GGAL · Grupo Financiero Galicia S.A.

Grupo Financiero Galicia S.A. (GGAL) announced Q1 2026 results showing net income of Ps.66,488 million attributable to GFG, a 66% decline from Ps.193,576 million in Q1 2025, driven primarily by elevated loan loss provisions of Ps.892,130 million (up 66% YoY) amid rising NPL ratio to 9.6% (up 597 bp YoY) and cost of risk at 12.2%. This offset improvements in net interest income (Ps.1,595 billion, +13% YoY) and a recovering financial margin of 17.8%, which benefited from March stabilization after early-quarter interest rate volatility. Fee income dipped 9% YoY due to Q1 seasonality in transaction volumes. Expenses improved significantly, with efficiency ratio at 39.9% (down 870 bp YoY), reflecting integration efficiencies from Galicia Más. ROE fell to 3.2% (-564 bp YoY) and ROA to 0.6%, while capital ratio remained solid at 23.3%. Subsidiary performance varied: Banco Galicia posted Ps.47,653 million profit (+24% YoY, ROE 2.9%), Fondos Fima Ps.34,375 million, Galicia Seguros Ps.12,546 million, offset by Naranja X loss of Ps.18,638 million. Balance sheet contracted 2% YoY to Ps.45.2 trillion assets, with deposits stable and loans up 11% YoY. Management highlighted improved delinquency rates reducing provisions from prior quarter, lower intermediation volumes, and strategic focus on customer experience and digital transformation. Conference call scheduled for May 14, 2026.