-denominated Argentine Bonds 7% due in 2011-BONAR V | 4,570 | 5,174 | ||||||
Peso-denominated Argentine Bonds Badlar Privada + 300 bp due in 2015 | 13,404 | 39,014 | ||||||
Other Government Bonds | 25,023 | 60,354 | ||||||
Other | 12,131 | 9,644 | ||||||
Total trading purposes | Ps. | 68,231 | Ps. | 114,186 | ||||
From repo transactions with the Argentine Central Bank: | ||||||||
U.S. dollar-denominated National Government Bonds Libor 7% due in 2013 | — | 152,650 | ||||||
Total from repo transactions with the Argentine Central Bank | Ps. | — | Ps. | 152,650 | ||||
Without quotation: | ||||||||
National Government Bonds in U.S. dollars due in 2012 | — | 1,032,412 | ||||||
Cordoba Province Government’s Bonds | — | 3.833 | ||||||
Peso-denominated Argentine Bonds Badlar Privada + 300 bp due in 2015 | — | 323,744 | ||||||
Discount Bonds due in 2033 and GDP-Linked Negotiable Securities | — | 621,983 | ||||||
Total Without quotation | Ps. | — | Ps. | 1,981,972 | ||||
Securities issued by the Argentine Central Bank: | ||||||||
For Repo Transaction (*) | 180,232 | — | ||||||
Securities with quotation (**) | 363,050 | 651,050 | ||||||
Securities without quotation (***) | 1,522,441 | 964,028 | ||||||
Total Securities issued by the Argentine Central Bank | Ps. | 2,065,723 | Ps. | 1,615,078 | ||||
Total government securities | Ps. | 2,267,710 | Ps. | 3,907,236 | ||||
Corporate Securities: | ||||||||
Shares | 68 | 53 | ||||||
Marketable Negotiable obligations | 4,484 | 5,613 | ||||||
Negotiable Mutual Funds | 5,750 | 7,505 | ||||||
Total corporate securities | Ps. | 10,302 | Ps. | 13,171 | ||||
Total government and corporate securities | Ps. | 2,278,012 | Ps. | 3,920,407 | ||||
F-19
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
(*) | The Securites for repo transactions correspond to Compañía Financiera Argentina S.A. | |
(**) | Includes Ps.266,635 of Compañía Financiera Argentina S.A. | |
(***) | Includes Ps.4,920 of Compañía Financiera Argentina S.A. |
Overdrafts— short-term obligations drawn on by customers through overdrafts. |
Promissory Notes— endorsed promissory notes, discounted and purchased bills and factored loans. |
Mortgage loans— loans to purchase or improve real estate and collateralized by such real estate or commercial loans secured by real estate. |
Pledge loans— loans where collateral is pledged as an integral part of the loan document. |
Credit card loans— loans to credit card holders. |
Others— includes mainly short-term placements in foreign banks. |
F-20
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||
2010 | 2009 | |||||||
Non-financial public sector | Ps. | 24,565 | Ps. | 25,416 | ||||
Financial sector (Argentine) | 80,633 | 25,352 | ||||||
Non-financial private sector and residents abroad | 22,287,056 | 14,233,579 | ||||||
• With preferred guarantees | 1,257,111 | 1,142,199 | ||||||
• With other guarantees | 3,694,518 | 2,450,075 | ||||||
• Unsecured (*) | 17,335,427 | 10,641,305 | ||||||
Subtotal | 22,392,254 | 14,284,347 | ||||||
Allowance for loan losses (See Note 7) | (1,038,473 | ) | (806,446 | ) | ||||
Total | Ps. | 21,353,781 | Ps. | 13,477,901 | ||||
(*) | As of December 31, 2010 includes Ps. 1,378,363 of Compañía Financiera Argentina S.A. |
December 31, | ||||||||
2010 | 2009 | |||||||
Consumer | 54.68 | % | 47.54 | % | ||||
Manufacturing | 13.47 | % | 14.61 | % | ||||
Primary Products | 11.03 | % | 13.90 | % | ||||
Wholesale Trade | 6.85 | % | 6.53 | % | ||||
Services | 6.63 | % | 7.59 | % | ||||
Retail Trade | 4.05 | % | 5.04 | % | ||||
Financial Sector | 1.42 | % | 3.30 | % | ||||
Construction | 1.42 | % | 1.24 | % |
December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Balance at beginning of year | Ps. | 806,446 | Ps. | 526,801 | Ps. | 428,607 | ||||||
Provision charged to income | 523,588 | 625,897 | 384,606 | |||||||||
Recoveries | (8 | ) | (5,424 | ) | (6,510 | ) | ||||||
Foreign exchange effect and other adjustments (*) | 195,776 | 13,693 | 9,289 | |||||||||
Loans charged off | (487,329 | ) | (354,521 | ) | (289,191 | ) | ||||||
Balance at end of year | Ps. | 1,038,473 | Ps. | 806,446 | Ps. | 526,801 | ||||||
(*) | Includes Ps. 185,381 of allowances as of the acquisition date of Compañia Financiera Argentina S.A. |
F-21
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Provisions charged to income | Ps. | 523,588 | Ps. | 625,897 | Ps. | 384,606 | ||||||
Direct charge-offs | 17,079 | 10,501 | 7,307 | |||||||||
Other receivable losses | 9,921 | 3,051 | 2,545 | |||||||||
Financial leases | 936 | 56 | 931 | |||||||||
Ps. | 551,524 | Ps. | 639,505 | Ps. | 395,389 | |||||||
December 31, | ||||||||
2010 | 2009 | |||||||
Preferred guarantees, including deposits with | ||||||||
The Argentine Central Bank | Ps. | 420,328 | Ps. | 516,001 | ||||
Other guarantees | 604 | 90,192 | ||||||
Unsecured | 3,036,864 | 2,759,744 | ||||||
Less: Allowance for doubtful accounts | (131,806 | ) | (30,570 | ) | ||||
Ps. | 3,325,990 | Ps. | 3,335,367 | |||||
December 31, | ||||||||
2010 | 2009 | |||||||
Mutual funds | Ps. | 147,009 | Ps. | 126,936 | ||||
Galtrust I | 620,501 | 584,111 | ||||||
Other financial trust participation certificates | 455,874 | 941,542 | ||||||
Accrued commissions | 38,418 | 28,896 | ||||||
Others | 537,511 | 446,506 | ||||||
Ps. | 1,799,313 | Ps. | 2,127,991 | |||||
F-22
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||
2010 | 2009 | |||||||
In Financial Institutions, complementary and authorized activities | ||||||||
Banelco S.A. | Ps. | 9,569 | Ps. | 8,681 | ||||
Visa Argentina S.A. | 3,000 | 3,169 | ||||||
Mercado de Valores de Buenos Aires S.A. | 8,138 | 8,143 | ||||||
Banco Latinoamericano de Exportaciones S.A. | 1,971 | 1,882 | ||||||
Others | 790 | 852 | ||||||
Total equity investments in Financial Institutions, complementary and authorized activities | Ps. | 23,468 | Ps. | 22,727 | ||||
In Non-financial Institutions | ||||||||
Electrigal S.A. | 5,455 | 5,455 | ||||||
A.E.C. S.A. | 26,703 | 21,379 | ||||||
Aguas Cordobesas S.A. | 8,911 | 8,911 | ||||||
Other | 1,574 | 1,383 | ||||||
Total equity investments in non-financial institutions | Ps. | 42,643 | Ps. | 37,128 | ||||
Allowances | Ps. | (13,263 | ) | Ps. | (5,960 | ) | ||
Total Equity investments | Ps. | 52,848 | Ps. | 53,895 | ||||
December 31, | ||||||||
2010 | 2009 | |||||||
Land and buildings | Ps. | 973,556 | Ps. | 927,100 | ||||
Furniture and fittings | 227,155 | 197,563 | ||||||
Machinery and equipment | 423,111 | 345,273 | ||||||
Vehicles | 8,528 | 2,592 | ||||||
Others | 4,444 | 4,671 | ||||||
Accumulated depreciation | (688,727 | ) | (578,878 | ) | ||||
Ps. | 948,067 | Ps. | 898,321 | |||||
F-23
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||
2010 | 2009 | |||||||
Goodwill, net of accumulated amortization of Ps.98,767 and Ps.87,700, respectively | Ps. | 23,467 | Ps. | 26,346 | ||||
Organization and development expenses, net of accumulated amortization of Ps.336,276 and Ps.202,214, respectively | 430,648 | 286,925 | ||||||
Legal actions related to the payment of deposits (“amparo claims”), net of accumulated amortization of Ps.859,638 and Ps.578,692, respectively (see Note 2.10) | — | 259,053 | ||||||
Ps. | 454,115 | Ps. | 572,324 | |||||
December 31, | ||||||||
2010 | 2009 | |||||||
Banking | 19,903 | 26,346 | ||||||
Data Processing | 3,564 | — | ||||||
Ps. | 23,467 | Ps. | 26,346 | |||||
December 31, | ||||||||
2010 | 2009 | |||||||
Construction in progress | Ps. | 5,423 | Ps. | 1,370 | ||||
Deposits on fixed asset purchases | 2,848 | 831 | ||||||
Stationery and supplies | 12,254 | 15,363 | ||||||
Real estate held for sale | 3,584 | 5,561 | ||||||
Assets under leasing agreements | 19,157 | 19,503 | ||||||
Others | 38,137 | 21,213 | ||||||
Ps. | 81,403 | Ps. | 63,841 | |||||
F-24
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||
2010 | 2009 | |||||||
Allowances against asset accounts: | ||||||||
Other receivables resulting from financial brokerage, for collection risk (a) | 131,806 | 30,570 | ||||||
Assets under financial leases (a) | 5,469 | 6,070 | ||||||
Equity investments in other companies (b) | 13,263 | 5,960 | ||||||
Miscellaneous receivables, for collection risk (a) | 26,025 | 28,655 | ||||||
Reserves for contingencies: | ||||||||
For severance payments (c) | 12,139 | 5,892 | ||||||
Litigations (d) | 84,051 | 57,042 | ||||||
Other contingencies (e) | 89,802 | 148,352 | ||||||
Sundry liabilities arising from credit card activities (f) | 46,493 | 44,493 | ||||||
Other commitments (g) | 125 | 143 | ||||||
Negative Goodwill (h) | 465,634 | — | ||||||
Total reserves for contingencies | Ps. | 698,244 | Ps. | 255,922 | ||||
(a) | Based upon an assessment of debtors’ performance, the economic and financial situation and the guarantees collateralizing their respective transactions. Includes Ps.98,638 of valuation allowances to adjust certificates of participation held in Galtrust I to its fair value. | |
(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) | At the date of these consolidated financial statements, there are several review and assessment processes ongoing, at different progress stages, initiated by the provincial and Autonomous City of Buenos Aires’ Tax Authorities related to the turnover tax, mainly corresponding to fiscal year 2002, and basically in connection with the Compensatory Bond set forth by the National Government in order to compensate financial institutions for the losses resulting from the asymmetric pesification of loans and deposits. |
F-25
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
(f) | Reserves for a guarantee of credit-cards receivable and for the estimated liability for the insurance of the payment of credit-cards balance in the event of the death of the credit-card holders. |
(g) | Represents contingent commitments in connection with customers classified in categories other than the “normal” categories under Argentine Banking GAAP. | |
(h) | The Board of Directors of the Argentine Central Bank through Resolution No. 124 dated June 7, 2010, authorized the acquisition of 95% of stocks of Compañía Financiera Argentina S.A., Cobranzas y Servicios S.A. and Procesadora Regional S.A. Also, said Resolution authorized subsidiary company Tarjetas Regionales S.A. to acquire the remaining 5% of said companies’ stocks. |
F-26
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
13. | Other Liabilities Resulting from Financial Brokerage- Banks and International Entities, and Loans from Domestic Financial Institutions |
December 31, | ||||||||
2010 | 2009 | |||||||
Description | ||||||||
Bank and International Entities | ||||||||
Contractual long-term Liabilities | ||||||||
Floating Rate Bank Loans 2010 | Ps. | — | Ps. | 2,024 | ||||
Floating Rate Bank Loans 2014 | — | 94,902 | ||||||
Floating Rate Bank Loans 2019 | 8,232 | 7,364 | ||||||
Internacional Finance Corp. (I.F.C.) | 229,540 | 260,771 | ||||||
Total long-term liabilities | Ps. | 237,772 | Ps. | 365,061 | ||||
Contractual short-term liabilities: | ||||||||
Other lines from foreign banks | 408,973 | 179,961 | ||||||
Total short-term liabilities | Ps. | 408,973 | Ps. | 179,961 | ||||
Total Banks and International Entities | Ps. | 646,745 | Ps. | 545,022 | ||||
Domestic and Financial Institutions | ||||||||
Contractual long-term liabilities: | ||||||||
BICE (Banco de Inversión y Comercio Exterior) | 23,709 | — | ||||||
Other lines from domestic banks | 434,064 | 164,612 | ||||||
Total long-term liabilities | Ps. | 457,773 | Ps. | 164,612 | ||||
Contractual short-term liabilities: | ||||||||
Other lines from credit from domestic banks | 155,424 | 86,869 | ||||||
Total short-term liabilities | Ps. | 155,424 | Ps. | 86,869 | ||||
Total Domestic and Financial Institutions | Ps. | 613,197 | Ps. | 251,481 | ||||
TOTAL | Ps. | 1,259,942 | Ps. | 796,503 | ||||
F-27
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
Contractual long-term Liabilities | ||||
2011 | 241,201 | |||
2012 | 286,237 | |||
2013 | 111,334 | |||
2014 | 30,137 | |||
2015 | 18,405 | |||
Thereafter | 8,231 | |||
Ps. | 695,545 | |||
Annual | As of December 31, | |||||||||||||||
Maturity | Interest Rate | 2010 | 2009 | |||||||||||||
Negotiable Obligations (1) | ||||||||||||||||
Long-term liabilities: | ||||||||||||||||
9% Notes Due 2003 | 2003 | 9,00 | % | 6,652 | 6,352 | |||||||||||
(Semi-annual interest, principal payable at maturity) | ||||||||||||||||
Banco Galicia- Due 2010-Libor + 350 PB | 2010 | 0,00 | % | — | 129,858 | |||||||||||
(Semi-annual interest) | ||||||||||||||||
Banco Galicia- Due 2014 | 2014 | 7,00 | % | — | 736,542 | |||||||||||
(Semi-annual interest) | ||||||||||||||||
Banco Galicia- Subordinated Due 2019 | 2019 | 11,00 | % | 1,253,027 | 1,137,447 | |||||||||||
(Semi-annual interest, principal payable at maturity) | ||||||||||||||||
Tarjetas Naranja S.A. Class IV | 2011 | 15,50 | % | 77,064 | 156,794 | |||||||||||
(Interest fixed,semi-annual interest - principal payable every six months) | ||||||||||||||||
Tarjetas Cuyanas S.A. S. XVIII | 2012 | 12,00 | % | 39,164 | 79,506 | |||||||||||
(Interest fixed,semi-annual interest - principal payable every six months) | ||||||||||||||||
Tarjetas Cuyanas S.A. S. XX | 2010 | — | — | 75,934 | ||||||||||||
(Issued at a discounted base, principal payable at maturity) | ||||||||||||||||
Tarjetas Cuyanas S.A. Class III | 2011 | 6,00 | % | 79,841 | — | |||||||||||
(Issued at a discounted base, principal payable at maturity) | ||||||||||||||||
Tarjetas Naranja S.A. Class IX Serie I | 2010 | — | — | 133,296 | ||||||||||||
(Issued at a discounted base, principal payable at maturity) | ||||||||||||||||
Tarjetas Naranja S.A. Class IX Serie II | 2011 | 12,50 | % | 59,038 | 55,416 | |||||||||||
(Interest fixed,semi-annual interest, principal payable at maturity) |
F-28
Table of Contents
Annual | As of December 31, | |||||||||||||||
Maturity | Interest Rate | 2010 | 2009 | |||||||||||||
Tarjetas Naranja S.A. Class XII | 2011 | 6,10 | % | 139,214 | — | |||||||||||
(Interest fixed,quarterly interest, principal payable at maturity) | ||||||||||||||||
Grupo Financiero Galicia Class I Serie II | 2011 | 12,50 | % | 42,128 | 40,263 | |||||||||||
(Interest fixed,semi-annual interest, principal payable at maturity) | ||||||||||||||||
Grupo Financiero Galicia Class II Serie II | 2012 | 8,00 | % | 70,546 | — | |||||||||||
(Interest fixed,semi-annual interest, principal payable at maturity) | ||||||||||||||||
Grupo Financiero Galicia Class II Serie III | 2013 | 9,00 | % | 106,782 | — | |||||||||||
(Interest fixed,semi-annual interest, principal payable at maturity) | ||||||||||||||||
Total | Ps. | 1,873,456 | 2,551,408 | |||||||||||||
Annual | As of December 31, | |||||||||||||||
Maturity | Interest Rate | 2010 | 2009 | |||||||||||||
Short-term liabilities: | ||||||||||||||||
Tarjeta Naranja Class X | 2011 | Badlar + 275 bp | 48,177 | — | ||||||||||||
(Quarterly interest, principal payable at maturity) | ||||||||||||||||
Tarjeta Naranja Class XI | 2011 | Badlar + 295 bp | 40,919 | — | ||||||||||||
(Quarterly interest, principal payable at maturity) | ||||||||||||||||
Tarjetas Cuyanas S.A. Class I | 2011 | Badlar + 300 bp | 28,854 | — | ||||||||||||
(Quarterly interest, principal payable at maturity) | ||||||||||||||||
Tarjetas Cuyanas S.A. Class II | 2011 | 9,95 | % | 37,484 | — | |||||||||||
(Quarterly interest, principal payable at maturity) | ||||||||||||||||
Grupo Financiero Galicia Serie I | 2010 | — | — | 125,793 | ||||||||||||
(Issued at a discounted base, principal payable at maturity) | ||||||||||||||||
Total | Ps. | 155,434 | 125,793 | |||||||||||||
Total Negotiable Obligations | Ps. | 2,028,890 | 2,677,201 | |||||||||||||
(1) | Only principal, except for Subordinated Obligations which include accrued interest for Ps.64,234 . |
F-29
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
Maturity Long Term | ||||
Past Due (*) | 6,652 | |||
2011 | 427,742 | |||
2012 | 79,253 | |||
2013 | 106,782 | |||
2014 | — | |||
2015 | — | |||
Thereafter | 1,253,027 | |||
1,873,456 | ||||
(*) | Corresponds to past due debt not yet restructured. |
December 31, | ||||||||
2010 | 2009 | |||||||
Assets: | ||||||||
Cash and due from banks | Ps. | 3,131,530 | Ps. | 1,867,910 | ||||
Government and corporate securities | 40,169 | 1,215,571 | ||||||
Loans | 3,103,434 | 2,395,667 | ||||||
Other receivables resulting from financial brokerage | 426,779 | 899,804 | ||||||
Assets under financial leases | 28,018 | 29,147 | ||||||
Equity investments in other companies | 2,046 | 1,939 | ||||||
Miscellaneous receivables | 45,879 | 462,434 | ||||||
Bank premises and equipment | 419 | 738 | ||||||
Miscellaneous assets | 40 | 38 | ||||||
Intangible assets | — | 569 | ||||||
Unallocated items | 45 | 12,572 | ||||||
Other assets | 6 | 70 | ||||||
Total | Ps. | 6,778,365 | Ps. | 6,886,459 | ||||
Liabilities: | ||||||||
Deposits | Ps. | 4,017,664 | Ps. | 3,094,442 | ||||
Other liabilities resulting from financial brokerage | 2,344,487 | 2,827,321 | ||||||
Miscellaneous liabilities | 19,233 | 11,951 | ||||||
Subordinated Negotiable Obligations | 1,253,027 | 1,137,447 | ||||||
Provisions | 13,868 | 11,493 | ||||||
Unallocated items | 472 | 3,078 | ||||||
Other Liabilities | 101 | 86 | ||||||
Total | Ps. | 7,648,852 | Ps. | 7,085,818 | ||||
F-30
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Financial Income | ||||||||||||
Interest on other receivables resulting from financial brokerage: | ||||||||||||
Interest on purchased certificates of deposits | 11,684 | 14,914 | 6,033 | |||||||||
Additional interest on current accounts and special accounts with the Argentine Central Bank | — | — | 12,241 | |||||||||
Advance payment-Leasing | 1,968 | 2,928 | 12,332 | |||||||||
Other | 1,786 | 5,413 | 3,388 | |||||||||
Ps. | 15,438 | Ps. | 23,255 | Ps. | 33,994 | |||||||
Other | ||||||||||||
Premiums on forward purchases of Government securities under repos | 29,584 | 16,114 | 7,013 | |||||||||
Interest on pre-export and export financing | 73,298 | 94,517 | 69,238 | |||||||||
Result from other credits by financial brokerage | 4,543 | 60,550 | 11,076 | |||||||||
Net position of valuation public sector loans | — | 4,106 | 9,157 | |||||||||
Net position of forward transactions in pesos | — | 27 | 95,433 | |||||||||
Other | 223 | — | 5 | |||||||||
Ps. | 107,648 | Ps. | 175,314 | Ps. | 191,922 | |||||||
Financial Expenses | ||||||||||||
Interest on other liabilities resulting from financial brokerage: | ||||||||||||
Interest on negotiable obligations | 92,980 | 157,970 | 187,320 | |||||||||
Interest on other liabilities resulting from financial brokerage from other banks and international entities | 72,624 | 74,002 | 109,706 | |||||||||
Ps. | 165,604 | Ps. | 231,972 | Ps. | 297,026 | |||||||
Other interest | ||||||||||||
Interest for other deposits | 3,702 | 2,860 | 3,301 | |||||||||
Other | 2,665 | 22 | 12 | |||||||||
Ps. | 6,367 | Ps. | 2,882 | Ps. | 3,313 | |||||||
F-31
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Other | ||||||||||||
Premiums on repo transactions | 13,169 | 33,780 | 84,823 | |||||||||
Contributions and taxes on financial income | 236,792 | 135,644 | 112,373 | |||||||||
Net position of forward transactions in pesos | 48,630 | 24,068 | — | |||||||||
Other | 627 | 375 | — | |||||||||
Ps. | 299,218 | Ps. | 193,867 | Ps. | 197,196 | |||||||
Income from services | ||||||||||||
Other | ||||||||||||
Commissions on credit cards | 1,127,881 | 781,367 | 652,040 | |||||||||
Safety rental | 51,248 | 30,221 | 18,003 | |||||||||
Insurance premiums | 337 | 12,671 | 58,901 | |||||||||
Other | 89,020 | 78,644 | 70,856 | |||||||||
Ps. | 1,268,486 | Ps. | 902,903 | Ps. | 799,800 | |||||||
Expenses for services | ||||||||||||
Other | ||||||||||||
Gross revenue taxes | 131,260 | 91,016 | 74,339 | |||||||||
Linked with credit cards | 295,150 | 212,427 | 130,813 | |||||||||
Other | 14,946 | 14,706 | 14,348 | |||||||||
Ps. | 441,356 | Ps. | 318,149 | Ps. | 219,500 | |||||||
Administrative expenses | ||||||||||||
Other operating expenses | ||||||||||||
Rentals | 85,551 | 62,234 | 51,292 | |||||||||
Electricity and communications | 106,439 | 85,850 | 72,712 | |||||||||
Maintenance and repair expenses | 67,274 | 52,134 | 43,841 | |||||||||
Security Services | 75,707 | 50,282 | 42,255 | |||||||||
Other operating expenses | 38,670 | 29,604 | 39,119 | |||||||||
Ps. | 373,641 | Ps. | 280,104 | Ps. | 249,219 | |||||||
Miscellaneous income | ||||||||||||
Other | ||||||||||||
Interest on miscellaneous receivables | 25,375 | 31,076 | 39,382 | |||||||||
Premiums and commissions from insurance business | 388,486 | 333,669 | 276,019 | |||||||||
Waiver for repayment of debt | — | 85,550 | — | |||||||||
Other | 60,401 | 52,051 | 18,245 | |||||||||
Ps. | 474,262 | Ps. | 502,346 | Ps. | 333,646 | |||||||
Miscellaneous losses | ||||||||||||
Other | ||||||||||||
Claims | 3,412 | 2,561 | 1,821 | |||||||||
Commissions and expenses on insurance business | 136,228 | 93,686 | 119,045 | |||||||||
Other | 28,192 | 26,921 | 17,918 | |||||||||
Ps. | 167,832 | Ps. | 123,168 | Ps. | 138,784 | |||||||
F-32
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
F-33
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
Computable Capital as | ||||||||||||
a % of Minimum | ||||||||||||
Minimum Capital | Computable Capital | Capital | ||||||||||
December 31, 2010 | Ps. | 2,007,081 | Ps. | 3,593,930 | 179,06 | |||||||
December 31, 2009 | Ps. | 1,611,504 | Ps. | 2,789,198 | 173,08 |
F-34
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Interest income: | ||||||||||||
Interest and fees on loans (*) | Ps. | 3,174,796 | Ps. | 2,278,655 | Ps. | 2,099,393 | ||||||
Interest and dividends on investment securities: | ||||||||||||
Non taxable interest income | 21,263 | 270,353 | 76,912 | |||||||||
Interest on interest bearing deposits with other banks | 746 | 638 | 8,765 | |||||||||
Interest on other receivables from financial brokerage | 135,620 | 90,186 | 163,420 | |||||||||
Trading account interest, net | 318,121 | 284,837 | 71,515 | |||||||||
Total interest income | 3,650,546 | 2,924,669 | 2,420,005 | |||||||||
Interest expense | ||||||||||||
Interest on deposits | 766,710 | 880,775 | 794,037 | |||||||||
Interest on securities sold under agreements to repurchase | 13,169 | 33,780 | 84,823 | |||||||||
Interest on short-term liabilities from financial intermediation | 77,350 | 67,283 | 82,667 | |||||||||
Interest on long-term liabilities from financial intermediation (*) | 235,985 | 233,477 | 316,141 | |||||||||
Total interest expense | 1,093,214 | 1,215,315 | 1,277,668 | |||||||||
Net interest income | 2,557,332 | 1,709,354 | 1,142,337 | |||||||||
Provision for loan losses, net of reversals | 445,833 | 595,713 | 313,188 | |||||||||
Net interest income after provision for loan losses | 2,111,499 | 1,113,641 | 829,149 | |||||||||
(*) | Includes CER/CVS adjustments. |
F-35
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Non-interest income: | ||||||||||||
Service charges on deposit accounts | Ps. | 323,328 | Ps. | 253,299 | Ps. | 201,653 | ||||||
Credit-card service charges and fees | 981,215 | 704,025 | 548,629 | |||||||||
Other commissions | 1,188,063 | 882,084 | 897,715 | |||||||||
Income from equity in other companies | 62,054 | 11,347 | 56,764 | |||||||||
Premiums and commissions on insurance business | 388,486 | 333,669 | 276,019 | |||||||||
Other | 127,723 | 195,426 | 139,949 | |||||||||
Total non-interest income | Ps. | 3,070,869 | Ps. | 2,379,850 | Ps. | 2,120,729 | ||||||
Non-interest expense: | ||||||||||||
Commissions | 601,797 | 424,847 | 309,808 | |||||||||
Salaries and social security charges | 1,407,961 | 975,767 | 805,197 | |||||||||
Fees and external administrative services | 268,235 | 183,730 | 161,192 | |||||||||
Depreciation of bank premises and equipment | 76,899 | 73,904 | 61,910 | |||||||||
Personnel services | 89,345 | 76,760 | 90,791 | |||||||||
Rentals | 85,551 | 62,234 | 51,292 | |||||||||
Electricity and communications | 106,439 | 85,850 | 72,712 | |||||||||
Advertising and publicity | 189,596 | 127,836 | 146,496 | |||||||||
Taxes | 608,485 | 406,161 | 324,475 | |||||||||
Amortization of organization and development expenses | 63,132 | 45,908 | 37,950 | |||||||||
Maintenance and repair expenses | 67,274 | 52,134 | 43,841 | |||||||||
Commissions and expenses on insurance business | 136,228 | 93,686 | 119,045 | |||||||||
Amortization of “Amparo claims” | 280,946 | 109,310 | 39,545 | |||||||||
Other Provisions and reserves | 102,387 | 109,296 | 161,703 | |||||||||
Other | 326,668 | 234,289 | 237,276 | |||||||||
Total non-interest expense | Ps. | 4,410,943 | Ps. | 3,061,712 | Ps. | 2,663,233 | ||||||
Income before tax expense | 771,425 | 431,779 | 286,645 | |||||||||
Income tax expense | 258,191 | 155,992 | 74,014 | |||||||||
Net Income | Ps. | 513,234 | Ps. | 275,787 | Ps. | 212,631 | ||||||
Less: Net Income attributable to non-controlling interest | 104,333 | 46,512 | 35,812 | |||||||||
Net Income attributable to Controlling interest | Ps. | 408,901 | Ps. | 229,275 | Ps. | 176,819 | ||||||
Net income per Ordinary Share in Argentine Pesos | 0.329 | 0.185 | 0.142 | |||||||||
F-36
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||
2010 | 2009 | |||||||
Assets: | ||||||||
Cash and due from banks | Ps. | 5,657,730 | Ps. | 3,713,335 | ||||
Interest-bearing deposits in other banks | 215,282 | 440,745 | ||||||
Federal funds sold and securities purchased under resale agreements or similar agreements | 240,811 | 178,474 | ||||||
Trading account assets | 2,706,167 | 2,011,860 | ||||||
Investment securities | 2,297,543 | 4,471,928 | ||||||
Loans | 21,861,678 | 14,368,457 | ||||||
Allowances for loan losses | (1,038,473 | ) | (812,354 | ) | ||||
Miscellaneous receivables | 823,602 | 619,944 | ||||||
Bank Premises and Equipment | 948,067 | 898,321 | ||||||
Intangible Assets | 454,115 | 572,234 | ||||||
Other assets | 1,945,243 | 1,540,164 | ||||||
Total assets | Ps. | 36,111,765 | Ps. | 28,003,108 | ||||
Liabilities and Shareholders’ Equity: | ||||||||
Deposits | Ps. | 22,115,956 | Ps. | 16,917,453 | ||||
Short-term borrowing | 719,831 | 392,623 | ||||||
Other liabilities | 273,792 | 313,526 | ||||||
Amounts payable for spot and forward purchases to be settled | 950,453 | 618,375 | ||||||
Other liabilities resulting from financial brokerage | 5,022,761 | 3,489,899 | ||||||
Long-term debt | 2,569,001 | 3,081,081 | ||||||
Miscellaneous Liabilities | 909,632 | 578,699 | ||||||
Contingent liabilities | 698,244 | 255,922 | ||||||
Total Liabilities | 33,259,670 | 25,647,578 | ||||||
Common Stock | 1,241,407 | 1,241,407 | ||||||
Other stockholders’ equity | 1,228,093 | 811,132 | ||||||
Non-controlling Interest | 382,595 | 302,991 | ||||||
Total Shareholders’ Equity | 2,852,095 | 2,355,530 | ||||||
Total Liabilities and Equity | Ps. | 36,111,765 | Ps. | 28,003,108 | ||||
F-37
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
December 31, 2010 | December 31, 2009 | |||||||||||||||||||||||||||||||
Unrealized | Unrealized | |||||||||||||||||||||||||||||||
Carrying value | Gains | Losses | Market value | Carrying value | Gains | Losses | Market value | |||||||||||||||||||||||||
Bonar 2015 Bonds Investments | 642,147 | 198,693 | — | 726,643 | — | — | — | — | ||||||||||||||||||||||||
Boden 2012 Bonds — Compensatory Bond and Hedge Bond | — | — | — | — | 1,906,907 | 830,119 | — | 1,731,089 | ||||||||||||||||||||||||
GalTrust I | 783,761 | 566,115 | — | 783,761 | 584,111 | 193,651 | — | 211,647 | ||||||||||||||||||||||||
Discount Bonds | — | — | — | — | 598,601 | 132,209 | — | 302,124 | ||||||||||||||||||||||||
Bonar 2015 Bonds | — | — | — | — | 323,744 | 85,032 | — | 641,340 | ||||||||||||||||||||||||
Other assets | 871,635 | — | (3,167 | ) | 874,459 | 1,058,565 | 88,347 | (5,018 | ) | 1,030,678 | ||||||||||||||||||||||
TOTAL | Ps. | 2,297,543 | Ps. | 764,808 | Ps. | (3,167 | ) | Ps. | 2,384,863 | Ps. | 4,471,928 | Ps. | 1,329,358 | Ps. | (5,018 | ) | Ps. | 3,916,878 | ||||||||||||||
December 31, 2010 | ||||||||||||||||||||
Maturing | ||||||||||||||||||||
Maturing | after | |||||||||||||||||||
Maturing | after 1 year | 5 years but | Maturing | |||||||||||||||||
Carrying | within | but within 5 | within 10 | after | ||||||||||||||||
Value | 1 year | years | years | 10 years | ||||||||||||||||
Galtrust I | 783,761 | 80,615 | 416,065 | 287,081 | — | |||||||||||||||
Bonar 2015 Bonds Investments | 642,147 | — | 642,147 | — | — | |||||||||||||||
Other assets | 871,635 | 485,464 | 362,737 | 23,434 | — | |||||||||||||||
TOTAL | Ps. | 2,297,543 | 566,079 | 1,420,949 | 310,515 | — | ||||||||||||||
Year ended December 31, | 2010 | 2009 | 2008 | |||||||||
Proceeds from sales | 2,376,489 | — | 36,548 | |||||||||
Gross realized gains | 971,680 | — | 2,090 | |||||||||
Gross realized losses | — | — | — | |||||||||
Net unrealized gains | 408,981 | 1,312,212 | 9,915 | |||||||||
Losses reclasiffied out of OCI | — | — | (156,237 | ) |
F-38
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Total revenues:(*) | ||||||||||||
Republic of Argentina | Ps. | 6,868,807 | Ps. | 5,417,227 | Ps. | 4,582,947 | ||||||
Republic of Uruguay | 8,195 | 14,489 | 47,411 | |||||||||
Grand Cayman Island | 940 | 65 | — | |||||||||
Net income (loss), net of monetary effects allocable to each country: | ||||||||||||
Republic of Argentina | 418,066 | 238,740 | 166,368 | |||||||||
Republic of Uruguay | (8,647 | ) | (7,274 | ) | 10,451 | |||||||
Grand Cayman Island | (518 | ) | (2,191 | ) | — | |||||||
Total assets: | ||||||||||||
Republic of Argentina | 35,538,519 | 27,350,754 | 24,349,404 | |||||||||
Republic of Uruguay | 167,749 | 237,544 | 386,386 | |||||||||
Grand Cayman Island | 1,795 | 14,068 | — | |||||||||
Bank Premises and Equipment | ||||||||||||
Republic of Argentina | 947,648 | 897,583 | 866,179 | |||||||||
Republic of Uruguay | 419 | 738 | 5,090 | |||||||||
Miscellaneous assets | ||||||||||||
Republic of Argentina | 81,363 | 63,803 | 78,326 | |||||||||
Republic of Uruguay | 40 | 38 | 297 | |||||||||
Goodwill | ||||||||||||
Republic of Argentina | 23,467 | 26,346 | 37,804 | |||||||||
Other intangible assets | ||||||||||||
Republic of Argentina | 430,648 | 545,409 | 528,115 | |||||||||
Republic of Uruguay | — | 569 | 1,060 | |||||||||
Geographical segment assets as a percentage of total assets | ||||||||||||
Republic of Argentina | 99.53 | % | 99.09 | % | 98.44 | % | ||||||
Republic of Uruguay | 0.47 | % | 0.86 | % | 1.56 | % | ||||||
Grand Cayman Island | — | 0.05 | % | — |
(*) | The caption Revenues include financial income, income from services and miscellaneous income. |
F-39
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||
2010 | 2009 | |||||||
Commitments to extend credit | Ps. | 1,840,214 | Ps. | 1,323,498 | ||||
Standby letters of credit | 335,761 | 175,525 | ||||||
Guarantees granted | 213,830 | 194,474 | ||||||
Acceptances | 111,744 | 58,904 |
December 31, | ||||||||
2010 | 2009 | |||||||
Preferred counter-guarantees | Ps. | 15,503 | Ps. | 15,353 | ||||
Other counter-guarantees | 48,640 | 33,344 |
F-40
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||
2010 | 2009 | |||||||
Checks drawn on the Bank | Ps. | 419,405 | Ps. | 378,631 | ||||
Checks drawn on the other Bank | 529,215 | 458,411 | ||||||
Bills and other items for collection | 3,575,900 | 2,262,278 |
2011 | 50,400 | |||
2012 | 61,488 | |||
2013 | 71,941 | |||
2014 | 80,574 | |||
2015 | 88,631 | |||
2016 and After | 95,722 | |||
Total | Ps. | 448,756 | ||
F-41
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
Net Book | Net Book | |||||||||||||||||||||||||||
Value as | Value as | |||||||||||||||||||||||||||
Notional | of | of | ||||||||||||||||||||||||||
Average | Amount as | December | December | Fair Value | Fair Value | |||||||||||||||||||||||
Weighted | of | 31, 2010 | 31, 2009 | as of | as of | |||||||||||||||||||||||
Maturity | December | Asset / | Asset / | December | December | |||||||||||||||||||||||
Type of Contract | Underlying | Term | 31, 2010 | (Liability) | (Liability) | 31, 2010 | 31, 2009 | |||||||||||||||||||||
FORWARDS (a) | ||||||||||||||||||||||||||||
• Purchases | Foreign currency | 2 months | 3,341,808 | (3,163 | ) | — | (3,163 | ) | — | |||||||||||||||||||
• Sales | Foreign currency | 1 months | 2,393,976 | 1,932 | — | 1,932 | — | |||||||||||||||||||||
FUTURES (a) | ||||||||||||||||||||||||||||
• Purchases | Interest Rate | 6 months | 1,140,100 | — | — | — | — | |||||||||||||||||||||
• Sales | Interest Rate | 4 months | 780,100 | — | — | — | — | |||||||||||||||||||||
FORWARDS — CLIENTS (b) | ||||||||||||||||||||||||||||
• Purchases | Foreign currency | 1 months | 23,598 | (92 | ) | — | (92 | ) | — | |||||||||||||||||||
• Sales | Foreign currency | 6 months | 117,698 | 3,471 | 1,040 | 3,471 | 1,040 | |||||||||||||||||||||
FORWARD FOREIGN CURRENCY HEDGE CONTRACT (c) | ||||||||||||||||||||||||||||
• Purchases | Foreign currency | 4 months | — | — | (8,060 | ) | — | (8,060 | ) | |||||||||||||||||||
• Purchases | Foreign currency | 3 months | 10,000 | (2,710 | ) | — | (2,710 | ) | — | |||||||||||||||||||
• Purchases | Foreign currency | 5 months | 20,000 | (5,120 | ) | — | (5,120 | ) | — | |||||||||||||||||||
OPTIONS (d) | ||||||||||||||||||||||||||||
• Put option written Boden 2012 coupon | National government securities | 18 months | 21,680 | — | — | (302 | ) | — | ||||||||||||||||||||
• Put option written Boden 2013 coupon | National government securities | 22 months | 77,063 | — | — | (3,421 | ) | (3,997 | ) | |||||||||||||||||||
INTEREST RATE SWAP (e) | ||||||||||||||||||||||||||||
• Fixed for variable interest rate | Other | 9 months | 60,000 | — | — | — | — | |||||||||||||||||||||
• Variable for fixed interest rate | Other | 11 months | 78,000 | — | — | — | — | |||||||||||||||||||||
SWAPS WITH CUSTOMERS (f) | ||||||||||||||||||||||||||||
• Variable for fixed interest rate | Other | 10 months | 40,000 | — | — | — | — |
(*) | As of December 31, 2010 and 2009, the amounts correspond to sales as well as purchases. | |
(a) | These transactions are made through recognized exchange markets, such as Mercado Abierto Electrónico (MAE) and Mercado a Término de Rosario (ROFEX). |
F-42
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
(b) | These transactions have been conducted directly with customers. The Group records under “Other Receivables from Financial Brokerage” and / or “Other Liabilities Resulting from Financial Brokerage”, as the case may be, the difference between the agreed foreign currency exchange rate and such exchange rate at the end of the year according with the future prices published by Rofex. | |
(c) | The Group entered into forward foreign currency hedge contracts, aimed to hedge the risk associated with the exchange rate exposure of financial debt designated in U.S. Dollars. |
(d) | As established by Decree 1836/02 and Argentine Central Bank regulations, 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 and Boden 2012 Bonds in exchange for their certificates. |
(e) | These transactions are conducted within the environment created by the MAE, and the settlement thereof is carried out on a monthly basis, in pesos, for the difference between the cash flows calculated using a variable rate (Badlar for time deposits of 30 to 35 days of private banks) and the cash flows calculated using a fixed rate, or vice versa, on the notional value traded, the difference in price being charged to income. |
(f) | These transactions have been conducted directly with customers pursuant to the above mentioned conditions |
F-43
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
2010 | 2009 | |||||||||||||||
Book Value | Fair Value | Book Value | Fair Value | |||||||||||||
Derivative activities: (see Note 26) | ||||||||||||||||
Assets | Ps. | 5,403 | Ps. | 5,403 | Ps. | 1,040 | Ps. | 1,040 | ||||||||
Liabilities | 11,085 | 14,808 | 8,060 | 12,057 | ||||||||||||
Non derivative activities: | ||||||||||||||||
Assets: | ||||||||||||||||
Cash and due from banks (1) | Ps. | 5,645,571 | Ps. | 5,645,571 | Ps. | 3,696,309 | Ps. | 3,696,309 | ||||||||
Government securities (2) | ||||||||||||||||
Trading | 2,133,954 | 2,128,146 | 1,881,914 | 1,882,548 | ||||||||||||
Without quotation | — | — | 1,981,972 | 1,920,869 | ||||||||||||
Investment | 133,756 | 151,356 | 43,350 | 43,395 | ||||||||||||
Corporate Equity Securities | 10,302 | 10,302 | 13,171 | 13,171 | ||||||||||||
Loans (3) | 21,353,781 | 22,122,026 | 13,477,901 | 13,732,385 | ||||||||||||
Others (4) | 3,526,930 | 3,514,578 | 3,830,321 | 3,322,184 | ||||||||||||
Liabilities: | ||||||||||||||||
Deposits (5) | Ps. | 22,222,764 | Ps. | 20,210,974 | Ps. | 17,039,366 | Ps. | 17,047,003 | ||||||||
Other liabilities resulting from financial | ||||||||||||||||
Intermediation: | ||||||||||||||||
Banks and international entities and Loans from Domestic Financial Institutions (6) and | ||||||||||||||||
Negotiable obligations (7) | 3,307,905 | 3,307,916 | 3,517,579 | 3,359,272 | ||||||||||||
Others (8) | 5,542,108 | 5,240,036 | 3,731,245 | 3,537,588 |
F-44
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
(1) | Cash and due from banks:By definition, cash and due from banks are short-term and do not possess credit loss risk. The carrying values as of December 31, 2010 and 2009 are a reasonable estimate of fair value. | |
(2) | Government securities:Government securities held for trading purposes are carried at fair value. Holdings of investment account securities correspond to securities issued by Argentine Central Bank which fair value corresponds to their quoted market value. As of December 31, 2010 securities without quotation include Bonar 2015 Bonds. Such bonds had quoted market values and therefore their fair value where determined using the mentioned quoted market values. As of December 31, 2009 securities included Boden 2012 Bonds, Discount Bonds and Bonar 2015 Bonds. During fiscal year 2010 positions of Boden 2012 and Discount Bonds have been realized. | |
(3) | Loans:The fair values of loans are estimated for groups of similar characteristics, including type of loan, credit quality incorporating the credit risk factor. For floating- or adjustable-rate loans, which mature or are repriced within a short period of time, the carrying values are considered to be a reasonable estimate of fair values. For fixed-rate loans, market prices are not generally available and the fair values are estimated discounting the estimated future cash flows based on the contracted maturity of the loans. The discount rates are based on the current market rates corresponding to the applicable maturity. Where quoted market prices or estimated fair values are available, primarily for loans to refinancing countries, loans held for dispositions or sales and certain other foreign loans, the fair values are based on such market prices and estimated fair values, including secondary market prices. For nonperforming loans, the fair values are generally determined on an individual basis by discounting the estimated future cash flows and may be based on the appraisal value of underlying collateral as appropriate. | |
(4) | Others:Includes other receivables from financial brokerage and equity investments in other companies. A majority of the items include purchases of government securities held for investment purposes which fair value is determined by the quoted market value of the underlying government securities, mostly Bonar 2015 Bonds and Securities issued by Argentine Central Bank. This caption also include financial trusts certificates of participation which their fair value is estimated using valuation techniques to convert the future amounts to a single present amount discounted. The measurement is based on the value indicated by current market expectation about those future amounts. The estimated of the cash flows is based on the future cash flows from the securitized assets, considering the prepayments, historical loan performance, etc. Equity investments in companies where significant influence is exercised are not within the scope of ASC 825, Financial Instruments. Equity investments in other companies are carried at market value less costs to sell. | |
(5) | Deposits:The fair value of deposit liabilities on demand and savings account deposits is similar to its book value. The fair value of time deposits was calculated by discounting contractual cash flows using current market rates for instruments with similar maturities. | |
(6) | Banks and international entities and loans from domestic financial institutions:Includes credit lines borrowed under different credit arrangements from local and foreign banks and entities. Most of them were restructured as of May 2004. As of December 2010 and 2009, when no quoted market prices were available, the estimated fair value has been calculated by discounting the contractual cash flows of these liabilities at estimated market rates. | |
(7) | Negotiable obligations:As of December 31, 2010 and 2009, the fair value of the negotiable obligations was determined based on quoted market prices and when no quoted market prices were available, the estimated fair value has been calculated by discounting the contractual cash flows of these liabilities at estimated market rates. | |
(8) | Others:Includes other liabilities resulting from financial brokerage. Their fair value was estimated at the expected future cash flows discounted at the estimated rates at year-end. |
F-45
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
F-46
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
Estimated | Book value of securities held in | |||||||||||||||||||||||||||
Issuance | maturity | Portfolio | own portfolio | |||||||||||||||||||||||||
Name | Date | date | Trustee | Trust assets | transferred | 12/31/10 | 12/31/09 | |||||||||||||||||||||
Galtrust I | 10/13/00 | 10/10/15 | First Trust of New York N.A. | Secured Bonds in Pesos at 2% due 2018 (1) | U.S. 490,224 | (*) | Ps. | 521,862 | (**) | Ps. | 584,111 | |||||||||||||||||
Galicia | 04/16/02 | 05/06/32 | Bapro Mandatos y Negocios S.A. | National Government Bonds in Pesos at 2% due 2014 (2) | Ps. | 108,000 | Ps. | 96,364 | Ps. | 79,990 | ||||||||||||||||||
Créditos Inmobiliarios Galicia II | 10/12/05 | 12/15/25 | Deustche Bank S.A. | Mortgage loans | Ps. | 150,000 | Ps. | 721 | Ps. | 56,172 | ||||||||||||||||||
Galicia Personales VI | 09/28/07 | 06/15/12 | Deustche Bank S.A. | Personal loans | Ps. | 108,081 | — | Ps. | 17,175 | |||||||||||||||||||
Galicia Personales VII | 02/21/08 | 11/15/12 | Deustche Bank S.A. | Personal loans | Ps. | 150,000 | Ps. | 1,652 | Ps. | 35,216 | ||||||||||||||||||
Galicia Personales VIII | 07/04/08 | 04/15/13 | Deustche Bank S.A. | Personal loans | Ps. | 187,500 | — | Ps. | 55,518 | |||||||||||||||||||
Totals | Ps. | 620,599 | Ps. | 828,182 |
(*) | The remaining US$9,776 was transferred in cash. | |
(**) | Net of the allowance for impairment of value. | |
(1) | In exchange for loans to the Provincial Governments. | |
(2) | In exchange for secured loans. |
F-47
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
Estimated | Book value of securities | |||||||||||||||||||||||||||
Issuance | maturity | Portfolio | held in own portfolio | |||||||||||||||||||||||||
Name | Date | date | Trustee | Trust assets | transferred | 12/31/10 | 12/31/09 | |||||||||||||||||||||
Tarjeta Naranja Trust VI | 12/11/07 | 01/23/10 | Equity Trust Company (Argentina) S.A. | Certain credit rights against cardholders | Ps. | 150,003 | — | Ps. | 25,115 | |||||||||||||||||||
Tarjeta Naranja Trust VII | 02/19/08 | 07/23/10 | Equity Trust Company (Argentina) S.A. | Certain credit rights against cardholders | Ps. | 142,913 | — | Ps. | 24,664 | |||||||||||||||||||
Tarjeta Naranja Trust VIII | 08/05/08 | 09/20/10 | Equity Trust Company (Argentina) S.A. | Certain credit rights against cardholders | Ps. | 138,742 | — | Ps. | 47,917 | |||||||||||||||||||
Tarjeta Naranja Trust IX | 12/12/08 | 05/20/10 | Equity Trust Company (Argentina) S.A. | Certain credit rights against cardholders | Ps. | 90,615 | — | Ps. | 24,786 | |||||||||||||||||||
Totals | — | Ps. | 122,482 |
Estimated | Book value of securities | |||||||||||||||||||||||||||
Issuance | maturity | Portfolio | held in own portfolio | |||||||||||||||||||||||||
Name | Date | date | Trustee | Trust assets | transferred | 12/31/10 | 12/31/09 | |||||||||||||||||||||
Tarjetas Cuyanas Trust V | 02/04/08 | 03/15/10 | Equity Trust Company (Argentina) S.A. | Certain credit rights against cardholders | Ps. | 61,700 | — | Ps. | 21,637 | |||||||||||||||||||
Totals | — | Ps. | 21,637 |
F-48
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
• | Trust contracts for purposes of guaranteeing compliance with obligations: |
Balances of | ||||||||||
Trust Funds | Maturity Date | |||||||||
Date of Contract | Trustor | Ps. | (1) | |||||||
11/01/06 | Peñaflor | 1 | 12/31/11 | |||||||
04/10/07 | Sullair | 1 | 01/31/13 | |||||||
02/12/08 | Sinteplast | 2 | 01/28/13 | |||||||
12/21/09 | Las Blondas | 1 | 12/31/11 | |||||||
09/24/10 | Grupo Gestión | 2,031 | 09/30/12 | |||||||
Totals | 2,036 |
(1) | These amounts shall be released monthly until settlement date of trustor obligations or maturity date, whichever occurs first. |
• | Financial trust contracts: |
Balances of Trust Funds | ||||||||||||||
Date of Contract | Trust | Ps. | U.S. | Maturity Date | ||||||||||
07/13/05 | Rumbo Norte I | 2,301 | 42 | 07/13/11 | (3) | |||||||||
10/12/05 | Hydro I | 15,126 | — | 09/05/17 | (2) | |||||||||
12/05/06 | Faid 2011 | 52,223 | — | 02/28/12 | (3) | |||||||||
12/06/06 | Gas I | 27,039 | — | 12/31/11 | (3) | |||||||||
03/02/07 | Agro Nitralco | 534 | — | 12/31/11 | (3) | |||||||||
09/05/07 | Saturno VII | 123 | — | 12/31/11 | (3) | |||||||||
11/22/07 | Radio Sapienza VI | 51 | — | 06/30/11 | (3) | |||||||||
05/06/08 | Agro Nitralco II | 15,165 | — | 12/31/11 | (3) | |||||||||
05/14/09 | Gas II | 2,371,093 | — | 05/31/14 | (3) | |||||||||
08/31/10 | Sursem I | 17,119 | — | 09/30/11 | (3) | |||||||||
Totals | 2,500,774 | 42 |
(2) | These amounts shall be released monthly until redemption of debt securities. | |
(3) | Estimated date, since maturity date shall occur at the time of the distribution of all of trust assets. |
F-49
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
F-50
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
CFA | ||||||||||||||||||||||||||||
Regional | Personal | Other Grupo’s | Consolidated | |||||||||||||||||||||||||
In Pesos Thousands | Banking | Credit Cards | Loans | Insurance | Businesses | Adjustments | Total | |||||||||||||||||||||
Year ended December 31, 2010 | ||||||||||||||||||||||||||||
Net Financial Income | 1,427,982 | 503,385 | 282,021 | 28,656 | (738 | ) | (37,861 | ) | 2,203,445 | |||||||||||||||||||
Net Income from Services | 880,591 | 1,040,109 | 25,902 | — | 12,835 | (177,560 | ) | 1,781,877 | ||||||||||||||||||||
Net Operating Revenue | 2,308,573 | 1,543,494 | 307,923 | 28,656 | 12,097 | (215,421 | ) | 3,985,322 | ||||||||||||||||||||
Provisions for Loan Losses | 307,240 | 199,461 | 44,823 | — | — | — | 551,524 | |||||||||||||||||||||
Administrative Expenses | 1,693,034 | 905,035 | 159,165 | 56,188 | 17,351 | 14,541 | 2,845,314 | |||||||||||||||||||||
Net Operating Income | 308,299 | 438,998 | 103,935 | (27,532 | ) | (5,254 | ) | (229,962 | ) | 588,484 | ||||||||||||||||||
Income from Equity Investment | ||||||||||||||||||||||||||||
Tarjetas Regionales SA | 270,494 | — | — | — | (270,494 | ) | — | |||||||||||||||||||||
Compañía Financiera Argentina SA | 133,277 | — | — | — | — | (133,277 | ) | — | ||||||||||||||||||||
Sudamericana | 4,023 | — | — | — | — | (4,023 | ) | — | ||||||||||||||||||||
Others | 13,665 | — | — | — | — | 48,389 | 62,054 | |||||||||||||||||||||
Other Income (Loss) | (260,624 | ) | 101,716 | 37,473 | 75,102 | 4,602 | 162,618 | 120,887 | ||||||||||||||||||||
Non-controlling interests | — | (78,417 | ) | — | — | — | (25,916 | ) | (104,333 | ) | ||||||||||||||||||
Pre-tax Income | 469,134 | 462,297 | 141,408 | 47,570 | (652 | ) | (452,665 | ) | 667,092 | |||||||||||||||||||
Income tax provision | — | 191,803 | 51,195 | 16,269 | 1,303 | (2,379 | ) | 258,191 | ||||||||||||||||||||
Net Income | 469,134 | 270,494 | 90,213 | 31,301 | (1,955 | ) | (450,286 | ) | 408,901 | |||||||||||||||||||
Net Income as a % of Grupo Financiero Galicia’s Net Income | 115 | % | 66 | % | 22 | % | 8 | % | (1 | )% | — | — | ||||||||||||||||
Average: | ||||||||||||||||||||||||||||
Private Loans | 12,818,609 | 3,341,756 | 640,405 | — | — | 2 | 16,800,722 | |||||||||||||||||||||
Deposits | 18,111,998 | — | 116,499 | — | — | (13,095 | ) | 18,215,402 | ||||||||||||||||||||
End of Period: | ||||||||||||||||||||||||||||
Assets | 30,212,422 | 4,888,094 | 1,754,255 | 293,886 | 37,810 | (1,478,404 | ) | 35,708,063 | ||||||||||||||||||||
Equity | 2,595,660 | 812,252 | 787,460 | 105,102 | 22,599 | (1,853,573 | ) | 2,469,500 |
F-51
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
Regional | Other Grupo | Consolidated | ||||||||||||||||||||||
In Pesos Thousands | Banking | Credit Cards | Insurance | Businesses | Adjustments | Total | ||||||||||||||||||
Year ended December 31, 2009 | ||||||||||||||||||||||||
Net Financial Income | 1,144,226 | 375,491 | 28,543 | (1,931 | ) | (1,151 | ) | 1,545,178 | ||||||||||||||||
Net Income from Services | 727,855 | 736,985 | — | 12,485 | (166,405 | ) | 1,310,920 | |||||||||||||||||
Net Operating Revenue | 1,872,081 | 1,112,476 | 28,543 | 10,554 | (167,556 | ) | 2,856,098 | |||||||||||||||||
Provisions for Loan Losses | 388,665 | 250,840 | — | — | — | 639,505 | ||||||||||||||||||
Administrative Expenses | 1,321,785 | 621,865 | 42,984 | 19,255 | 23,240 | 2,029,129 | ||||||||||||||||||
Net Operating Income | 161,631 | 239,771 | (14,441 | ) | (8,701 | ) | (190,796 | ) | 187,464 | |||||||||||||||
Income from Equity Investment | ||||||||||||||||||||||||
Tarjetas Regionales SA | 133,028 | — | — | — | (133,028 | ) | — | |||||||||||||||||
Sudamericana | 3,352 | — | — | — | (3,352 | ) | — | |||||||||||||||||
Others | 13,139 | — | — | — | (1,792 | ) | 11,347 | |||||||||||||||||
Other Income (Loss) | (139,303 | ) | 54,966 | 55,327 | 15,629 | 246,349 | 232,968 | |||||||||||||||||
Non-controlling interests | — | (32,642 | ) | — | — | (13,870 | ) | (46,512 | ) | |||||||||||||||
Pre-tax Income | 171,847 | 262,095 | 40,886 | 6,928 | (96,489 | ) | 385,267 | |||||||||||||||||
Income tax provision | 129,067 | 14,153 | 4,576 | 8,196 | 155,992 | |||||||||||||||||||
Net Income | 171,847 | 133,028 | 26,733 | 2,352 | (104,685 | ) | 229,275 | |||||||||||||||||
Net Income as a % of Grupo Financiero Galicia’s Net Income | 75 | % | 58 | % | 12 | % | 1 | % | — | — | ||||||||||||||
Average: | ||||||||||||||||||||||||
Private Loans | 8,959,360 | 2,402,489 | — | — | (18,215 | ) | 11,343,634 | |||||||||||||||||
Deposits | 14,765,933 | — | — | — | (7,376 | ) | 14,758,557 | |||||||||||||||||
End of Period: | ||||||||||||||||||||||||
Assets | 27,224,687 | 3,365,737 | 260,694 | 39,209 | (3,287,961 | ) | 27,602,366 | |||||||||||||||||
Equity | 2,126,522 | 586,757 | 90,801 | 21,854 | (773,395 | ) | 2,052,539 |
F-52
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
Regional | Other Grupo | Consolidated | ||||||||||||||||||||||
In Pesos thousand | Banking | Credit Cards | Insurance | Businesses | Adjustments | Total | ||||||||||||||||||
Year ended December 31, 2008 | ||||||||||||||||||||||||
Net Financial Income | 847,282 | 296,156 | 20,156 | (80 | ) | (25,182 | ) | 1,138,332 | ||||||||||||||||
Net Income from Services | 654,952 | 571,829 | — | 12,897 | (51,810 | ) | 1,187,868 | |||||||||||||||||
Net Operating Revenue | 1,502,234 | 867,985 | 20,156 | 12,817 | (76,992 | ) | 2,326,200 | |||||||||||||||||
Provisions for Loan Losses | 214,948 | 180,441 | — | — | — | 395,389 | ||||||||||||||||||
Administrative Expenses | 1,166,476 | 554,451 | 29,963 | 13,463 | 16,725 | 1,781,078 | ||||||||||||||||||
Net Operating Income | 120,810 | 133,093 | (9,807 | ) | (646 | ) | (93,717 | ) | 149,733 | |||||||||||||||
Income from Equity Investment | ||||||||||||||||||||||||
Tarjetas Regionales SA | 76,436 | — | — | — | (76,436 | ) | — | |||||||||||||||||
Sudamericana | 2,866 | — | — | — | (2,866 | ) | — | |||||||||||||||||
Others | 58,164 | — | — | — | (1,400 | ) | 56,764 | |||||||||||||||||
Other Income (Loss) | (63,014 | ) | 45,242 | 43,506 | 2,104 | 52,310 | 80,148 | |||||||||||||||||
Non-controlling interests | — | (20,646 | ) | — | — | (15,166 | ) | (35,812 | ) | |||||||||||||||
Pre-tax Income | 195,262 | 157,689 | 33,699 | 1,458 | (137,275 | ) | 250,833 | |||||||||||||||||
Income tax provision | — | 81,253 | 11,140 | 1,328 | (19,707 | ) | 74,014 | |||||||||||||||||
Net Income | 195,262 | 76,436 | 22,559 | 130 | (117,568 | ) | 176,819 | |||||||||||||||||
Net Income as a % of Grupo Financiero Galicia’s Net Income | 110 | % | 43 | % | 13 | % | — | % | — | — | ||||||||||||||
Average: | ||||||||||||||||||||||||
Loans | 8,707,477 | 2,104,993 | — | — | — | 10,812,470 | ||||||||||||||||||
Deposits | 13,199,000 | — | — | — | (7,712 | ) | 13,191,288 | |||||||||||||||||
End of Period: | ||||||||||||||||||||||||
Assets | 24,439,812 | 2,763,843 | 227,719 | 22,552 | (2,718,136 | ) | 24,735,790 | |||||||||||||||||
Equity | 1,954,666 | 453,728 | 77,065 | 8,641 | (648,355 | ) | 1,845,745 |
F-53
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
• | Balance Sheet: |
Compañía | Procesadora | |||||||||||
Financiera | Cobranzas | Regional | ||||||||||
Argentina | y Servicios | S.A. | ||||||||||
12/31/2010 | 12/31/2010 | 12/31/2010 | ||||||||||
Cash and due from banks | 69,280 | 309 | 424 | |||||||||
Government and corporate securities | 211,787 | — | — | |||||||||
Loans and Trade receivables | 1,192,815 | — | — | |||||||||
Other receivables resulting from financial brokerage | 187,736 | 19,115 | 1,708 | |||||||||
Other assets | 66,142 | 2,297 | 2,642 | |||||||||
Total Assets | 1,727,760 | 21,721 | 4,774 | |||||||||
Deposits | 385,324 | — | — | |||||||||
Other liabilities resulting from financial brokerage | 435,107 | — | 2 | |||||||||
Provisions | 8,150 | — | — | |||||||||
Other liabilities | 130,455 | 3,405 | 4,352 | |||||||||
Total Liabilities | 959,036 | 3,405 | 4,354 | |||||||||
�� | ||||||||||||
Shareholder’s Equity | 768,724 | 18,316 | 420 | |||||||||
Total Liabilities and Shareholder’s Equity | 1,727,760 | 21,721 | 4,774 | |||||||||
F-54
Table of Contents
Condensed income statement of the CFA Group | ||||
for the six-month period ending December 31, | ||||
2010 | ||||
Net financial income | 282,021 | |||
Net Income from services | 25,902 | |||
Net operating revenue | 307,923 | |||
Provisions for loan losses | (44,823 | ) | ||
Administrative expenses | (159,165 | ) | ||
Net operating income | 103,935 | |||
Other income loss | 37,473 | |||
Non-controlling interest | — | |||
Pre-tax income | 141,408 | |||
Income tax provision | (51,195 | ) | ||
Net Income | 90,213 |
Unaudited pro-forma condensed | ||||||||
income statement of Grupo | Unaudited pro-forma condensed | |||||||
Financiero Galicia for the twelve- | income statement Grupo Financiero | |||||||
month period ending December 31, | Galicia for the twelve-month period | |||||||
2010 | ending December 31, 2009 | |||||||
Net financial income | 2,453,977 | 1,918,615 | ||||||
Net Income from services | 1,807,430 | 1,351,678 | ||||||
Net operating revenue | 4,261,407 | 3,270,293 | ||||||
Provisions for loan losses | (681,602 | ) | (791,689 | ) | ||||
Administrative expenses | (2,999,289 | ) | (2,269,451 | ) | ||||
Net operating income | 580,516 | 209,153 | ||||||
Other income | 194,764 | 273,057 | ||||||
Non-controlling interest | (104,333 | ) | (155,992 | ) | ||||
Pre-tax income | 670,947 | 326,218 | ||||||
Income tax provision | (283,428 | ) | (65,871 | ) | ||||
Net Income | 387,519 | 260,347 |
F-55
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
F-56
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
F-57
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
F-58
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
F-59
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
F-60
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
December 31, 2010 | ||||||||||||
ASC 740-10 | ||||||||||||
applied to | ASC 740-10 | |||||||||||
Argentine | applied to U.S. | U.S. GAAP | ||||||||||
GAAP | GAAP | Deferred Tax | ||||||||||
balances | adjustments | total | ||||||||||
Deferred tax assets | ||||||||||||
Allowance for loan losses — private sector | 165,836 | (22,919 | ) | 142,917 | ||||||||
Intangible assets | 997 | 46,766 | 47,763 | |||||||||
Impairment of fixed assets and foreclosed assets | — | 19,598 | 19,598 | |||||||||
Debt restructuring | — | 26,603 | 26,603 | |||||||||
Investments | 7,175 | — | 7,175 | |||||||||
Liabilities | 70,838 | — | 70,838 | |||||||||
Others | 89,128 | 30,970 | 120,098 | |||||||||
Loss carry forward | 91,840 | — | 91,840 | |||||||||
Total gross deferred tax assets | Ps. | 425,814 | Ps. | 101,018 | Ps. | 526,832 | ||||||
Deferred tax liabilities: | ||||||||||||
Allowance for loan losses — public sector | (54,514 | ) | — | (54,514 | ) | |||||||
Provincial public debt | — | (27,541 | ) | (27,541 | ) | |||||||
Others | (117,998 | ) | — | (117,998 | ) | |||||||
Total gross deferred tax liabilities | Ps. | (172,512 | ) | Ps. | (27,541 | ) | Ps. | (200,053 | ) | |||
Net deferred income tax asset before valuation allowance | Ps. | 253,302 | Ps. | 73,477 | Ps. | 326,779 | ||||||
Valuation allowance | — | — | — | |||||||||
Net deferred income tax assets | Ps. | 253,302 | Ps. | 73,477 | Ps. | 326,779 | ||||||
F-61
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
December 31, 2009 | ||||||||||||
ASC 740-10 | ||||||||||||
applied to | ASC 740-10 | |||||||||||
Argentine | applied to U.S. | U.S. GAAP | ||||||||||
GAAP | GAAP | Deferred Tax | ||||||||||
balances | adjustments | total | ||||||||||
Deferred tax assets | ||||||||||||
Allowance for loan losses — private sector | 175,935 | (22,285 | ) | 153,650 | ||||||||
Compensatory Bond, Bonar Bonds, Discount Bonds and other investments | (41,792 | ) | 49,764 | 7,972 | ||||||||
Intangible assets | 93,938 | 27,074 | 121,012 | |||||||||
Compensation related to the payment of deposits | — | 90,669 | 90,669 | |||||||||
Impairment of fixed assets and foreclosed assets | — | 20,087 | 20,087 | |||||||||
Provision for contingencies | 71,225 | — | 71,225 | |||||||||
Debt restructuring | — | 48,045 | 48,045 | |||||||||
Others | 84,921 | 33,723 | 118,644 | |||||||||
Loss carry forward | 93,821 | — | 93,821 | |||||||||
Total gross deferred tax assets | Ps. | 478,048 | Ps. | 247,077 | Ps. | 725,125 | ||||||
Deferred tax liabilities: | ||||||||||||
Allowance for loan losses — public sector | (25,743 | ) | — | (25,743 | ) | |||||||
Others | (122,672 | ) | — | (122,672 | ) | |||||||
Total gross deferred tax liabilities | Ps. | (148,415 | ) | Ps. | — | Ps. | (148,415 | ) | ||||
Net deferred income tax asset before valuation allowance | Ps. | 329,633 | Ps. | 247,077 | Ps. | 576,710 | ||||||
Valuation allowance | — | — | — | |||||||||
Net deferred income tax assets | Ps. | 329,633 | Ps. | 247,077 | Ps. | 576,710 | ||||||
December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
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 | Ps. | 965,311 | Ps. | 288,659 | Ps. | (427,665 | ) | |||||
Tax exempt income | (457,189 | ) | 564,995 | 92,791 | ||||||||
Valuation allowance | — | (799,138 | ) | 283,952 | ||||||||
Actual tax provision under U.S. GAAP | Ps. | 508,122 | Ps. | 54,516 | Ps. | (50,922 | ) | |||||
F-62
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
Jurisdiction | Tax year | |||
Argentina | 2006 – 2010 | |||
Uruguay | 2006 – 2010 |
December 31, | ||||||||
2010 | 2009 | |||||||
Goodwill impairment (1) | (11,483 | ) | (16,649 | ) | ||||
Reversal of amortizations (2) | 43,618 | 41,856 | ||||||
Total | Ps. | 32,135 | Ps. | 25,207 | ||||
(1) | The amount mainly includes goodwill recorded on the purchase of regional credit-card companies, the acquisition of assets and liabilities of the retail division of ABN AMRO Bank and other subsidiaries are being amortized over 10 years for Argentine Banking GAAP purposes. |
F-63
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
(2) | Goodwill being amortized for Argentine Banking GAAP purposes included goodwill previously impaired under U.S. GAAP, has been reversed for U.S. GAAP purposes. |
F-64
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
Compañía | ||||||||||||
Financiera | Cobranzas y | Universal | ||||||||||
Argentina | Servicios | Processing Center | ||||||||||
Acquisition date | June 30, 2010 | June 30, 2010 | June 30, 2010 | |||||||||
Fair value of consideration transferred: | ||||||||||||
Cash | Ps. | 328,279 | Ps. | 835 | Ps. | 4,809 | ||||||
Total | 328,279 | 835 | 4,809 | |||||||||
Recognised amounts of identifiable assets acquired and liabilities assumed: | ||||||||||||
Cash and due from banks | 61,125 | 522 | 816 | |||||||||
Government and corporate securities | 31,948 | 15,789 | 934 | |||||||||
Loans and Trade receivables | 1,138,407 | 3,189 | — | |||||||||
Other receivables resulting from financial brokerage | 68,842 | — | — | |||||||||
Other assets | 44,605 | 783 | 1,476 | |||||||||
Deposits | (304,488 | ) | — | — | ||||||||
Other liabilities resulting from financial brokerage | (123,759 | ) | — | — | ||||||||
Provisions | (10,135 | ) | (750 | ) | — | |||||||
Other liabilities | (77,658 | ) | (1,934 | ) | (2,466 | ) | ||||||
Total identifiable net assets | 828,887 | 17,599 | 760 | |||||||||
Goodwill /(Negative Goodwill) | Ps. | (500,608 | ) | Ps. | (16,764 | ) | Ps. | 4,049 | ||||
F-65
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
• | for the fiscal year ended December 31, 2010, |
• | for the six-month period ended June 30, 2010, which were not included in Group’s consolidated financial statements for the year ended December 31, 2010, and |
• | for the six-month period ended December 31, 2010 which were the results consolidated in Group’s consolidated financial statements for the year ended December 31, 2010 considering that the acquisition date was June 30, 2010, |
• | Compañía Financiera Argentina |
Six mounths | Six mounths | |||||||||||
Fiscal year ended | period ended | period ended | ||||||||||
12/31/2010 | 06/30/2010 | 12/31/2010 (*) | ||||||||||
Financial Income | 618,290 | 292,689 | 325,601 | |||||||||
Financial Expenses | (85,753 | ) | (42,156 | ) | (43,597 | ) | ||||||
Loan Loss provisions | (174,901 | ) | (130,078 | ) | (44,823 | ) | ||||||
Income from Services | 47,631 | 23,674 | 23,957 | |||||||||
Expenses for Services | (33,109 | ) | (15,314 | ) | (17,795 | ) | ||||||
Administrative expenses | (276,894 | ) | (136,755 | ) | (140,139 | ) | ||||||
Miscellaneous Income | 67,472 | 25,649 | 41,823 | |||||||||
Miscellaneous Losses | (18,191 | ) | (13,001 | ) | (5,190 | ) | ||||||
Income Tax | (75,000 | ) | (25,000 | ) | (50,000 | ) | ||||||
Net Income / (Loss) | 69,545 | (20,292 | ) | 89,837 | ||||||||
(*) | These amounts do not include adjustments and consolidating eliminations. |
F-66
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
• | Cobranzas y Servicios |
Six mounths | Six mounths | |||||||||||
Fiscal year ended | period ended | period ended | ||||||||||
12/31/2010 | 06/30/2010 | 12/31/2010(*) | ||||||||||
Financial Income | — | — | — | |||||||||
Financial Expenses | — | — | — | |||||||||
Loan Loss provisions | — | — | — | |||||||||
Income from Services | 20,506 | 10,203 | 10,303 | |||||||||
Expenses for Services | (664 | ) | (326 | ) | (338 | ) | ||||||
Administrative expenses | (17,160 | ) | (8,268 | ) | (8,892 | ) | ||||||
Miscellaneous Income | 13 | (826 | ) | 839 | ||||||||
Miscellaneous Losses | — | — | — | |||||||||
Income Tax | (1,195 | ) | — | (1,195 | ) | |||||||
Net Income / (Loss) | 1,500 | 783 | 717 | |||||||||
(*) | These amounts do not include adjustments and consolidating eliminations. |
• | Procesadora Regional S.A. |
Six mounths | Six mounths | |||||||||||
Fiscal year ended | period ended | period ended | ||||||||||
12/31/2010 | 06/30/2010 | 12/31/2010(*) | ||||||||||
Financial Income | 16 | (1 | ) | 17 | ||||||||
Financial Expenses | — | — | — | |||||||||
Loan Loss provisions | — | — | — | |||||||||
Income from Services | 17,635 | 7,531 | 10,104 | |||||||||
Expenses for Services | (564 | ) | (235 | ) | (329 | ) | ||||||
Administrative expenses | (19,086 | ) | (8,952 | ) | (10,134 | ) | ||||||
Miscellaneous Income | 2 | 1 | 1 | |||||||||
Miscellaneous Losses | — | — | — | |||||||||
Income Tax | (237 | ) | (237 | ) | — | |||||||
Net Income / (Loss) | (2,234 | ) | (1,893 | ) | (341 | ) | ||||||
(*) | These amounts do not include adjustments and consolidating eliminations. |
F-67
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
• | “With Problems” | ||
• | “High Risk of Insolvency” | ||
• | “Uncollectible” |
F-68
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
a. | Allowance for Credit Losses and Recorded Investments in Financial Receivables |
As of December 31, 2010 | ||||||||||||
Commercial | ||||||||||||
Consumer | Loan | |||||||||||
Loan Portfolio | Portfolio | Total | ||||||||||
Allowance for credit losses: | ||||||||||||
Ending balance: individually evaluated for impairment | — | 61,607 | 61,607 | |||||||||
Ending balance: collectively evaluated for impairment | 729,212 | 13,867 | 743,079 | |||||||||
Ending Balance | 729,212 | 75,474 | 804,686 | |||||||||
Financing receivables: | ||||||||||||
Ending balance: individually evaluated for impairment | — | 137,175 | 137,175 | |||||||||
Ending balance: collectively evaluated for impairment | 14,123,190 | 9,291,751 | 23,414,941 | |||||||||
Ending Balance | 14,123,190 | 9,428,926 | 23,552,116 | |||||||||
F-69
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
As of December 31, 2009 | ||||||||||||
Consumer | Commercial | |||||||||||
Loan Portfolio | Loan Portfolio | Total | ||||||||||
Allowance for credit losses: | ||||||||||||
Ending balance: individually evaluated for impairment | — | 64,777 | 64,777 | |||||||||
Ending balance: collectively evaluated for impairment | 671,268 | 16,247 | 687,515 | |||||||||
Ending Balance | 671,268 | 81,024 | 752,292 | |||||||||
Financing receivables: | ||||||||||||
Ending balance: individually evaluated for impairment | — | 286,256 | 286,256 | |||||||||
Ending balance: collectively evaluated for impairment | 8,899,877 | 6,687,669 | 15,587,546 | |||||||||
Ending Balance | 8,899,877 | 6,973,925 | 15,873,802 | |||||||||
F-70
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
As of December 31, 2010 | ||||||||||||
Unpaid | ||||||||||||
Recorded | Principal | Related | ||||||||||
Investment | Balance | Allowance | ||||||||||
With no related allowance recorded: | ||||||||||||
Commercial | ||||||||||||
Impaired Loans | 6,147 | 2,956 | — | |||||||||
With an allowance recorded: | ||||||||||||
Commercial | ||||||||||||
Impaired Loans | 131,028 | 236,899 | 61,607 | |||||||||
Total | 137,175 | 239,855 | 61,607 | |||||||||
As of December 31, 2009 | ||||||||||||
Unpaid | ||||||||||||
Recorded | Principal | Related | ||||||||||
Investment | Balance | Allowance | ||||||||||
With no related allowance recorded: | ||||||||||||
Commercial | ||||||||||||
Impaired Loans | 39,052 | 4,632 | — | |||||||||
With an allowance recorded: | ||||||||||||
Commercial | ||||||||||||
Impaired Loans | 247,204 | 149,342 | 64,777 | |||||||||
Total | 286,256 | 153,974 | 64,777 | |||||||||
F-71
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
As of December 31, | ||||||||
2010 | 2009 | |||||||
Consumer | ||||||||
Advances | 26,586 | 23,599 | ||||||
Promissory Notes | 25,030 | 18,201 | ||||||
Mortgage Loans | 7,638 | 7,601 | ||||||
Personal Loans | 169,018 | 73,178 | ||||||
Credit Card Loans | 221,786 | 280,111 | ||||||
Other Loans | 12,469 | 8,700 | ||||||
Total Consumer | 462,527 | 411,390 | ||||||
Commercial | ||||||||
Performing Loans | — | — | ||||||
Impaired Loans | 135,710 | 274,024 | ||||||
Total Commercial | 135,710 | 274,024 | ||||||
Total Non accrual loans | 598,237 | 685,414 | ||||||
As of December 31, 2010 | ||||||||||||||||||||||||||||
30-90 | 91-180 | 181-360 | ||||||||||||||||||||||||||
Days Past | Days Past | Days Past | Greater | Total Past | Total | |||||||||||||||||||||||
Due | Due | Due | than 360 | Due | Current | Financing | ||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||
Advances | 7,124 | 7,879 | 10,705 | 8,002 | 33,710 | 203,599 | 237,309 | |||||||||||||||||||||
Promissory Notes | 3,572 | 5,695 | 9,949 | 9,386 | 28,602 | 789,459 | 818,061 | |||||||||||||||||||||
Mortgage Loans | 5,489 | 2,585 | 1,222 | 3,831 | 13,127 | 469,721 | 482,848 | |||||||||||||||||||||
Personal Loans | 91,978 | 63,211 | 86,722 | 19,085 | 260,996 | 3,757,871 | 4,018,867 | |||||||||||||||||||||
Credit Cards Loans | 137,370 | 88,265 | 115,653 | 17,868 | 359,156 | 7,994,885 | 8,354,041 | |||||||||||||||||||||
Other Loans | 3,272 | 5,018 | 3,021 | 4,430 | 15,741 | 196,323 | 212,064 | |||||||||||||||||||||
Total Consumer Loans | 248,805 | 172,653 | 227,272 | 62,602 | 711,332 | 13,411,858 | 14,123,190 | |||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||||
Performing Loans | — | — | — | — | — | 9,291,751 | 9,291,751 | |||||||||||||||||||||
Impaired loans | — | — | 16,872 | 112,996 | 129,868 | 7,307 | 137,175 | |||||||||||||||||||||
Total Commercial Loans | — | — | 16,872 | 112,996 | 129,868 | 9,299,058 | 9,428,926 | |||||||||||||||||||||
Total | 248,805 | 172,653 | 244,144 | 175,598 | 841,200 | 22,710,916 | 23,552,116 | |||||||||||||||||||||
F-72
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
As of December 31, 2009 | ||||||||||||||||||||||||||||
30-90 | 91-180 | 181-360 | ||||||||||||||||||||||||||
Days Past | Days Past | Days Past | Greater | Total Past | Total | |||||||||||||||||||||||
Due | Due | Due | than 360 | Due | Current | Financing | ||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||
Advances | 3,860 | 6,419 | 10,885 | 6,295 | 27,459 | 166,520 | 193,979 | |||||||||||||||||||||
Promissory Notes | 5,524 | 5,622 | 8,226 | 4,353 | 23,725 | 706,986 | 730,711 | |||||||||||||||||||||
Mortgage Loans | 6,643 | 1,825 | 1,310 | 4,466 | 14,244 | 463,356 | 477,600 | |||||||||||||||||||||
Personal Loans | 28,439 | 19,170 | 38,564 | 15,445 | 101,618 | 1,725,125 | 1,826,743 | |||||||||||||||||||||
Credit Cards Loans | 112,350 | 86,491 | 158,200 | 35,420 | 392,461 | 5,110,849 | 5,503,310 | |||||||||||||||||||||
Other Loans | 2,901 | 2,343 | 2,882 | 3,474 | 11,600 | 155,934 | 167,534 | |||||||||||||||||||||
Total Consumer Loans | 159,717 | 121,870 | 220,067 | 69,453 | 571,107 | 8,328,770 | 8,899,877 | |||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||||
Performing Loans | — | — | — | — | — | 6,687,669 | 6,687,669 | |||||||||||||||||||||
Impaired loans | 103,888 | 140,687 | 244,575 | 41,681 | 286,256 | |||||||||||||||||||||||
Total Commercial Loans | — | — | 103,888 | 140,687 | 244,575 | 6,729,350 | 6,973,925 | |||||||||||||||||||||
Total | 159,717 | 121,870 | 323,955 | 210,140 | 815,682 | 15,058,120 | 15,873,802 | |||||||||||||||||||||
Loan Classification | Description | |
1. Normal Situation | The debtor is widely able to meet its financial obligations, demonstrating significant cash flows, a liquid financial situation, an adequate financial structure, a timely payment record, competent management, available information in a timely, accurate manner and satisfactory internal controls. The debtor is in the upper 50% of a sector of activity that is operating properly and has good prospects. | |
2. With Special Follow-up | Cash flow analysis reflects that the debt may be repaid even though it is possible that the customer’s future payment ability may deteriorate without a proper follow-up. | |
This category is divided into two subcategories: | ||
(2.a). Under Observation; | ||
(2.b). Under Negotiation or Refinancing Agreements. | ||
3. With Problems | Cash flow analysis evidences problems to repay the debt, and therefore, if these problems are not solved, there may be some losses. | |
4. High Risk of Insolvency | Cash flow analysis evidences that repayment of the full debt is highly unlikely. | |
5. Uncollectible | The amounts in this category are deemed total losses. Even though these assets may be recovered under certain future circumstances, inability to make payments is evident at the date of the analysis. It includes loans to insolvent or bankrupt borrowers. |
F-73
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
Loan Classification | Description | |
1. Normal Situation | Loans with timely repayment or arrears not exceeding 31 days, both of principal and interest. | |
2. Low Risk | Occasional late payments, with a payment in arrears of more than 32 days and up to 90 days. A customer classified as “Normal” having been refinanced may be recategorized within this category, as long as he amortizes one principal installment (whether monthly or bimonthly) or repays 5% of principal. | |
3. Medium Risk | Some inability to make payments, with arrears of more than 91 days and up to 180 days. A customer classified as “Low Risk” having been refinanced may be recategorized within this category, as long as he amortizes two principal installments (whether monthly or bimonthly) or repays 5% of principal. | |
4. High Risk | Judicial proceedings demanding payment have been initiated or arrears of more than 180 days and up to one year. A customer classified as “Medium Risk” having been refinanced may be recategorized within this category, as long as he amortizes three principal installments (whether monthly or bimonthly) or repays 10% of principal. | |
5. Uncollectible | Loans to insolvent or bankrupt borrowers, or subject to judicial proceedings, with little or no possibility of collection, or with arrears in excess of one year. |
As of December 31, 2010 | ||||||||||||||||||||||||
“1” | “2” | “3” | “4” | “5” | ||||||||||||||||||||
With special | High risk of | |||||||||||||||||||||||
Normal | follow-up or | With problems | insolvency or | |||||||||||||||||||||
Situation | Low Risk | or Medium Risk | High risk | Uncollectible | Total | |||||||||||||||||||
Consumer | ||||||||||||||||||||||||
Advances | 203,599 | 7,124 | 7,879 | 10,705 | 8,002 | 237,309 | ||||||||||||||||||
Promissory Notes | 789,459 | 3,572 | 5,695 | 9,949 | 9,386 | 818,061 | ||||||||||||||||||
Mortgage Loans | 469,721 | 5,489 | 2,585 | 1,222 | 3,831 | 482,848 | ||||||||||||||||||
Personal Loans | 3,757,871 | 91,978 | 63,211 | 86,722 | 19,085 | 4,018,867 | ||||||||||||||||||
Credit Cards Loans | 7,994,885 | 137,370 | 88,265 | 115,653 | 17,868 | 8,354,041 | ||||||||||||||||||
Other Loans | 196,323 | 3,272 | 5,018 | 3,021 | 4,430 | 212,064 | ||||||||||||||||||
Total Consumer Loans | 13,411,858 | 248,805 | 172,653 | 227,272 | 62,602 | 14,123,190 | ||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Performing loans | 9,204,218 | 87,533 | — | — | — | 9,291,751 | ||||||||||||||||||
Impaired loans | — | 1,465 | 53,299 | 78,230 | 4,181 | 137,175 | ||||||||||||||||||
Total Commercial Loans | 9,204,218 | 88,998 | 53,299 | 78,230 | 4,181 | 9,428,926 | ||||||||||||||||||
Total Financing Receivables | 22,616,076 | 337,803 | 225,952 | 305,502 | 66,783 | 23,552,116 | ||||||||||||||||||
F-74
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
As of December 31, 2009 | ||||||||||||||||||||||||
“1” | “2” | “3” | “4” | “5” | ||||||||||||||||||||
With special | High risk of | |||||||||||||||||||||||
Normal | follow-up or | With problems | insolvency or | |||||||||||||||||||||
Situation | Low Risk | or Medium Risk | High risk | Uncollectible | Total | |||||||||||||||||||
Consumer | ||||||||||||||||||||||||
Advances | 166,520 | 3,860 | 6,419 | 10,885 | 6,295 | 193,979 | ||||||||||||||||||
Promissory Notes | 706,986 | 5,524 | 5,622 | 8,226 | 4,353 | 730,711 | ||||||||||||||||||
Mortgage Loans | 463,356 | 6,643 | 1,825 | 1,310 | 4,466 | 477,600 | ||||||||||||||||||
Personal Loans | 1,725,125 | 28,439 | 19,170 | 38,564 | 15,445 | 1,826,743 | ||||||||||||||||||
Credit Cards Loans | 5,110,849 | 112,350 | 86,491 | 158,200 | 35,420 | 5,503,310 | ||||||||||||||||||
Other Loans | 155,934 | 2,901 | 2,343 | 2,882 | 3,474 | 167,534 | ||||||||||||||||||
Total Consumer Loans | 8,328,770 | 159,717 | 121,870 | 220,067 | 69,453 | 8,899,877 | ||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Performing loans | 6,568,822 | 118,847 | — | — | — | 6,687,669 | ||||||||||||||||||
Impaired loans | 6,250 | 5,982 | 97,484 | 170,515 | 6,025 | 286,256 | ||||||||||||||||||
Total Commercial Loans | 6,575,072 | 124,829 | 97,484 | 170,515 | 6,025 | 6,973,925 | ||||||||||||||||||
Total Financing Receivables | 14,903,842 | 284,546 | 219,354 | 390,582 | 75,478 | 15,873,802 | ||||||||||||||||||
Argentine | ||||||||||||
Banking GAAP | U.S. GAAP | Adjustment | ||||||||||
December 31, 2009 | 815,963 | 752,292 | 63,671 | |||||||||
Variances | 54,206 | 52,394 | 1,812 | |||||||||
December 31, 2010 | Ps. | 870,169 | (*) | Ps. | 804,686 | Ps. | 65,483 | |||||
(*) | The balance does not include Ps. 185,381 of CFA allowances for loan losses as of the acquisition date. |
F-75
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
2010 | 2009 | |||||||||||||||||||||||||||||||||||||||
Book | Book | |||||||||||||||||||||||||||||||||||||||
Value | Fair value - | Value | Fair value - | |||||||||||||||||||||||||||||||||||||
Amortized | Argentine | Book value | Shareholders’ | Amortized | Argentine | Book value | Unrealized | Shareholders’ | ||||||||||||||||||||||||||||||||
Cost U.S. | Banking | under U.S. | Unrealized | equity | Cost U.S. | Banking | under U.S. | (Loss)/ | equity | |||||||||||||||||||||||||||||||
GAAP | GAAP | GAAP | (Loss)/Gain | adjustment | GAAP | GAAP | GAAP | Gain | adjustment | |||||||||||||||||||||||||||||||
(In thousands of Ps.) | ||||||||||||||||||||||||||||||||||||||||
BODEN 2012 Bonds | — | — | — | — | — | 900,970 | 1,906,907 | 1,731,089 | 830,119 | (175,818 | ) |
F-76
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
2010 | 2009 | |||||||||||||||||||||||||||||||||||||||
Book | Book | |||||||||||||||||||||||||||||||||||||||
Value | Fair value - | Value | Fair value - | |||||||||||||||||||||||||||||||||||||
Amortized | Argentine | Book value | Shareholders’ | Amortized | Argentine | Book value | Shareholders’ | |||||||||||||||||||||||||||||||||
Cost U.S. | Banking | under U.S. | Unrealized | equity | Cost U.S. | Banking | under U.S. | Unrealized | equity | |||||||||||||||||||||||||||||||
GAAP | GAAP | GAAP | (Loss)/Gain | Adjustment | GAAP | GAAP | GAAP | (Loss)/Gain | Adjustment | |||||||||||||||||||||||||||||||
(In thousands of Ps.) | ||||||||||||||||||||||||||||||||||||||||
Discount Bonds | — | — | — | — | — | 169,915 | 598,601 | 302,124 | 132,209 | (296,477 | ) | |||||||||||||||||||||||||||||
GDP linked Bonds | — | — | — | — | — | — | 23,382 | 35,748 | — | 12,366 |
F-77
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
2010 | 2009 | |||||||||||||||||||||||||||||||||||||||
Book | Book | |||||||||||||||||||||||||||||||||||||||
Value | Fair Value — | Value | Fair Value — | |||||||||||||||||||||||||||||||||||||
Amortized | Argentine | Book value | Shareholders’ | Amortized | Argentine | Book value | Shareholders’ | |||||||||||||||||||||||||||||||||
Cost U.S. | Banking | under U.S. | Unrealized | equity | Cost U.S. | Banking | under U.S. | Unrealized | equity | |||||||||||||||||||||||||||||||
GAAP | GAAP | GAAP | (Loss)/Gain | Adjustment | GAAP | GAAP | GAAP | (Loss)/Gain | Adjustment | |||||||||||||||||||||||||||||||
(In thousands of Ps.) | ||||||||||||||||||||||||||||||||||||||||
Bonar 2015 Bonds | 527,950 | 642,147 | 726,643 | 198,693 | 84,496 | 591,548 | 358,984 | 676,580 | 85,032 | 317,596 |
(*) | Under Argentine banking GAAP, Bonar 2015 are recorded in the captions “investment securities”, “other receivable from financial brokerage” and “miscellaneous assets”. |
2010 | 2009 | |||||||||||||||||||||||
Fair Value — | Fair Value — | |||||||||||||||||||||||
Book Value | Book value | Shareholders’s | Book Value | Book value | Shareholders’s | |||||||||||||||||||
Argentine | under U.S. | Equity | Argentine | under U.S. | Equity | |||||||||||||||||||
Banking GAAP | GAAP | Adjustment | Banking GAAP | GAAP | Adjustment | |||||||||||||||||||
(in thousands of Ps,) | ||||||||||||||||||||||||
Nues Trust | — | — | — | 59,909 | 75,483 | 15,574 | ||||||||||||||||||
Almafuerte Trust | 169,890 | 166,723 | (3,167 | ) | 373,313 | 335,219 | (38,094 | ) | ||||||||||||||||
Securities issued by BCRA | 2,411,393 | 2,405,585 | (5,808 | ) | 1,953,676 | 1,953,827 | 151 | |||||||||||||||||
Total | 2,581,283 | 2,572,308 | (8,975 | ) | 2,386,898 | 2,364,529 | (22,369 | ) | ||||||||||||||||
F-78
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
F-79
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
2010 | 2009 | |||||||||||||||||||||||
Book Value | Fair Value — | U.S. GAAP | Book Value | Fair Value — | U.S. GAAP | |||||||||||||||||||
Argentine | Book value | Shareholders’s | Argentine | Book value | Shareholders’s | |||||||||||||||||||
Banking | under U.S. | Equity | Banking | under U.S. | Equity | |||||||||||||||||||
GAAP | GAAP | Adjustment | GAAP | GAAP | Adjustment | |||||||||||||||||||
(in thousands of Ps,) | ||||||||||||||||||||||||
Galtrust I (1) | 521,862 | 521,862 | — | 584,111 | 211,647 | (372,464 | ) | |||||||||||||||||
Financial Trust Galicia (2) | 96,364 | 36,241 | (60,123 | ) | 79,990 | 28,692 | (51,298 | ) | ||||||||||||||||
Others | 13,491 | 19,482 | 5,991 | 56,458 | 50,940 | (5,518 | ) | |||||||||||||||||
Total | 631,717 | 577,585 | (54,132 | ) | 720,559 | 291,279 | (429,280 | ) | ||||||||||||||||
F-80
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
• | Insufficient Equity Investment at Risk |
• | Equity lacks decision-making rights |
• | Equity with non-substantive voting rights |
• | Lacking the obligation to Absorb an Entity’s Expected Losses |
• | Lacking the right to receive an Entity’s expected residual returns |
F-81
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
F-82
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
December 31, | December 31, | |||||||
2010 | 2009 | |||||||
Cash and due from banks | Ps. | 11,626 | Ps. | 15,220 | ||||
Government securities | 1,009,154 | — | ||||||
Loans (net of allowances) | — | 463,742 | ||||||
Other assets | 1,149 | 8,833 | ||||||
Total Assets | Ps. | 1,021,929 | Ps. | 487,795 | ||||
Debt Securities | Ps. | 414,510 | Ps. | 279,583 | ||||
Certificates of Participation | 604,665 | 193,321 | ||||||
Other liabilities | 2,754 | 14,891 | ||||||
Total Liabilities | Ps. | 1,021,929 | Ps. | 487,795 | ||||
• | Other transfers of financial assets accounted for as sales under U.S. GAAP |
F-83
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
F-84
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
2010 | ||||||||||||
Estimated | U.S. GAAP | |||||||||||
Maximum | Proceeds | Carrying | ||||||||||
Potential | From collateral | Amount - | ||||||||||
Payments (*) | Recourse | Liability | ||||||||||
Financial guarantees | 124,705 | 6,822 | 125 | |||||||||
Ps. | 124,705 | Ps. | 6,822 | Ps. | 125 | |||||||
2009 | ||||||||||||
Estimated | U.S. GAAP | |||||||||||
Maximum | Proceeds | Carrying | ||||||||||
Potential | From collateral | Amount - | ||||||||||
Payments (*) | Recourse | Liability | ||||||||||
Financial guarantees | 112,899 | 3,719 | 152 | |||||||||
Ps. | 112,899 | Ps. | 3,719 | Ps | 152 | |||||||
(*) | 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-85
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
F-86
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
F-87
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
• | Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. | ||
• | Level 2 — inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. | ||
Level 2 — inputs include the following: | |||
a) Quoted prices for similar assets or liabilities in active markets; | |||
b) Quoted prices for identical or similar assets or liabilities in non-active markets; | |||
c) Pricing models whose inputs are observable for substantially the full term of the asset or liability; and | |||
d) Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means | |||
• | Level 3 — inputs to the valuation methodology are unobservable and significant to the fair value measurement. |
F-88
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
F-89
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
Internal | Internal | |||||||||||||||
models with | models with | |||||||||||||||
Quoted | significant | significant | ||||||||||||||
market prices | observable | unobservable | ||||||||||||||
Total | in active | market | market | |||||||||||||
carrying | markets | parameters | parameters | |||||||||||||
Balances as of December 31, 2010 | value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
ASSETS | ||||||||||||||||
a.1) Trading Securities | ||||||||||||||||
National Government Securities | Ps. | 68,231 | Ps. | 68,231 | Ps. | — | Ps. | — | ||||||||
a.2) Securities issued by Argentine Central Bank | ||||||||||||||||
Securities issued by the Argentine Central Bank | 2,059,915 | 2,059,915 | — | — | ||||||||||||
a.3) Other Investments (*) | 166,723 | — | — | 166,723 | ||||||||||||
a.4) Corporate Securities | ||||||||||||||||
Shares | 68 | 68 | — | — | ||||||||||||
Marketable Negotiable Obligations | 4,484 | 4,484 | — | — | ||||||||||||
Negotiable Mutual Funds | 5,750 | 5,750 | — | — | ||||||||||||
a.5) In Investment Accounts | 151,356 | 151,356 | — | — | ||||||||||||
b) Securities receivable under repurchase agreements | ||||||||||||||||
b.1) Securities issued by Argentine Central Bank | ||||||||||||||||
Securities issued by Argentine Central Bank | 549,901 | 549,901 | — | — | ||||||||||||
b.2) In Investment Account | 575,287 | 575,287 | — | — | ||||||||||||
c) Securitizations | ||||||||||||||||
Debt Securities | 19,482 | — | — | 19,482 | ||||||||||||
Galtrust I — Bogar Bonds (**) | 783,761 | — | — | 783,761 | ||||||||||||
d) Derivatives financial instruments | — | |||||||||||||||
Foreign exchange contracts | 5,403 | 1,932 | 3,471 | — | ||||||||||||
TOTAL ASSETS AT FAIR VALUE | 4,390,361 | 3,416,924 | 3,471 | 969,966 | ||||||||||||
LIABILITIES — By Class | ||||||||||||||||
e) Securities to be delivered under spot and forward sales to be settled | (204,231 | ) | (204,231 | ) | — | — | ||||||||||
f) Derivatives financial instruments | ||||||||||||||||
Options | (3,723 | ) | — | (3,723 | ) | — | ||||||||||
Foreign exchange contracts | (11,085 | ) | (3,163 | ) | (7,922 | ) | — | |||||||||
TOTAL LIABILITIES AT FAIR VALUE | (219,039 | ) | (207,394 | ) | (11,645 | ) | — | |||||||||
(*) | This amount is related to the fair value of certificates of participation held in the Almafuerte Special Fund | |
(**) | During the year ended December 31, 2010 and as part of the implementation of ASU 2009-16 and ASU 2009-17, the Group started consolidating Galtrust I. Therefore, the Ps. 783,761 corresponds to the fair value of the Bogar Bonds recorded as an asset in Galtrust I. In 2009 Galtrust I was not consolidated and therefore the amount shown as of December 31, 2009 corresponds to the certificate of participation held by the group in Galtrust I. |
F-90
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
Internal | Internal | |||||||||||||||
models with | models with | |||||||||||||||
Quoted | significant | significant | ||||||||||||||
market prices | observable | unobservable | ||||||||||||||
Total | in active | market | market | |||||||||||||
carrying | markets | parameters | parameters | |||||||||||||
Balances as of December 31, 2009 | value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
ASSETS | ||||||||||||||||
a.1) Trading Securities | ||||||||||||||||
National Government Securities | Ps. | 266,836 | Ps. | 266,836 | Ps. | — | Ps. | — | ||||||||
a.2) Without Quotation — National Government Securities | ||||||||||||||||
Compensatory and Hedge Bond Received | 938,340 | 938,340 | — | — | ||||||||||||
Discount Bonds & GDP Linked Negotiable Sec | 337,872 | 337,872 | — | — | ||||||||||||
Bonar 2015 Bonds | 676,580 | 676,580 | — | — | ||||||||||||
a.3) Securities issued by Argentine Central Bank | ||||||||||||||||
Securities issued by the Argentine Central Bank | 1,658,473 | 1,658,473 | — | — | ||||||||||||
a.4) Other Investments (*) | 410,702 | — | — | 410,702 | ||||||||||||
a.5) Corporate Securities | ||||||||||||||||
Shares | 53 | 53 | — | — | ||||||||||||
Marketable Negotiable Obligations | 5,613 | 5,613 | — | — | ||||||||||||
Negotiable Mutual Funds | 7,505 | 7,505 | — | — | ||||||||||||
b) Securities receivable under repurchase agreements | ||||||||||||||||
b.1) Without Quotation — National Government Securities | ||||||||||||||||
Compensatory and Hedge Bond Received | 805,724 | 805,724 | — | — | ||||||||||||
b.2) Securities issued by Argentine Central Bank | ||||||||||||||||
Securities issued by Argentine Central Bank | 226,682 | 226,682 | — | — | ||||||||||||
c) Securitizations | ||||||||||||||||
Debt Securities and Certificates of Participation | 50,939 | — | — | 50,939 | ||||||||||||
Galtrust I — Certificates of participation | 211,647 | — | — | 211,647 | ||||||||||||
d) Derivatives financial instruments | ||||||||||||||||
Foreign exchange contracts | 1,040 | — | 1,040 | — | ||||||||||||
TOTAL ASSETS AT FAIR VALUE | 5,598,006 | 4,923,678 | 1,040 | 673,288 | ||||||||||||
LIABILITIES | ||||||||||||||||
e) Securities to be delivered under spot and forward sales to be settled | (12,975 | ) | (12,975 | ) | — | — | ||||||||||
f) Derivatives financial instruments | ||||||||||||||||
Options | (3,997 | ) | — | (3,997 | ) | — | ||||||||||
Foreign exchange contracts | (8,060 | ) | — | (8,060 | ) | — | ||||||||||
TOTAL LIABILITIES AT FAIR VALUE | (25,032 | ) | (12,975 | ) | (12,057 | ) | — | |||||||||
(*) | This amount is related to the fair value of the Certificate of Participation in Nues Trust of Ps. 75,483 and Ps. 335,219 in the Almafuerte Special Fund. |
F-91
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
Galtrust I - Bogar | Total Fair Value | |||||||||||||||
bonds | Debt securities | Other investments | Measurements | |||||||||||||
Fair value, December 31, 2008 | Ps. | 67,881 | Ps. | 58,177 | Ps. | 301,486 | Ps. | 427,544 | ||||||||
Total gains or losses (realized/unrealized) | 143,766 | 13,718 | 109,216 | 266,700 | ||||||||||||
Included in earnings | 18,737 | 18,737 | ||||||||||||||
Included in other comprehensive income | 143,766 | (5,019 | ) | 109,216 | 247,963 | |||||||||||
Purchases | — | — | — | — | ||||||||||||
Issuances | — | — | — | — | ||||||||||||
Settlements | — | (20,956 | ) | — | (20,956 | ) | ||||||||||
Transfers in to/ out of level 3 | — | — | — | — | ||||||||||||
Fair value, December 31, 2009 | Ps. | 211,647 | Ps. | 50,939 | Ps. | 410,702 | Ps. | 673,288 | ||||||||
Total gains or losses (realized/unrealized) | 572,114 | (7,265 | ) | (243,979 | ) | 320,870 | ||||||||||
Included in earnings | — | (7,265 | ) | — | (7,265 | ) | ||||||||||
Included in other comprehensive income | 572,114 | 0 | (243,979 | ) | 328,135 | |||||||||||
Purchases | — | — | — | — | ||||||||||||
Issuances | — | — | — | — | ||||||||||||
Settlements | — | (24,192 | ) | — | (24,192 | ) | ||||||||||
Transfers in to/ out of level 3 | — | — | — | — | ||||||||||||
Fair value, December 31, 2010 | Ps. | 783,761 | Ps. | 19,482 | Ps. | 166,723 | Ps. | 969,966 | ||||||||
Total Fair Value Measurements | |||||||||||||
Balances as of December 31, | 2010 | 2009 | 2008 | ||||||||||
Available for sale securities | |||||||||||||
Classification of gains and losses included in earnings : | |||||||||||||
Financial Income | Ps. | (7,265 | ) | Ps. | 18,737 | Ps. | (259,762 | ) | |||||
Total | Ps. | (7,265 | ) | Ps. | 18,737 | Ps. | (259,762 | ) |
F-92
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
F-93
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
F-94
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Net income as stated | Ps. | 408,901 | Ps. | 229,275 | Ps. | 176,819 | ||||||
Loan origination fees and costs (Note 35 b.) | 7,422 | (51,828 | ) | 10,300 | ||||||||
Intangible assets: | ||||||||||||
Goodwill amortization and impairment (Note 35 c.) | 6,928 | 11,458 | (77,605 | ) | ||||||||
Negative goodwill (Note 35 c.) | 465,634 | — | — | |||||||||
Software cost (Note 35 c.) | (56,259 | ) | (30,548 | ) | (24,593 | ) | ||||||
Compensation related to the payment of deposits (Note 35 g.) | 259,053 | 57,821 | (39,850 | ) | ||||||||
Equity investments in other companies — Impairment (Note 35 k.) | 1,810 | (4,731 | ) | (3,882 | ) | |||||||
Loans —non Financial Public Sector — Secured loans (Note 35 d.(i)) | 282 | 32,213 | 48,228 | |||||||||
Loan impairment — Private sector (Note 35 d.(ii)) | 1,812 | 112,166 | (54,748 | ) | ||||||||
Securitizations (Note 35 h.) | (2,334 | ) | (18,727 | ) | (376,975 | ) | ||||||
Government Securities and other investments: | ||||||||||||
Compensatory Bond received and Hedge Bond (Note 35 e.(i)) | 1,005,937 | 91,438 | (838,609 | ) | ||||||||
Discount Bonds (Note 35 e.(ii)) | 428,686 | 51,587 | (86,849 | ) | ||||||||
GDP — Linked Negotiable Securities (Note 35 e.(ii)) | (12,366 | ) | 2,465 | (31,479 | ) | |||||||
Bonar 2015 Bonds ( Note 35 e. (iii)) | (346,761 | ) | 232,564 | — | ||||||||
Other investments (Note 35 e. (iv)) | 104,908 | — | (110,715 | ) | ||||||||
Amortization of real estate properties and foreclosed assets previously impaired under U.S. GAAP (Note 35 j.) | 1,395 | 1,395 | 1,395 | |||||||||
Recognition for the fair value of obligations assumed under financial guarantees issued (Note 35 l.) | 8,361 | 31,303 | (35,727 | ) | ||||||||
Foreign Debt restructuring (Note 35 n.) | 61,264 | 34,111 | 29,749 | |||||||||
Deferred Income tax (Note 35 a.) | (249,931 | ) | 101,476 | 124,936 | ||||||||
Minimum Presumed Income Tax (Note 35 a. ) | 328,619 | (44,198 | ) | (25,906 | ) | |||||||
Non-controlling interest (Note 35 m.) | 104,333 | 46,512 | 35,812 | |||||||||
Net income (loss) in accordance with U.S. GAAP | Ps. | 2,527,694 | Ps. | 885,752 | Ps. | (1,279,699 | ) | |||||
Less Net Loss / (Income) attributable to the Non-controlling Interest (Note 35 m) | (234,121 | ) | (115,529 | ) | 108,721 | |||||||
Net Income (Loss) attributable to Parent Company in accordance with U.S. GAAP | Ps. | 2,293,573 | Ps. | 770,223 | Ps. | (1,170,978 | ) | |||||
Average number of shares outstanding (in thousands) (Note 21) | 1,241,407 | 1,241,407 | 1,241,407 | |||||||||
Basic net income (loss) per share in accordance with U.S. GAAP (Note 21) | 1,848 | 0.620 | (0.943 | ) | ||||||||
Diluted net income (loss) per share in accordance with U.S. GAAP (Note 21) | 1,848 | 0.620 | (0.943 | ) | ||||||||
F-95
Table of Contents
For the years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||
2010 | 2009 | |||||||
Shareholders’ equity as stated | Ps. | 2,469,500 | Ps. | 2,052,539 | ||||
Loan origination fees and costs (Note 35 b.) | (84,642 | ) | (92,064 | ) | ||||
Intangible assets: | ||||||||
Goodwill amortization and impairment (Note 35 c.) | 32,135 | 25,207 | ||||||
Negative Goodwill (Note 35 c.) | 465,634 | — | ||||||
Software Cost (Note 35 c.) | (133,613 | ) | (77,354 | ) | ||||
Compensation related to the payment of deposits (Note 35 g.) | — | (259,053 | ) | |||||
Equity investments in other companies — Impairment (Note 35 k.) | (29,738 | ) | (31,548 | ) | ||||
Loans —non Financial Public Sector — Secured loans (Note 35 d.(i)) | — | (282 | ) | |||||
Loan impairment — Private sector (Note 35 d.(ii)) | 65,483 | 63,671 | ||||||
Government securities and other investments: | ||||||||
Compensatory and Hedge Bond received (Note 35 e.(i)) | — | (175,818 | ) | |||||
Discount Bonds (Note 35 e.(ii)) | — | (296,477 | ) | |||||
GDP — Linked Negotiable Securities (Note 35 e. (ii)) | — | 12,366 | ||||||
Bonar 2015 Bonds (Note 35 e. (iii)) | 84,496 | 317,596 | ||||||
Other Investments (Note 35 e. (iv)) | (8,975 | ) | (22,369 | ) | ||||
Securitizations (Note 35 h.) | (54,132 | ) | (429,280 | ) | ||||
Impairment of real estate properties and foreclosed assets (Note 35 j.) | (67,155 | ) | (67,155 | ) | ||||
Amortization of real estate properties and foreclosed assets previously impaired under U.S. GAAP (Note 35 j.) | 11,160 | 9,765 | ||||||
Minimum Presumed Income Tax (Note 35 a.) | — | (328,619 | ) | |||||
Deferred Income tax (Note 35 a.) | 326,779 | 576,710 | ||||||
Recognition for the fair value of obligations assumed under financial guarantees issued (Note 35 l.) | (3,848 | ) | (4,149 | ) | ||||
Foreign debt restructuring (Note 35 n.) | (76,008 | ) | (137,272 | ) | ||||
Non-controlling interest (Note 35m.) | 382,211 | 288,569 | ||||||
Consolidated shareholders’ equity (deficit) in accordance with U.S. GAAP | Ps. | 3,379,287 | Ps. | 1,424,983 | ||||
Non-controlling Interest (Note 35 m.) | (382,220 | ) | (188,661 | ) | ||||
Consolidated Parent Company Shareholders Equity (Deficit) in accordance with U.S. GAAP | Ps. | 2,997,067 | Ps. | 1,236,322 | ||||
F-96
Table of Contents
For the fiscal years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
Other | Total | |||||||||||||||||||||||||||||||||||
Adjustments to | Comprehensive | (Accumulated | Shareholders’ | |||||||||||||||||||||||||||||||||
Capital | Paid | Shareholders’ | Profit reserves | Income | deficit) /Retained | Equity Parent | Non controlling | |||||||||||||||||||||||||||||
Stock | in Capital | Equity | Legal | Other | (loss) | Earnings | Company | interest | ||||||||||||||||||||||||||||
Balance at December 31, 2007 | Ps. | 1,241,407 | Ps. | 606 | Ps. | 294,254 | Ps. | 34,855 | Ps. | 53,469 | Ps. | (143,821 | ) | Ps. | (1,242,688 | ) | Ps. | 238,082 | Ps. | (115,916 | ) | |||||||||||||||
Distribution of retained earnings: | ||||||||||||||||||||||||||||||||||||
Absorption approved by the shareholders’ meeting on April 29,2008 | ||||||||||||||||||||||||||||||||||||
Legal Reserve | — | — | — | 2,302 | — | — | (2,302 | ) | — | — | ||||||||||||||||||||||||||
Discretionary Reserve | — | — | — | — | 43,735 | — | (43,735 | ) | — | — | ||||||||||||||||||||||||||
Unrealized gain of available-for-sale securities, net of tax | — | — | — | — | — | 178,483 | — | 178,483 | 7,195 | |||||||||||||||||||||||||||
Net Income (Loss) in accordance with U.S. GAAP | — | — | — | — | — | — | (1,170,978 | ) | (1,170,978 | ) | 108,721 | |||||||||||||||||||||||||
Balance at December 31, 2008 | Ps. | 1,241,407 | Ps. | 606 | Ps. | 294,254 | Ps. | 37,157 | Ps. | 97,204 | Ps. | 34,662 | Ps. | (2,459,703 | ) | Ps. | (754,413 | ) | Ps. | — | ||||||||||||||||
Distribution of retained earnings: | ||||||||||||||||||||||||||||||||||||
Absorption approved by the shareholders’ meeting on April 28,2009 | ||||||||||||||||||||||||||||||||||||
Legal Reserve | — | — | — | 8,841 | — | — | (8,841 | ) | — | — | ||||||||||||||||||||||||||
Discretionary Reserve | — | — | — | — | 167,978 | — | (167,978 | ) | — | — | ||||||||||||||||||||||||||
Net, unrealized gain / (loss) of available-for-sale securities, net of tax | — | — | — | — | — | 1,220,512 | — | 1,220,512 | (73,132 | ) | ||||||||||||||||||||||||||
Net Income (Loss) in accordance with U.S. GAAP | — | — | — | — | — | — | 770,223 | 770,223 | (115,529 | ) | ||||||||||||||||||||||||||
Balance at December 31, 2009 | Ps. | 1,241,407 | Ps. | 606 | Ps. | 294,254 | Ps. | 45,998 | Ps. | 265,182 | Ps. | 1,255,174 | Ps. | (1,866,299 | ) | Ps. | 1,236,322 | Ps. | (188,661 | ) | ||||||||||||||||
Distribution of retained earnings: | ||||||||||||||||||||||||||||||||||||
Absorption approved by the shareholders’ meeting on April 28,2010 | ||||||||||||||||||||||||||||||||||||
Legal Reserve | — | — | — | 11,464 | — | — | (11,464 | ) | — | — | ||||||||||||||||||||||||||
Discretionary Reserve | — | — | — | — | 217,811 | — | (217,811 | ) | — | — | ||||||||||||||||||||||||||
Net, unrealized gain / (loss) of available-for-sale securities, net of tax | — | — | — | — | — | (532,828 | ) | — | (532,828 | ) | 40,562 | |||||||||||||||||||||||||
Net Income (Loss) in accordance with U.S. GAAP | — | — | — | — | — | — | 2,293,573 | 2,293,573 | (234,121 | ) | ||||||||||||||||||||||||||
Balance at December 31, 2010 | Ps. | 1,241,407 | Ps. | 606 | Ps. | 294,254 | Ps. | 57,462 | Ps. | 482,993 | Ps. | 722,346 | Ps. | 197,999 | Ps. | 2,997,067 | Ps. | (382,220 | ) | |||||||||||||||||
F-97
Table of Contents
For the fiscal years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Income Statement | ||||||||||||
Financial Income | Ps. | 4,779,236 | Ps. | 3,374,800 | Ps. | 1,201,697 | ||||||
Financial Expenditures | 1,343,357 | 1,434,408 | 1,391,270 | |||||||||
Net Financial Income (Loss) | 3,435,879 | 1,940,392 | (189,573 | ) | ||||||||
Provision for Loan Losses | 549,712 | 527,339 | 450,137 | |||||||||
Income from Services | 2,506,687 | 1,802,381 | 1,538,380 | |||||||||
Expenditures from Services | 721,124 | 515,648 | 383,654 | |||||||||
Administrative Expenses | 2,881,200 | 2,063,546 | 1,799,579 | |||||||||
Net Income / (Loss) from Financial Brokerage | 1,790,530 | 636,240 | (1,284,563 | ) | ||||||||
Miscellaneous Income | 1,542,945 | 594,630 | 494,977 | |||||||||
Miscellaneous Losses | 297,659 | 290,602 | 541,035 | |||||||||
Net Income / (Loss) before Income tax | 3,035,816 | 940,268 | (1,330,621 | ) | ||||||||
Income Tax | 508,122 | 54,516 | (50,922 | ) | ||||||||
Net income (loss) under U.S. GAAP | 2,527,694 | 885,752 | (1,279,699 | ) | ||||||||
Less Net (Income) / Loss attributable to the Non-controlling Interest | (234,121 | ) | (115,529 | ) | 108,721 | |||||||
Net Income / (Loss) attributable to Parent Company | 2,293,573 | 770,223 | (1,170,978 | ) | ||||||||
Other comprehensive income (loss): | ||||||||||||
Unrealized gains (losses) on securities, net | (532,828 | ) | 1,220,512 | 178,483 | ||||||||
Other comprehensive income (loss), net | (532,828 | ) | 1,220,512 | 178,483 | ||||||||
Comprehensive income (Loss) | Ps. | 1,760,745 | Ps. | 1,990,735 | Ps. | (992,495 | ) | |||||
December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Boden 2012 Bonds — Compensatory Bond (1) | — | 830,119 | — | |||||||||
GalTrust I (2) | 566,115 | 193,651 | — | |||||||||
Discount Bonds (3) | — | 132,209 | — | |||||||||
Bonar 2015 Bonds | 198,693 | 85,032 | — | |||||||||
Other | (3,167 | ) | 83,329 | 26,549 | ||||||||
Accumulated other comprehensive income | Ps. | 761,641 | Ps. | 1,324,340 | Ps. | 26,549 | ||||||
Less, accumulated other comprehensive income attributable to the Non-controlling interest | (39,295 | ) | (69,166 | ) | 8,113 | |||||||
Net accumulated other comprehensive income attributable to Parent Company | Ps. | 722,346 | Ps. | 1,255,174 | Ps. | 34,662 | ||||||
F-98
Table of Contents
For the fiscal years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
(1) | During the year ended December 31, 2010, the group sold all it position in Boden 2012 Bonds — Compensatory Bonds, generated a gain of Ps.1,005,937 recorded under the caption “Financial Income” in the consolidated income Statement Under U.S. GAAP. | |
(2) | In 2010, the Group adopted ASU 2009-16 and ASU 2009-17. Under these new standards, the Group started consolidated Galtrust I, including the Bogar Bonds for an amount of Ps.783,761 recorded as assets in such trust. Prior to 2010, the Group only recorded the Certificates of Participation it held in such trust. | |
(3) | During the year ended December 31, 2010, the group sold all it position in Discount Bonds, generated a gain of Ps.428,686 recorded under the caption “Financial Income” in the consolidated income Statement Under U.S. GAAP |
F-99
Table of Contents
For the fiscal years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
December 31, 2010 | December 31, 2009 | |||||||||||||||
Argentine | Argentine | |||||||||||||||
Banking | Banking | |||||||||||||||
GAAP | U.S. GAAP | GAAP | U.S. GAAP | |||||||||||||
Argentine national government loans | Ps. | 21,397 | Ps. | 21,397 | Ps. | 25,416 | Ps. | 25,134 | ||||||||
Other Argentine public-sector receivables | 266,254 | 202,964 | 344,842 | 271,024 | ||||||||||||
Galtrust I (securitization of Provincial Loans) | 515,966 | 515,966 | 579,730 | 207,266 | ||||||||||||
Compensatory bond received | — | — | 1,906,907 | 1,731,089 | ||||||||||||
Securities issued by the Argentine Central Bank | 2,411,393 | 2,405,585 | 1,953,676 | 1,953,827 | ||||||||||||
Discount Bonds & GDP Linked Negotiable Securities | — | — | 621,983 | 337,872 | ||||||||||||
Bonar 2015 Bonds | 642,147 | 726,643 | 358,984 | 676,580 | ||||||||||||
Other (1) | 87,289 | 87,289 | 91,420 | 91,420 | ||||||||||||
Total | Ps. | 3,944,446 | Ps. | 3,959,844 | Ps. | 5,882,958 | Ps. | 5,294,212 | ||||||||
(1) | Includes bonds and other national government bonds. |
F-100
Table of Contents
For the fiscal years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
F-101
Table of Contents
For the fiscal years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||
2010 | 2009 | |||||||
ASSETS | ||||||||
A. Cash and due from Banks | ||||||||
Cash | Ps. | 11 | Ps. | 11 | ||||
Financial institutions and correspondents | 819 | 63 | ||||||
Ps. | 830 | Ps. | 74 | |||||
B. Government and corporate securities | ||||||||
Holdings of trading securities | — | — | ||||||
Investments in listed corporate securities | — | 13,118 | ||||||
Ps. | — | Ps. | 13,118 | |||||
C. Loans | ||||||||
To the financial sector | 57,857 | 52,757 | ||||||
Ps. | 57,857 | Ps. | 52,757 | |||||
D. Other receivables resulting from financial brokerage | ||||||||
Negotiable obligations without quotation | — | — | ||||||
Balances from forward transactions without delivery of underlying asset to be settled | — | — | ||||||
Other receivables not included in the debtor classification Regulations | 1,198 | 1,786 | ||||||
Other receivables included in the debtor classification Regulations | 25,268 | 17,381 | ||||||
Accrued interest receivable included in the debtor Classification regulations | 2 | 181 | ||||||
Ps. | 26,468 | Ps. | 19,348 | |||||
F. Equity investments | ||||||||
In financial institutions | 2,522,197 | 2,072,245 | ||||||
Other | 88,948 | 84,812 | ||||||
Ps. | 2,611,145 | Ps. | 2,157,057 | |||||
G. Miscellaneous receivables | ||||||||
Tax on minimum presumed income — Tax credit | — | 908 | ||||||
Other | 1,428 | 2,980 | ||||||
Ps. | 1,428 | Ps. | 3,888 | |||||
H. Bank premises and equipment | 1,012 | 2,993 | ||||||
J. Intangible assets | ||||||||
Goodwill | 12,766 | 9,697 | ||||||
Organization and development expenses | 36 | 26 | ||||||
Ps. | 12,802 | Ps. | 9,723 | |||||
Total Assets | Ps. | 2,711,542 | Ps. | 2,258,958 | ||||
F-102
Table of Contents
For the fiscal years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||
2010 | 2009 | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
N. Other liabilities resulting from financial brokerage | ||||||||
Banks and international entities | Ps. | — | Ps. | — | ||||
Unsubordinated negotiable obligations | 221,048 | 166,056 | ||||||
Balances from forward transactions without delivery of underlying asset to be settled | 7,830 | 8,060 | ||||||
Accrued interest and quotation differences payable | 2,133 | 930 | ||||||
231,011 | 175,046 | |||||||
O. Miscellaneous liabilities | ||||||||
Directors’ and Syndics’ fees | Ps. | 195 | Ps. | 225 | ||||
Other | 10,836 | 31,148 | ||||||
11,031 | 31,373 | |||||||
Total Liabilities | Ps. | 242,042 | Ps. | 206,419 | ||||
SHAREHOLDERS’ EQUITY | Ps. | 2,469,500 | Ps. | 2,052,539 | ||||
Total Liabilities and Shareholders’ Equity | Ps. | 2,711,542 | Ps. | 2,258,958 | ||||
F-103
Table of Contents
For the fiscal years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
A. Financial income | ||||||||||||
Interest on loans granted to the financial sector | 181 | 120 | 97 | |||||||||
Interest on other loans | — | — | — | |||||||||
Interest on other receivables resulting from financial brokerage | 54 | 74 | 314 | |||||||||
Net income from government and corporate securities | 161 | 484 | 126 | |||||||||
Exchange rate differences on gold and foreign currency | — | 16,120 | — | |||||||||
Other | — | 27 | — | |||||||||
Ps. | 396 | Ps. | 16,825 | Ps. | 537 | |||||||
B. Financial expenses | ||||||||||||
Interest on other liabilities resulting from financial brokerage | Ps. | 18,796 | Ps. | 11,071 | Ps. | 17,062 | ||||||
Exchange rate differences on gold and foreign currency | 23,221 | — | 11,258 | |||||||||
Other | 243 | 266 | 280 | |||||||||
Ps. | 42,260 | Ps. | 11,337 | Ps. | 28,600 | |||||||
C. Gross brokerage margin | (41,864 | ) | 5,488 | (28,063 | ) | |||||||
F. Administrative expenses | ||||||||||||
Personnel expenses | 6,338 | 3,786 | 3,492 | |||||||||
Directors’ and syndics’ fees | 1,362 | 1,080 | 1,013 | |||||||||
Other fees | 4,144 | 5,125 | 3,182 | |||||||||
Taxes | 2,993 | 6,984 | 1,208 | |||||||||
Other operating expenses | 717 | 685 | 521 | |||||||||
Other | 7,559 | 5,558 | 5,080 | |||||||||
Ps. | 23,113 | Ps. | 23,218 | Ps. | 14,496 | |||||||
Net Income from financial brokerage | Ps. | (64,977 | ) | Ps. | (17,730 | ) | Ps. | (42,559 | ) | |||
H. Miscellaneous income | ||||||||||||
Net income from equity investments | 473,918 | 188,069 | 219,688 | |||||||||
Other | 2,722 | 86,090 | 1,557 | |||||||||
Ps. | 476,640 | Ps. | 274,159 | Ps. | 221,245 | |||||||
I. Miscellaneous losses | ||||||||||||
Other | 2,733 | 2,401 | 3,952 | |||||||||
Ps. | 2,733 | Ps. | 2,401 | Ps. | 3,952 | |||||||
Net Income before tax | 408,930 | 254,028 | 174,734 | |||||||||
J. Income tax | Ps. | 29 | Ps. | 24,753 | Ps. | (2,085 | ) | |||||
Net income for the fiscal year | Ps. | 408,901 | Ps. | 229,275 | Ps. | 176,819 | ||||||
(1) | Includes the foreign currency position compensation. |
F-104
Table of Contents
For the fiscal years ended December 31, 2010, 2009 and 2008
(Expressed in thousands of Argentine pesos)
December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
CHANGES IN CASH AND CASH EQUIVALENTS | ||||||||||||
Cash and cash equivalents at the beginning of the year | Ps. | 19,422 | Ps. | 27,562 | Ps. | 26,407 | ||||||
Increase / (decrease) in cash and cash equivalents | 7,876 | (8,140 | ) | 1,155 | ||||||||
Cash and cash equivalents at end of year | 27,298 | 19,422 | 27,562 | |||||||||
Cash and cash equivalents provided by (used in) operating activities | ||||||||||||
Less: | ||||||||||||
Operating expenses paid | (31,706 | ) | (27,160 | ) | (15,349 | ) | ||||||
Income Tax payment and prepayment | (21,822 | ) | — | — | ||||||||
Plus: | ||||||||||||
Other operating income received | 1,132 | 2,996 | 5,294 | |||||||||
Cash and cash equivalents provided by (used in) operating activities | Ps. | (52,396 | ) | Ps. | (24,164 | ) | Ps. | (10,055 | ) | |||
Other sources of cash and cash equivalents | ||||||||||||
Collection for the issuance of negotiable obligations | 168,745 | 160,345 | — | |||||||||
Loan received | — | — | — | |||||||||
Dividends | 18,813 | 15,969 | 12,163 | |||||||||
Increase in short-term investment | — | 4,022 | 1,676 | |||||||||
Collection of deposit as per Decree 616/2005 | — | — | 72,360 | |||||||||
Collection for sale of fixed assets | 8,385 | — | — | |||||||||
Other sources of cash and cash equivalents | 2,675 | 581 | 1,806 | |||||||||
Other sources of cash and cash equivalents | Ps. | 198,618 | Ps. | 180,917 | Ps. | 88,005 | ||||||
Other uses of cash and cash equivalents | ||||||||||||
Payment of loans received | (134,030 | ) | (152,772 | ) | (76,760 | ) | ||||||
Increase in fixed assets | (246 | ) | (39 | ) | (24 | ) | ||||||
Increase in long-term investments | (4,070 | ) | (12,082 | ) | (11 | ) | ||||||
Total other uses of cash and cash equivalents | Ps. | (138,346 | ) | Ps. | (164,893 | ) | Ps. | (76,795 | ) | |||
Increase / (decrease) in cash and cash equivalents | Ps. | 7,876 | Ps. | (8,140 | ) | Ps. | 1,155 | |||||
F-105