Exhibit 99.1
GRUPO FINANCIERO GALICIA S.A. REPORTS FINANCIAL RESULTS FOR THE FOURTH QUARTER
AND FOR THE FISCAL YEAR THAT ENDED ON DECEMBER 31, 2020
Buenos Aires, Argentina, March 9, 2021 – Grupo Financiero Galicia S.A. (BYMA /NASDAQ: GGAL) announced its financial results for the fourth quarter (the “Quarter”) and the fiscal year (the “Fiscal Year”) that ended on December 31, 2020.
Beginning with the fiscal year that started on January 1, 2020, Grupo Financiero Galicia S.A. (“GFG” or “Grupo Financiero Galicia”) has applied certain restatement criteria established by IAS 29 “Financial Information in Hyperinflationary Economies,” and the expected credit loss model, in accordance with Communication “A” 6847 of the Argentine Central Bank, which includes item 5.5 “Impairment” of IFRS 9 “Financial Instruments.” For comparative purposes, the information corresponding to the 2019 fiscal year has been adjusted in accordance with the abovementioned standards, unless otherwise indicated.
The information presented in this report has been restated in homogeneous currency, as of December 2020, unless otherwise indicated.
HIGHLIGHTS
• | Comprehensive income attributable to Grupo Financiero Galicia for the Fiscal Year amounted to Ps.25,329 million, 15% lower than the Ps.29,857 million recorded in the same period of the prior fiscal year. Net income attributable to GFG amounted to Ps.26,439 million, 11% lower than the Ps.29,767 million recorded in the 2019 fiscal year. The profit per share for the Fiscal Year amounted to Ps.17.92, as compared to Ps.20.86 per share recorded for the 2019 fiscal year. |
• | The result of the Fiscal Year were mainly attributable to the income derived from GFG’s interests in Banco de Galicia y Buenos Aires S.A.U. (“Banco Galicia” or “the Bank”), for Ps.22,210 million; in Tarjetas Regionales S.A. (“Tarjetas Regionales”), for Ps.1,810 million; in Sudamericana Holding S.A. (“Sudamericana Holding”), for Ps.1,128 million; and in Galicia Administradora de Fondos S.A. (“GAF”), for Ps.1,122 million, and were increased by a net operating income of Ps.653 million, partially offset by the results from the net monetary position of Ps.386 million and by personnel and administrative expenses of Ps.303 million. |
• | Comprehensive income attributable to GFG for the Quarter amounted to Ps.3,243 million, 26% higher than the Ps.2,572 million recorded in the same quarter of the 2019 fiscal year. Net income attributable to Grupo Financiero Galicia amounted to Ps.3,107 million, 133% higher than the Ps.1,331 million recorded in the fourth quarter of the prior fiscal year. Net profit per share for the Quarter amounted to Ps.2.11, as compared to Ps.0.93 per share recorded for the same quarter of the 2019 fiscal year. |
Bruno Folino CFO - Grupo Financiero Galicia www.gfgsa.com | Pablo Firvida IRO - Grupo Financiero Galicia Tel.: (54-11) 6329-4881 inversores@gfgsa.com | Conference Call March 10, 2021 11:00 am eastern time Call-in number: +1 323-289-6576 Conference ID: 5208598 |
• | The result of the Quarter were mainly attributable to the income derived from GFG’s interests in Banco Galicia, for Ps.2,707 million; in GAF, for Ps.272 million; in Tarjetas Regionales, for Ps.152 million; and in Sudamericana Holding, for Ps.42 million, and were increased by a net operating income of Ps.336 million, partially offset by personnel and administrative expenses of Ps.127 million and by the loss from the net monetary position of Ps.85 million. |
• | The Bank’s market share of loans to the private sector was 13.03%, increasing 153 basis points (“bp”) as compared to December 31, 2019. Market share for deposits from the private sector was 10.07%, increasing 15 bp from the fourth quarter of the prior fiscal year. |
• | As of December 31, 2020, the minimum capital requirement amounted to Ps.56,069 million, increasing Ps.18,407 million (49%), and computable capital was Ps.157,061 million, increasing Ps.76,276 million (94%), in each case as compared to the figures recorded as of the end of 2019. The excess of computable capital over the minimum capital requirement amounted to Ps.100,992 million, and the total capital ratio was 22.92%. |
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CONSOLIDATED INFORMATION
Consolidated Financial Statement | 2020 | 2019 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
Financial Information | ||||||||||||||||||||
Assets | 1,057,950 | 1,056,083 | 935,353 | — | 13 | |||||||||||||||
Net loans and other financing | 531,581 | 510,761 | 494,268 | 4 | 8 | |||||||||||||||
Deposits | 676,396 | 684,642 | 536,033 | (1 | ) | 26 | ||||||||||||||
Shareholders’ equity attributable to GFG | 179,860 | 172,494 | 152,301 | 4 | 18 | |||||||||||||||
Shares outstanding (in thousands of shares) (1) | 1,474,692 | 1,426,765 | 1,426,765 | 3 | 3 | |||||||||||||||
Book value per share (in pesos) | 121.94 | 120.88 | 106.73 | 106 | 1,521 | |||||||||||||||
Net income attributable to GFG | 3,107 | 6,068 | 1,331 | (49 | ) | 133 | ||||||||||||||
Net income per share (in pesos) | 2.11 | 4.25 | 0.93 | (214 | ) | 118 |
(1) | 10 ordinary shares = 1 ADS. Includes shares to be issued in connection with the merger-spin-off with Regional Cards. |
Selected Ratios | 2020 | 2019 | Variation (bp) | Fiscal Year | ||||||||||||||||||||||||
Percentages, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | 2020 | 2019 | |||||||||||||||||||||
Return (1) on average assets (2) | 1.16 | 2.30 | 0.50 | (114 | ) | 66 | 2.57 | 2.76 | ||||||||||||||||||||
Return (1) on average shareholders’ equity (2) | 7.04 | 14.02 | 3.59 | (698 | ) | 345 | 15.81 | 20.23 | ||||||||||||||||||||
Financial Margin (2) (3) | 17.71 | 18.09 | 21.50 | (38 | ) | (379 | ) | 19.15 | 17.99 | |||||||||||||||||||
Efficiency ratio (4) | 58.61 | 49.08 | 70.34 | 953 | (1,173 | ) | 47.60 | 53.86 | ||||||||||||||||||||
Total capital ratio (5) | 22.16 | 22.91 | 17.53 | (75 | ) | 463 | ||||||||||||||||||||||
Non-performing loans / Loans to private sector | 1.39 | 2.72 | 5.45 | (133 | ) | (406 | ) | |||||||||||||||||||||
Allowance for loan losses / Loans to private sector | 6.60 | 7.33 | 6.78 | (73 | ) | (18 | ) | |||||||||||||||||||||
Allowance for loan losses / Non-accrual loans | 474.59 | 269.72 | 124.35 | 20,487 | 35,024 | |||||||||||||||||||||||
Non-accrual portfolio with guarantees to non-accrual portfolio | 18.71 | 18.90 | 13.29 | (19 | ) | 542 | ||||||||||||||||||||||
Cost of Risk(6) | 4.68 | 4.83 | 3.55 | (15 | ) | 113 | 6.29 | 5.00 |
(1) | Net income attributable to GFG. |
(2) | Annualized. |
(3) | Net interest income, plus net result from financial instruments, plus results from the disposal of assets, plus foreign currency quotation differences, plus insurance premiums earned, plus certain items included in other operating income and expenses, divided by the average balance of interest-earning assets. |
(4) | Personnel expenses, plus administrative expenses, plus depreciation and devaluations of assets, divided by net interest income, plus net fee income, plus net result from financial instruments, plus foreign currency quotation differences, plus insurance premiums earned, plus certain items included in other operating income, plus the result from the net monetary position. |
(5) | Banco Galicia consolidated with Tarjetas Regionales. |
(6) | Includes provisions for unused balances of overdrafts and credit cards. |
Market Indicators | 2020 | 2019 | Variation | |||||||||||||||||
In pesos, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
Market price | (bp) | |||||||||||||||||||
Shares – BYMA | 125.75 | 105.90 | 121.60 | 1,985 | 415 | |||||||||||||||
ADS – NASDAQ (in US$) | 8.74 | 7,24 | 16.23 | 150 | (749 | ) | ||||||||||||||
Price BYMA / book value | 1.03 | 0.88 | 1.14 | 15 | (11 | ) | ||||||||||||||
Average daily volume (in thousands of shares) | (%) | |||||||||||||||||||
BYMA | 2,196 | 3,264 | 1,590 | (33 | ) | 38 | ||||||||||||||
NASDAQ (1) | 8,282 | 14,643 | 13,412 | (43 | ) | (38 | ) | |||||||||||||
Market share (%) | (bp) | |||||||||||||||||||
Banco Galicia | ||||||||||||||||||||
Loans to the private sector | 13.03 | 12.74 | 11.50 | 29 | 153 | |||||||||||||||
Deposits from the private sector | 10.07 | 10.15 | 9.92 | (8 | ) | 15 | ||||||||||||||
Galicia Administradora de Fondos S.A. | 9.97 | 10.61 | 9.60 | (64 | ) | 37 |
(1) | Expressed in equivalent shares: 10 ordinary shares = 1 ADS. |
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GRUPO FINANCIERO GALICIA
RESULTS FOR THE FISCAL YEAR
Income Statement In millions of pesos, except otherwise noted | 2020 | 2019 | Variation (%) | |||||||||
Results from Equity Investments | 26,620 | 29,789 | (11 | ) | ||||||||
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Banco de Galicia y Buenos Aires S.A.U. | 22,210 | 27,896 | (20 | ) | ||||||||
Tarjetas Regionales S.A.(1) | 1,810 | 746 | 143 | |||||||||
Galicia Administradora de Fondos S.A. | 1,122 | 302 | 272 | |||||||||
Sudamericana Holding S.A. | 1,128 | 667 | 69 | |||||||||
Other subsidiaries | 350 | 178 | 97 | |||||||||
Net operating income | 653 | 728 | (10 | ) | ||||||||
Administrative expenses | (303 | ) | (278 | ) | 9 | |||||||
Other operating income and expenses | (8 | ) | (24 | ) | (67 | ) | ||||||
Results from the net monetary position | (386 | ) | (444 | ) | (13 | ) | ||||||
Income tax | (137 | ) | (4 | ) | 3,325 | |||||||
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Net income attributable to GFG | 26,439 | 29,767 | (11 | ) | ||||||||
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Other comprehensive income(2) | (1,110 | ) | 90 | (1,333 | ) | |||||||
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Comprehensive income attributable to GFG | 25,329 | 29,857 | (15 | ) | ||||||||
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(1) | Beginning on September 1, 2020, 100% of the results from Tarjetas Regionales correspond to GFG. |
(2) | Net of income tax. |
Net income attributable to GFG for the Fiscal Year amounted to Ps.26,439 million, which represented a 2.57% annualized return on average assets and a 15.81% return on average shareholders’ equity.
The abovementioned result was mainly attributable to profits realized from GFG’s interests in Banco Galicia, for Ps.22,210 million; in Tarjetas Regionales, for Ps.1,810 million; in Sudamericana Holding, for Ps.1,128 million; and in GAF, for Ps.1,122 million.
RESULTS FOR THE QUARTER
Income Statement | 2020 | 2019 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
Results from Equity Investments | 3,059 | 6,167 | 1,349 | (50 | ) | 127 | ||||||||||||||
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Banco de Galicia y Buenos Aires S.A.U. | 2,707 | 4,982 | 212 | (46 | ) | 1,177 | ||||||||||||||
Tarjetas Regionales S.A.(1) | 152 | 328 | 987 | (54 | ) | 85 | ||||||||||||||
Galicia Administradora de Fondos S.A. | 272 | 382 | (13 | ) | (29 | ) | (2,192 | ) | ||||||||||||
Sudamericana Holding S.A. | 42 | 304 | 52 | (86 | ) | (19 | ) | |||||||||||||
Other subsidiaries | (114 | ) | 171 | 111 | (167 | ) | 203 | |||||||||||||
Net operating income | 336 | 138 | 91 | 143 | 269 | |||||||||||||||
Administrative expenses | (127 | ) | (50 | ) | (47 | ) | 154 | 170 | ||||||||||||
Other operating income and expenses | (1 | ) | (5 | ) | (2 | ) | (80 | ) | (50 | ) | ||||||||||
Results from the net monetary position | (85 | ) | (149 | ) | (62 | ) | (43 | ) | 37 | |||||||||||
Income tax | (75 | ) | (33 | ) | 2 | 127 | (3,850 | ) | ||||||||||||
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Net income attributable to GFG | 3,107 | 6,068 | 1,331 | (49 | ) | 133 | ||||||||||||||
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Other comprehensive income(2) | 136 | (685 | ) | 1,241 | (120 | ) | 89 | |||||||||||||
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Comprehensive income attributable to GFG | 3,243 | 5,383 | 2,572 | (40 | ) | 26 | ||||||||||||||
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(1) | Beginning on September 1, 2020, 100% of the results from Tarjetas Regionales correspond to GFG. |
(2) | Net of income tax. |
Net income attributable to GFG for the Quarter amounted to Ps.3,107 million, which represented a 1.16% annualized return on average assets and a 7.04% return on average shareholders’ equity.
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The abovementioned result was mainly attributable to profits realized from GFG’s interests in Banco Galicia, for Ps.2,707 million; in Galicia Administradora de Fondos, for Ps.272 million; in Tarjetas Regionales, for Ps.152 million; and in Sudamericana Holding, for Ps.42 million.
SELECTED FINANCIAL INFORMATION – CONSOLIDATED
Balance Sheet | 2020 | 2019 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks | 175,423 | 159,082 | 177,866 | 10 | (1 | ) | ||||||||||||||
Debt securities | 155,420 | 203,043 | 89,431 | (23 | ) | 74 | ||||||||||||||
Net loans and other financing | 531,581 | 510,761 | 494,268 | 4 | 8 | |||||||||||||||
Other financial assets | 117,216 | 109,783 | 102,766 | 7 | 14 | |||||||||||||||
Equity investments in subsidiaries, associates, and joint businesses | 89 | 50 | — | 78 | N/A | |||||||||||||||
Property, bank premises, equipment | 43,731 | 44,073 | 44,877 | (1 | ) | (3 | ) | |||||||||||||
Intangible assets | 14,469 | 14,565 | 11,835 | (1 | ) | 22 | ||||||||||||||
Other assets | 19,992 | 14,671 | 14,257 | 36 | 40 | |||||||||||||||
Assets available for sale | 29 | 55 | 53 | (47 | ) | (45 | ) | |||||||||||||
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Total assets | 1,057,950 | 1,056,083 | 935,353 | — | 13 | |||||||||||||||
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Liabilities | ||||||||||||||||||||
Deposits | 676,396 | 684,642 | 536,034 | (1 | ) | 26 | ||||||||||||||
Financing from financial entities | 13,833 | 10,573 | 30,936 | 31 | (55 | ) | ||||||||||||||
Other financial liabilities | 97,528 | 86,929 | 100,289 | 12 | (3 | ) | ||||||||||||||
Notes | 17,074 | 19,712 | 39,809 | (13 | ) | (57 | ) | |||||||||||||
Subordinated notes | 21,654 | 21,374 | 21,101 | 1 | 3 | |||||||||||||||
Other liabilities | 51,605 | 56,223 | 50,943 | (8 | ) | 1 | ||||||||||||||
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Total liabilities | 878,090 | 879,453 | 779,112 | — | 13 | |||||||||||||||
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Shareholders’ equity attributable to third parties | — | 4,136 | 3,940 | (100 | ) | (100 | ) | |||||||||||||
Shareholders’ equity attributable to GFG | 179,860 | 172,494 | 152,301 | 4 | 18 | |||||||||||||||
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Total shareholders’ equity | 179,860 | 176,630 | 156,241 | 2 | 15 | |||||||||||||||
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Income Statement for the Fiscal Year In millions of pesos, except otherwise noted | 2020 | 2019 | Variation (%) | |||||||||
Net interest income | 76.633 | 47.417 | 62 | |||||||||
Interest income | 166.808 | 177.671 | (6 | ) | ||||||||
Interest related expenses | (90.175 | ) | (130.254 | ) | (31 | ) | ||||||
Net fee income | 36.557 | 38.233 | (4 | ) | ||||||||
Fee income | 46.475 | 47.847 | (3 | ) | ||||||||
Fee related expenses | (9.918 | ) | (9.614 | ) | 3 | |||||||
Net results from financial instruments | 68.726 | 96.318 | (29 | ) | ||||||||
Results from the disposal of assets | (1.274 | ) | 299 | (526 | ) | |||||||
Gold and foreign currency quotation differences | 7.047 | 11.832 | (40 | ) | ||||||||
Other operating income | 22.323 | 27.095 | (18 | ) | ||||||||
Underwriting income from insurance business | 5.502 | 4.932 | 12 | |||||||||
Loan loss provisions | (30.936 | ) | (25.079 | ) | 23 | |||||||
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Net operating income | 184.578 | 201.047 | (8 | ) | ||||||||
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Personnel expenses | (31.825 | ) | (33.285 | ) | (4 | ) | ||||||
Administrative expenses | (31.372 | ) | (33.106 | ) | (5 | ) | ||||||
Depreciations and devaluations of assets | (8.284 | ) | (6.895 | ) | 20 | |||||||
Other operating expenses | (34.488 | ) | (38.479 | ) | (10 | ) | ||||||
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Operating income | 78.609 | 89.282 | (12 | ) | ||||||||
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Results from the net monetary position | (30.773 | ) | (38.805 | ) | (21 | ) | ||||||
Results from associates and joint businesses | (125 | ) | — | N/A | ||||||||
Income tax | (20.933 | ) | (20.557 | ) | 2 | |||||||
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Net income | 26.778 | 29.920 | (11 | ) | ||||||||
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Net income attributable to third parties | 339 | 153 | 122 | |||||||||
Net income attributable to GFG | 26.439 | 29.767 | (11 | ) | ||||||||
Other comprehensive income(1) | (1.110 | ) | 90 | (1.333 | ) | |||||||
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Total comprehensive income | 25.668 | 30.010 | (14 | ) | ||||||||
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Comprehensive income attributable to third parties | 339 | 153 | 122 | |||||||||
Comprehensive income attributable to GFG | 25.329 | 29.857 | (15 | ) |
(1) | Net of income tax. |
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Income Statement for the Quarter | 2020 | 2019 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
Net interest income | 17,513 | 15,156 | 20,758 | 16 | (16 | ) | ||||||||||||||
Interest income | 41,866 | 38,011 | 46,557 | 10 | (10 | ) | ||||||||||||||
Interest related expenses | (24,353 | ) | (22,855 | ) | (25,799 | ) | 7 | (6 | ) | |||||||||||
Net fee income | 9,019 | 9,718 | 9,085 | (7 | ) | (1 | ) | |||||||||||||
Fee income | 11,821 | 12,194 | 11,674 | (3 | ) | 1 | ||||||||||||||
Fee related expenses | (2,802 | ) | (2,476 | ) | (2,589 | ) | 13 | 8 | ||||||||||||
Net results from financial instruments | 16,193 | 18,391 | 11,665 | (12 | ) | 39 | ||||||||||||||
Results from the disposal of assets | (724 | ) | 290 | 211 | (350 | ) | (443 | ) | ||||||||||||
Gold and foreign currency quotation differences | 1,946 | 2,644 | 4,947 | (26 | ) | (61 | ) | |||||||||||||
Other operating income | 4,854 | 4,927 | 3,424 | (1 | ) | 42 | ||||||||||||||
Underwriting income from insurance business | 1,441 | 1,423 | 1,162 | 1 | 24 | |||||||||||||||
Loan loss provisions | (11,935 | ) | (6,310 | ) | (5,133 | ) | 89 | 133 | ||||||||||||
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Net operating income | 38,307 | 46,239 | 46,119 | (17 | ) | (17 | ) | |||||||||||||
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Personnel expenses | (8,068 | ) | (8,261 | ) | (9,237 | ) | (2 | ) | (13 | ) | ||||||||||
Administrative expenses | (7,476 | ) | (7,861 | ) | (10,153 | ) | (5 | ) | (26 | ) | ||||||||||
Depreciations and devaluations of assets | (2,340 | ) | (2,025 | ) | (1,870 | ) | 16 | 25 | ||||||||||||
Other operating expenses | (1,531 | ) | (8,462 | ) | (8,702 | ) | (82 | ) | (82 | ) | ||||||||||
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Operating income | 18,892 | 19,630 | 16,157 | (4 | ) | 17 | ||||||||||||||
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Results from the net monetary position | (11,397 | ) | (7,561 | ) | (10,801 | ) | 51 | 6 | ||||||||||||
Results from associates and joint businesses | (125 | ) | — | — | — | N/A | ||||||||||||||
Income tax | (4,264 | ) | (5,933 | ) | (3,823 | ) | (28 | ) | 12 | |||||||||||
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Net income | 3,106 | 6,136 | 1,533 | (49 | ) | 103 | ||||||||||||||
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Net income attributable to third parties | (1 | ) | 68 | 202 | (101 | ) | 100 | |||||||||||||
Net income attributable to GFG | 3,107 | 6,068 | 1,331 | (49 | ) | 133 | ||||||||||||||
Other comprehensive income(1) | 136 | (685 | ) | 1,241 | (120 | ) | 89 | |||||||||||||
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Total comprehensive income | 3,242 | 5,451 | 2,774 | (41 | ) | 17 | ||||||||||||||
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Comprehensive income attributable to third parties | (1 | ) | 68 | 202 | (101 | ) | 100 | |||||||||||||
Comprehensive income attributable to GFG | 3,243 | 5,383 | 2,572 | (40 | ) | 26 |
(1) | Net of income tax. |
Additional Information | 2020 | 2019 | ||||||||||||||||||
4Q | 3Q | 2Q | 1Q | 4Q | ||||||||||||||||
Employees | 9,271 | 9,408 | 9,516 | 9,549 | 9,718 | |||||||||||||||
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Banco Galicia | 5,764 | 5,842 | 5,971 | 6,040 | 6,118 | |||||||||||||||
Tarjetas Regionales | 3,049 | 3,110 | 3,099 | 3,075 | 3,151 | |||||||||||||||
Galicia Administradora de Fondos | 24 | 25 | 25 | 27 | 27 | |||||||||||||||
Sudamericana Holding | 368 | 385 | 376 | 376 | 395 | |||||||||||||||
Other subsidiaries | 66 | 46 | 45 | 31 | 27 | |||||||||||||||
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Branches and other points of sales | 509 | 510 | 511 | 517 | 528 | |||||||||||||||
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Banco Galicia | 326 | 326 | 326 | 326 | 326 | |||||||||||||||
Tarjetas Regionales S.A. | 183 | 184 | 185 | 191 | 202 | |||||||||||||||
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Deposit Accounts at Banco Galicia (in thousands) | 6,180 | 6,148 | 5,812 | 5,427 | 5,279 | |||||||||||||||
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Credit Cards (in thousands) | 13,688 | 13,490 | 13,472 | 13,428 | 13,544 | |||||||||||||||
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Banco Galicia | 5,075 | 5,009 | 5,096 | 5,032 | 4,986 | |||||||||||||||
Tarjetas Regionales S.A. | 8,613 | 8,481 | 8,376 | 8,396 | 8,558 | |||||||||||||||
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GAF’s assets under management (millions of pesos) | 192,412 | 203,381 | 184,108 | 154,492 | 111,294 | |||||||||||||||
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Inflation, exchange rate and interest rates | ||||||||||||||||||||
Consumer price index(1) | 385.8826 | 346.6207 | 321.9738 | 305.5515 | 283.4442 | |||||||||||||||
Consumer price index(1) (%) | 11.33 | 7.65 | 5.37 | 7,80 | 11.72 | |||||||||||||||
Wholesale price index (IPIM) (%) | 13.83 | 11.76 | 2.69 | 3,62 | 13.22 | |||||||||||||||
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Acquisition value unit (UVA) | 64.32 | 58.52 | 55.06 | 51,62 | 47.16 | |||||||||||||||
Exchange rate (Ps./US$)(2) | 84.15 | 76.18 | 70.46 | 64,47 | 59.90 | |||||||||||||||
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Badlar (%, quarterly averages)(3) | 32.52 | 29.64 | 24.42 | 33,25 | 48.06 | |||||||||||||||
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(1) | Consumer price index published by the Argentine National Institute of Statistics (INDEC) |
(2) | Reference exchange rate in accordance with Communiqué “A” 3500 from the Argentine Central Bank as of the last working day of the Quarter. |
(3) | Private banks’ 30-day time deposits rate for amounts over Ps.1 million. |
7
BANCO GALICIA
HIGHLIGHTS
• | Net income for the Fiscal Year amounted to Ps.22,210 million, Ps.5,686 million (20%) lower than the figure recorded in the 2019 fiscal year, mainly due to a decrease in net operating income (13%) as a consequence of lower net results from financial instruments (29%), which was offset by a higher net interest income (81%). |
• | Net income for the Quarter amounted to Ps.2,707 million, Ps.2,495 million (1,177%) higher than the figure recorded in the same quarter of the 2019 fiscal year, mainly due to a Ps.7,944 million (114%) lower in other operating expenses and a Ps.2,946 million (37%) lower in administrative expenses, which was partially offset by a Ps.9,138 million (26%) lower net operating income. |
• | Net operating income for the Quarter amounted to Ps.26,024 million, Ps.9,138 million lower than the Ps.35,162 million recorded in the fourth quarter of the 2019 fiscal year, mainly as a consequence of an increase in loan loss provisions and a decrease in net interest income, offset by an increase in net income from financial instruments. |
• | The credit exposure to the private sector reached Ps.487,618 million for the Quarter, up 3% from Ps.475,491 million recorded in the fourth quarter of the 2019 fiscal year, and deposits reached Ps.678,103 million, up 25% from Ps.541,621 million. As of December 31, 2020, the Bank’s estimated market share of loans to the private sector was 13.03%, while its estimated market share of deposits from the private sector was 10.07%. |
• | The non-accrual loan portfolio represented 1.27% of total financing to the private sector, recording a decrease of 288 bp from the 4.15% recorded at the end of the same quarter of the prior fiscal year, while its coverage with allowances for loan losses reached 501.45%. |
8
RESULTS FOR THE FISCAL YEAR
Income Statement In millions of pesos, except otherwise noted | 2020 | 2019 | Variation (%) | |||||||||
Net interest income | 58,834 | 32,442 | 81 | |||||||||
Net fee income | 20,980 | 21,850 | (4 | ) | ||||||||
Net results from financial instruments | 65,391 | 92,303 | (29 | ) | ||||||||
Results from the disposal of assets | (1,274 | ) | 299 | (526 | ) | |||||||
Gold and foreign currency quotation differences | 6,025 | 11,299 | (47 | ) | ||||||||
Other operating income | 17,173 | 21,988 | (22 | ) | ||||||||
Loan-loss provisions | (27,053 | ) | (18,273 | ) | 48 | |||||||
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| |||||||
Net operating income | 140,076 | 161,908 | (13 | ) | ||||||||
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Personnel expenses | (22,090 | ) | (24,304 | ) | (9 | ) | ||||||
Administrative expenses | (21,429 | ) | (23,885 | ) | (10 | ) | ||||||
Depreciations and devaluations of assets | (6,117 | ) | (5,022 | ) | 22 | |||||||
Other operating expenses | (26,718 | ) | (31,704 | ) | (16 | ) | ||||||
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Operating income | 63,722 | 76,993 | (17 | ) | ||||||||
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Results from the net monetary position | (23,903 | ) | (29,443 | ) | (19 | ) | ||||||
Results from associates and joint businesses | 30 | 67 | (55 | ) | ||||||||
Income tax | (17,639 | ) | (19,721 | ) | (11 | ) | ||||||
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Net Income | 22,210 | 27,896 | (20 | ) | ||||||||
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Other comprehensive income (loss)(1) | (1,120 | ) | 117 | (1,057 | ) | |||||||
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| |||||||
Total comprehensive income | 21,090 | 28,013 | (25 | ) | ||||||||
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(1) | Net of income tax. |
Profitability and Efficiency | 2020 | 2019 | Variation ( bp) | |||||||||
Percentages, except otherwise noted | 3Q | 4Q | vs 4Q19 | |||||||||
Return (1) on average assets | 2.33 | 2.78 | (45 | ) | ||||||||
Return (1) on average shareholders’ equity | 16,09 | 23.10 | (701 | ) | ||||||||
Financial margin(1)(2) | 21.08 | 26.37 | (529 | ) | ||||||||
Efficiency ratio (3) | 42.85 | 46.77 | (392 | ) |
(1) | Annualized. |
(2) | Net interest income, plus net result from financial instruments, plus results from the disposal of assets, plus foreign currency quotation differences, plus certain items included in other operating income, divided by average interest-earning assets. |
(3) | Personnel expenses, plus administrative expenses, plus depreciation and devaluations of assets, divided by net interest income, plus net fee income, plus net result from financial instruments, plus foreign currency quotation differences, plus insurance premiums earned, plus certain items included in other operating income, plus the result from the net monetary position. |
During the Fiscal Year, net income amounted to Ps.22.210 million, Ps.5,686 million (20%) lower than the Ps.27,896 million profit recorded during the previous fiscal year, which represented a 2.33% return on average assets and a 16.09% return on average shareholders’ equity.
9
RESULTS FOR THE QUARTER
Income Statement | 2020 | 2019 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
Net interest income | 12,361 | 11,261 | 17,127 | 10 | (28 | ) | ||||||||||||||
Net fee income | 4,894 | 5,555 | 5,203 | (12) | (6) | |||||||||||||||
Net results from financial instruments | 15,781 | 17,338 | 10,713 | (9) | 47 | |||||||||||||||
Results from the disposal of assets | (724) | 290 | 211 | (350) | (443) | |||||||||||||||
Gold and foreign currency quotation differences | 1,524 | 2,510 | 4,706 | (39) | (68) | |||||||||||||||
Other operating income | 3,684 | 3,802 | 2,714 | (3) | 36 | |||||||||||||||
Loan-loss provisions | (11,496) | (5,732) | (5,512) | 101 | 109 | |||||||||||||||
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Net operating income | 26,024 | 35,024 | 35,162 | (26) | (26) | |||||||||||||||
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Personnel expenses | (5,075) | (5,952) | (6,846) | (15) | (26) | |||||||||||||||
Administrative expenses | (4,917) | (5,087) | (7,863) | (3) | (37) | |||||||||||||||
Depreciations and devaluations of assets | (1,746) | (1,487) | (1,326) | 17 | 32 | |||||||||||||||
Other operating expenses | 999 | (6,660 | ) | (6,945) | (115) | (114) | ||||||||||||||
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Operating income | 15,285 | 15,838 | 12,182 | (3) | 25 | |||||||||||||||
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Results from the net monetary position | (9,010) | (5,824) | (8,317) | 55 | 8 | |||||||||||||||
Results from associates and joint businesses | (121) | 36 | 14 | (436) | (964) | |||||||||||||||
Income tax | (3,447) | (5,068) | (3,667) | (32) | (6) | |||||||||||||||
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Net Income | 2,707 | 4,982 | 212 | (46) | 1,177 | |||||||||||||||
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Other comprehensive income (loss)(1) | 152 | (695) | 1,204 | (122) | (87) | |||||||||||||||
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Total comprehensive income | 2,859 | 4,287 | 1,416 | (33) | 102 | |||||||||||||||
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|
(1) | Net of income tax. |
Profitability and Efficiency | 2020 | 2019 | Variation ( bp) | |||||||||||||||||
Percentages, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
Return (1) on average assets | 1.08 | 2.00 | 0.10 | (92) | 98 | |||||||||||||||
Return (1) on average shareholders’ equity | 7.86 | 13.68 | 0.65 | (582) | 721 | |||||||||||||||
Financial margin(1)(2) | 16.74 | 16.98 | 21.79 | (24) | (505) | |||||||||||||||
Efficiency ratio (3) | 52.15 | 44.55 | 63.65 | 760 | (1,150) |
(1) | Annualized. |
(2) | Net interest income, plus net result from financial instruments, plus results from the disposal of assets, plus foreign currency quotation differences, plus certain items included in other operating income, divided by average interest-earning assets. |
(3) | Personnel expenses, plus administrative expenses, plus depreciation and devaluations of assets, divided by net interest income, plus net fee income, plus net result from financial instruments, plus foreign currency quotation differences, plus insurance premiums earned, plus certain items included in other operating income, plus the result from the net monetary position. |
During the Quarter, net income amounted to Ps.2,707 million, Ps.2,495 million (1,177%) higher than the Ps.212 million recorded during the same quarter of the previous fiscal year. This result was primarily a consequence of decreases of Ps.7,944 million (114%) in operating expenses and of Ps.2,946 million (37%) in administrative expenses, offset by a Ps.9,138 million (26%) lower net operating income.
10
Net Interest Income | 2020 | 2019 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
Interest income | 36,034 | 33,284 | 41,423 | 8 | (13) | |||||||||||||||
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Private sector securities | — | — | (38) | — | (100) | |||||||||||||||
Public Sector securities | 1,279 | 962 | 1,830 | 33 | (30) | |||||||||||||||
Loans and other financing | 32,410 | 30,212 | 36,700 | 7 | (12) | |||||||||||||||
Financial sector | 740 | 551 | 1,399 | 34 | (47) | |||||||||||||||
Non-financial private sector | 31,670 | 29,661 | 35,301 | 7 | (10) | |||||||||||||||
Overdrafts | 2,701 | 2,118 | 4,045 | 28 | (33) | |||||||||||||||
Promissory notes | 12,414 | 12,300 | 10,129 | 1 | 23 | |||||||||||||||
Mortgages | 3,316 | 2,830 | 5,379 | 17 | (38) | |||||||||||||||
Pledge loans | 682 | 351 | 214 | 94 | 219 | |||||||||||||||
Personal loans | 3,921 | 3,996 | 4,054 | (2) | (3) | |||||||||||||||
Credit-card loans | 7,136 | 6,294 | 9,498 | 13 | (25) | |||||||||||||||
Financial leases | 95 | 99 | 194 | (4) | (51) | |||||||||||||||
Pre-financing and financing of exports | 680 | 817 | 1,658 | (17) | (59) | |||||||||||||||
Other | 725 | 856 | 130 | (15) | 458 | |||||||||||||||
Repurchase agreement transactions | 2,345 | 2,110 | 2,931 | 11 | (20) | |||||||||||||||
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Interest expenses | (23,673) | (22,023) | (24,296) | 7 | (3) | |||||||||||||||
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Deposits from the non-financial private sector | (22,587) | (21,284) | (21,261) | 6 | 6 | |||||||||||||||
Saving accounts | (5,753) | (3,317) | (1,568) | 73 | 267 | |||||||||||||||
Time deposits and term investments | (16,638) | (16,397) | (19,434) | 1 | (14) | |||||||||||||||
Other | (196) | (1,570) | (259) | (88) | (24) | |||||||||||||||
Financing from financial institutions | (123) | (148) | (467) | (17) | (74) | |||||||||||||||
Repurchase agreement transactions | (20) | (11) | (206) | 82 | (90) | |||||||||||||||
Other interest-bearing liabilities | 163 | (387) | (457) | (142) | (136) | |||||||||||||||
Notes | (1,106) | (193) | (1,905) | 473 | (42) | |||||||||||||||
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Net interest income | 12,361 | 11,261 | 17,127 | 10 | (28) | |||||||||||||||
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|
Net interest income for the Quarter amounted to Ps.12,361 million, representing a Ps.4,766 million (28%) decrease as compared to the Ps.17,127 million profit recorded from the same quarter of the 2019 fiscal year.
Interest income for the Quarter reached Ps.36,034 million, down 13% from the Ps.41,423 million recorded in the same quarter of the 2019 fiscal year. This decrease was primarily a consequence of lower interests realized on credit-card loans and financing (Ps.2,362 million or 25%), on mortgages (Ps.2,063 million or 38%) and on overdrafts (Ps.1,344 million or 33%), which was offset by higher interests realized on promissory notes (Ps.2,285 million or 23%).
Interest expenses amounted to Ps.23,673 million, down 3% from the same quarter of the 2019 fiscal year, mainly due to lower interests realized on time deposits and term investments (Ps.2,796 million or 14%), which was offset by higher interests on saving accounts (Ps.4,185 million or 267%).
11
Yield and Rates(1) | 2020 | 2019 | Variation (%/bp) | |||||||||||||||||||||||||||||||||||||
Average balances: in millions of pesos | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||||||||||||||||||||||
Yields and rates: annualized nominal % | Av. B. | Int. | Av. B. | Int. | Av. B. | Int. | Av. B. | Int. | Av. B. | Int. | ||||||||||||||||||||||||||||||
In pesos | 580,480 | 34.03 | 630,624 | 31.81 | 402,298 | 49.31 | (8 | ) | 222 | 44 | (1,528) | |||||||||||||||||||||||||||||
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Government securities | 174,629 | 31.48 | 213,069 | 34.05 | 91,531 | 53.67 | (18 | ) | (257 | ) | 91 | (2,219) | ||||||||||||||||||||||||||||
Loans | 369,003 | 33.61 | 367,338 | 31.66 | 277,721 | 48.99 | — | 195 | 33 | (1,538) | ||||||||||||||||||||||||||||||
Other interest-earning assets | 36,848 | 50.33 | 50,217 | 23.34 | 33,046 | 39.96 | (27 | ) | 2,699 | 12 | 1,037 | |||||||||||||||||||||||||||||
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In foreign currency | 60,191 | 8.93 | 64,562 | 5.63 | 152,039 | 4.56 | (7 | ) | 330 | (60 | ) | 437 | ||||||||||||||||||||||||||||
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| |||||||||||||||||||||
Government securities | 5,009 | 27.87 | 210 | (466.67 | ) | 18,236 | (15.25 | ) | 2,285 | 49,454 | (73 | ) | 4,312 | |||||||||||||||||||||||||||
Loans | 53,520 | 7.20 | 62,394 | 7.23 | 131,407 | 7.24 | (14 | ) | (3 | ) | (59 | ) | (4) | |||||||||||||||||||||||||||
Other interest-earning assets | 1,662 | 7.70 | 1,958 | 5.11 | 2,396 | 7.84 | (15 | ) | 259 | (31 | ) | (14) | ||||||||||||||||||||||||||||
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Interest-earning assets | 640,671 | 31.67 | 695,186 | 29.37 | 554,337 | 37.04 | (8 | ) | 230 | 16 | (537) | |||||||||||||||||||||||||||||
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In pesos | 370,725 | 24.54 | 414,155 | 20.42 | 245,431 | 37.53 | (10 | ) | 412 | 51 | (1,299) | |||||||||||||||||||||||||||||
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| |||||||||||||||||||||
Saving accounts | 151,594 | 13.57 | 180,473 | 9.21 | 73,041 | 9.76 | (16 | ) | 436 | 108 | 381 | |||||||||||||||||||||||||||||
Time deposits | 214,820 | 32.00 | 229,128 | 29.33 | 155,789 | 49.45 | (6 | ) | 267 | 38 | (1,745) | |||||||||||||||||||||||||||||
Debt securities | 2,318 | 48.14 | 1,826 | 8.54 | 11,617 | 45.06 | 27 | 3,960 | (80 | ) | 308 | |||||||||||||||||||||||||||||
Other interest-bearing liabilities | 1,993 | 27.09 | 2,728 | 22.14 | 4,984 | 54.42 | (27 | ) | 495 | (60 | ) | (2,733) | ||||||||||||||||||||||||||||
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In foreign currency | 150,470 | 1.98 | 178,679 | 1.49 | 212,803 | 2.33 | (16 | ) | 49 | (29 | ) | (35) | ||||||||||||||||||||||||||||
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| |||||||||||||||||||||
Saving accounts | 81,441 | — | 102,568 | — | 121,918 | (0.00 | ) | (21 | ) | — | (33 | ) | — | |||||||||||||||||||||||||||
Time deposits | 31,930 | 1.08 | 37,443 | 1.41 | 32,228 | 2.42 | (15 | ) | (33 | ) | (1 | ) | (134) | |||||||||||||||||||||||||||
Debt securities | 28,446 | 7.92 | 29,300 | 5.72 | 29,312 | 8.07 | (3 | ) | 220 | (3 | ) | (15) | ||||||||||||||||||||||||||||
Other interest-bearing liabilities | 8,653 | 4.48 | 9,368 | 4.87 | 29,345 | 6.16 | (8 | ) | (39 | ) | (71 | ) | (168) | |||||||||||||||||||||||||||
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| |||||||||||||||||||||
Interest-bearing liabilities | 521,195 | 18.03 | 592,834 | 14.71 | 458,234 | 21.18 | (12 | ) | 332 | 14 | (315) | |||||||||||||||||||||||||||||
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(1) | Does not include foreign currency quotation differences. Annual nominal interest rates were calculated using a 360-day denominator. |
The average interest-earning assets amounted to Ps.640,671 million, increasing Ps.86,334 million (16%) as compared to the figure recorded for the fourth quarter of the previous fiscal year primarily as a consequence of the Ps.91,282 million (33%) increase in the average peso-denominated loan portfolio and the increase of Ps.83,098 million (91%) in the average portfolio of peso-denominated government securities. The foregoing increases were partially offset by a decrease in the average volume of dollar-denominated loans, for Ps.77,887 million (59%), and in dollar-denominated government securities, for Ps.13,227 million (73%).
Average interest-bearing liabilities reached Ps.521,195 million, increasing Ps.62,961 million during the same period primarily due to an increase in the average balance of peso-denominated saving accounts, for Ps.78,553 million (108%), and time deposits, for Ps.59,031 million (38%), offset by a decrease in dollar-denominated saving accounts, for Ps.40,477 million (33%).
The average yield on interest-earning assets for the Quarter was 31.67%, representing a 537 bp decrease as compared to the figure recorded for the same quarter of the prior fiscal year mainly due to a decrease of 2,219 bp in the average yield on peso-denominated government securities and of 1,538 bp in peso-denominated loans. Likewise, the average cost of interest-bearing liabilities was 18.03%, representing a 315 bp decrease as compared to the figure recorded in the fourth quarter of the prior fiscal year mainly due to a 2,733 bp decrease in the average interest rate on other interest-bearing liabilities in pesos and a 1,745 bp decrease in the interest rate on peso-denominated time deposits.
12
Net Fee Income | 2020 | 2019 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
Credit cards | 3,206 | 3,313 | 3,100 | (3) | 3 | |||||||||||||||
Deposit accounts | 1,041 | 1,127 | 1,347 | (8) | (23) | |||||||||||||||
Insurance | 358 | 351 | 308 | 2 | 16 | |||||||||||||||
Financial fees | 12 | 47 | 74 | (74) | (84) | |||||||||||||||
Credit-related fees | 48 | 177 | 37 | (73) | 30 | |||||||||||||||
Foreign trade | 556 | 558 | 485 | — | 15 | |||||||||||||||
Collections | 463 | 454 | 431 | 2 | 7 | |||||||||||||||
Utility-Bills collection services | 619 | 563 | 648 | 10 | (4) | |||||||||||||||
Mutual Funds | 98 | 126 | 280 | (22) | (65) | |||||||||||||||
Other | 459 | 520 | 409 | (12) | 12 | |||||||||||||||
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|
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|
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|
| |||||||||||
Total fee income | 6,860 | 7,236 | 7,119 | (5) | (4) | |||||||||||||||
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|
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|
| |||||||||||
Total expenditures | (1,966) | (1,681) | (1,916) | 17 | 3 | |||||||||||||||
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| |||||||||||
Net fee income | 4,894 | 5,555 | 5,203 | (12) | (6) | |||||||||||||||
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|
|
|
|
|
|
Net fee income amounted to Ps.4,894 million, down 6% from the Ps.5,203 million recorded in the fourth quarter of the previous fiscal year mainly due to lower fees on deposit accounts (Ps.306 million or 23%).
Net Income from Financial Instruments | 2020 | 2019 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
Government securities | 13,491 | 16,737 | 9,914 | (19) | 36 | |||||||||||||||
Argentine Central Bank | 11,478 | 14,581 | 10,819 | (21) | 6 | |||||||||||||||
Other | 2,013 | 2,156 | (905) | (7) | 322 | |||||||||||||||
Private sector securities | 1,689 | 156 | 469 | 983 | 260 | |||||||||||||||
Derivative financial instruments | 601 | 445 | 332 | 35 | 81 | |||||||||||||||
Forward transactions | 585 | 444 | 346 | 32 | 69 | |||||||||||||||
Interest-rate swaps | 16 | 1 | (14) | 1,500 | 214 | |||||||||||||||
Results from other financial assets/liabilities | — | — | (2) | — | (100) | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net income from financial instruments | 15,781 | 17,338 | 10,713 | (9) | 47 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
Net income from financial instruments for the Quarter amounted to Ps.15,781 million, up Ps.5,068 million from the Ps.10,713 million recorded in the same quarter of the 2019 fiscal year primarily as a consequence of a Ps.2,918 million (322%) increase in results from other government securities and of Ps.1,220 million (260%) increase from private sector securities. Results from private sector securities include Ps.1,387 million realized from the valuation of Prisma Medios de Pago SA.
Results from asset disposals equated to a Ps.724 million loss, down 443% from the Ps.212 million recorded in the same quarter of the previous fiscal year mainly due to the collection upon maturity of Bonos del Tesoro Nacional (Bonds from the Argentine National Treasury or “Botes”).
During the Quarter a Ps.1,524 million profit from gold and foreign currency quotation differences was recorded, as compared to a Ps.4,706 million profit recorded from the same quarter of the 2019 fiscal year. This result includes a Ps.933 million gain from foreign-currency trading.
13
Other Operating Income | 2020 | 2019 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
Other financial income(1)(2) | (182) | 112 | (24) | 263 | 658 | |||||||||||||||
Fees from bundles of products(1) | 1,352 | 1,531 | 1,384 | (12) | (2) | |||||||||||||||
Rental of safe deposit boxes(1) | 284 | 319 | 261 | (11) | 9 | |||||||||||||||
Other fee income(1) | 250 | 195 | 270 | 28 | (7) | |||||||||||||||
Other adjustments and interest on miscellaneous receivables | 1,349 | 1,352 | 438 | — | 208 | |||||||||||||||
Other | 631 | 293 | 385 | 115 | 64 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total other operating income | 3,684 | 3,802 | 2,714 | (3) | 36 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Item included for calculating the efficiency ratio. |
(2) | Item included for calculating the financial margin. |
Other operating income for the Quarter reached Ps.3,684 million, increasing Ps.970 million (2%) from the Ps.3,589 million profit recorded in the fourth quarter of the 2019 fiscal year mainly as a consequence of a Ps.911 million (208%) increase in other adjustments and interest on miscellaneous receivables.
Provisions for loan losses for the Quarter amounted to Ps.11,496 million, Ps.5,984 million (109%) higher than the figure recorded in the same quarter of the prior fiscal year. During the Quarter, provision for possible losses as a consequence of COVID (included in other operating expenses) was included in the expected credit-loss model.
Personnel expenses amounted to Ps.5,075 million, decreasing 26% from the same quarter of the 2019 fiscal year mainly due to a 6% decrease in staff and lower charges for severance payments.
Administrative Expenses | 2020 | 2019 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
Fees and compensations for services | (101) | 486 | 976 | (121) | (110) | |||||||||||||||
Fees to directors and syndics | 9 | 14 | 12 | (36) | (25) | |||||||||||||||
Publicity, promotion, and research expenses | 308 | 218 | 303 | 41 | 2 | |||||||||||||||
Taxes | 1,237 | 885 | 1,095 | 40 | 13 | |||||||||||||||
Maintenance and repairment of goods and IT | 1,161 | 1,198 | 2,855 | (3) | (59) | |||||||||||||||
Electricity and communications | 343 | 414 | 417 | (17) | (18) | |||||||||||||||
Stationery and office supplies | 53 | 37 | 106 | 43 | (50) | |||||||||||||||
Hired administrative services | 814 | 731 | 855 | 11 | (5) | |||||||||||||||
Security | 161 | 176 | 138 | (9 | ) | 17 | ||||||||||||||
Insurance | 53 | 56 | 34 | (5 | ) | 56 | ||||||||||||||
Other | 879 | 872 | 1,072 | 1 | (18) | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total administrative expenses | 4,917 | 5,087 | 7,863 | (3) | (37) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
Administrative expenses for the Quarter totaled Ps.4,917 million, down 37% as compared to the fourth quarter of the 2019 fiscal year primarily as a consequence of a Ps.1,694 million (59%) decrease in maintenance and repairment of goods and IT and Ps.1,077 million (110%) lower fees and compensation realized for services due to the reimbursement of expenses.
Depreciation and devaluation of assets amounted to Ps 1,746 million, up 32% from the fourth quarter of the 2019 fiscal year. This loss includes Ps.192 million from financial leases.
14
Other Operating Expenses | 2020 | 2019 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
Contribution to the Deposit Insurance Fund(1)(2) | 285l | 289 | 259 | (1) | 10 | |||||||||||||||
Other financial expenses(1)(2) | (27) | (6) | 525 | 350 | (105) | |||||||||||||||
Turnover tax | 2,364 | 3,335 | 3,761 | (29) | (37) | |||||||||||||||
On financial income(1)(2) | 1,469 | 2,292 | 2,606 | (36) | (44) | |||||||||||||||
On fees(1) | 790 | 921 | 1,019 | (14) | (22) | |||||||||||||||
On other items | 105 | 122 | 136 | (14) | (23) | |||||||||||||||
Other fee-related expenses(1) | 1,503 | 1,386 | 1,930 | 8 | (22) | |||||||||||||||
Other provisions | (5,505) | 1,371 | 7 | (502) | (78,743) | |||||||||||||||
Claims | 118 | 105 | 157 | 12 | (25) | |||||||||||||||
Other | 263 | 180 | 306 | 46 | (14) | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total other operating expenses | (999) | 6,660 | 6,945 | (115) | (114) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Item included for calculating the efficiency ratio. |
(2) | Item included for calculating the financial margin. |
Other operating expenses for the Quarter reached Ps.999 million, representing a Ps.7,944 million (114%) decrease as compared to the $6,945 million figure recorded in the fourth quarter of the previous fiscal year. This decrease was a consequence of the incorporation of certain provisions for COVID in connection with the expected credit-loss model.
The income tax charge for the Quarter was Ps.3,447 million, Ps.220 million lower than the figure recorded in the fourth quarter of the 2019 fiscal year.
Other comprehensive income for the Quarter amounted to Ps.152 million, as compared to a Ps.1,204 million gain recorded during the same period of the 2019 fiscal year.
15
SELECTED FINANCIAL INFORMATION
Balance Sheet | 2020 | 2019 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks | 172,309 | 156,760 | 175,815 | 10 | (2) | |||||||||||||||
Debt securities | 155,892 | 202,708 | 89,442 | (23) | 74 | |||||||||||||||
Net loans and other financing | 443,326 | 443,548 | 426,496 | — | 4 | |||||||||||||||
Other financial assets | 112,339 | 98,909 | 91,705 | 14 | 23 | |||||||||||||||
Equity investments in subsidiaries, associates, and joint businesses | 480 | 441 | 421 | 9 | 14 | |||||||||||||||
Property, bank premises, equipment | 38,190 | 38,769 | 39,565 | (1) | (3) | |||||||||||||||
Intangible assets | 12,850 | 12,741 | 9,699 | 1 | 32 | |||||||||||||||
Other assets | 12,144 | 6,195 | 7,223 | 96 | 68 | |||||||||||||||
Assets available for sale | 29 | 57 | 53 | (49) | (45) | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total assets | 947,559 | 960,128 | 840,419 | (1) | 13 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Liabilities | ||||||||||||||||||||
Deposits | 678,103 | 686,277 | 541,621 | (1) | 25 | |||||||||||||||
Financing from financial entities | 10,192 | 10,451 | 27,849 | (2) | (63) | |||||||||||||||
Other financial liabilities | 40,946 | 41,911 | 54,776 | (2) | (25) | |||||||||||||||
Notes | 7,904 | 10,451 | 25,742 | (24) | (69) | |||||||||||||||
Subordinated notes | 21,654 | 21,374 | 21,101 | 1 | 3 | |||||||||||||||
Other liabilities | 39,414 | 43,178 | 41,074 | (9) | (4) | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total liabilities | 798,213 | 813,642 | 712,163 | (2 | ) | 12 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Shareholders’ equity | 149,346 | 146,486 | 128,256 | 2 | 16 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Foreign currency assets and liabilities | ||||||||||||||||||||
Assets | 214,127 | 211,356 | 273,487 | 1 | (22) | |||||||||||||||
Liabilities | 215,001 | 213,962 | 271,244 | — | (21) | |||||||||||||||
Net forward purchases / (sales) of foreign currency (1) | 374 | (185) | 33 | (302) | 1,033 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net global position in foreign currency | (500) | (2,791) | 2,276 | 82 | (122) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Recorded off-balance sheet. |
16
LEVEL OF ACTIVITY
Financing to the Private Sector(1) | 2020 | 2019 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
In pesos | 422,133 | 404,015 | 317,218 | 4 | 33 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Loans | 380,045 | 360,039 | 270,627 | 6 | 40 | |||||||||||||||
UVA-adjusted loans | 28,852 | 30,843 | 36,670 | (6) | (21) | |||||||||||||||
Financial leases | 587 | 699 | 1,164 | (16) | (50) | |||||||||||||||
Debt securities | — | 3 | 295 | (100) | (100) | |||||||||||||||
Other financing(2) | 12,649 | 12,431 | 8,462 | 2 | 49 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
In foreign currency | 65,485 | 91,816 | 158,273 | (29) | (59) | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Loans | 50,562 | 60,053 | 125,343 | (16) | (60) | |||||||||||||||
Financial leases | 1,389 | 1,512 | 2,071 | (8) | (33) | |||||||||||||||
Debt securities | — | 22 | 392 | (100) | (100) | |||||||||||||||
Other financing(2) | 13,534 | 30,229 | 30,467 | (55) | (56) | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total financing to the private sector | 487,618 | 495,831 | 475,491 | (2) | 3 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Includes IFRS adjustment. |
(2) | Includes certain off-balance sheet accounts related to guarantees granted. |
As of December 31, 2020, total financing to the private sector reached Ps.487,618 million, 3% higher than the figure recorded from the prior fiscal year and primarily as a consequence of a Ps.109,418 million (40%) increase of peso-denominated loans, offset by a Ps.74,781 million (60%) decrease of dollar-denominated loans.
Market Share(1) | 2020 | 2019 | Variation (bp) | |||||||||||||||||
Percentages, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
Total loans | 12.95 | 12.69 | 11.52 | 26 | 143 | |||||||||||||||
Loans to the private sector | 13.03 | 12.74 | 11.50 | 29 | 153 |
(1) | According to the daily information on loans published by the Argentine Central Bank. Only principal as of the last day of each quarter. |
The Bank’s market share of loans to the private sector as of December 31, 2020, was 13.03%, increasing 153 bp from December 31, 2019.
17
Breakdown of loans and other financing | 2020 | 2019 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
Financial entities | 14,714 | 12,600 | 14,728 | 17 | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Loans | 14,701 | 12,600 | 14,698 | 17 | — | |||||||||||||||
Other financing | 13 | — | 30 | — | (57) | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Non-financial private sector and residents abroad | 455,681 | 453,027 | 431,491 | 1 | 6 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Loans | 444,758 | 438,335 | 417,942 | 1 | 6 | |||||||||||||||
Overdrafts | 31,300 | 21,128 | 22,545 | 48 | 39 | |||||||||||||||
Promissory notes | 143,770 | 153,226 | 102,394 | (6) | 40 | |||||||||||||||
Mortgage loans | 16,302 | 17,625 | 20,493 | (8) | (20) | |||||||||||||||
Pledge loans | 11,587 | 11,094 | 4,369 | 4 | 165 | |||||||||||||||
Personal loans | 32,543 | 35,160 | 36,166 | (7) | (10) | |||||||||||||||
Credit-card loans | 151,058 | 136,458 | 129,698 | 11 | 16 | |||||||||||||||
Pre-financing and financing of exports | 29,672 | 34,512 | 73,430 | (14) | (60) | |||||||||||||||
Other Loans | 6,382 | 10,746 | 10,032 | (41) | (36) | |||||||||||||||
Accrued interest, adjustments and foreign currency quotation differences receivable | 24,378 | 20,436 | 20,613 | 19 | 18 | |||||||||||||||
Documented interest | (2,234) | (2,050) | (1,798) | 9 | 24 | |||||||||||||||
Financial leases | 1,976 | 2,211 | 3,235 | (11) | (39) | |||||||||||||||
Other financing | 8,947 | 12,481 | 10,314 | (28) | (13) | |||||||||||||||
Non-financial public sector | — | 1 | 10 | (100) | (100) | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total loans and other financing | 470,395 | 465,628 | 446,229 | 1 | 5 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Allowances | (27,069) | (22,080) | (19,733) | 23 | 37 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Loans | (26,543) | (21,780) | (19,440) | 22 | 37 | |||||||||||||||
Financial leases | (35) | (43) | (60) | (19) | (42) | |||||||||||||||
Other financing | (491) | (257) | (233) | 91 | 111 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net loans and other financing | 443,326 | 443,548 | 426,496 | — | 4 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
As of December 31, 2020, net loans and other financing after provisions amounted to Ps.443,326 million, increasing 4% from December 31, 2019 primarily due to a Ps.41,376 million (40%) increase in promissory notes and a Ps.21,360 million (16%) increase in credit card financing and loans, offset by a Ps.43,758 million (60%) decrease in pre-financing and financing of exports.
Loans by Type of Borrower | 2020 | 2019 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
Large corporations | 96,420 | 95,355 | 115,616 | 1 | (17) | |||||||||||||||
Corporations | 41,045 | 46,256 | 36,354 | (11) | 13 | |||||||||||||||
SMEs | 30,887 | 30,818 | 22,549 | — | 37 | |||||||||||||||
Agribusiness | 112,914 | 108,853 | 68,166 | 4 | 66 | |||||||||||||||
Individuals | 171,944 | 166,365 | 171,617 | 3 | — | |||||||||||||||
Financial sector | 14,701 | 12,600 | 14,698 | 17 | — | |||||||||||||||
Residents abroad | 1,102 | 2,085 | 10,080 | (47) | (89) | |||||||||||||||
Other | 2,738 | 821 | 1,713 | 233 | 60 | |||||||||||||||
IFRS adjustment | (12,292) | (12,217) | (8,143) | 1 | 51 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total loans | 459,459 | 450,936 | 432,650 | 2 | 6 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Allowances | (26,543) | (21,780) | (19,440) | 22 | 37 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net total loans | 432,916 | 429,156 | 413,210 | 1 | 5 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
18
Loans by Sector of Activity | 2020 | 2019 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
Financial sector | 14,701 | 12,600 | 14,698 | 17 | — | |||||||||||||||
Residents abroad | 1,102 | 2,085 | 10,080 | (47) | (89) | |||||||||||||||
Services | 50,089 | 48,159 | 37,978 | 4 | 32 | |||||||||||||||
Agriculture and livestock | 102,003 | 101,180 | 65,081 | 1 | 57 | |||||||||||||||
Consumer | 171,949 | 163,941 | 171,637 | 5 | — | |||||||||||||||
Retail and wholesale trade | 46,258 | 38,337 | 31,450 | 21 | 47 | |||||||||||||||
Construction | 4,294 | 5,336 | 6,126 | (20) | (30) | |||||||||||||||
Manufacturing industry | 53,794 | 60,547 | 66,162 | (11) | (19) | |||||||||||||||
Other | 27,561 | 30,968 | 37,581 | (11) | (27) | |||||||||||||||
IFRS adjustment | (12,292) | (12,217) | (8,143) | 1 | 51 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total loans | 459,459 | 450,936 | 432,650 | 2 | 6 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Allowances | (26,543) | (21,780) | (19,440) | 22 | 37 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net total loans | 432,916 | 429,156 | 413,210 | 1 | 5 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
In the last twelve months, loans to the private sector increased primarily as a result of the growth in loans granted in the agribusiness segment (Ps.44,748 million or 66%) and to SMEs (Ps.8,338 million or 37%), offset by a decrease in loans granted to large corporations (Ps.19,196 million or 17%). By sector of activity, the higher levels of growth were recorded in the agriculture and livestock sector (Ps.36,922 million or 57%) and in the Retail and wholesale trade sector (Ps.14,808 million or 47%), while loans granted to the manufacturing industry sector decreased (Ps.12,368 million or 19%).
Net Exposure to the Argentine Public Sector(1) | 2020 | 2019 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
Government securities net position | 177,615 | 233,069 | 110,137 | (24) | 61 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Leliq | 128,325 | 165,831 | 79,153 | (23) | 62 | |||||||||||||||
Botes | 21,492 | 20,795 | 14,744 | 3 | 46 | |||||||||||||||
Other | 27,798 | 46,443 | 16,240 | (40) | 71 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Other receivables resulting from financial brokerage | 60,885 | 40,358 | 41,028 | 51 | 48 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Repurchase agreement transactions - BCRA | 60,842 | 40,325 | 40,944 | 51 | 49 | |||||||||||||||
Loans and other financing | 13 | 1 | 40 | 1,200 | (68) | |||||||||||||||
Trust certificates of participation and securities | 30 | 32 | 44 | (6) | (32) | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total exposure to the public sector | 238,500 | 273,427 | 151,165 | (13) | 58 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Excludes deposits with the Argentine Central Bank, which constitute one of the items by which the Bank complies with minimum cash requirements. |
As of December 31, 2020, the Bank’s exposure to the public sector amounted to Ps.238,500 million, representing a 58% increase during the last twelve months. Excluding exposure to the Argentine Central Bank (with respect to Leliq and repurchase agreement transactions), net exposure to the public sector reached Ps.49,333 million (5% of total assets), while as of December 31, 2019, it amounted to Ps.31,068 million (4% of total assets).
19
Deposits | 2020 | 2019 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
In pesos | 511,187 | 523,473 | 342,433 | (2) | 49 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Current accounts | 105,843 | 103,440 | 92,380 | 2 | 15 | |||||||||||||||
Saving accounts | 182,972 | 168,767 | 80,995 | 8 | 126 | |||||||||||||||
Time deposits | 208,937 | 238,261 | 158,860 | (12) | 32 | |||||||||||||||
UVA-adjusted time deposits | 5,566 | 4,680 | 1,021 | 19 | 445 | |||||||||||||||
Other | 1,980 | 2,261 | 2,310 | (12) | (14) | |||||||||||||||
Interests and adjustments | 5,889 | 6,064 | 6,867 | (3) | (14) | |||||||||||||||
|
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|
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|
|
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| |||||||||||
In foreign currency | 166,916 | 162,804 | 199,188 | 3 | (16) | |||||||||||||||
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|
| |||||||||||
Saving accounts | 132,133 | 120,620 | 164,702 | 10 | (20) | |||||||||||||||
Time deposits | 31,212 | 38,981 | 33,123 | (20) | (6) | |||||||||||||||
Other | 3,478 | 3,040 | 1,276 | 14 | 173 | |||||||||||||||
Interests and adjustments | 93 | 163 | 87 | (43) | 7 | |||||||||||||||
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|
|
|
|
|
|
|
|
| |||||||||||
Total deposits | 678,103 | 686,277 | 541,621 | (1) | 25 | |||||||||||||||
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|
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|
|
As of December 31, 2020, the Bank’s deposits amounted to Ps.678,103 million, representing a 25% increase during the last twelve months. This was a consequence of the Ps.168,754 million (49%) growth of peso-denominated deposits, with saving accounts up Ps.101,977 million (126%) and time deposits up Ps.50,077 million (32%), offset by a Ps.32,569 (20%) decrease of dollar-denominated saving accounts.
At the end of the Quarter, there were 6 million deposit accounts, 17% more than the figure recorded for the same period of the prior fiscal year.
Market Share(1) | 2020 | 2019 | Variation (%) | |||||||||||||||||
Percentages, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
Total deposits | 8.42 | 8.38 | 8.23 | 4 | 19 | |||||||||||||||
Private sector deposits | 10.07 | 10.15 | 9.92 | (8) | 15 |
(1) | According to the daily information on loans published by the Argentine Central Bank. Balances as of the last day of each quarter. |
As of December 31, 2020, the Bank’s estimated market share of private sector deposits in the Argentine financial system was 10.07%, increasing 15 bp from the figure recorded for the same period of the prior fiscal year.
Financial Liabilities | 2020 | 2019 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
Financial entities | 10,192 | 10,451 | 27,849 | (2) | (63) | |||||||||||||||
Financing from credit-card purchases | 20,886 | 16,209 | 23,597 | 29 | (11) | |||||||||||||||
Notes | 7,904 | 10,451 | 25,741 | (24) | (69) | |||||||||||||||
Subordinated notes | 21,654 | 21,374 | 21,100 | 1 | 3 | |||||||||||||||
Creditors from purchases of foreign currency | 506 | 399 | 2,237 | 27 | (77) | |||||||||||||||
Collections on account of third parties | 11,602 | 13,587 | 15,977 | (15) | (27) | |||||||||||||||
Other financial liabilities | 7,952 | 11,716 | 12,965 | (32) | (39) | |||||||||||||||
|
|
|
|
|
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|
|
|
| |||||||||||
Total financial liabilities | 80,696 | 84,187 | 129,468 | (4) | (38) | |||||||||||||||
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|
|
|
|
|
|
|
|
Financial liabilities at the end of the Quarter amounted to Ps.80,696 million, Ps.48,770 million (38%) lower than the Ps.129,466 million recorded during the prior fiscal year. This decline was mainly due to decreases of Ps.17,837 million (69%) in notes and of Ps.17,657 million (63%) in financial liabilities with financial entities.
20
ASSET QUALITY
Financing Portfolio Quality | 2020 | 2019 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
Non-accrual portfolio(1) | 6,210 | 10,901 | 17,704 | (43) | (65) | |||||||||||||||
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|
|
|
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|
|
|
| |||||||||||
With preferred guarantees | 722 | 1,376 | 1,768 | (48) | (59) | |||||||||||||||
With other guarantees | 748 | 1,561 | 1,645 | (52) | (55) | |||||||||||||||
Without guarantees | 4,740 | 7,964 | 14,291 | (40) | (67) | |||||||||||||||
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|
|
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| |||||||||||
Total Allowances for loan losses(2) | 31,140 | 32,869 | 19,547 | (5) | 59 | |||||||||||||||
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| |||||||||||
Relevant ratios (%) | Variation ( bp) | |||||||||||||||||||
Non-accrual portfolio to private-sector financing | 1.27 | 2.20 | 4.15 | (93) | (288) | |||||||||||||||
Total allowances for loan losses to private-sector financing | 6.39 | 6.63 | 4.58 | (24) | 181 | |||||||||||||||
Total allowances for loan losses to non-accrual portfolio | 501.45 | 301.52 | 110.41 | 19,993 | 39,104 | |||||||||||||||
Non-accrual portfolio with guarantees to non-accrual portfolio | 23.67 | 26.94 | 19.28 | (327) | 439 | |||||||||||||||
Cost of Risk(3) | 4.81 | 4.92 | 7.36 | (11) | (255) |
(1) | The non-accrual portfolio includes loans classified under the following categories of the Argentine Central Bank classification: With Problems and Medium Risk, High Risk of Insolvency and High Risk and Uncollectible. |
(2) | Includes allowances on unused balances of credit-cards and overdrafts in current accounts. |
(3) | Includes provisions charged to income on unused balances of credit-cards and overdrafts in current accounts. Annualized. |
The non-accrual portfolio (which includes certain items of other financial assets and guarantees granted) amounted to Ps.6,210 million as of December 31, 2020, representing 1.27% of private-sector financing and a 288 bp decrease as compared to the 4.15% recorded in the same quarter of the 2019 fiscal year. This decrease was mainly due to the flexibilization of the parameters in respect of the classification of debtors established by the Argentine Central Bank.
Considering the provisions on unused balances of credit cards and overdrafts, the Bank’s coverage of the non-accrual portfolio with total allowances for loan losses reached 501.45%, compared to 110.41% from the same period of the prior fiscal year.
Loan Portfolio Quality | 2020 | 2019 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
Non-accrual loans(1) | 6,084 | 11,120 | 19,147 | (45) | (68) | |||||||||||||||
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| |||||||||||
With preferred guarantees | 705 | 1,339 | 1,751 | (47) | (60) | |||||||||||||||
With other guarantees | 701 | 1,528 | 1,804 | (54) | (61) | |||||||||||||||
Without guarantees | 4,678 | 8,253 | 15,592 | (43) | (70) | |||||||||||||||
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| |||||||||||
Allowance for loan losses | 26,543 | 21,780 | 19,440 | 22 | 37 | |||||||||||||||
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| |||||||||||
Relevant ratios (%) | Variation ( bp) | |||||||||||||||||||
Non-accrual loans to private-sector loans | 1.32 | 2.47 | 4.43 | (115) | (311) | |||||||||||||||
Allowance for loan losses to private-sector loans | 5.78 | 4.83 | 4.49 | 95 | 129 | |||||||||||||||
Allowance for loan losses to non-accrual loans | 436.28 | 195.86 | 101.53 | 24,042 | 33,475 | |||||||||||||||
Non-accrual loans with guarantees to non-accrual loans | 23.11 | 25.78 | 18.57 | (267) | 454 | |||||||||||||||
Cost of risk(2) | 11.58 | 5.57 | 4.65 | 601 | 693 |
(1) | The non-accrual portfolio includes loans classified under the following categories of the Argentine Central Bank classification: With Problems and Medium Risk, High Risk of Insolvency and High Risk and Uncollectible. |
(2) | Annualized. |
The Bank’s non-accrual loan portfolio amounted to Ps.6,084 million as of December 31, 2020, representing 1.32% of total loans to the private sector, decreasing 311 bp from the 4.43% ratio recorded for the prior fiscal year mainly due to the flexibilization of applicable debtor classification regulations.
The coverage of the non-accrual loan portfolio with allowances for loan losses reached 436.28% as of the end of the Quarter, as compared to 101.53% from the same period of the prior fiscal year.
21
Analysis of Loan Loss Experience | 2020 | 2019 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
Allowance for loan losses at the beginning of the Quarter | ||||||||||||||||||||
Changes in the allowance for loan losses | 21,780 | 19,066 | 18,294 | 14 | 19 | |||||||||||||||
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|
| |||||||||||
Provisions charged to income | ||||||||||||||||||||
Provisions charged to income | 11,103 | 5,338 | 4,915 | 108 | 126 | |||||||||||||||
Charge offs | (3,217) | (763) | (1,349) | 322 | 138 | |||||||||||||||
Other | — | — | 81 | — | (100) | |||||||||||||||
Effect of inflation | (3,123) | (1,861) | (2,501) | 68 | 25 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Allowance for loan losses at the end of the Quarter | 26,543 | 21,780 | 19,440 | 22 | 37 | |||||||||||||||
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| |||||||||||
Charge to the income statement | ||||||||||||||||||||
Provisions charged to income(1) | (11,103) | (5,338) | (4,915) | 108 | 126 | |||||||||||||||
Direct charge offs(1) | (128) | (210) | (196) | (39) | (35) | |||||||||||||||
Bad debts recovered | 306 | 159 | 82 | 92 | 273 | |||||||||||||||
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| |||||||||||
Net charge to the income statement | (10,925) | (5,389) | (5,029) | 103 | 117 | |||||||||||||||
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|
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(1) | Item included for calculating the cost of risk. |
During the Quarter, Ps.3,217 million were charged off against the allowance for loan losses and direct charges to the income statement for Ps.128 million were made.
CAPITALIZATION AND LIQUIDITY
The minimum capital requirement and the corresponding integration are presented below. Balances are disclosed in accordance with applicable regulations in force as of each period referenced.
Regulatory Capital | 2020 | 2019 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
Minimum capital required (A) | 56,069 | 49,973 | 37,662 | 12 | 49 | |||||||||||||||
Allocated to credit risk | 42,458 | 38,025 | 29,149 | 12 | 46 | |||||||||||||||
Allocated to market risk | 1,419 | 973 | 905 | 46 | 57 | |||||||||||||||
Allocated to operational risk | 12,192 | 10,975 | 7,608 | 11 | 60 | |||||||||||||||
Computable capital (B) | 157,061 | 141,035 | 80,785 | 11 | 94 | |||||||||||||||
Tier I | 129,584 | 116,222 | 61,392 | 11 | 111 | |||||||||||||||
Tier II | 27,477 | 24,813 | 19,393 | 11 | 42 | |||||||||||||||
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| |||||||||||
Excess over required capital (B) (A) | 100,992 | 91,062 | 43,123 | 11 | 134 | |||||||||||||||
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| |||||||||||
Risk weighted assets | 685,407 | 610,815 | 459,900 | 12 | 49 | |||||||||||||||
Variation ( bp) | ||||||||||||||||||||
Total capital ratio (%) | 22.92 | 23.09 | 17.57 | (17) | 535 | |||||||||||||||
Tier I capital ratio (%) | 18.91 | 19.03 | 13.35 | (12) | 556 |
As of December 31, 2020, the Bank’s computable capital amounted to Ps.157,061 million, Ps.100,992 million (180%) higher than the Ps.56,069 million minimum capital requirement. As of December 31, 2019, this excess amounted to Ps.43,123 million (115%).
The minimum capital requirement increased Ps.18,407 million as compared to December 31, 2019, mainly due to the expansion of the regulatory requirements on risk weighted assets. Computable capital increased Ps.76,276 million during the same period primarily as consequence of the results generated during the Fiscal Year and due to an increase resulting from the accounting for shareholders’ equity as a result of certain inflation adjustment. The total capital ratio was 22.92%, increasing 535 bp during the last twelve months.
22
Liquidity | 2020 | 2019 | Variation (%) | |||||||||||||||||
Percentages, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
Cash and due from banks | 172,309 | 156,760 | 175,815 | 10 | (2 | ) | ||||||||||||||
Government securities | 66,944 | 102,049 | 59,389 | (34 | ) | 13 | ||||||||||||||
Call-money | 7,181 | 5,559 | 1,499 | 29 | 379 | |||||||||||||||
Overnight placements in correspondent banks | 1,100 | 2,083 | 10,072 | (47 | ) | (89 | ) | |||||||||||||
Net repurchase agreement transactions | 60,996 | 40,346 | 40,944 | 51 | 49 | |||||||||||||||
Escrow accounts | 11,445 | 10,478 | 10,246 | 9 | 12 | |||||||||||||||
Other financial assets | 88 | 92 | — | (4 | ) | — | ||||||||||||||
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|
|
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|
| |||||||||||
Total liquid assets | 320,063 | 317,367 | 297,965 | 1 | 7 | |||||||||||||||
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| |||||||||||
Liquidity ratios | Variation ( bp) | |||||||||||||||||||
Liquid assets as a percentage of transactional deposits | 76.03 | 80.79 | 88.13 | (476 | ) | (1,210 | ) | |||||||||||||
Liquid assets as a percentage of total deposits | 47.20 | 46.24 | 55.01 | 96 | (781 | ) |
As of December 31, 2020, the Bank’s liquid assets represented 76.03% of the Bank’s transactional deposits and 47.20% of its total deposits, as compared to 88.13% and 55.01%, respectively, as of December 31, 2019.
23
TARJETAS REGIONALES
INFORMATION DISCLOSURE
The data shown in the following tables correspond to Tarjetas Regionales, consolidated line by line with its subsidiaries.
RESULTS FOR THE FISCAL YEAR
Income Statement | ||||||||||||
In millions of pesos, except otherwise noted | 2020 | 2019 | Variation (%) | |||||||||
Net interest income | 16,841 | 13,268 | 27 | |||||||||
Net fee income | 16,670 | 17,675 | (6 | ) | ||||||||
Net results from financial instruments | 1,989 | 3,504 | (43 | ) | ||||||||
Gold and foreign currency quotation differences | 370 | 166 | (123 | ) | ||||||||
Other operating income | 3,475 | 4,924 | (29 | ) | ||||||||
Loan loss provisions | (3,884 | ) | (6,896 | ) | (44 | ) | ||||||
Net operating income | 35,461 | 32,641 | 9 | |||||||||
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| |||||||
Personnel expenses | (8,080 | ) | (7,544 | ) | 7 | |||||||
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| |||||||
Administrative expenses | (8,678 | ) | (8,249 | ) | 5 | |||||||
Depreciations and devaluations of assets | (1,868 | ) | (1,559 | ) | 20 | |||||||
Other operating expenses | (7,523 | ) | (6,631 | ) | 13 | |||||||
Operating income | 9,312 | 8,658 | 8 | |||||||||
Results from the net monetary position | (5,435 | ) | (7,531 | ) | (28 | ) | ||||||
Income tax | (1,728 | ) | (228 | ) | 658 | |||||||
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|
|
|
|
| |||||||
Net income | 2,149 | 899 | 139 | |||||||||
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|
|
| |||||||
Profitability and Efficiency | ||||||||||||
Percentages, except otherwise noted | 2020 | 2019 | Variation ( bp) | |||||||||
Return(1) on average assets | 2.49 | 0.97 | 152 | |||||||||
Return(1) on average shareholders’ equity | 8.72 | 4.10 | 462 | |||||||||
Financial margin(1)(2) | 21.62 | 16.21 | 541 | |||||||||
Efficiency ratio (3) | 69.75 | 71.98 | (223 | ) |
(1) | Annualized. |
(2) | Net interest income, plus net result from financial instruments, plus foreign currency quotation differences, plus certain items included in other operating income and expenses, divided by average interest-earning assets. |
(3) | Personnel expenses, plus administrative expenses, plus depreciation and devaluations of assets, divided by net interest income, plus net fee income, plus net result from financial instruments, plus foreign currency quotation differences, plus insurance premiums earned, plus certain items included in other operating income, plus the result from the net monetary position. |
24
RESULTS FOR THE QUARTER
Income Statement | 2020 | 2019 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
Net interest income | 5,006 | 3,644 | 2,924 | 37 | 71 | |||||||||||||||
Net fee income | 4,418 | 4,088 | 4,292 | 8 | 3 | |||||||||||||||
Net results from financial instruments | 133 | 497 | 810 | (73 | ) | (84 | ) | |||||||||||||
Gold and foreign currency quotation differences | 61 | 14 | 168 | 336 | (64 | ) | ||||||||||||||
Other operating income | 856 | 825 | 1,021 | 4 | (16 | ) | ||||||||||||||
Loan loss provisions | (441 | ) | (577 | ) | 286 | (24 | ) | (254 | ) | |||||||||||
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|
| |||||||||||
Net operating income | 10,033 | 8,491 | 9,501 | 18 | 6 | |||||||||||||||
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|
|
| |||||||||||
Personnel expenses | (2,425 | ) | (1,932 | ) | (1,962 | ) | 26 | 24 | ||||||||||||
Administrative expenses | (2,136 | ) | (2,351 | ) | (2,127 | ) | (9 | ) | — | |||||||||||
Depreciations and devaluations of assets | (515 | ) | (464 | ) | (429 | ) | 11 | 20 | ||||||||||||
Other operating expenses | (2,466 | ) | (1,683 | ) | (1,700 | ) | 47 | 45 | ||||||||||||
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|
|
|
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|
|
| |||||||||||
Operating income | 2,491 | 2,061 | 3,283 | 21 | (24 | ) | ||||||||||||||
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|
|
| |||||||||||
Results from the net monetary position | (1,969 | ) | (1,286 | ) | (2,049 | ) | 53 | (4 | ) | |||||||||||
Income tax | (370 | ) | (380 | ) | (45 | ) | (3 | ) | 722 | |||||||||||
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|
|
|
|
|
| |||||||||||
Net income | 152 | 395 | 1,189 | (62 | ) | 87 | ||||||||||||||
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| |||||||||||
Profitability and Efficiency | 2020 | 2019 | Variation ( bp) | |||||||||||||||||
Percentages, except otherwise noted | 4Q | 3Q | �� | 4Q | vs 3Q20 | vs 4Q19 | ||||||||||||||
Return(1) on average assets | 0.65 | 1.93 | 5.38 | (128 | ) | (473 | ) | |||||||||||||
Return(1) on average shareholders’ equity | 2.36 | 6.46 | 20.85 | (410 | ) | (1,849 | ) | |||||||||||||
Financial margin(1)(2) | 21.53 | 19.87 | 23.33 | 166 | (180 | ) | ||||||||||||||
Efficiency ratio (3) | 82.49 | 76.40 | 84.07 | 609 | (158 | ) |
(1) | Annualized. |
(2) | Net interest income, plus net result from financial instruments, plus foreign currency quotation differences, plus certain items included in other operating income and expenses, divided by average interest-earning assets. |
(3) | Personnel expenses, plus administrative expenses, plus depreciation and devaluations of assets, divided by net interest income, plus net fee income, plus net result from financial instruments, plus foreign currency quotation differences, plus insurance premiums earned, plus certain items included in other operating income, plus the result from the net monetary position. |
During the Quarter, Tarjetas Regionales recorded a Ps.152 million net income, Ps.1,037 million lower than the figure recorded during the same quarter of the 2019 fiscal year. This profit represented an annualized 0.65% return on average assets and a 2.36% return on average shareholders’ equity, as compared to 5.38% and 20.85%, respectively, recorded from the fourth quarter of the 2019 fiscal year.
Net operating income amounted to Ps.10,033 million, increasing 6% from the fourth quarter of the 2019 fiscal year as a consequence of a higher net interest income (71%) and lower loan loss provisions (61%).
25
SELECTED FINANCIAL INFORMATION
Balance Sheet | 2020 | 2019 | Variation ( bp) | |||||||||||||||||
In millions of pesos, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks | 2,189 | 1,601 | 5,619 | 37 | (61 | ) | ||||||||||||||
Debt securities | 92 | 581 | — | (84 | ) | — | ||||||||||||||
Net loans and other financing | 89,674 | 66,164 | 66,679 | 36 | 34 | |||||||||||||||
Other financial assets | 1,466 | 5,336 | 7,998 | (73 | ) | (82 | ) | |||||||||||||
Property, bank premises, equipment | 4,859 | 4,659 | 4,637 | 4 | 5 | |||||||||||||||
Intangible assets | 1,534 | 1,712 | 1,994 | (10 | ) | (23 | ) | |||||||||||||
Other non-financial assets | 4,386 | 4,508 | 3,844 | (3 | ) | 14 | ||||||||||||||
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|
|
|
|
|
|
|
| |||||||||||
Total assets | 104,200 | 84,561 | 90,771 | 23 | 15 | |||||||||||||||
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| |||||||||||
Liabilities | ||||||||||||||||||||
Financing from financial entities | 5,795 | 576 | 4,000 | 906 | 45 | |||||||||||||||
Other financial liabilities | 55,324 | 43,553 | 43,417 | 27 | 27 | |||||||||||||||
Notes | 10,079 | 9,767 | 14,306 | 3 | (30 | ) | ||||||||||||||
Other non-financial liabilities | 7,438 | 6,137 | 5,867 | 21 | 27 | |||||||||||||||
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|
|
|
|
|
|
|
|
| |||||||||||
Total liabilities | 78,636 | 60,033 | 67,590 | 31 | 16 | |||||||||||||||
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|
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| |||||||||||
Shareholders’ equity | 25,564 | 24,528 | 23,181 | 4 | 10 | |||||||||||||||
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|
ASSET QUALITY
Loan Portfolio Quality | 2020 | 2019 | Variation (%) | |||||||||||||||||
Percentages, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
Non-accrual loans(1) | 1,646 | 4,638 | 7,976 | (65 | ) | (79 | ) | |||||||||||||
Allowances for loan losses | 5,017 | 8,096 | 8,378 | (38 | ) | (40 | ) | |||||||||||||
Total allowances for loan losses(2) | 6,145 | 9,042 | 9,052 | (32 | ) | (32 | ) | |||||||||||||
Ratios (%) | Variation (bp) | |||||||||||||||||||
Non-accrual loans to loans to the private sector | 1.75 | 6.27 | 11.77 | (452 | ) | (1,002 | ) | |||||||||||||
Allowance for loan losses to loans to the private sector | 5.33 | 10.94 | 12.36 | (561 | ) | (703 | ) | |||||||||||||
Allowance for loan losses to non-accrual loans | 304.80 | 174.56 | 105.04 | 13,024 | 19,976 | |||||||||||||||
Cost of risk(3) | 1.97 | 3.31 | (1.52 | ) | (134 | ) | 349 | |||||||||||||
Total allowance for loan losses(2) to loans to the private sector | 6.53 | 12.22 | 13.35 | (569 | ) | (682 | ) | |||||||||||||
Total allowance for loan losses(2) to non-accrual loans | 373.33 | 194.95 | 113.49 | 17,838 | 25,984 | |||||||||||||||
Cost of Risk(4) | 2.79 | 3.76 | (1.48 | ) | (97 | ) | 427 |
(1) | The non-accrual portfolio includes loans classified under the following categories of the Argentine Central Bank classification: With Problems and Medium Risk, High Risk of Insolvency and High Risk and Uncollectible. |
(2) | Includes allowances on unused credit card balances. |
(3) | Annualized. |
(4) | Includes allowances on unused credit card balances. Annualized. |
As of December 31, 2020, taking into consideration the provisions for unused credit card balances, the coverage ratio amounted to 373.33%, as compared to 113.49% on the same date of the previous fiscal year.
26
Analysis of Loan Loss Experience | 2020 | 2019 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
Allowances for loan losses | ||||||||||||||||||||
At the beginning of the Quarter | 8,096 | 9,378 | 10,403 | (14 | ) | (22 | ) | |||||||||||||
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|
|
| |||||||||||
Changes in the allowance for loan losses | ||||||||||||||||||||
Provisions charged to income | 199 | 435 | (378 | ) | (54 | ) | (153 | ) | ||||||||||||
Reversals of allowances for loan losses | (790 | ) | (576 | ) | (746 | ) | 37 | 6 | ||||||||||||
Charge offs(1) | (1,475 | ) | (504 | ) | (305 | ) | 193 | 384 | ||||||||||||
Effect of inflation | (1,013 | ) | (637 | ) | (596 | ) | 59 | 70 | ||||||||||||
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| |||||||||||
Allowance for loan losses at the end of the Quarter | 5,017 | 8,096 | 8,378 | (38 | ) | (40 | ) | |||||||||||||
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| |||||||||||
Charge to the income statement | ||||||||||||||||||||
Provisions charged to income(2) | (199 | ) | (435 | ) | 378 | (54 | ) | (153 | ) | |||||||||||
Direct charge offs(2) | (234 | ) | (142 | ) | (121 | ) | 65 | 93 | ||||||||||||
Bad debt recovered | 120 | 114 | 74 | 5 | 62 | |||||||||||||||
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| |||||||||||
Net charge to the income statement | (313 | ) | (463 | ) | 331 | (32 | ) | (195 | ) | |||||||||||
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|
(1) | Item included for calculating the cost of risk. |
27
GALICIA ADMINISTRADORA DE FONDOS
RESULTS FOR THE FISCAL YEAR
Income Statement | ||||||||||||
In millions of pesos, except otherwise noted | 2020 | 2019 | Variation (%) | |||||||||
Net interest income | 12 | 8 | 50 | |||||||||
Net results from financial instruments | 177 | 107 | 65 | |||||||||
Gold and foreign currency quotation differences | 35 | 24 | 46 | |||||||||
Other operating income | 2,144 | 1,579 | 36 | |||||||||
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|
|
|
| |||||||
Net operating income | 2,368 | 1,718 | 38 | |||||||||
|
|
|
|
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| |||||||
Personnel and administrative expenses | (347 | ) | (276 | ) | 26 | |||||||
Other operating expenses | (127 | ) | (93 | ) | 37 | |||||||
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|
|
|
| |||||||
Operating income | 1,894 | 1,349 | 40 | |||||||||
|
|
|
|
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| |||||||
Results from the net monetary position | (198 | ) | (108 | ) | 83 | |||||||
Income tax | (574 | ) | (391 | ) | 47 | |||||||
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| |||||||
Net income | 1,122 | 850 | 32 | |||||||||
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RESULTS FOR THE QUARTER
Income Statement | 2020 | 2019 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
Net interest income | 4 | 1 | — | 300 | N/A | |||||||||||||||
Net results from financial instruments | 70 | 47 | 43 | 49 | 63 | |||||||||||||||
Gold and foreign currency quotation differences | 11 | 8 | 3 | 38 | 267 | |||||||||||||||
Other operating income | 565 | 722 | 193 | (22 | ) | 193 | ||||||||||||||
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| |||||||||||
Net operating income | 650 | 778 | 239 | (16 | ) | 172 | ||||||||||||||
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|
|
|
|
|
|
| |||||||||||
Personnel and administrative expenses | (71 | ) | (103 | ) | (131 | ) | (31 | ) | (46 | ) | ||||||||||
Other operating expenses | (34 | ) | (43 | ) | (22 | ) | (21 | ) | 55 | |||||||||||
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|
|
|
|
|
|
| |||||||||||
Operating income | 545 | 632 | 86 | (14 | ) | 534 | ||||||||||||||
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|
|
|
|
|
| |||||||||||
Results from the net monetary position | (90 | ) | (53 | ) | (56 | ) | 70 | 61 | ||||||||||||
Income tax | (183 | ) | (197 | ) | (43 | ) | (7 | ) | 326 | |||||||||||
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|
|
|
|
|
|
|
| |||||||||||
Net income | 272 | 382 | (13 | ) | (29 | ) | 2,192 | |||||||||||||
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|
28
ASSETS UNDER MANAGEMENT
Mutual Fund | Assets Under Management as of: | Variation (%) | ||||||||||||||||||
In millions of pesos, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
Fima Premium | 148,693 | 153,241 | 93,647 | -3 | 59 | |||||||||||||||
Fima Ahorro Pesos | 7,252 | 10,566 | 3,627 | (31 | ) | 100 | ||||||||||||||
Fima Ahorro Plus | 12,707 | 15,502 | 3,719 | (18 | ) | 242 | ||||||||||||||
Fima Capital Plus | 16,651 | 12,940 | 154 | 29 | 10,712 | |||||||||||||||
Fima Renta en Pesos | 1,098 | 1,756 | 316 | (37 | ) | 247 | ||||||||||||||
Fima Renta Plus | 740 | 1,370 | 198 | (46 | ) | 274 | ||||||||||||||
Fima Abierto Pymes | 759 | 745 | 795 | 2 | (5 | ) | ||||||||||||||
Fima Acciones | 590 | 661 | 547 | (11 | ) | 8 | ||||||||||||||
Fima PB Acciones | 633 | 764 | 941 | (17 | ) | (33 | ) | |||||||||||||
Fima Mix I | 2,047 | 1,668 | 78 | 23 | 2,524 | |||||||||||||||
Fima Renta Dolares I | — | 1,934 | 2,803 | (100 | ) | (100 | ) | |||||||||||||
Fima Renta Dolares II | — | 550 | 918 | (100 | ) | (100 | ) | |||||||||||||
Fima Renta Acciones Latinoamerica | 72 | 56 | 157 | 29 | (54 | ) | ||||||||||||||
Fima Renta Fija Internacional | 1,170 | 1,628 | 3,394 | (28 | ) | (66 | ) | |||||||||||||
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|
|
|
|
|
|
|
|
| |||||||||||
Total Assets Under Management | 192,412 | 203,381 | 111,294 | (5 | ) | 73 | ||||||||||||||
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|
SELECTED FINANCIAL INFORMATION
Balance Sheet | 2020 | 2019 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks | 191 | 315 | 165 | (39 | ) | 16 | ||||||||||||||
Loans and other financing | 185 | — | — | N/A | N/A | |||||||||||||||
Other financial assets | 1,005 | 1,004 | 415 | — | 142 | |||||||||||||||
Other non-financial assets | 1 | 2 | 31 | (50 | ) | (97 | ) | |||||||||||||
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|
|
|
|
|
|
|
|
| |||||||||||
Total assets | 1,382 | 1,321 | 611 | 5 | 126 | |||||||||||||||
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| |||||||||||
Liabilities | ||||||||||||||||||||
Other non-financial liabilities | 469 | 357 | 98 | 31 | 379 | |||||||||||||||
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|
|
|
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|
|
| |||||||||||
Total liabilities | 469 | 357 | 98 | 31 | 379 | |||||||||||||||
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|
|
|
|
|
| |||||||||||
Shareholders’ equity | 913 | 964 | 513 | (5 | ) | 78 | ||||||||||||||
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|
29
SUDAMERICANA HOLDING
INFORMATION DISCLOSURE
The data shown in the tables of this report and the consolidated financial statements correspond to Sudamericana Holding, consolidated line by line with the subsidiaries under its control.
RESULTS FOR THE FISCAL YEAR
Income Statement | ||||||||||||
In millions of pesos, except otherwise noted | 2020 | 2019 | Variation (%) | |||||||||
Earned premium | 7,789 | 7,608 | 2 | |||||||||
Incurred claims | (1,127 | ) | (1,052 | ) | 7 | |||||||
Withdrawals | (17 | ) | (19 | ) | (11 | ) | ||||||
Life annuities | (14 | ) | (16 | ) | (13 | ) | ||||||
Acquisition and general expenses | (3,070 | ) | (3,905 | ) | (21 | ) | ||||||
Other income and expenses | (65 | ) | (74 | ) | (12 | ) | ||||||
|
|
|
|
|
| |||||||
Underwriting income | 3,496 | 2,542 | 38 | |||||||||
|
|
|
|
|
| |||||||
Net interest income | 727 | 1,146 | (37 | ) | ||||||||
Net results from financial instruments | 64 | 103 | (38 | ) | ||||||||
Gold and foreign currency quotation differences | (27 | ) | (4 | ) | 575 | |||||||
Other operating income | 505 | 609 | (17 | ) | ||||||||
|
|
|
|
|
| |||||||
Net operating income | 4,765 | 4,396 | 8 | |||||||||
|
|
|
|
|
| |||||||
Personnel expenses | (1,218 | ) | (1,110 | ) | 10 | |||||||
Administrative expenses | (657 | ) | (712 | ) | (8 | ) | ||||||
Depreciations and devaluations of assets | (270 | ) | (291 | ) | (7 | ) | ||||||
Other operating expenses | (4 | ) | — | N/A | ||||||||
|
|
|
|
|
| |||||||
Operating income | 2,616 | 2,283 | 15 | |||||||||
|
|
|
|
|
| |||||||
Results from the net monetary position | (673 | ) | (1,012 | ) | (33 | ) | ||||||
Income tax | (654 | ) | (509 | ) | 28 | |||||||
|
|
|
|
|
| |||||||
Net income | 1,289 | 762 | 69 | |||||||||
|
|
|
|
|
| |||||||
Other comprehensive income(1) | 10 | (20 | ) | (150 | ) | |||||||
|
|
|
|
|
| |||||||
Total comprehensive income | 1,299 | 742 | 75 | |||||||||
|
|
|
|
|
|
(1) | Net of income tax. |
Profitability | ||||||||||||
Percentages, except otherwise noted | 2020 | 2019 | Variation (%) | |||||||||
Return on average assets(1) | 19.90 | 11.17 | 873 | |||||||||
Return on average shareholders’ equity(1) | 41.38 | 24.03 | 1,735 | |||||||||
Efficiency ratio(2) | 72.91 | 83.17 | (1,026 | ) | ||||||||
Combined ratio(3) | 82.59 | 94.34 | (1,175 | ) |
(1) | Annualized. |
(2) | Acquisition and general expenses, plus personnel expenses, plus administrative expenses, plus depreciations and devaluations of assets, divided by earned premiums, plus incurred claims, plus withdrawals, plus life annuities, plus acquisition and general expenses, plus other income and expenses, plus net interest income, plus net results from financial instruments, plus gold and foreign currency quotation differences plus some items included in other operating income, plus the net result from the monetary position. |
(3) | Acquisition and general expenses, plus personnel expenses, plus administrative expenses, plus depreciations and devaluations of assets, plus incurred claims, plus other income and expenses, divided by earned premiums, plus withdrawals, plus life annuities. |
30
RESULTS FOR THE QUARTER
Income Statement | 2020 | 2019 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
Earned premium | 2,033 | 2,010 | 1,798 | 1 | 13 | |||||||||||||||
Incurred claims | (394 | ) | (283 | ) | (290 | ) | 39 | 36 | ||||||||||||
Withdrawals | (5 | ) | (6 | ) | (2 | ) | (17 | ) | 150 | |||||||||||
Life annuities | (3 | ) | (4 | ) | (4 | ) | (25 | ) | (25 | ) | ||||||||||
Acquisition and general expenses | (821 | ) | (780 | ) | (865 | ) | 5 | (5 | ) | |||||||||||
Other income and expenses | (20 | ) | (1 | ) | (37 | ) | 1,900 | (46 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Underwriting income | 790 | 936 | 600 | (16 | ) | 32 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net interest income | 130 | 156 | 316 | (17 | ) | (59 | ) | |||||||||||||
Net results from financial instruments | 42 | (3 | ) | 22 | 1,500 | 91 | ||||||||||||||
Gold and foreign currency quotation differences | 5 | (1 | ) | 2 | 600 | 150 | ||||||||||||||
Other operating income | 111 | 156 | 174 | (29 | ) | (36 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net operating income | 1,078 | 1,244 | 1,114 | (13 | ) | (3 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Personnel expenses | (395 | ) | (275 | ) | (331 | ) | 44 | 19 | ||||||||||||
Administrative expenses | (187 | ) | (186 | ) | (241 | ) | 1 | (22 | ) | |||||||||||
Depreciations and devaluations of assets | (72 | ) | (66 | ) | (104 | ) | 9 | (31 | ) | |||||||||||
Other operating expenses | (4 | ) | — | — | — | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Operating income | 420 | 717 | 438 | (41 | ) | (4 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Results from the net monetary position | (159 | ) | (201 | ) | (297 | ) | (21 | ) | (46 | ) | ||||||||||
Income tax | (213 | ) | (169 | ) | (82 | ) | 26 | 160 | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net income | 48 | 347 | 59 | (86 | ) | (19 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Other comprehensive income(1) | (21 | ) | 13 | 53 | (262 | ) | 140 | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total comprehensive income | 27 | 360 | 112 | (93 | ) | (76 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Net of income tax. |
Profitability | 2020 | 2019 | Variation ( bp) | |||||||||||||||||
Percentages, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
Return on average assets(1) | 2.93 | 20.26 | 3.70 | (1,733 | ) | (77 | ) | |||||||||||||
Return on average shareholders’ equity(1) | 7.29 | 38.65 | 7.87 | (3,136 | ) | (58 | ) | |||||||||||||
Efficiency ratio(2) | 84.95 | 71.73 | 94.16 | 1,322 | (921 | ) | ||||||||||||||
Combined ratio(3) | 93.28 | 79.50 | 104.26 | 1,378 | (1,098 | ) |
(4) | Annualized. |
(5) | Acquisition and general expenses, plus personnel expenses, plus administrative expenses, plus depreciations and devaluations of assets, divided by earned premiums, plus incurred claims, plus withdrawals, plus life annuities, plus acquisition and general expenses, plus other income and expenses, plus net interest income, plus net results from financial instruments, plus gold and foreign currency quotation differences, plus some items included in other operating income, plus the net result from the monetary position. |
(6) | Acquisition and general expenses, plus personnel expenses, plus administrative expenses, plus depreciations and devaluations of assets, plus incurred claims, plus other income and expenses, divided by earned premiums, plus withdrawals, plus life annuities. |
31
SELECTED FINANCIAL INFORMATION
Balance Sheet | 2020 | 2019 | Variation (%) | |||||||||||||||||
In millions of pesos, except otherwise noted | 4Q | 3Q | 4Q | vs 3Q20 | vs 4Q19 | |||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks | 40 | 294 | 103 | (86 | ) | (61 | ) | |||||||||||||
Debt securities | — | — | 50 | — | (100 | ) | ||||||||||||||
Net loans and other financing | 473 | 557 | 358 | (15 | ) | 32 | ||||||||||||||
Other financial assets | 2,434 | 2,346 | 2,783 | 4 | (13 | ) | ||||||||||||||
Property, bank premises, equipment | 647 | 598 | 621 | 8 | 4 | |||||||||||||||
Intangible assets | 73 | 100 | 140 | (27 | ) | (48 | ) | |||||||||||||
Assets for insurance contracts | 1,886 | 1,723 | 1,609 | 9 | 17 | |||||||||||||||
Other non-financial assets | 364 | 790 | 417 | (54 | ) | (13 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total assets | 5,917 | 6,408 | 6,081 | (8 | ) | (3 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Liabilities | ||||||||||||||||||||
Financial entities | — | — | 4 | — | (100 | ) | ||||||||||||||
Liabilities for insurance contracts | 2,061 | 1,983 | 2,005 | 4 | 3 | |||||||||||||||
Other non-financial liabilities | 1,268 | 1,864 | 1,348 | (32 | ) | 6 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total liabilities | 3,329 | 3,847 | 3,357 | (13 | ) | (1 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Shareholders’ equity | 2,588 | 2,561 | 2,724 | 1 | (5 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
32
RELEVANT INFORMATION
TARJETAS REGIONALES
In connection with the spin-off merger of the minority stake in Tarjetas Regionales that was previously not owned by GFG, on December 15, 2020, GFG entered into a definitive spin-off merger agreement with certain other companies that collectively owned 17% of the outstanding equity interests of Tarjetas Regionales to acquire such interests. As a consequence, from September 1, 2020, 100% of the results of Tarjetas Regionales are attributed to Grupo Financiero Galicia.
NOTES
On December 18, 2020, Tarjeta Naranja issued certain class XLV Notes in the amount of Ps.3,057 million, which accrue interest at a rate of Badlar + 5% and have a term of 12 months.
GALICIA ADMINISTRADORADE FONDOS
During December, the Comisión Nacional de Valores (the Argentine National Securities Commission) approved the liquidation of the dollar-denominated funds, Fima Renta Dolares I and Fima Renta Dolares II.
COVID-19
During the Fiscal Year, Grupo Financiero Galicia and its subsidiaries have continued and adapted their operations under the challenging circumstances resulting from the spread of the Coronavirus (COVID-19). This pandemic has generated various consequences impacting businesses and economic activities globally. As of mid-March, when the virus began to spread in Argentina, the Argentine National Government implemented a series of measures designed to reduce contagion and provide for preventive and mandatory social isolation or distancing (with variations of such restrictions dependent on the region of the country). As of the date of this report, commercial activities are being gradually being normalized in compliance with applicable protocols established by the Argentine government.
Additionally, the Argentine Central Bank and other regulatory agencies have established certain additional regulations with objectives linked to providing assistance to sectors whose activity was affected by the pandemic and to the health care of the community in general.
The final scope of the COVID-19 pandemic and its impact on the global and Argentine economy are still unknown. Although, as of the date of this report, Grupo Financiero Galicia and its subsidiaries have suffered limited impacts on their results due to the pandemic, the impact of a lower level of activity and a higher unemployment could be significant in the future.
The Board of Directors of GFG continues to analyze the situation as it evolves and is prepared to take all measures within its power to guarantee business continuity and preserve the health and safety of GFG’s employees, customers and other stakeholders.
REGULATORY CHANGES
In connection with the foregoing, the Argentine Central Bank has established certain regulations and protocols, of which the following stand out: (i) attention to customers by prior request of an appointment; (ii) the suspension of the collection of ATM fees; (iii ) the suspension, until June 30, 2021, of dividend distributions; (iv) financing of unpaid credit card balances at certain maximum interest rates; (v) a credit line for SMEs’ productive investment; (vi) the granting of financing to companies for the payment of salaries; (vii) a minimum interest rate on time deposits; (viii) the flexibilization of the parameters in respect of classification of debtors; and (ix) controls on the foreign exchange market.
33
Additionally, to promote the granting of financing to sectors affected by COVID-19, the Argentine Central Bank has implemented certain reductions on applicable reserve requirements.
OTHERCOMPREHENSIVEINCOME
In accordance with Communique “A” 7211 of the Argentine Central Bank, starting in the 2021 fiscal year the monetary result accrued with respect to items of a monetary nature that are measured at fair value with changes in “Other Comprehensive Income” (or OCI) must be recorded in the results for the applicable period / fiscal year. Consequently, unallocated results must be adjusted and recorded in the account “Adjustments to results from previous years” at the beginning of the 2021 fiscal year, in order to incorporate the accumulated monetary results of the aforementioned items as of such date, which will be recorded in OCI. Likewise, the comparative information for upcoming periods / fiscal years must consider this change in applicable exposure criteria.
Had this change been applied for the 2020 fiscal year, Grupo Financiero Galicia’s net result for the fiscal year would have amounted to Ps.26,016 million, and the total of Other Comprehensive Income for the year would reflected a Ps.348 million loss.
This report is a summary analysis of GFG’s financial condition and results of operations as of and for the periods indicated. For a correct interpretation, this report must be read in conjunction with GFG’s financial statements, as well as with all other material periodically filed with the Argentine National Securities Commission (www.cnv.gob.ar), the Buenos Aires Stock Exchange (www.bolsar.com), the Cordoba Stock Exchange (www.bolsacba.com.ar) and the Nasdaq (www.nasdaq.com). In addition, the Argentine Central Bank (www.bcra.gob.ar) may publish information related to Banco Galicia as of a date subsequent to the last date for which the Bank has published information.
Readers of this report must note that this is a translation made from an original version written and expressed in Spanish. Therefore, any matters of interpretation should be referred to the original version in Spanish.
34