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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 November, 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.
November, 2007 Financial Results of the Registrant 99.1
for the quarter ended September 30, 2007.
2
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: November 13, 2007 By: /s/Antonio Garces
-------------------------
Name: Antonio Garces
Title: Chief Executive Officer
3
EXHIBIT 99.1
[GRAPHIC OMITTED] GRUPO FINANCIERO GALICIA
FOR IMMEDIATE RELEASE
FOR MORE INFORMATION CONTACT:
Pablo Firvida
VP Investor Relations
Telefax: (5411) 4343-7528
pfirvida@gfgsa.com
investorelations@gfgsa.com
www.gfgsa.com
GRUPO FINANCIERO GALICIA S.A. REPORTS FINANCIAL RESULTS FOR ITS
THIRD QUARTER ENDED SEPTEMBER 30, 2007
o (Buenos Aires, Argentina, November 12, 2007) - Grupo Financiero
Galicia S.A. ("Grupo Galicia", "GFG") (Buenos Aires Stock Exchange:
GGAL /NASDAQ: GGAL) today announced its consolidated financial results
for the third quarter of fiscal year 2007, ended September 30, 2007.
NET INCOME FOR THE QUARTER ENDED SEPTEMBER 30, 2007
o Net income for the third quarter ended September 30, 2007 was Ps.6.9
million. This result was mainly generated by our participation in
Banco de Galicia y Buenos Aires S.A. (the "Bank"). Net income per
share was Ps.0.006, equivalent to Ps.0.06 per ADS.
o The Bank's net income for the quarter was Ps. 7.5 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. 59.4 million.
o During the quarter, Grupo Galicia exercised its preemptive rights and
subscribed for 93.6 million shares of the Bank. The consideration
consisted of i) US$ 102.2 million face value of negotiable obligations
issued by the Bank due in 2014 and ii) cash.
o In order to pay for a portion of the new shares with cash, Grupo
Galicia entered into a loan agreement for an amount of US$80 million.
After the capital increase, Grupo Galicia holds 94.66% of the shares
of the Bank, up from 93.6%.
o The table below shows per-share result information, based on Grupo
Galicia's financial statements.
4
In pesos
-------------------------------------------------
FY 2007 FY 2006 NINE MONTHS ENDED AT:
---------- ---------- -----------------------
3 Q 3 Q
EARNINGS PER SHARE 09/30/07 09/30/06 09/30/07 09/30/06
---------------------------------------- ---------- ---------- ---------- ----------
Total Average Shares (in thousands) 1,241,407 1,239,793 1,241,407 1,240,840
Total Shares Outstanding (in thousands) 1,241,407 1,239,793 1,241,407 1,239,793
Book Value per Share 1.297 1.371 1.297 1.371
Book Value per ADS (*) 12.970 13.710 12.970 13.710
Earnings per Share 0.006 0.027 0.001 0.059
Earnings per ADS (*) 0.060 0.270 0.010 0.590
(*) 1 ADS = 10 ordinary shares
o Grupo Galicia's net income for the third quarter represents an
annualized return of 0.49% on average assets and of 1.73% on average
shareholders' equity.
Percentages
---------------------------------------------------------
FY 2007 FY 2006 NINE MONTHS ENDED AT:
------------ ------------ ---------------------------
3 Q 3 Q
PROFITABILITY 09/30/07 09/30/06 09/30/07 09/30/06
------------------------------------- ------------ ------------ ------------ ------------
Return on Average Assets (*) 0.49 0.66 0.16 0.50
Return on Average Shareholders Equity (*) 1.73 7.88 0.12 5.94
(*) Annualized.
NET INCOME BY BUSINESS
o The table below shows the breakdown of net income by business.
o "Income from stake in Sudamericana Holding" line includes the results
from our interest in such company as of June 30, 2007.
o "Income from stake in other companies" includes the results from our
interests in Net Investment, Galicia Warrants and Galval as of
September 30, 2007.
o 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.
o The "Other income GFG" line mainly includes the administrative
expenses and the financial expenses.
o "Income tax" shows a positive result due to the fact that since this
quarter the Company does not have the financial income related to the
negotiable obligations and began to accrue the financial expenses
related to the loan taken for the capitalization of the Bank.
5
In millions of pesos
----------------------------------------------------
FY 2007 NINE MONTHS ENDED AT
------------------------ ------------------------
NET INCOME BY BUSINESS 3RD. Q 2ND. Q 09/30/07 09/30/06
------------------------------------------------- ---------- ---------- ---------- ----------
Income from stake in Banco Galicia (94.66%) (*) 7.1 7.2 (19.6) (16.1)
Income from stake in Sudamericana Holding (87.5%) 3.1 3.6 10.6 7.0
Income from stake in other companies 0.5 0.3 0.8 1.0
Deferred tax adjustment 2.7 2.5 8.4 5.8
Adjustment of treasury shares - - - (3.1)
Other Income GFG (8.5) (0.9) 4.2 122.1
Income tax 2.0 (0.1) (3.0) (43.4)
Net Income for the period 6.9 12.6 1.4 73.3
(*) Until August 2, 2007 stake in Banco Galicia was 93.6%
CONFERENCE CALL
On Tuesday November 13, 2007, at 11:00 A.M. Eastern Standard Time (1:00 P.M.
Buenos Aires Time), Grupo Galicia will host a conference call to review this
results.
The call-in number is: (719) 325-4795
If you are unable to participate in the call, a replay will be available from
Tuesday, November 13, 2007, at 03:00 P.M. Eastern Standard Time until Saturday,
November, 17, 2007, at 12:00 P.M. Eastern Standard Time dialing (719) 457-0820,
pass code: 3098940.
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This report is a summary analysis of 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 Grupo Galicia's financial
statements, as well as with all other material periodically filed with the
Comision Nacional de Valores (www.cnv.gov.ar), the Securities and Exchange
Commission (www.sec.gov), the Bolsa de Comercio de Buenos Aires
(www.bolsar.com.ar), the 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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6
SELECTED FINANCIAL INFORMATION - CONSOLIDATED DATA (*)
In millions of pesos
------------------------------------------------------------------------
09/30/07 06/30/07 03/31/07 12/31/06 09/30/06
------------ ------------ ------------ ------------ ------------
CASH AND DUE FROM BANKS 2,625.5 2,057.8 2,062.6 2,294.8 1,629.4
GOVERNMENT AND CORPORATE SECURITIES 2,238.7 3,571.2 2,272.4 3,188.6 3,456.4
LOANS 10,929.6 9,910.9 10,712.8 10,525.0 11,157.3
OTHER RECEIVABLES RESULTING FROM FINANCIAL
BROKERAGE 3,198.6 3,378.5 3,841.0 5,412.8 7,187.0
EQUITY IN OTHER COMPANIES 43.7 42.2 40.5 35.6 64.4
BANK PREMISES AND EQUIPMENT, MISCELLANEOUS
AND INTANGIBLE ASSETS 1,255.2 1,250.5 1,263.3 1,264.2 1,229.9
OTHER ASSETS 1,477.9 1,065.2 1,005.9 894.4 731.7
TOTAL ASSETS 21,769.2 21,276.3 21,198.5 23,615.4 25,456.1
DEPOSITS 12,748.3 12,438.8 11,858.1 10,779.4 10,412.7
- Non-Financial Government Sector 207.7 202.7 79.7 63.9 62.7
- Financial Sector 159.5 156.1 153.9 154.3 199.3
- Non-Financial Private Sector and Residents Abroad 12,381.1 12,080.0 11,624.5 10,561.2 10,150.7
- Current Accounts 2,465.7 2,439.2 2,080.1 1,982.8 1,790.9
- Savings Accounts 3,014.8 2,816.8 2,647.5 2,442.9 2,367.8
- Time Deposits 6,467.2 6,433.8 6,536.0 5,789.3 5,638.0
- Investment Accounts 3.6 5.5 5.6 4.0 4.0
- Other 302.8 232.7 209.8 211.3 222.7
- Accrued interest and quotation diferences payable 127.0 152.0 145.5 130.9 127.3
OTHER BANKS AND INTERNATIONAL ENTITIES 865.1 361.7 447.0 1,125.7 1,137.1
NEGOTIABLE OBLIGATIONS 3,229.6 3,686.4 3,511.2 3,587.0 3,294.7
OTHER LIABILITIES 3,120.0 3,011.2 3,626.0 6,347.6 8,753.6
MINORITY INTERESTS 196.3 175.3 165.9 167.2 157.9
TOTAL LIABILITIES 20,159.3 19,673.4 19,608.2 22,006.9 23,756.0
SHAREHOLDERS' EQUITY 1,609.9 1,602.9 1,590.3 1,608.5 1,700.1
INFLATION AND EXCHANGE RATE
Retail Price Index (%) (**) 1.90 1.61 2.23 2.57 2.09
Wholesale Price Index (%) (**) 4.02 5.37 1.75 0.68 1.29
C.E.R. (%) (**) 1.50 1.91 2.52 2.46 1.65
Exchange Rate ($/U$S) (***) 3.1495 3.0908 3.1007 3.0695 3.1043
(*) 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
7
SELECTED FINANCIAL INFORMATION - CONSOLIDATED DATA (*)
In millions of pesos
------------------------------------------------------------------
QUARTER ENDED: 09/30/07 06/30/07 03/31/07 12/31/06 09/30/06
--------------------------------------------------------- ---------- ---------- ---------- ---------- ----------
FINANCIAL INCOME 518.4 451.8 476.9 428.7 514.3
- Interest on Cash and Due From Banks 4.1 2.0 3.7 0.6 0.3
- Interest on Loans to the Financial Sector 0.5 0.2 2.3 1.0 0.6
- Interest on Overdrafts 32.1 25.1 19.6 21.0 20.6
- Interest on Notes 75.7 61.4 59.8 58.1 51.5
- Interest on Mortgage Loans 26.0 22.2 20.6 20.3 19.0
- Interest on Pladge Loans 3.4 2.8 2.5 2.2 2.0
- Interest on Credit Card loans 111.9 101.6 90.7 89.6 65.2
- Interest on Other Loans 56.6 42.7 40.1 36.5 27.1
- Net Income from Government and Corporate Securities 81.5 66.9 35.5 (66.5) 66.7
- On Other Receivables Resulting from Financial
Brokerage 8.8 7.4 10.3 34.7 48.1
- Net Income from Guaranteed Loans-Decree 1387/01 15.5 20.1 30.3 46.6 51.9
- Adjustment by application of adjusting index 22.5 45.2 89.9 149.5 121.4
- Quotations Differences on Gold and Foreign Currency 23.2 22.8 12.4 13.4 23.2
- Other 56.6 31.4 59.2 21.7 16.7
FINANCIAL EXPENSES 290.7 263.0 354.5 442.7 408.0
- Interest on Demand Accounts Deposits 3.6 4.0 4.1 4.2 5.1
- Interest on Saving Accounts Deposits 0.8 1.5 1.4 1.2 1.2
- Interest on Time Deposits 130.9 119.0 114.6 106.5 89.0
- Interest on Interbank Loans Received (Call Money 1.5 0.8 0.9 1.0 0.6
Loans)
- Interest on Loans from Financial Sector 0.5 0.5 0.6 0.7 0.8
- For other Liabilities resulting from Financial
Brokerage 78.9 68.9 91.4 86.8 67.5
- Interest on Subordinated Negotiable Obligations 24.1 23.2 23.2 22.0 22.5
- Other interest 1.1 1.3 42.3 38.4 43.2
- Adjustment by application of adjusting index 7.8 8.2 43.2 126.7 121.8
- Contributions to the Deposit Insurance Fund 5.3 5.0 4.7 4.4 4.0
- Other 36.2 30.6 28.1 50.8 52.3
GROSS BROKERAGE MARGIN 227.7 188.8 122.4 (14.0) 106.3
PROVISIONS FOR LOAN LOSSES 72.7 36.8 49.4 26.3 20.6
INCOME FROM SERVICES, NET 241.3 220.4 200.0 192.8 173.6
ADMINISTRATIVE EXPENSES 339.3 304.3 276.2 278.3 253.4
- Personnel Expenses 174.7 160.7 144.2 146.3 128.6
- Directors' and Syndics' Fees 1.6 1.6 1.7 2.0 1.8
- Other Fees 12.6 9.6 8.1 9.9 9.5
- Advertising and Publicity 29.5 26.9 24.3 26.0 25.3
- Taxes 20.4 14.7 13.6 15.0 13.1
- Depreciation of Premises and Equipment 13.3 12.0 10.2 9.5 9.3
- Amortization of Organization and Development Expenses 9.2 8.8 9.0 8.6 8.2
- Other Operating Expenses 49.6 45.5 43.1 40.0 37.6
- Other 28.4 24.5 22.0 21.0 20.0
MINORITY INTEREST (9.4) (9.4) (4.2) (1.3) (7.3)
INCOME FROM EQUITY INVESTMENTS 1.4 0.1 0.3 (1.2) 2.6
NET OTHER INCOME (21.4) (29.5) 6.4 49.6 57.2
INCOME TAX 20.7 16.7 17.4 13.5 25.2
NET INCOME 6.9 12.6 (18.1) (92.2) 33.2
(*) Grupo Financiero Galicia, consolidated with subsidiary companies (Art. 33 -
Law 19550).