Grupo Financiero | Galicia
FOR IMMEDIATE RELEASE
For more information contact:
Pedro A. Richards
Managing Director
Telefax: (5411) 4343-7528
prichards@gfgsa.com
investorelations@gfgsa.com
www.gfgsa.com
GRUPO FINANCIERO GALICIA S.A. REPORTS FINANCIAL RESULTS FOR
ITS FOURTH QUARTER ENDED DECEMBER 31, 2003
> (Buenos Aires, Argentina, February 06, 2004) - Grupo Financiero
Galicia S.A. ("Grupo Galicia", "GFG") (Buenos Aires Stock Exchange:
GGAL / NASDAQ: GGAL) today announced its consolidated financial
results for the fourth quarter of fiscal year 2003, ended December 31,
2003.
NET LOSS FOR THE QUARTER ENDED DECEMBER 31, 2003
> Net loss for the fourth quarter ended December 31, 2003, was Ps. 21.8
million, or Ps. 0.020 per share, equivalent to Ps. 0.200 per ADS.
These results were mainly generated by those of Banco de Galicia y
Buenos Aires S.A. ("Banco Galicia") which has continued to be the main
source of the company's results.
> Net loss for the fiscal year ended December 31, 2003, was Ps. 217.1
million, or Ps. 0.199 per share, equivalent to Ps. 1.990 per ADS,
taking into account the total number of shares outstanding as of
December 31, 2003.
> Grupo Galicia's financial statements, tables and exhibits as of
December 31, 2003, have been restated for inflation until February 28,
2003 using the Wholesale Price Index (IPIM) published by the National
Bureau of Statistics and Census (INDEC).
> During fiscal year 2002, the line-by-line consolidation of the
consolidated balance sheet of Banco Galicia Uruguay S.A. ("Galicia
Uruguay") had been discontinued by Banco Galicia. As the reception of
the financial statements of Galicia Uruguay and its subsidiaries has
been regularized, in the quarter ended September 30, 2003 the
information that is exposed includes the consolidation on a
line-by-line basis of the financial statements of Galicia Uruguay,
Banco de Galicia (Cayman) Ltd. (in provisional liquidation) and its
subsidiaries. In consequence, the quarter ended September 30, 2003
includes in each line of the consolidated income statement the results
corresponding to the nine months of the aforementioned companies, not
affecting the consolidated net income.
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Grupo Financiero | Galicia
> The following table below shows results per share information, based
on Grupo Galicia's financial statements.
In pesos
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FY 2003 FY 2002 twelve months ended at:
-------- -------- --------------------------
Earnings per Share 4Q 4Q
12/31/03 12/31/02 12/31/03 12/31/02
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Total Average Shares (in thousands) 1,092,407 1,092,407 1,092,407 1,092,407
Book Value per Share 1.339 1.500 1.339 1.500
Book Value per ADS(*) 13.390 15.000 13.390 15.000
Earnings per Share (**) (0.020) (0.360) (0.199) (1.347)
Earnings per ADS (*) (**) (0.200) (3.600) (1.990) (13.470)
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(*) 1 ADS = 10 ordinary shares
(**) Twelve months ended as of 12/31/03 including absorption regulated by
Argentine Central Bank's Communique "A" 3703 and 3800
> Grupo Galicia's fourth quarter net income represents an annualized
return of (0.34)% on average assets and (5.98)% on average
shareholders' equity.
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FY 2003 FY 2002 twelve months ended at:
------- ------- --------------------------
Profitability 4Q 4Q 12/31/03 12/31/02
% % % %
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Return on Average Assets (*) (0.34) (4.94) (0.92) (6.34)
Return on Average Shareholders Equity (*) (5.98) (83.44) (14.19) (60.51)
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(*) Annualized
> Table below shows the Grupo Financiero Galicia's income statement for
the fiscal year 2003, without consolidation.
In millions as of December 31, 2003 constant pesos
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twelve months ended at
==========================
12/31/03 12/31/02
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Income from equity investments (201.8) (1,453.3)
Administrative expenses (5.5) (8.1)
Net Other income 8.1 0.6
Net Financial income (17.9) 48.5
Income tax - (59.2)
Net income for the year (271.1) (1,471.5)
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> The following table below shows a "Net Income by Business" analysis.
It includes a breakdown on Grupo Financiero Galicia's result
information by subsidiary.
> The "Income from stake in Sudamericana Holding" line includes the
company's results as of September 2003 and the company's goodwill
amortization.
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Grupo Financiero | Galicia
> The "Income from stake in Galicia Warrants" line includes the
company's results as of October 2003, the company's goodwill
amortization and the impairment adjustment.
> The "Result adjustment by deferred tax in subsidiary companies" shows
the income tax charge determined according to the deferred tax method
on Banco Galicia's subsidiaries. This adjustment was not made in Banco
Galicia because Argentine Central Bank regulations do not contemplate
the application of the deferred tax method.
In millions as of December 31, 2003 constant pesos
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FY 2003 twelve months ended at
----------------------- --------------------------
4th. Q 3rd. Q 12/31/03 12/31/02
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Income from stake in Banco Galicia (93.56%) (41.9) (61.0) (186.2) (1,439.9)
Income from stake in Net Investment (87.5%) (0.4) (0.3) (5.3) (6.8)
Income from stake in Sudamericana Holding (87.5%) 0.7 (3.8) (9.4) (4.4)
Income from stake in Galicia Warrants (87.5%) (0.1) 0.2 (3.3) (2.2)
Result adjustments by deferred tax in subsidiary companies 18.5 (5.7) 2.4 -
Other Income GFG 1.4 2.4 (15.3) 41.0
Income tax - - - (59.2)
Net Income for the period (21.8) (68.2) (271.1) (1,471.5)
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CONFERENCE CALL
On Friday, February 13 at 11:00 A.M. Eastern Standard Time (1:00 P.M. Buenos
Aires Time), GFG will host a conference call to review these results.
The call-in number is: (719) 457-2600
If you are unable to participate in the call, a replay will be available from
Friday, February 13 at 2:00 P.M. Eastern Standard Time until Wednesday, February
18 at 12:00 P.M. Eastern Standard Time dialing (719) 457-0820, pass code:
416113.
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Grupo Financiero | Galicia
Grupo Financiero Galicia S.A.
SELECTED FINANCIAL INFORMATION - CONSOLIDATED DATA (*)
In millions of pesos
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12/31/03 09/30/03 06/30/03 03/31/03 12/31/02
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CASH AND DUE FROM BANKS 826.2 835.0 932.1 573.1 546.1
GOVERNMENT AND CORPORATE SECURITIES 2,900.1 2,812.0 1,521.1 1,643.6 1,828.6
LOANS 10,983.8 10,601.5 9,508.9 9,436.2 9,584.4
OTHER RECEIVABLES RESULTING FROM FINANCIAL BROKERAGE
6,197.4 6,495.0 7,709.0 8,065.6 9,242.6
EQUITY IN OTHER COMPANIES 87.1 88.3 94.0 94.2 104.3
BANK PREMISES AND EQUIPMENT, MISCELLANEOUS AND
INTANGIBLE ASSETS 1,402.7 1,426.2 1,435.5 1,477.3 1,056.7
OTHER ASSETS 497.4 481.3 486.0 443.5 367.6
TOTAL ASSETS 22,894.7 22,739.3 21,686.6 21,733.5 22,730.3
DEPOSITS 5,584.0 5,471.7 5,048.1 4,766.6 4,732.9
- - Non-Financial Government Sector 12.4 5.1 4.9 3.0 7.9
- - Financial Sector 19.5 18.7 2.4 2.9 2.9
- - Non-Financial Private Sector and Residents Abroad 5,552.1 5,447.9 5,040.8 4,760.7 4,722.1
- Current Accounts 1,163.7 1,086.7 917.2 738.2 738.6
- Savings Accounts 818.9 783.2 500.1 379.8 345.4
- Time Deposits 2,838.5 2,786.0 2,569.7 2,092.4 2,188.9
- Investment Accounts 0.2 1.0 1.0 0.0 0.0
- Other 533.6 575.1 765.4 1,135.4 1,044.6
- Accrued interest and quotation differences payable 197.2 215.9 287.4 414.9 404.6
OTHER BANKS AND INTERNATIONAL ENTITIES 2,867.2 2,865.0 2,804.6 2,968.2 3,386.0
NEGOTIABLE OBLIGATIONS 2,392.9 2,425.2 1,545.0 1,642.5 1,895.2
OTHER LIABILITIES 10,492.4 10,401.2 10,658.6 10,670.2 10,993.8
MINORITY INTERESTS 95.9 93.1 92.6 87.8 83.8
TOTAL LIABILITIES 21,432.4 21,256.2 20,148.9 20,135.3 21,091.7
SHAREHOLDERS' EQUITY 1,462.3 1,483.1 1,537.7 1,598.2 1,638.6
INFLATION AND EXCHANGE RATE
Retail Price Index (%) (**) 1.05 0.51 (0.42) 2.49 1.66
Wholesale Price Index (%) (**) 3.42 1.20 (2.61) 0.25 (1.47)
C.E.R. (%) (**) 0.83 0.31 0.44 2.05 2.46
Exchange Rate ($/US$S) (***) 2.9330 2,9110 2.8075 2.9625 3.3630
(*) Grupo Financiero Galicia S.A., consolidated with subsidiary companies
(Art. 33 - Law 19550). Quarter ended 09/30/03 consolidated with Banco
Galicia Uruguay S.A.
(**) Variation within the quarter.
(***) Last working day of the quarter.
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Grupo Financiero | Galicia
Grupo Financiero Galicia S.A.
SELECTED FINANCIAL INFORMATION - CONSOLIDATED DATA (*)
In millions of pesos
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Quarter ended: 12/31/03 09/30/03 06/30/03 03/31/03 12/31/02
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FINANCIAL INCOME 328.0 386.8 299.4 667.7 318.4
- - Interest on Cash and Due from Banks (0.1) 0.1 0.0 0.0 0.2
- - Interest on Loans to the Financial Sector (0.3) 36.2 34.2 31.0 27.8
- - Interest on Overdrafts 9.1 7.7 10.0 12.0 87.1
- - Interest on Notes 36.6 89.5 36.1 30.6 75.6
- - Interest on Mortgage Loans 17.7 24.5 36.7 15.9 22.2
- - Interest on Pledge Loans 0.8 4.1 6.2 0.6 (4.0)
- - Interest on Credit Card Loans 34.2 32.1 31.3 29.9 29.5
- - Interest on Other Loans 4.4 11.8 6.8 5.9 16.9
- - Net Income from Government and Corporate Securities 57.9 15.7 20.5 35.1 24.0
- - On Other Receivables Resulting from Financial Brokerage 17.1 22.5 24.4 34.7 51.9
- - Net Income from Guaranteed Loans-Decree 1387/01 65.3 62.5 59.8 35.3 (70.9)
- - Adjustment by application of adjusting indes 47.3 66.3 67.1 396.1 283.9
- - Adjustment by application of CVS 35.0 0.0 0.0 0.0 0.0
- - Other 3.0 13.8 (33.7) 40.6 (225.8)
FINANCIAL EXPENSES 260.8 (38.8) 334.7 946.2 625.3
- - Interest on Demand Accounts Deposits 1.0 (5.6) 3.2 4.4 2.1
- - Interest on Saving Accounts Deposits 0.9 0.8 0.7 0.6 0.2
- - Interest on Time Deposits 29.5 38.3 72.8 61.2 75.8
- - Interest on Loans from Financial Sector 2.0 1.5 1.5 1.8 13.6
- - For other Liabilities resulting from Financial Brokerage 90.8 83.3 79.4 87.1 267.6
- - Other Interest 104.7 75.6 107.0 121.5 193.8
- - Adjustment by application of adjusting index 24.3 8.8 13.7 140.7 59.3
- - Other 7.6 (241.5) 56.4 528.9 12.9
GROSS BROKERAGE MARGIN 67.2 425.6 (35.3) (278.5) (306.9)
PROVISIONS FOR LOAN LOSSES (97.7) 260.6 64.3 59.2 128.6
INCOME FROM SERVICES, NET 99.1 93.3 88.6 80.4 79.8
MONETARY LOSS FROM FINANCIAL INTERMEDIATION 0.0 0.0 0.0 (14.5) 135.9
ADMINISTRATIVE EXPENSES 148.0 155.3 131.6 128.5 235.9
- - Personnel Expenses 66.4 67.3 54.7 55.1 142.4
- - Directors' and Syndics' Fees 0.5 0.3 0.4 0.7 0.5
- - Other Fees 5.9 10.0 3.1 2.3 7.0
- - Advertising and Publicity 7.5 6.9 2.8 2.8 4.8
- - Taxes 7.8 8.8 6.9 6.3 6.8
- - Other Operating Expenses 48.0 50.1 54.2 52.3 58.0
- - Other 11.9 11.9 9.5 9.0 16.4
MONETARY GAIN FROM OPERATING EXPENSES 0.0 0.0 0.0 0.1 (0.3)
MINORITY INTEREST (2.8) 0.3 (4.3) (2.8) (103.0)
INCOME FROM EQUITY INVESTMENTS (1.5) (2.0) (10.1) (9.0) 59.4
NET OTHER INCOME (133.4) (169.7) 91.6 354.5 226.5
MONETARY GAIN (LOSS) ON OTHER TRANSACTIONS 0.1 0.0 (13.3) 9.7 (74.5)
INCOME TAX 0.2 (0.2) (10.2) 10.8 45.2
NET INCOME (21.8) (68.2) (68.5) (58.6) (392.8)
(*) Grupo Financiero Galicia S.A., consolidated with subsidiary companies (Art.
33 - Law 19550). Quarter ended 09/30/03 consolidated with Banco Galicia
Uruguay S.A. and subsidiaries (9 months).
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Grupo Financiero | Galicia
Grupo Financiero Galicia S.A.
SELECTED FINANCIAL INFORMATION - CONSOLIDATED DATA (*)
In millions of pesos
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Twelve months ended at: 12/31/03 12/31/02
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FINANCIAL INCOME 1.681,9 5.375,7
- - Interest on Cash and Due from Banks 0,0 1,1
- - Interest on Loans to the Financial Sector 101,1 85,7
- - Interest on Overdrafts 38,8 135,3
- - Interest on Notes 192,8 158,7
- - Interest on Mortgage Loans 94,8 111,0
- - Interest on Pledge Loans 11,7 21,5
- - Interest on Credit Card Loans 127,5 177,0
- - Interest on Other Loans 28,9 113,4
- - Net Income from Government and Corporate Securities 129,2 585,2
- - On Other Receivables Resulting from Financial Brokerage 98,7 230,3
- - Net Income from Guaranteed Loans-Decree 1387/01 222,9 223,7
- - Adjustment by application of adjusting indes 576,8 3.202,5
- - Adjustment by application of CVS 35,0 0,0
- - Other 23,7 330,3
FINANCIAL EXPENSES 1.502,9 4.507,6
- - Interest on Demand Accounts Deposits 3,0 17,1
- - Interest on Saving Accounts Deposits 3,0 3,2
- - Interest on Time Deposits 201,8 266,6
- - Interest on Loans from Financial Sector 6,8 24,9
- - For other Liabilities resulting from Financial Brokerage 340,6 653,0
- - Other Interest 408,8 1.584,5
- - Net income/(loss) on options 0,0 0,3
- - Adjustment by application of adjusting index 187,5 1.734,7
- - Other 351,4 223,3
GROSS BROKERAGE MARGIN 179,0 868,1
PROVISIONS FOR LOAN LOSSES 286,4 1.421,7
INCOME FROM SERVICES, NET 361,4 374,2
MONETARY LOSS FROM FINANCIAL INTERMEDIATION (14,5) (1.437,7)
ADMINISTRATIVE EXPENSES 563,4 900,4
- - Personnel Expenses 243,5 480,6
- - Directors' and Syndics' Fees 1,9 3,1
- - Other Fees 21,3 22,8
- - Advertising and Publicity 20,0 14,7
- - Taxes 29,8 42,0
- - Other Operating Expenses 204,6 285,5
- - Other 42,3 51,7
MONETARY GAIN FROM OPERATING EXPENSES 0,1 21,0
MINORITY INTEREST (9,6) 269,5
INCOME FROM EQUITY INVESTMENTS (22,6) (10,9)
NET OTHER INCOME 143,0 (376,8)
MONETARY GAIN (LOSS) ON OTHER TRANSACTIONS (3,5) (161,0)
INCOME TAX 0,6 65,8
NET INCOME BEFORE ABSORPTION 217,1) (2.841,5)
ABSORPTION "AD-REFERENDUM" OF THE SHAREHOLDERS' MEETING 0,0 1.370,0
NET INCOME AFTER THE ABSORPTION (217,1) (1.471,5)
(*) Grupo Financiero Galicia S.A., consolidated with subsidiary companies (Art.
33 - Law 19550).