BANCO DE GALICIA Y BUENOS AIRES S.A. Page 1 of 64 FINANCIAL STATEMENTS

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1 BANCO DE GALICIA Y BUENOS AIRES S.A. Page 1 of 64 FINANCIAL STATEMENTS For the fiscal year N 98 commenced January 1, 2002 and ended December 31, 2002 presented in comparative format with the non-annual fiscal period of six months ended December 31, Stated in thousands of Dollars as of December 31, COMPANY s NAME: BANCO DE GALICIA Y BUENOS AIRES S.A. LEGAL ADDRESS: Tte. Gral. Juan D. Perón 407, Buenos Aires. PRINCIPAL LINE OF BUSINESS: Domestic Capital Private-Sector Commercial Bank. DATE OF REGISTRATION OF BY-LAWS: November 21, WITH THE COMMERCIAL COURT OF RECORD OF THE FIRST AMENDMENT TO THE BY-LAWS: November 30, 1909 and subsequent amendments, the latest being on November 30, 2001 N 16,440 Book 16 REGISTRATION NUMBER WITH THE CORPORATION CONTROL AUTHORITY: 698. EXPIRY OF COMPANY S LIFE: June 30, INFORMATION ON CONTROLLED ENTITIES: See Schedule E and Note 16 to the Financial Statements and in a Note to the Consolidated Financial Statements (Art. 33 Law N 19,550) CAPITAL STATUS: See Schedule K. NAME OF THE CONTROLLING COMPANY: Grupo Financiero Galicia S.A. LEGAL ADDRESS: Tte.gral. Juan D. Perón 456 2do.piso -Buenos Aires - Argentina. PRINCIPAL LINE OF BUSINESS: Financial and Investment Activities. PERCENTAGE OF EQUITY INTEREST HELD BY THE CONTROLLING COMPANY: 93,585537% (Note 19). PERCENTAGE OF VOTES TO WHICH THE CONTROLLING COMPANY IS ENTITLED: 93,585542% (Note 19).

2 BANCO DE GALICIA Y BUENOS AIRES S.A. Page 2 of 64 FINANCIAL STATEMENTS T A B LE O F C O N T E N T S CONSOLIDATED FINANCIAL STATEMENTS..Pages 3 to 16 INDIVIDUAL FINANCIAL STATEMENTS...Pages 17 to 64 AUDITORS REPORT REPORT OF THE SUPERVISORY SYNDICS COMMITTEE

3 BANCO DE GALICIA Y BUENOS AIRES S.A. Page 3 of 64 CONSOLIDATED STATEMENT OF FINANCIAL CONDITION (Section 33 of Law 19550) Supplementary Information to the Annual Financial Statements FIGURES STATED IN THOUSANDS OF U.S. DOLLARS ASSETS FOR THE FISCAL YEAR ENDED AS COMPARED WITH THE NON-ANNUAL FISCAL PERIOD OF SIX MONTHS ENDED CASH AND DUE FROM BANKS 159, ,498 - CASH 70, ,388 - BANKS AND CORRESPONDENTS 88, ,067 - OTHER - 43 GOVERNMENT AND CORPORATE SECURITIES 538,007 77,620 - HOLDINGS OF INVESTMENT ACCOUNT SECURITIES 493, HOLDINGS OF TRADING SECURITIES 1,702 34,622 - UNLISTED GOVERNMENT SECURITIES 43,095 42,606 - INVESTMENTS IN LISTED CORPORATE SECURITIES ALLOWANCES (116) (75) LOANS 2,809,053 5,901,399 - TO THE NON-FINANCIAL PUBLIC SECTOR 2,250,592 2,555,689 - TO THE FINANCIAL SECTOR 39,720 56,255 - TO THE NON-FINANCIAL PRIVATE SECTOR AND RESIDENTS ABROAD 940,100 3,599,061 - OVERDRAFTS 62, ,097 - NOTES 273,227 1,146,384 - MORTGAGE LOANS 224, ,273 - PLEDGE LOANS 17, ,171 - CONSUMER LOANS 35, ,969 - CREDIT CARD LOANS 172, ,797 - OTHER 50, ,001 - ACCRUED INTEREST, ADJUSTMENTS AND QUOTATION DIFFERENCES RECEIVABLE 106, ,592 - (UNALLOCATED COLLECTIONS) (646) (1) - (DOCUMENTED INTEREST) (3,193) (16,222) - ALLOWANCES FOR LOAN LOSSES (421,359) (309,606) OTHER RECEIVABLES RESULTING FROM FINANCIAL BROKERAGE 2,679,643 1,123,898 - ARGENTINE CENTRAL BANK 16,481 39,688 - AMOUNTS RECEIVABLE FOR SPOT AND FORWARD SALES TO BE SETTLED ,689 - SECURITIES TO BE RECEIVED UNDER SPOT AND FORWARD PURCHASES TO BE SETTLED ,635 - PREMIUMS ON OPTIONS BOUGHT OTHER RECEIVABLES NOT INCLUDED IN THE DEBTOR CLASSIFICATION REGULATIONS 2,454, ,884 - UNLISTED NEGOTIABLE OBLIGATIONS 14,477 52,625 - OTHER RECEIVABLES INCLUDED IN THE DEBTOR CLASSIFICATION REGULATIONS 199,809 61,229 - ACCRUED INTEREST AND ADJUSTMENTS RECEIVABLE NOT INCLUDED IN THE DEBTOR CLASSIFICATION REGULATIONS 1, ACCRUED INTEREST AND ADJUSTMENTS RECEIVABLE INCLUDED IN THE DEBTOR CLASSIFICATION REGULATIONS ALLOWANCES (8,167) (4,284) ASSETS UNDER FINANCIAL LEASES 6,664 28,720 - ASSETS UNDER FINANCIAL LEASES 7,389 29,052 - ALLOWANCES (725) (332) EQUITY INTERESTS IN OTHER COMPANIES 31,422 43,951 - IN FINANCIAL INSTITUTIONS 77, OTHER 45,971 53,183 - ALLOWANCES (91,814) (9,900)

4 BANCO DE GALICIA Y BUENOS AIRES S.A. Page 4 of 64 MISCELLANEOUS RECEIVABLES 88, ,501 - RECEIVABLES FOR ASSETS SOLD OTHER 94, ,753 - ACCRUED INTEREST ON AND ADJUSTMENTS TO RECEIVABLES FOR ASSETS SOLD OTHER ACCRUED INTEREST AND ADJUSTMENTS RECEIVABLE ALLOWANCES (6,049) (9,826) BANK PREMISES AND EQUIPMENT 160, ,788 MISCELLANEOUS ASSETS 53,758 68,773 INTANGIBLE ASSETS 88, ,704 - GOODWILL 44,726 75,581 - ORGANIZATION AND DEVELOPMENT EXPENSES 43,518 63,123 UNALLOCATED ITEMS 5,944 20,151 TOTAL ASSETS 6,621,260 8,157,003

5 LIABILITIES BANCO DE GALICIA Y BUENOS AIRES S.A. Page 5 of 64 DEPOSITS 1,402,942 4,035,751 - NON-FINANCIAL PUBLIC SECTOR 2,307 7,488 - FINANCIAL SECTOR ,441 - NON-FINANCIAL PRIVATE SECTOR AND RESIDENTS ABROAD 1,399,766 4,016,822 - CURRENT ACCOUNTS 218, ,638 - SAVINGS ACCOUNTS 101, ,476 - TIME DEPOSITS 652,299 2,078,884 - INVESTMENT ACCOUNTS - 52,352 - OTHER 307, ,512 - ACCRUED INTEREST, ADJUSTMENTS AND QUOTATION DIFFERENCES PAYABLE 119,386 38,960 OTHER LIABILITIES RESULTING FROM FINANCIAL BROKERAGE 4,370,469 3,105,785 - ARGENTINE CENTRAL BANK 2,389,534 1,011,378 - REDISCOUNTS TO COVER LACK OF LIQUIDITY 1,606, ,539 - OTHER 782, ,839 - BANKS AND INTERNATIONAL ENTITIES 938, ,503 - UNSUBORDINATED NEGOTIABLE OBLIGATIONS 558, ,083 - AMOUNTS PAYABLE FOR SPOT AND FORWARD PURCHASES TO BE SETTLED ,690 - SECURITIES TO BE DELIVERED UNDER SPOT AND FORWARD SALES TO BE SETTLED 36, ,533 - LOANS FROM DOMESTIC FINANCIAL INSTITUTIONS 59, ,674 - OTHER 304, ,344 - ACCRUED INTEREST, ADJUSTMENTS AND QUOTATION DIFFERENCES PAYABLE 82,077 24,580 MISCELLANEOUS LIABILITIES 30,343 57,805 - DIVIDENDS PAYABLE FEES 614 1,653 - OTHER 29,715 56,119 - ACCRUED INTEREST AND ADJUSTMENTS PAYABLE - 3 PROVISIONS 361,583 21,610 UNALLOCATED ITEMS 3,139 7,346 MINORITY INTERESTS (4,638) 17,725 TOTAL LIABILITIES 6,163,838 7,246,022 SHAREHOLDERS' EQUITY 457, ,981 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 6,621,260 8,157,003

6 MEMORANDUM ACCOUNTS BANCO DE GALICIA Y BUENOS AIRES S.A. Page 6 of 64 DEBIT 7,033,630 10,587,053 CONTINGENT 4,715,605 8,145,764 - GUARANTEES RECEIVED 2,878,049 4,616,484 - CONTINGENCIES RE. CONTRA ITEMS 1,837,556 3,529,280 CONTROL 2,291,004 2,422,103 - UNCOLLECTIBLE LOANS 228, ,500 - OTHER 2,024,205 1,714,832 - CONTROL - RE. CONTRA ITEMS 37, ,771 DERIVATIVES 4,271 2,774 - "NOTIONAL" VALUE OF PUT OPTIONS BOUGHT 3,528 2,291 - DERIVATIVES - RE. CONTRA ITEMS TRUST ACCOUNTS 22,750 16,412 - TRUST FUNDS 22,750 16,412 CREDIT 7,033,630 10,587,053 CONTINGENT 4,715,605 8,145,764 - LOANS GRANTED-UNUSED BALANCES-INCLUDED IN THE DEBTOR CLASSIFICATION REGULATIONS 50, ,827 - GUARANTEES GRANTED TO THE ARGENTINE CENTRAL BANK 1,660,755 2,806,289 - OTHER GUARANTEES GRANTED INCLUDED IN THE DEBTOR CLASSIFICATION REGULATIONS 72, ,806 - OTHER GUARANTEES GRANTED NOT INCLUDED IN THE DEBTOR CLASSIFICATION REGULATIONS 8, ,623 - OTHER INCLUDED IN THE DEBTOR CLASSIFICATION REGULATIONS 45,624 61,735 - CONTINGENCIES - RE. CONTRA ITEMS 2,878,049 4,616,484 CONTROL 2,291,004 2,422,103 - VALUABLES TO BE CREDITED 37, ,711 - OTHER CONTROL - RE. CONTRA ITEMS 2,253,115 2,110,332 DERIVATIVES 4,271 2,774 - "NOTIONAL" VALUE OF CALL OPTIONS WRITTEN "NOTIONAL" VALUE OF PUT OPTIONS GRANTED DERIVATIVES - RE. CONTRA ITEMS 3,528 2,291 TRUST ACCOUNTS 22,750 16,412 - TRUST LIABILITIES - RE. CONTRA ITEMS 22,750 16,412

7 BANCO DE GALICIA Y BUENOS AIRES S.A. Page 7 of 64 CONSOLIDATED INCOME STATEMENT (Section 33 of Law 19550) Supplementary Information to the Annual Financial Statements FIGURES STATED IN THOUSANDS OF U.S. DOLLARS FOR THE FISCAL YEAR ENDED AS COMPARED WITH THE NON-ANNUAL FISCAL PERIOD OF SIX MONTHS ENDED FINANCIAL INCOME 1,531, ,931 - INTEREST ON CASH AND DUE FROM BANKS 326 5,114 - INTEREST ON LOANS TO FINANCIAL SECTOR 25,289 15,608 - INTEREST ON OVERDRAFTS 39,883 40,630 - INTEREST ON NOTES 46, ,179 - INTEREST ON MORTGAGE LOANS 32,700 67,688 - INTEREST ON PLEDGE LOANS 6,332 13,789 - INTEREST ON CREDIT CARD LOANS 52,172 58,283 - INTEREST ON OTHER LOANS 32,498 52,161 - NET INCOME FROM GOVERNMENT AND CORPORATE SECURITIES 176, INTEREST INCOME FROM OTHER RECEIVABLES RESULTING FROM FINANCIAL BROKERAGE 67,203 17,595 - NET INCOME FROM SECURED LOANS-DECREE 1387/01 70,175 21,073 - ADJUSTMENTS FROM APPLICATION OF ADJUSTING INDEX 943, OTHER 38,251 13,811 FINANCIAL EXPENSES 1,326, ,926 - INTEREST ON CURRENT ACCOUNT DEPOSITS 5,190 12,947 - INTEREST ON SAVINGS ACCOUNT DEPOSITS 1,666 3,882 - INTEREST ON TIME DEPOSITS 81, ,106 - INTEREST ON LOANS FROM FINANCIAL SECTOR 7,343 2,960 - OTHER INTEREST 466,839 15,625 - NET LOSS ON GOVERNMENT AND CORPORATE SECURITIES - 8,976 - NET LOSS ON OPTIONS INTEREST EXPENSE FOR OTHER LIABILITIES RESULTING FROM FINANCIAL BROKERAGE 192,511 59,471 - ADJUSTMENTS FROM APPLICATION OF ADJUSTING INDEX 505, OTHER 65,251 26,847 GROSS BROKERAGE MARGIN 205, ,005 PROVISION FOR LOSSES ON LOANS AND OTHER RECEIVABLES 419, ,637 INCOME FROM SERVICES 150, ,572 - IN RELATION TO LENDING TRANSACTIONS 41,976 48,525 - IN RELATION TO BORROWING TRANSACTIONS 44,184 40,818 - OTHER COMMISSIONS 4,359 6,138 - OTHER 59,888 74,091 EXPENSES FOR SERVICES 39,591 29,861 - COMMISSIONS 27,731 14,639 - OTHER 11,860 15,222 F.MONETARY RESULT OF FINANCIAL BROKERAGE (374,158) - ADMINISTRATIVE EXPENSES 254, ,676 - PERSONNEL EXPENSES 137,376 98,954 - DIRECTORS' AND SYNDICS' FEES 816 1,889 - OTHER FEES 5,190 4,465 - ADVERTISING AND PUBLICITY 4,207 8,145 - TAXES 11,621 14,157

8 BANCO DE GALICIA Y BUENOS AIRES S.A. Page 8 of 64 CONSOLIDATED INCOME STATEMENT (Section 33 of Law 19550) Supplementary Information to the Annual Financial Statements FIGURES STATED IN THOUSANDS OF U.S. DOLLARS FOR THE FISCAL YEAR ENDED AS COMPARED WITH THE NON-ANNUAL FISCAL PERIOD OF SIX MONTHS ENDED OTHER OPERATING EXPENSES 82,794 56,114 - OTHER 12,655 14,952 H.MONETARY RESULT OF OPERATING EXPENSES 6,123 - NET LOSS ON FINANCIAL BROKERAGE (725,510) (89,597) MINORITY INTERESTS 22, MISCELLANEOUS INCOME 27, ,219 - NET INCOME FROM LONG-TERM INVESTMENTS PENALTY INTEREST 1,843 1,139 - LOANS RECOVERED AND ALLOWANCES REVERSED 10,947 13,974 - OTHER 14, ,540 - ADJUSTMENTS FROM APPLICATION OF ADJUSTING INDEX MISCELLANEOUS LOSSES 165,728 23,685 - NET LOSS ON LONG-TERM INVESTMENTS 11, PENALTY INTEREST AND CHARGES IN FAVOR OF THE ARGENTINE CENTRAL BANK LOAN LOSS PROVISION FOR MISCELLANEOUS RECEIVABLES AND OTHER PROVISIONS 130,941 12,936 - OTHER 22,812 10,734 - ADJUSTMENTS FROM APPLICATION OF ADJUSTING INDEX 7 - K.MONETARY RESULT OF OTHER OPERATIONS (42,518) - NET (LOSS) / INCOME BEFORE INCOME TAX (883,375) 20,973 INCOME TAX 1,724 6,830 NET (LOSS)/INCOME FOR THE PERIOD BEFORE ABSORPTION (885,099) 14,143 Absorption of loss ad referendum of shareholders' meeting 535, with retained earnings 104, with unrealized valuation difference 431,545 - NET (LOSS) / INCOME AFTER ABSORPTION (349,282) 14,143

9 BANCO DE GALICIA Y BUENOS AIRES S.A. Page 9 of 64 CONSOLIDATED STATEMENT OF CASH FLOWS (Section 33 of Law 19550) Supplementary Information to the Annual Financial Statements FIGURES STATED IN THOUSANDS OF U.S. DOLLARS CHANGES IN CASH FOR THE FISCAL YEAR ENDED AS COMPARED WITH THE NON-ANNUAL FISCAL PERIOD OF SIX MONTHS ENDED Cash and due from banks at beginning of year, restated 241, ,364 Decrease in cash (81,654) (632,866) Cash and due from banks at end of fiscal year/ period 159, ,498 Reasons for changes in cash Financial income collected 267, ,479 Income from services collected 83, ,572 Less: Financial expenses paid (242,718) (361,475) Expenses for services paid (16,875) (29,861) Administrative expenses paid (121,187) (177,310) Cash provided by (used in) ordinary operations (29,508) 91,405 Other sources of cash - Net increase in other liabilities resulting from financial brokerage 817, ,635 - Net decrease in government and corporate securities 45, ,515 - Net decrease in loans 517, ,892 - Net decrease in other receivables resulting from financial brokerage - 578,954 - Net decrease in other assets 69, Other sources of cash 324, ,691 Total sources of cash 1,775,466 1,597,687 Other uses of cash - Net increase in other receivables resulting from financial brokerage (6,807) - - Net increase in other assets - (234,586) - Net decrease in deposits (1,477,215) (1,967,010) - Net decrease in other liabilities (51,127) (73,533) - Cash dividends paid - (37,024) - Other uses of cash (161,659) (9,805) Total uses of cash (1,696,808) (2,321,958) MONETARY RESULT OF CASH AND DUE FROM BANK 130,804 - (DECREASE) IN CASH (81,654) (632,866)

10 BANCO DE GALICIA Y BUENOS AIRES S.A. Page 10 of 64 CONSOLIDATED STATEMENT OF DEBTORS STATUS (Section 33 of Law 19550) Supplementary Information to the Annual Financial Statements FIGURES STATED IN THOUSANDS OF U.S. DOLLARS FOR THE FISCAL YEAR ENDED AS COMPARED WITH THE NON-ANNUAL FISCAL PERIOD OF SIX MONTHS ENDED COMMERCIAL PORTFOLIO Normal 2,657,472 4,592,311 With "A" preferred collateral and counter-guarantees 2, ,961 With "B" preferred collateral and counter-guarantees 2,379,818 3,064,101 Without any preferred collateral or counter-guarantees 274,721 1,405,249 Potential risk 138,980 30,537 With "A" preferred collateral and counter-guarantees With "B" preferred collateral and counter-guarantees 17,523 22,729 Without any preferred collateral or counter-guarantees 120,602 7,351 With problems 231,600 66,252 With "A" preferred collateral and counter-guarantees 47, With "B" preferred collateral and counter-guarantees 50,546 29,491 Without any preferred collateral or counter-guarantees 133,223 36,226 High risk of insolvency 82, ,976 With "A" preferred collateral and counter-guarantees With "B" preferred collateral and counter-guarantees 17,958 40,527 Without any preferred collateral or counter-guarantees 64, ,211 Uncollectible 3,463 11,452 With "B" preferred collateral and counter-guarantees 3,125 7,324 Without any preferred collateral or counter-guarantees 338 4,128 Uncollectible for technical reasons 914 1,999 With "B" preferred collateral and counter-guarantees 894 1,923 Without any preferred collateral or counter-guarantees Total Commercial Portfolio 3,114,608 4,847,527 CONSUMER AND HOUSING PORTFOLIO Normal performance 350,488 1,617,906 With "A" preferred collateral and counter-guarantees ,895 With "B" preferred collateral and counter-guarantees 108, ,477 Without any preferred collateral or counter guarantees 241, ,534 Inadequate performance 21,319 78,497 With "A" preferred collateral and counter-guarantees With "B" preferred collateral and counter-guarantees 12,594 41,180 Without any preferred collateral or counter-guarantees 8,719 37,083 Deficient performance 14,861 40,906 With "A" preferred collateral and counter-guarantees With "B" preferred collateral and counter-guarantees 6,892 21,152 Without any preferred collateral or counter-guarantees 7,917 19,586 Difficult collection 66,403 99,640 With "A" preferred collateral and counter-guarantees With "B" preferred collateral and counter-guarantees 18,420 28,755 Without any preferred collateral or counter-guarantees 47,889 70,823 Uncollectible 49,964 55,450 With "A" preferred collateral and counter-guarantees With "B" preferred collateral and counter-guarantees 31,651 38,026 Without any preferred collateral or counter-guarantees 18,275 17,380 Uncollectible for technical reasons 3,591 12,223 With "A" preferred collateral and counter-guarantees 1 4 With "B" preferred collateral and counter-guarantees 2,146 6,994 Without any preferred collateral or counter-guarantees 1,444 5,225 Total Consumer and housing portfolio 506,626 1,904,622 General Total 3,621,234 6,752,149

11 BANCO DE GALICIA Y BUENOS AIRES S.A. Page 11 of 64 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS INCLUDING CONTROLLED COMPANIES (Per Article 33 of Law 19,550) FOR THE FISCAL YEAR ENDED DECEMBER 31, 2002 AS COMPARED WITH THE NON-ANNUAL FISCAL PERIOD OF SIX MONTHS ENDED DECEMBER 31, 2001 (Figures stated in thousands of U.S. dollars) NOTE 1 - ARGENTINE ECONOMIC SITUATION AND ITS IMPACT ON THE ECONOMIC AND FINANCIAL POSITION OF THE CONSOLIDATED ENTITY The facts and circumstances described in Note 1 to the financial statements of Banco de Galicia y Buenos Aires S.A. are also applicable to these consolidated financial statements Therefore, these financial statements are subject to the same restrictions as those mentioned in the last paragraph of the above mentioned note NOTE 2- BASIS OF PRESENTATION OF THE FINANCIAL STATEMENTS Disclosure criteria The Financial Statements, which stem from the Bank's accounting records, are disclosed in line with the provisions of Argentine Central Bank Communiqué "A" 3147 and supplementary rules regarding financial reporting requirements for the publication of quarterly and annual financial statements, observing the guidelines of Technical Pronouncement No. 8 of the Argentine Federation of Professional Councils in Economic Sciences (F.A.C.P.C.E.) and General Resolution No. 368/2001 of the National Securities Commission. The latter Resolution provides that in all cases the publication of the consolidated financial statements must precede the individual financial statements, so these financial statements are presented in accordance with this guideline. These financial statements include the balances corresponding to the operations of Banco de Galicia y Buenos Aires S.A. and its subsidiaries located in Argentina and abroad and are part of the annual financial statements of the Bank, as supplementary information, so they should be read along with the latter Those financial statements have been adjusted for inflation as mentioned in point of the notes to the individual financial statements As required by the mentioned regulations, the financial statements for the current period have been presented in comparative format with the non-annual period of six months commenced July 1, 2001 and ended December 31, The balances as of December 31, 2001 disclosed in these financial statements stem from restating the financial statement figures at that date in the December 31, 2002 currency value, as mentioned in point to the notes to the individual financial statements The income statement and statement of changes in shareholders equity are disclosed as required by Argentine Central Bank Communique A 3800, under which ad referendum of the shareholders meeting, the loss for the period is absorbed in advance up to the limit of the balances recorded in retained earnings and unrealized valuation difference arising from the net foreign currency position Furthermore, on September 26, 2001, the ordinary and extraordinary Meetings of Shareholders resolved to change the fiscal closing date from June 30, to December 31 of each year. The income statement, statement of changes in shareholders equity and statement of cash flows as of December 31, 2001, which are presented for comparative purposes, correspond to the non-annual period of six months ended December 31, Criteria followed by the Bank to include the accounts of the foreign branches and subsidiaries The balances corresponding to the operations of the foreign branches and subsidiaries stem from special financial statements adapted to the valuation and disclosure standards laid down by the Argentine Central Bank and professional accounting standards The conversion into pesos of those financial statements originally issued in foreign currency, has been done observing the following procedures: a. Assets and liabilities were converted into pesos applying the rate of exchange of US$1 = $3.3630, as mentioned in point of the notes to the individual financial statements Those assets and liabilities denominated in US dollars or other foreign currency subject to the guidelines of Decree 214 and supplementary rules have been converted into pesos b. Allotted capital has been computed at the amounts actually disbursed restated as mentioned in point of the notes to the individual financial statements c. Retained earnings were determined as the difference between the assets, the liabilities and the allotted capital d. The result for the fiscal year was determined as the difference between the opening retained earnings, net of cash dividends, and the closing retained earnings The balances of the income statement captions were converted into pesos observing the criterion described in point a. above e. The significant items arising from intercompany transactions among the consolidated entities have been eliminated from the Statement of Financial Condition and the Income Statement Banco Galicia Uruguay S.A. and Banco de Galicia Cayman Limited have not been consolidated, as mentioned in points 1.14 and 1.15 of notes to the individual financial statements of the Bank Accounting standards used The accounting standards used for preparing the financial statements of the consolidated companies mentioned in Note 3 have been adapted to the valuation and disclosure standards followed by the controlling company. These standards have been described in Note 2 to Banco de Galicia y Buenos Aires S.A. financial statements, of which these financial statements are supplementary information NOTE 3- CONSOLIDATION BASIS

12 BANCO DE GALICIA Y BUENOS AIRES S.A. Page 12 of 64 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS INCLUDING CONTROLLED COMPANIES (Per Article 33 of Law 19,550) FOR THE FISCAL YEAR ENDED DECEMBER 31, 2002 AS COMPARED WITH THE NON-ANNUAL FISCAL PERIOD OF SIX MONTHS ENDED DECEMBER 31, 2001 (Figures stated in thousands of U.S. dollars) As of December 31, 2002 and 2001 the consolidated financial statements include the assets, liabilities and results of the controlled entities detailed below: Controlled entity Shares Percentage held in Class Quantity Capital Stock Possible votes 2002 / / / 2001 Banco Galicia Uruguay S.A. Ordinary 13,375(*) (*) Tarjetas Regionales Ordinary bock-entry 70,834,138 99, Galicia Capital Markets S.A Ordinary book-entry 99,990 99, Galicia Factoring y Leasing S.A. Ordinary book-entry 1,889,700 1,889, Agro Galicia S.A. Ordinary book-entry 247, , Galicia Valores S.A. Soc.de Bolsa Ordinary book-entry 999, , Galicia y Bs.As. Securities(UK) Limited Ordinary book-entry 500, (*) Stated at face value of Uruguayan pesos Controlled entity Assets Liabilities Shareholders Equity Results December31 December31 December31 December Banco Galicia Uruguay S.A. 1,416,621 1,266, ,201 14,767 Tarjetas Regionales , , ,055 (18,054) 81,090 (99,143) 3,369 Galicia Capital Markets S.A ,093 6,403 13,889 5,111 5,204 (2,508) 1,398 Galicia Factoring y Leasing SA , ,773 2,263 (490) 238 Agro Galicia S.A (165) 8 Galicia Valores SA Soc.de Bolsa ,120 1,249 1,584 3,403 2, Galicia y Bs.As. Securities (UK) Limited 1, The procedure followed to include the accounts of the controlled entities was as follows: ) The financial statements of the controlled entities were adapted to the valuation and disclosure standards set by the Argentine Central Bank and cover the same period as that of the financial statements of Banco de Galicia y Buenos Aires S.A. In the non-annual period of six months ended December 31, 2001, special financial statements of Banco Galicia Uruguay S.A. as of December 31, 2001, adapted to cover the same period as that of Banco de Galicia y Buenos Aires S.A., have been used. These financial statements include that company's special statement of financial condition, income statement and statement of cash flows, the balances of which have been consolidated on a line-by-line basis with the special statement of financial condition, income statement and statement of cash flows of Banco de Galicia (Cayman) Limited, in which Banco Galicia Uruguay S.A. has a % equity interest and Banco de Galicia y Buenos Aires S.A., the remaining % The latter financial statements have been consolidated with those of Tarjetas Regionales S.A. and Galicia Pension Fund Limited, in which Banco de Galicia (Cayman) Limited holds a 99.7 % and 100 % equity interest, respectively In turn, since January 1, 2000, the financial statements of Galicia Pension Fund Limited have been consolidated with those of Galicia Administradora de Fondos S.A. Sociedad Gerente, in which Galicia Pension Fund Limited holds a controlling interest of % The financial statements of Banco de Galicia Uruguay S.A. and Banco Galicia Cayman Limited as of December 31, 2002 have not been consolidated with those of the Bank, as mentioned in Notes 1.14 and 1.15 to the individual financial statements In the current period, as a result of the new interest percentages owned by shareholders in Tarjetas Regionales S.A., Banco de Galicia y Buenos Aires S.A. holds % of the capital stock and voting rights and Banco de Galicia (Cayman) Limited, the remaining % The financial statements of the Bank have been consolidated on a line-by-line basis with those of that company The December 31, 2002 financial statements of Tarjetas Regionales S.A., which were used for consolidation purposes, have in turn been consolidated on a line-by-line basis with those of Tarjeta Naranja S.A., Tarjetas Cuyanas S.A., Tarjeta Comfiar S.A. and Tarjetas del Mar S.A., in which Tarjetas Regionales S.A. holds a controlling interest December 2001 December ) The percentages directly held in those companies' capital stock are as follows: Tarjetas Cuyanas S.A. 60% 60%

13 BANCO DE GALICIA Y BUENOS AIRES S.A. Page 13 of 64 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS INCLUDING CONTROLLED COMPANIES (Per Article 33 of Law 19,550) FOR THE FISCAL YEAR ENDED DECEMBER 31, 2002 AS COMPARED WITH THE NON-ANNUAL FISCAL PERIOD OF SIX MONTHS ENDED DECEMBER 31, 2001 (Figures stated in thousands of U.S. dollars) Tarjetas del Mar S.A. (*) 100% 50% Tarjeta Naranja S.A. 80% 80% Tarjeta Comfiar S.A. 60% 60% (*) On May 15, 2002 Tarjetas Regionales S.A. acquired the remaining 50% of the shares and on August 9, 2002 a share in Tarjetas del Mar S.A. was sold to Tarjeta Naranja S.A ) The percentages indirectly held in those companies' capital stock through the controlled entity Tarjeta Naranja S.A. are as follows: Tarjeta Comfiar S.A. 32% 32% In turn, Tarjeta Naranja S.A. financial statements for both periods have been consolidated with the financial statements of Cobranzas Regionales S.A., in which it holds 66.4% of voting stock. Furthermore, Tarjeta Comfiar S.A. and Tarjetas Cuyanas S.A. hold a 21.3% and 12.3% interest in that company's capital stock and voting rights The financial statements of Galicia Capital Markets S.A. include the statement of financial condition, income statement and statement of cash flows of that company, the balances of which have been consolidated on a line-by-line basis with those of the statement of financial condition, income statement and statement of cash flows of Galicia Advent Corporation Limited, in which that company holds a 57.89% equity interest and Galicia Equity Analysis S.A., in which it holds a 99.00% controlling interest ) The significant items arising from intercompany transactions among the consolidated entities have been eliminated from the statement of financial condition, income statement and statement of cash flows ) The portion of the controlled entities shareholders equity owned by third parties has been disclosed in the Statement of Financial Condition, under the "Minority Interests" caption ) The result of minority interests is disclosed in the Income Statement under "Results of Minority Interests" NOTE 4- MINORITY INTERESTS The breakdown of complementary equity interests included in the "Minority Interests" caption is as follows: December 2002 December 2001 COMPANY % % GALICIA VALORES S.A. SOCIEDAD DE BOLSA GALICIA CAPITAL MARKETS S.A GALICIA FACTORING Y LEASING S.A GALICIA ADM. DE FONDOS S.A. SOC. GERENTE AGRO GALICIA S.A TARJETA COMFIAR S.A TARJETAS CUYANAS S.A TARJETAS DEL MAR S.A TARJETA NARANJA S.A GALICIA ADVENT CORPORATION LIMITED GALICIA EQUITY ANALYSIS S.A COBRANZAS REGIONALES S.A NOTE 5- RESTRICTED ASSETS OF CONTROLLED ENTITIES As of December 31, 2002 the Bank's ability to dispose of the following assets of controlled entities included in the consolidation was restricted as follows: a. Galicia Valores S.A. Sociedad de Bolsa: As of December 31, 2002 this company held three shares of Mercado de Valores de Buenos Aires S.A. securing an insurance covering its transactions for US$ 1,248. At the end of the non-annual period of six months ended December 31, 2001, its restricted assets totalled US$ b. Agro Galicia S.A.: As of December 31, 2002 this company held one share of Mercado a Término de Buenos Aires S.A. securing an insurance covering its transactions for US$ 18. On January 27, 2003, Agro Galicia S.A. sold that share to B2 Agro S.A., receiving the amount of US$ At the end of the non-annual period of six months ended December 31, 2001, restricted assets totalled US$ c. Tarjetas Cuyanas S.A

14 BANCO DE GALICIA Y BUENOS AIRES S.A. Page 14 of 64 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS INCLUDING CONTROLLED COMPANIES (Per Article 33 of Law 19,550) FOR THE FISCAL YEAR ENDED DECEMBER 31, 2002 AS COMPARED WITH THE NON-ANNUAL FISCAL PERIOD OF SIX MONTHS ENDED DECEMBER 31, 2001 (Figures stated in thousands of U.S. dollars) As of December 31, 2002, the Bank's ability to dispose of time deposits for US$ 30 was restricted because this amount was earmarked to secure a Collection Agreement signed with the Revenue Board of the Province of Mendoza d. Tarjeta Naranja S.A On September 23, 2002 an attachment was levied on funds deposited in a current account for US$ 70 that this company holds with Banco de Galicia y Buenos Aires S.A.. On October 25, 2002, two attachments were levied on a current account held by Tarjeta Naranja for a total amount of US$ NOTE 6- ISSUE OF NEGOTIABLE OBLIGATIONS During the current fiscal year, various Series of short and medium-term Negotiable Obligations issued by Tarjetas Cuyanas S.A., Tarjetas del Mar S.A., Tarjeta Comfiar S.A. and Tarjeta Naranja S.A. fell due. The difficult situation affecting the Argentine economy and particularly the financial system, the devaluation of the peso and the difficulties in accessing credit on the domestic and foreign markets have had an adverse effect on the ability of those companies to meet their payment obligations Within that environment, each of those companies have undertaken a process for the renegotiation of their debts for negotiable obligations, which has presented different characteristics and different degrees of progress and/or definitions so far. As a result, the criteria used for valuing these debts varied according to the facts and judgmental elements each company had in relation to those debts when they issued their respective financial statements Below is disclosed the situation of each of those companies in relation to these debts as of December 31, 2002, and the valuation criteria followed: Tarjetas Cuyanas S.A.: On May 23 and October 31, 2002, that company entered into two agreements with Administraciones Fiduciarias S.A. for the redemption of its Negotiable Obligations through the issue of debt certificates At the end of the fiscal year ended December 31, 2002, holders of negotiable obligations adhered to the exchange of negotiable obligations for debt certificates in the amount of approximately US$ 5,000 y US$ 1,145, respectively. At December 31, 2002, the Company has valued these debts at approximately US$ 4,376, a figure obtained by applying the present value method to the future discounted cash flows For purposes of applying the valuation method mentioned above, Tarjetas Cuyanas S.A. has taken as a premise for the agreement entered into on May 23, 2002 a nominal annual discount rate of 11% and a cash flow made up of 5% of the monthly collections of receivables derived from the use of credit cards for a term of 8 years, counted as from the earlier of June 1, 2002 or until the full amortization of the subscribed certificates, and for the agreement entered into on October 31, 2002, a nominal annual discount rate of 11% and a cash flow made up of 1.75% of the monthly collections of receivables derived from the use of credit cards for a term of 7 years and 7 months, counted as from the earlier of November 1, 2002 or until the full amortization of the subscribed certificates The above-mentioned cash flows are made up of: a) receivables derived from the use of credit cards; b) consumer loans granted by the Company to the holders of credit cards issued by it; and c) refinancing of receivables mentioned in a) and b) As a result of the above-mentioned transactions and of certain payments made, the Company records due and payable negotiable obligations amounting to approximately US$ 4,077 as of December 31, As of December 31, 2002, Tarjetas Cuyanas S.A. had valued this debt at approximately US$ 2,222 which represent the redemption value estimated by the management of Tarjetas Cuyanas S.A. on the basis of the negotiations carried out so far. If this debt were to be valued at the free US dollar exchange rate, an additional loss of approximately US$ 1,873 would be generated at year end. The maximum risk attaching to the situations described above in relation to the financial statemwnts of Tarjetas Regionales S.A. amounts to approximately US$ 1, Tarjetas del Mar S.A.: On March 4, 2002 the Company informed the Buenos Aires Stock Exchange and the National Securities Commission of its decision to postpone for 120 days the payment to the holders of the overdue negotiable obligations issued by the Company. In subsequent notifications made on June 18 and October 16, 2002, new extensions of the due dates of negotiable obligations were requested. So far, the related interest payable monthly in advance was recognized at the rate of 14.92% per annum As informed in the letter submitted to the National Securities Commission on November 18, 2002, Banco de Galicia y Buenos Aires S.A., the indirect controlling shareholder of the Company, requested authorization from the Argentine Central Bank to implement a procedure to enable the holders of Negotiable Obligations issued by Tarjetas del Mar S.A. to exchange them for debt certificates secured by a trust to be issued by Tarjeta Naranja S.A. (a company indirectly controlled by Banco de Galicia y Buenos Aires S.A.) The operation schedule proposed is the following: (i) Tarjetas del Mar S.A. issues a debt certificate for US$15,000, payable within 10 years in 10 annual and consecutive installments; (ii) Tarjetas del Mar S.A. exchanges with Banco de Galicia (Cayman Branch) its own debt certificate for a certificate issued by Tarjeta Naranja S.A., which is held by that branch of Banco de Galicia; and (iii) Tarjetas del Mar S.A. offers the holders of its Negotiable Obligations to exchange them for the debt certificate issued by Tarjeta Naranja S.A. The Argentine Central Bank has not made any observations in relation to this procedure, concerning matters within its field of competence The Company is currently offering the holders of its obligations to exchange the Negotiable Obligations issued by the Company for the debt certificate issued by Tarjeta Naranja S.A., for a term of eight years, secured by a trust fund formed by 1% of its collections. Thus, the holders of

15 BANCO DE GALICIA Y BUENOS AIRES S.A. Page 15 of 64 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS INCLUDING CONTROLLED COMPANIES (Per Article 33 of Law 19,550) FOR THE FISCAL YEAR ENDED DECEMBER 31, 2002 AS COMPARED WITH THE NON-ANNUAL FISCAL PERIOD OF SIX MONTHS ENDED DECEMBER 31, 2001 (Figures stated in thousands of U.S. dollars) Negotiable Obligations can access a mechanism that has been widely accepted by the creditors of Tarjeta Naranja S.A., and if no new public emergency situations take place in the Argentine economy and in the financial system in particular, it will enable them to collect the total amount that Tarjetas del Mar S.A. would have owed them if legislation on public emergency had not been issued As of December 31, 2002, the balance of the Global Negotiable Obligation Program issued by Tarjetas del Mar S.A., which continue to be due and payable is equivalent to an amount of US$ 15,595. If all the due and payable negotiable obligations as of December 31, 2002 were to be valued at the free US dollar exchange rate, an additional loss of approximately US$ 9,111 would be generated as of year end The maximum risk attaching to the situations described above in relation to the financial statements of Tarjetas Regionales S.A. amounts to approximately US$ 9, Tarjeta Comfiar S.A.: In view of the operating impossibility of this company fully redeeming Series IX of Negotiable Obligations that fell due on January 15, 2002, a debt of US$ 391 (face value) in this respect has been recognized in this company s financial statements, at a rate of exchange of US$1=$1, plus CER, which as of December 31, 2002 was equivalent to US$ As established by current public order regulations on this matter, the company considers that in all cases the criterion applicable would be the redemption of those negotiable obligations at the exchange rate of US$1=$1, plus CER, because that Series was issued prior to January 6, If all the due and payable negotiable obligations which as of December 31, 2002 amounted to US$ 391 thousand were to be valued at the free US dollar exchange rate, an additional loss of approximately US$ 228 would be generated at year end The overdue balance of the Global Negotiable Obligation Program at the time the financial statements of Tarjeta Comfiar S.A. were prepared had been reduced to US$ 370 (face value) The maximum risk attaching to these situations, which could have an impact on the financial statements of Tarjetas Regionales S.A., amounted to US$ Tarjeta Naranja S.A.: On May 23, 2002 the company executed an agreement for the redemption of negotiable obligations and the issuance of debt certificates in US dollars secured by a trust. As of December 31, 2002, holders of negotiable obligations had adhered to this agreement in the amount of US$ 63,131, the residual value of those negotiable obligations amounting to US$ 59,063 at closing date The debt certificates have been valued by determining the present value of the cash flow involved, converted at the exchange rate prevailing on the transaction date. The application of the present value method to this financial debt, recommended by Technical Pronouncement No. 17 of the Argentine Federation of Professional Councils in Economic Sciences and approved by the Professional Council in Economic Sciences of the Province of Cordoba, results in US$ 45,037 (including principal and accrued interest) As of December 31, 2002, the overdue balance of the Global Negotiable Obligation Program not yet exchanged amounts to US$5,118 thousand At year end those holders of negotiable obligations continued to be invited to exchange their obligations for the above-mentioned debt certificates. For those holders who have not adhered to the agreement, and under current public order regulations on this matter, the company considers that in all cases the criterion applicable for the redemption of those negotiable obligations would be the exchange rate of US$1=$1, plus CER, because even the most recently issued Series involved renewals of series issued under Programs predating January 6, In view of the company s expectations for the method of redemption of these obligations, either by means of the adherence to the agreement or by redeeming them in cash, such obligations have been valued as follows: 50%, that is US$2,559, are expected to be redeemed in cash applying the US$1=$1 exchange rate, plus CER, and the remaining 50% is expected to be exchanged for debt securities, so they were valued applying the same procedure as that described above for debt certificates, a present value of US$2,000 being determined which, applying the exchange rate in force at year end, represents a liability of US$ 2,004. If all the due and payable negotiable obligations amounting to US$ 5,118 as of December 31, 2002 were to be valued applying the free US dollar exchange rate, an additional loss of approximately US$ 2,055 would be generated at year end The maximum risk attaching to the situations described, which could have an impact on the consolidated financial statements of Tarjetas Regionales S.A., amounts to US$ 1, In addition, Negotiable Obligation Series XXVII issued on January 18, 2002 for a face value of US$28,000 thousand has been valued applying the free US dollar parity at year end On December 27, 2002, Banco de Galicia Cayman Branch, holder of 100% of Series XXVII accepted the Company s proposal for an extension of the due date for 90 days counted as from December 27, 2002, that is, until March 27, 2003, and the interest payment corresponding to the extension term under the conditions originally agreed for this Series At the time these consolidated financial statements were issued, past due Negotiable Obligations continued to be redeemed at the rate of exchange of $1 per US$, plus CER, while other debtors opted to exchange them for Debt Certificates. On February 6, 2003, an agreement to exchange negotiable obligations for US$15,000 for debt certificates was executed with Banco de Galicia y Buenos Aires S.A. Cayman Branch.-