Grupo Financiero Galicia reported a 12% year-over-year increase in net income to AR$258 billion for the second quarter of 2026, as Argentina’s economic stabilization supported banking sector performance. The Buenos Aires-based lender’s return on average equity rose to 11.3%, up 167 basis points from the prior-year period, while its return on assets increased to 2.1%. The company maintained its full-year guidance for total loan growth of 10%-15% and deposit growth of approximately 10%, with a target ROE of around 12% by year-end.
Banco Galicia, the group’s flagship unit, contributed AR$158 billion to net income, a 21% year-over-year increase, with net loans rising 11% to AR$22.5 trillion and deposits up 1% to AR$27.0 trillion. The bank’s dollar-denominated loan portfolio accounted for 40.1% of total loans, while its market share in Argentina’s private banking sector stood at 14.2% for loans and 14.3% for deposits as of April 30, 2026. The group’s efficiency ratio improved to 35.0%, a 591-basis-point reduction from the prior year, though its financial margin narrowed by 129 basis points to 17.9%.
Naranja X, the group’s digital consumer finance arm, reported a 17% year-over-year rise in net income to AR$35.5 billion, with a return on equity of 12.2%. However, its non-performing loan ratio surged to 19.74%, up 1,106 basis points from the prior year, though management expects this metric to decline to 16%-17% by year-end. Asset management unit Fondos FIMA saw assets under management grow to AR$15.5 trillion, while insurance subsidiary Galicia Seguros posted a 33% year-over-year increase in net income to AR$23 billion, despite a compressed net income-to-turnover ratio of 3.6%.
Grupo Financiero Galicia’s asset quality metrics reflected broader banking sector challenges, with its NPL ratio rising to 8.80% as of June 2026, up from 3.16% in June 2022. The coverage ratio declined to 92.80%, while the cost of risk was guided to 8.3% for the full year. The group’s total capital ratio improved to 26.0%, with management stating it maintains adequate capitalization for anticipated growth over the next two to three years.
The company’s outlook aligns with Argentina’s improving macroeconomic conditions, including a projected inflation rate of 29.9% for 2026, down from 211.4% in 2023, and real GDP growth of 2.5%. The central bank’s net international reserves increased by USD 9.0 billion year-to-date through September 2026, exceeding the IMF program target of USD 8.0 billion.
