Grupo Financiero Galicia reported a 12% year-over-year increase in net income to AR$258 billion for the second quarter of 2026, driven by an improving operating environment in Argentina. The bank’s return on average equity rose 167 basis points to 11.3%, while return on assets increased 26 basis points to 2.1%. The efficiency ratio improved by 591 basis points to 35.0%, reflecting tighter cost controls.
Banco Galicia, the group’s flagship unit, contributed AR$158 billion to net income, a 21% year-over-year increase. Its return on equity climbed 236 basis points to 8.8%, supported by net loans growth of 11% to AR$22.5 trillion and deposits up 1% to AR$27.0 trillion. Total assets remained flat year-over-year at AR$41.0 trillion, with dollar-denominated loans accounting for 40.1% of the portfolio. The bank held a 14.2% market share in loans and 14.3% in deposits as of April 30, 2026, trailing only Banco Nación among private lenders.
Asset quality metrics showed deterioration, with the non-performing loan ratio rising to 8.80% from 5.2% a year earlier, while the coverage ratio declined to 92.80% from 218.51% in June 2022. The cost of risk for the quarter stood at 9.3%, with full-year guidance maintained at 8.3%. The total capital ratio was 26.0%, with management targeting 24–25% by year-end.
Subsidiary performance varied: Naranja X’s net income grew 17% to AR$35.5 billion, though its NPL ratio surged to 19.74% from 8.68% in June 2025. Fondos FIMA’s assets under management expanded to AR$15.5 trillion, while Galicia Seguros reported AR$23 billion in net income, up 33% year-over-year. The group’s consolidated financial margin for the quarter was 17.9%, down 129 basis points year-over-year, with full-year guidance unchanged at approximately 17%.
Management emphasized loan growth as a priority, with dollar-denominated lending expected to drive a 10–15% increase in total loans for 2026. Deposits are projected to rise about 10%, while full-year return on equity is guided to around 10%, with a target of 12% by year-end. The group’s efficiency ratio is expected to fall below 40%, approaching 39%.
The presentation coincided with Argentina’s macroeconomic stabilization, including a sharp decline in inflation to 33.8% year-over-year in July 2026 from a peak of 211.4% in 2023. Real GDP growth is forecast at 2.5% for 2026 and 2.4% for 2027, following a 1.4% contraction in 2024. The central bank’s net international reserves have increased by USD 9.0 billion year-to-date through September 2026, exceeding an IMF target of USD 8.0 billion.
