For the fiscal year from January 1, 2012 to December 31, 2012, presented in comparative format.

Transcription

1 ANNUAL FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS For the fiscal year from January, 202 to December 3, 202, presented in comparative format. INDIVIDUAL FINANCIAL STATEMENTS AUDITORS' REPORT REPORT OF THE SUPERVISORY COMMITTEE Name: BANCO DE GALICIA Y BUENOS AIRES S.A. Legal Domicile: 407 Tte. Gral. Juan D. Perón Street Buenos Aires Argentina Principal Line of Business: Domestic Capital PrivateSector Commercial Bank. Date of Registration with the Commercial Court of Record Of Bylaws: November 2, 905. Of the First Amendment to the Bylaws: and subsequent amendments, the latest being on No. 9,4 Book 3. Registration Number with the Argentine Superintendency of Corporations: 67,488. Expiry of Company's Bylaws: June 30, 200. Information on Controlled Companies: See Schedule E and Note 3 to the Financial Statements and in Notes to the Consolidated Financial Statements (Sec. 33 Law No. 9,550). Capital Status: See Schedule K. Name of the Controlling Company: Grupo Financiero Galicia S.A. Legal Domicile: 456 Tte. Gral. Juan D. Perón Street 2nd floor Buenos Aires Argentina Principal Line of Business: Financial and Investment Activities. Percentage of Equity Interest Held by the Controlling Company: % (Note 4). Percentage of Votes to Which the Controlling Company is Entitled: % (Note 4). Banco Galicia Annual Report

2 CONSOLIDATED BALANCE SHEET (SECTION 33 LAw N 9,550) FOR THE FISCAL YEAR FROM JANUARY, 202 TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT Supplementary Information to the Annual Financial Statements December 3, Assets Cash and Due from Banks Cash Financial Institutions and Correspondents Argentine Central Bank Local Financial Institutions Foreign Government and Corporate Securities Holdings Recorded at Fair Market Value Government Securities Received in Connection with Reverse Repurchase Agreement Transactions with the Argentine Central Bank Holdings Recorded at Cost Plus Yield Investments in Quoted Corporate Securities Securities Issued by the Argentine Central Bank Loans To the NonFinancial Public Sector To the Financial Sector Interbank Loans (Call Money Loans Granted) Financing to Local Financial Institutions Accrued Interest, Adjustments and Quotation Differences Receivable To the NonFinancial Private Sector and Residents Abroad Advances Promissory Notes Mortgage Loans Pledge Loans Personal Loans Credit Card Loans Accrued Interest, Adjustments and Quotation Differences Receivable (Unallocated Collections) (Documented Interest) Allowances Receivables Resulting from Financial Brokerage Argentine Central Bank Amounts Receivable for Spot and Forward Sales to be Settled Securities Receivable Under Spot and Forward Purchases to be Settled Premiums from Bought Options Receivables not Included in the Debtor Classification Regulations Negotiable Obligations without Quotation Balances from Forward Transactions without Delivery of Underlying Asset to be Settled Receivables Included in the Debtor Classification Regulations Accrued Interest and Adjustments Receivable Included in the Debtor Classification Regulations Allowances Receivables from Financial Leases Receivables from Financial Leases Accrued Interest and Adjustments Receivable Allowances 202 8,338,735 2,560,934 5,777,80 5,63,604 20,240 43,957 3,579,994 70, , ,685,293 42,570, ,67 84, ,582 7,035 43,945,89 3,097,755 0,459,660,58,832 30,668 7,283,083 9,279,002,897, ,504 (780) (200,705) (,73,954) 4,94,346 76,493 22, ,005 3,059,808,060 86,22 2, , (68,773) 854,802 85,294 5,893 (2,385) 20 6,42,97 2,30,439 4,0,758 3,979,2 6,364 6,273 5,76,545 68,746 40,600 62,44 2,040 4,902,745 30,88,009, ,239 26,000 89,09,220 3,837,684 2,302,49 6,42, , ,336 5,785,668 3,392,249 2,529, ,79 (,569) (65,626) (,283,953) 4,83, ,902,57, ,263 22,56,008 3,600, ,0 2,857 (55,290) 600, ,77,574 (6,509) 8 Banco Galicia Annual Report 202

3 CONSOLIDATED BALANCE SHEET (SECTION 33 LAw N 9,550) (CONT.) FOR THE FISCAL YEAR FROM JANUARY, 202 TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT Supplementary Information to the Annual Financial Statements December 3, Equity Investments In Financial Institutions Allowances Miscellaneous Receivables Receivables for Assets Sold Minimum Presumed Income Tax Tax Credit Accrued Interest on and Adjustments to Receivables for Assets Sold Accrued Interest and Adjustments Receivable Allowances Bank Premises and Equipment Miscellaneous Assets Intangible Assets Organization and Development Expenses Unallocated Items Total Assets Liabilities Deposits NonFinancial Public Sector Financial Sector NonFinancial Private Sector and Residents Abroad Current Accounts Savings Accounts Time Deposits Investment Accounts Accrued Interest, Adjustments and Quotation Differences Payable Liabilities Resulting from Financial Brokerage Argentine Central Bank Banks and International Entities Unsubordinated Negotiable Obligations Amounts Payable for Spot and Forward Purchases to be Settled Securities to be Delivered Under Spot and Forward Sales to be Settled Premiums from Written Options Financing from Local Financial Institutions Interbank Loans (Call Money Loans Received) Financing from Local Financial Institutions Accrued Interest Payable Balances from Forward Transactions without Delivery of Underlying Asset to be Settled Accrued Interest, Adjustments and Quotation Differences Payable Miscellaneous Liabilities Directors' and Syndics' Fees ,349 2,438 2,423 (27,52) 75, ,85 80, (02,8),63,682 84,239,075,430,075,430 6,865 62,77,337 39,99,096,25,534 35,798 38,703,764 9,504,52 9,476,795 8,877,685 70,443 40, ,093 4,38,234 3,637 3, ,88 3,977,09 434,784 22, ,05,434 82,000,04,570 8,864 4,424 7,777,890 8,38,650,235 5,368,634, ,374 2,33 94,53 (2,290) 806,656 24,085 86,29 630, (34,4),02,037 62,224 7,044 7,044 6,262 50,657,608 30,49,22,803,86 29,667 28,35,729 6,959,93 7,978,698 2,683,50 209,346 39,620 64,633 3,78,238 3,050 3,050,469,844 3,002, ,045,705, ,68 5, ,872 5,746 4,889 6,49,426 86,422,22,948 2,79,209,769 Banco Galicia Annual Report 202 9

4 CONSOLIDATED BALANCE SHEET (SECTION 33 LAw N 9,550) (CONT.) FOR THE FISCAL YEAR FROM JANUARY, 202 TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT Supplementary Information to the Annual Financial Statements December 3, Adjustments and Accrued Interest Payable Provisions Subordinated Negotiable Obligations Unallocated Items Minority Interests Total Liabilities Shareholders' Equity Total Liabilities and Shareholders' Equity Memorandum Accounts Debit Contingent Loans Obtained (Unused Balances) Guarantees Received not Included in the Debtor Classification Regulations Contingent Re. Contra Items Control Uncollectible Loans Control Re. Contra Items Derivatives "Notional" Value of Put Options Bought "Notional" Value of Forward Transactions without Delivery of Underlying Asset Interest Rate Swaps Derivatives Re. Contra Items Trust Accounts Trust Funds Credit Contingent Loans Granted Unused Balances Included in the Debtor Classification Regulations Guarantees Granted to the Argentine Central Bank Guarantees Granted Included in the Debtor Classification Regulations Guarantees Granted not Included in the Debtor Classification Regulations Included in the Debtor Classification Regulations not Included in the Debtor Classification Regulations Contingent Re. Contra Items Control Checks and Drafts to be Credited Control Re. Contra Items Derivatives "Notional" Value of Call Options Written "Notional" Value of Put Options Written "Notional" Value of Forward Transactions without Delivery of Underlying Asset Derivatives Re. Contra Items Trust Accounts Trust Liabilities Re. Contra Items ,753,88,05 3, ,595 57,867,388 4,903,949 62,77,337 6,474,449 5,570,66 236,030 9,927,606 28,866 5,378,59 34,258,769 2,006,305 3,089,864,62,600 6,452,762 8,560 3,853, ,955 2,3,778 5,92,257 5,92,257 6,474,449 5,570,66 3,732,287 33,09 345, ,32 759,777 44,298 0,92,502 34,258,769,54,848 7,752 33,096,69 6,452,762 89,768 3,06,992,904 4,338,984 5,92,257 5,92, ,42 988,076 2,288 34,590 47,054,773 3,602,835 50,657,608 50,087,70,884, ,954 7,595,559 8,394 3,825,39 24,999,37,748,649 22,590, ,002 9,937,893 9,028 6,594, ,000 3,054,94 3,265,680 3,265,680 50,087,70,884,226 2,552,994 33,8 333, , ,04 3,229 8,058,907 24,999,37 659, ,339,369 9,937,893 9,470 68,5 2,977,320 6,882,952 3,265,680 3,265, Banco Galicia Annual Report 202

5 CONSOLIDATED INCOME STATEMENT (SECTION 33 LAw N 9,550) FOR THE FISCAL YEAR FROM JANUARY, 202 TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT Supplementary Information to the Annual Financial Statements December 3, Financial Income Interest on Cash and Due from Banks Interest on Loans Granted to the Financial Sector Interest on Advances Interest on Promissory Notes Interest on Mortgage Loans Interest on Pledge Loans Interest on Credit Card Loans Interest on Financial Leases Interest on Loans Net Income from Government and Corporate Securities Net Income from Options Interest on Receivables Resulting from Financial Brokerage CER Adjustment Quotation Differences on Gold and Foreign Currency Financial Expenses Interest on Savings Account Deposits Interest on Time Deposits Interest on Subordinated Obligations Interest Interest on Interbank Loans Received (Call Money Loans) Interest on Financing from Financial Institutions Net Loss from Options Interest on Liabilities Resulting from Financial Brokerage Contributions to the Deposit Insurance Fund Quotation Differences on Gold and Foreign Currency CER Adjustment Gross Financial Margin Loan Loss Provision Income from Services In Relation to Lending Transactions In Relation to Borrowing Transactions Commissions Expenses for Services Commissions Administrative Expenses Personnel Expenses Directors' and Syndics' Fees Fees Advertising and Publicity Taxes Depreciation of Premises and Equipment 202 9,090, ,8 699,543,393,332 25,68 35,76 2,932,82 30,568 2,543,59 937,053,500 36, ,463 3,922,728 4,8 2,89,6 22,82 54,586 9,560 49,44 596,568 57,36 83, ,48 5,68,38,347,302 5,03,07,80,982 76,95 08,945 2,979,39,453,49 636,48 86,73 5,62,403 3,42,970 47, ,6 357, ,564 3, ,983, , , ,0 2,656 24,443,744,62 97,496,88, ,83 26, ,265 5,788 2,259,502 6,906,275,87 4,455 25,899 2,843 43, ,598 44, ,933 3,723, ,370 3,757, , ,524 72,946 2,09,674,067, ,953 60,022 4,064,052 2,274,26 35,600 74, , ,300 9,30 Banco Galicia Annual Report 202 2

6 CONSOLIDATED INCOME STATEMENT (SECTION 33 LAw N 9,550) (CONT.) FOR THE FISCAL YEAR FROM JANUARY, 202 TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT Supplementary Information to the Annual Financial Statements December 3, Amortization of Organization Expenses Operating Expenses Net Income / (Loss) from Financial Brokerage Minority Interests Results Miscellaneous Income Income from Equity Investments Default Interests Loans Recovered and Allowances Reversed CER Adjustment Miscellaneous Losses Default Interest and Charges in Favor of the Argentine Central Bank Loan Loss Provisions for Miscellaneous Receivables and Provisions Depreciation of and Losses on Miscellaneous Assets Goodwill Amortization Amortization of Differences Arising from Court Resolutions Net Income / (Loss) Before Income Tax Income Tax Net Income / (Loss) for the Fiscal Year , , ,364,786,30 (08,826) 655,46 35,003 46, ,663 8, , ,05 59,74,085 6,452 2,090, ,559,30, ,567 58,0 325,566,505,930 (08,742) 587,757 44,555 87,06 224,384 3, , ,268 44,926,756 0,700 6,933,834,52 727,239,07, Banco Galicia Annual Report 202

7 STATEMENT OF CASH FLOwS (SECTION 33 LAw N 9,550) FOR THE FISCAL YEAR FROM JANUARY, 202 TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT Supplementary Information to the Annual Financial Statements December 3, Changes in Cash and Cash Equivalents Cash at Beginning of Fiscal Year Cash at Fiscal Year End Net Increase / (Decrease) in Cash (in Constant Currency) Causes of Changes in Cash (In Constant Currency) Operating Activities Net Collections / (Payments) Related to: Government and Corporate Securities Loans To the Financial Sector To the NonFinancial Public Sector To the NonFinancial Private Sector and Residents Abroad Receivables Resulting from Financial Brokerage Receivables from Financial Leases Deposits To the Financial Sector To the NonFinancial Public Sector To the NonFinancial Private Sector and Residents Abroad Liabilities Resulting from Financial Brokerage Financing from the Financial Sector Interbank Loans (Call Money Loans Received) s (Except those Liabilities Included in Financial Activities) Collections Related to Income from Services Payments Related to Expenses for Services Administrative Expenses Paid Payment Related to Organization and Development Expenses Net Collections / (Payments) Related to Default Interest Differences Deriving from Court Resolutions Paid Collection Related to Dividends from Companies Collections / (Payments) Related to Miscellaneous Profits and Losses Net Collections / (Payments) Related to Operating Activities To Receivables and Miscellaneous Liabilities To Net Operating Activities Payment of the Income Tax / Minimum Presumed Income Tax Net Cash Flow Provided by / (Used in) Operating Activities Investment Activities Net Collections/ (Payments) Related to Bank Premises and Equipment Net Collections/ (Payments) Related to Miscellaneous Assets Payments Related to Equity Investments Acquired Net Cash Flow Provided by / (Used in) Investment Activities Financing Activities Net Collections / (Payments) Related to: Unsubordinated Negotiable Obligations Argentine Central Bank Banks and International Entities 202 0,086,4,206,33,9,920,29,664 (3,260) 940 (4,445,666) (274,796) (29,326) 6,3 (552,282) 7,727,63 57,440,23,553 5,03,07 (,428,934) (5,297,45) (562,23) 46,48 (6,452) 42,700 53,766 (49,5) (60,666) (440,07),697,037 (234,403) (49,29) (4,922) (298,454) 58, (888,556) 20 7,306,934 0,086,4 2,779,477 (245,480) (27,462) 2,29 (4,906,243) (86,459) (67,605) 9, ,65 5,269,9 2,57,532,088 3,757,799 (,07,454) (3,865,432) (385,49) 86,256 (6,933) 3, ,338 (40,04) 6 (93,45) 444,387 (60,658) (93,99) (5,058) (268,95) 2,046, ,834 Banco Galicia Annual Report

8 STATEMENT OF CASH FLOwS (SECTION 33 LAw N 9,550) (CONT.) FOR THE FISCAL YEAR FROM JANUARY, 202 TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT Supplementary Information to the Annual Financial Statements December 3, Subordinated Obligations Loans from Local Financial Institutions Payment of Dividends Collections / (Payments) Related to Financing Activities Net Cash Flow Provided by / (Used in) Financing Activities Financial Income on Cash and Cash Equivalents (Including Interest and the Monetary Loss) Net Increase / (Decrease) in Cash 202 (66,40) 260,634 (28,650) 2,886 (66,2) 382,458,9, (463,493) 35,639 (2,277) 2,356, ,553 2,779, Banco Galicia Annual Report 202

9 CONSOLIDATED STATEMENT OF DEBTORS STATUS (SECTION 33 LAw N 9,550) FOR THE FISCAL YEAR FROM JANUARY, 202 TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT Supplementary Information to the Annual Financial Statements December 3, Commercial Portfolio Normal With "A" Preferred Collateral and Counterguarantees With "B" Preferred Collateral and Counterguarantees Without Preferred Collateral or Counterguarantees With Special Followup Under Observation With "A" Preferred Collateral and Counterguarantees With "B" Preferred Collateral and Counterguarantees Without Preferred Collateral or Counterguarantees With Problems With "B" Preferred Collateral and Counterguarantees Without Preferred Collateral or Counterguarantees High Risk of Insolvency With "B" Preferred Collateral and Counterguarantees Without Preferred Collateral or Counterguarantees Uncollectible With "B" Preferred Collateral and Counterguarantees Without Preferred Collateral or Counterguarantees Total Commercial Portfolio Consumer and Housing Portfolio Normal Situation With "A" Preferred Collateral and Counterguarantees With "B" Preferred Collateral and Counterguarantees Without Preferred Collateral or Counterguarantees Low Risk With "A" Preferred Collateral and Counterguarantees With "B" Preferred Collateral and Counterguarantees Without Preferred Collateral or Counterguarantees Medium Risk With "B" Preferred Collateral and Counterguarantees Without Preferred Collateral or Counterguarantees High Risk With "B" Preferred Collateral and Counterguarantees Without Preferred Collateral or Counterguarantees Uncollectible With "B" Preferred Collateral and Counterguarantees Without Preferred Collateral or Counterguarantees Uncollectible Due to Technical Reasons With "B" Preferred Collateral and Counterguarantees Without Preferred Collateral or Counterguarantees Total Consumer and Housing Portfolio General Total ,64,60 232,066,385,03 8,546,99 96,26,046 85,70 45, ,582 23,493 2,294 2,99 5,702,734 3,968 20,335,86 28,470,285 4,038 85,062 27,65,85 936, ,685 99, ,464 3, , ,955 3,79 64, ,236 2,56 226,675,843 6,837 30,848,954 5,84, ,20, ,286,088,953 3,824,335 90,0,22 4,482 84,497 0,745 2,302 8,443 40,039 4,083 35,956 2,986,946,040 5,264,445 20,225,960 3, ,282 9,600, ,620 8,53 52,07 38,487 4,2 34, ,63, ,363 42,023 3,325 38,698 2,83 8 2,795 2,548,066 36,82,5 Banco Galicia Annual Report

10 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS with CONTROLLED PARTIES (SEC. 33 OF LAw Nº 9,550) FOR THE FISCAL YEAR FROM JANUARY, 202, TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT NOTE BASIS OF PRESENTATION OF THE FINANCIAL STATEMENTS. DISCLOSURE CRITERIA. The Financial Statements, which stem from accounting records, are presented in line with the provisions of the Argentine Central Bank regarding financial reporting requirements for the publication of quarterly and annual financial statements, and with the guidelines of the General Resolution Nº 368/0 of the National Securities Commission ( CNV ) and supplementary regulations. This resolution provides that, in all cases, the consolidated financial statements must precede the individual financial statements; therefore, these financial statements have been presented in accordance with this guideline. These financial statements include the balances corresponding to the operations carried out by Banco de Galicia y Buenos Aires S.A. (the Bank) and its subsidiaries located in Argentina and abroad and form part of the Bank s financial statements as supplementary information, reason for which they should be read in conjunction with them. These financial statements have been adjusted for inflation as mentioned in note item.2.. to the individual financial statements. These criteria differ in certain aspects from the requirements of the professional accounting standards applicable in the Autonomous City of Buenos Aires ( Argentine GAAP ), as explained in note item.3. to the individual financial statements..2 CRITERIA FOLLOWED BY THE BANK TO INCLUDE THE ACCOUNTS OF THE FOREIGN SUBSIDIARIES. The balances of the foreign subsidiaries originally recorded in foreign currency have been converted into Pesos, as indicated in note item.2.2.7a. to the individual financial statements..3 ACCOUNTING STANDARDS USED. The accounting standards used in preparing the financial statements of the consolidated companies mentioned in note 2 have been adapted to the valuation and disclosure standards followed by the parent company. These standards are described in note to the individual financial statements. NOTE 2 CONSOLIDATION BASIS During the previous fiscal year and the current fiscal year, a restructuring process of the corporate structure of subsidiaries with supplementary activity took place, which did not alter the Bank's controlling position. As part of this process, Tarjetas del Mar S.A. spun off part of its equity to create a new company called Tarjeta Mira S.A. As a result of said spinoff, the Bank holds 98% of Tarjetas del Mar S.A. and Compañía Financiera Argentina S.A. holds the remaining 2%. In addition, during this fiscal year Tarjeta Naranja S.A., merged with Tarjeta Mira S.A. On the other hand, during the previous fiscal year, the Bank and Grupo Financiero Galicia S.A. acquired 2% and 3% respectively of its holdings in Compañía Financiera Argentina S.A. from Tarjetas Regionales S.A., thus, the Bank now holds 97% of capital stock and votes. Also, the Bank sold 90% of Procesadora Regional S.A.'s shares to Tarjetas Regionales S.A.; as a result, the Bank now directly holds 5% of stocks and Tarjetas Regionales S.A. the remaining 95%. Besides, Tarjetas Regionales S.A. added 95% of Cobranzas Regionales S.A. s stock holdings, thus, Tarjeta Naranja S.A. holds the remaining 5%. The following are the total stock holdings, assets, liabilities, shareholders equity and results of the companies controlled directly and indirectly. 26 Banco Galicia Annual Report 202

11 Shares Direct and Indirect Holdings Percentage Held in Class (Stated in Units) Total Capital Stock Possible Votes Issuing Company Banco Galicia Uruguay S.A. (in Liquidation) Tarjetas Regionales S.A. Galicia Valores S.A. Sociedad de Bolsa Galicia Administradora de Fondos S.A. Sociedad Gerente de Fondos Comunes de Inversión Tarjetas Cuyanas S.A. Tarjeta Naranja S.A. Tarjetas del Mar S.A. Cobranzas Regionales S.A. Tarjeta Naranja Dominicana S.A. Galicia (Cayman) Ltd. Compañía Financiera Argentina S.A. Cobranzas y Servicios S.A. Procesadora Regional S.A. Tarjeta Mira S.A. 666, ,886, ,996 20,000 2,489,628,848 3,785,689 7,700 9,508, ,835, ,04,93,25 666,278 88,099, ,996 20,000,939,970,920 3,785,689 9, ,50 22,626,53 540,835, ,04,526,72,77, (*) Face value of,000. (**) Ordinary A and B. (***) Face value of 0. (****) Face value of 00. Ordinary (*) Ordinary (**) Ordinary Ordinary Ordinary (***) Ordinary (***) Ordinary (***) Ordinary (****) Ordinary (****) Ordinary Ordinary Ordinary Ordinary Ordinary (***) Issuing Company Banco Galicia Uruguay S.A. (in Liquidation) 76,56 Tarjetas Regionales S.A.,945,437 Galicia Valores S.A. Sociedad de Bolsa 33,454 Galicia Administradora de Fondos S.A. Sociedad Gerente de Fondos Comunes de Inversión Tarjetas del Mar S.A.,96 30,279 Tarjeta Naranja S.A. 7,770,257 Tarjetas Cuyanas S.A.,697,5 Cobranzas Regionales S.A. 5,433 Tarjeta Naranja Dominicana S.A. Galicia (Cayman) Ltd. 336,565 Compañía Financiera Argentina S.A. 3,98,24 Cobranzas y Servicios S.A. 27,095 Procesadora Regional S.A. 9,333 Tarjeta Mira S.A. Assets Liabilities Shareholders' Equity Results ,474 20,486 39,767 55,670 50,707 (2,272) 878,63,942 5,5 3,358,940,322,60, ,54 429,05 36,09 2,467 6,976 20,987 9,33,854,06 8,658 3,008 3,256 8,88 5,402 2,787,483 25,93 276,005 93,533 34,274 22,380,894 (7,532) 5,832,85 6,2,08 4,606,250,559,76,225,935 43, ,668,85,92,397, ,9 300, ,28 92,447 95,676 2,225 6,888 8,275 8,545 3,950 4,595,952 7,544 2,249 5,295 (2,297) 267, , ,353 46,385 87,699 2,302,880 2,227,55,369, , ,607 23, ,425 23,399 3,790 2,794 23,305 20,605 2,700 2,036 7,786 7,03 5,766 2,302 2, ,00 80,453 65,536 4,97 (,263) The procedure followed to include the accounts of the controlled companies was as follows: ) The financial statements of said companies were adapted,when applicable, to the valuation and disclosure standards set by the Argentine Central Bank and cover the same period as that of the financial statements of the Bank. The acquisition of Compañía Financiera Argentina S.A. and Cobranzas y Servicios S.A. during fiscal year 200 led to the recognition of a negative goodwill that is shown in the Consolidated Balance Sheet under provisions, amounting to, net of amortizations, $247,808 as of December 3, 202, and to $346,93 as of December 3, 20. On February 29, 202, the Extraordinary Meeting of Shareholders of Tarjetas Regionales S.A. approved a capital increase which was subscribed mainly with the contribution of the minority shareholders holdings in its subsidiaries Tarjeta Naranja S.A. and Tarjetas Cuyanas S.A. As a result, the Bank's direct and indirect holdings are 77% of capital stock, while the remaining 23% is held by the shareholders who through the abovementioned contribution became minority shareholders of Tarjetas Regionales S.A. Banco Galicia Annual Report

12 The financial statements as of December 3, 202 of Tarjetas Regionales S.A. (a company in which the Bank has a % interest and Galicia (Cayman) Ltd. a %) used for consolidation purposes were in turn consolidated on a linebyline basis with the financial statements of Tarjeta Naranja S.A., Tarjetas Cuyanas S.A., Cobranzas Regionales S.A. and Procesadora Regional S.A. The percentages directly held in those companies' capital stock are as follows: Directly and indirectly held December 202 December 20 Tarjetas Cuyanas S.A. 77% 60% Tarjeta Naranja S.A. 77% 80% Procesadora Regional S.A. 78.5% 00% Cobranzas Regionales S.A. 77% 99% Tarjeta Mira S.A % The financial statements of Tarjeta Naranja S.A., as of December 3, 20, have been consolidated with the financial statements of Tarjeta Naranja Dominicana S.A., a company in which it holds 50% of voting stock. The shareholders of Tarjeta Naranja Dominicana S.A. on June 30, 202, decided to sell to Banco Multiple León S.A. its customer base and to begin the liquidation process of said company. Tarjeta Naranja S.A. has fully provisioned its investment in Tarjeta Naranja Dominicana S.A., therefore, its consolidation has been discontinued. 2) The significant items arising from intercompany transactions among the consolidated companies, not involving third parties, have been eliminated from the Balance Sheet, Income Statement and Statement of Cash Flows. 3) The portion of the controlled companies shareholders equity owned by third parties is disclosed in the Balance Sheet, under the Minority Interests caption. 4) The results corresponding to minority interests are disclosed in the Income Statement under Minority Interests Results. NOTE 3 MINORITY INTERESTS The breakdown of the complementary interests included in the Minority Interests caption is as follows: Company December 202 December 20 Galicia Valores S.A. Sociedad de Bolsa 0.0% 0.0% Tarjetas Regionales S.A % Tarjetas Cuyanas S.A % 40.00% Tarjeta Naranja S.A % 20.00% Tarjetas del Mar S.A. 0.06% 0.06% Cobranzas Regionales S.A %.00% Tarjeta Naranja Dominicana S.A % Tarjeta Mira S.A. 9.60% Compañía Financiera Argentina S.A. 3.00% 3.00% Cobranzas y Servicios S.A. 0.5% 0.5% Procesadora Regional S.A. 2.85% NOTE 4 GOVERNMENT AND CORPORATE SECURITIES In addition to the statements made in note to the individual financial statements, as of December 3, 202, and December 3, 20, controlled companies recorded holdings under Investments in quoted corporate securities. Said holdings have been valued at closing price on the above mentioned date, net of estimated selling costs, when applicable. NOTE 5 RESTRICTED ASSETS OF CONTROLLED COMPANIES In addition to what is stated in note 2 to the individual financial statements, as of December 3, 202, ability to dispose of the following assets of the controlled companies required to be consolidated was restricted as follows: A) GALICIA VALORES S.A. SOCIEDAD DE BOLSA: As of December 3, 202 and December 3, 20, this company holds three shares of Mercado de Valores de Buenos Aires S.A. which are allocated as guarantee for an insurance covering its transactions for $6,450. B) TARJETAS CUYANAS S.A.: As of December 3, 20 the company's ability to dispose of time deposits for $,040 was restricted. This amount was earmarked as guarantee for collection agreements. C) TARJETA NARANJA S.A.: The company has been subject to attachments related to lawsuits for $594 and has paid $350 as guarantees related to certain tax issues. These funds shall remain unavailable until such issues are resolved in a final manner. Tarjeta Naranja S.A. has guaranteed several loans received from financial institutions, by funds recorded under collection accounts. Said guarantee shall remain in force until full settlement of said loans, which nonamortized capital amounts to $73,700 as of December 3, 202. On the other hand, based on agreements subscribed with financial institutions, and as guarantees for credits received and for the issuance of negotiable obligations, the Company agreed not to dispose of its assets nor to create any levy on these, for an amount exceeding 35% of assets, in some cases, and 5% of their total shareholder's equity. It is worth mentioning that these restrictions do not apply to transactions carried out during the ordinary course of business. D) COMPAÑÍA FINANCIERA ARGENTINA S.A.: As of December 3, 202 and December 3, 20, as a consequence of certain litigations and claims related to the its business activities, attachments were levied on some of the Company's banking accounts, for $469, which were recorded under Miscellaneous Receivables and were fully provisioned. In addition, as of December 3, 202, in order to carry out transactions within the Mercado Abierto Electrónico (M.A.E.), the company recorded guarantees in favor of the Argentine Central Bank for 28 Banco Galicia Annual Report 202

13 $36,864 in securities issued by the Argentine Central Bank, corresponding to a face value of $37,3 recorded under Receivables Resulting from Financial Brokerage. As of the end of the previous fiscal year, said guarantees totaled $33,544. NOTE 6 ISSUANCE OF NEGOTIABLE OBLIGATIONS In addition to the provisions of note 7 to the individual financial statements, the consolidated companies have the following negotiable obligations outstanding: TARJETAS REGIONALES S.A.: As of the date of these financial statements, the companies controlled by Tarjetas Regionales S.A. have outstanding the following issuance programs and negotiable obligations series, issued in order to finance its operations: TARJETA NARANJA S.A. Date of Approval Authorized Amount Type of Negotiable Obligation Program's Term by the Shareholders' Meeting CNV Approval US$ 650,000 Ordinary, Non Convertible into Shares 5 years Resolution N 6,822 dated Within this global program, the Company has, at fiscal yearend, the following negotiable obligations outstanding: Placement Issue Authorized Book Value (*) Date Currency Class Number Amount Type Term Due Date Rate by the CNV on US$ Class XIII US$ 200,000 Ordinary, Non 72 months Fixed 9% NAR $984,000 $864, $ $ $ US$ US$ $ $ $ $ $ $ Class XIV Series I Class XIV Series II Class XV Class XVI Series I Class XVI Series II Class XVII Series I Class XVII Series II Class XVIII Series I Class XVIII Series II Class XIX Series I Class XIX Series II $20,000 $79,852 $65,60 US$ 2,62 US$ 3,947 $34,60 $65,390 $46,42 $02,35 $52,980 $2,345 Convertible into Shares (*) Corresponds to the principal amount outstanding as of the indicated dates. Ordinary, Non Convertible into Shares Ordinary, Non Convertible into Shares Ordinary, Non Convertible into Shares Ordinary, Non Convertible into Shares Ordinary, Non Convertible into Shares Ordinary, Non Convertible into Shares Ordinary, Non Convertible into Shares Ordinary, Non Convertible into Shares Ordinary, Non Convertible into Shares Ordinary, Non Convertible into Shares Ordinary, Non Convertible into Shares 270 days 2 months 270 days 365 days 73 days 365 days 548 days 270 days 549 days 270 days 547 days Fixed 3.5% NAR Variable BADLAR During December 202, the Board of Directors of Tarjeta Naranja S.A. approved the issuance of Negotiable Obligations Class XX, to be issued in two series for a nominal value of up to $250,000, which placement was carried out on February 5, % Variable BADLAR +3.75% Fixed 7.5% NAR Fixed 8.75% NAR Fixed 6.25% NAR Variable BADLAR +2.0% Fixed 7.7% NAR Variable BADLAR +4% Fixed 9% NAR Variable BADLAR+4.9% $26,623 $68,620 $34,60 $65,390 $46,42 $02,35 $52,980 $2,345 $20,000 $79,852 $65,60 $9,49 $60,252 Banco Galicia Annual Report

14 TARJETAS CUYANAS S.A. Date of Approval Approved by the National Authorized Amount Type of Negotiable Obligation Program's Term by the Shareholders' Meeting Securities Commission US$ 80,000 Ordinary, Non Convertible into Shares 5 years Ratified on Resolution N 5,627 dated US$ 20,000 Ordinary, Non Convertible into Shares 5 years Ratified on Resolution N 6,328 dated Within these programs, the Company has, at the end of the fiscal year, the following negotiable obligations outstanding: Placement Issue Authorized Book Value (*) Date Currency Class Number Amount Type Term Due Date Rate by the CNV on US$ $ $ $ US$ US$ $ $ $ $ $ Class XVIII Class IV Class V Series I Class V Series II Class VI Series I Class VI Series II Class VII Series II Class VIII Series I Class VIII Series II Class IX Series I Class IX Series II US$ 65,000 $50,000 $2,93 $77,305 US$ 8,883 US$ 7,84 $43,869 $50,725 $99,275 $33,375 $02,603 Ordinary, Non Convertible into Shares Ordinary, Non Convertible into Shares Ordinary, Non Convertible into Shares Ordinary, Non Convertible into Shares Ordinary, Non Convertible into Shares Ordinary, Non Convertible into Shares Ordinary, Non Convertible into Shares Ordinary, Non Convertible into Shares Ordinary, Non Convertible into Shares Ordinary, Non Convertible into Shares Ordinary, Non Convertible into Shares (*) Corresponds to the principal and interest amount outstanding as of the indicated dates Fixed 2% NAR Variable BADLAR During January 203, the Board of Directors of Tarjetas Cuyanas S.A. approved the issuance of Negotiable Obligations Class X, to be issued in two series for a nominal value of up to $200,000. Tarjeta Naranja S.A. and Tarjetas Cuyanas S.A. have carried out hedging transactions in relation to the principal payment of its negotiable obligations for a total of US$ 28,83, of which US$ 83,83 were carried out with the Bank. COMPAÑÍA FINANCIERA ARGENTINA S.A. As of the date of these financial statements the company has outstanding the following issuance programs and negotiable obligations series, issued in order to finance its operations: Date of Approval Approved by the National Authorized Amount Type of Negotiable Obligation Program's Term by the Shareholders' Meeting Securities Commission US$ 250,000 Ordinary, Non Convertible into Shares Resolution N 6,505 dated years 270 days 270 days 550 days 365 days 73 days 547 days 270 days 549 days 270 days 546 days +2.85% Fixed 4% NAR Variable BADLAR +4% Fixed 7.5% NAR Fixed 8.5% NAR Variable BADLAR +2.80% Fixed 7.75% NAR Variable BADLAR +3.75% Fixed 9.25% NAR Variable BADLAR +4.5% and $8,252 $36,347 $45,57 $52,307 $0,983 $33,788 $03,800 $0,05 $5,750 $3,066 $76,533 $8,9 $30, Banco Galicia Annual Report 202

15 Within this program, the Company has, at the end of the fiscal year, the following negotiable obligations outstanding: Placement Issue Authorized Book Value (*) Date Currency Class Number Amount Type Term Due Date Rate by the CNV on $ Class III $44,000 Ordinary, Non 2 months Variable BADLAR $44, $ $ $ $ $ $ $ Series II Class IV Series II Class V Series I Class V Series II Class VI Series I Class VI Series II Class VII Series I Class VII Series II $02,000 $86,068 $63,932 $8,444 $72,000 $49,444 $2,500 Convertible into Shares Ordinary, Non Convertible into Shares Ordinary, Non Convertible into Shares Ordinary, Non Convertible into Shares Ordinary, Non Convertible into Shares Ordinary, Non Convertible into Shares Ordinary, Non Convertible into Shares Ordinary, Non Convertible into Shares (*) Corresponds to the principal and interest amount outstanding as of the indicated dates. 8 months 9 months 8 months 270 days 2 months 9 months 8 months $05,974 On January 7, 203, Compañía Financiera Argentina S.A. placed two series of Negotiable Obligations Class VIII Series I for a nominal value of $ 42,200, with a 270day amortization period upon maturity which will accrue a nominal fixed annual rate of 9% payable on a quarterly basis. Series II for $ 57,800, with an 8month period, which capital shall be paid upon maturity and will accrue a floating BADLAR rate plus 4.4% payable on a quarterly basis % Variable BADLAR +4% Variable BADLAR +3.25% Variable BADLAR +4.25% Fixed 5.50% Variable BADLAR +2.30% Fixed 7.90% Variable BADLAR +3.75% $64,276 $83,39 $73,495 $49,64 $2,836 $06,782 $86,593 $64,77 NOTE 7 RESTRICTIONS IMPOSED ON THE DISTRIBUTION OF PROFITS In addition to the statement made in Note 3 to the individual financial statements, and in accordance with Section 70 of the Corporations Law, stock companies must set up a reserve of not less than 5% of the realized and liquid profits shown in the income statement for the fiscal year, until 20% of the corporate stock is reached. When this reserve falls below that percentage for any reason, no profits may be distributed until this minimum reserve is restored. The Ordinary and Extraordinary Shareholder s Meeting of Tarjeta Naranja S.A. held on March 6, 2006 decided to set the maximum limit for the distribution of dividends at 25% of the realized and liquid profits of each fiscal year, said restriction shall remain in force as long as the company's shareholder's equity is below $300,000. In the price supplement to Negotiable Obligations Class XIII, as well as in certain financial loan agreements, the Company committed itself not to distribute profits exceeding 50% of its net income and provided that some indebtedness ratios are not exceeded. NOTE 8 MINIMUM PRESUMED INCOME TAX In addition to what is stated in note, item to the individual financial statements, as of December 3, 202, the controlled companies record an asset of $4,85 for the Minimum Presumed Income Tax, while as of December 3, 20, this amount was $9,66. Banco Galicia Annual Report 202 3

16 NOTE 9 BREAKDOwN OF OTHER ITEMS December 3, Consolidated Balance Sheet Assets Receivables Resulting from Financial Brokerage s Not Included in the Debtor Classification Regulations Participation Certificates and Debt Securities in Financial Trusts without Quotation Receivables Included in the Debtor Classification Regulations Visa Argentina S.A. ATM NonCompensated Funds Accrued Commissions Receivable Advances for Purchase of Assets Allotted to Financial Leases Miscellaneous Receivables Sundry Debtors Guarantee Deposits Tax Prepayments Payments in Advance Liabilities Liabilities Resulting From Financial Brokerage Collections on Behalf of Third Parties and Liabilities Liabilities for Financing of Purchases Withholdings and Collections IDB Loan Line Programa Global de Crédito a la Micro, Pequeña y Mediana Empresa Our Accounts in Correspondent Banks FONTAR Credit Line for Financing Capital Goods Liabilities Subject to Minimum Cash Requirements Sundry Not Subject to Minimum Cash Requirements Accrued Commissions Payable Miscellaneous Liabilities Sundry Creditors Taxes Payable Salaries and Social Security Contributions Payable Memorandum Accounts Debit Control Securities Held in Custody Bills for Collection Guarantee Agent Activities Consolidated Income Statement Income from Services Fees Earned on Credit Cards Fees Earned on Life Insurance Policies Expenses for Services 202,808,060,488,395 39, , ,66 200,635 56,364 37, ,277 80, ,520 25,562 92,87 79,235 24,82 7,777,890 76,772 5,75, ,403 28,80 52,505 8,730 47, ,460 37,567 29,974,634, , ,365 44,829 9,920 3,089,864 6,640,504 6,527,907 6,837,536,083,97 2,979,39,892, , ,389 86,73 20,56,008,304,385 2, ,0 25,6 95,573 46,735 44,582 80, ,003 5, ,97 9,897 68,582 20,868 6,49,426,032,983 4,73, ,048 40,23 74,238 26,642 67, ,54 23,320 45,792,209, , , ,007 0,288 22,590,720,204,95 4,76,946 6,034, ,69 2,09,674,5,74 233,36 346,797 60, Banco Galicia Annual Report 202

17 NOTE 9 BREAKDOwN OF OTHER ITEMS (CONT.) December 3, Turnover Taxes Linked to Credit Cards Miscellaneous Income Income from Bank Premises and Equipment Sold Income from Miscellaneous Asset Transactions Rentals Adjustments and Interest on Miscellaneous Receivables Income for Lawsuits Income Tarjetas Regionales S.A. Miscellaneous Losses Adjustments on Interest for Miscellaneous Liabilities Claims Donations Turnover Taxes Income / (Loss) from Financial Leases Taken , ,236 65,993 8, ,447 2,028 52,60 2,776 46,00 59, ,89 4,83 5,847,205 28, , ,75 96,580 3,652,383,90,573 66,083 0,089 22,029 28,585 44, ,855,345 5, ,976 NOTE 0 TAX ISSUES In addition to the provisions of Note 22 item a) to the individual financial statements, the Argentine Revenue Service (A.F.I.P.), Provincial Tax Bureaus, and Municipal Offices are conducting several review processes with different degrees of progress, on controlled companies required to be consolidated. Said agencies have served notices and made claims regarding taxes against the subsidiaries of Tarjetas Regionales S.A. and Tarjetas Del Mar S.A. for which the corresponding administrative and legal measures are being undertaken. The original tax amount claimed for these issues, amounts to approximately $9,88. Based on the opinions of their tax advisors, the companies believe that the abovementioned claims are both legally and technically groundless and that taxes related to the claims have been correctly calculated in accordance with tax regulations in force and existing case law. However, since the final outcome of these measures cannot be foreseen, provisions have been set up to cover the related contingencies. Also, in the case of Compañía Financiera Argentina, the A.F.I.P. carried out inspections on fiscal years 998 and 999, and rejected certain uncollectible loans as uncollectable receivables deductible from income tax and minimum presumed income tax. The original tax amount claimed amounts to approximately $2,094. Due to the fact that there is no certainty as to the final resolution of this dispute, provisions were created to that effect. Banco Galicia Annual Report

18 BALANCE SHEET FOR THE FISCAL YEAR FROM JANUARY, 202 TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT Name of Certifying Auditor: Edgardo H. Sajón Independent Registered Public Accounting Firm: Price Waterhouse & Co. S.R.L. Favorable Report with Determined Valuation Qualifications for the Fiscal Year Ended (Code 002) December 3, Assets A. Cash and Due from Banks Cash Financial Institutions and Correspondents Argentine Central Bank Local Financial Institutions Foreign B. Government and Corporate Securities (Schedule A and Note Item.2.2.2) Holdings Recorded at Fair Market Value Government Securities Received in Connection with Reverse Repurchase Agreement Transactions with the Argentine Central Bank Holdings Recorded at Cost Plus Yield Securities Issued by the Argentine Central Bank C. Loans (Schedules B, C, D, N and Note 6) To the NonFinancial Public Sector To the Financial Sector Interbank Loans (Call Money Loans Granted) Financing to Local Financial Institutions Accrued Interest, Adjustments and Quotation Differences Receivable To the NonFinancial Private Sector and Residents Abroad Advances Promissory Notes Mortgage Loans Pledge Loans Personal Loans Credit Card Loans Accrued Interest, Adjustments and Quotation Differences Receivable (Unallocated Collections) (Documented Interest) Allowances (Schedule J) D. Receivables Resulting from Financial Brokerage (Schedules B, C, D, N, and Note Items.2.2.4,.2.2.5, and Note 6) Argentine Central Bank Amounts Receivable for Spot and Forward Sales to be Settled Securities Receivable Under Spot and Forward Purchases to be Settled Premiums from Bought Options Receivables not Included in the Debtor Classification Regulations (Note 0) Negotiable Obligations without Quotation Balances from Forward Transactions without Delivery of Underlying Asset to be Settled Receivables Included in the Debtor Classification Regulations (Note 0) Accrued Interest and Adjustments Receivable Included in the Debtor Classification Regulations Allowances (Schedule J) E. Receivables from Financial Leases (Schedules B, C, D, N, Note Item and Note 6) Receivables from Financial Leases Accrued Interest and Adjustments Receivable Allowances (Schedule J) F. Equity Investments (Schedule E, N, Note Item and Note 3) In Financial Institutions 202 7,957,258 2,409,58 5,548,00 5,463, ,388 3,96,586 64, ,892 2,332,724 3,974, ,476 84, ,227 2,249 32,456,656 3,0,698 0,690,365,58,832 30,668 4,90,845 0,06,309,859, , (200,705) (893,483) 3,837, ,256 83, ,005 3,059,50, ,06 3, , (59,678) 877, ,50 5,959 (2,385) 2,254,47 943, ,53,2 2,8,705 3,97,46 3,936, ,443 4,966,006 65,584 40,600 62,44 4,697,408 23,03,692, ,67 26, ,352,265 23,425,482 2,302,524 6,577, ,48 202,336 3,777,275 6,923,345 2,49, ,304 (,569) (65,626) (795,435) 4,59, ,378,375,22 626,263 22,347,399 60,79 27, ,63 2,839 (48,595) 60,33 605,236,604 (6,509),82, , Banco Galicia Annual Report 202

19 BALANCE SHEET (CONT.) FOR THE FISCAL YEAR FROM JANUARY, 202 TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT December 3, Negative Goodwill Allowances (Schedule J) G. Miscellaneous Receivables Receivables for Assets Sold (Schedule B, C, D, and Note 6) Minimum Presumed Income Tax Tax Credit (Note Item.2.2.4) (Note 0) Accrued Interest on and Adjustments to Receivables for Assets Sold (Note 6) Accrued Interest and Adjustments Receivable Allowances (Schedule J) H. Bank Premises and Equipment (Schedule F and Note Item.2.2.8) I. Miscellaneous Assets (Schedule F and Note Item and.2.2.9) J. Intangible Assets (Schedule G and Note Item.2.2.0) Organization and Development Expenses K. Unallocated Items Total Assets 202,584,75 (247,808) (25,822) 380, , (96,830),026,645 77, , ,869 6,423 52,556,64 20,27,637 (346,93) (9,600) 600,238 24,085 76, , (28,784) 909,043 58, ,64 574,64 5,795 43,324,590 Liabilities L. Deposits (Schedules H and I) NonFinancial Public Sector Financial Sector NonFinancial Private Sector and Residents Abroad Current Accounts Savings Accounts Time Deposits Investment Accounts Accrued Interest, Adjustments and Quotation Differences Payable M. Liabilities Resulting from Financial Brokerage Argentine Central Bank (Schedule I) Banks and International Entities (Schedule I) Unsubordinated Negotiable Obligations (Schedule I and Note 7) Amounts Payable for Spot and Forward Purchases to be Settled Securities to be Delivered Under Spot and Forward Sales to be Settled Premiums from Written Options Financing from Local Financial Institutions (Schedule I) Interbank Loans (Call Money Loans Received) Financing from Local Financial Institutions Accrued Interest Payable Balances from Forward Transactions without Delivery of Underlying Asset to be Settled (Schedule I and Note 0) Accrued Interest, Adjustments and Quotation Differences Payable (Schedule I) N. Miscellaneous Liabilities Directors' and Syndics' Fees (Note 0) Adjustments and Accrued Interest Payable 39,88,320,25,534 35,793 37,900,993 9,542,847 9,423,437 8,3,590 70, ,649 25,027 6,227,7 3,637 3, ,88,470, ,784 83, ,249 82,000 76, ,003 3,44,306 34, ,533 2,42 867, ,7,660,803,86 29,658 28,284,86 7,022,27 7,955,487 2,67, ,346 38,898 60,808 7,870,229 3,050 3,050,469,844,284, ,045,562, ,636 5,000 73, ,562 2,863,257 30,25 58,46 2, ,39 Banco Galicia Annual Report

20 BALANCE SHEET (CONT.) FOR THE FISCAL YEAR FROM JANUARY, 202 TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT December 3, O. Provisions (Schedule J) P. Subordinated Negotiable Obligations (Schedule I and Note 7) Q. Unallocated Items Total Liabilities Shareholders' Equity (As per Related Statement) Total Liabilities and Shareholders' Equity ,0,88,05 3,02 47,652,692 4,903,949 52,556, , ,076 2,288 39,72,755 3,602,835 43,324,590 Memorandum Accounts Debit Contingent Loans Obtained (Unused Balances) Guarantees Received not Included in the Debtor Classification Regulations Contingent Re. Contra Items Control Uncollectible Loans (Note 0) Control Re. Contra Items Derivatives Notional" Value of Put Options Bought (Schedule O) "Notional" Value of Forward Transactions without Delivery of Underlying Asset (Schedule O) Interest Rate Swaps (Schedule O) Derivatives Re. Contra Items Trust Accounts Trust Funds Credit Contingent Loans Granted Unused Balances Included in the Debtor Classification Regulations (Note 6) Guarantees Granted to the Argentine Central Bank Guarantees Granted Included in the Debtor Classification Regulations (Note 6) Guarantees Granted not Included in the Debtor Classification Regulations Included in the Debtor Classification Regulations (Note 6) not Included in the Debtor Classification Regulations Contingent Re. Contra Items Control Checks and Drafts to be Credited Control Re. Contra Items Derivatives "Notional" Value of Call Options Written (Schedule O) "Notional" Value of Put Options Written (Schedule O) "Notional" Value of Forward Transactions without Delivery of Underlying Asset (Schedule O) Derivatives Re. Contra Items Trust Accounts Trust Liabilities Re. Contra Items 60,708,676 5,544, ,030 9,877,320 28,866 5,402,437 32,79, ,432 30,979,264,62,600 7,252,470 8,560 3,674, ,955 3,042,07 5,92,257 5,92,257 60,708,676 5,544,653 3,857,287 2, , ,43 759,777 44,298 0,42,26 32,79,296,54,848 7,752 3,556,696 7,252,470 89,768 3,06 2,92,233 4,20,363 5,92,257 5,92,257 49,670,028,844, ,454 7,547,38 8,394 3,903,073 23,670, ,26 22,529, ,002 0,889,956 9,028 6,505, ,000 4,096,876 3,265,680 3,265,680 49,670,028,844,302 2,677,994 2,60 333, ,60 520,04 3,229 7,94,229 23,670, , ,00,088 0,889,956 9,470 68,5 4,09,255 6,793,080 3,265,680 3,265, Banco Galicia Annual Report 202

21 INCOME STATEMENT FOR THE FISCAL YEAR FROM JANUARY, 202 TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT December 3, A. Financial Income Interest on Cash and Due from Banks Interest on Loans Granted to the Financial Sector Interest on Advances Interest on Promissory Notes Interest on Mortgage Loans Interest on Pledge Loans Interest on Credit Card Loans Interest on Financial Leases Interest on Loans Net Income from Government and Corporate Securities Net Income from Options Interest on Receivables Resulting from Financial Brokerage CER Adjustment Quotation Differences on Gold and Foreign Currency B. Financial Expenses Interest on Savings Account Deposits Interest on Time Deposits Interest on Subordinated Obligations Interest Interest on Interbank Loans Received (Call Money Loans) Interest on Financing from Financial Institutions Net Loss from Options Interest on Liabilities Resulting from Financial Brokerage Contributions to the Deposit Insurance Fund (Note 5) Quotation Differences on Gold and Foreign Currency CER Adjustment Gross Financial Margin C. Loan Loss Provision D. Income from Services In Relation to Lending Transactions In Relation to Borrowing Transactions Commissions (Note 0) E. Expenses for Services Commissions (Note 0) G. Administrative Expenses Personnel Expenses Directors' and Syndics' Fees Fees Advertising and Publicity Taxes Depreciation of Premises and Equipment Amortization of Organization Expenses 202 6,267, , ,543,422,984 25,68 35,76,293,838 30,568,367, ,574,500 0, ,979 3,08,72 4,628 2,23,797 22,82 48,37 5,567 7,525 72,738 56,368 39, ,962 3,85, ,230 2,878, ,90 764,205 0,443,596,429,403,845 79, ,823 3,092,873,798,756 33,26 48,86 68,46 88,004 89,070 56, ,243, , , ,65 2,648 24,443 76,74 97,496,050, ,35 6, ,93 79,79,880,95 6,856,27,372 4,455 25, , ,546 44, ,367 2,362,99 493,978 2,28, , ,03 73,728,40,33,28,68 598,02 530,56 2,298,583,352,850 23,778 50,50 33,349 23,566 7,235 79,85 Banco Galicia Annual Report

22 INCOME STATEMENT (CONT.) FOR THE FISCAL YEAR FROM JANUARY, 202 TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT December 3, Operating Expenses Net Income / (Loss) from Financial Brokerage I. Miscellaneous Income Income from Equity Investments Default Interests Loans Recovered and Allowances Reversed CER Adjustment J. Miscellaneous Losses Default Interest and Charges in Favor of the Argentine Central Bank Loan Loss Provisions for Miscellaneous Receivables and Provisions (Note 0) Depreciation of and Losses on Miscellaneous Assets Goodwill Amortization Amortization of Differences Arising from Court Resolutions Net Income / (Loss) Before Income Tax L. Income Tax (Note Item.2.2.3) Net Income / (Loss) for the Fiscal Year ,764 20, ,772 88, ,228 29,877 79,405 7, , ,400 43,979,085 6,452,643,4 342,000,30, ,82 6, ,55 887, ,477 5,493 84,665 84, , ,804 24,003,756 0,700 6,933,432, ,700,07,273 STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE FISCAL YEAR FROM JANUARY, 202 TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT NonCapititalized Contributions Profit Reserves Share Irrev. Cont. Adjust. to Especial Unrealized Capital Issuance for Fut. Shareholders' Debt Valuation Retained Changes Stock Premiums Cap. Incr. Equity Legal Securities Differences Earnings Restated Opening Balances 2. SubTotal 3. Distribution of Retained Earnings Approved by the Shareholders Meeting Held on : Legal Reserve Cash Dividends Discretionary Reserve for Future Distribution of Profits 4. Net Income / (Loss) for the Fiscal Year 562, , , , , , ,98 382,98 22,455,458,473,679,928,679,928 (22,455) (,458,473),30,4 3,602,835 3,602,835,30,4 2,595,656 2,595,656 (00,094),07, Balances at Fiscal Year End 562, , , ,436,458,473,30,4 4,903,949 3,602, Banco Galicia Annual Report 202

23 STATEMENT OF CASH FLOwS FOR THE FISCAL YEAR FROM JANUARY, 202 TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT December 3, Changes in Cash and Cash Equivalents (Note 2) Cash at Beginning of Fiscal Year Cash at Fiscal Year End Net Increase / (Decrease) in Cash (in Constant Currency) Causes of Changes in Cash (in Constant Currency) Operating Activities Net Collections / (Payments) Related to: Government and Corporate Securities Loans To the Financial Sector To the NonFinancial Public Sector To the NonFinancial Private Sector and Residents Abroad Receivables Resulting from Financial Brokerage Receivables from Financial Leases Deposits To the Financial Sector To the NonFinancial Public Sector To the NonFinancial Private Sector and Residents Abroad Liabilities Resulting from Financial Brokerage Financing from the Financial Sector Interbank Loans (Call Money Loans Received) s (Except those Liabilities Included in Financial Activities) Collections Related to Income from Services Payments Related to Expenses for Services Administrative Expenses Paid Payment Related to Organization and Development Expenses Net Collections / (Payments) Related to Default Interest Differences Deriving from Court Resolutions Paid Collection Related to Dividends from Companies Collections / (Payments) Related to Miscellaneous Profits and Losses Net Collections / (Payments) Related to Operating Activities To Receivables and Miscellaneous Liabilities To Net Operating Activities Payment of the Income Tax / Minimum Presumed Income Tax Net Cash Flow Provided by / (Used in) Operating Activities Investment Activities Net Collections / (Payments) Related to Bank Premises and Equipment Net Collections / (Payments) Related to Miscellaneous Assets Payments Related to Equity Investments Acquired Collections Related to Equity Investments Sold Net Cash Flow Provided by / (Used in) Investment Activities Financing Activities Net Collections / (Payments) Related to: Unsubordinated Negotiable Obligations Argentine Central Bank 202 9,400,008 0,487,77,087,763,506,202 (2,73) 930 (3,826,342) (68,862) (42,699) 6,35 (552,282) 6,973,592 6,433 (29,999) 2,878,987 (,379,630) (2,844,983) (448,779) 29,655 (6,452) 260,390 43,949 (244,005) (47,330) (25,00),922,637 (75,593) (44,807) (0,379) 3,876 (26,903) (20,44) ,588,098 9,400,008 2,8,90 (86,00) (85,53) 2,20 (3,683,699) (358,23) (66,346) 9, ,65 5,600,73 4,02 556,628 2,28,253 (,077,647) (2,45,606) (288,830) 4,643 (6,933) 84,492 56,948 (50,325) 20,95 (22,644),345,095 (22,273) (93,37) (50,082),757 00,000 (63,969),46, Banco Galicia Annual Report

24 STATEMENT OF CASH FLOwS (CONT.) FOR THE FISCAL YEAR FROM JANUARY, 202 TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT December 3, Banks and International Entities Subordinated Obligations Loans from Local Financial Institutions Payment of Dividends Net Cash Flow Provided by / (Used in) Financing Activities Financial Income on Cash and Cash Equivalents (Including Interest and the Monetary Loss) Net Increase / (Decrease) in Cash 202 (888,556) (66,40) 78,332 (996,46) 378,490,087, ,834 (463,493) 49,605 (00,094),390, ,930 2,8,90 SCHEDULE A GOVERNMENT AND CORPORATE SECURITIES FOR THE FISCAL YEAR FROM JANUARY, 202 TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT Market Value Caja de Valores or Pos. without Name Code Current Value Options Options Final Pos. Government Securities Holdings of Government Securities Recorded at Fair Market Value Argentine In Pesos 64,970 64,970 60,37 06,84 06,84 53,26 6,274 6,274 60,37 6,274 6,274 60,37 Pesodenominated Argentine Bonds Badlar Privada bp Due in 204 Secured Bonds Due in 208 TVPP Negotiable Securities Due in 2035 Discount Bonds Due in 2033 Pesodenominated Argentine Bonds Badlar Privada bp Due in 205 Consolidation Bonds in Local Currency Due in 2024 Consolidation Bonds in Local Currency Series 7 (PR4) Due in 206 Pesodenominated Argentine Bonds 0.50% BONAR V Provisional Consolidation Bonds Series PRE 2 Due in 206 In Foreign Currency National Government Bonds in US Dollars Libor Due in 202 US Dollardenominated Argentine Bonds 7% Due in 203 US Dollardenominated National Government Bonds Libor Due in 203 US Dollardenominated Argentine Bonds 7% Due in 207 US Dollardenominated Argentine Bonds 7% Due in 207 Allocated to Repurchase Agreement Transactions with the Argentine Central Bank US Dollardenominated National Government Bonds 7% Due in 205 US Dollardenominated, GDPLinked Negotiable Securities Argentine Law Government Securities Recorded at Cost Plus Yield Argentine In Pesos Pesodenominated Argentine Bonds Badlar Privada bp Due in 205 Debt Securities Province of Entre Ríos Class A Due in Debt Securities Province of Entre Rios Clase B Due in Debt Securities Province of Entre Ríos Class C Due in.28.3 Treasury Bills Province of Chubut Class 2 Series Due in Treasury Bills Province of Chubut Class 2 Series 2 Due in In Foreign Currency ,045 7,039 6,22 5,289 6,278 3,065 42, ,628,930 4,833, , , , , ,045 7,02 6,63 5,42 6,252 3, ,230 8,462 9, ,050 22,887,536 52, ,600,060 62,44 62,44 62,44 62,44 42, ,628,930,37, , , ,928 60,045 7,039 6,22 5,289 6,278 3, ,34 42, ,628,930,37, , , ,928 60,045 7,039 6,22 5,289 6,278 3, ,34 40 Banco Galicia Annual Report 202

25 SCHEDULE A GOVERNMENT AND CORPORATE SECURITIES (CONT.) FOR THE FISCAL YEAR FROM JANUARY, 202 TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT Market Value Caja de Valores or Pos. without Name Code Current Value Options Options Final Pos. Treasury Bills Province of Neuquen Due in Treasury Bills Province of Buenos Aires Due in.2.3 Treasury Bills Province of Córdoba Due in.4.3 Securities Issued by the Argentine Central Bank Argentine Central Bank Bills Recorded at Fair Market Value Argentine Central Bank Bills Due Argentine Central Bank Bills Due Argentine Central Bank Bills Due Argentine Central Bank Bills Due Argentine Central Bank Bills Due Argentine Central Bank Bills For Repurchase Agreement Transactions Argentine Central Bank Bills Due Argentine Central Bank Bills Due Argentine Central Bank Bills Recorded at Cost Plus Yield Argentine Central Bank Bills Due Argentine Central Bank Bills Due Argentine Central Bank Bills Due Argentine Central Bank Bills Due Argentine Central Bank Bills Due Argentine Central Bank Bills Due Argentine Central Bank Bills Due Argentine Central Bank Bills Due Argentine Central Bank Bills Due Argentine Central Bank Bills Due Argentine Central Bank Bills Due Argentine Central Bank Bills Due Argentine Central Bank Bills Due Argentine Central Bank Bills Due Argentine Central Bank Bills Due 0..2 Argentine Central Bank Bills Due Argentine Central Bank Bills Due Argentine Central Bank Bills Due Argentine Central Bank Bills Due Argentine Central Bank Bills Due Argentine Central Bank Bills Due Argentine Central Bank Bills Due Argentine Central Bank Notes Recorded at Fair Market Value Argentine Central Bank Notes Due Argentine Central Bank Notes Due Argentine Central Bank Notes Due Argentine Central Bank Notes Due Argentine Central Bank Notes Due Argentine Central Bank Notes Due Argentine Central Bank Notes Due Argentine Central Bank Notes Due ,827 50,054 77,77 67,583 4,937 4,443 0,320 8,98 6,674 22,956 23, ,595 4,888 78,458 86, ,629 76,748 49,620 76,862 2,332,724,058,982 8, ,925 63,50 33,625,0,633 67,630 4,855 4,453 0,297 8,959 6,669 22,890 23, ,699 4,888 78,488 86, ,503 25,494 25,494 4,697,408 0,33 0,33,344,245,793,332, ,754 4,55 8,447 25,936 33,9,398 9,879 49, ,375 2,30,756 30, ,39 7,6 256,36 580, , ,640 77,324 50,054 76,963 2,954,290,7,56 8, ,925 63,50 390,204,664, ,925 4,937 4, ,568 8,98 6,674 22,956 23, ,647 4,888 78,458 26, ,629 25,494 25,494 77,324 50,054 76,963 2,954,290,7,56 8, ,925 63,50 390,204,664, ,925 4,937 4, ,568 8,98 6,674 22,956 23, ,647 4,888 78,458 26, ,629 25,494 25,494 Banco Galicia Annual Report 202 4

26 SCHEDULE A GOVERNMENT AND CORPORATE SECURITIES (CONT.) FOR THE FISCAL YEAR FROM JANUARY, 202 TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT Market Value Caja de Valores or Pos. without Name Code Current Value Options Options Final Pos. Argentine Central Bank Notes Due Argentine Central Bank Notes For Repurchase Agreement Transactions Argentine Central Bank Notes Due Argentine Central Bank Notes Due Argentine Central Bank Notes Due Argentine Central Bank Notes Due Argentine Central Bank Notes Recorded at Cost Plus Yield Argentine Central Bank Notes Due Argentine Central Bank Notes Due Argentine Central Bank Notes Due Argentine Central Bank Notes Due Argentine Central Bank Notes Due Argentine Central Bank Notes Due Argentine Central Bank Notes Due Argentine Central Bank Notes Due Argentine Central Bank Notes Due Argentine Central Bank Notes Due Argentine Central Bank Notes Due Argentine Central Bank Notes Due Argentine Central Bank Notes Due Total Government Securities (Note Item.2.2.2) ,867 0,58 4,04 46,65 3,99 0,556 4,40 3,96,586,58 66,494 0,257 3,365 9,543 5, ,846 20,306 06,377 4,582 2,60,620 20,367 4,849 24,576 2,2 78,897 4,966,006 46,462 3,867 0,58 4,04 3,858,833 46,462 3,867 0,58 4,04 3,858,833 SCHEDULE B CLASSIFICATION OF TOTAL CREDIT ACCORDING TO STATUS AND COLLATERAL RECEIVED FOR THE FISCAL YEAR FROM JANUARY, 202 TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT December 3, Commercial Portfolio Normal With A Preferred Collateral and Counterguarantees With B Preferred Collateral and Counterguarantees Without Preferred Collateral or Counterguarantees With Special Followup Under Observation With A Preferred Collateral and Counterguarantees With B Preferred Collateral and Counterguarantees Without Preferred Collateral or Counterguarantees With Problems With B Preferred Collateral and Counterguarantees Without Preferred Collateral or Counterguarantees High Risk of Insolvency With B Preferred Collateral and Counterguarantees Without Preferred Collateral or Counterguarantees Uncollectible With B Preferred Collateral and Counterguarantees Without Preferred Collateral or Counterguarantees Total Commercial Portfolio ,620, ,066,385,03 9,003,290 96,26,046 85,70 45, ,582 23,493 2,294 2,99 2,328, ,788, 20 5,50, ,286,088,953 4,24,744 90,0,22 4,482 84,497 0,745 2,302 8,443 40,039 4,083 35,956 2,986,946,040 5,654, Banco Galicia Annual Report 202

27 SCHEDULE B CLASSIFICATION OF TOTAL CREDIT ACCORDING TO STATUS AND COLLATERAL RECEIVED (CONT.) FOR THE FISCAL YEAR FROM JANUARY, 202 TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT December 3, Consumer and Housing Portfolio Normal Situation With A Preferred Collateral and Counterguarantees With B Preferred Collateral and Counterguarantees Without Preferred Collateral or Counterguarantees Low Risk With A Preferred Collateral and Counterguarantees With B Preferred Collateral and Counterguarantees Without Preferred Collateral or Counterguarantees Medium Risk With B Preferred Collateral and Counterguarantees Without Preferred Collateral or Counterguarantees High Risk With B Preferred Collateral and Counterguarantees Without Preferred Collateral or Counterguarantees Uncollectible With B Preferred Collateral and Counterguarantees Without Preferred Collateral or Counterguarantees Uncollectible Due to Technical Reasons With B Preferred Collateral and Counterguarantees Without Preferred Collateral or Counterguarantees Total Consumer and Housing Portfolio General Total (Note 6) 202 8,75,924 4,038 85,062 7,356, , , ,870 24,567 3, ,90 236,465 3,79 233,286 66,72 2,56 63, ,22,497 39,90, ,387,949 3, ,206,762,32 22,356 8,53 22,843 5,525 4,2 47,43 48,482,800 46,682 57,573 3,325 54, ,967,056 28,62,90 SCHEDULE C CONCENTRATION OF CREDIT FOR THE FISCAL YEAR FROM JANUARY, 202 TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT Total Credits Number of Customers Debt Balance % of Total Portfolio Amount % of Total Portfolio 0 Largest Customers 50 Following Largest Customers 00 Following Largest Customers Rest of Customers Total (Note 6) 2,748,944 3,708,589 3,305,283 30,47,792 39,90, ,87,88 2,705,59 2,423,623 2,674,878 28,62, SCHEDULE D BREAKDOwN OF TOTAL CREDIT ACCORDING TO MATURITY DATE FOR THE FISCAL YEAR FROM JANUARY, 202 TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT Remaining Term to Maturity More than Description Past Due Portfolio Month 3 Months 6 Months 2 Months 24 Months 24 Months Total NonFinancial Public Sector Financial Sector NonFinancial Private Sector and , ,64 90,457 66,245 0,595 29, ,359 Residents Abroad Total (Note 6) 456, ,924 22,208,34 22,672,339 3,860,402 3,905,684 3,886,436 3,976,893 2,65,027 2,78,272 2,865,54 2,876,09 3,22,228 3,24,387 39,04,665 39,90,608 Banco Galicia Annual Report

28 SCHEDULE E BREAKDOwN OF EQUITY INVESTMENTS FOR THE FISCAL YEAR FROM JANUARY, 202 TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT Shares / Units Held Information on the Issuing Companies Data of Latest Publ. Fin. Statements Net Income/ Face Votes Balances Balances Principal Fiscal Year/ Share (Loss) for Value per as of as of Line Per. Closing Capital holders the Fiscal Name Class per Unit Share Number of Business Date Stock Equity Year/Period In Financial Institutions, Complementary and Authorized Activities (Note Item a) Argentine Galicia Valores S.A. Soc. de Bolsa Ord. B. E. Galicia Administradora de Fondos S.A. Sociedad Gerente de Fondos Comunes de Inversión MF Adm. Tarjetas Regionales S.A. Ord. A Tarjetas Regionales S.A. Ord. B Compañia Financiera Argentina S.A. Ord. Banelco S.A. Ord. Non End. Cobranzas y Servicios S.A. Ord. Procesadora Regional S.A. Ord. Tarjetas del Mar S.A. Ord. B. E. Foreign Banco Galicia Uruguay S.A. (in Liq.) Ord. Sh. Galicia (Cayman) Ltd. Shares Subtotal Argentine Mercado Abierto Electrónico S.A. Ord. Visa Argentina S.A. Ord. Non End. Interbanking S.A. Ord. Non End. Compensadora Electrónica S.A. Ord. Non End. Seguro de Depósitos S.A. Trust Part. Foreign Banco Latinoamericano de Exportaciones S.A. Ord. B Subtotal Total Financial Institutions and Complementary and Authorized Activities In Companies (Note Item b) Argentine Alfer S.A. (in Liq.) Ord. Galicia Warrants S.A. Ord. B. E. Electrigal S.A. Ord. Non End. A.E.C. S.A. Ord. B. E. A Argencontrol S.A. Ord. A Aguas Cordobesas S.A. Ord. E Net Investment S.A. Ord. B. E.,806,886,44, ,996 9,000 9,769 7,555 8,79 4,95 Stock Brok MF Adm , ,987 8,88,854 2, ,460,77 334,325,974,02,967 80,680 Fin. Op ,077,774,940, ,54 540,835,625 70, ,82 Fin. Brok , ,609 23,342 3,862,468 45,942 8,230 4,06 8,097 8,283 E.F.T Services , ,06 23,305 3,399 2,700 76, Data Process ,527 2, ,000 3,72, ,278 9,508,588 33, ,230 55, ,560 2,932 38,060 50, ,353 Cred. Card Fin. Brok Inv. Ord. Sh ,880 58,6 95,930 34,274 55, ,560,894 (2,272) 46,385 2,99,6,760,052, ,64,502 49,556 93,47 05,433 37,862 5, , ,438 2,438 8,53 4, , ,33 2,33 6,822 Sec. MKT Cred. Card E.F.T Clearing Trust Adm Fin. Brok ,000,346,564 2,97,376,746 6,44 23,208 84,88 2,605 7,640 3,733, ,876 67, ,003 42,345 2,207,269,766, ,289 25,000 2,396,875 0,696,384 40,362 3,250,000,500 72, ,204 5,455 26, ,9 8 65, ,79 5,455 26, ,9 9 Holding MKT. Dep Services Services Agent Services Investment ,625,243 37,84 200,000,540 30, (5) 20,433 42,947 2,977,83 73, (200) 7,876,272 (87,023) 29 3,086 (2) 44 Banco Galicia Annual Report 202

29 SCHEDULE E BREAKDOwN OF EQUITY INVESTMENTS (CONT) FOR THE FISCAL YEAR FROM JANUARY, 202 TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT Shares / Units Held Information on the Issuing Companies Data of Latest Publ. Fin. Statements Net Income/ Face Votes Balances Balances Principal Fiscal Year/ Share (Loss) for Value per as of as of Line Per. Closing Capital holders the Fiscal Name Class per Unit Share Number of Business Date Stock Equity Year/Period Sudamericana Holding S.A. Ord. Non End. 23,206 23,460 6,492 Investment ,2 66,33 Empresa de Transporte de Energía Eléctrica por Distribución Troncal de Cuyo S.A. (Distrocuyo S.A.) Ord. C 2,264,463 3,955 3,955 Tr. In. Elect ,952 83,900 2,99 Garbin S.A. Pref. B. E. 993, Construction ,43 37,969 4,386 Foreign S.W.I.F.T. S.C. Subtotal Total in Companies Shares ,024 73, ,562 65,562 Communic ,38,89,96 7,50 Total Equity Investments 2,280,293,832,436 SCHEDULE F BANK PREMISES AND EQUIPMENT AND MISCELLANEOUS ASSETS FOR THE FISCAL YEAR FROM JANUARY, 202 TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT Deprec. for the Fiscal Year Residual Value Losses Due to Assigned Residual Residual at Beginning Impairment Useful Value as of Value as of Description of Fiscal Year Additions Transfers Withdrawals of Value Life (Years) Amount Bank Premises and Equipment (Note Item.2.2.8) Real Estate Furniture and Fittings Machinery and Equipment Vehicles Miscellaneous Furniture Acquired Under Financial Leases Total 735,59 63,760 98,346 5, , ,043 62,65 24,545 88,329 2, ,498 8,635 8,420 3,42 30, , ,942 4,687 43,948,775 39,579 89, ,275 8,955 55,894 5, ,326,026, ,59 63,760 98,346 5, , ,043 Miscellaneous Assets (Note Item.2.2.8) Construction in Progress Advances for Purchase of Assets Works of Art Leased Assets Assets Taken as Guarantee for Loans Stationery and Office Supplies 8,94 5,634,476 8,885 0,530 5,203 50,553 3, ,334 (8,635) (2,84),07, , ,725 3,965,504 8,563 0,068 5,342 8,94 5,634,476 8,885 0,530 5,203 Miscellaneous Assets (Note Item.2.2.9) 78,325 2,877 22, ,308 78,325 Total 58,967 05,02 (30,476) 55, ,475 58,967 Banco Galicia Annual Report

30 SCHEDULE G INTANGIBLE ASSETS FOR THE FISCAL YEAR FROM JANUARY, 202 TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT Amort. for the fiscal year Residual Value Assigned Residual Residual at Beginning of Useful Life Value as Value as Description Fiscal Year Additions Transfers Withdrawals (Years) Amount Organization and Development Expenses (Note Item.2.2.0) Total 574,64 574,64 466, ,729,498, ,003 73, , , ,64 574,64 SCHEDULE H CONCENTRATION OF DEPOSITS FOR THE FISCAL YEAR FROM JANUARY, 202 TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT Number of Customers Debt Balance % of Total Portfolio Debt Balance % of Total Portfolio 0 Largest Customers 50 Following Largest Customers 00 Following Largest Customers Rest of Customers Total 3,937,672 4,543,427 2,490,95 28,26,270 39,88, ,295,553 3,05,634,542,793 22,227,680 30,7, SCHEDULE I BREAKDOwN OF DEPOSITS, OTHER LIABILITIES RESULTING FROM FINANCIAL BROKERAGE AND SUBORDINATED NEGOTIABLE OBLIGATIONS ACCORDING TO THEIR MATURITY DATES FOR THE FISCAL YEAR FROM JANUARY, 202 TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT Remaining Term to Maturity Description Month 3 Months 6 Months 2 Months 24 Months More than 24 Months Total Deposits 33,343,058 () 4,547,89 90, ,98 26,082 3,373 39,88,320 Liabilities Resulting from Financial Brokerage Argentine Central Bank Banks and International Entities Unsubordinated Negotiable Obligations Loans from Domestic Financial Institutions Total Subordinated Negotiable Obligations Total () Includes: Current Accounts 9,959,24 Savings Accounts 9,426,457 Time Deposits 3,543,455 Deposits 44,022 3,637 32,00 33,649 83,422 3,389,585 3,642,294 62,003 37,047,355 62,450 6,674 4,275 73,399 4,620,588 99,96 9,706 3,994 3,66,05,36 56,2 30,952 8,54 95, ,45 05,893 0,538 3,45 29,576 55,658 44,08,464,207 7,957 22,659,648,93,26,02 2,778,36 3, ,489,497,856 59,249 3,44,82 5,703,043,88,05 46,079, Banco Galicia Annual Report 202

31 SCHEDULE J CHANGE IN ALLOwANCES AND PROVISIONS FOR THE FISCAL YEAR FROM JANUARY, 202 TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT Balances Decreases in Constant Currency Monetary at Beginning Increases in Income (Loss) of Fiscal Year Constant Resulting from Balance as of Balance as of Breakdown Restated Currency Reversals Charge Offs Allowances Allowances Loans For Uncollectibility Risk Receivables Resulting from Financial Brokerage For Uncollectibility Risk and Impairment of Value Receivables from Financial Leases For Uncollectibility Risk Equity Investments For Impairment of Value Risk Miscellaneous Receivables For Uncollectibility Risk Total Provisions For Severance Payments For Contingent Commitments For Contingencies Differences Due to Dollarization of Judicial Deposits Total 795,435 48,595 6,509 9,600 28, ,923 3,75 2,62 54,753,996 62,086 Purposes for which they were set up: Allowances. Loans, other receivables resulting from financial brokerage, receivables from financial leases and miscellaneous receivables. For uncollectibility risk (see Note item.2.2.2). Calculated according to the assessment of debtors performance, economic and financial condition, and the guarantees securing their related transactions, as established by regulations in force. receivables resulting from financial brokerage and equity investments. For impairment of value risk. Set up according to the characteristics and market value at fiscal year end for each of the assets subject to possible adjustments. Provisions. For severance payments. Updated amount estimated payable under labor lawsuits brought against the Bank. (See Note item.2.2.6). For contingent commitments (see Note item.2.2.2). Amount corresponding to the uncollectibility risk stemming from the assessment of the degree of compliance of the beneficiaries of guarantees, endorsements and other contingent commitments in favor of third parties, their economic and financial condition, and the counterguarantees that support these transactions. For other contingencies. Updated estimated amounts payable under commercial lawsuits, tax claims and other potential contingencies (see note.2.2.7). Differences due to dollarization of judicial deposits. Amount related to judicial deposits that were subject to pesification. 592,039,083 5,876 7,705 69,05 685,808 2,269 42, ,374,483 32, ,243 3, , , ,8 25,627 28,62 893,483 59,678 2,385 25,822 96,830,088,98 5,027 68,646 2,338 76,0 795,435 48,595 6,509 9,600 28, ,923 3,75 2,62 54,753,996 62,086 SCHEDULE K COMPOSITION OF CAPITAL STOCK FOR THE FISCAL YEAR FROM JANUARY, 202 TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT Shares Capital Stock () Pending Votes Issued Issuance or Class Number per Share Outstanding Treasury Stock Distribution Allotted Paid in Unpaid Ordinary Shares Class A Class B Total as of Total as of ,326, ,326,65 562,326, , , , , , ,327 () Stated at face value. Restatement has been included in ADJUSTMENTS TO SHAREHOLDERS' EQUITY. Banco Galicia Annual Report

32 SCHEDULE L BALANCES IN FOREIGN CURRENCY FOR THE FISCAL YEAR FROM JANUARY, 202 TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT Head Office and Branches Branches Pound French Swiss Captions in Argentina Abroad Euro US Dolar Mark Ster. Franc Franc Yen Assets Cash and Due from Banks 3,526,25 Government and Corporate Securities 208,063 Loans 2,690,003 Receivables Resulting from Financial Brokerage 567,290 Receivables from Financial Leases 32,954 Equity Investments 394,736 Miscellaneous Receivables 70,87 Unallocated Items 32 Total 7,490,074 Liabilities Deposits 3,27,93 Liabilities Resulting from Financial Brokerage 2,825,289 Miscellaneous Liabilities 9,872 Subordinated Negotiable Obligations,88,05 Unallocated Items 46 Total 7,50,55 Memorandum Accounts Debit (Except for Contra Items) Contingent Accounts,25,082 Control Accounts 9,706,40 Derivatives 8,560 Trust Accounts 2 Total,038,803 Credit (Except for Contra Items) Contingent Accounts,79,98 Control Accounts 7,752 Derivatives 89,768 Total,277,438 3,526,25 208,063 2,690, ,290 32, ,736 70, ,490,074 3,27,93 2,825,289 9,872,88, ,50,55,25,082 9,706,40 8,560 2,038,803,79,98 7,752 89,768,277,438 49,335, ,588 37, ,802 34,563 34, , ,043 3,469,3 208,063 2,688, ,850 32, ,668 70, ,429,067 3,27,93 2,786,587 9,870,88, ,,8,25,082 9,666,098 8, ,998,76 886,343 7,752 89, ,863 3, , ,958,958 46,74, , , ,038 3, ,679,589 52,923 4,35,59 523,435 36,48 320,25 26, ,954,542 4,52,206 4,37,967 5, , ,896,676 2,075,606 8,323,650 9, ,408, , , , Banco Galicia Annual Report 202

33 SCHEDULE N FINANCIAL ASSISTANCE TO RELATED PARTIES FOR THE FISCAL YEAR FROM JANUARY, 202 TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT Uncollectible Potencial Risk/ High Risk of Due to Inadequ. With Problems/ Insolvency / Diff. Unco Technical Condition Normal Perf. Deficient Perf. Collection llectible Reasons Total Description Not Yet Due Past Due Not Yet Due Past Due Loans Advances Without Preferred Collateral or Counterguarantees Mortgage and Pledge Loans With B Preferred Collateral and Counterguarantees Without Preferred Collateral or Counterguarantees Personal Loans Without Preferred Collateral or Counterguarantees With A Preferred Collateral and Counterguarantees With B Preferred Collateral and Counterguarantees Without Preferred Collateral or Counterguarantees 2. Receivables Resulting from Financial Brokerage 3. Receivables from Financial Leases and s 4. Contingent Liabilities and Derivatives 447,340 39,335 39,335 8,606 8, ,974 47, ,567 67,437 3, , ,340 39,335 39,335 8,606 8, ,974 47, ,567 67,437 3, , ,33 43,440 43,440,34, ,06 20, ,354 4,395 8, , Equity Investments and Corporate Securities,525,499,525,499,20,94 Total Total Allowances (*) 2,405,75 6,74 2,405,75 6,74,908,54 5,098 (*) Includes the allowances on the performing portfolio. (Comm. "A" 226 and supplementary ones). Banco Galicia Annual Report

34 SCHEDULE O DERIVATIVE FINANCIAL INSTRUMENTS AND REPURCHASE AGREEMENT TRANSACTIONS FOR THE FISCAL YEAR FROM JANUARY, 202 TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT Agreed Residual Average Purpose of Trading Average Average Weighted Transactions Underlying Kind of Environment or Weighted Weighted Term for Diff. Item Made Assets Settlement Counterpart Term (*) Term (*) Settlement (**) Amount Foreign Currencies Forwards OCT Purchases Brokerage Own Account Foreign Currency Daily Difference MAE 3 2 2,97,988 OCT Sales Brokerage Own Account Foreign Currency Daily Difference MAE 4 83,375 ROFEX Purchases Brokerage Own Account Foreign Currency Daily Difference ROFEX ,32 ROFEX Sales Brokerage Own Account Foreign Currency Daily Difference ROFEX 3 2,462,75 Forwards Clients Forwards Purchases Brokerage Own Account Foreign Currency Upon Due Date of Differences OTC Domestic Residents Non Financial Sector ,728 Forwards Sales Brokerage Own Account Foreign Currency Upon Due Date of Differences OTC Domestic Residents Non Financial Sector 5 2 4,273,07 Interest Rate Forwards OCT Purchases Brokerage Own Account Daily Difference MAE 6 20,000 OCT Sales Brokerage Own Account Daily Difference MAE ,000 Repurchase Agreement Transactions Forward Purchases Brokerage National With Delivery of MAE ,36 Own Account Government the Underlying Securities Asset Swaps Fixed for Variable Interest Rate Swaps Brokerage Own Account Variable for Fixed Interest Rate Swaps Brokerage Own Account Swaps with Customers Variable for Fixed Interest Rate Swaps Brokerage Own Account Fixed for Fixed Interest Rate Swaps Brokerage Own Account Call Options Gold Call Options Bought Gold Call Options Written Put Options Put Option Written Boden 203 Coupon Coverage Coverage Thirdparty Brokerage (*) Expressed in months. 0 to 5 days = 0 ; 6 to 30 days =. (**) Expressed in days. National Government Securities Daily Difference Daily Difference MAE MAE OTC Domestic Residents Financial Sector OTC Domestic Residents Financial Sector ROFEX ROFEX OTC Domestic Residents Non Financial Sector ,000 46,000 0,000 72,955 8,560 89,768 3,06 50 Banco Galicia Annual Report 202

35 PROFIT DISTRIBUTION PROJECT FOR THE FISCAL YEAR FROM JANUARY, 202 TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT Retained Earnings / Losses To Legal Reserve (20% of,30,7,604.5 Pesos) Subtotal Less: Adjustments (Items 2. of Distribution of Earnings ) Subtotal 2 Distributable Balance () To Discretionary Reserve for Future Distribution of Profits To Undistributed Earnings () Based on the provisions mentioned in Note 3, distribution of profits is limited to establishing reserves. Should said amount be approved by the Shareholders Meeting, the discretionary reserve for future distribution of profits would amount to $2,499,363,30,4 260,224,040,890,040,890,040,890,040,890 Banco Galicia Annual Report 202 5

36 NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR FROM JANUARY, 202 TO DECEMBER 3, 202, PRESENTED IN COMPARATIVE FORMAT NOTE BASIS OF PRESENTATION OF THE FINANCIAL STATEMENTS. DISCLOSURE CRITERIA. The financial statements, which stem from accounting records, are presented in line with Argentine Central Bank provisions regarding financial reporting requirements for the publication of quarterly/annual financial statements, and with the guidelines of General Resolution Nº 368/0 of the C.N.V. This resolution provides that, in all cases, the consolidated financial statements must precede the individual financial statements; therefore, these financial statements have been presented in accordance with this guideline. These financial statements have been adjusted for inflation as mentioned in note item ACCOUNTING STANDARDS USED.2. UNIT OF MEASUREMENT. The financial statements reflect the effects of the changes in the purchasing power of the currency up to February 28, 2003, by following the restatement method established by Technical Resolution Nº 6 of the Argentine Federation of Professional Councils in Economic Sciences ( F.A.C.P.CE. ). In line with the provisions of the Argentine Central Bank, Decree Nº 664/03 of the National Executive Branch and General Resolution Nº 44/03 of the C.N.V., the Bank discontinued the application of that method and, therefore, did not recognize the effects of the changes in the purchasing power of the currency originated after March, Resolution MD Nº 4/03 of the Professional Council in Economic Sciences of the Autonomous City of Buenos Aires ( C.P.C.E.C.A.B.A. ) established the discontinuation of the recognition of the changes in the purchasing power of the currency, effective October, MAIN VALUATION CRITERIA.2.2. FOREIGN CURRENCY ASSETS AND LIABILITIES. These are stated at the US Dollar exchange rate set by the Argentine Central Bank, at the close of operations on the last business day of each month. As of December 3, 202 and December 3, 20, balances in US dollars were converted at the reference exchange rate ($4.973 and $4.3032, respectively) established by the Argentine Central Bank. Assets and liabilities valued in foreign currencies other than the US Dollar have been converted into the latter currency using the swap rates informed by the Argentine Central Bank GOVERNMENT SECURITIES The Argentine Central Bank set forth, based on the most likely allocation of assets, two valuation criteria for holdings of debt instruments of the nonfinancial Public Sector. a) Fair market value: Includes government securities and monetary regulation securities included in the volatility or in the present value lists issued by the Argentine Central Bank. These are recorded at the market closing price of securities or present value, plus the value of amortization and interest coupons due and receivable, less estimated selling costs, when applicable. b) Cost plus yield value: Includes government securities and BCRA's monetary regulation securities not included in the previous item. These are recorded at their incorporation value increased on an exponential basis according to their internal rate of return (IRR), and its accrual is recorded in the income statement or in a contra asset account, according to the securities in question: b) Sovereign debt instruments stemming from sovereign debt exchanges for other sovereign debt securities. Should their market value be lower than the accounting value, 50 % the monthly accrual of the IRR must be recorded with a counterpart under allowances, which will be reversed by means of an allocation to income as long as their balance exceeds the positive difference between their market and accounting value. b2) Argentine Central Bank's currency regulation securities. The monthly accrual of the IRR shall be charged to profit and loss. b3) National government securities not stemming from the sovereign debt exchange not included in the volatility or in the present value lists issued by the Argentine Central Bank. These are stated at present value of cash flow discounted at the internal rate of return of securities of similar characteristics and duration with volatility published by said institution. When the accounting value exceeds the present value, the accrual thereof must be charged to contra asset accounts. In addition, and pursuant to the policies established by the entity, securities that may be valued at fair market value but are valued at cost plus IRR may be charged to this segment provided the aim is to obtain contractual cash flows. In those cases, the maximum amount that may be allocated to this option shall not exceed liquid assets corresponding to 40% of deposits. As of December 3, 202 and December 3, 20 and taking into account the abovementioned valuation criteria, the Bank stated its holdings as follows: I) Holdings recorded at fair market value: It includes securities held for trading, valued according to item a). The same criterion was applied to the purchase and sale transactions of these securities pending settlement and those allotted to repurchase agreement transactions, if applicable. II) Holdings recorded at cost plus yield: Within this segment, the Bank recorded Pesodenominated Argentine Bonds BADLAR due in 205 (Bonar 205) which have been valued 52 Banco Galicia Annual Report 202

37 pursuant to the provisions of item b). The same criterion is applied to securities allocated to repurchase agreement transactions, if applicable. Had these securities for a face value of $469,200 as of December 3, 202 and $668,78 as of December 3, 20 been marked to market, shareholders equity would have increased by approximately $43,000 and $69,523, respectively. Likewise, as of December 3, 202, the Bank records holdings of debt securities and Provincial Treasury Bills for a FV of $77,947. Had the position for a FV of $77,697 been marked to market, shareholders equity would have increased by approximately $2,642. III) Securities Issued by the Argentine Central Bank: a) Recorded at fair market value: Valued pursuant to the provisions of item a). The same criterion was applied to holdings of such bonds allocated to loans, guarantees, transactions to be settled and repurchase agreement transactions, if applicable. b) Recorded at cost plus yield value: Valued pursuant to the provisions of item b). The same criterion was applied to holdings of such bonds allocated to loans, guarantees and repurchase agreement transactions, if applicable. Securities purchased and sold still outstanding have been valued at the agreed upon price for each transaction. Had these securities been marked to market, the shareholders equity would have been reduced by $856 as of December 3, 202 and would have increased by $6,69 as of December 3, 20. Due to the fact that these securities have no volatility nor current value published by the Argentine Central Bank, the market value thereof has been calculated based on the corresponding cash flow discounted at the internal rate of return of securities of similar characteristics and duration with volatility published by said institution ACCRUAL OF ADJUSTMENTS, INTEREST, EXCHANGE RATE DIFFERENCES, PREMIUMS ON FUTURE TRANSACTIONS AND VARIABLE RETURNS. For foreign currency transactions and for local currency transactions with a principal adjustment clause, as well as for those in which rates have been prearranged for terms up to 92 days, the accrual has been recognized on a linear basis. For local currency transactions at rates arranged for longer periods, interest has been accrued on an exponential basis. The Bank records placements with variable rates, pursuant to the provisions of the Argentine Central Bank. Fixed rates for each transaction are accrued pursuant to the provisions of the first paragraph, while variable rates are accrued by applying the rate proportion agreed upon to the positive variation in the price of the underlying taken as a base to determine the variation, between the time of agreement and the end of the month (see note 8). The adjustment from the application of the CER was accrued for lending and borrowing transactions where the legal and/or contractual conditions require it. As regards lending transactions, the Bank has ceased to recognize results once the debtor is classified as nonperforming FINANCIAL TRUST DEBT SECURITIES AND PARTICIPA TION CERTIFICATES. The debt securities added at par have been recorded at their technical value; the remaining holdings were valued at their cost increased according to their internal rate of return. Financial trusts participation certificates are valued taking into account the participation in the assets net of liabilities that stem from the financial statements of the respective trusts, corrected for the effect on them of the application of Argentine Central Bank regulations, when applicable. Trust which underlying assets are public sector assets have been valued taking into account the criteria described in item b). In the case of the Participation Certificate of Galtrust I financial trust, it has been stated pursuant to the provisions of item b3) NEGOTIABLE OBLIGATIONS WITHOUT QUOTATION. The holdings of these securities are valued at acquisition cost increased on an exponential basis according to their internal rate of return RECEIVABLES FROM FINANCIAL LEASES. These receivables have been recorded at the current value of the sum of installments plus the residual value previously set forth, estimated pursuant to the terms and conditions agreed upon in the corresponding lease agreements, applying the internal rate of return (IRR) EQUITY INVESTMENTS A) IN FINANCIAL INSTITUTIONS AND SUPPLEMENTARY AND AUTHORIZED ACTIVITIES Argentine: Galicia Valores S.A. Sociedad de Bolsa, Tarjetas Regionales S.A., Tarjetas del Mar S.A., Compañía Financiera Argentina S.A., Cobranzas y Servicios S.A., Procesadora Regional S.A., Banelco S.A. and Galicia Administradora de Fondos S.A. Sociedad Gerente de Fondos Comunes de Inversión have been valued according to the equity method, based on these companies latest financial statements available. In the case of Compañía Financiera Argentina S.A. and Cobranzas y Servicios S.A. a negative goodwill was recorded under Equity Investments (Negative goodwill), stemming from the difference between the acquisition cost and the value of assets and liabilities acquired as of June 30, 200 for $479,680 and $5,936 respectively. The allocation to income of the negative goodwill is carried out on a straightline basis over 60 months, taking into account Argentine Central Bank regulations on the subject. As of December 3, 202, the Bank has recorded (net of accrued amortizations) $239,840 corresponding to Compañía Financiera Argentina S.A. and $7,968 to Cobranzas y Servicios S.A., while as of December 3, 20 the Bank recorded $335,776 corresponding to Compañía Financiera Argentina S.A. and $,55 to Cobranzas y Servicios S.A.. When applicable, the shareholders' equity stemming from the financial statements of said companies has been adjusted to reflect the effect Banco Galicia Annual Report

38 of the application of Argentine Central Bank regulations. The remaining companies with supplementary business activities have been valued at acquisition cost restated as mentioned in note item.2., plus stock and cash dividends pending collection, as appropriate. A valuation allowance has been established for the amount by which it is estimated that the value of the investment in Compensadora Electrónica S.A. exceeds the equity method value. Foreign: Galicia (Cayman) Ltd. and Banco Galicia Uruguay S.A. (in liquidation) have been valued according to the equity method, based on financial statements originally issued in foreign currency. The conversion into Pesos was made in accordance with the following: a. Assets and liabilities were converted into Pesos as stated in note item b. Allotted capital has been computed for the amounts actually disbursed restated as mentioned in note item c. Accumulated earnings were determined as the difference between assets, liabilities and the allotted capital. d. Earnings for the fiscal year were determined as the difference between accumulated earnings at the beginning and the end of the fiscal year. The balances of Income Statement accounts were converted into pesos applying the monthly average exchange rates recorded in each month of the fiscal year. e. The significant items arising from intercompany transactions, not involving third parties, have been eliminated from the Balance Sheet and the Income Statement. The remaining companies have been stated at cost, plus stock dividends recognized at their face value. The procedure referred to in note item.2.2. has been applied for conversion into local currency. B) IN OTHER COMPANIES Argentine: These are valued at acquisition cost restated as mentioned in note item.2., plus stock and cash dividends pending collection, as appropriate. A valuation allowance has been established for the amount by which it is estimated that the book value of the investments in Argencontrol S.A., Alfer S.A. (in liquidation), Electrigal S.A., Autopista Ezeiza Cañuelas S.A. and Aguas Cordobesas S.A. exceed their equity method value. The investments in Sudamericana Holding S.A., Galicia Warrants S.A. and Net Investment S.A. have been valued according to the equity method, which was also used by Grupo Financiero Galicia S.A., the controlling shareholder of the Bank. The shareholders equity of those companies has been adjusted for the effect on them of the application of Argentine Central Bank regulations. Foreign: These are stated at cost, plus stock dividends recognized at their face value. The procedure referred to in note item.2.2. has been applied for conversion into local currency BANK PREMISES AND EQUIPMENT AND MISCELLA NEOUS ASSETS. Bank premises and equipment and miscellaneous assets have been valued at their restated cost (see note item.2..), plus the increase in value of the real estate property derived from a technical revaluation made in 98, less accumulated depreciation. Financial leases that basically transfer the risks and benefits inherent to the leased item, are recognized at the beginning of the lease, at the lowest of the cash value of the leased item or the current value of the cash flow set forth in the agreement. The depreciation of these assets is determined based on their estimated useful lives, expressed in months. A full month's depreciation is recognized in the month in which an asset is acquired, while no depreciation is recognized in the month in which it is sold or retired, over a maximum of 600 months for real estate property, 20 months for furniture and fittings and 60 months for the rest of assets. The residual value of the assets, taken as a whole, does not exceed their combined value of economic use OTHER MISCELLANEOUS ASSETS. These assets are valued at their restated acquisition cost (see note item.2..), less the corresponding accumulated depreciation. For assets earmarked for sale, the effects of the variation in the purchasing power of the currency from January, 2002, have not been given accounting recognition. The depreciation charge for these assets is calculated following the same criterion as that mentioned in the preceding section INTANGIBLE ASSETS. Intangible assets have been valued at their restated acquisition cost (see note item.2..), less the corresponding accumulated amortization, calculated proportionally over the estimated number of months of useful life. Amortization has been recognized on a straightline basis over a maximum of 20 months for Goodwill and over a maximum of 60 months for Organization and Development Expenses. Effective March 2003, the Argentine Central Bank established that the difference between the amount paid as a result of the compliance with court decisions made in lawsuits filed challenging the current regulations applicable to deposits with the financial system, within the framework of the provisions of Law Nº 25,56, Decree Nº 24/02 and supplementary regulations, and the amount resulting from converting deposits at the $.40 per US Dollar exchange rate, adjusted by the CER and interest accrued up to the payment date must also be recorded under this caption. Its amortization must take place in a maximum of 60 equal, monthly and consecutive installments as from April As of December 3, 202 and December 3, 20 said amount was fully amortized, being the amount of the accrued amortization of $883,022 and $866,570 respectively. The Bank has complied with said amortization exclusively to comply with Argentine Central Bank 54 Banco Galicia Annual Report 202

39 regulations. However, the Bank has repeatedly reserved the right to make claims in view of the negative effect on its financial condition caused by the compliance with court orders, in excess of the provisions of the above mentioned regulations. On November 30, 2003, the Bank formally requested to the National Executive Branch with a copy to the Ministry of Economy and Production and to the Argentine Central Bank, the payment of the due compensation for the losses incurred that were generated by the asymmetric pesification and especially for the negative effect on its financial condition caused by court decisions in the abovementioned sense DERIVATIVES TRANSACTIONS. These transactions have been recorded pursuant to the provisions of note ALLOWANCE FOR LOAN LOSSES AND PROVISIONS FOR CONTINGENT COMMITMENTS. These have been established based upon the estimated uncollectibility risk of the Bank s credit portfolio, which results from an evaluation of debtors' compliance with their payment obligations, their economic and financial condition and the guarantees securing their related transactions, in line with Argentine Central Bank regulations INCOME TAX. The Bank determines the income tax charge by applying the tax rate in force to the estimated taxable income, in accordance with Argentine Central Bank s regulations. As of December 3, 202, the amount determined for said tax of $342,000 was charged to the results of the fiscal year under Income tax MINIMUM PRESUMED INCOME TAX. Pursuant to Section 3 of Law Nº 25,063, as amended by Law Nº 25,360, payments on account of the Minimum Presumed Income Tax, not offset against the Income Tax for each fiscal year, can be computed as a payment on account of the Income Tax determined for any of the following 0 fiscal years. The recognition of this deferred asset and its realizability stems from the ability to generate sufficient future taxable income for offsetting purposes, in accordance with projections prepared in accordance with Argentine Central Bank regulations. As of December 3, 202, the Bank does not record a balance in this regard, since it has been deemed a payment on account of the Income Tax corresponding to Fiscal Year 202. As of December 3, 20 assets for $76,558 were recorded LIABILITIES DUE TO CLIENT LOYALTY PROGRAM QUIERO!. The Bank estimates the reasonable value of points granted to clients under the Quiero! program through a mathematical model that takes into account assumptions on exchange percentage, cost of points exchanged based on the combination of available products and customer preference, as well as the expiration of unused points. As of December 3, 202 and 20 the Bank recorded $74,736 and $50,52 respectively under Miscellaneous liabilities, for unredeemed points SEVERANCE PAYMENTS. The Bank directly expenses severance payments. The amounts that the Bank may possibly have to pay for labor lawsuits are covered by a provision, which is recorded under Liabilities Provisions for Severance Payments. (See Schedule J) OTHER PROVISIONS. As of December 3, 202 and December 3, 20 provisions have been set up in order to face potential labor, legal and taxrelated claims and other potential contingencies. (See Schedule J) SHAREHOLDERS' EQUITY. Shareholders' Equity accounts have been restated following the procedure mentioned in note item.2., except for the Capital Stock account, which is carried at its original value. The adjustment stemming from the restatement of that account is shown under Adjustment to Shareholders Equity ACCOUNTING ESTIMATES. The preparation of accounting statements as of a certain date requires the Bank to make estimates and assessments of the amount of assets, liabilities and contingent assets and liabilities, as well as income and expenses recorded during the fiscal year. In this sense, the Bank makes estimates in order to calculate at a given time, among others, the recoverable value of assets, loan loss and other contingencies provisions, depreciations and the income tax charge. Future actual results may differ from estimates and assessments made at the date these financial statements were prepared..3 DIFFERENCES BETWEEN ARGENTINE CENTRAL BANK REGULATIONS AND GAAP IN FORCE IN THE AUTONOMOUS CITY OF BUENOS AIRES. The Bank has prepared the attached financial statements following valuation and disclosure criteria established by the Argentine Central Bank regulations, which differ in certain aspects from the GAAP in force in the Autonomous City of Buenos Aires. The main differences between Argentine Central Bank regulations and Argentine GAAP in force in the Autonomous City of Buenos Aires are detailed below:.3. ACCOUNTING FOR INCOME TAX ACCORDING TO THE DEFERRED TAX METHOD. The Bank determines the income tax charge by applying the enacted tax rate to the estimated taxable income, without considering the effect of any temporary differences between accounting and tax results. Under Argentine GAAP in force in the Autonomous City of Buenos Aires, the income tax must be recognized using the deferred tax method and, therefore, deferred tax assets or liabilities must be established based on the aforementioned temporary differences. In addition, unused tax loss carryforwards or fiscal credits that may be Banco Galicia Annual Report

40 offset against future taxable income should be recognized as deferred assets, provided that taxable income is likely to be generated. As of December 3, 202 the application of this criterion, based on projections prepared by the Bank, would determine a $264,003 deferred tax asset, while as of December 3, 20 it would amount to $245, VALUATION OF ASSETS WITH THE NONFINANCIAL PUBLIC AND PRIVATE SECTORS.3.2. GOVERNMENT SECURITIES. Argentine Central Bank's regulations set forth specific valuation criteria for securities recorded at cost plus yield, which are described in note item b) to the financial statements. Under Argentine GAAP in force in the Autonomous City of Buenos Aires, the abovementioned assets must be valued at their current value. The differences resulting from the application of said valuation criteria are included in said note ALLOWANCES ON THE NONFINANCIAL PUBLIC SECTOR. Current Argentine Central Bank regulations on the establishment of allowances provide that credits against the public sector are not subject to allowances for uncollectibility risk. Under Argentine GAAP, those allowances must be estimated based on the recoverability risk of assets..3.3 EQUITY INVESTMENTS NEGATIVE GOODWILL. As of December 3, 202, and December 3, 20 the Bank recorded a negative goodwill (net of accumulated amortizations) of $247,808 and $346,93 respectively, to offset its equity investments, corresponding to the difference between the acquisition cost paid for Compañía Financiera Argentina S.A. and Cobranzas y Servicios S.A. and their equity method value at the time of purchase. Argentine Central Bank regulations set forth that the goodwill value must be charged to income based on its origin, and should not exceed the amount corresponding to a 60month straightline amortization. Under Argentine GAAP in force, the negative goodwill not related to expected expenses or future losses, must be recorded as income at the time of purchase..3.4 RESTRUCTURED LOANS AND LIABILITIES. Pursuant to the regulations issued by the Argentine Central Bank, the Bank recorded restructured loans and financial obligations based on the actually restructured principal amounts plus accrued interest and principal adjustments, when applicable, minus collections or payments made. Pursuant to Argentine GAAP, those restructured loans and liabilities for which the modification of original conditions imply a substitution of instruments, must be recorded on the basis of the best possible estimate of the amounts receivable or payable discounted at a market rate that reflects market evaluations of the time value of money and the specific risks of such assets and liabilities at the time of restructuring..3.5 CONVERSION OF FINANCIAL STATEMENTS. The conversion into Pesos of the financial statements of the foreign subsidiaries for the purpose of their consolidation with the Bank s financial statements differs from Argentine GAAP (Technical Pronouncement Nº 8). Argentine GAAP require that: (a) the measurements in the financial statements to be converted into pesos that are stated in periodend foreign currency (current values, recoverable values) be converted at the balance sheet date exchange rate and (b) the measurements in the financial statements to be converted into pesos that are stated in foreign currency of periods predating the closing date (for example: those which represent historical costs, income, expenses) be converted at the pertinent historical exchange rates, restated at periodend currency, when corresponding, due to the application of Technical Pronouncement Nº 7. Quotation differences arising from conversion of the financial statements will be treated as financial income or losses, as the case may be. The application of this criterion instead of that mentioned in Note item Equity Investments Foreign does not have a significant impact on the Bank s financial statements..4 ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS BY THE NATIONAL SECURITIES COMMISSION. Through General Resolution Nº 562, the National Securities Commission ( CNV ) has set forth the enforcement of Technical Resolution No. 26 of the F.A.C.P.C.E. which adopts, for certain publicly traded entities, that trade their capital or negotiable obligations, or which have requested to become publicly traded, the international financial reporting standards issued by the IASB (International Accounting Standards Board) for financial statements for fiscal years starting on January, 202. The adoption of these standards does not apply to the Bank, since the CNV accepts the accounting criteria issued by other regulatory and control bodies, such as those issued by the Argentine Central Bank for Companies under the scope of the Financial Institutions Law. NOTA 2 RESTRICTED ASSETS AND OTHER CON TINGENT LIABILITIES As of December 3, 202, the Bank s ability to dispose of the following assets was restricted: A. CASH AND DUE FROM BANKS AND GOVERNMENT SECURITIES For repurchase agreement transactions $47,485 For transactions at the Mercado a Término de Rosario and the Mercado Abierto Electrónico $33,645 For credit and debit card transactions $94,23 For attachments (*) $69,548 For other transactions $3,465 (*) includes $67,54. corresponding to the case Banco Europeo para América Latina S.A. c/banco de Galicia y Buenos Aires S.A. s/proceso de conocimiento on the unconstitutional 56 Banco Galicia Annual Report 202

41 character of Decree Nº 992/02 on the fulfillment of forward agreements subject to foreign legislation, past due in February As regards this case, the Bank records as of December 3, 202 the provisions deemed suitable for the progress thereof. B. SPECIAL ESCROW ACCOUNTS. Special escrow accounts have been opened with the Argentine Central Bank as guarantees for transactions involving electronic clearing houses, checks for settling debts and other similar transactions, which, as of December 3, 202, amounted to $60,896. C. DEPOSITS IN FAVOR OF THE ARGENTINE CENTRAL BANK Unavailable deposits related to foreign exchange transactions $533 For acting as register and custody agent of bookentry mortgage securities backed bills $2,070 D. EQUITY INVESTMENTS. The item Equity Investments includes shares the transfer of which is subject to the prior approval of the National or Provincial authorities, as applicable, under the terms of the concession contracts signed: Electrigal S.A.:,222,406 ordinary registered nonendorsable nontransferable shares. Aguas Cordobesas S.A.: 900,000 ordinary class E shares. The Bank, as shareholder of Aguas Cordobesas S.A. and proportionally to its 0.833% interest, is jointly responsible, before the Provincial State of Cordoba, for contractual obligations deriving from the concession contract during the entire term thereof. Should any of the other shareholders fail to comply with the commitments arising from their joint responsibility, the grantor may force the Bank to assume the unfulfilled commitment, but only in the proportion and to the extent of the interest held by the Bank. E. GUARANTEES GRANTED FOR DIRECT OBLIGATIONS. As of December 3, 202, the Bank recorded $330,90 as collateral for credit lines granted by the IFC, with the loans granted using such resources having been allocated to the resources provided by the IFC. The Bank allocated bookentry mortgagebacked bills as collateral for the funds to be used to fund the Global Loans Program for Micro, Small and MediumSized Companies, which funds were requested through the Argentine Central Bank to the Subsecretaría de la Micro, Pequeña y Mediana Empresa y Desarrollo Provincial (Undersecretary for Micro, Small and MediumSized Companies and Provincial Development) being the secured debt balance $49,86 as of December 3, 202. Also, as of December 3, 202, the Bank allocated bookentry mortgagebacked bills and a promissory note as collateral for loans granted within the framework of the Credit Programs for the Province of San Juan and bookentry mortgagebacked bills for the province of Mendoza for $9,772 and $4,283, respectively. Total restricted assets for the above items as of December 3, 202 amount to $,346,304 while as of December 3, 20 they amounted to $,68,509. NOTE 3 RESTRICTIONS IMPOSED ON THE DISTRIBUTION OF PROFITS Argentine Central Bank regulations require that 20% of the profits shown in the Income Statement at the end of the fiscal year, plus (less) prior fiscal year adjustments and, if applicable, accumulated losses, be allocated to a legal reserve. This proportion applies regardless of the ratio between the legal reserve and the capital stock. Should the legal reserve be used to absorb losses, earnings shall be distributed again only if the value of the legal reserve reaches 20% of the capital stock plus the capital adjustment. The Argentine Central Bank set forth the conditions for the distribution of profits by financial institutions. According to this scheme, profits may only be distributed as long as results are positive, after deduction of retained earnings, as well as the Legal reserve and the reserve established by law, which creation may be enforceable, under the following unaccounted items: the difference between the accounting and the market value of public sector assets and/or debt issued by the Argentine Central Bank not marked to market value, the amount of assets representing the losses from lawsuits related to deposits, and any adjustments required by the external auditors or the Argentine Central Bank not having been recognized. In addition, to be able to distribute profits, a financial institution must comply with the capital adequacy rule, with the minimum capital requirement and the regulatory capital calculated, only for the purpose of determining its ability to distribute profits, by deducting from its assets and retained earnings all the items mentioned in the paragraph above, as well as the asset recorded in connection with the minimum presumed income tax and the amounts allocated to the repayment of longterm debt instruments computable as core capital pursuant to Communiqué A Likewise, in such calculation, a financial institution will not be able to compute the temporary reductions in the capital affecting minimum capital requirements, computable regulatory capital or a financial institution s capital adequacy. In addition to the above, the Argentine Central Bank requires that an excess computable capital over the capital requirement be recorded, equal to 75%, including the requirement for operational risk, calculated at 00%, as from February 202. Regulations in force as to January 27, 202 set forth that percentage in 30% and did not take the operational risk requirement into account. Said additional requirement shall be basically 5% of the annual average of financial income and net income from services for the last 36 months prior to the date of calculation, excluding extraordinary items or items not directly related to operational risk. The Argentine Central Bank has planned a gradual compliance, reaching 00% by December 202. Profit distribution requires the prior authorization of the Superintendency of Financial Institutions and Exchange Bureaus of the Argentine Central Bank, which intervention will have the purpose of verifying that the aforementioned requirements have been fulfilled. Banco Galicia Annual Report

42 NOTE 4 TRANSACTIONS with COMPANIES INCLUDED IN SECTION 33 OF LAw N 9,550 The most significant balances recorded in balance sheet and income statement accounts, in connection with the controlling company and the controlled or related companies are detailed below in comparative format with those as of December 3, 20: Company December 202 Tarjetas del Mar S.A. 78,63 Tarjetas Cuyanas S.A. 6,690 Tarjeta Naranja S.A. 08,50 Tarjetas Regionales S.A. Galicia Warrants S.A. Banelco S.A. Interbanking S.A. Visa Argentina S.A. Galicia Seguros S.A. Aguas Cordobesas S.A. 388 Compañía Financiera Argentina S.A. 54,859 Asset and Liabilities Accounts Bank Assets Receivables Resulting Loans from Financial Brokerage Miscellaneous Receivables Receivables from Financial Leases December 20 December 202 December 20 December 202 December 20 December 202 December 20 86,595 82,63 2, ,04 57,097 37,575 22,922 9, ,545 7, ,873,439 86,279 30,897,042 9,886 5,54 3, , Company December 202 Banco Galicia Uruguay S.A. (en Liq.) 8,48 Seguro de Depósitos S.A. 6,384 Tarjetas Regionales S.A. 666 Cobranzas Regionales S.A.,36 Banelco S.A. 5,738 Galicia Valores S.A. 2,866 Tarjetas Cuyanas S.A. 33,847 Tarjeta Naranja S.A. 82,483 Tarjetas del Mar S.A. 729 Galicia Warrants S.A. 697 Galicia Administradora de Fondos S.A. 3,98 Grupo Financiero Galicia S.A. 905 Interbanking S.A.,43 Visa Argentina S.A. 48,60 Aguas Cordobesas S.A. 489 Galicia Retiro Compañía de Seguros S.A. 265 Galicia Seguros S.A. 8,26 Electrigal S.A. Compañía Financiera Argentina S.A. 7,726 Cobranzas y Servicios S.A. 253 Procesadora Regional S.A.,424 Sudamericana Holding S.A. 3,629 Asset and Liabilities Accounts Bank Liabilities Liabilities Resulting Subordinated Negotiable Deposits from Financial Brokerage Miscellaneous Liabilities Obligations December 20 December 202 December 20 December 202 December 20 December 202 December 20 6,683 2, , ,400,896 0,240, ,007 7,534 3,886,787 2,22 2,7 2, ,73 45,42 2,28 79, ,552 4,208 2, ,907 9,69 2,62 58 Banco Galicia Annual Report 202

43 Memorandum Accounts Forward Sales in Foreign Forward Purchases in Foreign Variable for Fixed Loans Granted Currency. To be Settled in Pesos Currency. To be Settled in Pesos Interest Rate Swaps Company Tarjeta Naranja S.A. Tarjetas Cuyanas S.A. Galicia Warrants S.A. December ,000 25, December 20 00,000 25, December ,934 36,395 December ,028 2,907 December 202 December 20 December 202 December 20 Compañía Financiera Argentina S.A. 223, ,379 50,000 Grupo Financiero Galicia S.A. 7,939 Company December 202 Banco Galicia Uruguay S.A. (in Liquidation) Seguro de Depósitos S.A. Cobranzas Regionales S.A. Tarjetas Regionales S.A. Banelco S.A. Tarjetas del Mar S.A. 5,479 Tarjetas Cuyanas S.A.,683 Tarjeta Naranja S.A. 22,45 Galicia Warrants S.A.,668 Galicia Administradora de Fondos S.A. Grupo Financiero Galicia S.A. 934 Visa Argentina S.A. Galicia Seguros S.A. Compañía Financiera Argentina S.A. 7,45 Galicia Retiro Compañía de Seguros S.A. Sudamericana Asesores de Seguros S.A. GV Mandataria de Valores S.A. Cobranzas y Servicios S.A. Procesadora Regional S.A. Sudamericana Holding S.A. Interbanking S.A. Bank Profits / Losses Net Financial Income Net Income from Services and Miscellaneous Income Expenses Income Expenses December 20 December 202 December 20 December 202 December 20 December 202 December ,882 3, , ,859 9,933 4, ,436 9,900 9,96 7,453 3,062, ,587 3,0 26,093 8,656 34,84 5,059 3, , ,62, ,95 4,062 2,634,844 4,336 8,4 204,373 8, ,855 28,839,922 6,976, ,04 2, , ,860 3,535 NOTE 5 CONTRIBUTION TO THE DEPOSIT INSURANCE SYSTEM Law Nº 24,485 and Decree Nº 540/95 established the creation of the Deposit Insurance System to cover the risk attached to bank deposits, in addition to the system of privileges and safeguards envisaged in the Financial Institutions Law. The National Executive Branch through Decree Nº 27/98, dated September 24, 998 established the maximum limit covered by the insurance system for demand deposits and time deposits denominated either in pesos and/or in foreign currency. As from January 20 said limit has been set at $20. This system does not cover deposits made by other financial institutions (including time deposit certificates acquired through a secondary transaction), deposits made by parties related to the Bank, either directly or indirectly, deposits of securities, acceptances or guarantees and those deposits set up after July, 995 at an interest rate exceeding the one established regularly by the Argentine Central Bank based on a daily survey conducted by it. Also excluded are those deposits whose ownership has been acquired through endorsement and those placements made as a result of incentives other than the interest rate. This system has been implemented through the creation of the Deposit Insurance Fund ( FGD ), which is managed by a company called Seguros de Depósitos S.A. (SEDESA). The shareholders of SEDESA are the Argentine Central Bank and the financial institutions, in the proportion determined for each one by the Argentine Central Bank based on the contributions made to the fund. Beginning on January, 2005, the Argentine Central Bank set this contribution at 0.05% per month. Banco Galicia Annual Report

44 NOTE 6 TRUST AND GUARANTEE AGENT ACTIVITIES A) TRUST CONTRACTS FOR PURPOSES OF GUARANTEEING COM PLIANCE WITH OBLIGATIONS Purpose: In order to guarantee compliance with contractual obligations the parties to these agreements have agreed to deliver to the Bank, as fiduciary property, certain amounts to be applied, according to the following breakdown: Trust Balance Contract Date Trustor (in Thousands $) Maturity Date Sullair () Sinteplast () Las Blondas () Fondo Fiduciario Aceitero 3, () Tecsan II 5, () Tecsan III 95, () Coop. de Trab. Portuarios, () Latinoamericana III 20, () Benito Roggio II 00, () Total 226,88 () These amounts will be released monthly until the earlier of the settlement date of trustor obligations or the due date, whichever occurs first. B) FINANCIAL TRUST CONTRACTS Purpose: to administer and exercise the fiduciary ownership of the trust assets until the redemption of the debt securities and the participation certificates: Trust Balance Contract Date Trustor (in thousands $) (in thousands US$) Maturity Date Rumbo Norte I Hydro I Faid 20 Gas I Saturno VII Agro Nitralco II Gas II Cag S.A. Atanor Faid ,8 99 9,432 09,9 4,677,057 36, , (3) (2) (3) (3) (3) (3) (3) (3) (3) (3) Trust Balance Contract Date Trustor (in thousands $) (in thousands US$) Maturity Date Mila III Mila IV Cag S.A. II Sursem III Fideicred Agro I Fideicred Agro Series I Pla 22,254 28,739 4,779 0, ,298 5, (3) (3) (3) (3) (3) (3) (3) Total 4,965,48 4 (2) These amounts will be released monthly until the redemption of the debt securities. (3) Estimated date, because the actual maturity will occur at the time of the distribution of all of the trust assets. C) GUARANTEE AGENT ACTIVITIES c) Within the framework of the issuance on Negotiable Obligations Class I for a FV of US$ 25,000 by INVAP S.E., the Bank has subscribed an agreement with said company pursuant to which it became Guarantee Agent. Pursuant to said agreement, INVAP S.E. created a first ranking lien and priority on the right to receive money and any other ownership rights owned by INVAP S.E., in favor of the Guarantee Agent representing the holders of secured obligations, in order to guarantee to the holders of negotiable obligations the fulfillment thereof until settlement. The Bank, in its capacity as Guarantee Agent, manages pledged bank accounts, allowed investments, and carries out all other tasks specified in the agreement. Pledged balances as of December 3, 202 amounted to US$ 26,3 and $75, while as of December 3, 20 they amounted to US$ 38,063 and $57. c2) On April 8, 20 the Bank has been appointed Guarantee Agent of the National Treasury endorsements in favor of ENARSA (Energía Argentina S.A.) and transferred in favor of Nación Fideicomisos S.A. in its capacity of Trustee of Financial Trusts ENARSABARRAGAN AND ENARSABRIGADIER LOPEZ. Said endorsements guarantee the payment of all liabilities of the abovementioned Trusts. The Bank, as Guarantee Agent, is the custodian of all documents corresponding to endorsement by the National Treasury and shall be in charge of all legal and notarial aspect as regards the execution thereof. As of December 3, 202 and December 3, 20, the balances for said transactions amount to US$,364,097 and $ Banco Galicia Annual Report 202

45 NOTE 7 NEGOTIABLE OBLIGATIONS The global programs outstanding for the issuance of negotiable obligations are the following: Date of Approval by Authorized Amount (*) Type of Negotiable Obligation Program's Term the Shareholders' Meeting CNV's Approval US$ 2,000,000 Ordinary, nonconvertible into shares, 5 years ratified on Resolution N 4,708 subordinated or not, secured or unsecured dated US$ 342,500 Ordinary, nonconvertible into shares, 5 years ratified on Resolution N 5,228 subordinated or not, secured or unsecured dated and Extended Through Resolution N 6,454 dated..200 (*) Or its equivalent in other currencies. Within the global program of US$ 2,000,000, the Bank has the following negotiable obligations outstanding: Residual Face Value Book Value (*) (in thousands of US$) (in thousands of $) Issue Authorized Issue Date Currency as of Type Term Rate by the CNV US$ 229,258 (**) Subordinated () (2),88,05 988, and (*) Includes principal and interest, net of expenses. (**) Includes US$,047 corresponding to the capitalization of interest due on January 0, 202 and July, 202 inclusively, payable as Negotiable Obligations Due 209. The net proceeds of this issuance were used to refinance foreign debt, in accordance with Section 36 of the Negotiable Obligations Law, Argentine Central Bank regulations and other applicable regulations. () These obligations will be fully amortized at maturity, on January, 209, unless their principal is previously redeemed at par, plus unpaid accrued interest and additional amounts, if any, fully or partially, at the issuer s option, at any time, after all of the Negotiable Obligations due in 204 have been fully repaid. (2) Interest on the Negotiable Obligations due in 209 shall be payable in cash and in kind, as additional Negotiable Obligations due in 209, semiannually in arrears, on January and July of each year, commencing on July, The Negotiable Obligations Due 209 accrue interest payable in cash at an annual fixed rate of 6%, from January, 2004 up to, but not including, January, 204. Such interest rate increases to % per annum from January, 204 up to, but not including, January, 209, the maturity date of the Negotiable Obligations Due 209, unless they are previously redeemed. Interest payable in additional Negotiable Obligations Due 209 accrues at an annual fixed rate of 5%, beginning on January, 2004, and will be payable on January, 204 and January, 209, unless said Negotiable Obligations are previously redeemed. During fiscal year 20, the Bank made advance payments of interest for the amount of US$ 97,257, which included capitalized interest as to June 30, 20. Said payments were originally scheduled to be made on January,, 204. Within the global program of US$ 342,500, the Bank has the following negotiable obligations outstanding: Residual Face Value Book Value (*) (in thousands of US$) (in thousands of $) Issue Authorized Issue Date Currency as of Type Term Rate by the CNV US$ 300,000 Ordinary 84 months (),484,645,295, and..200 (*) includes principal and interest, net of expenses. () The annual interest rate of 8.75% agreed upon shall be payable semi annually on May 4 and November 4 each year until maturity date, beginning on November 4, 20. The net proceeds from the placement of this issuance were used as working capital, to grant loans and other financing, and to other purposes included in the Negotiable Obligations Law and the Argentine Central Bank regulations. As of December 3, 202, the Bank holds in its portfolio Negotiable Obligations Due 208 for $24,987, while as of December 3, 20, it held $26,68. Banco Galicia Annual Report 202 6

46 In addition, as of December 3, 202, the Bank holds past due negotiable obligations, not tendered to the restructuring offer, as follows: Residual Face Value Book Value (*) (in thousands of US$) (in thousands of $) Issue Authorized Issue Date Currency as of Type Term Rate by the CNV US$,340 Ordinary 0 years 9% 3,2 3, (*) includes principal and interest. In accordance with the provisions of the Negotiable Obligations Law and Argentine Central Bank regulations, the net proceeds of this issuance were applied to the extension of credit to domestic companies for them to finance investments in physical assets in Argentina, working capital or the restructuring of liabilities, the extension of consumer loans and mortgage loans to finance housing construction, or investments in the share capital of domestic companies and other uses envisaged by current regulations. NOTE 8 DERIVATIVE FINANCIAL INSTRUMENTS FORWARD SALEPURCHASE OF FOREIGN CURRENCIES WITHOUT DELIVERY OF THE UNDERLYING ASSET. The Mercado Abierto Electrónico (MAE) and the Mercado a Término de Rosario (ROFEX) have trading environments for the closing, recording, and settlement of financial forward transactions carried out among its agents, the Bank being one of them. The general settlement mode for these transactions is without delivery of the traded underlying asset. Settlement is carried on a daily basis for the difference, if any, between the closing price of the underlying asset and the closing price or value of the underlying asset corresponding to the previous day, the difference in price being charged to income. As of December 3, 202, forward purchase and sale transactions amounted to $ 3,586,20; and $,546,26, while as of December 3, 20 they amounted to $6,006,508 and $2,090,664 respectively. Such transactions are recorded under Memorandum Accounts for the notional value traded. Balances accrued pending settlement, if any, are recorded under Receivables Resulting from Financial Brokerage and/or under Liabilities Resulting from Financial Brokerage, as the case may be. In addition, transactions were carried out directly with customers under the terms and conditions stated above settling differences upon extinction of the agreement. As of December 3, 202, forward purchase and sale transactions amount to $68,728; and $,273,07 while as of December 3, 20 they amounted to $69,544 and $,647,59 respectively. PURCHASESALE OF INTEREST RATE FORWARDS. The Bank trades these products within the environment created by the MAE. The underlying asset is the private banks Badlar interest rate for deposits exceeding million pesos, for a term of 30 to 35 days. Settlement is carried out on a daily basis for the difference between the price or the forward value of the underlying asset agreed upon and the closing price, thus recording an income or a loss for said difference. As of December 3, 202, forward purchase and sale transactions amounted to $20,000; and $02,000, while as of December 3, 20 they amounted to $429,000 and $28,000 respectively. Such transactions are recorded under Memorandum Accounts for the notional value traded. Balances pending settlement, if any, are recorded under Receivables Resulting from Financial Brokerage and/or under Liabilities Resulting from Financial Brokerage, as the case may be. INTEREST RATE SWAPS. These transactions, traded within the framework of the MAE, are settled on a monthly basis for the variation in Pesos between the cash flow calculated at a variable rate (private banks Badlar rate, for a period of 30 to 35 days) and the cash flow calculated at fixed rate on the notional value agreed upon, thus recording an income or loss for said difference. As of December 3, 202, transactions amount to $27,000; while as of December 3, 20 they amounted to $279,000, and were recorded under Memorandum Accounts for the notional value traded. Balances accrued pending settlement, if any, are recorded under Receivables Resulting from Financial Brokerage and/or under Liabilities Resulting from Financial Brokerage, as the case may be. In addition, transactions were carried out with customers which as of December 3, 202 amount to $82,955. As of December 3, 202, the estimated market value for those securities amounts to $,054 (Assets), while as of December 3, 20 they amounted to $876 (Liabilities). CALL OPTIONS BOUGHT AND WRITTEN ON GOLD FUTURES WITHOUT DELIVERY OF THE UNDERLYING ASSET. These transactions have been carried out in order to obtain coverage of the variable rate of the placements foreseen by the Argentine Central Bank received by the Bank. The date of placement, option term and underlying asses coincide with that of the related placement. Notional amounts have been estimated in such a way the compensated amount of derivatives is similar to the investment variable rate. Variations to the underlying asset's value, between the time of agreement and the fiscal year's end, equal to the variable rate, have been recognized in profit / (losses) and are recorded under Receivables Resulting from Financial Brokerage and/or under Liabilities Resulting from Financial Brokerage as appropriate. Premiums collected and/or paid have been accrued on a 62 Banco Galicia Annual Report 202

47 straight line basis during contract's effective period. As of December 3, 202, call options bought and written on gold futures amount to $8,560 and $89,768, respectively, while as of December 3, 20, the Bank recorded call options bought and written for $9,028 and $9,470, respectively. Said transactions are recorded under Memorandum Accounts DebitDerivatives Notional Value of Call Options Bought and under Memorandum Accounts CreditDerivatives Notional Value of Call Options Written. PUT OPTIONS WRITTEN. As established by Section 4, subsection a, and Section 6 of Decree,836/2002 and regulations of the Argentine Central Bank, the Bank granted the holders of Rescheduled Deposit Certificates, who had opted to receive Boden 203 and Boden 202 in lieu of payment of those certificates, an option to sell coupons. As of December 3, 202 and December 3, 20, are valued at exercise price. The exercise price will be equal to that resulting from converting the face value of each coupon in US dollars into pesos at a rate of $.40 per US dollar adjusted by applying the CER variation which arises from comparing the index as of February 3, 2002, to that corresponding to the due date of the coupon. That value shall in no case exceed the principal and interest amounts in Pesos resulting from applying to the face value of the coupon in US Dollars the buying exchange rate quoted by Banco de la Nación Argentina on the payment date of that coupon. These options have been recorded under Memorandum Accounts CreditDerivatives Notional Value of Put Options Written in the amount of $3,06 as of December 3, 202 and $68,5 as of December 3, 20. The Bank's management of financial risks is carried within the limits set by the policies approved by the Board of Directors in such respect. In that sense, derivatives financial instruments issued by the Bank are tools the Bank uses in order limit certain risk exposures and/or as a financial product to develop the Bank's investment and trading strategies. In both cases, the use of these tools takes into account the internal policy framework set forth by the Bank. NOTE 9 NATIONAL SECURITIES COMMISSION Resolution N 368/0. As of December 3, 202, the Bank's equity exceeds that required by the CNV through Resolution No. 368/0 Chapter XIX items 4 and 5 to act as an overthecounter broker. Furthermore, in compliance with Section 32 of Chapter XI of that resolution, as depository of the mutual funds FIMA ACCIONES, FIMA P.B. ACCIONES, FIMA RENTA EN PESOS, FIMA RENTA EN DOLARES, FIMA AHORRO PESOS, FIMA RENTA PLUS, FIMA RENTA CORTO PLAZO, FIMA NUEVO RENTA EN DOLARES, FIMA GLOBAL ASSETS, FIMA RENTA LATINOAMERICANA, FIMA PREMIUM, FIMA AHORRO PLUS, FIMA OBLIGACIONES NEGOCIABLES and FIMA CAPITAL PLUS as of December 3, 202 the Bank holds a total of 2,088,34,26 units under custody for a market value of $3,595,7 which is included in the Depositors of Securities Held in Custody account. At the previous fiscal year end, the securities held in custody by the Bank totaled,45,625,736 units and their market value amounted to $,96,545. NOTE 0 BREAKDOwN OF OTHER ITEMS December 3, Balance Sheet Assets Receivables Resulting from Financial Brokerage s not Included in the Debtor Classification Regulations Participation Certificates and Debt Securities in Financial Trusts without Quotation Receivables Included in the Debtor Classification Regulations Visa Argentina S.A. ATM Noncompensated Funds Accrued Commissions Receivable Advances for Purchase of Assets Allotted to Financial Leases Miscellaneous Receivables Sundry Debtors Guarantee Deposits Tax Prepayments Payments in Advance 202,50,035,484,623 25,42 959, ,66 200,635 4,742 37, ,00 476,924 73,225 20,56 65,35 24,844 2,943 20,347,399,304,385 43,04 475,63 25,6 95,573 40,820 44,582 69, ,623 69, ,302 0,949 6,67,767 Banco Galicia Annual Report

48 NOTE 0 BREAKDOwN OF OTHER ITEMS (CONT.) December 3, Liabilities Liabilities Resulting from Financial Brokerage Collections on Behalf of Third Parties and Liabilities Liabilities for Financing of Purchases Withholdings and Collections IDB Loan Line Programa Global de Crédito a la Micro, Pequeña y Mediana Empresa Our Accounts in Correspondent Banks FONTAR Credit Line for Financing Capital Goods Liabilities Subject to Minimum Cash Requirements Sundry not Subject to Minimum Cash Requirements Accrued Commissions Payable Miscellaneous Liabilities Sundry Creditors Taxes Payable Salaries and Social Security Contributions Payable 202 3,44, ,087,548, ,775 28,80 52,505 8,730 37,24 463,40 55,69 20,06 867, , ,275 9,97 76, ,863,257,023,969,05, ,285 40,23 74,238 26,642 59, ,779 37,206 37,05 579,39 56, ,022 46,994 72,498 Memorandum Accounts Debit Control Securities Held in Custody Bills for Collection Guarantee Agent Activities 30,979,264 6,529,904 6,527,907 6,837,536,083,97 22,529,827,204,875 4,76,946 6,034, ,766 Income Statement Income from Services Fees Earned on Credit Cards Fees Earned on Life Insurance Policies Expenses for Services Turnover Taxes Linked to Credit Cards Miscellaneous Losses Adjustments and Interest on Miscellaneous Liabilities Claims Donations Income / (Loss) from Financial Leases Taken,596,429,042,904 88, , ,823 46, ,236 45,559 43, ,89 3,708,205 20,657,40,33 767,56 57,860 24, ,56 09, ,75 9,45 24, ,855 9, , Banco Galicia Annual Report 202

49 NOTE PUBLICATION OF THE FINANCIAL STATEMENTS Pursuant to the provisions of the Argentine Central Bank, no prior approval from said entity is required in order to publish these financial statements. NOTE 2 CAPITAL STOCK CHANGE. During the last three fiscal years, no changes were recorded: In thousands $ Balance as of ,327 Balance as of ,327 Balance as of ,327 NOTE 3 EQUITY INVESTMENTS (SCHEDULE E) Percentage of participation in the capital stock of other companies: ) Banco Galicia Uruguay S.A. (in Liquidation) 00% 2) Galicia (Cayman) Limited 00% 3) Galicia Valores S.A. Sociedad de Bolsa 99.99% 4) Tarjetas del Mar S.A % 5) Compañía Financiera Argentina S.A % 6) Galicia Administradora de Fondos S.A. Sociedad Gerente de Fondos Comunes de Inversión 95.00% 7) Cobranzas y Servicios S.A % 8) Tarjetas Regionales S.A % 9) Banelco S.A. 6.37% 0) Visa Argentina S.A. 4.43% ) Galicia Warrants S.A. 2.50% 2) Electrigal S.A. 2.50% 3) Net Investment S.A. 2.50% 4) Sudamericana Holding S.A. 2.50% 5) Interbanking S.A..% 6) Aguas Cordobesas S.A % 7) Seguro de Depósitos S.A % 8) Alfer S.A. (in Liquidation) 9.803% 9) Compensadora Electrónica S.A. 8.06% 20) A.E.C. S.A. 7.6% 2) Empresa de Transporte de Energía Eléctrica por Distribución Troncal de Cuyo S.A. (Distrocuyo S.A.) 6.25% 22) Argencontrol S.A % 23) Procesadora Regional S.A. 5.00% 24) Garbin S.A % 25) Mercado Abierto Electrónico S.A..485% 26) Banelsip S.A..25% 27) Banco Latinoamericano de Exportaciones S.A. 0.02% 28) S.W.I.F.T. S.C. 0.07% 29) Garantizar S.G.R % NOTE 4 CORPORATE OwNERSHIP As of December 3, 202, Grupo Financiero Galicia S.A. holds 533,84,765 shares of the Bank, representing % of the capital stock and % of the voting rights. At the end of the previous fiscal year, Grupo Financiero Galicia S.A. held 533,34,765 shares of the Bank, which represented % of the capital stock and % of the voting rights. NOTE 5 PREFERRED LIABILITIES OF THE FORMER BANCO ALMAFUERTE COOP. LTDO. As a consequence of the dissolution of former Banco Almafuerte Coop. Ltdo., the Bank assumed certain preferred liabilities corresponding to 5 (five) branches of said financial institution. As a counterpart, the Bank received a Class A Participation Certificate of the Nues Trust Fund and has been involved in the creation of a Special Fund. Both transactions were implemented pursuant to Resolution Nº 659 of November 27, 998, adopted by the Board of Directors of the Argentine Central Bank within the framework of Section 35 bis, section II, clauses a) and b) of the Financial Institutions Law. On June 30, 2006, the holders of Class A Participation Certificates of the Nues Trust and the contributors to the Special Fund subscribed a new agreement in order to achieve the total repayment of unpaid balances corresponding to Class A Participation Certificates and the subsequent liquidation of the Special Fund. On July 6, 200, the outstanding balance of Class A participation certificates was fully paid and the Special Fund's balance was partially paid, thus generating a remaining balance equal to the original contribution to the fund. As of December 3, 202 the Special Fund's balance amounts to $76,73. As of the prior fiscal year's end, said balance amounted to $74,09. NOTE 6 BREAKDOwN OF TOTAL CREDIT Total Credit encompasses those items for which debtors must be classified according to their quality, which are recorded under the following captions: December 3, Loans Receivables Resulting from Financial Brokerage Receivables from Financial Leases Miscellaneous Receivables Contingent Liabilities Total ,868,230,89, , ,962,638 39,90, ,809,27 639,243 66,840 24,626 3,532,074 28,62,90 Banco Galicia Annual Report

50 NOTE 7 SETTING UP OF FINANCIAL TRUSTS A) Financial trusts in which the Bank acts as trustee outstanding at fiscal year end: Book Value of Securities Held Creation Estimated Transferred (in thousands of $) Trust Name Date Maturity Date Trustee Trust Assets Portfolio Galtrust I First Trust of New Secured Bonds In Pesos US$ 490,224 (*) 673,98 538,768 Galicia (*) The remaining US$ 9,776 was transferred in cash. () In exchange for loans to provincial governments. (2) In exchange for secured loans York N.A. Bapro Mandatos y Negocios S.A. 2% Due 208 () National Government Bonds In Pesos 2% Due 204 (2) $08,000 36,692 2,520 B) In addition, as of December 3, 202, and December 3, 20, the Bank records in its own portfolio financial trusts: Received as repayment of loans granted for $43,9 and $2,924 respectively. Acquired as investments for $305,648 and $35,64 respectively. NOTE 8 ACCOUNTS THAT IDENTIFY THE COMPLIANCE OF THE MINIMUM CASH REQUIREMENTS As of December 3, 202, the balances recorded under the computable items are the following: Item Accounts in the Argentine Central Bank Total Computable Items for Compliance with Minimum Cash Requirements Pesos 3,07,553 3,07,553 Dollars 608, ,794 Effective April, 202, the Argentine Central Bank dismissed the calculation of bills and coins in the Bank and in custody in other Financial Institutions and the cash in transit and in armored truck companies for compliance with the minimum cash requirements in pesos and foreign currencies. For currencies other than pesos, it is accepted to calculate the items mentioned above, as allocation of resources of the Lending Capacity in Foreign Currency. It is temporarily accepted, as from said date and until September 30, 202, for the position in pesos, to deduct from the minimum cash requirement the 00% of the amount paidin during March 202 with the abovementioned items, necessary to achieve a balanced position for that month. The Argentine Central Bank decided to decrease said percentage to 75% for October and November 202, to 25% for the period between December 202 and February 203, until reaching 0 for March 203. Also, the Argentine Central Bank established a schedule for the reduction of the minimum cash requirement percentage for deposits in pesos according to the different deposit collection areas. On the other hand, as from December, 202, the requirement in pesos may decrease according to the percentage participation in credits in pesos granted by the Bank to Micro, Small and Medium Sized companies (MiPyMES) out of total credits to the nonfinancial private sector in said currency. NOTE 9 RISK MANAGEMENT POLICIES The specific tasks related to the overall management of the risks the Bank faces (credit, financial and operational risks) have been allocated to the Risk Management Division, thus ensuring its independence from the remaining business units by reporting directly to the Bank's General Management while being involved in each unit's decisions. The risk managed by the AntiMoney Laundering Unit (control and prevention of asset laundering and funding of terrorist activities and other illegal activities) was added to the risks assigned to the Risk Management Area. Both areas' mission is to assure that the Board of Directors has full knowledge of the risks to which the Bank is exposed and to design and propose the policies and procedures necessary to mitigate and control such risks. FINANCIAL RISKS. The Bank's management of financial risk, short as well as mediumterm, is carried within the limits set by the policies approved by the Board of Directors, which sets the limitations to the different risk exposures and also oversees the relationships among said risks. LIQUIDITY. The daily liquidity management is carried out within a defined strategy that aims at maintaining liquid resources that match the Bank's business needs, harmonizing the balance between profitability and risk and reaching a level of liquidity that is sufficient to mitigate the negative effects that generate uneven variations in loans and deposits, besides from coping with stressful situations. The liquidity policy in force foresees setting limits and monitoring in 66 Banco Galicia Annual Report 202

51 terms of a) stock s liquidity, a Management Liquidity level was set forth as the excess over the minimum cash requirements, taking into account the characteristics and behavior of the Bank's liabilities; the liquid assets that make up said liquidity were also defined and b) flows liquidity, the gaps between maturing consolidated financial assets and liabilities at contractual due dates are prepared and monitored on a monthly basis. There is a maximum limit for maturity mismatches, set in terms of the accumulated gap against total liabilities which is permanently enforced within the first year. There is also a contingency plan, by type of currency, that sets forth the measures to be taken and the assets from which to obtain liquid resources additional to those contemplated by the policy described. In order to mitigate the liquidity risk stemming from the deposit concentration by customer, the Bank has a policy in place that regulates deposit concentration in the largest customers. CURRENCY RISK. In order to manage and mitigate the Currency Risk, two currencies have been defined, besides the Argentine peso: assets and liabilities adjusted by CER and foreign currency. The policy currently in force sets forth technical limitations on maximum positions bought (assets denominated in a certain currency exceeding liabilities denominated in that same currency) and sold (assets denominated in a certain currency that are lower than the liabilities in that same currency) for mismatches in pesos adjustable by CER and in foreign currencies, as a ratio of the Computable regulatory capital (RPC) of the consolidated Bank. This risk management strategy is characterized by a suitable balance between foreign currencydenominated assets and liabilities, seeking to attain longterm full coverage of asset and liabilities' mismatches and allowing for a shortterm management margin on said mismatches that contributes to optimizing certain market situations. Short and longterm goals are attained through appropriately managing assets and liabilities and using the financial products available in our market, specially futures in US Dollar, in institutionalized markets (MAE and ROFEX) as well as in forward transactions carried out with customers. The Bank's currency futures transactions (futures in US Dollar) is subject to the limitations that take into account the characteristics of each negotiation environment. INTERESTRATE RISK. The Bank's exposure to the interestrate risk, as a result of interest rate fluctuations and the different sensibility to Assets and Liabilities is managed within the approved strategy. On one hand, it is based on a shortterm perspective, seeking to preserve the net financial margin within the levels set forth by the policy. On the other hand, a longterm perspective, aiming at minimizing the negative impact on the Bank's Shareholders' Equity economic value before the changes in interest rates. From an allencompassing perspective of all risk exposures and contributing to the addition of a risk premium to the pricing process, one of the Bank's goals is to systematically estimate the economic capital consumed by the balancesheet structural risk (interest rate risk), as well as the contribution to capital consumption by the price risk in its different forms. MARKET RISK. All brokerage transactions and / or investments in government securities, currencies, derivatives and debt securities issued by the Argentine Central Bank listed in the Capital Markets and which value varies in accordance with the fluctuation of the market prices thereof, are included in the Policy that limits the tolerable losses for the fiscal year. The daily management of the price risk (market) is carried out within the approved strategy, which aims at keeping the Bank's presence in the different markets, fixedincome, variable and derivatives markets, obtaining the highest possible return on the brokerage without exposing the Bank to excessive risk levels. Finally, the policy contributes to provide transparency and facilitates the perception of the risk levels the Bank is exposed to. In order to measure and control the risk derived from the price variations of the financial instruments that make up the brokerage or trading portfolio, a model known as Value at Risk (or VaR ) is used, among other methodologies. On an intraday basis and for the Bank on an individual basis, this model measures the potential loss generated by the positions in securities, derivatives, and foreigncurrencies under certain parameters. A method that estimates the changes in value of a portfolio as regards variations of one basic point in the interest rate is applied for the measurement and control of the risk entailed by the brokerage of debt securities issued by the Argentine Central Bank. CROSSBORDER RISK. Foreign trade transaction as well as the management of the Bank's treasury resources imply assuming risk position in international jurisdictions (cross border risk / crossborder loans). These exposures to assets located in foreign jurisdictions are within the framework of the Bank's commercial and financial strategy, which aims at achieving an efficient customer service and optimizing the management of available liquid resources within a suitable riskprofitability environment. TRANSFER RISK. The chance of diversifying sources of funding, which includes the liquidity strategy by gaining foreign capital market resources, involves the potential exposure to regulatory changes that may hinder or increase the cost of transferring currencies abroad in order to fulfill the liabilities assumed. The policy that manages the Risk of Currency Transfers Abroad contributes to the liquidity strategy and aims at reaching a suitable balance between assets with local and foreign counterparts within a returnrisk ratio that matches the Bank's business and growth needs. EXPOSURE TO THE NONFINANCIAL PUBLIC SECTOR. In order to regulate the exposure to the NonFinancial Public Sector at national, provincial or municipal level, the Bank defined a policy which design Banco Galicia Annual Report

52 contemplates risks exposures in each jurisdiction, as well as the potential loss of value associated to certain holdings. CREDIT RISK. The Bank s credit approval and credit risk analysis is a centralized process based on the concept of opposition of interests. This is achieved through the division between the risk management, credit and the origination functions both in the retail and the wholesale businesses. This enables the Bank to achieve an ongoing and efficient control of asset quality, a proactive management of problem loans, aggressive write offs of uncollectible loans, and a conservative loan loss provisioning policy. In addition, it includes the compliance with the portfolio's risk measurement models at operational and customer levels that makes it easier to identify troublesome loans and related losses, which, in turn, allows for the early detection of issues that may entail some level of portfolio deterioration and results in a suitable defense of the Bank's assets. The Credit Risk and Insurance division approves credit risk policies and procedures, checks the fulfillment thereof and continuously assessed credit risks. It is important to highlight the fact that the retail banking approval policy is focused on automatic granting processes. Said processes are based on behavior analysis models. The Bank is strongly focused on attracting payroll deposits which statistically have a more favorable behavior than other kinds of portfolios. Besides, for wholesale banking transactions, granting is based on the credit, cash flow, balance sheet and applicant's analysis based on statistical rating models. During fiscal year 200 the Sector Review Policy was finalized, which sets forth the levels of review for the different economic activities within the private sector portfolio based on the concentration thereof related to the Bank's total funding or computable regulatory capital. The Credit Risk Management Division also monitors the portfolio through different ratios (quality, hedging of irregular loans, arrears, roll rates, etc.), its classification and concentration (through the maximum ratios between the assistance to each customer, it's own computable regulatory capital as well as that of the customers). The portfolio classification, as well as its concentration control, are carried out following the Argentine Central Bank regulations. OPERATIONAL RISK. On July 30, 2008 the Board of Directors approved the Operational Risk Policy pursuant to the guidelines defined on the matter by the Bank within the framework of the provisions of Communiqué A 4793 and supplementary ones issued by the Argentine Central Bank. The Bank progressively implemented an operational risk management system through a schedule set forth in the abovementioned regulation. It also added a database on operational risk events, which complies with the reporting requirements of Communiqué A 4904 issued by the Argentine Central Bank. The Bank implemented the operational risk definition set forth by the Argentine Central Bank and the best international practices, which is the risk of loss resulting from the lack of adjustment or failures within internal procedures, in staff procedures or in systems procedures or those resulting from external events. This definition includes the legal risk, but excludes the strategic and reputational risks. The Board of Directors, the Risk Management Commission, the Risk Management Division, the Operational Risk Unit, the Legal Operational Risk Committee, the Operational Risk Committee and the Business and Support Divisions have clearly defined roles and responsibilities as regards this risk. The Risk Management Division, a functional area reporting to the General Manager, focuses its responsibilities on the comprehensive management of the Bank's risks in its three categories: financial, credit and operational. For the specific management of each case, the Division has a specific unit, which is independent from the other units. The Bank manages the operational risk inherent to its products, activities, processes and relevant systems, technological and data safety processes as well as the risks derived from outsourced business activities and services rendered by suppliers. In addition, before launching or introducing new products, activities, processes or systems, the Bank duly analyzes the inherent operational risk thereof. The Bank's purpose is to have a systematic approach towards Operational Risk Management, focused on fostering continuing improvements in assessment practices to allow identification, assessment, followup, control and mitigation of the various risks related to banking activities. The estimation of the minimum capital requirement for operational risk is carried out pursuant to the Argentine Central Bank's Communiqué A 5272 and supplementary provisions. ASSET LAUNDERING, TERRORISM FUNDING AND OTHER ILLEGAL ACTIVITIES RISK: As regards money laundering control and prevention, the Bank complies with the regulations set forth by the Argentine Central Bank and Law Nº 25,246 and its amendments. Said laws amend the penal code as regards the inclusion of asset laundering to crime definitions and enable the creation of the Financial Information Unit ( UIF ), reporting to the Ministry of Justice. The UIF is the controlling body on the subjectmatter, in charge of the analysis, treatment and transmission of the regulations governing this risk to the individuals subjected to the Law. The Bank has control policies, procedures and structures that are enforced within a risk based approach. Said policies and procedures allow to monitor transactions, pursuant to a customer risk profile in order to detect those transactions that must be deemed unusual and to eventually report them to the UIF, when appropriate. Within the framework of this activity, the Anti MoneyLaundering Unit ( UAL ) is in charge of implementing the control and prevention procedures, as well as its communication to the rest of the organization, through the preparation of the appropriate manuals and training of all employees. Also, this particular risk management is reviewed by internal audit. 68 Banco Galicia Annual Report 202

53 The Bank has appointed a Director in charge of this risk and has created a Committee in charge of planning, coordinating and ensuring the compliance of the policies set forth by the Board of Directors. It is worth mentioning that the basic principle supporting the regulations for the control and prevention of this risk is in line with international best practices in force. NOTE 20 CORPORATE GOVERNANCE TRANSPARENCY POLICY The Board of Directors is the Bank's highest corporate body. It is made up of seven directors and five alternate directors who must have the necessary knowledge and skills to clearly understand their responsibilities and duties within corporate governance and to act with the loyalty and diligence of good businessmen. The Bank complies with suitable standards as regards the total number of directors as well as the number of independent directors. Besides, its bylaws are flexible enough to adapt the number of directors to the potential changes in the conditions the Bank performs under, between three and nine directors. The determination of the number and appointment of Directors, independent as well as nonindependent, is the responsibility of the Ordinary Shareholders Meeting. Out of the seven Directors, two are independent. Besides, three of the Alternate Directors are independent. The concept of independence is defined in the National Securities Commission and the Argentine Central Bank's regulations. As regards the prevention of conflicts of interest, the provisions of the Corporations Law and the Capital Markets Law shall apply. Pursuant to the bylaws, the Directors as well as Alternate Directors hold office for three years, are renewed in thirds (or fraction no lower than three) each year and may be indefinitely reelected. The Board of Directors meets at least once a week and any time one of the Directors so requires and is responsible for the Bank's general management adopting all necessary decisions to that end. Also, the members of the Board of Directors are, to a greater or lesser extent, also members of the Commissions and Committees created and are therefore constantly updated on the Bank's operations and are informed of the decisions made by said bodies, which is duly recorded in the minutes. In addition, the Board of Directors receives the monthly report prepared by the General Manager, which aims at communicating relevant issues and events dealt with in the different meetings between the Board and Senior Management. The Board of Directors is informed of said reports, which is recorded in the minutes. As regards Directors' training and development, the Bank has a program in place which is reviewed every six months under which they regularly attend courses and seminars of different nature and on different topics. It can be said that the Bank's executives, including Directors, have uptodate knowledge and skills and that the Board of Directors works in the most efficient manner to match its current dynamics. According to the activities carried out by the Bank, the legislation in force and corporate strategies, the following committees have been created in order to achieve an effective control of all the activities carried out in the Bank: RISK MANAGEMENT COMMITTEE. This Committee is in charge of approving risk management strategies, policies, processes and procedures and the contingency plans thereof. It is also responsible for setting specific limits for the exposure to each risk and approving, when applicable, temporary excesses over said limits as well as being informed of each risk position and compliance with policies. CREDIT COMMITTEE. Its function is to decide on loans greater than $60,000 and on all loans to be granted to financial institutions (local or foreign) and related customers. ASSETS AND LIABILITIES MANAGEMENT COMMITTEE. It is responsible for analyzing the evolution of the Bank s business from a financial point of view, in regard to fund raising and assets placement; it is also in charge of the follow up and control of liquidity, interest rate and currency mismatches. It is also in charge of analyzing and making recommendations to the business divisions in connection with the management of interest rate, currency and maturity mismatches, with the goal of maximizing financial and foreignexchange results within acceptable parameters of risk and capital use. This Committee is also responsible for suggesting changes of these parameters, if necessary, to the Board of Directors. INFORMATION TECHNOLOGY COMMITTEE. This Committee is in charge of supervising and approving new systems development plans and budgets, as well as supervising these systems budget control. It is also responsible for approving the general design of the systems structure, of the main processes thereof and of the systems implemented as well as supervising the quality of the Bank s systems. AUDIT COMMITTEE (ARGENTINE CENTRAL BANK). The Audit Committee is in charge of assisting, within the framework of its specific duties, the Board of Directors in: ) internal controls, individual and corporate risk management and the compliance with the standards set by the Bank, the Argentine Central Bank and the regulations in force, 2) the financial statements' issuance process, 3) the fitness and independence of the External Auditor, 4) the performance of the internal and external audit, 5) the solution of the observations stemming from internal and external audits, the Argentine Central Bank and other controlling bodies and 6) assess and approve the followup of the implementation of the recommendations made. In addition, it is also responsible for coordinating the duties of the internal and external audits that interact with the financial entity. AUDIT COMMITTEE (NATIONAL SECURITIES COMMISSION). The Banco Galicia Annual Report

54 Capital Market Law sets forth that companies that offer their shares to the public must create an Audit Committee. Said committee's task is to assist the Board of Directors in overseeing the financial statements as well as in controlling the Bank and its controlled and affiliated companies. COMMITTEE FOR THE CONTROL AND PREVENTION OF MONEY LAUNDERING AND FUNDING OF TERRORIST ACTIVITIES. This Committee is responsible for planning, coordinating and looking after compliance with the policies for the prevention and control of money laundering and funding of terrorist activities established and approved by the Board of Directors, based on current regulations. Furthermore, with respect to these matters the Committee is in charge of the design of internal controls, personnel training plans and the control of the fulfillment thereof by the internal audit. COMMITTEE FOR INFORMATION INTEGRITY. It was created to comply with the provisions of the U.S. SarbanesOxley Act. HUMAN RESOURCES COMMITTEE. This Committee is in charge of the appointment and assignment of personnel, transfers, rotation, development, staffing and compensation of personnel within the 9 salary level and higher. PLANNING AND MANAGEMENT CONTROL COMMITTEE. It is in charge of the analysis, definition and followup of the consolidated balance sheet and income statement. SEGMENTS AND BUSINESS MANAGEMENT COMMITTEE. It is in charge of the analysis, definition and followup of business and segments. CRISIS COMMITTEE. It is in charge of assessing the scenario in case of a liquidity crisis and deciding on the corrective measures to be implemented. FINANCIAL COMMITTEE CONSUMER BANKING. It is in charge of carrying an analysis of financial condition and funding needs of the consumer finance companies, as well as the analysis of changes in the loan portfolio. The Bank defines the General Manager and the Division Management reporting to the General Manager as Senior Management. They are detailed as follows: Retail Banking Division Wholesale Banking Division Financial Division Comprehensive Corporate Services Division Organizational Development and Human Resources Division Risk Management Division Credit Division Strategic Planning and Management Control Division The Senior Management's main duties are: Ensuring the Bank's activities are consistent with the business strategy, the policies approved by the Board of Directors and the risks to be assumed. Implementing the policies, procedures and controls necessary to sensibly manage operations and risks, meeting the strategic goals set by the Board of Directors and ensuring it receives relevant, complete and timely information that allows it to assess the administration and analyze if the duties assigned are effectively fulfilled. Monitoring the different division managers consistently with the policies and procedures set forth by the Board of Directors and establishing an effective internal control system. BASIC PROPRIETARY STRUCTURE. The Bank is controlled by Grupo Financiero Galicia S.A., which holds a percentage of the capital stock and votes mentioned in note 4 to the individual financial statements. In turn, the Bank has multiple controlling interests in supplementary companies, as well as minority interests that do not exceed the percentage indicated for companies controlled by their own controlling company. From the corporate standpoint, this structure allows the Bank to leverage relevant synergies that guarantee customer fidelity and additional business. All business relations with said companies, whether permanent or occasional, are carried out under normal, usual market conditions whether the Bank holds a majority or minority interest. The Board of Directors of Grupo Financiero Galicia subjects to the vote of the Shareholders' Meeting the sense of the vote to be granted, as controlling company, in the Bank's Shareholders' Meeting. That transparency and information system regarding the controlling and affiliated companies is applied in the Bank's Shareholders' Meetings which are attended by said companies' directors and officials, and where the Board of Directors provide detailed information on the Company's activities. INFORMATION ON PERSONNEL ECONOMIC INCENTIVE PRACTICES. The definition of Directors' compensation is the responsibility of the Ordinary Shareholders Meeting and is set within the limits set forth by the law and the corporate bylaws. The Human Resources Committee sets the policy for compensation of the Bank s personnel. The Management Assessment System has been designed by including qualitative and quantitative KPI (Key Performance Indicators). Also, the Bank has variable compensation and economic incentive policies for the rest of the personnel which are linked to the results of their performance assessment and the Bank's results. The conclusions of the variable compensation system and amendments are analyzed by the Human Resources Committee. BUSINESS CONDUCT POLICY AND/OR CODE OF ETHICS. The Bank has a Code of Ethics formally approved that governs its policies and activities; it includes issues related to the objectivity of business and 70 Banco Galicia Annual Report 202

55 conflicts of interests and how the contributor must act before a breach of the Code of Ethics, giving notice to the Organizational Development and Human Resources Division. NOTE 2 STATEMENT OF CASH FLOwS The assets considered as cash and cash equivalents are: cash and due from banks and those assets held in order to fulfill shortterm commitments, which enjoy a high level of liquidity, are easily convertible into known amounts of cash, are subject to insignificant changes in value and mature within three months from the date of their acquisition. The breakdown is as follows: December 3, 202 Cash and Due from Banks 7,957,258 Securities Issued by the Argentine Central Bank 2,202,08 Interbank Loans (Call Money Loans Granted) 84,000 Overnight Placements with Banks Abroad 244,405 Repurchase Agreement Transactions with the Argentine Central Bank in US Dollars Repurchase Agreement Transactions with the Argentine Central Bank and Entities in Pesos Cash and Cash Equivalents 0,487,77 The following table shows the reconciliation between the items considered cash and cash equivalents and the corresponding Balance Sheet items: December 3, 202 Securities Issued by the Argentine Central Bank Due Date Under Three Months (*) 2,202,08 Due Date Over Three Months 30,66 Total Securities Issued by the Argentine Central Bank 2,332,724 Loans To the Financial Sector Interbank Loans (Call Money Loans Granted) Due Date Under Three Months (*) 84,000 Due Date Over Three Months Total Interbank Loans (Call Money Loans Granted) 84,000 Overnight Placements in Foreign Banks (*) 244,405 Prefinancing of Exports,536,73 Loans 78,509 Total s,859,645 Receivables Resulting from Financial Brokerage Argentine Central Bank 20 6,53,2,727,708 26,000 32,429 40,597,320,53 9,400,008 20,727,708 2,969,700 4,697,408 26,000 26,000 32,429 2,444,756 4,702 2,49, ,49,95,023,935 32,500,748 6,588, ,023,935 8,499,835,434 32,500 32,500,748 2,030,672 48,309 2,90,729 December 3, 202 Repurchase Agreement Transactions with the Argentine Central Bank in US Dollars (*) Due Date Over Three Months 673,256 Total Argentine Central Bank 673,256 Amounts Receivable for Spot to be Settled and Forward Sales Repurchase Agreement Transactions with the Argentine Central Bank and Entities in Pesos (*) Amounts Receivable for Spot to be Settled and Forward Sales 83,929 Total Amounts Receivable for Spot to be Settled and Forward Sales 83,929 (*) Deemed a cash equivalent. NOTE 22 CONTINGENCIES 20 40,597 5,78 552,378,320,53 55,068,375, , ,384 A) TAX ISSUES. At the date of these financial statements, there are several review and assessment processes ongoing, at different progress stages, initiated by the provincial and Autonomous City of Buenos Aires' Tax Authorities basically in connection with the Compensatory Bond set forth by the National Government in order to compensate financial institutions for the losses resulting from the asymmetric pesification of loans and deposits. As regards this decision by the Autonomous City of Buenos Aires, within the framework of the legal actions initiated by the Bank in order to challenge the tax assessment, a preliminary injunction for the amount corresponding to the Compensatory Bond was granted by the Federal Chamber of Appeals on Administrative Litigation and ratified by the Supreme Court. Therefore, the Court instructed the AGIP to refrain from initiating the tax foreclosure or taking any precautionary measures in this regard. As regards other claims by the Autonomous City of Buenos Aires, the Bank adhered to a Restructuring Plan for Tax Debt in Arrears (Law Nº 3,46 and supplementary regulations) which included the total waiver of interest and fines. Said adherence was informed through the corresponding court records before the pertinent judicial authorities. As regards other claims by the different jurisdictions, the Bank has been expressing its disagreement as regards the adjustments set forth by the appropriate administrative and/or judicial authorities. These processes and the potential impacts thereof are being constantly monitored by the Bank's Management and although the Bank deems all of its tax obligations to have been complied in line with the regulations in force, provisions deemed suitable according to each process's status have been established. B) CONSUMERS' ASSOCIATIONS. Consumer associations claiming to represent consumers have filed claims against the Bank in relation to certain financial charges. 56,853 56,853 Banco Galicia Annual Report 202 7

56 The Bank deems the resolution of these issues shall no have a significant impact on its shareholders' equity. NOTE 23 INCOME PER SHARE As of December 3, 202 and 20, the Bank estimates the net earnings per share based on 562,326,65 shares with a face value of $. Net income / (loss) for the fiscal years then ended is the following: Net Income / (Loss) for the Fiscal Year Income Earnings per Share ,30, NOTE 24 CREDIT LINE FOR PRODUCTIVE INVESTMENT ,07, The Argentine Central Bank set forth the terms and conditions for granting loans under the "Credit line for investment projects" program, aimed at funding investment projects with specific purposes. Minimum allocations for said line's placement are: 202 quota: 5% of the monthly average of daily balances of deposits in pesos from the nonfinancial private sector corresponding to June quota: 5% of the abovementioned deposits estimated on the balance as of the end of November 202. The interest rate to be received by financial entities shall be of up a 5.0% nominal annual fixedrate for the 202 quota and 5.25% nominal annual fixedrate for the 203 quota for a minimum term of 3 years. For the remaining term, a floating rate not exceeding the BADLAR rate plus 400 basis points may be applied. As of the end of this fiscal year, the Bank has complied with the loan placement pursuant to the conditions set forth by the Argentine Central Bank for the 202 quota. NOTE 25 MINIMUM CAPITALS SYSTEM The Argentine Central Bank introduced amendments to the regulation of Financial Entities Minimum Capital Requirements. These amendments to the minimum capital requirement for credit risk will become effective as from January, while those corresponding to the computable regulatory capital will do so on February, 203. While to date the Bank is undergoing a process of analysis and calculation of the effects stemming from said changes, it is estimated that said changes will not have a significant impact as regards the regulations in force. NOTE 26 CAPITAL MARKET LAw Law Nº 26,83 on the Capital Market was enacted in December 202 and includes the overall amendment of the public offering system set forth by Law Nº 7,8 and also changes to the authorization, control and oversight procedures of all public offering stages, as well as the performance of all entities and individuals under its scope. This law has become effective on January 28, 203. At the date of preparation of these Financial Statements, the National Securities Commission has not issued the applicable regulations. Signed for purposes of identification José L. Ronsini Bruno Folino Sergio Grinenco with our report dated Accounting Manager Strategic Planning and Chairman PRICE WATERHOUSE & CO. S.R.L. Management Control Manager C.P.C.E.C.A.B.A. T F 7 Edgardo H. Sajón (Partner) Enrique M. Garda Olaciregui Norberto D. Corizzo Luis A. Díaz Public Accountant (U.B.) Syndic Syndic Syndic C.P.C.E.C.A.B.A. T 29 F Banco Galicia Annual Report 202

57 Price Waterhouse & Co.SRL A member of PricewaterhouseCoopers 557 Bouchard St., 7th floor C06ABG Autonomous City of Buenos Aires Ph. (54) Fax (54) AUDITORS' REPORT To the Chairman and Directors of Banco de Galicia y Buenos Aires S.A. Legal domicile: 407 Tte. Gral. Juan D. Perón St. Autonomous City of Buenos Aires C.U.I.T. N We have performed an audit of the Balance Sheet of Banco de Galicia y Buenos Aires S.A. ( the Bank ) as of December 3, 202 and 20, and the related income statements and statement of cash flows for the fiscal years then ended and the statement of changes in shareholders equity for the fiscal year ended on December 3, 202, together with supplementary Notes to 26 and Schedules A, B, C, D, E, F, G, H, I, J, K, L, N and O, and the profit distribution project which supplement them. Furthermore, we have examined the consolidated Balance Sheet of the Bank as of December 3, 202 and 20, and the consolidated income statements and consolidated statements of cash flows for the fiscal years then ended, together with Notes to 0 and the consolidated statement of debtors status, which are presented as supplementary information. The preparation and issuance of those financial statements are the responsibility of the Bank. Our responsibility is to issue an opinion on the financial statements based on the audit we performed. 2. Our examinations have been carried out in accordance with the auditing standards applicable in Argentina and with the requirements of the Minimum Standards on External Audits issued by the Argentine Central Bank. Said auditing standards require auditors to plan and carry out the auditing work in order to obtain reasonable assurance that the financial statements are free of material errors, and form an opinion on the fairness of the relevant information disclosed in the financial statements. An audit involves examining, on a selective test basis, the evidence supporting the amounts and the information disclosed in the financial statements. An audit also involves assessing the accounting standards used and the significant estimates made by the Bank, as well as evaluating the overall presentation of the financial statements. We believe that the audits performed provide a reasonable basis for our opinion. 3. The Bank has prepared the attached financial statements following valuation and disclosure criteria established by the Argentine Central Bank regulations which, as supervisory entity for financial institutions, had set forth through Circular CONAU and amendments. However, as mentioned in Note.3 to the financial statements, the criteria for valuing certain assets and liabilities and the regulations on financial reporting issued by the control body differ from the professional accounting standards applicable in the Autonomous City of Buenos Aires. 4. In our opinion: a) the financial statements of Banco de Galicia y Buenos Aires S.A. present fairly, in all material respects, its financial condition as of December 3, 202 and 20, the results of operations and the cash flows for the fiscal years then ended as well as the change in its shareholders equity for the fiscal year ended December 3, 202, in accordance with Argentine Central Bank regulations and, except for the departures from professional accounting standards stated in item 3 above, with accounting standards applicable in the Autonomous City of Buenos Aires, b) the consolidated financial statements of Banco de Galicia y Buenos Aires S.A. and its controlled companies present fairly, in all material respects, their consolidated financial condition as of December 3, 202 and 20, and the consolidated results of their operations and the consolidated cash flows for the fiscal years then ended, in accordance with Argentine Central Bank regulations and, except for the departures from professional accounting standards stated in item 3 above, with accounting standards applicable in the Autonomous City of Buenos Aires, 5. As called for by the regulations in force, we report that: a) The Bank s financial statements and consolidated financial statements have been transcribed to the Inventory and Balance Sheet book and, insofar as concerns our field of competence, are in compliance with the provisions of the Corporations Law, and pertinent resolutions of the Argentine Central Bank and the National Securities Commission; b) the Bank s financial statements stem from accounting record systems kept in all formal respects as called for by prevailing legal regulations and Argentine Central Bank regulations, which systems maintain the security and integrity conditions based on which they were authorized by the National Securities Commission; c) as of December 3, 202, the Bank's accrued debt with the Integrated Pension and Survivor s Benefit System, which stems from the accounting records accrued amounted to $40,603,844.3, which was not yet due as of that date; d) pursuant to the requirements of Section 4 of General Resolution Nº 400 issued by the C.N.V., amending Section 8 subsection e) of Section III.9.. of said Commission's regulations, we hereby inform that the total fee for audit and related services invoiced by Price Waterhouse & Co. S.R.L., Price Waterhouse & Co. Asesores de Empresas S.R.L. and PricewaterhouseCoopers Jurídico Fiscal S.R.L. (hereinafter the three companies jointly referred to as PwC Argentina ) to the Bank during the fiscal year ended on December 3, 202 accounts for: d) 75 % of the total service fee invoiced by PwC Argentina to the Bank including all concepts in said fiscal year; Banco Galicia Annual Report

58 d2) 36 % of the total fee for audit and related services invoiced by PwC Argentina to the Bank, its controlling, controlled and related companies during said fiscal year; d3) 3 % of the total service fee invoiced by PwC Argentina to the Bank, its controlling, controlled and related companies including all concepts during said fiscal year; e) we have applied all procedures on the prevention of asset laundering and funding of terrorist activities set forth in the corresponding professional standards issued by the Professional Council in Economic Sciences of the Autonomous City of Buenos Aires. Autonomous City of Buenos Aires, February 4, 203. PRICE WATERHOUSE & CO. S.R.L. (Partner) C.P.C.E.C.A.B.A. T F 7 Dr. Edgardo H. Sajón Public Accountant (U.B.) C.P.C.E.C.A.B.A. Tº 29 Fº Banco Galicia Annual Report 202

59 REPORT OF THE SUPERVISORY COMMITTEE To the Directors and Shareholders of Banco de Galicia y Buenos Aires S.A. 407 Tte. Gral. Juan D. Perón St. Autonomous City of Buenos Aires. In our capacity as members of the Supervisory Syndics Committee of Banco de Galicia y Buenos Aires S.A., in accordance with the provisions set out in Section 294(5) of Corporations Law, we have reviewed the Annual Report, Inventory and Balance Sheet of Banco de Galicia y Buenos Aires S.A. (the Bank ) as of December 3, 202, and the related Income Statement, Statement of Changes in Shareholders' Equity and Statement of Cash Flows for the fiscal year then ended, as well as supplementary Notes to 26, Schedules A, B, C, D, E, F, G, H, I, J, K, L, N and O and the proposed distribution of profits, which have been submitted by the Bank to our consideration. Furthermore, we have reviewed the Bank s consolidated financial statements, with its controlled companies, for the fiscal year ended December 3, 202, Notes to 0 and the Consolidated Statement of Debtor s Status, which are disclosed as supplementary information. The preparation and issuance of those financial statements are the responsibility of the Bank. Our responsibility is to issue a report on said documents. 2. Our work was conducted in accordance with standards applicable to syndics in Argentina. Said standards require our examination to be performed in accordance with the professional auditing standards applicable in Argentina and issued by the Argentine Central Bank, and include verifying the consistency of the documents reviewed with the information concerning corporate decisions, as disclosed in minutes, and the conformity of those decisions with the law and the bylaws insofar as concerns formal and documental aspects. For purposes of our professional work, we have reviewed the work performed by the external auditors of the Bank, Price Waterhouse & Co. S.R.L., who issued their audit report on February 4, 203. Said review included verifying the work plans and the nature, scope and timing of the procedures applied and of the results of the audit performed by the abovereferred professionals. An audit requires auditors to plan and carry out the auditing work in order to obtain reasonable assurance that the financial statements are free of material misstatements or errors, and express an opinion on the fairness of the material information disclosed in the financial statements. An audit involves examining, on a selective test basis, the evidence supporting the amounts and the information disclosed in the financial statements, an assessment of the applied accounting standards and significant estimates made by the Bank, as well as an evaluation of the general presentation of the financial statements. Given that it is not the responsibility of the Committee to exercise any management control, our examination did not extend to the business criteria and decisions of the different areas of the Bank, as these matters are the exclusive responsibility of the Bank s Board of Directors. We also report that, in compliance with the legality control that is part of our field of competence, during this fiscal year we have applied the procedures described in Section 294 of Law No. 9550, which we deemed necessary according to the circumstances. As regards the Annual Report, we have verified that it contains the information required by Section 66 of Corporations Law and other applicable legal regulations and, insofar as concerns our field of competence, that the numerical data contained therein are in agreement with the Bank s accounting records and other relevant documentation. Assumptions and projections on future events contained in that documentation are the exclusive responsibility of the Board of Directors. We believe that the work we performed provides a reasonable basis for our opinion. 3. The Bank has prepared these financial statements following the valuation and disclosure criteria established by Argentine Central Bank regulations. As mentioned in Note.3 to the financial statements, the abovementioned valuation criteria regarding certain assets and liabilities, and the regulations on the financial reporting issued by the control body, differ from the Argentine professional accounting standards in force in the Autonomous City of Buenos Aires. 4. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial condition of Banco de Galicia y Buenos Aires S.A. as of December 3, 202, the results of its operations, the statements of changes in shareholders equity and cash flows for the fiscal year then ended, and the consolidated financial condition as of December 3, 202, the consolidated results of its operations and the consolidated cash flows for the fiscal year then ended, in accordance with Argentine Central Bank regulations and, except as indicated in paragraph 3 above, with the professional accounting standards in force in the Autonomous City of Buenos Aires. In compliance with the legality control that is part of our field of competence, we have no observations to make. In relation to the Annual Report and the Report on the Code on Good Banco Galicia Annual Report

60 Corporate Governance Practices for the fiscal year ended December 3, 202, we have no observations to make insofar as concerns our field of competence, and the assertions on future events are the exclusive responsibility of the Board of Directors. 5. Furthermore, we report the following: a) the accompanying financial statements and the corresponding inventory stem from accounting records kept, in all formal aspects, in compliance with legal regulations prevailing in Argentina; b) as called for by Resolution No. 368 of National Securities Commission ( CNV ) concerning the independence of external auditors as well as the quality of the auditing policies applied by them and the Company s accounting policies, the abovementioned external auditor s report includes a representation indicating that the auditing standards in force have been observed, which include independence requirements, and contain no observations relative to the application of said professional accounting standards, except as mentioned in their report as concerns the application of the rules issued by the Argentine Central Bank, which prevail over the professional accounting standards. Autonomous City of Buenos Aires, March, 203. Enrique M. Garda Olaciregui Syndic Lawyer C.P.A.C.F. T 5 F 730 Norberto D. Corizzo Syndic Public Accountant C.P.C.E.C.A.B.A. T 75 F 226 Luis A. Díaz Syndic Public Accountant C.P.C.E.C.A.B.A. T 83 F Banco Galicia Annual Report 202

61 NOTICE OF SHAREHOLDERS MEETING All shareholders of Banco de Galicia y Buenos Aires Sociedad Anónima are invited to the Ordinary Shareholders Meeting to be held on April 5, 203, at 4:00 PM (first call), at 430 Tte. Gral. Juan D. Perón St., BasementAuditorium, Buenos Aires (not the Company s registered office), for consideration of the following matters: AGENDA º The designation of two shareholders to sign the minutes. 2º A review of the Balance Sheet, Income Statement and other documents as set forth by Section 234, subsection, of the Corporations Law and the Annual Report and Report of the Syndics Committee for the 08th fiscal year ended December 3, º The treatment to be given to the fiscal year's results. 4º The approval of the performance of the Board of Director and the Supervisory Syndics Committee. 5º The compensation for the Supervisory Syndics Committee. 6º The compensation for the Directors. 7º The authorization for the Board of Directors to make payments in advance on account of fees owed to those directors who, during the fiscal year beginning on January, 203, qualify as independent directors, subject to the shareholders approval at the Shareholder s Meeting, which approval shall include a review of the documentation corresponding to said fiscal year. 8º The determination of the number of directors and alternate directors to hold office and, if the case may be, their election for the terms of office as set forth by the Corporate Bylaws, until the number of directors has reached the amount set by the Shareholders Meeting. the Global Program for the issuance of ordinary non convertible, short, mid and long term Negotiable Obligations, for a maximum outstanding amount of US$342,500,000 (US Dollars three hundred forty two million five hundred thousand), or its equivalent in any other currency, in the amount of up to US$300,000,000 (US Dollars three hundred millions), or its equivalent in any other currency, increasing it up to US$642,500,000 (US Dollars six hundred and forty two million five hundred thousand), or its equivalent in any other currency. Delegation upon the Board of Directors and/or subdelegation upon one or more of its members and/or in one or more managers of the Company and/or the ones designed by them according to the regulations in force, including the power of deciding the Program s remaining terms and conditions. Due to regulations in force, we certify that during the fiscal year under consideration no circumstance of those listed in the two paragraphs of Article 7 of the Law N 26,83 had taken place. NOTES. Shareholders are hereby notified that, in order to attend the Meeting, they must deliver a certificate evidencing their bookentry shares, as issued by Caja de Valores S.A., not later than April 9, 203 (from 0:00 a.m. to 3:00 p.m.), at 407 Tte. Gral. Juan D. Perón St., 6th. Floor, Autonomous City of Buenos Aires, so that the shares can be registered in the Meeting s Attendance Record Book. Furthermore, shareholders are hereby reminded that, pursuant to Section 3 of the Corporate Bylaws, the right to attend the Meeting may be exercised either personally or by delegation to another shareholder. 2. Shareholders are hereby reminded that the National Securities Commission requires compliance with the procedures set forth in Resolution 465/04. 9º The election of three syndics and three alternate syndics for a oneyear term. 0º The compensation for the independent accountant that certified the Financial Statements for fiscal year 202. º The appointment of the independent accountant and alternate accountant who will certify the Financial Statements for fiscal year º Reiteration of the increase of the amount corresponding to Banco Galicia Annual Report

62 ADDITIONAL INFORMATION STOCK AND EPS EVOLUTION (*) Fiscal Year Market Price Shares (in Pesos, Historical Values) () High Low Close Trading Volume (in Thousands of Shares) Buenos Aires Stock Exchange () Shares Outstanding (in Thousands of Shares) Primary (2) Earnings per Share (in Pesos) Primary (*) Buenos Aires Stock Exchange: GALI. Prices correspond to historical values, and therefore are stated in current Pesos. () Source: Buenos Aires Stock Exchange. (2) The Bank has a simple capital structure and, therefore, does not present fully diluted earnings per share. 4th 3rd 2nd st 4th 3rd 2nd st 4th 3rd 2nd st , , , ,62 6,50 7, ,327 0, , , , , , , , , LOCAL RATINGS Banco de Galicia y Buenos Aires S.A. Counterparty Rating Standard & Poor s Medium/LongTerm Debt () (2) Standard & Poor s Moody s Evaluadora Latinoamericana Subordinated Debt () (3) Standard & Poor s Moody s Evaluadora Latinoamericana Deposits Standard & Poor s Long Term Standard & Poor s Short Term Moody s Local Currency Moody s Foreign Currency Trustee Moody s Tarjeta Naranja S.A. Medium/LongTerm Debt () (4) Fitch Argentina ShortTerm Debt () (5) Fitch Argentina Tarjetas Cuyanas S.A. LongTerm Debt () (6) Fitch Argentina ShortTerm Debt () (7) Fitch Argentina ra A ra A A2.ar AAra A A2.ar A+ ra A ra A Aa3.ar Ba.ar TQ().ar AA (arg) A+ (arg) AA (arg) A (arg) Compañía Financiera Argentina S.A. LongTerm Debt () (8) Fitch Argentina Moody s ShortTerm Debt () (9) Fitch Argentina Moody s Deposits Moody s Local Currency Moody s Foreign Currency INTERNATIONAL RATINGS Banco de Galicia y Buenos Aires S.A. Standard & Poor s () (2) Moody s () (2) Tarjeta Naranja S.A. Medium/LongTerm Debt () (0) Fitch Argentina AA (arg) () See Management s Discussion and Analysis of Financial Condition and Results of Operations Funding and Liabilities, Debt Securities table. (2) Class I Negotiable Obligations Due 208. (3) Subordinated Negotiable Obligations Due 209. (4)Class XIII, Class XIV Series II, Class XVI Series II, Class XVII Series I and II, Class XVIII Series II and Class XIX Series II Negotiable Obligations. (5) Class XIII Series I and Class XIX Series I Negotiable Obligations. (6)Class V Series II, Class VI Series II, Class VII Series II, Class VIII Series II and Class IX Series II Negotiable Obligations. (7) Class VIII Series I and Class IX Series I Negotiable Obligations. (8)Class IV Series II, Class V Series II, Class VI Series II and Class VII Series II Negotiable Obligations. (9) Class VI Series I and Class VII Series I Negotiable Obligations. (0) Class XIII Negotiable Obligations. Aa3.ar A+ (arg) Aa3.ar Aa3.ar Ba.ar B B3 B 78 Banco Galicia Annual Report 202

63 CORPORATE INFORMATION OFFICES Banco de Galicia y Buenos Aires S.A., Head Office 407 Tte. Gral. Juan D. Perón St. (C038AAI) Buenos Aires, Argentina Ph.: (54) () Fax.: (54) () QUOTATION Banco de Galicia y Buenos Aires S.A. s class B ordinary shares are listed on the Buenos Aires Stock Exchange, under the ticket symbol GALI. Certain debt securities are listed on the Córdoba Stock Exchange, the Mercado Abierto Electrónico (the Argentine overthecounter market) and the Luxembourg Stock Exchange. ANNUAL SHAREHOLDERS MEETING The annual meeting of the shareholders of Banco de Galicia y Buenos Aires S.A. will be held on April 5, 203 at 4.00 P.M., at the basement auditorium of 430 Teniente General Juan Domingo Perón St., Autonomous City of Buenos Aires, Argentina. TRANSFER AGENT AND REGISTRAR Caja de Valores S.A de Mayo St. (C002ABH) Buenos Aires, Argentina Ph : (54) () CONTACTS Relations with Investors Ph : (54) () Fax.: (54) () pablo.firvida@bancogalicia.com.ar Financial information. Request of annual reports, financial statements, press releases, prospectuses. Institutional Affairs Ph : (54) () Fax.: (54) () General information. Banco Galicia Annual Report

64