Grupo Financiero Galicia (GGAL) Q2 2026 earnings summary

Executive summary

• Net income for Q2 2026 reached ARS 258 billion (Ps.258,322 million), up 12% year-over-year, with ROE of 11.3% and efficiency ratio of 35.0%, driven by strong contributions from Banco Galicia, Fondos Fima, Naranja X, Galicia Seguros, and Galicia Securities.

• Profitability and efficiency improved sequentially, supported by lower funding costs, higher returns from financial instruments, reduced loan loss provisions, and integration synergies.

• Business volumes remained resilient, with growth in total financing and deposits, especially in dollar-denominated loans.

• The Argentine economy showed modest GDP growth, but continues to face high inflation and currency volatility.

• Lower inflation reduced the negative impact from the net monetary position.

Financial highlights

• Banco Galicia net income rose 211% sequentially and 21% year-over-year, with ROE of 8.8%, supported by lower funding costs and improved credit quality.

• Net Interest Income decreased 3% quarter-on-quarter, as interest income fell 8% due to lower loan volumes and rates, partially offset by a 20% increase in income from government securities.

• Net income from financial instruments surged 275% quarter-on-quarter to Ps.179,785 million, mainly from lower derivative losses and higher gains on government and private sector securities.

• Deposits reached ARS 27 trillion (Ps.27,028,550 million), up 7% from the previous quarter, with peso deposits up 7% and dollar deposits up 6%.

• The bank's market share of private sector loans increased to 15.1% and deposits to 14.3%.

Outlook and guidance

• Loan growth projected at 10%-15% for the year, mainly driven by dollar-denominated loans; peso loan growth expected to be minimal.

• Deposit growth expected around 10% for the year.

• ROE guidance for 2026 is around 10%, with a target of 12% by year-end and 15% for 2027; long-term ROE target remains 15%-20%.

• Cost of risk for the bank expected to decline to 8.3% for 2026, with further reductions anticipated in 2027.

• Efficiency gains are expected to continue from integration processes and digital transformation.