Grupo Financiero Galicia reported a 12% year-over-year increase in net profit to ARS 258 billion for the second quarter of 2026, supported by a 19% rise in dollar-denominated financing and a 6% expansion in average interest-earning assets.
The lender’s return on average equity stood at 11.3%, while its regulatory capital ratio climbed 48 basis points sequentially to 26%, reflecting strengthened Tier 1 capital at 25.9%. Total deposits grew 7% quarter-over-quarter to ARS 27 trillion, with dollar deposits up 6% and peso deposits up 7%. Market share in private-sector loans increased by 69 basis points to 15.1%, while deposit market share rose 42 basis points to 14.3%.
Banco Galicia, the group’s core unit, contributed ARS 158 billion to net income, a 21% year-over-year increase and a 211% sequential surge. Naranja X reported ARS 36 billion in profits, while Fondos Fima and Galicia Seguros posted ARS 38 billion and ARS 23 billion, respectively. The group’s efficiency ratio improved to 38.8%, down from 40.1% in the prior quarter.
Asset quality showed signs of pressure, with the non-performing loan ratio rising 60 basis points to 8.3%, though the allowance coverage ratio increased to 92.8%. Liquidity remained robust, with liquid assets covering 93.1% of transactional deposits and 55.2% of total deposits.
Net interest income declined 3% quarter-over-quarter, reflecting an 8% drop in interest income and a 16% reduction in interest expenses. Net fee income rose 2%, driven by a 14% decrease in fee expenses, while net income from financial instruments surged 275%, supported by reduced derivative losses and higher fair-value gains on government securities.
Management raised its full-year loan growth guidance to 10%-15%, primarily in dollar-denominated lending, with deposit growth expected around 10%. Return on equity is projected at 10% for the year, targeting 12% by year-end, while the efficiency ratio is guided below 40%. The cost of risk is expected to decline to 8.3% from current levels of 9.3%, with the NPL ratio projected to peak in Q2 before stabilizing at 6.3% by December.
The group’s market capitalization stood at $7.46 billion, with a dividend yield of 3.8% and a P/E ratio of 163. Shares traded at $43.86, down 0.77% on the day, near the 52-week low of $25.89 and well below the high of $62.515.
