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FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For the month of August, 2007
Commission File Number: 0-30852
GRUPO FINANCIERO GALICIA S.A.
Galicia Financial Group S.A.
(Translation of registrant's name into English)
Tte. Gral. Juan D. Peron 456
(C1038AAJ) Buenos Aires, Argentina
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
Form 20-F [X] Form 40-F [ ]
Indicate by check mark whether by furnishing the information contained in this
Form, the registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes [ ] No [X]
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82- ________
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FORM 6-K
Commission File No. 0-30852
MONTH FILED EVENT AND SUMMARY EXHIBIT NO.
------------ ------------------------------------------------ --------------
August, 2007 Financial Results for the Registrant for the 99.1
quarter ending June 30, 2007.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
GRUPO FINANCIERO GALICIA S.A.
(Registrant)
Date: August 15, 2007 By: /s/Antonio Garces
--------------------------
Name: Antonio Garces
Title: Chief Executive Officer
EXHIBIT 99.1
(Buenos Aires, Argentina, August 9, 2007) - Grupo Financiero Galicia S.A.
("Grupo Galicia", "GFG") (Buenos Aires Stock Exchange: GGAL /NASDAQ: GGAL) today
announced its consolidated financial results for the second quarter of fiscal
year 2007, ended June 30, 2007.
NET INCOME FOR THE QUARTER ENDED JUNE 30, 2007
Net income for the quarter ended June 30, 2007 was Ps. 12.6 million. This result
was mainly generated by our participation in Banco de Galicia y Buenos Aires
S.A. (the "Bank") and by the income from our participation in Sudamericana
Holding. Net income per share was Ps. 0.010, equivalent to Ps. 0.10 per ADS.
The Bank's net income for the quarter was Ps. 7.7 million, and its adjusted net
income, which excludes the amortization of the legal injuctions (amparos) and
the adjustment to the valuation of public-sector assets was Ps. 42.7 million.
During the quarter the Bank showed an increase in its operating income, related
to the significant increase in deposits and the expansion of its exposure to the
private sector and the reduction in its exposure to the public sector.
The table below shows per-share result information, based on Grupo Galizia's
financial statements.
In pesos
-----------------------------------------------
FY 2007 FY 2006 six months ended at:
----------- ---------- ----------------------
2 Q 2 Q
EARNINGS PER SHARE 06/30/07 06/30/06 06/30/07 06/30/06
------------------------------------------ ----------- ---------- ---------- ----------
Total Average Shares (in thousands) 1,241,407 1,241,337 1,241,407 1,241,372
Total Shares Outstanding (in thousands) 1,241,407 1,239,793 1,241,407 1,239,793
Book Value per Share 1.291 1.344 1.291 1.344
Book Value per ADS (*) 12.910 13.440 12.910 13.440
Earnings per Share 0.010 0.044 (0.004) 0.032
Earnings per ADS (*) 0.100 0.440 (0.040) 0.320
(*) 1 ADS = 10 ordinary shares
Grupo Galicia's net income for the quarter represents an annualized return of
0.60% on average assets and of 3.16% on average shareholders' equity.
Percentages
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FY 2007 FY 2006 six months ended at:
----------- ---------- ----------------------
2 Q 2 Q
PROFITABILITY 06/30/07 06/30/06 06/30/07 06/30/06
------------------------------------------ ----------- ---------- ---------- ----------
Return on Average Assets (*) 0.60 1.02 0.08 0.42
Percentages
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FY 2007 FY 2006 six months ended at:
----------- ---------- ----------------------
2 Q 2 Q
PROFITABILITY 06/30/07 06/30/06 06/30/07 06/30/06
------------------------------------------ ----------- ---------- ---------- ----------
Return on Average Shareholders Equity (*) 3.16 13.34 (0.69) 4.93
(*) Annualized
NET INCOME BY BUSINESS
The table below shows the breakdown of net income by business.
"Income from stake in Sudamericana Holding" line includes the results from our
interest in such company as of March 31, 2007.
"Income from stake in other companies" includes the results from our interests
in Net Investment, Galicia Warrants and Galval.
The "Deferred tax adjustment" line shows the income tax charge determined by
Banco Galicia's subsidiaries in accordance with the deferred tax method. This
adjustment was not performed in Banco Galicia because Argentine Central Bank
regulations do not contemplate the application of the deferred tax method.
The "Other income GFG" line includes Ps. 2.8 million of financial income and Ps.
3.5 million of administrative expenses.
In millions of pesos
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FY 2007 Six months ended at:
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NET INCOME BY BUSINESS 2nd. Q 1st. Q 06/30/07 06/30/06
------------------------------------------ ----------- ---------- ---------- ----------
Income from stake in Banco Galicia (93.6%) 7.2 (33.9) (26.7) (24.4)
Income from stake in Sudamericana
Holding(87.5%) 3.6 3.9 7.5 4.6
Income from stake in other companies 0.3 0.1 0.3 0.4
Deferred tax adjustment 2.5 3.2 5.7 4.4
Adjustment of treasury shares - - - (3.1)
Other Income GFG (0.9) 13.5 12.7 90.0
Income tax (0.1) (4.9) (5.0) (31.8)
Net Income for the period 12.6 (18.1) (5.5) 40.1
CAPITAL INCREASE OF BANCO GALICIA
On July 27, 2007, Grupo Financiero Galicia exercised its preemptive rights and
subscribed for 93.6 million shares of the Bank, the consideration for which was
paid on August 2, 2007. Such consideration consisted of i) US$ 102.2 million
face value of negotiable obligations issued by the Bank due in 2014 for 58.5
million shares and ii) cash for 35.1 million shares.
In order to pay for a portion of the new shares with cash, on July 24, 2007
Grupo Financiero Galicia entered into a loan agreement with Merrill Lynch
International, for an amount of US$80 million; US$18 million will be paid on the
first anniversary of the borrowing date and the remaining US$62 million on July
24, 2009. The interest rate for
the first year is 7.75% per annum and 3-month-Libor plus a 3.5% spread per annum
for the second year. Interest is paid on an annual basis.
For the portion of the shares paid with the negotiable obligations, the Bank
accounted a Ps. 27 million profit in August due to the fact that the price of
the negotiable obligations was lower than the face value. Grupo Financiero
Galicia will receive part of this accounting profit according to its new
participation in the Bank. The payment of the shares with negotiable obligations
did not have an impact on Grupo, as their book value was equal to the price
accepted for the capital increase.
After the capital increase, Grupo Financiero Galicia holds 94.66% of the shares
of the Bank, up from 93.6%.
CONFERENCE CALL
On Monday, August 13, 2007, at 11:00 A.M. Eastern Standard Time (12:00 A.M.
Buenos Aires Time), GFG will host a conference call to review this results.
The call-in number is: (719) 457-2659
If you are unable to participate in the call, a replay will be available from
Monday, August 13, 2007, at 2:00 P.M. Eastern Standard Time until Friday,
August, 17, 2007, at 12:00 P.M. Eastern Standard Time dialing (719) 457-0820,
pass code: 1357047.
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This report is a summary analysis of the Grupo Galicia's financial condition and
results of operations as of and for the period indicated. For a correct
interpretation, this report must be read in conjunction with Banco Galicia's
press release (www.bancogalicia.com.ar) and GFG's financial statements, as well
as with all other material periodically filed with the Comision Nacional de
Valores (www.cnv.gov.ar), Securities and Exchange Commission (www.sec.gov),
Bolsa de Comercio de Buenos Aires (www.bolsar.com.ar), Bolsa de Comercio de
Cordoba and Nasdaq (www.nasdaq.com). Readers of this report must note that this
is a translation made from an original version written and expressed in Spanish.
Therefore, any matters of interpretation should be referred to the original
version in Spanish.
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GRUPO FINANCIERO GALICIA S.A.
SELECTED FINANCIAL INFORMATION - CONSOLIDATED DATA(*)
In millions of pesos
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06/30/07 03/31/07 12/31/06 09/30/06 06/30/06
------------ ------------ ------------ ------------ ------------
CASH AND DUE FROM BANKS 2,057.8 2,062.6 2,294.8 1,629.4 1,334.9
GOVERNMENT AND CORPORATE SECURITIES 3,571.2 2,272.4 3,188.6 3,456.4 4,241.5
LOANS 9,910.9 10,712.8 10,525.0 11,157.3 10,767.9
OTHER RECEIVABLES RESULTING FROM FINANCIAL BROKERAGE 3,378.5 3,841.0 5,442.0 7,187.0 6,166.8
EQUITY IN OTHER COMPANIES 42.2 40.5 35.6 64.4 63.1
BANK PREMISES AND EQUIPMENT, MISCELLANEOUS AND
INTANGIBLE ASSETS 1,250.5 1,263.3 1,264.2 1,229.9 1,200.2
OTHER ASSETS 1,065.2 1,005.9 894.4 731.7 741.4
TOTAL ASSETS 21,276.3 21,198.5 23,644.6 25,456.1 24,515.8
DEPOSITS 12,438.8 11,858.1 10,779.4 10,412.7 9,703.3
- Non-Financial Government Sector 202.7 79.7 63.9 62.7 66.0
- Financial Sector 156.1 153.9 154.3 199.3 315.3
- Non-Financial Private Sector and Residents Abroad 12,080.0 11,624.5 10,561.2 10,150.7 9,322.0
- Current Accounts 2,439.2 2,080.1 1,982.8 1,790.9 1,754.6
- Savings Accounts 2,816.8 2,647.5 2,442.9 2,367.8 2,307.7
- Time Deposits 6,433.8 6,536.0 5,789.3 5,638.0 4,915.9
- Investment Accounts 5.5 5.6 4.0 4.0 0.1
- Other 232.7 209.8 211.3 222.7 206.4
- Accrued interest and quotation differences
payable 152.0 145.5 130.9 127.3 137.3
OTHER BANKS AND INTERNATIONAL ENTITIES 361.6 446.6 1,125.3 1,136.7 999.9
NEGOTIABLE OBLIGATIONS 3,686.4 3,511.2 3,587.0 3,294.7 3,572.0
OTHER LIABILITIES 3,011.3 3,626.4 6,377.2 8,754.0 8,423.0
MINORITY INTERESTS 175.3 165.9 167.2 157.9 150.7
TOTAL LIABILITIES 19,673.4 19,608.2 22,036.1 23,756.0 22,848.9
SHAREHOLDERS' EQUITY 1,602.9 1,590.3 1,608.5 1,700.1 1,666.9
INFLATION AND EXCHANGE RATE
Retail Price Index (%)(**) 1.61 2.23 2.57 2.09 1.94
Wholesale Price Index (%)(**) 5.37 1.75 0.68 1.29 2.58
C.E.R. (%)(**) 1.91 2.52 2.46 1.65 2.65
Exchange Rate ($/U$S)(***) 3.0908 3.1007 3.0695 3.1043 3.0848
(*) Grupo Financiero Galicia S.A., consolidated with subsidiary companies
(Art.33 - Law 19550).
(**) Variation within the quarter.
(***) Last working day of the quarter. Source B.C.R.A. - Comunique 'A' 3500 -
Reference Exchange Rate
GRUPO FINANCIERO GALICIA S.A.
SELECTED FINANCIAL INFORMATION - CONSOLIDATED DATA(*)
In millions of pesos
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QUARTER ENDED: 06/30/07 03/31/07 12/31/06 09/30/06 06/30/06
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FINANCIAL INCOME 451.8 476.9 428.7 514.3 631.6
- Interest on Cash and Due From Bank 2.0 3.7 0.6 0.3 0.0
- Interest on Loans to the Financial Sector 0.2 2.3 1.0 0.6 0.7
- Interest on Overdrafts 25.1 19.6 21.0 20.6 15.9
- Interest on Notes 61.4 59.8 58.1 51.5 48.2
- Interest on Mortgage Loans 22.2 20.6 20.3 19.0 16.2
- Interest on Pledge Loans 2.8 2.5 2.2 2.0 4.1
- Interest on Credit Card loans 101.6 90.7 89.6 65.2 65.4
- Interest on Other Loans 42.7 40.1 36.5 27.1 22.5
- Net Income from Government and Corporate Securities 66.9 35.5 (66.5) 66.7 154.2
- On Other Receivables Resulting from Financial
Brokerage 7.4 10.3 34.7 48.1 45.0
- Net Income from Guaranteed Loans-Decree 1387/01 20.1 30.3 46.6 51.9 43.5
- Adjustment by application of adjusting index 45.2 89.9 149.5 121.4 181.6
- Other 54.2 71.6 35.1 39.9 34.3
FINANCIAL EXPENSES 263.0 354.5 442.7 408.0 453.0
- Interest on Demand Accounts Deposits 4.0 4.1 4.2 5.1 5.4
- Interest on Saving Accounts Deposits 1.5 1.4 1.2 1.2 1.0
- Interest on Time Deposits 119.0 114.6 106.5 89.0 66.1
- Interest on Loans from Financial Sector 1.0 1.3 1.4 1.1 1.4
- For other Liabilities resulting from Financial
Brokerage 69.2 91.6 87.1 67.8 80.6
- Interest on Subordinated Negotiable Obligations 23.2 23.2 22.0 22.5 17.8
- Other interest 1.3 42.3 38.4 43.2 41.4
- Adjustment by application of adjusting index 8.2 43.2 126.7 121.8 182.3
- Other 35.6 32.8 55.2 56.3 57.0
GROSS BROKERAGE MARGIN 188.8 122.4 (14.0) 106.3 178.6
PROVISIONS FOR LOAN LOSSES 36.8 49.4 26.3 20.6 34.5
INCOME FROM SERVICES, NET 220.4 200.0 192.8 173.6 158.6
ADMINISTRATIVE EXPENSES 304.3 276.2 278.3 253.4 227.1
- Personnel Expenses 160.7 144.2 146.3 128.6 124.3
- Directors' and Syndics' Fees 1.6 1.7 2.0 1.8 1.2
- Other Fees 9.6 8.1 9.9 9.5 9.7
- Advertising and Publicity 26.9 24.3 26.0 25.3 12.3
- Taxes 14.7 13.6 15.0 13.1 11.2
- Other Operating Expenses 66.3 62.3 58.1 55.1 51.9
- Other 24.5 22.0 21.0 20.0 16.5
MINORITY INTEREST (8.7) 4.6 (1.3) (7.3) (6.7)
INCOME FROM EQUITY INVESTMENTS 0.1 0.3 (1.2) 2.6 (9.9)
NET OTHER INCOME (29.5) 6.4 49.6 57.2 32.2
INCOME TAX 17.4 26.2 13.5 25.2 36.8
NET INCOME 12.6 (18.1) (92.2) 33.2 54.4
(*) Grupo Financiero Galicia, consolidated with subsidiary companies (Art. 33 -
Law 15990).