Banco Galicia Investor Presentation March 2014 Agenda The - - PowerPoint PPT Presentation

Investor Presentation

March 2014

Banco Galicia

Agenda

»The Argentine Financial System »Banco Galicia »Annex

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Sustained Growth in Financial Intermediation

(*) Jan-14 vs. Jan-13 variation. CAGR: Dec-02 / Jan-14. As of January 31, 2014. CAGR: 26.9% CAGR: 22.3%

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Private-Sector Loans and Deposit Growth

As of January 31, 2014.

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But Still Low Financial Depth

(*) Adjusted by INDEC CPI until 2006, and by private estimates since 2007. In millions of Ps. of January 2014.

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As of December, 2011. The World Bank. As of December, 2011. The World Bank.

Increase in Interest Rates

(1) Private Banks’ 30-day time deposits rate, for deposits over Ps. 1 million. (2) Adjusted by INDEC CPI until 2006, and by private estimates since 2007. As of January 31, 2014.

BADLAR Private Banks (1)

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Breakdown of Deposits by Currency and Type

Deposit data is not shown for the period January-March 2002, because as a result of the devaluation and the pesification measures, figures are not homogeneous for that period. As of January 31, 2014.

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Change in the Composition of the Banking System

December 2001 October 2013

Number Market Share Private-Sector Deposits (%) Number Market Share Private-Sector Deposits (%)

Banking Institutions 86 86 100 100 65 65 100 100 Government-Owned Banks 13 30 12 35 Private-Sector Banks 73 70 53 65

• Domestic Banks

34 15 33 31

• Foreign Banks

39 55 20 34

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Improvement in Asset Composition and in Loan Portfolio Quality

As of December 31, 2013. (*) Not including Central Bank Paper.

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Improvement in Profitability

As of December 31, 2013.

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Agenda

»The Argentine Financial System »Banco Galicia »Annex

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Simplified Organizational Structure

Processing

EBA HOLDING

57.98% Votes 99.6% 87.5% 12.5% 21.63% Shares 97% 77% Insurance 3% 95% 100% 100% 95% TNP 24% 5% 5% Collection Perú

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Number of

Branches Employees Clients (*)

Bank 261 5,487 2,801

• Reg. Credit-Card Cos.

204 5,668 4,552 CFA 95 1,170 536

Total

560 560 12,325 7,889

(*) In thousands. (**) 59 branches and 36 offices.

Banco Galicia in Numbers

December 2013

(Consolidated figures)

(**)

• Ps. bn.

US$ bn.

(6.52 Ps./US$)

Assets 82.2 12.6 Net Loans 55.3 8.5 Deposits 51.4 7.9 Equity 6.7 1.0

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One of the Largest Banks

Market share of loans to the private-sector (1) Market share of private-sector deposits

(1) Includes securitized loans and leasing. (2) Considering CFA, the Bank’s market share of loans to the private-sector would be 9.0%. Source: Argentine Central Bank.

(P) Goverment owned banks

As of October 31, 2013.

(P) (P) (P) (P) (P) (P)

TOP 10 = 76 % TOP 10 = 70 %

Galicia Galicia (2) 14

(1) Includes securitized loans and leasing. Source: Argentine Central Bank (except for the regional credit-card companies). As of October 31, 2013.

Peer Comparison

+T.Reg.+CFA

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+T.Reg.+CFA +T.Reg.+CFA

Source: Argentine Central Bank. As of October 31, 2013.

Competitive Environment

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As of December 31, 2013.

Breakdown of Loans to the Private Sector

Consolidated: Ps. 57.4 billion Bank: Ps. 41.7 billion

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Loan Portfolio by Maturity

Maturing within 1 year: 83.0%. US$-denominated loans: 5.1%. Consolidated figures, as of December 31, 2013.

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Funding Sources (non consolidated)

CAGR: 29%

(*) Includes among other: repos, financial institutions, collections on account of third parties, debt with merchants. US$ -denominated deposits: 7.2%.

As of December 31, 2013.

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Asset Quality

As of December 31, 2013. Acquisition of CFA

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Excess Regulatory Capital and Total Capital Ratio

Banco Galicia consolidated.

As of December 31, 2013.

Total Capital Ratio (%)

Minimum Requirement Ps. 5.7 bn Regulatory Capital Ps. 7.5 bn Excess Capital

• Ps. 1.8 bn / 32.0%

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Strong Profitability

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Agenda

»The Argentine Financial System »Banco Galicia »Annex

23

Net Income Net Financial Income Income Tax Net Income from Services Operating Income Net Charge for Loan Losses Administrative Expenses Net Other Income/Losses 59% 41% 100% 13% 62% 1% 10% 16%

% Change 34 33 34 18 28

• 77

49 41 Variation 2012

Consolidated Income Statement

2013

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Consolidated Income Statement

Net Income Net Financial Income Income Tax Net Income from Services Operating Income Net Charge for Loan Losses Administrative Expenses Net Other Income/Losses 61% 39% 100% 13% 57% 0% 12% 18%

% Change 16 4 11 29 3

• 69

26 15 % Change 50 28 41

• 11

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• 100

101 68 Variation 3Q13 Variation 4Q12 4Q13

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Volume Growth & Productivity Improvement

Dec-02 Dec-13 Abs. %

·Employees 6,058 12,347 6,289 104

• Banco Galicia

4,057 5,487 1,430 35

• Regional Credit-Card Cos.

1,904 5,668 3,764 198

• CFA

1,170

• Other Subsidiaries

97 22 (75) (77) ·Distribution Platform Branches

• Banco Galicia

229 261 32 14

• Regional Credit-Card Cos.

87 204 117 134

• CFA

95 ·Electronic Banking Transactions (1)(in thousands, per month) 4,996 47,783 42,787 856 ·Products Deposit Accounts (*) 1,063 2,768 1,705 160 Credit Cards (*) 1,596 10,891 9,295 582

• Banco Galicia (*)

498 2,520 2,022 406

• Regional Credit-Card Cos. (*) (Proprietary brands and others)

1,098 8,270 7,172 653

• CFA (*)

101 Debit Cards(*) 801 2,376 1,575 197 ·Client Base (*) 2,013 7,889 5,876 292

(*) In thousands.

Variation

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Tarjetas Regionales

» Consumer finance to medium and low income segments. » Merchant acquirer and payment processing services provider to proprietary credit cards. » Largest credit card issuer in Argentina with over: » 3.0 million active accounts and 8.0 million cards issued. » 204 branches and 56 offices across the country. » 35% market share in purchase volume in the interior of Argentina (excluding the city and the

province of Buenos Aires) and 15% nationwide.

» Second largest merchant acquirer with over 230,000 affiliated merchants. » Largest independent payment processor with more than 135 million annual transactions.

In millions of Ps.

2012 2013 Assets 9,629 13,393 Loans 8,957 11,988 Net Worth 1,859 2,366 Net Income 524 524 636 636 ROE 31.8% 31.0%

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CFA | Efectivo Sí

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» Consumer finance to medium and low income segments. » Leader in Personal Loans within consumer finance institutions. » More than 20 years in the market with strong brand: » 536,000 current clients (segment C1, C2, C3, D1) – more than 1 million historical clients. » 411,000 loans granted in 2012 and 418,000 during the first nine months of 2013. » Loans in pesos, no guarantee, fixed interest rate. » 95 branches (59 Branches and 36 Offices).

In millions of Ps.

2012 2013 Assets 3,167 3,699 Loans 2,448 3,248 Net Worth 994 1,037 Net Income 216 143 ROE 23.1% 14.2%

Lines of Business

December 2013

(In millions of Ps. except percentages). It does not include accrued interest.

Cash loans. Granted in branches. 2,245 69% Pay ayroll ll loans. Government employees, pensioners, military and members of mutuals. 456 14% Loans for the the acquisit isitio ion of goods. Granted through retail merchants associated with CFA. 379 12% Microfin inanc ance. Entrepreneurs and Self-employeed. 2

• Issu

suer of Visa and MasterCar erCard credit dit cards. Cross-selling to current clients and to open market clients. 166 5% Total 3,248 100% Insu suran ance (casu sualty alty, , life, , burial al, , purchase ase). ). Issu suer of debit cards associat iated ed with sav avin ing accounts and time depo posit sits, , for ret etir ired people ple and pensione sioners.

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