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GRUPO FINANCIERO GALICIA

Investor Presentation

December 2018

Agenda

1 / The Argentine Economy

2 / The Argentina Financial System

4 / Banco Galicia

5 / Naranja

6 / Sudamericana Holding

7 / Galicia Administradora de Fondos

3 / Grupo Financiero Galicia

3

-5,9%

10,1%

6,0%

-1,0%

2,4%

-2,5%

2,7%

-1,8%

2,9%

-2,3%-1,5%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018* 2019*

(*)Survey of Market Expectations (REM August, BCRA) Source: INDEC and BCRA

Real Gross Domestic Product

YoY % Var.

GDP quarterly evolution

Industrial Production quarterly evolution

2,8%

-3,6%

2,1%

-0,9%

0,3%

-2,5%

-3,7%

-04%

03%

-07%

04%

01%

-07%

1Q15 3Q15 1Q16 3Q16 1Q17 3Q17 1Q18 3Q18

Source: INDEC

Source: FIEL

2,4%

0,0%

-1,3%

0,1%

1,9%

0,7%

-4,0%

00%

04%

-04%

04%

-04%

1Q15 3Q15 1Q16 3Q16 1Q17 3Q17 1Q18

q/q % chg. (sa) y/y % chg. (r.h.s.)

Economic Activity

364,76

192,84

100

200

300

400

2001 2003 2005 2007 2009 2011 2013 2015 2017

Agricultural Commodity Prices

Dec’01=100.

As of December, 2018.

4

Real Exchange Rate

Index Nov-18= 36,46 AR$/USD

21,03

61,42

25,19

72,73

23,27

42,37

36,46

12

17

22

27

32

37

42

47

52

57

62

67

72

77

No

v-0

1

Ap

r-03

Sep

-04

Feb

-06

Jul-

07

Dec

-08

May

-10

Oct

-11

Mar

-13

Au

g-1

4

Jan

-16

Jun

-17

No

v-1

8

Multilateral RER Bilateral RER (AR$/USD)

Source: BCRA

International Environment

-2,7

0,0

-5,1

-3,2

-8

-4

0

4

2007 2009 2011 2013 2015 2017 2019E

As

a %

of

GD

P

Primary Fiscal Balance as a % of GDP

Overall Fiscal Balance as a % of GDP

Fiscal Performance (Federal Government only)

Primary Fiscal Deficit – Annual Target

as % of GDP

5,54,6

3,8

2,7

0

-1

2015 2016 2017 2018 2019 2020

Source: Ministry of Finance

0

1

2

3

4

5

6

0

5.000

10.000

15.000

20.000

25.000

30.000

2007 2009 2011 2013 2015 2017

Monetary FinancingUse ofinternationalreserves

ArgentineCentral Bankprofits

ArgentineCentral Bankadvances

Total ArgentineCentral Bankfinancing (as %of GDP) - r.h.s.

5Source: BCRA and own estimates

Source: Ministry of Finance

Mil

lio

ns

of

USD

As a %

of G

DP

Fiscal Performance

0

7

14

21

28

2018 2019 2020 2021 2022 2023 2024 2025 2026

Projected annual debt payments(*)

Foreign currency Pesos

Bil

lio

ns

of

US$

(*) Net of Central Bank advances, treasury bills and non-transferable bills held by Central Bank.

29%

15% 16%24%

35%

18,6%

18,7%30,1%

27,7%

32,2%55%

39%

57%

77%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 II-18

Private Holders IFIs Public Sector Debt Total Gross Debt

Argentina: Public Sector Gross Debt

As a % of GDP

Sovereign Debt

Debt by Currency

USD63%

Pesos19%

Euros7%

Pesos CER indexed

6%Other

5%

As of June, 2018.

7

67,2

64,8

0

25

50

75

100

2003 2006 2009 2012 2015 2018E

Bil

lio

ns

of

US$

Exports Imports

Foreign Trade

-5,6

2,4

-15

0

15

30

2004 2006 2008 2010 2012 2014 2016 2018E

Bil

lio

ns

of

US$

Trade Balance

-5,1%

-2,5%

-6%

-4%

-2%

0%

2%

4%

6%

2003 2005 2007 2009 2011 2013 2015 2017 2019E

As

% o

f G

DP

Current Account

Capital Account

Current and Capital Accounts

Accrual Basis, as % of GDP

Source: INDEC and own estimates

External Sector Performance

8

Monetary AggregatesReal YoY change

-5,7%

-15,2%

-25,0%-30%

-20%

-10%

0%

10%

20%

30%

Feb-15 Nov-15 Aug-16 May-17 Feb-18 Nov-18

ARS Private Deposits

ARS Credit to the Private Sector

M2 (private)

Central Bank Interest Rate PolicyANR (%)

59,00

61,20

24

32

40

48

56

64

72

80

Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18

Call 1d Monetary Policy Interes Rate

International ReservesUSD billion

47

24

45

62

51

Jun-12 May-13 Apr-14 Mar-15 Feb-16 Jan-17 Dec-17 Nov-18

Monetary Performance

9

CPI Inflation

Greater Buenos Aires

Inflation

y/y % chg.

Source: FIEL and own estimates

Source: INDEC

2,9%

2,2%

2,5%

48,0%

46,2%

Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18

m/m % chg. y/y % chg. (r.h.s.)

Market Expectations – Central Bank Survey

Annual Inflation

Source: BCRA, INDEC and own estimates

31,8

40,3

44,847,5

20,6

27,0 27,5

15,0

19,0 19,2

0

5

10

15

20

25

30

35

40

45

50

Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18

2018 2019 202021%

24%26%

41%

27%

39%

25%

47%

25%

00%

10%

20%

30%

40%

50%

Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 2018E 2019E

Inflation

Agenda



4 / Banco Galicia

5 / Naranja




22

16

0

5

10

15

20

25

2010 2012 2014 2016 2018

Deposits from the Private Sector Loans to the Private Sector

11

Source: Central Bank of each country.

0

20

40

60

80

100

Chile Brazil Colombia Peru Mexico Argentina

52 56

24 34 29

18

78 67

44 34

23 15

Deposits to GDP

Loans to GDP

Financial Depth

as a % of GDP

as a % of GDP

But Still Low Financial Depth

12

29,1%

63,0%

23,2%

40,4%

32,2%

10,2%

Nov-17 Feb-18 May-18 Aug-18 Nov-18

Total (ARS + USD)

ARS

USD (in USD)

Deposit Growth

Y-O-Y Monthly % Change

Private-Sector Loans

Y-O-Y Monthly % Change

51,0%

42,0%

45,2%

25,7%

64,2%

6,6%

Nov-17 Feb-18 May-18 Aug-18 Nov-18

Total (ARS + USD)

ARS

USD (in USD)

Private – Sector Loans and Deposit Growth

13

Private Deposits Mix

% Total deposits

Breakdown of Deposits by Currency and Type

64%

36%

0%

20%

40%

60%

80%

100%

Nov-13 Sep-14 Jul-15 May-16 Mar-17 Jan-18 Nov-18

Deposits in ARS

Deposits in USD

Deposits in ARS Mix

% Deposits in ARS

46%

54%

40%

45%

50%

55%

Nov-13 Nov-14 Nov-15 Nov-16 Nov-17 Nov-18

Current and Saving Accounts Time Deposits

14

Cost of Liabilities

Private Badlar and Private Poll

Interest Rates Spread

Yield on Assets vs Cost of Liabilities

(weighted by operated amounts)

22,6

63,9

41,3

0

8

16

24

32

40

48

56

64

72

Oct-16 Apr-17 Oct-17 Apr-18 Oct-18

Spread

Weighted Yield on Assets

Weighted Cost of Liabilities

50,4

47,8

22

26

30

34

38

42

46

50

54

58


Private Badlar

Private poll (30 d.) of time deposits

68,9

62,5

20

25

30

35

40

45

50

55

60

65

70

75

80

85


Companies: overdraft in checking accounts

Individuals: Personal loans

Yield on Assets

Increase in Interest Rates

Number

Market Share

Private-Sector

Deposits (%)

Banking Institutions 61

Government-Owned Banks 13 33.8

Private-Sector Banks 48 66.2

- Domestic Banks 32 32.1

- Foreign Banks 16 34.2

August 2018

15

Composition of the Banking System

16

25,3

25,7

29,532,7 32,4

29,6

23,4

33,0

2011 2012 2013 sep-182014 2015 2016 2017

R.O.E.

55,6

58,7

54,852,6

54,057,6

61,1

55,7

ago-1820132011 20152012 20172014 2016

Efficiency

2,7

2,9

3,44,1 4,1

3,6

2,7

3,8

20142011 2012 2013 2015 2016 2017 sep-18

R.O.A.

1,2

1,5 1,5

1,81,5

1,7 1,7

2,2

2013 201620152011 2012 2014 sep-182017

NPLs

Profitability and Asset Quality

Strengths

» High liquidity (with increased allocation to Central Bank paper).

» Peso-based intermediation with high proportion of transactional deposits.

» Adequate capitalization levels.

Opportunities

» Low level of financial depth.

» Increase in concentration.

» Potential demand for mortgage loans.

Challenges

» Lack of long-term funding.

» Reach a greater customer base - Bancarization.

» Increased competition from new fintech players.

» Sustain profitability.

Threats» Lead time to correct fiscal, monetary and external imbalances.

» Brazilian economy as a limitation to growth.

17

Current Situation of the Financial System

Agenda



4 / Banco Galicia

5 / Naranja




EBA HOLDING

55.1% Votes

100%87.5%

12.5%

19.7% Shares

83%

Insurance 100%

19

Mutual Funds

95%

5%

Collection

Processing

Organizational Structure

Results for the 3Q18. In millions of pesos. Variation (%) 3Q17.

(2)

Variation3Q17

3.405

4.212

524

78

Other resultsBanco deGalicia S.A.U.

Tarjetas Regionales S.A.

Galicia Administradora de Fondos S.A.

166

Sudamericana Holding S.A.

39

Net Income

78% 84%

-30%

98%

(1) 83% since January 1, 2018 (77% from the split-merger agreement with Banco Galicia and 6% from the acquisition of a minority interest).

(2) Includes results from our interest in Galicia Warrants S.A. (87.5%), and Net Investment S.A. (87.5%), and in Galicia Valores S.A. (1%).

Grupo Financiero Galicia - Results from Equity Investments

(1)

N/A

EFFICIENCY

ROA

ROE

Business Summary – Grupo Financiero Galicia

34.63%+770 bp y/y

As of September 30, 2018.

3.72%+30 bp y/y

21

FINANCIAL MARGIN14.54%

+235 bp y/y

47.85%-846 bp y/y

Agenda



4 / Banco Galicia

5 / Naranja




DEPOSITS

EQUITY

ASSETS

NET LOANS

ROE(3Q annualized)

Business Summary – Banco Galicia

Ps. 469.6 bn.

Ps. 246.3 bn.

35.6%

BRANCHES 319

EMPLOYEES 6,457

CLIENTS

As of September 30, 2018.Exchange rate (Ps. per US$) = 40.90

11.5 US$ bn.

6.0 US$ bn.

Ps. 320.4 bn.7.8 US$ bn.

Ps. 39.8 bn.1 US$ bn. 4.0 million

23

15,5%

10,3%

10,3%

8,9%

7,4%

7,1%

4,0%

3,5%

3,4%

3,1%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

Nación

Santander

Galicia

Provincia

Macro

BBVA

HSBC

Ciudad

ICBC

Patagonia

Market share of

loans to the private-sector (1)

Market share of

private-sector deposits

(1) Includes securitized loans and leasing. Source: Argentine Central Bank.(P) Goverment owned Banks.

As of July 31, 2018.

16,7%

12,6%

10,5%

9,4%

7,9%

6,6%

4,3%

4,3%

3,3%

3,0%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

Nación

Santander

Galicia

Provincia

BBVA

Macro

HSBC

Credicoop

ICBC

Ciudad

(P)

(P)

(P)

(P)

TOP 10 = 79% TOP 10 = 73%

Galicia Galicia

24

(P)

(P)

One of the Largest Banks

0

200

400

600

800

Santander Macro Galicia BBVA HSBC

Branches (number)

(1) Includes securitized loans and leasing.

Source: Argentine Central Bank (except for Naranja).

As of July 31, 2018.

0

5

10

15

Santander Galicia Macro BBVA HSBC

Market Share ofLoans to the Private Sector (%) (1)

+ Naranja

0

5

10

15

Santander Galicia BBVA Macro HSBC

Market Share ofPrivate-Sector Deposits (%)

25

+ Naranja

0

5.000

10.000

15.000

20.000

Santander Galicia BBVA Macro HSBC

Credit Cards Managed (in thousands)

+ Naranja

Peer Comparison

26%

50%

10%

14%

Low Income

Medium Income

Prof. and Self-employed

High Income

19%

1%

80%

Agribusiness Corporations SMEsAs of September 30, 2018.

26

Corporate Banking

Total: 108,352

Consumer Banking

Total: 3,902,404

Broad and Growing Customer Base


Large Corporations

29%

Middle-Market

Companies20%

Agribusiness12%

Individuals 35%

Financial Sector

4%

Gross Loans: Ps. 252 billion

27

Loan Portfolio by Maturity

Loans in foreign currency: 38.6%.

Breakdown of Loans to the Private Sector

27%

30%

9%

23%

6% 5%

<1-6 months

<1 month >5 years1-3 years6-12 months

3-5yearsB

illi

on

so

f P

s.

Galicia

Deposits75%

Bonds3%

Subordinated Bonds

2%

Other(*)20%

Total Funding: Ps. 429.9 billions

(*) Includes among other: repos, financial institutions, collections on account of third parties, debt with merchants.

US$ -denominated deposits: 47.9%.As of September 30, 2018.

28

Time Deposits34%

Checking accounts

21% Saving accounts

45%

Deposits Breakdown by Type:Ps. 320.4 billions

Funding Sources

3,07%

2,37%

7,17%

103,03%

40%

60%

80%

100%

120%

140%

160%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

2015 2016 2017 2018

Lo

an lo

ss reserves /

NP

Ls

NP

Ls

/ T

ota

l lo

ans

to t

he

pri

vat

e se

cto

r

NPLs / Total loans to the private sector Bank NPL ratio

Naranja NPL ratio (until Sep'17 with CFA) Loan loss reserves / NPLs

As of September 30, 2018.29

Asset Quality

11,4%

9,5%

12,5%

10,3%

14,1%

13,4%

14,0%

8,0%

10,0%

12,0%

14,0%

16,0%

mar-15 mar-16 mar-17 mar-18


To

tal

Cap

ital

Rat

io (

%)

Minimum Requirement Ps.29.1 bn

Regulatory Capital Ps. 48.8 bn

Excess Capital Ps. 19.7 bn / 68%

30

Excess Regulatory Capital and Total Capital Ratio

31

14,1%

10,9%

13,5%

10,4%

13,8%

1Q 171Q 16 3Q 16 3Q 17 1Q 18 3Q 18

Net Interest Margin - NIM Efficiency

R.O.E. R.O.A.

58,7%64,8%

53,27

41,2%

31,4%

22,3%

35,6%36,0%

30,2%

36,14

34,6%

Grupo Financiero GaliciaBanco Galicia

3,3%

2,8%

3,83

2,4%

3,3%

Until Dec’17 consolidated with Naranja and CFA


Strong Profitability

1Q 171Q 16 3Q 16 3Q 17 1Q 18 3Q 18

1Q 171Q 16 3Q 16 3Q 17 1Q 18 3Q 18 1Q 171Q 16 3Q 16 3Q 17 1Q 18 3Q 18

Variation3Q 2017

3Q 2018

32

Consolidated Income Statement – 3Q 2018

8.180

3.405

3.824

Net change for loan losses

Administrative Expenses

(1.639)

(4.792)

(592)(1.576)

Net financal income

Net Income from Services

Net Other Income/Losses

Income tax Net Income

104%64%

266%

37% 34%78%

Agenda



4 / Banco Galicia

5 / Naranja




NET INCOME

EQUITY

ASSETS

LOANS

ROE(3m annualized)

Business Summary – Naranja

Ps. 2,155 millions+9% y/y

Ps. 10.1 bn.+32% y/y

Ps. 46.2 bn.+44% y/y

Ps. 43.6 bn.+41% y/y

25.4%

BRANCHES188 branches

49 offices

EMPLOYEES 3,502

CLIENTS 4.9 million

ACCOUNTS 3.5 millions activeaccounts

CARDS ISSUED 9.3 millions

MERCHANTS280,000

affiliated merchants

TRANSACTIONS+181 million

anual transactions


34

» Consumer finance to medium and low income segments.

» Merchant acquirer and payment processing services provider to proprietary credit cards.

» Largest credit card issuer in Argentina with over:

» 3.5 million active accounts and 9.3 million cards issued.

» 188 branches and 49 offices across the country.

» 15.0%1 market share in purchase volume (billed + installments) nationwide.

» Second largest merchant acquirer with over 280,000 affiliated merchants.

» Third largest independent payment processor with more than 181 million annual transactions.

In millions of Ps.9M 2017 9M 2018

Assets 32,028 46,222

Loans 30,844 43,615

Net Worth 7,679 10,146

Net Income 1,999 2,155

ROE 38.8% 30.9%

1 Estimated.As of September 30, 2018.

Naranja

35

Agenda



4 / Banco Galicia

5 / Naranja




12.5% 87.5%

Sudamericana Holding

Turnover: $3.511MM

AUM: $1.038MMEquity: $761MM

Profit: $456 MM

Turnover: $0,1MM

AUM: $205MM

Equity: $42,6 MM

Profit: $4,2 MM

Turnover: $60MM

AUM: $23MM

Equity: $20 MM

Profit: $20 MM

Founded in 1996 and originally aimed at

individuals' insurance that is currently

broadening its strategy to cover corporate

insurance.

Retirement insurance company. It

manages voluntary retirement and pension

plans.

Insurance broker of the corporate segment,

which offers coverage in those lines not

marketed by Galicia Seguros.

Sudamericana Holding - Corporate Structure

37

Positioning

Jul17-Mar18

General Data

Homeowners Insurance Ranked 1st 9.4% Market Share

Theft Ranked 1st 19.6% Market Share

Personal Accidents Ranked 3rd 10.0% Market Share

Group Life Ranked 12th 2.2% Market Share

Miscellaneous Risks Ranked 6th 5.4% Market Share

Annual Turnover: AR$ 3.5 billion (FY2018)

Policies in force: 3 million (credit-related insurance) and 4.4

million (voluntary insurance).

Sudamericana Holding – General Data

38

Main Business Partners

Business Partners' Branches

Telemarketing

Specialized Insurance

Stands

ATMs

Specialized Salesforce

Internet

• Over 550 branches of our affiliated companies (Banco Galicia and Naranja).

• Near 120 branches of retail chains.

• +160 telemarketers at our own call center.

• 290 telemarketers at an external call center.

•Near 65 stands at our business partners' branches.

• Insurance sale through Banco Galicia's ATM network.

• Account officers for corporate businesses.

• Specialized Insurance Officers in banking branches.

• Open market sale through different web pages.

• Homebanking

Sudamericana Holding – Distribution Channels

39

http://www.google.com.ar/url?sa=i&rct=j&q=banco+galicia+logo&source=images&cd=&cad=rja&docid=iE8e7HfvUriy9M&tbnid=iSaX6wNKQWVd4M:&ved=0CAUQjRw&url=http://www.o24n.com/general/fondo-para-la-conservacion-ambiental-banco-galicia-convoca-a-investigadores-de-todo-el-pais/attachment/logo-banco-galicia/&ei=cuykUb23HImQ9gSf9YDABQ&bvm=bv.47008514,d.eWU&psig=AFQjCNF0h3fiGLM9OvWnkbaihnjEIWJBEQ&ust=1369849317697337

http://www.google.com.ar/url?sa=i&rct=j&q=banco+galicia+logo&source=images&cd=&cad=rja&docid=iE8e7HfvUriy9M&tbnid=iSaX6wNKQWVd4M:&ved=0CAUQjRw&url=http://www.o24n.com/general/fondo-para-la-conservacion-ambiental-banco-galicia-convoca-a-investigadores-de-todo-el-pais/attachment/logo-banco-galicia/&ei=cuykUb23HImQ9gSf9YDABQ&bvm=bv.47008514,d.eWU&psig=AFQjCNF0h3fiGLM9OvWnkbaihnjEIWJBEQ&ust=1369849317697337

Credit related life insurance.

Group and Individual Life Insurance.

Burial

PA Multirisk: air, public transport, pedestrian

PA Financial: credit card activator

PA Self-Employed and Account Holders

Damages to Building and Contents, Theft and Civil Liability

Additional Charges for Glasses, Electronic Equipment, Household Civil Liability, Pets, etc.

Emergency Services: electrician, plumber, locksmith

Theft in ATMs

Handbag Insurance, Theft of Cell Phones and other technological portable devices.

Theft of bicycle

Extended Warranty for Home Appliances

Purchase Protection

Unemployment

Comprehensive Business

Surety

Next Launch: Engineering Risks

Life Insurance

Personal Accidents

Homeowners Insurance

Theft

Miscellaneous Risks

Corporate Insurance

Sudamericana Holding – Main Products

40

1.457 2.009 2.947 3.329 3.571

14,5% 13,3%22,2%

16,0% 14,7%

-

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

2014 2015 2016 2017 2018

Turnover Net Margin

Turnover per Fiscal Year (in Millions of AR$)

86,0 84,4 74,6 83,9 86,0

38%

47%

13%Combined Ratio GS (%)

7%

Sudamericana Holding – Turnover and profits evolution

41

Agenda



4 / Banco Galicia

5 / Naranja




Galicia Administradora de Fondos

• Galicia Administradora de Fondos, established in 1958, is a pioneer in the mutual fund business.

• The company manages FIMA mutual funds, designed to meet the needs of various client segments (institutional investors, companies and individuals).

• As for September 2018, had a market share of 10.3%.

FUNDS

NET INCOME

AUM

12AR$ and US$

Ps. 376 millions

Ps. 57.5 bn.-21% y/y

65,207

22EMPLOYEES

CLIENTS


Net Income

Assets Under Management

(*) In millions pesos


119

139

81

3Q17 4Q17 3Q18

+17% -41%

37.329

91.609

58.115

4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18

Our Family of Funds

Secure Balanced Dynamic

Investor Profile

Investment horizon/ Risk


Short Term Medium Term Long Term

Fun

d Y

ield

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