Grupo Financiero Galicia Sa Class B · BCBA:GGAL
Grupo Financiero Galicia Sa Class B — Q2 2024 Earnings Presentation
54 slides from Grupo Financiero Galicia Sa Class B's earnings presentation, August 2024
Slide 1: Investor Presentation
August 2024 z Informe de resultados 1 Investor Presentation
Slide 2: Agenda
Agenda 01 03 05 07 The Argentine Grupo Financiero Naranja X Fondos Galicia FIMA Economy 02 04 06 08 The Argentine Banco Galicia Galicia Financial System Galicia Seguros Securities
Slide 3: The Argentine Economy: Economic Activity
Economic Activity The Argentine Economy Real Gross Domestic Product GDP % Change YoY QoQ % Var. (s.a.) YoY % Var. 15% 20% 10.4% 10% 1Q24 10% -2.6% 0% 5.3% 5.0% -10% -5.1% 5% 2.7% 2.8% -20% 1Q18 4Q18 3Q19 2Q20 1Q21 4Q21 3Q22 2Q23 1Q24 0% Industrial Production -2.1% -2.0% -1.6% -2.6% QoQ % Var. (s.a.)
Slide 4: The Argentine Economy: International Environment
International Environment The Argentine Economy Agricultural Commodity Prices Real Effective Exchange Rates Index Dec-01=100. At Today Prices 350 30-Aug-12 321.2 3550 REER REER Blue-Chip Swap Average 300 3050 2550 250 2050 200 1550 20-Aug-24 19-Aug-24 1292 194.7 1050 945 150 27-Apr-20 550 151.4 100
Slide 5: The Argentine Economy: Fiscal Performance
Fiscal Performance The Argentine Economy Non-Financial Public Sector’s Fiscal Balance Argentine Central Bank Financing As % of GDP In USD billion | As % of GDP 4% Primary Fiscal Balance Overall Fiscal Balance Treasury Bond Re-Purchases 2.3% Secondary Market Purchases + Put Options 10% Non-Transferra
Slide 6: The Argentine Economy: Sovereign Debt
Sovereign Debt The Argentine Economy Argentina: Public Sector Gross Debt* Projected Annual Debt Payments* As % of GDP In USD Billion 80,000 Private Holders IFIs 180% Foreign Currency Pesos Public Sector Debt Total Gross Debt 60,000 157% 160% 40,000 140% 130% 20,000 120% 70% 0 104% 2024 2025 2026 202
Slide 7: The Argentine Economy: External Sector Performance
External Sector Performance The Argentine Economy Current and Capital Accounts Foreign Trade Accrual Basis | As % of GDP In USD billion 100 Exports Imports 2% Current Account 88.4 Capital Account 77.9 73.7 74.4 75 65.4 81.5 1% 60.2 54.9 0.2% 63.2 66.8 50 61.6 59.5 0% 56.8 42.4 25 -1% -0.9% 2015 2016
Slide 8: The Argentine Economy: FX Markets
FX Markets The Argentine Economy FX Rates FX Gap In ARS/USD As % of the official exchange rate Official Exchange Rate 200% MEP-GD30 Imports MEP – GD30 1,650 Blue-Chip Swap 180% 1,541 Blue-chip Swap Credit Card Exports 80-20 160% 1,450 1,305 140% 1,250 1,292 120% 1,110 1,050 100% 1,014 945 850 80% 60
Slide 9: The Argentine Economy: Monetary Performance
Monetary Performance The Argentine Economy Monetary Aggregates Net International Reserves 20-day Moving Average | % Change YoY In USD billion 35 350% 25 Monetary Base 15 22-Jan-21 300% Currency in circulation 3.6 20-Aug-24 5 -4.4 M2 (private) 250% CPI -5 250% 249% -15 Jan-19 Sep-19 May-20 Jan-21 Sep
Slide 10: The Argentine Economy: Inflation
Inflation The Argentine Economy National CPI Market Expectations – Central Bank Survey % Change MoM | % Change YoY Annual Inflation 32% 315% 270 2024 2025 285% 220 27% MoM % Var. YoY % Var. 25.5% 170 255% 127.4 Jul-24 263% 120 22% 225% 70 41 195% 20 17% Jan-22 May-22 Sep-22 Jan-23 May-23 Sep-23 Jan-
Slide 11: Agenda
Agenda 01 03 05 07 The Argentine Grupo Financiero Naranja X Fondos Economy Galicia FIMA 02 04 06 08 The Argentine Banco Galicia Galicia Galicia Seguros Securities Financial System
Slide 12: Financial Depth
Financial Depth The Argentine Financial System Deposits and Loans to the Private Sector Financial Depth As % of GDP As % of GDP 99 Deposits Loans Deposits from the Private Sector (ARS + USD) 24 Loans to the Private Sector (ARS +USD) 22.5 22.0 21.6 22 20.6 78 20 20.1 18 18.3 17.3 48 48 16 15.0 45 14.
Slide 13: Private Sector Deposits and Loans
Private Sector Deposits and Loans The Argentine Financial System Deposit Growth Private Sector Loans % Change YoY Monthly % Change YoY Monthly Total Priv. Deposits (ARS+USD) 260% 230% Private Dep. (ARS) Total Private Sector Credit (ARS+USD) Private Sec. Credit (ARS) 229.3% Private Dep. (USD) 210% Pr
Slide 14: Breakdown of Deposits by Currency and Type
Breakdown of Deposits by Currency and Type The Argentine Financial System Private Deposits Mix Deposits in ARS Mix As % of Total Deposits As % of Deposits in ARS 100% 70% ARS USD Current and Saving Accounts 65% Time Deposits 80% 16-Aug-24 77.2% 60% 61.6% 16-Aug-24 60% 55% 55.3% 50% 40% 37.0% 45% 44.
Slide 15: Interest Rates
Interest Rates The Argentine Financial System Private Deposits Mix Cost of Liabilities As % of Total Deposits 120 Private Badlar Spread 109.6 28 125 90 Interest-Earning Assets 26 Interest-Bearing Liabilities 115 60 24 22 105 30 38.4 20 95 0 18 Feb-24 Mar-24 Apr-24 May-24 May-24 Jun-24 Jul-24 Aug-24
Slide 16: Composition of the Banking System
Composition of the Banking System The Argentine Financial System Number Market share Private-Sector Deposits (%) Banking Institutions 63 Government-Owned Banks 13 34.4 Private Sector Banks 50 - Domestic Banks 35 35.3 - Foreing Banks 15 30.3 As of May 31, 2024 (latest available information). 16
Slide 17: Profitability
Profitability The Argentine Financial System ROE ROA 46.4 6.5 36.1 5.4 5.4 29.6 27.6 24.7 4.1 23.4 3.6 16.2 16.4 2.7 2.4 1.9 6.9 1.0 2016 2017 2018 2019 2020 2021 2022 2023 Jun24 2016 2017 2018 2019 2020 2021 2022 2023 Jun24 Efficiency 68.7 65.9 57.6 61.1 52.2 60.2 48.4 48.0 40.5 2016 2017 2018 2019
Slide 18: Relevant Ratios
Relevant Ratios The Argentine Financial System Total Capital Ratio Liquidity Ratio 88.6 38.6 68.7 74.4 29.6 32.4 56.6 60.1 65.0 55.4 23.8 25.6 49.0 42.6 16.7 15.6 16.0 17.5 2016 2017 2018 2019 2020 2021 2022 2023 Jun24 2016 2017 2018 2019 2020 2021 2022 2023 Jun24 NPL Ratio 5.7 4.2 4.3 3.0 3.1 3.5 1
Slide 19: Agenda
Agenda 01 03 05 07 The Argentine Grupo Financiero Naranja X Fondos Economy FIMA Galicia 02 04 06 08 The Argentine Banco Galicia Galicia Financial System Galicia Seguros Securities
Slide 20: Organizational Structure
Organizational Structure Grupo Financiero Galicia EBA HOLDING 19.1% Shares 54.1% Votes 20
Slide 21: Business Summary
Business Summary Grupo Financiero Galicia FINANCIAL ROE ROA EFFICIENCY MARGIN 2Q24 42.5% 2Q24 9.7% 2Q24 53.0% 2Q24 33.0% + 1,657 bp y/y + 487 bp y/y + 2,268 bp y/y - 1,447 bp y/y 6M24 37.6% 6M24 8.5% 6M24 63.4% 6M24 33.8% + 1,980 bp y/y + 512 bp y/y + 3,541 bp y/y - 2,089 bp y/y As of June 30, 2024.
Slide 22: Results from Equity Investments - 2Q24
Results from Equity Investments - 2Q24 Grupo Financiero Galicia In million AR$ 10,272 374 12,020 10,348 80,769 408,985 409,359 295,576 Banco Galicia Naranja X Fondos Fima Galicia Seguros Other Net Income OCI Comprehensive Income Vs 2Q23 350% 300% 11,606% 250% 200% 150% 306% 100% 212% 50% 90% 89% 54%
Slide 23: Agenda
Agenda 01 03 05 07 The Argentine Grupo Financiero Naranja X Fondos Economy Galicia FIMA 02 04 06 08 The Argentine Banco Galicia Galicia Financial System Seguros Securities Galicia
Slide 24: Banco Galicia Business Summary
Business Summary Banco Galicia ROE NET LOANS DEPOSITS 2Q24 36.9% AR$ 4,611 bn AR$ 8,339 bn + 733 bp y/y - 13% y/y - 24% y/y 6M24. 37.1% USD 5.1 bn USD 9.1 bn + 1,760 bp y/y ROA ASSETS EQUITY 2Q24 9.0% AR$ 14,425 bn AR$ 3,101 bn + 395 bp y/y - 8% y/y + 14% y/y 6M24 8.7% USD 15.8 bn USD 3.4 bn + 526 b
Slide 25: Financial Structure
Financial Structure Banco Galicia Assets Funding Cash and Due from Banks 17% Central Bank Exposure 5% 58% Deposits Government Exposure 37% 15% Other Financial Liabilities 2% Negotiable Obligations Net Financing 32% 4% Other Liabilities 21% Net Worth Other Assets 9% As of June 30, 2024. 25
Slide 26: TOP Banks
TOP 10 Banks Banco Galicia Market Share of Market Share of Private-Sector Loans (%) Private-Sector Deposits (%) Santander 13.7% Nación (P) 19.1% Nación (P) 13.2% Galicia Galicia 9.8% Galicia Galicia 11.5% Santander 9.7% BBVA 9.6% Provincia (P) 8.2% Provincia (P) 8.2% BBVA 7.2% Macro 8.0% Macro 7.0%
Slide 27: Peer Comparison
Peer Comparison Banco Galicia Market Share of Market Share of Private-Sector Loans (%) Private-Sector Deposits (%) Santander 13.7% Galicia Galicia 9.8% Galicia Galicia 11.5% Santander 9.7% BBVA 9.6% BBVA 7.2% Macro 8.0% Macro 7.0% ICBC 4.4% Credicoop 4.0% As of May 31, 2024 (latest information avail
Slide 28: Peer Comparison: Credit Cards and Branches
Peer Comparison Banco Galicia Credit Cards Branches (in thousands) 5,339 455 5,002 4,298 321 302 2,935 242 1,085 99 BBVA Santander Galicia Galicia Macro HSBC Macro Santander Galicia Galicia BBVA HSBC As of May 31, 2024 (latest information available). Source: Argentine Central Bank. 28
Slide 29: Customers
Customers Banco Galicia Consumer Banking Corporate Banking Total: 3,593,406 Total: 135,666 1% 15% 33% 53% 9% 6% 84% Low Income Medium Income High Income Prof. and Self-employed Agribusiness Corporations SMEs As of June 30, 2024. 29
Slide 30: Breakdown of Loans to the Private Sector
Breakdown of Loans to the Private Sector Banco Galicia Gross Loans: AR$ 4,685 bn Agribusiness 9% Middle-Market Individuals Companies 47% 23% Large Corporations 21% Financial Sector 0% As of June 30, 2024. Loans in foreign currency: 23.0% 30
Slide 31: Loan Portfolio by Maturity
Loan Portfolio by Maturity Banco Galicia Pesos Pesos + UVA 56% 51% 24% 22% 9% 9% 3% 8% 2% 1% 9% 6% < 1 month 1 to 6 m 6 to 12 m 1 to 3 years 3 to 5 y >5y < 1 month 1 to 6 m 6 to 12 m 1 to 3 years 3 to 5 y >5y Dollars 37% 33% 21% 9% < 1 month 1 to 6 m 6 to 12 m 1 to 3 years 3 to 5 y >5y As of June 30
Slide 32: Funding and Breakdown of Deposits
Funding and Breakdown of Deposits Banco Galicia TOTAL FUNDING: AR$ 8,250 bn Other(*) 24% DEPOSITS in AR$ 4,391 bn Saving accounts Subordinated Bonds 44% Time Deposits 2% 38% Negotiable Obligations 0% Deposits 74% Checking accounts 18% USD-denominated deposits: 30.5% (*) Includes among other: repos,
Slide 33: Asset Quality
Asset Quality Banco Galicia 501.5 9.63 240 160.30 4.15 4.35 3.34 2.69 2.65 1.98 1.32 1.21 Jun-20 Jun-21 Jun-22 Jun23 Jun24 GFG NPL ratio Bank NPL ratio Naranja NPL ratio Bank Coverage ratio Beginning in the fiscal year started on January 1, 2020, the expected credit loss model has been applied. As o
Slide 34: Capital Ratio
Capital Ratio Banco Galicia 28.8 27.8 19.6 15.9 Jun-20 Jun-21 Jun-22 Jun23 Jun24 Total Capital Tier I As of June 30, 2024. 34
Slide 35: Profitability
Profitability Banco Galicia ROE 37.1 ROA 8.7 8.4 19.5 37.4 36.9 9.0 5.0 29.6 3.4 2Q23 1Q24 2Q24 2Q23 1Q24 2Q24 Financial Margin Efficiency 51.6 64.1 30.0 27.3 77.7 51.9 43.5 28.3 31.8 29.5 2Q23 1Q24 2Q24 2Q23 1Q24 2Q24 1H FY24. As of June 30, 2024. 35
Slide 36: Relevant Ratios
Relevant Ratios Banco Galicia NPL Cost of Risk 5.5 6.5 2.9 5.9 3.3 2.4 2.3 3.8 2Q23 1Q24 2Q24 2Q23 1Q24 2Q24 1H Y24. Total Capital Liquidity 31.8 65.9 28.8 23.6 59.2 55.1 2Q23 1Q24 2Q24 2Q23 1Q24 2Q24 As of June 30, 2024. 36
Slide 37: Consolidated Income Statement - 2Q24
Consolidated Income Statement - 2Q24 Banco Galicia In million AR$ 71,468 81,765 257,670 5,237 739,425 170,644 809 295,577 296,386 Net Financial Net Income Provision for Administrative Other Income Tax Net Income OCI Comprehensive Income from Services Loan Losses Expenses Income Vs 2Q23 6,642% 165% 8
Slide 38: Agenda
FIM A Agenda 01 03 05 07 The Argentine Grupo Financiero Naranja X Fondos Economy Galicia FIMA 02 04 06 08 The Argentine Banco Galicia Galicia Financial System Galicia Seguros Securities
Slide 39: Naranja X Business Summary
Business Summary Naranja X ASSETS NET LOANS LOANS AR$ 2,687 bn AR$ 1,943 bn Mk Share + 15% y/y + 16% y/y 5.1% USD 2.9 bn USD 2.1 bn EQUITY DEPOSITS DEPOSITS AR$ 567 bn AR$ 517 bn Mk Share + 20% y/y + 137% y/y 3.3% USD 0.6 bn USD 567 million Credit Cards Deposit Accounts Digital Clients 9,1 million 5
Slide 40: Profitability and Asset Quality
Profitability and Asset Quality Naranja X Net Income ROE ROA Efficiency 2Q24 AR$ 80.7 bn 2Q24 61.2% 2Q24 13.7% 2Q24 33.6% + 11,606% y/y + 6,063 bp y/y + 1,359 bp y/y - 3,509 bp y/y 6M24 AR$ 107.6 bn 6M24 41.9% 6M24 9.4% 6M24 41.2% + 2,991% y/y + 4,041 bp y/y + 912 bp y/y - 2,824 bp y/y NPL Coverage
Slide 41: Agenda
FIM A Agenda 01 03 05 07 The Argentine Grupo Financiero Naranja X Fondos Economy Galicia FIMA 02 04 06 08 The Argentine Banco Galicia Galicia Financial System Galicia Securities Seguros
Slide 42: Corporate Structure
Corporate Structure Galicia Seguros 9.6% 90.4% Sudamericana Holding Sudamericana Well Seguros Asistance Galicia Originally for individuals. Retirement voluntary Broker of the Corporate Assistance company Originally for individuals. Expanding to corporate retirement segment. Expanding to corporate se
Slide 43: Business Summary
Business Summary Galicia Seguros WA SSG In million AR$ Turnover 64,031 (*) 106 (*) 3,596 (*) 0 (**) 90,436 (**) AUM 9,296 5,021 2,625 0 87,055 Equity 15,501 1,145 2,691 -8 16,100 Profit 15,881 (*) 1,024 (*) 2,762 (*) -8 (**) -2,891 (**) As of June 30, 2024. (*) 12 months. (**) 9 months. 43
Slide 44: Galicia Seguros General Data
Galicia Seguros General Data Annual Turnover: AR$ 91.4 billion (9M FY2024) Policies in force: 3.4 million (voluntary insurance) Positioning 2023* Ranking Market Share Homeowners Insurance 1st 13.2% Theft 4th 10.9% Personal Accidents 3rd 8.9% Group Life 7th 4.3% * As of December 31, 2023. 44
Slide 45: Distribution Channels
Distribution Channels Galicia Seguros Business Partners' • Over 488 branches of our affiliated companies (Banco Galicia and Naranja X). Branches • 60 telemarketers at our own call center. Telemarketing • 310 telemarketers at an external call center. Specialized • Near 51 stands at our business partn
Slide 46: Main Products
Main Products Galicia Seguros • Credit related life insurance. Life Insurance • Group and Individual Life Insurance. • Burial • PA Multirisk: air, public transport, pedestrian Personal Accidents • PA Financial: credit card activator • PA Self-Employed and Account Holders • Damages to Building and Co
Slide 47: Turnover and Profits Evolution
Turnover and Profits Evolution Galicia Seguros Turnover per Fiscal Year (in million AR$) 35,0% $ 170.000 $ 160.000 30,0% $ 150.000 Net income / Turnover Turnover 30,0% $ 140.000 $ 130.000 25,0% $ 120.000 22,7% $ 110.000 20,0% $ 100.000 20,0% $ 90.000 16,0% $ 80.000 14,7% 158.168 15,0% $ 70.000 $ 60.
Slide 48: Agenda
Agenda 01 03 05 07 The Argentine Grupo Financiero Naranja X Fondos Economy Galicia FIMA 02 04 06 08 The Argentine Banco Galicia Galicia Financial System Galicia Seguros Securities
Slide 49: FIMA Business Summary
Business Summary FIMA • Established in 1958. • FIMA mutual funds. • Institutional investors, companies and individuals. 29 619,804 12.8% 16 Employees Clients Market Share Funds Net Income (in million AR$) Assets under management (in million AR$) 26,680 25,390 5,371,379 16,457 13,370 12,020 4,133,187
Slide 50: Our Family of Funds
Our Family of Funds FIMA Mix Dólares Mix II Expected Yield Abierto PyMEs PB Aciones Acciones Mix I Sustentable ASG Renta Plus Renta Acciones Latinoamérica Capital Plus Renta Pesos Ahorro Plus Renta Fija Dólares Ahorro Pesos Renta Fija Internacional Premium Investment horizon/ Risk Conservative Moder
Slide 51: Agenda
FIM A Agenda 01 03 05 07 The Argentine Grupo Financiero Naranja X Fondos Economy Galicia FIMA 02 04 06 08 The Argentine Banco Galicia Galicia Financial System Galicia Seguros Securities
Slide 52: Galicia Securities Business Summary
Business Summary Galicia Securities Founded in 2020, Galicia Securities provides an alternative access to the Assets Under Custody capital market and offers Products & Services AR$ 2,937.8 bn brokerage services to 2Q24 Fixed Income individuals, companies + 210% vs. 2Q23 and institutions. Due to Stoc
Slide 53: Galicia Securities Business Summary
Business Summary Galicia Securities Assets Under Custody 2,937,832 Accounts and Transactions +210% vs 2Q23 2,548,238 8,00 0 60.0 00 1,390,805 Operations: +68% 1,117,686 7,00 0 vs. 2Q23 47.931 948,032 769,275 44.834 50.0 00 594,211 338,588 395,289 439,051 42.492 Accounts: +59% 6,00 0 38.777 vs. 2Q23
Slide 54: Contact us
Contact us www.gfgsa.com +5411 6329 4881 inversores@gfgsa.com 54
Grupo Financiero Galicia — Q2 2024 Earnings Presentation on 6ix