GRUPO FINANCIERO GALICIA SA Files 20-F for Fiscal Year Ended December 31, 2023

TL;DR

<b>Grupo Financiero Galicia SA has submitted its 2023 annual report on Form 20-F, detailing financial performance and equity structure.</b>

AI Summary

GRUPO FINANCIERO GALICIA SA (GGAL) filed a Foreign Annual Report (20-F) with the SEC on April 26, 2024. Grupo Financiero Galicia SA filed its annual report on Form 20-F for the fiscal year ended December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. Key financial data points such as issued capital, additional paid-in capital, and retained earnings are detailed for the fiscal year. The report includes information on equity attributable to owners of the parent and noncontrolling interests. The company's principal executive offices are located at Tte. Gral. Juan D. Peron 430, 25th Floor, Buenos Aires, Argentina.

Why It Matters

For investors and stakeholders tracking GRUPO FINANCIERO GALICIA SA, this filing contains several important signals. This filing provides a comprehensive overview of the company's financial position and performance for the fiscal year 2023, crucial for investors assessing its stability and growth prospects. As a 20-F filing, it offers detailed information required by the SEC for foreign private issuers, including financial statements and business descriptions, enabling informed investment decisions.

Risk Assessment

Risk Level: low — GRUPO FINANCIERO GALICIA SA shows low risk based on this filing. The filing is a standard annual report (20-F) and does not contain immediate negative news or significant changes, indicating a routine disclosure.

Analyst Insight

Review the detailed financial statements and equity breakdown within the 20-F to understand Grupo Financiero Galicia SA's financial health and operational performance for 2023.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed Period of Report)
• 2024-04-26 — Filing Date (Filed as of Date)
• 2023-01-01 — Reporting Period Start (Fiscal Year)

Key Players & Entities

• GRUPO FINANCIERO GALICIA SA (company) — Filer
• 20-F (document) — Form Type
• TTE. GRAL. JUAN D. PERON 430 (address) — Business Address Street 1
• BUENOS AIRES (location) — Business Address City
• 2023-12-31 (date) — Conformed Period of Report
• 2024-04-26 (date) — Filed as of Date

FAQ

Industry Context

Grupo Financiero Galicia SA operates within the commercial banking sector, a critical part of Argentina's financial services industry.

Regulatory Implications

As a foreign private issuer, the company is subject to SEC regulations, including the requirement to file annual reports on Form 20-F.

What Investors Should Do

1. Analyze the detailed financial statements and notes within the 20-F filing.
2. Review the sections on business overview and risk factors for strategic insights.
3. Compare key financial metrics with previous years to identify trends.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 20-F filing.
• 2024-04-26: Filing Date — Date the 20-F form was officially submitted to the SEC.

Year-Over-Year Comparison

This filing represents the annual disclosure for the fiscal year 2023, providing updated financial information compared to previous filings.

Key Financial Figures

• $1.00 — 4833, Ps.177.1283 and Ps.102.7500 per US$1.00 as of December 31, 2023, December 31, 2

Filing Documents

• ggal-20231231.htm (20-F) — 11180KB
• exhibit11_2.htm (EX-11.2) — 128KB
• exhibit12_1.htm (EX-12.1) — 8KB
• exhibit12_2.htm (EX-12.2) — 8KB
• exhibit13_1.htm (EX-13.1) — 4KB
• exhibit13_2.htm (EX-13.2) — 4KB
• exhibit97.htm (EX-97) — 34KB
• ggal-20231231_g1.jpg (GRAPHIC) — 3KB
• ggal-20231231_g2.jpg (GRAPHIC) — 82KB
• 0001114700-24-000010.txt (&nbsp;) — 43118KB
• ggal-20231231.xsd (EX-101.SCH) — 350KB
• ggal-20231231_cal.xml (EX-101.CAL) — 163KB
• ggal-20231231_def.xml (EX-101.DEF) — 1073KB
• ggal-20231231_lab.xml (EX-101.LAB) — 1972KB
• ggal-20231231_pre.xml (EX-101.PRE) — 1494KB
• ggal-20231231_htm.xml (XML) — 10354KB

o Item 18 o

Item 17 o Item 18 o If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x Table of Contents TABLE OF CONTENTS PRESENTATION OF FINANCIAL INFORMATION 3

FORWARD LOOKING STATEMENTS

FORWARD LOOKING STATEMENTS 4 PART I 6

Identity of Directors, Senior Management and Advisers

Item 1. Identity of Directors, Senior Management and Advisers 6

Offer Statistics and Expected Timetable

Item 2. Offer Statistics and Expected Timetable 6

Key Information

Item 3. Key Information 6 A. Selected Financial Data 6 B. Capitalization and Indebtedness 6 C. Reasons for the Offer and Use of Proceeds 6 D. Risk Factors 6

Information on the Company

Item 4. Information on the Company 22 A. History and Development of the Company 32 B. Business Overview 100 C. Organizational Structure 102 D. Property, Plants and Equipment 103

Unresolved Staff Comments

Item 4A. Unresolved Staff Comments 105

Operating and Financial Review and Prospects

Item 5. Operating and Financial Review and Prospects 105 A. Operating Results 138 B. Liquidity and Capital Resources 148 C. Research and Development, Patents and Licenses 149 D. Trend Information 149 E. Off-Balance Sheet Arrangements 149 F. Contractual Obligations 149 G. Safe Harbor 149

Directors, Senior Management and Employees

Item 6. Directors, Senior Management and Employees 150 A. Directors, Senior Management and Employees 150 B. Compensation 162 C. Nasdaq Corporate Governance Standars 163 D. Employees 165 E. Share Ownership 166

Major Shareholders and Related Party Transactions

Item 7. Major Shareholders and Related Party Transactions 166 A. Major Shareholders 166 B. Related Party Transactions 168 C. Interest of Experts and Counsel. 169

Financial Information

Item 8. Financial Information 169 A. Consolidated Statements and Other Financial Information 169 B. Significant Changes 173

The Offer and Listing

Item 9. The Offer and Listing 174 A. Offer and Listing Details 174 B. Market Regulations 175

Additional Information

Item 10. Additional Information 175 A. Share Capital. 175 B. Memorandum and Articles of Association 175 C. Material Contracts 182 1 Table of Contents D. Exchange Controls 182 E. Taxation 182 F. Dividends and Paying Agents 190 G. Statement by Experts. 190 H. Documents on Display 190 I. Subsidiary Information 190

Quantitative and Qualitative Disclosures About Market Risk

Item 11. Quantitative and Qualitative Disclosures About Market Risk 197 A. General 190 B. Interest Rate Risk 191 C. Foreign Exchange Rate Risk 193 D. Currency Mismatches 194 E. Market Risk 196 F. Cross-Border Risk 197 G. Overseas Foreign Currency Transfer Risk 197 H. Risk Exposures in the Non-Financial Public Sector 197

Description of Securities Other Than Equity Securities

Item 12. Description of Securities Other Than Equity Securities 198 A. Debt Securities 198 B. Warrants and Rights 198 C. Other Securities 198 D. American Depositary Shares 198 PART II 200

Defaults, Dividend Arrearages and Delinquencies

Item 13. Defaults, Dividend Arrearages and Delinquencies 200

Material Modifications to the Rights of Security Holders and Use of Proceeds

Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds 200

Controls and Procedures

Item 15. Controls and Procedures 200

Audit Committee Financial Expert

Item 16A. Audit Committee Financial Expert 201

Code of Ethics

Item 16B. Code of Ethics 201

Principal Accountant Fees and Services

Item 16C. Principal Accountant Fees and Services 201

Exemptions from the Listing Standards for Audit Committees

Item 16D. Exemptions from the Listing Standards for Audit Committees 202

Purchases of Equity Securities by the Issuer and Affiliated Purchasers

Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers 202

Change in Registrant's Certifying Accountant

Item 16F. Change in Registrant's Certifying Accountant. 202

Corporate Governance

Item 16G. Corporate Governance 202

Mine Safety Disclosure

Item 16H. Mine Safety Disclosure 202

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 16I. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 202

J. Insider Trading P olicies

Item 16 J. Insider Trading P olicies . 202

Cybersecurity

Item 16K. Cybersecurity 202 PARTE III 205

Financial Statements

Item 17. Financial Statements 205

Financial Statements

Item 18. Financial Statements 205

Exhibits

Item 19. Exhibits 206 2 Table of Contents PRESENTATION OF FINANCIAL INFORMATION Grupo Financiero Galicia S.A. ("Grupo Financiero Galicia", "Grupo Galicia", "GFG" or the "Company") is a financial services holding company incorporated in Argentina and is one of Argentina's largest financial services groups. In this annual report, references to "we", "our", and "us" are to Grupo Financiero Galicia and its consolidated subsidiaries, except where otherwise noted. Our consolidated financial statements consolidate the accounts of the following companies: Grupo Financiero Galicia; Banco de Galicia y Buenos Aires S.A.U. ("Banco Galicia" or the "Bank"), our largest subsidiary; Tarjetas Regionales S.A. ("Tarjetas Regionales") and its subsidiaries; Sudamericana Holding S.A. ("Sudamericana Holding" or "Sudamericana") and its subsidiaries; Galicia Warrants S.A. ("Galicia Warrants"); Galicia Asset Management S.A.U. ("Galicia Asset Management"); IGAM LLC ("IGAM") and its subsidiaries; Galicia Securities S.A.U. ("Galicia Securities"); Agri Tech Investments LLC ("Agri Tech") and its subsidiaries; Galicia Ventures LP ("Galicia Ventures"); Galicia Investments LLC ("Galicia Investments"); and Galicia Holdings US, Inc. ("Galicia Holdings"). These consolidated financial statements have been prepared in accordance and in compliance with the IFRS Accounting Standards ("IFRS") issued by the International Financial Reporting Standards Board ("IASB") and the interpretations of the International Financial Reporting Interpretations Committee ("IFRIC"). IFRS in force as of the date of preparation of these consolidated financial statements for the fiscal years ended December 31, 2023, 2022 and 2021 have been applied. We maintain our financial books and records in Argentine Pesos and prepare our financial statements in conformity with IFRS, as issued by the IASB, effective as of the fiscal year beginning on January 1, 2018. As of July 1, 2018, Argentina qualified as a hyperinf

FORWARD LOOKING STATEMENTS

FORWARD LOOKING STATEMENTS This annual report contains forward-looking statements that involve substantial risks and uncertainties, including, in particular, statements about our plans, strategies and prospects under the captions Item 4. "Information on the Company"-A. "History and Development of the Company"-"Capital Investments and Divestitures," Item 5. "Operating and Financial Review and Prospects"-A. "Operating Results-Principal Trends" and B. "Liquidity and Capital Resources." All statements other than statements of historical facts contained in this annual report (including statements regarding our future financial position, business strategy, budgets, projected costs and management's plans and objectives for future operations) are forward-looking statements. In addition, forward-looking statements generally can be identified by the use of such words as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue" or other similar terminology. Although we believe that the expectations reflected in these forward-looking statements are reasonable, no assurance can be provided with respect to these statements. Because these statements are subject to risks and uncertainties, actual results may differ materially and adversely from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially and adversely from those contemplated in such forward-looking statements include, but are not limited to: changes in general political, legal, social or other conditions in Argentina, Latin America or other countries or regions; changes in the macroeconomic situation at the regional, national or international levels, and the influence of these changes on the microeconomic conditions of the financial markets in Argentina; changes in capital markets in general that may affect policies or attitudes toward lending to Argentina or Argentine companies, including expected or unexpected turbulence o

Identity of Directors, Senior Management and Advisers

Item 1. Identity of Directors, Senior Management and Advisers Not applicable.

Offer Statistics and Expected Timetable

Item 2. Offer Statistics and Expected Timetable Not applicable.

Key Information

Item 3. Key Information A. [Reserved] B. Capitalization and Indebtedness Not applicable. C. Reasons for the Offer and Use of Proceeds Not applicable. D. Risk Factors You should carefully consider the risks described below in addition to the other information contained in this annual report. In addition, most, if not all, of the risks described below must be evaluated bearing in mind that our most important asset is our equity interest in Banco Galicia. Thus, a material change in Banco Galicia's shareholders' equity or income statement would also adversely affect our businesses and results of operations. We may also face risks and uncertainties that are not presently known to us or that we currently deem immaterial, which may impair our business. Our operations, property and customers are located in Argentina. Accordingly, the quality of our customer portfolio, loan portfolio, financial condition and results of operations depend, to a significant extent, on the macroeconomic and political conditions prevailing in Argentina. In general, the risk assumed when investing in the securities of issuers from countries such as Argentina is higher than when investing in the securities of issuers from developed countries. Risk Factors Relating to Argentina The current state of the Argentine economy, together with uncertainty regarding the government, may adversely affect our business and prospects. Grupo Galicia's results of operations may be affected by inflation, fluctuations in the exchange rate, modifications in interest rates, changes in the Argentine government's policies and other political or economic developments either internationally or in Argentina. During the course of the last decades, Argentina's economy has been marked by a high degree of instability and volatility, periods of low or negative economic growth and high, fluctuating levels of inflation and currency devaluation. Grupo Galicia's results of operations, the rights of holders of securiti

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View this 20-F filing on SEC EDGAR