Grupo Financiero Galicia (GGAL) Q1 2026 earnings summary

Executive summary

• Economic activity in Argentina showed a YoY GDP growth of 2.7% in 1Q26, with industrial production up 1.5% YoY, but both metrics reflect ongoing volatility and recent contractions.

• Inflation remains extremely high, with YoY CPI at 211.4% in March 2026, and the consumer price index rose 9.44% in 1Q26, though monthly inflation rates have started to decelerate.

• Net income attributable to shareholders was Ps.66,488 million, down 66% YoY, with ROE at 3.2% and ROA at 0.6%.

• The financial system's depth remains low compared to regional peers, with private sector loans and deposits as a percentage of GDP lagging behind countries like Chile and Brazil.

• Results were impacted by high loan loss provisions, though these decreased sequentially, and lower net interest income due to reduced intermediation activity.

Financial highlights

• Grupo Financiero Galicia reported a 1Q26 ROE of 3.2%, down 564 bp YoY, and ROA of 0.6%, down 112 bp YoY.

• Banco Galicia's 1Q26 ROE was 2.9% (+72 bp YoY), with net loans up 17% YoY to AR$19,537bn and deposits flat YoY at AR$23,753bn.

• Naranja X saw net income of AR$(18.7)bn in 1Q26, with ROE at -6.9% and NPL ratio rising to 16.88%.

• Galicia Seguros reported AR$8,977mn profit for 9M FY26, with annual turnover of AR$27,940bn and strong market positions in several insurance lines.

• Fondos FIMA managed AR$13.2tn in assets as of 1Q26, with 1.3 million clients and a 14.5% market share.

Outlook and guidance

• Inflation is expected to remain high in 2026, with market expectations above 200% YoY, though a gradual deceleration is anticipated.

• Fiscal consolidation efforts are ongoing, with the primary fiscal balance improving to 2.1% of GDP in 2026.

• Sovereign debt remains elevated at 104% of GDP, with significant upcoming maturities and a high share in foreign currency.

• Financial margin showed recovery towards the end of the quarter, with improved performance in March after volatility in January and February.

• Loan loss provisions are expected to remain a key factor, but improved delinquency rates may continue to reduce their impact.