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Grupo Financiero Galicia S.A. Reports Financial Results For The QUARTER ENDED ON SEPTEMBER 30, 2015

The following excerpt is from the company's SEC filing.

Buenos Aires, Argentina, November 10, 2015 - Grupo Financiero Galicia S.A. (Grupo Financiero Galicia; Buenos Aires Stock Exchange: GGAL /NASDAQ: GGAL) announced its financial results for the quarter ended on September 30, 2015.

HIGHLIGHTS

Net income for the quarter ended September 30, 2015, amounted to Ps.1,187 million, a 27.5% increase from the Ps.931 million profit recorded in the third quarter of fiscal year 2014. The profit per share for the quarter amounted to Ps.0.91, compared to Ps.0.72 per share for the same quarter of fiscal year 2014.

The result of the quarter was mainly attribu table to the income derived from the interest in Banco de Galicia y Buenos Aires S.A. (Banco Galicia or the Bank) (Ps.1,107 million), in Sudamericana Holding S.A., (Ps.80 million), and in Galicia Administradora de Fondos S.A. (Ps.27 million), and partially offset by administrative and financial expenses (Ps.37 million).

As of September 30, 2015, Grupo Financiero Galicia and its subsidiaries had a staff of 12,153 employees, had a network of 651 branches and other points of contact with clients, and managed 3.4 million deposit accounts and 13.1 million credit cards.

CONFERENCE CALL

On Tuesday

, November 10, 2015 at 11:00 A.M. Eastern Standard Time

(01:00 PM Buenos Aires Time), GFG will host a conference call to review these results. The call-in number is: 719-457-2697 Conference ID: 4111022.

GRUPO FINANCIERO GALICIA S.A.

RESULTS FOR THE THIRD QUARTER

In millions of pesos, except percentages

Table I:

FY2015

FY2014

Variation (%)

Net Income by Business

3Q15 vs

Income from Equity Investments in:

Sudamericana Holding S.A.

Other companies

Deferred tax adjustment

(150.0

(128.6

Administrative Expenses

Financial Results

Other income and expenses

Includes the results from our interests in Compañía Financiera Argentina S.A. (3%), Galicia Warrants S.A. (87.5%) and Net Investment S.A. (87.5%).

Income tax charge determined by Banco Galicia´s subsidiaries in accordance with the deferred tax method.

In pesos, except stated otherwise and percentages

Table II:

Nine Months Ended

Principal Indicators

09/30/15

09/30/14

Earnings per Share

Average Shares Outstanding (in thousands)

1,300,265

Earnings per Share

Book Value per Share

Closing Price

Shares - Buenos Aires Stock Exchange

ADS - Nasdaq (in dollars)

Price/Book Value

Average Daily Volume (amounts in thousands)

Profitability (%)

Return on Average Assets

Return on Average Shareholders Equity

10 ordinary shares = 1 ADS.

Expressed in equivalent shares.

Annualized.

In the third quarter of fiscal year 2015 Grupo Financiero Galicia recorded a Ps.1,187 million profit, which represented a 4.12% annualized return on average assets and a 37.61% return on average shareholders equity.

This result was mainly due to profits from its interest in Banco Galicia (Ps.1,107 million) which accounts for 93.3% of Grupo Financiero Galicias net income.

Grupo Financiero Galicia S.A. Selected Financial Information Consolidated Data

Consolidated Balance Sheet

Cash and due from Banks

17,472

10,876

11,590

16,959

14,478

Government and Corporate Securities

17,064

19,661

15,128

10,010

10,974

Net Loans

82,838

79,663

72,139

66,608

61,579

Other Receivables Resulting from Financial Brokerage

10,834

13,987

Equity Investments in other Companies

Bank Premises and Equipment. Miscellaneous and Intangible Assets

Other Assets

Total Assets

136,542

131,983

116,313

107,314

100,645

Deposits

82,421

77,242

68,600

64,666

59,931

Other Liabilities Resulting from Financial Brokerage

32,672

35,153

28,899

25,401

24,650

Subordinated Notes

Minority Interest

Total Liabilities

123,302

119,930

105,108

97,068

91,281

13,240

12,053

11,205

10,246

Consolidated Income Statement

Financial Income

Financial Expenses

(3,343

(3,171

(2,796

(2,763

(2,344

Gross Brokerage Margin

Provisions for Loan Losses

Income from Services. Net

Income from Insurance Activities

(3,317

(3,079

(2,768

(2,522

(2,356

Net Other Income

Income Tax

Grupo Financiero Galicia S.A. Additional Information

Physical Data (Number of)

Employees

12,048

12,080

12,012

11,971

Regional Credit-Card Companies

Branches

Bank Branches

Other Points of Sale

Deposit Accounts

Credit Cards

13,097

12,569

12,181

11,933

11,635

Inflation and Exchange Rates

Retail Price Index (%)

Wholesale Price Index (I.P.I.M.) (%)

C.E.R. Coefficient (%)

Exchange Rate (Pesos per US$)

9.4192

9.0865

8.8197

8.5520

8.4643

Rates (quarterly averages

Badlar

Reference Interest Rate

Minimum Interest Rate on 30 to 44 days Time Deposits

Maximum Interest Rate on Personal Loans:

Group I

Group II

Interest Rate on Credit Line for Investment Projects

Variation within the quarter.

Reference foreign currency exchange rate in accordance to Communiqué A 3500 from the Argentine Central Bank, as of the last working day of the quarter.

Except for Credit Line for Investment Projects, which corresponds to the interest rate established by regulations for each period.

Private banks 30-day time deposits rate for amounts over Ps.1 million.

Minimum interest rate on time deposits for individuals for amounts up to Ps.350,000. Corresponds to the interest rate on time deposits for up to Ps.1 million for companies and individuals since July 27, 2015.

BANCO DE GALICIA Y BUENOS AIRES S.A.

Net income for the third quarter amounted to Ps.1,107 million, Ps.230 million (26.2%) higher than in the same quarter of fiscal year 2014, reaching Ps.2,866 million during the first nine months of fiscal year 2015, Ps.542 million (23.3%) higher than in the same period of fiscal year 2014.

The growth of results when compared to the third quarter of fiscal year 2014 was mainly due to the 24.9% growth in operating income

and a 30.7% decrease in provisions for loan losses, partially offset by the 41.0% increase in administrative expenses.

The credit exposure to the private sector reached Ps.96,027 million, up 32.1% during the last twelve months, and deposits reached Ps.82,584 million, up 37.5% during the same period. As of September 30, 2015, the Banks estimated market share of loans to the private sector was 9.11% while its estimated market share of deposits from the private sector was 8.92%.

In the framework of the Credit Line for Productive Investment Projects, the Bank continued to fulfill the placement of the quota established by regulations in force. As of the end of the quarter, the outstanding amount of loans related to this credit line reached Ps.9,204 million.

As of September 30, 2015, shareholders equity amounted to Ps.12,765 million, and the computable capital was Ps.12,674 million, representing a Ps.3,867 million excess capital (or 43.9%). The capital ratio was 15.8%.

INFORMATION DISCLOSURE

The data shown in the tables below and the consolidated financial statements correspond to Banco de Galicia y Buenos Aires S.A., consolidated with the subsidiaries under its direct or indirect control, except where otherwise noted.

The Banks consolidated financial statements and the figures included in the different tables of this report correspond to Banco de Galicia y Buenos Aires S.A., Banco Galicia Uruguay S.A. (in liquidation), Galicia Cayman S.A. (until September 30, 2014, as on October 1 it was merged with Banco Galicia), Tarjetas Regionales S.A. and its subsidiaries, Tarjetas del Mar S.A., Galicia Valores S.A. Sociedad de Bolsa, Compañía Financiera Argentina S.A. and Cobranzas y Servicios S.A.

Net financial income plus net income from services.

In millions of pesos, except percentages

Table III

Evolution of Consolidated Results

Net Financial Income

Net Income from Services

(3,204

(2,967

(2,273

Operating Income

Net Other Income / (Loss)

Includes income from equity investments and minority interest results.

Percentages

Table IV

Nine Months Ended

Profitability and Efficiency

Return on Average Shareholders Equity

Financial Margin

(*) (1)

Net Income from Services as a % of Operating Income

Net Income from Services as a % of Administrative Expenses

Administrative Expenses as a % of Operating Income

Financial Margin: Financial Income minus Financial Expenses, divided by Average Interest-earning Assets.

Operating Income: Net Financial Income plus Net Income from Services.

In the third quarter of fiscal year 2015, the Bank recorded a Ps.1,107 million profit, Ps.230 million (or 26.2%) higher than the Ps.877 million profit for the same quarter of the previous year.

The variation in net income was a consequence of the Ps.1,058 million increase in operating income and lower provisions for loan losses, for Ps.198 million, which were offset mainly by increases in administrative expenses, for Ps.931 million, and in income tax, for Ps.58 million.

The operating income for the third quarter of fiscal year 2015 totaled Ps.5,302 million, up 24.9% from the Ps.4,244 million recorded in the same quarter of the prior year. This positive development was due both to a higher net income from services (up Ps.504 million or 29.3%) and a higher net financial income (up Ps.554 million or 22.0%).

The net financial income for the...


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