Grupo Financiero Galicia reported a 12% year-over-year increase in net income to ARS 258 billion for the second quarter of 2026, as Banco Galicia’s earnings more than doubled sequentially. The bank’s net income totaled ARS 158 billion, accounting for 61% of the group’s profit, while Naranja X contributed ARS 36 billion and Fondos Fima added ARS 38 billion.
Total average interest-earning assets rose 6% quarter-over-quarter to ARS 30 trillion, with peso-denominated deposits up 7% and dollar deposits increasing 6%. Dollar-denominated financing surged 19% to nearly ARS 25 trillion, offsetting a 4% decline in peso lending. Net interest income declined 3%, while net income from financial instruments jumped 275%, driven by reduced derivative losses and gains from government securities.
Asset quality metrics showed a 60-basis-point deterioration in the non-performing loan ratio to 8.3%, though the allowance coverage ratio improved to 92.8%. The group’s regulatory capital ratio increased by 48 basis points to 26%, with a Tier 1 ratio of 25.9%, exceeding year-end targets of 24% to 25%. The efficiency ratio narrowed to 38.8%, supported by cost reductions linked to post-acquisition restructuring.
Management guided for full-year loan growth of 10% to 15%, primarily in dollar-denominated lending, while deposit growth is projected at around 10%. Net margins are expected to reach 16% for Banco Galicia and 17% for the group. The bank’s shares traded 0.77% lower at $43.86, with a market capitalization of $7.46 billion and a P/E ratio of 163.
