Grupo Financiero Galicia (GGAL) Q1 2025 earnings summary

Executive summary

• Net income for 1Q 2025 was ARS 145,978 million, down 63% year-over-year, with ROE at 8.88% and ROA at 1.68%.

• Results were mainly driven by profits from Naranja X (ARS 64,463m), Banco Galicia (ARS 37,110m), Fondos Fima (ARS 28,525m), and Galicia Seguros (ARS 11,389m).

• Efficiency ratio improved to 50.44%, up 1,579 bp year-over-year; capital ratio at 24.38%.

• Profitability metrics remained healthy despite a challenging macro environment and ongoing integration with Galicia Más, expected to complete by June.

• The group paid ARS 88,000 million in dividends in May 2025 and completed a corporate reorganization.

Financial highlights

• Net interest income for 1Q 2025 was ARS 1,061,752m, down 51% year-over-year; net fee income rose 43% to ARS 361,860m.

• Net results from financial instruments fell 27% year-over-year to ARS 243,435m.

• Loan loss provisions increased 121% year-over-year to ARS 404,101m.

• Deposits reached ARS 19,220,850m, up 83% year-over-year; net loans and financing rose 131% to ARS 16,560,788m.

• Net profit per share was ARS 90.88.

Outlook and guidance

• ROE guidance for 2025 revised down to 12%-13% (real terms), from previous 15%, reflecting transition year and integration costs.

• Loan growth guidance maintained at 50% in real terms; deposit growth expected at 30%-40%.

• ROE targeted to rise to 17% in 2026 and 20% in 2027 as integration synergies are realized.

• The Central Bank authorized the merger of Banco Galicia and Galicia Más, to be completed within 180 days of May 22, 2025.

• Regulatory changes include easing of foreign exchange controls and modifications to minimum cash requirements.