Grupo Financiero Galicia (GGAL) Q4 2025 earnings summary

Executive summary

• FY2025 net income attributable to the group was ARS 196 billion, down 91% year-over-year, with a Q4 net loss of ARS 84 billion, mainly due to non-recurring integration expenses and asset quality deterioration in a challenging macroeconomic environment.

• Integration of HSBC Argentina (Galicia Más) was completed, consolidating banking, mutual fund, and holding activities for scale and efficiency.

• A joint venture with Banco Santander was established to expand Nera, a digital agricultural finance platform, across Argentina, Paraguay, and Uruguay.

• Argentina's economy grew 4.4% in 2025, but inflation decelerated to 31.5% from 117.8% in 2024, with monthly inflation accelerating in late 2025 and early 2026.

• Fiscal deficit persisted, with public sector gross debt at 104% of GDP as of Q3 2025.

Financial highlights

• FY2025 ROE was 2.5% (4.2% excluding integration expenses), down 3,100 bp year-over-year; ROAA 0.4%.

• Q4 2025 net loss: ARS 84 billion; Banco Galicia loss ARS 104-105 billion, Naranja X loss ARS 49 billion.

• Net interest income up 17-23% quarter-over-quarter in Q4; net fee income up 4%.

• Efficiency ratio for FY2025 was 47.5% (44.8% excluding integration costs), up 230 bp year-over-year.

• Fondos FIMA reported FY2025 net income of ARS 126.7 billion and assets under management of ARS 11.4 trillion in Q4.

Outlook and guidance

• 2026 inflation expected at 22.4-23%, GDP growth at 3.7%, with industrial production and GDP growth forecasts subdued.

• Loan growth guidance maintained at 25% for 2026, with slower growth in H1 and acceleration in H2.

• Deposit growth expected between 15%-20%, with peso deposits at 20% and dollar deposits at 15%.

• ROE guidance for 2026 in low double digits (10-11%), aiming for 15% in 2027.

• Cost of risk projected to decline to 8% in 2026 from 12.5% in Q4 2025.