Grupo Financiero Galicia (GGAL) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was ARS 66.5 billion, down 66% year-over-year, with ROAA at 0.6% and ROAE at 3.2%.

• Efficiency ratio improved to 39.9%, with integration efforts and cost reductions supporting sequential gains.

• Asset quality deteriorated, with NPLs rising to 7.7%, but early delinquency indicators improved.

• Economic activity in Argentina showed 2.7% YoY GDP growth in 1Q26, but volatility and high inflation (211.4% YoY in March) persisted.

• Segment results: Banco Galicia posted ARS 47.7 billion net income (+24% YoY), Fondos Fima ARS 34 billion, Galicia Seguros ARS 13 billion, while Naranja X had an ARS 18.6 billion loss.

Financial highlights

• Net interest income decreased 7% sequentially, with interest income down 13% due to lower loan and credit card volumes.

• Net fee income declined 6%-7% quarter-on-quarter, reflecting seasonal lower transaction levels.

• Loan loss provisions declined 20%-25% sequentially, but remained high YoY.

• Deposits reached ARS 23.8-24 trillion, down 15% sequentially, mainly due to restatement effects and reduced institutional funding.

• Net income from financial instruments increased sharply, supported by gains from government securities sales.

Outlook and guidance

• Loan growth for 2026 is projected at 20%-25%, revised down from 25% at the start of the year.

• Deposit growth is expected between 15%-20% for the year.

• ROE guidance for 2026 remains at 10%-11%, with sequential improvement expected throughout the year.

• Cost of risk is forecasted to end the year at 8%, down from 9.5% in Q1.

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