Grupo Financiero Galicia reported net income of ARS 258 billion for the second quarter of 2026, a 12% increase from the same period a year earlier. Banco Galicia, the group’s core banking unit, contributed ARS 158 billion to the total, up 21% year-over-year and 211% quarter-over-quarter.
The bank’s return on average assets stood at 2.1%, while return on average equity reached 11.3%. Total financing to the private sector rose to nearly ARS 25 trillion, a 4% increase from the prior quarter, while total deposits expanded 7% to ARS 27 trillion. The efficiency ratio improved to 38.8%, down from 41.5% in the first quarter.
Net interest income declined 3% quarter-over-quarter, driven by an 8% drop in interest income and a 16% reduction in interest expense. Net fee revenue increased 2%, while net income from financial instruments surged 275%. Loan-loss provisions fell 8% from the previous quarter.
Shares of Banco Galicia, listed under ticker GGAL, were recently quoted at US$ 43.86, down 0.77% on the session. The stock has traded between a 52-week high of US$ 62.52 and a low of US$ 25.89. The company’s market capitalization stands at US$ 7.46 billion, with a price-to-earnings ratio of 163.
Management lowered its full-year 2026 credit growth guidance to a range of 10% to 15%, citing a shift toward USD-denominated lending in sectors such as oil and gas. Deposit growth is projected at around 10% for the year. Return on equity is targeted at approximately 10% for 2026, with a year-end goal of 12%. The bank’s net interest margin is expected to settle near 16%, while the group’s margin is forecast at 17%.
The cost of risk for Banco Galicia is projected at 8.3% for 2026, with the efficiency ratio expected to remain below 40% and approach 39%. The capital ratio is targeted at 24% to 25% by year-end. Within the group’s digital consumer credit unit, Naranja X, the non-performing loan ratio is forecast to decline to 16%-17% by December, down from around 20% in the second quarter, with coverage ratios returning to 100%.
Executive Director Gonzalo Fernández Covaro highlighted the bank’s focus on expanding its credit portfolio as a sustainable growth driver, adding that loan-loss provisions are expected to continue easing in the second half of the year.
